Potential investors with the goal of securing funding

Assignment Help Financial Accounting
Reference no: EM131255450

Assume you are planning to start a new business that will sell innovative consumer products via an online store. You will be pitching your idea to potential investors with the goal of securing funding. Your investors are very savvy and want to review a well thought out financial forecast. Using the examples provided in Chapter 6, construct a hypothetical 5 year Cash Flow estimate including depreciation and tax-related amounts. Be sure to show your detailed calculations and document at least five key assumptions. Also, explain why cash flows occurring at different intervals should be adjusted for a common date in order to allow for a proper comparison. show Calculations Revenues Year 2017 2018 2019 2020 2021 Inventory 5,000 6,500 9,000 11,500 13,000 Revenue at 40 per shoes: $200,000 $260,000 $360,000 $460,000 $520,000 Multiply Inventory by revenue of shoes of each year. Ex. For year 1 5,000 x 40= 200,000 Expenses Year 2017 2018 2019 2020 2021 Purchasing- $15,000 $15,000 $15,000 $15,000 $15,000 Packaging- $5,000 $5,000 $5,000 $5,000 $5,000 Shipping- $ 6,500 $8,000 $8,500 $9,000 $9,500 Depreciation- $6,500 $6,500 $6,500 $6,500 $6,500 Insurance etc. $10,500 $10,500 $10,500 $10,500 $10,500 Total Expenses $ 43,500 $ 45,000 $45,500 $46,000 $46,500 Add all the expenses for each year to get total expenses.

Reference no: EM131255450

Questions Cloud

Write report to convince my boss that kfc is investing in : The company is Kentucky Fried Chicken. Prompt: Write the report to convince my boss that KFC is investing in. The following is the contents of the report: Executive Summary: Table of Contents: Introduction
Prepare partial classified balance sheet : Cone Corporation is in the process of preparing its December 31, 2016, balance sheet. There are some questions as to the proper classification of the following items: Prepare a partial classified balance sheet to show how each of the above items shou..
Major competitors in the fast food industry : Identify 1 or 2 other major competitors in the fast-food industry, and describe their sources of competitive advantage.
Purchase common stocks in two companies : A private investor has no more than $10,000 to purchase common stocks in two companies in the financial sector. After reading many analyst's reports on the two companies, she estimates the chance of a 1% loss on her capital investment in Company A..
Potential investors with the goal of securing funding : Assume you are planning to start a new business that will sell innovative consumer products via an online store. You will be pitching your idea to potential investors with the goal of securing funding. Your investors are very savvy and want to review..
Why is a correlation the most appropriate statistic : What is the correlation between student anxiety scores and number of study hours? Select alpha and interpret your findings. Make sure to note whether it is significant or not and what the effect size is.
Is your policy topic important to the general public : Is your policy topic important to the general public? Are there any organizations involved in advocacy for or against existing policy? If not, why? If so, describe how they affect your selected policy.
Calculate the jacobian matrix and linearize : These asumptions lead to probably the simplest form of a predator-prey system: Find the critical points of the system and describe them in biological terms. Calculate the Jacobian matrix and linearize around each critical point. Classify the criti..
Explain are you liable for the loan : How would you react if your partner, acting on behalf of the business, borrowed a large sum of money from the bank without first discussing it with you? Are you liable for the loan? (You answer should be at least 5-7 sentences.)

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare the entry to record repayment of the note on april

Indicate how the note and the accrued interest would appear on the balance sheet at December 31, 2009. Prepare the entry to record the repayment of the note on April 30, 2010.

  Discuss the implications of the profitability of the company

An excerpt from the Sun Company's annual report is presented below. Calculating any profit measures deemed necessary, discuss the implications of the profitability of the company.

  Prepare an annual report on given case study

ACCT2005 - Financial Accounting 2. Case Study for Annual Report Assignment. The following details are taken from the accounting records of the company as at 30 June 2016

  Calculate correct ending inventory balance on december 31

Gotham company reported a december 31 ending inventory balance of $412,000. - calculate the correct ending inventory balance on December 31.

  What was the games divisions residual income

Hysong Corporation uses residual income to evaluate the performance of its divisions. The minimum required rate of return for performance evaluation purposes is 11%. The Games Division had average operating assets of $530,000 and net operating income..

  What amount should lino include as net cash provided

Lino's 1992 net income is $150,000. What amount should Lino include as net cash provided by operating activities in the statement of cash flows? Show supporting calculations.

  Prepare the consolidated financial statements for peony

Calculate the balance of its "Investment in Nye" account and prepare the consolidated financial statements for Peony at December 31, 20X6 using the direct method.

  Compute cost of ending inventory and cost of goods

Lisa Company had 100 units in beginning inventory at a total cost of $10,000. The company purchased 200 units at a total cost of $26,000. At the end of the year, Lisa had 85 units in ending inventory. Compute the cost of the ending inventory and the ..

  Give the journal entry to record issuance

Give the journal entry to record issuance of the bond and give the journal entry to record the conversion of the bonds assuming

  Prepare dressers adjusting entry on wednesday

Prepare Dresser's adjusting entry on Wednesday, December 31, and the journal entry to record the $8,000 cash payment on Friday, January 2.

  What is their earned income credit in alternative

In 2016, Amanda and Jaxon Stuart have a daughter who is one year old. The Stuarts are full-time students and they are both 23 years old. Their only sources of income are gains from stock they held for three years before selling and wages from part-ti..

  Question a testing lab owns a hydraulic load frame which

question a testing lab owns a hydraulic load frame which was purchased for 35000 untimely in the labs fiscal year 4

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd