Reference no: EM133586647 , Length: word count:400
Executive Summary
Bobble In Style/Bobble Heads/Finance Investment and Consultants Financial Analysis
Bobble In Style, a startup company that produces customized bobble heads, is seeking the services of Finance and Investment (FI) consultants to provide an in-depth financial analysis of their company in preparation for an investment proposal to Shark Tank.
Problem
Bobble In Style company inventors, Mr.,and Mrs. Lee, are seeking investment funding from Shark Tank for creating and selling their Bobble heads which have a superior design over preceding Bobble Heads. They currently produce their product from their home-based office and work area. To better prepare for their meeting with the Shark Tank investors, the Lee's are asking for assistance in understanding Bobble in Style financials better beyond the basic costs. The Lee's provided FI consultants' access to all their business financials. In turn, FI performed a financial analysis of Bobble in Style.The FI team performed required computations, analysis, and aneasy-to-understand data for income statement, cash flow statement, and balance sheets, as well as financial ratios, cost classification, net present value (NPV), budget preparation, break even analysis, incremental analysis, and contribution margin.
Market Analysis
Projections indicate that Bobble in Style will sell six hundred Bobble Heads in the upcoming year. No other competitor manufactures a less rigid Bobble head than Bobble in Style with its superior custom design.
Financial Summary
Financial Metrics
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Revenue
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$33,600.00
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Net Income (Profit)
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$11,640.60
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Net Present Value (NPV)
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$ 7264.50
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Net Profit Margin
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34.7%
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Net Cash Flow Increase from Beginning to End of 20xx (past Year)
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$10,740.00
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Expenses
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Inventory Management
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No change
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Liquidity
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Debt
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Recommendations to Mr. and Mrs. Lee
Consider hiring a manager to better control inventory and consider paying yourselves.
Conclusion
Mr. and Mrs. Lee are cautious cash managers with a positive cash flow with no debts or liabilities and provide an excellent investment opportunity.