Finance Analyzing

mqalwabir2g
IssyCakeAssignment2.xlsx

Sheet1

Issy Cake
0 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1 Year 2
Income Statement
Revenues:
Sales by Piece 5160 6450 7417.5 8530.125 9383.1375 10321.45125 11353.596375 12488.9560125 13737.85161375 15111.636775125 15867.2186138813 16660.5795445753 17493.6085218041
Sales $$$ 12900 14835 17060.25 18766.275 20642.9025 22707.19275 24977.912025 27475.7032275 30223.27355025 31734.4372277625 33321.1590891506 34987.2170436082 289631.322413271
COGS 1548 1780.2 2047.23 2251.953 2477.1483 2724.86313 2997.349443 3297.0843873 3626.79282603 3808.1324673315 3998.5390906981 4198.466045233 34755.7586895926
Gross Margins 11352 13054.8 15013.02 16514.322 18165.7542 19982.32962 21980.562582 24178.6188402 26596.48072422 27926.304760431 29322.6199984526 30788.7509983752 254875.563723679
Expenses:
Rent 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100
Wages 8200 8200 8200 8200 9400 9400 9400 9400 9400 9400 9400 9400
Operating Exp 800 800 800 800 800 800 800 800 800 800 800 800
Advertising 3000 3000 3000 1000 1000 1000 1000 1000 1000 1000 1000 1000
Startup Expenses 10000
Total Expenses 24100 14100 14100 12100 13300 13300 13300 13300 13300 13300 13300 13300
Operating Profit -12748 -1045.2 913.02 4414.322 4865.7542 6682.32962 8680.562582 10878.6188402 13296.48072422 14626.304760431 16022.6199984526 17488.7509983752 84075.5637236788
Depreciation
Interest Expense 633.33 624.71 616.04 607.30 598.51 589.66 580.75 571.78 562.75 553.66 544.51 535.29
Net Income before Taxes -13381.3333333333 -1669.9138391729 296.9831182819 3807.0199221198 4267.2451579833 6092.6722340858 8099.8158632291 10306.8421930199 12733.7339491081 14072.6480565343 15478.1139662459 16953.4566423365
Taxes
Net Income -13381.3333333333 -1669.9138391729 296.9831182819 3807.0199221198 4267.2451579833 6092.6722340858 8099.8158632291 10306.8421930199 12733.7339491081 14072.6480565343 15478.1139662459 16953.4566423365 77057.2839304384
Balance Sheet:
Assets:
Current
Cash 8225.7425426007 5254.2850852014 4241.0476278021 6729.1121704028 9668.6089130035 14424.6810756042 21178.9862002049 30131.3475830056 41501.5708498263 54201.6181528581 68297.9806939113 83860.4742348872
AR
Inventory
Prepaid Expense 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100
Total Current 10325.7425426007 7354.2850852014 6341.0476278021 8829.1121704028 11768.6089130035 16524.6810756042 23278.9862002049 32231.3475830056 43601.5708498263 56301.6181528581 70397.9806939113 85960.4742348872
Long Term
PPE 120000 120000 120000 120000 120000 120000 120000 120000 120000 120000 120000 120000
Less Depreciation
Total Long Term 120000 120000 120000 120000 120000 120000 120000 120000 120000 120000 120000 120000
Total Assets 130325.742542601 127354.285085201 126341.047627802 128829.112170403 131768.608913003 136524.681075604 143278.986200205 152231.347583006 163601.570849826 176301.618152858 190397.980693911 205960.474234887
Liabilities and Owners Equity:
Liabilities:
AP
Loan/Note 95000 93707.075875934 92405.5322577076 91095.3116820264 89776.3563025073 88448.6078871247 87112.0078156395 85766.4970770112 84412.016266792 83048.5055845046 81675.904831002 80294.1534058094
Amortization - Princ 1292.92 1301.54 1310.22 1318.96 1327.75 1336.60 1345.51 1354.48 1363.51 1372.60 1381.75 1390.96
Net Loan 95000 93707.08 92405.53 91095.31 89776.36 88448.61 87112.01 85766.50 84412.02 83048.51 81675.90 80294.15 78903.19
Total Liabilities 93707.075875934 92405.5322577076 91095.3116820264 89776.3563025073 88448.6078871247 87112.0078156395 85766.4970770112 84412.016266792 83048.5055845046 81675.904831002 80294.1534058094 78903.1903044488
Owners Equity:
PIC 50000 0 0 0 0 0 0 0 0 0 0 0 0
Retained Earnings -13381.3333333333 -1669.9138391729 296.9831182819 3807.0199221198 4267.2451579833 6092.6722340858 8099.8158632291 10306.8421930199 12733.7339491081 14072.6480565343 15478.1139662459 16953.4566423365
Capital Stock 50000 36618.6666666667 34948.7528274938 35245.7359457757 39052.7558678955 43320.0010258788 49412.6732599647 57512.4891231937 67819.3313162137 80553.0652653217 94625.713321856 110103.827288102
Total Owners Equity 50000 36618.6666666667 34948.7528274938 35245.7359457757 39052.7558678955 43320.0010258788 49412.6732599647 57512.4891231937 67819.3313162137 80553.0652653217 94625.713321856 110103.827288102 127057.283930438
Total Liabilities and Owners Equity 130325.742542601 127354.285085201 126341.047627802 128829.112170403 131768.608913004 136524.681075604 143278.986200205 152231.347583006 163601.570849826 176301.618152858 190397.980693911 205960.474234887
Cash Flow
Beginning Cash 145000 8225.7425426007 5254.2850852014 4241.0476278021 6729.1121704028 9668.6089130035 14424.6810756042 21178.9862002049 30131.3475830056 41501.5708498263 54201.6181528581 68297.9806939113
Net Income(Retained Earnings) -13381.3333333333 -1669.9138391729 296.9831182819 3807.0199221198 4267.2451579833 6092.6722340858 8099.8158632291 10306.8421930199 12733.7339491081 14072.6480565343 15478.1139662459 16953.4566423365
Change in Assets
AR 0 0 0 0 0 0 0 0 0 0 0 0
Inventory 0 0 0 0 0 0 0 0 0 0 0 0
Pre Paid Exp -2100 0 0 0 0 0 0 0 0 0 0 0
PPE -120000 0 0 0 0 0 0 0 0 0 0 0
Change in Liabilities
AP 0 0 0 0 0 0 0 0 0 0 0 0
Loan/Note -1292.924124066 -1301.5436182264 -1310.2205756813 -1318.9553795191 -1327.7484153826 -1336.6000714851 -1345.5107386284 -1354.4808102192 -1363.5106822873 -1372.6007535026 -1381.7514251926 -1390.9631013606
Cash from Financing Equity 50000
Cash from Financing Debt 95000
Ending Cash 145000 8225.7425426007 5254.2850852014 4241.0476278021 6729.1121704028 9668.6089130035 14424.6810756042 21178.9862002049 30131.3475830056 41501.5708498263 54201.6181528581 68297.9806939113 83860.4742348872
Q1 Tell her how much more money she needs
Ans1 She needs $95000
Q2 Build in her loan payments (8% interest, 7 year amortization)
Ans2
Q3 Tell her whether this business is worth pursuing (what are the returns)
Ans3

Sheet2

Data
Mortgage 95000
Interest/yr 8%
Term (yrs) 5
Compounding 12
Payment ($1,926.26)
Starting Month 1
Month 1 2 3 4 5 6 7 8 9 10 11 12
Expenses
Interest 633.33 624.71 616.04 607.30 598.51 589.66 580.75 571.78 562.75 553.66 544.51 535.29
Ammort
Principal 1292.92 1301.54 1310.22 1318.96 1327.75 1336.60 1345.51 1354.48 1363.51 1372.60 1381.75 1390.96
Check 1926.26 1926.26 1926.26 1926.26 1926.26 1926.26 1926.26 1926.26 1926.26 1926.26 1926.26 1926.26

Sheet3