Project Business Presentation/Rocket Pitch

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ENT_financial_packet11_WEEK6ASSIGNMENT.xlsx

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Income Statement

Company Name
By: Your name
Income Statement
Years 1 to 5
($)
	Year 1	Year 2	Year 3	Year 4	Year 5
NET REVENUES	720,000	630,000	540,000	595,000	615,000
COST OF REVENUE	317,999	317,999	317,999	317,999	317,999
% of Revenues	44%	50%	59%	53%	52%
GROSS PROFIT	402,001	312,001	222,001	277,001	297,001
% of Revenues	56%	50%	41%	47%	48%
OPERATING EXPENSES
Sales & Marketing	38,000	38,800	35000	36200	35600
Research & Development	3500	4000	0	0	0
General and Administration	45000	41000	38800	39000	40000
Total Operating Expenses	82,500	87,800	73800	75200	75600
% of Revenues	17%	18%	0%	0%	0%
EARNINGS FROM OPERATIONS	319,501	224,201	148,201	201,801	221,401
EXTRAORDINARY INCOME / (EXPENSE)	0	0	0	0	0
EARNINGS BEFORE INTEREST & TAXES	319,501	224,201	148,201	201,801	221,401
INTEREST INCOME / (EXPENSE)	-2,250	-2,335	0	0	0
NET EARNINGS BEFORE TAXES	317,251	221,866	148,201	201,801	221,401
TAXES	35%	35%	35%	35%	35%
NET EARNINGS	206,213	144,213	96,331	131,171	143,911
% of Revenues	0.2864071528	0.2289093651	0.1783907407	0.2204554622	0.234001626

Cash Flow Statement

Company Name
By: Your name
Cash Flow Statememt
Year 1 by Months
Cash Flow Statement															Year 1
Year 1 by Months														Estimated	Annual
	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	Projection
OPERATING ACTIVITIES
Net Earnings	17184	17184	17184	17184	17184	17184	17184	17184	17184	17184	17184	17184	206213	206213
Depreciation	1,250	1,250	1250	1250	1250	1250	1250	1250	1250	1250	1250	1250	15000	15000
Working Capital Changes
(Increase)/Decrease Accounts Receivable	0	0	0	0	0	0	0	0	0	0	0	0	0	0
(Increase)/Decrease Inventories	7667	7667	7667	7667	7667	7667	7667	7667	7660	7667	7667	7667	92000	0
(Increase)/Decrease Other Current Assets	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Increase/(Decrease) Accts Pay & Accrd Expenses	0	0	0	0	0	0	0	0	0	0	0	0		0
Increase/(Decrease) Other Current Liab	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Net Cash Provided/(Used) by Operating Activities	26101	26101	26101	26101	26101	26101	26101	26101	26094	26101	26101	26101	313213	0
INVESTING ACTIVITIES
Property & Equipment	33333	33333	33333	33333	33333	33333	33333	33333	33333	33333	333333	33333	400000	0
Other													0	0
Net Cash Used in Investing Activities	0	0	0	0	0	0	0	0	0	0	0	0	0	0
FINANCING ACTIVITIES
Increase/(Decrease) Short Term Debt	6401											0	0	0
Increase/(Decrease) Curr. Portion LTD												0	0	0
Increase/(Decrease) Long Term Debt	0											0	0	0
Increase/(Decrease) Common Stock	0											0	0	0
Increase/(Decrease) Preferred Stock	0											0	0	0
Dividends Declared												0	0	0
Net Cash Provided / (Used) by Financing	6401	0	0	0	0	0	0	0	0	0	0	0	6401	0
INCREASE/(DECREASE) IN CASH	61013	61333	61033	61183	60933	60833	61083	61013	61140	60933	26101	26101
CASH AT BEGINNING OF PERIOD	100000	0	0	0	0	0	0	0	0	0	0	0
CASH AT END OF PERIOD	61013	61333	61033	61183	60933	60833	61083	61013	61140	60933	26101	26101									Year 2	Year 3	Year 4	Year 5
																					Annual	Annual	Annual	Annual
																					Projection	Projection	Projection	Projection
	Year 2					Year 3					Year 4					Year 5
	1st Qtr	2nd Qrtr	3rd Qrtr	4th Qrtr	Total	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	Total	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	Total	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	Total
OPERATING ACTIVITIES
Net Earnings	36054	36054	36054	36054	144213	24083	24083	24083	24083	96332	32793	32793	32793	32793	131172	35978	35978	35978	35978	143912	1320	2300	3050	4350
Depreciation	3750	3750	3750	3750	15000	3750	3750	3750	3750	15000	3750	3750	3750	3750	15000	3750	3750	3750	3750	15000	500	1650	2130	3370
Working Capital Changes
(Increase)/Decrease Accounts Receivable	2500	2500	2500	2500	10000	2000	2000	2000	2000	8000	625	625	625	625	2500	-2125	-2125	-2125	-2125	-8500	0	-450	-300	500
(Increase)/Decrease Inventories	0	0	0	0	0	-12500	-12500	-12500	-12500	-50000	5500	5500	5500	5500	22000	3250	3250	3250	3250	13000	-200	150	1300	1190
(Increase)/Decrease Other Current Assets	2000	2000	2000	2000	8000	0	0	0	0	0	3175	3175	3175	3175	12700	-4550	-4550	-4550	-4550	-18200	0	0	200	510
Increase/(Decrease) Accts Pay & Accrd Expenses	2538	2538	2538	2538	10152	-9000	-9000	-9000	-9000	-36000	0	0	0	0	0	0	0	0	0	0	0	0	150	100
Increase/(Decrease) Other Current Liab	0	0	0		0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	230	450	0	630
Net Cash Provided/(Used) by Operating Activities	46842	46842	46842	46842	187365	8333	8333	8333	8333	33332	45843	45843	45843	45843	183372	36303	36303	36303	36303	145212	1850	4100	6530	10650
INVESTING ACTIVITIES
Property & Equipment	0	0	0	0	0	0	0	0	0		0	0	0	0		0	0	0	0
Other	0	0	0	0		0	0	0	0		0	0	0	0		0	0	0	0
Net Cash Used in Investing Activities	0	0	0	0		0	0	0	0		0	0	0	0		0	0	0	0
FINANCING ACTIVITIES
Increase/(Decrease) Short Term Debt	6401				0	0			0	0	0			0	0	0			0	0	0	0	1000	0
Increase/(Decrease) Curr. Portion LTD	0			0	0	0			0	0	0			0	0	0			0	0	0	0	0	0
Increase/(Decrease) Long Term Debt	0			0	0	0			0	0	0			0	0	0			0	0	0	0	0	0
Increase/(Decrease) Common Stock	0			0	0	0			0	0	0			0	0	0			0	0	0	0	0	0
Increase/(Decrease) Preferred Stock	0			0	0	0			0	0	0			0	0	0			0	0	0	0	0	0
Dividends Declared	0			0	0	0			0	0	0			0	0	0			0	0	0	0	0	0
Net Cash Provided / (Used) by Financing	6401	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	1000	0
INCREASE/(DECREASE) IN CASH	53243	46842	46842	46842	187365	8333	8333	8333	8333	33332	45843	45843	45843	45843	183372	36303	36303	36303	36303	145212	1850	4100	7530	10650
CASH AT BEGINNING OF PERIOD	3000	4500	7700	13		2150	2800	3800	5200		6250	8000	9180	11250		13780	16170	18520	21410		300	2150	6250	13780
CASH AT END OF PERIOD	128000	128000	128000	128000		10483	11133	12133	13533		52093	53843	55023	57093		50083	52473	54823	57713		2150	6250	13780	24430

Balance Sheet

Company name
By: Your name
Balance Sheet
Year 1
($)
	Begin	Year 1	Year 2	Year 3	Year 4	Year 5
ASSETS
CURRENT ASSETS		0
Cash		25000.00	30000	40000	32000	26500
Accounts Receivable		50000.00	40000.00	48000.00	50500.00	42000.00
Inventories		92000.00	100000.00	50000.00	72000.00	85000.00
Other Current Assets		0.00	0.00	46749.00	59449.00	41249.00
Total Current Assets	0.00	167000.00	170000.00	184749.00	213949.00	194749.00
PROPERTY & EQUIPMENT	0	400000.00	375000.00	350000.00	335000.00	320000.00
TOTAL ASSETS	0.00	567000.00	545000.00	534749.00	548949.00	514749.00
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short Term Debt	0	6401	0	0	0	0
Accounts Payable & Accrued Expen		45850	56000	20000	34200	0
Other Current Liab		154749	154749	154749	154749	154749
Current portion of long term debt	0	0	0	0	0	0
Total Current Liabilities	0	207000	210749	174749	188949	154749
LONG TERM DEBT (less current portion)	0	360000	360000	360000	360000	360000
TOTAL LIABILITIES & EQUITY	0.00	567000	570749	534749	548949	514749

Assumptions

Assumptions for Financial Projections
Description	Value	Comment
Revenue Assumptions
Unit Sales Price	$60	per unit sold
Overall Market Size	20,000	potential customers
Target Market Size	15,000	potential customers in niche
Year One Sales Projections	12,000	units sold
Year Two Sales Projections	10,500	units sold
Year Three Sales Projections	9,000	units sold
Variable Cost Assumptions
Materials	$15	per unit sold
Labor	$10	per unit sold
Overhead	$5	per unit sold
Sales Commission (%)	5%	of Unit Sale Price
Sales Commission ($)	$3	per unit sold
Fixed Cost Assumptions
Plant Operations	$67,000	per year
Telecommunications	$2,000	per year; includes phones and internet
Legal Services	$4,000	per year
Accounting Services	$5,500	per year
Insurance	$10,000	per year
Personnel Assumptions
Employees (#)	300
Salary per employee ($)	$2,000	per employee
Employee Salaries ($)	$60,000
Salespeople (#)	100
Base Salary per Salesperson ($)	$50	per salesperson
Sales Base Salaries ($)	$5,000
Personnel Overead Rate (%)	15%	of total salaries
Personnel Overhead ($)	$9,750
Start-Up Cost Assumptions
Plant Site Development	$5,000,000	one-time cost to build or buy
Equipment Costs	$6,500,000	one-time cost to purchase equipment
Working Capital	$1,950,000
Financing Assumptions
Capital from Investors	$1,250,000	from sale of 25% equity in company
Capital from Commercial Loan	$1,800,000
Loan Interest Rate	6%	annual percentage rate (APR)
Loan Term	20	years; lifetime of loan
Periods per Year	12	payment periods per year
Total Periods	240	periods for life of loan
Monthly Loan Servicing Cost	$12,895.76
Annual Loan Servicing Cost	$154,749.11
References:		Benchmark Companies:
Amazon Annual reports (2012,2013,2014) http://www.emarketer.com/Article/Total-US-Retail-Sales-Top-3645-Trillion-2013-Outspace-GDP-Growth-1010756. 2015 Walmart Annual Report http://corporate.walmart.com/ news_news-archive/2014/02/20/walmart-raises-annual-dividends-to-192-per-share-representing-the-41st-consecutive-year-of-dividend-increases.		Based on the pro-forma statements as well as financial analysis of Amazon and Walmart companies, their selling prices reflects their perceived stability. Their revenues are forecasted further ahead at 15 percent compared to ours which is at 5 percent. However, profit margins of the first two years remain stable and comparable to historical trends. Amazon selling price per unit of the output is trading at over $400, and their consolidated sales are growing by more than 25 percent yearly. This is the main reason behind their maintained stability. In comparison with our pro-forma statements, it can be notfed that a finished good output currently sells at $60, nonetheless, we foresee a growth in various segments. Based on the current trend, am pretty cofident that with a slight injection of more debt capital we are to see better investsments for the next 10 years.