· Sources and use of funds
Initially an investment of family and friends and that of the owner (from inheritance) will equal $60,000, and it seems appropriate at the beginning to get an initial small business financial loan of $50,000 and gradually pay it down over time. Our total initial investment at the beginning is $110,000. With this current financial plan, it looks like a huge loss specifically in the Ending Cash Balance, but more attention should be placed on the Net profit each consecutive month per the cash flow statement. Even though the Cash balance is a negative up until the middle portion of the following year, our Net Cash Flow has reached the 1-million-dollar mark at the end of year 2 which was the goal.
· Plan assumptions
Our plan in it’s present form is assuming that there are no changes in current number of employee’s or a significant increase customer orders. If an increase in orders happens to play out the increase in revenue and in turn employees and transportation channel elements will be affected but overall will compensate each other. With a central headquarters located within the major city population and plans of including a bigger manufacturing and distribution facility, which is not reflected in the current financials, should be a hopeful reality.
· Break-even analysis
Break-even analysis shows 132,718 monthly average and our Balance sheet’s liabilities and net worth for the first quarter reflects 176,542 and increasing each quarter after. This indication shows us there is advancement in the positive direction, on a monthly and quarterly basis.
tivolis
examplework.docx
0
