Presentation to Lender

Balance Sheet Comparison

Cloud_Ware Allyson Rush
Balance Sheet
	As of November 30th	As of December 31st	Dollar Amount Change	% Change
ASSETS
Current Assets
Bank Accounts
101 Checking	58,244.59	53,493.52	-4,751.07	-0.0815710094
Total Bank Accounts	$58,244.59	$53,493.52	-4,751.07	-0.0815710094
Accounts Receivable			0.00	N/A
105 Accounts Receivable (A/R)	0.00	400.00	400.00	N/A
Total Accounts Receivable	$0.00	$400.00	400.00	N/A
Other Current Assets			0.00	N/A
115 Merchandise Inventory	-40.00	9,870.00	9,910.00	-247.75
123 Prepaid Rent	6,000.00	0.00	-6,000.00	-1
125 Prepaid Insurance	2,250.00	2,250.00	0.00	0
Total Other Current Assets	$8,210.00	$12,120.00	3,910.00	0.4762484775
Total Current Assets	$66,454.59	$66,013.52	-441.07	-0.0066371638
Fixed Assets			0.00	N/A
135 Computer Equipment	10,000.00	10,000.00	0.00	0
137 Accumulated Depreciation	-800.00	-800.00	0.00	0
Total Fixed Assets	$9,200.00	$9,200.00	0.00	0
TOTAL ASSETS	$75,654.59	$75,213.52	-441.07	-0.0058300494
LIABILITIES AND EQUITY			0.00	N/A
Liabilities			0.00	N/A
Current Liabilities			0.00	N/A
Accounts Payable			0.00	N/A
201 Accounts Payable (A/P)	2,695.00	3,120.00	425.00	0.1576994434
Total Accounts Payable	$2,695.00	$3,120.00	425.00	0.1576994434
Other Current Liabilities			0.00	N/A
205 Loan Payable	5,000.00	5,000.00	0.00	0
Total Other Current Liabilities	$5,000.00	$5,000.00	0.00	0
Total Current Liabilities	$7,695.00	$8,120.00	425.00	0.0552306693
Total Liabilities	$7,695.00	$8,120.00	425.00	0.0552306693
Equity			0.00	N/A
301 Common Stock	60,000.00	60,000.00	0.00	0
305 Opening Balance Equity	0.00	0.00	0.00	N/A
318 Retained Earnings			0.00	N/A
Net Income	7,959.59	7,093.52	-866.07	-0.1088083683
Total Equity	$67,959.59	$67,093.52	-866.07	-0.0127438968
TOTAL LIABILITIES AND EQUITY	$75,654.59	$75,213.52	-441.07	-0.0058300494

Pro Forma Budget

Cloud_Ware Allyson Rush
Profit and Loss
2017
	Month End October 31st	Month End November 30th	Month End December 31st	Dollar Amount Change	% Change
Income
401 Sales	6,000.00	11,920.00	13,220.00	7,220.00	1.2033333333
Total Income	$6,000.00	11,920.00	$13,220.00	7,220.00	1.2033333333
Cost of Goods Sold				0.00	N/A
501 Cost of Goods Sold		5,960.00	6,610.00	6,610.00	N/A
Total Cost of Goods Sold		5,960.00	$6,610.00	6,610.00	N/A
Gross Profit	$6,000.00	5,960.00	$6,610.00	610.00	0.1016666667
Expenses				0.00	N/A
601 Advertising	125.00	$250.00	330.00	205.00	1.64
603 Bank Charges	20.00	$20.00	20.00	0.00	0
605 Dues & subscriptions	150.00		125.00	-25.00	-0.1666666667
607 Depreciation Expense	800.00			-800.00	-1
609 Freight & Delivery	64.65	89.15	52.65	-12.00	-0.1856148492
611 Insurance	750.00		109.71	-640.29	-0.85372
619 Meals & Entertainment	126.40	46.40	200.11	73.71	0.5831487342
621 Office Supplies	226.85	111.82	6,000.00	5,773.15	25.4491955036
625 Repairs & Maintenance	140.00		150.00	10.00	0.0714285714
627 Shipping and Delivery expense	47.00		47.00	0.00	0
629 Stationary and Printing	425.22	127.96	115.82	-309.40	-0.7276233479
633 Telephone	158.32	$158.32	240.45	82.13	0.5187594745
635 Utilities	79.00	$84.32	85.33	6.33	0.0801265823
Total Expenses	$3,112.44	$888.97	7,476.07	4,363.63	1.4019965044
Net Operating Income	$2,887.56	5,072.03	866.07	-2,021.49	-0.70006857
Net Income	$2,887.56	5,072.03	866.07	-2,021.49	-0.70006857
Cloud_Ware
Pro Forma Budgeted Income Statement
12 Month Projection
	January	February	March	April	May	June	July	August	September	October	November	December
Income
401 Sales	14000	14500	15000	15500	16000	16500	17000	17500	18000	18500	19000	19500
402 Services
Total Income	14000	14500	15000	15500	16000	16500	17000	17500	18000	18500	19000	19500
Cost of Goods Sold
501 Cost of Goods Sold
Total Cost of Goods Sold
Gross Profit
Expenses
601 Advertising	125.00			125.00			125.00		125.00	125.00		330.00
603 Bank Charges	20.00			20.00			20.00		20.00	20.00		20.00
605 Dues & Subscriptions	150.00		150.00	150.00		150.00	150.00		150.00	150.00		125.00
607 Depreciation Expense	800.00			800.00		800.00	800.00			800.00
609 Freight & Delievery	64.65			64.65		64.65	64.65			64.65
611 Insurance	750.00			750.00			750.00			750.00
619 Meals and Entertainment	126.40	46.40		126.40	46.40		126.40			126.40	46.40
621 Office Supplies	226.85	111.82		226.85	111.82		226.85			226.85	111.82	6,000.00
623 Rent or Lease	140.00		140.00	140.00			140.00	140.00		140.00
625 Repair & Maintenance	47.00		47.00	47.00			47.00	47.00		47.00
627 Shipping Freight & Delivery	425.22		425.22	425.22			425.22	425.22		425.22
629 Stationery & Printing	158.32			158.32			158.32			158.32
633 Telephone	79.00			79.00			79.00			79.00
635 Utilities	85.33			85.33			85.33			85.33
Total Expenses	3,197.77	158.22	762.22	3,197.77	158.22	1,014.65	3,197.77	612.22	295.00	3,197.77	158.22	6,475.00
Net Operating Income
Net Income	10,802.23	14,341.78	14,237.78	12,302.23	15,841.78	15,485.35	13,802.23	16,887.78	17,705.00	15,302.23	18,841.78	13,025.00

Company Analysis

	Instructions: Address the following questions in FULL SENTENCES. Be specific and detailed, supporting your answers with financial information when possible.
	Cloud_Ware
	Company Analysis

What is the financial situation of the company as of November 30? As of November 30th the company's expenses are lower so their net income is higher than the month prior.

Did the financial situation improve, remain the same, or start to decline through the month of December? The company's profit decreased from the month of November to the month of December.

What areas of strength exist in the company? What are the company's weaknesses? The company's strength currently is that it is continuing to be profitable. I think that the company overall needs to watch the expenses vs. sales ratio so that it is able to make more of a profit. If the company is spending more on marketing and advertising than what they are bringing in this could cause a financial decrease. This won't allow the company much room for error or anything else going on.

What are some areas where the company has opportunities for growth for the company's financial situation? I think that one room for growth would be investments. I think that if this was an actual company that I was running I would make an account for investments to put money aside and eventually invest in stocks to grow tht ecompany financially.

Calculate the following ratios. Show your work. Debt to Equity Ratio (Total Liabilities/Equity) This ratio provides a look at how much the creditors have put into the company compared to how much the owners have put into the company. November 2017: 7695/67959.59= 33.72% December 2017: 8120/ 67093.52= 12.10% Current Ratio (Current Assets/Current Liabilities) This provides a look at whether the business has enough current assets to pay their current liabilities. November 2017: 66454.59/ 7695= 8.63% December 2017: 66013.52/ 8120= 8.13% Profit Margin (Net Income/Sales) This provides a measure of how much profit is earned on each dollar of sales.

Why are you requesting the loan? What is the proposed expansion of the business? The loan will be used for marketing of a potential new branch that could be opened in another market if the company continues to perform financial. This would also work as an investment opportunity.

What are the anticipated impacts on the financial ratios due to the proposed expansion? Consider added principal to the liabilities and added assets on the balance sheet, as well as the impacts to the profitability on the income statement. In Mod 05, you will explore these further- let's hear your initial thoughts here though. Some things that could impact the financial situation of the company would be if the company were to lose business and also if there was something that came up legally against the company. These two items could hurt the financial situation of the company as the company would be losing business.