2.Year 1: Monthly and year-end income statements and cash flows; year-end balance sheet to go with Brendan Brustad G00084675 BA470 Entpreneurship W5 Assignment (already on Course Hero)
List of key assumptions that drive financial model: Start-up Summary: The required start-up assets include start-up inventory: 1. Coffee beans 2. Coffee filters, baked goods, salads, sandwiches, tea, beverages, etc. 3. Retail supplies (napkins, coffee bags, cleaning, etc.) 4. Office supplies Equipment includes: 1. Coffee Grinder 2. Coffee Maker 3. Coffee Machine 4. Microwave, toaster, blender etc 5. Office Equipment (Phone, PC, Furniture, etc) Sources of Funds: Mr. Smith Clark will invest $80,000 Mr. Johnson Anderson will invest $50,000 Long term Loan from Bank (five years) $20,000 Start Up: Start up Requirements: START UP EXPENSE In Dollars Legal 1,200 Stationery etc. 450 Promotion 3,000 Consultants 2,500 Insurance 2,500 Rent 3,750 Remodeling 8,000 Others 2,500 Total start up expense 23,900 START UP ASSETS Cash in hand 56,000 Start up Inventory 15,100 Long term Assets 55,000 Total Assets 126,100 Total Requirement 150,000 Assumptions: 1. Total start-up loss is assumed in the amount of $23,900. 2. Margin Profit will increase 60% per annum. 3. Depreciation for equipment will be charged 6% per annum. 4. Income tax will be charged at 10% per annum of pre-tax profit. 5. Interest rate will be 10% for five years. Year 1 Year 2 Year 3 Year 4 Year 5 Industry Profile Percent of Total Assets Total Current 82.7% 81.3% 86.2% 90% 92.4% 45% 17% 19% 14% 10% 8% 54% 100% 100% 100% 100% 100% 100% Sales 100% 100% 100% 100% 100% 100% Gross Margin 60% 60% 60% 60% 60% 49.50% Assets Long term Assets Total Assets Percent of Sales Ratio Analysis: Ratios show that our shop has higher current and lesser long term assets than industry. Gross profit of our shop is higher than the industry which shows our good position in the industry. Year 1: Monthly and year-end income statements and cash flows; year-end balance sheet. Calculations are done in Excel sheet which is attached with this document. List of key assumptions that drive financial model: Start-up Summary: The required start-up assets include start-up inventory: 1. Coffee beans 2. K-Cups 3. Coffee filters, baked goods, tea, beverages, etc. 4. Retail supplies (napkins, coffee bags, cleaning, etc.) 5. Office supplies Equipment includes: 1. Coffee Grinder 2. Coffee Maker 3. Coffee Machine 4. Microwave, toaster, blender etc 5. Office Equipment (Phone, PC, Furniture, etc) Sources of Funds: Mr. Rick Blake will invest $80,000 Mr. Jeff Blake will invest $50,000 Long term Loan from Bank (five years) $20,000 Start Up: Startup Requirements: START UP EXPENSE In Dollars Legal 1,200 Stationery etc. 500 Promotion 1,100 Consultants 2,500 Insurance 1,500 Rent 10 dollars per yard with 2K build 1 year lease 13,600 Ref http://www.cityfeet.com/cont/il/belleville officespace Remodeling 2,000 Others 1,500 Total start up expense 23,900 START UP ASSETS Cash in hand 80,000 Start up Inventory 15,000 Long term Assets 55,000 Total Assets 155,100 Total Requirement 184,850 Assumptions: 1. Total start-up loss is assumed in the amount of $23,950. 2. Margin Profit will increase 60% per annum. 3. Depreciation for equipment will be charged 6% per annum. 4. Income tax will be charged at 10% per annum of pre-tax profit. 5. Interest rate will be 10% for five years. Year 1 Year 2 Year 3 Year 4 Year 5 Industry Profile Percent of Total Assets Total Current 82.7% 81.3% 86.2% 90% 92.4% 45% 17% 19% 14% 10% 8% 54% 100% 100% 100% 100% 100% 100% Sales 100% 100% 100% 100% 100% 100% Gross Margin 60% 60% 60% 60% 60% 49.50% Assets Long term Assets Total Assets Percent of Sales Ratio Analysis: Our Ratios show that our shop has higher current and lesser long term assets than industry. Gross profit of our shop is higher than the industry which shows our good position in the industry. Year 1: Monthly and year-end income statements and cash flows; year-end balance sheet. Calculations are done in Excel sheet which is attached with this document
