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Bob has a client who wants some advice. The client, Sara, has a small buisness which is running into cash-flow problems. She is already in

Bob has a client who wants some advice. The client, Sara, has a small buisness which is running into cash-flow problems. She is already in too much debt, so she would prefer not to take a bank loan. Bob has come up with an option to generate $200000 of new financing. Can you draft a memo for Bob, with a decision based on a) Financial Analysis b) Non-quantitative factors Some things about Sara's buisness are: - have a secret process to produce baseball equipment manufacturing and have deep expertise, and their value is based on being the best at making baseball equipment - last years net income is $80000 (this yr $88000) and is growing 10% per yr and should be analyzed over a 3-year period: Sara contributes $100000; New Partner contributes $200000 Sara's salary = $50000; Partners salary = $30000 Remaining income is split 7:3; Sara: Partner Prepare a memo with recommendations and conclusions

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