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B.Tech Industries produces fabricated parts for the auto industry. The owners project the following for the first three months of operations: May $10000 June $20000

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B.Tech Industries produces fabricated parts for the auto industry. The owners project the following for the first three months of operations: May $10000 June $20000 July $30000 Sales Cost of goods sold (inventory) Utilities Rent Cashflow inflows Inventory Inventory payment $1000 $2000 $3000 $1000 $1000 $1000 50% at time of sale; balance in 30 days $1000 $2000 $3000 10% of purchases in current month; balance Ein 30 days $500 $1000 $1500 $25000 $20000 Labour Owner's Equity Bank loan at 10% interest paid monthly In order to assess the feasibility of thisloperation, make up a monthly pro forma cashflow statement for 3 months and pro forma monthly income statements for the same 3 month period. Identify and discuss five indicants in total (both qualitative and quantitative) that can be used to assess the feasibility of a business. Use various indicants as the case permits to address feasibility of B.Tech. Industries. The owners feel confident about this enterprise as demand is trending favourably, competition is non- existent and they have filed for patents to protect their technology. Add columns and rows as you see fit below. Income Statements: What feasibility indicants in general would suggest that this business has any chance of succeeding? Does it appear to have a chance? Explain

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