C. Discuss your companys financial projections and valuation in relation to the companys quarter six (Q6) statement of cash flow, balance sheet, income statement, stock history report by doing the following:

2. Calculate the projected financial return on investment (ROI) at end of quarter six (Q6) and explain the effects that this return would have for an investor.

Cash Flow
Report Item	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Quarter 5	Quarter 6
Beginning Cash Balance	0	780,150	976,883	969,700	1,597,252	297,082
Receipts and Disbursements from Operating Activities
Revenues	0	358,926	413,976	867,400	1,133,055	2,728,151
- Rebates	0	0	0	12,900	13,200	0
- Production	0	118,519	124,533	283,036	369,520	859,291
- Research and Development	30,000	0	0	872,296	813,427	90,000
- Quality Costs	0	45,257	23,364	34,375	40,801	85,541
- System Improvement Costs	0	5,000	40,000	750,125	228,030	73,010
- Advertising	0	39,661	49,661	119,742	130,742	124,742
- Internet Marketing Expenses	0	1,000	1,000	13,600	5,600	5,500
- Sales Force Expense	0	35,206	70,518	72,736	111,580	149,035
- Store Expense	200,000	146,000	75,000	75,000	211,000	209,000
- Marketing Research	0	15,000	15,000	15,000	15,000	15,000
- Shipping	0	5,474	6,180	11,038	14,325	30,388
- Excess Capacity Cost	0	21,076	35,904	0	0	0
- Income Taxes	0	0	0	0	0	0
+ Interest Income	150	0	0	0	0	0
- Interest Charges	0	0	0	0	0	1,808
+ Other Income	0	0	0	0	0	0
- Other Expenses	0	0	0	0	0	0
= Net Operating Cash Flow	-229,850	-73,267	-27,183	-1,392,448	-820,170	1,084,836
Investing Activities
Fixed Production Capacity	480,000	240,000	480,000	480,000	480,000	480,000
= Total Investing Activities	480,000	240,000	480,000	480,000	480,000	480,000
Financing Activities
Increase in Common Stock	1,500,000	500,000	500,000	2,500,000	0	0
+ Borrow Conventional Loan	0	0	0	0	0	100,000
- Repay Conventional Loan	0	0	0	0	0	0
+ Borrow Emergency Loan	0	0	0	0	0	0
- Repay Emergency Loan	0	0	0	0	0	0
- Deposit 3 Month Certificate	10,000	0	0	0	0	0
+ Withdraw 3 Month Certificate	0	10,000	0	0	0	0
= Total Financing Activities	1,490,000	510,000	500,000	2,500,000	0	100,000
Cash Balance, End of Period	780,150	976,883	969,700	1,597,252	297,082	1,001,918

Balance Sheet
Report Item	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Quarter 5	Quarter 6
Current Assets
Cash	780,150	976,883	969,700	1,597,252	297,082	1,001,918
+ 3 Month Certificate of Deposit	10,000	0	0	0	0	0
Long Term Assets
+ Net Fixed Assets	480,000	700,000	1,150,000	1,580,000	1,990,000	2,380,000
= Total	1,270,150	1,676,883	2,119,700	3,177,252	2,287,082	3,381,918
Debt
Conventional Bank Loan	0	0	0	0	0	100,000
+ Emergency Loan	0	0	0	0	0	0
Equity
+ Common Stock	1,500,000	2,000,000	2,500,000	5,000,000	5,000,000	5,000,000
+ Retained Earnings	-229,850	-323,117	-380,300	-1,822,748	-2,712,918	-1,718,082
= Total	1,270,150	1,676,883	2,119,700	3,177,252	2,287,082	3,381,918

Income Statement
Report Item	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Quarter 5	Quarter 6
Gross Profit
Revenues	0	358,926	413,976	867,400	1,133,055	2,728,151
- Rebates	0	0	0	12,900	13,200	0
- Cost of Goods Sold	0	118,519	124,533	283,036	369,520	859,291
= Gross Profit	0	240,407	289,443	571,464	750,335	1,868,860
Expenses
Research and Development	30,000	0	0	872,296	813,427	90,000
+ Quality Costs	0	45,257	23,364	34,375	40,801	85,541
+ System Improvement Costs	0	5,000	40,000	750,125	228,030	73,010
+ Advertising	0	39,661	49,661	119,742	130,742	124,742
+ Internet Marketing Expenses	0	1,000	1,000	13,600	5,600	5,500
+ Sales Force Expense	0	35,206	70,518	72,736	111,580	149,035
+ Store Expense	200,000	146,000	75,000	75,000	211,000	209,000
+ Marketing Research	0	15,000	15,000	15,000	15,000	15,000
+ Shipping	0	5,474	6,180	11,038	14,325	30,388
+ Excess Capacity Cost	0	21,076	35,904	0	0	0
+ Depreciation	0	20,000	30,000	50,000	70,000	90,000
= Total Expenses	230,000	333,674	346,627	2,013,912	1,640,505	872,216
Operating Profit	-230,000	-93,267	-57,183	-1,442,448	-890,170	996,645
Miscellaneous Income and Expenses
+ Other Income	0	0	0	0	0	0
- Other Expenses	0	0	0	0	0	0
= Earnings Before Interest and Taxes	-230,000	-93,267	-57,183	-1,442,448	-890,170	996,645
+ Interest Income	150	0	0	0	0	0
- Interest Charges	0	0	0	0	0	1,808
= Income Before Taxes	-229,850	-93,267	-57,183	-1,442,448	-890,170	994,836
- Loss Carry Forward	0	0	0	0	0	994,836
= Taxable Income	0	0	0	0	0	0
- Income Taxes	0	0	0	0	0	0
= Net Income	-229,850	-93,267	-57,183	-1,442,448	-890,170	994,836
Earnings per Share	-15	-5	-2	-29	-18	20

Stock History
Stock Type	Name of Owner	Shares	Price Per Share	Total Amount	Quarter
Common Stock	Executive Team	15,000	100	1,500,000	1
Common Stock	Executive Team	5,000	100	500,000	2
Common Stock	Executive Team	5,000	100	500,000	3
Common Stock	Venture Capitalists	25,000	100	2,500,000	4