Case study $2$: Liene

Liene decides to start an economic consultancy firm, in the form of Ltd$.,$ as of January $2020.$ The Ltd will be set up on $2$ January at the notary office in small city. Liene will invest $40,000$ in equity, in the form of capital share. The investment will comprise $20,000$ in cash; and a car worth $20,000.$

The rent will be $3,000$ per month, due on the ${15}^{th}$ of every month. The office furnishing, worth $15,000,$ will be delivered in January. For this delivery, a trade credit of one month applies.

The depreciation of the furnishing amounts to $20\%$ of the purchase price per year. The car is depreciated by $5,000$ per year.

On stationary, $500$ will be spent monthly. Liene allocates herself a gross monthly salary of $8,000.$ As of the month of September, a secretary will be employed at a gross monthly salary of $2,500.$

After the start$-$up period, Liene expects to generate a monthly sales revenue of $15,000.$ During the first six months of $2020,$ the sales revenue will be $8,000$ per month. The customers receive a credit period of one month.

As well as offering a range of consultancy services, Liene provides training for bank employees. She will receive $2,000$ per month for this.

Any cash receipts and payments take place via current account at the bank. This current account offers a line of credit of maximum $20,000.$ For $2020,$ it can be assumed that the interest cost is $1,000.$