Entrepreneurial Finance 6th Edition Leach/Melicher Part 7 Capstone Cases Case 1: Eco- Products, Inc. (pages 617-634)

G. In mid-2007, Eco-Products management prepared a five-year (2007-2011) projection of revenues and expenses (see Table 1). What annual rates of growth were projected for net sales? Make a "back-of-the-envelope" estimate of the amounts of additional assets needed to support the sales forecasts. How might these assets be financed? Prepare a "rough" estimate of the possible size of external financing needed to support these sales projections

12/31/06 12/31/05 Consolidated Balance Sheets Assets Current Assets Cash 157,958 125,268 101,690 Accounts Receivable 364,879 3,598 o Prepaid Expenses 361,906 862,728 Inventory o o Deffered Income Tax 625,152 1,352,875 Total Current Assets 971,177 Property and Equipment 411,387 (241,074) (241,074) Accumulated Depreciation Net Property Equipement 170,313 730,103 Intangible Assets o 20,500 Trademarks other 0 0 o o Accumulated Amortization Net Intangible Assets 20,500 Total Assets 2,103,478 795,465 12/31/07 51,667 1,330,562 793,282 2,415,916 42,000 4,633,427 1,349,702 (360,304) 989,398 20,800 5,440 (2,050) 24,190 5,647,015