EPRENEURSHIP 470 ANCIAL PROJECTIONS EXERCISE T'aylor- dba Sweet Tooth Candies) FIN (CASE STUDY cass exsrciss John Taylor is contemplating the start of his own business, w His start-up costs are as follows: which will be structured as a sole propri $17,000 20,000 Inventory (initial stock) Equipment Licenses & Permits.... Working Capital provements 50 menih 12,000 Other Start-Up Costs Total. . $59,700 a small businen contribute $11,940.00 to help launch the business; however, he is ylor has identified a bank that will Mr. Taylor has saved his money and can consider lending him the requisite start-up capital with Note For this case project, use 30.4351 as the const determine the monthly loan payment (ncluding monthly on-line loan & amortization calculator (eg. www.hankrate.com) the following terms: 4 years at 10% interest. ant rate (from a finance constant annual percentage table) to interest and principal); however, please note that an can be used for loan purposes. are some assumptions that Mr. Taylor have made regarding his proposed business for the first 12-mo (1) Sources & Uses of Funds Spreadsheet. (2) Pro-forma Income Statement for the first 3-months of operation. (3) Pro-forma Cash Flow Statement for the first 3-months of operation. nths. Use the attached sample financial statement projections spreadsheets to prepare: Sales&Terms: The sale (with 30-day terms): es forecast are as follows, with 60%projected to be cash sales and 40% credit sales January$12,000 February.13,200 July$28,989 August.$34,787 September...$1,744 October.... $50,093 November..60,112 December.$72,134 April May June $19,965 S21,962 $24,158 Costof oo . Sold(CO : Inventory purchases are projected to be 72%ofmonthly netsales, and will be paid for in the month it is sold