EPRENEURSHIP 470 FINANCIAL PROJECTIONS EXERCISE (CASE STUDY (John Taylor- dba Sweet Tooth Candies) cass CXSIciss proprietorship 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 $17,000 20,000 Inventory (initial stock) Equipment Leasehold Improvements Licenses & Permits.... 50/month 12,000 Working Capital Other Start-Up Costs Total. 59,700 12,90 an acntribute $11,940.00 to help launch the business; however, he is ylor has identified a bank that will requesting a small business loan for the remaining start-up costs. Mr. Ta consider lending him the requisite start-up capital with the following terns Note For this case project, use 30.4351 as the constant rate (from a finance determine the monthly loan payment (including monthly interest and on-line loan & amortization calculator (eg.www hankrate.com) a small busines principal); however, please note that an )can be used for loan purposes. Below are some assumptions that Mr. Taylor have made regarding his pro posed business for the first 12-months. Use the attached sample financial statement projections spreads heets to prepare: (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. a es erms: The sales forecast are as follows, with 60%projected to be cash sales and 40% credit sales (with 30-day terms): July $ 8,989 August.34,787 September..$41,744 October.... $50,093 November.... $60,112 December.$72,134 S12,000 February..13,200 anuary April May June .. $19,965 S21,962 $24,158 "(ostor oods OldOO be paid for in the month it is sold. : Inventory purchases are projected to be 72%ofmonthly netsales, and will EPRENEURSHIP 470 FINANCIAL PROJECTIONS EXERCISE (CASE STUDY (John Taylor- dba Sweet Tooth Candies) cass CXSIciss proprietorship 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 $17,000 20,000 Inventory (initial stock) Equipment Leasehold Improvements Licenses & Permits.... 50/month 12,000 Working Capital Other Start-Up Costs Total. 59,700 12,90 an acntribute $11,940.00 to help launch the business; however, he is ylor has identified a bank that will requesting a small business loan for the remaining start-up costs. Mr. Ta consider lending him the requisite start-up capital with the following terns Note For this case project, use 30.4351 as the constant rate (from a finance determine the monthly loan payment (including monthly interest and on-line loan & amortization calculator (eg.www hankrate.com) a small busines principal); however, please note that an )can be used for loan purposes. Below are some assumptions that Mr. Taylor have made regarding his pro posed business for the first 12-months. Use the attached sample financial statement projections spreads heets to prepare: (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. a es erms: The sales forecast are as follows, with 60%projected to be cash sales and 40% credit sales (with 30-day terms): July $ 8,989 August.34,787 September..$41,744 October.... $50,093 November.... $60,112 December.$72,134 S12,000 February..13,200 anuary April May June .. $19,965 S21,962 $24,158 "(ostor oods OldOO be paid for in the month it is sold. : Inventory purchases are projected to be 72%ofmonthly netsales, and will
