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Ezwheels is a city cycle startup that is seeking to construct assumptions to fund its start up. Therefore, the company plans on starting up with

Ezwheels is a city cycle startup that is seeking to construct assumptions to fund its start up. Therefore, the company plans on starting up with 1,000 bicycles forecasting to have 5,000 customers. The company is seeking to charge $0.2 per minute for bicycle rental and company assumes that at least 200 bicycles will be rented for 5 hours a week. Therefore the company is seeking $385,000 in funding for 5% stake in the company.

The management has assumed some expenses as follow:

Start-up

Requirements

Cost Breakdown

Legal Issues on Websites e.t.c

$1,000

Office Stationery

$1,000

Insurance

$1,800

Rent

$2,000

Bicycles Purchase (1000 bicycles)

$150,000

Developing one Mobile Application

$30,000

Bicycle Maintenance Expenses

$5,000

Payroll of minimum 10 employees

$35,000

Total Costs

$250,800

Start-up Assets

Cash Required

$149,200

Other Current Assets

$10,000

Long-term Assets

$0

Total Assets

$159,200

Total Cost Requirements

$385,000

  • Prepare in separate sections needs for investments into long term assets, assumptions of working capital, assumptions for liabilities and equity, and revenues, expenses.

  • hint at balancing assets and liabilities and equity.

* guesstimate your own assumptions according to the vision of the company and your own estimations.

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