Question
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 |
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Requirements |
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Cost Breakdown |
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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 |
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Start-up Assets |
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Cash Required | $149,200 |
Other Current Assets | $10,000 |
Long-term Assets | $0 |
Total Assets | $159,200 |
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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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