Hey,

Can I get CVP analysis and Cash budget for this project please.

Thanks

Financial Statement Information Err:504 Accounts payable Accounts receivable Depreciation expense Cash Share Capital - common stock Net Sales Notes payable Prepaid expenses $ $ $ $ $ $ $ $ 2016 27,106 100,950 38,000 79,450 100,000 855,000 17,000 14,000 Office Equipment Salaries & Commissions expense Office overhead expenses Supplies Expense Subcontracting expenses Professional Fees Advertising Expenses Misc. Expense Direct Wages and Expenses Common Stock Dividends Accrued Liabilities Accumulated Depreciation Income Tax Expense Opening Retained Earnings 2014 $ $ $ $ $ $ $ $ $ $ $ $ $ 255,500 216,000 6,066 17,100 20,858 9,111 20,460 26,871 342,000 50,000 10,667 159,000 39,634 #REF! Err:504 $ $ $ $ $ $ $ $ 2015 27,106 66,500 38,000 45,000 100,000 675,000 55,000 14,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 255,500 180,000 6,066 13,500 19,674 9,111 20,460 26,871 270,000 20,000 10,667 121,000 22,830 18,739 ### Other Information that may be useful for Ratio analysis, CVP Analysis and the 2016 Cash Budg Other Info # of Common Stock 2016 250000 shares Market share price on ratio tab $ provided 2.90 per share 2015 250000 shares 2014 250000 Industry ratios have been Opening Accounts Receivable 2015 Income tax rate General: Sales: 2.25 per share 76,000 25% 25% Assume for budgeting purposes that the loan was approved and provided to your group January 1, 2017. Average revenue per placement is expected to stay the same for 2017 at $15,000 per placement. However number of placements are expected to increase by 15% in 2017. The strongest months are September and where 16% of the annual business is done each of those months. The slowest months are June, July and December where 4% of the annual business is done in each of those months. The rest of the business is s out evenly over the rest of the months. Collections: Sales are all sold on account. 50% of sales are collected in the month after the sale, 25% in the second mo the sale and 25% in the 3rd month after the sale. Assume all sales are collected (no bad debts). For closin accounts receivable assume 50% will be collected in January and 50% in February. Direct Wages: Direct wages in 2017 are expected to continue to be 40% of sales. LFPA pays their employees semi-monthl that 50% of the wages are paid in the month they are earned and 50% are paid in the month following the m which they are earned. Accrued liabilities at the end of 2016 represents the amount of direct wages that wil in January 2017. Other Expenses: The cost behaviour for all expenses is expected to remain the same for 2017 as they were for 2016 and 201 that some of these expenses are fixed in nature, some are variable and some are mixed. In addition, assum these expenses are paid in the month they are incurred (other than the payment pattern for direct wages wh described above). Fixed expenses should be allocated evenly over the 12 months, variable expenses will v month based on sales. Mixed expenses need to be separated into their fixed and variable components and allocated accordingly. Income tax expense is calculated as net income before taxes (revenue minus expens times the income tax rate. For the 2017 cash budget assume that the estimated income tax expense for 20 be paid in 12 equal monthly instalments. Dividends: Financing: Equipment: Your group expects to pay out dividends of $15,000 to each owner (5 group members=5 owners, 6 group members=6 owners). Dividends are expected to be paid out in July 2017. For the purpose of the budget assume the interest rate negotiated on the $500,000 loan is 5% is payable m and should be considered a fixed expense for 2017. In addition there are no payments to pay down the loa 2017. Loan principal payments are to start in 2018 at an amount of $8,500 per month. Assume that the no payable balance at the end of 2016 will be paid off in January 2017 using money received from the loan (so will be no interest expense related to the note payable going forward). In December of 2017 LFPA is expecting to replace some computer equipment in the office and invest in new software. The expected cost is $75000. Assume it will be paid in cash when purchased and there will be no to the depreciation expense in 2017. nd the 2016 Cash Budget shares ur group January 1, 2017. 00 per placement. However the months are September and March months are June, July and The rest of the business is spread sale, 25% in the second month after d (no bad debts). For closing 2015 ary. heir employees semi-monthly such in the month following the month in ount of direct wages that will be paid they were for 2016 and 2015. Note re mixed. In addition, assume that t pattern for direct wages which is ths, variable expenses will vary each d variable components and then axes (revenue minus expenses) d income tax expense for 2017 will mbers=5 owners, 6 group 000 loan is 5% is payable monthly yments to pay down the loan in month. Assume that the note y received from the loan (so there n the office and invest in new HR rchased and there will be no change Leap Forward Placement Agency Income Statement For the Year Ended December 31st Net sales less cost of goods sold Gross income 2016 2015 $ 855,000.00 $ 675,000.00 $ ### $ 855,000 $ 675,000 less Expenses Office overhead expenses Direct Wages and Expenses Salaries & Commissions expense Supplies Expense Subcontracting expenses Professional Fees Depreciation expense Advertising Expenses $ $ $ $ $ $ $ $ 6,066 342,000 216,000 17,100 20,858 9,111 38,000 20,460 $ $ $ $ $ $ $ $ 6,066 270,000 180,000 13,500 19,674 9,111 38,000 20,460 Profit before tax $ $ $ 26,871 $ 696,466 $ 158,534 $ 26,871 583,682 91,318 Less tax expense Net profit after tax $ $ 39,634 $ 118,900 $ 22,830 68,488 Misc. Expense 2017 (projected) Horizontal analysis Variance 2015 to 2016 $ 180,000.00 increase $ $ 180,000 increase $ $ $ $ $ $ $ $ 72,000 36,000 3,600 1,184 - $ $ $ $ $ $ 112,784 67,216 16,804 50,412 Vertical analysis 2016 100% 0% 100% 2015 change 2015 to 2016 100% 0% 0% 0% 100% 0% 0.71% 40.00% 25.26% 2.00% 2.44% 1.07% 4.44% 2.39% 0.90% 40% 27% 2% 3% 1% 6% 3% 0% decrease 0% -1% decrease 0% 0% decrease 0% decrease -1% decrease -1% decrease increase increase 3.14% 81.46% 18.54% 4% 86% 14% increase increase 4.64% 14% 3% 10% -1% decrease -5% 5% increase 0% 1% increase 4% increase increase increase increase increase Err:504 Leap Forward Placement Agency Statement of Retained Earnings For the Year Ended December 31st 2016 2015 67,227.00 $ 18,739.00 Retained earnings at December 31, 2015/2014 $ Net income for the year ended December 31, 2016/2015 Dividends paid to shareholders Retained earnings at December 31, 2016/2015 $ 118,900.00 $ 68,488.00 $ (50,000.00) $ (20,000.00) $ 136,127.00 $ 67,227.00 Leap Forward Placement Agency Balance Sheet As At December 31st Non-Current Assets Office Equipment Accumulated Depreciation Net book value 2016 2015 $ 255,500.00 $ 255,500.00 $ (159,000.00) $ (121,000.00) $ 96,500.00 $ 134,500.00 Current Assets Accounts receivable Prepaid expenses Cash Net assets $ 100,950.00 $ 66,500.00 $ 14,000.00 $ 14,000.00 $ 79,450.00 $ 45,000.00 $ 290,900.00 $ 260,000.00 Liabilities Accounts payable Notes payable Accrued Liabilities Share Capital - common stock Retained earnings Total liabilities $ 27,106.00 $ 27,106.00 $ 17,000.00 $ 55,000.00 $ 10,667.00 $ 10,667.00 $ 100,000.00 $ 100,000.00 $ - $ 67,227.00 $ 154,773.00 $ 260,000.00 Horizontal analysis Variance change $ $ (38,000) decrease $ (38,000) decrease $ $ $ $ $ $ $ $ $ $ $ $ 34,450 increase 34,450 decrease 30,900 decrease (38,000) decrease (67,227) increase (105,227) decrease Vertcal analysis 2016 2015 change 33% 52% -18.56% decrease 34.70% 25.58% 4.81% 5.38% 27.31% 17.31% 100.00% 100.00% 9.13% increase -0.57% increase 10.00% increase 9.32% 10.43% 5.84% 21.15% 3.67% 4.10% 34.38% 38.46% 0.00% 25.86% 53.20% 100.00% -1.11% increase -15.31% decrease -0.44% increase -4.09% increase -25.86% increase Err:504 Current Ratio current assets current liabilities Quick Ratio current assets - inventory current liabilities Gross Margin Gross profit * 100% sales Return on Shareholders Equity net profit shareholders equity Receivable Turnover sales average recievables Average Collection Period 365 receivable turnover Earnings Per Share Profit after tax outstanding shares Dividend Yield Earnings Per Share market price per share P/E Ratio market price per share earnings per share Debt to Equity Ratio Total liabities total equity Return on Assets net income average total sales 2016 2015 Industry 3.55 1.35 2.67 1.45 1.45 2.40 100.0% 100.0% 46.5% 119% 41% 27% 10.21 10.15 5.89 35.7 36.0 62.0 $1.19 $0.68 $1.25 41.0% 30.4% 4.0% 2.44 3.29 6.20 0.55 0.55 1.30 43% 26% 11.7% Err:504 Leap Forward Placement Agency Breakeven and Target Profit Calculations (show your work) Variable expenses per placement Fixed Expenses in total Annual Breakeven in placements sold Annual Breakeven in $ # of Placements for after tax target profit of $ 200,000 # of Placements for after tax target profit of $ 400,000 # of Placements for after tax target proift of $ 600,000 10% increase in sales for 2017 will mean what % increase in 2017 net income (before taxes) ns 2017 $ projected 100.00 2017 Month % sold each month ==> Opening Cash Balance Inflows Collections current month Collections first month Collections second month Collections third month Total Inflows Outflows Payment current payment 1st month Total Outflows Net Cash Flow Cash Balance January February March April May Leap Forward Placement Agency June July August Sept Oct Nov Dec Total 0%