The company will distribute goods that people have bought on internet.

I believe that the company can invoice the customers € 80 000 year 2024, € 100 000 year 2025, and € 140 000 year 2026. I expect that all customers eventually will pay their invoices. 90 percent of the invoices will be paid during the year they are sent out. The remaining 10 percent will be paid next year.

This venture obviously needs access to trucks. I have decided to buy them rather than renting them. I have found two nice secondhand trucks. Given their condition, I expect to be able to use them for three years. After that, they are most likely worthless. I expect to pay € 120 000 on January 2, 2024 to get access to the vehicles.

The company will have expenditures for petrol, spare parts, insurance, salaries etc. I estimate that these expenditures will amount to € 32 000 year 2024, € 40 000 year 2025, and € 56 000 year 2026. These expenditures also constitute the payments for the years respectively.

I plan to start a limited company to run this business. In order to sleep well, I have decided to have the company fully financed by shareholders’ equity. As the trucks cost € 120 000, I think that a share capital of the same amount is sufficient. To be able to pay for the truck in early January 2024, the share capital must be paid-in to the company by the end of year 2023.

To not complicate the case, I disregard interest income, VAT and taxes.

I hope that I can convince other investors to become part owners in the company (so that I don’t have to raise the whole amount myself).

Task

• Make cash flow statements for each one of the years, 2024 through 2027.

• Make income statements (P/L) for 2024, 2025 and 2026.

• Make balance sheets at the end of each year 2023 to 2027.