Financial Planning For A Business

This company, a retail clothing store with three suburban locations in Atlanta, Georgia, is incorporated, with each of the three Boudoir sisters owning one-third of the outstanding stock. The company is profitable, but rapid growth has put it under severe financial strain. The real estate is all under mortgage to an insurance company, the inventory is being used under a blanket chattel mortgage to secure a bank line of credit, and the accounts receivable are all being factored. With total assets of $7 million, the company now needs an additional $450,000 to finance a building and fixtures for a new outlet.

Financing details – Excelsior Avenue Inc. financing details are Investments require a focus of $400,000 to start the business, which is for building, equipment, wages, and utilities. Ongoing expenses are expected to be covered by incoming clients, of which they have 10. The estimated growth of a profit of $100,000 for the first year. They would like to be debt free within 5 years, increase earnings and generate passive income streams. A $500,000 loan from leading Bank XY Wolfram will be needed to cover initial costs.

Our company is an outstanding corporate that is highly respected among our peers in the outside world. The time and research we put into every new and old project in which we financially support, tends to lead us to greatness, as those products usually create a sustainable amount of wealth and growth. We have a huge reputation in regards to investing in local businesses in order to help them not only gain immediate attention by tagging our name to them but also assist them in making there visions come to life in which our company’s capital resources have given them a huge

* The first two assignments (Stages I and II of the project) are worth 100 points each.

The lack of a cash cushion is one primary reason small businesses fail; therefore for small businesses, it is important to understand and manage the company 's cash cycle (Byrd, 2012). The cash flow statement records the amounts of cash and cash equivalents entering and leaving a company, and includes three components by which cash enters and leaves a company: core operations, investing, and financing (Heakal, 2010).

Tire City, Inc. is a rapidly growing retail distributor of automotive tires. Although they have 10 shops located throughout the Northeast region, the bulk of TCI’s inventory is managed at a central warehouse. During the last three years, sales have been growing at a compound annual rate in excess of 20%. With such a great reflection of their excellent service and customer satisfaction in their net income, TCI’s central warehouse is “bulging at the seams”. TCI has decided to expand its warehouse facilities to accommodate future growth, and has requested a five year loan. We, MidBank, previously financed a project for TCI in 1991, which is currently being repaid in equal annual installments. TCI plans to

Among the tools required for every business to survive and thrive, the ability to maintain a regular self-examination holds an indispensable place. The size of the business in question is almost of no consequence, only the potential complexity of the self-examination changes. A prime tool for such self-examinations is the family of related financial reporting that has become nearly universal in western businesses: the income statement, the balance sheet, and the statement of cash flows. This trio of reports enables management and owners to carefully examine the holdings and liabilities of their business so they may make

The total startup cost for the agency is $8,500 and the start up cost at this time is out of pocket. The agency wants to possess at least $100,000 in working capital for any additions in employees, or for unexpected expenses. The owner understands that at startup the business will need two full-time contracts to maintain monthly expenses as well as retain reserve capital. The two contacts total an amount of $5,000 and the monthly expenses for the agency total $2,483 and as one can see, there is about a 50% profit margin at start-up. In the event the agency decides on obtaining capital by means of acquiring bank loans, private investors, angel investors, and loans from the small business administration, the organization is in position to provide evidence the agency can meet financial responsibilities.

The assumptions formed in preparation for executing the pro forma balance sheets and income statements are important because they are being used to determine whether or not your endeavors are worthwhile. Identifying important trends within the assumptions will help to give you a better idea of the market value of your

In addition to accountants providing many useful numbers that signal a company’s performance, they also prepare many useful documents and a code of ethics to make sure that all stakeholders have a clear picture on the business’s financial position. For instance, journaling is what accountants do after every transaction. These entries of what is exchanged in a business provide evidence that money deserves to be in a certain account. Especially since every journal entry needs a corresponding document that proves the record did happen, journals can be used by executives to see what really occurred in case a number in an account looks wrong (Schneider). It is also used when a government official suspects that the company is unfairly representing itself to either indict the business or prove its innocence. Journaling illustrates the importance of accounting since everything is documented and has proof for existence in the case of errors. One thing that journals go hand-in-hand with is the general ledger. This is the document that actually lists each individual account and the amount in it. It organizes the overall picture of every entity a business comes in contact with so that every important number can be put neatly into a financial statement.

It is equally owned and operated 100 percent by its partners. Each partner has contributed $ 20,000 dollars to the startup of this company and is in agreeance that half of the $20,000 will be deposited into an interest bearing business account, in addition to the $200,000 received through a business loan with Wells Fargo. This money will be

There are (3) reasons why I have chosen energy drinks as my NAB. First off, there is a growing market for energy drinks. Red Bull and Monster Beverage Corporation, together, form over 80% of domestic energy drinks volumes by estimates. Dollar sales for energy drinks grew almost 6% to $6.67 Billion in measured channels in 2013, which propelled sales growth for convenience stores (Team, 2014). A growing thirst for caffeinated “energy” drinks, which include the likes of Red Bull, Monster, and Rock star, has spurred a heart-thumping surge in sales. Globally, the energy drink industry has gone from a $3.8-billion business in 1999, to a $27.5-billion

An investment to Michael Bouldner and Rainer would be asked to finance the $450,000 of business price over the $73,000 required to renew equipment and offer the service to the customer with which we want to differentiate. With financial projections for the next 3 years are realized positive cash flows (before taxes) that are in accordance with the 25% - 50% of return on capital that investors require. In addition, investment costs recover a third year (assuming an increase in sales of 30% over the previous year).

Year 1 deals are anticipated at $55,568 taking into account a moderate improvement of the business through catching more customer base each month. I construct these anticipated figures with respect to the inclination to buy a range, putting different components into contemplations, for example, football games on the primary road and having the capacity to get more customer base from my rivals. To ensure that the working capital accessible is reliably adequate in the primary year, the main least sum will be drawn from the business.

Fund flow statements can be used to identify a variety of problems in the way a company operates. For example, companies that are using short-term money to finance long-term investments may run into liquidity problems in the future. Meanwhile, a company that is using long-term money to finance short-term investments may not be efficiently utilizing its capital.