BUSN278 Course Project Milestone 2 TEMPLATE 2023updated

ARIO & REQUIREMENTS RIO: The following 2 Notes apply! REMENTS: DUE: WEEK 5 You invented “Dura-Clear windows” that never need washing! Nothing sticks to them – not pollution, polle dust, bird droppings, fingerprints, nothing. You’ve invested all your own savings, your parents’ savings, and s your friends’ savings as well into the R&D, production, and start-up of your business. It’s been three years s started selling your windows primarily to single-family homeowners, but now apartment building contracto the nation have been requesting your windows. Unfortunately, you’re already operating at full capacity. It's make the switch from single-family homes to commercial buildings, but to do so requires a large infusion of for expansion. You need more of everything: space, equipment, employees, etc. Ever the optimist, you applied to the TV show Shark Tank--where entrepreneurs compete for funding from a investors ("sharks")--to see if a shark will invest in your company and serve as a mentor as well. To your surp were accepted to the show! You've already prepared most of your marketing and sales pitches, and now it' put together your forecasted financial statements. You intend to show the sharks that backing your busines be a very profitable investment. You also need to determine how much funding to ask for in exchange for h ownership you'll give up. NOTE 1: You must show ALL your work. Either your computations are in the cell behind your res you must place them out to the right on the Forecasted Financials tab. If you choose to show you out to the right, show all steps and label your work clearly so it can be understood. NOTE 2: Do not round computations until you have found your final answer. Then, round your r the nearest dollar. No pennies! TONE 2: Creation of Forecasted Financials (100 points) It’s STILL January 1, 2023, and you’ll be going on Shark Tank in 2 weeks. You are unhappy with your previou Forecast (Milestone 1) because using your current level of sales to residences was not a good predictor of yo upcoming sales to commercial builders. You believe your sales will increase significantly and that each orde result in a higher profit. You decide to change your forecasting method to a combination of Ratios, Percent- and Pro Forma forecasting.

MILESTONE 2 FORECASTED FINANCIALS Fill in the yellow highlighted cells with your forecasted figures. SHOW ALL YOUR SUPPORTING CALCULATIONS! You may do this either within the cell by DURA-CLEAR WINDOWS, LLC Proforma Income Statement 2020 2021 2022 2023 Sales (all on credit) 1,200,000 1,500,000 1,875,000 5,625,000 Cost of Goods Sold (800,000) (1,040,000) (1,105,000) 3,093,750 Gross Profit 400,000 460,000 770,000 8,718,750 Selling and Administrative Expense (224,900) (270,500) (363,700) (1,053,231) Rent Expense (15,000) (15,000) (15,000) 200,000 Depreciation Expense (65,000) (76,500) (139,000) (214,000) Operating profit (EBIT) 95,100 98,000 252,300 7,251,519 Interest expense (35,000) (45,000) (85,000) (60,390) Net Income before Taxes 60,100 53,000 167,300 7,191,129 Taxes (36,900) (49,200) (55,600) (2,588,806) Net Income 23,200 3,800 111,700 4,602,322 Shares 60,000 60,000 78,000 104,000 Earnings per Share $0.39 $0.26 $2.38 $44.25 All your work must be shown on this sheet, not on a separate tab. Forecasted Income Statement

calculations/explanations shown below: ATEMENT: 36% tax rate, so: Net Income Before Taxes x .36 x (-1) Net Income Before Taxes-Taxes Given in assumptions 104000 are: Net Income / Shares

MILESTONE 2 QUESTIONS 1 Fianncial Analysis b. Are the sharks likely to challenge your figures? Why or c. What can happen to a company with poor liquidity? a. How are your forecasted financials any concerns on yo My financials fall below the industry averages outlined in The investors will probably carefully examine my financia They could also ask me about my future expansion plans A corporation that lacks sufficient liquidity may have trou prospects may be limited as a result of this downgrading credit, which would interrupt the business' regular opera