inancial Projection CALMS Ice Cream Delight The current business plan is indicated to require a budget of approximately $70,000 to manage the operational and functional activities of CALMS Ice Cream Delight. The prominent sources of finances are bank loans and the involvement of potential investors. As a bank loan is a suitable alternative for newly established businesses, CALMS Ice Cream Delight intends to obtain one to handle continuing financial activity as this provides numerous benefits, such as inferior interest rates and venture capital which will enable the business to initiate sufficiently. . In addition, the CALM
Financial Projection
CALMS Ice Cream Delight
The current business plan is indicated to require a budget of approximately $70,000 to manage the operational and functional activities of CALMS Ice Cream Delight. The prominent sources of finances are bank loans and the involvement of potential investors. As a bank loan is a suitable alternative for newly established businesses, CALMS Ice Cream Delight intends to obtain one to handle continuing financial activity as this provides numerous benefits, such as inferior interest rates and venture capital which will enable the business to initiate sufficiently. . In addition, the CALMS Ice Cream Delight will also incorporate potential investors privately to mitigate the associated risk factors and gain funding regardless of the concerns related to enterprise success or failure. The business is determined to acquire both types of finances, having the proportion of 50% for each. The start-up summary is prepared for business which is placed in an appendix.
Start-Up Summary
The required investment budget is accounted for the value of $70,000, which is further divided into distinct segments. After considering the current state of the market, the furniture and equipment are at a value of $10,000. A license and operating permit at a cost of $500, and $8,200 worth of inventory must be purchased to begin production to get the business off the ground. Additionally, the business must pay $300 in legal fees and $600 for company signs to be erected on the building. Monthly expenses include rent at a cost of $1,200 as well as a marketing budget decided at $4,000 which will allow the business to capture customer interest through digital channels and social media platforms. The business will also take insurance to secure the assets and employee safety at an amount of $6,000. The cash in hand allows the business to meet short-term obligations at $5,000. Utilities will be paid $800 whereas employees' salaries will be amounting to $31,700. Repairs and Maintenance is also included in the monthly expenses at a cost of $1,000, in the event that there is any equipment failure. (see Appendix A).
(A) – Start-Up Summary
Investment Budget |
Capital Required |
Start-up Summary |
$ |
Expenses |
|
Furniture and Equipment |
10,000.00 |
Inventory |
8,200 |
Licenses & Permits |
500.00 |
Signage |
600.00 |
Legal Fees |
1000.00 |
Rent |
1,200.00 |
Marketing Budget |
4,000.00 |
Insurance |
6,000.00 |
Cash in Hand |
5,000.00 |
Salaries |
31,700.00 |
Utilities |
800.00 |
Repairs and Maintenance |
1,000 |
Investment |
70,000 |
Funding Required |
70,000 |
The financial projection is completed for the major components of the financial statement, such as the income statement, balance sheet and
Can you create an Income Statement, Balance and Cash flow for 2 years based on the information above?
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