Financial Principal Repayment of Current Borrowing $166,656.00 $166,656.00

Financial Analysis 

Investment

Start- Up Funding

 

Start-Up Expenses to Fund

$800,000

Start-Up Assets to Fund

$1,000,000

Total Funding Required

$2,000,000

Assets

 

Non-Cash Assets from Start-Up

$200,000

Cash Requirements from Start-Up

$800,000

Additional Cash Raised

$0

Cash Balance on Starting Date

$800,000

Total Assets

1,000,000

Liabilities and Capital

 

Liabilities

 

Current Borrowing

$550,000

Long-Term Liabilities

$450,000

Accounts Payable

$0

Other Current Liabilities

$0

Total Liabilities

1,000,000

Capital

 

Investor 1

$500,000

Investor 2

$500,000

Additional Investments

$0

Total Planned Investment

1,000,000

Loss at Start-Up

(800,000)

Total Capital

$200,000

Total Capital and Liabilities

1,000,000

Total Funding

2,000,000

 

Break-even
Point

Break-even Analysis

Monthly Revenue
Break-even

$94,646.00

Assumptions

Average Percent
Variable Cost

32%

Estimated
Monthly Fixed Cost

$64,359.00

 

Cash
Flow

Cash Flow

Year 1

Year 2

Year 3

Cash from Operations

Cash from Receivables

$128,267.00

$1,552,257.00

$3,675,624.00

Cash Sales

$62,500.00

$727,500.00

$1,455,000

Subtotal
Cash from Operations

$190,767.00

$2,279,757.00

$5,130,524.00

Additional
Cash Received

New Current
Borrowing

$0.00

$0.00

$0.00

Sales Tax

$0.00

$0.00

$0.00

New
Long-term Liabilities

$0.00

$0.00

$0.00

New
Other Labilities (Interest Free)

$0.00

$0.00

$0.00

New
Long Term Liabilities

$0.00

$0.00

$0.00

New
Investment Received

$0.00

$0.00

$0.00

Sales
of Other Current Assets

$0.00

$0.00

$0.00

Sales
of Long-term Assets

$0.00

$0.00

$0.00

Subtotal Cash
Received

$190,767.00

$2,279,757.00

$5,130,524.00

Expenditures

Expenditures
from Operations

Bill Payment

$717,104.00

$1,170,761.00

$2,094,393.00

Cash Spending

$173,921.00

$224,131.00

$270,652.00

Subtotal
Spent on Operations

$891,024.00

$1,394,892.00

$2,365,045.00

Additional
Cash Spent

Sales Tax

$0.00

$0.00

$0.00

Other Liabilities

$0.00

$0.00

$0.00

Principal
Repayment of Current Borrowing

$166,656.00

$166,656.00

$166,688.00

Long-term
Liabilities Principal Repayment

$45,000.00

$45,000.00

$45,000.00

Purchase
Long-term Assets

$0.00

$0.00

$0.00

Purchase
Other Current Assets

$0.00

$0.00

$0.00

Dividends

$0.00

$0.00

$0.00

Subtotal Cash Spent

$1,102,680.00

$1,605,548.00

$2,576,733.00

New Cash Flow

($911,914.00)

$673,210.00

$2,553,791.00

Cash
Balance

$38,086.00

$711,296.00

$3,265,087.00

 

 

 

 

 

 

Return
Investment

Ratio Analysis

Year 1

Year2

Year 3

Industry Profile

Sales Growth

none

1064%

100%

2%

Percent
Total Assets

Inventory

4.7%

1.11%

.6%

11.7%

Account
Receivable

18.99%

42.6%

28.3%

27%

Total
Current Assets

100%

100%

100%

100%

Other
Current Assets

64.11%

12.36%

4.1%

23.6%

Long Term
Assets

0%

0%

0%

0%

Total
Assets

100%

100%

100%

100%

 

Long-term
Liabilities

129.81%

22.24%

6.46%

22.5%

Current
Liabilities

129.81%

16.39%

3.67%

30.6%

Total Labilities

258.93%

38.63%

10.13%

56.1%

Net worth

-158.92%

61.37%

89.87%

43.9%

 

 

Percent
of Sales

Sales

100%

100%

100%

100%

Selling

280.8%

47.95%

39.59%

19.1%

Gross Margin

64%

94.67%

95.62%

36.9%

Adverting

40%

6.01%

4.3%

.6%

Profit before
Interest and Tax

-224.92%

70.14%

78.73%

2.4%

 

Main
Ratios

Quick

.74%

6.03%

27.1%

1.44%

Current

.77%

6.1%

27.1%

2.06%

Total Debt
Return on Net Worth

258.93%

38.63%

10.13%

56.1%

Pre-tax Return on
Assets

-223.04%

122.67%

93.16%

11.2%

Pre-tax Return on Net
Worth

140.34%

199.89%

93.16%

11.2%

 

 

Additional
Ratios

Return on Equity

0%

149.92%

77.32%

none

Net Profit Margin

-278.34%

51.18%

58.18%

none

 

Activity
Ratio

Collection Days

55

63

86

none

Accounts
Receivable Turnover

3.17%

3.17%

3.17%

none

Accounts
Payable Turnover

11.32%

12.17%

12.17%

none

Inventory
Turnover

10.91%

7.68%

8.47%

none

Payment Days

26

27

23

none

Total
Asset Turnover

.8%

1.8%

1.19%

none

 

 

 

 

 

Current Liab.
To Liab.

.5%

.42%

.36%

none

Debt to New Worth

0%

.63%

.11%

none

 

Liquidity
Ratio

Interest
Coverage

-7.33

32.39

108.88

none

Net
Working Capital

($90,847.00)

$1,353,366

$4,694,646

none

 

Asset to Sales

1.25%

.56%

.84%

none

Acid Test

.59%

3.43%

19.39%

none

Current Debt/ Total
Assets

129%

16%

4%

none

Sales/Net Worth

0%

2.93%

1.33%

none

Dividend Payout

0

0

0

none

 

Critical Risk

Since Everlasting
Impression Prints has no operation history, which make finding future operation
results hard to find. All companies encounter difficulties and risks in the competitive
markets. If companies do not recognize these risks it can harm the company.

·        
One of the biggest risks is employee turnover
that all companies face. Everlasting Impression Prints will try to minimize this
by ensuring that is employees are in a environment that they want to work in.  This means having good benefits, pay and
eventually stock options.

·        
The next risk is competitors with this Everlasting
Impressions will monitor their everyday business strategies, and maintain
customer satisfactions to ensure that are clients are satisfied.

·        
With economic factors Everlasting Impressions
will work on this risk by diversifying our products and stay up to date on the
latest trends to help maintain our customer base.

·        
Then there is volume of transactions
this is from the products and from the online website that the company has for
which we can receive transactions.

·        
Next is down time from when equipment
that we have fails or is damaged, or even internet problems.

·        
Timing is also crucial especially for large
orders or not being able to enter into strategic alliance.

·        
Cost also is a factor like operation
costs, capital expenditures, expanding and infrastructure.

·        
Last pricing to make sure that we meet
our competitors’ prices and being able to change those policies to better fit
those needs.     

 

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