Bob has a client who wants some advice. The client, Sara, has a small buisness which is running into cash-flow problems. She is already in too much debt, so she would prefer not to take a bank loan. Bob has come up with an option to generate $200000 of new financing. Can you draft a memo for Bob, with a decision based on a) Financial Analysis b) Non-quantitative factors
Some things about Sara's buisness are:
- have a secret process to produce baseball equipment manufacturing and have deep expertise, and their value is based on being the best at making baseball equipment
- last years net income is $80000 (this yr $88000) and is growing 10% per yr and should be analyzed over a 3-year period:
Sara contributes $100000; New Partner contributes $200000
Sara's salary = $50000; Partner’s salary = $30000
Remaining income is split 7:3; Sara: Partner

Prepare a memo with recommendations and conclusions

Answer rating: 100% (QA)

Dear Bob I hope this memo finds you well As requested I have conducted a financial analysis and cons... View the full answer