can someone please help me with this?

A B C D NOTE: You will use a combination of the Proforma and the Percent-of-Sales methods to create your forecasted financials. 1 The Sharks gave you the $1,000,000 in funding you asked for in exchange for 25% ownership of your company's profits. You issued 26,000$1-par shares to the Sharks and updated your additional paid-in capital by the excess recelved. The sharks have a 9% Required Rate of Return on their investment (needed for Milestone 3). 2 All the following are complete by March 31, 2023: 1) your shark funding has been received, 2) new capital investments have been purchased and set up, and 3) additional labor has been hired and trained. SALES: a. All Sales are credit sales. b. In 2023, your expanded operations enable Production and Sales to double your 2022 sales (due to selling more windows to the commercial builders and increasing the sale price per window). c. Quantity of windows sold is expected to increase 25\% every year from 2024 on. d. Due to inflation and demand, at the start of 2024 you increase your selling price per window by 9%. COGS: Compute your 2022 cOGS as a Percent of Sales ratio, and then subtract 10% because you'll be able to get volume discounts for your materials now that you've expanded. Use this adjusted ratio to forecast COGS across all years. SELUING \& ADMINISTRATIVE EXPENSE: S\&A Expense is a "mixed" expense, so fixed expenses must be removed before forecasting S\&A, and then added back once that's done. Use a 3-year average Percent of Sales to forecast variable S\&A expenses. (HINT: Recoll that since S\&A is an expense, and therefore negative, to remove fixed expenses, you must ADD theml) All SRA expenses are variable expenses EXCEPT for the following 2 fixed costs: 1. Rent expense of $15,000 per year in 2020-2022, increasing to $200,000 per year in 2023-2027. 2. Depreciation expense is included in S\&A in the amount of 10% of Plant \& Equipment each year. INTEREST EXPENSE: This is a Fixed cost, and is 10% of Long-term Liabilities. TAXES: Because you live in a business-friendly State (Wyoming), you don't have to pay state taxes on your LLC's income. You do, however, still have to pay Federal taxes. Also, in 2022, higher tax rates were passed for the 2023 tax year, pushing income over $400,000 into the 39.6% tax bracket. Because of this, use 36% as your effective tax rate. (NOTE: If the taxes shown for 2020-2022 seem high, it's because you had income from another job that threw your LLC income into a slightly higher tax bracket. However, you'll quit that job IF the sharks fund youl) SHARES: Issued 72,000 \$1-par shares to the sharks for a 48% ownership stake. CASH: Increases to $50,000 in 2023 and stays at that level. MARKETABLE SECURITIES: Plan to keep Marketable Securities at 60% of Cash levels. ACCOUNTS RECEIVABLE: Use a 3-year average Receivables Turnover ratio to forecast. INVENTORY: Compute a 3-year average of inventory as a percent of sales, and then use that figure to forecast inventory levels through 2027. 13 PLANT \& EQUIPMENT: New capital expenditure of $750,000 dollars in 2023, paid for with equity funding from the sharks, rather than new debt. All capital expenditures are assumed to occur on January 1 st of the year of purchase, and no equipment is sold or salvaged during the forecasted period. 14 ACCUMULATED DEPRECIATION: Each year, 10\% of the total amount of Plant and Equipment is added to the depreciation amount. 15 ACCOUNTS PAYABLE: Use the 3-year average Current Ratio to forecast. ACCRUED EXPENSES: Use the 3-year average Percent of Sales method to forecast. LONG-TERM LIABILITIES: Pay down $100,000 of old debt every year starting in 2023. COMMON STOCK (\$1 Par): Increase by the dollar value of shares issued to sharks (26,000 shares at $1 par). 19 CAPITALPAID IN EXCESS OF PAR: Compute new figure using shark investment, less par value of common stock. 20 RETAINED EARNINGS: Fill in the amount needed to balance the Balance Sheet. DIVIDENDS: You do not pay dividends now and do not plan to while in a growth stage. FIXED \& VARIABLE COSTS: The only fixed costs are rent expense, depreciation expense, and interest. expense. All other costs are variable. Fill in the yellow highlighted cells with your forecasted figures. SHOW ALL YOUR SUPPORTING CALCULAIIONSI You may do this either within the cell by using formulas, out to the right, of both - clearly labeling your work. All your work must be shown on this sheet, not on a separate tab. Forecasted Income Statement ( 25 points) Forecasted Balance Sheet ( 30 points) 2 (20 points) Compute Required New Funds (RNF) for each' MNT. It moy be helviu to fill out the table below identifying the necesary vorlables befare attempting to canpute ANg. (5 pts) Is it reasonable to assume that inventory levels will remain the same percent of sales in your forecast as when your business was maller? Explain. What actions have you taken that should decrease the percent of inventory in your forecast? (5 pts) You asked the thatks for $1M. Is it enough? If it is not enough, or if you simply would like access to additional funds, what existing source(s) of funds could you use instead? (S pts) What trends do you see looking at your debt utilization ratios? What is causing this trend? A B C D E F G H ASSUMPTIONS NOTE: You will use a combination of the Proforma and the Percent-of-Sales methods to create your forecasted financials. 1 The Sharks gave you the $1,000,000 in funding you asked for in exchange for 25% ownership of your company's profits. You issued 26,000 \$1-par shares to the Sharks and updated your additional paid-in capital by the excess received. The sharks have a 9% Required Rate of Return on their investment (needed for Milestone 3). 2 All the following are complete by March 31, 2023: 1) your shark funding has been received, 2) new capital investments have been purchased and set up, and 3) additional labor has been hired and trained. SALES: a. All Sales are credit sales. b. In 2023, your expanded operations enable Production and Sales to double your 2022 sales (due to selling more windows to the commercial builders and increasing the sale price per window). c. Quantity of windows sold is expected to increase 25% every year from 2024 on. d. Due to intlation and demand, at the start of 2024 you increase your selling price per window by 9%. 4 COGS: Compute your 2022 COGS as a Percent of Sales ratio, and then subtract 10% because you'll be able to Bet volume discounts for your materials now that you've expanded. Use this adjusted ratio to forecast coGS across all years. 5 SELLING \& ADMINISTRATIVE EXPENSE: S\&A Expense is a "mixed" expense, so fixed expenses must be removed before forecasting 5\&A, and then added back once that's done. Use a 3-year average Percent of Sales to forecast variable S\&A expenses. (HINT. Recall that since S\&A is an expense, and therefore negative, to remave fixed expenses, you must ADD them!) All S\&A expenses are vatiable expenses EXCEPT for the following 2 foxed costs: 1. Rent expense of $15,000 per year in 2020-2022, increasing to $200,000 per year in 2023-2027. 2. Depreciation expense is included in S\&A in the amount of 10% of Plant \& Equipment each year. 6 INTEREST EXPENSE! This is a fixed cost, and is 10% of Long term tiabilities. Assumptions Forecasted financials Milestone 2 Metrics Milestone 2Questions Milestone 3 Metics Mileston B INTEREST EXPENSE: This is a Fixed cost, and is 10% of Long-term Liabilities. TAXES: Because you live in a business-friendly State (Wyoming), you don't have to pay state taxes on your LLC's income. You do, however, still have to pay Federal taxes. Also, in 2022, higher tax rates were passed for the 2023 tax year, pushing income over $400,000 into the 39.6% tax bracket. Because of this, use 36% as your effective tax rate. (NOTE: If the taxes shown for 2020-2022 seem high, it's because you had income from another job that threw your LLC income into a slightly higher tox bracket. However, you'll quit that job IF the sharks fund you!) SHARES: Issued 72,000 \$1-par shares to the sharks for a 48% ownership stake. CASH: Increases to $50,000 in 2023 and stays at that level. MARKETABLE SECURITIES: Plan to keep Marketable Securities at 60% of Cash levels. ACCOUNTS RECEIVABLE: Use a 3-year average Receivables Turnover ratio to forecast. INVENTORY: Compute a 3-year average of inventory as a percent of sales, and then use that figure to forecast inventory levels through 2027. 13 PLANT \& EQUIPMENT: New capital expenditure of $750,000 dollars in 2023, paid for with equity funding from the sharks, rather than new debt. All capital expenditures are assumed to occur on January 1 st of the year of purchase, and no equipment is sold or salvaged during the forecasted period. 14 ACCUMULATED DEPRECIATION: Each year, 10% of the total amount of Plant and Equipment is added to the depreciation amount. 15 16 17 18 ACCOUNTS PAYABLE: Use the 3-year average Current Ratio to forecast. ACCRUED EXPENSES: Use the 3-year average Percent of Sales method to forecast. 19 20 21 CAPITAL PAID IN EXCESS OF PAR: Compute new figure using shark investment, less par value of common 22 FIXED \& VARIABLE COSTS: The only fixed costs are rent expense, depreciation expense, and interest expense. All other costs are variable. Assumptions Forecasted Financials Milestone 2 Metrics Milestone 2 Questions Milestone 3 Metrics Fill in the yellow highlighted cells with your forecasted figures. SHOW ALL YOUR SUPPORTING CALCULAIIONSI You may do this either within the cell by using formulas, out to the right, or both - clearly labeling your work. All your work must be shown on this sheet, not on a separate tab. Forecasted Balance Sheet (30 points) 55 56 HOW ALL YOUR SUPPORTING CALCULATIONS! You may do this either within the cell by using formulas, or to the side or below - clearly labeling your v All your work must be shown on this sheet, not on a separate tab. 1 (10 points) Based upon your financial forecast for the years 2023 - 2027, compute the following ratios, placing your final results in the yellow highlighted area: 2 (10 points) Compute Required New Funds (RNF) for each; (5 pts) Is it reasonable to assume that inventory levels will remain the same percent of sales in your forecast as when your business was smaller? Explain. What actions have you taken that should decrease the percent of inventory in your forecast? (5 pts) You asked the sharks for $1M. is it enough? If it is not enough, or it you simply would like access to additional funds, what existing source(s) of funds could you use instead? (HINT, Look ot your financiais.) 3 Ratio analysis ( 5 pts) What trends do you see looking at your profitability ratios? What is causing this trend? Are the sharks likely to challenge these figures? (5 pts) What trends do you see looking at your debt utilization ratios? What is causing this trend? (5 pts) How do you explain the difference between your liquidity ratios and the industry staridard ratios? A B C D NOTE: You will use a combination of the Proforma and the Percent-of-Sales methods to create your forecasted financials. 1 The Sharks gave you the $1,000,000 in funding you asked for in exchange for 25% ownership of your company's profits. You issued 26,000$1-par shares to the Sharks and updated your additional paid-in capital by the excess recelved. The sharks have a 9% Required Rate of Return on their investment (needed for Milestone 3). 2 All the following are complete by March 31, 2023: 1) your shark funding has been received, 2) new capital investments have been purchased and set up, and 3) additional labor has been hired and trained. SALES: a. All Sales are credit sales. b. In 2023, your expanded operations enable Production and Sales to double your 2022 sales (due to selling more windows to the commercial builders and increasing the sale price per window). c. Quantity of windows sold is expected to increase 25\% every year from 2024 on. d. Due to inflation and demand, at the start of 2024 you increase your selling price per window by 9%. COGS: Compute your 2022 cOGS as a Percent of Sales ratio, and then subtract 10% because you'll be able to get volume discounts for your materials now that you've expanded. Use this adjusted ratio to forecast COGS across all years. SELUING \& ADMINISTRATIVE EXPENSE: S\&A Expense is a "mixed" expense, so fixed expenses must be removed before forecasting S\&A, and then added back once that's done. Use a 3-year average Percent of Sales to forecast variable S\&A expenses. (HINT: Recoll that since S\&A is an expense, and therefore negative, to remove fixed expenses, you must ADD theml) All SRA expenses are variable expenses EXCEPT for the following 2 fixed costs: 1. Rent expense of $15,000 per year in 2020-2022, increasing to $200,000 per year in 2023-2027. 2. Depreciation expense is included in S\&A in the amount of 10% of Plant \& Equipment each year. INTEREST EXPENSE: This is a Fixed cost, and is 10% of Long-term Liabilities. TAXES: Because you live in a business-friendly State (Wyoming), you don't have to pay state taxes on your LLC's income. You do, however, still have to pay Federal taxes. Also, in 2022, higher tax rates were passed for the 2023 tax year, pushing income over $400,000 into the 39.6% tax bracket. Because of this, use 36% as your effective tax rate. (NOTE: If the taxes shown for 2020-2022 seem high, it's because you had income from another job that threw your LLC income into a slightly higher tax bracket. However, you'll quit that job IF the sharks fund youl) SHARES: Issued 72,000 \$1-par shares to the sharks for a 48% ownership stake. CASH: Increases to $50,000 in 2023 and stays at that level. MARKETABLE SECURITIES: Plan to keep Marketable Securities at 60% of Cash levels. ACCOUNTS RECEIVABLE: Use a 3-year average Receivables Turnover ratio to forecast. INVENTORY: Compute a 3-year average of inventory as a percent of sales, and then use that figure to forecast inventory levels through 2027. 13 PLANT \& EQUIPMENT: New capital expenditure of $750,000 dollars in 2023, paid for with equity funding from the sharks, rather than new debt. All capital expenditures are assumed to occur on January 1 st of the year of purchase, and no equipment is sold or salvaged during the forecasted period. 14 ACCUMULATED DEPRECIATION: Each year, 10\% of the total amount of Plant and Equipment is added to the depreciation amount. 15 ACCOUNTS PAYABLE: Use the 3-year average Current Ratio to forecast. ACCRUED EXPENSES: Use the 3-year average Percent of Sales method to forecast. LONG-TERM LIABILITIES: Pay down $100,000 of old debt every year starting in 2023. COMMON STOCK (\$1 Par): Increase by the dollar value of shares issued to sharks (26,000 shares at $1 par). 19 CAPITALPAID IN EXCESS OF PAR: Compute new figure using shark investment, less par value of common stock. 20 RETAINED EARNINGS: Fill in the amount needed to balance the Balance Sheet. DIVIDENDS: You do not pay dividends now and do not plan to while in a growth stage. FIXED \& VARIABLE COSTS: The only fixed costs are rent expense, depreciation expense, and interest. expense. All other costs are variable. Fill in the yellow highlighted cells with your forecasted figures. SHOW ALL YOUR SUPPORTING CALCULAIIONSI You may do this either within the cell by using formulas, out to the right, of both - clearly labeling your work. All your work must be shown on this sheet, not on a separate tab. Forecasted Income Statement ( 25 points) Forecasted Balance Sheet ( 30 points) 2 (20 points) Compute Required New Funds (RNF) for each' MNT. It moy be helviu to fill out the table below identifying the necesary vorlables befare attempting to canpute ANg. (5 pts) Is it reasonable to assume that inventory levels will remain the same percent of sales in your forecast as when your business was maller? Explain. What actions have you taken that should decrease the percent of inventory in your forecast? (5 pts) You asked the thatks for $1M. Is it enough? If it is not enough, or if you simply would like access to additional funds, what existing source(s) of funds could you use instead? (S pts) What trends do you see looking at your debt utilization ratios? What is causing this trend? A B C D E F G H ASSUMPTIONS NOTE: You will use a combination of the Proforma and the Percent-of-Sales methods to create your forecasted financials. 1 The Sharks gave you the $1,000,000 in funding you asked for in exchange for 25% ownership of your company's profits. You issued 26,000 \$1-par shares to the Sharks and updated your additional paid-in capital by the excess received. The sharks have a 9% Required Rate of Return on their investment (needed for Milestone 3). 2 All the following are complete by March 31, 2023: 1) your shark funding has been received, 2) new capital investments have been purchased and set up, and 3) additional labor has been hired and trained. SALES: a. All Sales are credit sales. b. In 2023, your expanded operations enable Production and Sales to double your 2022 sales (due to selling more windows to the commercial builders and increasing the sale price per window). c. Quantity of windows sold is expected to increase 25% every year from 2024 on. d. Due to intlation and demand, at the start of 2024 you increase your selling price per window by 9%. 4 COGS: Compute your 2022 COGS as a Percent of Sales ratio, and then subtract 10% because you'll be able to Bet volume discounts for your materials now that you've expanded. Use this adjusted ratio to forecast coGS across all years. 5 SELLING \& ADMINISTRATIVE EXPENSE: S\&A Expense is a "mixed" expense, so fixed expenses must be removed before forecasting 5\&A, and then added back once that's done. Use a 3-year average Percent of Sales to forecast variable S\&A expenses. (HINT. Recall that since S\&A is an expense, and therefore negative, to remave fixed expenses, you must ADD them!) All S\&A expenses are vatiable expenses EXCEPT for the following 2 foxed costs: 1. Rent expense of $15,000 per year in 2020-2022, increasing to $200,000 per year in 2023-2027. 2. Depreciation expense is included in S\&A in the amount of 10% of Plant \& Equipment each year. 6 INTEREST EXPENSE! This is a fixed cost, and is 10% of Long term tiabilities. Assumptions Forecasted financials Milestone 2 Metrics Milestone 2Questions Milestone 3 Metics Mileston B INTEREST EXPENSE: This is a Fixed cost, and is 10% of Long-term Liabilities. TAXES: Because you live in a business-friendly State (Wyoming), you don't have to pay state taxes on your LLC's income. You do, however, still have to pay Federal taxes. Also, in 2022, higher tax rates were passed for the 2023 tax year, pushing income over $400,000 into the 39.6% tax bracket. Because of this, use 36% as your effective tax rate. (NOTE: If the taxes shown for 2020-2022 seem high, it's because you had income from another job that threw your LLC income into a slightly higher tox bracket. However, you'll quit that job IF the sharks fund you!) SHARES: Issued 72,000 \$1-par shares to the sharks for a 48% ownership stake. CASH: Increases to $50,000 in 2023 and stays at that level. MARKETABLE SECURITIES: Plan to keep Marketable Securities at 60% of Cash levels. ACCOUNTS RECEIVABLE: Use a 3-year average Receivables Turnover ratio to forecast. INVENTORY: Compute a 3-year average of inventory as a percent of sales, and then use that figure to forecast inventory levels through 2027. 13 PLANT \& EQUIPMENT: New capital expenditure of $750,000 dollars in 2023, paid for with equity funding from the sharks, rather than new debt. All capital expenditures are assumed to occur on January 1 st of the year of purchase, and no equipment is sold or salvaged during the forecasted period. 14 ACCUMULATED DEPRECIATION: Each year, 10% of the total amount of Plant and Equipment is added to the depreciation amount. 15 16 17 18 ACCOUNTS PAYABLE: Use the 3-year average Current Ratio to forecast. ACCRUED EXPENSES: Use the 3-year average Percent of Sales method to forecast. 19 20 21 CAPITAL PAID IN EXCESS OF PAR: Compute new figure using shark investment, less par value of common 22 FIXED \& VARIABLE COSTS: The only fixed costs are rent expense, depreciation expense, and interest expense. All other costs are variable. Assumptions Forecasted Financials Milestone 2 Metrics Milestone 2 Questions Milestone 3 Metrics Fill in the yellow highlighted cells with your forecasted figures. SHOW ALL YOUR SUPPORTING CALCULAIIONSI You may do this either within the cell by using formulas, out to the right, or both - clearly labeling your work. All your work must be shown on this sheet, not on a separate tab. Forecasted Balance Sheet (30 points) 55 56 HOW ALL YOUR SUPPORTING CALCULATIONS! You may do this either within the cell by using formulas, or to the side or below - clearly labeling your v All your work must be shown on this sheet, not on a separate tab. 1 (10 points) Based upon your financial forecast for the years 2023 - 2027, compute the following ratios, placing your final results in the yellow highlighted area: 2 (10 points) Compute Required New Funds (RNF) for each; (5 pts) Is it reasonable to assume that inventory levels will remain the same percent of sales in your forecast as when your business was smaller? Explain. What actions have you taken that should decrease the percent of inventory in your forecast? (5 pts) You asked the sharks for $1M. is it enough? If it is not enough, or it you simply would like access to additional funds, what existing source(s) of funds could you use instead? (HINT, Look ot your financiais.) 3 Ratio analysis ( 5 pts) What trends do you see looking at your profitability ratios? What is causing this trend? Are the sharks likely to challenge these figures? (5 pts) What trends do you see looking at your debt utilization ratios? What is causing this trend? (5 pts) How do you explain the difference between your liquidity ratios and the industry staridard ratios