Financing Your Business Activity Learning Objectives: = Determine personal net worth = Determine additional capital needed for business startup = Identify sources for both debt and equity capital = Decide what type of additional capital is best for business startup Directions: Chris Tracey wants to open a music store named Paisley Perfect. Using the given information, complete the following steps to determine his personal net worth, calculate startup costs, calculate amount of additional startup capital needed, identify sources of both debt and eq- uity capital, and decide what type of additional capital is best for his business. Computers 3,000 Assets: Cash register 1,500 Cash 10,000 Printer 200 Stock 3,550 Supplies 500 Checking account 12,000 Desk/Chairs 1,300 Music equipment 2,140 Tables/display cases 4,500 Liabilities: Inventory 11,500 Credit Cards 4,210 Paint 350 Car loan 7,770 Legal fees 1,000 School loan 5,200 Accounting fees 1,200 Marketing fees 3,000 Step 4; Create a Personal Financial Statement In the table provided below, complete a personal financial statement for Chris Tracey, Be sure to calculate net worth in the bottom row. PERSONAL FINANCIAL STATEMENT Chris Tracey Assets: Liabilities: Total Assets: Total Liabilities: Total assets - Total liabilities Net worth ou Step 2: Calculate Business Startup Costs In the table provided below, calculate startup costs for Paisley Perfect. STARTUP COSTS Paisley Perfect Item Estimated Cost Equipment and Supplies Subtotal Furniture and Fixtures Subtotal Inventory Subtotal Remodeling Subtotal Fees Subtotal Total Needed: Step 3: Calculate Additional Business Startup Capital Needed In the table provided below, calculate additional startup capital for Paisley Perfect. Paisley Perfect Total Startup Costs Less Owner's Equity (personal net worth) Additional Startup Capital Needed5 of 6 Step 4: Identify Sources of Equity and Debt Capital In the chart provided below, list at least 3 sources for both equity and debt capital. Equity Capital Debt Capital (Money loaned to a business with the understanding that the (Money invested in a business in return for a share in the money will be repaid within a certain time period, usually with profits of a business.) interest.) Step 5: Decide what Type of Additional Capital is Best In the space provided below, write a composed 5-7 sentence paragraph explaining what type of additional capital you would pursue and why. Make certain to support For example: I would recommend Chris pursue debt capital in the form of a long-term loan because.. Step 5: Decide what Type of Additional Capital is Best in the space provided below, write a well composed 5-7 sentence paragraph explaining what type of additional capital you would pursue and why. Make certain to support your answer. For example: I would recommend Chris pursue debt capital in the form of a long-term loan because