I will post the 3 more parts are needed I will post assignment shortly

Sales Forecast Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Sales Owner Stylist #1 Barber #1 Stylist #2 Stylist #3 Nails and massage Product sales Total Sales 0% 0% 0% 0% 0% 0% 0% Direct Cost of Sales Product Costs Other Subtotal Direct Cost of Sales $3,650 $3,500 $1,250 $1,750 $1,000 $1,550 $900 $13,600 $3,650 $3,500 $1,250 $1,750 $1,000 $1,550 $900 $13,600 $3,650 $3,500 $1,250 $1,700 $1,000 $1,550 $900 $13,550 $3,650 $3,500 $1,250 $1,700 $1,000 $1,550 $900 $13,550 $4,450 $4,350 $1,250 $2,050 $1,000 $1,550 $900 $15,550 $4,450 $4,350 $1,450 $2,050 $1,000 $1,550 $900 $15,750 $4,450 $4,350 $1,450 $2,050 $1,050 $1,550 $900 $15,800 $4,450 $4,350 $1,450 $2,050 $0 $1,550 $900 $14,750 $4,450 $4,350 $1,450 $2,050 $0 $1,550 $900 $14,750 $4,450 $4,350 $1,450 $2,050 $0 $1,550 $900 $14,750 $4,450 $4,350 $1,450 $2,050 $0 $1,550 $900 $14,750 $4,450 $4,350 $1,450 $2,050 $0 $1,550 $900 $14,750 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375 Personnel Plan Owner (Stylist) Receptionist Shampoo Tech Total People Total Payroll 0% 0% 0% Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $500 $500 $500 $500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 3 3 3 3 5 5 5 5 5 5 5 5 $3,500 $3,500 $3,500 $3,500 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 Pro Forma Profit and Loss Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll Marketing/Promotion Depreciation Rent Utilities Insurance Payroll Taxes Independently contracted stylists Supplies Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $12,400 $12,400 $12,400 $12,400 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360 $12,040 $12,040 $12,040 $12,040 $14,240 $14,240 $14,240 $14,240 $14,240 $14,240 $14,240 $14,240 97.10% 97.10% 97.10% 97.10% 97.53% 97.53% 97.53% 97.53% 97.53% 97.53% 97.53% 97.53% $3,200 $3,200 $3,200 $3,200 $4,200 $4,200 $4,200 $4,200 $4,200 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $633 $683 $683 $683 $683 $683 $683 $683 $683 $1,895 $1,895 $1,895 $1,895 $1,895 $1,895 $1,895 $1,895 $1,895 $350 $350 $350 $350 $350 $350 $350 $350 $350 $100 $100 $100 $100 $100 $100 $100 $100 $100 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,700 $2,700 $2,700 $2,700 $3,700 $3,700 $3,700 $3,700 $3,700 15% $500 $500 $500 $500 $500 $500 $500 $500 $500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $11,278 $11,328 $11,328 $11,328 $13,328 $13,328 $13,328 $13,328 $13,328 $762 $712 $712 $712 $912 $912 $912 $912 $912 $1,395 $1,395 $1,395 $1,395 $1,595 $1,595 $1,595 $1,595 $1,595 $508 $499 $491 $483 $474 $466 $458 $449 $441 $76 $64 $66 $69 $131 $134 $136 $139 $141 $178 $149 $155 $161 $306 $312 $318 $324 $330 1.44% 1.20% 1.25% 1.29% 2.10% 2.14% 2.18% 2.22% 2.26% $4,200 $1,900 $683 $1,895 $350 $100 $0 $3,700 $500 $0 $13,328 $912 $1,595 $433 $144 $336 2.30% $4,200 $1,900 $683 $1,895 $350 $100 $0 $3,700 $500 $0 $13,328 $912 $1,595 $424 $146 $341 2.34% $4,200 $1,900 $683 $1,895 $350 $100 $0 $3,700 $500 $0 $13,328 $912 $1,595 $416 $149 $347 2.38% Pro Forma Cash Flow Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received $12,400 $12,400 0.00% Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance $12,400 $12,400 $12,400 $12,400 $12,400 $12,400 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $0 $0 $0 $0 $0 $0 $0 $12,400 $0 $0 $0 $0 $0 $0 $0 $12,400 $0 $0 $0 $0 $0 $0 $0 $12,400 $0 $0 $0 $0 $0 $0 $0 $12,400 $0 $0 $0 $0 $0 $0 $0 $14,600 $0 $0 $0 $0 $0 $0 $0 $14,600 $0 $0 $0 $0 $0 $0 $0 $14,600 $0 $0 $0 $0 $0 $0 $0 $14,600 $0 $0 $0 $0 $0 $0 $0 $14,600 $0 $0 $0 $0 $0 $0 $0 $14,600 $0 $0 $0 $0 $0 $0 $0 $14,600 $0 $0 $0 $0 $0 $0 $0 $14,600 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $3,300 $3,300 $3,300 $3,300 $4,400 $4,400 $4,400 $4,400 $4,400 $290 $8,488 $8,488 $8,372 $8,492 $9,510 $9,505 $9,499 $9,493 $3,590 $11,788 $11,788 $11,672 $12,892 $13,910 $13,905 $13,899 $13,893 0 0 0 750 $800 900 1200 1500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $4,640 $12,838 $12,838 $13,472 $14,742 $15,860 $16,155 $16,449 $14,943 ($1,050) ($1,050) ($1,050) ($1,800) ($1,850) ($1,950) ($2,250) ($2,550) ($1,050) $8,421 $8,233 $8,065 $7,903 $8,912 $8,901 $8,897 $8,898 $8,905 $4,400 $9,487 $13,887 0 0 0 0 $1,050 0 0 0 $14,937 ($1,050) $8,918 $4,400 $9,481 $13,881 0 0 0 0 $1,050 0 0 0 $14,931 ($1,050) $8,936 $4,400 $9,475 $13,875 0 0 0 0 $1,050 0 0 0 $14,925 ($1,050) $8,961 Pro Forma Balance Sheet Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Assets Current Assets Cash Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Starting Balances $501 $605 $1,106 $8,421 $605 $9,026 $8,107 $605 $8,712 $7,796 $605 $8,401 $7,473 $605 $8,078 $8,319 $605 $8,924 $8,008 $605 $8,613 $7,685 $605 $8,290 $7,374 $605 $7,979 $7,056 $605 $7,661 $6,740 $605 $7,345 $6,419 $605 $7,024 $6,104 $605 $6,709 $59,601 $0 $59,601 $833 $59,601 $1,319 $59,601 $1,997 $59,601 $2,683 $59,601 $3,366 $59,601 $4,049 $59,601 $4,732 $59,601 $5,414 $59,601 $6,097 $59,601 $6,780 $59,601 $7,463 $59,601 $8,146 Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth $59,500 $60,606 $58,867 $67,893 $58,184 $66,896 $57,501 $65,902 $56,818 $64,896 $56,135 $65,059 $55,452 $64,065 $54,773 $63,063 $54,087 $62,066 $53,404 $61,065 $52,721 $60,066 $52,038 $59,062 $51,355 $58,064 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $0 0 0 $0 $61,863 $61,863 $600 ($1,857) $0 ($1,257) $60,606 ($1,317) $8,108 0 0 $8,108 $60,864 $68,972 $600 ($1,857) $178 ($1,079) $67,893 ($1,139) $8,088 0 0 $8,088 $59,916 $68,004 $600 ($1,857) $149 ($1,108) $66,896 ($990) $8,089 0 0 $8,089 $58,915 $67,004 $600 ($1,857) $155 ($1,102) $65,902 ($835) $8,077 0 0 $8,077 $57,915 $65,992 $600 ($1,857) $161 ($1,096) $64,896 ($675) $9,094 0 0 $9,094 $56,916 $66,010 $600 ($1,857) $306 ($951) $65,059 ($368) $9,094 0 0 $9,094 $55,916 $65,010 $600 ($1,857) $312 ($945) $64,065 ($56) $9,087 0 0 $9,087 $54,915 $64,002 $600 ($1,857) $318 ($939) $63,063 $262 $9,085 0 0 $9,085 $53,914 $62,999 $600 ($1,857) $324 ($933) $62,066 $586 $9,079 0 0 $9,079 $52,913 $61,992 $600 ($1,857) $330 ($927) $61,065 $915 $9,075 0 0 $9,075 $51,912 $60,987 $600 ($1,857) $336 ($921) $60,066 $1,251 $9,064 0 0 $9,064 $50,914 $59,978 $600 ($1,857) $341 ($916) $59,062 $1,592 $9,059 0 0 $9,059 $49,915 $58,974 $600 ($1,857) $347 ($910) $58,064 $1,940 Kudler Opening Budget Startup Costs Construction Site preparation Building Trade Fixtures 20% CONTINGENCY 100,000 1,000,000 400,000 300,000 SUBTOTAL: SUBTOTAL: Occupancy Cost R E Taxes Utilities TOTAL 1,177,000 SUBTOTAL: Operating Capital Marketing/PR Launch Event Equipment Inventory Operating Supplies Legal fees Permits Insurance Preopening Salaries and Travel 10% Contingency 1,800,000 22,000 50,000 25,000 50,000 750,000 10,000 25,000 10,000 25,000 125,000 107,000 12,000 10,000 2,999,000 Capitalization Plan Cash from Principle Owners 300,000 Cash from Venture Capital Partners 600,000 Bank Loan Preferred return of 80% of net profit until principle is paid, then 10% of net profits 2,100,000 7.5% APR on a 15-year term 3,000,000 1. Summary of Proposed Investment Terms a. A description of how investors will benefit from this venture 1) The capitalization plan of Kudler Foods virtual organization shows how the venture capital partners will receive there investment back as soon as 80% of the venture's net profits may pay it, and then 10% of the net profits of the venture until they are bought out or the venture is dissolved. b. A description of what levels of investment will be accepted, if there are minimum or maximum levels of investment. 1) Privately held ventures usually offer membership units in a limited liability company at amounts equal to approximately 3% of the total startup cost, or whatever calculates to a round number such as $10,000 or $50,000. 2) Publicly traded ventures offer shares of stock typically offered at a price that is the value of the venture once it is operational divided by the amount of shares to be in inventory, which is usually 1,000,000. 2. Return on Investment Analysis a. An illustration of how much investors will earn on the money that they invest in this venture b. This analysis typically begins with a payback analysis, which illustrates how soon the investors will be paid back their initial investment. c. After illustrating how soon the investor will be paid back and what dividends will be received according to the pro-forma, the actual ROI is expressed as a percentage using the following calculation: [annual dividends] / [initial investment]. 3. Statement of the Viability of the Venture as an Investment a. The selling statement that convinces venture capitalists and banks to invest in or loan money to the venture b. Include statements that confirm the feasibility of the pro-forma and statements that confirm how realistic the startup budget is. University of Phoenix Faculty Material Financial Prospectus Expectations Prepare a 1,950- to 2,500-word paper with the following components of a financial prospectus for your venture. The Financial Prospectus must include the information you provided in the Venture Concepts Paper and Venture Budgeting and Forecasting Paper. The information from your previous assignments must be revised, as necessary, based on material covered in this class. Organize your prospectus into the following order: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Description of Venture Development Concept Management Biographies Competitive Product or Service Statement (Market Analysis) Construction and Preopening Budget Operating Pro-Forma (Budget) Samples of Financial Statements to be Used Summary of Proposed Investment Terms Return on Investment Analysis Statement of the Viability of the Venture as an Investment An explanation of each component of the prospectus may be found in the description of terms below. Description of Terms 1. Description of Venture a. An introductory illustration of the venture, with an overview of the brand and the product or service to be offered b. Details of the product or service are covered in item 4. 2. Development Concept a. The description focuses on components that must be built or created to support the venture. b. Include the components of any physical structure, equipment, or anything that requires development investment. 3. Management Biographies a. Use one page or less to describe the background of each of the principle owners. b. If this venture requires special technical expertise, include the biographies of whoever is going to bring this needed expertise to the organization. 4. Competitive Product or Service Statement a. A market analysis to show how this venture's product or service competes with similar products or services in its market b. Include how the product or service may be produced efficiently by this venture to achieve targeted profit margins. 5. Construction and Preopening Budget a. The budget in the virtual organization, Kudler Foods, may be used as a model for this portion. b. Include all of the costs associated with getting the venture to the point of performing its first sale. The budget, however, must include enough working capital to pay for its operations until the net profits may cover these expenses. 6. Operating Pro-Forma a. The operating budget for the first 12 months that this venture will be operating after startup and training periods b. If the venture requires phased operations when it first opens, these first few months need not be included in the pro-forma so that the pro-forma may illustrate a typical 12-month period as a new venture. 7. Samples of Financial Statements to be Used a. An inventory of the financial statements that will be used to measure the performance of the venture, using data from the pro-forma b. Include an Income Statement, Balance Sheet, and any other financial statements that would be significant and appropriate to illustrating the success of this venture. 8. Summary of Proposed Investment Terms a. A description of how investors will benefit from this venture 1) The capitalization plan of Kudler Foods virtual organization shows how the venture capital partners will receive there investment back as soon as 80% of the venture's net profits may pay it, and then 10% of the net profits of the venture until they are bought out or the venture is dissolved. b. A description of what levels of investment will be accepted, if there are minimum or maximum levels of investment. 1) Privately held ventures usually offer membership units in a limited liability company at amounts equal to approximately 3% of the total startup cost, or whatever calculates to a round number such as $10,000 or $50,000. 2) Publicly traded ventures offer shares of stock typically offered at a price that is the value of the venture once it is operational divided by the amount of shares to be in inventory, which is usually 1,000,000. 9. Return on Investment Analysis a. An illustration of how much investors will earn on the money that they invest in this venture b. This analysis typically begins with a payback analysis, which illustrates how soon the investors will be paid back their initial investment. c. After illustrating how soon the investor will be paid back and what dividends will be received according to the pro-forma, the actual ROI is expressed as a percentage using the following calculation: [annual dividends] / [initial investment]. 10. Statement of the Viability of the Venture as an Investment a. The selling statement that convinces venture capitalists and banks to invest in or loan money to the venture b. Include statements that confirm the feasibility of the pro-forma and statements that confirm how realistic the startup budget is. Sales Forecast Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Sales Owner Stylist #1 Barber #1 Stylist #2 Stylist #3 Nails and massage Product sales Total Sales 0% 0% 0% 0% 0% 0% 0% Direct Cost of Sales Product Costs Other Subtotal Direct Cost of Sales $3,650 $3,500 $1,250 $1,750 $1,000 $1,550 $900 $13,600 $3,650 $3,500 $1,250 $1,750 $1,000 $1,550 $900 $13,600 $3,650 $3,500 $1,250 $1,700 $1,000 $1,550 $900 $13,550 $3,650 $3,500 $1,250 $1,700 $1,000 $1,550 $900 $13,550 $4,450 $4,350 $1,250 $2,050 $1,000 $1,550 $900 $15,550 $4,450 $4,350 $1,450 $2,050 $1,000 $1,550 $900 $15,750 $4,450 $4,350 $1,450 $2,050 $1,050 $1,550 $900 $15,800 $4,450 $4,350 $1,450 $2,050 $0 $1,550 $900 $14,750 $4,450 $4,350 $1,450 $2,050 $0 $1,550 $900 $14,750 $4,450 $4,350 $1,450 $2,050 $0 $1,550 $900 $14,750 $4,450 $4,350 $1,450 $2,050 $0 $1,550 $900 $14,750 $4,450 $4,350 $1,450 $2,050 $0 $1,550 $900 $14,750 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375 Personnel Plan Owner (Stylist) Receptionist Shampoo Tech Total People Total Payroll 0% 0% 0% Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $500 $500 $500 $500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 3 3 3 3 5 5 5 5 5 5 5 5 $3,500 $3,500 $3,500 $3,500 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 Pro Forma Profit and Loss Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll Marketing/Promotion Depreciation Rent Utilities Insurance Payroll Taxes Independently contracted stylists Supplies Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $12,400 $12,400 $12,400 $12,400 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360 $12,040 $12,040 $12,040 $12,040 $14,240 $14,240 $14,240 $14,240 $14,240 $14,240 $14,240 $14,240 97.10% 97.10% 97.10% 97.10% 97.53% 97.53% 97.53% 97.53% 97.53% 97.53% 97.53% 97.53% $3,200 $3,200 $3,200 $3,200 $4,200 $4,200 $4,200 $4,200 $4,200 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $633 $683 $683 $683 $683 $683 $683 $683 $683 $1,895 $1,895 $1,895 $1,895 $1,895 $1,895 $1,895 $1,895 $1,895 $350 $350 $350 $350 $350 $350 $350 $350 $350 $100 $100 $100 $100 $100 $100 $100 $100 $100 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,700 $2,700 $2,700 $2,700 $3,700 $3,700 $3,700 $3,700 $3,700 15% $500 $500 $500 $500 $500 $500 $500 $500 $500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $11,278 $11,328 $11,328 $11,328 $13,328 $13,328 $13,328 $13,328 $13,328 $762 $712 $712 $712 $912 $912 $912 $912 $912 $1,395 $1,395 $1,395 $1,395 $1,595 $1,595 $1,595 $1,595 $1,595 $508 $499 $491 $483 $474 $466 $458 $449 $441 $76 $64 $66 $69 $131 $134 $136 $139 $141 $178 $149 $155 $161 $306 $312 $318 $324 $330 1.44% 1.20% 1.25% 1.29% 2.10% 2.14% 2.18% 2.22% 2.26% $4,200 $1,900 $683 $1,895 $350 $100 $0 $3,700 $500 $0 $13,328 $912 $1,595 $433 $144 $336 2.30% $4,200 $1,900 $683 $1,895 $350 $100 $0 $3,700 $500 $0 $13,328 $912 $1,595 $424 $146 $341 2.34% $4,200 $1,900 $683 $1,895 $350 $100 $0 $3,700 $500 $0 $13,328 $912 $1,595 $416 $149 $347 2.38% Pro Forma Cash Flow Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received $12,400 $12,400 0.00% Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance $12,400 $12,400 $12,400 $12,400 $12,400 $12,400 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $14,600 $0 $0 $0 $0 $0 $0 $0 $12,400 $0 $0 $0 $0 $0 $0 $0 $12,400 $0 $0 $0 $0 $0 $0 $0 $12,400 $0 $0 $0 $0 $0 $0 $0 $12,400 $0 $0 $0 $0 $0 $0 $0 $14,600 $0 $0 $0 $0 $0 $0 $0 $14,600 $0 $0 $0 $0 $0 $0 $0 $14,600 $0 $0 $0 $0 $0 $0 $0 $14,600 $0 $0 $0 $0 $0 $0 $0 $14,600 $0 $0 $0 $0 $0 $0 $0 $14,600 $0 $0 $0 $0 $0 $0 $0 $14,600 $0 $0 $0 $0 $0 $0 $0 $14,600 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $3,300 $3,300 $3,300 $3,300 $4,400 $4,400 $4,400 $4,400 $4,400 $290 $8,488 $8,488 $8,372 $8,492 $9,510 $9,505 $9,499 $9,493 $3,590 $11,788 $11,788 $11,672 $12,892 $13,910 $13,905 $13,899 $13,893 0 0 0 750 $800 900 1200 1500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $4,640 $12,838 $12,838 $13,472 $14,742 $15,860 $16,155 $16,449 $14,943 ($1,050) ($1,050) ($1,050) ($1,800) ($1,850) ($1,950) ($2,250) ($2,550) ($1,050) $8,421 $8,233 $8,065 $7,903 $8,912 $8,901 $8,897 $8,898 $8,905 $4,400 $9,487 $13,887 0 0 0 0 $1,050 0 0 0 $14,937 ($1,050) $8,918 $4,400 $9,481 $13,881 0 0 0 0 $1,050 0 0 0 $14,931 ($1,050) $8,936 $4,400 $9,475 $13,875 0 0 0 0 $1,050 0 0 0 $14,925 ($1,050) $8,961 Pro Forma Balance Sheet Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Assets Current Assets Cash Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Starting Balances $501 $605 $1,106 $8,421 $605 $9,026 $8,107 $605 $8,712 $7,796 $605 $8,401 $7,473 $605 $8,078 $8,319 $605 $8,924 $8,008 $605 $8,613 $7,685 $605 $8,290 $7,374 $605 $7,979 $7,056 $605 $7,661 $6,740 $605 $7,345 $6,419 $605 $7,024 $6,104 $605 $6,709 $59,601 $0 $59,601 $833 $59,601 $1,319 $59,601 $1,997 $59,601 $2,683 $59,601 $3,366 $59,601 $4,049 $59,601 $4,732 $59,601 $5,414 $59,601 $6,097 $59,601 $6,780 $59,601 $7,463 $59,601 $8,146 Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth $59,500 $58,867 $60,606 $67,893 $58,184 $57,501 $66,896 $65,902 $56,818 $56,135 $64,896 $65,059 $55,452 $54,773 $64,065 $63,063 $54,087 $62,066 $53,404 $61,065 $52,721 $60,066 $52,038 $59,062 $51,355 $58,064 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $0 0 0 $0 $61,863 $61,863 $600 ($1,857) $0 ($1,257) $60,606 ($1,317) $8,108 0 0 $8,108 $60,864 $68,972 $600 ($1,857) $178 ($1,079) $67,893 ($1,139) $8,088 0 0 $8,088 $59,916 $68,004 $600 ($1,857) $149 ($1,108) $66,896 ($990) $8,089 0 0 $8,089 $58,915 $67,004 $600 ($1,857) $155 ($1,102) $65,902 ($835) $8,077 0 0 $8,077 $57,915 $65,992 $600 ($1,857) $161 ($1,096) $64,896 ($675) $9,094 0 0 $9,094 $56,916 $66,010 $600 ($1,857) $306 ($951) $65,059 ($368) $9,094 0 0 $9,094 $55,916 $65,010 $600 ($1,857) $312 ($945) $64,065 ($56) $9,087 0 0 $9,087 $54,915 $64,002 $600 ($1,857) $318 ($939) $63,063 $262 $9,085 0 0 $9,085 $53,914 $62,999 $600 ($1,857) $324 ($933) $62,066 $586 $9,079 0 0 $9,079 $52,913 $61,992 $600 ($1,857) $330 ($927) $61,065 $915 $9,075 0 0 $9,075 $51,912 $60,987 $600 ($1,857) $336 ($921) $60,066 $1,251 $9,064 0 0 $9,064 $50,914 $59,978 $600 ($1,857) $341 ($916) $59,062 $1,592 $9,059 0 0 $9,059 $49,915 $58,974 $600 ($1,857) $347 ($910) $58,064 $1,940 University of Phoenix Faculty Material Financial Prospectus Expectations Prepare a 1,950- to 2,500-word paper with the following components of a financial prospectus for your venture. The Financial Prospectus must include the information you provided in the Venture Concepts Paper and Venture Budgeting and Forecasting Paper. The information from your previous assignments must be revised, as necessary, based on material covered in this class. Organize your prospectus into the following order: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Description of Venture Development Concept Management Biographies Competitive Product or Service Statement (Market Analysis) Construction and Preopening Budget Operating Pro-Forma (Budget) Samples of Financial Statements to be Used Summary of Proposed Investment Terms Return on Investment Analysis Statement of the Viability of the Venture as an Investment An explanation of each component of the prospectus may be found in the description of terms below. Description of Terms 1. Description of Venture a. An introductory illustration of the venture, with an overview of the brand and the product or service to be offered b. Details of the product or service are covered in item 4. 2. Development Concept a. The description focuses on components that must be built or created to support the venture. b. Include the components of any physical structure, equipment, or anything that requires development investment. 3. Management Biographies a. Use one page or less to describe the background of each of the principle owners. b. If this venture requires special technical expertise, include the biographies of whoever is going to bring this needed expertise to the organization. 4. Competitive Product or Service Statement a. A market analysis to show how this venture's product or service competes with similar products or services in its market b. Include how the product or service may be produced efficiently by this venture to achieve targeted profit margins. 5. Construction and Preopening Budget a. The budget in the virtual organization, Kudler Foods, may be used as a model for this portion. b. Include all of the costs associated with getting the venture to the point of performing its first sale. The budget, however, must include enough working capital to pay for its operations until the net profits may cover these expenses. 6. Operating Pro-Forma a. The operating budget for the first 12 months that this venture will be operating after startup and training periods b. If the venture requires phased operations when it first opens, these first few months need not be included in the pro-forma so that the pro-forma may illustrate a typical 12-month period as a new venture. 7. Samples of Financial Statements to be Used a. An inventory of the financial statements that will be used to measure the performance of the venture, using data from the pro-forma b. Include an Income Statement, Balance Sheet, and any other financial statements that would be significant and appropriate to illustrating the success of this venture. 8. Summary of Proposed Investment Terms a. A description of how investors will benefit from this venture 1) The capitalization plan of Kudler Foods virtual organization shows how the venture capital partners will receive there investment back as soon as 80% of the venture's net profits may pay it, and then 10% of the net profits of the venture until they are bought out or the venture is dissolved. b. A description of what levels of investment will be accepted, if there are minimum or maximum levels of investment. 1) Privately held ventures usually offer membership units in a limited liability company at amounts equal to approximately 3% of the total startup cost, or whatever calculates to a round number such as $10,000 or $50,000. 2) Publicly traded ventures offer shares of stock typically offered at a price that is the value of the venture once it is operational divided by the amount of shares to be in inventory, which is usually 1,000,000. 9. Return on Investment Analysis a. An illustration of how much investors will earn on the money that they invest in this venture b. This analysis typically begins with a payback analysis, which illustrates how soon the investors will be paid back their initial investment. c. After illustrating how soon the investor will be paid back and what dividends will be received according to the pro-forma, the actual ROI is expressed as a percentage using the following calculation: [annual dividends] / [initial investment]. 10. Statement of the Viability of the Venture as an Investment a. The selling statement that convinces venture capitalists and banks to invest in or loan money to the venture b. Include statements that confirm the feasibility of the pro-forma and statements that confirm how realistic the startup budget is. ABC Human Hair Company is a company started in view of offering extensions, customized wigs, braids and hair pieces. The range of many products along with services rendered by the company is mostly allured in the City. The company could able to offer most demanded synthetic hair blends with more improvement in terms of natural aspect and stylish versatile look to each and every customer. The company could able to establish a very strong supply chain which will ensure that, there is a continuous supply of the hair products to the valuable customers without having any paucity of stocks. Initially viewing the market conditions, the company feels it can tap close to 5000 customers and the to serve these customer 10 employees will be enough as these employees are well trained and qualified in order to render a quality service to the customer. The populations targeted are the customers including young girls along with women who have lots of demands for hair dressing in every week mostly. However, the company has also targets to small population of men who have demand for a stylish human hair services. Thus, the demand for the human hair continued to be at high in the city. The company has sufficient number of hair dressing equipments including the dryers and other units. The business of the company is situated in strategic location in the city to ensure that it is always accessible to each and every customer. In order to develop the business, the company will invest on both ways of online marketing programs like ads and Television campaigns (Chua, Chrisman, Kellermanns & Wu, 2011). The selected two marketing channels are pretty effective as they possess wider coverage and reach to the new customers in an increased manner. While going for online ads, it should be media ads where many people depend on that as in the today's scenario; everyone depends on the social media. In order to meet out the requirements of the business, the company will knock the doors of the banks and friends and relatives to fund the startup costs for a minimum of $250,000 along with business operations. Management of the company is formed with a big vibrant team. Totally, there will be eight team members in the management team. The positions will be Chairman, Chief Executive Officer, Chief Operation Officer, Chief Financial Officer, Chief Marketing Officer, Chief Officer for Human Resources, Chief Information Technology Officer and Chief Compliance & Audit Officer. Almost every member in the team have good sizable amount of experience in the respective field and the industry as well. The minimum qualification of the team member is an MBA and their age is between 50 to 60. Both companies namely Natural Human Hair (NHH Company) are happened to be the suitable benchmarks to my present venture. Basically The Natural Human Hair Company is a known brand of the former CIS brand for the country of Uzbekistan. The company initially floated as a very small family business years ago when it was only able to offer one particular type of hair. However, over the years now, the company could establish itself to offer variety range of hair and other kind of products. The company is basically gives priority on the sales of natural hair along with offering quality services to satisfy to each and every client. While comparing with my ABC Human Hair Company which I have started, the company was only financed through the savings of the family and many dollars borrowed from close relatives (Chua et al., 2011). The people who initiated the business were projecting the business to grow in a big way. In other way, my dreamed venture only concentration on floating a well-established business with funding from banks in terms of loans and also borrowing from friends. This eventually leads to the fact that, the company got to spend some money for cost of capital and also interests during the loan repayment as it was borrowed. Thus, the business will have to confront higher costs of borrowing unlike the freedom getting enjoyed by Natural Human Hair Company. Based on the comparison, it is clear that NHH could able to enjoy more financial Assistance and move forward with the help of the family savings, while the business venture has ample opportunity to reach pinnacle of success and growth, but it faces higher risk towards the bank loan repayment (Atherton, 2012). There should be appropriate control systems implemented by management in order to avoid bankruptcy for the company. Considering the business and fund requirements, I here by presenting the below mentioned sales forecast, profit and loss statement and balance for the last one year in a monthly basis and these are all imaginary figures which are assumed in a random basis considering the business model of the company