Prepare Pro Forma 1996 and 1997 Financial Statements and conduct breakeven analysis to assess (1) breakeven $ sales, (2) whether CL could breakeven in 1996 or 1997.

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In September 1994, James and Serena Udderlic were preparing a loan application to a London, Ontario branch of the Confederation Bank of Canada. The Udderlies were requesting a $160,000 term loan, in addition to an operating loan, for the potential opening of a C ice cream and clothing franchise in London. The Udderlies had a considerable amount of marketing research and cost estimates, and in order to complete the application, they needed to develop proforma incóme statements and balance sheets for the store's first two years of operation. They also planned to review carefully the qualitative characteris- tics of their idea in order to assess the chances of success of a franchise in London. The Udderlics also wondered what collateral, if any, they would be able to provide the bank to secure against a loan, and what other terms the bank might deem necessary. CL's HISTORY OF GL L began in 1983 on Prince Edward Island (P.E.L.), Canada, as a single outlet producing and selling ice cream made from a time-honoured family recipc. I fowever, the clothing with whimsical imagery that the staff wore as uniformas began attracting attention and the company soon expanded to include a retail line, which was 75 to 80 items deep by 1995. The retail line, which included such items as t-shirts, sweatshirts, pins and mooing cookie jars, was subsequently offered by mail order in 1991. began and illustrate either effective or Int der the supervision of Professor Steve Foerster solely to pro In September 1994, James and Serena Udderlic were preparing a loan application to a London, Ontario branch of the Confederation Bank of Canada. The Udderlies were requesting a $160,000 term loan, in addition to an operating loan, for the potential opening of a C ice cream and clothing franchise in London. The Udderlies had a considerable amount of marketing research and cost estimates, and in order to complete the application, they needed to develop proforma incóme statements and balance sheets for the store's first two years of operation. They also planned to review carefully the qualitative characteris- tics of their idea in order to assess the chances of success of a franchise in London. The Udderlics also wondered what collateral, if any, they would be able to provide the bank to secure against a loan, and what other terms the bank might deem necessary. CL's HISTORY OF GL L began in 1983 on Prince Edward Island (P.E.L.), Canada, as a single outlet producing and selling ice cream made from a time-honoured family recipc. I fowever, the clothing with whimsical imagery that the staff wore as uniformas began attracting attention and the company soon expanded to include a retail line, which was 75 to 80 items deep by 1995. The retail line, which included such items as t-shirts, sweatshirts, pins and mooing cookie jars, was subsequently offered by mail order in 1991. began and illustrate either effective or Int der the supervision of Professor Steve Foerster solely to pro