RNF: You asked the sharks 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? (HINT: Look at your financials.)

Ratio Analysis: What trends do you see looking at your profitability ratios? What is causing this trend? Are the sharks likely to challenge these figures?

What trends do you see looking at your debt utilization ratios? What is causing this trend?

How do you explain the difference between your liquidity ratios and the industry standard ratios?

(Financials and ratios are included below)

Scenario:

You invented Dura-Clear windows that never need washing! Nothing sticks to them not pollution, pollen, dirt, dust, bird droppings, fingerprints, nothing. Youve invested all your own savings, your parents savings, and some of your friends savings as well into the R&D, production, and start-up of your business. Its been three years since you started selling your windows primarily to single-family homeowners, but now apartment building contractors across the nation have been requesting your windows. Unfortunately, youre already operating at full capacity. It's time to make the switch from single-family homes to commercial buildings, but to do so requires a large infusion of funding for expansion. You need more of everything: space, equipment, employees, etc.

Ever the optimist, you applied to the TV show Shark Tank--where entrepreneurs compete for funding from angel investors ("sharks")--to see if a shark will invest in your company and serve as a mentor as well. To your surprise, you were accepted to the show! You've already prepared most of your marketing and sales pitches, and now it's time to put together your forecasted financial statements. You intend to show the sharks that backing your business would be a very profitable investment. You also need to determine how much funding to ask for in exchange for how much ownership you'll give up.

Forecasted Income Statement (25 points) DURA-CLEAR WINDOWS, LLC Proforma Income Statement Forecasted Balance Sheet ( 30 points) MILESTONE 2 METRICS SHOW ALL YOUR SUPPORTING CALCULATIONS! You may do this either within the cell by using formulas, or to the side or below - clearly labeling your work. 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 20232027, compute the following ratios, placing your final results in the yellow highlighted area: HINT: It may be helpful to fill out the table below identifying the necessary variables before attempting to compute RNF. \begin{tabular}{l|r|r|r|r|r|} & \multicolumn{1}{|c|}{ 2022 } & \multicolumn{1}{c|}{ 2023 } & \multicolumn{1}{c|}{2024} & \multicolumn{1}{c|}{2025} & \multicolumn{1}{c|}{2026} \\ \hline A & 1,819,500 & 2,998,887 & 3,246,489 & 3,466,236 & 3,794,420 \\ \hline S & 1,875,000 & 3,750,000 & 5,109,375 & 6,386,719 & 7,983,398 \\ \hline change in S & 1,875,000 & 1,359,375 & 1,277,344 & 1,596,680 & 1,995,850 \\ \hline L & 540,000 & 869,278 & 1,167,256 & 1,447,252 & 1,797,248 \\ \hline P & 0.09904 & 0.13608482 & 0.15887802 & 0.171513962 & 0.18142236 \\ \hline S2 & 3,750,000 & 5,109,375 & 6,386,719 & 7,983,398 & 9,979,248 \\ \hline D & 0 & 0 & 0 & 0 & 0 \end{tabular} (Current Assets/ Current Sales) * Change in Sales - (Current Liabilities /Current Sales) * Change in Sales - ( Profit Margin* New Sales * (1-Dividends) Change in Sales = Current Sales for 2022 - Current Sales for 2023 Profit Margin= Net Income/ Current Sales New Sales= Sales during 2023-2027