You are planning a new business. You project the following first-year income statement: Revenue COGS Gross...
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You are planning a new business. You project the following first-year income statement: Revenue COGS Gross profit Other variable expenses Depreciation Other fixed expenses Net profit You project that you will need $200,000 in capital assets (leasehold improvements and equipment) to start the business. You will carry inventory, and you project that annual inventory turnover (Annual COGS / Average Inventory) will be 4.0. All sales will be on credit, and you project that Days Sales Outstanding will be 45.0. If you plan to cover 8 months of (other) fixed expenses, how much funding do you need to start this business (regardless of source of funding)? $ 2,000,000 $ 1,000,000 $ 1,000,000 200,000 50,000 600,000 150,000 69 69 69 69 69 69 69 $ $ $ $ L You are planning a new business. You project the following first-year income statement: Revenue COGS Gross profit Other variable expenses Depreciation Other fixed expenses Net profit You project that you will need $200,000 in capital assets (leasehold improvements and equipment) to start the business. You will carry inventory, and you project that annual inventory turnover (Annual COGS / Average Inventory) will be 4.0. All sales will be on credit, and you project that Days Sales Outstanding will be 45.0. If you plan to cover 8 months of (other) fixed expenses, how much funding do you need to start this business (regardless of source of funding)? $ 2,000,000 $ 1,000,000 $ 1,000,000 200,000 50,000 600,000 150,000 69 69 69 69 69 69 69 $ $ $ $ L
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The first year balance sheet is projected as below Balance Sheet December 31 Year 1 Assets Liabiliti... View the full answer
Related Book For
Investment Analysis and Portfolio Management
ISBN: 978-0538482387
10th Edition
Authors: Frank K. Reilly, Keith C. Brown
Posted Date:
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