Your client "Fancy Tees" is an ecommerce start up that began operating in late 2018 and sells luxury soft t-shirts through a subscription business model.

Customers may cancel their subscription at any time, are not locked into a specific length of time, and pay each month until the subscriber cancels her/his membership

Subscribers receive one shirt each month at membership price of $40 and do not purchase additional items outside of the subscription. Non-subscribers cannot purchase a shirt unless they subscribe.

It always costs Fancy Tees $10 to produce a shirt and in 2018 it cost $5 to ship a shirt from its production facility in Italy to the US for sale.

The primary way Fancy Tees sells its shirts is through Instagram Ads and it gifts a minimal number of shirts to influencers.

In 2019, Fancy tees invested in a high tech screen printer to make their shirts even fancier.

To Do:

1) Create a 3 year Cash Flow projection beginning in 2020 on the Financial Forecast tab

2) Identify & Correct any potential errors/issues in the historical financial statements

3) Identify any KPIs or potential cash issues you may want to discuss with with your client

**Don't forget to put any notes or questions in the Notes tab provided!

** This is not intended to be a detailed/lengthy exercise! Please do not spend longer than 2 hours on this and feel free to email with any questions or points of clarification.