Question
In: Accounting
Input Data Month 0 1 2 3 4 5 6 7 8 9 10 11 12...
| Input Data | |||||||||||||||||||||||||
| Month | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 |
| Revenue | $ - | $ - | $ - | $ - | $ - | $ - | $ 2,500 | $ 2,875 | $ 3,306 | $ 3,802 | $ 4,373 | $ 5,028 | $ 5,783 | $ 6,650 | $ 7,648 | $ 8,795 | $ 10,114 | $ 11,631 | $ 13,376 | $ 15,382 | $ 17,689 | $ 20,343 | $ 23,394 | $ 26,903 | |
| Monthly Revenue Growth Rate | 0% | 0% | 0% | 0% | 0% | 0% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | |
| Terms of Revenue | |||||||||||||||||||||||||
| Cash Sales (% of revenue) | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | |
| N30 (% of revenue) | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | |
| N60 (% of revenue) | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | |
| Cost of Good Sold | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | |
| Terms of Cost of Goods Sold | |||||||||||||||||||||||||
| Cash Sales (% of purchases) | 0% | 0% | 0% | 0% | 0% | 0% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | |
| N30 (% of purchases) | 0% | 0% | 0% | 0% | 0% | 0% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | |
| N60 (% of purchases) | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | |
| Cash Operating Costs | |||||||||||||||||||||||||
| Compensation | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | |
| Rent | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | |
| Supplies | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | |
| Other Operating Expences | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | |
| Accounting | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $115 | $132 | $152 | $175 | $201 | $231 | $266 | $306 | $352 | $405 | $465 | $535 | $615 | $708 | $814 | $936 | $1,076 | |
| Advertizing | $350 | 350 | 350 | 350 | 350 | 350 | 403 | 463 | 532 | 612 | 704 | 810 | 931 | 1071 | 1231 | 1416 | 1628 | 1873 | 2153 | 2476 | 2848 | 3275 | 3766 | 4331 | |
| Tax Rate | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | |
| Income Statement | |||||||||||||||||||||||||
| Month | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 |
| Revenue | $0 | $0 | $0 | $0 | $0 | $0 | $2,500 | $2,875 | $3,306 | $3,802 | $4,373 | $5,028 | $5,783 | $6,650 | $7,648 | $8,795 | $10,114 | $11,631 | $13,376 | $15,382 | $17,689 | $20,343 | $23,394 | $26,903 | |
| Cost of Goods Sold | $0 | $0 | $0 | $0 | $0 | $0 | $200 | $230 | $265 | $304 | $350 | $402 | $463 | $532 | $612 | $704 | $809 | $930 | $1,070 | $1,231 | $1,415 | $1,627 | $1,872 | $2,152 | |
| Gross Profit | $0 | $0 | $0 | $0 | $0 | $0 | $2,300 | $2,645 | $3,042 | $3,498 | $4,023 | $4,626 | $5,320 | $6,118 | $7,036 | $8,091 | $9,305 | $10,701 | $12,306 | $14,151 | $16,274 | $18,715 | $21,523 | $24,751 | |
| Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Rent | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | |
| Supplies | 0 | 0 | 0 | 0 | 0 | 0 | 250 | 288 | 331 | 380 | 437 | 503 | 578 | 665 | 765 | 879 | 1,011 | 1,163 | 1,338 | 1,538 | 1,769 | 2,034 | 2,339 | 2,690 | |
| Other operating Expences | 0 | 0 | 0 | 0 | 0 | 0 | 375 | 431 | 496 | 570 | 656 | 754 | 867 | 998 | 1,147 | 1,319 | 1,517 | 1,745 | 2,006 | 2,307 | 2,653 | 3,051 | 3,509 | 4,035 | |
| Accounting | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | |
| Advertizing | 350 | 350 | 350 | 350 | 350 | 350 | 403 | 463 | 532 | 612 | 704 | 810 | 931 | 1,071 | 1,231 | 1,416 | 1,628 | 1,873 | 2,153 | 2,476 | 2,848 | 3,275 | 3,766 | 4,331 | |
| Earnings Before Taxes | -$650 | -$650 | -$650 | -$650 | -$650 | -$650 | $973 | $1,163 | $1,383 | $1,635 | $1,926 | $2,259 | $2,643 | $3,085 | $3,593 | $4,176 | $4,848 | $5,620 | $6,508 | $7,529 | $8,704 | $10,054 | $11,608 | $13,394 | |
| Taxes | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Net Income | -$650 | -$650 | -$650 | -$650 | -$650 | -$650 | $973 | $1,163 | $1,383 | $1,635 | $1,926 | $2,259 | $2,643 | $3,085 | $3,593 | $4,176 | $4,848 | $5,620 | $6,508 | $7,529 | $8,704 | $10,054 | $11,608 | $13,394 | |
| Cash Flow | |||||||||||||||||||||||||
| Cash Collected from Revenue | $0 | $0 | $0 | $0 | $0 | $0 | $1,750 | $2,763 | $3,177 | $3,653 | $4,201 | $4,832 | $5,556 | $6,390 | $7,348 | $8,451 | $9,718 | $11,176 | $12,852 | $14,780 | $16,997 | $19,547 | $22,479 | $25,850 | |
| Cash Payments on COGS | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $200 | $230 | $265 | $304 | $350 | $402 | $463 | $532 | $612 | $704 | $809 | $930 | $1,070 | $1,231 | $1,415 | $1,627 | $1,872 | |
| Cash Operating Expenses ETC | $650 | $650 | $650 | $650 | $650 | $650 | $1,328 | $1,482 | $1,659 | $1,863 | $2,097 | $2,367 | $2,677 | $3,033 | $3,443 | $3,915 | $4,457 | $5,080 | $5,797 | $6,622 | $7,570 | $8,661 | $9,915 | $11,357 | |
| Taxes | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Net Cash Flow | -$650 | -$1,301 | -$1,951 | -$2,601 | -$3,251 | -$3,902 | -$3,479 | -$2,398 | -$1,110 | $416 | $2,216 | $4,331 | $6,809 | $9,703 | $3,373 | $3,924 | $4,558 | $5,286 | $6,124 | $7,088 | $8,196 | $9,471 | $10,936 | $12,622 | |
| Cash Account Balance | $3,000 | $2,350 | $1,049 | -$902 | -$3,503 | -$6,754 | -$10,655 | -$14,134 | -$16,532 | -$17,642 | -$17,226 | -$15,010 | -$10,679 | -$3,870 | $5,833 | $9,206 | $13,130 | $17,688 | $22,974 | $29,099 | $36,187 | $44,383 | $53,854 | $64,790 | $77,412 |
If an angel offered funding of $30,000 for 40% of your company, how would you view the angel’s offer?
Solutions
Expert Solution
As we can see through the income statement, thecompany has suffered losses in initial 6 months because the company was not generating revenue.But after 6months,the company started generating revenue and after meeting all fixed and operating expenses, the company is able to earn profits.
As far as cash flows are concerned,initially there are negative cash flows which is not a very good sign, but later company afford to make positive cash flows.
The comapny does not require any funding from external source but in view of extension of new product line, the company can consider the offer but 40% stake is toomuch. Initially ,comapny was loss making unit which may be require funding of external source, but gradually company started earning income and able to meet all its expenses.
Hence, if the company want to expand its business by making investment, then it can go for angel offer but in my view 40% stake is high.
ekkarill92 answered 1 year agoRelated Solutions
Input Data Month 0 1 2 3 4 5 6 7 8 9 10 11 12...
Input Data
Month
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Revenue
$
-
$
-
$
-
$ -
$ -
$
-
$ 2,500
$ 2,875
$ 3,306
$ 3,802
$ 4,373
$ 5,028
$ 5,783
$ 6,650
$ 7,648
$ 8,795
$ 10,114
$ 11,631
$ 13,376
$ 15,382
$ 17,689
$ 20,343
$ 23,394
$ 26,903
Monthly Revenue Growth...
3 6 4 8 1 10 2 9 11 12 15 22 3 6 7 5...
3
6
4
8
1
10
2
9
11
12
15
22
3
6
7
5
8
1
12
14
Each column represents a different treatment given to sick rats.
Each cell is a different rat. Use statistical analysis and use post
hoc testing using contrasts to find the best
treatment.
Treatment 1: vitamins
Treatment 2: prescription pills
Treatment 3: brain surgery
Treatment 4: shock therapy
Treatment 5: dietary changes
Match No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14...
Match No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Player A
8
42
56
68
91
123
12
46
57
137
5
80
14
10
19
Player B
38
44
46
59
57
61
48
42
51
39
58
41
55
45
68
1. For the given data set representing the runs scored by two
players in last 15 matches, conduct the following analysis:
i. Which average you will use to summarize...
Period 0 1 2 3 4 5 6 7 8 9 10 11 PBP NPV IRR...
Period
0
1
2
3
4
5
6
7
8
9
10
11
PBP
NPV
IRR
Project A
$
(1,000,000)
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 400,000
Project B
$
(1,000,000)
$ 500,000
$ 500,000
$ 500,000
Project C
$
(80,000)
$ 1,040
$ 9,456
$ 11,405
$ 18,567
$ 47,453
$ 6,394
$ 45,727
$ 51,933
$ 85,625
Project D
$
(400,000)
$ 4,161...
Period 0 1 2 3 4 5 6 7 8 9 10 11 PBP NPV IRR...
Period
0
1
2
3
4
5
6
7
8
9
10
11
PBP
NPV
IRR
Project A
$
(1,000,000)
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 400,000
Project B
$
(1,000,000)
$ 500,000
$ 500,000
$ 500,000
Project C
$
(80,000)
$ 1,040
$ 9,456
$ 11,405
$ 18,567
$ 47,453
$ 6,394
$ 45,727
$ 51,933
$ 85,625
Project D
$
(400,000)
$ 4,161...
Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15...
Day
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Number of Aides Absent
5
8
11
15
4
2
7
1
4
6
14
19
3
5
8
In which of the following ranges you can find the Upper Control
Limit of the control chart?
0.1427
0.1536
0.1677
Not computable with information available
In which of the following ranges you can find the Lower Control
Limit of the control chart?
Does not exit...
student 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15...
student
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Test score
67
67
87
89
87
77
73
74
68
72
58
98
98
70
77
Above we have the final averages of the last stats and I want to
know if the class average falls within the boundaries of all my
statistics classes for the past 20 years.
Find the sample size, mean, and standard deviation of the data
above (Table 1)....
A = （1 −7 5 0 0 10 8 2 2 4 10 3 −4 8...
A =
（1 −7 5 0
0 10 8 2
2 4 10 3
−4 8 −9 6）
(1) Count the number of rows that contain negative
components.
(2) Obtain the inverse of A and count the number of columns that
contain even number of positive components.
(3) Assign column names (a,b,c,d) to the columns of A.
(4) Transform the matrix A into a vector object a by stacking
rows.
(5) Replace the diagonal components of A with (0,0,2,3). Hint:...
5.) For the data set 2 4 4 5 7 8 9 10 12 12 13...
5.) For the data set
2
4
4
5
7
8
9
10
12
12
13
13
16
16
16
16
17
19
19
20
23
24
24
24
25
26
26
27
28
28
29
31
32
34
34
36
37
38
42
44
45
46
47
47
48
50
52
53
53
54
55
56
56
57
58
(a) Find the 80th percentile.
The 80t percentile is =
(a) Find the 42nd percentile.
The 42nd percentile is...
Given the following data: x 2 8 5 12 9 y 6 11 7 14 10...
Given the following data:
x
2
8
5
12
9
y
6
11
7
14
10
a) draw/graph a scatter plot.
b) by hand, find the correlation coefficient r.
c) by hand, find b0 and b1.
d) write the regression equation.
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