Question
In: Finance
financial analysis including Income statement, Balance sheet and stateent of cash flows for an app business...
financial analysis including Income statement, Balance sheet and
stateent of cash flows for an app business plan
I
have no data. it is a simulation on a business that doesn’t exist
yet and needs to be created. It is an application that will link
kids and eldery to discuver their skills with school that will
provide them with working on their skills. I will be making money
in clicks and advertizing from my platform. I will invest my
$100,000 cash and will need 3.5 million loan to support 3 people
salary expense, rent a facility, app creation expenses, buy
equipment...
please help me creating something realistic.
interest can be a number between 6 to 9 percent and expected
earnings will be progressively from first year around $250,000
second year $350,000 and the 3 following years around $650,000 to
$750,000 to facilitate the ROE and pay back loans. the first two
years doesn’t need to be positive in ROE but from the third year
should pick up.
Please advise if realistic.
Solutions
Expert Solution
| Profit and Loss A/c | Year 1 | Year 2 | Year 3 |
| Income from Operations | 250,000.00 | 350,000.00 | 750,000.00 |
| Expenses | |||
| Salary | 108,000.00 | 118,800.00 | 130,000.00 |
| Rent | 24,000.00 | 25,200.00 | 26,400.00 |
| Indirect Expenses | 12,000.00 | 13,000.00 | 15,000.00 |
| Depreciation | 75,000.00 | 100,000.00 | 125,000.00 |
| Interest | 105,000.00 | 150,000.00 | 175,000.00 |
| 324,000.00 | 407,000.00 | 471,400.00 | |
| Profit/Loss | (74,000.00) | (57,000.00) | 278,600.00 |
| Balance Sheet | Year 1 | Year 2 | Year 3 |
| Liablities | |||
| Capital | 100,000.00 | 100,000.00 | 100,000.00 |
| Loans | 3,500,000.00 | 3,500,000.00 | 3,500,000.00 |
| Current Liabliities | 350,000.00 | 250,000.00 | 450,000.00 |
| 3,950,000.00 | 3,850,000.00 | 4,050,000.00 | |
| Assets | |||
| Fixed Assets | 1,500,000.00 | 2,000,000.00 | 2,500,000.00 |
| Current Assets | 2,450,000.00 | 1,850,000.00 | 1,550,000.00 |
| 3,950,000.00 | 3,850,000.00 | 4,050,000.00 |
jeff jeffy answered 8 months agoRelated Solutions
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