How will lynns worst case and best case projections affect

Assignment Help Management Theories

Reference no: EM131385052

SITUATION
C&G Products, Inc., used as an example in this chapter, is an actual firm (although some of the facts were changed to maintain confidentiality). Kate Lynn bought the firm from its founding owners and moved its operations to her hometown. Although she has estimated the firm's asset needs and financing requirements, she cannot be certain that these projections will be realized. The figures merely represent the most likely case. Lynn also made some projections that she considers to be the worst-case and best-case sales and profit figures. If things do not go well, the firm might have sales of only $200,000 in its first year.

However, if the potential of the business is realized, Lynn believes that sales could be as high as $325,000. If she needs any additional financing beyond the existing line of credit, she could conceivably borrow another $5,000 in short-term debt from the bank by pledging some personal investments. Any additional financing would need to come from Lynn herself, thereby increasing her equity stake in the business

Question

If all of C&G Products' other relationships hold, how will Lynn's worst-case and best-case projections affect the income statement and balance sheet in the first year?

Reference no: EM131385052

Questions Cloud

What steps would you take to protect your data personally : Now that you're learning about attacks and how to mitigate them, what recommendations would you have to your leadership at your company if this attack had happened on your watch? What steps would you take to protect your data personally?

Compute the percentages of assets in current assets : Compute the percentages of assets in current assets and fixed assets.- and The percentages of financing from (1) spontaneous financing and (2) internal equity.

Calculating a shopper total number of orders : Calculating a Shopper's Total Number of Orders Another commonly used statistic in reports is the total number of orders a shopper has placed. Follow these steps to create a function named NUM_PURCH_SF that accepts a shopper ID and returns a shopper..

Find out if the owner agrees with your conclusions : Acquire a small firm's financial statements. Review the statements and describe the firm's financial position. Find out if the owner agrees with your conclusions.

How will lynns worst case and best case projections affect : If all of C&G Products' other relationships hold, how will Lynn's worst-case and best-case projections affect the income statement and balance sheet in the first year?

Write an essay on the historic movie hidden figures : Write an essay on the historic movie Hidden Figures (which is currently playing in the movie theaters) explaining the main themes and historical reference in regards to this class. Make sure to critique the documentary in historical context and st..

Discuss the different types of german expansionism : Discuss why the different types of German expansionism in the Wilhelmine period helped force Germany and Europe down the path toward war in 1914.The Wilhelmine period was the era where William II became emperor of Germany. He became emperor becau..

What did the firms balance sheet look like : What did Donahoo's balance sheet look like at the outset of the firm's life?- What did the firm's balance sheet look like after each transaction?

Provide examples of verbal and nonverbal communication : How do people communicate? Provide examples of verbal and nonverbal communication. How do you communicate nonverbally? In what way can knowledge of nonverbal communication help your communication with others?

User Account

All Pages