Martinez dollar amount projections in his business plan

Assignment Help Financial Accounting
Reference no: EM13670

Suppose that you have just "run out of money" and are unable to move your "idea" from its development stage to production and the startup stage. Thus, you remain convinced that with a reasonable amount of additional financial capital you can be a successful entrepreneur. While your expectations are low, you are meeting with a loan officer of the local bank in the hope that you can get a personal loan in order to continue your venture.

A) As you are about to enter the bank, you see a bank money bag lying on the street. No one is around to claim the bag. What would you do?

B) Now let's suppose that what you found lying on the street was a $100 bill. The thought crosses your mind that it would be nice to take your significant other out for a nice dinner- something that you have not had for several months. What would you do?

C) Now instead of $100 you find a $1 bill on the street. The thought crosses your mind that you would buy a lottery ticket with the dollar. Winning the lottery would certainly solve all your financing needs to start and run your venture. What would you do?

8 Ricardo Martinez has prepared the subsequent financial statement projections as part of his business plan for starting the Martinez Products Corporation. The venture is to manufacture and sell electronic components that make standard overhead projectors "smart." In essence through voice commands a projector will be turned on, off, and the brightness of the projection altered. This will allow the user to avoid audience annoyances associated with a bright projection light during periods when no overhead transparency is being used. Venture investors usually screen prospective venture opportunities in terms of projected profitability and financial performance.

A) Use the subsequent projected financial statement for Martinez Products to evaluate financial ratios showing the venture's projected (a) gross profit margin, (b) net profit margin, (c) asset intensity, and (d) ROA

9){Ratio Calculations} Ricardo Martinez, the founder of Martinez Products Corporations, projects sales to double to $400,000 in the second year of operation.

A) If the financial rations evaluated for year 1 in problem 8 remain the same in Year 2, what would be Martinez dollar amount projections in his business plan for (a) gross profit, (b) net profit or income, and (c) total assets?

Reference no: EM13670

Questions Cloud

Black-scholes options pricing model : Calculate the payoff and the profits for investments
State pricing theory and no-arbitrage pricing theory : State pricing theory and no-arbitrage pricing theory
Marketing metrix : Please compare and contrast economic, market, and relevancy value.
Compare and contrast economic - market, and relevancy : Please compare and contrast economic, market, and relevancy value.
Martinez dollar amount projections in his business plan : What would be Martinez dollar amount projections in his business plan.
Maximize profits through the manufacture : Artist International specializes in two products with the objective to maximize profits through the manufacture and sale.
Sequential and selection process control structure : Sequential and Selection Process Control Structure
Prepare a financial statement worksheet : Prepare a financial statement worksheet
Design a program that models the worms behavior : Design a program that models the worm's behavior.

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Computation of free cash flow

Computation of Free Cash Flow

  Prepare journal entries for each event

Prepare journal entries for each event and adjusting entries.

  Prepare a financial statement worksheet

Prepare a financial statement worksheet

  Average settlement period for trade receivables

Average settlement period for trade receivables

  Evaluate the optimum selling price

Evaluate the optimum selling price and identify which customer group is most profitable.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Calculate the merchandise inventory values

Calculate the merchandise inventory values

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd