Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Analyze a Startup
How would you select an organizational form for a business? Think about this question as you read the following scenario.
Joe Jones has created a business plan for a new product. He is not certain whether to organize his business as a regular corporation or a sole proprietorship. The following are his forecasted partial financial statements for the first four years of operation of the new venture named Uncle Joe's.
Forecasted partial Income Statement:
Year 1
Year 2
Year 3
Year 4
Sales
$15,000
$18,000
$23,400
$44,460
Cost of goods sold
8,000
10,000
15,000
21,000
Gross profit
7,000
8,400
23,460
Operating expenses
3,000
4,500
4,900
12,000
Interest
800
1,800
2,100
4,100
Earnings before taxes
2,200
2,700
2,800
7,900
Taxes
?
Net Income
Forecasted Balance Sheet:
Cash and inventories
$30,000
$45,000
$67,500
$101,250
Building and equipment
25,000
32,500
42,250
54,925
Total assets
55,000
77,500
109,750
156,175
Corporate Income Tax Schedule:
Taxable Income
Marginal Tax Rate
$1-30,000
10%
30,001-100,000
18
100,001-400,000
23
400,001-5,000,000
30
Over 5,000,000
40
Personal Income Tax Schedule:
$1-5,000
8%
5,001-20,000
12
20,001-60,000
19
60,001-180,000
25
Over 180,000
33
Using the information on Uncle Joes' finances, answer the following questions:
1. identify an analytic theme or goal for a fictitious business or something that you are working on (e.g. Maximize revenue in a car dealership) 2. Build an Enterprise Bus Matri
Q. Define the Cash Budget? Cash Budget: - A cash budget is an estimation of cash receipts and cash payments for a future period of time. It is prepared to predict the cash requ
evaluate the importance of leverage in a small scale companyestion..
which type of financing is appropriate to each firm
Explain the term “present value of the firm’s operations” (also known as Enterprise Value). What does this number represent? The present value of the free cash flows of the comp
a. Calculate expected earnings per share (EPS) if the firm is perfectly hedged. EPS $
Long Term Solvency or Liquidity Ratio's DE: The Debt Equity ratio exhibits the relation that exists between debt and proprietor's fund and is considered a very im
Inventory is sometimes thought of as a necessary evil. Explain. Inventory ties up funds and these types of funds are not earning an explicit return. A few inventory is often es
Engagement Completion Document - A document whereby AUDITOR identifies all significant findings or issues. Document must be as specific as essential in the circumstances for a revi
A researcher develops a regression model to understand how student-to-teacher ratios affect test scores. The researcher theorizes that age, gender, and race do not impact test scor
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd