Issues 8.0 MANAGEMENT TEAM 8.1 Organization 8.2 Management Compensation and Ownership 8.3 Other Shareholders‚ Rights‚ and Restrictions 9.0 CRITICAL PROBLEMS. AND ASSUMPTIONS 10.0 THE FINANCIAL PLAN 10.1 Pro Forma Income Statements 10.2 Pro Forma Balance Sheets 10.3 Pro Forma Cash Flow Analysis 10.4 Months to Breakeven and to Positive Cashflow 10.5 Cost Control 11.0 PROPOSED COMPANY OFFERING 11.1 Desired Financing 11.2 Offering 11.3 Use of Funds 11.4 Investor’s Return
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cash budget for the four months September through December 1979‚ a projected income statement for the same period‚ and a pro forma balance sheet as of December 31‚ 1979. Pro Forma Income Statement‚ Balance Sheet‚ and Cash Budget for the period from September to December 1979 are found in attachment. 3. Review the results of your forecast. Doe the cash budgets and the pro forma financial statements yield the same results? Why? Hampton Machinery Tool Company’s income statement shows a balance
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1. a.) Contribution per CD unit: Unit Selling Variable Costs $9.00 1.25 - .35 1.00 = $6.40 $6.40 b.) Break-even volume in CD units and dollars: ($275‚000 + 250‚000) / 6.40 = 82‚032 units 82‚032 * $9.00 = $738‚288 to break even c.) Net profit if 1 million CD’s sold: 1‚000‚000 * 6.40 = 6‚400‚000 6‚400‚000 525‚000 = $5‚875‚000 d.) Necessary
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1) GENUINE MOTOR PRODUCTS Revised Pro forma Income Statement For 2007 Sales (1‚000‚000 units @ $30 per unit) Fixed costs Total variable costs (1‚000‚000 units @ $18.80 per unit) Operating Income (EBIT) Interest (10.75% x $12‚000‚000) Earnings before taxes Taxes (35%) Earnings after taxes Shares Earnings per share * Fixed costs include $2‚800‚000 in depreciation $ 30‚000‚000 5‚800‚000 18‚800‚000 5‚400‚000 1‚290‚000 4‚110‚000 1‚438‚500 2‚671‚500 2‚320‚000 1.15 $ $ $ 2) Although there is more
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two franchised stores in London‚ Ontario and Sarnia‚ Ontario in partnership with two separate business colleagues. Mr. Paul is looking for a way to convince Mr. Robertson (head office) to give him two franchises according to numbers projected on a pro forma financial statement. Problem Statement Richard Paul is looking to convince Mr. Robertson about acquiring two franchises as a first time franchisee while coming up with a financial plan that can accommodate and convince Mr. Robertson of this.
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end of August 1995 until June 1996 equal to $ 750‚000‚ and a total amount of sales of $ 30‚000‚000 (($ 18‚000‚000 - $ 750‚000) / $30‚000‚000 = 57.5%). For this reason we do not think this was a reasonable assumption to take. 2. Comparing the Pro Forma Income Statement with the effectively verified Income Statement for the period of July 95 till June 96‚ the first of the cause and effect relations that we can establish to explain the incapacity of SureCut Shears to repay its bank loan on March
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factors could Mr. McClintock consider in deciding whether or not to adopt the level production plan? 2. What savings would be involved? 3. Estimate the amount of added funds required and the timing of the needs under level production. Prepare pro forma income statements and balance sheets (rather than cash budget) to make this estimate. Ignore interest expense in making these estimates. 4. Compare the liabilities patterns feasible under the alternative production plans. What implications do
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the percent-of-sales method to prepare a pro forma income statement for the year ended December 31‚ 2010‚ for Hennesaw Lumber‚ Inc. Hennesaw Lumber‚ Inc. estimates that its sales in 2000 will be $4‚500‚000. Interest expense is to remain unchanged at $105‚000 and the firm plans to pay cash dividends of $150‚000 during 2010. Hennesaw Lumber‚ Inc.’s income statement for the year ended December 31‚ 2009 is shown below. From your preparation of the pro forma income statement‚ answer the following multiple
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Executive Summary Holding nearly 80% of the market share in the smokeless tobacco industry‚ UST Inc. has been generating large and stable income. However‚ the leading company in a certain industry tends to react slowly to market share erosion by competing firms and lack of creativity in the introduction of new product‚ a situation UST Inc. is now undergoing. Concerning the declining sales growth and gradual loss of the market share‚ UST Inc. is now considering recapitalizing by issuing debt
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CHAPTER 1- INTRODUCTION 1.1 Background ELECTRONIC SYSTEM SOLUTIONS (PVT) LTD was established in March 2006‚ by the director of the company Mr.Vipul Hettige. This company was initially opened to satisfy electronic needs to other companies as well as personal customers. This company faces heavy demand of stocks due to tensed security environment. When a customer walks into the company or if there is a requirement from one of these companies a quotation is sent by a customer service representative
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