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Wood furniture manufacturing business financial statements

Need to:
- Create pro-forma financial statements for the first five years of operations.
- Document all assumptions
- Support use of the assumptions.

*****Company is seeking growth capital in the amount of $50,000 for the purpose of purchasing new and more modern equipment and for training existing personnel in the use of that new equipment. The newer modern equipment will increase production by 40% and decrease unit cost by 30% and repayment can start within 30 days of the receipt of funds, further secured by the building owned by the company valued at $125,000.******

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Solution Preview

Balance Sheet looks like the following:

ASSETS LIABILITIES

Current: Cash Current: Accounts Payable
Accounts Receivable Accrued Expenses
Inventory Short Term Loans
Short Term Investments Unearned Income
Pre Paids Supplies
Supplies

Long Term: Buildings Long Term: Mortgage
Land Long Term Debt (BONDS)
Plant Long Term Lease
Equipment

Intangible: Goodwill EQUITY
Patents
Copyrights Retained Earnings
Paid In Capital
Reserve Accounts
Stockholder's Equity (Treasury ...

Solution Summary

This analysis presents information relative to the financial statements and how to gain insight into cash flow, return, and forecasting based upon limited information.

$2.19