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We want to finance growth mainly through cash flow and equity, but will need a second
short-term loan in the next year to cover our cash flow. The most important factor in our case is
collection days. We can’t push our clients hard on collection days, because they are larger
companies and will normally have marketing authority, not financial authority. Therefore, we
need to develop a permanent systems of receivables financing, using one of the established
accounting systems. In turn, we must intend to ensure that our investment is compatible with
General Assumptions
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0
The following table details important financial assumptions.
Break-even Analysis
Assumptions:
Average Percent Variable Cost 7%
Estimated Monthly Fixed Cost $19,492
6.3 Projected Profit and Loss
The table and charts illustrate the projected profit and loss.
Pro Forma Profit and Loss
Expenses
Programming $12,000 $0 $0
Cash Received
Dividends $0 $0 $0
Current Assets
Long-term Assets
Current Liabilities
Current Borrowing $0 $0 $0
Ratio Analysis
Percent of Sales
Main Ratios
Activity Ratios
Debt Ratios
Liquidity Ratios
Additional Ratios