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A Report
on Dream Cake
MGT 401 (B)

Prepared for:
MD. Zahidul Islam
Course Instructor
College of Business Administration (CBA) of
IUBAT

Prepared to:

SL.

Name

ID

1.

Amatullah Nadira

11302064

2.

Sarowar Jahan

11302107

3.

Zunayed Sarker

11302111

4.

Md Shahin

11302101

Submission Date: 22 ndNovember, 2014
IUBAT- International University of Business Agriculture and Technology

1

Letter of Memo
22 nd November, 2014
MD. Zahidul Islam
Faculty of CBA-IUBAT
IUBAT- International University of Business Agriculture and Technology
Subject: Application for accepting this Report.
Dear Sir,
With due respect, We beg to state that it is a great pleasure for us to submit our report topic on
– “……………………………………..” We were assigned to this report and submit this
report as the partial fulfillment of the course entitled Career Planning and Development -11
(Course code:(MGT-401).
In preparing this report, We tried our level best and worked with most sincerity to gather
information and make it as well structured as possible. We learned a lot while preparing this
report.
May we, therefore, pray and hope that we will be obliged, if you kindly accept this report. We
are ready to make you clear regarding any confusion.
Sincerely yours,
………………
Nme:
ID:

2

Table of Contents
Particulars

Page no.

1. Prefatory Part :
1.1 Title Page

01

1.2 Letter of Transmittal or Memo

02

1.3Table of Contents

03

1.4 List of Figures

04

1.5 Executive Summary

05

2. Body Part:
2.1 Background
2.2 Problem or Purpose
2.3 Significance
2.4 Scope
2.5 Sources and Methods
2.6 Organization
2.7 Discussion of Findings
2.8 Recommendations
2.8 Conclusion
3. Supplementary Parts:
3.1 Work Cited, Bibliography and References
3.2 Appendix
1.4 List of Figures

3

Topics

Pages no.

1. Executive Summary
4

Our commitment to excellence in the craft and artistry of baking enables us to deliver high
quality products that look superb, delight the customer and make celebrations a moment to
cherish. We also have committed ourselves to tantalizing the pallet of coffee connoisseurs.
Our products will exceed local stores and franchise competitors. Our product wills possess
that certain something that others do not have. Dream Cake is a trendy, online

business built around the belief that eating a healthy, organic
dessert can have a significant impact on a person’s well-being and
attitude, especially for those who believe in consuming only natural
ingredients. Incorporating the adaptability factor, our company will
cater to customers who require special needs such as vegan, glutenfree and sugar-free diets. Dream Cake also believes that customers
can have great tasting organic baked cupcakes if the right attention
is paid to sourcing, recipes and consistent quality. Finally, it is the
purpose of Dream Cake to give back to nature by nourishing our
environment through providing each of our customers who purchase
our products with a packet of seeds to plant, thus replenishing the
earth as well as we will be donating a percentage of our profits to
The Conservation Fund, a company whose mission is to balance
both nationally endorsed environmental and economic goals.

5

2. Industry Analysis

2.1 Industry size, growth rate, and sales projections
2.2 Industry structure
Bakery Industry

ORGANISED

Large

Medium

Mfg.

Mfg.

UNORGANISED

Small Mfg

Small

Cottage

Kirana

Bakery

and

Stores

units

Household

2.3 Nature of participants
2.4 Key success factors
Dream Cake has identified three keys that will be instrumental to its success. The first
is the need to develop the finest coffee available. The second requirement to develop a
top notch customer service organization that exceeds customer expectations. The last
element is to employ strict financial controls. The development and implementation of
finance and accounting controls will help ensure fiscal success.

2.5 Industry trends
The present food and beverage industry is marked by strongcompetition which demands
meticulous strategies by the market participants to cater to the dynamic needs of the global
market. The manufactures need to understand the fact that in the present world of cut-throat
competition meeting consumer demands through innovation is the key to sustain and grow in
the industry.

6

2.6 Long-term prospects
3. Company Description
At Dream Cake Company, the difference is in the details. We believe your celebration is
special, no matter how big or small. This belief is reflected in our cakes. We offer custom
designs based on your particular theme or event. Many of the cakes in our galleries were
based on themes, colors, and details brought to us by customers looking for that one-of-akind look specially made for their party. Homemade ingredients ensure that the cake will
taste as good as it looks. And our extra attention to detail allows us to continually exceed our
customers’ expectations each and every time. Did you know we rarely make the same cake
twice? But this is the best part of what we do! It enables us to constantly be challenged to
come up with new ideas, which guarantees you will receive something unique – made just for
you!
 Company history
The major reason behind my desire to establish the business is that in 2008 I spentsome
months as a full-time solo father, and during this period decided that for the future
sustainability of my lifestyle, I needed flexibility and the opportunity to control my own
destiny. I have invested in the business idea some of my private savings, plus a suspended
loan from my father, which I intend to repay during year two of my business. This loan will
be drawn down as needed (see cash-flow projection) I am totally confident that Western
Landscaping will be established on a firm basis, with an excellent future. The Business Plan
has been completed with the assistance of a Business Coach from the local Enterprise
Development Agency, and is designed to support my idea and allow me a realistic overview
of the viability of the proposal.

 Mission statement
DREAM CAKE aims to offer high quality cake and pastry products at a competitive price to
meet the demand of the middle- to higher-income local market area residents and
tourists.Revive and Preserve the elegance and sensation of age old baking, and cake
decorating with culinary techniques to achieve the height of quality and excellence in the

7

cake and pastry industry. Our products range from high end artistry to modern and local
customs. If you dare to dream we will create it.

 Products and services
DREAM CAKE offers a broad range of coffee and espresso products, all from high quality
Columbian grown imported coffee beans. DREAM CAKE caters to all of its customers by
providing each customer coffee and espresso products made to suit the customer, down to the
smallest detail.The bakery provides freshly prepared bakery and pastry products at all times
during business operations. Six to eight moderate batches of bakery and pastry products are
prepared during the day to assure fresh baked goods are always available.

 Current status
Our long term goal is to open franchising to the general public particularly experienced
bakers who have taken our cake baking classes and business of baking courses with a view to
expanding our product, employment acquisition and small business development services
across the east coast. In the short term we will expand or client base in the Baltimore
metropolitan area.

 Legal status and ownership
Dream Cake company is an origons corporation.The primary stockholder and founder are
Zunayed,Nadira,Shahin,Sarowar.
Key partnerships (if any)
3. Market Analysis
 Market segmentation
8

Dream Cake is the process of analyzing and classifying customers in a given market to
create smaller, more precise target markets. Dream Cake has identified its overall market to
consist of people who have a higher level of discretionary income to indulge in and
appreciate the exquisite creativity and flair to consume extraordinary cupcakes that not only
taste good and look good, but also reflect the company’s concern for improving the
environment. Geographically, our market will start within the CT area and expand to
surrounding states in the next 5 years. Psychographic ally, our focus involves identifying
people who enjoy luxury items, care about eating organic products, and show concern for the
preservation of our environment. Our trendy company emphasizes its marketing efforts
towards the Baby Boomers (those born 1946-64), Generation X (born 1964-74), Generation
Y (born 1975-95) and Generation Z (born 2000-2021). Among potential customers identified
to be a part of our target market we have identified special events that would involve those
customers such as:
• Anniversary parties
• Baby showers
• Bah and Bat mitzvahs
• Birthday parties
• Bon Voyage
• Bridal showers
• Christenings
• Congratulatory celebrations
• Graduations
• Holidays i.e., Easter, Christmas, Fathers’ Day, Mothers’ Day, St. Patrick’s Day,
Thanksgiving, Hanukkah, Kwanzaa, Valentine’s Day, Earth Day, Passover, Memorial Day,
etc.
• New Home Welcoming
• Retirements
• Thank you
•Weddings
 Target market selection
Dream Cake focuses on the middle- and upper-income markets. These market segments
consume the majority of coffee and espresso products.The primary target market for your
9

business may be larger events, like weddings and bigger parties. And your work in those
areas might be impressive, but often seeing only a couple of categories on a bakery’s website
or mentions of “weddings, birthdays and MORE” on a Facebook page seems really limited. If
you want people to find your business for a variety of occasions or better yet, encourage them
to think about getting a custom cake or specialty cupcakes for an event they hadn’t even
considered, why not put the idea in their heads? Offer expanded categories and show
examples.
Local Residents
Dream Cake wants to establish a large regular customer base. This will establish a healthy,
consistent revenue base to ensure stability of the business.
 Buyer behavior
Consumers are choosing to drink higher-grade coffees, moving away from price-based
purchasing to trends that focus on increased quality in a wide variety of products. In the
U.S., the coffee market has been segmented into two major categories: mass-market and
specialty coffees.
1. Mass-Market: Mainly lower-priced product sold through grocery retail outlets and
convenience stores. Mass-market coffee consumption is declining approximately 5%
per year as people of all ages embrace out-of-home specialty coffees. Grocery retail
outlets are providing the consumer with more premium coffee choices and are
partnering with specialty coffee roasters capturing an increasing share of the massmarket sales channels.
2. Specialty Coffee: Characterized by a quality grade product with branding, historically
sold only through coffee shops. Five years ago, there was a clear line between massmarket and specialty coffees in quality, price and distribution channels. Today, there
are two sub-categories that make the positioning more blurred: Premium and
Specialty coffees.
Specialty coffee retailers sell higher quality coffee at premium prices. Now, premium
coffees have been introduced into other distribution channels to sell below specialty
coffee retailer prices, undercutting the exclusive advantage coffee retailers once had.
Specialty coffee sales grew 38% from $7.76 billion in 2000 to $10.71 billion in 2001,
comprising 30% of the total U.S. coffee market. The specialty coffee market is
characterized by being high fragmented with one large player, several mid-tier
companies, and thousands of small regional companies.
Before the success of the specialty coffee retailers in the 90's, coffee was a breakfast drink
and choices were caffeinated or decaffeinated. The incredible success of the specialty
coffee retailer can be attributed to introducing coffee as a social drink and providing the
10

consumer with new unimagined choices of coffee drinks while introducing and
conditioning the consumer to the taste of specialty coffees.

 Competitor analysis
The level of competition is high in the market and is on the rise. This is because a few
restrictionspose difficulty for new companies to enter the market. This is one of the major
reasonsthat have kept the concentration of industry assets low. However, the in spite of the
competition,the U.S. bakery industry has been able to increase the average per unit prices of
thebaked goods almost every year since 1991. This indicates that the competition has its own
Limits in this market space and this has resulted in the profitability for the industry
participants.The competitors in the bakery industry can be classified as commercial bakeries
and retail bakeries.

SWOT Analysis
Strengths
 Passionate owner who believes in giving back to her
community/environment
 Experienced owner who has a creative flair
 Sustainable competitive edge of adaptability to all occasions,
trends, and
 consumer market needs
 Using organic ingredients resulting in high quality product
 Minimal, but experienced staff to start business and save
money
 Financial resources will be used to give back to assist in the
national
 environmental goals
 Offering opportunities for consumers to join in our ecological
goals
Weaknesses
 First time business venture
 Start up costs are only estimates
 Funding a small business could be difficult
11

 Potentially could be understaffed if our product demand
increases drastically
 Experience in marketing our product is minimal
Opportunities






Capitalize on changing market
Join the trend of modern cupcake design
Focus on large sales through participating at bridal fairs
Green technology will improve our image
To grow quickly and expand, possibly partner with another
business

Threats
 Competitors could “steal” our ideas
 Partnerships may not become available
 Financial problems could threaten our first year’s success
 Time management could falter our productivity

4.The Economics of the Business
Revenue drivers and profit margins
Profit margin is calculated with selling price (or revenue) taken as base times 100. It is the
percentage of selling price that turned into profit, where as "Profit Percentage" or "Markup"
is the percentage of cost price that one gets as profit on top of cost price. While selling
something one should know what percentage of profit one will get on a particular investment,
so companies calculate profit percentage to find the ratio of profit to cost.
The profit margin is mostly used for internal comparison. It is difficult to accurately compare
the net profit ratio for different entities. Individual businesses' operating and financing
arrangements vary so much that different entities are bound to have different levels of
expenditure, so that comparison of one with another can have little meaning. A low profit
margin indicates a low margin of safety: higher risk that a decline in sales will erase profits
and result in a net loss, or a negative margin.

12

Profit margin is an indicator of a company's pricing strategies and how well it controls costs.
Differences in competitive strategy and product mix cause the profit margin to vary among
different companies.
On the other hand, profit percentage is calculated with cost price taken as base








Suppose you buy something for $100 and sell it off for 150.
cost price =100
selling price (revenue) = 150
profit = 50 - 100 = 50
profit percentage = 50/100 = 50% (profit as percentage of cost price)
profit margin = 50/150 = 33.33% (profit as percentage of selling price or
revenue)

 Fixed and variable costs

 Operating leverage and its implications

 Start-up costs
DREAM CAKE is a start-up company. Financing will come from the partners' capital and a
ten-year SBA loan. The following chart and table illustrate the company's projected initial
start-up costs.

Start-up Requirements
Particulars
Start-up Expenses
Legal
Premise renovation

Amount

30,000
20,000
13

Expensed equipment
Other
Total Start-up Expenses
Start-up Assets

40,000
10,000
64,000

Cash Required
Other Current Assets
Long-term Assets

7,00,000
1,20,000
6,50,000

Total Assets

16,34,000

 Break-even chart and calculations
The Break-even Analysis indicates that approximately $19,000 will be needed in monthly
revenue to reach the break-even point.
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even

$19,170

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

33%
$12,844

Chart: Break-even Analysis
Break-even Analysis
9,000
6,000
3,000
0
(3,000)
(6,000)
(9,000)
(12,000)
0

6,000
3,000

12,000
9,000

18,000
15,000

24,000
21,000

30,000
27,000

33,000

14

4. Marketing Plan
 Overall marketing strategy
Maintain a focus on Quality product with bottom-line growth through cost reduction and
optimal performance. We also focus on technology and innovation to make sure employees
have extensive training to perform proper technique and equipment operation. Maintain 100percent honesty between employees, customer and management. As a team input will be
collected analyzed and put into practice. Team meetings weekly will motivate and forecast
growth and annihilate potential difficulties.

 Product, price, promotions, and distribution
Cakes
Wedding Cakes, Anniversary Cakes, Graduation Cakes, Sculptured Cakes, Lemon,
Carrot, Strawberry Short Cake, Pineapple.
 Sales process (or Cycle)
 Sales tactics
5. Design and Development Plan
Showcase of elegantly decorated special occasion themed cakes priced from $75 - $900.
Wireless Café where customerswiilll have ability to connect via the Internet while enjoying
leisure or meeting and greeting business associates in an upscale coffee shop/bakery
environment.
 Development status and tasks
 Challenges and risks
The bakery industry outlook analyses the major trends and opportunities in thisindustry.
Bakery products covered under this study includes bread, morning goods, cakes & pastries
15

and biscuits. Shifting consumer trends and increasing consolidation have posed a significant
challenge to bakery manufacturers. However, if manufactures work towards meeting
consumer demands, they can easily translate this challenge into a potential driver. Hence, this
trend has presented significant growth opportunities for the bakery ingredient manufactures
as well, who grow along with the bakery market.

 Projected development costs

Pro Forma Cash Flow
Year 1

Year 2

Yea

Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations

$20,599
$43,327
$63,926

$78,202
$182,958
$261,161

$88,86
$257,03
$345,89

Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received

$0
$0
$0
$0
$0
$0
$0
$63,926

$0
$0
$0
$0
$0
$0
$20,000
$281,161

$
$
$
$
$
$
$
$345,89

Year 1

Year 2

$83,940
$77,036
$160,976

$112,080
$178,464
$290,544

$124,08
$193,66
$317,74

$0
$0
$0

$0
$0
$0

$
$
$

Cash Received

Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment

16

Yea

Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent

$0
$0
$0
$0
$160,976

$0
$0
$0
$0
$290,544

$
$
$
$
$317,74

Net Cash Flow
Cash Balance

($97,050)
$18,950

($9,383)
$9,567

$28,14
$37,71

 Proprietary issues (patents, trademarks, copyrights, licenses, brand names)
6. Operations Plan
 Business location
DREAM CAKE is headquartered in the town of Southbury in Connecticut. We are located in
our own private building at 234 Judd Road, where all of our products are made from, stored
in and shipped from.

 Facilities and equipment
7. Management Team and Company Structure
 Management team
When an entrepreneur starts small business like our Stop Company, it is common to
do as much as possible at the beginning. However, as our enterprise will continues to
grow, it will eventually get to a point that additional senior management team
members are required to oversee increasing demands of differing operational aspects
of the business. Each member of the executive team must possess the skills to fit the
position. A management team is directly responsible for managing the day-to-day
operations of a company. Positions that are commonly considered to be part of that
team include the following
Chief Executive Officer (CEO)

17

A CEO is the leader of the management team and is responsible for all final decisions.
He/she must be a strategic thinker who can predict the future of the industry, plan
routes for business development, and take good bets with business resources. Among
the CEO’s skill-set, the most important is the ability to put the right person in the right
position, and replace those who do not deliver. In this way, he/she can delegate
important tasks to competent people, free himself/herself from operational details and
focus on high level business strategy. The business owner may choose to retain the
role of CEO, or prefer to hire one, based on the level of involvement desired.

Chief Operating Officer (COO)/ President
COO and Presidents functions are very similar in a small business. They both oversee
staff functions, daily operations and make sure the business runs smoothly day to day.
The COO is detail-oriented, able to implement strategic plans using skilful tactics.
Chief Financial Officer (CFO)
A CFO is responsible for setting financial goals and controlling budgets. He/she
calculates how to spend the least money leading to the largest return. Of primary
importance to the CFO is attention to the company’s cash flow, the blood of every
business. If the business owner does not want to carry a series of numbers to bed
every night, hire a CFO to take care of the finances. In many small businesses, a parttimeCFOfillsthisrole.
Chief Marketing Officer (CMO)
A company’s success can heavily weigh on its marketing strategy. Therefore, the
CMO plays a crucial role in the management team. A CMO should have a profound
understanding of our company’s services, as well as those of competitors. He/she is
then able to precisely position the goods or services in the marketplace and effectively
communicate product/service value to customers.

 Board of directors
 Board of advisers
18

 Company structure
A company structure consists of activities such as task allocation, coordination and
supervision, which are directed towards the achievement of organizational aims. It can
also be considered as the viewing glass or perspective through which individuals see
their organization and its environment. Organizations are a variant of clustered
entities.
An organization can be structured in many different ways, depending on their
objectives. The structure of an organization will determine the modes in which it
operates and performs.
Company structure allows the expressed allocation of responsibilities for different
function and processes to different entities such as the branch, department, workgroup
and individual.
Company structure is a formalised structure should ensure that each member of the
company to understands their own role within the company dynamics. Besides, it will
able us to understands the roles of the other members of the team. Company structure
also can help us to make appropriate use of the communication channels that have
been established. It is also given an manageable distribution of the work load. Our
company practice 3 types of team structure in the organization chart that is Leaderbased, Hierarchical and Democratic.

Owner
President
Accounting

Marketing

Operation

HR

Manager

Manager

Managers

Manager

Advertising

Sales

Note takers

Copiers

Supervisor

Supervisor

Supervisor

Sales Staff

Note Takers

Copiers

19

7. Overall Schedule
 Incorporating the venture
From the moment of its inception, a new company takes on its own identity, but for legal
purposes a business is not “real” until it is formally incorporated in a particular state. There
are numerous how-to manuals on incorporation, and it is possible to incorporate on your own
for a relatively small filing fee. While this option saves money in the near term, it is
important that you get qualified advice from an attorney. The money will be well worth it and
will likely save frustrations in the long run. The latter is something to be avoided, as one of
the primary motivations for incorporating is to protect the principals from being held
personally liable for the company’s debts. A good attorney will ensure that accurate filings
are fulfilled.
 Completion of prototypes
Recently a client came to us with an idea for a prescription medication container. Working
from a rough concept sketch, we developed a 3D drawing and built a product prototype
which was tested for form, fit and function - within three days. As a result of initial tests,
the client made design changes which were implemented the same day. A modified
prototype was available for a second round of tests in two days. Changes were again
made to perfect the design and a third and final prototype was completed in two days.
 Rental of facilities
 Obtaining critical financing
 Starting production
 Obtaining the first sale


1. Make Friends on Facebook: Learn how to get started with Facebook marketing everything from crafting strategic status updates to creating a compelling Facebook
page for your store.

20



2. Network on LinkedIn: Find out how to strategically connect with people, complete



your profile, what to post and how to leverage LinkedIn groups.
3. Get Busy on Youtube: Discover how to sell with video, what video software to use,



what kind of video content to produce and how to get started with YouTube analytics.
4. Spark Conversations on Twitter: If you're new to Twitter then this section is for
you. Learn how to get started setting up your account and how to strategically engage



potential followers and customers.
5. Inspire with Pinterest: Pinterest can be a huge driver of traffic. In this chapter we
show you how to integrate a 'Pin it' button on your site and start inspiring potential



customers to start following your pins.
6. Work It on Instagram: Instagram is quickly becoming one of the best platforms for
online store owners to build an audience with. Discover how to post photos that drive



engagement, run contests and more.
7. Tap Into Tumblr: Here's where we show you everything you need to know to get
started with Tumblr, from picking a theme, adding content and building links back to
your store.
Search Engine Marketing



8. Stand Out on Comparison Shopping Engines: Price driven shoppers often use
comparison shopping engines to make a purchase these days. Here, you'll learn how



to leverage these website and get your products in front of more people.
9. Get On Google Places: Google Places is Google’s answer to the good old yellow
pages, and yes even if you haven't made a dime, you're going to want to be found on



Google Places. In this chapter we show you how.
10. Leverage the Yahoo! Bing Network: Learn how to use paid search ads on the
Yahoo! Bing Network to drive targeted traffic to your store.


8. Financial Projections
 Sources and uses of funds statement
 Assumptions sheet
In IPM, the discount rate and the capital charge rate are the two parameters that
encapsulate the financing assumptions for an investment option. The discount rate is
necessary for calculation of net present value (NPV). It allows for inter-temporal analysis
and represents the time value of money. Annualized capital payments for an investment
are computed using the capital charge rate, which takes into account the cost of debt,
21

return on equity, taxes and depreciation. The EPA Base Case 2000 includes divergent
technologies that have different methods of operation, financing, revenue streams,
depreciation schedules and risk profiles. Assumptions about the capital charge rate and
discount rate in EPA Base Case 2000 reflect these differences and are technology specific.
The discussion below describes the methodology and assumptions on the capital charge
rate and discount rate in EPA Base Case 2000
 Pro forma income statements
Total Y1

Y2

Y3

$152,500

$150,000

$200,000

Maintenance

376,875

1,500,000

2,550,000

Sales

529,375

1,650,000

2,750,000

15,250

15,000

20,000

Gross Profit

514,125

1,635,000

2,730,000

Software Development - OBRA e-z

120,000

24,000

24,000

2

Software Development - MasterLink

204,000

12,000

12,000

1

Salaries

582,000

611,100

641,655

Selling Expense

120,000

120,000

126,000

Office Expense

62,400

62,400

65,520

Licenses

Cost of Goods Sold

22

Other

12,000

12,000

12,600

Total SG & A Expense

1,100,400

841,500

881,775

Operating Profit

(586,275)

793,500

1,848,225

Interest Income

11,787

1,981

30,213

(574,488)

795,481

1,878,438

Income Taxes

2,393

278,418

657,453

Extraord. Item: Tax Refund

2,393

201,071

0

($574,488)

$718,133

$1,220,985

Earnings Before Taxes

Net Income

 Pro forma balance sheets

Balance Sheet as of our Company
Assets

Liabilities

Current Assets

Current Liabilities

Total Current Assets

44587

Total Current Liabilities

-

Long Term Liabilities
Long Term Assets

23

Total Long Term
Assets

94431

Total Long Term Liabilities

1

Owner Equity
Total Owner Equity

Total Assets



1

13901

Total Liabilities and Owner

8

Equity

1

Pro forma cash flows
General Assumptions
Mo

Mo

Mo

Mo

Mo

Mo

Mo

Mo

Mo

Mo

Mo

Mo

nth

nth

nth

nth

nth

nth

nth

nth

nth

nth

nth

nth

Plan

1
1

2
2

3
3

4
4

5
5

6
6

7
7

8
8

9
9

10
10

11
11

12
12

Month
Current

10.0 10.0

10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0

Interest

0%

0%

Rate
Long-

10.0 10.0

10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0

term

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

Interest
Rate
Tax Rate

30.0 25.0

25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0

Other

0%
0

0%
0

0%
0

0%
0

0%
0

0%
0

0%
0

0%
0

0%
0

0%
0

0%
0

0%
0

 Ratio analysis
24

Ratio

Company Average

1. Liquidity Ratios
Current Ratio

-6.67

2. Investment Utilization Ratios
Inventory Turnover

26

Total Asset Turnover

1.44

Fixed Asset Turnover

2.93

3. Solvency Ratios
Debt Ratio

86.4%

Debt to Equity Ratio

6.34

4. Profitability Ratios
Gross Profit Margin

52.9%

Net Profit Margin

9.8%

Return on Assets

14%

Return on Equity

103%

25

26

27

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