financial analysis including Income statement, Balance sheet and stateent of cash flows for an app business...

Free

80.2K

Verified Solution

Question

Finance

financial analysis including Income statement, Balance sheet andstateent of cash flows for an app business plan

Ihave no data. it is a simulation on a business that doesn’t existyet and needs to be created. It is an application that will linkkids and eldery to discuver their skills with school that willprovide them with working on their skills. I will be making moneyin clicks and advertizing from my platform. I will invest my$100,000 cash and will need 3.5 million loan to support 3 peoplesalary expense, rent a facility, app creation expenses, buyequipment...
please help me creating something realistic.

interest can be a number between 6 to 9 percent and expectedearnings will be progressively from first year around $250,000second year $350,000 and the 3 following years around $650,000 to$750,000 to facilitate the ROE and pay back loans. the first twoyears doesn’t need to be positive in ROE but from the third yearshould pick up.
Please advise if realistic.

Answer & Explanation Solved by verified expert

4.4 Ratings (709 Votes)

Profit and Loss A/c	Year 1	Year 2	Year 3
Income from Operations	250,000.00	350,000.00	750,000.00

Expenses
Salary	108,000.00	118,800.00	130,000.00
Rent	24,000.00	25,200.00	26,400.00
Indirect Expenses	12,000.00	13,000.00	15,000.00
Depreciation	75,000.00	100,000.00	125,000.00
Interest	105,000.00	150,000.00	175,000.00
	324,000.00	407,000.00	471,400.00
Profit/Loss	(74,000.00)	(57,000.00)	278,600.00

Balance Sheet	Year 1	Year 2	Year 3
Liablities
Capital	100,000.00	100,000.00	100,000.00
Loans	3,500,000.00	3,500,000.00	3,500,000.00
Current Liabliities	350,000.00	250,000.00	450,000.00
	3,950,000.00	3,850,000.00	4,050,000.00

Assets
Fixed Assets	1,500,000.00	2,000,000.00	2,500,000.00
Current Assets	2,450,000.00	1,850,000.00	1,550,000.00
	3,950,000.00	3,850,000.00	4,050,000.00

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

financial analysis including Income statement, Balance sheet andstateent of cash flows for an app business planIhave no data. it is a simulation on a business that doesn’t existyet and needs to be created. It is an application that will linkkids and eldery to discuver their skills with school that willprovide them with working on their skills. I will be making moneyin clicks and advertizing from my platform. I will invest my$100,000 cash and will need 3.5 million loan to support 3 peoplesalary expense, rent a facility, app creation expenses, buyequipment...please help me creating something realistic.interest can be a number between 6 to 9 percent and expectedearnings will be progressively from first year around $250,000second year $350,000 and the 3 following years around $650,000 to$750,000 to facilitate the ROE and pay back loans. the first twoyears doesn’t need to be positive in ROE but from the third yearshould pick up.Please advise if realistic.