Frank is going to pursue additional financing from the localbank. The bank will require some insight into how Frank's businesswill be successful and sustainable.
Prepare a short write up (approximately 1 page)explaining to the bank why your (Frank's) business will be viable.Submission could include (but are not limited to) location, time ofyear, target consumer, pricing, anticipated sales volume, and whatmakes your hot dogs special.
Your write-up should ask for an amount of cash from the bankthat covers the assets you could not buy, as listed in the prompt(and remember there was a $50K equity infusion already), and shouldgive some buffer for some additional cash to keep on hand.
Prepare DRAFT estimated financial statements for thebank to consider.
The financial statements are going to be basic and will build onyour fundamental knowledge from the first three chapters of thebook. You will provide
- A balance sheet that includes the assets discussed in theannouncement only, as well as equity (the amount invested whichthere are no plans to repay - from the announcement), and theliabilities (amounts expected to be repaid in cash to the bank).While we're not that far into debt/equity, the primary differenceis whether the Company is expected to repay in cash.
You can use the discussion as finalized in the announcement forthe assets, liabilities, and equity you will expect to see on thebalance sheet. The write up to the bank should be professional andrequest an amount of money which is sensible based upon the needsof the business, with some cash buffer to have cash on hand. Pleasesee earlier discussions and announcements.
