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  3. rev: $4,000 cogs: $1,500 1. calculate gross profit

Rev: $4,000 COGS: $1,500 1. Calculate Gross Profit Operating Expenses: SG & A : $1,900...

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Question

Finance

Rev: $4,000

COGS: $1,500

1. Calculate Gross Profit

Operating Expenses:

SG & A : $1,900

Marketing: $400

Depreciation: $200

2. Calculate Net Income

Add back Depreciation

3. Calculate Cash Flow

4. Use a multiple of 4x to determine Valuation

5. Add Back $300 to COGS

6. Add Back $500 to SG & A

7. Calculate the Real Valuation of what CGC is actually worth

8. How much does the Bank

Your Valuation for Step 4 should be $600

The split of the Bank loan is 75%, your Fund is 25%

9. How much is your Fund responsible for investing?

10. How much is the Bank responsible for loaning?

The valuation for step 4 is $800 ($200 x 4) Do not attempt to do question 8

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