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Assume you are planning to start a new business that will sell innovative consumer products via an online store. You will be pitching your idea to potential investors with the goal of securing funding. Your investors are very savvy and want to review a well thought out financial forecast. Using the examples provided in Chapter 6, construct a hypothetical 5 year Cash Flow estimate including depreciation and tax-related amounts. Be sure to show your detailed calculations and document at least five key assumptions. Also, explain why cash flows occurring at different intervals should be adjusted for a common date in order to allow for a proper comparison. show Calculations Revenues Year 2017 2018 2019 2020 2021 Inventory 5,000 6,500 9,000 11,500 13,000 Revenue at 40 per shoes: $200,000 $260,000 $360,000 $460,000 $520,000 Multiply Inventory by revenue of shoes of each year. Ex. For year 1 5,000 x 40= 200,000 Expenses Year 2017 2018 2019 2020 2021 Purchasing- $15,000 $15,000 $15,000 $15,000 $15,000 Packaging- $5,000 $5,000 $5,000 $5,000 $5,000 Shipping- $ 6,500 $8,000 $8,500 $9,000 $9,500 Depreciation- $6,500 $6,500 $6,500 $6,500 $6,500 Insurance etc. $10,500 $10,500 $10,500 $10,500 $10,500 Total Expenses $ 43,500 $ 45,000 $45,500 $46,000 $46,500 Add all the expenses for each year to get total expenses.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M92010244

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