5 Star Movers - Financial model - final 1

5 Star Movers - Financial model - final 1 - Assumptions - 5...

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Assumptions - 5 Star Moving Co. How we fund out initial investment 1) Each Co-founders investe $10,000 which equal total of $60,000 2) We borrow 100k from the bank @ 5.5% interest, with our assets (trucks and equipments) as collater 3) We borrow 150k from the bank @ 5.5% interest, with our revenues and our assets (trucks and equip Income Statement Assumptions: 1) Employee wages - will be increasing in proportion to the exact number of employees on hand. 2 new 2) Health Insurance will be available only to the 6 founders of the company therefore it will remain con 3) Miscellaneous Expenses will be phone service, internet service, Class A lincense, Fuel consumption 4) Moving Supplies will be growing in direct proportion to the increase in sales, thus we decided to cal 5) Although Office supplies will not be directly influenced by the growth of sales, for indirect reasons 6) Payroll Taxes will be held constant for the first year. 7)Research and Development will be a non-factor until we enter our second year in which we undergo 8) Rental Expenses- Will remain constant since we have leases multi-year leases. There would not be any rental expenses for the first 2 years. 9) Utilities- Similar to Rental Expense should remain constant. 10) Vehicle Insurance- Will remain constant the first year and will increase as we continue to employe 11) Worker’s Compensation- Will increasing in direct relation to expansion in employment Balance Sheet Assumptions: 1) We assume that 75% of our sales will be paid in cash and 25% will be in Account Receivable. To re 2) For our expenses, 75% of total expenses will be paid in cash and 25% will be in credit 3) We assume our Intangible assets (patents, copyright, and website) will increase in value by 5% per y Start up company B = 2.5 Rm = 11.7% 30 year t-bill Rf = 2.8% CAPM = 25.05%
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ral pmetns) as collateral w employees will be added every six month with the purchase of a new truck. nstant. n. lculate based upon change in sales. we assume a 3.0 % growth. development of our website and software for house blueprint layout. ee and purchase more moving vehicles. educe default risk, we only gives out credit to customers with very big jobs and has excellent credit. year
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Intial Investment Rent Expense: Warehouse $- Pay six months inadvance 1,200 per mo Office $15,000 Pay six months inadvance 1,500 per mo Total Rent Expense $15,000 Intangible Asset $20,000 Patent for website layout - 15000; copyr Information System $200,000 Includes software, Intranet, Website Renovation $10,000 1 Office space after 2 years Furniture and Furnishing $10,000 No office space until end of year 2 Moving Supplies $20,000 Boxes, Bubble wrapper, Tape Equipment - Moving $1,020 Dollies $100ea 2 per truck, Carts $50ea Office Equipment $9,594 cellphone 1,794, 1,300 per laptop for 6 $1,992 Cellphone costs, 6 months - Family plan $3,000 Wireless internet, 6 months, 6 wireless Advertisment Expense $5,400 Truck Ad, Newspaper Ads, Posters, rad
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5 Star Movers - Financial model - final 1 - Assumptions - 5...

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