StudentShare solutions

# Moyou financial projection - Essay Example

## Extract of sample Moyou financial projection

The information is based on forecasts. Forecasting is used in estimating future performance of the business (Shim and Siegel 2007). It is useful in the financial planning process which entails assessing future financial needs. Investors use forecasting to value a company and determine its security. Pro forma statements show forecasts for periods ranging from 1-5 years. This report will assess the financial viability of MoYou by carrying out financial projections. The projections are based on the data obtained from the entrepreneur of the organization during an interview. According to the entrepreneur, annual sales add up to ?1 million. The Cost structure is as follows: The average cost is 3-5 USD per bundle unit. plate - 1\$, nail polish 0.9\$; Moyou is paying manufactures for labor according to their supply as mentioned above; variable- delivery and dispatch cost varies according to speed of delivery, and its range is from 0.3- 0.7 USD per unit. Service cost- Moyou customer service is based in Brent cross; fixed cost- ?900 per month, variable cost- ?150 per month, staff wages- ?2750 per month. Media and Public relations cost; Exhibitions cost- ?750 annual and cost Marketing and brand development cost- ?2150 annual cost Income statement projections In the income statement forecast as shown in appendix 1 we assume: Sales grow at 10% annually Variable costs vary with the number of units sold All units produced are assumed to be sold Fixed costs remain constant throughout except the marketing, and product development costs Tax rate of 24% is to remain constant Marginal costing method has been used in projecting the income statement. Appendix INCOME STATEMENT FORECAST           2013 2014 2015 2016 2017 Number of units sold 100,000 110,000 121,000 133,100 146,410 sales 1,000,000 1,100,000 1,210,000 1,331,000 1,464,100 Less variable costs:   Variable service costs 1,800 1,980 2,178 2,396 2,635 variable delivery & dispatch costs 50,000 55,000 60,500 66,550 73,205 Direct labor costs:   Plate 90,000 99,000 108,900 119,790 131,769 Nail 100,000 110,000 121,000 133,100 146,410 Total Variable costs 241,800 265,980 292,578 321,836 354,019 Less overheads costs:   Fixed service costs 10,800 10,800 10,800 10,800 10,800 Staff wages 33,000 33,000 33,000 33,000 33,000 Media and Public relations:   Exhibitions costs 9,000 9,000 9,000 9,000 9,000 Marketing and brand development 25,800 28,380 31,218 34,340 37,774   78,600 81,180 84,018 87,140 90,574 Net Profit Before Tax 679,600 752,840 833,404 922,024 1,019,507 Tax @24% (163,104) (180,682) (200,017) (221,286) (244,682) Operating income 516,496 572,158 633,387 700,739 774,825             The operating income is a projection of financing the company needs. Projected balance sheet BALANCE SHEET FORECAST           Fixed Assets 2013 2014 2015 2016 2017 Property, plant & Equipment 1,200,000 1,080,000 972,000 874,800 787,320     Current Assets   Inventories 300,500 301,500 301,500 301,500 301,500 Cash 500,000 730,658 600,000 650,000 730,000 Accounts receivables 215,996 150,000 450,887 524,439 557,905 Total Assets 2,216,496 2,262,158 2,324,387 ...Show more

## Summary

Name…………………………………………………………………………….xxxxxx Institution……………………………………………………………………….xxxxxx Course……………………………………………………………………………xxxxx Professor………………………………………………………………………….xxxxx @2013 Mayou financial projection Investors and stakeholders use the financial information of a business for decision making purposes…
Author : norberto28
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Moyou financial projection"
with a personal 20% discount.
Grab the best paper

### Check these samples - they also fit your topic

Financial Plan
Preparing the projected financial statement, the researcher forecasted the sales estimation for the first two years and conducted competitive analysis and projected demand. The projected financial statements for The Track Table include income statement, cash flow and balance sheet for the next two operating years.
6 pages (1500 words) Essay
Self-Projection Project
One might ask, “How does one eat an elephant?” The answer is simple: piece by piece. Completing this self-projection clarity project has helped me move towards bigger and better things in my future Completing the RBS (Reflective Best Self Exercise) has helped me learn and grown as a person, which is so integral to who I am.
10 pages (2500 words) Essay
Financial Upheavals. Financial crisis
Student Name: Course: Instructor Name: Date of Submission: Financial Upheavals Financial crises are inevitable and seem to be a usual and reasonably invariant characteristic of such business cycle. The economic system of any country is subject to discrete business cycles that lie on the boom-depression continuum.
10 pages (2500 words) Essay
Model in the projection of equity portfolio
Similarly, pension funds as well as insurance companies utilize modeling in identification of assets for their respective portfolios. Private equity funds, just like other sectors also use models to evaluate their effectiveness and performance. The widespread use shows the effectiveness of modeling as an integral part in analysis.
12 pages (3000 words) Essay
The Rise of Modern Amphibious Warfare: The Coming of Global Maritime Power Projection
The modern warship had the capacity to navigate all water and river systems and had adequate space for carrying more troops and food supplies necessary to sustain a combat for a longer time.1 As such, it promoted the effectiveness of amphibious warfare during this period.
4 pages (1000 words) Essay
Fat Panel Plasma, Flat Panel LCD, and Projection DLP/LCD Televisions
There is a lot of uncertainty and misleading information available on plasma TV's, LCD TV's and DLP TV's. Everyone and anybody claim to have the answer and are always bias depending on what the store desires to move or what the factory makes. The truth is that each has advantages and disadvantage depending on the use.
13 pages (3250 words) Essay
Financial
Its profit is still higher than Option 2 while Option 1 has the highest projected profit. Option 2 has an estimated 16.15% drop in profits and is the
3 pages (750 words) Essay
Financial
Accounting and record-keeping is not only required by the taxing and regulatory authorities but also by firms’ managers and owners for decision
1 pages (250 words) Essay
Financial Projections
Budgets and expenditures are developed in the light of marketing expenditures and budgets required. Moreover, sales and revenue targets that are assigned to particular operations teams are also
1 pages (250 words) Essay
Cost projection
The pilot project seeks funding from the Department of Environmental Protection of New York City. The project is part of the green infrastructure system that the environmental agency commenced at the
4 pages (1000 words) Essay
Hire a pro to write