FINANCIAL ANALYSIS

[Name of the Institute]

Abstract3

Introduction4

Company Profile4

Logo5

Mission Statement5

The nature of Business5

Keys to Success5

Future Outlooks6

The Financing6

Goals6

Focus7

Product7

Quality7

Performance7

Feature7

Reliability7

The Name7

Serviceability7

Geographical Segmentation8

Demographic Segmentation8

Gender8

Family size8

Income Groups8

Occupation8

Psychographic Segmentation8

Target Market9

Prices9

Strategy Marketing Objective9

Financial Strategies10

Selling Price calculations/Standard Cost Card10

Break-even point10

Operational Budget11

Income Statement12

Calculation of Net Present Value12

Cash Flow Statement13

Payback period13

Balance Sheet14

Financial Ratio Analysis14

Assets15

Current Assets15

Fixed Assets15

Current Liabilities15

Long term Liabilities15

The Risk15

Financial Analysis

Abstract



The paper is about the financial plan for the new project. The new project chosen is to start a business of “Phepatio” furniture which is still unknown in the market. In the first part of the paper which is introduction, it discusses about the cost of the new project, the sources of financing and estimated target. In the second part the various financial statements are discussed such as cash flow projection, balance sheet, statement of profit and loss, the break even analysis and financial ratio analysis of the company. The paper also discusses about the payback period, net present value and internal rate of the return which indicates the profitability of the project. The risks associated with the business are also discussed in detail. In the last part of the paper, future operation of the project and their significance is also discussed in detail which analyzes on the basis of the cash flow projection, balance sheet and financial ratio analysis.

Introduction

The purpose of the project is to raise one million from investor in order to create a business of furniture while showcasing the financials and operation over the next five years period. The new furniture company is The Patio furniture. It will be starting is the next year along with various designs in the quality furniture. It is a big plan which will be for the five years period. The estimation of the profit of the business over the five years period is $ 1.5 million each. It is hoped that within a year the earning is 1.5 million within one year and it will be looking forward to manufacture various other types of the furniture. i.e. sofas, bed sheds dining table, cabinet and chairs. The expenditure on advertising is also very high and it is hoped that within the next three years the brand name will be established. The focus of advertising is mainly through radio and television. The main target area of the business is Newyork and for the customers it is promised to provide them full quality to the customers. Company Profile

Name

The Patio Furniture

Address

X.Y.Z

Website

www.phepatiofurniture.com

Form of Business

Partnership

Product Type

Wooden Furniture

Brand Name

The Patio Furniture

Physique

Quality, Protective and Attractive Brand Logo

Culture

Corporate Image



Logo

Mission Statement

To ensure quality, rich communication with the customers, availability and creating clear brand image.

The nature of Business

It will be a partnership business,

Keys to Success

The keys to success for the business are discussed below.

The location of the business is selected in the major city shopping mall, University College, hostel area and the residential areas.

There is need of finding the right channels for the quality conscious customers and also making sure that they will find us.

For the customer the assembling is easy for them therefore they can feel comfortable about the ...