The following sections present the financial analysis for Indonesia EEC.
7.1 Important Assumptions
The accompanying table lists Indonesia EEC's main assumptions for developing its financial projections. The most sensitive assumption is collection days. Indonesia EEC would like to improve collection days to take pressure off of its working capital.
7.2 Break-even Analysis
The following table and chart summarize the Break-even Analysis, including monthly units and sales break-even points.
7.3 Projected Profit and Loss
The detailed monthly pro-forma income statement for the first year is included in the appendix. The annual estimates are included below.
7.4 Projected Cash Flow
Cash flow projections are critical to the company's success. The monthly cash flow is shown in the chart, with one bar representing the cash flow per month and the other representing the monthly balance. The annual cash flow figures are included here in the following table. Detailed monthly numbers are included in the appendix.
7.5 Projected Balance Sheet
The following Balance Sheet table shows healthy growth of net worth and a strong financial position. The monthly estimates are included in the appendix.
7.6 Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 8711, Engineering Services, are shown for comparison.