The following sections will outline important financial information.
7.1 Important Assumptions
The following table details important financial assumptions.
7.2 Break-even Analysis
The Break-even Analysis indicates that approximately $13,000 is needed in monthly revenue to reach the break-even point.
7.3 Projected Profit and Loss
The following table will indicate projected profit and loss. We estimate purchase of new shoe display inventory, primarily for the seasonal changes in styles. Because these are displays, we are tracking them as expenses. It is estimated that new styles (especially around the change in seasons) will require regular purchase of shoe displays as part of the normal course of business.
7.4 Projected Cash Flow
The following chart and table will indicate projected cash flow. We anticipate borrowing $5,000 in June to cover shoe display inventory purchases and other expenses.
7.5 Projected Balance Sheet
The following table will indicate the projected balance sheet.
7.6 Business Ratios
The following table compares our ratios to Standard Industry Code #3144 (Women's footwear, except athletic).