Financial Management Group Project

Abstract

In this scenario, there is going to be a Microsoft Excel sheet showing for Cyrus Browns Manufacturing budget for his cash flow from March to November. However, it will also describe as to whether or not he needs to have an outside financing, line credit, and if there is any kind of concerns that Cyrus Brown would have in regards to his company.

Will the company need any outside financing?

It is important to test the feasibility of an investment by considering the expenses and revenue characteristics to the business. Different investors utilize estimations by the way of identifying potential financial implications of their businesses. Cyrus Brown Manufacturing (CBM) seeks to identify the possibility of the need to source for external funds at some point in time during the period of analysis. Based on the assumptions, the entrepreneur intends to use a budget to identify the company’s balance for every month in order to identify the points at which they may be needed for external finding.

Table 1 below presents a breakdown of the projected revenues and expenses for each month. From these revenues, it is apparent that CBM needs to source for external funds-specifically at the early stages of the business. CBM will need to source for $475250 externally to support the business from March to June. However, the generated revenue will be able to sustain the business from July onwards.

Month Order Cost Income Costs Admin Salaries Lease Payments Depreciation Charges Plant Income Tax Payment Miscellaneous Total expenses Balance Outside Funding

Mar 100000 25000 35000 15000 15000 10000 75000 -50000 50000

Apr 275000 123750 187500 35000 15000 15000 10000 262500 -138750 138750

May 320000 251250 206250 35000 15000 15000 10000 281250 -30000 30000

Jun 450000 343500 375000 35000 15000 15000 95000 55000 10000 600000 -256500 256500

Jul 700000 486500 337500 35000 15000 15000 10000 412500 74000

Aug 700000 650000 431250 35000 15000 15000...