BUSN 278 Week 5 Course Project Milestone 2 - Dura-Clear Windows

You invented “Dura-Clear windows” that never need washing! Nothing s琀椀cks to them – not pollu琀椀on, pollen, dirt, dust, bird droppings, 昀椀ngerprints, nothing. You’ve invested all your own savings, your parents’ savings, and some of your friends’ savings as well into the R&D, produc琀椀on, and start-up of your business. It’s been three years since you started selling your windows primarily to single-family homeowners, but now apartment building contractors across the na琀椀on have been reques琀椀ng your windows. Unfortunately, you’re already opera琀椀ng at full capacity. It's 琀椀me to make the switch from single-family homes to commercial buildings, but to do so requires a large infusion of funding for expansion. Ever the op琀椀mist, you applied to the TV show Shark Tank--where entrepreneurs compete for funding from angel investors ("sharks")--to see if a shark will invest in your company and serve as a mentor as well. To your surprise, you were accepted to the show! You've already prepared most of your marke琀椀ng and sales pitches, and now it's 琀椀me to put together your forecasted 昀椀nancial statements. You intend to show the sharks that backing your business would be a very pro昀椀table investment. You also need to determine how much funding to ask for in exchange for how much You must show ALL your work. Either your computa琀椀ons are in the cell behind your result, or you must place them out to the right on the Forecasted Financials tab. If you choose to show your work out to the Do not round computa琀椀ons un琀椀l you have found your 昀椀nal answer. Then, round your result to the It’s STILL January 1, 2023, and you’ll be going on Shark Tank in 2 weeks. You are unhappy with your previous Sales because using your current level of sales to residences was not a good predictor of your upcoming sales to commercial builders. You believe your sales will increase signi昀椀cantly and that each order will result in a higher pro昀椀t. You decide to change your forecas琀椀ng method to a combina琀椀on of Ra琀椀os, Percent-of-Sales, and Pro Forma Income Statement on the COMMON STOCK ($1 Par): Increase by the dollar value of shares issued to sharks (26,000 shares at $1 par). 18 19 CAPITAL PAID IN EXCESS OF PAR: The shark's full investment of $1M must be re昀氀ected on the Balance Sheet. The stock received by the shark, worth $26,000 (at Par value of $1 per share), is already re昀氀ected under Common Stock. The rest of the shark's investment value is added to this account. 20 RETAINED EARNINGS: This amount is whatever it takes to make the Balance Sheet balance! (HINT: Remember Total Liabili琀椀es + Stockholder's Equity is equal to Total Assets. Once Total L + SE is determined, Total SE can be solved. Finally, once Total SE is solved, Retained Earnings can be solved.) 21 DIVIDENDS: You do not pay dividends now and do not plan to while in a growth stage. Increase by the dollar value of shares issued to sharks (26,000 shares at $1 par). The shark's full investment