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Csavar Kft International Business Financing -2021 Single assignement Case study: Star Sausage LLC Deadline: XXXXXXXXXXe-mail: XXXXXXXXXX Total score: 45 A food trader company has a following business...

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Csavar Kft
International Business Financing -2021
Single assignement
Case study: Star Sausage LLC
Deadline: XXXXXXXXXXe-mail: XXXXXXXXXX
Total score: 45
A food trader company has a following business model (Case A):
· A company starts its operation in XXXXXXXXXX.
· Monthly food sales are HUF 15 Million + 27%VAT. Date of delivery and billing is at the end of the appropriate month. The buyer pays 3months after delivery.
· cost of goods sold (COGS) is 66% of sales income. It is charged with 27% VAT, and has to be paid immediately e.g at the and of the appropriate month.
· Personal expenses are monthly XXXXXXXXXXHUF, they have to be paid at the end of the appropriate month.
· Other operating expenses linked to suppliers are 12% of sales income. They are charged with 27% VAT, and have to be paid immediately. e.g at the of the appropriate month.
· inflation is 2%/year, it influence as well the sales income as every operating expense (COGS, personal expenses, other operating expenses)
· Corporation tax 9%, it has to be paid until the 31-th of december.
Questions (1-4)
· At a begining of the year how much money should be at least on the bank account in order to preserve solvency?
· Prepare direct cash-flow forecast on a monthly basis for the next 24 months. The amount of opening bank account must be your proposal.
· Prepare P/L statement for the year 2021 and 2022.
· Prepare a balance sheet for the following data: XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXXThe amount of opening bank account is equal to the registered capital.
Supplier loan case (CASE B)
Let’s suppose that a food trader company receives supplier loan in case of COGS. COGS has to be paid 3 months after delivery, their price will become 70% of net sales income.
Questions (5-8)
· At a begining of the year how much money should be at least on the bank account in order to preserve solvency?
· Prepare direct cash-flow forecast on a monthly basis for the next 24 months. The amount of opening bank account must be your proposal.
· Prepare P/L statement for the year 2021 and 2022.
· Prepare a balance sheet for the following data: XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXXThe amount of opening bank account is equal to reegistered capital.
Factoring case (CASE C)
· Let’s suppose that the food trader company having a business model of CASE A, is able to sell his buyer receivables to a factoring company with following conditions:
· Factoring fee: 1,5% of sold buyer receivable;
· Factoring interest: 9%/year on the amount to be financed;
· First installment: 80% of sold buyer receivable;
Questions (9-12)
· In that case, at a begining of the year, how much money should be at least on the bank account in order to preserve solvency?
· Prepare direct cash-flow forecast on a monthly basis for the next 24 months. The amount of opening bank account must be your proposal.
· Prepare P/L statement for the year 2021 and 2022.
· Prepare a balance sheet for the following data: XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXXThe amount of opening bank account is equal to registered capital.
loan overdraft case (CASE D)
· Let’s suppose that the food trader company has a business model of CASE A.
· The company has at the begining of his operation 10 million HUF on his bank account. The company got this cash amount from his owners as a registered capital.
· The company is able to receive loan overdraft with the following conditions:
· monthly interest rate 0,5%;
· limit: HUF 40 million – means that the balance of cu
ent account can go down to – 40 million HUF.
Questions (13-15)
· Prepare direct cash-flow forecast on a monthly basis for the next 24 months. The amount of opening bank account is HUF 10 Million.
· Prepare P/L statement for the year 2021 and 2022.
· Prepare a balance sheet for the following data: XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXXThe amount of opening bank account is equal to reegistered capital.
1
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int-bu-fin-2021-h1-single-assignement-1-2-pp04pbfc-z3jbgxm5.doc
Answered 5 days After Oct 18, 2021

Solution

Neha answered on Oct 23 2021
121 Votes
Q1
    Qestions 1 - 4
    Solvency can be checked usin cu
ent ratio. If acompany has cu
ent assets double its cu
ent liabilities its good to go.
    15 million
Q2
        2021                                                2022
        Jan    Feb    March    April    May     June    July    Aug    Sep    Oct    Nov    Dec    Jan    Feb    March    April    May     June    July    Aug    Sep    Oct    Nov    Dec
    Sales    $ 15,000,000.00    $ 15,000,000.00    $ 15,000,000.00    $ 15,000,000.00    $ 15,000,000.00    $ 15,000,000.00    $ 15,000,000.00    $ 15,000,000.00    $ 15,000,000.00    $ 15,000,000.00    $ 15,000,000.00    $ 15,000,000.00    $ 15,300,000.00    $ 15,300,000.00    $ 15,300,000.00    $ 15,300,000.00    $ 15,300,000.00    $ 15,300,000.00    $ 15,300,000.00    $ 15,300,000.00    $ 15,300,000.00    $ 15,300,000.00    $ 15,300,000.00    $ 15,300,000.00
    VAT    $ 4,050,000.00    $ 4,050,000.00    $ 4,050,000.00    $ 4,050,000.00    $ 4,050,000.00    $ 4,050,000.00    $ 4,050,000.00    $ 4,050,000.00    $ 4,050,000.00    $ 4,050,000.00    $ 4,050,000.00    $ 4,050,000.00    $ 4,131,000.00    $ 4,131,000.00    $ 4,131,000.00    $ 4,131,000.00    $ 4,131,000.00    $ 4,131,000.00    $ 4,131,000.00    $ 4,131,000.00    $ 4,131,000.00    $ 4,131,000.00    $ 4,131,000.00    $ 4,131,000.00
    Total    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00
    Cash inflow    -    -    -    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00
    COGS    $ 9,900,000.00    $ 9,900,000.00    $ 9,900,000.00    $ 9,900,000.00    $ 9,900,000.00    $ 9,900,000.00    $ 9,900,000.00    $ 9,900,000.00    $ 9,900,000.00    $ 9,900,000.00    $ 9,900,000.00    $ 9,900,000.00    $ 10,098,000.00    $ 10,098,000.00    $ 10,098,000.00    $ 10,098,000.00    $ 10,098,000.00    $ 10,098,000.00    $ 10,098,000.00    $ 10,098,000.00    $ 10,098,000.00    $ 10,098,000.00    $ 10,098,000.00    $ 10,098,000.00
    VAT    $ 2,673,000.00    $ 2,673,000.00    $ 2,673,000.00    $ 2,673,000.00    $ 2,673,000.00    $ 2,673,000.00    $ 2,673,000.00    $ 2,673,000.00    $ 2,673,000.00    $ 2,673,000.00    $ 2,673,000.00    $ 2,673,000.00    $ 2,726,460.00    $ 2,726,460.00    $ 2,726,460.00    $ 2,726,460.00    $ 2,726,460.00    $ 2,726,460.00    $ 2,726,460.00    $ 2,726,460.00    $ 2,726,460.00    $ 2,726,460.00    $ 2,726,460.00    $ 2,726,460.00
    Total    $ 12,573,000.00    $ 12,573,000.00    $ 12,573,000.00    $ 12,573,000.00    $ 12,573,000.00    $ 12,573,000.00    $ 12,573,000.00    $ 12,573,000.00    $ 12,573,000.00    $ 12,573,000.00    $ 12,573,000.00    $ 12,573,000.00    $ 12,824,460.00    $ 12,824,460.00    $ 12,824,460.00    $ 12,824,460.00    $ 12,824,460.00    $ 12,824,460.00    $ 12,824,460.00    $ 12,824,460.00    $ 12,824,460.00    $ 12,824,460.00    $ 12,824,460.00    $ 12,824,460.00
    Cash outflow    $ 12,573,000.00    $ 12,573,000.00    $ 12,573,000.00    $ 12,573,000.00    $ 12,573,000.00    $ 12,573,000.00    $ 12,573,000.00    $ 12,573,000.00    $ 12,573,000.00    $ 12,573,000.00    $ 12,573,000.00    $ 12,573,000.00    $ 12,824,460.00    $ 12,824,460.00    $ 12,824,460.00    $ 12,824,460.00    $ 12,824,460.00    $ 12,824,460.00    $ 12,824,460.00    $ 12,824,460.00    $ 12,824,460.00    $ 12,824,460.00    $ 12,824,460.00    $ 12,824,460.00
    Personal Exp    $ 1,000,000.00    $ 1,000,000.00    $ 1,000,000.00    $ 1,000,000.00    $ 1,000,000.00    $ 1,000,000.00    $ 1,000,000.00    $ 1,000,000.00    $ 1,000,000.00    $ 1,000,000.00    $ 1,000,000.00    $ 1,000,000.00    $ 1,020,000.00    $ 1,020,000.00    $ 1,020,000.00    $ 1,020,000.00    $ 1,020,000.00    $ 1,020,000.00    $ 1,020,000.00    $ 1,020,000.00    $ 1,020,000.00    $ 1,020,000.00    $ 1,020,000.00    $ 1,020,000.00
    Cash outflow    $ 1,000,000.00    $ 1,000,000.00    $ 1,000,000.00    $ 1,000,000.00    $ 1,000,000.00    $ 1,000,000.00    $ 1,000,000.00    $ 1,000,000.00    $ 1,000,000.00    $ 1,000,000.00    $ 1,000,000.00    $ 1,000,000.00    $ 1,020,000.00    $ 1,020,000.00    $ 1,020,000.00    $ 1,020,000.00    $ 1,020,000.00    $ 1,020,000.00    $ 1,020,000.00    $ 1,020,000.00    $ 1,020,000.00    $ 1,020,000.00    $ 1,020,000.00    $ 1,020,000.00
    Supplier charges    $ 2,286,000.00    $ 2,286,000.00    $ 2,286,000.00    $ 2,286,000.00    $ 2,286,000.00    $ 2,286,000.00    $ 2,286,000.00    $ 2,286,000.00    $ 2,286,000.00    $ 2,286,000.00    $ 2,286,000.00    $ 2,286,000.00    $ 2,331,720.00    $ 2,331,720.00    $ 2,331,720.00    $ 2,331,720.00    $ 2,331,720.00    $ 2,331,720.00    $ 2,331,720.00    $ 2,331,720.00    $ 2,331,720.00    $ 2,331,720.00    $ 2,331,720.00    $ 2,331,720.00
    Cash outflow    $ 2,286,000.00    $ 2,286,000.00    $ 2,286,000.00    $ 2,286,000.00    $ 2,286,000.00    $ 2,286,000.00    $ 2,286,000.00    $ 2,286,000.00    $ 2,286,000.00    $ 2,286,000.00    $ 2,286,000.00    $ 2,286,000.00    $ 2,331,720.00    $ 2,331,720.00    $ 2,331,720.00    $ 2,331,720.00    $ 2,331,720.00    $ 2,331,720.00    $ 2,331,720.00    $ 2,331,720.00    $ 2,331,720.00    $ 2,331,720.00    $ 2,331,720.00    $ 2,331,720.00
    Net cash flow    $ (15,859,000.00)    $ (15,859,000.00)    $ (15,859,000.00)    $ 3,191,000.00    $ 3,191,000.00    $ 3,191,000.00    $ 3,191,000.00    $ 3,191,000.00    $ 3,191,000.00    $ 3,191,000.00    $ 3,191,000.00    $ 3,191,000.00    $ 2,873,820.00    $ 2,873,820.00    $ 2,873,820.00    $ 3,254,820.00    $ 3,254,820.00    $ 3,254,820.00    $ 3,254,820.00    $ 3,254,820.00    $ 3,254,820.00    $ 3,254,820.00    $ 3,254,820.00    $ 3,254,820.00
    Corp tax    0    0    0    $ 287,190.00    $ 287,190.00    $ 287,190.00    $ 287,190.00    $ 287,190.00    $ 287,190.00    $ 287,190.00    $ 287,190.00    $ 287,190.00    $ 258,643.80    $ 258,643.80    $ 258,643.80    $ 292,933.80    $ 292,933.80    $ 292,933.80    $ 292,933.80    $ 292,933.80    $ 292,933.80    $ 292,933.80    $ 292,933.80    $ 292,933.80
    Balance    $ (15,859,000.00)    $ (15,859,000.00)    $ (15,859,000.00)    $ 2,903,810.00    $ 2,903,810.00    $ 2,903,810.00    $ 2,903,810.00    $ 2,903,810.00    $ 2,903,810.00    $ 2,903,810.00    $ 2,903,810.00    $ 2,903,810.00    $ 2,615,176.20    $ 2,615,176.20    $ 2,615,176.20    $ 2,961,886.20    $ 2,961,886.20    $ 2,961,886.20    $ 2,961,886.20    $ 2,961,886.20    $ 2,961,886.20    $ 2,961,886.20    $ 2,961,886.20    $ 2,961,886.20
Q3
    Profit and loss for 2021 and 2022
    Revenue    $ 228,600,000.00    $ 233,172,000.00
    Expenses:-
    COGS    $ 150,876,000.00    $ 153,893,520.00
    Personal Exp    $ 12,000,000.00    $ 12,240,000.00
    Supplier charges    $ 27,432,000.00    $ 27,980,640.00
    Corp tax    $ 2,584,710.00    $ 3,412,335.60
    Pofit for the year    $ 35,707,290.00    $ 35,645,504.40
Q4
    Balance sheet 1.1.21
    Capital        Accounts receivable    $ 15,000,000.00
    Balnce sheet 31.12.21
            Accounts receivable    $ 57,150,000.00
    Balance sheet 31.12.22
            Accounts receivable    $ 58,293,000.00
Q5
    Solvency can be checked usin cu
ent ratio. If acompany has cu
ent assets double its cu
ent liabilities its good to go.
Q6
        2021                                                2022
        Jan    Feb    March    April    May     June    July    Aug    Sep    Oct    Nov    Dec    Jan    Feb    March    April    May     June    July    Aug    Sep    Oct    Nov    Dec
    Sales    $ 15,000,000.00    $ 15,000,000.00    $ 15,000,000.00    $ 15,000,000.00    $ 15,000,000.00    $ 15,000,000.00    $ 15,000,000.00    $ 15,000,000.00    $ 15,000,000.00    $ 15,000,000.00    $ 15,000,000.00    $ 15,000,000.00    $ 15,300,000.00    $ 15,300,000.00    $ 15,300,000.00    $ 15,300,000.00    $ 15,300,000.00    $ 15,300,000.00    $ 15,300,000.00    $ 15,300,000.00    $ 15,300,000.00    $ 15,300,000.00    $ 15,300,000.00    $ 15,300,000.00
    VAT    $ 4,050,000.00    $ 4,050,000.00    $ 4,050,000.00    $ 4,050,000.00    $ 4,050,000.00    $ 4,050,000.00    $ 4,050,000.00    $ 4,050,000.00    $ 4,050,000.00    $ 4,050,000.00    $ 4,050,000.00    $ 4,050,000.00    $ 4,131,000.00    $ 4,131,000.00    $ 4,131,000.00    $ 4,131,000.00    $ 4,131,000.00    $ 4,131,000.00    $ 4,131,000.00    $ 4,131,000.00    $ 4,131,000.00    $ 4,131,000.00    $ 4,131,000.00    $ 4,131,000.00
    Total    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00    $ 19,431,000.00
    Cash inflow    -    -    -    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ 19,050,000.00    $ ...
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