E-WORLD

Market Feasibility Report

E-World Web Design Company

This market feasibility report will present many aspects of system and business for web design
company E-World. Report will examine the market, operational, and financial feasibility as
well as internal and external analyzes.

0
Table of Contents
Executive Summary..................................................................................................................................... 2
Market Feasibility Idea................................................................................................................................. 3
Description................................................................................................................................................... 3
Uniqueness.................................................................................................................................................. 3
External Analysis: Applicable Strengths And Weaknesses..........................................................................4
PEST Analysis......................................................................................................................................... 4
SWOT Analysis........................................................................................................................................ 5
Strengths................................................................................................................................................ 5
Weaknesses............................................................................................................................................ 5
Opportunities.......................................................................................................................................... 6
Threats................................................................................................................................................... 6
External Analysis: Feasibility of the Idea..................................................................................................... 6
Industry Analysis...................................................................................................................................... 6
Five Porter Forces:............................................................................................................................... 6
Competitor Analysis................................................................................................................................. 8
Current Market for Services..................................................................................................................... 9
Customer Analysis................................................................................................................................... 9
External Analysis: Needed for Implementation.......................................................................................... 10
Managerial Structure:................................................................................................................................ 10
Financial Feasibility................................................................................................................................... 12
Break Even Analysis:............................................................................................................................. 12
Projected Sales:..................................................................................................................................... 13
Income Statement:................................................................................................................................. 13
Cash Flow Statement:............................................................................................................................ 15
Balance Sheet:....................................................................................................................................... 17
Possible funding options:....................................................................................................................... 18
References:............................................................................................................................................... 19

1
 Executive Summary

E-World is a small venture found in the commercial area of Klaipeda, Lithuania.

Company offers Internet and Web-based services to small businesses in the city of Klaipeda. The
services E-World offers consist of website development and design, hosting, maintenance and
marketing.
With an experience and knowledge in Web development and business-to-business sales,
E-World believes that it can provide a unique and better service to small businesses, in contrast
to the services being offered in the market.
The growth rate and demand for the web design, development and promotion for the
small businesses is high all the time, and according to the statistics does not show any evidence
of decline. Furthermore, it is an amazing fact that only a small number of web design companies
have taken an advantage of this opportunity, because there is no leading company in this big
market.
E-World believes that this phenomenon of unoccupied market happened due to the high
project cost. Our company created a web design system that reduces the cost of the projects.
Thus, the E-World will offer same high-end web design services at much lower costs.

This market feasibility report will present many aspects of system and business for web
design company E-World. Report will examine the market, operational, and financial feasibility
as well as internal and external analyzes.

2
 Market Feasibility Idea

My idea for market feasibility study is start up web page creation and hosting company
with future development opportunity to social network and mail domain creation and
maintenance.

Description

The main area of activity is the creation and promotion of Internet sites that can be used
as sales tool or tackle other tasks entrusted to it. Creation of web sites for commercial subjects
(creation of corporate websites) and promotion is one of the most competitive industries in the
field of Internet sites development. Therefore development team is required to have a developed
marketing skills and practical experience. We commit ourselves to the task of creating
technically ready to move in search engine site, with a competent design, which will increase the
recognition of the company and attract new customers. Therefore, we consider the development
and manufacturing site, as the first stage of its successful promotion. Quality of design can also
greatly enhance the popularity of the company. At the creation stage we offer our customers
three different design models from which he/she can choose one that he/she likes and it will be
developed further. Manufacturing Web sites in our studio involves the whole cycle of works
from domain registration to hosting a siteб as well as providing graphic design.

Uniqueness

Our motto is "The sites that work", and they work not only in a technical sense, but also
in economic terms. We will use an individual approach to each client, unlike the template, it will
give us solutions that will allow us to create sites that meet the requirements of both customers
and their potential clients. The "Completed Work" will allow customers to fully sense the style
and quality of developed sites. We believe that the factor determining the success of our
company will be the quality of work performed, evidenced by the feedback from our customers.
Create a site can many, but to make an effective tool in the market of Internet space can only
few.

3
 External Analysis: Applicable Strengths And Weaknesses

PEST Analysis
Political factors

Strengths Weaknesses
Lithuania became independent and began the Lithuania is a relatively young country, which
privatization process. After joining the EU, is still only 16 years old. Frequent changes of
began to promote competition, support for government (now 14th, although in theory
small and medium-sized businesses to reduce should be changed every four years), political
the influence of monopolies and oligopolies in instability affects not only government actions,
markets (in accordance with the laws of the but the country and the economic environment
Republic of Lithuania, the entity is considered complicates the establishment of a business
dominant if its market share is not less than 40 and its development. Seimas of the Lithuanian
percent). The State and the EU is making Government approved the draft laws. They
efforts in order to further reduce the number of often form their outright change in policy, laws
state-owned enterprises and monopolies, and and fees are regulated by their calculating
increased surveillance. Lithuanian law is procedures, company formation, accounting
enforced racial, cultural and religious equality, and control rules. These changes negatively
which encourages foreign professionals to impact the industry of web design and
work in web design industry in Lithuania. software, which is closely related.
Lithuania is a member of the EU, the World
Trade Organization and other smaller
regulating trade organizations. These unions
protect intellectual property, which is crucial to
web design industry.

Economic Factors

Strengths Weaknesses
Rapid GDP growth during 2006 has risen by 1. Lithuania has noticeably higher the inflation
6.9 percent. Although now it is forecasted that rate than in other EU countries.
GDP growth rate will slow down, but it should
remain high in the future (the Ministry of 2. Slow pace of the middle layer formation.
Finance forecasts - about 5 per cent. Per annum
2010). Average monthly gross wages and 3. Lack of state support for SME development.
salaries in the public sector increased by 19.1
percent and amounted to 1,802 LT and the 4. Lithuania does not meet the Maastricht
private sector grew 20.7 percent and amounted inflation criterion.
to 1,687 LT in year 2010 compared to 2009.

4
Social Factors

Strengths Weaknesses
In Klaipeda, as in the rest of Lithuania, there is In Klaipeda region has increased mortality
no religious fragmentation of the conflict. rates. 2009 natural population has decline, per
Klaipeda welcomes overseas products and 1,000 population was 6.3 in 2010 6.9
services. Klaipeda’s has available (Lithuania respectively 3.2 and 3.9). The
entertainment niche. The number of increased population migration was observed
unemployed people is uniformly decreasing. as a part of trend of the aging population. It
Out of these factors as a trend, the demand for affects the region and the economic situation
software and web design is increasing for past by increasing the number of pensioners. There
3 years. is a growing crime rate, especially among
young people. These factors can diminish the
number of clients, because the typical client is
20 to 40 years old.

Technology

Strengths Weaknesses
The State encourages people to purchase We have the technical base of companies do
computers (to be reimbursed 33 percent of the not provide an optimal work performance and
purchase value), supports the use of cyberspace attractive price / quality ratio.
(tax payment; order the performance of
banking operations, consultations on the
Internet, the achievement of all public
institutions). Increase of Internet users in the
group, there is still more of their goods and
services to companies that advertise their web
sites.

SWOT Analysis

Strengths Weaknesses

 Profound and broad understanding of  Limited number of served clients due to

industry. the one person venture (at least
 Superior experience and knowledge. originally)
 Flexibility of time and projects  The difficulty of building brand image.
 The capability of meeting the client's  The inability to meet rapidly growing
desires with a custom-built, malleable demand.
solution.

5
 Opportunities Threats

 Partaking in a rapidly growing market.  Future competition from authorized

 High variety of sales opportunities as web design firms.
technology advances.  Substantial leaps in computer
 Niche for selling templates technology makes computers a lot
easier to use, decreasing the demand for
developing web pages.
 A substantial increase in client's
computer proficiency leads to self-
made web sites.

External Analysis: Feasibility of the Idea

Industry Analysis

Internet industry is one of the most dynamic sectors of modern business. And, therefore,
is an area that provides opportunities for career growth and rising living standards for talented
professionals. At the moment we are seeing consistent development of the Lithuanian Internet
and projected growth of an Industry for this year is 20%1. A significant proportion of the
advertising market is moving from off-line to on-line, which entails increasing segment of the
Internet market. Web site from a simple web-based tool of communication turned into a
powerful industry that allows conducting business around the world.
Internet gives basic but sufficient advantage for a business:
 This is an opportunity to have business partners in every corner of the globe. 
 Promote products, regardless of distance and language skills.
 Conduct business remotely.
 Receive information quickly and on time.

Five Porter Forces:

According to online encyclopedia Investopedia.com the Five Porter Forces for Internet
Industry are:

1. Threat of New Entrants.  

You do not need to look far to realize that the cost of entry has fallen fast. It used
to costs an arm and a leg to launch a portal. The price of computer software and servers
and network bandwidth - of which portals consume a substantial amount - was enormous.
Yet costs are falling fast, as off-the shelf systems can now do what only customized

1
Kiran C., Web Development 2010

6
 technologies could do just a few of years ago and at a fraction of the price. At the same
time, brainy web developers, which were scarce at the height of the internet market
boom, are now much easier for new entrants to find and have become more affordable
keep. However, the apparent success of companies like Amazon, is not based on their
low entry cost into book retailing, but the very large sums of money spent on promotion
and growing their business. Entering a new market with a new brand still calls for deep
pockets.

2. Power of Suppliers.  

Portals generally have little power over suppliers. Basically, this is because they
don't actually own much. Most of the information and services they deliver to users is
supplied by outside companies – stock brokerages, new magazines and the like. Expect
content suppliers to enjoy growing power, especially considering portals will not able to
give content away forever. At the same time, internet portals rely on telecom network
operators for a steady diet of internet bandwidth. Granted, the telecom bandwidth
business is getting increasingly competitive and prices are falling fast. But once systems
are hooked up to telecom operator networks, it can be awfully difficult to switch to a new
supplier. 

3. Power of Buyers. 

Internet portals have two sets of buyers: visitors and advertisers. Both enjoy
considerable power over portals. Competing sites are just a click away; URL book-
marking makes the job of switching to other sites even easier for users. In fact, portals are
in constant danger of a mass desertion of users to other sites because in most cases,
customers make no financial commitment to the service. Portals' heavy reliance on
advertising dollars means that ad spenders can squeeze increasingly better terms for
banner space.

4. Availability of Substitutes. 
 
Internet portals must defend themselves from a raft of substitutes. The most
obvious are other websites that offer the same, or similar, information and services. Most
portals do little more than aggregate information and services that already exists on the
internet; original content suppliers represent a readily available set of substitutes. In most
cases, they are just a click away. There are more, less obvious substitutes as well, such as
television and magazines. Television's clear, moving images never suffer slow
connections; magazines can be rolled up and carried on the bus. Don't forget that the
good old telephone directories - both white and yellow pages - are still very convenient
business search tools.

5. Competitive Rivalry.  

7
 Feeble barriers to entry, a slew of substitutes and steadily increasingly buyer
power combine to create a disturbing impact: fierce competition and industry rivalry.
Portal competitors now must lure customers with lower prices and heavy investment in
more exciting content services. All of this tends to drive industry profitability
down, threatening the survival of players who can't compete.2

Competitor Analysis

Currently in Klaipeda there are only four web sites’ creating companies. They and their
areas of activities are presented in table below.

Competitor Name
3
WebMod company : Edit Studija4: MMarius Company5: Emotion
Company6:
Web site development services

Web site promotion Web development Web Design Web

development

Content Management Internet Advertising Web development E-commerce

System (CMS)

Web Design Website Support Internet Advertising Internet

Three-dimensional Marketing
graphics (3D)
Online Advertising Create corporate Photography
style
Additional Services:
 photo pages Other Web N/A N/A
ServicesFlash/animation

Solutions

 Translation pages
 name and online
hosting

Prices:
Lt Starting from 400lt* Starting from 490lt* Starting from 490 lt* Starting from
400 lt*
*with minimum tools and widgets included (basic level websites)
2
All information about Five Porter Forces was taken from the online encyclopedia www.investopedia.com
3
Information about the services was taken from
http://www.webmod.lt/lt/paslaugos_svetainiu_kurimas_web_dizainas
4
Information about the services was taken from http://www.e-dit.lt/#Paslaugos
5
Information about the services was taken from http://www.mmarius.lt/
6
Information about the services was taken from http://www.emotion.lt/paslaugos

8
 According to the services provided and the number of web sites created, companies
WebMod and Emotion are leading companies that provide good quality services for average
industry price. Their price and quality ratio is above others in Klaipeda.

Current Market for Services

According to research made by the committee of development of the Informational
society states that 35% of the businesses in Lithuania have their corporate website and 42.8% do
not have, but are willing to create one7. Following this demand, I will operate in a niche for
website creation and development services. These services include website creation and
promotion, both advertising the website and placing adverting on the website, providing Content
Management System, 3D object development, flash animation and flash site creation, taking
pictures for creation of the website, selling website templates (html, xhtml, php, MySQL and
etc.), creation of online galleries, creation of company’s logo, providing hosting and space on the
server and registering the domain (name of the website). Also, if customer has need in keeping
website maintenance, we will provide it.

Customer Analysis

The typical customer for the Web page creation company that creates the major segment
of operational income is business person, or commercial/marketing director with middle or high
income, age gap is not considered to be a criterion, who wants to create the website for their
company or any other project. Also there are customers of high variety of age and income, who
want to create website or any featured object (3D or flash) for their personal use.

7
Information was taken from http://www.ivpk.lt/main-stat.php?cat=62&n=21

9
 External Analysis: Needed for Implementation

At first, most of the work will fall on the individual entrepreneur, as well as the second
office employee. These people can perform any services offered by our company, other than
typing. Set of texts will be given to the contractor. To this reason, the firm can hire people of any
age and gender, education also has no value. The only requirement is a good typing speed,
responsible approach to work and the possibility of long-term access to a computer. In order to
ensure the normal operation of the company, entrepreneur must keep in mind workers in amount
several times more than needed. This approach is driven by the need of nonstop operation of the
company, as well as the fact that it does not require to pay wages for contract workers if they do
not work.
Furthermore, additional contract workers can be involved in performing other services
(for example: to repair, maintain, and modernize equipment; set up and create software
products). Unlike in the case of type writers, above mentioned services require qualified
professionals who unlikely will want to work on the contract for a fairly reasonable wage.
However, the problem is easily solved. You can hire senior students with appropriate specialties.
The main requirement for them is to have a good knowledge of the subject area and responsible
attitude toward work. It is driven by the desire of many students to find a small salary in his/her
spare time; we can safely assume that the problems with lack of staff at the E-World will not
have.
The wage that an individual entrepreneur earns is withdrawn from the profits of the firm.
Employees who are working under the contract for each job receive an amount determined by
the individual entrepreneurs and specified in the work contract. Also additional reward for
contractors for good employment rates and innovations aimed at increasing the firm's profits are
available. In the future (at the end of the year) the second office worker will be transferred to a
permanent position. Also on similar terms will be hired one or two technicians.
The E-World is not going to abandon the workers on contract, because they are more
beneficial to firm’s performance for the aperiodic jobs. The distribution of jobs and control over
the execution of all works will be carried out directly by an individual entrepreneur, who is the
sole owner of the company.
Talking about hardware, company will need 4 PC’s, one stable server and one mirroring
server, plus wide optical internet access point. For creation and maintenance, company will need
certain software packages.

Managerial Structure:

As a strategy for selecting components of information-analytical system, the E-World company

bases on the principle of "Best-of-breed" - to deploy best-in-class solution for each functional
area. Principles for selection of the following criteria:

 The system must be able to handle large volumes of data, up to the transactional data
 The system must provide hundreds of users, including users in the central office and
shops
 Ability to use sophisticated analytical techniques required for solving the problems of
retail business

10
To construct the data warehouse was selected database Sybase IQ, specifically designed for
analytic data warehousing; and as a means of data integration - Oracle Data Integrator (Oracle |
Sunopsis), representing a relatively new class of tools load data - ELT (Extract Load Transform).
For reporting and data analysis platform was chosen MicroStrategy, allowing solving such
important problems for the retail business, as ABC analysis, market basket analysis (market
basket analysis), etc.

Company E-World has a system of corporate reporting and data analysis, which has become a
source of complete, consistent and reliable information about the company, the opportunity for
regular monitoring of the company, as well as analysis of the effectiveness of the company from
different angles, levels, and non-financial indicators. In particular:

 Added the corporate reporting system, replacing several legacy systems accessible
through the Web shopping
 Increased speed of data acquisition employees. If earlier to obtain the necessary data
analyst had to wait hours, but now it is time seconds
 Users can create their own reports without IT services, based on a single directory
business terms
 You can easily handle more complex tasks

Business Intelligence solution allows employees to E-World to track key performance indicators
of the company, as well as solve complex analytical problems by identifying relationships
between its products, optimize product assortment, the analysis of marketing, sales on credit, on
discount cards, with additional services, with sets, etc.

11
 Financial Feasibility

Break Even Analysis:

Break Even Report
Units Fixed Costs Total Costs Total Revenue Profit
0 $700.00 $700.00 $0.00 ($700.00)
1 $700.00 $750.00 $350.00 ($400.00)
2 $700.00 $800.00 $700.00 ($100.00)
3 $700.00 $850.00 $1,050.00 $200.00
4 $700.00 $900.00 $1,400.00 $500.00
5 $700.00 $950.00 $1,750.00 $800.00
6 $700.00 $1,000.00 $2,100.00 $1,100.00
7 $700.00 $1,050.00 $2,450.00 $1,400.00
8 $700.00 $1,100.00 $2,800.00 $1,700.00
9 $700.00 $1,150.00 $3,150.00 $2,000.00

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Projected Sales:
Sales Forecast    
Sales Year 1 Year 2
Website Development 15.000 Lt 19.000 Lt
Result-based Marketing 19.000 Lt 20.000 Lt
Maintenance 14.000 Lt 16.000 Lt
Hosting 10.000 Lt 12.000 Lt
Total Sales 58.000 Lt 67.000 Lt

Direct Cost of Sales Year 1 Year 2

Website Development 0 Lt 0 Lt
Result-based Marketing 1.000 Lt 1.500 Lt
Maintenance 0 Lt 0 Lt
Hosting 3.000 Lt 5.000 Lt
Total Direct Cost of Sales 4.000 Lt 6.500 Lt

Income Statement:

Income Statement E-World

2010 2011
Revenue % of % of
Amount Amount
Sales Sales
Gross sales $58.000   $67.000  
Less sales returns and allowances 0   0  
Net sales $58.000 100% $67.000 100%
2010 2011
Cost of Sales % of % of
Amount Amount
Sales Sales
Beginning inventory $0 0% $0 0%
Plus goods purchased/manufactured 4.000 7% 6.500 10%
Total goods available $4.000 7% $6.500 10%
Less ending inventory 0 0% 0 0%
Total cost of goods sold $4.000 7% $6.500 10%
Gross profit (loss) $54.000 93% $60.500 90%
2010 2011
Operating Expenses
Amount % of Amount % of

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 Sales Sales
Selling
Salaries and wages $0 0% $0 0%
Commissions $0 0% $0 0%
Advertising $1.800 3% $2.500 4%
Depreciation $0 0% $2.000 3%
Total selling expenses $1.800 3% $4.500 7%
General/Administrative
Salaries and wages $30.000 52% $30.000 45%
Employee benefits $1.200 2% $1.200 2%
Payroll taxes $0 0% $0 0%
Insurance   0%   0%
Rent $0 0% $0 0%
Utilities $0 0% $0 0%
Depreciation and amortization $0 0% $2.000 3%
Office supplies $320 1% $320 0%
Travel and entertainment $0 0% $0 0%
Postage $100 0% $100 0%
Equipment maintenance and rental $0 0% $0 0%
Interest $0 0% $0 0%
Furniture and equipment $0 0% $0 0%
Total General/Administrative expenses $31.620 55% $33.620 50%
Total operating expenses $33.420 58% $38.120 57%
Net income before taxes $20.580 35% $22.380 33%
Taxes on income $4.528 8% $4.924 7%
Net income after taxes $16.052 28% $17.456 26%
Extraordinary gain or loss $0 0% $0 0%
Income tax on extraordinary gain $0 0% $0 0%
Net Income (Loss) $16.052 28% $17.456 26%

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Cash Flow Statement:
Cash Flow Forecast
                         
 
Month: Pre- 1 2 3 4 5 6 7 8 9 10 11 12 Totals
Start
24.200
Cash sales   1.400 Lt 1.500 Lt 1.500 Lt 1.500 Lt 1.800 Lt 1.500 Lt 1.500 Lt 2.000 Lt 3.000 Lt 2.500 Lt 2.000 Lt 4.000 Lt
Lt
Collections from credit
  200 Lt 200 Lt 200 Lt 200 Lt 200 Lt 200 Lt 200 Lt 200 Lt 200 Lt 200 Lt 200 Lt 200 Lt 2.400 Lt
sales
36.000
New equity inflow   3.000 Lt 3.000 Lt 3.000 Lt 3.000 Lt 3.000 Lt 3.000 Lt 3.000 Lt 3.000 Lt 3.000 Lt 3.000 Lt 3.000 Lt 3.000 Lt
Lt
40.000
Loans received 40.000 Lt              
Lt
Other                   0 Lt
Total Receipts 40.000 4.600 4.700 4.700 6.200 102.600
4.700 Lt 4.700 Lt 5.000 Lt 4.700 Lt 5.200 Lt 5.700 Lt 5.200 Lt 7.200 Lt
Lt Lt Lt Lt Lt Lt
Payments                            
Cash purchases   50 Lt 50 Lt 50 Lt 50 Lt 50 Lt   50 Lt   50 Lt   50 Lt 400 Lt
Payments to creditors                           0 Lt
30.000
Salaries and wages   2.500 Lt 2.500 Lt 2.500 Lt 2.500 Lt 2.500 Lt 2.500 Lt 2.500 Lt 2.500 Lt 2.500 Lt 2.500 Lt 2.500 Lt 2.500 Lt
Lt
Employee benefits   100 Lt 100 Lt 100 Lt 100 Lt 100 Lt 100 Lt 100 Lt 100 Lt 100 Lt 100 Lt 100 Lt 100 Lt 1.200 Lt
Payroll taxes                           0 Lt
Rent 5.000 Lt                       5.000 Lt
Utilities 3.000 Lt                         3.000 Lt
Repairs and
  100 Lt   100 Lt   100 Lt   100 Lt   100 Lt   100 Lt   600 Lt
maintenance
Insurance 1.214 Lt                         1.214 Lt
Travel                         500 Lt 500 Lt
Telephone   40 Lt 40 Lt 40 Lt 40 Lt 40 Lt 40 Lt 40 Lt 40 Lt 40 Lt 40 Lt 40 Lt 50 Lt 490 Lt
Postage   10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 120 Lt
Office supplies 200 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 320 Lt
Advertising   300 Lt   300 Lt   300 Lt   300 Lt   300 Lt   300 Lt   1.800 Lt
Marketing/promotion  15000 lt   40 Lt   40 Lt   40 Lt   40 Lt   40 Lt   40 Lt 240 Lt
Professional fees                           0 Lt
Training and
3.000 Lt 300 Lt             400 Lt         3.700 Lt
development
Bank charges 300 Lt 30 Lt 30 Lt 30 Lt 30 Lt 30 Lt 30 Lt 30 Lt 30 Lt 30 Lt 30 Lt 30 Lt 30 Lt 660 Lt
Miscellaneous                           0 Lt
Owner's drawings                           0 Lt

15
 12.000
Loan repayments   1.000 Lt 1.000 Lt 1.000 Lt 1.000 Lt 1.000 Lt 1.000 Lt 1.000 Lt 1.000 Lt 1.000 Lt 1.000 Lt 1.000 Lt 1.000 Lt
Lt
Tax payments                   0 Lt
Capital purchases                           0 Lt
Other                   0 Lt
Total Payments 24.714 4.440 3.780 4.090 4.090 61.244
3.730 Lt 4.140 Lt 4.140 Lt 3.780 Lt 4.180 Lt 3.780 Lt 4.090 Lt 4.290 Lt
Lt Lt Lt Lt Lt Lt
Cashflow 12.286 2.110 41.356
160 Lt 970 Lt 560 Lt 920 Lt 860 Lt 920 Lt 610 Lt 1.020 Lt 1.920 Lt 1.110 Lt 2.910 Lt
Surplus/Deficit (-) Lt Lt Lt
Opening Cash 27.286 27.446 28.416 28.976 29.896 30.756 31.676 32.286 33.306 35.416 37.336 38.446
0 Lt  
Balance Lt Lt Lt Lt Lt Lt Lt Lt Lt Lt Lt Lt
Closing Cash Balance 27.286 27.446 28.416 28.976 29.896 30.756 31.676 32.286 33.306 35.416 37.336 38.446 41.356
 
Lt Lt Lt Lt Lt Lt Lt Lt Lt Lt Lt Lt Lt

16
Balance Sheet:
E-World
Balance Sheet
[December 30, 2010]
Assets
Current Assets:            
Cash 41356
Accounts Receivable 2400
Less: Reserve for Bad Debts 0 2400
Merchandise Inventory 614
Prepaid Expenses 12714
Notes Receivable 0
Total Current Assets       57.084

Fixed Assets:          
Vehicles 0
Less: Accumulated Depreciation 0 0

Furniture and Fixtures 3500

Less: Accumulated Depreciation 0 3500

Equipment 15000
Less: Accumulated Depreciation 0 15000

Buildings 0
Less: Accumulated Depreciation 0 0

Land 0
Total Fixed Assets         18.500

Other Assets:        
Goodwill 0
Total Other Assets       0

Total Assets       75.584 Lt

Liabilities and Capital
Current Liabilities:
Accounts Payable 0
Sales Taxes Payable 0
Payroll Taxes Payable 0
Accrued Wages Payable 0
Unearned Revenues 0

17
 Short-Term Notes Payable 0
Short-Term Bank Loan Payable 0
Total Current Liabilities     $0

Long-Term Liabilities:        
Long-Term Notes Payable 40.000
Mortgage Payable 0
Total Long-Term Liabilities       40.000

Total Liabilities           40.000

Capital:            
Owner's Equity 20.000
Net Profit 15.584
Total Capital           35.584

Total Liabilities and Capital       75.584 Lt

Possible funding options:

E-World Company’s funding will consist of owner’s investment 40,000.00lt and bank loan in
amount of 40,000lt. Owner’s investment will come from savings account. Bank loan will be
taken with interest of 7-9%.

18
 References:

"The Industry Handbook: The Internet Industry." Investopedia.com - Your Source For Investing

Education. N.p., n.d. Web. 30 Oct. 2010.

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