Do Andrew’s sales revenue predictions on the Pro Forma income statement seem realistic (also consider Exhibit 1)? Do you think that he did a good job estimating numbers for his income statement and cash flow sheets? Please explain your answers. What are some critical assumptions that he made?

        The assumption made by Andrew are not realistic because the product can be consider a luxury product and it is not a necessity. Moreover the sales of the product will decline in the long run or will experience fluctuation. In second year the sales grow by three Percent but can be seen that next year the sales experience a decline of 3%.

How much  money  has  been  put  into  this  venture  so  far,  and  how  much  more  do  you  think  will  be  needed  to  make  this  a  successful  product?  Do  you  see  any  problems  with  how  Andrew  raised  his  funds?  What  has  Andrew  accomplished  with  the  money  that  has  been  invested  into  the  venture  so  far?

    $65000 were invested into the venture and Andrew is considering to invest more money into the venture.

What  grade  (i.e.,  A  –  F)  would  you  give  Andrew  for  his  progress  to  date?  At  this  point  and  time  in  late  1996,  would  you  invest  in  this  company?

        I would give Andrew grade B because of its entrepreneurship skills and unique ideas. His ventures have made progress therefore it is important to appreciate his efforts.