Location: Westport, CT
The attached spreadsheet contains a forecast for the income statement, balance sheet, and free cash flows for CakeSuite bakery in Westport, Connecticut. The bakery is currently listed for sale with an asking price of $77,000. The model uses assumptions gathered from researching average statistics for bakeries and considering the local area as well.
In this forecast, CakeSuite has an internal rate of return of 8.35% and our weighted average cost of capital is 8.36%. Therefore, CakeSuite has the ability to pay their debtors and equity holders every year with 72% debt and 28% equity. We believe CakeSuite is profitable.
Using this spreadsheet and changing some numbers according to your own research can be helpful to determine if this company will be a profitable investment.