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The tax rate is 25.42 percent for the first and third year and 25.00 percent for the second year.
In the initial year the company is going to project conservatively in order to have enough cash in hand. Advertising costs will be reduced in the initial years because the company had already launched a manual or book and decided to distribute them through the agents to various construction companies.
Now, let us come to the projected cash flow statement and the balance sheet. If we look at the projected cash flow, we come to know that the cash can be received by the company from various sources such as by borrowing money, sales of the current assets or new investment opportunities received. The expenditures may include the payment of tax, purchase of assets, payment of shareholders dividends if any or repaying loans to creditors. If we look at the balance sheet, we come to know that there will be a sufficient growth of net worth in consecutive years, which is a healthy sign for the company.
Now, let us come to the conclusion. Construction Broker Inc. would be a consulting firm which will act as a bridge between the construction company and the customers, looking for repair or maintenance services. The company would receive commission from the Construction Company and service charges from the customers. A proper financial plan for the company has been developed in which the steps such as order procurement, forecasting the budget plan, receiving the order from the client and delivering the project is included. I believe that if the management of the company plans its actions properly, the company is going to reach the heights of success within a very short span of
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