Case: P’kolino Financials
1.How do the common-sized income sheet ratios compare to industry standards? Can you explain the variances in a way the makes the projections seem sound?
2.How do the revenues per employee compare to industry standards? Again, can you explain the variances?
3.Do the financial projections accurately capture all the expenses that are implied in the written plan (refer back to the previous case)?
4.Is the proposed financing sufficient to cover the company’s cash flow needs? What happens if sales are not as high or quick to materialize as expected?