Title: Subeo Company Financial Statements: Dragons’ Den

1. Based on the proposed deal, at how much do the inventors value their company?

2. What are the company's projected unit sales, dollar sales, expenses, and earnings?

3. Record the effect of past and expected transactions on B/S, I/S and SCF. Specifically, prepare the company's B/S, I/S, and SCF right before and after the proposed deal. Prepare the company's B/S at the end of year 4. Could you justify alternative B/S? The Dragons argued about assets on the B/S. What (if any) assets will be there?

4. Suppose the company will generate $800,000 net profit in years 3,4,5, etc. Suppose the cost of equity capital is 19%. What is the value of the company?

5. Why do you think the dragons decided not to invest into the company?

Number of words: 856 (2.85 pages)