Financial Analysis for Cockatoo Real Estate Pty Ltd

FINANCIAL ANALYSIS
Profitability and liquidity analysis
Financial analysis
PC-AS0197

1
Table of Contents
Part-1................................................................................................................................................2
Part-2................................................................................................................................................3
Introduction......................................................................................................................................3
Review the financial viability of the project undertaken by Cockatoo Real Estate Private Limited
.........................................................................................................................................................3
Financial projection for the cash flow of the Cockatoo Real Estate Pty Ltd...................................6
Sensitivity analysis of the cash flow projection of Cockatoo Real Estate Pty Ltd..........................7
Competitor analysis.......................................................................................................................10
Competitors analysis......................................................................................................................10
SWOT analysis of the proposal.....................................................................................................10
Marketing plan to acquire a pipeline of properties to be marketed...............................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

2
Part-1
To
The Chairman of Cockatoo Real Estate Pty Ltd
This business mail has been framed to the Chairman of Cockatoo Real Estate Pty Ltd for
the consultancy for viability of opening branches in Sydney. After analysing the profitability,
break-even point, financial viability return on capital employed available on the invested capital,
it is found that company should accept the project of opening up its 10 pilot branch Camper
down in Sydney as it will give good amount of return on capital employed to investors.
However, in order to assess the viability of the project, we need to take the access to an empty
retail premises for a pilot investigation. The main reason for getting access to the empty retail
premises for the pilot investigation is based on the mock up a simulation branch and analysing
the available business factors which may positively and negatively impact the project. It will also
help in analysing whether the undertaken office equipment and infrastructure would be
complying with the international WHS legislation laws and regulation. Action required by the
board of directors- all the directors needs to pass special resolution in the board meeting for
giving their consents on the particular events and matter. There will be other points as the
research would be made on the internal and external factors for analysing the viability for the
project proposal. The estimated time for the report to be submitted would be 6 months which will
required to analysis the all the feasible factors associated with the project.
Thanks for considering the mail and looking forward to the positive reply.

3
Letter of transmittal
Dear
The Chairman of Cockatoo Real Estate Pty Ltd
I submit herewith a proposal in support of the research program entitled to opening up its 10
pilot branch Camper down in Sydney. This project is beneficial one and in orders to analysis the
feasible factors; we need access to the empty retail premises for the pilot investigation.
I am requesting to allow us to get the access to the empty retail premises for the pilot
investigation.

4
Part-2
Executive summary
This report will analysis the review the financial viability and possible benefits which
company would have after opening up other inner suburban branches in Sydney over the next 12
months. It will be used to identify the feasible factors which might impact the acceptance of the
project.
Introduction
This report is accompanied with potential issue, challenges, financial viability and related
financial returns and opportunities for opening up of pilot branch in Camper down and if
successful will open 10 other inner suburban branches in Sydney over the next 12 months. The
acceptance of this project would be based on the break-even point, financial viability return on
capital employed available on the invested capital.
Review the financial viability of the project undertaken by Cockatoo Real Estate Private
Limited
The financial projection and estimation of the profit and loss associated with the particular
project reflects how company could be benefited after undertaking the proposed project. The
estimated listing sales per year have been decided on the basis competitors offering and market
external factors. The estimated fees from sales of apartment would be $ 15000000 which may
also increase with the increase in its services (Hartmann, and Driessen. (2017, 259-470).
The estimated projection for the profit and loss of Cockatoo Real Estate Private Limited has been
computed as below (Lin,et al. (2015, 459-470)
CRE Limited
Budgeted
Profit and
Forecasted Income statement

5
Loss Account
for Camper
down branch
Year ended
31 December
2019 2020 2021 2022 2023 2024
$ $
INCOME
Fees from Sale of Apartments
1500
000
1650
000
18150
00
18150
00
19965
00
19965
00
Commissions from Financial
services sales (assume 1/3 on sales
x 1000)
2500
0
TOTAL
INCOME
152500
0
1677
500
1845
250
2029
775
22327
53
24560
28
27016
31
29717
94
EXPENDITU
RE
Fixed Costs