Develop a financial plan for either an actual small business or a hypothetical one. This should be
Question:
Develop a financial plan for either an actual small business or a hypothetical one. This should be the same company you introduced in your Week 3 Executive Summary Assignment response.
For this portion of the curriculum, emphasis will be placed on the financial aspects and funding requests within the plan. It is not necessary to include a copy of your Week 3 Executive Summary in this submission.
While each plan will vary depending on factors such as industry, location, and developmental stage, all plans should encompass the following components:
Balance sheet (historical and one-year pro forma projections)
Income statement (historical and one-year pro forma projections)
Ratio analysis (including trend analysis based on at least one Profitability, Liquidity, Efficiency, and Leverage ratio for historical and pro forma financial statements)
Pro forma monthly cash flow forecasts (projecting monthly activities for one year ahead)
- Note: When presenting income, balance sheet, and cash flow forecasts, include detailed assumptions for each line item (e.g., rent, utilities, insurance, etc.).
Discussion on the choice between cash or accrual basis accounting
Discussion on the types of accounting and financial software to be utilized
Discussion on all funding sources and amounts to be raised, accompanied by an activity schedule, achievement dates, etc.
Quantitative Methods for Business
ISBN: 978-0840062345
12th edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam