DRAFT: Financial Statement Assignment

Assignment:

1. In a single Excel Workbook, create a start-up budget, pro-forma income and expense statement, and a pro-forma cash flow statement for your new business venture.
   1. Start-Up Budget - how much money will it take to open your doors on day 1, as well as a budget projection for the first three months of operation when you may not have enough revenue to support yourself
   2. Income and Expense Statement presented monthly for the first year, then annually for the next three years of operation
   3. Cash Flow Statement presented quarterly for the first year, then annually for the next three years of operation
2. In a single Word Document,
   1. for EACH statement create at least two paragraphs that contains
   1. a list of key assumptions that support the numbers in the statements (explain how you derived your numbers)

and

ii. a summary of the statements that highlights key points of interest to prospective investors (e.g., when the business becomes profitable, how much invested capital it requires, where the capital will come from).

b. Then, include a table of key financial ratios with a detailed summary (highlight/explanation) of these ratios.