My idea is opening a gym, so i need answer related to that.

Objectives

• Identify the cash and resource needs of the new business.
• Prepare cash flow, income, and balance sheet.

Description

Building on your organization design, you will begin to put numbers to the activities you have planned for your new business. In this assignment, you will create a financial plan based on your best knowledge of how your enterprise will start and operate for its initial period, usually a year. It is recognized that this plan is based on your best guesses of capital needs, costs, and expenses. More importantly, this plan will help you determine how much money you will need to launch your business and operate it.

Instructions

1. Review the discussion of pro forma financial statements in Chapter 8 of the text.
   • Chapter 8 discusses the process of financial management and its importance for forecasting, which is critical for the entrepreneur contemplating a start-up. The ability to demonstrate a firm grasp of the finances underlying a new endeavour shows prospective investors that the entrepreneur understands his or her financial needs and holds a realistic view of revenues. For the entrepreneur, the pro forma financial statements provide a path to follow in preparing the start-up and operating during its initial period.
2. Prepare the pro forma financial statements.
   • Based on your best understanding at this point, you will prepare a consolidated balance sheet, statement of cash flows, and income statement for the first year.
3. Explain your pro forma statements in an accompanying document.
   • Along with these pro forma financial statements, you will prepare an explanation discussing how you arrived at the various figures.
4. Review the rubric for this assignment.
5. Submit your assignment through the link below.
6. Your instructor will review and grade your idea and return it with comments.

Evaluation

The Pro Forma Budget will be marked in its entirety out of 100. The following rubric indicates the criteria students are to adhere to, and their relative weights to the assignment overall.

Activity/Competencies Demonstrated	% of Final Grade
Content: Students are expected to demonstrate competency in regards to critical thinking, communication (spelling and grammar), and APA formatting in their response to the following learning outcomes.
a. Analysis of the capital and cash need that the new venture will require for its first year.	/20
b. Prepare a pro forma balance sheet describing the financial position of the organization at the end of the year.	/15
c. Prepare a pro forma statement of cash flow for the first year.	/15
d. Prepare a pro forma income statement for the first year.	/15
e. Describe how the figures in the pro forma financial statements were derived and why you think that they are accurate.	/20
f. Demonstrate good organization, including a strong introduction and conclusion	/15
Total	/100