Instructions
Assignment 2: Business Plan Breakdown 3—The Simplified Financial Plan
This is the third milestone of your business plan—the financial plan.
Tasks:
Research the costs, financial statements, cash flow, and risks of your chosen project. Based on your research and the knowledge you have gained from the course, create a simplified 4- to 5-page financial plan including tables and charts. For the financial plan:
Grading Criteria
– Estimate capital requirements, use of capital, start-up requirements (if applicable), and other probable costs involved in the implementation and subsequent operation of your project.
– Identify sources of financing and define a payback period.
– Prepare cash flow projections.
– Prepare a projected balance sheet representing the end of the first calendar year of operations, and defining assets and liabilities, both current and long term
– Prepare income statement projections for the end of the first calendar year of operations, including charts showing gross revenues, gross profit, and net income.
– Define the meaning of a breakeven analysis and prepare one to reflect your project.
– Prepare a ratio analysis, including the definition and the value of the following ratios (whenever applicable): current, quick, debt, debt to equity, average inventory turnover, receivables turnover, payables turnover, net sales to working capital, net profit to sales, and net profit to equity.
– Prepare a list of possible risks associated with the implementation and future operation of your project, and provide significance for each of them.
– Write in a clear, concise, and organized manner; demonstrate ethical scholarship in accurate representation and attribution of sources; display accurate spelling, grammar, and punctuation.
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