Assignment: 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:

• Estimate the 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 the sources of financing.

• 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 break-even analysis and prepare an analysis appropriate for your project.

• Prepare a ratio analysis, including the definition and value of the following ratios (whichever 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 describe the significance of each of them.