Instructions - Assessments should be completed as per your trainer’s instructions. Assessments must be submitted by the due date to avoid a late submission penalty. You must write your answers in your own words or appropriately reference your sources. A list of references must be included. You may discuss your assessments with other students, but submitting identical answers to other students will result in a failing grade. Your answers must be yours alone. Your trainer will advise whether the assessment should be digitally uploaded or submitted in hard copy. Assessments that are digitally uploaded should be saved in pdf format. You must pass both assessments in the subject to pass the subject.

Notes to the Students: You can use linear trend function to prepare the financial forecast, but keep in mind that the assumptions should be reasonable by cross checking with the organisational policy and procedures. Use the percentage of sales method to forecast the accounts in the income statement and T-accounts or ratios method to forecast the accounts in the balance sheets. You can group the operating expenses but have to make sure the key accounts (e.g. depreciation, net interest expenses and tax) should be separately disclosed in the proforma financial statements.

Use the short-term debt or debts as the plug (the last account used to balance the balance sheet). You are required to submit the EXCEL to include: Financial ratios for the actual three years; Assumptions used in the financial forecasts for all the accounts; Proforma income statement and balance sheet (including the amounts in the three actual years); Free cash flow forecasts. You are required to submit the report in the WORD to include: Timeframes of your financial forecasts and reason; Organisational policy and procedures; Formulae used to work out the relevant ratios; Briefly comment the profitability, liquidity and solvency of the company based on the financial ratios you calculated;

All the information and workings used for your financial forecasts in the EXCEL; Identify the relevant person in charge to obtain approval; Your opinion about whether the company has the ability to meet its longterm obligations if the company is about to apply for the loan. You can use the following templates for your work. Note that the accounts and amounts shown in the templates are EXAMPLE ONLY.