Prepare pro forma financial budget

Assignment Help Marketing Management

Reference no: EM132665455

Based on the following information and the data included in the Excel worksheet:

1. Using Excel, Prepare Pro Forma Financial Budget for the Next Fiscal Year, and

2. Construct the Business Plan in the "Lean Format" utilizing the template provided.
You were just hired as the new Chief Financial Officer (CFO) for an Arena Football 2 team (af2), the Columbia Destroyers. The previous CFO, who has recently left the organization, was not good at his job, unfortunately. The financials are a mess. In addition, the president of the club is asking you to create pro forma financials for the next fiscal year. The information is not altogether good, but you know how to create financial statements for the club. The facts you do know regarding the financial operation of the club are as follows:

1.You have a copy of last year''s financials (balance sheet and income statement)
2.The club was purchased last year for $1 million and uses the accrual basis of accounting.
3.The club was capitalized as follows:
Borrowed $1,000,000 at 7% interest for seven years (PMT = $185,553; I1 = $70,000; I2 = $61,911)
4.It is forecasted that costs and expenditures will change as follows:

Purchase
Additional equipment-$50,000
Cash Expenses
Player compensation-increase 3.5%
Football operations-remain the same
Business operations-decrease 1.5%
Rent-increase by $10,000
1.The team is expected to generate cash receipts as follows:
Ticket sales-37,500 fans at $16.25 per ticket
Concessions-37,500 fans at $3.50 per fan
Parking-$48,000 per year
Advertising/sponsorship-$400,000
Merchandise-37,500 fans at $2.10 per fan
1.Depreciation:
All short-term fixed assets depreciated over a 5-year life using the straight line method
1.Other information:
The football team pays the City 10% for each ticket sold. This is an expense.
Accounts receivable for ticket sales will increase by $5,000 next year.
Accounts payable for business operations will increase by $180,000 next year.
Franchise value is amortized over a 15-year period.
Don't forget the depreciation, amortization and interest expenses.
Tax Rate: 40%

Attachment:- Business Plan Template.rar

Reference no: EM132665455

Questions Cloud

What is Pieper trust accounting income : The trustee distributed $26,000 to Lydia and $13,000 to Avi. What is Pieper's trust accounting income? What amounts are taxed to each of the beneficiaries

Describe the meaning of diversification : What is the opportunity cost of capital? How can a company measure opportunity cost of capital for a project that is considered to have average risk?

Delphi method and red teaming : This discussion looks at the two predictive analytic techniques - Delphi method and Red Teaming.

Explain why governments use fund accounting : Determine how the GASB revenue and expense recognition model may improve the usefulness of the information governments report to the public

Prepare pro forma financial budget : Prepare Pro Forma Financial Budget for the Next Fiscal Year and Construct the Business Plan in the "Lean Format" utilizing the template provided

How much of the distributed to renee is included in income : The trust generates only taxable interest income and records DNI of $160,000; How much of the $150,000 distributed to Renee is included in her gross income

Explain and defend selected target profits for each area : Explain and defend your selected target profits for each area of your business. Be sure to reference your cost-volume-profit analysis in your defense.

How a safety and health professional should proceed : Discuss how a safety and health professional should proceed when faced with an employee who thinks he or she has AIDS. The response must be typed.

How the new capital structure would impact the firm : XYZ Health Organization, Determine how the new capital structure would impact the firm's net income, total dollar return to investors, and ROE?

User Account

All Pages