Pro forma income statement for the first twelve

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Using the same business you started in Assignment 1, you will continue to build a financial plan for the business. 

Write a four to five (4-5) page paper in which you:

  1. Prepare a pro forma balance sheet for the first twelve (12) months of your business. Include the assumptions on which it is based. Justify your balance sheet.
  2. Prepare a pro forma income statement for the first twelve (12) months of your business. Include the assumptions on which it is based. Justify your income statement. 
  3. Prepare a pro forma cash budget for the first twelve (12) months of your business. Include the assumptions that you have made when creating the budget. Justify your budget. 
  4. Scrutinize the costs (both tangible and intangible costs) of obtaining financial capital for your business start-up to determine whether the costs justify implementation of the funding source.

Your business is five (5) years old and running profitably. You are now ready to look outward five (5) more years to take the business to the next level.

  1. Determine the specific details that would make the equity approach to valuing your business worthwhile. Provide a rationale with your response.

Reference no: EM131500693

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