Finance is one of the most important aspects of a business. As you know, without finances and proper management, an organization will no longer exist. The next step for E_MAGINE Biomedical for the new international venture is to put together the financial picture for the CEO to understand the impact the venture will have on the organization's bottom line.

INSTRUCTIONS

1. Review the Financial Statements(below) for E_MAGINE Biomedical during 2020. 

2. Next you will complete the final section the "Financial Plan" (posted below)of your document. The template outlines what you should cover in the section. 

In this section, the proverbial "rubber meets the road". Accurate presentation of the estimates results in increased validity of the venture. The venture viability and timetable will be on display in this section. The use of financial exhibits will be expected, and you can use your 2nd template to cut and paste sections right into the document. Any profit or loss forecasts would help as well, along with the income statements and balance sheets.

(Hint: Depending on what you wrote for your operations plan, you might need to add in the $250,000 re-tooling expense for the plant in Mexico.)

(Hint: If you are making some assumptions about the financials (you might have to), explain the assumptions.)

 

The following is the Financial Statements to review:

 

This is the section that needs to be completed, it's the "Financial Plan" Section from my document:

Financial Plan 

In this section, the proverbial "rubber meets the road". Accurate presentation of the estimates results in increased validity of the venture. The venture viability and timetable will be on display in this section. The use of financial exhibits will be expected, and you can use your 2^nd template to cut and paste sections right into the document. Any profit or loss forecasts would help as well, along with the income statements and balance sheets.  If you are going to retool the plant in Mexico, remember to account for that! To complete the forecasting, you might have to make some assumptions. Be certain to review/discuss the assumptions made. It is imperative that a discussion be provided on the worst case, most likely, and best-case scenarios.

Income Statement 2020 Revenues $6,500,000 Cost of Goods Sold $4,100,000 Operating Expenses $1,400,000 Interest Expense $70,000 o Tax: E-MAGINE is receiving a tax $50,000 credit for operating in TN and continuing to hire from the state. Total taxes prior tax credit $70,0000 Balance Sheet 2020 o o Cash and equivalents and Short-Term Investments $350,000 Accounts Receivable $8,500,000 Inventory $1,225,000 Other current assets $150,000 Property, plant & equipment $450,000 Goodwill $0 o Other Long-Term Assets $15,000 Accounts Payable $250,000 Other Current Liabilities $0 Long Term Debt $575,000 Common Stock $100,000 Retained Earnings $75,000