For your final project, you will prepare the financial section of a business plan for the business of your choice. The required portions of this assignment are: A written summary An operating budget Breakeven analysis A capital budget A cash flow budget You have the option to prepare a proforma income statement and balance sheet for extra credit. Information for preparing these reports are contained in material covered.

Written Summary: In your written summary provide basic information about the business. State the character of the business; is it a business you are starting, working for, of interest to you or a hypothetical example. Discuss the product, service, sales methods, production methods, location, size and any other information necessary to understand the financial analysis you present. Also, within the written summary, discuss the outcomes of your financial analysis including funding needed, overall income estimates, asset acquisitions, and results of your breakeven analysis. Financial Presentations: Prepare your financial projections for at least a one-year period or for the first year of operations for a new business. If you have experience in financial preparations or want to perform a more extensive plan, you are welcome to prepare projections for multiple years. You should consider preparing all your financial presentations on one Excel workbook, with various statements and budgets on separate tabs.

Operating budget: Review the information in your Week 7 folder for more information about preparing your operating budget. Also, consider using any templates you have available. Remember, depending on the character of your business, your operating budget will be very different. A service company will not include inventory purchasing projections where a retail company will. Remember the operations budget is a presentation of sales and expenses; it ties to the income statement. You should consider preparing a monthly operating budget with a year-end summary. Also, I would advise not considering customer account receivables and consider all sales or service revenue as cash. Capital Budget: The capital budget discusses long term asset purchases and funding through long term liabilities and equity expansions. For a new business, the start-up budget may be considered the capital budget as start up costs include initial purchases of long-term assets and funding considerations. Remember to include a timeline for long term asset purchases and dates of funding receipts. Cash Flow Budget: Once you have prepared the operating and capital budget, you will have the information necessary to prepare your cash flow budget. The previously prepared budgets will give you the information to construct your cash flow budget. You have the information to consider cash receipts from operations (sales), cash expenditures from operations (expenses) and sources and uses of capital funding considerations. You should consider preparing a monthly cash flow budget for the first year of operations. Remember to include a minimum balance of cash required and inputs of cash if needed. Proforma Income Statement and Balance Sheet, Optional: Construction of these proforma statements are optional. However, since they are considered required sections of a business plan, I am giving students the opportunity to consider creating these to complete the business plan financial section. By using the results of your operating budget, capital budget and cash flow budget, you now have the information to prepare your income statement for the first year of operations and your balance sheet. If you are preparing this project for a new business, you will not have a beginning balance sheet and only need to prepare a balance sheet for the end of the first year of operations. However, if you are preparing financials for a continuing business, then you will have a beginning balance sheet (end of previous year) and a end of the year balance sheet that will reflect the new standing of the company.