Graded Assignment Create Financial Plan Instructions In this project, you will create a financial plan for your business Type the answers to the questions Use complete sentences Refer to the Grading Rubric to see how your teacher will grade your assignment Total score of 60 points (Score for Question 1 of 18 points) Research and outline startup costs for your business (Score for Question 3 of 18 points) Identify funding sources for your business (Score for Question 3 of 18 points) Describe your plan to repay loans Include average income in the industry Graded Assignment Assignment 9 Business Finance Instructions Save the assignment to your computer with your name at the end of the filename (e g , Graded Assignment U14 Alice Jones doc) Type the answers to the assignment's questions Use complete sentences unless the question says otherwise You will have more than one day to complete an assignment At the end of each day, be sure to save your progress Review Lesson 4 of the Course Overview for instructions about turning in your assignments Assignment Total score of 16 0 points (Score for Question 1 of 9 5 points) Choose an example of a type of new company you could start, and then use this company idea to answer the questions below You might choose to open a hair salon, a babysitting service, a record store, or many other things This can be the same type of company you chose in assignment 8, or it can be different Describe the type of company you chose If you needed to get funding for your company, would you prefer to get debt funding or equity funding Explain why you would prefer this type (2 4 sentences 2 0 points) If you needed to get funding for your company, describe at least two sources of funding that you would prefer Explain why you would prefer these sources of funding (2 4 sentences 2 0 points) List at least four operating costs your business might have (1 0 points) Consider the industry of your company and the current economy, and then explain how these factors might impact your company's sales If you do not think these factors would impact your sales, explain why they wouldn't If you had $5,000 to start this company, which department would get the most funding Which department would get the least funding Which phase of the business would be the most expensive Answer (Score for Question 2 of 2 0 points) Review the Financial Statements Use the information from Lesson 2 in this unit of the example income statement for Jamie's Bead Jewelry to answer the questions below What are the two sources of revenue for the company (0 5 points) What is the company's total revenue (0 5 points) What is the company's net profit (0 5 points) Is the company experiencing a profit, or a loss (0 5 points) Answer (Score for Question 3 of 1 5 points) Review the Financial Statements Use the information from the example balance sheet for Jamie's Bead Jewelry to answer the questions below What is the value of the company's assets (0 5 points) What is the total of the company's liabilities (0 5 points) What is the total owner equity (0 5 points) Answer (Score for Question 4 of 3 0 points) Calculate the following financial ratios TIP If you don't remember how to calculate financial ratios, review the Calculating Financial Ratio pages from Lesson 2 of this unit A company makes a net profit before tax of $12,000 and has $20,000 in total equity Calculate the company's return on equity as a percentage (0 5 points) A company makes a net profit before tax of $5,000 and has total assets with a value of $10,000 Calculate the company's return on assets as a percentage (0 5 points) A company has $1,400 in liabilities and $1,500 in assets Calculate the company's debt ratio as a percentage (0 5 points) A company has $1,400 in liabilities and $1,500 in equity Calculate the company's debt to equity ratio as a percentage (0 5 points) A company's current assets are $30,000 and current liabilities are $19,000 Calculate the company's current ratio as a percentage Does the company have enough assets to pay its liabilities (1 0 points) Answer Answerand explanations I would choose to work at an exotic pet store Personally, I favor using debt financing I wouldn't have to split up my business that way I'm not the biggest sharer I would finance with debt and, ideally, receive funding from angel investors location, resources, personnel, tools, management, and cash reserve Purchasing goods can be more expensive right now than it would be in a stronger economy Employee salaries would remain roughly the same Depending on if a pet store is close, the location can be relatively simple Since selling these animals to a decent home would be our primary objective, I believe the sales department would receive the greatest funds Information technology would receive the least money because we wouldn't actually require a complex network database The most expensive stage, in my opinion, would be the beginning $500,000 $200 Experiencing a profit Current assets $64,000 Current liabilities $45,000 Step by step explanation Debt financing is the process by which a business raises funds by offering investors debt instruments Equity finance, which involves issuing stock to raise money, is the reverse of debt financing When a company sells fixed income securities like bonds, bills, or notes, debt financing takes place The numerous avenues via which a company receives income from the selling of goods or the rendering of services are known as revenue streams The kinds of activities that a firm engages in determine the kinds of revenue that a business records on its books Total revenue less total expenses equals net profit Cost of products sold, operational costs, income taxes, interest payments on loans and debt, depreciation of fixed assets, and SG A are all included in total expenses (selling, general, and administrative expenses) A company's assets are any possessions that have the potential to provide future financial gain Your debts to other people are called liabilities In other words, assets increase your wealth while obligations decrease it Liabilities plus shareholder equity equal assets

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Graded Assignment Create Financial Plan Instructions In this project, you will create a financial plan for your business. Type the answers to the questions. Use

Graded Assignment

Create Financial Plan

Instructions

In this project, you will create a financial plan for your business. Type the answers to the questions. Use complete sentences. Refer to the Grading Rubric to see how your teacher will grade your assignment.

Total score: ____ of 60 points

(Score for Question 1: ___ of 18 points)

Research and outline startup costs for your business.

(Score for Question 3: ___ of 18 points)

Identify funding sources for your business.

(Score for Question 3: ___ of 18 points)

Describe your plan to repay loans. Include average income in the industry.

Graded Assignment

Assignment 9: Business Finance

Instructions

Save the assignment to your computer with your name at the end of the filename (e.g., Graded_Assignment_U14_Alice_Jones.doc).

Type the answers to the assignment's questions. Use complete sentences unless the question says otherwise. You will have more than one day to complete an assignment. At the end of each day, be sure to save your progress.

Review Lesson 4 of the Course Overview for instructions about turning in your assignments.

Assignment

Total score: ____ of 16.0 points

(Score for Question 1: ___ of 9.5 points)

Choose an example of a type of new company you could start, and then use this company idea to answer the questions below. You might choose to open a hair salon, a babysitting service, a record store, or many other things. This can be the same type of company you chose in assignment 8, or it can be different.
Describe the type of company you chose.
If you needed to get funding for your company, would you prefer to get debt funding or equity funding? Explain why you would prefer this type. (2-4 sentences. 2.0 points)
If you needed to get funding for your company, describe at least two sources of funding that you would prefer. Explain why you would prefer these sources of funding. (2-4 sentences. 2.0 points)
List at least four operating costs your business might have. (1.0 points)
Consider the industry of your company and the current economy, and then explain how these factors might impact your company's sales. If you do not think these factors would impact your sales, explain why they wouldn't.
If you had $5,000 to start this company, which department would get the most funding? Which department would get the least funding? Which phase of the business would be the most expensive?

Answer:

(Score for Question 2: ___ of 2.0 points)

Review the Financial Statements: Use the information from Lesson 2 in this unit of the example income statement for Jamie's Bead Jewelry to answer the questions below.
What are the two sources of revenue for the company? (0.5 points)
What is the company's total revenue? (0.5 points)
What is the company's net profit? (0.5 points)
Is the company experiencing a profit, or a loss? (0.5 points)

Answer:

(Score for Question 3: ___ of 1.5 points)

Review the Financial Statements: Use the information from the example balance sheet for Jamie's Bead Jewelry to answer the questions below.
What is the value of the company's assets? (0.5 points)
What is the total of the company's liabilities? (0.5 points)
What is the total owner equity? (0.5 points)

Answer:

(Score for Question 4: ___ of 3.0 points)

Calculate the following financial ratios. TIP: If you don't remember how to calculate financial ratios, review the Calculating Financial Ratio pages from Lesson 2 of this unit.
A company makes a net profit before tax of $12,000 and has $20,000 in total equity. Calculate the company's return on equity as a percentage. (0.5 points)
A company makes a net profit before tax of $5,000 and has total assets with a value of $10,000. Calculate the company's return on assets as a percentage. (0.5 points)
A company has $1,400 in liabilities and $1,500 in assets. Calculate the company's debt ratio as a percentage. (0.5 points)
A company has $1,400 in liabilities and $1,500 in equity. Calculate the company's debt to equity ratio as a percentage (0.5 points)
A company's current assets are $30,000 and current liabilities are $19,000.
Calculate the company's current ratio as a percentage. Does the company have enough assets to pay its liabilities? (1.0 points)

Answer:

Answerand explanations

I would choose to work at an exotic pet store. Personally, I favor using debt financing. I wouldn't have to split up my business that way. I'm not the biggest sharer. I would finance with debt. and, ideally, receive funding from angel investors. location, resources, personnel, tools, management, and cash reserve. Purchasing goods can be more expensive right now than it would be in a stronger economy. Employee salaries would remain roughly the same. Depending on if a pet store is close, the location can be relatively simple. Since selling these animals to a decent home would be our primary objective, I believe the sales department would receive the greatest funds.

Information technology would receive the least money because we wouldn't actually require a complex network database. The most expensive stage, in my opinion, would be the beginning.

$500,000

$200

Experiencing a profit Current assets = $64,000.

Current liabilities= $45,000.

Step-by-step explanation

Debt financing is the process by which a business raises funds by offering investors debt instruments. Equity finance, which involves issuing stock to raise money, is the reverse of debt financing. When a company sells fixed income securities like bonds, bills, or notes, debt financing takes place. The numerous avenues via which a company receives income from the selling of goods or the rendering of services are known as revenue streams. The kinds of activities that a firm engages in determine the kinds of revenue that a business records on its books. Total revenue less total expenses equals net profit. Cost of products sold, operational costs, income taxes, interest payments on loans and debt, depreciation of fixed assets, and SG&A are all included in total expenses (selling, general, and administrative expenses)

A company's assets are any possessions that have the potential to provide future financial gain. Your debts to other people are called liabilities. In other words, assets increase your wealth while obligations decrease it.Liabilities plus shareholder equity equal assets.