Having acquired sufficient knowledge and skills on financial management for small

business, you must demonstrate practical competencies in constructing financial

statements and in conducting feasible financial forecasting.

As a new entrepreneur understanding financial management and accounting, forms an

integral part of running your small business. You should also be able to forecast the

financial outcomes that could result from your decision. The projections of business$$s

profits, its assets and financial requirements, and its cash flows are essential in

determining whether your business is economically viable or not.

In light of the above citation you are expected to respond to the following assessment criteria:

QUESTION $1$

$$ Demonstrate how you would go about constructing financial statements of your

small business with reference to practical examples. $(30)$

QUESTION $2$

$$ Demonstrate how you would go about conducting financial forecasting for your

business with reference to practical examples. $(20)$