I need help with this Forma Balance Sheet

Expansion Plan - Source and Use of Funds Statement
Company: The Sweet Password
Source of Funds
Source	Amount
Management Team Investment	$ 700,000
Line of Credit with PNC Bank (4% simple interest loan)	$ 75,000
Total Funds Committed	$ 775,000
Total Funds Required	$ 1,225,000
Total Funds Needed from an Equity Investor	$ 450,000
Use of Funds
Cost Item	Amount
Office Facilities	$ 210,000
Office and Computer Equipment	$ 75,000
Staffing and Personnel	$ 30,000
Sales and Marketing	$ 50,000
Attorney Fees	$ 15,000
Initial Inventory	$ 645,000
Other (R&D and General Expenses)	$ 50,000
Cash for Working Capital	$ 50,000
The shortfall on Break-Even Profitability During Initial Operations	$ 100,000
Total Required Funds	$ 1,225,000

The Balance Sheet is where the value of the assets and liabilities are reported. Each of the tangible assets has value for example, land, buildings, and equipment. Material is valued based on the expected inventory that will be on hand at any point in time. Cash and accounts receivable are also assets. Liabilities such as accounts payable and loans are reported, based on their average value. The difference between assets and liabilities is the Owners equity, consisting of original paid-in capital and retained earnings.

It should start with your balance sheet position at the beginning of your proforma period. This will include your original capital contribution as original paid-in capital, along with any minor assets and liabilities that youve incurred during your brief period of operation to date. That is the jumping-off point for computing your balance sheet at the end of the first proforma year. You will build from there, with the addition of assets such as land, buildings, equipment, furniture, etc. It would also show liabilities such as accounts payable and loans. And each year, the original paid-in capital would be supplemented or diminished by the "retained earnings" (or losses) that the business incurred that year. Additionally, (many student submissions miss this point) the original paid-in capital will increase to reflect the new equity contribution that is anticipated by the investor. Your schedules should reflect that you are successful in securing the funding necessary to pay for the expansion plan, just the same as they reflect the addition of assets and revenues as the result of implementing the plan.

Key General Points:

But students in this class are not expected to become overnight accountants. If they haven't had the necessary accounting training beforehand, they aren't going to be successful in developing the complex schedules. If you dont have a team member with accounting skills to construct the schedules, it is ok to include representative examples of the schedules as a copied picture in the business plan. Of course, being a picture, the numbers can't be changed and they won't correspond to your actual business. If you use a copied picture rather than constructing your own schedule, be sure to describe the insertion as a representative example and properly cite its source.

In past classes, some students had the skills to build the schedules while others included copied examples. The grading was equal, with the emphasis on whether the team appeared to understand the concepts. This isn't an accounting class so I'm not looking for you to be able to be professional accountants. But it is a class that rewards critical thinking, so what I am more looking for is some analytic commentary accompanying the respective schedules

Here's the Key Requirement

Be sure to offer some analytic commentary about the financial schedules (regardless of whether you construct or copy them) that shows that you have looked at the data and have drawn some conclusions about it. (This is what managers are expected to understand about financial schedules they could most likely never construct one, but they do know what the schedules are trying to say.)

Don't simply throw raw data at the reader, in the form of complex schedules. That's completely dissatisfying to a reader. You are expected to tell the reader what is important about the reams of data that you are presenting.

If you prepare your financial statements in Excel, dont just submit the Excel sheets. Instead, copy and paste the Excel charts into your word document as an integral part of your report. If the excel schedule is massive, you can construct a condensed version of the schedule for inclusion in the body of the report and include the full schedule in an appendix but in all cases, as a word document.

Dont just display the statements alone, without explanation. Include a brief introductory paragraph before each schedule. And, offer commentary after each schedule highlighting any key points that you would like investors to notice. This is particularly important in the ratio analysis subsection.

Wrap up the Financial Plan with a brief concluding paragraph that sums up the trend indicated by the financial statements. (Hopefully, this will be a favorable trend that will impress investors)

***** I just want to understand how to complete this Pro Forma Balance sheet with the Pro-Forma Income Statement attached as the guide, The Expansion Plan - Source and Use of Funds Statement are going to be the sheet used for the Pro Forma Balance sheet**** I am just confused as to how and what to use since this is my first time doing this.

The Pro Forma Income statement needs to updated- information will be coming in later on.

Pro-Forma Income Statement The Sweet Password REVENUE 2021 2022 2023 Gross sales $2,400,000 $2,600,000 $2,800,000 Less sales retums and allowances 200.000 200.000 200.000 Net Sales $2,200,000 $2,400,000 $2,600.000 2024 $3,000,000 200.000 $2,800,000 2025 $3,000,000 200.000 $2,800,000 $8,065,000 1.420.000 $9,485,000 6,765,000 $2,720,000 $8,065,000 879.000 $8,944.000 6.024.000 $2.920,000 $8,065,000 930.000 $8.995.000 5,875,000 $3,120.000 $8,065,000 712,000 $8,777,000 5,457.000 $3,320,000 $8.065.000 690.000 $8.755.000 5.435.000 $3,320.000 ($520,000) ($520,000) ($520,000) ($520.000) ($520,000) COST OF SALES Beginning inventory Plus goods purchased / manufactured Total Goods Available Less ending inventory Total Cost of Goods Sold Gross Profit (Loss) OPERATING EXPENSES Selling Salaries and wages Advertising Depreciation Miscellaneous Total Selling Expenses General Administrative Salaries and wages Rent Utilities Office supplies Licenses Total General/Administrative Expenses Total Operating Expenses $3,220,000 18,000 77,000 10% $3,315,000 $3,220,000 18.000 77.000 10% $3,315,000 $3,220.000 29.225 77.000 10% $3,326,225 $3,220,000 29.225 77.000 10% $3,326,225 $3,220,000 29.225 77.000 10% $3,326, 225 $3,220,000 300.000 12.000 40,000 1.000 $3,573,000 $3,220,000 300,000 21.000 20.000 1.000 $3,562,000 $3,220.000 300,000 30.000 20,000 1,000 $3,571.000 $3,220,000 300.000 33,000 20,000 1.000 $3,574,000 $3,220,000 300.000 33.000 20.000 1.000 $3,574.000 $6,888,000 $6,877,000 $6,897,225 $6,900,225 $6,900,225 Net Income Before Taxes Taxes on income Net Income After Taxes $ ($7.408,000) 5,000.00 $ ($7,413,000) ($7.397.000) 5,000.00 $ ($7.402.000) ($7.417,225) 5,000.00 $ ($7.422.225) ($7,420,225) 5,000.00 $ ($7.425,225) ($7.420,225) 5.000.00 (57.425.225) $330.000 16.500 $360,000 18.000 $390,000 19,500 $420,000 21.000 $420,000 21.000 Extraordinary gain or loss Income tax on extraordinary gain NET INCOME (LOSS) ($7,099,500) ($7,060,000) ($7,051,725) ($7,026,225) ($7.026,225) Pro-Forma Income Statement The Sweet Password REVENUE 2021 2022 2023 Gross sales $2,400,000 $2,600,000 $2,800,000 Less sales retums and allowances 200.000 200.000 200.000 Net Sales $2,200,000 $2,400,000 $2,600.000 2024 $3,000,000 200.000 $2,800,000 2025 $3,000,000 200.000 $2,800,000 $8,065,000 1.420.000 $9,485,000 6,765,000 $2,720,000 $8,065,000 879.000 $8,944.000 6.024.000 $2.920,000 $8,065,000 930.000 $8.995.000 5,875,000 $3,120.000 $8,065,000 712,000 $8,777,000 5,457.000 $3,320,000 $8.065.000 690.000 $8.755.000 5.435.000 $3,320.000 ($520,000) ($520,000) ($520,000) ($520.000) ($520,000) COST OF SALES Beginning inventory Plus goods purchased / manufactured Total Goods Available Less ending inventory Total Cost of Goods Sold Gross Profit (Loss) OPERATING EXPENSES Selling Salaries and wages Advertising Depreciation Miscellaneous Total Selling Expenses General Administrative Salaries and wages Rent Utilities Office supplies Licenses Total General/Administrative Expenses Total Operating Expenses $3,220,000 18,000 77,000 10% $3,315,000 $3,220,000 18.000 77.000 10% $3,315,000 $3,220.000 29.225 77.000 10% $3,326,225 $3,220,000 29.225 77.000 10% $3,326,225 $3,220,000 29.225 77.000 10% $3,326, 225 $3,220,000 300.000 12.000 40,000 1.000 $3,573,000 $3,220,000 300,000 21.000 20.000 1.000 $3,562,000 $3,220.000 300,000 30.000 20,000 1,000 $3,571.000 $3,220,000 300.000 33,000 20,000 1.000 $3,574,000 $3,220,000 300.000 33.000 20.000 1.000 $3,574.000 $6,888,000 $6,877,000 $6,897,225 $6,900,225 $6,900,225 Net Income Before Taxes Taxes on income Net Income After Taxes $ ($7.408,000) 5,000.00 $ ($7,413,000) ($7.397.000) 5,000.00 $ ($7.402.000) ($7.417,225) 5,000.00 $ ($7.422.225) ($7,420,225) 5,000.00 $ ($7.425,225) ($7.420,225) 5.000.00 (57.425.225) $330.000 16.500 $360,000 18.000 $390,000 19,500 $420,000 21.000 $420,000 21.000 Extraordinary gain or loss Income tax on extraordinary gain NET INCOME (LOSS) ($7,099,500) ($7,060,000) ($7,051,725) ($7,026,225) ($7.026,225) Pro-Forma Income Statement The Sweet Password REVENUE 2021 2022 2023 Gross sales $2,400,000 $2,600,000 $2,800,000 Less sales retums and allowances 200.000 200.000 200.000 Net Sales $2,200,000 $2,400,000 $2,600.000 2024 $3,000,000 200.000 $2,800,000 2025 $3,000,000 200.000 $2,800,000 $8,065,000 1.420.000 $9,485,000 6,765,000 $2,720,000 $8,065,000 879.000 $8,944.000 6.024.000 $2.920,000 $8,065,000 930.000 $8.995.000 5,875,000 $3,120.000 $8,065,000 712,000 $8,777,000 5,457.000 $3,320,000 $8.065.000 690.000 $8.755.000 5.435.000 $3,320.000 ($520,000) ($520,000) ($520,000) ($520.000) ($520,000) COST OF SALES Beginning inventory Plus goods purchased / manufactured Total Goods Available Less ending inventory Total Cost of Goods Sold Gross Profit (Loss) OPERATING EXPENSES Selling Salaries and wages Advertising Depreciation Miscellaneous Total Selling Expenses General Administrative Salaries and wages Rent Utilities Office supplies Licenses Total General/Administrative Expenses Total Operating Expenses $3,220,000 18,000 77,000 10% $3,315,000 $3,220,000 18.000 77.000 10% $3,315,000 $3,220.000 29.225 77.000 10% $3,326,225 $3,220,000 29.225 77.000 10% $3,326,225 $3,220,000 29.225 77.000 10% $3,326, 225 $3,220,000 300.000 12.000 40,000 1.000 $3,573,000 $3,220,000 300,000 21.000 20.000 1.000 $3,562,000 $3,220.000 300,000 30.000 20,000 1,000 $3,571.000 $3,220,000 300.000 33,000 20,000 1.000 $3,574,000 $3,220,000 300.000 33.000 20.000 1.000 $3,574.000 $6,888,000 $6,877,000 $6,897,225 $6,900,225 $6,900,225 Net Income Before Taxes Taxes on income Net Income After Taxes $ ($7.408,000) 5,000.00 $ ($7,413,000) ($7.397.000) 5,000.00 $ ($7.402.000) ($7.417,225) 5,000.00 $ ($7.422.225) ($7,420,225) 5,000.00 $ ($7.425,225) ($7.420,225) 5.000.00 (57.425.225) $330.000 16.500 $360,000 18.000 $390,000 19,500 $420,000 21.000 $420,000 21.000 Extraordinary gain or loss Income tax on extraordinary gain NET INCOME (LOSS) ($7,099,500) ($7,060,000) ($7,051,725) ($7,026,225) ($7.026,225) Pro-Forma Income Statement The Sweet Password REVENUE 2021 2022 2023 Gross sales $2,400,000 $2,600,000 $2,800,000 Less sales retums and allowances 200.000 200.000 200.000 Net Sales $2,200,000 $2,400,000 $2,600.000 2024 $3,000,000 200.000 $2,800,000 2025 $3,000,000 200.000 $2,800,000 $8,065,000 1.420.000 $9,485,000 6,765,000 $2,720,000 $8,065,000 879.000 $8,944.000 6.024.000 $2.920,000 $8,065,000 930.000 $8.995.000 5,875,000 $3,120.000 $8,065,000 712,000 $8,777,000 5,457.000 $3,320,000 $8.065.000 690.000 $8.755.000 5.435.000 $3,320.000 ($520,000) ($520,000) ($520,000) ($520.000) ($520,000) COST OF SALES Beginning inventory Plus goods purchased / manufactured Total Goods Available Less ending inventory Total Cost of Goods Sold Gross Profit (Loss) OPERATING EXPENSES Selling Salaries and wages Advertising Depreciation Miscellaneous Total Selling Expenses General Administrative Salaries and wages Rent Utilities Office supplies Licenses Total General/Administrative Expenses Total Operating Expenses $3,220,000 18,000 77,000 10% $3,315,000 $3,220,000 18.000 77.000 10% $3,315,000 $3,220.000 29.225 77.000 10% $3,326,225 $3,220,000 29.225 77.000 10% $3,326,225 $3,220,000 29.225 77.000 10% $3,326, 225 $3,220,000 300.000 12.000 40,000 1.000 $3,573,000 $3,220,000 300,000 21.000 20.000 1.000 $3,562,000 $3,220.000 300,000 30.000 20,000 1,000 $3,571.000 $3,220,000 300.000 33,000 20,000 1.000 $3,574,000 $3,220,000 300.000 33.000 20.000 1.000 $3,574.000 $6,888,000 $6,877,000 $6,897,225 $6,900,225 $6,900,225 Net Income Before Taxes Taxes on income Net Income After Taxes $ ($7.408,000) 5,000.00 $ ($7,413,000) ($7.397.000) 5,000.00 $ ($7.402.000) ($7.417,225) 5,000.00 $ ($7.422.225) ($7,420,225) 5,000.00 $ ($7.425,225) ($7.420,225) 5.000.00 (57.425.225) $330.000 16.500 $360,000 18.000 $390,000 19,500 $420,000 21.000 $420,000 21.000 Extraordinary gain or loss Income tax on extraordinary gain NET INCOME (LOSS) ($7,099,500) ($7,060,000) ($7,051,725) ($7,026,225) ($7.026,225)