I need the Income Statement, Balance Sheet, and Statement of Cash Flows. I also need a set of calculated ratios along with an overall assesment on the projected health of the company. Thank you.

Case Overview Janelle Higgins has decided to start her own event planning business (JH Events) in the upcoming year. She believes that she has an innovative business model and is seeking a business loan. Therefore, Janelle is in the process of putting together a business plan. As part of her business plan, Janelle must include forecasted financial statements for the first 5 years. The * forecasted financial statements to be included are: Income Statement, Balance Sheet, and Statement of Cash Flows. Janelle must also include a set of calculated ratios along with an overall assessment on the projected health of the company. Forecasting Assumptions First year sales are projected to be $150,000 and grow 3% for the next two years and 5% in year 4 and 5. Cost of sales are projected to be 45% of revenue in the first year and are expected to grow at the same rate as sales. Advertising expenses are projected to be 4% of each year's projected revenue. Janelle will need to rent equipment for the events she puts on. She has an agreement with a rental company for a flat rate of $500 per month and is sufficient to cover all of her estimated events. Starting in Year 3, she expects to be able to handle more events and the rental rate will increase to $750 per month. plans to start Janelleoff by hiring 2 people to work the events with her. Each person will be paid $100 per event and is expected to work 4 events per month. After Year 3, Janelle plans to hire 2 additional people. (At this point, each person will be paid $100 per event and is expected to work 3 events per month). Office rent is estimated to be a flat rate of $1,200 per month. Utilities for the rented office space are estimated to be $300 per month. The office space Janelle plans to rent is unfurnished. She plans to purchase $15,000 worth of furniture and fixtures at the beginning of Year 1. The furniture and fixtures will have a useful life of 15 years. Janelle will also need to buy some computers and other office equipment that she will purchase for $10,000 also at the beginning of Year 1. The office equipment will have a useful life of 5 years. Both t furniture and fixtures as well as the equipment will be depreciated on a straight-line basis (Assume zero salvage value for calculations). HINT: Fixed Assets Accumulated Depreciation = 'Net Fixed Assets Janelle is asking for a 3-year bank loan for $60,000 to be funded on Dayl of Year 1. The estimated interest on the loan is 3% (assume simple interest). She will pay the loan back in $20,000 installments starting in Year 2. Interest is due at the end of each year and paid in January of the following year. (Assume interest is paid on the principal balance still outstanding at year-end). The tax rate for JH Events is 35%. Taxes for the year just ended are paid in the first quarter of the following year. Janelle will invest $30,000 of her own money and from family and friends, before the beginning of the year, to start the business. This $30,000 investment of capital is also the beginning bank balance of Year 1. Schedule of expected year-end balances of selected accounts: 5,000, Year 1 Year 2 Year 3 Year 4 Year 5 Accounts 10,000 12,000 8,000 6,000 10,000 Receivable Accounts 2,000 4,000 6,000 9,000 Payable Customer 1,500 2,000 3,000 4,000 5,000 Deposits At the end of Year 2, Janelle will purchase an insurance policy to help cover the business. The policy has a term of 3 years and coverage starts at the beginning of Year 3. The policy costs $12,000. . During Year 3, Janelle plans to personally invest $10,000 of additional capital into the business. . Chart of Accounts T All accounts listed here should be included in your financial statements. Cash Accounts Receivable Prepaid Insurance Furnitures & Fixtures Equipment Accounts Payable Customer Deposits Interest Payable Taxes Payable . . . I Bank Loan . Capital Retained Earnings Revenue Cost of Sales Advertising Equipment Rental Wages Office Rent Utilities Insurance Expense Depreciation Interest Expense Income Taxes . Additional Instructions You must use the given Excel template attached to this assignment. The three financial statements are interconnected. Where applicable, reference the appropriate cells from other tabs. Also, use formulas within the cells where applicable. (Instructors may deduct points for not using cell references and formulas.) There are some formulas already included in various cells - do not alter these formulas. Some cells have additional notes (cells marked with a red triangle in the upper right-hand corner, hover over the triangle to see the note). Review Chapter 4 for helpful information in completing the Cash Flow Statement, The shaded areas are for data input. (NOTE: You will need to enter formulas to calculate subtotals on the 'Cash Flow Statement' tab for each major category) > On each tab there is an area to keep track of the various assumptions. The column labeled 'Assumptions' is to make note of any numbers, percentages, etc. relevant to that line item. The column labeled 'Assumption Explanations' is to help keep track of the 'Forecasting Assumptions from above. (You can copy and paste the assumptions onto the relevant line item). On the Ratios'tab there is an area to layout the formulas and show your work. There is a grading area on each tab that is being calculated as you input information. Please use this area to see where any mistakes are being made. You must upload your file to Blackboard under Week 5 Assignments (Include your name as part of the file name). Go to the Assignment, scroll down to "Attach Local File" and click Browse to select YOUR file, then hit SUBMIT. Evaluation Criteria for: Assignment 2 (100 points) Income Statement Gross Margin - 5 points (15%) Operating Income - 5 points Net Income - 5 points 15 points Balance Sheet (15%) 15 points Assets - 5 points Liabilities - 5 points Stockholder's Equity - 5 points Statement of Cash Flows (20%) Cash flows from operating activities - 5 points Cash flows from investing activities - 5 points Cash flows from financing activities - 5 points Ending Cash balance - 5 points 20 points Ratios (50%) Ratios - 45 points (1 point for each ratio - 9 ratios across 5 years) 50 points Ratio Analysis - (0-5 points) A score of 5 will be awarded for responses that fully addresses all questions listed in the text box. Response must be reasonable and logical *Refer to the grading area on each tab within the Excel Workbook. 1 Case Overview Janelle Higgins has decided to start her own event planning business (JH Events) in the upcoming year. She believes that she has an innovative business model and is seeking a business loan. Therefore, Janelle is in the process of putting together a business plan. As part of her business plan, Janelle must include forecasted financial statements for the first 5 years. The * forecasted financial statements to be included are: Income Statement, Balance Sheet, and Statement of Cash Flows. Janelle must also include a set of calculated ratios along with an overall assessment on the projected health of the company. Forecasting Assumptions First year sales are projected to be $150,000 and grow 3% for the next two years and 5% in year 4 and 5. Cost of sales are projected to be 45% of revenue in the first year and are expected to grow at the same rate as sales. Advertising expenses are projected to be 4% of each year's projected revenue. Janelle will need to rent equipment for the events she puts on. She has an agreement with a rental company for a flat rate of $500 per month and is sufficient to cover all of her estimated events. Starting in Year 3, she expects to be able to handle more events and the rental rate will increase to $750 per month. plans to start Janelleoff by hiring 2 people to work the events with her. Each person will be paid $100 per event and is expected to work 4 events per month. After Year 3, Janelle plans to hire 2 additional people. (At this point, each person will be paid $100 per event and is expected to work 3 events per month). Office rent is estimated to be a flat rate of $1,200 per month. Utilities for the rented office space are estimated to be $300 per month. The office space Janelle plans to rent is unfurnished. She plans to purchase $15,000 worth of furniture and fixtures at the beginning of Year 1. The furniture and fixtures will have a useful life of 15 years. Janelle will also need to buy some computers and other office equipment that she will purchase for $10,000 also at the beginning of Year 1. The office equipment will have a useful life of 5 years. Both t furniture and fixtures as well as the equipment will be depreciated on a straight-line basis (Assume zero salvage value for calculations). HINT: Fixed Assets Accumulated Depreciation = 'Net Fixed Assets Janelle is asking for a 3-year bank loan for $60,000 to be funded on Dayl of Year 1. The estimated interest on the loan is 3% (assume simple interest). She will pay the loan back in $20,000 installments starting in Year 2. Interest is due at the end of each year and paid in January of the following year. (Assume interest is paid on the principal balance still outstanding at year-end). The tax rate for JH Events is 35%. Taxes for the year just ended are paid in the first quarter of the following year. Janelle will invest $30,000 of her own money and from family and friends, before the beginning of the year, to start the business. This $30,000 investment of capital is also the beginning bank balance of Year 1. Schedule of expected year-end balances of selected accounts: 5,000, Year 1 Year 2 Year 3 Year 4 Year 5 Accounts 10,000 12,000 8,000 6,000 10,000 Receivable Accounts 2,000 4,000 6,000 9,000 Payable Customer 1,500 2,000 3,000 4,000 5,000 Deposits At the end of Year 2, Janelle will purchase an insurance policy to help cover the business. The policy has a term of 3 years and coverage starts at the beginning of Year 3. The policy costs $12,000. . During Year 3, Janelle plans to personally invest $10,000 of additional capital into the business. . Chart of Accounts T All accounts listed here should be included in your financial statements. Cash Accounts Receivable Prepaid Insurance Furnitures & Fixtures Equipment Accounts Payable Customer Deposits Interest Payable Taxes Payable . . . I Bank Loan . Capital Retained Earnings Revenue Cost of Sales Advertising Equipment Rental Wages Office Rent Utilities Insurance Expense Depreciation Interest Expense Income Taxes . Additional Instructions You must use the given Excel template attached to this assignment. The three financial statements are interconnected. Where applicable, reference the appropriate cells from other tabs. Also, use formulas within the cells where applicable. (Instructors may deduct points for not using cell references and formulas.) There are some formulas already included in various cells - do not alter these formulas. Some cells have additional notes (cells marked with a red triangle in the upper right-hand corner, hover over the triangle to see the note). Review Chapter 4 for helpful information in completing the Cash Flow Statement, The shaded areas are for data input. (NOTE: You will need to enter formulas to calculate subtotals on the 'Cash Flow Statement' tab for each major category) > On each tab there is an area to keep track of the various assumptions. The column labeled 'Assumptions' is to make note of any numbers, percentages, etc. relevant to that line item. The column labeled 'Assumption Explanations' is to help keep track of the 'Forecasting Assumptions from above. (You can copy and paste the assumptions onto the relevant line item). On the Ratios'tab there is an area to layout the formulas and show your work. There is a grading area on each tab that is being calculated as you input information. Please use this area to see where any mistakes are being made. You must upload your file to Blackboard under Week 5 Assignments (Include your name as part of the file name). Go to the Assignment, scroll down to "Attach Local File" and click Browse to select YOUR file, then hit SUBMIT. Evaluation Criteria for: Assignment 2 (100 points) Income Statement Gross Margin - 5 points (15%) Operating Income - 5 points Net Income - 5 points 15 points Balance Sheet (15%) 15 points Assets - 5 points Liabilities - 5 points Stockholder's Equity - 5 points Statement of Cash Flows (20%) Cash flows from operating activities - 5 points Cash flows from investing activities - 5 points Cash flows from financing activities - 5 points Ending Cash balance - 5 points 20 points Ratios (50%) Ratios - 45 points (1 point for each ratio - 9 ratios across 5 years) 50 points Ratio Analysis - (0-5 points) A score of 5 will be awarded for responses that fully addresses all questions listed in the text box. Response must be reasonable and logical *Refer to the grading area on each tab within the Excel Workbook. 1