Part 5: Financials (Topic 6)

A projected financial statement analysis seeks to forecast the impact of various implementation decisions. The pro forma financial statement can be part of the risk analysis of strategic plan. The goal of this assignment is to ensure your strategic plan is viable financially. In other words, does it create value for the firm?

Consider the cost structure and revenue streams for your strategic initiative plan. Research and data collected so far and will likely change once your product or service is commercialized. Each statement should address financial components of features, expenses, and sales of your product or service. It is typical for net income to be negative at this point. Do not assume that you have sales at this point unless you have sold your product or service.

Research the following if your plan is a market expansion plan for an existing organization, or a mergers and acquisitions plan:

1. Balance sheet
2. Income statement
3. Statement of cash flow
4. Fixed and variable expenses
5. A projected budget
6. Breakeven analysis

Complete the ?Projected Financial Statement Analysis (Pro Forma 3-Year Financial Plan)?including the ?Questions? tab, ?12 Month P& L" tab, ?Year 1? tab, "Year 2 P&L? tab, and ?Year 3 P&L? tab. The first year is monthly and the second and third year are presented quarterly. Please note the questions in the ?Questions? tab may be answered at different points in completing the Profit and Loss information.

Projected Financial Statment Analysis (3-Year Financial Plan). Questions What is the vital financial information needed to determine the viability of your plan ? What ratios will you use to determine if the proposed plan is a success? What other, nonfinancial, information did you use to put your plan together? Consider the assumptions made when completing Part 3. What assumptions are made? List the assumptions that you used to formulate this plan. Discuss the financial results from your Pro Forma projections. Include the net income results, breakeven analysis, and required expenses to commercialize your product or service. Explain how you would determine your pricing model. What seems most appropriate for your business and industry in which you will compete? Identify your cost structure. Is your business model cost-driven or value driven? Justify your selection. Review your decision for a revenue model. Based on the financial statements, will this model generate a profit? Provide evidence to prove it. Where are you getting capital to meet your strategic initiative? What terms will be most likely deemed acceptable? Response Additional considerations Projected Financial Statment Analysis (3-Year Financial Plan). Did you have to reevaluate (go back) why? Profit and Loss Statement Instructions Give careful thought to the headings. Expand the sales income and expenses area if your business has distinct categories (e.g. a restaurant may have food sales and beverage sales listed separately and cost of s Month One Two Three Four Five Six Seven Eight Nine Ten Income Sales Sale of goods/services Sundry Income (e.g. Commission earned, frachise fees etc.) Etc. Total Sales Less Discounts/Commissions Sales Discounts given Sales Commissions paid Total Discounts/ Commissions Total Net Income Cost of Sales Opening Stock Stock Purchased Less Closing Stock Total Cost of Sales Gross Profit Expenses General & Administrative Bank charges Credit card commission Consultant fees Office Supplies License fees Business insurance Etc. $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ $ - $ $ $ - $ $ $ - $ $ $ - $ $ $ - $ $ $ - $ $ $ - $ $ $ - $ $ $ - $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ $ $ $ $ $ - $ $ $ $ $ $ $ - $ $ $ $ $ $ $ - $ $ $ $ $ $ $ - $ $ $ $ $ $ $ - $ $ $ $ $ $ $ - $ $ $ $ $ $ $ - $ $ $ $ $ $ $ - $ $ $ $ $ $ $ - $ $ $ $ $ $ $ - Total General & Administrative Marketing & Promotional Advertising Promotion - General Promotion - Other Etc. Total Marketing & Promotional Operating Expenses Newspapers & magazines Parking/Taxis/Tolls Entertainment/Meals Travel/Accomodation Laundry/dry cleaning Cleaning & cleaning products Sundry supplies Equipment hire Etc. Total Operating Expenses Motor Vehicle Expenses Fuel Vehicle service costs Tyres & other replacement costs Insurance Registrations Total Motor Vehicle Expenses Website Expenses Domain name registration Hosting expenses etc Total Website Expenses Employment Expenses Permanent Salaries/Wages PAYE Superannuation Other - Employee Benefits $ 12.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - Recruitment costs $ Total Perm. Employment Expens $ Casual Salaries/Wages $ PAYE $ Superannuation $ Other - Employee Benefits $ Recruitment costs $ Total Casual Employment Expen $ Workcover Insurance $ Total Employment Expenses $ Occupancy Costs Electricity/Gas $ Telephones $ Property Insurance $ Rates $ Rent $ Repair & maintenance $ Waste removal $ Water $ Etc. $ Total Occupancy Costs $ Other Expenses Add an expense description here $ Add an expense description here $ Add an expense description here $ Add an expense description here $ Add an expense description here $ Add an expense description here $ Add an expense description here $ Total Other Expenses $ Total Expenses $ Month Net Profit / (Loss) $ Total Year to Date Net Profit / (Loss) $ - $ $ - $ $ - $ $ - $ $ - $ $ - $ $ - $ $ - $ $ - $ $ - - $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ - - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - - $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - cost of sales for each also sep Eleven Twelve $ - $ - $ $ $ - $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ - $ - $ - $ - $ $ $ $ $ $ $ - $ $ $ $ $ $ $ - $ - $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ - $ $ - $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ - $ - $ - $ - $ - Profit and Loss Statement Instructions Give careful thought to the headings. Expand the sales income and expenses area if your business has distinct categories (e.g. a restaurant may ha Quarter Income Sales Sale of goods/services Sundry Income (e.g. Commission earned, frachise fees etc.) Etc. Total Sales Less Discounts/Commissions Sales Discounts given Sales Commissions paid Total Discounts/ Commissions Total Net Income Cost of Sales Opening Stock Stock Purchased Less Closing Stock Total Cost of Sales Gross Profit Expenses General & Administrative Bank charges Credit card commission Consultant fees Office Supplies License fees Business insurance One Two Three Four Annual total $ - $ - $ - $ - $ - $ $ $ - $ $ $ - $ $ $ - $ $ $ - $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - Etc. Total General & Administrative Marketing & Promotional Advertising Promotion - General Promotion - Other Etc. Total Marketing & Promotional Operating Expenses Newspapers & magazines Parking/Taxis/Tolls Entertainment/Meals Travel/Accomodation Laundry/dry cleaning Cleaning & cleaning products Sundry supplies Equipment hire Etc. Total Operating Expenses Motor Vehicle Expenses Fuel Vehicle service costs Tyres & other replacement costs Insurance Registrations Total Motor Vehicle Expenses Website Expenses Domain name registration Hosting expenses etc Total Website Expenses Employment Expenses Permanent Salaries/Wages PAYE Superannuation $ $ - $ 12.00 $ - $ $ - $ $ - $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - Other - Employee Benefits Recruitment costs Total Perm. Employment Expe Casual Salaries/Wages PAYE Superannuation Other - Employee Benefits Recruitment costs Total Casual Employment Exp Workcover Insurance Total Employment Expenses Occupancy Costs Electricity/Gas Telephones Property Insurance Rates Rent Repair & maintenance Waste removal Water Etc. Total Occupancy Costs Other Expenses Add an expense description here Add an expense description here Add an expense description here Add an expense description here Add an expense description here Add an expense description here Add an expense description here Total Other Expenses Total Expenses Month Net Profit / (Loss) $ $ $ - $ $ $ - $ $ $ - $ $ $ - $ $ $ - $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ - $ - $ - $ - $ - $ - Total Year to Date Net Profit / (Loss) $ - $ - $ - $ - $ - Profit and Loss Statement Instructions Give careful thought to the headings. Expand the sales income and expenses area if your business has distinct categories (e.g. a restaurant may have Quarter Income Sales Sale of goods/services Sundry Income (e.g. Commission earned, frachise fees etc.) Etc. Total Sales Less Discounts/Commissions Sales Discounts given Sales Commissions paid Total Discounts/ Commissions Total Net Income Cost of Sales Opening Stock Stock Purchased Less Closing Stock Total Cost of Sales Gross Profit Expenses General & Administrative Bank charges Credit card commission Consultant fees Office Supplies License fees Business insurance One Two Three Four Annual total $ - $ - $ - $ - $ - $ $ $ - $ $ $ - $ $ $ - $ $ $ - $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - Etc. Total General & Administrative Marketing & Promotional Advertising Promotion - General Promotion - Other Etc. Total Marketing & Promotional Operating Expenses Newspapers & magazines Parking/Taxis/Tolls Entertainment/Meals Travel/Accomodation Laundry/dry cleaning Cleaning & cleaning products Sundry supplies Equipment hire Etc. Total Operating Expenses Motor Vehicle Expenses Fuel Vehicle service costs Tyres & other replacement costs Insurance Registrations Total Motor Vehicle Expenses Website Expenses Domain name registration Hosting expenses etc Total Website Expenses Employment Expenses Permanent Salaries/Wages PAYE Superannuation $ $ - $ 12.00 $ - $ $ - $ $ - $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - Other - Employee Benefits Recruitment costs Total Perm. Employment Expens Casual Salaries/Wages PAYE Superannuation Other - Employee Benefits Recruitment costs Total Casual Employment Expen Workcover Insurance Total Employment Expenses Occupancy Costs Electricity/Gas Telephones Property Insurance Rates Rent Repair & maintenance Waste removal Water Etc. Total Occupancy Costs Other Expenses Add an expense description here Add an expense description here Add an expense description here Add an expense description here Add an expense description here Add an expense description here Add an expense description here Total Other Expenses Total Expenses Month Net Profit / (Loss) $ $ $ - $ $ $ - $ $ $ - $ $ $ - $ $ $ - $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ - $ - $ - $ - $ - $ - Total Year to Date Net Profit / (Loss) $ - $ - $ - $ - $