Prepare the Financial Statement Report Start with what you created for that course and add the following information and ratios calculated from the projections for Year 1, 2 and 3 of your business. General Assumptions concerning the financial statements o Minimum of $30,000 loan o Open line of credit to "grease" the cash flow o A minimum of the 50 percent of the business is financed with debt Assumptions for the pro forma financial statements Depreciation Schedule Amortization Schedule Comparison/Analysis of their company's ratio with industry ratios including some, if not all, of the following: Liquidity ratios o Asset Management ratios Financial statements.xlsx Done 3a-Sales 2a-PayrollYear1 Directions 1-StartingPoint 2b-PayrollYrs1-3 Start-up Expenses Year 1 (Starting Balance Sheet) Prepared By Company Nam Owner Company I Fixed Assets Depreciation (years) Notes Amount Not Depreciated Real Estate-Land Real Estate-Buildings I5 Leasebold Imprevements. Equipment 50,000 Furniture and Fistures 180,000 Vehicles Other Total Fixed Assets 230,000 Operating Capital Notes Amount Pre-Opening Salaries and Wages Prepaid Insurance Premiums Inventory Legal and Accounting Fees Rent Deposits 50,000 2.500 250,000 2.500 3,500 Utility Deposits 1,500 Supplies 100,000 Advertising and Promotions 10,000 20,000 Licenses Other Initial Start-Up Costs Working Capital (Cash On Hand) Tetal Operating Capital Total Required Funds 440,000 670,000 Sources of Funding Percentage Totals Loan Rate Term in Months 565,000 84.33% Owner's Equity 15.67% 105,000 Outside Investors Additional Loans or Debt 9.00% 84 Commercial Loan 0.00% 240 Commercial Mortgage 0,00% 9.00% 7.00% Credit Card Debt 0.00% 60 Vehicle Loans Other Bank Debt Total Sources of Funding 0,00% 6.00% 45 5,00% Cell D 42 must equal cell C3 0,00% 36 100,00% 670,000 Total Funding Needed You are fully funded (Balance Existing Businesses ONLY-Calcalating Cash on Hand Cash +Accounts Receivable +Prepaid Expenses 0 -Accounts Payable - Accrued Expenses Tetal Cash on Handi 2b-PayrollYrs irections 1-StartingPoint 2a-PayrollYear1 Balance Sheet Years 1-3 Prepared By Company Name: Company1 Owner Second Year Third Year ASSETS First Year Current Assets 3,373,076.72 7,073,268.784 11,119,018.467 Cash Accounts Receivable Inventory 250,000 250,000 250,000 Prepaid Expenses 126,666.667 63.333.333 Other Initial Costs Total Current Assets 3,749,743.387 7.386,602.117 11,369,018.467 Fixed Assets Real Estate Land Real Estate- Buildings Leasehold Improvements Equipment 0 50,000 Furniture and Fixtures 50,000 50,000 180,000 180,000 Vehicles 180,000 Other 230.000 Total Fixed Assets 230.000 230.000 (Less Accumulated Depreciation) 46,000 92.000 138,000 7,524,602 11.461.018 Total Assets 3,933,743 LIABILITIES & EQUITY Liabilities Accounts Payable Commercial Loan Balance Commercial Mortgage Balance Credit Card Debt Balance 0 Vehicle Loans Balance C 0 Other Bank Debt Balance 0 Line of Credit Balance Total Liabilities Equity Common Stock 670,000 670,000 670,000 Retained Earnings 3,263,743.387 6,854,602.117 10,791,018.467 Dividends Dispersed/Owners Draw 0 Total Equity 7,524,602.117 3,933,743.387 11461,018.467 Total Liabilities and Equity 3,933,743 7,524,602 11,461,018 Balance sheet in or out of balance? Balanced Balanced! Balanced
