1. What is the purpose of a Sales Forecast statement?
2. What does a Sales Forecast tell the bank manager about your business plan and about you, one of the owners of the new business?
3. Why were you asked to undertake an industry analysis using a tool like Porter's Five Forces?
4. Did you intend to purchase any capital items during the first three years of your business? What are they?
5. Why does the Canada Revenue Agency not allow you to deduct the entire cost of a newly purchased capital item in the year in which it was purchased?
6. What is the purpose of a cashflow statement? What does it tell a bank manager who might be reviewing your financial statements?
7. Why were you asked to Stress Test various aspects of your business? What is the purpose of such an exercise?
8. What is the purpose of liquidity ratios to you as the business owner and to the bank official who is reviewing your business plan?
9. What does the term Quick Ratio mean? How is it calculated? In terms of your business plan, what is the Year 3 Quick Ratio? Show all figures and explain how you calculated them.
10. What does the Debt to Equity ratio measure? How is it calculated? In terms of your business plan, what is the Year 3 Debt to Equity Ratio? Show all figures and explain how you calculated them.