You will create an Excel Spreadsheet that will include a pro forma income statement and balance sheet if possible.

You should act as though you are part of a new company, and your job is to create the pro forma income statement and balance sheet. Your team has come up with the following assumptions that you should use to create your pro formas:

• Your company will have only ONE product.
• The price/revenue per unit will be $14.00
• The direct cost for this product is $5.75per unit.
• There will be nine periods in these financials and those periods will be weeks.
• The growth rate for a number of products will be 7% per week (Be sure to round to whole numbers for units.).
• You believe you will sell 90 units in Week 1.
• Marketing expenses will be $450 for the first three weeks and then $350 for the rest of the weeks.
• R&D expenditures will be $150 per week.
• Equipment cost will be $300 before the first week.
• Assume the useful life of your equipment will be 9 weeks.
• Your labor expense will be $360 per week.
• Rent expenses will be $50 per week.
• Assume there will not be any interest on your loan.
• Assume that your income tax rate is 30%.
• The forecast should include 10 days' sales in inventory and that you sell all of your inventory in week 9.
• Assume that you will sell your product for cash and have no accounts receivables.
• Assume that you will pay cash for your expenditures and have no accounts payable except for labor, rent, income tax, and the loan. You will not pay for those four items until the ninth week when you will pay them off.
• You should forecast for a loan that would ensure that you always have at least $100 (starting in week zero) and that you will pay off the loan in the 9th period.

Q1, How much is the difference between the Revenue per unit and the Customer Price per unit?

Q2, How many units of product will you sell in week seven?

Q3, What will your total COGS be for the nine weeks?

Q4, What will your accumulated depreciation be in week five?

Q5, Which financial statement do you record the purchase of the equipment on?

Q6, What is your net income forecast for week 8? (would have to understand the whole income statement and its parts)

Q7, What would your gross margin % be for week 3?

Q8, What would your gross margin % be for week 3?

Q9, What would your inventory be in week 5?

Q10, What would your labor/wages payable be for week 4?

Q11, What would your retained earnings be for week 3?

Q12, How large would your loan have to be to ensure that your forecasts have $100 in one week and more than $100 in the rest of the weeks?

Q13, How much cash would you have in week 4?