FIN 571 Week 4 Individual Assignment "Analyzing Pro Forma Statements"

Week 4 Analyzing Pro Forma Statements

Decide upon an initiative you want to implement that would increase sales over the next five years, (for example, market another product, corporate expansion, and so on).

Using the sample financial statements provided in this assignment, create pro forma statements of five year projections that are clear, concise, and easy to read. Be sure to double check the calculations in your pro forma statements. Make assumptions that support each line item increase or decrease for your forecasted statements.

Discuss and interpret the financials in relation to the initiative. Make recommendations on potential discretionary financing needs.

Write a 350 - 700 word analysis of the company's short term and long term financing needs and determine strategies for the company to manage working capital. Be sure to include both an Income Statement pro forma as well as a Balance Sheet pro forma financial statement.