The Financials
lmayhane
discussionweek7.docxYou must use the numbers provided in your NAB Portfolio in your assignments first, then you can add to them. For example, you already have $40, 000 in inheritance (Melinda Cates) and $20,000 in loans from family and friends and you must include the funds you plan to use from the investors.
The plan assumptions must be extracted from the Excel document (setup tab)- sales, personnel and financial assumptions. Check your Excel and clarify what these assumptions are.
Good start with the Excel document. Start your business on July 2019. Be sure to complete the setup tab per the instructions in the Business Plan Financials Guide. Please check and adjust the following:
Sales must be over 1 million by the end of the second year.
• Inventory: the Cost of Goods Sold must equal the total inventory expense. Your inventory expense is higher than COGS and it will cause you to buy more inventory than needed. Please click on the red triangle in the cell for additional information and adjust for assignment 3.
• Adjust your staff budget- you must clarify your personnel and you entered some numbers in error. You must use the people outlined under Note # 3 in the NAB portfolio and add to it.
• Marketing budget- reduce the amount (under $5000 per month)-too high for a startup and with your funds.
• Complete the professional services worksheet and the Capital Investment worksheets per the Financials Guide. They are not completed as required.
• Adjust the blue cells in the income statement, as appropriate. You have errors.
• Check and adjust the cash-flow statement- errors.
• Be sure to also include the information required in the "other assets" line 23 in the balance sheet (see instructions in the guide, under Worksheet # 4) and adjust the errors.
Please adjust for Assignment 3. Make sure your financials reflect the information you used in your business plan (assignments 1-3)
