Financial statemnt

MGMT 3783 Assignment: Pro

-

Forma Financial Statements

, S

ummer

Semester 2018

Students will demonstrate their financial literacy by preparing pro

-

forma financial statements (financial projections) for

a hypothetical business venture. These statements will consist of

:

student’s assumptions

,

an introduction

, a

nd

/or

an

overview of the busin

ess

;

sources and uses of funding

;

a one

-

year cash flow projection (broken into each of twelve

months)

;

an annual income statement, a

n

opening day

(day 1) and ending (end of year 1) balance sheet

; and

a

breakeven analysis.

Students must also submit their Excel file

.

Up to

30

0 points will be awarded as

shown below:

Component

Points Available

1

Assumptions,

Intr

od

uction, and

Overview

of Business

30

2

Sources & Uses of Funds

30

3

Cash Flow Statement

45

4

Income Statement

45

5

Opening Day

Balance Sheet

45

6

End of Year 1 Balance Sheet

45

7

Breakeven Analysis

30

8

Excel File

30

In order to get started for this assignment, students should first determine

the

type of business

for which

they want to

create the statements (i.e., wholesale, retail, manufacturing, service, etc.) and what p

roducts or services they propose

selling (i.e., furniture, clothing, food service, groceries, tax preparation, tattoo parlor, etc.).

Once the student has determined the business

for which they will be preparing statements, he or she

should visit

www.bizstats.com

to obtain

financial statement standards for that industry. I

f industry standards are not available, the

student may visit me

in person during normal office hours. If those times are not

convenient, st

udents may request an

appointment by calling 940

-

397

-

4366 or e

-

mailing [email protected]. To complete this assignment in a timely

manner, the student should obtain the financial statement standards no later than

Thurs

d

ay,

June 14

th

.

Based on the indu

stry selected, the student should then select a proposed location. While a specific location (address) is

not required, students may find that selecting a specific location aids in their gathering of start

-

up cost estimates.

(Note:

a good resource for site selection is

www.loopnet.com

)

.

With the location proposed, the

student should then begin

gathering estimates of his or her expected start

-

up and operating expenses as discussed in class and in the sample

business plan materials provided. With these costs gathered, the student should next prepare an introduction/overv

iew

of the business as well as the assumptions inherent in starting the venture. This information should be compiled using

word

-

processing software but should be submitted as a single .pdf document.

Once the student has completed the introduction & assumpt

ions sections, he or she should prepare the pro

-

forma

financial statements as discussed in class and in the sample business plan materials provided. The pro

-

forma financial

statements should be prepared using Microsoft Excel or a similar spreadsheet softwa

re,

which will be uploaded via the

“DropBox” function in D2L. In addition, students will upload the document

as a single .pdf document

that appears the

same way that the document would print on paper

.

Please note that students who use Apple or Macbook com

puters

may have problems combining these documents into a single .pdf, but you may save your document onto a jump drive

and create the .pdf in one of the numerous computer labs located throughout the Dillard College of Business

Administration.

The purpose

of the requirement that the docume

nts be submitted as

.pdf

(s)

is to ensure that the materials submitted

exactly match the students’ intentions. In other words, the .pdf documents that are submitted should look exactly as

they would if printed on paper. The .pdf document

(s) and the Excel file

must be submitted in D2L

using the “DropBox”

function on the “Assessments” dropdown. The deadline for submission is

Friday, July 6

th

at 11:59 PM. Late entries

will

not be accepted

,

so please plan accordingly.

MGMT 3783 Assignment: Pro-Forma Financial Statements, Summer Semester 2018

Students will demonstrate their financial literacy by preparing pro-forma financial statements (financial projections) for

a hypothetical business venture. These statements will consist of: student’s assumptions, an introduction, and/or an

overview of the business; sources and uses of funding; a one-year cash flow projection (broken into each of twelve

months); an annual income statement, an opening day (day 1) and ending (end of year 1) balance sheet; and a

breakeven analysis. Students must also submit their Excel file. Up to 300 points will be awarded as shown below:

Component Points Available

1 Assumptions, Introduction, and Overview of Business 30

2 Sources & Uses of Funds 30

3 Cash Flow Statement 45

4 Income Statement 45

5 Opening Day Balance Sheet 45

6 End of Year 1 Balance Sheet 45

7 Breakeven Analysis 30

8 Excel File 30

In order to get started for this assignment, students should first determine the type of business for which they want to

create the statements (i.e., wholesale, retail, manufacturing, service, etc.) and what products or services they propose

selling (i.e., furniture, clothing, food service, groceries, tax preparation, tattoo parlor, etc.).

Once the student has determined the business for which they will be preparing statements, he or she should visit

www.bizstats.com to obtain financial statement standards for that industry. If industry standards are not available, the

student may visit me in person during normal office hours. If those times are not convenient, students may request an

appointment by calling 940-397-4366 or e-mailing [email protected]. To complete this assignment in a timely

manner, the student should obtain the financial statement standards no later than Thursday, June 14

th

.

Based on the industry selected, the student should then select a proposed location. While a specific location (address) is

not required, students may find that selecting a specific location aids in their gathering of start-up cost estimates. (Note:

a good resource for site selection is www.loopnet.com). With the location proposed, the student should then begin

gathering estimates of his or her expected start-up and operating expenses as discussed in class and in the sample

business plan materials provided. With these costs gathered, the student should next prepare an introduction/overview

of the business as well as the assumptions inherent in starting the venture. This information should be compiled using

word-processing software but should be submitted as a single .pdf document.

Once the student has completed the introduction & assumptions sections, he or she should prepare the pro-forma

financial statements as discussed in class and in the sample business plan materials provided. The pro-forma financial

statements should be prepared using Microsoft Excel or a similar spreadsheet software, which will be uploaded via the

“DropBox” function in D2L. In addition, students will upload the document as a single .pdf document that appears the

same way that the document would print on paper. Please note that students who use Apple or Macbook computers

may have problems combining these documents into a single .pdf, but you may save your document onto a jump drive

and create the .pdf in one of the numerous computer labs located throughout the Dillard College of Business

Administration.

The purpose of the requirement that the documents be submitted as .pdf(s) is to ensure that the materials submitted

exactly match the students’ intentions. In other words, the .pdf documents that are submitted should look exactly as

they would if printed on paper. The .pdf document(s) and the Excel file must be submitted in D2L using the “DropBox”

function on the “Assessments” dropdown. The deadline for submission is Friday, July 6

th

at 11:59 PM. Late entries will

not be accepted, so please plan accordingly.