MS6900 M3A2 Business Plan Breakdown 3 - The Simplified Financial Plan

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Assignment 2: Business Plan Breakdown 3-The Simplified Financial Plan
This is the third milestone of your business plan - the financial plan.
Tasks:
Research the costs, financial statements, cash flow, and risks of your chosen project. Based on your research and the knowledge you have gained from the course, create a simplified 4- to 5-page financial plan including tables and charts. For the financial plan:
- Estimate the capital requirements, use of capital, start-up requirements (if applicable), and other probable costs involved in the implementation and subsequent operation of your project.
- Identify the sources of financing.
- Define a payback period.
- Prepare cash flow projections.
- Prepare a projected balance sheet representing the end of the first calendar year of operations and defining assets and liabilities, both current and long term.
- Prepare income statement projections for the end of the first calendar year of operations, including charts showing gross revenues, gross profit, and net income.
- Define the meaning of a break-even analysis and prepare an analysis appropriate for your project.
- Prepare a ratio analysis, including the definition and value of the following ratios (whichever applicable) - current, quick, debt, debt-to-equity, average inventory turnover, receivables turnover, payables turnover, net sales to working capital, net profit to sales, and net profit to equity.
- Prepare a list of possible risks associated with the implementation and future operation of your project and describe the significance of each of them.
Submission Details:
- By the due date assigned, save your paper as M3_A2_lastname_firstinitial.doc and submit it to the Submissions Area.
- This assignment is worth 100 points and will be graded according to the following rubric.
- Assignment 2 Grading Criteria Maximum Points
- Estimate capital requirements, use of capital, start-up requirements (if applicable), and other probable costs involved in the implementation and subsequent operation of your project. 12
- Identify sources of financing and define a payback period. 8
- Prepare cash flow projections. 12
- Prepare a projected balance sheet representing the end of the first calendar year of operations, and defining assets and liabilities, both current and long term 12
- Prepare income statement projections for the end of the first calendar year of operations, including charts showing gross revenues, gross profit, and net income. 12
- Define the meaning of a breakeven analysis and prepare one to reflect your project. 12
- Prepare a ratio analysis, including the definition and the value of the following ratios (whenever applicable): current, quick, debt, debt to equity, average inventory turnover, receivables turnover, payables turnover, net sales to working capital, net profit to sales, and net profit to equity. 12
- Prepare a list of possible risks associated with the implementation and future operation of your project, and provide significance for each of them. 12
- Write in a clear, concise, and organized manner; demonstrate ethical scholarship in accurate representation and attribution of sources; display accurate spelling, grammar, and punctuation. 8
- Total: 100