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2. Prepare the Financial Statement Report (which was started in BUS 538 Accounting for Managers) Start with what you created for that course and ad the following information and ratios calculated from the projections for Year 1 and 3 of your business. (2 hour / 4 hours) (W8.1-2) General Assumptions concerning the financial statements o Minimum of $30,000 loan Open line of credit to "grease" the cash flow O o A minimum of the 50 percent of the business is financed with debt Assumptions for the pro forma financial statements Depreciation Schedule Amortization Schedule Comparison/Analysis of their company's ratio with industry ratios including some if not all, of the following: Liquidity ratios o Asset Management ratios Financial Leverage Management ratios Profitability ratios OSearch Financial statements 2 Excel AutoSave Off ile Home Formulas Review View Help Insert Draw Page Layout Data 85 A B D E Fixed Assets Depreciation (years) Amount Notes Real Estate-Land Not Depreciated Real Estate-Buildings Leasehold Improvements Equipment Furniture and Fixtures 15 7 7 50,000 Vehicles 180,000 5 Other 5 Total Fixed Assets S 230,000 Operating Capital Amount Notes Pre-Opening Salaries and Wages Prepaid Insurance Premiums Inventory Legal and Accounting Fees 50,000 2,500 250,000 2,500 Rent Deposits 3,500 Utility Deposits 1,500 Supplies 100,000 Advertising and Promotions Licenses 10,000 20,000 Other Initial Start-Up Costs Working Capital (Cash On Hand) Total Operating Capital Total Required Funds 440,000 670,000 Directions 1-StartingPoint 2a-PayrollYear1 2b-PayrollYrs1-3 3a-SalesForecastYear1 3b-SalesForecastYrs1- Sources of Funding Loan Rate Term in Months Monthly Percentage Totals Owner's Equity 32.84 % 220,000 Outside Investors 0.00% Additional Loans or Debt Commercial Loan 67.16% 9.00% 84 450,000 9.00 % Commercial Mortgage 240 0.00% 0.00 % Credit Card Debt 7.00% 60 0.00 % 6.00 % 48 Vehicle Loans 0.00 % 100.00 % | $ 5.00 % Other Bank Debt 36 Total Sources of Funding Total Funding Needed 670,000 Cell D 42 must equal cell C31 S You are fully funded (Balanced) Calculating Cash on Hand Existing Businesses ONLY- Note: For existing businesses, this should be the "bucket" of cash plus receivables that will be turned into Cash + Accounts Receivable cash, minus payables that will be paid out in cash in the near term (1e. in the first months of the plan) +Prepaid Expenses Accounts Payable Accrued Expenses Total Cash on Hand Directions 1-StartingPoint 2b-PayrollVrs1-3 3a-SalesForecastYear1 3b-SalesForecastYrs1-3 4-Additi 2a-PayrollYear 2. Prepare the Financial Statement Report (which was started in BUS 538 Accounting for Managers) Start with what you created for that course and ad the following information and ratios calculated from the projections for Year 1 and 3 of your business. (2 hour / 4 hours) (W8.1-2) General Assumptions concerning the financial statements o Minimum of $30,000 loan Open line of credit to "grease" the cash flow O o A minimum of the 50 percent of the business is financed with debt Assumptions for the pro forma financial statements Depreciation Schedule Amortization Schedule Comparison/Analysis of their company's ratio with industry ratios including some if not all, of the following: Liquidity ratios o Asset Management ratios Financial Leverage Management ratios Profitability ratios OSearch Financial statements 2 Excel AutoSave Off ile Home Formulas Review View Help Insert Draw Page Layout Data 85 A B D E Fixed Assets Depreciation (years) Amount Notes Real Estate-Land Not Depreciated Real Estate-Buildings Leasehold Improvements Equipment Furniture and Fixtures 15 7 7 50,000 Vehicles 180,000 5 Other 5 Total Fixed Assets S 230,000 Operating Capital Amount Notes Pre-Opening Salaries and Wages Prepaid Insurance Premiums Inventory Legal and Accounting Fees 50,000 2,500 250,000 2,500 Rent Deposits 3,500 Utility Deposits 1,500 Supplies 100,000 Advertising and Promotions Licenses 10,000 20,000 Other Initial Start-Up Costs Working Capital (Cash On Hand) Total Operating Capital Total Required Funds 440,000 670,000 Directions 1-StartingPoint 2a-PayrollYear1 2b-PayrollYrs1-3 3a-SalesForecastYear1 3b-SalesForecastYrs1- Sources of Funding Loan Rate Term in Months Monthly Percentage Totals Owner's Equity 32.84 % 220,000 Outside Investors 0.00% Additional Loans or Debt Commercial Loan 67.16% 9.00% 84 450,000 9.00 % Commercial Mortgage 240 0.00% 0.00 % Credit Card Debt 7.00% 60 0.00 % 6.00 % 48 Vehicle Loans 0.00 % 100.00 % | $ 5.00 % Other Bank Debt 36 Total Sources of Funding Total Funding Needed 670,000 Cell D 42 must equal cell C31 S You are fully funded (Balanced) Calculating Cash on Hand Existing Businesses ONLY- Note: For existing businesses, this should be the "bucket" of cash plus receivables that will be turned into Cash + Accounts Receivable cash, minus payables that will be paid out in cash in the near term (1e. in the first months of the plan) +Prepaid Expenses Accounts Payable Accrued Expenses Total Cash on Hand Directions 1-StartingPoint 2b-PayrollVrs1-3 3a-SalesForecastYear1 3b-SalesForecastYrs1-3 4-Additi 2a-PayrollYear

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