Initiate and complete a comprehensive financial plan. The ultimate result will be a set of pro forma financial statements including an Income Statement, Balance Sheet, and Cash Flow Statement. The student will develop requisite assumptions about the dollar values to be budgeted. We will use the profit and loss statement you created in week four to create the first year balance sheet and cash flow statement for your company.
Assume this is the first year of your business and use the uploaded profit and loss statement from year 1 for the purpose of creating your balance sheet and cash flow statement.
Create a properly formatted balance sheet addressing the instructor's findings from previous class assignment by doing the following: Review the revenue and expense items based on comments made by the instructor, if any, from week four to best estimate realistic values for the balance sheet.
Create a properly formatted cash flow statement addressing the instructor's findings from previous class assignment by doing the following: Review the revenue and expense items based on comments made by the instructor, if any, from week four to best estimate realistic values for the cash flow statement.
Conduct an internet search for or use an example located in the textbook as a template to create a properly formatted balance sheet and cash flow statement. I will also provide an example which was posted in class in week four and will repost in week five which shows all three financial statements with sample data and how they are connected and prepared.
Explain the order in which the financial statements are prepared and how they are connected.
Sample Solution