Using the same business you started in the first assignment, Your Business Venture, you will continue to build
a financial plan for the business.
Instructions
Write a 4–5 page paper in which you:
Prepare a pro forma balance sheet for the first 12 months of your business. Include the assumptions on which
it is based. Justify your balance sheet.
Prepare a pro forma income statement for the first 12 months of your business. Include the assumptions on
which it is based. Justify your income statement.
Prepare a pro forma cash budget for the first 12 months of your business. Include the assumptions that you
have made when creating the budget. Justify your budget.
Scrutinize tangible and intangible costs of obtaining financial capital for your business start-up to determine
whether the costs justify the implementation of the funding source.
Assume your business is five years old and running profitably and consider how you would grow your business
over the next five years. Determine the specific details that would make the equity approach to valuing your
business worthwhile. Provide a rationale with your response.
Sample Solution