Homework

Before you get started on this exercise, you will need the textbook (Chapter 16- The Financials), the Business Plan Financials Guide and Excel document, and NAB Company Portfolio.

This Assignment has two sections:

Section I: The Business Plan financials (Excel document)- complete this first

Using your NAB Company Portfolio and the first year of your business plan for the company, you will complete all the worksheets in the entire Excel document in order, so that you can complete the Income Statement, Cash Flow Projections, and Balance Sheet sections from the Business Plan Financials spreadsheet.

Notes:

The setup and marketing worksheet should already be completed from assignment 2.

Use the instructions provided in the Business Plan Financials Guide to help you complete this document, as well as the NAB Portfolio (pages 4-8).

VIDEO GUIDE TO COMPLETING THE EXCEL DOCUMENT

To submit: Attach the completed Excel worksheet to the discussion thread (click on the Add Content button under the Post button to access the attachment option when you are ready to submit, attach your document and then click submit)

Section II: Financial section of the business plan (type in a Word document and paste in the discussion window). You will have 3 headings as outlined below:

1.Sources and use of funds

Outline the funds you have currently (see portfolio pages 4 and 8) and the ones you intend to raise (you need to raise funds per the portfolio page 4)

Explain how do you plan to use the funds (a clear plan on how you will use the money)

Notes: Before addressing this section please review:

-Sources and Use of Funds section on page 312 of your textbook

-Sample plan on page 325 for an idea on how to address this section.

-The Cap Invest (Capital Investments and loans worksheet) in the Excel document

2.Plan assumptions

The Financial plan must be based on decisions and facts. Investors want to know if this plan is realistic. In this section you will outline your plan assumptions.

Notes: Before addressing this section please review:

Article about the 5 key assumptions of your business plan. https://www.thebalancesmb.com/question-key-assumptions-in-your-business-plan-1200853

Sample plan in your textbook page 326

Assumption sheet in your textbook page 313.

3.Break-even analysis

The break-even point is where you make enough money in revenue to pay your expenses but you do not make money nor you do not lose money. In this section, you need to determine what this break-even point is.

Notes: Before addressing this section please review:

-Page 314 in the textbook about break-even analysis

-The BrkEvn (Break-Even) worksheet in your Excel document. You would have calculated this there.