Follow directions and cite please
After reading yours I realized that maybe I put to much information in mine to try to make my proposal sound better. I felt like I tried to explain the "why" to much. If I had any advice for you on this one it would be to maybe put just a little more detail in each section to take this consideration to an exemplary level. Adding some of the economic indicators or short term goals within the current market could assist in showing financial
Your financial analysis sets a solid foundation for determining the project's viability. One suggestion is to perform a sensitivity analysis to determine how fluctuations in important factors may affect profitability. Changes in material costs, sales commissions, or unanticipated increases in transportation charges can all have a big impact on your net profit and break-even point. Sensitivity analysis can help you plan for uncertainty and make educated decisions by identifying the most important elements influencing financial performance (CFl, n.d). Furthermore, including a cash flow statement alongside your income statement and balance sheet would provide a more complete view of your liquidity. This is especially beneficial for guaranteeing that operational expenses can be met without requiring additional funding.
You've done a great job presenting the financial aspects of your project, especially with the inclusion of the break-even analysis, NPV, and ROI calculations. These elements really help support the financial viability of your proposal. That said, I'm having a hard time fully understanding the Assessment and Interpretation of Financial Statements section, specifically the income statement portion. It looks like there might be a misstatement in the net profit line.
The equation reads: $250,000 - ($95,000 + $65,000) - $90,000, which seems to subtract the net profit again. If your total costs are $160,000 and your revenue is $250,000, the net profit should be $90,000, so that last part may just be a formatting error. Reformatting this section into a clean, traditional income statement table as shown in the figure shared by Ebert and Griffin (2023) below, might help with clarity and alignment with standard reporting practices. It would make it easier to follow and present a more polished view of the project's financial health.
Company An Income Statement As of December 31, 2022
Revenue Sales Consulting Cost of Revenue Gross Profit
Operating Expenses
Administrative
Marketing Selling Total
Operating Expenses
Operating Income (before tax)
Income taxes
Net Income
$ 584,000.00 60,000.00
(151,000.00)
$ 493,000.00 $ (75,000.00) (20,000.00) (16,000.00) (34,000.00)
($111,000.00) $ 382,000.00 $ 348,000.00
Also, add these please:
In addition to the feedback provided by your fellow students, here are my comments.
1) There is room for improvement in your Income Statement
2) You need to provide some description as to how you arrived at your Cost Numbers and your Revenue numbers
3) For your Revenue number; how many clients does that equate to?
4) Costs need to be explained more fully
5) There is no budget mentioned; that should be front and center
6) Well done on the Financial Ratios