2L3 __ll Quesuons FDIIIILlIEI. Response What is the vital financial information needed to determine the viability oi your plan? What ratios will you

A projected financial statement analysis seeks to forecast the impact of various implementation decisions. The pro forma financial statement can be part of the risk analysis of strategic plan. The goal of this assignment is to ensure your strategic plan is viable financially. In other words, does it create value for the firm?

Consider the cost structure and revenue streams for your strategic initiative plan. Research and data collected so far and will likely change once your product or service is commercialized. Each statement should address financial components of features, expenses, and sales of your product or service. It is typical for net income to be negative at this point. Do not assume that you have sales at this point unless you have sold your product or service.

Research the following if your plan is entrepreneurial:

1. Balance sheet
2. Income statement
3. Statement of cash flow
4. Fixed and variable expenses
5. Startup expenses
6. Breakeven analysis

Complete the "Projected Financial Statement Analysis (Pro Forma 3-Year Financial Plan)"including the "Questions" tab, "12 Month P& L" tab, "Year 1" tab, "Year 2 P&L" tab, and "Year 3 P&L" tab. The first year is monthly and the second and third year are presented quarterly. Please note the questions in the "Questions" tab may be answered at different points in completing the Profit and Loss information.

2L3 __ll Quesuons FDIIIILlIEI. Response What is the vital financial information neededto determine the viability oi your plan? What ratios will you use to determine if theproposed olorr is a soooess? What other. nonlinanclal, information did youuse to put your plan together? Consider the assumptions made w hencompleting Part 3. What assumptions aremade? Lisl the assumptions thal you used tolormulate this plan. Discuss the financial results from your ProForma plo|eotlons Include the net incomeresorts, breakeuen analysis, and requirederEnses to commercialize your product orservice Explaln how you w oolo determine your pricingmodel. What seems most appropriate for yourbusiness and industry in w hich you willcompete? Identify your cost structure. Is your busrnessmodel costsdriven or value driven? Justifyyour seleotlon. Fleuiew your decislol'l tor a revenue model.Based on the financial statements. will thismodel generate a prolit? Provide evidence toprove it Where are you getting oapilal to meel yourstrategic initiative? What terms will be mostlikely oeerrreo oooeotoole? Did you have to reevaluate [go back] why? Click to add data Click to add data