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More of the Basics and Beyond Overview Using the same business you started in the first assignment, Your Business Venture, you will continue to build a financial plan for the business

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More of the Basics and Beyond

Overview

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:

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.

This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.

The specific course learning outcome associated with this assignment is:

• Assess whether the costs of obtaining capital for a business justify use of the funding source, and whether equity-based valuation of the business is appropriate.