Assessment Description The purpose of this assignment is to build and defend financial projections for your business idea. This includes estimating units sold, revenue, and costs for the first 3 years...

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Assessment Description

The purpose of this assignment is to build and defend financial projections for your business idea. This includes estimating units sold, revenue, and costs for the first 3 years (12 Quarters) of the business.



Part 1


Build a pro forma Excel sheet estimating revenue and all operating cost items of the business for each of the first 3 years (12 quarters) of operation. Review the pro forma examples provided in the topic Resources. Pro forma estimates should be based on researched information and rational assumptions.


APA style is not required, but solid academic writing is expected.



Part 2


Write a 750-1,000-word summaryof your pro forma spreadsheet. Include the following items:



  1. Describe how you developed the pro forma projected expenses and operating costs.

  2. Explain your revenue estimates, variable costs, fixed costs, margin, and how your arrived at your figures.


While APA style is not required for the body of this assignment, solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelines, which can be found in the APA Style Guide, located in the Student Success Center.



General Requirements


Together, the Excel spreadsheet and summaryshould define and defend financial projections for your business idea as if you were presenting to key stakeholders.Submit both the pro forma Excel spreadsheet and the Word document.


This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.


You are required to submit this assignment toLopesWrite. A link to theLopesWritetechnical support articles is located in Class Resources if you need assistance.

Answered 4 days AfterAug 31, 2022

Answer To: Assessment Description The purpose of this assignment is to build and defend financial projections...

Tanmoy answered on Sep 02 2022
73 Votes
Financial Projections of Your Business Idea        4
FINANCIAL PROJECTIONS OF YOUR BUSINESS IDEA
Table of Contents
Part 1    3
Part 2    4
References    8
Part 1
Proforma Excel Sheet for estimating the Revenue and all Operating Cost items of the business for 3 three ye
ars of operation.
    Particulars
    2021
    2020
    2019
    Sales Revenue
    50000
    45000
    30000
    Cost of Sales
    28000
    22000
    14500
    Gross Profit
    22000
    23000
    15500
    Operating Expenses
    5000
    2500
    1000
    Rent
    500
    300
    200
    Web Hosting
    100
    50
    40
    Advertising
    150
    75
    50
    Total Operating Expenses
    5750
    2925
    1290
    Operating Income
    16250
    20075
    14210
12 Quarters Estimates of Revenue and all Operating Costs items
    Particulars
    2021
    2020
    2019
    
    Q1
    Q2
    Q3
    Q4
    Q1
    Q2
    Q3
    Q4
    Q1
    Q2
    Q3
    Q4
    Sales Revenue
    5000
    10000
    15000
    20000
    5000
    10000
    15000
    15000
    5000
    5000
    10000
    10000
    Cost of Sales
    2500
    6000
    10000
    9500
    2000
    4000
    6000
    10000
    2000
    3500
    5000
    4000
    Gross Profit
    2500
    4000
    5000
    10500
    3000
    6000
    9000
    5000
    3000
    1500
    5000
    6000
    Operating Expenses
    1000
    1500
    1500
    1000
    500
    500
    500
    1000
    250
    250
    250
    250
    Rent
    50
    100
    100
    250
    50
    50
    50
    150
    50
    50
    50
    50
    Web Hosting
    25
    25
    25
    25
    10
    15
    10
    15
    10
    10
    10
    10
    Advertising
    25
    25
    50
    50
    10
    15
    25
    25
    10
    10
    15
    15
    Total Operating Expenses
    1100
    1650
    1675
    1325
    570
    580
    585
    1190
    320
    320
    325
    325
    Operating Income
    1400
    2350
    3325
    9175
    2430
    5420
    8415
    3810
    2680
    1180
    4675
    5675
Projecting an income statement is necessary when structuring a three-statement model. It becomes crucial to get into a practice of projecting the income statement lines items as projected above. For estimating the key line items with respect to the income statement must become the second phase of the process. Thus, each of the line items are the drivers which actually impacts the future values of the company. Further, if we are using a specific financial model which is almost similar to the model structured by another company, then instead of directly imitating the model, we need to simply replace the historical values. The main lines items which need to be forecasted when we are projecting the income statement are the sales revenue, cost of goods sold, specific general expenses, depreciation expenses, tax and interest expenses (CFI, 2022).
Part 2
    The proforma projected expenses was being developed for the years 2019 to 2021. For this we have...
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