A pro forma balance sheet

    MORE OF THE BASICS AND BEYOND 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: 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. 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. 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. 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. 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.

Sample Solution

A pro-forma balance sheet is a table of future projections that can assist your company in managing its assets now for better future performance. It can guarantee that there will be no surprises in the future when it comes to paying your expenses, receiving investment returns, and maintaining your inventory in stock. In this blog post, we discussed what pro-forma sheets are, but now let's take a closer look at what will be contained on the final product: Short-term assets are those that are held for a short period of time. Your present cash assets and accounts receivable will be the first two items on your pro-forma balance sheet.
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