College of Business

Western Governors University

F. Financial Statements and Projections (3-5 pages) Develop projected financial

statements for the first year of business. You may use the Business Plan Financials Template to prepare this section (see Appendix B or you may create your o!n template. F1. Revenue and Cost stimate- This is the first part of the profit and loss statement. You !ill estimate the revenue (sales and expenses for the first "# months of your business F2. Forecasted Profit and Loss Statement (Month by month for 1st 12 months)

$ere you !ill consider the sales forecast% the operatin& expenses% and the profits. Ta'e the month(by(month revenue estimates of sales and expenses from the revenue and cost estimate (F" and include interest expense to obtain a profit projection for your first year of operations. )t !ill reveal net profit (obtained from subtractin& the interest expense from the profit before interest . The profit before interest is calculated by subtractin& total expenses from total revenue. *xamples of expenses may include+
Salary expenses Payroll expenses General and administrative Repairs and maintenance Marketing and Advertising Accounting and legal Utilities Insurance Taxes (real estate, etc ! Selling "xpenses #t$er expenses (speci%y!

F3. Forecasted Balance Sheet& This statement deals !ith cash and

income and also !ith assets% liabilities% and capital. The balance should result in the debit and credit balances endin& up e,ual.
!1. Financial Projections (1-" pages!& Summari'e t$e %inancial pro(ections and t$e assumption used in estimating t$e pro(ections in section )

*apstone *ourse o% Study Plan + ,-./-.//0

"

College of Business

Western Governors University

!1a- #rea$even Point- )nclude an estimate of income and expenses. )t determines

!hether or not your business !ill brin& in enou&h money to meet its costs. This method is used to determine the exact point at !hich the business ma'es neither ta'es a loss nor ma'es a profit. )t is calculated at a point !here sales have &ro!n at a &reater rate than costs and the t!o lines cross.

!1%-Financial Position+ )nclude the estimated financial position of the company at the end of the first year and the estimated capital-investment needs. .a'e sure to include any assumptions you used in estimatin& this information. !1c-Capital&'nvestment (eeds+ *stimate the capital and investment needs for your company. Be sure to discuss any e,uity contributions your company !ill need alon& !ith other start up costs re,uired.

Financial /tatement of the Business+

*apstone *ourse o% Study Plan + ,-./-.//0

College of Business

Western Governors University

*apstone *ourse o% Study Plan + ,-./-.//0

College of Business

Western Governors University

*apstone *ourse o% Study Plan + ,-./-.//0

College of Business

Western Governors University

*apstone *ourse o% Study Plan + ,-./-.//0