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FIN 571 Analyzing Pro Forma Statements

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  • Budget: $20 Normal
  • Subjects: Business | Ethnicity |
  • Due on 23 Jul, 2018 08:46:54
  • Asked on 23 Jul, 2018 08:46:54
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FIN 571 Analyzing Pro Forma Statements

Description

Decide upon an initiative you want to implement that would increase sales over the next five years, (for example, market another product, corporate expansion, and so on).

Using the sample financial statements, create pro forma statements of five year projections that are clear, concise, and easy to read. Be sure to double check the calculations in your pro forma statements. Make assumptions that support each line item increase or decrease for your forecasted statements.

Discuss and interpret the financials in relation to the initiative. Make recommendations on potential discretionary financing needs.

Write a 450 - 700 word analysis of the company's short term and long term financing needs and determine strategies for the company to manage working capital.

 

XYZ Company, INC.

Profit and Loss Statement

Year Ended December 31, 20XX

 

% Sales                                                                      1,750,450

Returns and allowances                                          2,752

Net Sales              1,747,698   100.0

 

Cost of Sales

Beginning Inventory

50,000

 

Purchases

610,162

Production Labor

420,108

Ending Inventory

30,000

Total Cost of Sales

1,050,270

60.1

Gross Profit

697,428

39.9

 

Selling Expense

Wages

75,000

 

Commissions

25,000

Marketing

25,000

Total Selling Expenses

125,000

7.2

 

Operating Expense

Salaries                                                               225,000

Payroll taxes                                                          29,000

Benefits                                                                 27,000

Office Supplies                                                           500

Postage                                                                      250

Professional Fees                                                   2,000

Telephone                                                                   850

Utilities                                                                        950

Training & Education                                                  250

Miscellaneous                                                              50

Total Operating Expense                 285,850     16.4

 

Operating Profit—EBITDA                                      286,578     16.4

 

Other Income (Expense)

Interest                                                                   (9,650) Depreciation                                                         (12,000) Amortization                                                          (2,500) Total Other Income (Expense)                  (24,150)

 

Total Pre-tax Profit                 262,428     15.0

 

Income Tax Allowance                                             118,093

 

Net Profit                 144,335       8.3

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FIN 571 Analyzing Pro Forma Statements

Academia
  • Purchased: 5 times.
  • Submitted: 23 Jul, 2018 08:46:54
Description Decide upon an initiative you want to implement that would increase sales over the next five years, (for example, market another product, corporate expansion, and so on). Using the sample financial statements, create pro forma statements of five year projections that are clear, concise, and easy to read. Be sure to double check the calculations in your pro forma statements. Make assumptions that support each line item increase or decrease for your forecasted statements. Discuss and interpret the financials in relation to the initiative. Make recommendations on potential discretionary financing needs. Write a 450 - 700 word analysis of the company's short term and long te...
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