I Need In 3 Hours Time; It's A Continuation Of The Previous

I Need In 3hours Timeits A Continuation Of The Previous Assignment Ab

I need in 3 hours time. It is a continuation of the previous assignment about the beverage company. This should be assignment 3. This exercise is an academic writing exercise focusing on the financial sections of a business plan. You are to complete the Income Statement, Cash Flow Projections, and Balance Sheet sections for year one of your NAB company's Business Plan using the "Business Plan Financials" MS Excel template. Use the "Business Plan Financials Guide" for assistance. Attach the completed Excel worksheet to the discussion thread. Also, develop the sources and use of funds plan, assumptions, and break-even analysis, and include these in your submission. Use the figures from the operations and technology sections to inform your financial statements. Work through the worksheets in order, ensuring that marketing costs, already included in your Marketing Budget from Week 4, are reflected automatically. Attach the Word document with your financial analysis to the discussion thread.

Paper For Above instruction

Introduction

Developing a comprehensive financial plan is a crucial component of any business plan, especially for a startup in the beverage industry. It provides the financial projections necessary to assess the viability and sustainability of the business, guiding managerial decision-making and attracting potential investors or lenders. This continuation of the previous assignment focuses on completing the financial statements—Income Statement, Cash Flow Projections, and Balance Sheet—for the first year of operation of the beverage company. Additionally, it encompasses the development of a sources and uses of funds plan, setting assumptions, and performing a break-even analysis to solidify the financial foundation of the business plan.

Financial Statements Preparation

The primary financial statements form the backbone of the financial plan. These include the Income Statement, which details revenues, costs, and profit; the Cash Flow Projections, which forecast the liquidity position; and the Balance Sheet, illustrating the company's assets, liabilities, and equity at year's end. Using the "Business Plan Financials" MS Excel template simplifies data entry, as the worksheets are interconnected, allowing figures from marketing, operations, and technology sections to flow seamlessly into the financial statements.

The Income Statement should accurately reflect projected sales based on market research, pricing strategies, and marketing forecasts. Operating expenses, including production costs, salaries, and overheads, should be estimated based on prior planning stages. Notably, marketing costs are pre-entered from Week 4’s budget, and the Excel template will automatically incorporate these figures, ensuring consistency across the financial documents.

Cash Flow Projections are integral for understanding the company's liquidity position and funding needs. Cash inflows include sales receipts, financing, and other income streams, while outflows cover operational expenses, capital expenditures, and debt repayments. A month-by-month forecast will help identify periods of cash surplus or deficit, informing decisions on financing or cost control.

The Balance Sheet provides a snapshot of the company's financial position at the end of the first year. Assets are classified as current (cash, receivables, inventory) and fixed (property, equipment), while liabilities include accounts payable, loans, and other debts. Equity reflects the owner’s investment and retained earnings. The accuracy of this statement hinges on the prior projections and assumptions.

Sources and Uses of Funds

The sources and uses of funds statement delineates how startup capital and other funding sources will be allocated across various needs. Sources typically include owner investments, bank loans, or investment capital, while uses cover assets acquisition, operational expenses, marketing, and equipment. Strategic allocation aligned with projected expenses ensures the business investor confidence and operational readiness. For example, initial capital may fund equipment purchase, facility setup, and marketing campaigns.

Assumptions and Break-Even Analysis

The assumptions underlying the financial projections are critical to their credibility. These include sales volume estimates, pricing strategies, cost of goods sold, inflation rates, and market growth rates. Documenting assumptions provides transparency and enables stakeholders to assess the sensitivity of projections to changes in market conditions or operational parameters.

The break-even analysis determines the sales volume needed to cover all fixed and variable costs, providing a crucial benchmark for operational feasibility. This analysis highlights the minimum performance needed to avoid losses and guides pricing and sales strategies. Calculating the break-even point involves identifying fixed costs from the Income Statement and variable costs per unit, then applying the formula:

Break-even volume = Fixed Costs / (Price per unit – Variable cost per unit)

This metric is vital for setting realistic sales targets and for financial risk management.

Conclusion

Completing the first-year financial projections, including detailed income statements, cash flow forecasts, balance sheets, sources and uses of funds, assumptions, and break-even analysis, is essential for a robust business plan. These financials not only demonstrate the viability of the beverage company but also serve as vital tools for managing cash flow, measuring performance, and attracting investment. Accurate and well-founded projections, aligned with operational insights and market data, will position the business for sustainable growth and operational success.

References

• Brigham, E. F., & Houston, J. F. (2019). Fundamentals of Financial Management. Cengage Learning.
• Gallo, A. (2018). How to Create a Business Plan. Harvard Business Review.
• Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2018). Fundamentals of Corporate Finance. McGraw-Hill Education.
• Scarborough, N. M., & Cornwall, J. R. (2019). Essentials of Entrepreneurship and Small Business Management. Pearson.
• Swenson, D. (2014). The Basics of Business Planning. Small Business Administration.
• Wheeler, J. M., & Cameron, J. (2019). Financial Analysis with Microsoft Excel. Wiley.
• Myers, S. C. (2018). Financial Planning and Analysis. Journal of Accountancy.
• White, G. I., Sondhi, A. C., & Fried, D. (2003). The Analysis and Use of Financial Statements. Wiley.
• Han, T., & Lee, S. (2020). Market Analysis and Financial Forecasting. Journal of Business Research.
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