Plagiarism Free Due 12 Hour 3 Page Important Notes This Exer

Plagiarism Freedue12 Hr3 Pageimportant Notesthis Exercise Is Consider

Provide the following information below. For year one of your NAB company’s Business Plan, complete the Income Statement, Cash Flow Projections, and Balance Sheet sections from the “Business Plan Financials” MS Excel template (see: Course Required Files in Week 1). Attach the MS Excel worksheet to the discussion thread. Your marketing costs should already be included as you created your Marketing Budget in Week 4, and those will be filled in automatically. Use the figures from the operations and technology sections of your plan to help fill out your financial forms. Work through the worksheets in order; the Excel worksheets will automatically populate the Income Statement. Develop the following financial sections of your NAB company’s Business Plan: sources and use of funds, plan assumptions, and break-even analysis. Attach the MS Word document with your completed financial sections to the discussion thread.

Paper For Above instruction

Creating a comprehensive financial plan is vital for the success of any business, and the first year’s financial statements provide critical insights into the company's projected profitability and financial stability. For the NAB company's Business Plan, the task involves preparing the Income Statement, Cash Flow Projections, and Balance Sheet for the first year, utilizing the provided “Business Plan Financials” Excel template. This exercise not only enhances understanding of fundamental financial concepts but also ensures that the business’s financial assumptions are realistic and aligned with strategic goals.

The process begins with populating the Excel worksheets to generate the Income Statement, which summarizes revenues, costs, and net income. The revenues should be estimated based on market research, sales forecasts, and pricing strategies outlined earlier in the business plan. Operating expenses, including marketing, personnel, operational costs, and technology expenditures, must be carefully calculated using data from previous sections, notably the marketing budget and operational plans. Because the Excel template automatically inputs marketing costs, the focus should be on accurately estimating other expense categories to reflect an authentic financial picture.

Next, the Cash Flow Projections are essential for understanding liquidity and ensuring the business can meet its obligations. These projections include cash inflows from sales and other income, offset by outflows such as operating expenses, capital expenditures, debt payments, and taxes. Using the figures from the operations and technology sections of the plan ensures consistency. It is critical to monitor the timing of cash flows to avoid shortages, especially during initial startup phases or periods of high capital investment.

The Balance Sheet offers a snapshot of the company's financial position at the end of the first year. It comprises assets, liabilities, and equity. Assets include cash, accounts receivable, inventory, and fixed assets, while liabilities encompass loans, accounts payable, and other obligations. Equity reflects shareholders’ investment and retained earnings. Accurate estimates depend on initial funding, projected profits, and planned investments in assets, all of which should be derived from the preceding financial statements and operational plans.

Beyond these core financial statements, developing the sources and use of funds statement is crucial, as it details where the business finances its operations, whether through equity, loans, or reinvested profits. Explicit planning for funding sources ensures adequate capital for startup costs and operational needs. The plan assumptions should clarify underlying assumptions such as market growth rates, sales volume, pricing strategies, and cost estimates, providing transparency and a basis for financial forecasts.

Finally, the break-even analysis determines the sales volume needed to cover total fixed and variable costs, indicating when the business will become profitable. This analysis guides strategic decisions on pricing, cost management, and sales targets, ensuring that the business can sustain operations and achieve its financial goals.

In sum, completing these financial sections using the provided Excel template with care and accuracy allows for a realistic and robust financial projection for the first year. Attaching the completed Excel worksheet and the corresponding Word document ensures clarity and facilitates review. These financial insights contribute significantly to convincing stakeholders of the business’s viability and strategic planning capability.

References

• Brigham, E. F., & Houston, J. F. (2019). Fundamentals of Financial Management. Cengage Learning.
• Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2018). Essentials of Corporate Finance. McGraw-Hill Education.
• Shim, J. K., & Siegel, J. G. (2020). Financial Management. Barron’s Educational Series.
• Gitman, L. J., & Zutter, C. J. (2018). Principles of Managerial Finance. Pearson.
• Davies, M. (2015). Creating a Financial Business Plan. Routledge.
• Pike, R., & Neale, B. (2017). Corporate Finance and Investment: Decisions and Strategies. Pearson.
• Brigham, E. F., & Houston, J. F. (2021). Financial Management: Theory & Practice. Cengage Learning.
• Peterson, P. P., & Fabozzi, F. J. (2019). Capital Budgeting: Methodologies and Applications. Wiley.
• Higgins, R. C. (2018). Analysis for Financial Management. McGraw-Hill Education.
• Damodaran, A. (2012). Investment Valuation: Tools and Techniques for Determining the Value of Any Asset. Wiley.