M3 ASSISNMENT NM6900

Assignment 2: Business Plan Breakdown 3—The Simplified Financial Plan
This is the third milestone of your business plan—the financial plan.
Tasks:
Research the costs, financial statements, cash flow, and  risks of your chosen project. Based on your research and the knowledge  you have gained from the course, create a simplified 4- to 5-page  financial plan including tables and charts. For the financial plan:

Estimate the capital requirements, use of capital, start-up  requirements (if applicable), and other probable costs involved in the  implementation and subsequent operation of your project.
Identify the sources of financing.
Define a payback period.
Prepare cash flow projections.
Prepare a projected balance sheet  representing the end of the first calendar year of operations and  defining assets and liabilities, both current and long term.
Prepare income statement projections for  the end of the first calendar year of operations, including charts  showing gross revenues, gross profit, and net income.
Define the meaning of a break-even analysis and prepare an analysis appropriate for your project.
Prepare a ratio analysis, including the  definition and value of the following ratios (whichever  applicable)—current, quick, debt, debt-to-equity, average inventory  turnover, receivables turnover, payables turnover, net sales to working  capital, net profit to sales, and net profit to equity.
Prepare a list of possible risks  associated with the implementation and future operation of your project  and describe the significance of each of them.

Submission Details:

By the due date assigned, save your paper as M3_A2_lastname_firstinitial.doc and submit it to the Submissions Area.

This assignment is worth 100 points and will be graded according to the following rubric.
     Assignment 2 Grading Criteria  Maximum Points    Estimate  capital requirements, use of capital, start-up requirements (if  applicable), and other probable costs involved in the implementation and  subsequent operation of your project.  12    Identify sources of financing and define a payback period.  8    Prepare cash flow projections.  12    Prepare  a projected balance sheet representing the end of the first calendar  year of operations, and defining assets and liabilities, both current  and long term  12    Prepare  income statement projections for the end of the first calendar year of  operations, including charts showing gross revenues, gross profit, and  net income.  12    Define the meaning of a breakeven analysis and prepare one to reflect your project.  12    Prepare  a ratio analysis, including the definition and the value of the  following ratios (whenever applicable): current, quick, debt, debt to  equity, average inventory turnover, receivables turnover, payables  turnover, net sales to working capital, net profit to sales, and net  profit to equity.  12    Prepare  a list of possible risks associated with the implementation and future  operation of your project, and provide significance for each of them.  12    Write  in a clear, concise, and organized manner; demonstrate ethical  scholarship in accurate representation and attribution of sources;  display accurate spelling, grammar, and punctuation.  8    Total:  100