MLI26C600 - Entrepreneurship in the Global Economy, 11.03.2019-29.03.2019
This course space end date is set to 29.03.2019 Search Courses: MLI26C600
financials assignment
financials assignment
Assignment 8 --- Mgt 386
Financial Statements
Rev. 3/21/19
This assignment is intended to give you experience producing a simple version of the financial documents necessary to:
1) determine whether or not your proposed business will be economically viable, and
2) support the case for providing resources for starting your business
In order to accomplish these tasks, you must begin to create a quantitative model of the business. This quantitative model must take into account your estimates of demand for your products and/or services, your proposed prices, the resulting revenues generated, the economic resources necessary to create and deliver your products and services and get the business started. A more advanced, but not required, version would account for the patterns of funds flow to and from the organization.
Specifically, your assignment is to create the quantitative and verbal documents that begin to constitute this model. These documents should include the following:
1) A revenue model (sales forecast) quantifying your assumptions about the time-dependent purchasing patterns that will generate revenues for the business. These patterns will depend on assumptions about the timing of demand (partly based on your marketing efforts), unit prices, the number of units available, and the number of units sold for each product or service (if more than one). Do this on a MONTHLY basis for I year.
2) An itemization of estimated startup costs, including
a) requirements such as products, materials, land, facilities, new construction, renovation, equipment, vehicles, raw materials, inventory, supplies or working capital and
b) expenditures associated with startup such as professional services, marketing, licenses, training, research, etc.
c) Where will your start-up funds come from?
3) A clear statement of the assumptions which are the basis for the quantities used above.
You can do this as a separate WORD document, or cut and paste in Excel, referencing specific items on the statements. As much as possible, assumptions should be supported by documentation or references to specific locations for information that have informed your efforts. Sources of information might include your contacts with industry insiders or other professionals, private or government internet sites, standard financial references, trade press articles, publications by industry associations, historical documents from a purchased business, etc.
- 21 March 2019, 11:10 PM