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Carver Lawrence, LLC: Prepare a financial plan.

See attachment for details.

Prepare proforma Financial statements (Balance Sheet, Income Statement, Cash Flow Statement)

Discussion about financial findings and what plays a role in the success and/or failure of the business (healthy, environment, customers, etc.)

What would you project your ability to be if you wanted to raise prices (ability to keep up with the competition)


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Financial Analysis

On the basis of income statement, it is analyzed that in the period of 5 year, operating profit in the business is increasing regularly. It is due to the possible growth rate of 3.5% for every coming year. Balance sheet reflects that fixed assets are less in organization as fixed assets includes only computers due to lack of information for other assets. The balance between total assets and liabilities are taken as the bank balance that shows a higher amount every year. It shows effectiveness of the business to generate cash flows for the business that will be effective to increase its financial effectiveness. This excess cash amount can be used to purchases more computer system as it will help to increase the number of online students that will produce extra revenues for business. The excess cash amount can also be used to pay its short term liabilities that will increase its effectiveness among the investors.

Solution Summary

The expert prepares a financial plan for Carver Lawrence, LLC.