Create a handout with details from the research to be used for management discussion and planning. This handout for management should specifically address AFC's goal to double its sales over the next three years.
Your individual deliverable will include a one-page handout in Word and three financial statements in Excel as follows:
balance sheet for the next three years
income statement for the next three years
statement of cash flow for the next three years
An Excel spreadsheet that has financial information for a three (3) year period. The Excel spreadsheet must contain a:
 Balance Sheet
 Income statement
 Cash Flow Statement
I will provide you with a starting financial point so that everyone is on the "same page" (please see instructor file # 13 and your email). You will then provide your financial assumptions to back up your financial statement projections for the next three years.
►A one-page Word Document which details the assumptions you made regarding the financial data (inputs) used in your financial statements. Please note that it is important to first establish your assumptions. These assumptions will be used to complete your Excel spreadsheet. Your word document should also summarize your overall conclusions regarding AFC's financial goals.
Your Excel financial statements will reflect the assumptions made in your Word document. For example: Assumption # 1 might be that your selling price increases by 30% in the Year # 1. If you also assume all sales are cash sales, then your cash increases on your Balance Sheet, your revenue increases on your Income Statement and your cash from operations increases on your cash flow statement.
Assumption # 2 might be that office salaries increase by 3% in Year # 2. Your financial statements will then reflect an increase in office salary expense on the Income Statement; a decrease in cash on your Balance Sheet; and your cash from operations decreases on your cash flow statement.
Assumption # 3 might be that production and shipments increase by 500 units in Year # 1. In that case you are selling more (volume increase). Your revenue, cost of sales, income, cash, sales, and retained earnings all go up. This change affects each of the financial statements.
THERE SHOULD BE 10 ASSUMPTIONS. PLEASE NOTE THAT
I HAVE LISTED 3 MANDATORY ASSUMPTIONS. YOU WILL BE RESPONSIBLE FOR DETERMINING THE OTHER 7 ASSUMPTIONS.
THE COMMON ASSUMPTIONS THAT EVERYONE SHOULD HAVE INCLUDE THE FOLLOWING.
1) INCREASE OFFICE SALARIES BY $50,000 IN YEAR # 1.
2) INCREASE MANUFACTURING EQUIPMENT BY $75,000 YEAR # 3.
3) ASSUME THE EQUIP PURCHASE ABOVE INCREASES DEPRECIATION BY $7,500 IN YEAR # 3.
Attached is the starting financials in excel
Please see the attached doc file for the assumptions and conclusions ...
Please see the attached doc file for the assumptions and conclusions and Excel file for the financial statements (you can see all the formulas and relations used in the corresponding cells and you can change values if you want to, the rest of the statements would automatically adjust).