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Preparation of 4 Financial Statements

There is NO OTHER information provided for the assignment. You are supposed to make up the 4 statements for an imaginary business. Therefore, please feel free to make up any numbers other than for those provided.

Need pro forma financials - 4 STATEMENTS

1) Pro forma sales - 3 years - based on 1 sale each year supplemented by consultancy fees.
Revenue year 1 - based on 1 shipment (software) - $110,000
Year 2 shipment - 1 shipment - 20% over year 1
Year 3 shipment - 1 shipment - 20% over year 2
Consultancy - year 1 $110,000
Year 2 - 20% over year 1
Year 3 - 20% over year 2

2) Projected Income Statement - based on above sales/consultancy fees for
year 1, year 2, year 3
Costs for each year would include:
Salaries
Office lease
Materials
Admin Expenses
Marketing
Taxes
Debt financing for year 1 start up loan of $220,000 @ 6% annual interest
Plus any other reasonable cost items

3) Pro forma balance sheets based on all above assumptions etc.
year 1, year 2, year 3

4) Pro forma cash flow (break even analysis) statements - year 1, year 2, year 3.

PLEASE MAKE ANY NECESSARY ASSUMPTIONS FOR THIS Information Technology CONSULTANCY business.

Solution Summary

Excel spreadsheets with easy to understand methods of constructing financial statements for imaginary companies included.

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