Part 1. Use in text citations if need be. When opening this business I think the start up funds should be at 50,000-100,000$. That is a reasonable amount of course we will grow over time. Use the attachments as a guide if need be. This is discussion post 1. Use the template that is attached.
Prepare a Sources and Uses of Funds Statement for your start-up business. Use this Excel Spreadsheet template which includes an Income Statement, a Balance Sheet, and a Sources and Uses of Funds Statement. Compile your data and enter the information into the Sources and Uses of Funds Statement. Make sure to only enter data in the green cells. Once completed, submit the Excel Spreadsheet containing the Sources and Uses of Funds Statement to the appropriate file folder for review. These costs should include all funds required to start-up or purchase your business. You need to determine your uses of funds first:
Uses of Funds:
Land
Building
Equipment
Inventory
Improvements
Deposits
Working Capital (Operating Expenses for 12 months (Rent, electric, water, internet, loan pmt., etc…)
Additional Expansion Growth
Total Uses of Funds
Sources of Funds
Owner’s Equity
Personal Loan
Business Loan
Other Sources
Total Sources of Funds
Note that the Total Uses of Funds must equal the Total Sources of Funds.
Part 2. Use in text citations if need be. When opening this business I think the start up funds should be at 50,000-100,000$. That is a reasonable amount of course we will grow over time. Use the attachments as a guide if need be. This is discussion post 2. Use the template that is attached.
Prepare a cash flow statement for your start-up business. There is a cash flow worksheet on this template. These costs should include all funds required to start-up or purchase your business. You need to determine your uses of funds first:
Uses of Funds:
Land
Building
Equipment
Inventory
Improvements
Deposits
Working Capital
Operating Expenses for 12 months (Rent, electric, water, internet, loan pmt., etc…)
Additional Expansion Growth
Total Uses of Funds
Sources of Funds:
Owner’s Equity
Personal Loan
Business Loan
Other Sources
Total Sources of Funds
Note that the Total Uses of Funds must equal the Total Sources of Funds.
Part 3. Use the attachments that have “business plan� in the title to use as a reference. Use in text citations if need be. But they need to be citations that are based in the United States and use websites.
Financial plan (see the Excel template provided in the course and complete the Sources and Uses of Funds Statement) o Include important assumptions, financial indicators and benchmarks, break-even analysis, projected profit and loss, and yearly profit, balance sheet, exit strategy, and cash flow by month.
The following instructions can be also used for all three parts:
The three basic financial statements that were covered, including the balance sheet, the income statement, and statement of cash flows. Balance sheet is based on the old accounting formula assets equals liabilities plus owners’ equity. Balance sheets an estimate of the company’s value on a date, much like a snapshot of the company’s financial position. The income statement contains the firm’s revenues and expenses and determines what companies net income. It provides information about the amount of money going to the company’s bottom line. It is important to remember that income and cash are not the same things. The cash flow statement shows the change in the company’s working capital over an accounting period. These typically formatted by listing the sources and uses of funds. Also important for the entrepreneur to produce projected financial statements. These projections will help the owner manage the company’s cash flow. Another method that the entrepreneur may use to determine the company’s performance level is ratio analysis. It’s important to understand the four basic categories of ratios used to analyze your company. Leverage ratios tell how much the company is financed by owners and by creditors. A highly leveraged firm has a lot of as compared owners’ equity. Operating ratios show how effectively the farm is using its resources. Profitability ratios demonstrate the company’s profitability. A break-even analysis is often used for a start-up company to determine the required level of revenues to pay expenses, including your salary.
The entrepreneur must know that cash is the most important asset that a small company has, and the entrepreneur must maintain enough cash to pay normal expenditures, plus keep a reserve for emergencies, without retaining an excessively large cash balance. Large cash balances should be invested into accounts that are easily accessible should the money become necessary. It’s important to remember that cash and profit are not the same large number of businesses fail because of cash issues. Many growing companies can be making a profit but still have cash shortages. Thus, it’s critical for the entrepreneur to create a cash budget as part of the company’s financial planning. Five steps to create a cash budget are determine a minimum cash balance, forecasts sales, forecast cash receipts, forecast cash disbursements, and determine the end of month cash balance. Three main company accounts must be managed in the cash budget, which include Accounts Payable, Accounts Receivable’s, and inventory. Small business owner can have a tremendous amount of cash tied up in these three accounts