Financial Preparation

Step 1: Each of you provides input on the best way to handle the financial statements for the venture. Watch the B2B CFO – to discuss the pros and cons of using an outside source for
financial preparation. This discussion should include the topic of the creation of a Pro-forma and the eventual management of the actual statements as well.
Step 2: Then, weigh the pros and cons of each suggested method and compare it back to the text material in Chapter 11 as to why certain financial decisions are critical for the
entrepreneur.
Step 3: Based on that analysis and discussion, come to an opinion on the creation and management of the financial statements.
Step 4: Finally, you need to go back to Appendix 6-A and complete the financial analysis sec!on in detail. This sec!on should be turned in as part of the assignment. Use this canvas
module to submit the Appendix 6-A sec!on noted.just focus on 6a-1f Financial Analysis. This is located at the end of ch 6 (see below) and just recreate the items no need to use
the actual form. Include budgets with numbers samples
6a-1fFinancial Analysis
Explanation: Summarize the critical assumptions upon which the financial information is based; in other words, show how the numbers have been derived. A pro forma income statement
and a statement of cash flows are the two most critical financial documents to add here—even though they may include preliminary outside sources needed to get some idea of the
genera!on of revenue and the cash position of the venture during the first three
years. If possible, provide a break-even analysis to demonstrate where the venture moves from survival to growth.
Key Concepts
Assumptions:
Pro Forma Income Statement:
Pro Forma Cash-Flow Statement:
Break-Even Analysis