...Financial Modeling Templates Financial Forecasting (Pro Forma Financial Statements) http://spreadsheetml.com/finance/financialplanningforecasting_proformafinancialstatements.shtml Copyright (c) 2009, ConnectCode All Rights Reserved. ConnectCode accepts no responsibility for any adverse affect that may result from undertaking our training. Microsoft and Microsoft Excel are registered trademarks of Microsoft Corporation. All other product names are trademarks, registered trademarks, or service marks of their respective owners Table of Contents 1. Financial Planning and Forecasting ................................................................................... 1-1 1.1 Pro Forma Financial Statements ............................................................................... 1-1 1.2 Financial Statements Modeling .................................................................................. 1-1 Financial Planning and Forecasting Spreadsheet ............................................................. 2-2 2.1 Financial Statements Inputs ....................................................................................... 2-2 2.1.1 Income Statement ......................................................................................... 2-2 2.1.2 Balance Sheet ............................................................................................... 2-3 2.2 Common Size Financial Statements ..................................................................
Words: 1662 - Pages: 7
...HLSC120: Society, Culture and Health Reflective Learning & Writing Proforma (Example Only) for Assessment 2 – Reflective Learning & Writing – 30% weighting – 1,500 words Due Date: 12 midday, 2nd September 2013 (Monday) [This proforma is available on LEO as a Word document for your use in completing this assessment task.] Use this proforma to organise your response to the reflective assessment task. Use the steps as headings and write in paragraphs below the headings. This is not an essay task. All your sources should be referenced using APA style. Step 1: Carefully choose one question from the Reflective Learning and Writing section of eModule 1 or 2 to guide your reflection. Write the question here: Step 2: Use the four factors from Willis' (2004, as cited in Germov, 2009, p. 6) sociological imagination template to gain background information to analyse the question. Historical factors Cultural factors Structural factors Critical factors Be sure to specifically identify and describe issues for each factor in your analysis. (approx. 400 words; use one academic source – your textbook, Second Opinion). Step 3: Next, identify and cite one of the readings, articles or videos from the eModule and describe how it has helped you to gain a deeper understanding of this topic. Remember to relate the information from this resource back to the factors from the sociological imagination template. (approx. 400 words; use two academic sources – one from your...
Words: 343 - Pages: 2
...INSTRUCTIONS Use the following proforma to prioritise each in-tray item using low, medium or high, and provide a rationale and discussion to support your decision, including key issues and recommended actions. Finally provide a written conclusion which 1. Explains what you see as the main issue(s) facing the organisation? You may use any of the problem solving techniques covered in lectures to help diagnose, analyse and/or illustrate these. 2. Briefly discuss what action, if any, needs to be taken by management. 3. Outline what additional information, data, statistics etc, which are not provided, are necessary to help with decision making, and explain your reasoning? You must submit the completed proforma to the iZone by 30th November 2015. 1 | Organisational Chart This is one of the fundamental document in any company, as it lays out the workflow of the company.As the new CEO, the organisational chart will serve as a reference which will allow me to check who to delegate tasks to as well as report to for anything. Being a recent employee, I have an unbiased judgement on the employees of the organisation. The key issue I have spotted in to regards to the organisational chart is that there is a vacancy for operations manager. The consequences of keeping this position vacant is that it will slow down production. Due to the evidence of vacant position the hierarchy following the resignation of John Sparrow (Item 15) it is a high priority to find someone...
Words: 1864 - Pages: 8
...Pro Forma Statements are “financial statements that a company prepares to consider the effects of potential activity” (Pro Forma Statement, 2013). It is a financial statement showing the forecast or projected operating results and balance sheet, as in pro forma income statements, balance sheets, and statements of cash flows (Pro Forma Statement, 2013).XYZ Company, Inc. is looking to expand their organization in the next five years. The following paper will review XYZ Company’s five-year financial plan to expand their organization. The pro forma income statement for XYZ Company, Inc. is a five-year projection that accounts for a 10% increase in gross sales each of the five-years. The projections for XYZ Company, Inc. show that the break-even point will occur in 2013 when net sales equal $1,747,698, gross profits equal $697,428, and total operating expenses equal $285,850. In 2014 the break-even point will equal $767,170.80 gross profits,$1,922,467.80 net sales, and $288,370.17 total operating expenses. In 2016 equal$2,326,186.04 net sales, $914,822.99 gross sales, and $349,451.05 total operating expense. In 2018 net sales will equal $5,140,871.14, gross sales equal $205,120,758.49and total operating expenses equal $430,386.70.In order for XYZ Company, Inc. to expand they need to increase current assets by$10,000. This is to increase the likelihood of needed finance. The expansion is costing$250,000 meaning the organization will need to utilize $175,000 in other forms of equity...
Words: 514 - Pages: 3
...THE PORTMAN HOTEL COMPANY CASE Section 1: Statement of the problem facing the manager The major problem faced by the vice president and managing director , Patrick Mene was to bail out the company from current state of employee dissatisfaction through strategic human resource management to provide best customer service and increase the profits for the company . Analyzing the situation using SWOT and PESTC analysis, we arrive at certain factors that could explain the current situation in the company. SWOT: Strengths: * Key business strategy of providing the unparalleled personal service to each guest. * Each of the employees was considered as an asset and elaborate employee rights were listed in contracts with them. * The philosophy of the hotel emphasized on high quality but cost effective service. * Hotel recruited very selectively and demanded long term commitment from the employees. * Recruitment was done on certain life themes like assertiveness, positivity, responsibility, pride and gestalt. * Concept of “no rules” for the guests. * Except for the 9 engineers, none of the rest of the employees had joined any of the union. Weakness: * The very philosophy of the hotel to cut down on the middle management and put more employees at the guest front proved to be flawed as there was acute paucity of proper supervision for the lower level employees. * Due to random allocation of the employees at various jobs led to utter chaos while...
Words: 1335 - Pages: 6
...Pro forma Statements∗ After thoroughly analyzing a company's current situation and the road it took to get there, it is natural to next ask where it is going. The answer will depend on numerous factors including the economic environment, competition, customer tastes, and both strategic and tactical choices. It is the job of the pro forma financial statements to translate these operational forces into numerical estimates of expected financial performance. There are several reasons for projecting future financial performance. First, pro forma statements are very useful when evaluating alternative business strategies. It is one thing to discuss strategy at the conceptual level, but much more valuable to be able to identify the profit and funding effects of alternative strategies. Second, evaluating alternative future events permits explicit measurement of risk. Financial projections do not eliminate the sources of risk. However, they do help the decision‐maker find which risks are important and how realizations of those risks will affect the company. Finally, pro forma statements identify the amount of funds needed and assist in deciding on the appropriate structure for the funding. It is simply not possible to develop an adequate funding plan without relying on pro forma statements. Pro forma statements provide financial estimates of the impact of a business plan. As such, pro formas incorporate the following information: • A marketing plan indicating what will...
Words: 5514 - Pages: 23
...Analyzing Pro Forma Statements FIN 571 September 11, 2014 Introduction This paper is the analysis of pro forma financial statements. Pro forma statements are forecasted or projected financial statements as a result of financial planning. The financial statements are based on the inputs and assumptions such as percent of sales model in which most of the entries vary directly with the level of sales. The attached excel spreadsheet includes pro forma statements for the next five years. This company decided to invest in the purchase of new equipment to help increase sales. The resulting projections are the focus of this paper. Analysis of pro forma statements will determine if the company requires any external financing to support its planned initiatives. Assumptions supporting each line for forecasted statements This paper covers a five year plan with the basic assumptions for the pro forma statements that the equipment purchase initiative will increase sales by 12% for the first two years, and then 5% for the next three years. The cost of sales including purchases, production and labor, and ending inventory will vary with sales, while beginning inventory comes from prior year ending inventory. Depreciation will increase by $40K for the additional equipment in year one. Fixed assets will not vary from year to year, except for $200K increase in equipment expected in the first year to support sales growth. Retained earnings for the prior year comes from previous year, and...
Words: 696 - Pages: 3
...FORECASTING FINANCIAL STATEMENTS: PROFORMA ANALYSIS Roger Clarke and Grant McQueen August 2001 ABSTRACT This teaching note explains why and how managers project financial statements into the future. The note is designed for an introduction to corporate finance class. The note prepares students for either a case such as Clarkson Lumber or a real-word project in which proforma statements are needed. This note explains how to build a proforma balance sheet and intentionally does not include a complete proforma income statement so that the students will have to demonstrate some ingenuity when doing the follow-on case or project. The note is a nice supplement to both the advance and remedial corporate finance text books. The more advanced books (e.g., Ross, Westerfield, and Jaffe) typically give short shrift to the topic of forecasting and the more remedial text books (e.g., Block and Hirt) typically build the forecasted statements presupposing the manager knows production projections (e.g. the type, number, and price of units to be bought, produced, and sold). Roger Clark is with Analytic-TSA Global Asset Management and an Adjunct Professor in the Marriott School at Brigham Young University. Grant McQueen is the William Edwards Professor of Finance in the Marriott School at Brigham Young University. The authors thank colleges at BYU and ASU and the research assistance and students for their contributions. Send correspondence to Grant McQueen, 671...
Words: 5391 - Pages: 22
...Analyzing Pro Forma Statements FIN/571 Kalena Armstrong-Henry November 4, 2013 Analyzing Pro Forma Statements General and financial managers can both benefit from forecasting financial statements. Proforma statements assist financial managers to plan accordingly, in terms of the company’s financial needs. How much financing is needed and when it is needed can be determined by acquiring an estimate of the company’s future balance sheet accounts and income statement. Hence, the purpose of the Proforma analysis is to forecast the company’s financial statements under a particular condition (Parrino et al., 2012). Subsequently, total assets must equate the sum of total liabilities and owner’s equity; otherwise the manager must consider corrective action (Parrino et al., 2012). The Proforma analysis has been proven to be instrumental for general managers in the planning of inventory and employment intensities; particularly problems solving issues. During the developing stages of the forecasting a manager is permitted to analyze the results; thus, identifying potential “hot spots” and handling the issues accordingly. Dealing with “hot spots” with ample time to spare during the forecasting stage is vital to any financial manager. When performing a Proforma Analysis the financial manager can handle forthcoming issues weeks or months in advance; thus, providing the manager ample time to avoid a potential real-time calamity. Subsequently, the manager will gain the ability to...
Words: 1327 - Pages: 6
...COUNSELLING PROCESS: FLOW CHART FOR THE CANDIDATE 1. WELCOME: CANDIDATE/ PARENT(S)/ GUARDIAN(S) 2 Computerized: 1. Additional persons, if accompanying, shall be guided to suitable waiting areas Attendance Desk 2. Candidate can proceed to any of the counters and show the JEE (Main) admit card. Identification documents shall be checked. 3. Collect, the Docket, which shall comprise, a) Set of Choice Forms b) Proforma for allocation of hostel seats. c) Document Verification Proforma d) Wait list request Proforma e) Undertaking Proforma f) List of items to be brought by hostellers (Incase hostel is allotted). 2. In case you are not carrying your copy of Instructions, which were sent to you by post, please obtain it from the reception desk. 3. You shall be guided by the sign postings and volunteers 4. Wait patiently. Your Queries will be answered by the competent authorities. 4. Documentation : 1. Write your Name & JEE (Main) overall Rank on the back side of the Demand draft that you are carrying. 2. Go through the instructions displayed on the screen and comply 3 Organize your documents...
Words: 665 - Pages: 3
...Assessment 2: Reflective Writing Assignment Description: Students will learn to reflect on sociological topics related to society, culture and health and apply the Sociological Imagination Template to their chosen topic. Using the Reflective Learning and Writing Proforma on LEO and using reflective language, respond to one of the two topics provided on LEO for the reflective assessment task. Use the proforma steps as headings and write in paragraphs below the headings. Ensure that you use all the factors from the SI template in completing this reflective writing task. It is not necessary to use all four factors in every step of the proforma. All sources should be referenced using APA style. Due date: Week 6, Friday 15th April 2016 at 11.59pm Weighting: 40% Length and/or format: 1,750 words Purpose: To enable students to learn to reflect on sociological topics related to health and culture and to develop and implement the Sociological Imagination Template to their chosen question. Learning outcomes assessed: 1&2 How to submit: Submit Via LEO Assessment Block – Turnitin Return of assignment: Returned via Turnitin on a post date to be advised Assessment criteria: This task will be assessed using the Reflective Writing Rubric Reflection topic: Select one topic only 1. Reflect on the adverse environmental impacts of the rapid development of electronic communication and technology as one of the globalising processes...
Words: 301 - Pages: 2
...increasing accounts payable the company is exposed to a significant amount of risk an almost certain failure. Our recommendation is that a large equity injection be made and/or the owners evaluate selling the firm to a competitor or other potential buyer. The later may be more beneficial as it appears the current management team is unable to operate efficiently. Simple Ratio Analysis and Comments ROE ROE has increased from '00 o '01 which may be the result of the decrease in equity as a % of NOI annually. Based on the information provided it will continue to decrease over the next two years. ROA ROA has declined; this is a sign of misuse of assets or underutilization. If management follows the proforma it will reverse this trend in 3 years. It is important to note that the proforma sales projections are very conservative and perhaps not realistic. Debt Ratio This is a significant issue. Its debt has increased over the last few years, but with the new DVD equipment debt has sky rocketed even more....
Words: 415 - Pages: 2
...is a table that clearly shows the skills held by individuals in a team, and the skills gaps within a team. Key steps in preparing a Skills Matrix ��� ���� To get the most out of your Skills Matrix you will need to: ����� ���� 1.Identify the job roles in your team 2. Review and code standards of performance 3. Assess the requirement for on-the-job training. An example of a completed Skills Matrix is provided at the end of this guide, as well as a blank proforma. Look at the example, photocopy the proforma, and using your own team as a guide, follow these steps to prepare a Skills Matrix. (For more on Organisational Training Plans, see ‘How to Develop an Organisational Training Plan’). Learning Resources Instep (UK) Ltd. Willow Barn, Newcastle Road, Brereton, Sandbach, Cheshire CW11 1SB Tel: 01477 505811 Fax: 01477 505822 email: HowTo@instepUK.com www.instepUK.com ������ ��� 1. Identifying job roles List your team members in the left-hand column of the blank proforma. Identify up to 8 key tasks or roles that your team must fulfil to be effective and achieve its goals. It may help to use the following tips: • Ask yourself and your team “What are the main things that individuals in the team have to be able to do?” • Refer to Job Descriptions for the team. • Use National Vocational Qualification...
Words: 960 - Pages: 4
...Fin 522 Cases in Financial Strategy Group Assignment – Butler Lumber Case Vedvati Shrotre (shrotre2) Xiaoyue Sun (xsun52) Chenxiao Zhu (czhu19) 1. If the first estimated growth of sales is 30 percent, compare it to the value of the secured 90 day note that Northrup Bank is willing to lend Butler Lumber. What are the results? Our conclusion is that the new credit line provided by Northrop National Bank would not cover Butler Lumber’s cash shortage under the assumption of 30 percent sale growth rate and 10 days period of payment period to the supplier. We noticed that the cash conversion cycle we have calculated indicates that it takes 15 days longer for the cash to cycle around in 1991 than in 1990. The main cause for this increase is the assumption that the Butler Lumber company pay suppliers in 10 days to gets purchase discount. With the increase in both sales and cash conversion cycle, the shortage of cash will expand. The geometric average sales growth rate for the period 1988 – 1990 is 26.0%, while the geometric average interest expense growth rate is 59.3%. Basically the interest expense is growing at the speed that doubles the growth rate for sales. Given that sales growth rate is 30%, we estimate the interest expense growth rate to be 76.7% and the amount would be 58K. While under the new credit line, the maximum interest expense under fully utilization of the notes payable would be 465k*10.5%+50K*11%=54.33K. Obviously under 30% growth, the new credit line would be...
Words: 820 - Pages: 4
...Jim Crosby Task 2, Financial Analysis A1 Discuss budgeting areas that raise concern in the budget planning. There are several areas of budgetary concern within the proforma financial statements. Some of the prominent areas of concern are in the overall sales numbers. Units expected to be sold is 3510 for the year of nine of CB. However, year 8 had sales of $5,083,000 which was down 15% from the previous year, yet in the proforma statements for year nine, total sales are projected at $5,227,716. One wonders how this might occur given that administrative and executive salaries have remained the same. If indeed more units sold is to be expected for year nine, then overhead costs should have risen as well as the rest of the expenses for the operation. Other areas of concern are the current price per unit of the bicycle which in the proforma statement is $1495.00 per unit. This price needs to be increased by 1% bringing the actual price to $1509.95. This increase will bring the projected gross sales figure to $5,299,924.50. This added income of $52,277.15 will add to the bottom line of the operation. This added revenue to another area of concern in the expenses proforma. This area is the total direct labor hours needed in the assembly of raw materials. The current number is 52,650 and these ...
Words: 933 - Pages: 4
