Creating Your Forecasted Sensitivity Analysis
Legal Fees - from Operating Expense Budget
Murray anticipates to have legal fees and other professional services in 200X only. These fees are expected to be paid in July of 200X. As a result, Murray's 200X Forecasted Cash Flow Statement will show a Cash Outflow of $1200 in July (only) for legal fees. In addition, his 200X Forecasted Income Statement will show a $1,200 amount in his "Legal Fees Expense " account.
BUDGET 8 - DEVELOPING YOUR FIXED ASSETS BUDGET
BUDGET 9 - DEVELOPING YOUR OPERATING EXPENSES BUDGET
Operating Expenses consist of goods or services used or consumed in operating a business. Operating Expenses consist of two categories; Marketing Expenses and Administrative Expenses.
SCHOLARSHIP INFORMATION SERVICES
NOTES TO THE FORECASTED FINANCIAL STATEMENTS
FOR YEARS ENDING DECEMBER 31, 200X & 200Y
The following notes have been developed to help guide readers through the 200X and 200Y forecasted financial statement section of the business plan. When reading these notes, please recall the Company's startup date is scheduled for July 1, 200X. The first "NOTE" to be addressed below is the company's Sales Forecast.
CASH AT THE BEGINNING OF THE MONTH
Creating Your Forecasted Balance Sheet
After completing your Financial Budgets (step 1), your First Year Forecasted Cash Flow Statement (step 2), and your First Year Forecasted Income Statement (step 3), the next step is to develop your First Year Forecasted Balance Sheet (remember to create your forecasted financial statements one year at a time).
Part 3 - Determine When You Will Pay For Your Monthly Purchases
Payment on purchases will depend solely on the credit terms offered by your supplier's of product. Credit terms refer to the number of days (if any) suppliers allow a business to pay for goods or services. Many suppliers provide credit terms of 30 days, 90 days, or 120 days. Other suppliers will not provide credit to businesses, especially new ventures.
Part 1 - Determine the # of units or products to purchase each month
In order to determine the number of units to purchase each month, you are required to A) Forecast Your Monthly Sales in Units, and B) develop a Monthly Ending Inventory Schedule.
Earnings Before Income Taxes
Earnings Before Income Taxes appear on the Income Statement and is calculated by subtracting "Sales" from "Cost of Goods Sold" & "Operating Expenses". Below summarizes Murray's forecasted Earnings Before Income Taxes for the business years ending December 31, 200X and 200Y.