Business Investment

In: Business and Management

Submitted By PacherG
Words 1886
Pages 8
Business Plan
Financial forecasts
Agenda of the second part of the course
 Financial forecasts – importance and structure
 Pro forma income statement
 Profitability analysis and Break-Even Point analysis  Pro forma balance sheet and financial need assessment 1

Business Plan
Financial feasibility
Pro forma balance sheet and financial need assessment: • Pro forma balance sheet
• Financial needs assessment
• Sources of funds

2

Pro forma balance sheet - Structure
RECLASSIFIED BALANCE
SHEET
1) CONVERTIBILITY INTO
CASH / MATURITY DATE

Assets
Liabilities and shareholders’ equity

time required to be converted into cash 2) BY AREA OF
BUSINESS ACTIVITIES

By area of business activities

held to maturity
3

Pro forma balance sheet- 1) Cash / Maturity

ASSETS

High

CURRENT ASSETS

LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES

Short term

* Cash and marketable securities * Bank overdraft
* Accounts receivables

* Accounts payable

* Inventory

* Income tax payable
NON CURRENT LIABILITIES
* Long term financial debt

FIXED ASSETS
* Investments in affiliates

STOCKHOLDERS' EQUITY

* Property plant and equipment

* Common stock

* Intangible assets

Low

* Staff Severance Pay fund

* Retained earnings

TOTAL ASSETS

* Net Income
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY

Long term
4

Pro forma Balance Sheet- 2) Area of business activities INVESTED CAPITAL

DEBT AND EQUITY

WORKING CAPITAL
NET FINANCIAL DEBT

Financing activity Operating activity FIXED ASSETS
STOCKHOLDERS' EQUITY

TOTAL INVESTED CAPITAL TOTAL DEBT AND EQUITY
5

Pro forma Balance Sheet- 2) Area of business activities INVESTED CAPITAL

DEBT AND EQUITY

WORKING CAPITAL

NET FINANCIAL DEBTS

+ Accounts receivable

+ Bank overdraft

+ Inventory

+ Long…...

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