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


Pro forma balance sheet - Structure

Liabilities and shareholders’ equity

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

By area of business activities

held to maturity

Pro forma balance sheet- 1) Cash / Maturity





Short term

* Cash and marketable securities * Bank overdraft
* Accounts receivables

* Accounts payable

* Inventory

* Income tax payable
* Long term financial debt

* Investments in affiliates


* Property plant and equipment

* Common stock

* Intangible assets


* Staff Severance Pay fund

* Retained earnings


* Net Income

Long term

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



Financing activity Operating activity FIXED ASSETS


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




+ Accounts receivable

+ Bank overdraft

+ Inventory

+ Long…...

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