Homework
Purpose of Homework:
The purpose of this homework is for students to initiate and complete a comprehensive financial plan. The ultimate result will be a set of pro forma financial statements including an Income Statement, Balance Sheet, and Cash Flow Statement. The student will develop requisite assumptions about the dollar values to be budgeted. We will use the profit and loss statement you created in week four to create the first year balance sheet and cash flow statement for your company.
Homework Steps:
Assume this is the first year of your business.
Use the profit and loss statement from year 1 for the purpose of creating your balance sheet and cash flow statement.
Create a balance sheet and cash flow statement addressing the instructor's findings from previous class homework(s) by doing the following:
i. Conduct an internet search or use an example located in the textbook as a template to create a balance sheet and cash flow statement.
ii. Review the revenue and expense items based on comments made by the instructor, if any, from week four to best estimate realistic values for the balance sheet and cash flow statement.
iii. Explain the order in which the financial statements are prepared and how they are connected.
Look for an example I will have posted in class in week four and will repost in week five which shows all three financial statements with sample data and how they are connected.
Format your homework according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.