Using the sample financial statements, create pro forma statements of five year projections that are clear, concise, and easy to read. Be sure to double check the calculations in your pro forma statements. Make assumptions that support each line item increase or decrease for your forecasted statements.

Discuss and interpret the financials in relation to the initiative. Make recommendations on potential discretionary financing needs.

XYZ Company, INC.
Balance Sheet
For Year Ending December 31, 20XX

ASSETS
Current Assets
Cash

10,525

Accounts Receivable

27,000

Inventory

30,000
2,000

Prepaid Expenses
Total Current Assets

69,525

Fixed Assets
215,000

Property—net of depreciation

80,000

Equipment—net of depreciation

5,000

Vehicles—net of depreciation
Total Fixed Assets

300,000

Total Assets

369,525

LIABILITIES
Current Liabilities
20,000

Revolving lines of credit

5,000

Accounts Payable
Current Portion of Long-term Debt
Total Current Liabilities

15,000
40,000

Long-term Liabilities
Long-term debt and capital leases

45,500

Loans payable to stockholders

60,500

Total Long-term Liabilities

106,000

Total Liabilities

146,000

Stockholders Equity
1,000

Common stock
Additional Paid-in Capital

25,000

Retained Earnings (Cum from prior years)

53,190

Retained Earnings (From current P&L)

144,335

Total Stockholders Equity

223,525

Total Liabilities and Stockholders Equity

369,525

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