The three months of Balance Sheets and Profit and Loss statements from February (Chapter 4), March (Chapter 5) and April (Chapter 7) will be used as the historical data in order to forecast out a 12-month projection for the next fiscal year in the form of a one year budgeted pro forma income statement.
Kristin Raina Interior Designs has decided to request a bank loan to expand her business and the lender has asked for a one-year projection of revenue and expenses. In order to request the loan, you will need to create a Pro Forma one year budgeted income statement broken down over 12 months. You will need to take a look at the actual ending financial statements for February, March and April and use this data to help create the forecast for the next fiscal year of business.
For this project, you can assume that the company is expanding the business for any reason, however below are some possible options for seeking out a loan. You can use one of these options or create a unique creative alternative for expansion in building the one-year pro forma budgeted income statement:
Keep in mind the request should be financially manageable and make sure to look ahead to next week’s module where this budget will be the foundation for a presentation that uses financial ratios to demonstrate why the amount of the loan is manageable and why it is a good investment in light of the strengths and weakness of the company. Using financial ratios will be critical in supporting your argument and be aware that most bankers or lenders will not even consider a loan prospect without addressing, for example, the impact of additional debt on your debt to equity ratio.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more