Assignment-
(A) At this stage, it is wise to think and document the start up costs for the new product or service you are proposing in your final project. Be sure to note the rationale you are using for the costs and the assumptions you have about the costs. Use the following categories:
• Facilities: land purchase, building purchase, initial rent, deposits (security/utilities/etc.), improvements/remodeling
• Equipment: furniture, production machines/equipment, computers/software, cash registers, telephones/telecommunications, vehicles
• Materials/Supplies: office supplies, stationery/business cards, brochures/pamphlets, other descriptive material
• Fees and Other Costs: licenses/permits, trade or professional memberships, attorneys, accountants, insurance, marketing/management consultants, design/technical consultants, advertising/promotional activities
(B) For the proposed new product or service for your final project, create a Forecasted Profit/Loss Statement for the first year and a Balance Sheet. To access and download templates for each, follow the links below:
Profit/Loss Statement Template - https://templates.office.com/?legRedir=true&qu=Profit+Loss+Statement&ex=1&CorrelationId=91c98f6f-1dfe-4a3c-ac0f-11e872f73aa4#ai:TC103986991|
Balance Sheet Template - https://templates.office.com/?legRedir=true&qu=Balance+Sheet&ex=1&origin=TC103844935&CorrelationId=e6c44f1c-f134-44bc-a156-50e787a7f668#ai:TC103934533|
You will need to submit the Profit/Loss Statement and Balance Sheet for grading, as well as a one-page supplemental document that includes the background, rationale, and assumptions for the numbers included on the financials. Be sure to include the following:
1. Forecast Revenue for 12 months.
2. Forecast Operating Expenses for 12 months.
3. Calculation of the projected profit/loss for the first year.
4. Documentation of the expected total assets and liabilities.