Question

610A

Create a Pro-Forma balance sheet, income statement, and statement of cash flow projecting the first year of our product in the business. These preliminary projections are based on research and data collected so far and will likely change, once our products are commercialized. Each statement should address the financial components of features, expenses, and sales of your product or service. It is typical for net income to be negative at this point. Do not assume that you have sales at this point unless you have sold your product or service.

You are starting a new business: You need to create the following:

Balance sheet:

Income statement:

Statement fo cash flow:

Fixed and variable expenses:

Start-up expenses:

Breakeven analysis:

Your start-up is an athletic clothing line for women size 14 and up. To see which way we should go when we put our products out on the market.  (You can use any figures you want, as this is a fictional business). This business will be having a different company manufacturing our clothes at another location. Our 24/7 customer helpline and online ordering will be located in our own offices in Las Vegas, NV. There is no upper management at the start, just the owner, who will draw an initial salary, of $2,000.00 per month. There will initially be 10 phone customer service operators, at $10.00 per hour. Our website is ready to go when we are able to have sufficient inventory. We need to create the statement categories listed above.

Answer 1

Income Statement
Particulars	Expense($)	Particulars	Income($)
Owners salary	24000	Revenue	500000
Customer service operators salary	292000
Rent	60000
Office Maintenance	12000
Transfer to Capital	112000
Total	500000	Total	500000

Balance Sheet
Particulars	Liabilities($)	Particulars	Asset($)
Accounts payable	21800	Cash	51,324
Capital	112000	Accounts receivable	4,868
		Computer supplies	67,608
		Start up expenses	10,000
Total	133800		133800

Fixed cost

Rent(5000 per month)

Owners salary($2000 per month)

Maintenace cost($1000 per month)

Variable cost

Customer Service operators

(10 numbers $10 per hour for 8hrs per day 365 days)