Part 1Build a pro forma Excel sheet estimating revenue and all operating cost items of the business...

Question

Part 1Build a pro forma Excel sheet estimating revenue and all operating cost items of the business for each of the first 3 years (12 quarters) of operation. Review the pro forma examples provided in the topic Resources. Pro forma estimates should be based on researched information and rationalassumptions.Part 2Write a 750-1,000-word summaryof your pro forma spreadsheet. Include the following items:Describe how you developed the pro forma projected expenses and operating costs.Explain your revenue estimates, variable costs, fixed costs, margin, and how your arrived at your figures.While APA style is not required for the body of this assignment, solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelinesTogether, the Excel spreadsheet and summaryshould define and defend financial projections for your business idea as if you were presenting to key stakeholders.

Tanmoy · Accepted Answer

Financial Estimation		4
FINANCIAL ESTIMATION
Table of Contents
Part 1	3
Part 2	4
References	7
Part 1
	Below is the Proforma of revenue and the total operating expenses with respect to a business which have been represented through an Excel sheet.
	Particulars
	2021
	2020
	2019
	Sales Revenue
	100000
	75000
	60000
	Cost of Sales
	45000
	30000
	16000
	Gross Profit
	55000
	45000
	44000
	Operating Expenses
	7500
	2550
	2500
	Rent
	1000
	500
	250
	Web Hosting
	150
	75
	100
	Advertising
	300
	250
	300
	Total Operating Expenses
	8950
	3375
	3150
	Operating Income
	46050
	41625
	40850
	Particulars
	2021
	2020
	2019
	
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Sales Revenue
	15000
	20000
	25000
	40000
	7500
	13000
	25000
	29500
	10000
	15000
	20000
	15000
	Cost of Sales
	10000
	5000
	20000
	10000
	5000
	10000
	7500
	7500
	2500
	3500
	5000
	5000
	Gross Profit
	5000
	15000
	5000
	30000
	2500
	3000
	17500
	22000
	7500
	11500
	15000
	10000
	Operating Expenses
	1000
	1500
	2000
	3000
	250
	750
	750
	800
	500
	500
	500
	1000
	Rent
	100
	200
	300
	400
	100
	100
	100
	200
	50
	50
	50
	100
	Web Hosting
	25
	25
	25
	75
	15
	20
	20
	20
	25
	25
	25
	25
	Advertising
	50
	50
	100
	100
	50
	50
	50
	100
	50
	50
	100
	100
	Total Operating Expenses
	1175
	1775
	2425
	3575
	415
	920
	920
	1120
	625
	625
	675
	1225
	Operating Income
	3825
	13225
	2575
	26425
	2085
	2080
	16580
	20880
	6875
	10875
	14325
	8775
	Proforma revenue and operating expenses are the projected annualized expenses which is structured on the basis of a trailing 12-month period which is adjusted upwards by CPI. This is adjusted reasonably by the lenders to take into account the increase in the operating expenditures of the company. Therefore, it is sum of all the expenses which are being projected rationally by the borrowers and also approved by the agent which necessitates to be paid while testing of the pro-forma period (Law Insider, 2022). While review of the financial statement of the companies, it is very common to view the proforma-earnings or revenue in the report. Further, proforma revenue is known as the earnings generated by the company which excludes any specific events or any forms of transactions such as the cost of restructuring or litigation expenses. Hence, it is proforma revenue which is used for reporting the business earnings when the fiscal period was greater than the line of normal expectations. Hence,

Part 1 Build a pro forma Excel sheet estimating revenue and all operating cost items of the business for each of the first 3 years (12 quarters) of operation. Review the pro forma examples provided in...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment