Financial Corporate Accounting

Decide upon an initiative you want to implement that would increase sales over the next five years, (for example, market another product, corporate expansion, and so on).

Using the sample financial statements, create pro forma statements of FIVE year projectionsthat 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.

Write a 350 – 700 word analysis of the company’s short term and long term financing needs and determine strategies for the company to manage working capital.



Step 1: You must decide what your base objective is. Are you adding a new product, expanding overall operations, etc? Discuss this in general. Basically, tell me why you are choosing this objective and what you expect to accomplish within 5 years.


Step 2: Take a look at your Sample Financial Statements. One link consists of an Income Statement. The other link consists of a Balance Sheet. Consider these Year ZERO. I would actually take both of these documents and import or enter the figures into an Excel Spreadsheet manually as Year ZERO.


Step 3: Once you have reviewed the above documents, then you need to give me FIVE more years of Income Statements AND FIVE more years of Balance Sheets. Year ZERO does NOT count! Your increases/decreases are up to you, but should fall in line with your overall “made up” objective in Step 1. Logic takes precedence over accuracy here as this is an exercise that will allow you to see how increases and decreases affect one statement or both. Do your best here as there are NO points for accuracy. Points are based on GOOD format and logic as it relates to Step 1. **You can either insert the spreadsheet or attach as a separate document.**


Step 4: You must give me a writeup in APA format. Make sure you have an intro, discuss the logic and results from Steps 1-3, and then give me a conclusion. APA format is required. DETAILS re your increases/decreases and results are REQUIRED.


Grading Outline (5 points total):

Introduction – .5 points

Discussion Re Assumptions – .5 points

Income Statement Year One – .25 points

Income Statement Year Two – .25 points

Income Statement Year Three – .25 points

Income Statement Year Four – .25 points

Income Statement Year Five – .25 points

Balance Sheet Year One – .25 points

Balance Sheet Year Two – .25 points

Balance Sheet Year Three – .25 points

Balance Sheet Year Four – .25 points

Balance Sheet Year Five – .25 points

Conclusion – .5 points

APA (includes title page, references, spelling, grammar, readability, etc) – 1 point