Description
A projected financial statement analysis seeks to forecast the impact of various implementation decisions. The pro forma financial statement can be part of the risk analysis of strategic plan. The goal of this assignment is to ensure your strategic plan is viable financially. In other words, does it create value for the firm?
Consider the cost structure and revenue streams for your strategic initiative plan. Research and data collected so far and will likely change once your product or service is commercialized. Each statement should address financial components of features, expenses, and sales of your product or service. It is typical for net income to be negativee at this point. Do not assume that you have sales at this point unless you have sold your product or service.
Research the following if your plan is entrepreneurial:
Balance sheet
Income statement
Statement of cash flow
Fixed and variable expenses
Startup expenses
Breakeven analysis
Research the following if your plan is a market expansion plan for an existing organization, or a mergers and acquisitions plan:
Balance sheet
Income statement
Statement of cash flow
Fixed and variable expenses
A projected budget
Breakeven analysis
Complete the “Projected Financial Statement Analysis (Pro Forma 3-Year Financial Plan)”including the “Questions” tab, “12 Month P& L" tab, “Year 1” tab, "Year 2 P&L” tab, and “Year 3 P&L” tab. The first year is monthly and the second and third year are presented quarterly. Please note the questions in the “Questions” tab may be answered at different points in completing the Profit and Loss information.
Explanation & Answer
Attached.
Date:
11/1/2019
Name:
Organization:
Hilton Hotels
[INSTRUCTOR FEEDBACK]
GENERAL INSTRUCTIONS
1 - Support your calculations by
explaining them and using citations (as necessary). These
explanations should be inserted into each account name using the
"Insert Comment" function (right click on desired cell to locate this
function). For example, if you forecast sales for month one as
$100,000, explain how you arrived at this figure. If the size of your
target market is 100M, the return rate of your promotion medium is
1% (Author, year), and the price of your product is $10. Therefore:
100M X .01 X $10 = $100,000.
Please be sure to expand the dialogue box so that the entirety of your
explanation is visible by the reader.
2 - This pro forma is intended only as a guide. You may completely
redesign this it as you see necessary for your unique organization and
its unique strategy. For example, numerous accounts are listed under
the General & Administrative heading. You are NOT required to use all
or any of these accounts, i.e. they are only meant as suggestions and
Pro Forma: Viability of Strategy
HILTON HOTELS
MARKETING STRATEGY: MARKET EXPANSION
Year 1
Month
INCOME
Sales
Accomondation
Food and beverages
Total Sales
One
Two
Three
Four
Five
105,000
55,950
$160,950
106,260
56,789
$163,049
107,535
57,641
$165,176
108,826
58,506
$167,331
110,131
59,383
$169,515
General & Administrative
Rent or lease
Utilities
Supplies
Legal staff
Depreciation on office equipment
6,500
6,000
200
34,870
2,000
6,565
6,060
202
35,219
2,020
6,631
6,121
204
35,571
2,040
6,697
6,182
206
35,927
2,061
6,764
6,244
208
36,286
2,081
Managerial salaries
Total General & Administrative
13,631
$63,201
13,631
$63,697
13,631
$64,198
13,631
$64,703
13,631
$65,214
1,500
800
0
4,298
1,500
800
0
4,298
1,500
800
0
4,298
1,500
800
0
4,298
1,500
800
0
4,298
$6,598
$6,598
$6,598
$6,598
$6,598
EXPENSES
Marketing & Promotional
Radio Ads
Newspaper
Face to face sales
Social Media
Total Marketing & Promotional
Strategy Development (new product,
acquisition, etc)
Product design
Prototype development
Market testing
Implementation
Total Development Expenses
Website Expenses
Website development
Hosting expenses
Maintenance expenses
Search Engine Optimization
Other?
Total Website Expenses
Employment Expenses
Recruitment costs
New staff
New Employee Benefits
Training costs
Total Employment Expenses
Occupancy Costs
Inventory Holding Cost - warehouse
Inventory Holding Cost - store
Communication expense
Utilities for Customer Support Space
Total Occupancy Costs
Other Expenses
Branding and furnishing
Total Other Expenses
Total Expenses
20,000
5,000
10,000
$35,000
5,000
$5,000
$0
$0
$0
35
100
35
100
35
100
35
100
35
100
$135
$135
$135
$135
135
7
15,360
691
15,000
$31,059
15,360
691
15,360
691
15,360
691
15,360
691
$16,051
$16,051
$16,051
$16,051
1,300
2,300
3,000
1,365
2,415
3,036
1,433
2,536
3,072
1,505
2,663
3,109
1,580
2,796
3,147
$6,600
$6,816
$7,041
$7,277
$7,522
30,000
$30,000
$0
$0
$0
$0
$172,592
$98,297
$94,023
$94,764
$95,520
MONTHLY NET PROFIT/(LOSS)
($11,642)
$64,753
$71,154
$72,568
$73,995
CUMULATIVE NET PROFIT/(LOSS)
($11,642)
$53,110
$124,264
$196,832...