Create contingency plans to address major problems or setbacks as they occur, discussion help

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Create contingency plans to address major problems or setbacks as they occur.

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Running head: CAPSTONE PROJECT 1 Financial Plan Pro Forma Income Statement Please see attached excel sheet. Break-even Point See attached excel sheet. Sources of Investment Capital Green Grocer will do comprehensive research to compare different investment avenues. Small businesses will typically seek out small business loans to help the company start up and continue to grow. Capital is necessary in order to rent the space necessary for the store, the fixed assets that are needed as well as all of the stock. Green Grocer will need employees hired and trained prior to opening so the investment will be beneficial to this avenue as well. Wakefern Food Corporation is a cooperative that assists small businesses in breaking into the industry and compete in the big business world. They offer support in innovative technology, private development, and procurement practices (About Us, n.d.). By partnering with Wakefern Food Corporation, Green Grocer will have the support necessary at arm’s length to help the company start up and continue to be successful. Green Grocer will also seek financial assistance from private loans. Having a diversified portfolio of financial assistance will allow Green Grocer to pay off loans quicker with smaller amounts owed. Once Green Grocer is profitable, the loans would be paid off and the company will be self-sustainable. CAPSTONE PROJECT 2 Another avenue that Green Grocer will research will be investment capital from friends and family. By borrowing from friends and family, Green Grocer will be able to form a small partnership from angel investors. The angel investor will have no votes to the operations of the company, however, they will be able to gain a potentially higher return on their investment with the success of Green Grocer. Business Strategy Sound business decisions are driven by meticulous data mining and data analysis to mitigate unforeseen and known risks. A way to manage or forecast potential risks is to evaluate a firm’s financial statements. These statements include the balance sheet, income statement, and cash flow statement. The balance presents a snapshot of the firm’s assets and liabilities as well as the firm’s existing stockholder’s equity. One can use the balance sheet to determine the scope/limits of our strategy in cohesion with the resources available to our firm. For example, if our strategy is extreme growth, the question being asked is how is how can we foster that growth? So analysts would have to analyze the balance sheet to see if the firm can draw from cash, existing stock if the firm is publicly traded, issue bonds, or liquidate the firm’s marketable securities to fund growth. Furthermore, one can use the income statement to analyze the historical revenue growth and expenses that coincide with that growth to determine a realistic strategy to compete within the competitive landscape. Likewise, analysts can use the income statement to predict growth and its impact on bottom line revenue by the creation of a pro-forma income statement. The pro-forma income statement then can then be used to determine free cash flow to determine a valuation of the company with respect to a changing or constant capital structure. The cash flow statement is the most important in terms of strategy, here we see cash CAPSTONE PROJECT 3 flow used in operations, financing activities and investing activities. One then can analyze whether or not free cash flow from operations is positive and to what extent is it positive with respect to invested capital to see whether the firm has a healthy return on invested capital. Financial Ratios Inventory turnover is crucial to The Green Grocer because the key product is fresh produce and meat. Unlike canned goods, produce spoils quickly, thus the Grocer would not be able to hold on to inventory very long, so it is important The Green Grocer quickly moves its inventory; otherwise there will be little room for profit. Since The Green Grocer is a modest little shop in the heart of downtown it can possibly move inventory as quickly as big boxed competitors which is how one would help reduce the low profit margins. Therefore, The Green Grocer will need to calculate and analyze sales on a weekly (if not, daily) basis and calculate the sales by square footage. Maximize profits by ensuring the square footage is being maximized. CAPSTONE PROJECT 4 References About Us. (n.d.). Retrieved November 12, 2016, from
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Explanation & Answer


A contingency plan addresses the major issues affecting an organization
Asset security-the destruction of property and company information this can be handled by having a
security plan to protect both hardware and software assets.
Continuity plan- in case of death of top executive that may threaten the continuity of the company t...

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