Compare the November Balance Sheet with the balance sheet as of December 31st. create a Pro Forma

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Urnguy34

Business Finance

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Considering your Cloud Ware Company, compare the November ending Profit and Loss Statement with the end of December Profit and Loss statement. This work should be done in Excel.

Compare the November Balance Sheet with the balance sheet as of December 31st. After analyzing the statements, answer the following questions: -ATTACHED

  • What is the financial situation of the company as of November 30?
  • Did the financial situation improve, remain the same, or start to decline through the month of December?
  • What areas of strength exist in the company? What are the company's weaknesses?
  • What are some areas where the company has opportunities for growth for the company's financial situation?
  • To help you justify the above answers, financial ratios should be calculated. At minimum, the following ratios should be calculated and used to support your arguments:
    • Debt to Equity Ratio (Total Liabilities/Equity) This ratio provides a look at how much the creditors have put into the company compared to how much the owners have put into the company.
    • Current Ratio (Current Assets/Current Liabilities) This provides a look at whether the business has enough current assets to pay their current liabilities.
    • Profit Margin (Net Income/Sales) This provides a measure of how much profit is earned on each dollar of sales.

You have decided to request a bank loan to expand your Cloud Ware business and the lender has asked for a one-year projection of revenue and expenses.

To request the loan, you will need to create a Pro Forma one year budgeted income statement broken down over 12 months. You will need to look at the actual ending financial statements for October, November, and December and use this data to help create the forecast for the next fiscal year of business.

Using financial ratios will be critical in supporting your argument for the loan and be aware that most bankers or lenders will not even consider a loan prospect without addressing, for example, the impact of additional debt on your debt to equity ratio.

* ANY INFORMATION (numbers) that is missing or lacking just add to the balance sheets to do the assignment.

Unformatted Attachment Preview

cloud_ware Balance Sheet As of November 1, 2017 Total ASSETS Current Assets Bank Accounts 47,422.71 101 Checking -5,000.00 205 loans payable Total Bank Accounts $ 42,422.71 Accounts Receivable -120.00 105 Accounts Receivable (A/R) Total Accounts Receivable -$ 120.00 Other Current Assets 0.00 115 Merchandise Inventory 3,000.00 125 Prepaid Expenses Total Other Current Assets Total Current Assets $ 3,000.00 $ 45,302.71 $ 10,000.00 $ 55,302.71 Fixed Assets 10,000.00 135 Computer Equipment Total Fixed Assets TOTAL ASSETS LIABILITIES AND EQUITY Liabilities Total Liabilities Equity 60,000.00 301 Common Stock 0.00 305 Opening Balance Equity 318 Retained Earnings -4,697.29 Net Income Total Equity TOTAL LIABILITIES AND EQUITY $ 55,302.71 $ 55,302.71 Wednesday, Nov 01, 2017 02:55:25 PM GMT-7 - Accrual Basis cloud_ware Balance Sheet As of December 31, 2017 Total ASSETS Current Assets Bank Accounts 51,620.51 101 Checking -17,275.00 205 loans payable Total Bank Accounts $ 34,345.51 Accounts Receivable -260.00 105 Accounts Receivable (A/R) Total Accounts Receivable -$ 260.00 Other Current Assets 29,700.00 115 Merchandise Inventory 1,500.00 125 Prepaid Expenses Total Other Current Assets Total Current Assets $ 31,200.00 $ 65,285.51 Fixed Assets 135 Computer Equipment 10,000.00 137 Accumulated Depreciation -1,600.00 Total Fixed Assets TOTAL ASSETS $ 8,400.00 $ 73,685.51 $ 20,000.00 $ 20,000.00 $ 20,000.00 LIABILITIES AND EQUITY Liabilities Current Liabilities Accounts Payable 20,000.00 201 Accounts Payable (A/P) Total Accounts Payable Total Current Liabilities Total Liabilities Equity 60,000.00 301 Common Stock 0.00 305 Opening Balance Equity 318 Retained Earnings -6,314.49 Net Income Total Equity TOTAL LIABILITIES AND EQUITY $ 53,685.51 $ 73,685.51 Wednesday, Nov 01, 2017 02:54:35 PM GMT-7 - Accrual Basis cloud_ware Balance Sheet As of October 31, 2017 Total ASSETS Current Assets Bank Accounts 47,883.08 101 Checking -5,000.00 205 loans payable Total Bank Accounts $ 42,883.08 Accounts Receivable -120.00 105 Accounts Receivable (A/R) Total Accounts Receivable -$ 120.00 Other Current Assets 0.00 115 Merchandise Inventory 3,000.00 125 Prepaid Expenses Total Other Current Assets Total Current Assets $ 3,000.00 $ 45,763.08 $ 10,000.00 $ 55,763.08 Fixed Assets 10,000.00 135 Computer Equipment Total Fixed Assets TOTAL ASSETS LIABILITIES AND EQUITY Liabilities Total Liabilities Equity 60,000.00 301 Common Stock 0.00 305 Opening Balance Equity 318 Retained Earnings -4,236.92 Net Income Total Equity TOTAL LIABILITIES AND EQUITY $ 55,763.08 $ 55,763.08 Wednesday, Nov 01, 2017 03:21:29 PM GMT-7 - Accrual Basis
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forget thisplease use those copies

https://www.studypool.com/questi
ons/676350
by Robert F

Submission date: 03-Nov-2017 09:51PM (UT C-0400)
Submission ID: 874138440
File name: Cloudwarecompany_1.docx (55.31K)
Word count: 663
Character count: 3477

https://www.studypool.com/questions/676350
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cloud_ware
Balance Sheet
As of October 31, 2017

ASSETS
Current Assets
Bank Accounts
101 Checking
205 loans payable
Total Bank Accounts
Accounts Receivable
105 Accounts Receivable (A/R)
Total Accounts Receivable
Other Current Assets
115 Merchandise Inventory
125 Prepaid Expenses
Total Other Current Assets
Total Current Assets
Fixed Assets
135 Computer Equipment
Total Fixed Assets
TOTAL ASSETS
LIABILITIES AND EQUITY
Liabilities
Total Liabilities
Equity
301 Common Stock
305 Opening Balance Equity
318 Retained Earnings
Net Income
Total Equity
TOTAL LIABILITIES AND EQUITY

Wednesday, Nov 01, 2017 03:21:29 PM GMT-7 - Accrual Basis

Equity to debt ratio as at 30th Nov
E: D = (total assets – total liabilities): total liabilities
= ($82,655.11 - $26,820.000): $26,820.00
= 55835.11: 26820
= 2.082: 1

= 1: 0.48

Month
October
November
December

Month
October
November
December
January
February
March
April
May
June
July
August
September
October
November
December

Equity to debt ratio as at 30th Nov
E: D = (total assets – total liabilities): total liabilities
= ($82,655.11 - $26,820.000): $26,820.00
= 55835.11: 26820
= 2.082: 1
= 1: 0.48
Current ratio as at 30th Nov
Current ratio = current assets/ current liabilities
= $72,655.11 / $26,820.00
2,7
th

Profit margin as at 30 Nov
= -4,164.89/ 0
0

cloud_ware
Balance Sheet

s of October 31, 2017
Total

47.883,08
-5.000,00
$

42.8...


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