Supply chain management and financial plan Management Essay
Assignment 4: Supply Chain Management and Financial Plan
Due Week 10 and worth 135 points
"One of the most important steps in launching a new business venture is fashioning a well-designed, practical, realistic financial plan." (Scarborough & Cornwall, 2015, p. 454).
With this assignment, you are creating two important elements of a financial plan: an Income Statement and Balance Sheet. You also are preparing an outline of a presentation of your business plan to potential investors or lenders.
Using the business you created from Assignments 2 and 3, write a three to four (3-4) page paper in which you:
Prepare a simple pro forma (projected) income statement and balance sheet for the first two years of operation, using income projections and incorporating an advertising plan.
Outline a plan for hiring and retaining competent, motivated employees for your business.
Prepare an outline for a "pitch," i.e., a short 20-30 minute business plan presentation that will be made to lenders or investors.
Include at least two (2) references outside the textbook.
Your assignment must follow these formatting requirements:
This course requires use of Strayer Writing Standards (SWS). The format may be different than other Strayer University courses. Please take a moment to review the SWS documentation for details (more information and an example is included in the Strayer Writing Standards left menu link).
Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page and the reference page are not included in the required page length.
The specific course learning outcomes associated with this assignment are:
Analyze the key financial management considerations in operating a small business, including sources of financing.
Determine the various control and support functions needed to manage a small business.
Use technology and information resources to research issues in small business management.
Write clearly and concisely about small business management using proper writing mechanics.
Supply Chain Management and Financial Plan
Author’s Name
The Institutional Affiliation
Course Number and Name
Instructor Name
Assignment Due Date
Table of Content
TOC \o "1-3" \h \z \u 1. Introduction PAGEREF _Toc51178954 \h 32. Pro-forma Income Statements PAGEREF _Toc51178955 \h 33. Pro-forma Balance Sheets PAGEREF _Toc51178956 \h 44. Advertising Plan PAGEREF _Toc51178957 \h 45. Employees Hiring and Motivational Plan PAGEREF _Toc51178958 \h 55.1. Support Functions to Manage Small Business PAGEREF _Toc51178959 \h 65.2. Technological Methods and Tools to Manage Research Issues PAGEREF _Toc51178960 \h 76. Financial Management Considerations for Sources of Finance PAGEREF _Toc51178961 \h 77. Management Strategies PAGEREF _Toc51178962 \h 88. Conclusion PAGEREF _Toc51178963 \h 9Reference List PAGEREF _Toc51178964 \h 10
Supply Chain Management and Financial Plan
1. Introduction
The current report presents a supply chain management and financial plan for the product of Move-Up.
2. Pro-forma Income Statements
The projected results for 2021 and 2022 are generated using the percentage of sales method. 20% projected growth rate is used for the next two years.
Table 1: Pro-Forma Income Statements for 2021 and 2022 using the percentage of sales method.
2020
Vertical Analysis
Revenue Growth Rate
2021
Vertical Analysis
2022
3 Years Average Revenue
$
$
$
$
Revenue
2,500,000
100.00%
20%
3,000,000
100.00%
3,600,000
3,033,333
Cost of Revenue
1,200,600
48.02%
1,440,720
48.02%
1,728,864
Gross Profit
1,299,400
51.98%
1,559,280
51.98%
1,871,136
Operating Expenses
Research and Development
110,000
4.40%
132,000
4.40%
158,400
Selling General and Administraation
145,000
5.80%
174,000
5.80%
208,800
Total Online advertisment Costs
195,000
7.80%
234,000
7.80%
280,800
Total Offline advertisment Costs
180,800
7.23%
216,960
7.23%
260,352
Interest Expense
20,000
0.80%
24,000
0.80%
28,800
Annual maintenance
12,000
0.48%
14,400
0.48%
17,280
Salaries and Wages
98,000
3.92%
117,600
3.92%
141,120
Other
150,000
6.00%
180,000
6.00%
216,000
Net Income(Profit)
388,600
15.54%
466,320
15.54%
559,584
3. Pro-forma Balance Sheets
A percentage of sales method is used to create pro forma balance sheets for the year 2021 and 2022.
Table 2: Pro-Forma Balance Sheets for 2021 and 2022
2020
Basis
2021
Basis
2022
Used Values for Calculation
Assets
$
$
$
Average Revenue 3 Years=
Cash in hand
300,000
9.89%
296,703
9.89%
356,044
3,033,333
Current Assets
110,000
3.63%
108,791
3.63%
130,549
Revenue for 2021= 3,000,000
Net Account Receivable
45,000
1.48%
44,505
1.48%
53,407
Revenue for 2020= 3,600,000
Inventory
85,000
2.80%
84,066
2.80%
100,879
Prepaid Expenses
6,000
0.20%
5,934
0.20%
7,121
Total Current Assets
546,000
18.00%
540,000
18.00%
648,000
Non-Current Assets
Long Term Investment
28,000
0.92%
27,692
0.92%
33,231
Land
20,000
0.66%
19,780
0.66%
23,736
Plant and Equipment
18,000
0.59%
17,802
0.59%
21,363
Total Non Current Assets
66,000
2.18%
65,27...
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