two year plan for years 5 and 6
Write a Two Year Plan for Year 5/Quarter 1 through Year 6/Quarter 4.
I only need help in the FINANCIAL STATEMENTS:
1)Pro forma Assumptions: At the beginning of this section, state each assumption used in calculating your proformas. For example: Advertising = 1% of quarterly sales; Dividends = $.05 per share every quarter. These assumptions should be the same as the assumptions in the Strategy section. Do NOT list the assumptions or equations common to all companies that are listed in the BPG Player’s Manual.
2)Income Statements, Balance Sheets, Cash Flow Statements: Provide quarterly statements with annual totals covering Years 3 through 6. The Year 3 and 4 statements will show actuals, while Years 5 and 6 will be pro-forma. Arrange statements in a logical order and explain to the reader how they are organized. You are required to provide the following: Income Statements: consolidated quarterly income statements with annual totals.Balance Sheets: consolidated year-end balance sheets. Cash Flow Statements: consolidated quarterly cash flow statements with annual totals.
3)Pro Forma Analysis: For each of the six performance criteria, compare your pro forma results in your financial statements with the Goals/Objectives (Section #3). This tests whether your plan works (i.e., whether it achieves your objectives). For example: if your objective was to achieve Net Income of $5,000,000 in Year 5 and $8,000,000 in Year 6, compare the Net income from the pro forma with these two objectives. State whether your objectives are met by your plan. Although Stock Price cannot be measured directly from your pro forma statements, it can be estimated indirectly. Calculate your historical Price-to-Earnings Ratio (i.e., P/E Ratio) and use that ratio with your proforma earnings to estimate your future stock price.
