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Analyze the pro forma statements and analysis created in the previous module and create a detailed PowerPoint presentation with speaker’s notes to demonstrate why the bank should give your company a loan. The amount requested and loan terms should be financially manageable and you need to justify the amount requested in your presentation. Your presentation should include:A clear explanation of how much money is being requested from the lender and how the money will be used to expand the business.General explanation of the business; who are the customers, where is it located, how long has it been in existence, etc.An overview of the 12 Month Pro Forma Budgeted Income Statement created in the previous module with ratios.An analysis of the year end income statement that includes key financial ratios.An overview of the financial strengths and weaknesses of the company and an explanation of how those elements will be leveraged and minimized to ensure that the loan will be a good solid investment and financially manageable. Make sure to use financial ratios to support your argument and help sell this idea to the lender.Finally, keep in mind that the audience of this presentation will be the lender and that the goal of this presentation is to sell the Cloud Ware company as a good investment to the potential lender.SPEAKER NOTES ARE MANDATORY
pro_forma.xlsx

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A few notes to help you be successful:
1. USE FORMULAS. These are required, and are assessed as part of your grade. Practice with a blan
2. DO NOT SKIP STEPS. The instructions are somewhat vague as to the amount of the loan and the
The rest of the parameters and a skeleton of where to start have been completed for you on subse
3. Don’t stress, just START. Hopefully with this template provided, you have a better idea of how y
4. The assignment references a company called “Cloud Ware.” This is your “QB CLOUD” company t
our grade. Practice with a blank spreadsheet and numbers you can predict the correct answer to if necessary.
e amount of the loan and the purpose for the loan, but that’s to give you a little creative freedom here.
your “QB CLOUD” company that you have been working on in QuickBooks Online.
Instructions: Calculate the dollar amount change and the percent change in the balance sheet ite
Note: We cannot divide a number by 0, so in the case where your % change calculation uses a ba
Otherwise you’ll get a Div/#0 type of error from your formula.
QB Cloud
Balance Sheet
Comparative Statements
As of 11/30/2018
As of 12/31/2018
Dollar Amount
Change
ASSETS
Current Assets
Bank Accounts
61,469.59
101 Checking
Total Bank Accounts
$
61,469.59
53,493.52
-7,976.07
-7,976.07
400.00
400.00
53,493.52
$
Accounts Receivable
0.00
105 Accounts Receivable (A/R)
Total Accounts Receivable
$
0.00
$
400.00
Other Current Assets
11,960.00
115 Merchandise Inventory
9,870.00
123 Prepaid Rent
6,000.00
0.00
125 Prepaid Insurance
3,000.00
2,250.00
Total Other Current Assets
Total Current Assets
$
20,960.00
$
12,120.00
$
82,429.59
$
66,013.52
-2,090.00
-6,000.00
-750.00
-8,840.00
-16,416.07
Fixed Assets
10,000.00
135 Computer Equipment
10,000.00
-800.00
Total Fixed Assets
TOTAL ASSETS
$
10,000.00
$
9,200.00
$
92,429.59
$
75,213.52
0.00
-800.00
-800.00
-17,216.07
LIABILITIES AND EQUITY
Liabilities
Current Liabilities
Accounts Payable
17,920.00
201 Accounts Payable (A/P)
Total Accounts Payable
$
17,920.00
3,120.00
$
3,120.00
-14,800.00
-14,800.00
Other Current Liabilities
5,000.00
205 Loan Payable
Total Other Current Liabilities
Total Current Liabilities
Total Liabilities
5,000.00
$
5,000.00
$
5,000.00
$
22,920.00
$
8,120.00
$
22,920.00
$
8,120.00
0.00
0.00
-14,800.00
-14,800.00
Equity
301 Common Stock
305 Opening Balance Equity
60,000.00
60,000.00
0.00
0.00
0.00
0.00
9,509.59
7,093.52
-2,416.07
318 Retained Earnings
Net Income
Total Equity
TOTAL LIABILITIES AND EQUITY
$
69,509.59
$
67,093.52
$
92,429.59
$
75,213.52
-2,416.07
-17,216.07
in the balance sheet items from November to December.
ge calculation uses a base year of 0, just type in NA instead.
% Change
-12.98%
-12.98%
NA
-17.47%
-100.00%
-25.00%
-42.18%
-19.92%
0.00%
NA
-8.00%
-18.63%
-82.59%
-82.59%
0.00%
0.00%
-64.57%
-64.57%
0.00%
NA
-25.41%
-3.48%
-18.63%
Instructions: Calculate the dollar amount change and % change in income statement items from
for the next 12 months. Choose your parameters- will the expansion increase sales by a certain
expenses that won’t change at all because they are fixed? Calculate the subtotals and the totals
Note: We cannot divide a number by 0, so in the case where your % change calculation uses a ba
QB Cloud
Profit and Loss
Comparative Statements
Month Ending
October 31, 2018
Month Ending
Novmeber 30, 2018
Income
6,000.00
401 Sales
Total Income
$
6,000.00
11,920.00
$
11,920.00
Cost of Goods Sold
501 Cost of Goods Sold
0.00
5,960.00
Total Cost of Goods Sold
0.00
5,960.00
Gross Profit
$
6,000.00
$
5,960.00
Expenses
601 Advertising
125.00
250.00
20.00
20.00
605 Dues & Subscriptions
150.00
0.00
607 Depreciation Expense
0.00
0.00
64.65
89.15
0.00
0.00
603 Bank Charges
609 Freight & Delievery
611 Insurance
619 Meals and Entertainment
126.40
46.40
621 Office Supplies
226.85
111.82
0.00
0.00
140.00
0.00
47.00
0.00
629 Stationery & Printing
425.22
127.96
633 Telephone
158.32
158.32
79.00
84.32
623 Rent or Lease
625 Repair & Maintenance
627 Shipping Freight & Delivery
635 Utilities
Total Expenses
$
1,562.44
$
887.97
Net Operating Income
$
4,437.56
$
5,072.03
Net Income
$
4,437.56
$
5,072.03
January
February
Income
401 Sales
402 Services
Total Income
21,174.03
$7,300
28,474.03
33,913.74
11,692.17
45,605.91
Cost of Goods Sold
501 Cost of Goods Sold
Total Cost of Goods Sold
Gross Profit
9,770.17
9,770.17
18,703.87
15,648.55
15,648.55
29,957.36
600.60
20.00
0.00
1200
113.65
750
120.68
200.11
6,000.00
200
51.7
115.82
240.45
85
9,698.01
9,005.86
9,005.86
1,093.09
20.00
125.00
1800
174.65
750
132.75
210.12
6,000.00
200
51.7
115.82
240.45
85
10,998.58
18,958.78
18,958.78
Expenses
601 Advertising
603 Bank Charges
605 Dues & Subscriptions
607 Depreciation Expense
609 Freight & Delievery
611 Insurance
619 Meals and Entertainment
621 Office Supplies
623 Rent or Lease
625 Repair & Maintenance
627 Shipping Freight & Delivery
629 Stationery & Printing
633 Telephone
635 Utilities
Total Expenses
Net Operating Income
Net Income
e in income statement items from October to December. Then, complete your projected profit and loss
ansion increase sales by a certain percentage? What does that increase do to the variable expenses? Are t
ulate the subtotals and the totals as well. Format your work appropriately. Your audience is the lending in
our % change calculation uses a base year of 0, just type in NA instead. Otherwise you’ll get a Div/#0 type
loud
nd Loss
Statements
Month Ending
December 31, 2018
13,220.00
$
13,220.00
$
6,610.00
$
6,610.00
6,610.00
330.00
20.00
125.00
800.00
52.65
750.00
109.71
200.11
6,000.00
150.00
47.00
115.82
240.45
85.33
$
9,026.07
-$
2,416.07
-$
2,416.07
Dollar Amount
Change
% Change
7,220.00
7,220.00
120.33%
120.33%
6,610.00
6,610.00
610.00
NA
NA
10.17%
205.00
0.00
-25.00
800.00
-12.00
750.00
-16.69
-26.74
6,000.00
10.00
0.00
-309.40
82.13
6.33
7,463.63
-6,853.63
-6,853.63
164.00%
0.00%
-16.67%
NA
-18.56%
NA
-13.20%
-11.79%
NA
7.14%
0.00%
-72.76%
51.88%
8.01%
477.69%
-154.45%
-154.45%
QB Cloud
Pro Forma Budgeted Income Statement
12 Month Projection
March
April
May
June
July
91,916.01
31,689.14
123,605.15
119,567.41
41,222.29
160,789.70
137,552.35
47,422.81
184,975.15
54,318.51
18,726.95
73,045.47
70,659.33
24,360.65
95,019.98
25,063.76
25,063.76
47,981.70
32,603.78
32,603.78
62,416.20
42,412.08
42,412.08
81,193.07
55,171.05
55,171.05
105,618.66
63,469.69
63,469.69
121,505.46
1,989.43
20.00
150.00
2700
235.65
750
146.02
220.62
6,000.00
200
51.7
115.82
240.45
85
12,904.69
35,077.01
35,077.01
2,805.09
20.00
0.00
4050
266.15
750
160.63
231.65
6,000.00
200
51.7
115.82
240.45
85
14,976.49
47,439.71
47,439.71
3,955.18
20.00
125.00
6075
296.65
750
176.69
243.23
6,000.00
200
51.7
115.82
240.45
85
18,334.72
62,858.35
62,858.35
5,576.80
20.00
150.00
9112.5
327.15
750
194.36
255.40
6,000.00
200
51.7
115.82
240.45
85
23,079.18
82,539.48
82,539.48
6,720.05
20.00
0.00
13668.75
342.40
750
213.79
268.17
6,000.00
200
51.7
115.82
240.45
85
28,676.13
92,829.33
92,829.33
ed profit and loss
ble expenses? Are there
ence is the lending institution.
‘ll get a Div/#0 type of error from your formula.
August
158,242.51
54,555.99
212,798.50
September
182,044.82
62,762.12
244,806.94
October
195,736.11
67,482.35
263,218.46
November
210,457.10
72,557.59
283,014.69
December
226,285.22
78,014.52
304,299.75
73,016.59
73,016.59
139,781.91
83,999.50
83,999.50
160,807.44
90,316.96
90,316.96
172,901.50
97,109.55
97,109.55
185,905.13
104,413.00
104,413.00
199,886.75
8,097.66
20.00
125.00
20503.125
357.65
750
235.17
281.57
6,000.00
200
51.7
115.82
240.45
85
37,063.15
102,718.76
102,718.76
9,757.68
20.00
150.00
30754.6875
372.90
750
258.69
295.65
6,000.00
200
51.7
115.82
240.45
85
49,052.58
111,754.86
111,754.86
10,757.84
20.00
0.00
46132.03125
380.53
750
284.56
310.44
6,000.00
200
51.7
115.82
240.45
85
65,328.36
107,573.14
107,573.14
11,860.52
20.00
125.00
69198.04688
388.15
750
313.02
325.96
6,000.00
200
51.7
115.82
240.45
85
89,673.66
96,231.47
96,231.47
13,076.22
20.00
150.00
103797.0703
395.78
750
344.32
342.26
6,000.00
200
51.7
115.82
240.45
85
125,568.61
74,318.14
74,318.14
Instructions: Address the following questions in FULL SENTENCES. Be specific and det
supporting your answers with financial information when possible.
QB Cloud
Company Analysis
What is the financial situation of the company as of November 30?
The comany is in a good fiancial situation as of November 30 because the current ratio was 3.60. A ratio thati
desired because the current assets are more than the current liabilities. This mean the comany is able to gene
meet its short term financial comitments.
Did the financial situation improve, remain the same, or start to decline through the month of December?
As of december 31 the current ratio increased to 8.13 meanng that tha fiancial situation improved through th
december.
What areas of strength exist in the company? What are the company’s weaknesses?
Strenght
Increase in sales volume
New service introduced into the market
Weaknesses
Decrease in Net income from the month of november to december.
Increase in the cost of production
What are some areas where the company has opportunities for growth for the company’s financial situation?
The debt to equity ratio is low for the company is low and hence the company has the oportunity to grow its a
hence increasing the finiaicial situaiton.
Debt to Equity Ratio
November
Liabilities equity: $22,920.00
Total equity: $69,509.59
Ratio = 0.33
December
Total liabilities: $8,120.00
Total equity: $67,00.52
Ratio = 0.12
Current Ratio
November
Current assets: $82,429.59
Current Liabilities: $22,920.00
Ratio = 3.60
December
Current assets: $66,013.52
Current Liabilities: $8,120.00
Ratio = 8.13
Profit Margin
November
Net Income: $5,072.03
Sales: $11,920.00
Ratio = 0.43
December
Net Income: $2,416.07
Sales: 13,220.00
Why are you requesting the loan? What is the proposed expansion of the business?
Increase the business inventory
Increase The companies fixed assets
Iincrease the companies advertisement.
What are the anticipated impacts on the financial ratios due to the proposed expansion? Consider added prin
What are the anticipated impacts on the financial ratios due to the proposed expansion? Consider added prin
liabilities and added assets on the balance sheet, as well as the impacts to the profitability on the income stat
05, you will explore these further- let’s hear your initial thoughts here though.
If the liabilties are added and the assets are added the fiancial ratios will not have a major change.
NTENCES. Be specific and detailed,
n possible.
sis
current ratio was 3.60. A ratio thatis more than 1 is
This mean the comany is able to generate cash to
through the month of December?
ancial situation improved through the month of
eaknesses?
or the company’s financial situation?
mpany has the oportunity to grow its assets using debt
e business?
osed expansion? Consider added principal to the
osed expansion? Consider added principal to the
o the profitability on the income statement. In Mod
not have a major change.

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