Part II: Financial Statements
Prepare a projected income statement and balance sheet for the firm by doing the following:
- Refer to and follow the steps given in Chapter 8 of the David text to learn how to complete financial statements.
- Apply current acceptable financing percentages afforded your CLC groups company according to the Standard and Poors or Moodys rating.
- Make any other assumptions necessary for this segment of the project and have them approved by your instructor prior to completing this part of the assignment.
- Assume that the firm needs to secure capital to implement the strategy your team proposes to recommend. Your instructor will give you an amount if the team doesnt determine an amount that will accommodate the production of the required reports.
- Use the information gathered above to prepare a projected income statement and balance sheet for the firm using your Strategic-Planning Template.
- In 50-100 words each, provide an analysis overview for both the projected financial statement and balance sheet.
Part III: Cash Value
Determine the Cash Value of the company by doing the following:
- Refer to and follow the steps given in Chapter 8 of the David text to learn how to determine the cash value of your CLC groups company.
- To construct this element of the project, it will be necessary for the team to make use of the financial information provided initially about the company as well as the information and data that youve discovered as a result of the research and assignments completed thus far in the course.
- Calculate the financial worth of the firm based on four approaches: (1) the net worth method, (2) the net income method, (3) the price-earnings ratio method, and (4) the outstanding shares method.
- Use your Strategic-Planning Template to complete the company valuation tables.
- In 50-100 words, provide an analysis overview for this part. Calculate the average of the four methods. State a dollar amount of how much the company is worth.