This section should provide a calculation for the break-even point in dollars and units for the business. Include all assumptions upon which your break-even calculation is based. (Please refer to Appendices for Break-Even Analysis spreadsheet.)
A break-even analysis determines sales volume in dollars, at a given price, required to recover total costs.
Expressed as a formula, breakeven is:
Break-even Sales $ =
Fixed Costs
1- Variable Costs
Fixed costs are expressed in dollars but variable costs are expressed as a percent of the total sales dollar amount. To obtain the break-even point in terms of number of sales, simply divide the break-even sales (dollar amount) by the price of your product.
8.6 Balance Sheet
The balance sheet is a “”snapshot”” of what you own and what you owe on a specific date. A “”Pro Forma Balance Sheet”” shows how things will be in the future, under given conditions, rather than how they are now.
A balance sheet follows a standard format (please refer to the appendix for Balance Sheet template), however, it may contain additional items depending on circumstances relating to the business for which it is prepared. State the assumptions you used for all major changes between your last historical balance sheet and the projection.
8.7 Income Statement
The income statement is a financial statement that reveals whether or not a business has earned a profit or has suffered a loss after a specified period. (Please refer to the appendix for Income Statement template.)
An income statement may also be referred to as a “”profit and loss statement”” (PNL) or an “”operating statement.”
A “”Pro Forma Income Statement”” is used to show how things will be under given conditions rather than how they are at present.
Be sure to state any assumptions when creating your Income Statement.
8.8 Cash Flow
A cash flow statement identifies monthly inflows and outflows of cash. It reveals whether a company will have enough money to meet its needs on a monthly basis. (Please refer to the appendix for Cash Flow template.)
Use the Income Statement as a starting point. For each item, determine when you actually expect to receive cash (for sales) or when you will actually have to write a check (for expense items).
Your cash flow will show you whether your working capital is adequate. Clearly if your cash on hand goes negative, you will need more. It will also show when and how much you need to borrow.
Explain your major assumptions, especially those which make the cash flow differ from the Profit and Loss Statement, such as:
If you make a sale in month 1, when do you actually collect the cash? When you buy inventory or materials, do you pay in advance, upon delivery or much later?
How will this affect cash flow?
Are some expenses payable in advance?
Are there irregular expenses, equipment purchase or inventory buildup which should be budgeted?” 326 https://www.homeworkmarket.com/homework-answers?page=326
Position 1: Explain how you are right and the other person is wrong.
Position 2: Explain how the other person’s position is correct, or at least understandable.
Position 3: Show that there are both correct (or understandable) and mistaken (or unreasonable) parts of both positions.
Position 4: Describe at least two ways in which the elements developed in positions 1-3 might affect your relationship. Describe at least one way in which the issue might be seen as more important than it was originally.
Conclusion: Explain how there is some truth in each of the preceding positions. Also explain how viewing the issue from each side has changed your perception of the issue and how it may change your behavior in the future. Explain how this issue and your understanding of it may affect your relationship.
Position 1: Explain how you are right and the other person is wrong.
Position 2: Explain how the other person’s position is correct, or at least understandable.
Position 3: Show that there are both correct (or understandable) and mistaken (or unreasonable) parts of both positions.
Position 4: Describe at least two ways in which the elements developed in positions 1-3 might affect your relationship. Describe at least one way in which the issue might be seen as more important than it was originally.
Conclusion: Explain how there is some truth in each of the preceding positions.

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