Discuss how the components of the financial plan relate to each other?

Consider an entrepreneurial opportunity. Write a financial plan for the opportunity. Actual amounts are not required; rather, realistic estimates can be used. The plan should include the following:

 

  1. Three-year pro forma income statement
  2. Three-year pro forma cash flow
  3. End of first-year balance sheet
  4. Break-even analysis 

 

Then, answer the following questions:

 

  • How do the components of the financial plan relate to each other?
  • What can an entrepreneur determine by analyzing the financial plan?

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