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:
- Three-year pro forma income statement
- Three-year pro forma cash flow
- End of first-year balance sheet
- 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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