Produce budgeted income statements, balance sheets and cash flow statements for the first two years of the business. Showing a range of financial ratios that are expected to be achieved.

The two-year financial statements of the company have its weakness in income statement.  On the contrary, the balance sheet as well as the cash flow statements is healthy. This is primarily because of the intervention of property and equipment of the firm to valuation of assets.  The liquidity ratios of the company is generally strong, however, its cash reserves is minimal.  The worst indicator of all is the profitability reflecting the weakness in income statement.  This figures, however, is expected to rise once the company had established rapport with its clients and its reputation build-up.  The firm’s efficiency in property and equipment is also strong indicating the contribution of fixed assets to the balance sheet of the firm.  The company is utilizing its debt and equity financing options pretty well and this lead to minimal financial risks with various financing alternatives/ depth.        

 

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