ACCU 360 Assignment Help of Brandman University ACCU 360 Assignment Help of Brandman University | Page 14

For the purpose of this assignment, you will be relying on the directions given under
‘Forecasting Assumptions’ to complete the Excel workbook.
Case Overview
Janelle Higgins has decided to start her own event planning business (JH Events) in
the upcoming year. She believes that she has an innovative business model and is
seeking a business loan. Therefore, Janelle is in the process of putting together a
business plan. As part of her business plan, Janelle must include forecasted financial
statements for the first 5 years. The forecasted financial statements to be included
are: Income Statement, Balance Sheet, and Statement of Cash Flows. Janelle must
also include a set of calculated ratios along with an overall assessment on the
projected health of the company.
Forecasting Assumptions
First year sales are projected to be $150,000 and grow 3% for the next two years and
5% in year 4 and 5.
Cost of sales are projected to be 45% of revenue in the first year and is expected to
grow at the same rate as sales.
Advertising expenses are projected to be 4% of each year’s projected revenue.
Janelle will need to rent equipment for the events she puts on. She has an agreement
with a rental company for a flat rate of $500 per month and is sufficient to cover all
of her estimated events. Starting in Year 3, she expects to be able to handle more
events and the rental rate will increase to $750 per month.