The Financials
When it comes to the financial future of Fearless Platinum Arts, the financials speak for themselves.
Below you will find dedicated 3-year financial reports compiled which include a Profit and Loss Statement, Cash Flow Analysis and the Balance Sheet for Fearless Platinum Arts.
Profit Loss Statement
With the profit/loss statement, Seema has presented the revenue and expectations for each of the 3 years in question, along with associated expenses to determine the retained earnings.
To summarize
The sales revenue coming in for year 1 is estimated at £21,600, year 2 at £43,200 and by year 3 of business, £64,000.
The expenses for the first 3 years will include the various startup costs and those costs associated with generating the expected revenue as per the profit/loss chart below.
Ultimately the growth in sales and understanding and control of expenses, the first year retained earnings as outlined in the profit/loss chart will amount to £9,152, followed by the second year with £24,064 and by the third year with £36,621.
Cash Flow Analysis
As per the cash flow analysis chart below, the expectations that Seema has for Fearless Platinum Arts for the first 3 years of business results in a positive cash flow balance. The ending cash balance at the end of year 1 is £11,440, by year 2, £41,520 and by the year 3, a further increase to £87,296
Balance Sheet
The balance sheet, a critical component in determining the success of the business, for Fearless Platinum Arts shows the company’s total assets minus the liabilities to determine the net worth of the business.
In this case, Seema with the 3 years financial forecast has evaluated the net worth to be £12,088 in the first year, £42,816 in the second year and £89,216 in the third year.
A further breakdown of the financial projections can be seen in the financial statements below.