Preparing Financial Reports for Fund Request

Question

Prepare a 3-year Financial Plan with Funding Request for a mythical company, “New Paradigm Incorporated (NPI)” based on: the following scenario, suggested outline, and the relevant information contained in the attached company briefing. Your report should be five single-spaced pages, excluding any attached appendices.

SCENARIO

For purposes of this assignment, it is January 2013. New Paradigm Incorporated (NPI) was founded in December, 2011 and commenced operations in January of 2012. The objective of NPI’s first year of operations was to validate the viability of the NPT business Model. Towards this end the initial financing (Seed Financing of $ 800,000) for the company was provided by the four founders who are the principal officers of the company. You are the Chief Financial Officer (CFO) of NPI and one of its four founders.

The company has somewhat successfully completed its first year of operations generated a modest profit and believes that the viability of the NPI Business model has been proven. NPI is now seeking a second round of external financing to allow for continued growth. To secure this second round of financing will require preparation of a formal NPI 3-Year Business Plan.  As CFO it is your job to prepare, analyze and present the financial section of The NPI Business Plan.  Specifically, your requirement is to prepare and analyze a 3 -Year Financial Plan and determine the amount of financing required to meet the NPI Business Plan objectives. After meeting with the other founders, doing some research, and talking to some of your financial peers in other companies, you prepared the following concept outline to guide the preparation of the NPI financial plan

FINANCIAL PLAN CONCEPT OUTLINE

NPI Financial Plan Analysis  
1.    NPI  Financial  Plan Performance and Funding Requirements (5 pages)
a.     A summary of actual 2012 Financial Performance with a  management  explanation of key  financial performance factors, financial ratios, and financial measurements
b.    A summary of projected financial performance for the three-year plan period, by year and overall, with a management explanation of key  financial performance factors, financial ratios, financial measurements
c.    A summary analysis  of key financial trends
d.    Summary explanation of funding requirements  to include: the source and timing of funds, the uses of funds (i.e. staff, equipment acquisition, marketing, working capital etc.),and the sources and timing of investor  repayment or return

2.    Supporting Schedules (required to support summary):
A.    Key Financial Plan Assumptions (Summary of key Pro forma assumptions)
B.    Financial Statements: historical (2012)
C.    Pro-forma projections for next three (3) years - with 2013 detailed by month, and  2014 and 2015 shown by total year
•    Income Statement
•    Cash Flow
•    Balance Sheet
D.    Schedule of Sources and Uses of Funds Raised
E.    Potential Investor Return /Repayment by year
F.    Ratio Analysis of Key Financial Parameters
G.    Working Capital Analysis – accounts receivable and accounts payable aging’s
H.    Risk Analysis –Sensitivity of projected financial results to: price, volume & cost changes

Summary

This Finance scenario is about a fictitious company named New Paradigm Incorporated. The company’s profile has been given in the solution. New Paradigm Incorporated’s financial plan and financial reports have also been prepared in the most professional manner. They can be found attached along with the solution.

Total Word Count 1792

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