1.) Download and save the attached Excel Spreadsheet (BreakevenAnalysis).It will walk you through the process of conducting a breakevenanalysis and forecasting sales, expenses, and profits for your first two years of business. Once you download the spreadsheet, take a look at the tabs at the bottom. The first tab provides specific instructions for filling out the spreadsheet. You should work through the instructions on that tab in sequential order, moving from instruction to sheet, and then back to the next instruction and so forth. Notice that the instructions are color coded, so you simply match the highlighted color of the instructions with the highlighted field requiring the information. Do not put information in any field that is not color coded in some way, as you will be overriding a formula. This spreadsheet is the one I used for my actual business and is one that I recommend you hang on to for the future.2.) Once you complete the spreadsheet, you will have projected your financialsfor your first two years of business. You will know your projected annual sales, annual profit, your monthly fixed expenses, your approximate cost of goods sold as a percentage, and your monthly breakeven point in terms of sales revenue, among other financial items. Use these annual numbers to plug into the “Profit & Loss” section of Part 6 Financial Projections in your business plan template. For your final business plan that you turn in at the end of the semester, you will be required to complete the first 2 years (only) of the Profit & Loss section in Part 6. You ARE NOT required to complete the third year, or the other sections of Part 6, which include the Cash Flow, Balance Sheet, and Break-Even Analysis.
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