What is an assumption on a financial statement? For every dollar amount that goes on a financial statement, there is a REASON you chose that dollar amount. An assumption is the reasoning for you putting that dollar amount in that place. Write your assumptions on a separate word document and submit to Canva HERE.

This is where you will submit your final exam assumptions assignment:

During the semester, you have written pieces of a business plan. For your final exam, you will use that business plan to write assumptions for your financial statements.

What is an assumption on a financial statement? For every dollar amount that goes on a financial statement, there is a REASON you chose that dollar amount. An assumption is the reasoning for you putting that dollar amount in that place. Write your assumptions on a separate word document and submit to Canva HERE.

Income Statement Assumptions Directions: (75 points, 15 assumptions, each assumption worth (5) points). For any 15 numbers that you enter on your income statement, write an assumption. Both parts of the assumption must be present:

The assumption is explained using NUMBERS. You can calculate that number on your statement using the numbers I provided. (3)
The assumption is explained using material from the course and my assignments. (2)
Income Statement Assumption Example: If I own an electronics store, and I put $10,000 under “sales” in “January” for “Category 1 (TVs),” I need to now explain why I think I will sell $10,000 worth of TVs. I might say. Each TV sells at $1,000, and I plan to sell 10 of them during the month of January because I plan to personally sell five (5) TVs to two (2) different independent gyms who will mount the TVs inside their gym facility. I will need to approach at least five (5) different gym owners with the creative selling process to sell to two (2).

Balance Sheet Assumptions Directions: (25 points, 5 assumptions, each assumption worth five (5) points). For any five (5) numbers that you enter on your balance sheet, write an assumption. Both parts of the assumption must be present:

The assumption is explained using NUMBERS. You can calculate that number on your statement using the numbers I provided. (3)
The assumption is explained using material from the course and my assignments. (2)
Balance Sheet Assumption Example: With the same electronics store example, since I plan to sell 10 TVs in January, I need to purchase at least 10 TVs to have in my store plus an extra two (2). As part of my operations plan for inventory control, I want to have 20% more supply on hand than I plan to sell. The cost of each TV is $500 from the TV supplier, so after purchasing 12 TVs from the TV supplier, I will now have $6000 in “Inventory” under “Current Assets.”

Notes:

You cannot do your final exam without your financial statement spreadsheets. What you put in the financial statements must match this final exam.
Do not use a number on either financial statement that is automatically calculated with a formula on the spreadsheet. For example, do not use the Total NET INCOME number. I already know how you got that number. Do not use ANY “Total” numbers. Those numbers are just totals. There would be no assumption associated with them.

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