Question

For this assignment, conduct research to analyze industry related data that would support financial projections for your revenue-generating idea. Complete a series of financial worksheets in order prepare for one of the selected revenue-generating opportunities identified in the previous assignment. Developing cost assumptions is critical for determining short-term and long-term financial needs for your revenue generation idea. You must consider all costs associated with the development and implementation of your idea. Develop multiple financial spreadsheets that consider factors such as materials, equipment, employees, indirect costs, and pricing strategies to develop a profit from the event or idea. The desired outcome is to determine the value of your revenue-generating idea and identify costs incurred for developing and implementing the idea. You should have two separate financial spreadsheets labeled 'Costs" and "Pricing." The following should be addressed: Costs and pricing associated with revenue generating idea. Question: Are we talking financial statements or simple spreadsheets?

Answer 1

Financial statements are the statements that are prepared over a period of time, for example, the Statement of Profit and Loss for the year 2020. Financial spreadsheets, on the other hand help the companies to prepare these financial statements as they are easy to perform and interpret.

In this question, you are asked to prepare Financial spreadsheets which are the simple spreadsheets but with financial data. You may use Excel to prepare these financial spreadsheets.

Make sure you take care of all the costs associated with your idea. Here, you are asked to prepare two spreadsheets, 'costs' and 'pricing'. Supposing, your Revenue generating idea is an E-commerce start-up since during these times of pandemic, people are switching to online shopping. So your costs would be the cost of website, hosting that website, inventory costs, payment processing costs, shippings costs and marketing. While preparing the pricing financial spreadsheet, make sure you consider the appropriate pricing strategies for the business. You may prepare as many spreadsheets you wish to make it easier for you to prepare these two sheets.