Prepare a financial plan for the organization that you select for your business plan. Describe the organization, including the type of business. Create the business case. Determine why funding is...

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Prepare a financial plan for the organization that you select for your business plan.


Describe the organization, including the type of business.






Create the business case.



  • Determine why funding is needed for the company.

  • Determine the sources of funding. Consider self-funding, borrowing, loans, equity, venture capital, etc.

  • Evaluate the requirements of each of the funding sources that you plan to use.

  • Analyze the risks that are associated with each funding source.

  • Decide which sources are the best fit for your company based on the requirements of each. Justify your decision.

  • Estimate the cost of capital for both short-term and long-term funding sources. Research current estimated APRs for your selected sources of funding. Create a table or chart to display this information.






Estimate direct costs, including capital, marketing, labor, equipment, and inventory/supply costs.






Prepare a budget that includes starting balances, monthly costs, loan/investment payments, cash flow projections, and required revenue.






Create a profit-and-loss statement for a 3-year period. Provide a revenue forecast, stating realistic assumptions, such as growth per year, in your projections.






Cite references to support your assignment.






Format your citations according to APA guideline

Answered 5 days AfterMay 31, 2021

Answer To: Prepare a financial plan for the organization that you select for your business plan. Describe the...

Nitish Lath answered on Jun 06 2021
141 Votes
Brief Overview of the Entity
Berkshire Hathaway Inc. is the American multinational holding entity which is having head office in Omaha, Nebraska, United States. The entity is engaged in providing prop
erty and casualty insurance and reinsurance, utilities and energy, transportation of freight rail, financing, manufacturing, retail service and other service. The entity is having various segment for conducting its business such as GEICO, Reinsurance Group, Primary group of entity, BNSF, energy segment, manufacturing and service and retailing segment. The chief executive officer of the entity is Warren Edward Buffett. The entity was founded by Oliver Chace in the year 1839.
Reasons for the requirements of the funding
The entity operations are doing quite well and there is scope of improvement in the capital expansion and solvency condition of the entity. Thus, the entity is requiring funds for meeting its capital expansion requirements and it is also needed for the maintenance of the long- term solvency in stable condition so that the entity can sustain in the future (Berkshire Hathaway Inc, 2020). Further the entity is requiring funds for the investment in the short- term resources which will provide benefit and flexibility of operations.
Sources of funds with the risk connected with it:
There are various sources of funds which the entity can avail for meeting its requirements but before availing the advantages of funding various risks associated with them should be considered. The sources of fund are as follows:
· Equity: It is the one of the best sources of finance available to the entity and it does not have financial risk connected with it and thus the entity can avail around 50% of the funding through the means of equity.
· Self-Funding: It can also be considered as the good option of financing together with the equity. The entity can consider the self-funding option of around 20% with the equity option.
· Borrowings: The borrowings include loan from the commercial...
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