Thethree months of Balance Sheets and Profit and Loss statem

Thethree months of Balance Sheets and Profit and Loss statements fromFebruary (Chapter 4), March (Chapter 5) and April (Chapter 7) will beused as the historical data in order to forecast out a 12-monthprojection for the next fiscal year in the form of a one year budgetedpro forma income statement.Kristin Raina Interior Designs has decided to request a bank loan toexpand her business and the lender has asked for a one-year projectionof revenue and expenses. In order to request the loan, you will need tocreate a Pro Forma one year budgeted income statement broken down over12 months. You will need to take a look at the actual ending financialstatements for February, March and April and use this data to helpcreate the forecast for the next fiscal year of business.For this project, you can assume that the company is expanding thebusiness for any reason, however below are some possible options forseeking out a loan. You can use one of these options or create a uniquecreative alternative for expansion in building the one-year pro formabudgeted income statement:Option 1: Kristin has decided to do a build out of a leased location.Option 2: Kristin has decided to purchase a physical location for her business. Option 3: A combination of the above or any othercreatively unique expansion/company growth idea (consider a new productor new product line for example). Keep in mind the request should be financially manageable and makesure to look ahead to next week’s module where this budget will be thefoundation for a presentation that uses financial ratios to demonstratewhy the amount of the loan is manageable and why it is a good investmentin light of the strengths and weakness of the company. Using financialratios will be critical in supporting your argument and be aware thatmost bankers or lenders will not even consider a loan prospect withoutaddressing, for example, the impact of additional debt on your debt toequity ratio.Note: Excel must be used for creating the budget and thespreadsheet must include formulas for all mathematical calculationsincluding adding, subtracting and sums of columns or groups of cells. i believe the files i upload will be the only ones you need please let me know if you need anything else