Financial Planning and Forecasting for Uber Technology Inc

This article provides a financial plan and forecast for Uber Technology Inc, which is introducing an online laundry service. The plan includes a projected income statement, cash flow statement, and balance sheet for a period of five years. The article also discusses the assets, liabilities, and equities of the business, as well as the sources of funding. The subject is financial planning and forecasting, and the course code, course name, and college/university are not mentioned.

Running head: FINANCIAL PLANNING AND FORECASTING
Financial Planning and Forecasting
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Author’s Note

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FINANCIAL PLANNING AND FORECASTING
Table of Contents
Financial Plan..................................................................................................................................2
Profit and Loss Statement................................................................................................................2
Cash Flow Statement.......................................................................................................................4
Balance Sheet...................................................................................................................................6
Reference.........................................................................................................................................9

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FINANCIAL PLANNING AND FORECASTING
Financial Plan
As per the plan of the management, a financial plan is to be developed for Uber
Technology Inc which is introducing an online laundry service as the product of the business.
The management has developed a forecast of the income and expenses of the business along with
projected cash flow analysis and a balance sheet which is also as per the expectation of the
management (Keown, 2013). The analysis which is conducted is for a period of five years and
will be showing income and expenses, assets and liabilities of the business on an estimated basis
for a period of five year.
Profit and Loss Statement

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FINANCIAL PLANNING AND FORECASTING
The projected income statement which is formulated by the business is shown in the
above figure. The number of customers which are shown in the first year is shown to be 200000.
The number of customers is anticipated to rise in the next few years as the business develops and
builds a brand image in the market (Caldwell, Knotts & Hopkins, 2015). As the demand for the
services of the business increases so does the average revenue of the business is also anticipated
to rise. The sales revenue growth of the business is anticipated to be increase by 2.5% and
average revenue growth rate is expected to increase by 3%.
In addition to this, the projected expenses of the business are shown which includes
salary and wages, rewards and incentives and maintenance costs which are associated with the
business. The business will be taking a loan for funding the operations of the business for which
the management expects that the business will be charged an interest on loan at the rate which is
8.5% The depreciation on the assets of the business will be on a straight-line basis and the useful
life of assets should have a useful life of 10 years. The net profit as expected by the management
will be on an increasing trend for the period of next five years from the date the business starts
(Baker & Ricciardi, 2015). This is due to the unique services which is offered by the company
and it will be particularly helpful for the household sector and therefore the management expects
that the demand for the services which is offered by the business will be high (Weil, Schipper &
Francis, 2013).

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FINANCIAL PLANNING AND FORECASTING
The revenue and net profit of the business as expected by the management is portrayed in
a bar chart shown above. The bar chart reveals that the revenue and net profit of the business are
increasing at a progressive rate and the upward trend line confirms the same. This is all as per the
expectation of the management.
Cash Flow Statement
The cash flow statement of a business shows the cash position of the business and also
reveals the cash inflows and outflows of the business. The management expects that the net cash
from operations of the business will be positive for the first five years as the management
believes that the operational structure of the business will be strong as the management intends
to establish and recruit efficient employees for the same purpose (Pardalos, Siskos &
Zopounidis, 2013). The cash from investing activities will be comprising of various purchases
which the business needs to incur in the first year which will be including furniture and fixtures,
office building, website and mobile design cost and computer equipment.

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FINANCIAL PLANNING AND FORECASTING

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FINANCIAL PLANNING AND FORECASTING
The above chart shows closing cash balances of the business as anticipated by the
management of Uber Enterprises. The cash balance of the company is expected to rise as the
overall cost of the business are expected to fall and therefore the management expects that the
liquidity position of the business will increase (Jenson et al., 2013).
Balance Sheet
The balance sheet which is formulated by the business shows the financial position of the
business. The projection of balance sheet which the business anticipates for the first five years is
shown in the picture below:

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FINANCIAL PLANNING AND FORECASTING

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FINANCIAL PLANNING AND FORECASTING
The assets of the business comprise of the assets which the business will be purchasing in
the first year and the same will be included in the start-up business cost of the company. The
major source of funding which the management anticipates will be coming through issue of share
capital and long-term debt which is taken by the business for $ 400,000 and moreover, the
business also has a retained earning which is shown in the projected balance sheet of the
business. The above chart shows a projection of the assets and liabilities and equities of the
business as per the expectation of the management of Uber Enterprise.

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FINANCIAL PLANNING AND FORECASTING
Reference
Baker, H. K., & Ricciardi, V. (2015). Understanding behavioral aspects of financial planning and
investing.
Caldwell, J. R., Knotts, R. B., & Hopkins, J. R. (2015). U.S. Patent Application No. 14/481,772.
Jenson, J., Ledson, M., Lipinski, P. P., Moran, W. J., Ostrem, L., Vanney, B. M., ... & Scarlato,
P. (2013). U.S. Patent No. 8,407,125. Washington, DC: U.S. Patent and Trademark Office.
Keown, A. J. (2013). Personal finance. Pearson.
Pardalos, P. M., Siskos, Y., & Zopounidis, C. (Eds.). (2013). Advances in multicriteria
analysis (Vol. 5). Springer Science & Business Media.
Weil, R. L., Schipper, K., & Francis, J. (2013). Financial accounting: an introduction to
concepts, methods and uses. Cengage Learning.