Jct2 Task 1

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| Business Fundamentals Simulation Western Governors University JCT2, Task 1 | Business Fundamentals Simulation This paper presents an evaluation of a business simulation for the fictional company of MicroForce, Inc (the company). The simulation encompassed four independent quarters of business operations decisions in the manufacturing of microcomputers. Upon completion of each quarter the company’s management reviewed the previous quarter’s performance, and made necessary adjustments and decisions in an attempt to improve the market position in the future. The items presented below provide a summary of how certain aspects of the simulation were conducted, how and why decisions were made, and what could have been modified to have a more successful rating upon completion. Utilization of Budgets and Pro-Forma Statements, Ensuring Adequacy of Funds As stated in Rollins a pro forma financial statement is defined as "a financial statement prepared on the basis of some assumed events and transactions that have not yet occurred” (2012). In essence businesses will complete a financial statement utilizing forecasts and historical data to determine how their financial position would look at the end of a fixed period of time. Pro-forma statements can be useful for a number of different aspects of financial planning, but primarily for balance sheets and income statements. When preparing a pro-forma statement, the basis or beginning balances are derived current financials, while projections may be derived from; historical performance or expenditures, market analysis, known capital investments, or other inbound/outbound revenue or costs that can be reasonably provided. While historical statements or actual statements are hard data sets based upon actual numbers, pro forma statements, while the same in appearance allow management the opportunity to make
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