Financial Analysis Report

A very close family member is running a small construction business and is experiencing some financial difficulties. The business premises have been subject to a burglary and the computer and main server was stolen. All data was data lost, including financial statements
from the previous years. The viability of the whole business is in question.

You are required

to conduct a re-evaluation and re-assessment of the business operations. However, you have a limited or incomplete amount of information. Therefore; you will have to make number of assumptions.

The business is a sole trader construction business with a yearly turnover of approximately $500,000.

To assess if this business should continue to operate you must carry out a financial analysis to predict if the business will be profitable in the future. Using information and data that is measurable, combined with any assumptions that may be required, develop a financial analysis for the next 3 years of operation. This should be supported with Balance Sheet, Profit and Lost Statement and Cash Flows.