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Michael Nelson, a Navajo Indian, was a successful businessman with retail operations in several communities located on the Navajo Indian Reservation in Arizona. Nelson was considering a new business venture: opening a Church''s Chicken Restaurant (CCR) in Tuba City, Arizona. Nelson had the exclusive rights to Church''s Chicken Restaurant located on the Navajo Indian Reservation. In 1991, he opened his initial CCR in Window Rock, Arizona. The success of this venture had prompted Nelson to look for other profitable markets for the restaurant franchise. In order to open a new restaurant in Tuba City, Nelson must borrow $650,000. This requires that he submit a loan proposal to the commercial loan department of his bank, Norwest Bank, Inc. Having successfully borrowed to initiate the CCR in Window Rock and to open Tru-Value Hardware stores in three different locations on the reservation, Nelson has previously been through this process with Norwest Bank. Nelson''s immediate task is to complete the financial information required for the loan proposal. In particular he must develop sales forecasts, pro forma income statements, and cash flow statements for five years into the future. Based on an analysis of these sales and financial forecasts, Nelson will decide on the feasibility of starting the new restaurant.