Week 4 Course Project

macb98
Week2BudgetProposalWorkbookE.xlsx

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This document was exported from Numbers. Each table was converted to an Excel worksheet. All other objects on each Numbers sheet were placed on separate worksheets. Please be aware that formula calculations may differ in Excel.
Numbers Sheet Name Numbers Table Name Excel Worksheet Name
Instructions
Table 1 Instructions
2.1 & 2.2 Sales Forecast
Table 1 2.1 & 2.2 Sales Forecast
3.0 Capital Expenditure Budget
Table 1 3.0 Capital Expenditure Budget
4.1 Cashflows
Table 1 4.1 Cashflows
4.2 NPV Analysis
Table 1 4.2 NPV Analysis
4.3 Rate of Return Calculations
Table 1 4.3 Rate of Return Calculations
4.4 Payback Period Calculations
Table 1 4.4 Payback Period Calculations
5.0 Pro Forma Financials
Table 1 5.0 Pro Forma Financials

Instructions

BUSN278 Budgeting and Forecasting Template Instructions
Use this spreadsheet structure to lay out the various sections of your project.
The purpose of this spreadsheet is to make it easy for your professor to locate the
various sections of your project. Please don't alter the worksheet tabs or titles.
After you finish your calculations in this spreadsheet, you will have to
create a written report in which you take screenshots from this spreadsheet
and put them in the Budget Proposal Template, along with necessary
explanations. Detailed instructions for how to write the report
are found in the Budget Proposal Template, a Word document.

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2.1 & 2.2 Sales Forecast

sales year 1 year 2 year 3 year 4 years 5
pizza $560,000 $1,053,000 $1,158,000 $1,274,120 $1,401,540
soda $45,100 $89,000 $98,000 $107,000 $120,000
salad $46,000 $93,000 $105,000 $117,000 $125,000
pastas $374,850 $737,200 $820,000 $900,000 981,000
soup $39,000 $75,000 $89,000 $95,000 $104,500
desserts $55,200 $110,500 $120,100 $132,800 $148,000
total sales $1,074,150 $2,157,700 $2,390,100 $2,625,920 $2,880,040

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3.0 Capital Expenditure Budget

year 1 year 2 year 3 year 4 year 5
$204,360 $393,000 $411,800 $440,500 $460,700 (payroll)
$50,000 $53,000 $53,000 $52,000 $50,000 (marketing)
$25,000 $30,000 $34,000 $37,000 $41,000 (utilities)
$12,000 $38,000 $43,000 $44,000 $45,000 (repairs/maintainance)
$2,400 $10,000 $11,000 $13,000 $15,200 (dishes/ cleaning supplies)
$15,000 $18,000 $22,000 $24,000 $31,000 (employee healthcare)
$17,000 $50,000 $50,000 $50,000 $5,000 (rent)
$325,760 $606,000 $624,800 $660,500 $647,900

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4.1 Cashflows

year 1 year 2 year 3 year 4 year 5
$1,074,150 $2,157,700 $2,390,100 $2,625,920 $2,880,040 (cash sales)
$69,045 $134,673 $148,117 $162,899 $179,146 (taxes)
$10,300 $12,000 $13,000 $14,000 $15,000 (sales of current assets)
($204,360) ($393,200) ($411,860) ($431,453) ($451,717) (cash spending)
($570,420) ($1,380,599) ($1,493,514) ($1,619,145) ($1,758,632) (bill payment)
$378,715 $530,574 $645,843 $752,221 $863,837 (net cash flow)
$495,311 $1,112,740 $1,537,093 $2,508,380 $2,647,942 (cash balance)

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4.2 NPV Analysis

npv
year 1 year 2 year 3 year 4 year 5
$378,715 $530,574 $645,843 $752,221 $863,837
$360,680.00 $481,246 $557,903 $618,854 $676,838
Npv $2,695,521

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4.3 Rate of Return Calculations

current value of investment original value of investment rate of return
year 1 1,000,000 250,000 400
year 2 2,000,000 1,000,000 200
year 3 2,200,000 1,500,000 147
year 4 2,500,000 1,700,000 147
year 5 2,900,000 1,900,000 152

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4.4 Payback Period Calculations

cash inflow cumulative cash flows initial oulay remaining payment
year1 $378,715 $378,715 -1,000,000 -621,285
year 2 $530,574 $909,289 288,004
year 3 $645,843 $1,555,132
year 4 $752,221 $2,307,353
year 5 $863,837 $3,171,190
$3,171,190
payback period is two years

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5.0 Pro Forma Financials

pro formula income statement
year 1 year 2 year 3 year 4 year 5
net sales $1,074,150 $2,157,700 $2,390,100 $2,625,920 $2,880,040
direct costs of sales $375,103 $700,340 $770,238 $847,101 $931,564
operating expenses $325,760 $606,000 $624,800 $660,500 $647,900
taxes incurred $114,899 $200,001 $238,831 $281,506 $328,753
net profits $258,388 $651,359 756,231 $836,813 $971,823
pro forma cash flows
cash sales $1,074,150 $2,157,700 $2,390,100 $2,625,920 $2,880,040
sales of current assets $10,300 $12,000 $13,000 $14,000 $15,000
cash spending ($204,360) ($393,200) ($411,860) ($431,453) ($451,717)
additional cash spent ($570,420) ($1,380,599) ($1,493,514) ($1,619,145) ($1,758,632)
net cash flow $309,670 $395,901 $497,726 $589,322 $684,691
cash balance $495,311 $1,112,740 $1,537,093 $2,508,380 $2,647,942
pro forma balance sheet
cash $495,311 $1,112,740 $1,537,093 $2,508,380 $2,647,942
inventory $14,331 $26,756 $29,427 $32,364 $35,591
Other Current Assets ($10,300) ($22,300) ($35,300) ($49,300) ($64,300)
net current assets $499,342 $1,117,196 $1,531,220 $2,491,444 $2,619,233
longterm assets $0 $0 $0 $0 $0
liabilities
current borrowing 0 $0 $0 $0 $0
accounts payable $98,320 $114,831 $123,464 $133,942 $145,495
other current liabilities $69,045 $203,718 $351,835 $514,734 $693,880
net current liabilities $167,364 $318,549 $475,299 $648,675 $839,374
earnings $258,388 $651,359 756,231 $836,813 $971,823

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