Business Plan Part 5
dwilliams1911
_SourcesandUsesofFundsStatement2.xlsxIncome Statement
| Dave and Jacky Delicious: Income Statement | Income Statement Instructions: Enter estimates into the "Green Cells Only". Make sure that you have thoroughly researched your potential market to ensure that your revenue and expense estimates can be explained thoroughly to an investor or banker. Hence, you must calculate your revenues on specific variables such as the percentage of your company's market penetration and the number of customers your company will attract during the period. The estimated number of customers per period is multiplied by the selling price of your products or services to attain your estimated revenue for the period. Hence, you must validate your revenue estimates and your expense estimates. You should have quotes for any expense items your company will incur such as rent, electric, water, sewer, and especially inventory you plan to purchase. In conclusion, your estimates are only as accurate as the time and effort you put into gathering the real-world data! | |||
| Revenue | Year 1 | Year 2 | Year 3 | |
| Gross Sales | 1332500 | 1386200 | 1442064 | |
| Less: Sales Returns and Allowances | 66625 | 69310 | 72103 | |
| Net Sales | 1265875 | 1316890 | 1369961 | |
| Cost of Goods Sold | ||||
| Beginning Inventory | 0 | |||
| Add: Purchases | 0 | |||
| Inventory Available | 0 | 0 | 0 | |
| Less: Ending Inventory | 0 | |||
| Cost of Goods Sold | 562500 | 582271.88 | 602738.73 | |
| Gross Profit (Loss) | 703375 | 734618.1 | 767222.07 | |
| Expenses | ||||
| Advertising | 5200 | 5200 | 5200 | |
| Amortization | 0 | |||
| Bad Debts | 33313 | 34655 | 36052 | |
| Bank Charges | 0 | 0 | 0 | |
| Charitable Contributions | 126588 | 131689 | 136996 | |
| Commissions | 0 | 0 | 0 | |
| Contract Labor | 0 | 0 | 0 | |
| Depreciation | 0 | 0 | 0 | |
| Dues and Subscriptions | 0 | 0 | 0 | |
| Employee Benefit Programs | 0 | 0 | 0 | |
| Insurance | 2000 | 2000 | 2000 | |
| Interest | 586 | 586 | 586 | |
| Legal and Professional Fees | 19500 | 19500 | 19500 | |
| Licenses and Fees | 1000 | 1000 | 1000 | |
| Miscellaneous | 36000 | 36000 | 36000 | |
| Office Expense | 31500 | 31500 | 31500 | |
| Payroll Taxes | 36000 | 36000 | 36000 | |
| Postage | ||||
| Rent | 60000 | 60000 | 60000 | |
| Repairs and Maintenance | 62000 | 60000 | 60000 | |
| Supplies | ||||
| Telephone | 11000 | 12000 | 12000 | |
| Travel | 11000 | 12000 | 12000 | |
| Utilities | 60000 | 60000 | 60000 | |
| Vehicle Expenses | ||||
| Wages | 120000 | 120000 | 120000 | |
| Total Expenses | 615686 | 622130 | 628834 | |
| Net Operating Income | 87689 | 112488 | 138388 | |
| Other Income | ||||
| Gain (Loss) on Sale of Assets | 0 | 0 | 0 | |
| Interest Income | 0 | 0 | 0 | |
| Total Other Income | 0 | 0 | 0 | |
| Net Income (Loss) | 87689 | 112488 | 138388 | |
Balance Sheet
| Company Name: Dave and Jacky Delicious | Balance Sheet Instructions: Enter data into the "Green Cells Only". A Balance Sheet is a snapshot of your company at one time in history. Thus, it's important that you determine and then input the value of your company's assets and liabilities at the beginning and end of each accounting period. Hence, a Balance Sheet must be created at the beginning of the company's accounting period and at the end of the company's accounting period. The beginning and ending Balance Sheets illustrate the asset and liability changes that have occurred during the accounting period. Essentially, the basic formula for Owner's Equity is the formula Assets - Liabilities = Owner's Equity. Hence, make sure to thoroughly analyze and input all Current and Long-term Assets in addition to all Current and Long-term Liabilities. Lastly, remember to depreciate all long-term assets during each accounting period. Remember that depreciation goes on the Income Statement and Balance Sheet but not on the Cash Flow Statement. | |||
| ***Input Green Cells Only*** | ||||
| Assets | Year 1 | Year 2 | Year 3 | |
| Current Assets: | ||||
| Cash | 54,973 | 63,500 | 85,500 | |
| Investments | 39,000 | 39,000 | 39,000 | |
| Inventories | 25,000 | 30,000 | 25,000 | |
| Accounts receivable | 10,000 | 25,000 | 7,500 | |
| Pre-paid expenses | 30,000 | 10,000 | 10,000 | |
| Other | 7,027 | 6,000 | 0 | |
| Total Current Assets | 166,000 | 173,500 | 167,000 | |
| Fixed Assets: | Year 1 | Year 2 | Year 3 | |
| Property and equipment | 69,000 | 84,000 | 90,000 | |
| Leasehold improvements | 0 | 0 | 0 | |
| Equity and other investments | 0 | 0 | 0 | |
| Less accumulated depreciation | 0 | 0 | 0 | |
| Total Fixed Assets | 69,000 | 84,000 | 90,000 | |
| Other Assets: | Year 1 | Year 2 | Year 3 | |
| Goodwill | 0 | 0 | 0 | |
| Total Other Assets | 0 | 7,500 | 15,000 | |
| Total Assets | 235,000 | 265,000 | 272,000 | |
| Liabilities and Owner's Equity | ||||
| Current liabilities: | Year 1 | Year 2 | Year 3 | |
| Accounts payable | 10,000 | 15,000 | 5,000 | |
| Accrued wages | 0 | 0 | 0 | |
| Accrued compensation | 0 | 0 | 0 | |
| Income taxes payable | 0 | 0 | 2,500 | |
| Unearned revenue | 0 | 0 | 0 | |
| Other | 0 | 0 | 0 | |
| Total Current Liabilities | 10,000 | 15,000 | 7,500 | |
| Long-term Liabilities: | Year 1 | Year 2 | Year 3 | |
| Bank Loan | 35,000 | 50,000 | 45,500 | |
| Total Long-term Liabilities | 35,000 | 50,000 | 45,500 | |
| Owner's Equity: | Year 1 | Year 2 | Year 3 | |
| Investment capital | 100,000 | 100,000 | 100,000 | |
| Accumulated retained earnings | 90,000 | 100,000 | 135,000 | |
| Total Owner's Equity | 190,000 | 200,000 | 235,000 | |
| Total Liabilities and Owner's Equity | 235,000 | 265,000 | 288,000 | |
Sources and Uses
| Dave and Jacky Delicious: Sources and Uses of Funds at Start-up | Start-up Cash Requirements | Sources and uses Instructions: Enter data into the "Green Cells Only". The Sources and Uses of Funds represents the total of all cash required to start your company in addition to where and how these funds will be attained. You may change the row names to better match your company's needs. Make sure that the Total Uses of Funds is equil to the Total Sources of Funds. A key consideration in the Sourses and Uses of Funds is the calculation of Working Capital. Working Capital represents the "Actual Cash" you will need to sustain your company until there are enouge revenues to cover all costs. Hence, it's critical to have a realistic estimate of Working Capital to ensure that your Cash Flow Statement remaines positive. |
| Uses of Funds: | ||
| Land | ||
| Building | 5,000 | |
| Equipment + packaging + supplies + long term assets | 72,500 | |
| Inventory | 22,000 | |
| Improvements | 2,000 | |
| Deposits | 15,000 | |
| Working Capital | 18,500 | |
| Additional Expansion Growth | ||
| Total Uses of Funds | 135,000 | |
| Sources of Funds | ||
| Owner’s Equity | 80,000 | |
| Personal Loan | ||
| Business Loan | 35,000 | |
| Other Sources | 20,000 | |
| Total Sources of Funds | 135,000 | |
| Working Capital is your operating Expenses for 12 months (Rent, electric, water, internet, loan pmt., ect…). Also, note that the Total Uses of Funds must equal the Total Sources of Funds. | ||
Cash Flow Statement
| Twelve-month Cash Flow Statement | Dave and Jacky Delicious | Fiscal Year Begins: | Sep-20 | Notes on Cash Flow Statement Preparation Note: You may want to print this information to use as reference later. Refer back to your Income Statement Projections. Line-by-line ask yourself when you should expect the cash to come and go into your company's bank account. You have already done a sales projection, now you must predict when you will actually collect from customers. On the expense side, you have previously projected expenses; now predict when you will actually have to write the check to pay those bills. Most items will be the same as on the Profit & Loss Projection. Rent and utility bills, for instance, are usually paid in the month they are incurred. Other items will differ from the Income Statement view. Insurance and some types of taxes, for example, may actually be payable quarterly or semiannually, even though you recognize them as monthly expenses. Make every effort to make the Cash Flow as realistic as you can line by line. The payoff for you will be an ability to manage and forecast working capital needs. Change the category labels in the left column as needed to fit your accounting system. Note that lines for 'Loan principal payment' through 'Owners' Withdrawal' are for items that always are different on the Cash Flow than on the Income Statement. An Income Statement, also known as a Profit & Loss Stetement, demonstrates how much money your company makes for Income Tax Purposes. The Income Ststement does not show you actual cash flow. Hence, Loan Principal Payments, Capital Purchases, and Owner's Draw simply do not, by the rules of accounting, show up on the Income Statement. They do, however, definitely take cash out of the business, and so need to be included in your Cash plan. On the other hand, you will not find Depreciation on the Cash Flow because you never write a check for Depreciation. Cash from Loans Received and Owners' Injections go in the "Loan: Other cash injections" row. The "Pre-Startup" column is for cash outlays prior to the time covered by the Cash Flow. It is intended primarily for new business startups or major expansion projects where a great deal of cash must go out before operations commence. Begin with the amount of Cash on Hand you expect to have. Project all the Receipts and Paid Outs for the year. If CASH POSITION gets dangerously low or negative, you will need to pump in more cash to keep the operation afloat. Many profitable businesses have gone under because they could not pay the bills while waiting for money to flow in. Your creditors do not care about profit; they want to be paid with cash. Cash is the financial lifeblood of your business. | |||||||||||
| Pre-Startup EST | Sep-20 | Oct-20 | Nov-20 | Dec-20 | Jan-21 | Feb-21 | Mar-21 | Apr-21 | May-21 | Jun-21 | Jul-21 | Aug-21 | Row Totals | ||
| Beginning Cash on Hand | 100,000 | 52,600 | 76,470 | 90,841 | 104,461 | 98,082 | 91,702 | 85,323 | 78,443 | 71,564 | 64,684 | 57,805 | 70,926 | 70,926 | |
| CASH RECEIPTS | |||||||||||||||
| Cash Sales | 0 | 94,385 | 94,385 | 94,385 | 94,385 | 94,385 | 94,385 | 94,385 | 94,385 | 94,385 | 94,385 | 94,385 | 94,385 | 1,132,625 | |
| Collections fm CR accounts | 0 | 16,656 | 16,656 | 16,656 | 16,656 | 16,656 | 16,656 | 16,656 | 16,656 | 16,656 | 16,656 | 16,656 | 16,656 | 199,875 | |
| Loan/ other cash inj. | 35,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 35,000 | ||
| TOTAL CASH RECEIPTS | 35,000 : Totals are calculated automatically. | 111,042 | 111,042 | 111,042 | 111,042 | 111,042 | 111,042 | 111,042 | 111,042 | 111,042 | 111,042 | 111,042 | 111,042 | 1,367,500 | |
| Total Cash Available | 135,000 | 163,642 | 187,512 | 201,883 | 215,503 | 209,123 | 202,744 | 196,364 | 189,485 | 182,605 | 175,726 | 168,847 | 181,968 | 1,438,426 | |
| CASH PAID OUT | |||||||||||||||
| Purchases (merchandise) | 2,500 | 10,000 | 15,000 | 15,750 | 15,750 | 15,750 | 15,750 | 15,750 | 15,750 | 15,750 | 15,750 | 15,750 | 15,750 | 185,000 | |
| Purchases (packaging) | 500 | 5,000 | 7,500 | 7,500 | 7,500 | 7,500 | 7,500 | 7,500 | 7,500 | 7,500 | 7,500 | 7,500 | 7,500 | 88,000 | |
| Purchases (equipment+other equipment) | 29,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 89,000 | |
| Gross wages (Withdrawals) | 0 | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 120,000 | |
| Payroll expenses (taxes, etc.) | 0 | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 | 36,000 | |
| Outside services | 0 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 | 15,000 | |
| Supplies (office & oper.) | 1,500 | 2,500 | 2,500 | 2,500 | 2,500 | 2,500 | 2,500 | 2,500 | 2,500 | 2,500 | 2,500 | 2,500 | 2,500 | 31,500 | |
| Repairs & maintenance | 2,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 62,000 | |
| Advertising | 400 | 400 | 400 | 400 | 400 | 400 | 400 | 400 | 400 | 400 | 400 | 400 | 400 | 5,200 | |
| Car, delivery & travel | 0 | 0 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 11,000 | |
| Accounting & legal | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 | 19,500 | |
| Rent | 0 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 60,000 | |
| Telephone | 0 | 0 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 11,000 | |
| Utilities | 0 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 60,000 | |
| Insurance | 2,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2,000 | |
| Taxes (real estate, etc.) | 0 | 2,750 | 2,750 | 2,750 | 2,750 | 2,750 | 2,750 | 2,750 | 2,750 | 2,750 | 2,750 | 2,750 | 2,750 | 33,000 | |
| Interest | 0 | 49 | 49 | 49 | 49 | 49 | 49 | 49 | 49 | 49 | 49 | 49 | 49 | 586 | |
| Other expenses (Business sign) | 2,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2,000 | |
| Other (permits) | 1,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,000 | |
| Other (specify) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Miscellaneous | 0 | 30,000 | 30,000 | 30,000 | 30,000 | 30,000 | 30,000 | 30,000 | 30,000 | 30,000 | 30,000 | 30,000 | 30,000 | 360,000 | |
| SUBTOTAL | 42,400 | 86,199 | 95,699 | 96,449 | 96,449 | 96,449 | 96,449 | 96,949 | 96,949 | 96,949 | 96,949 | 96,949 | 96,949 | 1,191,786 | |
| Loan principal payment | 0 | 972 | 972 | 972 | 972 | 972 | 972 | 972 | 972 | 972 | 972 | 972 | 972 | 11,667 | |
| Capital purchase (specify) | 40,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 40,000 | |
| Other startup costs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Reserve and/or Escrow | 0 | 0 | 0 | 0 | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | 0 | 0 | 140,000 | |
| Owners' Withdrawal | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| TOTAL CASH PAID OUT | 82,400 | 87,171 | 96,671 | 97,421 | 117,421 | 117,421 | 117,421 | 117,921 | 117,921 | 117,921 | 117,921 | 97,921 | 97,921 | 1,383,453 | |
| Cash Position (end of month) | 52,600 | 76,470 | 90,841 | 104,461 | 98,082 | 91,702 | 85,323 | 78,443 | 71,564 | 64,684 | 57,805 | 70,926 | 84,047 | 54,973 | |
Variables
| _Example | FALSE |
| _Shading | FALSE |
| _Series | OfficeReady 3.0 |
| _Look | 1 |
Break even and Ratios
| Break Even Analysis | ||||
| Monthly break even units | 4671.875 | |||
| Monthly revenue break even | 51390.625 | |||
| Assumptions | ||||
| Average per unit revenue | $ 11.00 | |||
| Average per unit variable cost | $ 4.60 | |||
| Estimated monthly fixed cost | $ 29,900.00 | |||
| Ratio Analysis | Year 1 | Year 2 | Year 3 | |
| Profitability Ratios: | ||||
| Net Income | 6.93% | 8.54% | 10.10% | |
| Return on Assets | 37.31% | 42.45% | 50.88% | |
| Liquidity Ratio: | ||||
| Current ratio | 16.60 | 11.57 | 22.27 | |
| Working capital | 156,000 | 158,500 | 159,500 | |
| Quick ratio | 14.10 | 9.57 | 18.93 | |
| Solvency Ratio: | ||||
| Debt to Asset Ratio | 0.15 | 0.19 | 0.17 | |
| Debt to Equity Ratio | 0.35 | 0.50 | 0.46 | |
| Efficiency Ratios: | ||||
| Accounts receivable turnover | 126.5875 | 53 | 183 | |
| Inventory turnover | 22.5 | 19 | 24 | |
| Number of days inventory in stock | 16.22222222 | 19 | 15 | |
| Fixed asset turnover | 18.35 | 15.68 | 15.22 | |
| Total asset turnover | 5.39 | 4.97 | 5.04 | |
Compatibility Report
| Compatibility Report for m6_Income_Statement_Bal_Sht_3_Year2.xls | ||||
| Run on 6/5/2020 13:29 | ||||
| The following features in this workbook are not supported by earlier versions of Excel. These features may be lost or degraded when you save this workbook in an earlier file format. | ||||
| Minor loss of fidelity | # of occurrences | |||
| Some cells or styles in this workbook contain formatting that is not supported by the selected file format. These formats will be converted to the closest format available. | 50 | |||
