Busniess plan

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Income Statement

CJN Manufacturing Inc.
Five Year Proforma Income Statement
Proforma Income Statement 2017 2018 2019 2020 2021
Net Sales 2,976,200 3,713,200 4,261,700 4,678,500 4,912,400 Schedule A
Cost of Goods Sales (1,660,000) (2,153,000) (2,568,900) (2,932,200) (3,199,900) Schedule B
Gross Profit 1,316,200 1,560,200 1,692,800 1,746,300 1,712,500
Operating Expenses:
Salaries, Wages and Benefits 155,100 162,900 171,000 179,600 188,600 Schedule C
Office Rent 175,000 269,100 367,700 471,100 482,900 Schedule D
Equipment Rent 70,000 120,000 122,000 122,000 122,000 Schedule E
Marketing and Advertising 675,000 337,500 168,750 168,750 168,750 Schedule F
List other expenses of your business Schedule G
Depreciation Expense 69,200 99,600 117,500 118,300 119,200 Schedule H
Amotization Expense 30,000 45,000 60,000 75,000 75,000 Schedule I
Professional Fees 220,000 70,000 70,000 70,000 70,000 Schedule J
Total Operating Expenses 1,394,300 1,104,100 1,076,950 1,204,750 1,226,450
Operating Income (78,100) 456,100 615,850 541,550 486,050
Other Income Expense
Interest Expense (40,000) (28,000) (20,000) (12,000) (4,000) Schedule K
Interest Income Schedule L
Net Other Income (Expense) (40,000) (28,000) (20,000) (12,000) (4,000)
Income Before Income Taxes (118,100) 428,100 595,850 529,550 482,050
Income Tax Expense 41,300 (149,800) (208,500) (185,300) (168,700) Note below
Net Income (76,800) 278,300 387,350 344,250 313,350
Schedules not provded-
Schedule G - Schedule for each type of business expense that is not included elsewhere in other schedules.
Schedule L - Schedule for interest income that may be earned on minimum cash balance maintained by your business.
Note - Use tax rate currently in effect under tax code 35.00% used in this example.

Cash Flow Statement

Nissani Manufacturing Inc.
Five Year Proforma Cash Flow Statement
Statement of Cash Flow 2017 2018 2019 2020 2021
Net Income (76,800) 278,300 387,350 344,250 313,350
Plus:
Depreciation Expense 69,200 99,600 117,500 118,300 119,200 Schedule H
Amortization Expense 30,000 45,000 60,000 75,000 75,000 Schedule I
Cash Flow from Operating Activities 22,400 422,900 564,850 537,550 507,550
Investing Activties:
Purchase of PP&E (600,000) (275,000) (160,000) (5,000) (5,000) Schedule H
Leasehold Improvements (300,000) (150,000) (150,000) (150,000) 0 Schedule I
Net Cash Flow from Investing Activites (900,000) (425,000) (310,000) (155,000) (5,000)
Financing Activities:
Proceeds from Debt 500,000 0 0 0 0 Schedule J
Investor Contributions 700,000 102,100 0 0 0 Schedule M
Repayment of Debt (100,000) (100,000) (100,000) (100,000) (100,000) Schedule J
Repayment of Investor Contributions 0 (72,400) 0 (154,850) (282,550) Schedule M
Net Cash Flow from Financing Activities 1,100,000 (70,300) (100,000) (254,850) (382,550)
Net Cash Flow 222,400 (72,400) 154,850 127,700 120,000
Beginning Cash Balance 0 222,400 150,000 304,850 432,550
Ending Cash Balance 222,400 150,000 304,850 432,550 552,550

Supporting Schedules

Schedule A - Detail For Revenues
Year 1 Year 2 Year 3 Year 4 Year 5
Product 1 - Units 33,200 39,840 43,824 46,015 48,316
Product 1 - Annual Increase 20.00% 10.00% 5.00% 5.00%
Product 1 Revenues 141,725 170,070 187,077 196,431 206,252
Product 2 - Units 265,600 332,000 381,800 419,980 440,979
Product 2 - Annual Increase 25.00% 15.00% 10.00% 5.00%
Product 2 Revenues 2,834,500 3,543,125 4,074,594 4,482,053 4,706,156
Total Revenues 2,976,225 3,713,195 4,261,671 4,678,484 4,912,408 Income Statement
Year 1
Jan Feb March April May June July August Sept Oct Nov Dec Total
Product 1 - Units 2,000 2,000 2,000 2,500 3,000 3,500 3,600 4,000 3,600 3,000 2,000 2,000 33,200
Product 1 - Price 4.00 4.00 4.00 4.10 4.20 4.25 4.50 4.75 4.50 4.20 4.00 4.00
Product 1 Revenues 8,000 8,000 8,000 10,250 12,600 14,875 16,200 19,000 16,200 12,600 8,000 8,000 141,725
Product 2 - Units 16,000 16,000 16,000 20,000 24,000 28,000 28,800 32,000 28,800 24,000 16,000 16,000 265,600
Product 2 - Price 10.00 10.00 10.00 10.25 10.50 10.63 11.25 11.88 11.25 10.50 10.00 10.00
Product 2 Revenues 160,000 160,000 160,000 205,000 252,000 297,500 324,000 380,000 324,000 252,000 160,000 160,000 2,834,500
Total Revenues 168,000 168,000 168,000 215,250 264,600 312,375 340,200 399,000 340,200 264,600 168,000 168,000 2,976,225
Schedule B - Details for Cost Of Goods Sold
Year 1 Year 2 Year 3 Year 4 Year 5
Annual Cost Increase 2.00%
Product 1 - Units 33,200 39,840 43,824 46,015 48,316
Cost Per Unit 2.00 2.04 2.08 2.12 2.16
Total Cost Product 1 66,400 81,274 91,189 97,663 104,597
Annual Cost Increase 4.00%
Product 2 - Units 265,600 332,000 381,800 419,980 440,979
Cost Per Unit 6.00 6.24 6.49 6.75 7.02
Total Cost Product 2 1,593,600 2,071,680 2,477,729 2,834,522 3,095,298
Total Cost of Goods 1,660,000 2,152,954 2,568,918 2,932,186 3,199,896 Income Statement
Year 1
Jan Feb March April May June July August Sept Oct Nov Dec Total
Product 1 - Units 2,000 2,000 2,000 2,500 3,000 3,500 3,600 4,000 3,600 3,000 2,000 2,000 33,200
Cost Per Unit 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Total Cost Product 1 4,000 4,000 4,000 5,000 6,000 7,000 7,200 8,000 7,200 6,000 4,000 4,000 66,400
Product 2 - Units 16,000 16,000 16,000 20,000 24,000 28,000 28,800 32,000 28,800 24,000 16,000 16,000 265,600
Cost Per Unit 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00
Total Cost Product 2 96,000 96,000 96,000 120,000 144,000 168,000 172,800 192,000 172,800 144,000 96,000 96,000 1,593,600
Total Cost of Goods 100,000 100,000 100,000 125,000 150,000 175,000 180,000 200,000 180,000 150,000 100,000 100,000 1,660,000
Schedule C - Detail for Salary, Wages and Employee Benefits
Increases 5.00% Per Annum
Position Description Gross Salary FICA FUTA/SUTA Medical/ Dental Insurance Life Insurance Retirement Plan Year 1 Total Year 2 Year 3 Year 4 Year 5
General Manager 80,000 6,120 800 9,000 1,000 2,500 99,420
0
0
List all staff and employees 0
0
0
0
Receptionist 40,000 3,060 400 9,000 750 2,500 55,710
Total 120,000 9,180 1,200 18,000 1,750 5,000 155,130 162,887 171,031 179,582 188,561
Income Statement
Schedule D - Detail for Lease Expense
Year 1 Year 2 Year 3 Year 4 Year 5
Lease Escalator 2.50% Lease will typically increase 2-3% per year - called an escalator
Square Footage 5,000 7,500 10,000 12,500 12,500 Leased space may need to increase as business expands
Lease Per Sq Foot 35.00 35.88 36.77 37.69 38.63
Annual Lease Expense 175,000 269,063 367,719 471,140 482,918 Income Statement
Schedule E - Schedule of Leased Equipment
Year 1 Year 2 Year 3 Year 4 Year 5
Equipment to Lease - 7 Years
Manufacturing Equipment Lease 350,000 280,000
Cumulative Value of Leases 350,000 630,000 630,000 630,000 630,000
Annual Lease Expense 50,000 90,000 90,000 90,000 90,000
Office Equipment Lease - 10 years 140,000 70,000 14,000
Cumulative Value of Leases 140,000 210,000 224,000 224,000 224,000
Annual Lease Expense - 10 years 20,000 30,000 32,000 32,000 32,000
Annual Lease Expense 70,000 120,000 122,000 122,000 122,000 Income Statement
Schedule F- Schedule of Marketing and Advertisiement
Year 1 Year 2 Year 3 Year 4 Year 5
Ad Production Cost 125,000 62,500 31,250 31,250 31,250
Ad Agency Fees 50,000 25,000 12,500 12,500 12,500
News Print Advertising 200,000 100,000 50,000 50,000 50,000
On-Line Advertising 300,000 150,000 75,000 75,000 75,000
Total Marketing and Advertising 675,000 337,500 168,750 168,750 168,750 Income Statement
Schedule H - Schedule of Equipment Purchases and Depreciation Calculations
Year 1 Year 2 Year 3 Year 4 Year 5
Equipment Purchases
Manufacturing Equipment 400,000 200,000 100,000
Office Furniture 100,000 25,000 10,000 5,000 5,000
Delivery Vehicles 100,000 50,000 50,000 0 0
Total Equipment Purchases 600,000 275,000 160,000 5,000 5,000 Cash Flow Statement
Depreciation Calculations
Manufacturing Equipment - Cost 400,000 600,000 700,000 700,000 700,000
Depreciation - SL over 10 years 40,000 60,000 70,000 70,000 70,000
Offcie Equipment 100,000 125,000 135,000 140,000 145,000
Depreciation - SL over 6 years 16,667 20,833 22,500 23,333 24,167
Delivery Vehicles 100,000 150,000 200,000 200,000 200,000
Depreciation - SL over 8 years 12,500 18,750 25,000 25,000 25,000
Total Depreciation 69,167 99,583 117,500 118,333 119,167 Income Statement
Schedule I- Schedule of Leasehold and Amortization Calculation
Year 1 Year 2 Year 3 Year 4 Year 5
Leasehold Improvements
Iniital Lease Space 5,000
New Lease Space -Lease Schedule) 0 2,500 2,500 2,500 0
Annual Additional Leased Space 5,000 2,500 2,500 2,500 0
Cost Per Sq Foot for Improvements 60.00 60.00 60.00 60.00 60.00
Cost of Improvements 300,000 150,000 150,000 150,000 0 Cash Flow Statement
Cumulative Leasehold Improvements 300,000 450,000 600,000 750,000 750,000
Amortization Calculations
Cumulative Leasehold Improvements 300,000 450,000 600,000 750,000 750,000
Amortized SL over 10 year lease term 30,000 45,000 60,000 75,000 75,000 Income Statement
Schedule J- Schedule of Profession Fees
Year 1 Year 2 Year 3 Year 4 Year 5
Legal - StartUp 100,000
Legal - Contracts and Disputes 50,000 50,000 50,000 50,000 50,000
Accounting 20,000 20,000 20,000 20,000 20,000
Business Advisory 50,000
Total 220,000 70,000 70,000 70,000 70,000 Income Statement
Schedule K- Analysis of Debt Outstanding and Interest Calculations
Interest Rate Per Annum 8.00%
Year 1 Year 2 Year 3 Year 4 Year 5
Beginning Balance 0 400,000 300,000 200,000 100,000
Proceeds from Debt 500,000 Cash Flow Statement
Repayment of Debt (100,000) (100,000) (100,000) (100,000) (100,000) Cash Flow Statement
Ending Balance 400,000 300,000 200,000 100,000 0
Annual Interest - Based on Average Balance Outstanding and Interest Rate Stated Above
Interest Expense 40,000 28,000 20,000 12,000 4,000 Income Statement
Schedule M- Analysis of Investor Capital Account Based upon needs to ensure positive cash at year end with minimum cash on hand
Expected Return to Investors 10.00% 150,000 Minimum Cash Balance on Hand at Year- Excess is paid to investors
Year 1 Year 2 Year 3 Year 4 Year 5
Beginning Balance 0 770,000 886,910 975,601 918,311
Contributions from Investors 700,000 102,100 0 0 0 Cash Flow Statement
Expected Return on Investment 70,000 87,210 88,691 97,560 91,831
Repayment to Investors 0 (72,400) 0 (154,850) (282,550) Cash Flow Statement
Ending Balance 770,000 886,910 975,601 918,311 727,592
Annual Return - Based on Beginning Balance plus Contributions for Year and Expected Return
Beg Balance plus Current Contributions 700,000 872,100 886,910 975,601 918,311
Return to Investors 70,000 87,210 88,691 97,560 91,831 Goes in schedule above