Operations & Finances

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Assumptions Sheet

In this space you will need to include all your citations and reasoning for the numbers you have included on the "Source Data" sheet. If you used 3% for your industry growth rate you must indicate where you gathered that information from. If you are making an assumption, then you must state that here, if you are extropalating based on historical data then note the source of the data and the assumption that things will continue.
Financial Document Entry Item Detailed Description and Citations

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Source Data

Company Name: Insert Name of Business Here
First Day of Business (Year 1)
Jason Ripley: Jason Ripley: Insert start date for business Format = year-month-day so 21-1-1 for Jan 1, 2021		 0 1 2 3 4 5 6 7 8 9 10 11
Last Day of Business (Year 1)

Jason Ripley: Jason Ripley: Insert year end date for business in format year-month-day, so 21-12-31 for Dec 31, 2021		 Calculating Depreciationi Expense:
Startup Financing: Straight Line is the most common and easiest method for calculating depreciation. Depreciation expense = (Original Cost - Salvage Value) / Number of years in life span
How Much Are You Investing Yourslef? $ - 0 Item Purchase Price Salvage Value Usefull Life Depreciation Expense Under "Usefull Life", if you aren't using one of the categories, make sure that there is still a number (like a 1) in the box or you will get a divide by 0 error
Do You have investment from an Angel Investor or Family Member? $ - 0 Kitchen Equipment $ - 0 $ - 0 1.00 $ - 0
Will Additional Members of your Management Team be Investing in the Business? $ - 0 Dining Room Furniture & Equipment $ - 0 $ - 0 1.00 $ - 0
Will you be Borrowing Money from a Bank or Other Financial Institution? $ - 0
Jason Ripley: Jason Ripley: This will sum the two cells below: Short Term + Long Term debt		 Office Furniture & Equipment $ - 0 $ - 0 1.00 $ - 0
Short Term Debt (line of credit, notes payable etc.) $ - 0 Vehicles $ - 0 $ - 0 1.00 $ - 0
Long Term Debt Long Term Loans etc.
Startup Expenses:
Will you need to retrofit or renovate your building or leased space? $ - 0 Sales
Will you need to purchase kitchen equipemnt? $ - 0 How will you forecast your sales? Hotels use statistics like REVPAR (revenue per available room), restaurants use # covers and
Will you need to purchase dining furniture (tables/chairs), POS systems, flatware, glassware, linen? $ - 0 average check ($/cover), retail stores use things like $sales/hr, or $sales/employee
Will you need to purchase office furniture, computers etc? $ - 0 Whichever method you use, just make sure to indicate how you calculated the total, and back up your work with citations for
Will you do some advanced marketing/advertising? $ - 0 where you found things like average check amounts, or $sales/hr for your industry.
Do you need to purchase a license to operate, or pay an accountant or lawyer to set up your business? $ - 0
Will you need to purchase inventory in advance of opening? $ - 0 Use this space to calculate first month sales:
Are there any other costs that have not been previously listed that you will incurr before your first day of business? $ - 0
Will you be purchasing any vehicles for delivery or company use? $ - 0 Variable 1 (covers, $sales/hr, REVPAR etc.) Variable 2 ($/cover, # hours, # rooms etc.) Forecast Sales
How much cash will you hold in reserve to make sure you can meet short term debt / in case of emergency? $ - 0 0 0 $ - 0
Will you have credit terms with any of your suppliers? Will you have outstanding Accounts Payable when you open? $ - 0
Profit & Loss: Labour Costs
Forecasting First Month Sales $ - 0 What salaries will you pay your managers (and owners)? These are fixed costs and do not change based on revenue, you incur them
What is the average, or expected annual growth rate for sales in your industry? 0.00% even when your business is closed. Your Labour costs for the rest of your employees however are considered variable, because you
What is the average rate of returns and discounts for your industry? 0.00% alter them depending on business volumes.
What is the industry average food cost? 0.00% Annual Salary
What is the industry average beverage cost? 0.00% Manager 1 $ - 0
What will you pay your managers? $ - 0 Manager 2 $ - 0
What about the rest of your employees? 0.00% Manager 3 $ - 0
Monthly lease costs $ - 0 Manager 4 $ - 0
Office Expenses - these are costs that are not directly related to your source of revenue, but are required for you to run your business. Paper rolls, pens/pencils, envelopes, printer paper etc. Typically this will be set as a percentage of sales, so do some research to find the industry average cost. Entered as a percentage % 0.00%
What will your ongoing marketing budget be worth? It's a good idea to budget this as a percentage of sales, so that as you start to be busier you plan to allocate more dollars to keep the growth rate up. Entered as a percentage % 0.00% Industry average variable labour cost 0.00%
Repairs & Maintenance (R&M) costs are a necessary part of every business. Things break. You should budget this as a percentage of gross revenue, what is the indusry average? Entered as a percentage % 0.00%
Utilities expense is typically budgeted as a percentage of sales. The longer you are open, the more you will spend on water, electricity, natural gas etc. Entered as a percentage % 0.00% Rent/Lease Costs
Licence and other fees include things like a business licence, a liquor licence, consulting/accounting/legal fees etc. You typically pay these once per year, but from a budgeting perspective you average out the cost over the entire year. Do your best to determine the average cost for your business. $ - 0 If you are not purchasing your physical location, then you will likely be leasing a space. Lease costs are typically based on square
Interest expense - Did you borrow money to start your business? If so, find the average borrowing costs. $ - 0 footage (or square meters). The cost per square foot will be different depending on where you plan to open your business. Use
What is the average corporate tax rate for small business in Canada, or where your business is located? 0.00% sources such as www.realtor.ca, or search for commercial leasing companies in the area you are planning your virtual business.
Cash Flow:
Will you be allowing customers to pay on credit - will you have accounts receivable? If so you will need to estimate how much credit you are willing to extend as this will affect your cash flow position. Please enter the total value of AR you expect to have at your year end. $ - 0 Industry average per square foot cost $ - 0
Will you be investing in inventory? If you expect that sales will continue to grow you will probably need to carry more product to support those sales and owning more inventory means you will have less cash. Please enter the total value of invenotry you expect to have at your year end. $ - 0 Number of square feet required 0.00 $ - 0 Annual Lease Costs
Do you plan on upgrading, or buying any new equipment for the kitchen, dining room, office or vehicles? Please enter the value of any additional purchases in the cells provided:
Kitchen Equipment $ - 0 Calculating Interest Expense
Dining Equipment $ - 0 Interest Rate Length of Loan (yrs) Amount Borrowed Ending Balance Interest Expense (per month)
Office Equipment 1% 1.00 $ - 0 $ - 0 $ - 0 $ - 0
Vehicheles $ - 0 Based on these numbers, your monthly payment will be: $0.00
Will you plan on paying back all your creditors prior to your year end, or will you run a balance? Most suppliers will offer credit terms like 2/10n30 which means a 2% discount if paid within 10 days otherwise your balance is due within 30 days. Paying back your AP's means you will have less cash, owing more debt means more cash available. Please enter your expected year end balance for AP here. $ - 0
Like your AP, your short term debts have an effect on your cash position. If you owe money, then you have more, if you repay your debt you have less cash on hand. Owning a business is a balance of the two. Please enter your expected short term notes payable balance for your year end here. $ - 0

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Sources & Uses of Funds

Insert Name of Business Here
Sources & Uses of Funds Statement
Sources of Funds
Founder Investment $ - 0
Angel Investor $ - 0
Short/Long Term Notes Payable $ - 0
Management Team Investment $ - 0
Total funds committed $ - 0
Total funds required $ - 0
Total funds needed from Equity investor $ - 0
Jason Ripley: Jason Ripley: Ideally you want this variance to be $0.00. If it is not, then adjust your investment section up or down to get it to zero OR adjust your Cash Reserves up or down to get it to zero. Both will happen on the Source Data Tab.
Uses of Funds
Renovation Costs $ - 0
Kitchen Equipment $ - 0
Dining Furniture $ - 0
Office Furniture $ - 0
Sales & Marketing $ - 0
Legal/Insurance $ - 0
Initial Inventory $ - 0
Other $ - 0
Vehicles $ - 0
Cash Reserves $ - 0
Total funds Required $ - 0

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Balance Sheet

Insert Name of Business Here
Balance Sheet As At:
December 31, 1899 December 31, 1899
Current Assets
Cash and Cash Equivalents $ - 0 $ - 0
Accounts Receivable $ - 0 $ - 0
Inventories $ - 0 $ - 0
Total Current Assets $ - 0 $ - 0
Fixed Assets
Kitchen Equipment $ - 0 $ - 0
Less Accumulated Depreciation $ - 0 $ - 0
Restaurant Furniture/Equipment $ - 0 $ - 0
Less Accumulated Depreciation $ - 0 $ - 0
Office Furniture/Equipment $ - 0 $ - 0
Less Accumulated Depreciation $ - 0 $ - 0
Vehicles $ - 0 $ - 0
Less Accumulated Depreciation $ - 0 $ - 0
Total Fixed Assets $ - 0 $ - 0
Total Assets $ - 0 $ - 0
Current Liabilities
Accounts Payable $ - 0 $ - 0
Short Term Notes Payable $ - 0 $ - 0
Total Current Liabilities $ - 0 $ - 0
Long-term debt
Long Term Notes Payable $ - 0 $ - 0
Total Long Term Debt $ - 0 $ - 0
Total Liabilities $ - 0 $ - 0
Owners Equity
Owners Equity/Partnership Equity/Retained Earnings $ - 0 $ - 0

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Income Statement

Insert Name of Business Here
Income Statement for Year Ending: December 31, 1899
Income December, 1899 January, 1900 March, 1900 March, 1900 April, 1900 May, 1900 June, 1900 July, 1900 August, 1900 September, 1900 October, 1900 November, 1900
Gross Sales $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Less Returns & Discounts $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Net Sales $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Cost of Goods Sold:
Food Cost $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Beverage Cost $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Gross Profit $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Expenses
Fixed Labour Cost (manager salaries) $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Variable Labour Cost $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Rent (Lease) $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Office Expenses $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Marketing Expense $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Repairs & Maintenance $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Utilities $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Licenses & Other Fees $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Total Operating Expenses $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
EBITDA $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Depreciation Expense $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Interest $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Taxes $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Net Profit $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0

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Cash Flow

Insert Name of Business Here
Cash Flow
January, 2020 February, 2020 March, 2020 April, 2020 May, 2020 June, 2020 July, 2020 August, 2020 September, 2020 October, 2020 November, 2020 December, 2020
Cash Balance at Beginning of Month $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Cash Flow From Operating Activities
Changes in accounts receivables $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Changes in inventory $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Changes in accounts payable $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Changes in depreciation $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Net Profit $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Total Changes in Cash from Operations $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Cash Flow from Investing Activities
Capital Expenditures - New Equipment $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Capital Expenditures - New Vehicles $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Total Changes in Cash from Investing $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Cash Flow from Financing Activities
Long Term Notes Payable Repayments $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Short Term Notes Payable Repayment $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Total Changes in Cash from Financing $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Cash Balance at End of Month $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0

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