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1savage
financial_report_2.docxFinancial Statements and Projections
Financial Assumptions
Revenue and Cost Estimate
As it would take at least 6 months to market our first app so we have forecasted revenue for the last 6 months of the first year only. Below is the forecasting:
page 1
Forecasted Profit and Loss Statement
Financial Projections
Summarize the financial projections and the assumption used in estimating the projections in section F
Break Even Analysis
Financial Position
Capital Needs
Income Statements:
Total
Revenue & ExpensesJanuary FebruaryMarchAprilMay JuneJuly AugustSeptemberOctober November December
REVENUE (Sales):$0$0$0$0$0$0$10,960$16,440$19,180$21,920$27,400$27,400$123,300
Coins Purchase$0$0$0$0$0$0$2,740$4,110$4,795$5,480$6,850$6,850$30,825
Advertising$500$1,000$1,500$2,500$3,500$5,000$14,000
Subscription Fee$150$350$500$750$1,000$1,150$3,900
Total Revenue$0$0$0$0$0$0$14,350$21,900$25,975$30,650$38,750$40,400$172,025
OPERATING EXPENSES:
Salary Expenses350003500035000350003500035000350003500035000350003500035000420000
Maintenance Expenses2000200020002000200020002000200020002000200022000
Marketing Expenses1500$1,435$2,190$2,598$3,065$3,875$4,040$17,203
Legal Expenses150030004500
Administrative Expenses5001000100010001000100035003500350035003500350026500
Utilities3003003003003003003003003003003003003600
Transaction Cost (Payment)$431$657$779$920$1,163$1,212$5,161
2014
Sheet1
| Income Statements: | |||||||||||||
| 2014 | Total | ||||||||||||
| Revenue & Expenses | January | February | March | April | May | June | July | August | September | October | November | December | |
| REVENUE (Sales): | $0 | $0 | $0 | $0 | $0 | $0 | $10,960 | $16,440 | $19,180 | $21,920 | $27,400 | $27,400 | $123,300 |
| Coins Purchase | $0 | $0 | $0 | $0 | $0 | $0 | $2,740 | $4,110 | $4,795 | $5,480 | $6,850 | $6,850 | $30,825 |
| Advertising | $500 | $1,000 | $1,500 | $2,500 | $3,500 | $5,000 | $14,000 | ||||||
| Subscription Fee | $150 | $350 | $500 | $750 | $1,000 | $1,150 | $3,900 | ||||||
| Total Revenue | $0 | $0 | $0 | $0 | $0 | $0 | $14,350 | $21,900 | $25,975 | $30,650 | $38,750 | $40,400 | $172,025 |
| OPERATING EXPENSES: | |||||||||||||
| Salary Expenses | 35000 | 35000 | 35000 | 35000 | 35000 | 35000 | 35000 | 35000 | 35000 | 35000 | 35000 | 35000 | 420000 |
| Maintenance Expenses | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 22000 | |
| Marketing Expenses | 1500 | $1,435 | $2,190 | $2,598 | $3,065 | $3,875 | $4,040 | $17,203 | |||||
| Legal Expenses | 1500 | 3000 | 4500 | ||||||||||
| Administrative Expenses | 500 | 1000 | 1000 | 1000 | 1000 | 1000 | 3500 | 3500 | 3500 | 3500 | 3500 | 3500 | 26500 |
| Utilities | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 3600 |
| Transaction Cost (Payment) | $431 | $657 | $779 | $920 | $1,163 | $1,212 | $5,161 | ||||||
| Total Expenses | 37300 | 41300 | 38300 | 38300 | 38300 | 39800 | 42665.5 | 43647 | 44176.75 | 44784.5 | 45837.5 | 46052 | 498963.25 |
| Earnings Before Interest and Tax | ($37,300) | ($41,300) | ($38,300) | ($38,300) | ($38,300) | ($39,800) | ($28,316) | ($21,747) | ($18,202) | ($14,135) | ($7,088) | ($5,652) | ($326,938) |
| Interest Expense | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 24000 |
| Earnings Before Tax | ($39,300) | ($43,300) | ($40,300) | ($40,300) | ($40,300) | ($41,800) | ($30,316) | ($23,747) | ($20,202) | ($16,135) | ($9,088) | ($7,652) | ($350,938) |
| Tax Expense | ($11,790) | ($12,990) | ($12,090) | ($12,090) | ($12,090) | ($12,540) | ($9,095) | ($7,124) | ($6,061) | ($4,840) | ($2,726) | ($2,296) | ($105,281) |
| Net Income | ($27,510) | ($30,310) | ($28,210) | ($28,210) | ($28,210) | ($29,260) | ($21,221) | ($16,623) | ($14,141) | ($11,294) | ($6,361) | ($5,356) | ($245,657) |
ParticularsAmount
ASSETS:
Current Assets:
Cash($245,657)
Other Current Assets$100,000
Long Term Assets:
Office Equipments$500,000
Total Assets$354,343
LIABILITIES:
Current Liabilities:
Salaries Payables
Long Term Liabilities:
Loans$200,000.00
Total Liabilities $200,000.00
Owner's Equity
Equity Investment$400,000.00
Retain Earnings($245,657)
Total Liabilities and
Owner's Equity
$354,343
Balance Sheet: For the year ended, 2014
Sheet1
| Balance Sheet: For the year ended, 2014 | |
| Particulars | Amount |
| ASSETS: | |
| Current Assets: | |
| Cash | ($245,657) |
| Other Current Assets | $100,000 |
| Long Term Assets: | |
| Office Equipments | $500,000 |
| Total Assets | $354,343 |
| LIABILITIES: | |
| Current Liabilities: | |
| Salaries Payables | |
| Long Term Liabilities: | |
| Loans | $200,000.00 |
| Total Liabilities | $200,000.00 |
| Owner's Equity | |
| Equity Investment | $400,000.00 |
| Retain Earnings | ($245,657) |
| Total Liabilities and Owner's Equity | $354,343 |
Fixed Cost$500,000
Price (Average)$2.74
Variable Cost$1,308,557
Sales Average1,452,500
VC per APP$0.90
Break-Even Unit271,872
Break-Even Analysis
Sheet1
| Break-Even Analysis | |
| Fixed Cost | $500,000 |
| Price (Average) | $2.74 |
| Variable Cost | $1,308,557 |
| Sales Average | 1,452,500 |
| VC per APP | $0.90 |
| Break-Even Unit | 271,872 |
Equity Capital$400,000
Debt Capital (Loan @ 12%)$200,000
Total Investments$600,000
Capital Requirements
Sheet1
| Capital Requirements | |
| Equity Capital | $400,000 |
| Debt Capital (Loan @ 12%) | $200,000 |
| Total Investments | $600,000 |
Advertising Earnings Growth25%
Subscription growth15%
Marketing Expense10%
Transaction Cost3%
Tax Rate30%
Interest Rate12%
Interest Expense$24,000
Financial Assumptions
Sheet1
| Financial Assumptions | |
| Advertising Earnings Growth | 25% |
| Subscription growth | 15% |
| Marketing Expense | 10% |
| Transaction Cost | 3% |
| Tax Rate | 30% |
| Interest Rate | 12% |
| Interest Expense | $24,000 |
Total
Sales projectionJanuary FebruaryMarchAprilMay JuneJuly AugustSeptemberOctober November December
Sales Unit4,0006,0007,0008,00010,00010,00045,000
Regular Version (75%)3,0004,5005,2506,0007,5007,50033,750
Premium Version (25%)1,0001,5001,7502,0002,5002,50011,250
Regular Price $1.995,9708,95510,44811,94014,92514,92567,163
Premium Price $4.994,9907,4858,7339,98012,47512,47556,138
Total Revenue From Sales10,96016,44019,18021,92027,40027,400123,300
2014
Sheet1
| 2014 | Total | ||||||||||||
| Sales projection | January | February | March | April | May | June | July | August | September | October | November | December | |
| Sales Unit | 4,000 | 6,000 | 7,000 | 8,000 | 10,000 | 10,000 | 45,000 | ||||||
| Regular Version (75%) | 3,000 | 4,500 | 5,250 | 6,000 | 7,500 | 7,500 | 33,750 | ||||||
| Premium Version (25%) | 1,000 | 1,500 | 1,750 | 2,000 | 2,500 | 2,500 | 11,250 | ||||||
| Regular Price $1.99 | 5,970 | 8,955 | 10,448 | 11,940 | 14,925 | 14,925 | 67,163 | ||||||
| Premium Price $4.99 | 4,990 | 7,485 | 8,733 | 9,980 | 12,475 | 12,475 | 56,138 | ||||||
| Total Revenue From Sales | 10,960 | 16,440 | 19,180 | 21,920 | 27,400 | 27,400 | 123,300 | ||||||
| Coins Purchase | 2,740.00 | 4,110.00 | 4,795.00 | 5,480.00 | 6,850.00 | 6,850.00 | 30,825.00 |
