FIN_317 Paper
courseangel
assignment_3_not_good.docx
ASSIGNMENT 3
NAME
University
23 November 2014
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Pro Forma Balance Sheet |
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|
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Year 1 |
Year 2 |
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Assets |
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|
|
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Current Assets |
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|
|
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Cash |
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$3,440,094 |
$7,345,603 |
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Inventory |
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$66,090 |
$75,607 |
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Other Current Assets |
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$17,000 |
$17,000 |
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Total Current Assets |
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$3,523,184 |
$7,438,209 |
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Long-term Assets |
|
|
|
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Long-term Assets |
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$175,000 |
$175,000 |
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Accumulated Depreciation |
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$12,000 |
$24,000 |
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Total Long-term Assets |
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$163,000 |
$151,000 |
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Total Assets |
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$3,686,184 |
$7,589,209 |
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Liabilities and Capital |
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Year 1 |
Year 2 |
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Current Liabilities |
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|
|
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Accounts Payable |
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$209,488 |
$356,823 |
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Current Borrowing |
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$20 |
$20 |
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Other Current Liabilities |
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$0 |
$0 |
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Subtotal Current Liabilities |
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$209,508 |
$356,843 |
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Long-term Liabilities |
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$33,100 |
$25,100 |
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Total Liabilities |
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$242,608 |
$381,943 |
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Paid-in Capital |
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$450,420 |
$450,420 |
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Retained Earnings |
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($278,420) |
$2,743,156 |
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Earnings |
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$3,271,576 |
$4,013,690 |
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Total Capital |
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$3,443,576 |
$7,207,267 |
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Total Liabilities and Capital |
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$3,686,184 |
$7,589,209 |
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Net Worth |
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$3,443,576 |
$7,207,267 |
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Pro Forma Profit and Loss |
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Year 1 |
Year 2 |
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Sales |
$7,666,320 |
$9,023,259 |
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Direct Cost of Sales |
$2,355,984 |
$2,695,245 |
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Other Production Expenses |
$0 |
$0 |
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Total Cost of Sales |
$2,355,984 |
$2,695,245 |
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Gross Margin |
$5,310,336 |
$6,328,013 |
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Gross Margin % |
69.27% |
70.13% |
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Expenses |
|
|
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Payroll |
$634,040 |
$665,742 |
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Sales and Marketing and Other Expenses |
$92,807 |
$81,632 |
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Depreciation |
$12,000 |
$12,000 |
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MICROS system, phones, security, fire, computer upgrades |
$10,000 |
$10,000 |
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Exterminating |
$300 |
$300 |
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Ceramic/Glass/Silver Upkeep |
$2,400 |
$2,400 |
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Maintenance/Repairs |
$22,000 |
$20,000 |
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Linen and Dry Cleaning |
$2,100 |
$2,400 |
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Dish and Cleaning Supplies |
$4,800 |
$5,000 |
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Office Products Upkeep |
$2,400 |
$2,500 |
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Paper Products Upkeep |
$9,600 |
$10,000 |
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Utilities |
$28,160 |
$30,160 |
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Insurance |
$8,604 |
$9,104 |
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Rent |
$49,800 |
$54,800 |
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Employee Healthcare |
$36,000 |
$38,000 |
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Comps/Donations/Handouts |
$30,000 |
$30,000 |
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Payroll Taxes |
$0 |
$0 |
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Total Operating Expenses |
$945,011 |
$974,038 |
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Profit Before Interest and Taxes |
$4,365,325 |
$5,353,975 |
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EBITDA |
$4,377,325 |
$5,365,975 |
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Interest Expense |
$3,223 |
$2,388 |
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Taxes Incurred |
$1,090,525 |
$1,337,897 |
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Net Profit |
$3,271,576 |
$4,013,690 |
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Net Profit/Sales |
42.67% |
44.48% |
Work expenses may be lower than the professional forma ventures - however we are anticipating most dire outcome imaginable of our consideration being redirected as we develop into precisely what we require and when. Later years may be lower as we take in more about the amount of work is positively basic. Alternately, if our supper and show idea is generally welcomed, we may need to build staff (and subsequently work expenses) to serve the client request.
The Gross Margin Percentage holds relentless from year to year because of holding menu and show costs with negligible increments to take care of expanded sustenance expenses and working costs. This may be impossible - the dilemma is - would we like to raise our costs every year or hold them quick. Client reaction reviews consolidated with financial condition investigation will yield the response to this after the initial twelve months. In any case, even from a pessimistic standpoint, we conjecture benefits between $3-$4 million for every annum.
Start-up financing necessities come to only a tiny bit short of $500,000. Costs and resource buys will increment significantly in the event that we should completely furnish and prepare a space for its first use as an issue. Financing will be through a blend of holder speculation, outside venture, and long haul advances. A little measure of current getting (MasterCard buys) completes the start-up financing.
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Start up funding |
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Start up expense |
178420 |
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Start up assets to fund |
317000 |
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Total required |
495420 |
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Assets |
|
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Non cash asset |
267000 |
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Cash required |
50000 |
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Additional cash raised |
420 |
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Cash balance on starting date |
50420 |
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Total asset |
317420 |
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Liabilities and capital |
|
|
Liabilities |
5420 |
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Long term liabilities |
40000 |
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Accounts payable |
0 |
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Current liabilities |
0 |
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Total liabilities |
45420 |
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Capital |
|
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Planned investment |
|
|
Owner |
50420 |
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Investor |
400000 |
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Additional investment required |
0 |
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Total planned investment |
450420 |
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Less: start up expense |
(178420) |
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Total capital |
272000 |
|
Total capital and liabilities |
317420 |
|
Total funding |
495840 |
