Business Plan Project
canmic
sample_business_plan_a.docSample Business Plan A: Service Business
Webster BUSN 5000 Online Course
ForeverYours
Wedding Consultants
From your engagement to your honeymoon…
Create memories that will last FOREVER!
Last Revised: January 2, 2015
This business plan is intended solely for informational purposes to assist you with a due-diligence investigation of this project. The information contained herein is believed to be reliable, but the management team makes no representations or warranties with respect to this information. The financial projections that are part of this plan represent estimates based on extensive research and on assumptions considered reasonable, but they are, of course, not guaranteed. The contents of this plan are confidential and are not to be reproduced without express written consent.
Table of Contents
Executive Summary 3
Company Direction 5
Present Situation 5
Vision and Mission 5
Strategic Goals and Objectives 5
Company Overview 5
Legal Business Description 5
Management Team 5
Strategic Alliances 6
Service Strategy 6
Current Services 6
Days and Hours of Operation 7
Research and Development 7
Service and Delivery 7
Market Analysis 8
Market Definition 8
Customer Profile 8
Competition 8
Risks 9
Marketing Plan 9
Sales Strategy 9
Pricing Strategy 9
Distribution Channels 10
Advertising and Promotion 10
Publicity 10
Financial Plan 10
Assumptions 10
Summary of Financial Statements 11
Capital Requirements 12
Exit/Payback Strategy 12
Conclusion 12
Supporting Documents 13
Income Statements (2016, 2017, 2018) 14
Cash Flow Statements (2016, 2017, 2018) 17
Balance Sheets (2016, 2017, 2018) 20
Note: To minimize problems with Table of Contents alignment in your business plan, you can copy and paste this page to your document. As long as your Page Setup has a 1.25" left margin and a 1" right margin, the alignment should work
Executive Summary
ForeverYours is a wedding consultant firm that will be located in Emerald City, Kansas on the west side of the city in 400 square feet of office space.
ForeverYours will be operated as a partnership using a Limited Liability Company (LLC) form of business ownership that will be run by owner and co-founder Dorothy Gale who has eight years of wedding consultant experience. She will be responsible for the daily operations as well as the creative steps in growing ForeverYours. Dorothy will operate the LLC with co-founder Ray Bolger who brings years of business expertise.
Target customers at ForeverYours are upper-middle to high-income couples. The primary group is in the age range of 22 – 45; however, the owners realize that there are couples outside of that age range that may also want to use the services. According to city-data.com, there are 25,000 people in this age group in Emerald City. Marketing will be done at bridal shows and through pamphlets to be sent to couples whose names come from mailing lists purchased from websites like www.theknot.com and social media sites.
ForeverYours will provide customers with help in planning their wedding from their engagement to their honeymoon. Customers will be able utilize the consultants of ForeverYours by selecting one of three packages, with consultation fees ranging from approximately $1,500 to $6,000. They can have a full service package, a partial service package or they can have assistance only at their wedding activities. When ForeverYours purchases wedding items for the full or partial service packages, clients will be billed with a 50 percent markup built in.
ForeverYours is confident in its ability to provide services to its customers. When customers are satisfied with the products and treatment provided by ForeverYours, they will recommend other couples who are looking for help in achieving their dream wedding.
The co-founders believe they will make a reasonable profit. There will be no borrowing needed because during the first year of business the owners will invest $20,000 of their personal savings, which they should get back in the third year of the business.
Note: Listed below are some suggested guidelines for preparing the Executive Summary. As appropriate for your business plan, include paragraphs or comments about the following.
a. Include the business name and location.
b. Provide a brief description of your company’s management capabilities.
c. Provide a brief description of your company including history (if not a start-up business), industry and target market.
d. Describe your products and services and the marketing mix to be used to reach your customers.
e. Explain how (and why if you are confident) your company will succeed in the future.
f. Summarize your financial request (if you are applying for a loan).
g. Describe your funding requirements including how the money will be spent and your repayment proposal if you are applying for a loan.
Note: This sample plan was submitted by a former BUSN 5000 Online student in 2005. After securing permission to use the plan with changes, I changed the name of the town and other information so that you cannot tell who submitted it. I also made significant changes and additions to the financial statements to make corrections and to provide extra footnotes so you can see how the statements fit together. When preparing your business plan, please use the year values appropriate for your business plan and your financial statements.
This sample business plan is for a small wedding consultant service business. Service businesses normally do not maintain an inventory of tangible products; therefore, they do not require a Cost of Goods Sold (COGS) section in the income statement. This business uses cash basis accounting since it receives monies from customers when the work is completed, and it pays vendors when it obtains the product or service. The business also pays its income taxes in the year the incomes taxes are due; therefore, in the following year, it does not owe income taxes due from the previous year.
I and the other BUSN 5000 Online instructors do not expect most of you to be able to submit a perfect set of financial statements with your business plan. We are looking for a decent attempt at getting the income statement fairly close and at least a fairly complete cash flow statement and a balance sheet that hopefully balances. (For those of you who go on to take the BUSN 5600 Accounting course, you can perfect your approach then.)
Eddie Schwertz, BUSN 5000 Course Lead, Webster University
Company Direction
Present Situation
This business plan is for the startup of ForeverYours Wedding Consultants. ForeverYours will have the ability to help plan a wedding from a couple’s engagement through to their honeymoon. Customers may utilize consultants at three different levels of involvement, depending upon how much the customers want to do themselves. The Platinum, Gold, and Silver levels are described in more detail under Service Strategy.
Vision and Mission
The vision of ForeverYours is to provide its customers with the tools and resources they deserve every step of the way from their engagement to their honeymoon. The company mission is to provide each couple with a beautiful and less stressful engagement and wedding that is memorable in every way and that fits their budget.
Strategic Goals and Objectives
The strategic goal of ForeverYours is to develop a satisfied customer base that will bring more customers to utilize our services. The goal of ForeverYours is to develop into a larger business where couples will be able to have a one-stop consultant for all of their wedding needs. The business will be maintained on the local level with no goals to expand beyond Emerald City and neighboring cities and towns.
Company Overview
Legal Business Description
ForeverYours will be established as Limited Liability Company (LLC) partnership and will be located west of Emerald City, Kansas, in an area utilizing 400 square feet of a business office suite. Contact information can be found on the cover sheet of this business plan.
Note: If a student wants to use his or her home as the location for the business, please keep in mind that home office deductions are beyond the scope of this course. Therefore, please simply claim rent, utility, and insurance expenses as if you were renting space from someone. Income tax treatment of home offices is covered in the Webster BUSN 5600 course.
Management Team
Dorothy Gale, owner and co-founder of ForeverYours , brings 10 years of wedding consultant, public relations and marketing experience. Co-founder, Ray Bolger, adds 15 years of business expertise to ForeverYours. Anderson and Black, LLC, will be used for legal services. Betty Smart will serve as CPA.
Strategic Alliances
Strategic alliances will be formed with the following local businesses because they specialize in the various elements of weddings.
Note: The original student business plan identified phone numbers and website URLs for each of the following businesses.
All about Invitations
Harper’s Cakes
Fantastic Flowers
Cornerstone Multimedia
Limousines Unlimited
Carol’s Catering
Premier Jewelers
Emerald City Travel
Formalwear by Frank
Bridal Gowns Rentals
Music/DJ Services
If a customer does not want to use one of these companies, ForeverYours will work with them to find who best suits their needs. Customers will individually select their wedding and rehearsal locations, and ForeverYours will work with those entities.
Service Strategy
Current Services
ForeverYours can help couples make plans from their engagement to their wedding and honeymoon. Customers will meet with ForeverYours in consultative sessions to discuss their needs and wants for their future. If they choose ForeverYours to help them with their wedding, they will select one of the following packages.
Platinum Package – This full service package will be available for an average consulting fee of $6,000. Couples use this package when they would like help beginning with the engagement right through to the honeymoon. Services will also include orchestrating the wedding activities and purchasing all the wedding items. The average cost of the wedding items is $34,500.
Gold Package – This partial service package is designed for couples who would like to do approximately half of the planning and purchase wedding items on their own. For example, most of the couples who use this package will already be engaged. They will also have identified a few more things that they would like to do on their own, such as arranging and purchasing their flowers and the transportation. No matter what they choose to arrange and purchase on their own, ForeverYours will help them with all of the last minute details and orchestrate all of the remaining wedding activities for an average consulting price of $3,000.
Silver Package – This consultation only package is designed for those couples who would just like only consulting assistance at their rehearsal, wedding and reception. They make the arrangements and purchases of their wedding items. For an average consulting fee of $1,500, ForeverYours will (1) ensure everything is set up and ready to go with all the arrangements they have made and (2) will orchestrate all of the wedding activities to give the customers a stress-free wedding day.
After the couple chooses what wedding level package best fits their needs, a ForeverYours consultant will meet with them and plan the details. For example, there will be discussion of the kinds of flowers they would like or what they have in mind for a reception location. Once the couples have presented all of their details, ForeverYours will begin its research.
The consultants will meet first with the strategic alliance partners to see if they can fill the needs of the clients. Once the consultant finds what is thought to best match the client's desires, the consultant will bring a picture or sample back to the client for feedback. If clients are not satisfied, the consultant will either continue to work with the company’s strategic alliance partners to research another idea or will work with another business to find something that best matches the client’s needs and wants. After all of the information is gathered, a follow-up meeting will be scheduled with the client. If they approve of the choices made by the consultant, the decisions will be implemented. If they aren’t happy with the choices, the consultant will continue to look until they are 100 percent satisfied.
Days and Hours of Operation
ForeverYours will provide clients with convenient hours. Someone will be in the office during the following hours:
Monday – Thursday 1 p.m. – 9 p.m.
Fridays 10 a.m. – 4 p.m.
Saturdays 10 a.m. – 3 p.m.
Gathering information and obtaining samples for clients will be done primarily in the mornings during the week. Generally wedding rehearsals, ceremonies and receptions will take place on Fridays through Sundays.
Note: Your business should set days and hours of operation that are most appropriate for your target customers.
Research and Development
In order to provide the best service for customers, ForeverYours must follow the latest trends in wedding planning. This may include the gowns and other apparel that are in fashion or the types of locations couples are using for rehearsal dinners, weddings and receptions. These trends will be researched so that the consultants can give clients the most up-to-date and appropriate information that will meet their wants and needs. Strategic alliance partners will be utilized in this research.
Service and Delivery
Each client is very important to us so it is the company’s goal to provide them with the best ideas and products for their big day. One of the best features of ForeverYours is that consultants will bring the samples to the clients. In addition, clients will not be required to attend all the meetings to find what they would like. Consultants go to each of the individual businesses, gather samples and pictures, and meet with clients to discuss whether or not they are satisfied with the gathered ideas and samples.
Market Analysis
Market Definition
Many couples today are looking for a little bit of help with the many details of their wedding. They are looking for someone to be interested in what they would like, do the research for them, and provide them with details that will help make their wedding day even more special. Couples do not want to be stressed out or running around on their special day. They want the help of someone who will organize and orchestrate the activities, thus taking the stress off the couple. Couples want to be a part of making their day special, but they do not want to make all of the phone calls and do all of the research.
Customer Profile
Target customers at ForeverYours are upper-middle to high-income couples. The primary group is in the age range of 22 – 45; however, the owners realize that there are couples outside of that age range that may also want to use the services. According to city-data.com, there are 25,000 people in this age group in Emerald City. A review of engagement and wedding announcements in The Emerald City Times indicates a good size customer base. These customers tend to be very busy with work or other commitments. ForeverYours will target customers who have the money to put into a large wedding with the help of a consultant.
Note: You should include the source(s) of your demographics (e.g., where you get the population and demographic information for your customer profile) and identify how many potential customers there may be.
Competition
The Emerald City Yellow Pages indicate there are 12 businesses listed that perform the services of coordinating weddings. These are businesses specializing in various aspects of wedding services. There are eight different consultant businesses for weddings and event planning. Four of those are specifically wedding consultants. The long-term plan for ForeverYours is to be housed in a larger space that couples can come to and select everything they need for their wedding. Presently, there is no other business like this in the Emerald City area can provide this level of service.
Risks
As with any business, there will be risks associated with the start up of the business. The greatest risk will be that the company will not be able to locate enough clients and build its customer base as quickly as it would like.
Since ForeverYours will target upper middle- to high-income clients, it is less likely that the economy will negatively impact business operations as much as if the company were attempting to serve lower-income clients.
Another risk is that the company’s successes may be copied by its competitors; however, once again, the target customer base will be more interested in quality services and known accomplishments, and this is where ForeverYours will shine.
Marketing Plan
Sales Strategy
ForeverYours will directly market to target customers. At the opening of ForeverYours, the company will send fliers to all of its strategic alliance partners who will distribute them to their customers as they begin to shop for their wedding needs. In addition, ForeverYours will develop a pamphlet that will be sent to brides and grooms in the Emerald City area. This pamphlet will include pictures of samples from our strategic alliance partners such as pictures of flowers, dresses and photography. Mailing lists will be purchased from websites like www.theknot.com.
Pricing Strategy
There are three levels of service available to clients.
$6,000 – Platinum Package – A full service package where clients can get help with all of the details of their wedding from their engagement to their honeymoon.
$3,000 – Gold Package – The partial package in which clients receive help with a lot of the planning but there are still things that they would like to organize themselves.
$1,500 – Silver Package – A wedding activities package in which consultants relieve the stress of the bride and the groom on the wedding day by orchestrating the rehearsal, wedding ceremony and reception.
When clients selects the Platinum or Gold packages, a consultant from ForeverYours will contact strategic alliance partners or other businesses to find samples and items that the clients want for their wedding. ForeverYours will take the price negotiated with the business partner and mark it up 50 percent to determine the client price. For example, if a wedding dress costs $1,000, a $500 markup is added, and the client will pay $1,500.
Note: Students will need to determine the most appropriate pricing strategy and pricing method to use for their business. Please refer to your textbook for information concerning pricing strategies and pricing methods.
Distribution Channels
ForeverYours’ consultants will work directly with clients to develop their wedding step-by-step. They will also work directly with strategic alliance partners and other wedding businesses to find the perfect products and services for clients.
Advertising and Promotion
The main form of advertising will be through pamphlets and fliers. Mailing lists will be purchased that are based on upper-middle to high-income couples who are planning on getting married in the immediate area. The company will also advertise through its website and other social media and will have an ad in the Yellow Pages that lists the offered services.
All fliers and pamphlets will contain picture samples of the services and products of our strategic alliance partners, such as pictures of flower bouquets or photography of weddings. Testimonials of satisfied customers will also be included.
Publicity
ForeverYours will be showcased at bridal shows that are held throughout our market area. Samples available of our work will be made available to show clients who are looking around for help at their wedding.
Financial Plan
Assumptions
During its first and second years, ForeverYours will have an office manager and two part-time consultants. In the third year one more part-time consultant will be added. After the third year, the company will look at bringing on a full-time consultant which will depend on the amount of business we have. The office manager will have a set schedule and will aide in helping to gather some of the information for our clients. Consultants' schedules will vary due to the activities we must organize for our clients.
ForeverYours will start out as a consultant service that will research and gather the products for clients. It is the company’s goal to develop a business where clients will be able to come and choose everything for their wedding at one time. The consultation fees will be collected right from the start, and estimated revenue in the form of consultation fees for 2016 is $66,000, as follows:
4 customers @ $6,000
8 customers @ $3,000
12 customers @ $1,500
During the second year (2017), the company will continue to increase clients by word of mouth and advertising. Estimated consultation revenue is $82,500, as follows:
5 customers @ $6,000
10 customers @ $3,000
15 customers @ $1,500
Note: You are only asked to provide two years of financial statements for your business plan assignment.
During the third year (2018), revenue from consultation fees is estimated at $99,000, as follows:
6 customers @ $6,000
12 customers @ $3,000
18 customers @ $1,500
Summary of Financial Statements
Reminder: The Instructor has decided not to require you to calculate home office deductions since this level of detail is beyond the scope of BUSN 5000.
In addition to the consulting fees earned during the first three years of business, ForeverYours will earn income from its services and items arranged and purchased on behalf of clients who select the Platinum and Gold wedding service plans.
During the first year of business (2016), the company estimates a gross profit of $347,000. Consultation fees will bring in a total of $66,000. The wedding packages will cost the company $23,000 per Platinum package client. Clients will pay $34,500 ($23,000 times 1.5). For the Gold partial package, customers will pay $18,000 while the company will pay strategic alliance partners $12,000. ForeverYours should earn $282,000 in wedding packages from these 12 clients. After all expenses for the year, which will include $188,000 for the purchase of the wedding packages, the company should have a net income of $58,398 after taxes.
During the second year of business (2017), the company expects a gross profit of $433,750. This is a 25% increase over the first year. Consultation fees will bring in approximately $82,500. A total of $235,000 in wedding packages will be purchased, and clients will pay a total of $352,500 for their wedding packages. After all expenses for the year, which include the purchase of wedding packages, the company should have a net income of $85,437 after taxes.
Note: You are only required to prepare two years of financial statements for your business plan.
During the third year of business (2018) a gross profit of $520,500 is expected. Consultation fees should be $99,000. The company will purchase $282,000 in wedding packages will and receive $423,000 for wedding package purchases from clients. After all expenses, the company anticipates a net income of $99,997 after taxes.
Note: You cannot claim equipment or capital items as an expense on your Income Statement. Instead, you have to claim allowable depreciation in the General and Administrative section of the Operating Expenses part of the Income Statement. The ForeverYours business claimed $3,300 in depreciation for each of five years beginning with the 2016 tax year.
Capital Requirements
During the first year of business the owners will invest $20,000 of their personal savings. The $20,000 will be used for equipment purchases (a used minivan and PC equipment), advertising expenses, setting up strategic alliances, setting up the office, and hiring employees.
Exit and Payback Strategy
There is no payback strategy because the owners will be using their own savings to start up ForeverYours. With the estimation of clients and income, there is no reason to foresee the business failing. Couples are always planning weddings and it seems to be more of trend for couples to have someone help arrange their weddings for them. If the owners have to exit the business, they expect that to sell ForeverYours for a profit.
Conclusion
ForeverYours is a wedding LLC consultant partnership designed to help couples enjoy the wedding of their dreams. With a target customer of upper-middle to high-income couples and more of these couples choosing to hire professional assistance to plan and direct their weddings, the company anticipates an expanding customer base through the years. ForeverYours expects to make a reasonable profit the first year and continue to increase profits each year thereafter. Within five years, ForeverYours will be a consultant firm that is able to provide its customers with a facility from which they can choose all of their wedding needs at one time.
Supporting Documents
Income Statements (3 years): 2016, 2017, and 2018
Cash Flow Statements (3 years): 2016, 2017, and 2018
Balance Sheets (3 years): 2016, 2017, and 2018
Note: The footnotes on the financial statements are provided to help you understand some of the amounts. Italicized footnotes are merely explanatory comments; you do not need to include them in your plan. However, if the footnote is NOT italicized, you may want to include appropriate explanatory comments. Please also be aware that the Cash Flow Statements in the sample business plan have been set up using tables.
ForeverYours
Income Statement
For the Year Ended December 31, 2016
Revenue
Gross Sales
Consultation Fees* $ 66,000
Wedding Packages 282,000
Less: Sale Returns & Discounts (1,000)
Net Sales 347,000
Gross Profit 347,000
Operating Expenses
Selling Expenses
Automobile Expenses 1,014
Advertising Expenses 2,400
Wedding Packages Expenses 188,000
Salaries 31,200
Commissions 1,156
Total Selling Expenses 223,770
General and Administrative Expenses
Rent Expenses 8,300
Utilities Expenses 1,200
Automobile Expenses 2,400
Insurance Expenses 1,200
Office Supplies 2,400
Wages 20,800
Payroll Taxes 4,066
Permits and Licenses 200
Telephone Expenses 1,500
Depreciation 3,300
Total G&A Expenses 45,366
Less: Total Operating Expenses (269,136)
Income before Taxes 77,864
Less: Income Tax (25%) (19,466)
Net Income after Taxes $58,398
-----------------------
*Based upon consultation level: Platinum: 4 clients @ $6,000 = $24,000; Gold: 8 clients @ $3,000 = $24,000; Silver: 12 clients @ $1,500 = $18,000
ForeverYours
Income Statement
For the Year Ended December 31, 2017
Revenue
Gross Sales
Consultation Fees* $ 82,500
Wedding Packages 352,500
Less: Sale Returns & Discounts (1,250)
Net Sales $433,750
Gross Profit 433,750
Operating Expenses
Selling Expenses
Automobile Expenses 1,521
Advertising Expenses 3,000
Wedding Packages Expenses 235,000
Salaries 32,136
Commissions 1,445
Total Selling Expenses 273,102
General and Administrative Expenses
Rent Expenses 8,300
Utilities Expenses 1,200
Automobile Expenses 2,400
Insurance Expenses 1,200
Office Supplies 3,000
Wages 21,424
Payroll Taxes 4,208
Permits and Licenses 200
Telephone Expenses 1,500
Depreciation 3,300
Total G&A Expenses 46,732
Less: Total Operating Expenses (319,834)
Income before Taxes 113,916
Less: Income Tax (25%) (28,479)
Net Income after Taxes $ 85,437
----------------------------
*Based upon consultation level: Platinum: 5 clients @ $6,000 = $30,000; Gold: 10 clients @ $3,000 = $30,000; Silver: 15 clients @ $1,500 = $22,500
ForeverYours
Income Statement
For the Year Ended December 31, 2018 *
Revenue
Gross Sales
Consultation Fees* $ 99,000
Wedding Packages 423,000
Less: Sale Returns & Discounts (1,500)
Net Sales $520,500
Gross Profit $520,500
Operating Expenses
Selling Expenses
Automobile Expenses 2,028
Advertising Expenses 3,500
Wedding Packages Expenses 282,000
Salaries 49,160
Commissions 1,734
Total Selling Expenses 338,422
General and Administrative Expenses
Rent Expenses 8,300
Utilities Expenses 1,200
Automobile Expenses 2,400
Insurance Expenses 1,200
Office Supplies 3,000
Wages 22,067
Payroll Taxes 5,582
Permits and Licenses 200
Telephone Expenses 1,500
Depreciation 3,300
Total G&A Expenses 48,749
Less: Total Operating Expenses (387,171)
Income before Taxes 133,329
Less: Income Tax (25%) (33,332)
Net Income after Taxes $ 99,997
-----------------
*You are only required to prepare two years of financial statements for your business plan.
Based upon consultation level: Platinum: 6 clients @ $6,000 = $36,000; Gold: 12 clients @ $3,000 = $36,000; Silver: 18 clients @ $1,500 = $27,000
ForeverYours
Cash Flow Statement
For the Year Ended December 31, 2016
|
Operating Activities |
|||||
|
|
Net Sales to Customers |
$347,000 |
|
||
|
|
Accounts Receivable from Customers 2016 |
(0) |
|
||
|
|
Payments for Total Expenses |
(269,136) |
|
||
|
|
Add Depreciation Expenses Taken |
3,300 |
|
||
|
|
Add Accounts Payable for Current Year |
0 |
|
||
|
|
Payments for 2015 Income Taxes |
(0) |
|
||
|
|
Payments for 2016 Income Taxes |
(19,466) |
|
||
|
|
Net Cash Flows from Operating Activities |
|
61,698 |
||
|
|
|
|
|
|
|
|
Investing Activities |
|||||
|
|
Proceeds from Sale of Property/Plant/Equipment |
0 |
|
||
|
|
Purchased Property/Plant/Equipment* |
(16,500) |
|
||
|
|
Net Cash Flows from Investing Activities |
|
(16,500) |
||
|
|
|
|
|
|
|
|
Financing Activities |
|||||
|
|
Owner Investment (cash only) |
20,000 |
|
||
|
|
Owner Withdrawals |
(0) |
|
||
|
|
Repayment of Long-term Debt |
(0) |
|
||
|
|
Net Cash Flows from Financing Activities |
|
20,000 |
||
|
|
|
|
|
|
|
|
Changes in Cash Balance |
|||||
|
|
Net Change in Cash for Current Year |
|
65,198 |
||
|
|
Add: Beginning Cash Balance |
|
0 |
||
|
|
|
|
|
||
|
|
Ending Cash Balance |
|
$65,198 |
-------------------------------
*Purchased a used minivan for $15,000 and PC equipment for $1,500. The business will depreciate the $16,500 cost over five years at $3,300 per year.
ForeverYours
Cash Flow Statement
For the Year Ended December 31, 2017
|
Operating Activities |
|||||
|
|
Net Sales to Customers |
$433,750 |
|
||
|
|
Accounts Receivable from Customers 2017 |
(0) |
|
||
|
|
Payments for Total Expenses |
(319,834) |
|
||
|
|
Add Depreciation Expenses Taken |
3,300 |
|
||
|
|
Add Accounts Payable for Current Year |
0 |
|
||
|
|
Payments for 2016 Income Taxes |
(0) |
|
||
|
|
Payments for 2017 Income Taxes |
(28,479) |
|
||
|
|
Net Cash Flows from Operating Activities |
|
88,737 |
||
|
|
|
|
|
|
|
|
Investing Activities |
|||||
|
|
Proceeds from Sale of Property/Plant/Equipment |
0 |
|
||
|
|
Purchased Property/Plant/Equipment |
(0) |
|
||
|
|
Net Cash Flows from Investing Activities |
|
0 |
||
|
|
|
|
|
|
|
|
Financing Activities |
|||||
|
|
Owner Investment (cash only) |
0 |
|
||
|
|
Owner Withdrawals |
(0) |
|
||
|
|
Repayment of Long-term Debt |
(0) |
|
||
|
|
Net Cash Flows from Financing Activities |
|
0 |
||
|
|
|
|
|
|
|
|
Changes in Cash Balance |
|||||
|
|
Net Change in Cash for Current Year |
|
88,737 |
||
|
|
Add: Beginning Cash Balance |
|
65,198 |
||
|
|
|
|
|
||
|
|
Ending Cash Balance |
|
$153,935 |
ForeverYours
Cash Flow Statement
For the Year Ended December 31, 2018 *
|
Operating Activities |
|||||
|
|
Net Sales to Customers |
$520,500 |
|
||
|
|
Accounts Receivable from Customers 2018 |
(0) |
|
||
|
|
Payments for Total Expenses |
(387,171) |
|
||
|
|
Add Depreciation Expenses Taken |
3,300 |
|
||
|
|
Add Accounts Payable for Current Year |
0 |
|
||
|
|
Payments for 2017 Income Taxes |
(0) |
|
||
|
|
Payments for 2018 Income Taxes |
(33,332) |
|
||
|
|
Net Cash Flows from Operating Activities |
|
103, 297 |
||
|
|
|
|
|
|
|
|
Investing Activities |
|||||
|
|
Proceeds from Sale of Property/Plant/Equipment |
0 |
|
||
|
|
Purchased Property/Plant/Equipment |
(0) |
|
||
|
|
Net Cash Flows from Investing Activities |
|
0 |
||
|
|
|
|
|
|
|
|
Financing Activities |
|||||
|
|
Owner Investment (cash only-none this year) |
0 |
|
||
|
|
Owner Withdrawals |
(20,000) |
|
||
|
|
Repayment of Long-term Debt |
(0) |
|
||
|
|
Net Cash Flows from Financing Activities |
|
(20,000) |
||
|
|
|
|
|
|
|
|
Changes in Cash Balance |
|||||
|
|
Net Change in Cash for Current Year |
|
83,297 |
||
|
|
Add: Beginning Cash Balance |
|
153,935 |
||
|
|
|
|
|
||
|
|
Ending Cash Balance |
|
$237,232 |
*You are only required to prepare two years of financial statements for your business plan.
ForeverYours
Balance Sheet
As of December 31, 2016
Assets
Current Assets
Cash and Equivalents $65,198
Accounts Receivable 0
Total Current Assets 65,198
Long-term Assets
Property, Plant and Equipment * 16,500
Less Accumulated Depreciation (3,300)
Other Assets 0
Total Long-term Assets 13,200
Total Assets $78,398
Liabilities and Owner’s Equity
Current Liabilities
Accounts Payable 0
Employment Taxes Payable 0
Notes Payable 0
Total Current Liabilities 0
Long-term Liabilities
Long-term Debt 0
Other Liabilities 0
Total Long-term Liabilities 0
Total Liabilities 0
Owner’s Equity
Owner Capital (1/1/2016) 0
Owner Capital Paid in 2016 20,000
Net Income after Taxes for the Year 58,398
Less Owner Withdrawals (0)
Total Owners’ Equity 78,398
Total Liabilities and Owners’ Equity $78,398
-------------------------------
*Purchased a used minivan for $15,000 and PC equipment for $1,500. The business will depreciate the $16,500 cost over five years at $3,300 per year.
ForeverYours
Balance Sheet
As of December 31, 2017
Assets
Current Assets
Cash and Equivalents $153,935
Accounts Receivable 0
Total Current Assets 153,935
Long-term Assets
Property, Plant and Equipment 16,500
Less Accumulated Depreciation * (6,600)
Other Assets 0
Total Long-term Assets 9,900
Total Assets $163,835
Liabilities and Owner’s Equity
Current Liabilities
Accounts Payable 0
Employment Taxes Payable 0
Notes Payable 0
Total Current Liabilities 0
Long-term Liabilities
Long-term Debt 0
Other Liabilities 0
Total Long-term Liabilities 0
Total Liabilities 0
Owner’s Equity
Owner Capital (1/1/2017) 78,398
Owner Capital Paid in 2017 0
Net Income after Taxes for the Year 85,437
Less Owner Withdrawals (0)
Total Owners’ Equity 163,835
Total Liabilities and Owners’ Equity $163,835
-------------------------------
*The $6,600 of Accumulated Depreciation includes $3,300 from 2016 and another $3,300 for 2017.
ForeverYours
Balance Sheet
As of December 31, 2018 *
Assets
Current Assets
Cash and Equivalents $237,232
Accounts Receivable 0
Total Current Assets 237,232
Long-term Assets
Property, Plant and Equipment 16,500
Less Accumulated Depreciation (9,900)
Other Assets 0
Total Long-term Assets 6,600
Total Assets $243,832
Liabilities and Owner’s Equity
Current Liabilities
Accounts Payable 0
Employment Taxes Payable 0
Notes Payable 0
Total Current Liabilities 0
Long-term Liabilities
Long-term Debt 0
Other Liabilities 0
Total Long-term Liabilities 0
Total Liabilities 0
Owner’s Equity
Owner Capital (1/1/2018) 163,835
Owner Capital Paid in 2018 0
Net Income after Taxes for the Year 99,997
Less Owner Withdrawals (20,000)
Total Owners’ Equity 243,832
Total Liabilities and Owners’ Equity $243,832
*You are only required to prepare two years of financial statements for your business plan.
Dorothy O. Gale, Owner & Co-Founder
200 Yellow Brick Road, Suite 250
Emerald City, KS 67217
Phone: (316) 555-FYWC (3992)
Fax: (316) 555-3994
Email: [email protected]
Website: www.ForeverYours.weddings.com
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