Pro FOrma for Jinkies Restaurant

assignment_10.1_worksheet.xls

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EXAMPLE Assumptions


EXAMPLE					EXAMPLE	Critical Assumptions
					1	Owner has start up capital of $5,000 and bank has agreed to lend $20,000
Cash			Monthly Expenses		2	Bank has agreed to lend $20,000 for 36 months at 12% interest with payments of P&I of $664.29/month
Loan		20,000	Salary Owner	1,000	3	The company manufactures widgets at a cost of goods sold (COGS) of $30 each
Cash Equity		5,000	Part Time Help - Starting in mo 4	500	4	The company can sell all the widgets it produces for $50 each
Total Cash		25,000	Payroll Expense x Salary	20%	5	The owner will be the sole employee for the first 3 months and then a part time assitant will be hired in month 4
			Outside Services	10	6	The owner will draw $1,000 salary per month and the assistant will be paid $500 per month
Capital Purchases			Supplies	25	7	Machinery will be purchased to manufacturer the widgets for $15,000
Machinery		15,000	Repairs & Maintenance	1%	8	The machinery can be depreciated on a straight line basis over 12.5 years or $100 per month
Purchases (Raw Meterial)		5,000	Advertising	2%	9	All material to produce the widgets is paid for 30 days after purchase except for the initial raw inventory purchased of $5,000
Total Cash Expenditures		20,000	Car, Delivery & Travel	50	10	The owner anticipates that it will take at least 6 months to get the machinery to work efficiently with unit sales being
			Acct - Beginning in month 2	20		50, 60, 65, 75, 90, 100, 150, 250, 275, 350, 450 and 500 respectively for the first 12 months of operation
Accounts Receivable			Rent	250	11	Sales are expected to be 50% cash (or within the first 30 days), 30% in the next 30 days and 20% in the 3rd 30 day period
Within 1st 30 days		50%	Telephone	50	12	Ongoing monthly expenses are expected to be owner's salary of $1,000, Part time help $500/month starting in month 4, Payroll
Within 2nd 30 days		30%	Utilities	100		expense of 20% of salaries & wages, Outside services of $10, Supllies of $25, Repairs & Maintenance of1% of sales, Car,
Within 3rd 30 days		20%	Insurance	50		delivery & travel of $50, Advertising of 2% of sales, Accounting Exp of $20 beginning in month 2, Rent of $250, Telephone &
			Real Estate Taxes	- 0		FAX of $50, Utilities of $100, and Miscellaneous expense of $25, respectively.
			Miscellaneous	25	13	Start up expenses include legal fees of $500
COGS					14	The business is in a 15% tax bracket on all profits
Labor & Materials		60%			15	Taxes accrue for 90 days and are paid at the end of that period
Material Paid for within 30 days
Start Up Expenses
Acct / Legal		500
Depreciation
Straight Line
	years	12.5
	months	150
	15,000 / 150 months	$ 100
Month 12 is the clearing month for income taxes

YOUR Assumptions

YOUR

Critical Assumptions

Cash

Monthly Expenses

Loan

Salary Owner

Cash Equity

Part Time Help - Starting in mo 4

Total Cash

Payroll Expense x Salary

Outside Services

Capital Purchases

Supplies

Machinery

Repairs & Maintenance

Purchases (Raw Meterial)

Advertising

Total Cash Expenditures

Car, Delivery & Travel

Acct - Beginning in month 2

Rent

Accounts Receivable

Telephone

Within 1st 30 days

Utilities

Within 2nd 30 days

Insurance

Within 3rd 30 days

Real Estate Taxes

Miscellaneous

COGS

Labor & Materials

Material Paid for within 60 days

Start Up Expenses

Acct / Legal

Depreciation

Straight Line

years

months

Month 12 is the clearing month for income taxes

EXAMPLE Statements


					Loan Information
				Loan 1	Loan 2	Loan 3	Loan 4
	SOURCE OF LOAN			ABC Bank
	AMOUNT			$ 20,000	0	0	0
	ANNUAL INTEREST RATE			12.00%	10.00%	8.75%	12.00%
	TERMS IN YEARS			3	0	10	5
	MONTHLY PAYMENT			$664.29	$0.00	$0.00	$0.00
			Apr-11	May-11	Jun-11	Jul-11	Aug-11	Sep-11	Oct-11	Nov-11	Dec-11	Jan-12	Feb-12	Mar-12	Total
	Units		50	60	65	75	90	100	150	250	275	350	450	500	2415
	Value / Unit		$ 50	$ 50	$ 50	$ 50	$ 50	$ 50	$ 50	$ 50	$ 50	$ 50	$ 50	$ 50
			$ 2,500	$ 3,000	$ 3,250	$ 3,750	$ 4,500	$ 5,000	$ 7,500	$ 12,500	$ 13,750	$ 17,500	$ 22,500	$ 25,000	$ 120,750
		Cash Collection
	%of sales collected in cash or within 30 days						50.00%
	% of accounts receivable collected between 31 and 60 days						30.00%
	% of accounts receivable collected between 61 and 90 days						20.00%
	% of accounts receivable collected between 91 and 120 days						0.00%
	% of accounts receivable collected between 121 and 150 days						0.00%
	% of accounts receivable collected between 151 and 180 days						0.00%
	% of accounts receivable collected between 181 and 210 days						0.00%
	Dollar Sales in the month of			40798.0	5,000
	Dollar Sales in the month of			40768.0	4,500
	Dollar Sales in the month of			40738.0	3,750
	Dollar Sales in the month of			40708.0	3,250
	Dollar Sales in the month of			40678.0	3,000
	Dollar Sales in the month of			40648.0	2,500
CLIENT NAME:				XYZ Speciality DBA Widgets R Us				XYZ Specialty has prepared the accompanying financial information as of March 24, 2011 from information
FINANCIAL STATEMENT:				Pro Forma Income Statement				communicated by management. We are not licensed by the State of South Dakota to practice public accounting
DATE PREPARED:				24-Mar-11				and can therefore give no opinion or assurance on these statements.
					40662.0	40692.0	40722.0	40752.0	40782.0	40812.0	40842.0	40872.0	40902.0	40932.0	40962.0	40992.0	TOTALS
	TOTAL REVENUE				$ 2,500	$ 3,000	$ 3,250	$ 3,750	$ 4,500	$ 5,000	$ 7,500	$ 12,500	$ 13,750	$ 17,500	$ 22,500	$ 25,000	120,750	100.00%
	Cost of Goods Sold				1,500	1,800	1,950	2,250	2,700	3,000	4,500	7,500	8,250	10,500	13,500	15,000	72,450	60.00%
	GROSS PROFIT				1000	1200	1300	1500	1800	2000	3000	5000	5500	7000	9000	10000	48,300	40.00%
		Employee Payroll			0	0	0	500	500	500	500	500	500	500	500	500	4,500	3.73%
		Owner Salary			1000	1000	1000	1000	1000	1000	1000	1000	1000	1000	1000	1000	12,000	9.94%
		Payroll Taxes			200	200	200	300	300	300	300	300	300	300	300	300	3,300	2.73%
	TOTAL SALARIES AND TAXES				1200	1200	1200	1800	1800	1800	1800	1800	1800	1800	1800	1800	19,800	16.40%
	EXPENSES:
		Outside Services			10	10	10	10	10	10	10	10	10	10	10	10	120	0.10%
		Supplies			25	25	25	25	25	25	25	25	25	25	25	25	300	0.25%
		Repairs & Maintenance			25	30	33	38	45	50	75	125	138	175	225	250	1207.5	1.00%
		Advertising			50	60	65	75	90	100	150	250	275	350	450	500	2415	2.00%
		Car, Delivery & Travel			50	50	50	50	50	50	50	50	50	50	50	50	600	0.50%
		Accounting & Legal			500	20	20	20	20	20	20	20	20	20	20	20	720	0.60%
		Rent			250	250	250	250	250	250	250	250	250	250	250	250	3000	2.48%
		Telephone			50	50	50	50	50	50	50	50	50	50	50	50	600	0.50%
		Utilities			100	100	100	100	100	100	100	100	100	100	100	100	1200	0.99%
		Insurance			50	50	50	50	50	50	50	50	50	50	50	50	600	0.50%
		Taxes (Real Estate)			0	0	0	0	0	0	0	0	0	0	0	0	0	0.00%
		Interest - Loan 1			200	195.36	190.67	185.93	181.15	176.32	171.44	166.51	161.53	156.50	151.43	146.30	2,083	1.73%
		Interest - Loan 2			0	0	0	0	0	0	0	0	0	0	0	0	0	0.00%
		Interest - Loan 3			0	0	0	0	0	0	0	0	0	0	0	0	0	0.00%
		Interest - Loan 4			0	0	0	0	0	0	0	0	0	0	0	0	0	0.00%
		Depreciation			100	100	100	100	100	100	100	100	100	100	100	100	1200	0.99%
		Miscellaneous			25	25	25	25	25	25	25	25	25	25	25	25	300	0.25%
	TOTAL EXPENSES				2,635	2,165	2,168	2,778	2,796	2,806	2,876	3,022	3,054	3,162	3,306	3,376	34,146	28.28%
	NET PROFIT BEFORE TAXES				(1,635)	(965)	(868)	(1,278)	(996)	(806)	124	1,978	2,446	3,838	5,694	6,624	14,154	11.72%
		Running Net Profit before Taxes				(2,600)	(3,469)	(4,747)	(5,743)	(6,549)	(6,426)	(4,447)	(2,001)	1,837	7,531	14,154
	INCOME TAX (RATE =		15.00%		0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	276	854	994	2,123	1.76%
	NET INCOME				(1,635)	(965)	(868)	(1,278)	(996)	(806)	124	1,978	2,446	3,563	4,840	5,630	12,031	9.96%
				XYZ Speciality DBA Widgets R Us				XYZ Specialty has prepared the accompanying financial information as of March 24, 2011 from information
FINANCIAL STATEMENT:				Pro Forma Cash Flow				communicated by management. We are not licensed by the State of South Dakota to practice public accounting
DATE PREPARED:				24-Mar-11				and can therefore give no opinion or assurance on these statements.
	BUDGET YEAR				40662.0	40692.0	40722.0	40752.0	40782.0	40812.0	40842.0	40872.0	40902.0	40932.0	40962.0	40992.0	TOTAL
	CASH RECEIPTS
		Cash Sales			1,250	1,500	1,625	1,875	2,250	2,500	3,750	6,250	6,875	8,750	11,250	12,500	60,375
		Collections from Credit			- 0	750	1,400	1,575	1,775	2,100	2,400	3,250	5,250	6,625	8,000	10,250	43,375
		Loan Injection			20,000	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	20,000
	TOTAL CASH RECEIVED				$21,250	$2,250	$3,025	$3,450	$4,025	$4,600	$6,150	$9,500	$12,125	$15,375	$19,250	$22,750	123,750
	CASH PAID OUT
		Purchases			5,000	1,500	1,800	1,950	2,250	2,700	3,000	4,500	7,500	8,250	10,500	13,500	62,450
		Salaries			1000	1000	1000	1500	1500	1500	1500	1500	1500	1500	1500	1500	16500
		Payroll Expenses			200	200	200	300	300	300	300	300	300	300	300	300	3300
		Outside Services			10	10	10	10	10	10	10	10	10	10	10	10	120
		Supplies			25	25	25	25	25	25	25	25	25	25	25	25	300
		Repairs & Maintenance			25	30	33	38	45	50	75	125	138	175	225	250	1207.5
		Advertising			50	60	65	75	90	100	150	250	275	350	450	500	2415
		Car, Delivery & Travel			50	50	50	50	50	50	50	50	50	50	50	50	600
		Accounting & Legal			500	20	20	20	20	20	20	20	20	20	20	20	720
		Rent			250	250	250	250	250	250	250	250	250	250	250	250	3000
		Telephone			50	50	50	50	50	50	50	50	50	50	50	50	600
		Utilities			100	100	100	100	100	100	100	100	100	100	100	100	1200
		Insurance			50	50	50	50	50	50	50	50	50	50	50	50
		Taxes (Real Estate)			0	0	0	0	0	0	0	0	0	0	0	0	0
		Interest - Loan 1			200	195.36	190.67	185.93	181.15	176.32	171.44	166.51	161.53	156.50	151.43	146.30	2,083
		Interest - Loan 2			0	0	0	0	0	0	0	0	0	0	0	0	0
		Interest - Loan 3			0	0	0	0	0	0	0	0	0	0	0	0	0
		Interest - Loan 4			0	0	0	0	0	0	0	0	0	0	0	0	0
		Depreciation			0	0	0	0	0	0	0	0	0	0	0	0	0
		Miscellaneous			25	25	25	25	25	25	25	25	25	25	25	25	300
		Subtotal			$7,535	$3,565	$3,868	$4,628	$4,946	$5,406	$5,776	$7,422	$10,454	$11,312	$13,706	$16,776	95,396
		Principal Pmt - Loan 1			$464.29	468.93	473.62	478.35	483.14	487.97	492.85	497.78	502.76	507.78	512.86	517.99	5,888.31
		Principal Pmt - Loan 2			0	0	0	0	0	0	0	0	0	0	0	0	0
		Principal Pmt - Loan 3			0	0	0	0	0	0	0	0	0	0	0	0	0
		Principal Pmt - Loan 4			0	0	0	0	0	0	0	0	0	0	0	0	0
		Capital Purchases			$15,000	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	15000
		Income Taxes			$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$2,123	2123
		Owner's Withdrawal			$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	0
		TOTAL CASH PAID OUT			$22,999	$4,034	$4,342	$5,107	$5,429	$5,894	$6,269	$7,919	$10,957	$11,819	$14,219	$19,417	118,407
		CHANGE IN CASH			($1,749)	($1,784)	($1,317)	($1,657)	($1,404)	($1,294)	($119)	$1,581	$1,168	$3,556	$5,031	$3,333	/
		Beginning Balance			$5,000	$3,251	$1,466	$150	($1,507)	($2,911)	($4,206)	($4,325)	($2,744)	($1,576)	$1,980	$7,010	/
		Ending Balance			$3,251	$1,466	$150	($1,507)	($2,911)	($4,206)	($4,325)	($2,744)	($1,576)	$1,980	$7,010	$10,343	/
				XYZ Speciality DBA Widgets R Us			XYZ Specialty has prepared the accompanying financial information as of March 24, 2011 from information
FINANCIAL STATEMENT:				Pro Forma Balance sheet			communicated by management. We are not licensed by the State of South Dakota to practice public accounting
DATE PREPARED:				24-Mar-11			and can therefore give no opinion or assurance on these statements.
Current Assets			40630.0		40662.0	40692.0	40722.0	40752.0	40782.0	40812.0	40842.0	40872.0	40902.0	40932.0	40962.0	40992.0
	Cash		25,000		$3,251	$1,466	$150	($1,507)	($2,911)	($4,206)	($4,325)	($2,744)	($1,576)	$1,980	$7,010	$10,343
	Accounts Receivable		- 0		1,250	$ 2,000	$ 2,225	$ 2,525	$ 3,000	$ 3,400	$ 4,750	$ 7,750	$ 9,375	$ 11,500	$ 14,750	$ 17,000
	Inventory		- 0		5,000	5000	5000	5000	5000	5000	5000	5000	5000	5000	5000	5000
	Other		- 0		0	0	0	0	0	0	0	0	0	0	0	0
		Total Current Assets	25,000		9,501	8,466	7,375	6,018	5,089	4,194	5,425	10,006	12,799	18,480	26,760	32,343
Fixed Assets
	Fixed Assets		- 0		$15,000	15000	15000	15000	15000	15000	15000	15000	15000	15000	15000	15000
	Accumulated Depreciation		- 0		-100	-200	-300	-400	-500	-600	-700	-800	-900	-1000	-1100	-1200
	Other		- 0		0	0	0	0	0	0	0	0	0	0	0	0
		Net Fixed Assets	- 0		14,900	14,800	14,700	14,600	14,500	14,400	14,300	14,200	14,100	14,000	13,900	13,800
	TOTAL ASSETS		25,000		24,401	23,266	22,075	20,618	19,589	18,594	19,725	24,206	26,899	32,480	40,660	46,143
LIABILITIES
	Accounts Payable		- 0		1,500	1,800	1,950	2,250	2,700	3,000	4,500	7,500	8,250	10,500	13,500	15,000
	Notes Payable		- 0		0	0	0	0	0	0	0	0	0	0	0	0
	Other - Accruals		- 0		0	0	0	0	0	0	- 0	- 0	0	276	1,130	0
		Total Current Liabilities	- 0		1,500	1,800	1,950	2,250	2,700	3,000	4,500	7,500	8,250	10,776	14,630	15,000
	Long Term Loan - Bank		20,000		19,536	19,067	18,593	18,115	17,632	17,144	16,651	16,153	15,650	15,143	14,630	14,112
	Long Term Loan - Other		- 0		- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
	TOTAL LIABILITIES		20,000		21,036	20,867	20,543	20,365	20,332	20,144	21,151	23,653	23,900	25,918	29,259	29,112
	OWNERS EQUITY
		Owner's Net Worth	5,000		3,365	2,400	1,531	253	(743)	(1,549)	(1,426)	553	2,999	6,562	11,401	17,031
	TOTAL LIAB & NET WORTH		25,000		24,401	23,266	22,075	20,618	19,589	18,594	19,725	24,206	26,899	32,480	40,660	46,143
					40662.0	40692.0	40722.0	40752.0	40782.0	40812.0	40842.0	40872.0	40902.0	40932.0	40962.0	40992.0	41022.0	41052.0
Calculation of Accts Rcvb				Sales	$ 2,500	$ 3,000	$ 3,250	$ 3,750	$ 4,500	$ 5,000	$ 7,500	$ 12,500	$ 13,750	$ 17,500	$ 22,500	$ 25,000
		Cash Received	50%	0 -30	$ 1,250	$ 1,500	$ 1,625	$ 1,875	$ 2,250	$ 2,500	$ 3,750	$ 6,250	$ 6,875	$ 8,750	$ 11,250	$ 12,500
			30%	31-60		$ 750	$ 900	$ 975	$ 1,125	$ 1,350	$ 1,500	$ 2,250	$ 3,750	$ 4,125	$ 5,250	$ 6,750	$ 7,500
			20%	61-90			$ 500	$ 600	$ 650	$ 750	$ 900	$ 1,000	$ 1,500	$ 2,500	$ 2,750	$ 3,500	$ 4,500	$ 5,000
					$ 1,250	$ 2,250	$ 3,025	$ 3,450	$ 4,025	$ 4,600	$ 6,150	$ 9,500	$ 12,125	$ 15,375	$ 19,250	$ 22,750	$ 12,000	$ 5,000

YOUR Statements

Loan Information

Loan 1

Loan 2

SOURCE OF LOAN

AMOUNT

ANNUAL INTEREST RATE

TERMS IN YEARS

MONTHLY PAYMENT

$0.00

Sales

Jan-18

Feb-18

Mar-18

Apr-18

May-18

Jun-18

Jul-18

Aug-18

Sep-18

Oct-18

Nov-18

Dec-18

2018 Total

Units

Value / Unit

Total Sales

$ - 0

Cash Collection

%of sales collected in cash or within 30 days

% of accounts receivable collected between 31 and 60 days

% of accounts receivable collected between 61 and 90 days

% of accounts receivable collected between 91 and 120 days

% of accounts receivable collected between 121 and 150 days

% of accounts receivable collected between 151 and 180 days

% of accounts receivable collected between 181 and 210 days

Dollar Sales in the month of

43101.0

Dollar Sales in the month of

43132.0

Dollar Sales in the month of

43160.0

Dollar Sales in the month of

43191.0

Dollar Sales in the month of

43221.0

Dollar Sales in the month of

43252.0

CLIENT NAME:

Your New Business

FINANCIAL STATEMENT:

Pro Forma Income Statement

DATE PREPARED:

43101.0

43132.0

43160.0

43191.0

43221.0

43252.0

43282.0

43313.0

43344.0

43374.0

43405.0

43435.0

TOTALS

TOTAL REVENUE

Cost of Goods Sold

GROSS PROFIT

Employee Payroll

Owner Salary

Payroll Taxes

TOTAL SALARIES AND TAXES

EXPENSES:

Outside Services

Supplies

Repairs & Maintenance

Advertising

Car, Delivery & Travel

Accounting & Legal

Rent

Telephone

Utilities

Insurance

Taxes (Real Estate)

Interest - Loan 1

Interest - Loan 2

Interest - Loan 3

Interest - Loan 4

Depreciation

Miscellaneous

TOTAL EXPENSES

NET PROFIT BEFORE TAXES

INCOME TAX (RATE =

15.00%

NET INCOME

Your New Business

FINANCIAL STATEMENT:

Pro Forma Cash Flow

DATE PREPARED:

BUDGET YEAR

43101.0

43132.0

43160.0

43191.0

43221.0

43252.0

43282.0

43313.0

43344.0

43374.0

43405.0

43435.0

TOTAL

CASH RECEIPTS

Cash Sales

- 0

Collections from Credit

- 0

Loan Injection

TOTAL CASH RECEIVED

CASH PAID OUT

Purchases

Salaries

Payroll Expenses

Outside Services

Supplies

Repairs & Maintenance

Advertising

Car, Delivery & Travel

Accounting & Legal

Rent

Telephone

Utilities

Insurance

Taxes (Real Estate)

Interest - Loan 1

Interest - Loan 2

Interest - Loan 3

Interest - Loan 4

Depreciation

Miscellaneous

Subtotal

Principal Pmt - Loan 1

Principal Pmt - Loan 2

Principal Pmt - Loan 3

Principal Pmt - Loan 4

Capital Purchases

Income Taxes

Owner's Withdrawal

TOTAL CASH PAID OUT

CHANGE IN CASH

Beginning Balance

Ending Balance

Your New Business

FINANCIAL STATEMENT:

Pro Forma Balance sheet

DATE PREPARED:

Current Assets

43070.0

43101.0

43132.0

43160.0

43191.0

43221.0

43252.0

43282.0

43313.0

43344.0

43374.0

43405.0

43435.0

Cash

Accounts Receivable

- 0

Inventory

- 0

Other

- 0

Total Current Assets

Fixed Assets

- 0

Accumulated Depreciation

- 0

Other

- 0

Net Fixed Assets

- 0

TOTAL ASSETS

LIABILITIES

Accounts Payable

- 0

Notes Payable

- 0

Other - Accruals

- 0

Total Current Liabilities

- 0

Long Term Loan - Bank

Long Term Loan - Other

- 0

TOTAL LIABILITIES

OWNERS EQUITY

Owner's Net Worth

TOTAL LIAB & NET WORTH

EXAMPLE Ratios


Return on Sales (ROS) =	Net Income	=	12,031	=	9.96%
	Sales		120,750
Current Ratio =	Current Assets	=	32,343	=	2.16
	Current Liabilities		15,000
Debt Ratio =	Total Debt	=	29,112	=	63.09%
	Total Assets		46,143

YOUR Ratios


			Total $2018	Total % 2018
Return on Sales =	Net Income	=
	Sales
Current Ratio =	Current Assets	=
	Current Liabilities
Debt Ratio =	Total Debt	=
	Total Assets