Financial Projection Model

This spreadsheet walks you through the process of developing an integrated set of financial projections.

To use this model, simply complete any information asked for found in the color yellow.
Example: Fill in boxes that look like this -

A number found in the color green is optional information that you can complete.
Example: Check these assumptions -

Otherwise, any information found in black type is automatically calculated for you.
Although the cells that are calculated are locked (or protected), you can turn off this protection to modify the sheets.
To do this, select "Tools" from the menu bar at the top of the screen. Then select, "Protection."
Finally, select "Unprotect Sheet" and you will be able to edit any labels or formulas.

Before you begin, we need some information about your business to best customize your financial statements.
Please enter the name of your business in the box below:

ABC

The first six worksheets in this workbook are steps you will need to complete. They are titled:
1. Required Start-Up Funds
2. Salaries and Wages
3. Fixed Operating Expenses
4. Projected Sales Forecast (2 sheets)
5. Cash Receipts and Disbursements
The sixth step titled, "Beginning Balance Sheet" is for existing businesses only.

Begin by clicking on the tabs below

ABC 25-Aug-20
Required Start-Up Funds

Required Start-Up Funds Amount Totals Depreciation Notes

Fixed Assets
Real Estate $ 600,000
Buildings 1,500,000 20.00 years
Leasehold Improvements - 7.00 years
Equipment 3,895,000 7.00 years
Furniture and Fixtures 350,000 5.00 years
Vehicles 2,500,000 5.00 years
Other Fixed Assets 500,000 5.00 years
Total Fixed Assets 9,345,000

Operating Capital
Pre-Opening Salaries and Wages 1,555,000
Prepaid Insurance Premiums 250,000
Beginning Inventory 100,000
Legal and Accounting Fees 100,000
Rent Deposits -
Utility Deposits 100,000
Supplies 300,000
Advertising and Promotions 500,000
Licenses 350,000
Other Initial Start-Up Costs 400,000
Working Capital (Cash On Hand) 2,500,000
Total Operating Capital 6,155,000

Total Required Funds $ 15,500,000

Sources of Funding Amount Totals Loan Rate Term in Months Monthly Payments
Owner's Cash Injection 3.23% 500,000
Outside Investors 96.77% 15,000,000
Additional Loans or Debt
Commercial Loan -10.84% (1,680,000) 9.00% 84.00 $27,029.65
Commercial Mortgage 10.84% 1,680,000 9.00% 240.00 $15,115.40
Total Sources of Funding 100.00% $ 15,500,000 $42,145.05
ABC ###
Salaries and Wages

Salaries and Related Expenses # Assumptions Wage Base Monthly Year One Year Two Year Three

Percent Change 3.00% 3.00%

Salaries and Wages

Owner's Compensation 1 $ 35,000 420,000 432,600 445,578
Salaries 3 25,000 300,000 309,000 318,270
Wages
Full-Time Employees 5 7,800 93,600 96,408 99,300
Estimated Hours Per Week 40.00
Estimated Rate Per Hour $ 9.00
Part-Time Employees 2 1,560 18,720 19,282 19,860
Estimated Hours Per Week 20.00
Estimated Rate Per Hour $ 9.00
Independent Contractors - - - -
Total Salaries and Wages 11 69,360 832,320 857,290 883,008

Payroll Taxes and Benefits

Social Security 6.20% $ 102,000 4,300 51,604 53,152 54,747
Medicare 1.45% 1,006 12,069 12,431 12,804
Federal Unemployment Tax (FUTA) 0.80% $ 7,000 51 616 616 616
State Unemployment Tax (SUTA) 2.70% $ 7,000 173 2,079 2,079 2,079
Employee Pension Programs 10.00% 6,936 83,232 83,232 83,232
Worker's Compensation 0.00% - - - -
Employee Health Insurance 0.00% - - - -
Other Employee Benefit Programs 0.00% - - - -
Total Payroll Taxes and Benefits 12,467 149,599 151,510 153,477

Total Salaries and Related Expenses 81,827 981,919 1,008,799 1,036,485

ABC ###
Fixed Operating Expenses

Fixed Operating Expenses Monthly Year One Year Two Year Three Notes

Percent Change 3.00% 3.00%

Expenses
Advertising $ 100,000 1,200,000 1,236,000 1,273,080
Car and Truck Expenses 50,000 600,000 618,000 636,540
Commissions and Fees 10,000 120,000 123,600 127,308
Contract Labor - - - -
Credit Card and Bank Charges 15,000 180,000 185,400 190,962
Customer Discounts and Refunds - - - -
Dues and Subscriptions 5,000 60,000 61,800 63,654
Entertainment 50,000 600,000 618,000 636,540
Insurance (Liability and Property) 20,833 250,000 257,500 265,225
Internet 29,167 350,000 360,500 371,315
Legal and Professional Fees 10,000 120,000 123,600 127,308
Office Expenses 50,000 600,000 618,000 636,540
Postage and Delivery - - - -
Rent (on business property) - - - -
Rent of Vehicles and Equipment 20,000 240,000 247,200 254,616
Repairs and Maintenance 50,000 600,000 618,000 636,540
Supplies 20,000 240,000 247,200 254,616
Telephone and Communications 30,000 360,000 370,800 381,924
Travel 50,000 600,000 618,000 636,540
Utilities 25,000 300,000 309,000 318,270
Total Expenses 535,000 6,420,000 6,612,600 6,810,978

Other Expenses
Depreciation 108,452 1,301,429 1,301,429 1,301,429
Interest
Commercial Loan 11,990 143,876 126,945 108,427
Commercial Mortgage 12,494 149,923 146,972 143,744
Line of Credit - - - -
Total Other Expenses 132,936 1,595,227 1,575,346 1,553,599

Total Fixed Operating Expenses 667,936 8,015,227 8,187,946 8,364,577

ABC 25-Aug-20
Projected Sales Forecast

Products and Services Assumptions % Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Totals

Product/Service A
Price Per Unit $ 9,000.00 100.00%
Variable Cost Per Unit $ 4,500.00 50.00%
Gross Margin Per Unit $ 4,500.00 50.00%
Projected Unit Sales
Seasonality Factor 3.16% 3.95% 5.56% 6.06% 6.75% 7.33% 8.43% 10.25% 10.54% 11.86% 12.92% 13.18% 100.00%
Year One 120 150 211 230 256 278 320 389 400 450 490 500 3,794
Year Two Growth 10.00% 132 165 232 253 282 306 352 428 440 495 539 550 4,173
Year Three Growth 10.00% 145 182 255 278 310 336 387 471 484 545 593 605 4,591
Fixed Expense Allocation 50.00%

Projected Revenue $ 34,146,000

Variable Costs 17,073,000
Gross Margin 17,073,000
Fixed Expenses 4,007,614
Profit 13,065,386 38.26%

Breakeven Sales Revenu $ 8,015,227.50

Breakeven Sales Units 891

Product/Service B
Price Per Unit $ - 100.00%
Variable Cost Per Unit $ - 0.00%
Gross Margin Per Unit $ - 0.00%
Projected Unit Sales
Seasonality Factor 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Year One - - - - - - - - - - - - -
Year Two Growth 10.00% - - - - - - - - - - - - -
Year Three Growth 10.00% - - - - - - - - - - - - -
Fixed Expense Allocation 16.67%

Projected Revenue $ -
Variable Costs -
Gross Margin -
Fixed Expenses 1,335,871
Profit (1,335,871) 0.00%

Breakeven Sales Revenu $ -

Breakeven Sales Units -
ABC 25-Aug-20
Projected Sales Forecast - Page 2

Products and Services Assumptions % Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Totals

Product/Service C
Price Per Unit $ - 100.00%
Variable Cost Per Unit $ - 0.00%
Gross Margin Per Unit $ - 0.00%
Projected Unit Sales
Seasonality Factor 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Year One - - - - - - - - - - - - -
Year Two Growth 10.00% - - - - - - - - - - - - -
Year Three Growth 10.00% - - - - - - - - - - - - -
Fixed Expense Allocation 16.67%

Projected Revenue $ -
Variable Costs -
Gross Margin -
Fixed Expenses 1,335,871
Profit (1,335,871) 0.00%

Breakeven Sales Revenu $ -

Breakeven Sales Units -

Product/Service D
Price Per Unit $ - 100.00%
Variable Cost Per Unit $ - 0.00%
Gross Margin Per Unit $ - 0.00%
Projected Unit Sales
Seasonality Factor 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Year One - - - - - - - - - - - - -
Year Two Growth 10.00% - - - - - - - - - - - - -
Year Three Growth 10.00% - - - - - - - - - - - - -
Fixed Expense Allocation 16.67%

Projected Revenue $ -
Variable Costs -
Gross Margin -
Fixed Expenses 1,335,871
Profit (1,335,871) 0.00%

Breakeven Sales Revenu $ -

Breakeven Sales Units -
ABC ###
Cash Receipts and Disbursements

Accounts Receivable Collections

Percent of Collections
0 to 30 days 100.00%
31 to 60 days 0.00%
More than 60 days 0.00%
Total Collections Percentage 100.00%

Accounts Payable Disbursements

Number of Days to Pay Suppliers
0 to 30 days 100.00%
31 to 60 days 0.00%
More than 60 days 0.00%
Total Disbursements Percentage 100.00%

Line of Credit Assumptions

Desired Minimum Cash Balance $ -
Line of Credit Interest Rate 9.00%

Income Tax Assumptions

Effective Income Tax Rate 0.00%
1,051,667 87,639
Amortization of Start-Up Expenses 133,333 11,111
Amortization Period in Years 3.00 98,750
ABC
Balance Sheet (For Existing Businesses Only)

12/31/2006 %

Assets
Current Assets
Cash -
Accounts Receivable -
Inventory -
Prepaid Expenses -
Other Current -
Total Current Assets -

Fixed Assets
Real Estate -
Buildings -
Leasehold Improvements -
Equipment -
Furniture and Fixtures -
Vehicles -
Other Fixed Assets -
Total Fixed Assets -

Less: Accumulated Depreciation -

Total Assets -

Liabilities and Owner's Equity

Liabilities
Accounts Payable -
Notes Payable -
Mortgage Payable -
Line of Credit Balance -
Total Liabilities -

Owner's Equity
Common Stock -
Retained Earnings -
Dividends Dispersed -
Total Owner's Equity -

Total Liabilities and Owner's Equity -

ABC
Balance Sheet (For Existing Businesses Only)

12/31/2006 %
Statement Balances
ABC
Projected Income Statement - Year One

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Totals

Income
Product/Service A 1,080,000 1,350,000 1,899,000 2,070,000 2,304,000 2,502,000 2,880,000 3,501,000 3,600,000 4,050,000 4,410,000 4,500,000 34,146,000
Product/Service B - - - - - - - - - - - - -
-
-
Total Income 1,080,000 1,350,000 1,899,000 2,070,000 2,304,000 2,502,000 2,880,000 3,501,000 3,600,000 4,050,000 4,410,000 4,500,000 34,146,000

Cost of Sales
Product/Service A 540,000 675,000 949,500 1,035,000 1,152,000 1,251,000 1,440,000 1,750,500 1,800,000 2,025,000 2,205,000 2,250,000 17,073,000
Product/Service B - - - - - - - - - - - - -
-
-
Total Cost of Sales 540,000 675,000 949,500 1,035,000 1,152,000 1,251,000 1,440,000 1,750,500 1,800,000 2,025,000 2,205,000 2,250,000 17,073,000

Gross Margin 540,000 675,000 949,500 1,035,000 1,152,000 1,251,000 1,440,000 1,750,500 1,800,000 2,025,000 2,205,000 2,250,000 17,073,000

Total Salary and Wages 81,827 81,827 81,827 81,827 81,827 81,827 81,827 81,827 81,827 81,827 81,827 81,827 981,919

Fixed Business Expenses

Advertising 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 1,200,000
Car and Truck Expenses 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600,000
Commissions and Fees 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000
Contract Labor - - - - - - - - - - - - -
Credit Card and Bank Charges 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 180,000
Customer Discounts and Refund - - - - - - - - - - - - -
Dues and Subscriptions 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Entertainment 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600,000
Insurance (Liability and Property) 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 250,000
Internet 29,167 29,167 29,167 29,167 29,167 29,167 29,167 29,167 29,167 29,167 29,167 29,167 350,000
Legal and Professional Fees 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000
Office Expenses 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600,000
Postage and Delivery - - - - - - - - - - - - -
Rent (on business property) - - - - - - - - - - - - -
Rent of Vehicles and Equipment 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 240,000
Repairs and Maintenance 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600,000
Supplies 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 240,000
Telephone and Communications 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 360,000
Travel 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600,000
Utilities 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000
Total Fixed Business Expenses 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 6,420,000

Total Other Expenses 232,402 232,275 232,147 232,018 231,888 231,757 231,625 231,492 231,359 231,224 231,088 230,951 2,780,227
ABC
Projected Income Statement - Year One

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Totals
Net Income (309,229) (174,102) 100,526 186,155 303,285 402,416 591,548 902,181 951,815 1,176,950 1,357,086 1,402,223 6,890,853
ABC
Projected Cash Flow Statement - Year One

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Totals

Beginning Cash Balance 2,500,000 2,381,028 2,397,057 2,687,585 3,063,613 3,556,642 4,148,670 4,929,698 6,021,227 7,162,255 8,528,283 10,074,312

Cash Inflows
Income from Sales 1,080,000 1,350,000 1,899,000 2,070,000 2,304,000 2,502,000 2,880,000 3,501,000 3,600,000 4,050,000 4,410,000 4,500,000 34,146,000
Accounts Receivable - - - - - - - - - - - - -
Total Cash Inflows 1,080,000 1,350,000 1,899,000 2,070,000 2,304,000 2,502,000 2,880,000 3,501,000 3,600,000 4,050,000 4,410,000 4,500,000 34,146,000

Cash Outflows
Investing Activities
New Capital Purchases - - - - - - - - - - - - -
Inventory Purchases - - - - - - - - - - - - -
Cost of Sales 540,000 675,000 949,500 1,035,000 1,152,000 1,251,000 1,440,000 1,750,500 1,800,000 2,025,000 2,205,000 2,250,000 17,073,000
Operating Activities
Salaries and Wages 81,827 81,827 81,827 81,827 81,827 81,827 81,827 81,827 81,827 81,827 81,827 81,827 981,919
Fixed Business Expenses 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 6,420,000
Taxes - - - - - - - - - - - - -
Financing Activities -
Loan Payments 42,145 42,145 42,145 42,145 42,145 42,145 42,145 42,145 42,145 42,145 42,145 42,145 505,741
Line of Credit Interest - - - - - - - - - - - - -
Line of Credit Repayments - - - - - - - - - - - - -
Dividends Paid - - - - - - - - - - - - -
Total Cash Outflows 1,198,972 1,333,972 1,608,472 1,693,972 1,810,972 1,909,972 2,098,972 2,409,472 2,458,972 2,683,972 2,863,972 2,908,972 24,980,660

Cash Flow (118,972) 16,028 290,528 376,028 493,028 592,028 781,028 1,091,528 1,141,028 1,366,028 1,546,028 1,591,028 9,165,340

Operating Cash Balance 2,381,028 2,397,057 2,687,585 3,063,613 3,556,642 4,148,670 4,929,698 6,021,227 7,162,255 8,528,283 10,074,312 11,665,340

Line of Credit Drawdowns - - - - - - - - - - - - -

Ending Cash Balance 2,381,028 2,397,057 2,687,585 3,063,613 3,556,642 4,148,670 4,929,698 6,021,227 7,162,255 8,528,283 10,074,312 11,665,340

Line of Credit Balance - - - - - - - - - - - -

ABC
Balance Sheet - Year One

Base Period End of Year One

Assets
Current Assets
Cash 2,500,000 11,665,340
Accounts Receivable - -
Inventory 100,000 100,000
Prepaid Expenses 3,155,000 2,103,333
Other Current 400,000 266,667
Total Current Assets 6,155,000 14,135,340

Fixed Assets
Real Estate 600,000 600,000
Buildings 1,500,000 1,500,000
Leasehold Improvements - -
Equipment 3,895,000 3,895,000
Furniture and Fixtures 350,000 350,000
Vehicles 2,500,000 2,500,000
Other Fixed Assets 500,000 500,000
Total Fixed Assets 9,345,000 9,345,000

Less: Accumulated Depreciation - 1,301,429

Total Assets 15,500,000 22,178,911

Liabilities and Owner's Equity

Liabilities
Accounts Payable - -
Notes Payable (1,680,000) (1,860,480)
Mortgage Payable 1,680,000 1,648,538
Line of Credit Balance - -
Total Liabilities - (211,942)

Owner's Equity
Common Stock 15,500,000 15,500,000
Retained Earnings - 6,890,853
Dividends Dispersed - -
Total Owner's Equity 15,500,000 22,390,853

Total Liabilities and Owner's Equity 15,500,000 22,178,911

ABC
Balance Sheet - Year One

Base Period End of Year One

Statement Balances Statement Balances
ABC
Year End Summary

Year One % Year Two % Year Three %

Income
Product/Service A 34,146,000 37,560,600 41,316,660
Product/Service B - - -
- - -
- - -
Total Income 34,146,000 100.00% 37,560,600 100.00% 41,316,660 100.00%

Cost of Sales
Product/Service A 17,073,000 18,780,300 20,658,330
Product/Service B - - -
- - -
- - -
Total Cost of Sales 17,073,000 50.00% 18,780,300 50.00% 20,658,330 50.00%

Gross Margin 17,073,000 50.00% 18,780,300 50.00% 20,658,330 50.00%

Total Salary and Wages 981,919 2.88% 1,008,799 2.69% 1,036,485 2.51%

Fixed Business Expenses

Advertising 1,200,000 1,236,000 1,273,080
Car and Truck Expenses 600,000 618,000 636,540
Commissions and Fees 120,000 123,600 127,308
Contract Labor - - -
Credit Card and Bank Charges 180,000 185,400 190,962
Customer Discounts and Refunds - - -
Dues and Subscriptions 60,000 61,800 63,654
Entertainment 600,000 618,000 636,540
Insurance (Liability and Property) 250,000 257,500 265,225
Internet 350,000 360,500 371,315
Legal and Professional Fees 120,000 123,600 127,308
Office Expenses 600,000 618,000 636,540
Postage and Delivery - - -
Rent (on business property) - - -
Rent of Vehicles and Equipment 240,000 247,200 254,616
Repairs and Maintenance 600,000 618,000 636,540
Supplies 240,000 247,200 254,616
Telephone and Communications 360,000 370,800 381,924
Travel 600,000 618,000 636,540
Utilities 300,000 309,000 318,270
Total Fixed Business Expenses 6,420,000 18.80% 6,612,600 17.61% 6,810,978 16.48%

Total Other Expenses 2,780,227 8.14% 2,760,346 7.35% 2,738,599 6.63%

ABC
Year End Summary

Year One % Year Two % Year Three %

Net Income 6,890,853 20.18% 8,398,555 22.36% 10,072,267 24.38%
ABC
Projected Income Statement - Year Two

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Totals

Income
Product/Service A 1,188,000 1,485,000 2,088,900 2,277,000 2,534,400 2,752,200 3,168,000 3,851,100 3,960,000 4,455,000 4,851,000 4,950,000 37,560,600
Product/Service B - - - - - - - - - - - - -
-
-
Total Income 1,188,000 1,485,000 2,088,900 2,277,000 2,534,400 2,752,200 3,168,000 3,851,100 3,960,000 4,455,000 4,851,000 4,950,000 37,560,600

Cost of Sales
Product/Service A 594,000 742,500 1,044,450 1,138,500 1,267,200 1,376,100 1,584,000 1,925,550 1,980,000 2,227,500 2,425,500 2,475,000 18,780,300
Product/Service B - - - - - - - - - - - - -
-
-
Total Cost of Sales 594,000 742,500 1,044,450 1,138,500 1,267,200 1,376,100 1,584,000 1,925,550 1,980,000 2,227,500 2,425,500 2,475,000 18,780,300

Gross Margin 594,000 742,500 1,044,450 1,138,500 1,267,200 1,376,100 1,584,000 1,925,550 1,980,000 2,227,500 2,425,500 2,475,000 18,780,300

Total Salary and Wages 84,067 84,067 84,067 84,067 84,067 84,067 84,067 84,067 84,067 84,067 84,067 84,067 1,008,799

Fixed Business Expenses

Advertising 103,000 103,000 103,000 103,000 103,000 103,000 103,000 103,000 103,000 103,000 103,000 103,000 1,236,000
Car and Truck Expenses 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 618,000
Commissions and Fees 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 123,600
Contract Labor - - - - - - - - - - - - -
Credit Card and Bank Charges 15,450 15,450 15,450 15,450 15,450 15,450 15,450 15,450 15,450 15,450 15,450 15,450 185,400
Customer Discounts and Refund - - - - - - - - - - - - -
Dues and Subscriptions 5,150 5,150 5,150 5,150 5,150 5,150 5,150 5,150 5,150 5,150 5,150 5,150 61,800
Entertainment 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 618,000
Insurance (Liability and Property) 21,458 21,458 21,458 21,458 21,458 21,458 21,458 21,458 21,458 21,458 21,458 21,458 257,500
Internet 30,042 30,042 30,042 30,042 30,042 30,042 30,042 30,042 30,042 30,042 30,042 30,042 360,500
Legal and Professional Fees 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 123,600
Office Expenses 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 618,000
Postage and Delivery - - - - - - - - - - - - -
Rent (on business property) - - - - - - - - - - - - -
Rent of Vehicles and Equipment 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 247,200
Repairs and Maintenance 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 618,000
Supplies 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 247,200
Telephone and Communications 30,900 30,900 30,900 30,900 30,900 30,900 30,900 30,900 30,900 30,900 30,900 30,900 370,800
Travel 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 618,000
Utilities 25,750 25,750 25,750 25,750 25,750 25,750 25,750 25,750 25,750 25,750 25,750 25,750 309,000
Total Fixed Business Expenses 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 6,612,600

Total Other Expenses 230,813 230,674 230,534 230,393 230,250 230,107 229,963 229,818 229,671 229,524 229,375 229,225 2,760,346
ABC
Projected Income Statement - Year Two

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Totals
Net Income (271,929) (123,290) 178,800 272,991 401,833 510,876 718,920 1,060,616 1,115,212 1,362,860 1,561,009 1,610,658 8,398,555
ABC
Projected Cash Flow Statement - Year Two

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Totals

Beginning Cash Balance 11,665,340 11,582,078 11,647,317 12,014,505 12,475,743 13,065,682 13,764,520 14,671,258 15,919,547 17,222,285 18,772,523 20,520,762

Cash Inflows
Income from Sales 1,188,000 1,485,000 2,088,900 2,277,000 2,534,400 2,752,200 3,168,000 3,851,100 3,960,000 4,455,000 4,851,000 4,950,000 37,560,600
Accounts Receivable - - - - - - - - - - - - -
Total Cash Inflows 1,188,000 1,485,000 2,088,900 2,277,000 2,534,400 2,752,200 3,168,000 3,851,100 3,960,000 4,455,000 4,851,000 4,950,000 37,560,600

Cash Outflows
Investing Activities
New Capital Purchases - - - - - - - - - - - - -
Inventory Purchases - - - - - - - - - - - - -
Cost of Sales 594,000 742,500 1,044,450 1,138,500 1,267,200 1,376,100 1,584,000 1,925,550 1,980,000 2,227,500 2,425,500 2,475,000 18,780,300
Operating Activities
Salaries and Wages 84,067 84,067 84,067 84,067 84,067 84,067 84,067 84,067 84,067 84,067 84,067 84,067 1,008,799
Fixed Business Expenses 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 6,612,600
Taxes - - - - - - - - - - - - -
Financing Activities -
Loan Payments 42,145 42,145 42,145 42,145 42,145 42,145 42,145 42,145 42,145 42,145 42,145 42,145 505,741
Line of Credit Interest - - - - - - - - - - - - -
Line of Credit Repayments - - - - - - - - - - - - -
Dividends Paid - - - - - - - - - - - - -
Total Cash Outflows 1,271,262 1,419,762 1,721,712 1,815,762 1,944,462 2,053,362 2,261,262 2,602,812 2,657,262 2,904,762 3,102,762 3,152,262 26,907,440

Cash Flow (83,262) 65,238 367,188 461,238 589,938 698,838 906,738 1,248,288 1,302,738 1,550,238 1,748,238 1,797,738 10,653,160

Operating Cash Balance 11,582,078 11,647,317 12,014,505 12,475,743 13,065,682 13,764,520 14,671,258 15,919,547 17,222,285 18,772,523 20,520,762 22,318,500

Line of Credit Drawdowns - - - - - - - - - - - - -

Ending Cash Balance 11,582,078 11,647,317 12,014,505 12,475,743 13,065,682 13,764,520 14,671,258 15,919,547 17,222,285 18,772,523 20,520,762 22,318,500

Line of Credit Balance - - - - - - - - - - - -

ABC
Balance Sheet - Year Two

End of Year One End of Year Two

Assets
Current Assets
Cash 11,665,340 22,318,500
Accounts Receivable - -
Inventory 100,000 100,000
Prepaid Expenses 2,103,333 1,051,667
Other Current 266,667 133,333
Total Current Assets 14,135,340 23,603,500

Fixed Assets
Real Estate 600,000 600,000
Buildings 1,500,000 1,500,000
Leasehold Improvements - -
Equipment 3,895,000 3,895,000
Furniture and Fixtures 350,000 350,000
Vehicles 2,500,000 2,500,000
Other Fixed Assets 500,000 500,000
Total Fixed Assets 9,345,000 9,345,000

Less: Accumulated Depreciation 1,301,429 2,602,857

Total Assets 22,178,911 30,345,642

Liabilities and Owner's Equity

Liabilities
Accounts Payable - -
Notes Payable (1,860,480) (2,057,891)
Mortgage Payable 1,648,538 1,614,126
Line of Credit Balance - -
Total Liabilities (211,942) (443,765)

Owner's Equity
Common Stock 15,500,000 15,500,000
Retained Earnings 6,890,853 15,289,408
Dividends Dispersed - -
Total Owner's Equity 22,390,853 30,789,408

Total Liabilities and Owner's Equity 22,178,911 30,345,642

ABC
Balance Sheet - Year Two

End of Year One End of Year Two

Statement Balances Statement Balances
ABC
Projected Income Statement - Year Three

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Totals

Income
Product/Service A 1,306,800 1,633,500 2,297,790 2,504,700 2,787,840 3,027,420 3,484,800 4,236,210 4,356,000 4,900,500 5,336,100 5,445,000 41,316,660
Product/Service B - - - - - - - - - - - - -
-
-
Total Income 1,306,800 1,633,500 2,297,790 2,504,700 2,787,840 3,027,420 3,484,800 4,236,210 4,356,000 4,900,500 5,336,100 5,445,000 41,316,660

Cost of Sales
Product/Service A 653,400 816,750 1,148,895 1,252,350 1,393,920 1,513,710 1,742,400 2,118,105 2,178,000 2,450,250 2,668,050 2,722,500 20,658,330
Product/Service B - - - - - - - - - - - - -
-
-
Total Cost of Sales 653,400 816,750 1,148,895 1,252,350 1,393,920 1,513,710 1,742,400 2,118,105 2,178,000 2,450,250 2,668,050 2,722,500 20,658,330

Gross Margin 653,400 816,750 1,148,895 1,252,350 1,393,920 1,513,710 1,742,400 2,118,105 2,178,000 2,450,250 2,668,050 2,722,500 20,658,330

Total Salary and Wages 86,374 86,374 86,374 86,374 86,374 86,374 86,374 86,374 86,374 86,374 86,374 86,374 1,036,485

Fixed Business Expenses

Advertising 106,090 106,090 106,090 106,090 106,090 106,090 106,090 106,090 106,090 106,090 106,090 106,090 1,273,080
Car and Truck Expenses 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 636,540
Commissions and Fees 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 127,308
Contract Labor - - - - - - - - - - - - -
Credit Card and Bank Charges 15,914 15,914 15,914 15,914 15,914 15,914 15,914 15,914 15,914 15,914 15,914 15,914 190,962
Customer Discounts and Refund - - - - - - - - - - - - -
Dues and Subscriptions 5,305 5,305 5,305 5,305 5,305 5,305 5,305 5,305 5,305 5,305 5,305 5,305 63,654
Entertainment 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 636,540
Insurance (Liability and Property) 22,102 22,102 22,102 22,102 22,102 22,102 22,102 22,102 22,102 22,102 22,102 22,102 265,225
Internet 30,943 30,943 30,943 30,943 30,943 30,943 30,943 30,943 30,943 30,943 30,943 30,943 371,315
Legal and Professional Fees 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 127,308
Office Expenses 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 636,540
Postage and Delivery - - - - - - - - - - - - -
Rent (on business property) - - - - - - - - - - - - -
Rent of Vehicles and Equipment 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 254,616
Repairs and Maintenance 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 636,540
Supplies 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 254,616
Telephone and Communications 31,827 31,827 31,827 31,827 31,827 31,827 31,827 31,827 31,827 31,827 31,827 31,827 381,924
Travel 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 636,540
Utilities 26,523 26,523 26,523 26,523 26,523 26,523 26,523 26,523 26,523 26,523 26,523 26,523 318,270
Total Fixed Business Expenses 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 6,810,978

Total Other Expenses 229,074 228,922 228,769 228,615 228,459 228,302 228,145 227,986 227,825 227,664 227,501 227,337 2,738,599
ABC
Projected Income Statement - Year Three

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Totals
Net Income (229,629) (66,127) 266,171 369,780 511,506 631,452 860,300 1,236,164 1,296,219 1,568,631 1,786,593 1,841,207 10,072,267
ABC
Projected Cash Flow Statement - Year Three

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Totals

Beginning Cash Balance 22,318,500 22,275,800 22,396,449 22,849,244 23,405,494 24,103,313 24,920,923 25,967,223 27,389,227 28,871,127 30,625,277 32,597,226

Cash Inflows
Income from Sales 1,306,800 1,633,500 2,297,790 2,504,700 2,787,840 3,027,420 3,484,800 4,236,210 4,356,000 4,900,500 5,336,100 5,445,000 41,316,660
Accounts Receivable - - - - - - - - - - - - -
Total Cash Inflows 1,306,800 1,633,500 2,297,790 2,504,700 2,787,840 3,027,420 3,484,800 4,236,210 4,356,000 4,900,500 5,336,100 5,445,000 41,316,660

Cash Outflows
Investing Activities
New Capital Purchases - - - - - - - - - - - - -
Inventory Purchases - - - - - - - - - - - - -
Cost of Sales 653,400 816,750 1,148,895 1,252,350 1,393,920 1,513,710 1,742,400 2,118,105 2,178,000 2,450,250 2,668,050 2,722,500 20,658,330
Operating Activities
Salaries and Wages 86,374 86,374 86,374 86,374 86,374 86,374 86,374 86,374 86,374 86,374 86,374 86,374 1,036,485
Fixed Business Expenses 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 6,810,978
Taxes - - - - - - - - - - - - -
Financing Activities -
Loan Payments 42,145 42,145 42,145 42,145 42,145 42,145 42,145 42,145 42,145 42,145 42,145 42,145 505,741
Line of Credit Interest - - - - - - - - - - - - -
Line of Credit Repayments - - - - - - - - - - - - -
Dividends Paid - - - - - - - - - - - - -
Total Cash Outflows 1,349,500 1,512,850 1,844,995 1,948,450 2,090,020 2,209,810 2,438,500 2,814,205 2,874,100 3,146,350 3,364,150 3,418,600 29,011,534

Cash Flow (42,700) 120,650 452,795 556,250 697,820 817,610 1,046,300 1,422,005 1,481,900 1,754,150 1,971,950 2,026,400 12,305,126

Operating Cash Balance 22,275,800 22,396,449 22,849,244 23,405,494 24,103,313 24,920,923 25,967,223 27,389,227 28,871,127 30,625,277 32,597,226 34,623,626

Line of Credit Drawdowns - - - - - - - - - - - - -

Ending Cash Balance 22,275,800 22,396,449 22,849,244 23,405,494 24,103,313 24,920,923 25,967,223 27,389,227 28,871,127 30,625,277 32,597,226 34,623,626

Line of Credit Balance - - - - - - - - - - - -

ABC
Balance Sheet - Year Three

End of Year Two End of Year Three

Assets
Current Assets
Cash 22,318,500 34,623,626
Accounts Receivable - -
Inventory 100,000 100,000
Prepaid Expenses 1,051,667 (0)
Other Current 133,333 (0)
Total Current Assets 23,603,500 34,723,626

Fixed Assets
Real Estate 600,000 600,000
Buildings 1,500,000 1,500,000
Leasehold Improvements - -
Equipment 3,895,000 3,895,000
Furniture and Fixtures 350,000 350,000
Vehicles 2,500,000 2,500,000
Other Fixed Assets 500,000 500,000
Total Fixed Assets 9,345,000 9,345,000

Less: Accumulated Depreciation 2,602,857 3,904,286

Total Assets 30,345,642 40,164,340

Liabilities and Owner's Equity

Liabilities
Accounts Payable - -
Notes Payable (2,057,891) (2,273,819)
Mortgage Payable 1,614,126 1,576,485
Line of Credit Balance - -
Total Liabilities (443,765) (697,335)

Owner's Equity
Common Stock 15,500,000 15,500,000
Retained Earnings 15,289,408 25,361,675
Dividends Dispersed - -
Total Owner's Equity 30,789,408 40,861,675

Total Liabilities and Owner's Equity 30,345,642 40,164,340

ABC
Balance Sheet - Year Three

End of Year Two End of Year Three

Statement Balances Statement Balances
ABC
Financial Ratios

Ratio Year One Year Two Year Three

Liquidity
Current Ratio (66.69) (53.19) (49.79)
Quick Ratio (55.04) (50.29) (49.65)
Safety
Debt to Equity Ratio (0.01) (0.01) (0.02)
Debt to Coverage Ratio (38.65) (21.86) (16.31)
Profitability
Sales Growth - 0.10 0.10
COGS to Sales 0.50 0.50 0.50
Gross Profit Margin 0.50 0.50 0.50
SG&A to Sales 0.22 0.20 0.19
Net Profit Margin 0.20 0.22 0.24
Return on Equity 0.31 0.27 0.25
Return on Assets 0.31 0.28 0.25
Owner's Compensation to Sales 0.01 0.01 0.01
Efficiency
Days in Receivables - - -
Accounts Receivable Turnover - - -
Days in Inventory 2.11 1.92 1.74
Inventory Turnover 170.73 187.80 206.58
Sales to Total Assets 1.54 1.24 1.03
ABC
Breakeven Analysis

Breakeven Analysis Dollars Percent

Annual Sales Revenue $ 34,146,000 100.00%
Cost of Sales 17,073,000 50.00%
Gross Margin 17,073,000 50.00%

Salaries and Wages 981,919

Fixed Operating Expenses 8,015,227
Total Fixed Business Expenses 8,997,147

Breakeven Sales Calculation 8,997,147

50.00%

Breakeven Sales in Dollars $ 17,994,294

ABC
Amortization Schedule

Loan Type Assumptions Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Totals

Commercial Loan
Principal Amount $ (1,680,000)
Interest Rate 9.00%
Loan Term in Months 84.00
Monthly Payment Amou $27,029.65

Year One
Interest 12,600 12,492 12,383 12,273 12,162 12,051 11,938 11,825 11,711 11,596 11,481 11,364 143,876
Principal 14,430 14,538 14,647 14,757 14,867 14,979 15,091 15,204 15,319 15,433 15,549 15,666 180,480
Loan Balance (1,694,430) (1,708,968) (1,723,614) (1,738,371) (1,753,239) (1,768,218) (1,783,309) (1,798,513) (1,813,832) (1,829,265) (1,844,814) (1,860,480)
Year Two
Interest 11,246 11,128 11,009 10,889 10,768 10,646 10,523 10,399 10,274 10,149 10,022 9,894 126,945
Principal 15,783 15,902 16,021 16,141 16,262 16,384 16,507 16,631 16,755 16,881 17,008 17,135 197,410
Loan Balance (1,876,263) (1,892,165) (1,908,186) (1,924,327) (1,940,589) (1,956,973) (1,973,480) (1,990,111) (2,006,866) (2,023,747) (2,040,755) (2,057,891)
Year Three
Interest 9,766 9,636 9,506 9,374 9,242 9,109 8,974 8,839 8,702 8,565 8,426 8,287 108,427
Principal 17,264 17,393 17,524 17,655 17,788 17,921 18,055 18,191 18,327 18,465 18,603 18,743 215,929
Loan Balance (2,075,154) (2,092,548) (2,110,071) (2,127,727) (2,145,514) (2,163,435) (2,181,491) (2,199,681) (2,218,009) (2,236,473) (2,255,077) (2,273,819)

Commercial Mortgage
Principal Amount $ 1,680,000.00
Interest Rate 9.00%
Loan Term in Months 240.00
Monthly Payment Amou $15,115.40

Year One
Interest 12,600 12,581 12,562 12,543 12,524 12,504 12,485 12,465 12,445 12,425 12,405 12,385 149,923
Principal 2,515 2,534 2,553 2,572 2,592 2,611 2,631 2,650 2,670 2,690 2,711 2,731 31,462
Loan Balance 1,677,485 1,674,950 1,672,397 1,669,825 1,667,233 1,664,622 1,661,991 1,659,341 1,656,670 1,653,980 1,651,269 1,648,538
Year Two
Interest 12,364 12,343 12,323 12,302 12,281 12,259 12,238 12,216 12,195 12,173 12,151 12,128 146,972
Principal 2,751 2,772 2,793 2,814 2,835 2,856 2,878 2,899 2,921 2,943 2,965 2,987 34,413
Loan Balance 1,645,787 1,643,015 1,640,222 1,637,409 1,634,574 1,631,718 1,628,840 1,625,941 1,623,020 1,620,077 1,617,113 1,614,126
Year Three
Interest 12,106 12,083 12,061 12,038 12,015 11,991 11,968 11,944 11,921 11,897 11,872 11,848 143,744
Principal 3,009 3,032 3,055 3,078 3,101 3,124 3,147 3,171 3,195 3,219 3,243 3,267 37,641
Loan Balance 1,611,116 1,608,084 1,605,029 1,601,952 1,598,851 1,595,727 1,592,579 1,589,408 1,586,214 1,582,995 1,579,752 1,576,485
ABC
Financial Diagnostics

This sheet performs a few tests on your numbers to see if they seem within certain reasonable ranges.
Remember, no computer can tell whether your projections are truly well-constructed, only a human can do that.
But these tests can at least look for values that are critically out of range.

Financial Diagnostics Value Findings

General Financing Assumptions
Owner's Cash Injection into the Business 3.23% Owner's injection might be too low in relation to the amount of money needed
Cash Request as percent of Total Required Fund 16.13% Cash request seems reasonable with respect to total request

Loan Assumptions
Commercial Loan Interest rate 9.00% Interest rate seems reasonable
Commercial Loan Term in Months 84 Loan term seems within range for this type of loan

Commercial Mortgage Interest rate 9.00% Interest rate seems reasonable

Commercial Mortgage Term in Months 240.00 Loan term seems within range for this type of loan

Loan Payments as a Percent of Projected Sales 0.12% Calculated loan payments as a percent of sales seem resonable

Income Statement
Gross Margin as a Percent of Sales 50.00% Gross margin percentage seems reasonable
Owner's Compensation Lower Limit Check $ 420,000 An owner's compensation amount has been established
Owner's Compensation Upper Limit Check 6.10% Owner's compensation seems reasonable
Advertising Expense Levels as a Percent of Sale 3.51% Advertising as a percent of sales may be too low
Profitability Levels $ 6,890,853 The business is showing a profit
Profitability as a Percent of Sales 20.18% The projection may be too aggressive in stating profitability

Cash Flow Statement

Desired Operating cash Flow Levels $ - The financial projection provides the desired level of cash flow
Line of Credit Drawdowns $ - The business doesn't seem to require a line of credit
Accounts Receivable Ratio to Sales 0.00% Accounts receivable amount as a percent of sales seems reasonable

Balance Sheet
Does the Base Period Balance Sheet Balance? - The balance sheet does balance
Does the Final Balance Sheet Balance - The balance sheet does balance
Debt to Equity Ratio -0.95% The debt to equity ratio seems reasonable

Breakeven Analysis
Breakeven Levels $ 16,151,706 The sales projection exceeds the projected break-even sales level