Cash Flow Complete section 6.3 of your business plan outline
Cash Flow Complete section 6.3 of your business plan outline
| Pre-Startup
EST. |
Year 1 | Year 2 | Year 3 | Total Item
EST. |
|
| Cash on Hand | |||||
| CASH RECEIPTS | |||||
| Cash Sales | $180,000 | $195,950 | $330,749 | $371,400 | $1,078,099 |
| Collections from CR Accounts | $0 | $0 | $0 | $0 | $0 |
| Loan/Cash Injection | $0 | $0 | $0 | $0 | $0 |
| TOTAL CASH RECEIPTS | $180,000 | $195,950 | $330,749 | $371,400 | $1,078,099 |
| TOTAL CASH AVAILABLE | $180,000 | $195,950 | $330,749 | $371,400 | $1,078,099 |
CASH PAID OUT |
|||||
| Purchases | $3,200 | $3,500 | $4,000 | $4,000 | $14,700 |
| Gross Wages | $130,600 | $129,600 | $267,500 | $303,500 | $831,200 |
| Outside Services | $5,000 | $4,000 | $6,560 | $5,450 | $21,010 |
| Supplies | $1,250 | $1,750 | $2,000 | $4,500 | $9,500 |
| Repairs & Maintenance | $4,730 | $3,730 | $4,120 | $4,570 | $17,150 |
| Advertising | $6,000 | $7,000 | $6,500 | $6,550 | $26,050 |
| Car, Delivery & Travel | $3,300 | $2,300 | $2,470 | $3,000 | $11,070 |
| Accounting & Legal | $2,300 | $1,300 | $1,300 | $1,300 | $6,200 |
| Rent | $0 | $0 | $0 | $0 | $0 |
| Telephone | $3,500 | $3,000 | $3,500 | $3,230 | $13,230 |
| Utilities | $2,300 | $1,300 | $1,300 | $1,300 | $6,200 |
| Insurance | $2,700 | $2,500 | $2,500 | $2,500 | $10,200 |
| Taxes (Real Estate, etc.) | $0 | $0 | $2,540 | $2,470 | $5,010 |
| Interest | $0 | $0 | $0 | $0 | $0 |
| Other Expenses | $0 | $0 | $0 | $0 | $0 |
| SUBTOTAL | $164,880 | $159,980 | $301,750 | $339,900 | $966,510 |
| Loan Principal Payment | $0 | $0 | $0 | $0 | $0 |
| Capital Purchase | $0 | $0 | $0 | $0 | $0 |
| Other Startup Costs | $0 | $0 | $0 | $0 | $0 |
| Reserve and/or Escrow | $0 | $0 | $0 | $0 | $0 |
| Others Withdrawal | $900 | $2,00 | $1,130 | $1,300 | $3,530 |
| TOTAL CASH PAID OUT | $165,780 | $161,980 | $302,880 | $341,200 | $971,840 |
| CASH POSITION | 14,220 | $33,970 | $27,869 | $30,200 | $106,259 |
| CASH BALANCE | $10,000 | $43,970 | $71,839 | $102,039 | $227,848 |
6.3 Balance Sheet
| Assets | Start Date: | End Date: | |
CURRENT ASSETS |
Year 1 | Year 2 | Year 3 |
| Cash in Bank | $43,970 | $71,839 | $102,039 |
| Accounts Receivable | $0 | $0 | $0 |
| Inventory | $500 | $689 | $750 |
| Prepaid Expenses | $4,500 | $4,500 | $4,500 |
| Other Current Assets | $10,000 | $10,000 | $10,000 |
| TOTAL CURRENT ASSETS | $58,970 | $87,028 | $117,289 |
|
|
|||
| Machinery & Equipment | $4,700 | $5,600 | $6,000 |
| Furniture & Fixtures | $2,000 | $4,000 | $4,500 |
| Leaseholder Improvements | $3,400 | $3,400 | $3,400 |
| Land & Buildings | $68,000 | $76,000 | $84,000 |
| Other Fixed Assets | $2,300 | $2,000 | $2,100 |
| TOTAL FIXED ASSETS
(net of depreciation) |
$80,400 | $91,000 | $100,000 |
|
|
|||
| Intangibles | $200 | $550 | $600 |
| Deposits | $450 | $700 | $1,000 |
| Other | $0 | $0 | $0 |
| TOTAL OTHER ASSETS | $650 | $1,250 | $1,600 |
| TOTAL ASSETS | $81,050 | $92,250 | $101,600 |
| Liabilities & Equity | |||
| CURRENT LIABILITIES | |||
| Accounts Payable | $3,600 | $3,450 | $3,000 |
| Interest Payable | $0 | $0 | $0 |
| Taxes Payable | $2,300 | $2,780 | $3,200 |
| Notes, Short Term (due in 12 months) | $0 | $0 | $0 |
| Current Part, Long-Term Debt | $0 | $0 | $0 |
| TOTAL CURRENT LIABILITIES | $5,900 | $6,230 | $6,200 |
|
|
|||
| Bank Loans Payable | $20,000 | $27,000 | $45,000 |
| Notes Payable to Stockholders | $0 | $0 | $0 |
| LESS: Short-Term Portion | $0 | $0 | $0 |
| Other Long-Term Debt | $0 | $0 | $0 |
| TOTAL LONG-TERM DEBT | $20,000 | $27,000 | $45,000 |
| TOTAL LIABILITIES | |||
|
OWNER’S EQUITY |
|||
| Invested Capital | $12,000 | $12,000 | $12,000 |
| Retained Earnings | ($3,800) | ($2,400) | $6,700 |
| TOTAL OWNERS EQUITY | $8,200 | $9,600 | $18,700 |
|
|
|||
| TOTAL LIABILITIES & EQUITY | $34,100 | $42,830 | $69,900 |
Customers
6.4 Break-Even Analysis
| DIRECT COSTS | Fixed Costs ($) | Variable Costs (%) |
| Cost of Goods Sold | $17,511 | |
| Inventory | $1,939 | |
| Raw Materials | $0 | |
| Direct Labor | $700,600 | |
| INDIRECT COSTS | ||
| Salaries | $16,010 | |
| Supplies | $8,250 | |
| Repairs & Maintenance | $12,420 | |
| Advertising | $20,050 | |
| Car, Delivery & Travel | $7,770 | |
| Rent | $0 | |
| Telephone | $9,730 | |
| Utilities | $3,900 | |
| Insurance | $7,500 | |
| Taxes | $5010 | |
| Interest | $0 | |
| Depreciation | $2,820 | |
| Other Costs | $0 | |
| Total Fixed Costs | $87,149 | |
| Total Variable Costs | $726,361 | |
| BREAK-EVEN SALES LEVEL: | $174,298 |
6.5 Financial Assumptions
6.5.2 Assumptions for Cash Flow Analysis
We will ensure we have sufficient cash on hand to meet our payment obligations and unexpected needs of cash. Also, we will focus on creating sufficient cash reserves for contingencies. We will ensure that the excess cash as projected will not remain idle. Our management will invest excess cash in government securities or time deposits.
6.5.3 Assumptions for Balance Sheet
We expect to experience a healthy growth and financial position. Our team does not project any financial crisis as long as we attain our objectives.
6.5.4 Assumptions for Break-Even Analysis
Revenue break-even $174,298
Assumptions:
Average percentage variable cost 50%
Estimated fixed cost $87,149
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