Assumptions
In the assumption sheet, we are going to show where we have gathered the numbers throughout our financial plan. The assumptions are:
We have $100,000 that we invested into the company
With a few partners working together, and working hard to save money for 2 years prior to the opening of the business. Having 5 partners, each member would need to save $20,000 in 2 years.
We take a bank loan of $100,000
It is well known that banks are more willing to give you a loan if you already have money. Looking at a few banks, CIBC seems to have a great loaning policy and would more than likely offer us more than $100,000.
We make an average of $82,195.83 per month
Although the average is $82,195.83 this number can vary drastically depending on the busy and slow seasons. With a low of $40,500, and a high of $128,000. The most revenue made is in the summer months when there is lots of traffic and lots of opportunity to gain customer interest. The lowest revenue made would be in the winter months (post-holiday season)
4.2 Sources and Application of Funds
SOURCES OF FUNDS
Amount ($)
Equity
$100,000
Loans/debt
$100,000
Total Sources of Funds
APPLICATION OF FUNDS
$200,000
General Start-up Costs
Organizational Costs
$50,000
Prepaid Expenses
$20,000
Opening Inventory/Office Supplies
$30,000
Total
$100,000
Leasehold Improvements (note: see Step 8)
$10,000
Equipment Costs
$49,100
Cash Reserve Fund
$40,900
Total Application Of Funds
$200,000
4.4 Opening Balance Sheet
Opening Balance Sheet 2015
ASSETS
Current Assets
$
$
$
Cash & marketable securities
40,900
Accounts receivable
-
Inventory/office supplies
30,000
Prepaid expenses
20,000
Other current assets
-
Total Current Assets
90,900
Fixed Assets
Equipment/furniture/fixtures
49,100
Leasehold improvements
10,000
Land/buildings
-
Auto/truck
-
Other fixed assets
-
Total Fixed Assets
59,100
Other Assets
Organizational fees (legal, accounting etc.)
50,000
Total Other Assets
50,000
TOTAL ASSETS
200,000
LIABILITIES
Current Liabilities (due within the next 12 months)
Long term loans (current portion)
4,000
Short-term loans
-
Accounts payable
-
Other current liabilities
17.300
Total Current Liabilities
21,300
Long term Liabilities
Long term loans (minus current portion)
53,569
Mortgages and liens payable
25,131
Loans from shareholders (if applicable)
-
Other long term debt obligations
-
Total Long Term Liabilities
78,700
TOTAL LIABILITIES
100,000
EQUITY
Cash - owners capital (if a proprietorship or partnership) - shares outstanding (if a corporation)
-
-
General Start - up (organizational costs etc.)
100,000
Equipment/material/labour (provide details)
-
TOTAL EQUITY
100,000
TOTAL LIABILITIES AND EQUITY
200,000
4.5 Pro forma Cash Flow
Twelve Month Cash Flow Template Awatchs
4.6 Projected Income Statement
Projected Income Statement Awatchs—
Sales (Revenue) 533,000
Cost of Goods Sold Opening inventory 30,000 (plus) purchases 35,500 Subtotal 65,500 (minus) closing inventory 30,000 (equals) cost of materials 35,500
Total Cost of Goods Sold 35,500
Gross Profit 497,500
Operating Expenses Rent 36,000 Utilities 26,500