Essay on Financial Plan

Submitted By Dante-Kazama
Words: 880
Pages: 4

4.1
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