Financial Projection Model Guide

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:
THE FOOD DOOFS CAFE
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
THE FOOD DOOFS CAFE

Required Start-Up Funds
Required Start-Up Funds

Fixed Assets
Real Estate
Buildings
Leasehold Improvements
Equipment
Furniture and Fixtures
Vehicles
Other Fixed Assets
Total Fixed Assets
Operating Capital
Pre-Opening Salaries and Wages
Prepaid Insurance Premiums
Beginning Inventory
Legal and Accounting Fees
Rent Deposits
Utility Deposits
Supplies
Advertising and Promotions
Licenses
Other Initial Start-Up Costs
Working Capital (Cash On Hand)
Total Operating Capital
Total Required Funds
Amount
$
Totals
200,000
200,000
60,000
120,000
50,000
Depreciation
20.00
7.00
7.00
5.00
5.00
5.00
630,000
100,000
10,000
50,000
50,000
840,000
50,000
15,000
100,000
1,000,000
2,215,000
$
2,845,000
Notes
years
years
years
years
years
years
Sources of Funding
Owner's Cash Injection
Outside Investors
Additional Loans or Debt
Commercial Loan
Commercial Mortgage
Amount
0.00%
0.00%
Totals
-
Loan Rate
Term in Months
Monthly Payments
100.00%
0.00%
2,845,000
-
9.00%
9.00%
84.00
240.00
$45,773.43
$0.00
Total Sources of Funding
100.00%
2,845,000
$45,773.43
9-Jul-15
THE FOOD DOOFS CAFE

Salaries and Wages
Salaries and Related Expenses
Assumptions
Wage Base
Monthly
Year One
Percent Change
Salaries and Wages
Owner's Compensation
Salaries
Wages
Full-Time Employees
Estimated Hours Per Week
Estimated Rate Per Hour
Part-Time Employees
Estimated Hours Per Week
Estimated Rate Per Hour
Independent Contractors
Total Salaries and Wages
Payroll Taxes and Benefits
Social Security
Medicare
Federal Unemployment Tax (FUTA)
State Unemployment Tax (SUTA)
Employee Pension Programs
Worker's Compensation
Employee Health Insurance
Other Employee Benefit Programs
Total Payroll Taxes and Benefits
Total Salaries and Related Expenses
Year Two
3.00%
0
0
62,400
40.00
60.00
20.00
60.00
6.20%
1.45%
0.80%
2.70%
0.00%
0.00%
0.00%
0.00%
102,000
$
$
7,000
7,000
748,800
771,264
62,400
748,800
771,264
3,869
905
28
95
4,896
46,426
10,858
336
1,134
58,753
47,818
11,183
336
1,134
60,472
67,296
807,553
831,736
9-Jul-15
Year Three
3.00%
794,402
794,402
49,253
11,519
336
1,134
62,242
856,644
THE FOOD DOOFS CAFE

Fixed Operating Expenses
Monthly
Year One
Percent Change
Expenses
Advertising
Car and Truck Expenses
Commissions and Fees
Contract Labor
Credit Card and Bank Charges
Customer Discounts and Refunds
Dues and Subscriptions
Entertainment
Insurance (Liability and Property)
Internet
Legal and Professional Fees
Office Expenses
Postage and Delivery
Rent (on business property)
Rent of Vehicles and Equipment
Repairs and Maintenance
Supplies
Telephone and Communications
Travel
Utilities
Total Expenses
Other Expenses
Depreciation
Interest
Commercial Loan
Year Two
Year Three
3.00%
3.00%
1,000
1,500
1,500
1,000
500
5,000
1,500
500
100,000
5,000
30,000
2,000
5,000
35,000
189,500
12,000
18,000
18,000
12,000
6,000
60,000
18,000
6,000
1,200,000
60,000
360,000
24,000
60,000
420,000
2,274,000
12,360
18,540
18,540
12,360
6,180
61,800
18,540
6,180
1,236,000
61,800
370,800
24,720
61,800
432,600
2,342,220
12,731
19,096
19,096
12,731
6,365
63,654
19,096
6,365
1,273,080
63,654
381,924
25,462
63,654
445,578
2,412,487
8,595
103,143
103,143
103,143
20,304
243,647
214,976
183,616
Notes
Commercial Mortgage
Line of Credit
Total Other Expenses
Total Fixed Operating Expenses
28,899
346,790
318,119
286,759
218,399
2,620,790
2,660,339
2,699,245
9-Jul-15
THE FOOD DOOFS CAFE

Projected Sales Forecast
Products and Services
Assumptions
Food
Price Per Unit
$
Variable Cost Per Unit
$
Gross Margin Per Unit
$
Projected Unit Sales
Seasonality Factor
Year One
Year Two Growth
Year Three Growth
Fixed Expense Allocation
Projected Revenue
Variable Costs
Gross Margin
Fixed Expenses
Profit
Breakeven Sales Revenu $

Breakeven Sales Units
Product/Service B
Price Per Unit
Seasonality Factor
Year One
$
$
$
400.00
5.00
395.00
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
8.33%
600
630
662
8.33%
600
630
662
8.33%
600
630
662
8.33%
600
630
662
8.33%
600
630
662
8.33%
600
630
662
8.33%
600
630
662
8.33%
600
630
662
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
100.00%
1.25%
98.75%
5.00%
5.00%
100.00%
2,880,000
36,000
2,844,000
2,620,790
223,210
Month 1
7.75%
2,653,964.06
6,635
100.00%
0.00%
0.00%
Year Two Growth

Year Three Growth
Projected Revenue
Variable Costs
Gross Margin
Fixed Expenses
Profit
10.00%
10.00%
0.00%
$

0.00%
9-Jul-15
Month 9
Month 10
Month 11
Month 12
Totals
8.33%
600
630
662
8.33%
600
630
662
8.33%
600
630
662
8.33%
600
630
662
100.00%
7,200
7,560
7,938
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
THE FOOD DOOFS CAFE

Projected Sales Forecast - Page 2
Products and Services
Assumptions
Beverage
Price Per Unit
$
$
$
Seasonality Factor
Year One
Year Two Growth
Year Three Growth
Projected Revenue
Variable Costs
Gross Margin
Fixed Expenses
Profit

Product/Service D
Price Per Unit
Seasonality Factor
Year One
$
$
$
100.00
100.00
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
8.33%
150
165
182
8.33%
150
165
182
8.33%
150
165
182
8.33%
150
165
182
8.33%
150
165
182
8.33%
150
165
182
8.33%
150
165
182
8.33%
150
165
182
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
100.00%
0.00%
100.00%
10.00%
10.00%
0.00%
180,000
180,000
180,000
Month 1
100.00%
100.00%
0.00%
0.00%
Year Two Growth

Year Three Growth
Projected Revenue
Variable Costs
Gross Margin
Fixed Expenses
Profit
10.00%
10.00%
0.00%
$

0.00%
9-Jul-15
Month 9
Month 10
Month 11
Month 12
Totals
8.33%
150
165
182
8.33%
150
165
182
8.33%
150
165
182
8.33%
150
165
182
100.00%
1,800
1,980
2,178
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
THE FOOD DOOFS CAFE

Cash Receipts and Disbursements
Accounts Receivable Collections

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

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

Desired Minimum Cash Balance
Line of Credit Interest Rate
Income Tax Assumptions
Effective Income Tax Rate
Amortization of Start-Up Expenses
Amortization Period in Years
9.00%
0.00%
388,333
3.00
32,361
32,361
9-Jul-15
THE FOOD DOOFS CAFE

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
Equipment
Vehicles
Other Fixed Assets
Total Fixed Assets
Less: Accumulated Depreciation
Total Assets
Liabilities and Owner's Equity

Liabilities
Accounts Payable
Notes Payable
Mortgage Payable
THE FOOD DOOFS CAFE

Balance Sheet (For Existing Businesses Only)
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
12/31/2006
-
Statement Balances
THE FOOD DOOFS CAFE

Projected Income Statement - Year One
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Income
Food
Product/Service B
Beverage
240,000
15,000
240,000
15,000
240,000
15,000
240,000
15,000
240,000
15,000
240,000
15,000
240,000
15,000
240,000
15,000
240,000
15,000
Total Income
255,000
255,000
255,000
255,000
255,000
255,000
255,000
255,000
255,000
Cost of Sales
Food
Product/Service B
Beverage
3,000
-
3,000
-
3,000
-
3,000
-
3,000
-
3,000
-
3,000
-
3,000
-
3,000
-
Total Cost of Sales
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
252,000
252,000
252,000
252,000
252,000
252,000
252,000
252,000
252,000
67,296
67,296
67,296
67,296
67,296
67,296
67,296
67,296
67,296
1,000
1,500
1,500
1,000
500
5,000
1,000
1,500
1,500
1,000
500
5,000
1,000
1,500
1,500
1,000
500
5,000
1,000
1,500
1,500
1,000
500
5,000
1,000
1,500
1,500
1,000
500
5,000
1,000
1,500
1,500
1,000
500
5,000
1,000
1,500
1,500
1,000
500
5,000
1,000
1,500
1,500
1,000
500
5,000
1,000
1,500
1,500
1,000
500
5,000
Gross Margin
Total Salary and Wages
Fixed Business Expenses
Advertising
Contract Labor
Entertainment
Internet
THE FOOD DOOFS CAFE

Projected Income Statement - Year One
Office Expenses
Supplies
Travel
Utilities
Total Fixed Business Expenses
Net Income
Month 1
1,500
500
100,000
5,000
30,000
2,000
5,000
35,000
189,500
Month 2
1,500
500
100,000
5,000
30,000
2,000
5,000
35,000
189,500
Month 3
1,500
500
100,000
5,000
30,000
2,000
5,000
35,000
189,500
Month 4
1,500
500
100,000
5,000
30,000
2,000
5,000
35,000
189,500
Month 5
1,500
500
100,000
5,000
30,000
2,000
5,000
35,000
189,500
Month 6
1,500
500
100,000
5,000
30,000
2,000
5,000
35,000
189,500
Month 7
1,500
500
100,000
5,000
30,000
2,000
5,000
35,000
189,500
Month 8
1,500
500
100,000
5,000
30,000
2,000
5,000
35,000
189,500
Month 9
1,500
500
100,000
5,000
30,000
2,000
5,000
35,000
189,500
62,294
62,111
61,926
61,740
61,552
61,364
61,173
60,982
60,789
(67,090)
(66,907)
(66,722)
(66,536)
(66,349)
(66,160)
(65,970)
(65,778)
(65,585)
Month 10
Month 11
Month 12
Totals
240,000
15,000
240,000
15,000
240,000
15,000
255,000
255,000
255,000
2,880,000
180,000
3,060,000
3,000
-
3,000
-
3,000
-
3,000
3,000
3,000
36,000
36,000
252,000
252,000
252,000
3,024,000
67,296
67,296
67,296
807,553
1,000
1,500
1,500
1,000
500
5,000
1,000
1,500
1,500
1,000
500
5,000
1,000
1,500
1,500
1,000
500
5,000
12,000
18,000
18,000
12,000
6,000
60,000
Month 10
1,500
500
100,000
5,000
30,000
2,000
5,000
35,000
189,500
Month 11
1,500
500
100,000
5,000
30,000
2,000
5,000
35,000
189,500
Month 12
1,500
500
100,000
5,000
30,000
2,000
5,000
35,000
189,500
Totals
18,000
6,000
1,200,000
60,000
360,000
24,000
60,000
420,000
2,274,000
60,594
60,398
60,201
735,123
(65,390)
(65,194)
(64,997)
(792,676)
THE FOOD DOOFS CAFE

Projected Cash Flow Statement - Year One
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Beginning Cash Balance
1,000,000
949,430
898,861
848,291
797,722
747,152
696,583
646,013
595,444
Cash Inflows
Income from Sales
Accounts Receivable
Total Cash Inflows
255,000
255,000
255,000
255,000
255,000
255,000
255,000
255,000
255,000
255,000
255,000
255,000
255,000
255,000
255,000
255,000
255,000
255,000
Cash Outflows
Investing Activities
New Capital Purchases
Inventory Purchases
Cost of Sales
Operating Activities
Salaries and Wages
Taxes
Financing Activities
Loan Payments
Line of Credit Interest
Line of Credit Repayments
Dividends Paid
Total Cash Outflows
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
67,296
189,500
-
67,296
189,500
-
67,296
189,500
-
67,296
189,500
-
67,296
189,500
-
67,296
189,500
-
67,296
189,500
-
67,296
189,500
-
67,296
189,500
-
45,773
305,570
45,773
305,570
45,773
305,570
45,773
305,570
45,773
305,570
45,773
305,570
45,773
305,570
45,773
305,570
45,773
305,570
Cash Flow
(50,570)
(50,570)
(50,570)
(50,570)
(50,570)
(50,570)
(50,570)
(50,570)
(50,570)
Operating Cash Balance
949,430
898,861
848,291
797,722
747,152
696,583
646,013
595,444
544,874
Line of Credit Drawdowns

Ending Cash Balance
949,430
898,861
848,291
797,722
747,152
696,583
646,013
595,444
544,874
THE FOOD DOOFS CAFE

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
544,874
494,305
443,735
255,000
255,000
255,000
255,000
255,000
255,000
3,060,000
3,060,000
3,000
3,000
3,000
36,000
67,296
189,500
-
67,296
189,500
-
67,296
189,500
-
45,773
305,570
45,773
305,570
45,773
305,570
807,553
2,274,000
549,281
3,666,834
(50,570)
(50,570)
(50,570)
(606,834)
494,305
443,735
393,166
494,305
443,735
393,166
Totals
Month 10
Month 11
Month 12
Totals
THE FOOD DOOFS CAFE

Balance Sheet - Year One
Assets
Current Assets
Cash
Accounts Receivable
Inventory
Prepaid Expenses
Other Current
Fixed Assets
Real Estate
Buildings
Equipment
Vehicles
Other Fixed Assets
Total Fixed Assets
Base Period
End of Year One
1,000,000
50,000
1,165,000
2,215,000
393,166
50,000
776,667
1,219,832
200,000
200,000
60,000
120,000
50,000
630,000
200,000
200,000
60,000
120,000
50,000
630,000
103,143
Total Assets
2,845,000
1,746,689

Liabilities
Accounts Payable
Notes Payable
Mortgage Payable
2,845,000
-
2,539,366
-
THE FOOD DOOFS CAFE

Balance Sheet - Year One

Total Liabilities
Owner's Equity
Common Stock
Retained Earnings
Dividends Dispersed
Base Period
2,845,000
2,845,000
Statement Balances
End of Year One

2,539,366
(792,676)
(792,676)
1,746,689
Statement Balances
THE FOOD DOOFS CAFE

Year End Summary
Year One
Income
Food
Product/Service B
Beverage
Total Income
Cost of Sales
Food
Product/Service B
Beverage
Total Cost of Sales
Gross Margin
Advertising
Contract Labor
Entertainment
Internet
2,880,000
180,000
3,060,000
Year Two
100.00%
3,024,000
198,000
3,222,000
100.00%
36,000
36,000
1.18%
37,800
37,800
1.17%
3,024,000
98.82%
3,184,200
98.83%
807,553
26.39%
831,736
25.81%
12,000
18,000
18,000
12,000
6,000
60,000
12,360
18,540
18,540
12,360
6,180
61,800
THE FOOD DOOFS CAFE

Year End Summary
Office Expenses
Supplies
Travel
Utilities
Net Income
Year One
18,000
6,000
1,200,000
60,000
360,000
24,000
60,000
420,000
2,274,000
74.31%
Year Two
18,540
6,180
1,236,000
61,800
370,800
24,720
61,800
432,600
2,342,220
72.69%
735,123
24.02%
707,717
21.97%
(792,676)
-25.90%
(697,473)
-21.65%
Year Three
3,175,200
217,800
3,393,000
100.00%
39,690
39,690
1.17%
3,353,310
98.83%
856,644
25.25%
12,731
19,096
19,096
12,731
6,365
63,654
Year Three
19,096
6,365
1,273,080
63,654
381,924
25,462
63,654
445,578
2,412,487
71.10%
708,568
20.88%
(624,388)
-18.40%
THE FOOD DOOFS CAFE

Projected Income Statement - Year Two
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Income
Food
Product/Service B
Beverage
252,000
16,500
252,000
16,500
252,000
16,500
252,000
16,500
252,000
16,500
252,000
16,500
252,000
16,500
252,000
16,500
252,000
16,500
Total Income
268,500
268,500
268,500
268,500
268,500
268,500
268,500
268,500
268,500
Cost of Sales
Food
Product/Service B
Beverage
3,150
-
3,150
-
3,150
-
3,150
-
3,150
-
3,150
-
3,150
-
3,150
-
3,150
-
Total Cost of Sales
3,150
3,150
3,150
3,150
3,150
3,150
3,150
3,150
3,150
265,350
265,350
265,350
265,350
265,350
265,350
265,350
265,350
265,350
69,311
69,311
69,311
69,311
69,311
69,311
69,311
69,311
69,311
1,030
1,545
1,545
1,030
515
5,150
1,030
1,545
1,545
1,030
515
5,150
1,030
1,545
1,545
1,030
515
5,150
1,030
1,545
1,545
1,030
515
5,150
1,030
1,545
1,545
1,030
515
5,150
1,030
1,545
1,545
1,030
515
5,150
1,030
1,545
1,545
1,030
515
5,150
1,030
1,545
1,545
1,030
515
5,150
1,030
1,545
1,545
1,030
515
5,150
Gross Margin
Advertising
Contract Labor
Entertainment
Internet
THE FOOD DOOFS CAFE

Projected Income Statement - Year Two
Office Expenses
Supplies
Travel
Utilities
Net Income
Month 1
1,545
515
103,000
5,150
30,900
2,060
5,150
36,050
195,185
Month 2
1,545
515
103,000
5,150
30,900
2,060
5,150
36,050
195,185
Month 3
1,545
515
103,000
5,150
30,900
2,060
5,150
36,050
195,185
Month 4
1,545
515
103,000
5,150
30,900
2,060
5,150
36,050
195,185
Month 5
1,545
515
103,000
5,150
30,900
2,060
5,150
36,050
195,185
Month 6
1,545
515
103,000
5,150
30,900
2,060
5,150
36,050
195,185
Month 7
1,545
515
103,000
5,150
30,900
2,060
5,150
36,050
195,185
Month 8
1,545
515
103,000
5,150
30,900
2,060
5,150
36,050
195,185
Month 9
1,545
515
103,000
5,150
30,900
2,060
5,150
36,050
195,185
60,002
59,801
59,599
59,396
59,191
58,984
58,776
58,566
58,355
(59,148)
(58,947)
(58,745)
(58,542)
(58,337)
(58,130)
(57,922)
(57,713)
(57,501)
Month 10
Month 11
Month 12
Totals
252,000
16,500
252,000
16,500
252,000
16,500
268,500
268,500
268,500
3,024,000
198,000
3,222,000
3,150
-
3,150
-
3,150
-
3,150
3,150
3,150
37,800
37,800
265,350
265,350
265,350
3,184,200
69,311
69,311
69,311
831,736
1,030
1,545
1,545
1,030
515
5,150
1,030
1,545
1,545
1,030
515
5,150
1,030
1,545
1,545
1,030
515
5,150
12,360
18,540
18,540
12,360
6,180
61,800
Month 10
1,545
515
103,000
5,150
30,900
2,060
5,150
36,050
195,185
Month 11
1,545
515
103,000
5,150
30,900
2,060
5,150
36,050
195,185
Month 12
1,545
515
103,000
5,150
30,900
2,060
5,150
36,050
195,185
Totals
18,540
6,180
1,236,000
61,800
370,800
24,720
61,800
432,600
2,342,220
58,226
58,349
58,473
707,717
(57,372)
(57,495)
(57,619)
(697,473)
THE FOOD DOOFS CAFE

Projected Cash Flow Statement - Year Two
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
393,166
348,246
303,326
258,406
213,487
168,567
123,647
78,728
33,808
Cash Inflows
Income from Sales
Accounts Receivable
Total Cash Inflows
268,500
268,500
268,500
268,500
268,500
268,500
268,500
268,500
268,500
268,500
268,500
268,500
268,500
268,500
268,500
268,500
268,500
268,500
Cash Outflows
Inventory Purchases
Cost of Sales
Salaries and Wages
Taxes
Loan Payments
Dividends Paid
Total Cash Outflows
3,150
3,150
3,150
3,150
3,150
3,150
3,150
3,150
3,150
69,311
195,185
-
69,311
195,185
-
69,311
195,185
-
69,311
195,185
-
69,311
195,185
-
69,311
195,185
-
69,311
195,185
-
69,311
195,185
-
69,311
195,185
-
45,773
313,420
45,773
313,420
45,773
313,420
45,773
313,420
45,773
313,420
45,773
313,420
45,773
313,420
45,773
313,420
45,773
313,420
Cash Flow
(44,920)
(44,920)
(44,920)
(44,920)
(44,920)
(44,920)
(44,920)
(44,920)
(44,920)
348,246
303,326
258,406
213,487
168,567
123,647
78,728
33,808
(11,112)

Ending Cash Balance
348,246
303,326
258,406
213,487
168,567
123,647
78,728
33,808
11,112
-
THE FOOD DOOFS CAFE

Projected Cash Flow Statement - Year Two
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
11,112
Month 10
-
Month 11
-
Month 12
Totals
268,500
268,500
268,500
268,500
268,500
268,500
3,222,000
3,222,000
3,150
3,150
3,150
37,800
69,311
195,185
-
69,311
195,185
-
69,311
195,185
-
45,773
83
313,503
45,773
421
313,841
45,773
761
314,181
831,736
2,342,220
549,281
1,265
3,762,302
(45,003)
(45,341)
(45,681)
(540,302)
(45,003)
(45,341)
(45,681)
45,003
45,341
45,681
147,136
Month 10
Month 11
Month 12
56,115
101,456
147,136
Totals
THE FOOD DOOFS CAFE

Balance Sheet - Year Two
End of Year One
End of Year Two
393,166
50,000
776,667
1,219,832
50,000
388,333
438,333
Fixed Assets
Real Estate
Buildings
Equipment
Vehicles
Other Fixed Assets
Total Fixed Assets
200,000
200,000
60,000
120,000
50,000
630,000
200,000
200,000
60,000
120,000
50,000
630,000
103,143
206,286
Total Assets
1,746,689
862,047

Liabilities
Accounts Payable
Notes Payable
Mortgage Payable
2,539,366
-
2,205,060
-
Assets
Current Assets
Cash
Accounts Receivable
Inventory
Prepaid Expenses
Other Current
THE FOOD DOOFS CAFE

Balance Sheet - Year Two

Total Liabilities
Owner's Equity
Common Stock
Retained Earnings
Dividends Dispersed
End of Year One

2,539,366
End of Year Two

147,136
2,352,197
(792,676)
(792,676)
(1,490,149)
(1,490,149)
1,746,689
862,047
Statement Balances
Statement Balances
THE FOOD DOOFS CAFE

Projected Income Statement - Year Three
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Income
Food
Product/Service B
Beverage
264,600
18,150
264,600
18,150
264,600
18,150
264,600
18,150
264,600
18,150
264,600
18,150
264,600
18,150
264,600
18,150
264,600
18,150
Total Income
282,750
282,750
282,750
282,750
282,750
282,750
282,750
282,750
282,750
Cost of Sales
Food
Product/Service B
Beverage
3,308
-
3,308
-
3,308
-
3,308
-
3,308
-
3,308
-
3,308
-
3,308
-
3,308
-
Total Cost of Sales
3,308
3,308
3,308
3,308
3,308
3,308
3,308
3,308
3,308
279,443
279,443
279,443
279,443
279,443
279,443
279,443
279,443
279,443
71,387
71,387
71,387
71,387
71,387
71,387
71,387
71,387
71,387
1,061
1,591
1,591
1,061
530
5,305
1,061
1,591
1,591
1,061
530
5,305
1,061
1,591
1,591
1,061
530
5,305
1,061
1,591
1,591
1,061
530
5,305
1,061
1,591
1,591
1,061
530
5,305
1,061
1,591
1,591
1,061
530
5,305
1,061
1,591
1,591
1,061
530
5,305
1,061
1,591
1,591
1,061
530
5,305
1,061
1,591
1,591
1,061
530
5,305
Gross Margin
Advertising
Contract Labor
Entertainment
Internet
THE FOOD DOOFS CAFE

Projected Income Statement - Year Three
Office Expenses
Supplies
Travel
Utilities
Net Income
Month 1
1,591
530
106,090
5,305
31,827
2,122
5,305
37,132
201,041
Month 2
1,591
530
106,090
5,305
31,827
2,122
5,305
37,132
201,041
Month 3
1,591
530
106,090
5,305
31,827
2,122
5,305
37,132
201,041
Month 4
1,591
530
106,090
5,305
31,827
2,122
5,305
37,132
201,041
Month 5
1,591
530
106,090
5,305
31,827
2,122
5,305
37,132
201,041
Month 6
1,591
530
106,090
5,305
31,827
2,122
5,305
37,132
201,041
Month 7
1,591
530
106,090
5,305
31,827
2,122
5,305
37,132
201,041
Month 8
1,591
530
106,090
5,305
31,827
2,122
5,305
37,132
201,041
Month 9
1,591
530
106,090
5,305
31,827
2,122
5,305
37,132
201,041
58,598
58,678
58,758
58,839
58,920
59,002
59,085
59,168
59,252
(51,583)
(51,663)
(51,743)
(51,824)
(51,905)
(51,987)
(52,070)
(52,153)
(52,237)
Month 10
Month 11
Month 12
Totals
264,600
18,150
264,600
18,150
264,600
18,150
282,750
282,750
282,750
3,175,200
217,800
3,393,000
3,308
-
3,308
-
3,308
-
3,308
3,308
3,308
39,690
39,690
279,443
279,443
279,443
3,353,310
71,387
71,387
71,387
856,644
1,061
1,591
1,591
1,061
530
5,305
1,061
1,591
1,591
1,061
530
5,305
1,061
1,591
1,591
1,061
530
5,305
12,731
19,096
19,096
12,731
6,365
63,654
Month 10
1,591
530
106,090
5,305
31,827
2,122
5,305
37,132
201,041
Month 11
1,591
530
106,090
5,305
31,827
2,122
5,305
37,132
201,041
Month 12
1,591
530
106,090
5,305
31,827
2,122
5,305
37,132
201,041
Totals
19,096
6,365
1,273,080
63,654
381,924
25,462
63,654
445,578
2,412,487
59,337
59,422
59,508
708,568
(52,322)
(52,407)
(52,493)
(624,388)
THE FOOD DOOFS CAFE

Projected Cash Flow Statement - Year Three
Month 1
Cash Inflows
Income from Sales
Accounts Receivable
Total Cash Inflows
Month 2
-
Month 3
-
Month 4
-
Month 5
-
Month 6
-
Month 7
-
Month 8
-
Month 9
-
282,750
282,750
282,750
282,750
282,750
282,750
282,750
282,750
282,750
282,750
282,750
282,750
282,750
282,750
282,750
282,750
282,750
282,750
Cash Outflows
Inventory Purchases
Cost of Sales
Salaries and Wages
Taxes
Loan Payments
Dividends Paid
Total Cash Outflows
3,308
3,308
3,308
3,308
3,308
3,308
3,308
3,308
3,308
71,387
201,041
-
71,387
201,041
-
71,387
201,041
-
71,387
201,041
-
71,387
201,041
-
71,387
201,041
-
71,387
201,041
-
71,387
201,041
-
71,387
201,041
-
45,773
1,104
322,612
45,773
1,402
322,911
45,773
1,704
323,212
45,773
2,007
323,516
45,773
2,313
323,821
45,773
2,621
324,129
45,773
2,931
324,440
45,773
3,244
324,752
45,773
3,559
325,067
Cash Flow
(39,862)
(40,161)
(40,462)
(40,766)
(41,071)
(41,379)
(41,690)
(42,002)
(42,317)
(39,862)
(40,161)
(40,462)
(40,766)
(41,071)
(41,379)
(41,690)
(42,002)
(42,317)
39,862
40,161
40,462
40,766
41,071
41,379
41,690
42,002
42,317

Ending Cash Balance
THE FOOD DOOFS CAFE

Projected Cash Flow Statement - Year Three
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
186,998
227,159
267,621
308,387
349,458
390,838
432,527
474,530
516,847
Month 10
-
Month 11
-
Month 12
Totals
282,750
282,750
282,750
282,750
282,750
282,750
3,393,000
3,393,000
3,308
3,308
3,308
39,690
71,387
201,041
-
71,387
201,041
-
71,387
201,041
-
45,773
3,876
325,385
45,773
4,196
325,705
45,773
4,518
326,027
856,644
2,412,487
549,281
33,476
3,891,577
(42,635)
(42,955)
(43,277)
(498,577)
(42,635)
(42,955)
(43,277)
42,635
42,955
43,277
498,577
Month 10
Month 11
Month 12
559,482
602,437
645,713
Totals
THE FOOD DOOFS CAFE

Balance Sheet - Year Three
End of Year Two

Assets
Current Assets
Cash
Accounts Receivable
Inventory
Prepaid Expenses
Other Current
End of Year Three
50,000
388,333
438,333
50,000
0
50,000
Fixed Assets
Real Estate
Buildings
Equipment
Vehicles
Other Fixed Assets
Total Fixed Assets
200,000
200,000
60,000
120,000
50,000
630,000
200,000
200,000
60,000
120,000
50,000
630,000
206,286
309,429
862,047
370,571
2,205,060
-
1,839,395
-
Total Assets

Liabilities
Accounts Payable
Notes Payable
Mortgage Payable
THE FOOD DOOFS CAFE

Balance Sheet - Year Three

Total Liabilities
Owner's Equity
Common Stock
Retained Earnings
Dividends Dispersed
End of Year Two

147,136
2,352,197
End of Year Three

645,713
2,485,109
(1,490,149)
(1,490,149)
(2,114,537)
(2,114,537)
862,047
370,571
Statement Balances
Statement Balances
THE FOOD DOOFS CAFE

Financial Ratios
Ratio
Liquidity
Current Ratio
Quick Ratio
Safety
Debt to Equity Ratio
Debt to Coverage Ratio
Profitability
Sales Growth
COGS to Sales
Gross Profit Margin
SG&A to Sales
Net Profit Margin
Return on Equity
Return on Assets
Owner's Compensation to Sales
Efficiency
Days in Receivables
Accounts Receivable Turnover
Days in Inventory
Inventory Turnover
Sales to Total Assets
Year One
Year Two
Year Three
0.48
0.15
0.19
-
0.02
-
(3.20)
(0.27)
(1.58)
(0.25)
(1.18)
(0.21)
0.01
0.99
1.01
(0.26)
1.00
(0.45)
-
0.05
0.01
0.99
0.99
(0.22)
0.47
(0.81)
-
0.05
0.01
0.99
0.96
(0.18)
0.30
(1.68)
-
500.00
0.72
1.75
476.19
0.76
3.74
453.51
0.79
9.16
THE FOOD DOOFS CAFE

Breakeven Analysis
Breakeven Analysis
Annual Sales Revenue
Cost of Sales
Gross Margin
Dollars
3,060,000
36,000
3,024,000
Salaries and Wages

807,553
2,620,790
3,428,343
Breakeven Sales Calculation
3,428,343
98.82%
Breakeven Sales in Dollars
3,469,156
Percent
100.00%
1.18%
98.82%
THE FOOD DOOFS CAFE

Amortization Schedule
Loan Type
Commercial Loan
Principal Amount
$
Interest Rate
Loan Term in Months
Monthly Payment Amoun
Assumptions
Year One
Interest
Principal
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
21,338
24,436
2,820,564
21,154
24,619
2,795,945
20,970
24,804
2,771,141
20,784
24,990
2,746,151
20,596
25,177
2,720,974
20,407
25,366
2,695,608
20,217
25,556
2,670,051
20,025
25,748
2,644,303
19,832
25,941
2,618,362
19,045
26,728
2,512,637
18,845
26,929
2,485,709
18,643
27,131
2,458,578
18,439
27,334
2,431,244
18,234
27,539
2,403,705
18,028
27,746
2,375,959
17,820
27,954
2,348,006
17,610
28,163
2,319,842
17,399
28,375
2,291,468
16,538
29,235
2,175,825
16,319
29,455
2,146,370
16,098
29,676
2,116,695
15,875
29,898
2,086,796
15,651
30,122
2,056,674
15,425
30,348
2,026,326
15,197
30,576
1,995,750
14,968
30,805
1,964,944
14,737
31,036
1,933,908
2,845,000
9.00%
84.00
$45,773.43
Year One
Interest
Principal
Loan Balance
Year Two
Interest
Principal
Loan Balance
Year Three
Interest
Principal
Loan Balance
Commercial Mortgage
Principal Amount
$
Interest Rate
Loan Term in Months
Monthly Payment Amoun
Month 1
9.00%
240.00
$0.00
Loan Balance
Year Two
Interest
Principal
Loan Balance
Year Three
Interest
Principal
Loan Balance
Month 10
Month 11
Month 12
Totals
19,638
26,136
2,592,226
19,442
26,332
2,565,895
19,244
26,529
2,539,366
243,647
305,634
17,186
28,587
2,262,880
16,972
28,802
2,234,078
16,756
29,018
2,205,060
214,976
334,305
14,504
31,269
1,902,639
14,270
31,504
1,871,135
14,034
31,740
1,839,395
183,616
365,665
THE FOOD DOOFS CAFE

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
General Financing Assumptions
Owner's Cash Injection into the Business
Cash Request as percent of Total Required Funds
Value
0.00%
35.15%
Loan Assumptions
Commercial Loan Interest rate
Commercial Loan Term in Months
Commercial Mortgage Interest rate
Commercial Mortgage Term in Months
Loan Payments as a Percent of Projected Sales
Cash Flow Statement

Desired Operating cash Flow Levels
Accounts Receivable Ratio to Sales
$
$
Owner's injection might be too low in relation to the amount of money needed
Cash request exceeds 20% which might be high
9.00%
84
Interest rate seems reasonable

Loan term seems within range for this type of loan
9.00%
240.00
Interest rate seems reasonable

Loan term seems within range for this type of loan
1.50%
Income Statement
Gross Margin as a Percent of Sales
Owner's Compensation Lower Limit Check
$
Owner's Compensation Upper Limit Check
Advertising Expense Levels as a Percent of Sales
Profitability Levels
$
Profitability as a Percent of Sales
Findings
98.82%
0.00%
0.39%
(792,676)
-25.90%
0.00%
Calculated loan payments as a percent of sales seem resonable
Gross margin percentage seems reasonable

An owner's compensation amount has not been established
Owner's compensation seems reasonable
Advertising as a percent of sales may be too low
The business is not showing a profit
The projection does not seem highly unreasonable
The financial projection provides the desired level of cash flow

The business doesn't seem to require a line of credit
Accounts receivable amount as a percent of sales seems reasonable
Balance Sheet
Does the Base Period Balance Sheet Balance?
Does the Final Balance Sheet Balance
Debt to Equity Ratio
Breakeven Analysis
Breakeven Levels
-320.35%
The balance sheet does balance

The balance sheet does balance
The debt to equity ratio seems reasonable
(409,156)
The sales projection is less than the break-even amount
unt of money needed

Financial Projection Model Guide

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Financial Projection Model

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THE FOOD DOOFS CAFE

Required Start-Up Funds

Total Sources of Funding

THE FOOD DOOFS CAFE

Salaries and Related Expenses

Total Salaries and Related Expenses

THE FOOD DOOFS CAFE

Fixed Operating Expenses

Total Fixed Operating Expenses

THE FOOD DOOFS CAFE

Products and Services

Breakeven Sales Revenu $

Year Two Growth

Breakeven Sales Revenu $

THE FOOD DOOFS CAFE

Products and Services

Breakeven Sales Revenu $

Year Two Growth

Breakeven Sales Revenu $

THE FOOD DOOFS CAFE

Accounts Receivable Collections

Accounts Payable Disbursements

Line of Credit Assumptions

THE FOOD DOOFS CAFE

Less: Accumulated Depreciation

Liabilities and Owner's Equity

THE FOOD DOOFS CAFE

Line of Credit Balance

THE FOOD DOOFS CAFE

Total Cost of Sales

THE FOOD DOOFS CAFE

THE FOOD DOOFS CAFE

Beginning Cash Balance

Operating Cash Balance

Line of Credit Drawdowns

THE FOOD DOOFS CAFE

Line of Credit Balance

THE FOOD DOOFS CAFE

End of Year One

Liabilities and Owner's Equity

THE FOOD DOOFS CAFE

Line of Credit Balance

End of Year One

THE FOOD DOOFS CAFE

THE FOOD DOOFS CAFE

THE FOOD DOOFS CAFE

Total Cost of Sales

THE FOOD DOOFS CAFE

THE FOOD DOOFS CAFE

Beginning Cash Balance

Operating Cash Balance

Line of Credit Drawdowns

THE FOOD DOOFS CAFE

Line of Credit Balance

THE FOOD DOOFS CAFE

End of Year One

End of Year Two

Less: Accumulated Depreciation

Liabilities and Owner's Equity

THE FOOD DOOFS CAFE

Line of Credit Balance