Government Services Business Plan

ASTI - Advanced Science and Technology Institute

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Financial Plan

The following sections will outline important financial information.

7.1 Break-even Analysis

The following table shows what our break-even point will be to cover our montuhly costs.

Break-even Analysis
Monthly Revenue Break-even $22,033
Assumptions:
Average Percent Variable Cost 0%
Estimated Monthly Fixed Cost $22,033

7.2 Projected Surplus or Deficit

The following table will indicate projected surplus and deficit.

Surplus and Deficit
Year 1 Year 2 Year 3
Funding $286,000 $261,000 $285,000
Direct Cost $0 $0 $0
Other Production Expenses $0 $0 $0
Total Direct Cost $0 $0 $0
Gross Surplus $286,000 $261,000 $285,000
Gross Surplus % 100.00% 100.00% 100.00%
Expenses
Payroll $144,000 $157,000 $168,000
Sales and Marketing and Other Expenses $83,000 $39,000 $39,000
Depreciation $0 $0 $0
Leased Equipment $0 $0 $0
Utilities $2,000 $2,000 $2,000
Insurance $1,800 $1,800 $1,800
Rent $12,000 $12,000 $12,000
Payroll Taxes $21,600 $23,550 $25,200
Other $0 $0 $0
Total Operating Expenses $264,400 $235,350 $248,000
Surplus Before Interest and Taxes $21,600 $25,650 $37,000
EBITDA $21,600 $25,650 $37,000
Interest Expense $0 $0 $0
Taxes Incurred $0 $0 $0
Net Surplus $21,600 $25,650 $37,000
Net Surplus/Funding 7.55% 9.83% 12.98%

7.3 Projected Cash Flow

The following table and chart illustrate the projected cash flow.

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Funding $286,000 $261,000 $285,000
Subtotal Cash from Operations $286,000 $261,000 $285,000
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $286,000 $261,000 $285,000
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $144,000 $157,000 $168,000
Bill Payments $110,701 $81,609 $79,864
Subtotal Spent on Operations $254,701 $238,609 $247,864
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $254,701 $238,609 $247,864
Net Cash Flow $31,299 $22,391 $37,136
Cash Balance $185,499 $207,890 $245,025

7.4 Standard Ratios

The following table compares our standard ratios with the Standard Industry Code #8748, Other Management Consulting Services.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Funding Growth 0.00% -8.74% 9.20% 7.29%
Percent of Total Assets
Other Current Assets 0.00% 0.00% 0.00% 51.87%
Total Current Assets 100.00% 100.00% 100.00% 75.02%
Long-term Assets 0.00% 0.00% 0.00% 24.98%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 5.23% 3.10% 2.68% 31.06%
Long-term Liabilities 0.00% 0.00% 0.00% 17.80%
Total Liabilities 5.23% 3.10% 2.68% 48.86%
Net Worth 94.77% 96.90% 97.32% 51.14%
Percent of Funding
Funding 100.00% 100.00% 100.00% 100.00%
Gross Surplus 100.00% 100.00% 100.00% 100.00%
Selling, General & Administrative Expenses 92.45% 90.17% 87.02% 74.84%
Advertising Expenses 10.49% 11.49% 10.53% 1.60%
Surplus Before Interest and Taxes 7.55% 9.83% 12.98% 2.61%
Main Ratios
Current 19.13 32.28 37.26 1.80
Quick 19.13 32.28 37.26 1.49
Total Debt to Total Assets 5.23% 3.10% 2.68% 58.30%
Pre-tax Return on Net Worth 12.29% 12.73% 15.52% 6.19%
Pre-tax Return on Assets 11.64% 12.34% 15.10% 14.83%
Additional Ratios Year 1 Year 2 Year 3
Net Surplus Margin 7.55% 9.83% 12.98% n.a
Return on Equity 12.29% 12.73% 15.52% n.a
Activity Ratios
Accounts Payable Turnover 12.41 12.17 12.17 n.a
Payment Days 27 38 30 n.a
Total Asset Turnover 1.54 1.26 1.16 n.a
Debt Ratios
Debt to Net Worth 0.06 0.03 0.03 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $175,800 $201,450 $238,450 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Funding 0.65 0.80 0.86 n.a
Current Debt/Total Assets 5% 3% 3% n.a
Acid Test 19.13 32.28 37.26 n.a
Funding/Net Worth 1.63 1.30 1.20 n.a
Dividend Payout 0.00 0.00 0.00 n.a
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Break-even Analysis
Monthly Revenue Break-even $22,033
Assumptions:
Average Percent Variable Cost 0%
Estimated Monthly Fixed Cost $22,033
Surplus and Deficit
Year 1 Year 2 Year 3
Funding $286,000 $261,000 $285,000
Direct Cost $0 $0 $0
Other Production Expenses $0 $0 $0
Total Direct Cost $0 $0 $0
Gross Surplus $286,000 $261,000 $285,000
Gross Surplus % 100.00% 100.00% 100.00%
Expenses
Payroll $144,000 $157,000 $168,000
Sales and Marketing and Other Expenses $83,000 $39,000 $39,000
Depreciation $0 $0 $0
Leased Equipment $0 $0 $0
Utilities $2,000 $2,000 $2,000
Insurance $1,800 $1,800 $1,800
Rent $12,000 $12,000 $12,000
Payroll Taxes $21,600 $23,550 $25,200
Other $0 $0 $0
Total Operating Expenses $264,400 $235,350 $248,000
Surplus Before Interest and Taxes $21,600 $25,650 $37,000
EBITDA $21,600 $25,650 $37,000
Interest Expense $0 $0 $0
Taxes Incurred $0 $0 $0
Net Surplus $21,600 $25,650 $37,000
Net Surplus/Funding 7.55% 9.83% 12.98%
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Funding $286,000 $261,000 $285,000
Subtotal Cash from Operations $286,000 $261,000 $285,000
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $286,000 $261,000 $285,000
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $144,000 $157,000 $168,000
Bill Payments $110,701 $81,609 $79,864
Subtotal Spent on Operations $254,701 $238,609 $247,864
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $254,701 $238,609 $247,864
Net Cash Flow $31,299 $22,391 $37,136
Cash Balance $185,499 $207,890 $245,025
Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Funding Growth 0.00% -8.74% 9.20% 7.29%
Percent of Total Assets
Other Current Assets 0.00% 0.00% 0.00% 51.87%
Total Current Assets 100.00% 100.00% 100.00% 75.02%
Long-term Assets 0.00% 0.00% 0.00% 24.98%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 5.23% 3.10% 2.68% 31.06%
Long-term Liabilities 0.00% 0.00% 0.00% 17.80%
Total Liabilities 5.23% 3.10% 2.68% 48.86%
Net Worth 94.77% 96.90% 97.32% 51.14%
Percent of Funding
Funding 100.00% 100.00% 100.00% 100.00%
Gross Surplus 100.00% 100.00% 100.00% 100.00%
Selling, General & Administrative Expenses 92.45% 90.17% 87.02% 74.84%
Advertising Expenses 10.49% 11.49% 10.53% 1.60%
Surplus Before Interest and Taxes 7.55% 9.83% 12.98% 2.61%
Main Ratios
Current 19.13 32.28 37.26 1.80
Quick 19.13 32.28 37.26 1.49
Total Debt to Total Assets 5.23% 3.10% 2.68% 58.30%
Pre-tax Return on Net Worth 12.29% 12.73% 15.52% 6.19%
Pre-tax Return on Assets 11.64% 12.34% 15.10% 14.83%
Additional Ratios Year 1 Year 2 Year 3
Net Surplus Margin 7.55% 9.83% 12.98% n.a
Return on Equity 12.29% 12.73% 15.52% n.a
Activity Ratios
Accounts Payable Turnover 12.41 12.17 12.17 n.a
Payment Days 27 38 30 n.a
Total Asset Turnover 1.54 1.26 1.16 n.a
Debt Ratios
Debt to Net Worth 0.06 0.03 0.03 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $175,800 $201,450 $238,450 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Funding 0.65 0.80 0.86 n.a
Current Debt/Total Assets 5% 3% 3% n.a
Acid Test 19.13 32.28 37.26 n.a
Funding/Net Worth 1.63 1.30 1.20 n.a
Dividend Payout 0.00 0.00 0.00 n.a