Everywhere Assistant
Financial Plan
The following sections will outline important financial information.
8.1 Important Assumptions
The following table details important Financial Assumptions.
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 10.00% | 10.00% | 10.00% |
| Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
| Tax Rate | 30.00% | 30.00% | 30.00% |
| Other | 0 | 0 | 0 |
8.2 Break-even Analysis
The Break-even Analysis indicates what will be needed in monthly revenue to reach the break-even point.
| Break-even Analysis | |
| Monthly Revenue Break-even | $2,913 |
| Assumptions: | |
| Average Percent Variable Cost | 5% |
| Estimated Monthly Fixed Cost | $2,767 |
8.3 Projected Profit and Loss
The following table and charts will indicate Projected Profit and Loss.
| Pro Forma Profit and Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $20,240 | $39,668 | $50,418 |
| Direct Cost of Sales | $1,012 | $1,983 | $2,521 |
| Other Costs of Sales | $0 | $0 | $0 |
| Total Cost of Sales | $1,012 | $1,983 | $2,521 |
| Gross Margin | $19,228 | $37,684 | $47,897 |
| Gross Margin % | 95.00% | 95.00% | 95.00% |
| Expenses | |||
| Payroll | $24,000 | $24,000 | $24,000 |
| Sales and Marketing and Other Expenses | $1,200 | $1,200 | $750 |
| Depreciation | $1,404 | $1,404 | $1,404 |
| Rent | $1,800 | $1,800 | $1,800 |
| Utilities | $600 | $600 | $600 |
| Insurance | $600 | $600 | $600 |
| Payroll Taxes | $3,600 | $3,600 | $3,600 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $33,204 | $33,204 | $32,754 |
| Profit Before Interest and Taxes | ($13,976) | $4,480 | $15,143 |
| EBITDA | ($12,572) | $5,884 | $16,547 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $0 | $1,344 | $4,543 |
| Net Profit | ($13,976) | $3,136 | $10,600 |
| Net Profit/Sales | -69.05% | 7.91% | 21.02% |
8.4 Projected Cash Flow
The following table and chart will indicate Projected Cash Flow.
| Pro Forma Cash Flow | |||
| Year 1 | Year 2 | Year 3 | |
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $5,060 | $9,917 | $12,604 |
| Cash from Receivables | $10,641 | $25,393 | $35,402 |
| Subtotal Cash from Operations | $15,701 | $35,310 | $48,006 |
| 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 | $15,701 | $35,310 | $48,006 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $24,000 | $24,000 | $24,000 |
| Bill Payments | $8,026 | $10,999 | $14,144 |
| Subtotal Spent on Operations | $32,026 | $34,999 | $38,144 |
| 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 | $32,026 | $34,999 | $38,144 |
| Net Cash Flow | ($16,326) | $312 | $9,863 |
| Cash Balance | $474 | $786 | $10,649 |
8.5 Projected Balance Sheet
The following table provides information regarding the Projected Balance Sheet.
| Pro Forma Balance Sheet | |||
| Year 1 | Year 2 | Year 3 | |
| Assets | |||
| Current Assets | |||
| Cash | $474 | $786 | $10,649 |
| Accounts Receivable | $4,539 | $8,897 | $11,308 |
| Other Current Assets | $0 | $0 | $0 |
| Total Current Assets | $5,014 | $9,683 | $21,957 |
| Long-term Assets | |||
| Long-term Assets | $7,000 | $7,000 | $7,000 |
| Accumulated Depreciation | $1,404 | $2,808 | $4,212 |
| Total Long-term Assets | $5,596 | $4,192 | $2,788 |
| Total Assets | $10,610 | $13,875 | $24,745 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $786 | $915 | $1,185 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| Subtotal Current Liabilities | $786 | $915 | $1,185 |
| Long-term Liabilities | $0 | $0 | $0 |
| Total Liabilities | $786 | $915 | $1,185 |
| Paid-in Capital | $30,000 | $30,000 | $30,000 |
| Retained Earnings | ($6,200) | ($20,176) | ($17,040) |
| Earnings | ($13,976) | $3,136 | $10,600 |
| Total Capital | $9,824 | $12,960 | $23,560 |
| Total Liabilities and Capital | $10,610 | $13,875 | $24,745 |
| Net Worth | $9,824 | $12,960 | $23,560 |
8.6 Business Ratios
The following table provides information regarding business ratios specific to Everywhere Assistant as well as rations specific to the Administrative Service Consultant industry. Please note that making a comparison of a virtual assistant and a administrative service consultant is a difficult comparison. It is expected that the ratios will be quite different between the two as a VA is a home based, in this case single individual business.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | Industry Profile | |
| Sales Growth | 0.00% | 95.98% | 27.10% | 6.98% |
| Percent of Total Assets | ||||
| Accounts Receivable | 42.79% | 64.12% | 45.70% | 26.80% |
| Other Current Assets | 0.00% | 0.00% | 0.00% | 43.95% |
| Total Current Assets | 47.26% | 69.79% | 88.73% | 75.76% |
| Long-term Assets | 52.74% | 30.21% | 11.27% | 24.24% |
| Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 7.41% | 6.59% | 4.79% | 31.78% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 17.26% |
| Total Liabilities | 7.41% | 6.59% | 4.79% | 49.04% |
| Net Worth | 92.59% | 93.41% | 95.21% | 50.96% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 95.00% | 95.00% | 95.00% | 100.00% |
| Selling, General & Administrative Expenses | 164.05% | 87.09% | 73.98% | 85.31% |
| Advertising Expenses | 0.00% | 0.00% | 0.00% | 1.02% |
| Profit Before Interest and Taxes | -69.05% | 11.29% | 30.03% | 1.90% |
| Main Ratios | ||||
| Current | 6.38 | 10.59 | 18.53 | 1.88 |
| Quick | 6.38 | 10.59 | 18.53 | 1.48 |
| Total Debt to Total Assets | 7.41% | 6.59% | 4.79% | 3.41% |
| Pre-tax Return on Net Worth | -142.26% | 34.57% | 64.27% | 55.78% |
| Pre-tax Return on Assets | -131.73% | 32.29% | 61.20% | 7.72% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | -69.05% | 7.91% | 21.02% | n.a |
| Return on Equity | -142.26% | 24.20% | 44.99% | n.a |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 3.34 | 3.34 | 3.34 | n.a |
| Collection Days | 55 | 82 | 98 | n.a |
| Accounts Payable Turnover | 11.21 | 12.17 | 12.17 | n.a |
| Payment Days | 27 | 28 | 27 | n.a |
| Total Asset Turnover | 1.91 | 2.86 | 2.04 | n.a |
| Debt Ratios | ||||
| Debt to Net Worth | 0.08 | 0.07 | 0.05 | n.a |
| Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
| Liquidity Ratios | ||||
| Net Working Capital | $4,228 | $8,768 | $20,772 | n.a |
| Interest Coverage | 0.00 | 0.00 | 0.00 | n.a |
| Additional Ratios | ||||
| Assets to Sales | 0.52 | 0.35 | 0.49 | n.a |
| Current Debt/Total Assets | 7% | 7% | 5% | n.a |
| Acid Test | 0.60 | 0.86 | 8.99 | n.a |
| Sales/Net Worth | 2.06 | 3.06 | 2.14 | n.a |
| Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
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