The financial plan is presented in the following topics.
7.1 Break-even Analysis
The monthly sales break-even point is is shown in the table and chart below.
7.2 Projected Profit and Loss
The following table and charts outline the projected profit and loss for three years. We estimate that the agency will not be profitable until the second year of operation. Promerit Advertising will then grow by about 9% for the second and third year.
7.3 Projected Cash Flow
The following table and chart highlight the projected cash flow for three years.
7.4 Projected Balance Sheet
The table shows projected balance sheet for three years.
7.5 Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7311, Advertising Agencies, are shown for comparison.