Concrete Carbon Parts
Financial Plan
The following sections will outline important Financial Information.
8.1 Important Assumptions
The following table details important Financial Assumptions.
General Assumptions | |||
2003 | 2004 | 2005 | |
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 is shown below.

Break-even Analysis | |
Monthly Revenue Break-even | $12,582 |
Assumptions: | |
Average Percent Variable Cost | 59% |
Estimated Monthly Fixed Cost | $5,160 |
8.3 Projected Profit and Loss
The following table will indicate Projected Profit and Loss.




Pro Forma Profit and Loss | |||
2003 | 2004 | 2005 | |
Sales | $119,821 | $280,903 | $332,424 |
Direct Cost of Sales | $70,680 | $173,581 | $205,082 |
Other Costs of Goods | $0 | $0 | $0 |
Total Cost of Sales | $70,680 | $173,581 | $205,082 |
Gross Margin | $49,141 | $107,322 | $127,342 |
Gross Margin % | 41.01% | 38.21% | 38.31% |
Expenses | |||
Payroll | $41,500 | $59,400 | $73,000 |
Sales and Marketing and Other Expenses | $4,800 | $4,800 | $4,800 |
Depreciation | $996 | $996 | $996 |
Rent | $4,200 | $4,200 | $4,200 |
Utilities | $1,800 | $1,800 | $1,800 |
Insurance | $2,400 | $2,400 | $2,400 |
Payroll Taxes | $6,225 | $8,910 | $10,950 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $61,921 | $82,506 | $98,146 |
Profit Before Interest and Taxes | ($12,780) | $24,816 | $29,196 |
EBITDA | ($11,784) | $25,812 | $30,192 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $0 | $7,445 | $8,759 |
Net Profit | ($12,780) | $17,371 | $20,437 |
Net Profit/Sales | -10.67% | 6.18% | 6.15% |
8.4 Projected Cash Flow
The following table and chart will indicate Projected Cash Flow.

Pro Forma Cash Flow | |||
2003 | 2004 | 2005 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $29,955 | $70,226 | $83,106 |
Cash from Receivables | $67,585 | $180,724 | $239,738 |
Subtotal Cash from Operations | $97,540 | $250,950 | $322,844 |
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 | $70,000 | $0 | $0 |
Subtotal Cash Received | $167,540 | $250,950 | $322,844 |
Expenditures | 2003 | 2004 | 2005 |
Expenditures from Operations | |||
Cash Spending | $41,500 | $59,400 | $73,000 |
Bill Payments | $90,136 | $210,618 | $240,472 |
Subtotal Spent on Operations | $131,636 | $270,018 | $313,472 |
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 | $5,000 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $136,636 | $270,018 | $313,472 |
Net Cash Flow | $30,904 | ($19,068) | $9,372 |
Cash Balance | $36,359 | $17,291 | $26,663 |
8.5 Projected Balance Sheet
The following table will indicate the projected Balance Sheet.
Pro Forma Balance Sheet | |||
2003 | 2004 | 2005 | |
Assets | |||
Current Assets | |||
Cash | $36,359 | $17,291 | $26,663 |
Accounts Receivable | $22,281 | $52,234 | $61,814 |
Inventory | $10,111 | $24,832 | $29,339 |
Other Current Assets | $800 | $800 | $800 |
Total Current Assets | $69,551 | $95,157 | $118,616 |
Long-term Assets | |||
Long-term Assets | $6,000 | $6,000 | $6,000 |
Accumulated Depreciation | $996 | $1,992 | $2,988 |
Total Long-term Assets | $5,004 | $4,008 | $3,012 |
Total Assets | $74,555 | $99,165 | $121,628 |
Liabilities and Capital | 2003 | 2004 | 2005 |
Current Liabilities | |||
Accounts Payable | $10,667 | $17,906 | $19,931 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $10,667 | $17,906 | $19,931 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $10,667 | $17,906 | $19,931 |
Paid-in Capital | $70,000 | $70,000 | $70,000 |
Retained Earnings | $6,668 | ($6,112) | $11,259 |
Earnings | ($12,780) | $17,371 | $20,437 |
Total Capital | $63,888 | $81,259 | $101,696 |
Total Liabilities and Capital | $74,555 | $99,165 | $121,628 |
Net Worth | $63,888 | $81,259 | $101,696 |
8.6 Business Ratios
The following table will display the common Business Ratios associated with this company as well as industry averages.
Ratio Analysis | ||||
2003 | 2004 | 2005 | Industry Profile | |
Sales Growth | 565.67% | 134.44% | 18.34% | 4.01% |
Percent of Total Assets | ||||
Accounts Receivable | 29.88% | 52.67% | 50.82% | 15.71% |
Inventory | 13.56% | 25.04% | 24.12% | 39.55% |
Other Current Assets | 1.07% | 0.81% | 0.66% | 24.92% |
Total Current Assets | 93.29% | 95.96% | 97.52% | 80.18% |
Long-term Assets | 6.71% | 4.04% | 2.48% | 19.82% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 14.31% | 18.06% | 16.39% | 40.00% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 14.33% |
Total Liabilities | 14.31% | 18.06% | 16.39% | 54.33% |
Net Worth | 85.69% | 81.94% | 83.61% | 45.67% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 41.01% | 38.21% | 38.31% | 31.56% |
Selling, General & Administrative Expenses | 51.68% | 32.02% | 32.16% | 19.76% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 1.49% |
Profit Before Interest and Taxes | -10.67% | 8.83% | 8.78% | 1.66% |
Main Ratios | ||||
Current | 6.52 | 5.31 | 5.95 | 1.80 |
Quick | 5.57 | 3.93 | 4.48 | 0.69 |
Total Debt to Total Assets | 14.31% | 18.06% | 16.39% | 59.54% |
Pre-tax Return on Net Worth | -20.00% | 30.54% | 28.71% | 3.82% |
Pre-tax Return on Assets | -17.14% | 25.03% | 24.00% | 9.44% |
Additional Ratios | 2003 | 2004 | 2005 | |
Net Profit Margin | -10.67% | 6.18% | 6.15% | n.a |
Return on Equity | -20.00% | 21.38% | 20.10% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 4.03 | 4.03 | 4.03 | n.a |
Collection Days | 56 | 65 | 83 | n.a |
Inventory Turnover | 10.91 | 9.93 | 7.57 | n.a |
Accounts Payable Turnover | 9.36 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 24 | 28 | n.a |
Total Asset Turnover | 1.61 | 2.83 | 2.73 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.17 | 0.22 | 0.20 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $58,884 | $77,251 | $98,684 | n.a |
Interest Coverage | 0.00 | 0.00 | 0.00 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.62 | 0.35 | 0.37 | n.a |
Current Debt/Total Assets | 14% | 18% | 16% | n.a |
Acid Test | 3.48 | 1.01 | 1.38 | n.a |
Sales/Net Worth | 1.88 | 3.46 | 3.27 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |