Palms and Bonds
Financial Plan
Forecast
Key Assumptions
- Stability in investment markets
- No significant change in regulatory environment
- Trackable, provable performance results
- Good word of mouth bolstered by social media
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
Grizzly Bear Financial Managers will incur the following start-up costs:
- Desk, chair and file cabinet.
- Couch and table.
- Fax machine, copier.
- Computer with printer, CD-RW, and Internet connection.
- Legal fees for business formation.
Please note that the items which are considered assets to be used for more than a year will labeled long-term assets and will be depreciated using G.A.A.P. approved straight-line depreciation method.
Sources of Funds
Meghan will invest $23,000.
Statements
Projected Profit & Loss
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Revenue | $121,494 | $180,000 | $280,000 |
| Direct Costs | $3,645 | $5,400 | $8,400 |
| Gross Margin | $117,849 | $174,600 | $271,600 |
| Gross Margin % | 97% | 97% | 97% |
| Operating Expenses | |||
| Salaries & Wages | $76,800 | $78,336 | $79,902 |
| Employee Related Expenses | $15,360 | $15,667 | $15,981 |
| Sales and Marketing | $1,200 | $1,200 | $1,200 |
| Insurance | $1,800 | $1,800 | $1,800 |
| Rent | $18,000 | $18,000 | $18,000 |
| Startup Expenses | $900 | ||
| Total Operating Expenses | $114,060 | $115,003 | $116,883 |
| Operating Income | $3,789 | $59,597 | $154,718 |
| Interest Incurred | |||
| Depreciation and Amortization | $456 | $456 | $456 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $833 | $14,785 | $38,566 |
| Total Expenses | $118,994 | $135,644 | $164,304 |
| Net Profit | $2,500 | $44,356 | $115,696 |
| Net Profit/Sales | 2% | 25% | 41% |
Projected Balance Sheet
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Cash | $22,229 | $39,904 | $12,001 |
| Accounts Receivable | $0 | $0 | $0 |
| Inventory | |||
| Other Current Assets | |||
| Total Current Assets | $22,229 | $39,904 | $12,001 |
| Long-Term Assets | $4,560 | $4,560 | $4,560 |
| Accumulated Depreciation | ($456) | ($912) | ($1,368) |
| Total Long-Term Assets | $4,104 | $3,648 | $3,192 |
| Total Assets | $26,333 | $43,552 | $15,193 |
| Accounts Payable | $0 | $0 | $0 |
| Income Taxes Payable | $833 | $3,696 | $9,641 |
| Sales Taxes Payable | $0 | $0 | $0 |
| Short-Term Debt | |||
| Prepaid Revenue | |||
| Total Current Liabilities | $833 | $3,696 | $9,641 |
| Long-Term Debt | |||
| Long-Term Liabilities | |||
| Total Liabilities | $833 | $3,696 | $9,641 |
| Paid-In Capital | $23,000 | $23,000 | $23,000 |
| Retained Earnings | ($27,500) | ($133,144) | |
| Earnings | $2,500 | $44,356 | $115,696 |
| Total Owner’s Equity | $25,500 | $39,856 | $5,552 |
| Total Liabilities & Equity | $26,333 | $43,552 | $15,193 |
Projected Cash Flow Statement
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | $2,500 | $44,356 | $115,696 |
| Depreciation & Amortization | $456 | $456 | $456 |
| Change in Accounts Receivable | $0 | $0 | $0 |
| Change in Inventory | |||
| Change in Accounts Payable | $0 | $0 | $0 |
| Change in Income Tax Payable | $833 | $2,863 | $5,945 |
| Change in Sales Tax Payable | $0 | $0 | $0 |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | $3,789 | $47,675 | $122,097 |
| Investing & Financing | |||
| Assets Purchased or Sold | ($4,560) | ||
| Net Cash from Investing | ($4,560) | ||
| Investments Received | $23,000 | ||
| Dividends & Distributions | ($30,000) | ($150,000) | |
| Change in Short-Term Debt | |||
| Change in Long-Term Debt | |||
| Net Cash from Financing | $23,000 | ($30,000) | ($150,000) |
| Cash at Beginning of Period | $0 | $22,229 | $39,904 |
| Net Change in Cash | $22,229 | $17,675 | ($27,903) |
| Cash at End of Period | $22,229 | $39,904 | $12,001 |
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