Bright Future Youth and Family Services
Financial Plan
Forecast
Key Assumptions
“
The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are:
- We assume direct food costs will be equal to or less than 30% of total direct costs.
- We assume a slow-growth economy, without major recession or crisis in food contamination.
- We assume that there are no unforeseen changes in government grant funding availability.
- We assume a continued interest in restaurant and hospitality services by students of the Chambers School. It has proved to be a highly popular program in the past and we have no reason to believe this situation will change.
- We assume a continued interest in using catering services by organizations and businesses in the Eugene/Springfield area.
“
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
“
Start-up Expenses
Dept. of Health Fees $100
Lease (Commercial kitchen) $8,000
Expensed Equipment $1,500
Software $500
TOTAL START-UP EXPENSES $10,000
We will also have $30,000 in mostly culinary equipment as long-term assets when we start.
“
Sources of Funds
We will get our $40,000 from initial fundraising to a specific grantor that will front us the money, plus an annual $15,000 grant from the Eugene Downtown Commission. Our plan assumes $2K per month in donations.
Statements
Projected Profit & Loss
| 2017 | 2018 | 2019 | |
|---|---|---|---|
| Revenue | $63,072 | $64,482 | $65,720 |
| Direct Costs | $13,354 | $14,481 | $15,472 |
| Gross Margin | $49,718 | $50,000 | $50,248 |
| Gross Margin % | 79% | 78% | 76% |
| Operating Expenses | |||
| Salaries & Wages | $36,000 | $36,000 | $36,000 |
| Employee Related Expenses | $7,200 | $7,200 | $7,200 |
| Marketing | $2,500 | $500 | $500 |
| Admin etc | $3,600 | $3,600 | $3,600 |
| Total Operating Expenses | $49,300 | $47,300 | $47,300 |
| Operating Income | $418 | $2,701 | $2,948 |
| Interest Incurred | |||
| Depreciation and Amortization | $6,000 | $6,000 | $6,000 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $0 | $0 | $0 |
| Total Expenses | $68,654 | $67,781 | $68,772 |
| Net Profit | ($5,582) | ($3,299) | ($3,052) |
| Net Profit/Sales | (9%) | (5%) | (5%) |
Projected Balance Sheet
| Starting Balances | 2017 | 2018 | 2019 | |
|---|---|---|---|---|
| Cash | $10,000 | $418 | $3,119 | $6,067 |
| Accounts Receivable | $0 | $0 | $0 | |
| Inventory | ||||
| Other Current Assets | ||||
| Total Current Assets | $10,000 | $418 | $3,119 | $6,067 |
| Long-Term Assets | $30,000 | $30,000 | $30,000 | $30,000 |
| Accumulated Depreciation | ($6,000) | ($12,000) | ($18,000) | |
| Total Long-Term Assets | $30,000 | $24,000 | $18,000 | $12,000 |
| Total Assets | $40,000 | $24,418 | $21,119 | $18,067 |
| Accounts Payable | $10,000 | $0 | $0 | $0 |
| Income Taxes Payable | $0 | $0 | $0 | |
| Sales Taxes Payable | $0 | $0 | $0 | |
| Short-Term Debt | ||||
| Prepaid Revenue | ||||
| Total Current Liabilities | $10,000 | $0 | $0 | $0 |
| Long-Term Debt | ||||
| Long-Term Liabilities | ||||
| Total Liabilities | $10,000 | $0 | $0 | $0 |
| Paid-In Capital | $40,000 | $40,000 | $40,000 | $40,000 |
| Retained Earnings | ($10,000) | ($10,000) | ($15,582) | ($18,881) |
| Earnings | ($5,582) | ($3,300) | ($3,052) | |
| Total Owner’s Equity | $30,000 | $24,418 | $21,119 | $18,067 |
| Total Liabilities & Equity | $40,000 | $24,418 | $21,119 | $18,067 |
Projected Cash Flow Statement
| 2017 | 2018 | 2019 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | ($5,582) | ($3,299) | ($3,052) |
| Depreciation & Amortization | $6,000 | $6,000 | $6,000 |
| Change in Accounts Receivable | $0 | $0 | $0 |
| Change in Inventory | |||
| Change in Accounts Payable | ($10,000) | $0 | $0 |
| Change in Income Tax Payable | $0 | $0 | $0 |
| Change in Sales Tax Payable | $0 | $0 | $0 |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | ($9,582) | $2,700 | $2,948 |
| Investing & Financing | |||
| Assets Purchased or Sold | |||
| Net Cash from Investing | |||
| Investments Received | |||
| Dividends & Distributions | |||
| Change in Short-Term Debt | |||
| Change in Long-Term Debt | |||
| Net Cash from Financing | |||
| Cash at Beginning of Period | $10,000 | $418 | $3,119 |
| Net Change in Cash | ($9,582) | $2,700 | $2,948 |
| Cash at End of Period | $418 | $3,119 | $6,067 |
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