Fressen Catering
Financial Plan
Forecast
Key Assumptions
With experience and after doing research we assume the following is true:
1- there is a need for high quality kosher food in philadelphia
2 – we will be serving a higher end income population
3 – we have the knowledge and equipment to give our customers clean and kosher food.
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
Fressen Catering will incur the following start-up costs:
- Two commercial stoves with ovens.
- Dishwasher.
- Two sets of cookware.
- Two sets of dishware.
- One van with rolling racks built in (a rolling rack is a wheeled rolling cart system that is insulated for both hot and cold food).
- Assorted serving trays and utensils, knives and cutting boards (two each).
- Desk and chair.
- Computer with printer, CD-RW, Microsoft Office, and QuickBooks Pro.
- Copier and fax machine.
Please note that the following items which are considered assets to be used for more than a year will be labeled long-term assets and will be depreciated using G.A.A.P. approved straight-line depreciation method.
Sources of Funds
Susan will be contributing 40000. Susan’s friends and family will be contributing 90,000 to the business
Statements
Projected Profit & Loss
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Revenue | $248,777 | $396,000 | $546,000 |
| Direct Costs | $84,584 | $134,640 | $185,640 |
| Gross Margin | $164,193 | $261,360 | $360,360 |
| Gross Margin % | 66% | 66% | 66% |
| Operating Expenses | |||
| Salaries & Wages | $145,200 | $239,664 | $244,217 |
| Employee Related Expenses | $29,040 | $47,933 | $48,843 |
| Sales and Marketing expense | $1,800 | $1,800 | $1,800 |
| Utilities | $600 | $600 | $600 |
| Insurance | $1,800 | $1,800 | $1,800 |
| Rent | $8,400 | $8,400 | $8,400 |
| Total Operating Expenses | $186,840 | $300,197 | $305,660 |
| Operating Income | ($22,647) | ($38,837) | $54,700 |
| Interest Incurred | |||
| Depreciation and Amortization | $6,504 | $6,504 | $6,504 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $0 | $0 | $0 |
| Total Expenses | $277,928 | $441,341 | $497,804 |
| Net Profit | ($29,151) | ($45,341) | $48,196 |
| Net Profit/Sales | (12%) | (11%) | 9% |
Projected Balance Sheet
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Cash | $45,453 | $6,789 | $62,636 |
| Accounts Receivable | $0 | $0 | $0 |
| Inventory | |||
| Other Current Assets | |||
| Total Current Assets | $45,453 | $6,789 | $62,636 |
| Long-Term Assets | $65,040 | $65,040 | $65,040 |
| Accumulated Depreciation | ($6,504) | ($13,008) | ($19,512) |
| Total Long-Term Assets | $58,536 | $52,032 | $45,528 |
| Total Assets | $103,989 | $58,821 | $108,164 |
| Accounts Payable | $3,140 | $3,313 | $4,460 |
| Income Taxes Payable | $0 | $0 | $0 |
| Sales Taxes Payable | $0 | $0 | $0 |
| Short-Term Debt | |||
| Prepaid Revenue | |||
| Total Current Liabilities | $3,140 | $3,313 | $4,460 |
| Long-Term Debt | |||
| Long-Term Liabilities | |||
| Total Liabilities | $3,140 | $3,313 | $4,460 |
| Paid-In Capital | $130,000 | $130,000 | $130,000 |
| Retained Earnings | ($29,151) | ($74,492) | |
| Earnings | ($29,151) | ($45,341) | $48,196 |
| Total Owner’s Equity | $100,849 | $55,508 | $103,704 |
| Total Liabilities & Equity | $103,989 | $58,821 | $108,164 |
Projected Cash Flow Statement
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | ($29,151) | ($45,341) | $48,196 |
| Depreciation & Amortization | $6,504 | $6,504 | $6,504 |
| Change in Accounts Receivable | $0 | $0 | $0 |
| Change in Inventory | |||
| Change in Accounts Payable | $3,140 | $173 | $1,148 |
| 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 | ($19,507) | ($38,664) | $55,847 |
| Investing & Financing | |||
| Assets Purchased or Sold | ($65,040) | ||
| Net Cash from Investing | ($65,040) | ||
| Investments Received | $130,000 | ||
| Dividends & Distributions | |||
| Change in Short-Term Debt | |||
| Change in Long-Term Debt | |||
| Net Cash from Financing | $130,000 | ||
| Cash at Beginning of Period | $0 | $45,453 | $6,789 |
| Net Change in Cash | $45,453 | ($38,664) | $55,847 |
| Cash at End of Period | $45,453 | $6,789 | $62,636 |
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