The Toddler Warehouse
Financial Plan
Forecast
Key Assumptions
Our key assumptions:
- Kids need to have a place that caters to the way they learn
- Kids need somewhere that teaches them life skills
- Education starts at a very young age
- Parents need somewhere safe and nurturing to leave children while they finish their workday.
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
The Toddler Warehouse’s start-up costs include:
- Legal: $1,000
- Stationery etc: $100
- Brochures: $350
- Art supplies: $150
- Kitchen supplies: $200
- Cleaning supplies: $100
- Medicine kits: $100
- Matts and pillows: $150
Total $ 2150
Sources of Funds
Our founder will invest $85,000 to get the operation up and running.
Statements
Projected Profit & Loss
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Revenue | $266,700 | $330,000 | $402,000 |
| Direct Costs | $5,334 | $6,600 | $8,040 |
| Gross Margin | $261,366 | $323,400 | $393,960 |
| Gross Margin % | 98% | 98% | 98% |
| Operating Expenses | |||
| Salaries & Wages | $138,400 | $169,344 | $263,065 |
| Employee Related Expenses | $27,680 | $33,869 | $52,613 |
| Rent | $30,000 | $30,000 | $30,000 |
| Licenses | $1,440 | $1,440 | $1,440 |
| Utilities | $1,800 | $1,800 | $1,800 |
| Insurance | $3,600 | $3,600 | $3,600 |
| Marketing | $18,000 | $18,000 | $18,000 |
| Total Operating Expenses | $220,920 | $258,053 | $370,518 |
| Operating Income | $40,446 | $65,347 | $23,442 |
| Interest Incurred | |||
| Depreciation and Amortization | $2,800 | $2,800 | $2,800 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $5,647 | $9,382 | $3,096 |
| Total Expenses | $234,701 | $276,835 | $384,454 |
| Net Profit | $31,999 | $53,165 | $17,546 |
| Net Profit/Sales | 12% | 16% | 4% |
Projected Balance Sheet
| Starting Balances | 2018 | 2019 | 2020 | |
|---|---|---|---|---|
| Cash | $49,250 | $97,888 | $150,866 | $171,444 |
| Accounts Receivable | $0 | $0 | $0 | |
| Inventory | ||||
| Other Current Assets | ||||
| Total Current Assets | $49,250 | $97,888 | $150,866 | $171,444 |
| Long-Term Assets | $33,600 | $33,600 | $33,600 | $33,600 |
| Accumulated Depreciation | ($2,800) | ($5,600) | ($8,400) | |
| Total Long-Term Assets | $33,600 | $30,800 | $28,000 | $25,200 |
| Total Assets | $82,850 | $128,688 | $178,866 | $196,644 |
| Accounts Payable | $259 | $256 | $262 | |
| Income Taxes Payable | $4,190 | $2,346 | $772 | |
| Sales Taxes Payable | $9,390 | $8,250 | $10,050 | |
| Short-Term Debt | ||||
| Prepaid Revenue | ||||
| Total Current Liabilities | $13,839 | $10,852 | $11,084 | |
| Long-Term Debt | ||||
| Long-Term Liabilities | ||||
| Total Liabilities | $13,839 | $10,852 | $11,084 | |
| Paid-In Capital | $85,000 | $85,000 | $85,000 | $85,000 |
| Retained Earnings | ($2,150) | ($2,150) | $29,849 | $83,014 |
| Earnings | $31,999 | $53,165 | $17,546 | |
| Total Owner’s Equity | $82,850 | $114,849 | $168,014 | $185,560 |
| Total Liabilities & Equity | $82,850 | $128,688 | $178,866 | $196,644 |
Projected Cash Flow Statement
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | $31,999 | $53,165 | $17,546 |
| Depreciation & Amortization | $2,800 | $2,800 | $2,800 |
| Change in Accounts Receivable | $0 | $0 | $0 |
| Change in Inventory | |||
| Change in Accounts Payable | $259 | ($3) | $6 |
| Change in Income Tax Payable | $4,190 | ($1,844) | ($1,574) |
| Change in Sales Tax Payable | $9,390 | ($1,140) | $1,800 |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | $48,638 | $52,979 | $20,578 |
| 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 | $49,250 | $97,888 | $150,866 |
| Net Change in Cash | $48,638 | $52,979 | $20,578 |
| Cash at End of Period | $97,888 | $150,866 | $171,444 |
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