The Daily Perc
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:
- The Daily Perc assumes a slow-growth economy, without a major recession.
- The Daily Perc assumes of course that there are no unforeseen changes in public health perceptions of its general products.
- The Daily Perc assumes access to equity capital and financing sufficient to maintain its financial plan as shown in the tables.
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
Start-up Expenses
Legal $3,500
Office Equipment $4,950
Land Lease (2 month) $7,200
Vehicle Finance (2 months) $3,700
Website Preliminary Development & Hosting $5,600
Identity/Logos/Stationary$ 4,000
Other $5,000
Total Expenses $33,950
Sources of Funds
Planned Investment
Partner 1 $20,000
Partner 2 $20,000
Partner 3 $20,000
Partner 4 $20,000
Partner 5 $20,000
Partner 6 $20,000
Partner 7 $20,200
Partner 8 $20,250
Partner 9 $20,250
Partner 10 $21,250
Totaling $221,950
Statements
Projected Profit & Loss
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Revenue | $3,041,400 | $4,310,000 | $5,028,000 |
| Direct Costs | $1,186,146 | $1,680,900 | $1,960,920 |
| Gross Margin | $1,855,254 | $2,629,100 | $3,067,080 |
| Gross Margin % | 61% | 61% | 61% |
| Operating Expenses | |||
| Salaries & Wages | $492,400 | $723,384 | $1,036,233 |
| Employee Related Expenses | $98,480 | $144,677 | $207,246 |
| Rent | $16,000 | $19,200 | $19,200 |
| Insurance | $13,200 | $13,200 | $13,200 |
| Utilities | $5,000 | $6,000 | $6,000 |
| Phone / Internet | $1,380 | $1,380 | $1,380 |
| Marketing | $10,230 | $11,160 | $11,160 |
| Sales | $7,260 | $7,920 | $7,920 |
| Total Operating Expenses | $643,950 | $926,921 | $1,302,339 |
| Operating Income | $1,211,304 | $1,702,179 | $1,764,741 |
| 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 | $1,836,096 | $2,613,821 | $3,269,259 |
| Net Profit | $1,205,304 | $1,696,179 | $1,758,741 |
| Net Profit/Sales | 40% | 39% | 35% |
Projected Balance Sheet
| Starting Balances | 2018 | 2019 | 2020 | |
|---|---|---|---|---|
| Cash | $89,000 | $1,087,347 | $2,751,256 | $4,516,000 |
| Accounts Receivable | $0 | $0 | $0 | |
| Inventory | $15,000 | $280,149 | $326,822 | $326,817 |
| Other Current Assets | ||||
| Total Current Assets | $104,000 | $1,367,496 | $3,078,078 | $4,842,816 |
| Long-Term Assets | $84,000 | $84,000 | $84,000 | $84,000 |
| Accumulated Depreciation | ($6,000) | ($12,000) | ($18,000) | |
| Total Long-Term Assets | $84,000 | $78,000 | $72,000 | $66,000 |
| Total Assets | $188,000 | $1,445,496 | $3,150,078 | $4,908,816 |
| Accounts Payable | $52,192 | $60,595 | $60,593 | |
| Income Taxes Payable | $0 | $0 | $0 | |
| Sales Taxes Payable | $0 | $0 | $0 | |
| Short-Term Debt | ||||
| Prepaid Revenue | ||||
| Total Current Liabilities | $52,192 | $60,595 | $60,593 | |
| Long-Term Debt | ||||
| Long-Term Liabilities | ||||
| Total Liabilities | $52,192 | $60,595 | $60,593 | |
| Paid-In Capital | $221,950 | $221,950 | $221,950 | $221,950 |
| Retained Earnings | ($33,950) | ($33,950) | $1,171,354 | $2,867,533 |
| Earnings | $1,205,304 | $1,696,179 | $1,758,740 | |
| Total Owner’s Equity | $188,000 | $1,393,304 | $3,089,483 | $4,848,224 |
| Total Liabilities & Equity | $188,000 | $1,445,496 | $3,150,078 | $4,908,816 |
Projected Cash Flow Statement
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | $1,205,304 | $1,696,179 | $1,758,741 |
| Depreciation & Amortization | $6,000 | $6,000 | $6,000 |
| Change in Accounts Receivable | $0 | $0 | $0 |
| Change in Inventory | ($265,149) | ($46,673) | $5 |
| Change in Accounts Payable | $52,192 | $8,403 | ($2) |
| 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 | $998,347 | $1,663,909 | $1,764,743 |
| 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 | $89,000 | $1,087,347 | $2,751,256 |
| Net Change in Cash | $998,347 | $1,663,909 | $1,764,743 |
| Cash at End of Period | $1,087,347 | $2,751,256 | $4,516,000 |
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