Beanisimo Coffee
Financial Plan
The following sections will outline important financial information.
8.1 Important Assumptions
The following table details important Financial Assumptions.
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 10.00% | 10.00% | 10.00% |
| Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
| Tax Rate | 30.00% | 30.00% | 30.00% |
| Other | 0 | 0 | 0 |
8.2 Break-even Analysis
The Break-even Analysis indicates that approximately $19,000 will be needed in monthly revenue to reach the break-even point.
| Break-even Analysis | |
| Monthly Revenue Break-even | $19,170 |
| Assumptions: | |
| Average Percent Variable Cost | 33% |
| Estimated Monthly Fixed Cost | $12,844 |
8.3 Projected Profit and Loss
The following table will indicate Projected Profit and Loss.
| Pro Forma Profit and Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $82,395 | $312,809 | $355,454 |
| Direct Cost of Sales | $27,190 | $103,227 | $117,300 |
| Other Costs of Goods | $0 | $0 | $0 |
| Total Cost of Sales | $27,190 | $103,227 | $117,300 |
| Gross Margin | $55,205 | $209,582 | $238,154 |
| Gross Margin % | 67.00% | 67.00% | 67.00% |
| Expenses | |||
| Payroll | $83,940 | $112,080 | $124,080 |
| Sales and Marketing and Other Expenses | $8,394 | $11,208 | $12,408 |
| Depreciation | $15,600 | $15,600 | $15,600 |
| Rent | $14,400 | $14,400 | $14,400 |
| Utilities | $7,800 | $7,800 | $7,800 |
| Insurance | $9,000 | $9,000 | $9,000 |
| Payroll Taxes | $12,591 | $16,812 | $18,612 |
| Other | $2,400 | $2,400 | $2,400 |
| Total Operating Expenses | $154,125 | $189,300 | $204,300 |
| Profit Before Interest and Taxes | ($98,920) | $20,282 | $33,854 |
| EBITDA | ($83,320) | $35,882 | $49,454 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $0 | $6,085 | $10,156 |
| Net Profit | ($98,920) | $14,198 | $23,698 |
| Net Profit/Sales | -120.06% | 4.54% | 6.67% |
8.4 Projected Cash Flow
The following table and chart will detail information regarding Cash Flow.
| Pro Forma Cash Flow | |||
| Year 1 | Year 2 | Year 3 | |
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $20,599 | $78,202 | $88,863 |
| Cash from Receivables | $43,327 | $182,958 | $257,031 |
| Subtotal Cash from Operations | $63,926 | $261,161 | $345,895 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $20,000 | $0 |
| Subtotal Cash Received | $63,926 | $281,161 | $345,895 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $83,940 | $112,080 | $124,080 |
| Bill Payments | $77,036 | $178,464 | $193,666 |
| Subtotal Spent on Operations | $160,976 | $290,544 | $317,746 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| Subtotal Cash Spent | $160,976 | $290,544 | $317,746 |
| Net Cash Flow | ($97,050) | ($9,383) | $28,148 |
| Cash Balance | $18,950 | $9,567 | $37,715 |
8.5 Projected Balance Sheet
The following table displays the Projected Balance Sheet.
| Pro Forma Balance Sheet | |||
| Year 1 | Year 2 | Year 3 | |
| Assets | |||
| Current Assets | |||
| Cash | $18,950 | $9,567 | $37,715 |
| Accounts Receivable | $18,469 | $70,118 | $79,677 |
| Inventory | $4,722 | $17,928 | $20,372 |
| Other Current Assets | $0 | $0 | $0 |
| Total Current Assets | $42,141 | $97,612 | $137,763 |
| Long-term Assets | |||
| Long-term Assets | $78,000 | $78,000 | $78,000 |
| Accumulated Depreciation | $15,600 | $31,200 | $46,800 |
| Total Long-term Assets | $62,400 | $46,800 | $31,200 |
| Total Assets | $104,541 | $144,412 | $168,963 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $9,461 | $15,135 | $15,988 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| Subtotal Current Liabilities | $9,461 | $15,135 | $15,988 |
| Long-term Liabilities | $0 | $0 | $0 |
| Total Liabilities | $9,461 | $15,135 | $15,988 |
| Paid-in Capital | $205,000 | $225,000 | $225,000 |
| Retained Earnings | ($11,000) | ($109,920) | ($95,723) |
| Earnings | ($98,920) | $14,198 | $23,698 |
| Total Capital | $95,080 | $129,277 | $152,975 |
| Total Liabilities and Capital | $104,541 | $144,412 | $168,963 |
| Net Worth | $95,080 | $129,277 | $152,975 |
8.6 Business Ratios
The following table shows important Business Ratios, specific to Beanisimo as well as the industry as a whole.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | Industry Profile | |
| Sales Growth | 0.00% | 279.64% | 13.63% | -2.25% |
| Percent of Total Assets | ||||
| Accounts Receivable | 17.67% | 48.55% | 47.16% | 20.65% |
| Inventory | 4.52% | 12.41% | 12.06% | 16.07% |
| Other Current Assets | 0.00% | 0.00% | 0.00% | 21.35% |
| Total Current Assets | 40.31% | 67.59% | 81.53% | 58.07% |
| Long-term Assets | 59.69% | 32.41% | 18.47% | 41.93% |
| Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 9.05% | 10.48% | 9.46% | 21.87% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 19.28% |
| Total Liabilities | 9.05% | 10.48% | 9.46% | 41.15% |
| Net Worth | 90.95% | 89.52% | 90.54% | 58.85% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 67.00% | 67.00% | 67.00% | 32.41% |
| Selling, General & Administrative Expenses | 187.06% | 62.46% | 60.33% | 21.65% |
| Advertising Expenses | 0.00% | 0.00% | 0.00% | 1.81% |
| Profit Before Interest and Taxes | -120.06% | 6.48% | 9.52% | 1.84% |
| Main Ratios | ||||
| Current | 4.45 | 6.45 | 8.62 | 2.24 |
| Quick | 3.95 | 5.27 | 7.34 | 1.31 |
| Total Debt to Total Assets | 9.05% | 10.48% | 9.46% | 3.37% |
| Pre-tax Return on Net Worth | -104.04% | 15.69% | 22.13% | 45.32% |
| Pre-tax Return on Assets | -94.62% | 14.04% | 20.04% | 6.17% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | -120.06% | 4.54% | 6.67% | n.a |
| Return on Equity | -104.04% | 10.98% | 15.49% | n.a |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 3.35 | 3.35 | 3.35 | n.a |
| Collection Days | 55 | 69 | 103 | n.a |
| Inventory Turnover | 10.91 | 9.12 | 6.13 | n.a |
| Accounts Payable Turnover | 9.14 | 12.17 | 12.17 | n.a |
| Payment Days | 27 | 24 | 29 | n.a |
| Total Asset Turnover | 0.79 | 2.17 | 2.10 | n.a |
| Debt Ratios | ||||
| Debt to Net Worth | 0.10 | 0.12 | 0.10 | n.a |
| Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
| Liquidity Ratios | ||||
| Net Working Capital | $32,680 | $82,477 | $121,775 | n.a |
| Interest Coverage | 0.00 | 0.00 | 0.00 | n.a |
| Additional Ratios | ||||
| Assets to Sales | 1.27 | 0.46 | 0.48 | n.a |
| Current Debt/Total Assets | 9% | 10% | 9% | n.a |
| Acid Test | 2.00 | 0.63 | 2.36 | n.a |
| Sales/Net Worth | 0.87 | 2.42 | 2.32 | n.a |
| Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
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