Fosse Commercial Contractors LLC
Financial Plan
Forecast
Key Assumptions
We do not anticipate a significant increase in profits until our 3rd year as we will need time to penetrate our new market. We plan on basing dividend payouts on overall performance and health of the company and may decide to retain such earnings for future growth.
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
We will use the influx of capital to expand into a new market. There is a lot of opportunity to grow and be successful. We need to buy equipment and get experts and do the website to refocus our brand
Sources of Funds
We will be using our sales and cash from our already established business to expand and make our business more profitable.
Statements
Projected Profit & Loss
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Revenue | $949,145 | $1,484,000 | $2,034,000 |
| Direct Costs | $711,859 | $1,113,000 | $1,525,500 |
| Gross Margin | $237,286 | $371,000 | $508,500 |
| Gross Margin % | 25% | 25% | 25% |
| Operating Expenses | |||
| Salaries & Wages | $240,000 | $244,800 | $318,645 |
| Employee Related Expenses | $48,000 | $48,960 | $63,729 |
| Sales and Marketing Expense | $2,400 | $2,400 | $2,400 |
| Utilities | $1,380 | $1,380 | $1,380 |
| Insurance | $3,600 | $3,600 | $3,600 |
| Amortization of Other Current Assets | $0 | $0 | $0 |
| Total Operating Expenses | $295,380 | $301,140 | $389,754 |
| Operating Income | ($58,094) | $69,860 | $118,746 |
| Interest Incurred | $1,520 | $1,051 | $731 |
| Depreciation and Amortization | $1,774 | $1,775 | $1,774 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $0 | $1,412 | $29,060 |
| Total Expenses | $1,010,533 | $1,418,378 | $1,946,820 |
| Net Profit | ($61,388) | $65,622 | $87,180 |
| Net Profit/Sales | (6%) | 4% | 4% |
Projected Balance Sheet
| Starting Balances | 2020 | 2021 | 2022 | |
|---|---|---|---|---|
| Cash | $40,428 | $22,548 | $66,375 | $141,831 |
| Accounts Receivable | $23,157 | $21,675 | $30,917 | $42,375 |
| Inventory | $43,320 | $92,750 | $127,125 | $127,125 |
| Other Current Assets | $37,991 | $37,991 | $37,991 | $37,991 |
| Total Current Assets | $144,896 | $174,964 | $262,408 | $349,322 |
| Long-Term Assets | $20,421 | $20,421 | $20,421 | $20,421 |
| Accumulated Depreciation | ($8,000) | ($9,774) | ($11,549) | ($13,323) |
| Total Long-Term Assets | $12,421 | $10,647 | $8,872 | $7,098 |
| Total Assets | $157,317 | $185,610 | $271,280 | $356,420 |
| Accounts Payable | $25,400 | $92,432 | $126,463 | $126,463 |
| Income Taxes Payable | $21,677 | $0 | $1,412 | $7,268 |
| Sales Taxes Payable | ||||
| Short-Term Debt | $31,307 | $15,395 | $7,897 | $8,137 |
| Prepaid Revenue | ||||
| Total Current Liabilities | $78,384 | $107,827 | $135,771 | $141,868 |
| Long-Term Debt | $7,732 | $27,971 | $20,074 | $11,937 |
| Long-Term Liabilities | $7,732 | $27,971 | $20,074 | $11,937 |
| Total Liabilities | $86,116 | $135,797 | $155,845 | $153,804 |
| Paid-In Capital | $0 | $40,000 | $40,000 | $40,000 |
| Retained Earnings | $71,201 | $71,201 | $9,813 | $75,435 |
| Earnings | ($61,388) | $65,622 | $87,180 | |
| Total Owner’s Equity | $71,201 | $49,813 | $115,435 | $202,615 |
| Total Liabilities & Equity | $157,317 | $185,610 | $271,280 | $356,420 |
Projected Cash Flow Statement
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | ($61,388) | $65,622 | $87,180 |
| Depreciation & Amortization | $1,774 | $1,774 | $1,774 |
| Change in Accounts Receivable | $1,482 | ($9,242) | ($11,458) |
| Change in Inventory | ($49,430) | ($34,375) | $0 |
| Change in Accounts Payable | $67,032 | $34,031 | $0 |
| Change in Income Tax Payable | ($21,677) | $1,412 | $5,856 |
| Change in Sales Tax Payable | |||
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | ($62,207) | $59,223 | $83,353 |
| Investing & Financing | |||
| Assets Purchased or Sold | |||
| Net Cash from Investing | |||
| Investments Received | $40,000 | ||
| Dividends & Distributions | |||
| Change in Short-Term Debt | ($15,912) | ($7,498) | $240 |
| Change in Long-Term Debt | $20,239 | ($7,897) | ($8,137) |
| Net Cash from Financing | $44,327 | ($15,395) | ($7,897) |
| Cash at Beginning of Period | $40,428 | $22,548 | $66,375 |
| Net Change in Cash | ($17,880) | $43,828 | $75,456 |
| Cash at End of Period | $22,548 | $66,375 | $141,831 |
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