Premiere Electric
Financial Plan
Forecast
Key Assumptions
Our key assumptions are:
- Buildings need electricity
- Electricity wires fray and need repair
- As technology gets more advanced it needs more electricity to accomplish its tasks
- Tech boom never dies, just changes. We will always have customers looking for services
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
Our Startup Expenses are:
Stationery etc.$100
Brochures$200
Start-up Inventory$10,000
TOTAL $10,300
Sources of Funds
We will be getting $69,000. Robin will invest $47,000 and we will get a $22,000 long term loan to cover the inventory as well as some machinery.
Statements
Projected Profit & Loss
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Revenue | $382,200 | $450,000 | $516,000 |
| Direct Costs | $248,430 | $292,500 | $335,400 |
| Gross Margin | $133,770 | $157,500 | $180,600 |
| Gross Margin % | 35% | 35% | 35% |
| Operating Expenses | |||
| Salaries & Wages | $48,000 | $48,960 | $49,939 |
| Employee Related Expenses | $9,600 | $9,792 | $9,988 |
| Leased Equipment | $12,000 | $12,000 | $12,000 |
| Utilities | $7,800 | $7,800 | $7,800 |
| Rent | $36,000 | $36,000 | $36,000 |
| Sales | $7,644 | $9,000 | $10,320 |
| Marketing | $7,644 | $9,000 | $10,320 |
| Total Operating Expenses | $128,688 | $132,552 | $136,367 |
| Operating Income | $5,082 | $24,948 | $44,233 |
| Interest Incurred | $794 | $600 | $398 |
| Depreciation and Amortization | $7,333 | $7,334 | $7,333 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $0 | $0 | $0 |
| Total Expenses | $385,245 | $432,985 | $479,499 |
| Net Profit | ($3,045) | $17,015 | $36,501 |
| Net Profit/Sales | (1%) | 4% | 7% |
Projected Balance Sheet
| Starting Balances | 2018 | 2019 | 2020 | |
|---|---|---|---|---|
| Cash | $36,700 | $13,095 | $33,137 | $68,169 |
| Accounts Receivable | $39,300 | $37,500 | $43,000 | |
| Inventory | $24,375 | $27,950 | $27,950 | |
| Other Current Assets | ||||
| Total Current Assets | $36,700 | $76,770 | $98,587 | $139,119 |
| Long-Term Assets | $22,000 | $22,000 | $22,000 | $22,000 |
| Accumulated Depreciation | ($7,333) | ($14,667) | ($22,000) | |
| Total Long-Term Assets | $22,000 | $14,667 | $7,333 | $0 |
| Total Assets | $58,700 | $91,437 | $105,921 | $139,119 |
| Accounts Payable | $40,532 | $42,945 | $44,788 | |
| Income Taxes Payable | $0 | $0 | $0 | |
| Sales Taxes Payable | $0 | $0 | $0 | |
| Short-Term Debt | $4,750 | $4,944 | $5,145 | $5,355 |
| Prepaid Revenue | ||||
| Total Current Liabilities | $4,750 | $45,476 | $48,091 | $50,143 |
| Long-Term Debt | $17,250 | $12,306 | $7,160 | $1,805 |
| Long-Term Liabilities | $17,250 | $12,306 | $7,160 | $1,805 |
| Total Liabilities | $22,000 | $57,782 | $55,251 | $51,948 |
| Paid-In Capital | $47,000 | $47,000 | $47,000 | $47,000 |
| Retained Earnings | ($10,300) | ($10,300) | ($13,345) | $3,670 |
| Earnings | ($3,045) | $17,015 | $36,501 | |
| Total Owner’s Equity | $36,700 | $33,655 | $50,670 | $87,171 |
| Total Liabilities & Equity | $58,700 | $91,437 | $105,921 | $139,119 |
Projected Cash Flow Statement
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | ($3,045) | $17,015 | $36,501 |
| Depreciation & Amortization | $7,333 | $7,333 | $7,333 |
| Change in Accounts Receivable | ($39,300) | $1,800 | ($5,500) |
| Change in Inventory | ($24,375) | ($3,575) | $0 |
| Change in Accounts Payable | $40,532 | $2,413 | $1,842 |
| 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 | ($18,855) | $24,986 | $40,177 |
| Investing & Financing | |||
| Assets Purchased or Sold | |||
| Net Cash from Investing | |||
| Investments Received | |||
| Dividends & Distributions | |||
| Change in Short-Term Debt | $194 | $201 | $210 |
| Change in Long-Term Debt | ($4,944) | ($5,145) | ($5,355) |
| Net Cash from Financing | ($4,750) | ($4,944) | ($5,145) |
| Cash at Beginning of Period | $36,700 | $13,095 | $33,137 |
| Net Change in Cash | ($23,605) | $20,042 | $35,031 |
| Cash at End of Period | $13,095 | $33,137 | $68,169 |
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