Corporate Retreat Professionals
Financial Plan
Forecast
Key Assumptions
Our key assumptions are:
- Personnel are the difference between customers choosing one company over the other, training is key
- happy bonded coworkers mean longer hours and better products
- there are a set number of events we need to breakeven. more will make us a profit.
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
Start-up Expenses
Legal 1,000
Stationery etc. $300
Brochures $300
Consultants $300
Insurance $200
Rent $1,000
Office equipment $300
TOTAL START-UP EXPENSES$3,400
In addition we will be having $5,000 of long term assets. The remainder of the $50,000 will be used as cash to help fund the operations.
Sources of Funds
We will be getting $50,000 from the owner.
Statements
Projected Profit & Loss
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Revenue | $969,000 | $1,240,000 | $1,355,000 |
| Direct Costs | $290,700 | $372,000 | $406,500 |
| Gross Margin | $678,300 | $868,000 | $948,500 |
| Gross Margin % | 70% | 70% | 70% |
| Operating Expenses | |||
| Salaries & Wages | $232,800 | $308,880 | $310,593 |
| Employee Related Expenses | $46,560 | $61,776 | $62,119 |
| Rent | $30,000 | $30,000 | $30,000 |
| Marketing expenses | $48,450 | $62,000 | $67,750 |
| Total Operating Expenses | $357,810 | $462,656 | $470,462 |
| Operating Income | $320,490 | $405,344 | $478,038 |
| Interest Incurred | $1,526 | $357 | $96 |
| Depreciation and Amortization | $1,250 | $1,250 | $1,250 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $47,657 | $60,561 | $71,503 |
| Total Expenses | $698,943 | $896,824 | $949,811 |
| Net Profit | $270,057 | $343,176 | $405,189 |
| Net Profit/Sales | 28% | 28% | 30% |
Projected Balance Sheet
| Starting Balances | 2018 | 2019 | 2020 | |
|---|---|---|---|---|
| Cash | $41,600 | $224,158 | $537,029 | $928,803 |
| Accounts Receivable | $182,000 | $206,667 | $225,834 | |
| Inventory | ||||
| Other Current Assets | ||||
| Total Current Assets | $41,600 | $406,158 | $743,696 | $1,154,637 |
| Long-Term Assets | $5,000 | $5,000 | $5,000 | $5,000 |
| Accumulated Depreciation | ($1,250) | ($2,500) | ($3,750) | |
| Total Long-Term Assets | $5,000 | $3,750 | $2,500 | $1,250 |
| Total Assets | $46,600 | $409,908 | $746,196 | $1,155,887 |
| Accounts Payable | $14,200 | $19,333 | $21,010 | |
| Income Taxes Payable | $17,525 | $15,147 | $17,875 | |
| Sales Taxes Payable | $0 | $0 | $0 | |
| Short-Term Debt | $0 | $11,526 | $1,883 | $1,979 |
| Prepaid Revenue | ||||
| Total Current Liabilities | $0 | $43,251 | $36,363 | $40,865 |
| Long-Term Debt | ||||
| Long-Term Liabilities | ||||
| Total Liabilities | $0 | $43,251 | $36,363 | $40,865 |
| Paid-In Capital | $50,000 | $100,000 | $100,000 | $100,000 |
| Retained Earnings | ($3,400) | ($3,400) | $266,657 | $609,833 |
| Earnings | $270,057 | $343,176 | $405,189 | |
| Total Owner’s Equity | $46,600 | $366,657 | $709,833 | $1,115,022 |
| Total Liabilities & Equity | $46,600 | $409,908 | $746,196 | $1,155,887 |
Projected Cash Flow Statement
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | $270,057 | $343,176 | $405,189 |
| Depreciation & Amortization | $1,250 | $1,250 | $1,250 |
| Change in Accounts Receivable | ($182,000) | ($24,667) | ($19,167) |
| Change in Inventory | |||
| Change in Accounts Payable | $14,200 | $5,133 | $1,677 |
| Change in Income Tax Payable | $17,525 | ($2,378) | $2,728 |
| Change in Sales Tax Payable | $0 | $0 | $0 |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | $121,032 | $322,514 | $391,677 |
| Investing & Financing | |||
| Assets Purchased or Sold | |||
| Net Cash from Investing | |||
| Investments Received | $50,000 | ||
| Dividends & Distributions | |||
| Change in Short-Term Debt | $11,526 | ($9,643) | $96 |
| Change in Long-Term Debt | |||
| Net Cash from Financing | $61,526 | ($9,643) | $96 |
| Cash at Beginning of Period | $41,600 | $224,158 | $537,029 |
| Net Change in Cash | $182,558 | $312,871 | $391,773 |
| Cash at End of Period | $224,158 | $537,029 | $928,803 |
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