FireRescue Depot
Financial Plan
The following sections outline important financial information.
Important Assumptions
The following table details relevant 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 |
Break-even Analysis
The Break-even Analysis indicates what will be needed in monthly revenue to reach the break-even point.

Break-even Analysis | |
Monthly Revenue Break-even | $22,851 |
Assumptions: | |
Average Percent Variable Cost | 39% |
Estimated Monthly Fixed Cost | $13,939 |
Projected Profit and Loss
The following table and charts illustrate the Projected Profit and Loss.




Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $141,300 | $348,947 | $415,643 |
Direct Cost of Sales | $55,107 | $136,089 | $162,101 |
Other Costs of Goods | $0 | $0 | $0 |
Total Cost of Sales | $55,107 | $136,089 | $162,101 |
Gross Margin | $86,193 | $212,858 | $253,542 |
Gross Margin % | 61.00% | 61.00% | 61.00% |
Expenses | |||
Payroll | $117,800 | $156,400 | $160,400 |
Sales and Marketing and Other Expenses | $5,300 | $3,600 | $3,600 |
Depreciation | $6,996 | $6,996 | $6,996 |
Rent | $12,000 | $13,000 | $14,000 |
Utilities | $3,000 | $3,000 | $3,000 |
Insurance | $3,000 | $3,000 | $3,000 |
Payroll Taxes | $17,670 | $23,460 | $24,060 |
Other | $1,500 | $1,500 | $1,500 |
Total Operating Expenses | $167,266 | $210,956 | $216,556 |
Profit Before Interest and Taxes | ($81,073) | $1,902 | $36,986 |
EBITDA | ($74,077) | $8,898 | $43,982 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $0 | $571 | $11,096 |
Net Profit | ($81,073) | $1,331 | $25,890 |
Net Profit/Sales | -57.38% | 0.38% | 6.23% |
Projected Cash Flow
The following chart and table show the Projected Cash Flow.

Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $141,300 | $348,947 | $415,643 |
Subtotal Cash from Operations | $141,300 | $348,947 | $415,643 |
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 | $0 | $0 |
Subtotal Cash Received | $141,300 | $348,947 | $415,643 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $117,800 | $156,400 | $160,400 |
Bill Payments | $83,729 | $182,926 | $219,222 |
Subtotal Spent on Operations | $201,529 | $339,326 | $379,622 |
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 | $201,529 | $339,326 | $379,622 |
Net Cash Flow | ($60,230) | $9,621 | $36,021 |
Cash Balance | $11,770 | $21,391 | $57,412 |
Projected Balance Sheet
The following table presents the Projected Balance Sheet.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $11,770 | $21,391 | $57,412 |
Other Current Assets | $6,500 | $6,500 | $6,500 |
Total Current Assets | $18,270 | $27,891 | $63,912 |
Long-term Assets | |||
Long-term Assets | $35,000 | $35,000 | $35,000 |
Accumulated Depreciation | $6,996 | $13,992 | $20,988 |
Total Long-term Assets | $28,004 | $21,008 | $14,012 |
Total Assets | $46,274 | $48,899 | $77,924 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $13,847 | $15,141 | $18,276 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $13,847 | $15,141 | $18,276 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $13,847 | $15,141 | $18,276 |
Paid-in Capital | $135,000 | $135,000 | $135,000 |
Retained Earnings | ($21,500) | ($102,573) | ($101,242) |
Earnings | ($81,073) | $1,331 | $25,890 |
Total Capital | $32,427 | $33,758 | $59,648 |
Total Liabilities and Capital | $46,274 | $48,899 | $77,924 |
Net Worth | $32,427 | $33,758 | $59,648 |
Business Ratios
The following table displays common Business Ratios for both FireRescue Depot and the industry. Our SIC industry class is Firefighting and related equipment – 3569.02.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | n.a. | 146.96% | 19.11% | -7.72% |
Percent of Total Assets | ||||
Other Current Assets | 14.05% | 13.29% | 8.34% | 21.77% |
Total Current Assets | 39.48% | 57.04% | 82.02% | 76.03% |
Long-term Assets | 60.52% | 42.96% | 17.98% | 23.97% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 29.92% | 30.96% | 23.45% | 32.40% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 16.93% |
Total Liabilities | 29.92% | 30.96% | 23.45% | 49.33% |
Net Worth | 70.08% | 69.04% | 76.55% | 50.67% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 61.00% | 61.00% | 61.00% | 34.31% |
Selling, General & Administrative Expenses | 118.38% | 60.62% | 54.77% | 20.80% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 0.62% |
Profit Before Interest and Taxes | -57.38% | 0.54% | 8.90% | 2.52% |
Main Ratios | ||||
Current | 1.32 | 1.84 | 3.50 | 2.09 |
Quick | 1.32 | 1.84 | 3.50 | 1.04 |
Total Debt to Total Assets | 29.92% | 30.96% | 23.45% | 4.53% |
Pre-tax Return on Net Worth | -250.02% | 5.63% | 62.01% | 54.20% |
Pre-tax Return on Assets | -175.20% | 3.89% | 47.46% | 9.89% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | -57.38% | 0.38% | 6.23% | n.a |
Return on Equity | -250.02% | 3.94% | 43.40% | n.a |
Activity Ratios | ||||
Accounts Payable Turnover | 7.05 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 29 | 27 | n.a |
Total Asset Turnover | 3.05 | 7.14 | 5.33 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.43 | 0.45 | 0.31 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $4,423 | $12,750 | $45,636 | n.a |
Interest Coverage | 0.00 | 0.00 | 0.00 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.33 | 0.14 | 0.19 | n.a |
Current Debt/Total Assets | 30% | 31% | 23% | n.a |
Acid Test | 1.32 | 1.84 | 3.50 | n.a |
Sales/Net Worth | 4.36 | 10.34 | 6.97 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |