Mike's Trucking Service
Financial Plan
Forecast
Key Assumptions
Our assumptions:
- Trucks are the best way to get food and supplies
- The market will pay the prices needed to support the trucks
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Sources of Funds
This business is owner operated and owner funded.
Statements
Projected Profit & Loss
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Revenue | $204,000 | $298,000 | $486,000 |
| Direct Costs | $81,600 | $119,200 | $194,400 |
| Gross Margin | $122,400 | $178,800 | $291,600 |
| Gross Margin % | 60% | 60% | 60% |
| Operating Expenses | |||
| Salaries & Wages | $79,200 | $132,192 | $187,271 |
| Employee Related Expenses | $15,840 | $26,438 | $37,455 |
| Sales and Marketing | $2,380 | $1,500 | $1,500 |
| Utilities | $2,400 | $2,400 | $2,400 |
| Insurance | $4,800 | $4,800 | $4,800 |
| Total Operating Expenses | $104,620 | $167,330 | $233,426 |
| Operating Income | $17,780 | $11,470 | $58,174 |
| Interest Incurred | $1,949 | $1,183 | $950 |
| Depreciation and Amortization | $3,600 | $3,600 | $3,600 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $1,835 | $1,003 | $8,043 |
| Total Expenses | $193,604 | $292,316 | $440,418 |
| Net Profit | $10,396 | $5,684 | $45,582 |
| Net Profit/Sales | 5% | 2% | 9% |
Projected Balance Sheet
| Starting Balances | 2020 | 2021 | 2022 | |
|---|---|---|---|---|
| Cash | $105,000 | $91,370 | $93,711 | $131,140 |
| Accounts Receivable | $10,000 | $26,400 | $29,800 | $48,600 |
| Inventory | ||||
| Other Current Assets | ||||
| Total Current Assets | $115,000 | $117,770 | $123,511 | $179,740 |
| Long-Term Assets | $40,000 | $40,000 | $40,000 | $40,000 |
| Accumulated Depreciation | ($4,000) | ($7,600) | ($11,200) | ($14,800) |
| Total Long-Term Assets | $36,000 | $32,400 | $28,800 | $25,200 |
| Total Assets | $151,000 | $150,170 | $152,311 | $204,940 |
| Accounts Payable | $3,500 | $14,167 | $15,828 | $25,134 |
| Income Taxes Payable | $1,672 | $254 | $2,013 | |
| Sales Taxes Payable | $0 | $0 | $0 | |
| Short-Term Debt | $23,565 | $3,785 | $4,018 | $4,266 |
| Prepaid Revenue | ||||
| Total Current Liabilities | $27,065 | $19,624 | $20,100 | $31,413 |
| Long-Term Debt | $21,435 | $17,650 | $13,632 | $9,366 |
| Long-Term Liabilities | $21,435 | $17,650 | $13,632 | $9,366 |
| Total Liabilities | $48,500 | $37,274 | $33,732 | $40,778 |
| Paid-In Capital | $105,000 | $105,000 | $105,000 | $105,000 |
| Retained Earnings | ($2,500) | ($2,500) | $7,896 | $13,580 |
| Earnings | $10,396 | $5,683 | $45,582 | |
| Total Owner’s Equity | $102,500 | $112,896 | $118,580 | $164,162 |
| Total Liabilities & Equity | $151,000 | $150,170 | $152,311 | $204,940 |
Projected Cash Flow Statement
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | $10,396 | $5,684 | $45,582 |
| Depreciation & Amortization | $3,600 | $3,600 | $3,600 |
| Change in Accounts Receivable | ($16,400) | ($3,400) | ($18,800) |
| Change in Inventory | |||
| Change in Accounts Payable | $10,667 | $1,661 | $9,306 |
| Change in Income Tax Payable | $1,672 | ($1,418) | $1,759 |
| Change in Sales Tax Payable | $0 | $0 | $0 |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | $9,935 | $6,126 | $41,447 |
| Investing & Financing | |||
| Assets Purchased or Sold | |||
| Net Cash from Investing | |||
| Investments Received | |||
| Dividends & Distributions | |||
| Change in Short-Term Debt | ($19,780) | $233 | $248 |
| Change in Long-Term Debt | ($3,785) | ($4,018) | ($4,266) |
| Net Cash from Financing | ($23,565) | ($3,785) | ($4,018) |
| Cash at Beginning of Period | $105,000 | $91,370 | $93,711 |
| Net Change in Cash | ($13,630) | $2,341 | $37,429 |
| Cash at End of Period | $91,370 | $93,711 | $131,140 |
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