Basket of Goodies
Financial Plan
The following sections will outline the important financial data.
7.1 Important Assumptions
The following table details important financial assumptions for BOG.
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 | 25.42% | 25.00% | 25.42% |
Other | 0 | 0 | 0 |
7.2 Break-even Analysis
The Break-even Analysis indicates BOG will need to sell approximately $4,900 in baskets per month to break even.

Break-even Analysis | |
Monthly Revenue Break-even | $4,915 |
Assumptions: | |
Average Percent Variable Cost | 34% |
Estimated Monthly Fixed Cost | $3,223 |
7.3 Projected Profit and Loss
The following table will indicate projected profit and loss.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $43,545 | $93,319 | $109,910 |
Direct Cost of Sales | $14,989 | $26,328 | $34,022 |
Other | $0 | $0 | $0 |
Total Cost of Sales | $14,989 | $26,328 | $34,022 |
Gross Margin | $28,556 | $66,991 | $75,888 |
Gross Margin % | 65.58% | 71.79% | 69.05% |
Expenses | |||
Payroll | $31,500 | $39,000 | $39,000 |
Sales and Marketing and Other Expenses | $1,200 | $1,200 | $1,200 |
Depreciation | $655 | $672 | $672 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $0 | $0 | $0 |
Insurance | $600 | $600 | $600 |
Rent | $0 | $0 | $0 |
Payroll Taxes | $4,725 | $5,850 | $5,850 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $38,680 | $47,322 | $47,322 |
Profit Before Interest and Taxes | ($10,124) | $19,669 | $28,566 |
EBITDA | ($9,469) | $20,341 | $29,238 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $0 | $4,917 | $7,261 |
Net Profit | ($10,124) | $14,752 | $21,305 |
Net Profit/Sales | -23.25% | 15.81% | 19.38% |
7.4 Projected Cash Flow
The following chart and table will indicate projected cash flow.

Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $43,545 | $93,319 | $109,910 |
Subtotal Cash from Operations | $43,545 | $93,319 | $109,910 |
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 | $43,545 | $93,319 | $109,910 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $31,500 | $39,000 | $39,000 |
Bill Payments | $18,916 | $44,238 | $49,978 |
Subtotal Spent on Operations | $50,416 | $83,238 | $88,978 |
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 | $50,416 | $83,238 | $88,978 |
Net Cash Flow | ($6,871) | $10,081 | $20,932 |
Cash Balance | $15,779 | $25,860 | $46,792 |
7.5 Projected Balance Sheet
The following table will indicate the projected balance sheet.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $15,779 | $25,860 | $46,792 |
Inventory | $3,507 | $6,160 | $7,960 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $19,286 | $32,020 | $54,752 |
Long-term Assets | |||
Long-term Assets | $2,000 | $2,000 | $2,000 |
Accumulated Depreciation | $655 | $1,327 | $1,999 |
Total Long-term Assets | $1,345 | $673 | $1 |
Total Assets | $20,631 | $32,693 | $54,753 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $6,105 | $3,415 | $4,170 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $6,105 | $3,415 | $4,170 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $6,105 | $3,415 | $4,170 |
Paid-in Capital | $28,000 | $28,000 | $28,000 |
Retained Earnings | ($3,350) | ($13,474) | $1,278 |
Earnings | ($10,124) | $14,752 | $21,305 |
Total Capital | $14,526 | $29,278 | $50,584 |
Total Liabilities and Capital | $20,631 | $32,693 | $54,753 |
Net Worth | $14,526 | $29,278 | $50,584 |
7.6 Business Ratios
The ratios table compares BOG’s estimated growth, balance and profit ratios to the industry standard for Miscellaneous personal services (Standard Industry Code #7299).
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 114.30% | 17.78% | 17.90% |
Percent of Total Assets | ||||
Inventory | 17.00% | 18.84% | 14.54% | 4.60% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 37.10% |
Total Current Assets | 93.48% | 97.94% | 100.00% | 52.80% |
Long-term Assets | 6.52% | 2.06% | 0.00% | 47.20% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 29.59% | 10.45% | 7.62% | 33.90% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 28.00% |
Total Liabilities | 29.59% | 10.45% | 7.62% | 61.90% |
Net Worth | 70.41% | 89.55% | 92.38% | 38.10% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 65.58% | 71.79% | 69.05% | 0.00% |
Selling, General & Administrative Expenses | 88.87% | 55.98% | 49.55% | 72.70% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 2.20% |
Profit Before Interest and Taxes | -23.25% | 21.08% | 25.99% | 4.00% |
Main Ratios | ||||
Current | 3.16 | 9.38 | 13.13 | 1.81 |
Quick | 2.58 | 7.57 | 11.22 | 1.33 |
Total Debt to Total Assets | 29.59% | 10.45% | 7.62% | 61.90% |
Pre-tax Return on Net Worth | -69.69% | 67.18% | 56.47% | 6.30% |
Pre-tax Return on Assets | -49.07% | 60.16% | 52.17% | 16.60% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | -23.25% | 15.81% | 19.38% | n.a |
Return on Equity | -69.69% | 50.38% | 42.12% | n.a |
Activity Ratios | ||||
Inventory Turnover | 10.80 | 5.45 | 4.82 | n.a |
Accounts Payable Turnover | 4.10 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 42 | 27 | n.a |
Total Asset Turnover | 2.11 | 2.85 | 2.01 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.42 | 0.12 | 0.08 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $13,181 | $28,605 | $50,582 | n.a |
Interest Coverage | 0.00 | 0.00 | 0.00 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.47 | 0.35 | 0.50 | n.a |
Current Debt/Total Assets | 30% | 10% | 8% | n.a |
Acid Test | 2.58 | 7.57 | 11.22 | n.a |
Sales/Net Worth | 3.00 | 3.19 | 2.17 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |