Our financial picture is encouraging. If we can secure the levels of financial support we are now seeking, we will be able to improve on forecasted results.
7.1 Important Assumptions
The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are as follows:
7.2 Break-even Analysis
Our Break-even Analysis is based on true observed expenses over the last three years. Including payroll, rent, utilities, insurance, and basic marketing costs, our observation is that $80,000 is a realistic estimate.
7.3 Projected Profit and Loss
The company’s projected Income Statements are presented below.
7.4 Projected Cash Flow
The chart and table below outlines the projected annual Cash Flow for the first three years of this plan.
7.5 Projected Balance Sheet
Load Hog’s projected Balance Sheet is presented below.
7.6 Business Ratios
The company’s business ratios are presented below, the final column, Industry Profile, contains ratios for the motor vehicle parts and accessories industry, as determined by the standard industry classification (SIC) index code 3714, Motor Vehicle Parts and Accessories.