The Discount Pharmacy
Financial Plan
Forecast
Key Assumptions
Key assumptions:
Of course our main assumption is legality. Regulations affecting our business can change very fast.
People appreciate:
- The mail in order option for their convenience
- Prescription at affordable prices
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
The Discount Pharmacy will incur the following start-up equipment costs:
- Office equipment including chairs, file cabinets, and desks.
- Front counter, storage bins, cash register.
- Three computer terminals.
- Main computer server with a laser printer, and back-up system.
- Software: Microsoft Office, QuickBooks Pro, drug interaction software, Physician Desk Reference software detailing side effects and other information pertinent to the customer.
- Assorted bottles, boxes, envelopes, etc. for dispensing and shipment.
- Scales for shipping.
- Telecom system.
- Storefront build-out.
- Start-up inventory.
- Rent, utilities, insurance.
Please note that these items will be used for more than one year and will therefore be labeled long-term assets, depreciated using G.A.A.P. approved straight-line depreciation.
Startup expenses – $24,100 listed as net earnings in dec 2017
Start-up Expenses
Legal $1,000
Rent $2,000
Utilities $400
Telecom System $400
Insurance $300
Storefront Build-out $15,000
Expensed Equipment $4,000
Website development $1,000
TOTAL START-UP EXPENSES $24,100
Sources of Funds
Planned Investment
Seed Funding $50,000
John $51,000
Friends and Family $82,100
Statements
Projected Profit & Loss
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Revenue | $646,000 | $781,000 | $970,000 |
| Direct Costs | $381,140 | $460,790 | $572,300 |
| Gross Margin | $264,860 | $320,210 | $397,700 |
| Gross Margin % | 41% | 41% | 41% |
| Operating Expenses | |||
| Salaries & Wages | $263,600 | $299,664 | $309,217 |
| Employee Related Expenses | $18,400 | $19,392 | $20,188 |
| Sales Expenses | $8,400 | $8,400 | $8,400 |
| Utilities | $3,600 | $3,600 | $3,600 |
| Insurance | $3,600 | $3,600 | $3,600 |
| Rent | $24,000 | $24,000 | $24,000 |
| Total Operating Expenses | $321,600 | $358,656 | $369,005 |
| Operating Income | ($56,740) | ($38,446) | $28,695 |
| Interest Incurred | |||
| Depreciation and Amortization | $850 | $850 | $850 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $0 | $0 | $0 |
| Total Expenses | $703,590 | $820,296 | $942,155 |
| Net Profit | ($57,590) | ($39,296) | $27,845 |
| Net Profit/Sales | (9%) | (5%) | 3% |
Projected Balance Sheet
| Starting Balances | 2020 | 2021 | 2022 | |
|---|---|---|---|---|
| Cash | $140,500 | $87,016 | $45,597 | $74,292 |
| Accounts Receivable | $0 | $0 | $0 | |
| Inventory | $10,000 | $76,798 | $95,384 | $95,383 |
| Other Current Assets | ||||
| Total Current Assets | $150,500 | $163,814 | $140,980 | $169,675 |
| Long-Term Assets | $8,500 | $8,500 | $8,500 | $8,500 |
| Accumulated Depreciation | ($850) | ($1,700) | ($2,550) | |
| Total Long-Term Assets | $8,500 | $7,650 | $6,800 | $5,950 |
| Total Assets | $159,000 | $171,464 | $147,780 | $175,625 |
| Accounts Payable | $70,054 | $85,666 | $85,666 | |
| Income Taxes Payable | $0 | $0 | $0 | |
| Sales Taxes Payable | $0 | $0 | $0 | |
| Short-Term Debt | ||||
| Prepaid Revenue | ||||
| Total Current Liabilities | $70,054 | $85,666 | $85,666 | |
| Long-Term Debt | ||||
| Long-Term Liabilities | ||||
| Total Liabilities | $70,054 | $85,666 | $85,666 | |
| Paid-In Capital | $183,100 | $183,100 | $183,100 | $183,100 |
| Retained Earnings | ($24,100) | ($24,100) | ($81,690) | ($120,986) |
| Earnings | ($57,590) | ($39,296) | $27,845 | |
| Total Owner’s Equity | $159,000 | $101,410 | $62,114 | $89,959 |
| Total Liabilities & Equity | $159,000 | $171,464 | $147,780 | $175,625 |
Projected Cash Flow Statement
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | ($57,590) | ($39,296) | $27,845 |
| Depreciation & Amortization | $850 | $850 | $850 |
| Change in Accounts Receivable | $0 | $0 | $0 |
| Change in Inventory | ($66,798) | ($18,586) | $1 |
| Change in Accounts Payable | $70,054 | $15,612 | $0 |
| Change in Income Tax Payable | $0 | $0 | $0 |
| Change in Sales Tax Payable | $0 | $0 | $0 |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | ($53,484) | ($41,420) | $28,695 |
| Investing & Financing | |||
| Assets Purchased or Sold | |||
| Net Cash from Investing | |||
| Investments Received | |||
| Dividends & Distributions | |||
| Change in Short-Term Debt | |||
| Change in Long-Term Debt | |||
| Net Cash from Financing | |||
| Cash at Beginning of Period | $140,500 | $87,016 | $45,597 |
| Net Change in Cash | ($53,484) | ($41,420) | $28,695 |
| Cash at End of Period | $87,016 | $45,597 | $74,292 |
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