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Furniture Manufacturing icon Retail Furniture Manufacturer Business Plan

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The House of Pine

Executive Summary

Producing and selling furniture is a $12 billion industry.  The focus of the industry is on the affluent customer who can spend upwards to $3,000 on furniture purchases.  In Richmond, there are fifteen furniture stores that are competing for these customers with deep pockets.  Those customers who can’t afford these high prices are left with a poor selection of inferior products.

In the Richmond Metro area, there are approximately 50,000 residents with modest incomes that do not have a furniture store to caters to their needs for affordable quality furniture. This income demographic has grown tremendously over the past five years but has not been responded to by the area furniture stores. Targeting customers with modest incomes is good business. They are expected to make up half of metro population by 2020–making them the fastest-growing segment of the city’s housing market.

There are three modest-income housing renovation projects underway in Richmond with a combined total of 1,500 units that will be sold as affordable housing.

As the Richmond Metro section revives, The House of Pine will offer customized, ready-to-finish pine furniture that’s hand made and surprisingly affordable. We offer:

  • Truly Custom Furniture: An unfinished furniture piece that is crafted for the customer. We’ll customize any piece or create a whole new piece from a customer’s rough sketch. 
  • Heirloom Quality Furniture: The furniture is made to last for generations. It’s hand crafted, so each piece is unique.
  • Handmade from Quality Pine: Every piece is made by a professional craftsman from the finest pine available. Every piece of pine is checked for grain and texture before it’s used.
Retail furniture manufacturer business plan, executive summary chart image

1.1 Mission

The House of Pine’s Mission is simple. The customer gets what he/she wants; furniture (one piece or a whole house full) that fits the customer’s space, taste, budget and style preference, from top to bottom!

1.2 Keys to Success

The Keys to Success for The House of Pine are as follows:

  • Offer our customers affordable quality furniture that will last.
  • Customize any piece as requested by a customer.
  • And if customizing a piece won’t quite work, create a whole new piece from scratch, exactly to the customer’s specifications.
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Company Summary

The House of Pine will offer customized, ready-to-finish pine furniture that’s hand made and surprisingly affordable. Our target customers are young families and young adults with modest incomes who are looking for the same selection and quality that the high-end customer receives. Each piece is handcrafted from the finest pine and built to last for generations.

2.1 Company Ownership

The House of Pine is owned by Richard Putnam. Richard has over 10 years of experience in furniture manufacturing.

2.2 Company Locations and Facilities

The House of Pine will be centrally located in the industrial section of the Richmond Metro area.

2.3 Start-up Summary

The House of Pine’s start-up costs consists mostly of furniture manufacturing equipment and transport containers. Richard Putnam will invest $50,000.  In addition, he will secure a $130,000 loan.

Retail furniture manufacturer business plan, company summary chart image

Start-up
Requirements
Start-up Expenses
Legal $1,000
Stationery etc. $200
Insurance $1,000
Rent $2,000
Expensed Equipment $60,000
Total Start-up Expenses $64,200
Start-up Assets
Cash Required $5,800
Start-up Inventory $50,000
Other Current Assets $0
Long-term Assets $60,000
Total Assets $115,800
Total Requirements $180,000
Start-up Funding
Start-up Expenses to Fund $64,200
Start-up Assets to Fund $115,800
Total Funding Required $180,000
Assets
Non-cash Assets from Start-up $110,000
Cash Requirements from Start-up $5,800
Additional Cash Raised $0
Cash Balance on Starting Date $5,800
Total Assets $115,800
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $130,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $130,000
Capital
Planned Investment
Richard Putnam $50,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $50,000
Loss at Start-up (Start-up Expenses) ($64,200)
Total Capital ($14,200)
Total Capital and Liabilities $115,800
Total Funding $180,000

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Products and Services

The House of Pine will offer wood products for the bedroom, living and dining room, and the storage room:

  • Beds;
  • Dressers;
  • Chest;
  • Armoires;
  • Entertainment centers;
  • Bookcases;
  • Tables;
  • Chairs;
  • Benches.
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Market Analysis Summary

In the Richmond Metro area, there are approximately 50,000 residents with modest incomes.  They are expected to make up half of the metro population by 2020–making them the fastest-growing segment of the city’s housing market.

It is estimated that the Richmond Metro area will need 10,000 units of affordable housing in the next seven years.  Currently, there are three renovation projects that represent 1,500 new housing units.  Next year, two new construction projects will be completed offering another 1,000 units of affordable housing.  Another 1,000 unit project, to be located in the Garden Meadows section downtown, is currently in the planning stages.

There are changes occuring around the State University, located downtown, that will also impact the revival of the Richmond Metro area.  Two off-campus housing projects will be completed mid-year that will add an additional 2,000 family housing units to the university area.

4.1 Market Segmentation

The growth of affordable housing in the Richmond Metro area is critical to the success of The House of Pine.

We will aggressively market our target customers who live in the Metro area:

  • Young working families;
  • Students;
  • Young adults.
Retail furniture manufacturer business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Young Working Families 12% 3,000 3,360 3,763 4,215 4,721 12.00%
Students 10% 5,000 5,500 6,050 6,655 7,321 10.00%
Young Adults 10% 10,000 11,000 12,100 13,310 14,641 10.00%
Total 10.34% 18,000 19,860 21,913 24,180 26,683 10.34%

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Strategy and Implementation Summary

The House of Pine will focus on the modest income furniture customer who live in the Richmond Metro area.

5.1 Competitive Edge

Most of Richmond’s fifteen furniture stores are dispersed throughout the city adjacent to affluent or suburban communities. The stores downtown are high end and offer no affordable products to the Metro residents.

The primary reason for the price of the furniture is the type of wood that is used. A bedroom set made of pine can cost a customer $400.  The same set made in oak or maple will cost $800. The profits are higher by focusing on the more expensive wood.  When using pine, many manufacturers improve their profits by using cheaper construction techniques.  The resulting poor quality of these products have added to a popular misconception that pine is an inferior wood.

The Richmond furniture stores offer a very limited selection of styles in pine.  Most products are selected to maximize the store’s profit, not the customer’s satisfaction, since it is believed the customer has few options.

The House of Pine will build its furniture to last generations and will offer the customer all the popular styles.

5.2 Sales Strategy

We will advertise in the university daily student newspaper as well as the Metro area advertising flyer.  In the advertisements for the store opening, we will have a 20% off coupon. We will continue this discount for the first month of operation.

The metro area also has six community organizations that send out weekly flyers to all community residents. We will advertise in the these flyers.

5.2.1 Sales Forecast

The following is the sales forecast for the three years.

Retail furniture manufacturer business plan, strategy and implementation summary chart image

Retail furniture manufacturer business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Sales
Furniture $964,000 $1,000,000 $1,050,000
Other $0 $0 $0
Total Sales $964,000 $1,000,000 $1,050,000
Direct Cost of Sales Year 1 Year 2 Year 3
Furniture $432,000 $430,000 $450,000
Other $0 $0 $0
Subtotal Direct Cost of Sales $432,000 $430,000 $450,000

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Management Summary

The store’s owner, Richard Putnam, has worked in the furniture manufacturing industry for over ten years.  This experience began at Ingram’s Fine Furniture, where he worked for five years. Within three years, he reached the position of shift manager. Most recently, Richard was the operations manager at Wasserman Furniture Manufacturing.

Richard is an excellent staff supervisor and will do very well in managing the staff of The House of Pine.

6.1 Personnel Plan

The House of Pine will have the following staff members:

  • Manager;
  • Assistant manager;
  • Office manager/accountant;
  • Checkers (1.5);
  • Production staff (5);
  • Stockers (1.5);
Personnel Plan
Year 1 Year 2 Year 3
Manager $36,000 $40,000 $45,000
Assistant Manager $36,000 $39,000 $43,000
Office Manager/Bookkeeper $36,000 $39,000 $42,000
Checkers $32,400 $35,500 $40,000
Production Staff $120,000 $130,000 $140,000
Stockers $39,600 $43,000 $46,000
Total People 9 9 9
Total Payroll $300,000 $326,500 $356,000

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Financial Plan

The following is the Financial plan for The House of Pine.

7.1 Break-even Analysis

The following table and chart show our monthly sales break-even point.

Retail furniture manufacturer business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $69,767
Assumptions:
Average Percent Variable Cost 45%
Estimated Monthly Fixed Cost $38,502

7.2 Projected Profit and Loss

The following table and charts highlight the projected profit and loss for three years.

Retail furniture manufacturer business plan, financial plan chart image

Retail furniture manufacturer business plan, financial plan chart image

Retail furniture manufacturer business plan, financial plan chart image

Retail furniture manufacturer business plan, financial plan chart image

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $964,000 $1,000,000 $1,050,000
Direct Cost of Sales $432,000 $430,000 $450,000
Other Production Expenses $0 $0 $0
Total Cost of Sales $432,000 $430,000 $450,000
Gross Margin $532,000 $570,000 $600,000
Gross Margin % 55.19% 57.00% 57.14%
Expenses
Payroll $300,000 $326,500 $356,000
Sales and Marketing and Other Expenses $60,000 $60,000 $60,000
Depreciation $11,424 $11,424 $11,424
Leased Equipment $0 $0 $0
Utilities $9,600 $9,600 $9,600
Insurance $12,000 $12,000 $12,000
Rent $24,000 $24,000 $24,000
Payroll Taxes $45,000 $48,975 $53,400
Other $0 $0 $0
Total Operating Expenses $462,024 $492,499 $526,424
Profit Before Interest and Taxes $69,976 $77,501 $73,576
EBITDA $81,400 $88,925 $85,000
Interest Expense $11,917 $10,001 $8,002
Taxes Incurred $17,418 $20,250 $19,672
Net Profit $40,641 $47,250 $45,902
Net Profit/Sales 4.22% 4.72% 4.37%

7.3 Projected Cash Flow

The following table and chart highlight the projected cash flow for three years.

Retail furniture manufacturer business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $723,000 $750,000 $787,500
Cash from Receivables $198,158 $248,400 $260,278
Subtotal Cash from Operations $921,158 $998,400 $1,047,778
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 $921,158 $998,400 $1,047,778
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $300,000 $326,500 $356,000
Bill Payments $539,935 $637,773 $637,056
Subtotal Spent on Operations $839,935 $964,273 $993,056
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 $19,992 $19,992 $19,992
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $859,927 $984,265 $1,013,048
Net Cash Flow $61,231 $14,136 $34,730
Cash Balance $67,031 $81,167 $115,897

7.4 Projected Balance Sheet

The following table highlights the projected balance sheet for three years.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $67,031 $81,167 $115,897
Accounts Receivable $42,842 $44,442 $46,664
Inventory $51,700 $51,461 $53,854
Other Current Assets $0 $0 $0
Total Current Assets $161,573 $177,069 $216,415
Long-term Assets
Long-term Assets $60,000 $60,000 $60,000
Accumulated Depreciation $11,424 $22,848 $34,272
Total Long-term Assets $48,576 $37,152 $25,728
Total Assets $210,149 $214,221 $242,143
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $73,700 $50,514 $52,526
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $73,700 $50,514 $52,526
Long-term Liabilities $110,008 $90,016 $70,024
Total Liabilities $183,708 $140,530 $122,550
Paid-in Capital $50,000 $50,000 $50,000
Retained Earnings ($64,200) ($23,559) $23,691
Earnings $40,641 $47,250 $45,902
Total Capital $26,441 $73,691 $119,593
Total Liabilities and Capital $210,149 $214,221 $242,143
Net Worth $26,441 $73,691 $119,593

7.5 Business Ratios

Business ratios for the years of this plan are shown below.  Industry profile ratios based on the Standard Industrial Classification (SIC) code 5712, Furniture Stores, are shown for comparison.

The following is an explanation of the plans divergence with industry ratio profile.

  • Sales Growth – will start below the industry average but will be closer to the average after the third year of operation.
  • Accounts Receivable – is slightly below average due to the low use of credit for purchases (25%).
  • Inventory – is below the industry average because 20% of the furniture will be built to order.
  • Long Term Assets, Long Term Liabilities, and Expense of Sales – are higher because The House Of Pine builds furniture on site.
Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 3.73% 5.00% 6.20%
Percent of Total Assets
Accounts Receivable 20.39% 20.75% 19.27% 21.00%
Inventory 24.60% 24.02% 22.24% 38.80%
Other Current Assets 0.00% 0.00% 0.00% 21.70%
Total Current Assets 76.88% 82.66% 89.37% 81.50%
Long-term Assets 23.12% 17.34% 10.63% 18.50%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 35.07% 23.58% 21.69% 44.90%
Long-term Liabilities 52.35% 42.02% 28.92% 13.70%
Total Liabilities 87.42% 65.60% 50.61% 58.60%
Net Worth 12.58% 34.40% 49.39% 41.40%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 55.19% 57.00% 57.14% 37.60%
Selling, General & Administrative Expenses 50.97% 52.28% 52.77% 20.80%
Advertising Expenses 6.22% 6.00% 5.71% 4.40%
Profit Before Interest and Taxes 7.26% 7.75% 7.01% 1.60%
Main Ratios
Current 2.19 3.51 4.12 1.82
Quick 1.49 2.49 3.09 0.76
Total Debt to Total Assets 87.42% 65.60% 50.61% 58.60%
Pre-tax Return on Net Worth 219.58% 91.60% 54.83% 3.80%
Pre-tax Return on Assets 27.63% 31.51% 27.08% 9.20%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 4.22% 4.72% 4.37% n.a
Return on Equity 153.70% 64.12% 38.38% n.a
Activity Ratios
Accounts Receivable Turnover 5.63 5.63 5.63 n.a
Collection Days 57 64 63 n.a
Inventory Turnover 10.73 8.34 8.55 n.a
Accounts Payable Turnover 8.33 12.17 12.17 n.a
Payment Days 27 37 29 n.a
Total Asset Turnover 4.59 4.67 4.34 n.a
Debt Ratios
Debt to Net Worth 6.95 1.91 1.02 n.a
Current Liab. to Liab. 0.40 0.36 0.43 n.a
Liquidity Ratios
Net Working Capital $87,873 $126,555 $163,889 n.a
Interest Coverage 5.87 7.75 9.19 n.a
Additional Ratios
Assets to Sales 0.22 0.21 0.23 n.a
Current Debt/Total Assets 35% 24% 22% n.a
Acid Test 0.91 1.61 2.21 n.a
Sales/Net Worth 36.46 13.57 8.78 n.a
Dividend Payout 0.00 0.00 0.00 n.a

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Appendix

Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
Furniture 0% $50,000 $60,000 $70,000 $75,000 $85,000 $90,000 $100,000 $85,000 $90,000 $85,000 $79,000 $95,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $50,000 $60,000 $70,000 $75,000 $85,000 $90,000 $100,000 $85,000 $90,000 $85,000 $79,000 $95,000
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Furniture $20,000 $22,000 $31,000 $34,000 $40,000 $42,000 $45,000 $38,000 $41,000 $37,000 $35,000 $47,000
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $20,000 $22,000 $31,000 $34,000 $40,000 $42,000 $45,000 $38,000 $41,000 $37,000 $35,000 $47,000
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Manager 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Assistant Manager 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Office Manager/Bookkeeper 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Checkers 0% $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700
Production Staff 0% $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Stockers 0% $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300
Total People 9 9 9 9 9 9 9 9 9 9 9 9
Total Payroll $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000

General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $50,000 $60,000 $70,000 $75,000 $85,000 $90,000 $100,000 $85,000 $90,000 $85,000 $79,000 $95,000
Direct Cost of Sales $20,000 $22,000 $31,000 $34,000 $40,000 $42,000 $45,000 $38,000 $41,000 $37,000 $35,000 $47,000
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $20,000 $22,000 $31,000 $34,000 $40,000 $42,000 $45,000 $38,000 $41,000 $37,000 $35,000 $47,000
Gross Margin $30,000 $38,000 $39,000 $41,000 $45,000 $48,000 $55,000 $47,000 $49,000 $48,000 $44,000 $48,000
Gross Margin % 60.00% 63.33% 55.71% 54.67% 52.94% 53.33% 55.00% 55.29% 54.44% 56.47% 55.70% 50.53%
Expenses
Payroll $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Sales and Marketing and Other Expenses $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Depreciation $952 $952 $952 $952 $952 $952 $952 $952 $952 $952 $952 $952
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Insurance $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Rent $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Payroll Taxes 15% $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502
Profit Before Interest and Taxes ($8,502) ($502) $498 $2,498 $6,498 $9,498 $16,498 $8,498 $10,498 $9,498 $5,498 $9,498
EBITDA ($7,550) $450 $1,450 $3,450 $7,450 $10,450 $17,450 $9,450 $11,450 $10,450 $6,450 $10,450
Interest Expense $1,069 $1,056 $1,042 $1,028 $1,014 $1,000 $986 $972 $958 $945 $931 $917
Taxes Incurred ($2,871) ($467) ($163) $441 $1,645 $2,549 $4,654 $2,258 $2,862 $2,566 $1,370 $2,574
Net Profit ($6,700) ($1,090) ($381) $1,029 $3,839 $5,949 $10,858 $5,268 $6,678 $5,987 $3,197 $6,007
Net Profit/Sales -13.40% -1.82% -0.54% 1.37% 4.52% 6.61% 10.86% 6.20% 7.42% 7.04% 4.05% 6.32%

Pro Forma Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash Received
Cash from Operations
Cash Sales $37,500 $45,000 $52,500 $56,250 $63,750 $67,500 $75,000 $63,750 $67,500 $63,750 $59,250 $71,250
Cash from Receivables $0 $417 $12,583 $15,083 $17,542 $18,833 $21,292 $22,583 $24,875 $21,292 $22,458 $21,200
Subtotal Cash from Operations $37,500 $45,417 $65,083 $71,333 $81,292 $86,333 $96,292 $86,333 $92,375 $85,042 $81,708 $92,450
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $37,500 $45,417 $65,083 $71,333 $81,292 $86,333 $96,292 $86,333 $92,375 $85,042 $81,708 $92,450
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Bill Payments $358 $11,368 $30,171 $54,228 $51,669 $61,759 $60,506 $65,809 $46,566 $60,270 $48,627 $48,604
Subtotal Spent on Operations $25,358 $36,368 $55,171 $79,228 $76,669 $86,759 $85,506 $90,809 $71,566 $85,270 $73,627 $73,604
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $27,024 $38,034 $56,837 $80,894 $78,335 $88,425 $87,172 $92,475 $73,232 $86,936 $75,293 $75,270
Net Cash Flow $10,476 $7,383 $8,246 ($9,561) $2,957 ($2,091) $9,120 ($6,142) $19,143 ($1,894) $6,415 $17,180
Cash Balance $16,276 $23,659 $31,905 $22,344 $25,301 $23,209 $32,329 $26,187 $45,330 $43,436 $49,851 $67,031
Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances
Current Assets
Cash $5,800 $16,276 $23,659 $31,905 $22,344 $25,301 $23,209 $32,329 $26,187 $45,330 $43,436 $49,851 $67,031
Accounts Receivable $0 $12,500 $27,083 $32,000 $35,667 $39,375 $43,042 $46,750 $45,417 $43,042 $43,000 $40,292 $42,842
Inventory $50,000 $30,000 $24,200 $34,100 $37,400 $44,000 $46,200 $49,500 $41,800 $45,100 $40,700 $38,500 $51,700
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $55,800 $58,776 $74,942 $98,005 $95,410 $108,676 $112,451 $128,579 $113,404 $133,472 $127,136 $128,643 $161,573
Long-term Assets
Long-term Assets $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000
Accumulated Depreciation $0 $952 $1,904 $2,856 $3,808 $4,760 $5,712 $6,664 $7,616 $8,568 $9,520 $10,472 $11,424
Total Long-term Assets $60,000 $59,048 $58,096 $57,144 $56,192 $55,240 $54,288 $53,336 $52,384 $51,432 $50,480 $49,528 $48,576
Total Assets $115,800 $117,824 $133,038 $155,149 $151,602 $163,916 $166,739 $181,915 $165,788 $184,904 $177,616 $178,171 $210,149
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $0 $10,390 $28,360 $52,518 $49,608 $59,749 $58,289 $64,273 $44,544 $58,648 $47,039 $46,062 $73,700
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $10,390 $28,360 $52,518 $49,608 $59,749 $58,289 $64,273 $44,544 $58,648 $47,039 $46,062 $73,700
Long-term Liabilities $130,000 $128,334 $126,668 $125,002 $123,336 $121,670 $120,004 $118,338 $116,672 $115,006 $113,340 $111,674 $110,008
Total Liabilities $130,000 $138,724 $155,028 $177,520 $172,944 $181,419 $178,293 $182,611 $161,216 $173,654 $160,379 $157,736 $183,708
Paid-in Capital $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Retained Earnings ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200)
Earnings $0 ($6,700) ($7,790) ($8,171) ($7,142) ($3,303) $2,646 $13,504 $18,772 $25,450 $31,437 $34,634 $40,641
Total Capital ($14,200) ($20,900) ($21,990) ($22,371) ($21,342) ($17,503) ($11,554) ($696) $4,572 $11,250 $17,237 $20,434 $26,441
Total Liabilities and Capital $115,800 $117,824 $133,038 $155,149 $151,602 $163,916 $166,739 $181,915 $165,788 $184,904 $177,616 $178,171 $210,149
Net Worth ($14,200) ($20,900) ($21,990) ($22,371) ($21,342) ($17,503) ($11,554) ($696) $4,572 $11,250 $17,237 $20,434 $26,441

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