Take Five Sports Bar and Grill
Financial Plan
Forecast
Key Assumptions
The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are:
- We assume a slow-growth economy, without major recession.
- We assume access to equity capital and financing sufficient to maintain our financial plan as shown in the tables.
- We assume the continued popularity of sports in America and the growing demand for sports theme venues.
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
Expansion plans are already underway. The majority of the $625000 will be us buying long term assets such as store locations and equipment etc. We will also have starting inventory and plates and silverware etc. Once this location is up and running we open another location etc.
Sources of Funds
The owners will be putting $625,000 from the already established business into the expansion.
Statements
Projected Profit & Loss
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Revenue | $1,757,615 | $1,910,000 | $2,047,000 |
| Direct Costs | $615,165 | $668,500 | $716,450 |
| Gross Margin | $1,142,450 | $1,241,500 | $1,330,550 |
| Gross Margin % | 65% | 65% | 65% |
| Operating Expenses | |||
| Salaries & Wages | $475,200 | $636,192 | $673,646 |
| Employee Related Expenses | $85,360 | $111,082 | $112,755 |
| Rent | $60,000 | $60,000 | $60,000 |
| Insurance | $36,000 | $36,000 | $36,000 |
| Promotion | $15,000 | ||
| Marketing | $12,000 | $12,000 | $12,000 |
| Utilities | $24,000 | $24,000 | $24,000 |
| Amortization of Other Current Assets | $0 | $0 | $0 |
| Total Operating Expenses | $707,560 | $879,274 | $918,401 |
| Operating Income | $434,890 | $362,226 | $412,149 |
| Interest Incurred | $1,592 | $129 | |
| Depreciation and Amortization | $22,289 | $22,289 | $22,289 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $0 | $0 | $0 |
| Total Expenses | $1,346,606 | $1,570,192 | $1,657,141 |
| Net Profit | $411,009 | $339,808 | $389,859 |
| Net Profit/Sales | 23% | 18% | 19% |
Projected Balance Sheet
| Starting Balances | 2018 | 2019 | 2020 | |
|---|---|---|---|---|
| Cash | $67,136 | $408,913 | $758,510 | $1,170,088 |
| Accounts Receivable | $9,450 | $7,958 | $8,529 | |
| Inventory | $15,197 | $55,708 | $59,704 | $59,704 |
| Other Current Assets | $17,310 | $17,310 | $17,310 | $17,310 |
| Total Current Assets | $99,643 | $491,382 | $843,483 | $1,255,631 |
| Long-Term Assets | $475,495 | $475,495 | $475,495 | $475,495 |
| Accumulated Depreciation | ($29,713) | ($52,002) | ($74,291) | ($96,580) |
| Total Long-Term Assets | $445,782 | $423,493 | $401,204 | $378,915 |
| Total Assets | $545,425 | $914,875 | $1,244,687 | $1,634,546 |
| Accounts Payable | $20,040 | $8,185 | $8,484 | $8,484 |
| Income Taxes Payable | $0 | $0 | $0 | |
| Sales Taxes Payable | $0 | $0 | $0 | |
| Short-Term Debt | $29,704 | $10,296 | ||
| Prepaid Revenue | ||||
| Total Current Liabilities | $49,744 | $18,481 | $8,484 | $8,484 |
| Long-Term Debt | $10,296 | $0 | $0 | $0 |
| Long-Term Liabilities | $10,296 | $0 | $0 | $0 |
| Total Liabilities | $60,040 | $18,481 | $8,484 | $8,484 |
| Paid-In Capital | $625,000 | $625,000 | $625,000 | $625,000 |
| Retained Earnings | ($139,615) | ($139,615) | $271,394 | $611,202 |
| Earnings | $411,009 | $339,808 | $389,859 | |
| Total Owner’s Equity | $485,385 | $896,394 | $1,236,202 | $1,626,061 |
| Total Liabilities & Equity | $545,425 | $914,875 | $1,244,687 | $1,634,546 |
Projected Cash Flow Statement
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | $411,009 | $339,808 | $389,859 |
| Depreciation & Amortization | $22,289 | $22,289 | $22,289 |
| Change in Accounts Receivable | ($9,450) | $1,492 | ($571) |
| Change in Inventory | ($40,511) | ($3,996) | $0 |
| Change in Accounts Payable | ($11,855) | $299 | $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 | $371,481 | $359,893 | $411,578 |
| Investing & Financing | |||
| Assets Purchased or Sold | |||
| Net Cash from Investing | |||
| Investments Received | |||
| Dividends & Distributions | |||
| Change in Short-Term Debt | ($19,408) | ($10,296) | |
| Change in Long-Term Debt | ($10,296) | $0 | $0 |
| Net Cash from Financing | ($29,704) | ($10,296) | $0 |
| Cash at Beginning of Period | $67,136 | $408,913 | $758,510 |
| Net Change in Cash | $341,777 | $349,597 | $411,578 |
| Cash at End of Period | $408,913 | $758,510 | $1,170,088 |
By 
