Sephats Tours
Financial Plan
Forecast
Key Assumptions
The financial plan depends on important assumptions. From the beginning, we recognize that payment terms and hence collection days are critical, but not a factor we can influence easily. At least we are planning on the problem, and dealing with it. Interest rates, tax rates, and personnel burden are based on conservative assumptions.
Some of the more important underlying assumptions are:
- We assume a strong economy, without major recession.
- We assume, of course, that there are no unforeseen changes in economic policy to make our service immediately obsolete or unwanted.
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
Thus far we have purchased a Mercedes Benz mini bus to run tours for our customers, for P167,00, which was purchased with P32,000 down and the rest on a 5-year 6% loan. Other start-up expenses covered include legal costs, business plan compilation, license costs and related expenses.
START-UP REQUIREMENTS
Start-up Expenses
- Legal P1,000
- Logo, branding. P500
- Website, collaterals P700
- Consultants P1,200
- Insurance P800
- Rent P500
- Other P300
TOTAL START-UP EXPENSES P5,000
Sources of Funds
We have 2 investors, investor 1 is investing P100,000, investor 2 is investing 102,000.
Statements
Projected Profit & Loss
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Revenue | P678,000 | P802,000 | P916,000 |
| Direct Costs | P325,440 | P384,960 | P439,680 |
| Gross Margin | P352,560 | P417,040 | P476,320 |
| Gross Margin % | 52% | 52% | 52% |
| Operating Expenses | |||
| Salaries & Wages | P136,800 | P163,140 | P177,497 |
| Employee Related Expenses | P27,360 | P32,628 | P35,499 |
| Rent | P14,400 | P14,400 | P14,400 |
| Sales and Marketing | P101,700 | P120,300 | P137,400 |
| Insurance | P12,000 | P12,000 | P12,000 |
| Travel | P1,800 | P1,800 | P1,800 |
| Miscellaneous | P2,400 | P2,400 | P2,400 |
| Maintenance | P12,000 | P12,000 | P12,000 |
| Startup Expenses | P5,000 | ||
| Total Operating Expenses | P313,460 | P358,668 | P392,996 |
| Operating Income | P39,100 | P58,372 | P83,324 |
| Interest Incurred | P7,451 | P5,978 | P4,416 |
| Depreciation and Amortization | P16,700 | P16,700 | P16,700 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | P2,242 | P5,354 | P9,332 |
| Total Expenses | P665,293 | P771,660 | P863,124 |
| Net Profit | P12,707 | P30,340 | P52,876 |
| Net Profit/Sales | 2% | 4% | 6% |
Projected Balance Sheet
| Starting Balances | 2020 | 2021 | 2022 | |
|---|---|---|---|---|
| Cash | P25,365 | P46,323 | P57,282 | |
| Accounts Receivable | P43,500 | P40,100 | P45,800 | |
| Inventory | ||||
| Other Current Assets | ||||
| Total Current Assets | P68,865 | P86,423 | P103,082 | |
| Long-Term Assets | P167,000 | P167,000 | P167,000 | |
| Accumulated Depreciation | (P16,700) | (P33,400) | (P50,100) | |
| Total Long-Term Assets | P150,300 | P133,600 | P116,900 | |
| Total Assets | P219,165 | P220,023 | P219,982 | |
| Accounts Payable | P26,085 | P22,827 | P25,820 | |
| Income Taxes Payable | P2,242 | P1,360 | P2,355 | |
| Sales Taxes Payable | P0 | P0 | P0 | |
| Short-Term Debt | P23,869 | P25,342 | P26,905 | P28,564 |
| Prepaid Revenue | ||||
| Total Current Liabilities | P23,869 | P53,669 | P51,092 | P56,739 |
| Long-Term Debt | P111,131 | P85,789 | P58,885 | P30,321 |
| Long-Term Liabilities | P111,131 | P85,789 | P58,885 | P30,321 |
| Total Liabilities | P135,000 | P139,458 | P109,977 | P87,060 |
| Paid-In Capital | P202,000 | P202,000 | P202,000 | |
| Retained Earnings | (P135,000) | (P135,000) | (P122,293) | (P121,953) |
| Earnings | P12,707 | P30,340 | P52,876 | |
| Total Owner’s Equity | (P135,000) | P79,707 | P110,047 | P132,923 |
| Total Liabilities & Equity | P0 | P219,165 | P220,023 | P219,982 |
Projected Cash Flow Statement
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | P12,707 | P30,340 | P52,876 |
| Depreciation & Amortization | P16,700 | P16,700 | P16,700 |
| Change in Accounts Receivable | (P43,500) | P3,400 | (P5,700) |
| Change in Inventory | |||
| Change in Accounts Payable | P26,085 | (P3,258) | P2,993 |
| Change in Income Tax Payable | P2,242 | (P882) | P995 |
| Change in Sales Tax Payable | P0 | P0 | P0 |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | P14,234 | P46,300 | P67,864 |
| Investing & Financing | |||
| Assets Purchased or Sold | (P167,000) | ||
| Net Cash from Investing | (P167,000) | ||
| Investments Received | P202,000 | ||
| Dividends & Distributions | (P30,000) | ||
| Change in Short-Term Debt | P1,472 | P1,563 | P1,659 |
| Change in Long-Term Debt | (P25,342) | (P26,905) | (P28,564) |
| Net Cash from Financing | P178,131 | (P25,342) | (P56,905) |
| Cash at Beginning of Period | P0 | P25,365 | P46,323 |
| Net Change in Cash | P25,365 | P20,958 | P10,959 |
| Cash at End of Period | P25,365 | P46,323 | P57,282 |
By 
