Bryan's Tutoring Service
Financial Plan
Forecast
Key assumptions
Our key assumptions are:
- In this education based society people to get degrees to get ahead.
- Not everyone learns the same.
- Different tools help different people ace the tests
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of funds
The tutoring business will need about $5,000 to start. Costs include gas and transportation to meet with students away from his home and occasional handouts. Bryan has reserved a room in his house and an office/meeting room for his business. Additionally, Bryan incurs Internet service provider fees, and every two years a new computer.
Sources of Funds
Bryan will use the money he made in his side job to make the tutoring his only source of income.
Statements
Projected Profit and Loss
2018 | 2019 | 2020 | |
---|---|---|---|
Revenue | $71,830 | $72,790 | $73,750 |
Direct Costs | $3,592 | $3,639 | $3,688 |
Gross Margin | $68,239 | $69,151 | $70,063 |
Gross Margin % | 95% | 95% | 95% |
Operating Expenses | |||
Rent | $36,000 | $36,000 | $36,000 |
Supplies | $9,600 | $9,600 | $9,600 |
Utilities | $1,437 | $1,455 | $1,475 |
Insurance | $2,400 | $2,400 | $2,400 |
Marketing | $718 | $728 | $738 |
Amortization of Other Current Assets | $0 | $0 | $0 |
Total Operating Expenses | $50,155 | $50,184 | $50,212 |
Operating Income | $18,084 | $18,966 | $19,850 |
Interest Incurred | |||
Depreciation and Amortization | |||
Gain or Loss from Sale of Assets | |||
Income Taxes | $2,713 | $2,845 | $2,977 |
Total Expenses | $56,459 | $56,669 | $56,877 |
Net Profit | $15,371 | $16,121 | $16,873 |
Net Profit/Sales | 21% | 22% | 23% |
Projected Balance Sheet
Starting Balances | 2018 | 2019 | 2020 | |
---|---|---|---|---|
Cash | $4,200 | $20,399 | $35,536 | $52,375 |
Accounts Receivable | $3,871 | $4,768 | $4,843 | |
Inventory | ||||
Other Current Assets | $300 | $300 | $300 | $300 |
Total Current Assets | $4,500 | $24,570 | $40,604 | $57,519 |
Long-Term Assets | ||||
Accumulated Depreciation | ||||
Total Long-Term Assets | ||||
Total Assets | $4,500 | $24,570 | $40,604 | $57,519 |
Accounts Payable | $135 | $3,953 | $4,035 | $4,041 |
Income Taxes Payable | $882 | $712 | $747 | |
Sales Taxes Payable | $0 | $0 | $0 | |
Short-Term Debt | ||||
Prepaid Revenue | ||||
Total Current Liabilities | $135 | $4,835 | $4,747 | $4,788 |
Long-Term Debt | ||||
Long-Term Liabilities | ||||
Total Liabilities | $135 | $4,835 | $4,747 | $4,788 |
Paid-In Capital | ||||
Retained Earnings | $4,365 | $4,365 | $19,736 | $35,857 |
Earnings | $15,371 | $16,122 | $16,873 | |
Total Owner’s Equity | $4,365 | $19,736 | $35,857 | $52,730 |
Total Liabilities & Equity | $4,500 | $24,570 | $40,604 | $57,519 |
Projected Cash Flow Statement
2018 | 2019 | 2020 | |
---|---|---|---|
Net Cash Flow from Operations | |||
Net Profit | $15,371 | $16,121 | $16,873 |
Depreciation & Amortization | $0 | $0 | $0 |
Change in Accounts Receivable | ($3,871) | ($897) | ($75) |
Change in Inventory | |||
Change in Accounts Payable | $3,818 | $82 | $7 |
Change in Income Tax Payable | $882 | ($170) | $35 |
Change in Sales Tax Payable | $0 | $0 | $0 |
Change in Prepaid Revenue | |||
Net Cash Flow from Operations | $16,199 | $15,136 | $16,840 |
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 | $4,200 | $20,399 | $35,536 |
Net Change in Cash | $16,199 | $15,136 | $16,840 |
Cash at End of Period | $20,399 | $35,536 | $52,375 |