Financial Plan

The following is the financial plan for Tsunami Pizza.

7.1 Break-even Analysis

The following table and chart show the Break-even Analysis.

Break-even Analysis
Monthly Revenue Break-even $12,803
Assumptions:
Average Percent Variable Cost 15%
Estimated Monthly Fixed Cost $10,925

7.2 Projected Profit and Loss

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

Pro Forma Profit and Loss

Year 1
Sales
$176,500
Direct Cost of Sales
$25,900
Other Production Expenses
$0
Total Cost of Sales
$25,900
Gross Margin
$150,600
Gross Margin %
85.33%
Expenses
Payroll
$90,000
Sales and Marketing and Other Expenses $8,000
Depreciation
$1,596
Leased Equipment
$0
Utilities
$6,000
Insurance
$0

Year 2

Year 3

$196,000
$31,800
$0
$31,800
$164,200
83.78%

$219,000
$38,400
$0
$38,400
$180,600
82.47%

$96,000
$8,000
$1,600
$0
$6,000
$0

$105,000
$8,000
$1,600
$0
$6,000
$0

Rent
Payroll Taxes
Other
Total Operating Expenses
Profit Before Interest and Taxes
EBITDA
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales

$12,000
$13,500
$0
$131,096
$19,504
$21,100
$0
$5,851
$13,653
7.74%

$12,000
$14,400
$0
$138,000
$26,200
$27,800
$0
$7,860
$18,340
9.36%

$12,000
$15,750
$0
$148,350
$32,250
$33,850
$0
$9,675
$22,575
10.31%

7.3 Projected Cash Flow

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

Pro Forma Cash Flow

Year 1
Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending

$176,500
$176,500

Year 2

$196,000
$196,000

Year 3

$219,000
$219,000

$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$176,500
$196,000
$219,000
Year 1
Year 2
Year 3
$90,000

$96,000

$105,000

Bill Payments
$63,520
Subtotal Spent on Operations
$153,520
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
$0
Principal Repayment of Current Borrowing $0
Other Liabilities Principal Repayment
$0
Long-term Liabilities Principal Repayment $0
Purchase Other Current Assets
$0
Purchase Long-term Assets
$0
Dividends
$0
Subtotal Cash Spent
$153,520
Net Cash Flow
$22,980
Cash Balance
$27,980

$81,211
$177,211

$89,022
$194,022

$0
$0
$0
$0
$0
$0
$0
$177,211
$18,789
$46,769

$0
$0
$0
$0
$0
$0
$0
$194,022
$24,978
$71,747

7.4 Projected Balance Sheet

The following table is the projected balance sheet for three years
Pro Forma Balance Sheet
Year 1
Assets
Current Assets
Cash
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Long-term Liabilities
Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

7.5 Business Ratios

$27,980
$0
$27,980

Year 2

$46,769
$0
$46,769

Year 3

$71,747
$0
$71,747

$8,000
$8,000
$8,000
$1,596
$3,196
$4,796
$6,404
$4,804
$3,204
$34,384 $51,573 $74,951
Year 1
Year 2
Year 3
$7,731
$0
$0
$7,731
$0
$7,731
$50,000
($37,000)
$13,653
$26,653
$34,384
$26,653

$6,580
$0
$0
$6,580
$0
$6,580
$50,000
($23,347)
$18,340
$44,993
$51,573
$44,993

$7,383
$0
$0
$7,383
$0
$7,383
$50,000
($5,007)
$22,575
$67,568
$74,951
$67,568

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard
Industrial Classification (SIC) code 5812, Eating Places, are shown for comparison.
Ratio Analysis
Year 1
Year 2
Year 3 Industry Profile
Sales Growth
0.00%
11.05%
11.73%
7.60%
Percent of Total Assets
Other Current Assets
0.00%
0.00%
0.00%
35.60%
Total Current Assets
81.37%
90.69%
95.73%
43.70%
Long-term Assets
18.63%
9.31%
4.27%
56.30%
Total Assets
100.00%
100.00%
100.00%
100.00%
Current Liabilities
22.48%
12.76%
9.85%
32.70%
Long-term Liabilities
0.00%
0.00%
0.00%
28.50%
Total Liabilities
22.48%
12.76%
9.85%
61.20%
Net Worth
77.52%
87.24%
90.15%
38.80%
Percent of Sales
Sales
100.00%
100.00%
100.00%
100.00%
Gross Margin
85.33%
83.78%
82.47%
60.50%
Selling, General & Administrative Expenses 77.59%
74.42%
72.16%
39.80%
Advertising Expenses
4.53%
4.08%
3.65%
3.20%
Profit Before Interest and Taxes
11.05%
13.37%
14.73%
0.70%
Main Ratios
Current
3.62
7.11
9.72
0.98
Quick
3.62
7.11
9.72
0.65
Total Debt to Total Assets
22.48%
12.76%
9.85%
61.20%
Pre-tax Return on Net Worth
73.18%
58.23%
47.73%
1.70%
Pre-tax Return on Assets
56.72%
50.80%
43.03%
4.30%
Additional Ratios
Year 1
Year 2
Year 3
Net Profit Margin
7.74%
9.36%
10.31%
n.a
Return on Equity
51.22%
40.76%
33.41%
n.a
Activity Ratios
Accounts Payable Turnover
9.22
12.17
12.17
n.a
Payment Days
27
33
28
n.a
Total Asset Turnover
5.13
3.80
2.92
n.a
Debt Ratios
Debt to Net Worth
0.29
0.15
0.11
n.a
Current Liab. toLiab.
1.00
1.00
1.00
n.a
Liquidity Ratios
Net Working Capital
$20,249
$40,189
$64,364
n.a
Interest Coverage
0.00
0.00
0.00
n.a
Additional Ratios
Assets to Sales
0.19
0.26
0.34
n.a
Current Debt/Total Assets
22%
13%
10%
n.a
Acid Test
3.62
7.11
9.72
n.a
Sales/Net Worth
6.62
4.36
3.24
n.a
Dividend Payout
0.00
0.00
0.00
n.a

Steps on Financial Plan

1. Set goals. Personal financial planning revolves around goals. Consider what you want your lifestyle to be like in the present, near
future and distant future, then create an outline of your goals that is comprehensive enough to cover every facet of your life:
2. Organize your financial records. Create a filing system of your tax returns, bank account statements, insurance policy information,
contracts, receipts, wills, deeds, titles, bills, investment plan statements, retirement account statements, pay stubs, employee
benefits statements, mortgages and any other type of document that is related to your financial life.
3. Create a preliminary budget. Your budget is a starting point for determining how you will reach your financial goals, as it allows
you to identify and assess your spending habits. Write out all of your current monthly expenses, as well as your current monthly
income.
4. Determine which spending habits you need to change. Using your budget as a reference, identify unnecessary monthly expenses
so that you can redirect any wasted money into accomplishing the goals outlined in your personal financial plan.
5. Estimate your projected income. Take into account your future plans for increasing your income, as well as your timeline for those
projected changes. Consider the following 3 income-producing methods when forecasting your income, and decide which you
intend to employ:
6. Set a time frame for accomplishing your goals. Separate goals into categories, starting with present goals and dividing the rest into
immediate future (within 1 year), near future (within 5 years), extended future (within 10 years) and distant future (onward to
retirement) goals.
7. Create an extended budget. This budget is different from your preliminary budget in that it uses your projected income and takes
into account what your future goals will cost you. Be sure to include necessary expenses as well as luxury expenses.
8. Devise an income strategy that will sustain your goals. Taking your projected income, time frame and goal expenses into account,
calculate how much of your income you need to dedicate toward each goal category on a monthly and yearly basis. This amount
may fluctuate in correlation with your future income projections.
9. Commit to your financial plan. It is not enough just to write your plans on paper. You must commit to adhering to the steps you
outline for yourself if you want your personal financial plan to be effective.
10. Reframe your financial plan as necessary. Remember that personal financial planning is a goal - not a process - and that you may
need to update it as your life's circumstances change. If you find that your income is not enough to accommodate your goals, then
formulate a plan to create more income through career, business and/or investments, or reset your goals within a more realistic
framework.
Plan Outline

1.0 Executive Summary

o Mission
o Objectives
2.0 Company Summary
3.0 Services
4.0 Market Analysis Summary
5.0 Strategy and Implementation Summary
6.0 Management Summary
7.0 Financial Plan
Appendix

10 Ways to Speed Up PC
1. Uninstall unwanted software.
PCs often come preloaded with software you'll never use. And what's worse, some of these programs run
background processes at startup even though you're not using them. To get rid of all this dreck, open Control
Panels' Programs and Features page, hunt trough the list of installed software, and uninstall those that are
obviously not desirable, while being careful to leave stuff your system and hardware needs, things whose
Publisher is listed as PC maker's name, a peripheral's company name, or Microsoft. Unfortunately, Microsoft
removed the column showing how often you use programs in this list.

2. Disable startup programs.

This one is for slightly braver users. Click on the Start button and type msconfig. The System Configuration
dialog will pop up. Switch to its Services tab, hunt down entries with dubious names from dubious sources.
Leave anything from Microsoft, your PC maker, or well-known software sources like Apple or Google. Again,
those fake speed-up utilities are good candidate for unchecking in this list. You could also uncheck any software
from reliable sources that you just don't need running all the time. For example, you don't really need to run
Adobe Reader at startupyou can just run it when you actually need to view a PDF. Switch to MSConfig's
Startup tab and do the same. Listed here will likely be more familiar application names, and the Manufacturer
column makes the software's source clear. Changing anything in System Configuration will require a reboot to
take effect.

3. Run Disk Cleanup.

Windows includes a built-in disk de-cluttering tool: Disk Cleanup. This scans your system for unnecessary large
files such as program installers, temporary Internet files, log files and more. On my system, the largest amount
of data by far was taken up by Temporary File2.5GBthat could mean the difference between a sluggish and
a peppy PC. The folks behind the PC TuneUp utilities have posted a good case for disk space affecting
performance, even calling it the #1 Performance Killer!

4. Run Third-Party cleanup software.

There are a whole lot of third-party programs out there offering to speed up and clean up your PC. My advice:
Stay as far away from those as you can, unless you've read a review of the software in a reliable source like
PCMag, Cnet, or PCWorld.

5. Run Action Center's Troubleshooter.

Action Center is represented by a flag icon in your PC's system traythose small icons at the end of the
taskbar. You click that or just type Action Center in the Start button's search box. Action Center looks at error
reports for errors you've encountered, and check s for soultions. It can identify out-of-date hardware drivers and
software updates that may speed up your PC. From the Action Center control panel, drop down the
Maintenance section, and click the Check for solutions link.

6. Clean Out Malware.

This could be the most common reason for PCs slowing down. You went to a website, clicked a dubious Install
button, and it was all downhill from there. Today's malware can be very devious in using techniques to evade
being cleaned out. The best thing for this is to run a PC anti-malware utility, like those included with

Malwarebytes Anti-Malware, Norton 360, WebrootSecureAnywhere, or Bitdefender Antivirus Plus. In difficult

cases, you may need to run a utility that starts at boot-up.

7. Install More RAM.

They say that you can never be too rich or too thin, and we might add that you can never have too much RAM.
It's particularly important if you run multiple applications at the same time, do any video editing, or PC gaming.
A friend's system had 2GB installed, but even 32-bit Windows can use 4GB. Since you can get a 4GB stick of
DDR3 memory for $46, it makes a lot of sense to upgrade. For 64-bit versions of Windows, you'll want at least
4GB, while 6GB or 8GB are better options.

8. Install a bigger, faster hard drive.

Just as with RAM, your PC needs storage headroom, with Windows itself and so many application programs
creating so many temporary files. If you have 85 percent of your hard drive full, you should probably upgrade.
An even faster choice would be an SDD, and you can now get one with 120GB for just under $100. One good
strategy is to use the SSD for Windows and conventional hard drives for applications and data. Our Matthew
Murray has an excellent video tutorial on how to install a hard drive to take you through the process.

9. Upgrade to Windows 8.
If startup time is your concern, I can offer no better advice than to upgrade to Windows 8. Yes, the interface
takes some getting used to, but really, the tech press, PCMag included, have overstated the usability aspect of
Microsoft's new desktop OS. I actually have grown to far prefer using Windows 8 that I've set up to dual-boot
between Windows 7 and 8; everything just seems faster, and that's using a mouse and keyboard. Touch-screen
users will see additional benefits.

10. Defragment your hard drive.

Your disk stores a file's data in one or more chunks of space on the physical disk, regardless of whether the
space is contiguous. Defragging tidies everything up and blocks a program's bits together so that the reader
heads don't have to shuttle back and forth to read a whole executable or data file. While this is less of a problem
with today's huge hard drives and copious RAM, a slow system can still benefit from defragmenting the disk.

Windows Blue Screen of Death: Causes and Fixes

The Blue Screen of Death, Microsoft Windows well-known error message, is more technically known as a
Stop error. The BSoD has been around since the Windows 1.0 days, though its replaced in the upcoming
Windows 8 with a friendlier version, complete with sad face emoticon. The stop error screen signifies that
Windows has experienced an unrecoverable error and needs to restart. There are various reasons for the
infamous BSoD. The top five are described here with their causes and possible solutions.
IRQL_NOT_LESS_OR_EQUAL
This is the most common Blue Screen error. It indicates a hardware-related problem, either with a buggy or
corrupt driver or an actual hardware conflict. The best course of action with this Blue Screen of Death error is to
reinstall drivers for any recently-added hardware or to uninstall the hardware itself. Running Windows update
might result in newer, Microsoft-recommended drivers being installed as well. Another BSoD error along these
lines is KMODE_EXCEPTION_NOT_HANDLED, and similar troubleshooting steps should be taken.
INACCESSIBLE_BOOT_DEVICE
This is the most self-explanatory of the BSoD errors. It means Windows cant access the disk with the boot
sector on it. To resolve this, first check the boot device selection in the BIOS to verify that nothing has changed.
The next step is to check all hard drive cabling to make so nothing has come loose. If this problem persists, it
could be indicative of a corrupted boot sector. This can possibly be repaired by booting to Windows Recovery
Console and running the bootcfg and fixboot commands.
REGISTRY_ERROR
This error usually means the system registry is corrupt and unreadable. Before troubleshooting along these
lines, though, its important to check cabling and disk access just in case this error is a false positive caused
simply by an unreadable disk. For the most part, though, this error is unrecoverable and restoration from
backups will be necessary.
NTFS_FILE_SYSTEM
NTFS, the file system used in Windows, is much more robust than FAT, the system it replaced. NTFS is not
without its flaws, though, and it can become corrupted. The best choice here is to boot to a command prompt
and run the chkdsk /f command to check and repair partitions. If this does not work, it may be possible to install
Windows on a different partition and then edit the boot.ini file later.
BAD_POOL_HEADER
This error is as common as it is vague. It typically points to a memory error, but this memory error could be
caused by almost any system component. The best course of action when this Blue Screen error happens is to
roll back the most recent system change by uninstalling the latest program or piece of hardware.
There are many Blue Screen of Death error codes in Windows, but these five are the most common. They can
be catastrophic or they can be fixed with simple tweaks. Like with any error, understanding the cause of a
BSoD is the key to troubleshooting and ultimately fixing the problem.