Financial Plan:

Projected financial statement of company listed below:

Pro Forma Income Statement ($ 000s) 2009 2010 2011

Sales 6600 9000 12000
Less: cost of sale (2200) 3000 4000
Gross Profit 4400 6000 8000
Operating Expenses
Salaries 1630 1950 2500
Rent 900 900 900
Sales & Marketing Exp 400 700 1100
Utilities 200 350 600
Office Exp 200 330 550
Deprecation 70 70 70
Tax 400 550 700
Total operating Exp 3800 4850 6420
Net Profit 600 1150 1580

Pro Forma Balance Sheet First year ($ 000s)

Assets
Current Assets
Cash 650
Account Receivable 120
Inventory 300
Total current assets 1070
Fixed Assets
Office equipment 400
Plant 300
Less Deprecation (70) 630
Total assets 1700
Liabilities & owner equity
Current liabilities
Account Payable 100
Total Liabilities 100
Owner equity
Equity 1000
Retain earnings 600
Total owner equity 1600
Total Liabilities & owner equity 1700

Pro Forma Cash Flow first year ($ 000s)

Net income 600

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Add: deprecation 70
Increase in inventory (300)
increase in debtors (120)
Increase in creditors 100
Net Cash flow from operating activities 350
Payment to fixed assets (700)
(350)
Balance 1000
Net cash flow 650

Break even Analysis:

8000

7000

6000

5000
Fixed Cost
4000
Sales
3000 Total Cost
2000

1000

0
0 50000 100000 150000 200000 250000

Pro Forma Sources and applications of fund ($ 000s)

Sources of fund
Personal fund 1000
Net income 600
Add: Deprecation 70
1670
Application of fund
Plant & Office Equipment 700
Inventory 300
Total fund expanded 1000
Net increase in working capital 670
1670

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