Session 4 - Financial Projections - Christian Trout Farm

SCORE Financial Projection Model
Please read this entire page before you do anything else

This spreadsheet walks you through the process of developing an integrated set of financial projections.
To use this model, simply complete any information asked for found in the color yellow.
Example: Fill in boxes that look like this
A number found in the color green is optional information that you can complete.
Example: Check these assumptions
Otherwise, any information found in black type is automatically calculated for you.
Although the cells that are calculated are locked (or protected), you can turn off this protection to modify the sheets.
To do this, select "Tools" from the menu bar at the top of the screen. Then select, "Protection."
Finally, select "Unprotect Sheet" and you will be able to edit any labels or formulas.
Before you begin, we need some information about your business to best customize your financial statements.
Please enter the name of your business in the box below:
Anns Nursery
The first six worksheets in this workbook are steps you will need to complete. They are titled:
1. Required Start-Up Funds
2. Salaries and Wages
3. Fixed Operating Expenses
4. & 5. Projected Sales Forecast (2 sheets)
6. Cash Receipts and Disbursements
Begin by clicking on the tabs below
Christian Trout Farm

Required Start-up Funds
Required Start-Up Funds

Fixed Assets
Real Estate-Land
Buildings
Leasehold Improvements
Equipment
Furniture and Fixtures
Vehicles
Other Fixed Assets
Total Fixed Assets
Amount
$
Operating Capital
Pre-Opening Salaries and Wages
Prepaid Insurance Premiums
Inventory
Legal and Accounting Fees
Rent Deposits
Utility Deposits
Supplies
Advertising and Promotions
Licenses
Other Initial Start-Up Costs
Working Capital (Cash On Hand)
Total Operating Capital
Totals
7,000
-
20.00
7.00
7.00
5.00
5.00
5.00
2,000
20,000
-
Notes
years
years
years
years
years
years
29,000
2,500
30,000
3,000
300
1,000
2,000
3,000
For existing businesses = Cash+Ppd Exp+A/R-A/P-Accrd Exp See Note below#

41,800
Total Required Funds
70,800
Sources of Funding
Owner's Equity
Outside Investors
Additional Loans or Debt
Commercial Loan
Commercial Mortgage
Credit Card Debt
Vehicle Loans
Other Bank Debt
Amount
53.79%
0.00%
Totals
115,000
-
15.81%
23.39%
0.00%
7.02%
0.00%
33,800
50,000
15,000
-
Total Sources of Funding
100.00%
A line of credit is also required in the amount of
Depreciation
213,800
60,509
Loan Rate
9.00%
9.00%
7.00%
6.00%
5.00%
Term in Months
84.00
240.00
60.00
48.00
36.00
Monthly Payments
$543.81
$449.86
$0.00
$352.28
$0.00
$1,345.95
Note#: For existing businesses, this should be the "bucket" of cash plus recievables that will
be turned into cash or payables paid out in cash in the near term (i.e. in the first month of the plan)

Salaries and Wages
Salaries and Related Expenses
Assumptions
Wage Base
Monthly
Year One
Percent Change
Salaries and Wages
Owner's Compensation
Salaries
Wages
Full-Time Employees
Estimated Hours Per Week
Estimated Rate Per Hour
Part-Time Employees
Estimated Hours Per Week
Estimated Rate Per Hour
Independent Contractors
Total Salaries and Wages
Payroll Taxes and Benefits
Social Security
Medicare
Federal Unemployment Tax (FUTA)
State Unemployment Tax (SUTA)
Employee Pension Programs
Worker's Compensation
Employee Health Insurance
Other Employee Benefit Programs
Total Payroll Taxes and Benefits
Total Salaries and Related Expenses
1
3
0
$
40.00
9.00
20.00
9.00
6.20%
1.45%
0.80%
3.45%
2.85%
0.00%
0.00%
0.00%
102,000
$
$
7,000
7,000
Year Two
Year Three
20.00%
30.00%
4,000
3,000
48,000
36,000
57,600
43,200
74,880
56,160
7,000
84,000
100,800
131,040
434
102
19
81
200
834
5,208
1,218
224
966
2,394
10,010
6,250
1,462
224
966
2,394
11,295
8,124
1,900
224
966
2,394
13,609
7,834
94,010
112,095
144,649

Fixed Operating Expenses
Monthly
Year One
Percent Change
Expenses
Advertising
Car and Truck Expenses
Bank & Merchant Fees
Contract Labor
Conferences & Seminars
Customer Discounts and Refunds
Dues and Subscriptions
Miscellaneous
Insurance (Liability and Property)
Licenses/Fees/Permits
Legal and Professional Fees
Office Expenses & Supplies
Postage and Delivery
Rent (on business property)
Rent of Vehicles and Equipment
Sales & Marketing
Taxes-Other
Telephone and Communications
Travel
Utilities
Total Expenses
Year Two
Year Three
15.00%
15.00%
600
800
100
400
150
200
100
300
200
300
200
250
200
500
4,300
7,200
9,600
1,200
4,800
1,800
2,400
1,200
3,600
2,400
3,600
2,400
3,000
2,400
6,000
51,600
8,280
11,040
1,380
5,520
2,070
2,760
1,380
4,140
2,760
4,140
2,760
3,450
2,760
6,900
59,340
9,522
12,696
1,587
6,348
2,381
3,174
1,587
4,761
3,174
4,761
3,174
3,968
3,174
7,935
68,241
Other Expenses
Depreciation
Interest
Commercial Loan
Commercial Mortgage
Line of Credit
Credit Card Debt
Vehicle Loans
Other Bank Debt
Total Other Expenses
396
4,750
4,750
4,750
241
372
212
67
1,288
2,895
4,462
2,548
807
15,461
2,554
4,374
596
12,274
2,181
4,278
372
11,582
Total Fixed Operating Expenses
5,588
67,061
71,614
79,823
Notes

Projected Sales Forecast
Products and Services
Assumptions
Local Nursery Plant mix

Price Per Unit
$
Variable Cost Per Unit
$
Gross Margin Per Unit
$
Projected Unit Sales
Seasonality Factor
Year One
Year Two Growth
Year Three Growth
Overhead Exp Allocation
Projected Revenue
Variable Costs
Gross Margin
Overhead Expenses
Profit
Breakeven Sales Revenue $

Breakeven Sales Units
Web Gardner Plant Mix

Price Per Unit
$
$
$
Seasonality Factor
Year One
Year Two Growth
Year Three Growth
Projected Revenue
Variable Costs
Gross Margin
Overhead Expenses
Profit

2,000.00
1,100.00
900.00
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Totals
4.00%
5
5
5
4.00%
5
15
20
4.00%
5
20
30
8.00%
10
30
40
16.00%
20
10
20
16.00%
20
5
10
4.00%
5
10
10
16.00%
20
15
20
12.00%
15
15
30
8.00%
10
10
10
4.00%
5
5
5
4.00%
5
5
5
100.00%
125
145
205
0.00%
50
50
0.00%
100
200
0.00%
150
300
0.00%
200
300
8.77%
50
150
200
3.51%
20
50
200
3.51%
20
30
100
5.26%
30
50
200
17.54%
100
200
150
17.54%
100
100
100
35.09%
200
50
50
8.77%
50
50
50
100.00%
570
1,180
1,900
100.00%
55.00%
45.00%
16.00%
41.00%
60.00%
250,000
137,500
112,500
96,643
15,857
Jan
6.34%
214,761.91
107
100.00
60.00
40.00
100.00%
60.00%
40.00%
107.00%
61.00%
20.00%
57,000
34,200
22,800
32,214
(9,414)
80,535.72
805
-16.52%

Projected Sales Forecast - Page 2
Products and Services
Assumptions
Distant Nursery Plant Mix

Price Per Unit
$
$
$
Seasonality Factor
Year One
Year Two Growth
Year Three Growth
Projected Revenue
Variable Costs
Gross Margin
Overhead Expenses
Profit

Product/Service D
Price Per Unit
$
$
$
Seasonality Factor
Year One
Year Two Growth
Year Three Growth
Projected Revenue
Variable Costs
Gross Margin
Overhead Expenses
Profit

1,000.00
600.00
400.00
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Totals
0.00%
5
5
0.00%
5
5
0.00%
10
20
0.00%
5
10
0.00%
5
10
0.00%
5
10
0.00%
5
5
0.00%
15
15
12.50%
5
15
15
12.50%
5
5
5
50.00%
20
5
25.00%
10
5
100.00%
40
75
110
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
100.00%
60.00%
40.00%
88.00%
47.00%
20.00%
40,000
24,000
16,000
32,214
(16,214)
Jan
-40.54%
80,535.72
81
100.00%
0.00%
0.00%
10.00%
10.00%
0.00%
-
0.00%

Cash Receipts and Disbursements
Accounts Receivable Collections

Percent of Collections
0 to 30 days
31 to 60 days
More than 60 days
Total Collections Percentage
30.00%
30.00%
40.00%
100.00%
Accounts Payable Disbursements

Number of Days to Pay Suppliers
0 to 30 days
31 to 60 days
More than 60 days
Total Disbursements Percentage
0.00%
100.00%
0.00%
100.00%
Line of Credit Assumptions

Desired Minimum Cash Balance
Line of Credit Interest Rate
Income Tax Assumptions
Effective Income Tax Rate
Amortization of Start-Up Expenses
Amortization Period in Years
3,000.00
8.00%
20.00%
2,933
3.00
244
244

Projected Income Statement - Year One
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Totals
Income
10,000
-
10,000
-
10,000
-
20,000
-
40,000
5,000
-
40,000
2,000
-
10,000
2,000
-
40,000
3,000
-
30,000
10,000
5,000
20,000
10,000
5,000
10,000
20,000
20,000
10,000
5,000
10,000
Total Income
10,000
10,000
10,000
20,000
45,000
42,000
12,000
43,000
45,000
35,000
50,000
25,000
Cost of Sales
5,500
-
5,500
-
5,500
-
11,000
-
22,000
3,000
-
22,000
1,200
-
5,500
1,200
-
22,000
1,800
-
16,500
6,000
3,000
11,000
6,000
3,000
5,500
12,000
12,000
5,500
3,000
6,000
Total Cost of Sales
5,500
5,500
5,500
11,000
25,000
23,200
6,700
23,800
25,500
20,000
29,500
14,500
137,500
34,200
24,000
195,700
Gross Margin
4,500
4,500
4,500
9,000
20,000
18,800
5,300
19,200
19,500
15,000
20,500
10,500
151,300
Total Salary and Wages
7,834
7,834
7,834
7,834
7,834
7,834
7,834
7,834
7,834
7,834
7,834
7,834
94,010
Fixed Business Expenses

Advertising
Contract Labor
Miscellaneous
Sales & Marketing
Taxes-Other
Travel
Utilities
Total Fixed Business Expenses
600
800
100
400
150
200
100
300
200
300
200
250
200
500
4,300
600
800
100
400
150
200
100
300
200
300
200
250
200
500
4,300
600
800
100
400
150
200
100
300
200
300
200
250
200
500
4,300
600
800
100
400
150
200
100
300
200
300
200
250
200
500
4,300
600
800
100
400
150
200
100
300
200
300
200
250
200
500
4,300
600
800
100
400
150
200
100
300
200
300
200
250
200
500
4,300
600
800
100
400
150
200
100
300
200
300
200
250
200
500
4,300
600
800
100
400
150
200
100
300
200
300
200
250
200
500
4,300
600
800
100
400
150
200
100
300
200
300
200
250
200
500
4,300
600
800
100
400
150
200
100
300
200
300
200
250
200
500
4,300
600
800
100
400
150
200
100
300
200
300
200
250
200
500
4,300
600
800
100
400
150
200
100
300
200
300
200
250
200
500
4,300
7,200
9,600
1,200
4,800
1,800
2,400
1,200
3,600
2,400
3,600
2,400
3,000
2,400
6,000
51,600
244
396
244
396
244
396
244
396
244
396
244
396
244
396
244
396
244
396
244
396
244
396
244
396
2,933
4,750
254
375
251
374
249
374
247
373
245
373
242
372
240
372
238
371
236
370
233
370
231
369
229
369
2,895
4,462
Other Expenses
Amortized Start-up Expenses
Depreciation
Interest
Commercial Loan
Commercial Mortgage
250,000
57,000
40,000
347,000

Projected Income Statement - Year One
Jan
Line of Credit
Credit Card Debt
Vehicle Loans
Other Bank Debt
Taxes
Net Income
Feb
70
-
75
1,344
(8,978)
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Totals
74
1,410
157
72
1,492
218
71
1,549
259
69
1,586
267
68
1,590
298
67
1,617
317
65
1,631
232
64
1,542
274
62
1,579
261
61
1,562
196
59
1,492
2,548
807
18,395
(9,044)
(9,127)
(4,683)
6,280
5,076
(8,451)
5,435
5,824
1,287
6,804
(3,127)
(12,705)

Projected Cash Flow Statement - Year One
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Totals
Beginning Cash Balance
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,003
3,000
3,046
3,005
Cash Inflows
Income from Sales
Accounts Receivable
Total Cash Inflows
3,000
3,000
3,000
3,000
6,000
3,000
7,000
10,000
6,000
7,000
13,000
13,500
10,000
23,500
12,600
21,500
34,100
3,600
30,600
34,200
12,900
20,400
33,300
13,500
17,700
31,200
10,500
30,700
41,200
15,000
28,500
43,500
7,500
29,000
36,500
104,100
205,400
309,500
5,500
5,500
5,500
11,000
25,000
23,200
6,700
23,800
25,500
20,000
29,500
181,200
7,834
4,300
-
7,834
4,300
-
7,834
4,300
-
7,834
4,300
-
7,834
4,300
-
7,834
4,300
-
7,834
4,300
-
7,834
4,300
-
7,834
4,300
-
7,834
4,300
-
7,834
4,300
-
7,834
4,300
-
1,346
13,480
1,346
70
19,050
1,346
157
19,137
1,346
218
19,198
1,346
259
24,739
1,346
267
38,747
1,346
298
36,978
1,346
317
12,800
33,297
1,346
232
37,512
1,346
274
1,900
41,154
1,346
261
9,800
43,541
1,346
196
43,176
94,010
51,600
16,151
2,548
345,509
(10,480)
(13,050)
(9,137)
(6,198)
(1,239)
(4,647)
(2,778)
(6,676)
(36,009)
Operating Cash Balance
(7,480)
(10,050)
(6,137)
(3,198)
1,761
(1,647)
Line of Credit Drawdowns
10,480
13,050
9,137
6,198
1,239
4,647
Ending Cash Balance
3,000
3,000
3,000
3,000
3,000
Line of Credit Balance
10,480
23,530
32,667
38,865
40,104
Cash Outflows
Investing Activities
New Fixed Assets Purchases
Inventory Addition to Bal.Sheet
Cost of Sales
Operating Activities
Salaries and Wages
Taxes
Financing Activities
Loan Payments
Line of Credit Interest
Line of Credit Repayments
Dividends Paid
Total Cash Outflows
Cash Flow
(6,312)
46
3,003
(3,309)
3,046
3,005
(3,670)
2,778
6,309
6,670
3,000
3,000
3,003
3,000
3,046
3,005
3,000
44,752
47,530
34,730
41,039
39,139
29,339
36,009
222
(41)
60,509

Balance Sheet - Year One
Base Period
Assets
Current Assets
Cash
Accounts Receivable
Inventory
Prepaid Expenses
Other Current
Total Current Assets
Fixed Assets
Real Estate-Land
Buildings
Equipment
Vehicles
Other Fixed Assets
Total Fixed Assets
Less: Accumulated Depreciation
End of Year One
3,000
30,000
8,800
41,800
3,000
37,500
30,000
5,867
76,367
7,000
2,000
20,000
29,000
7,000
2,000
20,000
29,000
4,750
Total Assets
70,800
100,616
Liabilities and Owner's Equity

Liabilities
Accounts Payable
Loan Payable
Mortgage Payable
Credit Card Debt
Vehicle Loans
Other Bank Debt
Total Liabilities
33,800
50,000
15,000
98,800
14,500
30,169
49,064
11,580
36,009
141,321
115,000
115,000
115,000
(12,705)
102,295
213,800
243,616
Owner's Equity
Common Stock
Retained Earnings
Dividends Dispersed
Total Owner's Equity
Total Liabilities and Owner's Equity
Does Not Balance
Does Not Balance

Year End Summary
Year One
Income
Year Two
Year Three
100.00%
290,000
118,000
75,000
483,000
Total Cost of Sales
137,500
34,200
24,000
195,700
56.40%
159,500
70,800
45,000
275,300
57.00%
225,500
114,000
66,000
405,500
Gross Margin
151,300
43.60%
207,700
43.00%
304,500
42.89%
94,010
27.09%
112,095
23.21%
144,649
20.37%

Advertising
Contract Labor
Miscellaneous
Sales & Marketing
Taxes-Other
Travel
Utilities
7,200
9,600
1,200
4,800
1,800
2,400
1,200
3,600
2,400
3,600
2,400
3,000
2,400
6,000
51,600
14.87%
8,280
11,040
1,380
5,520
2,070
2,760
1,380
4,140
2,760
4,140
2,760
3,450
2,760
6,900
59,340
12.29%
9,522
12,696
1,587
6,348
2,381
3,174
1,587
4,761
3,174
4,761
3,174
3,968
3,174
7,935
68,241
9.61%
5,690
1.64%
36,265
7.51%
91,610
12.90%
Total Income
Cost of Sales
Operating Income (before Other Expenses)

[EBITDA]
Other Expenses
Depreciation
250,000
57,000
40,000
347,000
2,933
4,750
2,933
4,750
100.00%
410,000
190,000
110,000
710,000
100.00%
57.11%
2,933
4,750

Year End Summary
Year One
Interest
Commercial Loan
Commercial Mortgage
Line of Credit
Credit Card Debt
Vehicle Loans
Other Bank Debt
Taxes
Net Income
2,895
4,462
2,548
807
18,395
(12,705)
Year Two
5.30%
2,554
4,374
2,370
596
4,443
22,021
-3.66%
14,244
Year Three
4.56%
2,181
4,278
1,170
372
15,846
31,531
4.44%
2.95%
60,080
8.46%

Projected Income Statement - Year Two
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Totals
Income
10,000
5,000
5,000
30,000
10,000
5,000
40,000
15,000
10,000
60,000
20,000
5,000
20,000
15,000
5,000
10,000
5,000
5,000
20,000
3,000
5,000
30,000
5,000
15,000
30,000
20,000
15,000
20,000
10,000
5,000
10,000
5,000
-
10,000
5,000
-
Total Income
20,000
45,000
65,000
85,000
40,000
20,000
28,000
50,000
65,000
35,000
15,000
15,000
5,500
3,000
3,000
16,500
6,000
3,000
22,000
9,000
6,000
33,000
12,000
3,000
11,000
9,000
3,000
5,500
3,000
3,000
11,000
1,800
3,000
16,500
3,000
9,000
16,500
12,000
9,000
11,000
6,000
3,000
5,500
3,000
-
5,500
3,000
-
11,500
25,500
37,000
48,000
23,000
11,500
15,800
28,500
37,500
20,000
8,500
8,500
159,500
70,800
45,000
275,300
Gross Margin
8,500
19,500
28,000
37,000
17,000
8,500
12,200
21,500
27,500
15,000
6,500
6,500
207,700
9,341
9,341
9,341
9,341
9,341
9,341
9,341
9,341
9,341
9,341
9,341
9,341
112,095

Advertising
Contract Labor
Miscellaneous
Sales & Marketing
Taxes-Other
Travel
Utilities
690
920
115
460
173
230
115
345
230
345
230
288
230
575
4,945
690
920
115
460
173
230
115
345
230
345
230
288
230
575
4,945
690
920
115
460
173
230
115
345
230
345
230
288
230
575
4,945
690
920
115
460
173
230
115
345
230
345
230
288
230
575
4,945
690
920
115
460
173
230
115
345
230
345
230
288
230
575
4,945
690
920
115
460
173
230
115
345
230
345
230
288
230
575
4,945
690
920
115
460
173
230
115
345
230
345
230
288
230
575
4,945
690
920
115
460
173
230
115
345
230
345
230
288
230
575
4,945
690
920
115
460
173
230
115
345
230
345
230
288
230
575
4,945
690
920
115
460
173
230
115
345
230
345
230
288
230
575
4,945
690
920
115
460
173
230
115
345
230
345
230
288
230
575
4,945
690
920
115
460
173
230
115
345
230
345
230
288
230
575
4,945
8,280
11,040
1,380
5,520
2,070
2,760
1,380
4,140
2,760
4,140
2,760
3,450
2,760
6,900
59,340
244
396
244
396
244
396
244
396
244
396
244
396
244
396
244
396
244
396
244
396
244
396
244
396
2,933
4,750
226
368
224
367
221
367
219
366
217
365
214
365
212
364
209
364
207
363
204
362
202
362
199
361
2,554
4,374
Cost of Sales
Total Cost of Sales
Other Expenses
Depreciation
Interest
Commercial Loan
Commercial Mortgage
290,000
118,000
75,000
483,000

Projected Income Statement - Year Two
Jan
Line of Credit
Credit Card Debt
Vehicle Loans
Other Bank Debt
Taxes
Net Income
Jun
Jul
Oct
Nov
Dec
240
58
1,532
253
56
1,540
Feb
272
55
1,883
3,438
Mar
287
53
4,289
5,855
Apr
220
52
303
1,798
May
222
50
(1,397)
95
156
49
(643)
778
135
47
1,222
2,618
Aug
136
46
2,422
3,814
Sep
147
44
(79)
1,319
169
43
(1,783)
(368)
134
41
(1,775)
(400)
Totals
2,370
596
4,443
22,021
(7,319)
3,673
10,275
16,859
916
(5,882)
(2,864)
4,596
9,399
(605)
(7,418)
(7,387)
14,244

Projected Cash Flow Statement - Year Two
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Totals
3,000
3,000
3,000
3,000
3,081
3,000
3,000
3,012
3,000
3,000
3,000
3,000
Cash Inflows
Income from Sales
Accounts Receivable
Total Cash Inflows
6,000
27,500
33,500
13,500
16,000
29,500
19,500
21,500
41,000
25,500
37,500
63,000
12,000
51,500
63,500
6,000
46,000
52,000
8,400
22,000
30,400
15,000
16,400
31,400
19,500
26,200
45,700
10,500
39,500
50,000
4,500
36,500
41,000
4,500
18,500
23,000
144,900
359,100
504,000
5,000
14,500
5,000
11,500
25,500
37,000
48,000
23,000
11,500
15,800
28,500
37,500
20,000
8,500
10,000
281,300
9,341
4,945
-
9,341
4,945
-
9,341
4,945
1,883
9,341
4,945
-
9,341
4,945
-
9,341
4,945
3,196
9,341
4,945
-
9,341
4,945
-
9,341
4,945
3,002
9,341
4,945
-
9,341
4,945
-
9,341
4,945
(3,637)
1,346
240
35,372
1,346
253
32,385
1,346
272
43,287
1,346
287
10,000
62,919
1,346
220
63,853
1,346
222
10,100
52,150
1,346
156
3,100
30,388
1,346
135
31,567
1,346
136
47,270
1,346
147
53,279
1,346
169
5,200
41,001
1,346
134
2,500
23,129
112,095
59,340
4,443
16,151
2,370
30,900
516,600
(1,872)
(2,885)
(2,287)
(1,570)
(3,279)
Cash Outflows
Inventory Addition to Bal. Sheet
Cost of Sales
Salaries and Wages
Taxes
Loan Payments
Dividends Paid
Total Cash Outflows
Cash Flow
81
1,128
115
713
3,081
1,872
2,885
2,287
Ending Cash Balance
3,000
3,000
3,000
37,881
40,766
43,053
(353)
(150)
2,728
2,850
272
150
3,081
3,000
3,000
33,053
33,325
23,375
12
3,012
(167)
2,845
1,430
155
1,570
3,012
3,000
20,275
20,431
(279)
(1)
(129)
2,999
2,871
3,279
129
3,000
3,000
3,000
3,000
22,001
25,279
20,080
17,709
(12,600)
12,600

Balance Sheet - Year Two
End of Year One

Assets
Current Assets
Cash
Accounts Receivable
Inventory
Prepaid Expenses
Other Current
End of Year Two
3,000
37,500
30,000
5,867
76,367
3,000
16,500
40,000
2,933
62,433
7,000
2,000
20,000
29,000
7,000
2,000
20,000
29,000
4,750
9,500
Total Assets
100,616
81,933

Liabilities
Accounts Payable
Notes Payable
Mortgage Payable
Credit Card Debt
Vehicle Loans
Other Bank Debt
Total Liabilities
14,500
30,169
49,064
11,580
36,009
141,321
8,500
26,197
48,039
7,948
17,709
108,394
115,000
(12,705)
102,295
115,000
1,539
116,539
243,616
224,933
Fixed Assets
Real Estate-Land
Buildings
Equipment
Vehicles
Other Fixed Assets
Total Fixed Assets
Owner's Equity
Common Stock
Retained Earnings
Dividends Dispersed
Does Not Balance
Does Not Balance

Projected Income Statement - Year Three
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Totals
Income
10,000
5,000
5,000
40,000
20,000
5,000
60,000
30,000
20,000
80,000
30,000
10,000
40,000
20,000
10,000
20,000
20,000
10,000
20,000
10,000
5,000
40,000
20,000
15,000
60,000
15,000
15,000
20,000
10,000
5,000
10,000
5,000
5,000
10,000
5,000
5,000
Total Income
20,000
65,000
110,000
120,000
70,000
50,000
35,000
75,000
90,000
35,000
20,000
20,000
5,500
3,000
3,000
22,000
12,000
3,000
33,000
18,000
12,000
44,000
18,000
6,000
22,000
12,000
6,000
11,000
12,000
6,000
11,000
6,000
3,000
22,000
12,000
9,000
33,000
9,000
9,000
11,000
6,000
3,000
5,500
3,000
3,000
5,500
3,000
3,000
11,500
37,000
63,000
68,000
40,000
29,000
20,000
43,000
51,000
20,000
11,500
11,500
225,500
114,000
66,000
405,500
8,500
28,000
47,000
52,000
30,000
21,000
15,000
32,000
39,000
15,000
8,500
8,500
304,500
12,054
12,054
12,054
12,054
12,054
12,054
12,054
12,054
12,054
12,054
12,054
12,054
144,649
794
1,058
132
529
198
265
132
397
265
397
265
331
265
661
5,687
794
1,058
132
529
198
265
132
397
265
397
265
331
265
661
5,687
794
1,058
132
529
198
265
132
397
265
397
265
331
265
661
5,687
794
1,058
132
529
198
265
132
397
265
397
265
331
265
661
5,687
794
1,058
132
529
198
265
132
397
265
397
265
331
265
661
5,687
794
1,058
132
529
198
265
132
397
265
397
265
331
265
661
5,687
794
1,058
132
529
198
265
132
397
265
397
265
331
265
661
5,687
794
1,058
132
529
198
265
132
397
265
397
265
331
265
661
5,687
794
1,058
132
529
198
265
132
397
265
397
265
331
265
661
5,687
794
1,058
132
529
198
265
132
397
265
397
265
331
265
661
5,687
794
1,058
132
529
198
265
132
397
265
397
265
331
265
661
5,687
794
1,058
132
529
198
265
132
397
265
397
265
331
265
661
5,687
9,522
12,696
1,587
6,348
2,381
3,174
1,587
4,761
3,174
4,761
3,174
3,968
3,174
7,935
68,241
244
396
244
396
244
396
244
396
244
396
244
396
244
396
244
396
244
396
244
396
244
396
244
396
2,933
4,750
196
360
194
360
191
359
189
358
186
358
183
357
181
356
178
355
175
355
172
354
170
353
167
353
2,181
4,278
Cost of Sales
Total Cost of Sales
Gross Margin
Advertising
Contract Labor
Miscellaneous
Sales & Marketing
Taxes-Other
Travel
Utilities
Other Expenses
Depreciation
Interest
Commercial Loan
Commercial Mortgage
410,000
190,000
110,000
710,000

Projected Income Statement - Year Three
Jan
Line of Credit
Credit Card Debt
Vehicle Loans
Other Bank Debt
Taxes
Net Income
Feb
Mar
Apr
May
Jun
Jul
88
118
40
1,355
226
38
1,458
255
37
5,366
6,848
263
35
6,611
8,096
179
33
2,228
3,624
32
447
1,747
(10,596)
8,801
22,411
26,163
8,635
1,512
Aug
Sep
Oct
7
-
30
(736)
478
29
2,665
3,874
27
4,065
5,269
(3,219)
10,385
15,990
Nov
Dec
7
Totals
25
(734)
465
24
(2,033)
(839)
22
(2,033)
(844)
1,170
372
15,846
31,531
(3,206)
(8,401)
(8,397)
60,080

Projected Cash Flow Statement - Year Three
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Totals
3,000
3,000
3,000
3,000
3,050
3,085
6,523
11,930
20,836
6,249
3,655
17,061
Cash Inflows
Income from Sales
Accounts Receivable
Total Cash Inflows
6,000
10,500
16,500
19,500
12,000
31,500
33,000
27,500
60,500
36,000
59,000
95,000
21,000
80,000
101,000
15,000
69,000
84,000
10,500
43,000
53,500
22,500
30,500
53,000
27,000
36,500
63,500
10,500
57,000
67,500
6,000
46,500
52,500
6,000
20,000
26,000
213,000
491,500
704,500
5,000
8,500
5,000
11,500
37,000
63,000
68,000
40,000
29,000
20,000
10,000
43,000
51,000
20,000
11,500
10,000
10,000
402,500
12,054
5,687
-
12,054
5,687
-
12,054
5,687
5,366
12,054
5,687
-
12,054
5,687
-
12,054
5,687
9,286
12,054
5,687
-
12,054
5,687
-
12,054
5,687
5,994
12,054
5,687
-
12,054
5,687
-
12,054
5,687
(4,800)
1,346
118
32,705
1,346
226
35,813
1,346
255
61,708
1,346
263
12,600
94,950
1,346
179
13,700
100,966
1,346
88
12,101
80,561
1,346
7
48,094
1,346
7
5,000
44,094
1,346
7
78,088
1,346
7
70,094
1,346
7
39,094
1,346
7
10,000
35,794
144,649
68,241
15,846
16,151
1,170
38,401
15,000
721,958
Cash Flow
(16,205)
(4,313)
(1,208)
50
34
3,439
5,406
8,906
(14,588)
(2,594)
13,406
(9,794)
(17,458)
(13,205)
(1,313)
1,792
3,050
3,085
6,523
11,930
20,836
6,249
3,655
17,061
7,267
16,205
4,313
1,208
Ending Cash Balance
3,000
3,000
3,000
3,050
3,085
6,523
11,930
20,836
6,249
3,655
17,061
7,267
33,914
38,227
39,435
26,835
13,135
1,034
1,034
1,034
1,034
1,034
1,034
1,034
Cash Outflows
Inventory Addition to Bal.Sheet
Cost of Sales
Salaries and Wages
Taxes
Loan Payments
Dividends Paid
Total Cash Outflows
21,725

Balance Sheet - Year Three
End of Year Two

Assets
Current Assets
Cash
Accounts Receivable
Inventory
Prepaid Expenses
Other Current
Fixed Assets
Real Estate-Land
Buildings
Equipment
Vehicles
Other Fixed Assets
Total Fixed Assets
Total Assets

Liabilities
Accounts Payable
Notes Payable
Mortgage Payable
Credit Card Debt
Vehicle Loans
Other Bank Debt
Total Liabilities
Owner's Equity
Common Stock
Retained Earnings
Dividends Dispersed
End of Year Three
3,000
16,500
40,000
2,933
62,433
7,267
22,000
50,000
(0)
79,267
7,000
2,000
20,000
29,000
7,000
2,000
20,000
10,000
39,000
9,500
14,250
81,933
104,017
8,500
26,197
48,039
7,948
17,709
108,394
11,500
21,853
46,919
4,093
1,034
85,399
115,000
1,539
116,539
115,000
61,619
15,000
161,619
224,933
247,017
Does Not Balance
Does Not Balance

Financial Ratios
Ratio
Liquidity
Current Ratio
Quick Ratio
Safety
Debt to Equity Ratio
Debt to Coverage Ratio
Profitability
Sales Growth
COGS to Sales
Gross Profit Margin
SG&A to Sales
Net Profit Margin
Return on Equity
Return on Assets
Owner's Compensation to Sales
Efficiency
Days in Receivables
Accounts Receivable Turnover
Days in Inventory
Inventory Turnover
Sales to Total Assets
Year One
Year Two
Year Three
0.5
0.3
0.6
0.2
0.9
0.3
1.4
-0.1
0.9
0.2
0.5
0.8
0.0%
56.4%
43.6%
42.0%
-3.7%
-12.4%
-12.6%
13.8%
39.2%
57.0%
43.0%
35.5%
2.9%
12.2%
17.4%
11.9%
47.0%
57.1%
42.9%
30.0%
8.5%
37.2%
57.8%
10.5%
38.9
9.3
55.2
6.5
3.4
12.3
29.3
52.3
6.9
5.9
11.2
32.3
44.4
8.1
6.8
RMA Industry Norms

NAICS Code 111421
1.5
0.5
1.8
57.6%
42.4%
38.1%
3.4%
13.0%
4.3%
3.0%
19.5
80.0
1.7

Breakeven Analysis
Breakeven Analysis
Annual Sales Revenue
Cost of Sales
Gross Margin
Dollars
347,000
195,700
151,300
Salaries and Wages

94,010
67,061
161,071
Breakeven Sales Calculation
161,071
43.60%
Breakeven Sales in Dollars
369,410
Percent
100.00%
56.40%
43.60%

Amortization Schedule
Loan Type
Commercial Loan
Principal Amount
$
Interest Rate
Loan Term in Months
Monthly Payment Amount
Assumptions
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Totals
254
290
33,510
251
292
33,217
249
295
32,923
247
297
32,626
245
299
32,327
242
301
32,025
240
304
31,722
238
306
31,416
236
308
31,107
233
311
30,797
231
313
30,484
229
315
30,169
2,895
3,631
226
318
29,851
224
320
29,531
221
322
29,209
219
325
28,884
217
327
28,557
214
330
28,228
212
332
27,895
209
335
27,561
207
337
27,224
204
340
26,884
202
342
26,542
199
345
26,197
2,554
3,972
196
347
25,850
194
350
25,500
191
353
25,147
189
355
24,792
186
358
24,434
183
361
24,074
181
363
23,710
178
366
23,345
175
369
22,976
172
371
22,604
170
374
22,230
167
377
21,853
2,181
4,344
375
75
49,925
374
75
49,850
374
76
49,774
373
77
49,697
373
77
49,620
372
78
49,542
372
78
49,464
371
79
49,385
370
79
49,306
370
80
49,226
369
81
49,145
369
81
49,064
4,462
936
368
82
48,982
367
82
48,899
367
83
48,816
366
84
48,732
365
84
48,648
365
85
48,563
364
86
48,477
364
86
48,391
363
87
48,304
362
88
48,217
362
88
48,128
361
89
48,039
4,374
1,024
360
90
47,950
360
90
47,860
359
91
47,769
358
92
47,677
358
92
47,585
357
93
47,492
356
94
47,398
355
94
47,304
355
95
47,209
354
96
47,113
353
97
47,016
353
97
46,919
4,278
1,120
50,000.00
9.00%
240.00
$449.86
Year One
Interest
Principal
Loan Balance
Year Two
Interest
Principal
Loan Balance
Year Three
Interest
Principal
Loan Balance
Credit Card Debt

Principal Amount
$
Interest Rate
Loan Term in Months
Feb
33,800
9.00%
84.00
$543.81
Year One
Interest
Principal
Loan Balance
Year Two
Interest
Principal
Loan Balance
Year Three
Interest
Principal
Loan Balance
Commercial Mortgage
Principal Amount
$
Interest Rate
Loan Term in Months
Jan
7.00%
60.00
$0.00
Year One
Interest
Principal
Loan Balance
Year Two
Interest
Principal
Loan Balance
Year Three
Interest
Principal
Loan Balance
Vehicle Loans
Principal Amount
$
Interest Rate
Loan Term in Months
Year One
Interest
Principal
Loan Balance
Year Two
Interest
Principal
Loan Balance
Year Three
Interest
Principal
Loan Balance
75
277
14,723
74
279
14,444
72
280
14,164
71
281
13,883
69
283
13,600
68
284
13,315
67
286
13,030
65
287
12,743
64
289
12,454
62
290
12,164
61
291
11,873
59
293
11,580
807
3,420
58
294
11,285
56
296
10,989
55
297
10,692
53
299
10,393
52
300
10,093
50
302
9,791
49
303
9,488
47
305
9,183
46
306
8,877
44
308
8,569
43
309
8,259
41
311
7,948
596
3,631
40
313
7,636
38
314
7,322
37
316
7,006
35
317
6,689
33
319
6,370
32
320
6,050
30
322
5,728
29
324
5,404
27
325
5,079
25
327
4,752
24
329
4,423
22
330
4,093
372
3,855
15,000.00
6.00%
48.00
$352.28
Year One
Interest
Principal
Loan Balance
Year Two
Interest
Principal
Loan Balance
Year Three
Interest
Principal
Loan Balance
Other Bank Debt

Principal Amount
$
Interest Rate
Loan Term in Months
5.00%
36.00
$0.00

Financial Diagnostics
This sheet performs a few tests on your numbers to see if they seem within certain reasonable ranges.
Remember, no computer can tell whether your projections are truly well-constructed, only a human can do that.
But these tests can at least look for values that are critically out of range.
Financial Diagnostics
General Financing Assumptions
Owner's Cash Injection into the Business
Cash Request as percent of Total Required Funds
Loan Assumptions
Commercial Loan Interest rate
Commercial Loan Term in Months
Value
Findings
53.8%
4.2%
Owner's injection is reasonable

Cash request seems reasonable with respect to total request
9.0%
84
Interest rate seems reasonable

Loan term seems within range for this type of loan
Commercial Mortgage Interest rate

Commercial Mortgage Term in Months
9.0%
240
Interest rate seems reasonable

Loan term seems within range for this type of loan
Loan Payments as a Percent of Projected Sales
0.4%
Calculated loan payments as a percent of sales seem resonable
Income Statement
Gross Margin as a Percent of Sales
Owner's Compensation Lower Limit Check
$
Owner's Compensation Upper Limit Check
Advertising Expense Levels as a Percent of Sales
Profitability Levels
$
Profitability as a Percent of Sales
Cash Flow Statement
Desired Operating cash Flow Levels
Accounts Receivable Ratio to Sales
$
$
Balance Sheet
Does the Base Period Balance Sheet Balance?
Does the Final Balance Sheet Balance
Debt to Equity Ratio
Breakeven Analysis
Breakeven Levels
43.6%
48,000
-377.8%
2.1%
(12,705)
-3.7%
60,509
60,509
10.8%
(143,000)
(143,000)
138.2%
(22,410)
Gross margin percentage seems reasonable

An owner's compensation amount has been established
Owner's compensation seems reasonable
Advertising as a percent of sales may be too low
The business is not showing a profit
The projection does not seem highly unreasonable
The financial projection does not provide the desired level of cash flow
The business will need at least this level of a line of credit
Accounts receivable amount as a percent of sales seems reasonable
The balance sheet is not in balance

The balance sheet is not in balance
The debt to equity ratio seems reasonable
The sales projection is less than the break-even amount

Session 4 - Financial Projections - Christian Trout Farm

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Session 4 - Financial Projections - Christian Trout Farm

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SCORE Financial Projection Model

Please read this entire page before you do anything else

Begin by clicking on the tabs below

Christian Trout Farm

Required Start-Up Funds

For existing businesses = Cash+Ppd Exp+A/R-A/P-Accrd Exp See Note below#

Total Required Funds

Total Sources of Funding

A line of credit is also required in the amount of

Christian Trout Farm

Salaries and Related Expenses

Total Salaries and Related Expenses

Christian Trout Farm

Fixed Operating Expenses

Total Fixed Operating Expenses

Christian Trout Farm

Products and Services

Local Nursery Plant mix

Breakeven Sales Revenue $

Web Gardner Plant Mix

Breakeven Sales Revenue $

Christian Trout Farm

Products and Services

Distant Nursery Plant Mix

Breakeven Sales Revenue $

Breakeven Sales Revenue $

Christian Trout Farm

Accounts Receivable Collections

Accounts Payable Disbursements

Line of Credit Assumptions

Christian Trout Farm

Total Cost of Sales

Total Salary and Wages

Fixed Business Expenses

Christian Trout Farm

Christian Trout Farm

Beginning Cash Balance

Operating Cash Balance

Line of Credit Drawdowns

Ending Cash Balance

Line of Credit Balance

Christian Trout Farm

End of Year One

Liabilities and Owner's Equity

Does Not Balance

Does Not Balance

Christian Trout Farm

Total Cost of Sales

Total Salary and Wages

Fixed Business Expenses

Operating Income (before Other Expenses)

Christian Trout Farm

Christian Trout Farm

Total Salary and Wages

Fixed Business Expenses

Christian Trout Farm

Christian Trout Farm

Beginning Cash Balance

Operating Cash Balance

Line of Credit Drawdowns

Ending Cash Balance

Line of Credit Balance

Christian Trout Farm