Financial

Anonymous
timer Asked: Jan 5th, 2018
account_balance_wallet $35

Question description

Complete and submit the break even analysis, the 12-month case flow statement, the 12-month profit and loss projection, and the 12-month sales forecast.

Cash Flow (12 months) Pre-Startup EST Cash on Hand (beginning of month) Jan-17 Enter Company Name Here Feb-17 0 Mar-17 0 Apr-17 0 CASH RECEIPTS May-17 0 Jun-17 0 Jul-17 0 Fiscal Year Begins: Aug-17 0 Sep-17 0 Oct-17 0 Nov-17 0 0 Jan-17 Total Item EST Dec-17 0 0 0 0 0 0 Notes on Preparation Cash Sales You may want to print this information to use as reference later. To delete these instructions, click the border of this text box and then press the DELETE key. Collections fm CR accounts Loan/ other cash inj. TOTAL CASH RECEIPTS 0 0 0 0 Total Cash Available (before cash out) 0 0 0 0 CASH PAID OUT Purchases (merchandise) Purchases (specify) Purchases (specify) Gross wages (exact withdrawal) Payroll expenses (taxes, etc.) Outside services 0 0 & Loss0Projection. 0 Line-by-line 0 0 0 Refer back0to your Profit ask yourself when you should expect cash to come and go. You have already done a sales 0 0 0 0 collect 0from 0 projection, now you must predict0 when you0 will actually customers. On the expense side, you have previously projected expenses; now predict when you will actually have to write the check to pay those bills. Most items will be the same as on the Profit & Loss Projection. Rent and utility bills, for instance, are usually paid in the month they are incurred. Other items will differ from the Profit & Loss view. Insurance and some types of taxes, for example, may actually be payable quarterly or semiannually, even though you recognize them as monthly expenses. Just try to make the Cash Flow as realistic as you can line by line. The payoff for you will be an ability to manage and forecast working capital needs. Change the category labels in the left column as needed to fit your accounting system. Note that lines for 'Loan principal payment' through 'Owners' Withdrawal' are for items that always are different on the Cash Flow than on the Profit & Loss. Loan Principal Payment, Capital Purchases, and Owner's Draw simply do not, by the rules of accounting, show up on the Profit & Loss Projection. They do, however, definitely take cash out of the business, and so need to be included in your Cash plan. On the other hand, you will not find Depreciation on the Cash Flow because you never write a check for Depreciation. Cash from Loans Received and Owners' Injections go in the "Loan/ other cash inj." row. The "Pre-Startup" column is for cash outlays prior to the time covered by the Cash Flow. It is intended primarily for new business startups or major expansion projects where a great deal of cash must go out before operations commence. The bottom section, "ESSENTIAL OPERATING DATA", is not actually part of the Cash model, but it allows you to track items which have a heavy impact on cash. The Cash Flow Projection is the best way to forecast working capital needs. Begin with the amount of Cash on Hand you expect to have. Project all the Receipts and Paid Outs for the year. If CASH POSITION gets dangerously low or negative, you will need to pump in more cash to keep the operation afloat. Many profitable businesses have gone under because they could not pay the bills while waiting for money to flow in. Your creditors do not care about profit; they want to be paid with cash. Cash is the financial lifeblood of your business. Supplies (office & oper.) Repairs & maintenance Advertising Car, delivery & travel Accounting & legal Rent Telephone Utilities Insurance Taxes (real estate, etc.) Interest Other expenses (specify) Other (specify) Other (specify) Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 0 0 0 TOTAL CASH PAID OUT 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Cash Position (end of month) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SUBTOTAL Loan principal payment Capital purchase (specify) Other startup costs Reserve and/or Escrow Owners' Withdrawal ESSENTIAL OPERATING DATA (non cash flow information) Sales Volume (dollars) Accounts Receivable Bad Debt (end of month) Inventory on hand (eom) Accounts Payable (eom) Depreciation Notes on Preparation Note: You may want to print this information to use as reference later. To delete these instructions, click the border of this text box and then press the DELETE key. Refer back to your Profit & Loss Projection. Line-by-line ask yourself when you should expect cash to come and go. You have already done a sales projection, now you must predict when you will actually collect from customers. On the expense side, you have previously projected expenses; now predict when you will actually have to write the check to pay those bills. Most items will be the same as on the Profit & Loss Projection. Rent and utility bills, for instance, are usually paid in the month they are incurred. Other items will differ from the Profit & Loss view. Insurance and some types of taxes, for example, may actually be payable quarterly or semiannually, even though you recognize them as monthly expenses. Just try to make the Cash Flow as realistic as you can line by line. The payoff for you will be an ability to manage and forecast working capital needs. Change the category labels in the left column as needed to fit your accounting system. Note that lines for 'Loan principal payment' through 'Owners' Withdrawal' are for items that always are different on the Cash Flow than on the Profit & Loss. Loan Principal Payment, Capital Purchases, and Owner's Draw simply do not, by the rules of accounting, show up on the Profit & Loss Projection. They do, however, definitely take cash out of the business, and so need to be included in your Cash plan. On the other hand, you will not find Depreciation on the Cash Flow because you never write a check for Depreciation. Cash from Loans Received and Owners' Injections go in the "Loan/ other cash inj." row. The "Pre-Startup" column is for cash outlays prior to the time covered by the Cash Flow. It is intended primarily for new business startups or major expansion projects where a great deal of cash must go out before operations commence. The bottom section, "ESSENTIAL OPERATING DATA", is not actually part of the Cash model, but it allows you to track items which have a heavy impact on cash. The Cash Flow Projection is the best way to forecast working capital needs. Begin with the amount of Cash on Hand you expect to have. Project all the Receipts and Paid Outs for the year. If CASH POSITION gets dangerously low or negative, you will need to pump in more cash to keep the operation afloat. Many profitable businesses have gone under because they could not pay the bills while waiting for money to flow in. Your creditors do not care about profit; they want to be paid with cash. Cash is the financial lifeblood of your business.
Notes on Preparation You may want to print this information to use as reference later. To delete these instructions, click the border of this text box and then press the DELETE key. You should change "category 1, category 2", etc. labels to the actual names of your sales categories. Enter sales for each category for each month. The spreadsheet will add up total annual sales. In the "%" columns, the spreadsheet will show the % of total sales contributed by each category. Revenue (Sales) Category 1 Category 2 Category 3 Category 4 Category 5 Category 6 Category 7 Total Revenue (Sales) 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - Gross Profit 0 - Expenses Salary expenses Payroll expenses Outside services Supplies (office and operating) Repairs and maintenance Advertising Car, delivery and travel Accounting and legal Rent & Related Costs Telephone Utilities Insurance Taxes (real estate, etc.) Interest Depreciation Other expenses (specify) Other expenses (specify) Other expenses (specify) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 % RL Y % - YE A c-0 8 De 8 v-0 - % No -08 % Se p g-0 8 % Au l-0 Ju % 8 8 n-0 % Ju % Ma y-0 8 r-0 8 % Ap % Ma r-0 8 8 % b-0 0 0.0 Cost of Sales Category 1 Category 2 Category 3 Category 4 Category 5 Category 6 Category 7 Total Cost of Sales Misc. (unspecified) Total Expenses Fe 8 B/A % Ja n-0 IND .% Jan-08 COST OF GOODS SOLD (also called Cost of Sales or COGS): COGS are those expenses directly related to producing or buying your products or services. For example, purchases of inventory or raw materials, as well as the wages (and payroll taxes) of employees directly involved in producing your products/services, are included in COGS. These expenses usually go up and down along with the volume of production or sales. Study your records to determine COGS for each sales category. Control of COGS is the key to profitability for most businesses, so approach this part of your forecast with great care. For each category of product/service, analyze the elements of COGS: how much for labor, for materials, for packing, for shipping, for sales commissions, etc.? Compare the Cost of Goods Sold and Gross Profit of your various sales categories. Which are most profitable, and which are least - and why? Underestimating COGS can lead to under pricing, which can destroy your ability to earn a profit. Research carefully and be realistic. Enter the COGS for each category of sales for each month. In the "%" columns, the spreadsheet will show the - a % of sales - that 0category. COGS as dollars for t-0 8 Fiscal Year Begins % Enter your Company Name here Oc Profit and Loss Projection (12 Months) - - Total0Sales - minus Total COGS. In the "%" columns, the spreadsheet will show Gross Profit as a % GROSS- PROFIT: Gross Profit is 0 of Total -Sales. - - - 0 - OPERATING EXPENSES (also- called0Overhead): These are necessary expenses which, however, are not directly related to making - your products/services. - Rent, 0 utilities, or buying telephone, interest, and the salaries (and payroll taxes) of office and management 0 0.0 0.0 0Change 0.0 the0names 0.0 of the Expense categories to suit your type of business and your accounting system. employees are0examples. You may need to combine some categories, however, to stay within the 20 line limit of the spreadsheet. Most operating expenses remain reasonably fixed regardless of changes in sales volume. Some, like sales commissions, may vary with sales. Some, like - the time -of year.0 Your - projections should reflect these fluctuations. The only rule is that the projections should utilities, -may vary with - reality as- nearly0 as possible. simulate- your financial In the "%" columns, the spreadsheet will show Operating Expenses as a % of 0 Total Sales. - - - 0 - - will subtract 0 - Total Operating Expenses from Gross Profit to calculate Net Profit. In the "%" columns, NET PROFIT: The spreadsheet - Net Profit - as a % of -Total Sales. 0 it will show - - - 0 - 0 0 0 - column, 0 -labeled "IND. %" is for posting average cost factors for firms of your size in your industry. INDUSTRY AVERAGES: The first Industry average data is commonly available from industry associations, major manufacturers who are suppliers to your industry, 0 0 0 0 and local colleges, Chambers of Commerce, and public libraries. One common source is the book Statement Studies published annually by Robert Morris Associates. It can be found in major libraries, and your banker almost surely has a copy. It is unlikely that your expenses will be averages, but they can be helpful in areas in which expenses may be out of line. - exactly in- line with 0 industry - - - 0 0 - - - - - 0 - - - - - 0 0 0 0 0 0 0 0 - - - - - - 0 0 0 - - - - - - - 0 - - - - - - - 0 - - - - - - - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - Net Profit Before Taxes Income Taxes Net Operating Income
Sales Forecast (12 Months) Enter your Company Name here Fiscal Year Begins Jun-16 12-month Sales Forecast Jun-16 Cat 1 units sold Sale price @ unit Cat 1 TOTAL Jul-16 Aug-16 Sep-16 0 0 0 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 Annual Totals May-17 0 0 0 0 0 0 0 0 0 2015 2014 2013 0 0 0 0 may want 0 to print0 this information 0 0 0 0 0 You to0use as reference later. To delete these 0instructions, click the0border of0 this text box and then press the DELETE key. 0 0 0 0 0 0 0 0 Notes on Preparation 0 0 0 Cat 3 units sold Sale price @ unit Cat 3 TOTAL 0 0 0 Cat 4 units sold Sale price @ unit Cat 4 TOTAL 0 0 0 Cat 5 units sold Sale price @ unit Cat 5 TOTAL 0 0 0 Cat 7 units sold Sale price @ unit Cat 7 TOTAL Monthly totals: All Categories Nov-16 0 Cat 2 units sold Sale price @ unit Cat 2 TOTAL Cat 6 units sold Sale price @ unit Cat 6 TOTAL Oct-16 Sales History Current Month Ending mm/yy 0 0 0 0 Forecasting sales of your product or service is the starting point for the financial projections. The sales forecast is the key 0 0 0 0 0 0 to 0the whole 0financial plan, so it is0important 0to use realistic estimates. Divide0 your projected monthly sales into0 "Categories", which are natural divisions that make sense for your type of business. Typical categories might be: product 0 lines, departments, branch locations, customer groups, geographical territories, or contracts. Enter the actual category names in the first column, replacing the existing "cat.1, cat.2", etc. Enter annual sales, by 0 0 0 0 0 0 0 0 0 0 0 0 category, in the four "Sales History" columns on the right side of the sheet. (Startup businesses may delete this section.) Study your past sales records in detail. Note seasonal or other periodic fluctuations; determine what caused them and 0 when they are expected to recur. Be sure to build these fluctuations into your projections for the coming year. You may forecast sales in dollars using the rows labeled "Total". Or, if you prefer, you may enter sales in units, then indicate the 0 0 0 0 0 0 0 0 0 0 0 0 sales price per (@) unit, and the spreadsheet will automatically calculate the dollar sales volume. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Tutor Answer

JesseCraig
School: UT Austin

Thank you. Kindly inform me in case of any issue.

Break Even Analysis
Fixed costs
Labor
Rent
Loan repayment
Insurance
License
TOTAL FIXED COST
Variable costs
Electricity bills
Utilities
Miscelleneous
Telephone
Outside services
Repair & maintenance
Other expenses
Advertisement
Cost of materials & Equipment
Transportation
TOTAL VARIABLE COST

$200,000
$150,000
$100,000
$15,000
$225
$465,225
$108,000
$19,340
$14,400
$1,498
$4,935
$8,255
$72,000
$60,000
$5,598,920
$3,785,600
$9,672,948

Sales

$20,502,000

Contribution margin
Contribution margin as %

$10,829,052
52.81949078

Total Fixed cost/ Contribution margin as %

$880,791

Break Even Point as a %
4.296122345
Therefore, the Company has to sale about 4.3% of the sales to start realizing the profit


Profit and Loss Projection (12 Months)
Enter your Company Name here
Fiscal Year Begins

Cost of Sales
Materials
Labor
Transportation
Shiping
Packaging
Total Cost of Sales

15 3.8
150
300
150
100
715

20 4.9
150
305
160
115
750

Gross Profit

885

900

200 0.0
2 0.1
0 0.0

200 0.0
2 0.1
0 0.0

2 0.1

2 0.1

Expenses
Salary expenses
Payroll expenses
Outside services
Supplies (office and
operating)
Repairs and
maintenance
Advertising
Car, delivery and travel
Accounting and legal
Rent & Related Costs
Telephone
Utilities
Insurance

1
5
300
0
13
0
1

0.0
0.3
0.0
0.0
0.8
0.0
0.1
0.0

1
5
300
0
13
0
1

0.0
0.0
0.0
0.0
0.0
0 0.0

405
385
345
320
260
1,715

410
390
350
315
260
1,725

415
385
360
305
280
1,745

RL
Y

c-0
8

%

De

8
%

v-0

%

410
390
356
315
271
1,742

No

t-0
8

%

420
400
350
310
255
1,735

Oc

-08

415
395
345
320
265
1,740

Se
p

g-0
8

%

Au

%

Ju

l-0

8

8
%

n-0

%

425
380
345
315
255
1,720

Ju

Ma
y-0
8

r-0
8

%

420
375
340
310
255
1,700

420
380
365
300
285
1,750

25 6.0
150
310
165
120
770

25 5.9
150
312
170
125
782

30 7.4
150
308
165
122
775

30 7.3
150
315
170
125
790

20 4.8
150
320
160
115
765

35 8.3
150
321
165
125
796

35 8.5
150
325
170
130
810

37 8.9
150
330
175
135
827

40 9.5
150
331
175
140
836

930

938

940

935

975

939

932

918

914

200 0.0
2 0.1
0

200 0.0
2 0.1
0 0.0

200 0.0
2 0.1
0 0.0

200 0.0
2 0.1
0 0.0

200 0.0
2 0.1
0 0.0

200 0.0
2 0.1
0 0.0

200 0.0
2 0.1
0 0.0

200 0.0
2 0.1
0 0.0

200 0.0
2 0.1
0 0.0

2 0.1

2 0.1

2 0.1

2 0.1

2 0.1

2 0.1

2 0.1

2 0.1

2 0.1

1,680

0.0
0.3
0.0
0.0
0.8
0.0
0.1
0.0

Ap

%

415
370
335
305
255
1...

flag Report DMCA
Review

Anonymous
Awesome! Exactly what I wanted.

Similar Questions
Hot Questions
Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors