Financial Plan - Excel sheet

User Generated

Nmvm456

Business Finance

Description

I attached the template and one example that you have follow. Also, the details instractuion about each sheet is attached too.

Financial Plan

For full credit, make sure to:

  • have each section clearly labelled
  • include comments at the bottom of each spreadsheet to explain how you determined the numbers you've chosen and your assumptions.
  • compute all calculated fields using Excel formulas so I can see your basis for the numbers.
  • cite 3 sources somewhere in the plan; one of them may be the course textbook.

A Financial Template is attached for your use for this project, which is one Excel file containing the 5 sheets described below.


Financial Plan Contents:

Sheet 1: Startup Costs

Sheet 2: Revenue Streams and Sales Forecast

Sheet 3: Variable Costs and Economics of One Unit

Sheet 4: Fixed Costs

Sheet 5: Income Statement

Unformatted Attachment Preview

Financial Plan A Financial Template is attached for your use for this project, which is one Excel file containing the 5 sheets described below. For full credit, make sure to: • have each section clearly labelled • include comments at the bottom of each spreadsheet to explain how you determined the numbers you've chosen and your assumptions. • compute all calculated fields using Excel formulas so I can see your basis for the numbers. • cite 3 sources somewhere in the plan; one of them may be the course textbook. Financial Plan Contents: Sheet 1: Startup Costs 1. Using Exhibit 7-2 on page 228, to identify all relevant Startup Costs for your business. 2. If you use Exhibit 7-1, focus on the Startup Assets section more than the Startup Expense section of Exhibit 7-1 and only include one-time costs of starting your business (most of the Startup Expenses listed in this exhibit describe more of the ongoing rather than one-time expenses incurred). 3. Add Cash Reserves to the Startup Costs (the textbook recommends a cash amount equal to ½ of your Startup Costs – see bottom of pg. 227). 4. This sheet should contain a brief description of each item and the estimated cost (similar to Exhibit 7-1, Startup Assets section). Make sure to total your startup costs. 5. Below your spreadsheet, cite any sources you used to determine the financial estimates you included in this sheet. Sheet 2: Revenue Streams and Sales Forecast 1. Determine your product unit size (from page 107 in textbook) and choose only 1 product category for your business to keep this exercise simple. Each product category is called a revenue stream. Give a brief description for the product category. 2. State the average price you will charge for one unit of your revenue stream. 3. Determine your sales forecast for the first 12 months of operation by quantities you expect to sell each month. Multiply the monthly sales forecast by your price per unit to project your expected revenue for each month of your first year of business. 4. Multiply the total revenue for year one by an estimated growth rate, such as 5% or 10%, for year 2, then the same for year 3. You do not need monthly projections for years 2 and 3, only annual projections. 5. Below your spreadsheet, cite any sources you used to determine the financial estimates you included in this sheet. Sheet 3: Variable Costs and Economics of One Unit 1. Determine estimated material and labor costs for one unit of your product, using what you know about the product and doing some basic research on this. Also, if there are any other variable costs which apply to your product, such as sales commissions, packaging costs, or shipping costs, include these in your cost of materials figure. 2. Using Exhibits 7-4 through 7-6, develop an Economics of One Unit Analysis, computing Gross Profit for one unit of your revenue stream. 3. Make sure you have a positive Gross Profit number; otherwise, you will not have enough money to pay your fixed costs. 4. Below your spreadsheet, cite any sources you used to determine the financial estimates you included in this sheet. Sheet 4: Fixed Costs 1. Using the information on pp. 233, determine all applicable fixed operating costs, along with estimated monthly amounts and totals. 2. Included in this will be your Personnel needs, which may be among your highest expenses. List types of personnel, such as Manager, Clerk, Customer Service, etc. Determine the annual salaries for these positions, then divide by 12 to get monthly salaries and multiply by the number of people in this position you will hire at the start of your business. 3. List all fixed cost items, along with your estimate for the monthly cost of each item. Do NOT worry about Depreciation for this exercise! 4. Total your monthly fixed costs. 5. Below your spreadsheet, cite any sources you used to determine the financial estimates you included in this sheet. Sheet 5: Income Statement 1. Using data from the prior sheets, assemble Income Statement projections for each month of your first year, then Years 2 and 3. 2. Copy your Revenue data from part II-c & d for your Sales/Revenue section, including your quantities sold per month. 3. Multiply your quantities sold by your unit costs of material and labor, for your Cost of Goods Sold figures. 4. Calculate Gross Profit, which is Revenue minus Cost of Goods Sold. 5. Next, add your monthly fixed costs. 6. Subtract total fixed costs from Gross Profit for the Net Profit before Taxes. 7. Set your tax rate at 25% and apply to the result of “f” – Net Profit before Taxes. 8. Compute your Net Income by subtracting taxes from Net Profit before Taxes. Sum the 12 months of your first year for a Year 1 total. Estimate Years 2 and 3 by adding a growth rate of 5 or 10%. 9. Additional Notes: a. "Operating Profit" and "Profit/Loss before Interest and Taxes" are the same, for our simple income statement. You may choose to list one of them. b. Leave the monthly tax expenses blank and only compute taxes due for the entire Year 1, since income taxes are really paid out once a year (though in accounting, taxes are usually included in monthly income statements since you need to plan to put the cash aside for later payment). By only dealing with taxes at the end of Year 1, this makes dealing with taxes more simple and straightforward. c. If your total Operating Profit or Net Profit/Loss before taxes for Year 1 is negative, make your tax amount for the year $0. Then your Profit/Loss after taxes will be the same as the before tax amount. d. In order to make good revenue projections for Years 2 and 3 and since your monthly revenue is generally a great deal higher by the end of the year (month 12), compute Year 2 Revenue as follows: Month 12 Revenue * 12 months/year (to get a total year revenue amount) * 1.05 growth = Year 2 Revenue projection (assuming a 5% growth rate). In this way, your year 2 revenue represents the successful growth of your business, rather than being understated because of the low sales most businesses have in their first months of operation. e. By making these changes, you may find that Years 2 and 3 are now profitable and better reflect the profitability that you're attaining by the end of Year Course #: Student Name: Business Name: Startup Costs (One time only costs) Total Startup Costs: Reserve cash (1/2 of Startup Costs): Total Startup Funds Needed: Sources of Information: Comments: Cost Student Name: Business Name: Product Category: Unit Size: Average Price for the Product: Revenue Forecast # Units Sold # Units * Price per unit (multiply) Sources of Information: Comments: Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total Yr 1 Yr 2 (Yr 1 * growth rate) Yr 3 (Yr 2 * growth rate) Student Name: Business Name: Cost of Goods Sold per Unit: Estimated Material Cost per Unit Estimated Labor Cost per Unit Total Cost of Goods Sold per Unit Other Variable Costs per Unit: Packaging Costs per Unit Sales Commissions per Unit Shipping Costs per Unit Total Other Variable Costs per Unit EOU Analysis Selling Price COGS Material cost per unit Labor cost per unit Total COGS per unit Total Other Variable Costs per unit Gross Profit/ Contribution Margin Sources of Information: Comments: Amount Student Name: Business Name: Personnel (Human Resource) Needs* Manager Clerk Customer Service Bookkeeper Fixed Operating Costs ** Personnel (Human Resource) Salaries * Manager Clerk Customer Service Bookkeeper Other Fixed Operating Costs: Startup Costs (Total is fine; Month 1 only) Total Fixed Operating Costs * Note - the personnel types listed are suggestions ONLY. These should be customized for your business. ** Note - Startup Costs should be included in Month 1 Fixed Operating Costs Sources of Information: Comments: Monthly Salary (divide Annual Annual Salary/Com Salary by pensation 12) Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total Yr 1 Yr 2 (Yr 1 * growth rate) Yr 3 (Yr 2 * growth rate) Student Name: Business Name: Month 1 Sales/Revenue COGS Gross Profit Fixed Operating Costs Net Profit/Loss before Taxes Taxes (25%)- assuming startup's lower profits Net Profit/Loss after Taxes Month in which Breakeven occurs: Sources of Information: Comments: Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total Yr 1 Yr 2 (Yr 1 * growth rate) Yr 3 (Yr 2 * growth rate) Student Name: Business Name: Empanadas an Bread Startup Costs (One time only costs) Cost (Option 1) Cost (Option 2) Sources Commercial Oven $ 22,068.70 $ 9,607.40 Professional Mixer $ 3,259.00 $ 2,031.54 Refrigerator $ 3,373.92 $ 1,635.00 Deep Frier $ 587.51 $ 259.90 Non-refrigerated display case $ 2,083.22 $ 1,540.00 Coffee Machine $ 2,699.00 $ 1,895.00 Refrigerated Display Cabinet $ 2,757.70 $ 1,204.50 Tables and Chairs Each $ $ 3,992.00 499.00 $ $ 2,512.00 314.00 Rent Deposit $ 3,300.00 $ Computer Decoration Total Startup Costs: $ $ $ 3,000.00 1,000.00 48,121.05 $ $ $ 1,750.00 http://fayettevillenc.gov/government/city-departments/economic-and-business-development/xceligent - Ramsey Plaza (1,600 sf*$25)/12 http://fayettevillenc.gov/government/city-departments/economic-and-business-development/xceligent - River Landing Shopping Center (1,400 sf*$15)/12 1,500.00 500.00 24,435.34 Reserve cash (1/2 of Startup Costs): $ 24,060.53 $ 12,217.67 Total Startup Funds Needed: $ 72,181.58 $ 36,653.01 •http://www.webstaurantstore.com/suffixitem/350JAOP14/208*3.html?utm_source=Google&utm_medium=cpc&utm_campaign=GoogleShopping&gclid=CjwKEAjw1qHABRDU9qaXs4rtiS0SJADNzJisV9VNdh7GvX1d-qIDJQXWyGbe4fZX0r25oaYCMVqDlBoCwMLw_wcB •http://www.webstaurantstore.com/suffixitem/350JA8/240*1.html?utm_source=Google&utm_medium=cpc&utm_campaign=GoogleShopping&gclid=Cj0KEQjw4rbABRD_gfPA2-uQqroBEiQA58MNdCb4v98HMaMM5J_kGlfrERds5qs4l6GWid-rll_i8o8aAoMh8P8HAQ •http://www.webstaurantstore.com/vollrath-40758-30-qt-commercial-planetary-floor-mixer-with-3-speeds-1-hp/92240758.html?utm_source=Google&utm_medium=cpc&utm_campaign=GoogleShopping&gclid=Cj0KEQjw4rbABRD_gfPA2-uQqroBEiQA58MNdEBmTrDKpmezbCrKz0bFzYgdcPten23XED9mHi1F_I0aAmnZ8P8HAQ •https://www.katom.com/175-40757.html?zmam=29342707&zmas=1&zmac=32&zmap=175-40757&utm_source=google&utm_medium=adwords&utm_campaign=CSE&gclid=Cj0KEQjw4rbABRD_gfPA2-uQqroBEiQA58MNdGRiXAhqINbP21wMQ0SraO5w7BPxEixpSiAJ7cas_uYaAih28P8HAQ •http://www.webstaurantstore.com/turbo-air-tsr-49sd-54-super-deluxe-two-section-solid-door-reach-in-refrigerator-49-cu-ft/902TSR49SD.html?utm_source=Google&utm_medium=cpc&utm_campaign=GoogleShopping&gclid=Cj0KEQjw4rbABRD_gfPA2-uQqroBEiQA58MNdFpA32QLj1AryZK9J3QdAsukGgQ4NtXx0hiTZqgRY1EaAr0g8P8HAQ •http://www.chefsfirst.com/Refrigerator-Reach-In-Solid-Door-Bottom-Mount-p/CFFCFBM2DR.htm?gclid=CjwKEAjw1qHABRDU9qaXs4rtiS0SJADNzJisQGUoQJDv6mBoB10b-TMUvsdANz6yOfliSQHWkMcmoBoCsozw_wcB •http://www.webstaurantstore.com/waring-wdf1000d-double-10-lb-commercial-countertop-deep-fryer-set-120v/929WDF1000D.html?utm_source=Google&utm_medium=cpc&utm_campaign=GoogleShopping&gclid=Cj0KEQjw4rbABRD_gfPA2-uQqroBEiQA58MNdJX3qeOKhwYMGKo1NU1UpUzLMGN-_p6Q66BNqDmPVEUaAgC58P8HAQ •http://www.rakuten.com/prod/commercial-electric-20l-deep-fryer-w-timer-and-drain-stainless-steel/257517195.html?listingId=313124594&sclid=pla_google_YescomUSA&adid=29963&gclid=Cj0KEQjw4rbABRD_gfPA2-uQqroBEiQA58MNdNLtFJSUY1teASEeChuwyYzVEU1RLr7yz9pZeBZH0OEaAm5o8P8HAQ# •http://www.ebay.com/itm/Coolman-Commercial-Dry-Non-Refrigerated-Counter-Bakery-Pastry-Display-Case-72-/221595425376?hash=item33981dda60:m:m5Mxj4PGF1ckYoSmB83ai-g •http://www.eliterestaurantequipment.com/leader-cbk48-d-48-dry-bakery-display-case-counter-height.html •https://www.wholelattelove.com/products/profitec-pro-700-dual-boiler-espresso-machine?gclid=Cj0KEQjw4rbABRD_gfPA2-uQqroBEiQA58MNdOdrEV0Aqlhh2ZiURvxtMzd5ly0wNW--oov2dy0KfWMaAvLV8P8HAQ •http://www.ebay.com/itm/NEW-1-Group-commercial-Espresso-Cappuccino-Machine-GREAT-DEAL-/162114333978?hash=item25bec46d1a:g:0OQAAOSwjVVVw5o5 •http://www.eliterestaurantequipment.com/leader-hdl60-60-double-duty-refrigerated-deli-display-case.html?SID=v33p51rkcibs6ouiqooctmhu27&gclid=Cj0KEQjw4rbABRD_gfPA2-uQqroBEiQA58MNdEMrekT-1FVQ17suRqZhEPNuSS92-AwosRpzF09ekvQaAmd98P8HAQ •http://www.ebay.com/itm/Marchia-MDC130-31-Refrigerated-Bakery-Display-Case-1-Year-Warranty-/121997192322?hash=item1c67996c82:g:HZoAAOSwR5dXRdcq •http://www.centralrestaurant.com/Contour-Wall-Booth---Full-Size-4-Seats-24-inx44-in-Top-c130p29969.html?st-t=google_shopping&gclid=Cj0KEQjw4rbABRD_gfPA2-uQqroBEiQA58MNdDeoNjkW8u9Mq5fiqE9c9kqTW5I1vTVpqmOmG-sYDLQaAp9r8P8HAQ •http://www.centralrestaurant.com/Flash-Furniture-MD-0019-GG-30-Square-Black-Laminate-Table-Set-with-4-Wood-Slat-Back-Metal-Bar-Stools---Black-Vinyl-Seat-c189p38943.html Sources of Information: Entrepreneurship: Starting and Operating a Small Business. 4th Edition - Chapter 7 Comments: http://www.askdavetaylor.com/what_is_netnetnet_nnn_on_a_commercial_lease/ Student Name: Business Name: Empanadas an Bread Product Category: Snack/ Baking Unit Size: Half Hand size Average Price for the Product: $3.00 Revenue Forecast # Units Sold Price Per Unit Approximate Total Revenue Units per day Days worked Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total Yr 1 1,620 1,920 2,700 2,080 2,430 2,600 2,970 2,565 3,380 4,320 4,420 5,670 36,675 $ 2.50 $ 2.50 $ 2.50 $ 2.50 $ 2.50 $ 2.50 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 4,050 $ 4,800 $ 6,750 $ 5,200 $ 6,075 $ 6,500 $ 8,910 $ 7,695 $ 10,140 $ 12,960 $ 13,260 $ 17,010 $ 103,350 60 27 80 24 100 27 80 26 90 27 100 26 110 27 95 27 130 26 160 27 170 26 Sources of Information: http://www.foodgal.com/2010/05/empanada-mania/ http://www.portafolio.co/negocios/empresas/tipicas-cerca-venta-millon-empanadas-mes-60954 http://lemurprensa.blogspot.com/2008/12/un-personaje-con-sabor-de-empanada.html http://www.nj.com/entertainment/index.ssf/2015/04/njs_best_empanadas_-_just_in_time_for_national_emp.html https://www.2degreesnetwork.com/groups/2degrees-community/resources/bakery-market-2015-2019-global-industry-trends-size-growth-rate-7-and-forecast-opportunity/ Entrepreneurship: Starting and Operating a Small Business. 4th Edition - Chapter 5 Comments: Some sources are in spanish but they helped me understand some concepts The numbers for the days worked vary according to the number of days in each month, and also assuming the business will only open 6 days a week. Price changes during the seven month according to the penetration pricing strategy. Pg 163 I did not applied thegrowth rate to the price, since I do not think the price can increase for the size of the product. 210 27 1385 317 Yr 2 (Yr 1 * Yr 3 (Yr 2 * growth rate) growth rate) 39,242.25 43,558.90 1.07 1.11 $ 110,584.50 $ 122,748.80 Student Name: Business Name: Empanadas an Bread Amount Cost of Goods Sold per Unit: Estimated Material Cost per Unit Estimated Labor Cost per Unit Total Cost of Goods Sold per Unit $ 0.90 $ 0.45 $ 1.35 Other Variable Costs per Unit: Packaging Costs per Unit Sales Commissions per Unit Shipping Costs per Unit Total Other Variable Costs per Unit $ $ $ $ EOU Analysis Selling Price COGS Material cost per unit Labor cost per unit Total COGS per unit Total Other Variable Costs per unit Gross Profit/ Contribution Margin Material Cost Ingredients Flour Meat Potatoes Onions Bell Pepper Oil Salt Seasoning Total N/A - $ 2.50 $ 0.90 $ 0.45 $ $ 1.15 Price $ $ $ $ $ $ $ $ 3.49 10.30 2.49 1.29 2.58 11.99 1.29 3.38 Pounds 2.2 2 5 2 2 $ 3.00 $ 0.90 $ 0.45 $ 1.35 Cost per each $ 0.09 $ 0.26 $ 0.06 $ 0.03 $ 0.06 $ 0.30 $ 0.01 $ 0.08 $ 0.90 $ 1.35 $ $ 1.65 Labor People 1 Labor Cost P/U Sources of Information: https://www.comparefoodsfreeport.com/frontend/search/harina?filter=all Entrepreneurship: Starting and Operating a Small Business. 4th Edition - Chapter 3 Comments: I estimated how many empanadas will be made with the amount of ingredients listed,according to my experience. However prices might be inflated because I am buying per unit instead of wholesale. Rate per hour Empanadas $ 9.00 $ 20.00 $ 0.45 Units 1 1 2 # of units 40 40 40 40 40 40 100 40 Student Name: Business Name: Empanadas an Bread Personnel (Human Resource) Needs* Manager/Customer service Kitchen Prep #1 Part time Kitchen Prep #2 Part time Baker #1 part time Baker #2 part time Bookkeeper part time Fixed Operating Costs ** Personnel (Human Resource) Salaries * Manager/Customer service Kitchen Prep #1 Kitchen Prep #2 Baker #1 Baker #2 Bookkeeper Total Salaries Other Fixed Operating Costs: Startup Costs (Total is fine; Month 1 only) Rent Utilities Insurance Total Fixed Operating Costs Sources of Information: Insurance Rent Annual Salary/ Compensation $ 18,432 $ 9,216 $ 9,216 $ 9,216 $ 9,216 $ 12,960 $ $ $ $ $ $ Month 1 Monthly Salary 1,536 768 768 768 768 1,080 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total Yr 1 Yr 2 (Yr 1 * gr. rt) Yr 3 (Yr 2 * gr. rt) $ $ $ $ $ 768 768 768 768 1,080 $ $ $ $ $ $ 768 768 768 768 1,080 $ $ $ $ $ $ 1,536 768 768 768 768 1,080 $ $ $ $ $ $ 1,536 768 768 768 768 1,080 $ $ $ $ $ $ 1,536 768 768 768 768 1,080 $ $ $ $ $ $ 1,536 768 768 768 768 1,080 $ $ $ $ $ $ 1,536 768 768 768 768 1,080 $ $ $ $ $ $ 1,536 768 768 768 768 1,080 $ $ $ $ $ $ 1,536 768 768 768 768 1,080 $ $ $ $ $ $ 1,536 768 768 768 768 1,080 $ $ $ $ $ $ 1,536 768 768 768 768 1,080 $ $ $ $ $ $ 1,536 768 768 768 768 1,080 $ $ $ $ $ $ 18,432 9,216 9,216 9,216 9,216 12,960 $ $ $ $ $ $ 19,722.24 9,861.12 9,861.12 9,861.12 9,861.12 13,867.20 $ $ $ $ $ $ 21,891.69 10,945.84 10,945.84 10,945.84 10,945.84 15,392.59 $ 4,152 $ 4,152 $ 5,688 $ 5,688 $ 5,688 $ 5,688 $ 5,688 $ 5,688 $ 5,688 $ 5,688 $ 5,688 $ 5,688 $ 68,256 $ 73,033.92 $ 81,067.65 $ 36,653 $ $ 700 450 $ $ $ 1,750 700 450 $ $ $ 1,750 700 450 $ $ $ 1,750 700 450 $ $ $ 1,750 700 450 $ $ $ 1,750 700 450 $ $ $ 1,750 700 450 $ $ $ 1,750 700 450 $ $ $ 1,750 700 450 $ $ $ 1,750 700 450 $ $ $ 1,750 700 450 $ $ $ 1,750 700 450 $ $ $ 19,250 8,400 5,400 $ $ $ 20,597.50 8,988.00 5,778.00 $ $ $ 22,863.23 9,976.68 6,413.58 $ 41,955 $ 7,052 $ 8,588 $ 8,588 $ 8,588 $ 8,588 $ 8,588 $ 8,588 $ 8,588 $ 8,588 $ 8,588 $ 8,588 $ 101,306 $ 108,397 $ 201,389 https://foodservices.insureon.com/resources/cost/bakeries http://fayettevillenc.gov/government/city-departments/economic-and-business-development/xceligent - River Landing Shopping Center (1,400 sf*$15)/12 Entrepreneurship: Starting and Operating a Small Business. 4th Edition - Chapter 7 Comments: I created a new worksheet explaining each worker salary. There are also 4 people working because they are part timers working 3 days a week, 8 hours a day. Assuming the business will only open 6 days a week. Student Name: Business Name: Empanadas an Bread 1 Person Days working per week Hours per day Total hours per week # of weeks Total hours per month Rate per hour Total Wages per month Total wages per year $ 8 $ 768 $ 9,216 4 people Employees Total Wages per month Total per month 4 $ 768 $ 3,072 Sources of Information: Bookkeper Manager Part timer 3 8 24 4 96 Manager Days working per week Hours per day Total hours per week # of weeks Total hours per month Rate per hour Total Wages per month Total wages per year 6 8 48 4 192 $ 8 $ 1,536 $ 18,432 http://www.payscale.com/research/US/Job=Bookkeeper/Hourly_Rate Although the manager is me, I am assuming I am paying myself from the second month the same For the part timer I assumed I would pay each $8 an hour, only working 3 days a week, in order fo Bookkeeper Days working per week Hours per day Total hours per week # of weeks Total hours per month Rate per hour Total Wages per month Total wages per year 3 6 18 4 72 $ 15 $ 1,080 $ 12,960 self from the second month the same hourly rate as a part timer, with the difference that I would work all 6 days. only working 3 days a week, in order for them to not be considered full time workers. Student Name: Business Name: Empanadas an Bread Cells that contain revenue or profit Costs or values that need to be substracted from revenue or profit/loss Cells that have a value less than $0.00. Montly Income Statements Sales/Revenue COGS Gross Profit Fixed Operating Costs Net Profit/Loss before Taxes Taxes (25%) Net Profit/Loss after Taxes Month 1 Month 2 $ 4,050.00 $ 4,800.00 $ 1,459.46 $ 1,729.73 $ 2,590.54 $ 3,070.27 $ 41,955.01 $ 7,052.00 $ (39,364.47) $ (3,981.73) $ $ $ (39,364.47) $ (3,981.73) Year One Income Statement Sales/Revenue COGS Gross Profit Fixed Operating Costs Net Profit/Loss before Taxes Taxes (25%) Net Loss after Taxes Total Yr 1 $ 103,350.00 $ 33,797.26 $ 69,552.74 $ 134,887.01 $ (65,334.27) $ $ (65,334.27) $ $ $ $ $ $ $ Month 3 6,750.00 2,432.43 4,317.57 8,588.00 (4,270.43) (4,270.43) $ $ $ $ $ $ $ Month 4 5,200.00 1,873.87 3,326.13 8,588.00 (5,261.87) (5,261.87) $ $ $ $ $ $ $ Month 5 6,075.00 2,189.19 3,885.81 8,588.00 (4,702.19) (4,702.19) Year Two Projected Income Statement 7% (Yr 1 * 7% gr) Sales/Revenue $ 218,408.40 COGS $ 75,304.79 Gross Profit $ 143,103.61 Fixed Operating Costs $ 110,269.92 Net Profit/Loss before Taxes $ 32,833.69 Taxes (25%) $ 8,208.42 Net Profit after Taxes $ 24,625.27 $ $ $ $ $ $ $ Month 6 6,500.00 2,342.34 4,157.66 8,588.00 (4,430.34) (4,430.34) $ $ $ $ $ $ $ Month 7 8,910.00 2,675.67 6,234.33 8,588.00 (2,353.67) (2,353.67) $ $ $ $ $ $ $ Month 8 7,695.00 2,310.81 5,384.19 8,588.00 (3,203.81) (3,203.81) $ $ $ $ $ $ $ Month 9 10,140.00 3,045.04 7,094.96 8,588.00 (1,493.04) (1,493.04) Year Three Projected Income Statement 11% (Yr 2 * 11% gr) Sales/Revenue $ 242,433.32 COGS $ 83,588.32 Gross Profit $ 158,845.01 Fixed Operating Costs $ 122,399.61 Net Profit/Loss before Taxes $ 36,445.40 Taxes (25%) $ 9,111.35 Net Profit after Taxes $ 27,334.05 Month in which Breakeven occurs: Month 10 Sources of Information: All sources of these numbers are on the previews sheets and if one makes a change in the previews sheet, it will reflect in the others. Entrepreneurship: Starting and Operating a Small Business. 4th Edition - Chapter 8 Comments: I created a new sheet with the COGS total, since there was not reallly a total for it. For fixed costs I used Total Startup Funds Needed and not Total start up costs because I was doubtful of which one use, so I decided for the biggest number. Only Revenue, COGS, and Fixed Costs need to be multiplied by the growth rate, as Gross Profit , Net Profit before and after tax are totals of the subtraction. Month 10 $ 12,960.00 $ 3,891.89 $ 9,068.11 $ 8,588.00 $ 480.11 $ 120.03 $ 360.08 Month 11 Month 12 $ 13,260.00 $ 17,010.00 $ 3,981.98 $ 5,864.86 $ 9,278.02 $ 11,145.14 $ 8,588.00 $ 8,588.00 $ 690.02 $ 2,557.14 $ 172.51 $ 639.29 $ 517.52 $ 1,917.86 Student Name: Estefania Sepulveda Verdesoto Business Name: Empanadas an Bread Cost of Goods Sold Number of Empanadas sold COGS per unit Total COGS Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 1,620 1,920 2,700 2,080 2,430 2,600 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 1,459.46 $ 1,729.73 $ 2,432.43 $ 1,873.87 $ 2,189.19 $ 2,342.34 Comments: COGS per unit is less than the one presented on the Sheet 3 as I took out labor; I was paying double labor. Sources of information: Sierra Johnson - Classmate Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 2,970 2,565 3,380 4,320 4,420 6,510 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 2,675.67 $ 2,310.81 $ 3,045.04 $ 3,891.89 $ 3,981.98 $ 5,864.86
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Explanation & Answer

Attached.

Budget Worksheet
1. Calculate Your Income: Determine your net income value by subtracting estimated taxes
and fees from your gross income.
2. Calculate Your Expenses: Estimate how much you will spend in a full year for each of
the 11 categories listed in the lesson.
3. Put It All Together: Using the budget below compile and present calculated income and
expenses.

Career ​ Nurse ​(use the career from assignment 02.02)

Yearly Budget

Income (from career in
02.02)

​$50,930

Gross

Net

$65,00

$45,000

Entertainment

Yearly Cost

Video/DVD

$5.00

Vacation

$700

Other

$300

Subtotals

$1,005

Other Credit Debt

Yearly Cost

Student Loan

$3,000

Credit Card

$400

Credit Card

$400

Other

$300

Subtotals

$4,100

Utilities

Yearly Cost

Phone and/or Cell Phone

$580

Cable and Internet

$960

Electric and Gas

$2,000

Water and Sewer

$360

Waste Removal

$100

Subtotals

2,000

Personal Care

Yearly Cost

Health Insurance

$900

Other Medical Costs

$400

Hair/Nails

$50

Clothing & Laundry

$300

Health Club

$0

Organization Dues or Fees

$50

Other

$300

Subtotals

2,000

Gifts and Donations

Yearly Cost

Holidays and Birthdays

$200

Charity Donations

$100

Other

$200

Subtotals

$500

Housing

Yearly Cost

Mortgage or rent

$13,200

Maintenance or repairs

$500

Supplies

$400

Home Insurance

$1000

Furnishings

$2,500

Subtotals

17,600

Transportation

Yearly Cost

Vehicle Payment

Own a vehicle

Bus/Taxi Fare

$0

Automobile Insurance

$2,900

Licensing

$200

Fuel

$950

Maintenance

$1000

Other

$100

Subtotals

5,150

Food

Yearly Cost

Groceries

$ 1,200

Dining Out

$600

Subtotals

$1,800

Pets

Yearly Cost

Food

$100

Medical

$200

Grooming

$50

Toys

$50

Other

$50

Subtotals

$450

Savings or Investments

Yearly Cost

Retirement Account

Not retiring

Investment Account

$0

Emergency Savings

$5,000

Subtotals

$5,000

Total Yearly Expenses (this is the total of all the subtotals)

39,605

Difference (net income minus expenses; from the top of assignment)

$5,395

Reflecting on this Activity
1. Why is budgeting important to your life?
Budgeting is important because it allows me to keep track of my spendings and its a great way to
make sure I don’t run out of money.
2. Describe your experience with this process. Was it ea...


Anonymous
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