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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