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Financial Assumptions

The following table highlights the important assumptions made in this section.

Assumptions
Recurrent ratios
Average account receivable days 30
Average account payable days 1
Inventory days 0
% of sales in cash 100%
% of purchases in cash 100%
% of payroll for taxes & benefits 20%
Short-term interest rate 10
Long-term interest rate 10
% tax rate, federal plus state
Average COGS for website 70%
Average COGS for EBAY 85%

 

Costs of Sales
Year 1 Year 2 Year 3
Unit Sales (units):
website sales 1,179 7,200 18,000
ebay sales 162 250 500
Unit Prices ($):
website sales 70.76 70.76 70.76
ebay sales 75.00 75.00 75.00
Total Sales ($):
website sales 83,426 509,472 1,273,680
ebay sales 12,150 18,750 37,500
Total Sales ($) 95,576 528,222 1,311,180
Unit Cost ($):
website sales 49.53 49.53 49.53
ebay sales 63.75 63.75 63.75
Total Cost of Sales:
website sales 58,398 356,630 891,576
ebay sales 10,328 15,938 31,875
Total Cost of Sales 68,726 372,568 923,451

Profit and Loss Table

Go Green Yoga Mats will make a profit after its first year of business. For these projections, we assume that rent will be constant for the first three years of the companiesexistence. The model is based on low sales expectations.

Profit & Loss
Year 1 Year 2 Year 3
Sales ($) $95,576 $528,222 $1,311,180
Cost of Sales
Material ($) $68,726 $372,568 $923,451
Labor ($) $0 $0 $0
Other ($) $0
Total Cost of Sales $68,726 $372,568 $923,451
Gross Profit ($) $26,850 $155,654 $387,729
Operating Expenses ($)
Marketing and Advertising Expenses $0 $0 $0
Sales and Marketing Payroll $0 $0 $0
Ads ($) $1,200 $3,600 $6,000
Catalog ($) $0 $0 $0
Mailing ($) $0 $0 $0
Promotional Material ($) $600 $1,800 $3,000
Shows ($) $0 $0 $0
PR ($) $0 $0 $0
Training ($) $0 $0 $0
Total Marketing and Advertising Expenses $1,800 $5,400 $9,000
General and Administrative Expenses
Administration Payroll $0 $0 $0
Rent ($) $6,000 $6,000 $6,000
Leased Equipment ($) $0 $0 $0
Utilities ($) $0 $0 $0
Telephone ($) $60 $1,200 $1,200
Insurance ($) $0 $0 $0
Supplies ($) $600 $750 $1,000
Travel ($) $0 $0 $0
Depreciation ($) $0 $0 $0
Amortization ($) $0 $0 $0
Miscellaneous ($) $0 $0 $0
Total General and Administrative Expenses $6,660 $7,950 $8,200
Other Expenses
Consultants ($) $0 $0 $0
Legal ($) $0 $0 $0
Credit Card Fees $3,337 $20,379 $50,947
Other Payroll
Total Other Expenses ($) $3,337 $20,379 $50,947
Total Expenses ($) $11,797 $33,729 $68,147
Profit ($) $15,053 $121,925 $319,582
Interest Exp. ST $0 $0 $0
Interest Exp. LT $0 $0 $0
Taxes ($) $0 $0 $0
Net profit ($) $15,053 $121,925 $319,582

Sample Business Plan Financials Profit Monthly from The Startup Garage

Sample Business Plan Financials Profit Yearly from The Startup Garage


Cash Flow Table

Below is a chart and table of the company’s cash flow for the next three years.

Sample Business Plan Financials Cash Flow from The Startup Garage

Cash Flow
Year 1 Year 2 Year 3
Beginning Cash $0 15,053 136,978
Cash In:
Net Profit $15,053 $121,925 $319,582
Depreciation & Amort. $0 $0 $0
Change in Accts Payable $0 $0 $0
Current Borrowing $0 $0 $0
Long-term Borrowing $0 $0 $0
Increase Other Liabilities $0 $0 $0
Capital Input $0 $0 $0
Total Cash In 15,053 121,925 319,582
Cash Out:
Change in A/R $0 $0 $0
Change in Inventory $0 $0 $0
Change Other ST Assets $0 $0 $0
Capital Expenditures $0 $0 $0
Loan Repayment (ST) $0 $0 $0
Loan Repayment (LT) $0 $0 $0
Dividends $0 $0 $0
Owner Withdrawal $0 $0 $0
Total Cash Out $0 $0 $0
Net Cash Flow $15,053 $121,925 $319,582
Cash Balance $15,053 $136,978 $456,560

Balance Sheet

Below is the company’s projected balance sheet for the next three years.

Balance Sheet
Year 1 Year 2 Year 3
Current Assets
Cash $15,053 $136,978 $456,560
Accounts Receivable $0 $0 $0
Inventory 72 207 513
Deposits $0 $0 $0
Total Current Assets $15,126 $137,185 $457,073
Fixed Assets
Capital Assets $0 $0 $0
Less Accum Depre $0 $0 $0
Book Value $0 $0 $0
Other Assets $0 $0 $0
Total Assets $15,126 $137,185 $457,073
Current Liabilities
Accounts Payable $0 $0 $0
Short-term Notes $0 $0 $0
Other ST Liabilities $0 $0 $0
Total Current Liabilities $0 $0 $0
Long-term Liabilities
Total Liabilities $0 $0 $0
Beginning Capital $0 $0 $0
Profit (loss) $15,053 $136,978 $456,560
Owner’s Withdrawal $0 $0 $0
Capital – End of Period $15,053 $136,978 $456,560
Total Liab. & Equity $15,053 $136,978 $456,560

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