Final Project – Pro Forma

 Financial Model (Pro Forma) : The financial model, also known as, the Pro Forma is the story you tell your investors to make them interested in your venture from a financial standpoint.  you will complete a financial due diligence proposal for a potential investor. You will turn in the project as one excel .You must submit detailed financial models with explanatory notes showing how you calculated your projections in applicable sections. My focus here is not on “citations” and “sources”, but on helping you learn to find hard facts to base your entrepreneurial projections upon. Below are the sections to be included in the final project. Each section will be described in detail in file

   I. Format of Written Report: The pro-forma will be built using an Excel workbook template. You will additionally be expected to draft a single page executive summary that identifies key aspects of your business. Be sure to cite sources of information. Points will be deducted for failure to follow the report format.
 

Report Content: Use Internet, library, text resources, interviews, and any other research means appropriate to collect relevant information pertaining to the evaluation of your idea. 

Entrepreneurial Finance Final Project Description

As the culminating project for this course, you will complete a set of pro forma financial statements for a
hypothetical business model. As stated, before in lecture, the business does not need to be technology-focused
but should have an innovative approach to solving the problem.

you will come up with a business concept, define a list of assumptions, prepare a Pro Forma Income
Statement, Pro Forma Balance Sheet, and Pro Forma Statement of Cash Flows for the next 5 year projections of
the business.

The financial model will include the following aspects of the business and will support the company’s decisions
for requesting certain amounts of capital you are raising to make the business model viable, scalable, and
repeatable. The final work product will be submitted as an Excel Workbook and include the following tabs.

Name of Tab Brief Description Points
List of Assumptions These are the general business

assumptions you are making
prior to opening and will include
things like: payroll tax rates,
hours of operation, inventory
turnover, etc.

25

Pro Forma Income Statement This tab will include your sources
of revenue and costs associated
with generating that revenue

75

Pro Forma Balance Sheet This tab will include a five-year
projection of your assets,
liabilities, and owners’ equity at
the end of each fiscal year

75

Headcount Details This tab will outline how many
employees the company will
have and how you plan to expand
operations and what effect this
will have on the income
statement and balance sheet

25

Pro Forma Statement of Cash
Flows

This tab will show a
reconciliation of initial cash to
support the business along with
the expected flow of cash inflows
and outflows for the business

25

Presentation Each team will pitch their idea
and explain their financial model
to Prof B who will make an
investment of $5 M to the
venture

25

TOTAL 250

2

>Assumptions

Company

4

Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04

7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9%

10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

%

3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3%

10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60%

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60% 1.60%

34.0% 34.0% 34.0% 34.0% 34.0% 34.0% 34.0% 34.0% 34.0% 34.0% 34.0% 34.0% 34.0% 34.0% 34.0% 34.0% 34.0% 34.0% 34.0% 34.0% 34.0% 34.0% 34.0%

s

0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%

10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%

6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0%

Assumptions:

0%

0%

25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25%

Sample

General Assumptions

Operating Plan

Jan

–

0

Jan-04

Employment Related:

Payroll taxes

9%

7%

Employee benefits

1

0%

10%

Raise pool

3

Sales commissions

(Not Used at this time)

B&O Taxes:

Standard B&O rate

1.60%

% of sales subject to B&O

100%

Effective B&O rate

Income Tax Rate

34.0%

Financing Related:

Int rate:

Cash

Balance

0.1%

Int rate: Start up loans

10.0%

Int rate: Convertible notes

6.0%

Other

A/R (See BS)

0 – 30

31 – 60

70%

61 – 90

30%

91 – 120

A/P (% of expenses)

25%

&F &A Page &P of &N Denali Financial Consulting – &D &T

Income Statement

Operating Plan

Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04

2021

Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04

:

$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 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 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 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/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

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

Payroll taxes 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 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 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 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 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 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 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 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 $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 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

Other 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

Other 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 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

Sample Company

Profit & Loss, and Cash Flow

Total

Total 2014

Revenue

Subscriptions

$0

Open

Total revenue

Cost of Revenues:

Data Center

Merchant fees

Total cost of revenues

Gross margin

Gross margin %

ERROR:#DIV/0!

Operating expenses:

Employee

Headcount

Salaries

Commissions

Bonus

Employee benefts

Employee headcount subtotal

Recruiting

Professional fees

Rent & utilities

Sales & marketing

Travel & entertainment

Office expense & other

Subtotal

Operating income

Other inc (exp):

Interest income

Interest expense

Income (loss) before taxes

Income taxes

Net income (loss)

Cash Balance:

Net income (loss) from above

Cash Adjustments:

Capital purchases

Founder stock

Investors

Net change in cash

Cash –

Beginning

Cash – Ending

&F &A Page &P of &N Denali Financial Consulting – &D &T

Revenue & COR

Sample Company

Operating Plan

$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 $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 $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 $0 $0 $0 $0 $0 $0 $0 $0 $0

ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0!

Revenue & Cost of Revenue

Description

Dec-16

Jan-17

Feb-17

Mar-17

Apr-17

May-17

Jun-17

Jul-17

Aug-17

Sep-17

Oct-17

Nov-17

Dec-17

Jan-18

Feb-18

Mar-18

Apr-18

May-18

Jun-18

Jul-18

Aug-18

Sep-18

Oct-18

Nov-18

REVENUE

New Customers

Cumulative Customers

Annual subscription

Annual subscription revenue

COST OF REVENUE

Total Cost of Revenue

Gross Margin

Gross Margin %

Headcount Detail

Sample Company

Headcount Detail

Operating Plan

Name Position Base Slry Start Date Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Total Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Total
SALARIES: Name

Title

$0

42735.0

$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
Name Title $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

Name Title $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
Name Title $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
Name Title $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
Name Title $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
Name Title $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
Name Title $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
Name Title $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
Name Title $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
Name Title $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

Total Salaries

$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
Bonus Pool: Open $0 $0
Open 0 0

Open 0 0

Subtotal, Bonuses

$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
Total Salaries and bonuses

$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
Headcount

(Beg)

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
COMMISSIONS: Commission rate

10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% – 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% –
Commissions calculations: Commissions based on revenue

$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
% commission applied

0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% – 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% –
$ commissions applied

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
Total Salaries, Bonuses, and Commissions

$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
TAXES & BENEFITS: Assumptions (Linked): FICA, Medicare & Other 9.00% 7.00%

7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% – 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% –
Medical Benefits 10.00%

10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% – 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% –

Expenses

:

FICA, Medicare & Other $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
Medical Benefits 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
Total Taxes & Benefits

$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
RECRUITING:

Open 0 0
Open 0 0
Open 0 0

Total recruiting fees

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

&F &A Page &P of &N Denali Financial Consulting – &D &T

Expenses

Sample Company

Operating Plan

Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Total Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Jan-04 Total

$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 $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

Total $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

Total $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

Open $0 $0
Open 0 0
Open 0 0
Open 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

Legal:

Open $0 $0
Open 0 0
Open 0 0
Open 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 $0

$0 $0

0 0

0 0

0 0

0 0

Other 0 0

0 0

Total $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

	Operating Expenses
Other Operating expenses:
Total other operating expenses
Insurance:
Premium payments:
D&O
Liability
Workers Comp.
Travel & Entertainment:
Airfare
Lodging
Meals & Entertainment
Parking & Mileage
Rental car
Travel – Misc
Accounting &	Legal:
Accounting:
Total accounting
Total legal
Total Accounting and Legal
Sales & Marketing
Advertising
Business development
Forums & conferences
Salesforce
Rent Expense:

&F &A Page &P of &N Denali Financial Consulting – &D &T

5

Year

Projections

Year Year Year
1 2 3

REVENUE

– 0

– 0 – 0

— – 0 – 0
– 0 – 0
– 0 – 0
– 0 – 0
– 0 – 0
– 0 – 0

Revenue – 0 – 0 – 0
0% 0%

0 – 0 – 0

– 0 – 0 – 0

Gross Margin %

0% 0% 0%

Ron Johnson: Gross Margin % – Manually adjust your gross margin to your expectations for year 3 – 5.

Ron Johnson: Gross Margin % – Manually adjust your gross margin to your expectations for year 3 – 5.

Operating Expenses – 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

Company Name

(Dollars)

Beginning Year Year Year
Balance 1 2 3
Cash

– 0

– 0 – 0 – 0 – 0

– 0 – 0 – 0 – 0

– 0 – 0 – 0 – 0

Other – 0

$ 100,000.00 – 0 – 0 – 0

– 0 – 0 – 0

– 0 – 0 – 0

– 0 – 0 – 0 – 0

– 0 – 0 – 0 – 0

– 0

– 0 – 0 – 0 – 0

Other – 0 – 0 – 0 – 0

– 0 – 0 – 0 – 0

– 0 – 0 – 0 – 0

– 0 – 0 – 0 – 0

– 0 – 0 – 0 – 0

Other – 0 – 0 – 0

– 0 – 0 – 0 – 0

– 0 – 0 – 0 – 0

– 0 – 0

– 0 – 0 – 0 – 0

– 0 – 0

Net Income – 0

– 0 – 0 – 0 – 0

– 0 – 0 – 0 – 0

Company Name

(Dollars)

Year Year Year
1 2 3

Net Income (Loss)

– 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 Cash Flow – 0 – 0 – 0

– 0 – 0 – 0

Company Name

Draft 1.0

5 Year Income Statement Projection

Ron Johnson: PAGE-VIEW ================================ 5 YEAR INCOME STATEMENT PROJECTION This statement is prepared from the operating plan detail for the first two years (commonly called a “Bottoms-Up” approach) and from a summary percentage extrapolation basis, commonly called a “Top-Down” approach, for the last three years. The percentages in the middle of the worksheet are used to calculate revenue gross margin and expense growth. The blue fields are input fields. Some discreet number input cells are shown on the Balance Sheet.

(Dollars)

Product 1

– 0

—

COST OF GOODS SOLD

GROSS MARGIN

Ron Johnson: Gross Margin % – Manually adjust your gross margin to your expectations for year 3 – 5.

OPERATING EXPENSES

Operating Income

Net Margin

Interest Income

Interest Expense

Depreciation

Net Income

Net/Net Margin

Cumulative

Net Income (Loss)

3 Year Balance Sheet Projection

ASSETS

Current Assets

$ 100,000.00

Accounts Receivable (60)

Inventory

Deposits

Total Current Assets

Fixed Assets

Computer Equipment

– 0 Ron Johnson: Fixed Assets – Computers – This is the total amount of computer equipment you expect to have on hand at the end of the year.

Furniture & Fixtures

– 0 Ron Johnson: Fixed Assets – Furnishings – This is the total dollar value of furnishings you expect to have on hand at the end of this year.

Accum. Depreciation

Total Fixed Assets

Total Assets

LIABILITIES

Current Liabilities

Accounts Payable (30 days)

Line of Credit

Total Current Liabilities

Long-Term Liabilities

Notes Payable

Capital Lease

Total Long Term Liabilities

Total Liabilities

EQUITY

Capital Stock

Paid-In Capital

Retained Earnings

Total Equity

Total Equity & Liability

(difference)

5 Year Cash Flow Projection

Add Back: Depreciation

Changes in Working Capital

(Inc) Dec in Current Assets

(Inc) Dec in Fixed Assets

Inc (Dec) in Current Liabilities

Inc(Dec) in Long Term Liabilities

Increase In Funding

– 0 Ron Johnson: Increase in Funding – The additional amount of equity funding which will be required.

Cash Flow From Operations

Net Cash Flow

Beginning Cash Balance

ENDING CASH BALANCE