Download pdf - Cafe Financial Model

IntroductionFinancial Projection ModelThis spreadsheet walks you through the process of developing an integrated set of financial projections.To use this model, simply complete any information asked for found in the color yellow.Example: Fill in boxes that look like this0.0A number found in the color green is optional information that you can complete.Example: Check these assumptions0.0Otherwise, any information found in black type is automatically calculated for you.Although the cells that are calculated are locked (or protected), you can turn off this protection to modify the sheets.To do this, select "Tools" from the menu bar at the top of the screen. Then select, "Protection."Finally, select "Unprotect Sheet" and you will be able to edit any labels or formulas.Before you begin, we need some information about your business to best customize your financial statements.Please enter the name of your business in the box below:

THE FOOD DOOFS CAFEThe first six worksheets in this workbook are steps you will need to complete. They are titled:1. Required Start-Up Funds2. Salaries and Wages3. Fixed Operating Expenses4. Projected Sales Forecast (2 sheets)5. Cash Receipts and DisbursementsThe sixth step titled, "Beginning Balance Sheet" is for existing businesses only.Begin by clicking on the tabs belowq

1. Required Start-Up FundsTHE FOOD DOOFS CAFE3-Jul-15Required Start-Up Funds

Required Start-Up FundsAmountTotalsDepreciationNotesFixed AssetsReal Estate0.0Buildings0.020.00 yearsLeasehold Improvements200,0007.00 yearsEquipment200,0007.00 yearsFurniture and Fixtures60,0005.00 yearsVehicles120,0005.00 yearsOther Fixed Assets50,0005.00 yearsTotal Fixed Assets630,000

Operating CapitalPre-Opening Salaries and Wages100,000Prepaid Insurance Premiums10,000Beginning Inventory50,000Legal and Accounting Fees50,000Rent Deposits840,000Utility Deposits0.0Supplies50,000Advertising and Promotions15,000Licenses100,000Other Initial Start-Up Costs0.0Working Capital (Cash On Hand)1,000,000Total Operating Capital2,215,000

Total Required Funds$2,845,000

Sources of FundingAmountTotalsLoan RateTerm in MonthsMonthly PaymentsOwner's Cash Injection0.00%0.0Outside Investors0.00%0.0Additional Loans or DebtCommercial Loan100.00%2,845,0009.00%84.00$45,773.43Commercial Mortgage0.00%0.09.00%240.00$0.00Total Sources of Funding100.00%$2,845,000$45,773.43

2. Salaries and WagesTHE FOOD DOOFS CAFE3-Jul-15Salaries and Wages

Salaries and Related Expenses#AssumptionsWage BaseMonthlyYear OneYear TwoYear Three

Percent Change3.00%3.00%

Salaries and WagesOwner's Compensation00.00.00.00.0Salaries00.00.00.00.0WagesFull-Time Employees662,400748,800771,264794,402Estimated Hours Per Week40.00Estimated Rate Per Hour$60.00Part-Time Employees00.00.00.00.0Estimated Hours Per Week20.00Estimated Rate Per Hour$60.00Independent Contractors0.00.00.00.0Total Salaries and Wages662,400748,800771,264794,402

Payroll Taxes and BenefitsSocial Security6.20%$102,0003,86946,42647,81849,253Medicare1.45%90510,85811,18311,519Federal Unemployment Tax (FUTA)0.80%$7,00028336336336State Unemployment Tax (SUTA)2.70%$7,000951,1341,1341,134Employee Pension Programs0.00%0.00.00.00.0Worker's Compensation0.00%0.00.00.00.0Employee Health Insurance0.00%0.00.00.00.0Other Employee Benefit Programs0.00%0.00.00.00.0Total Payroll Taxes and Benefits4,89658,75360,47262,242

Total Salaries and Related Expenses67,296807,553831,736856,644

3. Fixed Operating ExpensesTHE FOOD DOOFS CAFE3-Jul-15Fixed Operating Expenses

Fixed Operating ExpensesMonthlyYear OneYear TwoYear ThreeNotes

Percent Change3.00%3.00%

ExpensesAdvertising$1,00012,00012,36012,731Car and Truck Expenses1,50018,00018,54019,096Commissions and Fees1,50018,00018,54019,096Contract Labor0.00.00.00.0Credit Card and Bank Charges0.00.00.00.0Customer Discounts and Refunds0.00.00.00.0Dues and Subscriptions0.00.00.00.0Entertainment0.00.00.00.0Insurance (Liability and Property)1,00012,00012,36012,731Internet5006,0006,1806,365Legal and Professional Fees5,00060,00061,80063,654Office Expenses1,50018,00018,54019,096Postage and Delivery5006,0006,1806,365Rent (on business property)100,0001,200,0001,236,0001,273,080Rent of Vehicles and Equipment0.00.00.00.0Repairs and Maintenance5,00060,00061,80063,654Supplies30,000360,000370,800381,924Telephone and Communications2,00024,00024,72025,462Travel5,00060,00061,80063,654Utilities35,000420,000432,600445,578Total Expenses189,5002,274,0002,342,2202,412,487

Other ExpensesDepreciation8,595103,143103,143103,143InterestCommercial Loan20,304243,647214,976183,616Commercial Mortgage0.00.00.00.0Line of Credit0.00.00.00.0Total Other Expenses28,899346,790318,119286,759

Total Fixed Operating Expenses218,3992,620,7902,660,3392,699,245

4. Projected Sales ForecastTHE FOOD DOOFS CAFE3-Jul-15Projected Sales Forecast

Products and ServicesAssumptions %Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12Totals

FoodPrice Per Unit$400.00100.00%Variable Cost Per Unit$5.001.25%Gross Margin Per Unit$395.0098.75%Projected Unit SalesSeasonality Factor8.33%8.33%8.33%8.33%8.33%8.33%8.33%8.33%8.33%8.33%8.33%8.33%100.00%Year One6006006006006006006006006006006006007,200Year Two Growth5.00%6306306306306306306306306306306306307,560Year Three Growth5.00%6626626626626626626626626626626626627,938Fixed Expense Allocation100.00%

Projected Revenue$2,880,000Variable Costs36,000Gross Margin2,844,000Fixed Expenses2,620,790Profit223,2107.75%

Breakeven Sales Revenue$2,653,964.06Breakeven Sales Units6,635

Product/Service BPrice Per Unit0.0100.00%Variable Cost Per Unit0.00.00%Gross Margin Per Unit0.00.00%Projected Unit SalesSeasonality Factor0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%Year One0.00.00.00.00.00.00.00.00.00.00.00.00.0Year Two Growth10.00%0.00.00.00.00.00.00.00.00.00.00.00.00.0Year Three Growth10.00%0.00.00.00.00.00.00.00.00.00.00.00.00.0Fixed Expense Allocation0.00%

Projected Revenue0.0Variable Costs0.0Gross Margin0.0Fixed Expenses0.0Profit0.00.00%

Breakeven Sales Revenue0.0Breakeven Sales Units0.0

5. Projected Sales Forecast (2)THE FOOD DOOFS CAFE3-Jul-15Projected Sales Forecast - Page 2

Products and ServicesAssumptions %Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12Totals

BeveragePrice Per Unit$100.00100.00%Variable Cost Per Unit0.00.00%Gross Margin Per Unit$100.00100.00%Projected Unit SalesSeasonality Factor8.33%8.33%8.33%8.33%8.33%8.33%8.33%8.33%8.33%8.33%8.33%8.33%100.00%Year One1501501501501501501501501501501501501,800Year Two Growth10.00%1651651651651651651651651651651651651,980Year Three Growth10.00%1821821821821821821821821821821821822,178Fixed Expense Allocation0.00%

Projected Revenue$180,000Variable Costs0.0Gross Margin180,000Fixed Expenses0.0Profit180,000100.00%


Product/Service DPrice Per Unit0.0100.00%Variable Cost Per Unit0.00.00%Gross Margin Per Unit0.00.00%Projected Unit SalesSeasonality Factor0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%Year One0.00.00.00.00.00.00.00.00.00.00.00.00.0Year Two Growth10.00%0.00.00.00.00.00.00.00.00.00.00.00.00.0Year Three Growth10.00%0.00.00.00.00.00.00.00.00.00.00.00.00.0Fixed Expense Allocation0.00%

Projected Revenue0.0Variable Costs0.0Gross Margin0.0Fixed Expenses0.0Profit0.00.00%


6. Cash Receipts-DisbursementsTHE FOOD DOOFS CAFE3-Jul-15Cash Receipts and Disbursements

Accounts Receivable CollectionsPercent of Collections0 to 30 days100.00%31 to 60 days0.00%More than 60 days0.00%Total Collections Percentage100.00%

Accounts Payable DisbursementsNumber of Days to Pay Suppliers0 to 30 days100.00%31 to 60 days0.00%More than 60 days0.00%Total Disbursements Percentage100.00%

Line of Credit AssumptionsDesired Minimum Cash Balance0.0Line of Credit Interest Rate9.00%

Income Tax AssumptionsEffective Income Tax Rate0.00%388,33332,361Amortization of Start-Up Expenses0.00.0Amortization Period in Years3.0032,361

7. Beginning Balance SheetTHE FOOD DOOFS CAFEBalance Sheet (For Existing Businesses Only)

12/31/06%

AssetsCurrent AssetsCash0.0Accounts Receivable0.0Inventory0.0Prepaid Expenses0.0Other Current0.0Total Current Assets0.0

Fixed AssetsReal Estate0.0Buildings0.0Leasehold Improvements0.0Equipment0.0Furniture and Fixtures0.0Vehicles0.0Other Fixed Assets0.0Total Fixed Assets0.0

Less: Accumulated Depreciation0.0

Total Assets0.0

Liabilities and Owner's EquityLiabilitiesAccounts Payable0.0Notes Payable0.0Mortgage Payable0.0Line of Credit Balance0.0Total Liabilities0.0

Owner's EquityCommon Stock0.0Retained Earnings0.0Dividends Dispersed0.0Total Owner's Equity0.0

Total Liabilities and Owner's Equity0.0

Statement Balances

8. Income StatementTHE FOOD DOOFS CAFEProjected Income Statement - Year One

Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12Totals

IncomeFood240,000240,000240,000240,000240,000240,000240,000240,000240,000240,000240,000240,0002,880,000Product/Service B0.00.00.00.00.00.00.00.00.00.00.00.00.0Beverage15,00015,00015,00015,00015,00015,00015,00015,00015,00015,00015,00015,000180,0000.0Total Income255,000255,000255,000255,000255,000255,000255,000255,000255,000255,000255,000255,0003,060,000

Cost of SalesFood3,0003,0003,0003,0003,0003,0003,0003,0003,0003,0003,0003,00036,000Product/Service B0.00.00.00.00.00.00.00.00.00.00.00.00.0Beverage0.00.0Total Cost of Sales3,0003,0003,0003,0003,0003,0003,0003,0003,0003,0003,0003,00036,000

Gross Margin252,000252,000252,000252,000252,000252,000252,000252,000252,000252,000252,000252,0003,024,000

Salaries and WagesOwner's Compensation0.00.00.00.00.00.00.00.00.00.00.00.00.0Salaries0.00.00.00.00.00.00.00.00.00.00.00.00.0Full-Time Employees62,40062,40062,40062,40062,40062,40062,40062,40062,40062,40062,40062,400748,800Part-Time Employees0.00.00.00.00.00.00.00.00.00.00.00.00.0Independent Contractors0.00.00.00.00.00.00.00.00.00.00.00.00.0Payroll Taxes and Benefits4,8964,8964,8964,8964,8964,8964,8964,8964,8964,8964,8964,89658,753Total Salary and Wages67,29667,29667,29667,29667,29667,29667,29667,29667,29667,29667,29667,296807,553

Fixed Business ExpensesAdvertising1,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,00012,000Car and Truck Expenses1,5001,5001,5001,5001,5001,5001,5001,5001,5001,5001,5001,50018,000Commissions and Fees1,5001,5001,5001,5001,5001,5001,5001,5001,5001,5001,5001,50018,000Contract Labor0.00.00.00.00.00.00.00.00.00.00.00.00.0Credit Card and Bank Charges0.00.00.00.00.00.00.00.00.00.00.00.00.0Customer Discounts and Refunds0.00.00.00.00.00.00.00.00.00.00.00.00.0Dues and Subscriptions0.00.00.00.00.00.00.00.00.00.00.00.00.0Entertainment0.00.00.00.00.00.00.00.00.00.00.00.00.0Insurance (Liability and Property)1,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,00012,000Internet5005005005005005005005005005005005006,000Legal and Professional Fees5,0005,0005,0005,0005,0005,0005,0005,0005,0005,0005,0005,00060,000Office Expenses1,5001,5001,5001,5001,5001,5001,5001,5001,5001,5001,5001,50018,000Postage and Delivery5005005005005005005005005005005005006,000Rent (on business property)100,000100,000100,000100,000100,000100,000100,000100,000100,000100,000100,000100,0001,200,000Rent of Vehicles and Equipment0.00.00.00.00.00.00.00.00.00.00.00.00.0Repairs and Maintenance5,0005,0005,0005,0005,0005,0005,0005,0005,0005,0005,0005,00060,000Supplies30,00030,00030,00030,00030,00030,00030,00030,00030,00030,00030,00030,000360,000Telephone and Communications2,0002,0002,0002,0002,0002,0002,0002,0002,0002,0002,0002,00024,000Travel5,0005,0005,0005,0005,0005,0005,0005,0005,0005,0005,0005,00060,000Utilities35,00035,00035,00035,00035,00035,00035,00035,00035,00035,00035,00035,000420,000Total Fixed Business Expenses189,500189,500189,500189,500189,500189,500189,500189,500189,500189,500189,500189,5002,274,000

Other ExpensesAmortized Start-up Expenses32,36132,36132,36132,36132,36132,36132,36132,36132,36132,36132,36132,361388,333Depreciation8,5958,5958,5958,5958,5958,5958,5958,5958,5958,5958,5958,595103,143InterestCommercial Loan21,33821,15420,97020,78420,59620,40720,21720,02519,83219,63819,44219,244243,647Commercial Mortgage0.00.00.00.00.00.00.00.00.00.00.00.00.0Line of Credit0.00.00.00.00.00.00.00.00.00.00.00.00.0Taxes0.00.00.00.00.00.00.00.00.00.00.00.00.0Total Other Expenses62,29462,11161,92661,74061,55261,36461,17360,98260,78960,59460,39860,201735,123

Net Income(67,090)(66,907)(66,722)(66,536)(66,349)(66,160)(65,970)(65,778)(65,585)(65,390)(65,194)(64,997)(792,676)

(34,729)(34,546)(34,361)(34,175)(33,987)(33,799)(33,608)(33,417)(33,224)(33,029)(32,833)(32,636)(34,729)(69,274)(103,635)(137,810)(171,798)(205,596)(239,205)(272,621)(305,845)(338,874)(371,707)(404,343)

9. Cash Flow StatementTHE FOOD DOOFS CAFEProjected Cash Flow Statement - Year One


Beginning Cash Balance1,000,000949,430898,861848,291797,722747,152696,583646,013595,444544,874494,305443,735

Cash InflowsIncome from Sales255,000255,000255,000255,000255,000255,000255,000255,000255,000255,000255,000255,0003,060,000Accounts Receivable0.00.00.00.00.00.00.00.00.00.00.00.00.0Total Cash Inflows255,000255,000255,000255,000255,000255,000255,000255,000255,000255,000255,000255,0003,060,000

Cash OutflowsInvesting ActivitiesNew Capital Purchases0.00.00.00.00.00.00.00.00.00.00.00.00.0Inventory Purchases0.00.00.00.00.00.00.00.00.00.00.00.00.0Cost of Sales3,0003,0003,0003,0003,0003,0003,0003,0003,0003,0003,0003,00036,000Operating ActivitiesSalaries and Wages67,29667,29667,29667,29667,29667,29667,29667,29667,29667,29667,29667,296807,553Fixed Business Expenses189,500189,500189,500189,500189,500189,500189,500189,500189,500189,500189,500189,5002,274,000Taxes0.00.00.00.00.00.00.00.00.00.00.00.00.0Financing Activities0.0Loan Payments45,77345,77345,77345,77345,77345,77345,77345,77345,77345,77345,77345,773549,281Line of Credit Interest0.00.00.00.00.00.00.00.00.00.00.00.00.0Line of Credit Repayments0.00.00.00.00.00.00.00.00.00.00.00.00.0Dividends Paid0.00.00.00.00.00.00.00.00.00.00.00.00.0Total Cash Outflows305,570305,570305,570305,570305,570305,570305,570305,570305,570305,570305,570305,5703,666,834

Cash Flow(50,570)(50,570)(50,570)(50,570)(50,570)(50,570)(50,570)(50,570)(50,570)(50,570)(50,570)(50,570)(606,834)

Operating Cash Balance949,430898,861848,291797,722747,152696,583646,013595,444544,874494,305443,735393,166

Line of Credit Drawdowns0.00.00.00.00.00.00.00.00.00.00.00.00.0

Ending Cash Balance949,430898,861848,291797,722747,152696,583646,013595,444544,874494,305443,735393,166

Line of Credit Balance0.00.00.00.00.00.00.00.00.00.00.00.0

10. Balance SheetTHE FOOD DOOFS CAFEBalance Sheet - Year One

Base PeriodEnd of Year One

AssetsCurrent AssetsCash1,000,000393,166Accounts Receivable0.00.0Inventory50,00050,000Prepaid Expenses1,165,000776,667Other Current0.00.0Total Current Assets2,215,0001,219,832

Fixed AssetsReal Estate0.00.0Buildings0.00.0Leasehold Improvements200,000200,000Equipment200,000200,000Furniture and Fixtures60,00060,000Vehicles120,000120,000Other Fixed Assets50,00050,000Total Fixed Assets630,000630,000

Less: Accumulated Depreciation0.0103,143

Total Assets2,845,0001,746,689

Liabilities and Owner's EquityLiabilitiesAccounts Payable0.00.0Notes Payable2,845,0002,539,366Mortgage Payable0.00.0Line of Credit Balance0.00.0Total Liabilities2,845,0002,539,366

Owner's EquityCommon Stock0.00.0Retained Earnings0.0(792,676)Dividends Dispersed0.00.0Total Owner's Equity0.0(792,676)

Total Liabilities and Owner's Equity2,845,0001,746,689

Statement BalancesStatement Balances

11. Year End SummaryTHE FOOD DOOFS CAFEYear End Summary

Year One%Year Two%Year Three%

IncomeFood2,880,0003,024,0003,175,200Product/Service B0.00.00.0Beverage180,000198,000217,8000.00.00.0Total Income3,060,000100.00%3,222,000100.00%3,393,000100.00%

Cost of SalesFood36,00037,80039,690Product/Service B0.00.00.0Beverage0.00.00.00.00.00.0Total Cost of Sales36,0001.18%37,8001.17%39,6901.17%

Gross Margin3,024,00098.82%3,184,20098.83%3,353,31098.83%

Salaries and WagesOwner's Compensation0.00.00.0Salaries0.00.00.0Full-Time Employees748,800771,264794,402Part-Time Employees0.00.00.0Independent Contractors0.00.00.0Payroll Taxes and Benefits58,75360,47262,242Total Salary and Wages807,55326.39%831,73625.81%856,64425.25%

Fixed Business ExpensesAdvertising12,00012,36012,731Car and Truck Expenses18,00018,54019,096Commissions and Fees18,00018,54019,096Contract Labor0.00.00.0Credit Card and Bank Charges0.00.00.0Customer Discounts and Refunds0.00.00.0Dues and Subscriptions0.00.00.0Entertainment0.00.00.0Insurance (Liability and Property)12,00012,36012,731Internet6,0006,1806,365Legal and Professional Fees60,00061,80063,654Office Expenses18,00018,54019,096Postage and Delivery6,0006,1806,365Rent (on business property)1,200,0001,236,0001,273,080Rent of Vehicles and Equipment0.00.00.0Repairs and Maintenance60,00061,80063,654Supplies360,000370,800381,924Telephone and Communications24,00024,72025,462Travel60,00061,80063,654Utilities420,000432,600445,578Total Fixed Business Expenses2,274,00074.31%2,342,22072.69%2,412,48771.10%

Other ExpensesAmortized Start-up Expenses388,333388,333388,333Depreciation103,143103,143103,143InterestCommercial Loan243,647214,976183,616Commercial Mortgage0.00.00.0Line of Credit0.01,26533,476Taxes0.00.00.0Total Other Expenses735,12324.02%707,71721.97%708,56820.88%

Net Income(792,676)-25.90%(697,473)-21.65%(624,388)-18.40%

12. Income Statement (2)THE FOOD DOOFS CAFEProjected Income Statement - Year Two




Gross Margin265,350265,350265,350265,350265,350265,350265,350265,350265,350265,350265,350265,3503,184,200



Other ExpensesAmortized Start-up Expenses32,36132,36132,36132,36132,36132,36132,36132,36132,36132,36132,36132,361388,333Depreciation8,5958,5958,5958,5958,5958,5958,5958,5958,5958,5958,5958,595103,143InterestCommercial Loan19,04518,84518,64318,43918,23418,02817,82017,61017,39917,18616,97216,756214,976Commercial Mortgage0.00.00.00.00.00.00.00.00.00.00.00.00.0Line of Credit0.00.00.00.00.00.00.00.00.0834217611,265Taxes0.00.00.00.00.00.00.00.00.00.00.00.00.0Total Other Expenses60,00259,80159,59959,39659,19158,98458,77658,56658,35558,22658,34958,473707,717

Net Income(59,148)(58,947)(58,745)(58,542)(58,337)(58,130)(57,922)(57,713)(57,501)(57,372)(57,495)(57,619)(697,473)

(26,787)(26,586)(26,384)(26,181)(25,976)(25,769)(25,561)(25,352)(25,140)(25,011)(25,134)(25,258)(26,787)(53,373)(79,757)(105,938)(131,914)(157,684)(183,245)(208,596)(233,737)(258,748)(283,882)(309,140)

13. Cash Flow Statement (2)THE FOOD DOOFS CAFEProjected Cash Flow Statement - Year Two


Beginning Cash Balance393,166348,246303,326258,406213,487168,567123,64778,72833,8080.00.00.0


Cash OutflowsInvesting ActivitiesNew Capital Purchases0.00.00.00.00.00.00.00.00.00.00.00.00.0Inventory Purchases0.00.00.00.00.00.00.00.00.00.00.00.00.0Cost of Sales3,1503,1503,1503,1503,1503,1503,1503,1503,1503,1503,1503,15037,800Operating ActivitiesSalaries and Wages69,31169,31169,31169,31169,31169,31169,31169,31169,31169,31169,31169,311831,736Fixed Business Expenses195,185195,185195,185195,185195,185195,185195,185195,185195,185195,185195,185195,1852,342,220Taxes0.00.00.00.00.00.00.00.00.00.00.00.00.0Financing Activities0.0Loan Payments45,77345,77345,77345,77345,77345,77345,77345,77345,77345,77345,77345,773549,281Line of Credit Interest0.00.00.00.00.00.00.00.00.0834217611,265Line of Credit Repayments0.00.00.00.00.00.00.00.00.00.00.00.00.0Dividends Paid0.00.00.00.00.00.00.00.00.00.00.00.00.0Total Cash Outflows313,420313,420313,420313,420313,420313,420313,420313,420313,420313,503313,841314,1813,762,302

Cash Flow(44,920)(44,920)(44,920)(44,920)(44,920)(44,920)(44,920)(44,920)(44,920)(45,003)(45,341)(45,681)(540,302)

Operating Cash Balance348,246303,326258,406213,487168,567123,64778,72833,808(11,112)(45,003)(45,341)(45,681)

Line of Credit Drawdowns0.00.00.00.00.00.00.00.011,11245,00345,34145,681147,136

Ending Cash Balance348,246303,326258,406213,487168,567123,64778,72833,8080.00.00.00.0

Line of Credit Balance0.00.00.00.00.00.00.00.011,11256,115101,456147,136

14. Balance Sheet (2)THE FOOD DOOFS CAFEBalance Sheet - Year Two

End of Year OneEnd of Year Two

AssetsCurrent AssetsCash393,1660.0Accounts Receivable0.00.0Inventory50,00050,000Prepaid Expenses776,667388,333Other Current0.00.0Total Current Assets1,219,832438,333


Less: Accumulated Depreciation103,143206,286

Total Assets1,746,689862,047

Liabilities and Owner's EquityLiabilitiesAccounts Payable0.00.0Notes Payable2,539,3662,205,060Mortgage Payable0.00.0Line of Credit Balance0.0147,136Total Liabilities2,539,3662,352,197

Owner's EquityCommon Stock0.00.0Retained Earnings(792,676)(1,490,149)Dividends Dispersed0.00.0Total Owner's Equity(792,676)(1,490,149)

Total Liabilities and Owner's Equity1,746,689862,047


15. Income Statement (3)THE FOOD DOOFS CAFEProjected Income Statement - Year Three




Gross Margin279,443279,443279,443279,443279,443279,443279,443279,443279,443279,443279,443279,4433,353,310



Other ExpensesAmortized Start-up Expenses32,36132,36132,36132,36132,36132,36132,36132,36132,36132,36132,36132,361388,333Depreciation8,5958,5958,5958,5958,5958,5958,5958,5958,5958,5958,5958,595103,143InterestCommercial Loan16,53816,31916,09815,87515,65115,42515,19714,96814,73714,50414,27014,034183,616Commercial Mortgage0.00.00.00.00.00.00.00.00.00.00.00.00.0Line of Credit1,1041,4021,7042,0072,3132,6212,9313,2443,5593,8764,1964,51833,476Taxes0.00.00.00.00.00.00.00.00.00.00.00.00.0Total Other Expenses58,59858,67858,75858,83958,92059,00259,08559,16859,25259,33759,42259,508708,568

Net Income(51,583)(51,663)(51,743)(51,824)(51,905)(51,987)(52,070)(52,153)(52,237)(52,322)(52,407)(52,493)(624,388)

(19,222)(19,301)(19,382)(19,463)(19,544)(19,626)(19,709)(19,792)(19,876)(19,961)(20,046)(20,132)(19,222)(38,523)(57,905)(77,368)(96,912)(116,538)(136,247)(156,039)(175,916)(195,876)(215,923)(236,055)

16. Cash Flow Statement (3)THE FOOD DOOFS CAFEProjected Cash Flow Statement - Year Three


Beginning Cash Balance0.00.00.00.00.00.00.00.00.00.00.00.0


Cash OutflowsInvesting ActivitiesNew Capital Purchases0.00.00.00.00.00.00.00.00.00.00.00.00.0Inventory Purchases0.00.00.00.00.00.00.00.00.00.00.00.00.0Cost of Sales3,3083,3083,3083,3083,3083,3083,3083,3083,3083,3083,3083,30839,690Operating ActivitiesSalaries and Wages71,38771,38771,38771,38771,38771,38771,38771,38771,38771,38771,38771,387856,644Fixed Business Expenses201,041201,041201,041201,041201,041201,041201,041201,041201,041201,041201,041201,0412,412,487Taxes0.00.00.00.00.00.00.00.00.00.00.00.00.0Financing Activities0.0Loan Payments45,77345,77345,77345,77345,77345,77345,77345,77345,77345,77345,77345,773549,281Line of Credit Interest1,1041,4021,7042,0072,3132,6212,9313,2443,5593,8764,1964,51833,476Line of Credit Repayments0.00.00.00.00.00.00.00.00.00.00.00.00.0Dividends Paid0.00.00.00.00.00.00.00.00.00.00.00.00.0Total Cash Outflows322,612322,911323,212323,516323,821324,129324,440324,752325,067325,385325,705326,0273,891,577

Cash Flow(39,862)(40,161)(40,462)(40,766)(41,071)(41,379)(41,690)(42,002)(42,317)(42,635)(42,955)(43,277)(498,577)

Operating Cash Balance(39,862)(40,161)(40,462)(40,766)(41,071)(41,379)(41,690)(42,002)(42,317)(42,635)(42,955)(43,277)

Line of Credit Drawdowns39,86240,16140,46240,76641,07141,37941,69042,00242,31742,63542,95543,277498,577

Ending Cash Balance0.00.00.00.00.00.00.00.00.00.00.00.0

Line of Credit Balance186,998227,159267,621308,387349,458390,838432,527474,530516,847559,482602,437645,713

17. Balance Sheet (3)THE FOOD DOOFS CAFEBalance Sheet - Year Three

End of Year TwoEnd of Year Three

AssetsCurrent AssetsCash0.00.0Accounts Receivable0.00.0Inventory50,00050,000Prepaid Expenses388,3330Other Current0.00.0Total Current Assets438,33350,000


Less: Accumulated Depreciation206,286309,429

Total Assets862,047370,571

Liabilities and Owner's EquityLiabilitiesAccounts Payable0.00.0Notes Payable2,205,0601,839,395Mortgage Payable0.00.0Line of Credit Balance147,136645,713Total Liabilities2,352,1972,485,109

Owner's EquityCommon Stock0.00.0Retained Earnings(1,490,149)(2,114,537)Dividends Dispersed0.00.0Total Owner's Equity(1,490,149)(2,114,537)

Total Liabilities and Owner's Equity862,047370,571


18. Financial RatiosTHE FOOD DOOFS CAFEFinancial Ratios

RatioYear OneYear TwoYear ThreeLiquidityCurrent Ratio0.48
Jack Hess: An indication of a company's ability to meet short-term debt obligations.0.190.02Quick Ratio0.15
Jack Hess: The ratio between all assets quickly convertible into cash and current liabilities. Measures a company's liquidity. Also called acid-test ratio.0.00.0SafetyDebt to Equity Ratio(3.20)
Jack Hess: This ratio expresses the relationship between capital contributed by creditors and that contributed by owners.(1.58)(1.18)Debt to Coverage Ratio(0.27)
Jack Hess: This ratio indicates how well your cash flow covers debt and the capability of the business to take on additional debt.(0.25)(0.21)ProfitabilitySales Growth 0.0
Jack Hess: This ratio calculates the percentage of increase (or decrease) in sales between the current year and the previous year.0.050.05COGS to Sales0.01
Jack Hess: The percentage of sales used to pay for the COGS (expenses which directly vary with sales) is expressed in this ratio.0.010.01Gross Profit Margin0.99
Jack Hess: This ratio indicates how much profit is earned on your products without consideration of indirect costs, selling and administration costs.0.990.99SG&A to Sales1.01
Jack Hess: This ratio measures the percentage of selling, general and administrative costs to your amount of sales.0.990.96Net Profit Margin(0.26)
Jack Hess: Net profit margin shows how much profit comes from every dollar of sales.(0.22)(0.18)Return on Equity1.00
Jack Hess: Return on equity determines the rate of return on your investment in the business. As an owner or shareholder this is one of the most important ratios as it shows the hard fact about the business - are you making enough of a profit to compensate you for the risk of being in business?0.470.30Return on Assets(0.45)
Jack Hess: This ratio measures how effectively assets are used to generate a return.(0.81)(1.68)Owner's Compensation to Sales0.0
Jack Hess: This ratio measures the owner's compensation as a percentage of sales.0.00.0EfficiencyDays in Receivables0.0
Jack Hess: Days in receivable calculates the average number of days it takes to collect your account receivable (number of days of sales in receivables).0.00.0Accounts Receivable Turnover0.0
Jack Hess: This ratio tells you the number of times accounts receivable turnover during the year.0.00.0Days in Inventory500.00
Jack Hess: This ratio shows the average number of days it will take to sell your inventory.476.19453.51Inventory Turnover0.72
Jack Hess: This ratio calculates the number of times inventory is turned over (or sold) during the year.0.760.79Sales to Total Assets1.75
Jack Hess: This ratio indicates how efficiently your business generates sales on every dollar of assets.3.749.16

19. Breakeven AnalysisTHE FOOD DOOFS CAFEBreakeven Analysis

Breakeven AnalysisDollarsPercentAnnual Sales Revenue$3,060,000100.00%Cost of Sales36,0001.18%Gross Margin3,024,00098.82%

Salaries and Wages807,553Fixed Operating Expenses2,620,790Total Fixed Business Expenses3,428,343

Breakeven Sales Calculation3,428,34398.82%

Breakeven Sales in Dollars$3,469,156

20. Amoritization ScheduleTHE FOOD DOOFS CAFEAmortization Schedule

Loan TypeAssumptionsMonth 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12Totals

Commercial LoanPrincipal Amount$2,845,000Interest Rate9.00%Loan Term in Months84.00Monthly Payment Amount$45,773.43

Year OneInterest21,33821,15420,97020,78420,59620,40720,21720,02519,83219,63819,44219,244243,647Principal24,43624,61924,80424,99025,17725,36625,55625,74825,94126,13626,33226,529305,634Loan Balance2,820,5642,795,9452,771,1412,746,1512,720,9742,695,6082,670,0512,644,3032,618,3622,592,2262,565,8952,539,366Year TwoInterest19,04518,84518,64318,43918,23418,02817,82017,61017,39917,18616,97216,756214,976Principal26,72826,92927,13127,33427,53927,74627,95428,16328,37528,58728,80229,018334,305Loan Balance2,512,6372,485,7092,458,5782,431,2442,403,7052,375,9592,348,0062,319,8422,291,4682,262,8802,234,0782,205,060Year ThreeInterest16,53816,31916,09815,87515,65115,42515,19714,96814,73714,50414,27014,034183,616Principal29,23529,45529,67629,89830,12230,34830,57630,80531,03631,26931,50431,740365,665Loan Balance2,175,8252,146,3702,116,6952,086,7962,056,6742,026,3261,995,7501,964,9441,933,9081,902,6391,871,1351,839,395

Commercial MortgagePrincipal Amount0.0Interest Rate9.00%Loan Term in Months240.00Monthly Payment Amount$0.00

Year OneInterest0.00.00.00.00.00.00.00.00.00.00.00.00.0Principal0.00.00.00.00.00.00.00.00.00.00.00.00.0Loan Balance0.00.00.00.00.00.00.00.00.00.00.00.0Year TwoInterest0.00.00.00.00.00.00.00.00.00.00.00.00.0Principal0.00.00.00.00.00.00.00.00.00.00.00.00.0Loan Balance0.00.00.00.00.00.00.00.00.00.00.00.0Year ThreeInterest0.00.00.00.00.00.00.00.00.00.00.00.00.0Principal0.00.00.00.00.00.00.00.00.00.00.00.00.0Loan Balance0.00.00.00.00.00.00.00.00.00.00.00.0

21. Financial DiagnosticsTHE FOOD DOOFS CAFEFinancial Diagnostics

This sheet performs a few tests on your numbers to see if they seem within certain reasonable ranges.Remember, no computer can tell whether your projections are truly well-constructed, only a human can do that.But these tests can at least look for values that are critically out of range.

Financial DiagnosticsValueFindingsGeneral Financing AssumptionsOwner's Cash Injection into the Business0.00%Owner's injection might be too low in relation to the amount of money neededCash Request as percent of Total Required Funds35.15%Cash request exceeds 20% which might be high

Loan AssumptionsCommercial Loan Interest rate9.00%Interest rate seems reasonableCommercial Loan Term in Months84Loan term seems within range for this type of loan

Commercial Mortgage Interest rate9.00%Interest rate seems reasonableCommercial Mortgage Term in Months240.00Loan term seems within range for this type of loan

Loan Payments as a Percent of Projected Sales1.50%Calculated loan payments as a percent of sales seem resonable

Income StatementGross Margin as a Percent of Sales98.82%Gross margin percentage seems reasonableOwner's Compensation Lower Limit Check0.0An owner's compensation amount has not been establishedOwner's Compensation Upper Limit Check0.00%Owner's compensation seems reasonableAdvertising Expense Levels as a Percent of Sales0.39%Advertising as a percent of sales may be too lowProfitability Levels$(792,676)The business is not showing a profitProfitability as a Percent of Sales-25.90%The projection does not seem highly unreasonable

Cash Flow StatementDesired Operating cash Flow Levels0.0The financial projection provides the desired level of cash flowLine of Credit Drawdowns0.0The business doesn't seem to require a line of creditAccounts Receivable Ratio to Sales0.00%Accounts receivable amount as a percent of sales seems reasonable

Balance SheetDoes the Base Period Balance Sheet Balance?0.0The balance sheet does balanceDoes the Final Balance Sheet Balance0.0The balance sheet does balanceDebt to Equity Ratio-320.35%The debt to equity ratio seems reasonable

Breakeven AnalysisBreakeven Levels$(409,156)The sales projection is less than the break-even amount