Worksheet+6C

[|[i]]WORKSHEET 6C Financial Projections and Summary

Instructions
q **Revenues**: Based on your previous research, what’s a conservative estimate of sales for each of the first three years of operations? q **Costs**: Taking the costs you identified in Worksheets 6A and 6B, what do you estimate those costs will be for each of the first three years? q **Projections**: With help from a finance person (if needed), prepare an initial draft of your financial projections using a computer spreadsheet program. Be sure to prepare a cash flow statement as well as an income statement. Discuss them with your venture team, and then make adjustments as appropriate. q **Financing**: Based on your projections, how much financing will be required to launch and operate this venture for its first three years? q **Notes**: Prepare notes to your financial statements, listing your assumptions and how you calculated your projections. _


 * **Income Statement** ||
 * **Year:**

2008 || 10% || 2009 || 13% || 2010 || 18% ||
 * **% of sales**
 * **Year:**
 * **% of sales**
 * **Year:**
 * **% of sales**
 * Sales
 * Sales

$1,000,000 || = $350,000 || Not applicable || Not applicable || $350,000 || $650,000 || sponsors = $300,000 || Raw material = $360000 || Sample cosst = $2500 || salary (p/t) = $8,640 ||
 * Cost of goods (COGS) ||
 * (35% of sales)
 * Cost of goods (COGS) ||
 * (35% of sales)
 * Cost of goods (COGS) ||
 * (35% of sales)
 * Cost of goods (COGS) ||
 * (35% of sales)
 * (35% of sales)
 * ||
 * ||
 * ||
 * ||
 * ||
 * · Merchandise
 * · Merchandise
 * ||
 * ||
 * ||
 * ||
 * ||
 * ||
 * · Freight
 * · Freight
 * ||
 * ||
 * ||
 * ||
 * ||
 * ||
 * **Total COGS**
 * **Total COGS**
 * ||
 * ||
 * ||
 * ||
 * ||
 * ||
 * Gross margin (sales—COGS)
 * Gross margin (sales—COGS)
 * ||
 * ||
 * ||
 * ||
 * ||
 * ||
 * Other income (such as grants) ||
 * 
 * 
 * ||
 * ||
 * ||
 * ||
 * ||
 * Expenses ||
 * Computer = $2000 ||
 * Marketing Tool = $3000 ||
 * 
 * 
 * 
 * Parking etc = $1600 ||
 * ||
 * · Operating expenses ||
 * Rental = $8400 ||
 * Phone line = $720 ||
 * Furniture = $1000 ||
 * ||
 * ||
 * ||
 * · Salaries & fringe ||
 * salary (f/t) = $69,120
 * · Salaries & fringe ||
 * salary (f/t) = $69,120
 * Outside dietician = $1500 ||
 * ||
 * ||
 * ||
 * ||
 * · Interest expense ||
 * ||
 * ||
 * ||
 * ||
 * ||
 * ||
 * · Depreciation ||
 * on computers
 * · Depreciation ||
 * on computers

= $200 || = $458,680 || —total expenses) $191,320 ||
 * ||
 * ||
 * ||
 * ||
 * ||
 * **Total expenses**
 * **Total expenses**
 * ||
 * ||
 * ||
 * ||
 * ||
 * ||
 * Profit (gross margin
 * Profit (gross margin
 * ||
 * ||
 * ||
 * ||
 * ||
 * ||

|| || || $500,000 from grants, borrowing, sponsorship || not applicable || $1,000,000 ||
 * **Summary Cash Flow Analysis** ||
 * **Year:**
 * **Year:**
 * **Year:**
 * **Beginning cash balance** ||
 * 
 * 
 * ||
 * ||
 * **+** Add loan proceeds ||
 * ||
 * ||
 * ||
 * **-** Deduct capital expense (built-out) ||
 * 
 * **-** Deduct capital expense (built-out) ||
 * 
 * ||
 * ||
 * **+** Add sales revenue
 * **+** Add sales revenue
 * ||
 * ||
 * ||
 * **-** Deduct inventory purchases and freight ||
 * ||
 * ||
 * ||
 * **-** Deduct expenses ||
 * $ 369,100 ||
 * ||
 * ||
 * **+** Add depreciation ||
 * $200 ||
 * ||
 * ||
 * **-** Deduct principal payments ||
 * ||
 * ||
 * ||
 * **Ending cash balance** ||
 * $1,131,100 ||
 * ||
 * ||
 * 
 * **Ending cash balance** ||
 * $1,131,100 ||
 * ||
 * ||
 * 
 * 

Financial Summary
This is based on the assumption that we would not have loans and all finance are from investors backing. The assumption is based on the current market value that might change when the venture is up and running.

[|[i]] //Copyright 2002 Amherst H. Wilder Foundation Published by the Amherst H. Wilder Foundation, 919 Lafond Ave., St. Paul, MN 55104// May not be copied or altered except for use by organization or individual who purchased this book. May not be resold.