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    Financial Plan: Start-Up Funding

    Uploaded by

    Zareen
    The company is privately owned by four individuals. It requires total start-up funding of $1,785,500 for expenses and assets. Total assets at start-up are $11,856,500 including $10 million in non-cash assets. Total liabilities are $11,056,500 and total capital is $800,000 contributed equally by the four owners. The break-even point is 5000 units per month. Sales are forecast to increase each year but profits are not expected until year three when fixed costs can be covered.

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    Financial Plan: Start-Up Funding

    Uploaded by

    Zareen
    50 views6 pages
    The company is privately owned by four individuals. It requires total start-up funding of $1,785,500 for expenses and assets. Total assets at start-up are $11,856,500 including $10 million in non-cash assets. Total liabilities are $11,056,500 and total capital is $800,000 contributed equally by the four owners. The break-even point is 5000 units per month. Sales are forecast to increase each year but profits are not expected until year three when fixed costs can be covered.

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    Plan

    Original Title

    Financial Plan

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    The company is privately owned by four individuals. It requires total start-up funding of $1,785,500 for expenses and assets. Total assets at start-up are $11,856,500 including $10 million in non-cash assets. Total liabilities are $11,056,500 and total capital is $800,000 contributed equally by the four owners. The break-even point is 5000 units per month. Sales are forecast to increase each year but profits are not expected until year three when fixed costs can be covered.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    50 views6 pages

    Financial Plan: Start-Up Funding

    Uploaded by

    Zareen
    The company is privately owned by four individuals. It requires total start-up funding of $1,785,500 for expenses and assets. Total assets at start-up are $11,856,500 including $10 million in non-cash assets. Total liabilities are $11,056,500 and total capital is $800,000 contributed equally by the four owners. The break-even point is 5000 units per month. Sales are forecast to increase each year but profits are not expected until year three when fixed costs can be covered.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 6

    Financial Plan

    The company is privately held by Hanan, Mahnor, Umair, and sohaib.


    Start-up Funding:
    Start-up Expenses to Fund
    Start-up Assets to Fund
    Total Funding Required
    Assets
    Non-cash Assets from Start-up
    Cash Requirements from Start-up
    Additional Cash Raised
    Cash Balance on Starting Date
    Total Assets
    Liabilities and Capital
    Liabilities
    Current Borrowing
    Long-term Liabilities

    Total Liabilities
    Capital
    Planned Investment
    Umair
    Mahnor
    Hanan
    Sohaib
    Additional Investment Requirement
    Total Capital
    Loss at Start-up (Start-up Expenses)
    Total Liabilities & Capital

    856,500
    933,000

    1789500
    100,00,000
    856,500

    10,00,000
    11856500

    0
    11056500

    11056500

    200,000
    200,000
    200,000
    200,000
    0
    8,00,000
    0
    11856500

    Break-even Analysis:
    Our break-even analysis shows that we need unit sales over 5000 per month to break
    even. We do not expect to begin turning a profit until year three.

    Break-even Analysis
    Monthly Units Break-even
    Monthly Revenue Break-even
    Assumptions:
    Average Per-Unit Revenue
    Average Per-Unit Variable Cost
    Estimated Monthly Fixed Cost
    (Salaries,Charges,Bills)

    5,000
    10,00,000
    200
    70
    134,000

    Sales Forecast

    Year 1

    Year 2

    Year 3

    49,464
    27,692
    3,889

    49,959
    27,969
    3,928

    50,458
    28,249
    3,967

    3,356

    3,390

    3,423

    Total Unit Sales

    84,401

    85,245

    86,097

    Unit Prices

    Year 1

    Year 3

    Unit Sales
    Fries
    Berger's
    Shakes
    Ice Cream

    Fries

    100

    Year 2
    101

    Berger's

    400

    404

    408

    Shakes

    200

    202

    204

    70

    70.

    71

    4,946,400
    11,076,800
    777,800
    234,920
    17,035,920
    Year 1
    1,978,560

    5,045,823
    11,299,444
    793,434
    239,642
    17,378,342
    Year 2
    1,998,345

    5,147,244
    11,526,562
    809,382
    244,459
    17,727,647
    Year 3
    2,018,329

    6,646,080

    6,712,540

    6,779,666

    Shakes

    388,900

    392,789

    396,716

    Ice Cream
    Direct Cost of
    Sales
    Fries
    Berger's
    Shakes
    Ice Cream

    134,240

    135,582

    136,938

    989,280
    1,661,520
    77,780
    67,120

    999,173
    1,678,135
    78,558
    67,791

    1,009,165
    1,694,917
    79,343
    68,469

    Ice Cream
    Sales
    Fries
    Berger's
    Shakes
    Ice Cream
    Total Sales
    Direct Unit Costs
    Fries
    Berger's

    102

    Subtotal Direct
    Cost of Sales

    2,795,700

    2,823,657

    2,851,894

    Pro Forma Cash Flow


    Year 1

    Year 2

    Cash Received
    Cash from Operations
    Cash Sales
    17,035,920 17,378,342
    Cash from Operations
    17,035,920 17,378,342
    Additional Cash Received
    Sales Tax, Received
    $0
    $0
    New Current Borrowing
    $0
    $0
    New Other Liabilities
    (interest-free)
    $0
    $0
    New Long-term Liabilities
    11056500
    8292375
    Sales of Other Current Assets
    $0
    $0
    Sales of Long-term Assets
    $0
    $0
    New Investment Received
    $0
    $0
    Subtotal Cash Received
    5979420 9085967
    Expenditures
    Expenditures from Operations
    Cash Spending
    Bill Payments
    Subtotal Spent on
    Operations
    Additional Cash Spent
    Sales Tax,
    Principal Repayment of
    Current Borrowing
    Other Liabilities Principal
    Repayment
    Long-term Liabilities

    Year 3

    17,727,647
    17,727,647
    $0
    $0
    $0
    6219281
    $0
    $0
    $0
    11508366

    Year 1

    Year 2

    Year 3

    12,00,000
    500,000

    1212000
    505000

    1224120
    510050

    17,00,000

    1717000

    1734170

    $0

    $0

    $0

    $0

    $0

    $0

    $0
    $0

    $0
    $0

    $0
    $0

    Principal Repayment
    Purchase Other Current Assets
    Purchase Long-term Assets
    Dividends
    Subtotal Cash Spent
    Net Cash Flow

    $0
    $0
    $0
    17,00,000
    4279420

    $0
    $0
    $0
    1717000
    7368967

    $0
    $0
    $0
    1734170
    9774196

    Projected Balance Sheet


    Year 1

    Year 2

    Year 3

    Assets
    Current Assets
    Cash
    4279420 7368967
    9774196
    Other Current Assets
    0
    0
    0
    Total Current Assets
    4279420 7368967
    9774196
    Long-term Assets
    Long-term Assets
    100,00,000 100,00,000 100,00,000
    Accumulated Depreciation
    0
    0
    0
    Total Long-term Assets
    0
    0
    0
    Total Assets
    14279429 17368967 19774196
    Liabilities and Capital
    Year 1
    Year 2
    Year 3
    Current Liabilities
    Accounts Payable
    0
    0
    0
    Current Borrowing
    0
    0
    0
    Other Current Liabilities
    0
    0
    0
    Subtotal Current Liabilities
    0
    0
    0
    Long-term Liabilities
    11056500 8292375
    6219281
    Total Liabilities
    11056500 8292375
    6219281
    Capital
    800,000
    800,000
    800,000
    Net profit
    Total Capital

    2422929
    3222929

    8276592
    9076592

    12754915
    13554915

    Total Liabilities and Capital 14279429 17368967

    19774196

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