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SCORE Financial Projection Model

Please read this entire page before you do anything else


This 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 this -

A number found in the color green is optional information that you can complete.
Example: Check these assumptions -

Otherwise, 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:

Patilad Bakery Business

The first six worksheets in this workbook are steps you will need to complete. They are titled:
1. Required Start-Up Funds
2. Salaries and Wages
3. Fixed Operating Expenses
4. & 5. Projected Sales Forecast (2 sheets)
6. Cash Receipts and Disbursements

Begin by clicking on the tabs below


Patilad Bakery Business
Required Start-Up Funds for a New Business or
Opening Balance Sheet for an Existing Business

Required Start-Up Funds Amount Totals Depreciation


Fixed Assets
Land ₦ 700,000.00
Buildings 1,110,000 20.00 years
Leasehold Improvements - 7.00 years
Equipment 1,895,000 7.00 years
Furniture and Fixtures 350,000 5.00 years
Vehicles 1,000,000 5.00 years
Other Fixed Assets 500,000 5.00 years
Total Fixed Assets 5,555,000

Operating Capital
Pre-Opening Salaries and Wages 155,000
Prepaid Insurance Premiums 250,000
Inventory 100,000
Legal and Accounting Fees 100,000
Rent Deposits -
Utility Deposits 100,000
Supplies 300,000
Advertising and Promotions 100,000
Licenses 150,000
Other Initial Start-Up Costs 100,000
Working Capital (Cash On Hand) 200,000
Total Operating Capital 1,555,000

Total Required Funds ₦ 7,110,000.00


Sources of Funding Amount Totals Loan Rate Term in Months
Owner's Equity 2.30% 500,000
Outside Investors 97.70% 5,500,000
Additional Loans or Debt
Commercial Loan 0.00% (338,000) 0.00% 84.00
Commercial Mortgage 0.00% 1,448,000 0.00% 240.00
Credit Card Debt 0.00% - 0.00% 60.00
Vehicle Loans 0.00% - 0.00% 48.00
Other Bank Debt 0.00% - 0.00% 36.00
Total Sources of Funding 100.00% ₦ 7,110,000.00

A line of credit is also required in the amount of $ 5,438

Note#: For existing businesses, this should be the "bucket" of cash plus recie
be turned into cash or payables paid out in cash in the near term (i.e. in the fi
Notes
Monthly Payments

₦ 4,023.81
₦ 6,033.33
₦ -
₦ -
₦ -
₦ 10,057.14

s, this should be the "bucket" of cash plus recievables that will


es paid out in cash in the near term (i.e. in the first month of the plan)
Patilad Bakery Business
Salaries and Wages

Salaries and Related Expenses # Assumptions Wage Base Monthly Year One

Percent Change

Salaries and Wages


Owner's Compensation 2 ₦ 20,000.00 240,000
Salaries 2 80,000 960,000
Wages
Full-Time Employees 10 195,000 2,340,000
Estimated Hours Per Week 40.00
Estimated Rate Per Hour ₦ 112.50
Part-Time Employees 5 30,333 364,000
Estimated Hours Per Week 20.00
Estimated Rate Per Hour ₦ 70.00
Independent Contractors - -
Total Salaries and Wages 19 325,333 3,904,000

Payroll Taxes and Benefits


PAYE 2.20% 7,157 85,888
Medicare 1.45% 4,717 56,608
Federal Unemployment Tax (FUTA) 0.80% - -
State Unemployment Tax (SUTA) 2.70% - -
Employee Pension Programs 10.00% 32,533 390,400
Worker's Compensation 0.00% - -
Employee Health Insurance 0.50% 1,627 19,520
Other Employee Benefit Programs 4.00% 13,013 156,160
Total Payroll Taxes and Benefits 59,048 708,576

Total Salaries and Related Expenses 384,381 4,612,576


Year Two Year Three

3.00% 3.00%

247,200 254,616
988,800 1,018,464

2,410,200 2,482,506

374,920 386,168

- -
4,021,120 4,141,754

88,465 91,119
58,306 60,055
- -
- -
390,400 390,400
- -
20,106 20,709
160,845 165,670
718,121 727,953

4,739,241 4,869,707
Patilad Bakery Business
Fixed Operating Expenses

Fixed Operating Expenses Monthly Year One Year Two Year Three

Percent Change 3.00% 3.00%

Expenses
Advertising ₦ 100,000.00 1,200,000 1,236,000 1,273,080
Car and Truck Expenses 50,000 600,000 618,000 636,540
Bank & Merchant Fees 10,000 120,000 123,600 127,308
Contract Labor - - - -
Conferences & Seminars 15,000 180,000 185,400 190,962
Customer Discounts and Refunds - - - -
Dues and Subscriptions 5,000 60,000 61,800 63,654
Miscellaneous 50,000 600,000 618,000 636,540
Insurance (Liability and Property) 20,833 250,000 257,500 265,225
Licenses/Fees/Permits 29,167 350,000 360,500 371,315
Legal and Professional Fees 10,000 120,000 123,600 127,308
Office Expenses & Supplies 50,000 600,000 618,000 636,540
Postage and Delivery - - - -
Rent (on business property) - - - -
Rent of Vehicles and Equipment 20,000 240,000 247,200 254,616
Sales & Marketing 50,000 600,000 618,000 636,540
Taxes-Other 20,000 240,000 247,200 254,616
Telephone and Communications 30,000 360,000 370,800 381,924
Travel 50,000 600,000 618,000 636,540
Utilities 25,000 300,000 309,000 318,270
Total Expenses 535,000 6,420,000 6,612,600 6,810,978

Other Expenses
Depreciation 58,018 696,214 696,214 696,214
Interest
Commercial Loan - - - -
Commercial Mortgage - - - -
Line of Credit 33 399 - -
Credit Card Debt - - - -
Vehicle Loans - - - -
Other Bank Debt - - - -
Total Other Expenses 58,051 696,613 696,214 696,214

Total Fixed Operating Expenses 593,051 7,116,613 7,308,814 7,507,192


Notes
Patilad Bakery Business
Projected Sales Forecast

Products and Services Assumptions % Jan Feb Mar Apr May Jun Jul Aug Sep Oct

 Slice bread
Price Per Unit ₦ 350.00 100.00%
Variable Cost Per Unit ₦ 150.00 42.86%
Gross Margin Per Unit ₦ 200.00 57.14%
Projected Unit Sales
Seasonality Factor 4.65% 5.74% 7.75% 7.77% 8.17% 8.19% 8.19% 9.97% 9.97% 10.21%
Year One 2,100 2,590 3,500 3,510 3,691 3,700 3,700 4,500 4,500 4,610
Year Two Growth 25.00% 2,625 3,238 4,375 4,388 4,614 4,625 4,625 5,625 5,625 5,763
Year Three Growth 25.00% 3,281 4,047 5,469 5,484 5,767 5,781 5,781 7,031 7,031 7,203
Overhead Exp Allocation 50.00%

Projected Revenue ₦ 15,802,850.00


Variable Costs 6,772,650
Gross Margin 9,030,200
Overhead Expenses 5,864,595
Profit 3,165,605 20.03%

Breakeven Sales Revenue ₦ 10,263,040.47


Breakeven Sales Units 29,323

 Loaf Bread
Price Per Unit ₦ 200.00 100.00%
Variable Cost Per Unit ₦ 100.00 50.00%
Gross Margin Per Unit ₦ 100.00 50.00%
Projected Unit Sales
Seasonality Factor 0.06% 5.05% 6.98% 3.79% 7.12% 5.46% 5.65% 9.76% 14.54% 13.39%
Year One 15 1,340 1,852 1,005 1,890 1,450 1,500 2,590 3,860 3,556
Year Two Growth 10.00% 17 1,474 2,037 1,106 2,079 1,595 1,650 2,849 4,246 3,912
Year Three Growth 10.00% 18 1,621 2,241 1,216 2,287 1,755 1,815 3,134 4,671 4,303
Overhead Exp Allocation 16.67%

Projected Revenue ₦ 5,309,600.00


Variable Costs 2,654,800
Gross Margin 2,654,800
Overhead Expenses 1,954,865
Profit 699,935 13.18%

Breakeven Sales Revenue ₦ 3,909,729.70


Breakeven Sales Units 19,549
Nov Dec Totals

10.30% 9.08% 100.00%


4,650 4,100 45,151
5,813 5,125 56,439
7,266 6,406 70,548

14.65% 13.56% 100.00%


3,890 3,600 26,548
4,279 3,960 29,203
4,707 4,356 32,123
Patilad Bakery Business
Projected Sales Forecast - Page 2

Products and Services Assumptions % Jan Feb Mar Apr May Jun Jul Aug Sep

 Wheat Bread
Price Per Unit ₦ 400.00 100.00%
Variable Cost Per Unit ₦ 150.00 37.50%
Gross Margin Per Unit ₦ 250.00 62.50%
Projected Unit Sales
Seasonality Factor 1.87% 4.67% 9.35% 9.35% 9.35% 9.35% 9.35% 9.35% 9.35%
Year One 10 25 50 50 50 50 50 50 50
Year Two Growth 10.00% 11 28 55 55 55 55 55 55 55
Year Three Growth 10.00% 12 30 61 61 61 61 61 61 61
Overhead Exp Allocation 16.67%

Projected Revenue ₦ 214,000.00


Variable Costs 80,250
Gross Margin 133,750
Overhead Expenses 1,000
Profit 132,750 62.03%

Breakeven Sales Revenue ₦ 1,600.00


Breakeven Sales Units 4

 Special Bread
Price Per Unit ₦ 350.00 100.00%
Variable Cost Per Unit ₦ 150.00 42.86%
Gross Margin Per Unit ₦ 200.00 57.14%
Projected Unit Sales
Seasonality Factor 9.68% 9.68% 9.68% 6.45% 6.45% 6.45% % 6.45% 9.68%
Year One 1,500 1,500 1,500 1,000 1,000 1,000 1,000 1,000 1,500
Year Two Growth 10.00% 1,650 1,650 1,650 1,100 1,100 1,100 1,100 1,100 1,650
Year Three Growth 10.00% 1,815 1,815 1,815 1,210 1,210 1,210 1,210 1,210 1,815
Overhead Exp Allocation 16.67%

Projected Revenue ₦ 5,425,000.00


Variable Costs 2,325,000
Gross Margin 3,100,000
Overhead Expenses 1,954,865
Profit 1,145,135 21.11%

Breakeven Sales Revenue ₦ 3,421,013.49


Breakeven Sales Units 9,774
Oct Nov Dec Totals

9.35% 9.35% 9.35% 100.00%


50 50 50 535
55 55 55 589
61 61 61 647

9.68% 9.68% 9.68% 93.55%


1,500 1,500 1,500 15,500
1,650 1,650 1,650 17,050
1,815 1,815 1,815 18,755
Patilad Bakery Business
Cash Receipts and Disbursements

Accounts Receivable Collections


Percent of Collections
0 to 30 days 100.00%
31 to 60 days 0.00%
More than 60 days 0.00%
Total Collections Percentage 100.00%

Accounts Payable Disbursements


Number of Days to Pay Suppliers
0 to 30 days 100.00%
31 to 60 days 0.00%
More than 60 days 0.00%
Total Disbursements Percentage 100.00%

Line of Credit Assumptions


Desired Minimum Cash Balance $ -
Line of Credit Interest Rate 8.00%

Income Tax Assumptions


Effective Income Tax Rate 20.00%
385,000 32,083
Amortization of Start-Up Expenses 33,333 2,778
Amortization Period in Years 3.00 34,861
Patilad Bakery Business
Projected Income Statement - Year One

Jan Feb Mar Apr May Jun Jul Aug

Income
 Slice bread 735,000 906,500 1,225,000 1,228,500 1,291,850 1,295,000 1,295,000 1,575,000
 Loaf Bread 3,000 268,000 370,400 201,000 378,000 290,000 300,000 518,000
 Wheat Bread 4,000 10,000 20,000 20,000 20,000 20,000 20,000 20,000
 Special Bread 525,000 525,000 525,000 350,000 350,000 350,000 350,000 350,000
Total Income 1,267,000 1,709,500 2,140,400 1,799,500 2,039,850 1,955,000 1,965,000 2,463,000

Cost of Sales
 Slice bread 315,000 388,500 525,000 526,500 553,650 555,000 555,000 675,000
 Loaf Bread 1,500 134,000 185,200 100,500 189,000 145,000 150,000 259,000
 Wheat Bread 1,500 3,750 7,500 7,500 7,500 7,500 7,500 7,500
 Special Bread 225,000 225,000 225,000 150,000 150,000 150,000 150,000 150,000
Total Cost of Sales 543,000 751,250 942,700 784,500 900,150 857,500 862,500 1,091,500

Gross Margin 724,000 958,250 1,197,700 1,015,000 1,139,700 1,097,500 1,102,500 1,371,500

Total Salary and Wages 384,381 384,381 384,381 384,381 384,381 384,381 384,381 384,381

Fixed Business Expenses


Advertising 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
Car and Truck Expenses 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Bank & Merchant Fees 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Contract Labor - - - - - - - -
Conferences & Seminars 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000
Customer Discounts and Refunds - - - - - - - -
Dues and Subscriptions 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Miscellaneous 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Insurance (Liability and Property) 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833
Licenses/Fees/Permits 29,167 29,167 29,167 29,167 29,167 29,167 29,167 29,167
Legal and Professional Fees 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Patilad Bakery Business
Projected Income Statement - Year One

Jan Feb Mar Apr May Jun Jul Aug


Office Expenses & Supplies 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Postage and Delivery - - - - - - - -
Rent (on business property) - - - - - - - -
Rent of Vehicles and Equipment 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
Sales & Marketing 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Taxes-Other 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
Telephone and Communications 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000
Travel 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Utilities 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
Total Fixed Business Expenses 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000

Other Expenses
Amortized Start-up Expenses 34,861 34,861 34,861 34,861 34,861 34,861 34,861 34,861
Depreciation 58,018 58,018 58,018 58,018 58,018 58,018 58,018 58,018
Interest
Commercial Loan - - - - - - - -
Commercial Mortgage - - - - - - - -
Line of Credit - 36 36 36 36 36 36 36
Credit Card Debt - - - - - - - -
Vehicle Loans - - - - - - - -
Other Bank Debt - - - - - - - -
Taxes - - - - 29,502 24,013 25,013 78,813
Total Other Expenses 92,879 92,915 92,915 92,915 122,417 116,928 117,928 171,728

Net Income (288,260) (54,047) 185,403 2,703 97,902 61,191 65,191 280,391
Sep Oct Nov Dec Totals

1,575,000 1,613,500 1,627,500 1,435,000 15,802,850


772,000 711,200 778,000 720,000 5,309,600
20,000 20,000 20,000 20,000 214,000
525,000 525,000 525,000 525,000 5,425,000
2,892,000 2,869,700 2,950,500 2,700,000 26,751,450

675,000 691,500 697,500 615,000 6,772,650


386,000 355,600 389,000 360,000 2,654,800
7,500 7,500 7,500 7,500 80,250
225,000 225,000 225,000 225,000 2,325,000
1,293,500 1,279,600 1,319,000 1,207,500 11,832,700

1,598,500 1,590,100 1,631,500 1,492,500 14,918,750

384,381 384,381 384,381 384,381 4,612,576

100,000 100,000 100,000 100,000 1,200,000


50,000 50,000 50,000 50,000 600,000
10,000 10,000 10,000 10,000 120,000
- - - - -
15,000 15,000 15,000 15,000 180,000
- - - - -
5,000 5,000 5,000 5,000 60,000
50,000 50,000 50,000 50,000 600,000
20,833 20,833 20,833 20,833 250,000
29,167 29,167 29,167 29,167 350,000
10,000 10,000 10,000 10,000 120,000
Sep Oct Nov Dec Totals
50,000 50,000 50,000 50,000 600,000
- - - - -
- - - - -
20,000 20,000 20,000 20,000 240,000
50,000 50,000 50,000 50,000 600,000
20,000 20,000 20,000 20,000 240,000
30,000 30,000 30,000 30,000 360,000
50,000 50,000 50,000 50,000 600,000
25,000 25,000 25,000 25,000 300,000
535,000 535,000 535,000 535,000 6,420,000

34,861 34,861 34,861 34,861 418,333


58,018 58,018 58,018 58,018 696,214

- - - - -
- - - - -
36 36 36 36 399
- - - - -
- - - - -
- - - - -
124,213 122,533 130,813 103,013 637,912
217,128 215,448 223,728 195,928 1,752,859

461,991 455,271 488,391 377,191 2,133,315


Patilad Bakery Business
Projected Cash Flow Statement - Year One

Jan Feb Mar Apr May Jun Jul Aug

Beginning Cash Balance 200,000 - 28,775 297,001 382,526 592,751 707,262 880,287

Cash Inflows
Income from Sales 1,267,000 1,709,500 2,140,400 1,799,500 2,039,850 1,955,000 1,965,000 2,463,000
Accounts Receivable - - - - - - - -
Total Cash Inflows 1,267,000 1,709,500 2,140,400 1,799,500 2,039,850 1,955,000 1,965,000 2,463,000

Cash Outflows
Investing Activities
New Fixed Assets Purchases - - - - - - - -
Inventory Addition to Bal.Sheet - - - - - - - -
Cost of Sales 543,000 751,250 942,700 784,500 900,150 857,500 862,500 1,091,500
Operating Activities
Salaries and Wages 384,381 384,381 384,381 384,381 384,381 384,381 384,381 384,381
Fixed Business Expenses 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000
Taxes - - - - - 53,515 - -
Financing Activities
Loan Payments 10,057 10,057 10,057 10,057 10,057 10,057 10,057 10,057
Line of Credit Interest - 36 36 36 36 36 36 36
Line of Credit Repayments - - - - - - - -
Dividends Paid - - - - - - - -
Total Cash Outflows 1,472,438 1,680,725 1,872,175 1,713,975 1,829,625 1,840,489 1,791,975 2,020,975

Cash Flow (205,438) 28,775 268,225 85,525 210,225 114,511 173,025 442,025

Operating Cash Balance (5,438) 28,775 297,001 382,526 592,751 707,262 880,287 1,322,312

Line of Credit Drawdowns 5,438 - - - - - - -

Ending Cash Balance - 28,775 297,001 382,526 592,751 707,262 880,287 1,322,312
Patilad Bakery Business
Projected Cash Flow Statement - Year One

Jan Feb Mar Apr May Jun Jul Aug

Line of Credit Balance 5,438 5,438 5,438 5,438 5,438 5,438 5,438 5,438
Sep Oct Nov Dec Totals

1,322,312 1,763,299 2,423,924 3,125,949

2,892,000 2,869,700 2,950,500 2,700,000 26,751,450


- - - - -
2,892,000 2,869,700 2,950,500 2,700,000 26,751,450

- - - - -
- - - - -
1,293,500 1,279,600 1,319,000 1,207,500 11,832,700

384,381 384,381 384,381 384,381 4,612,576


535,000 535,000 535,000 535,000 6,420,000
228,039 - - 356,359 637,912
-
10,057 10,057 10,057 10,057 120,686
36 36 36 36 399
- - - - -
- - - - -
2,451,013 2,209,075 2,248,475 2,493,333 23,624,273

440,987 660,625 702,025 206,667 3,127,177

1,763,299 2,423,924 3,125,949 3,332,616

- - - - 5,438

1,763,299 2,423,924 3,125,949 3,332,616


Sep Oct Nov Dec Totals

5,438 5,438 5,438 5,438


Patilad Bakery Business
Balance Sheet - Year One

Base Period End of Year One

Assets
Current Assets
Cash 200,000 3,332,616
Accounts Receivable - -
Inventory 100,000 100,000
Prepaid Expenses 1,155,000 770,000
Other Current 100,000 66,667
Total Current Assets 1,555,000 4,269,282

Fixed Assets
Land 700,000 700,000
Buildings 1,110,000 1,110,000
Leasehold Improvements - -
Equipment 1,895,000 1,895,000
Furniture and Fixtures 350,000 350,000
Vehicles 1,000,000 1,000,000
Other Fixed Assets 500,000 500,000
Total Fixed Assets 5,555,000 5,555,000

Less: Accumulated Depreciation - 696,214

Total Assets 7,110,000 9,128,068

Liabilities and Owner's Equity


Liabilities
Accounts Payable - -
Loan Payable (338,000) (386,286)
Mortgage Payable 1,448,000 1,375,600
Patilad Bakery Business
Balance Sheet - Year One

Base Period End of Year One


Credit Card Debt - -
Vehicle Loans - -
Other Bank Debt - -
Line of Credit Balance - 5,438
Total Liabilities 1,110,000 994,753

Owner's Equity
Common Stock 6,000,000 6,000,000
Retained Earnings - 2,133,315
Dividends Dispersed - -
Total Owner's Equity 6,000,000 8,133,315

Total Liabilities and Owner's Equity 7,110,000 9,128,068

Statement Balances Statement Balances


Patilad Bakery Business
Year End Summary

Year One % Year Two % Year Three %

Income
 Slice bread 15,802,850 19,753,563 24,691,953
 Loaf Bread 5,309,600 5,840,560 6,424,616
 Wheat Bread 214,000 235,400 258,940
 Special Bread 5,425,000 5,967,500 6,564,250
Total Income 26,751,450 100.00% 31,797,023 100.00% 37,939,759 100.00%

Cost of Sales
 Slice bread 6,772,650 8,465,813 10,582,266
 Loaf Bread 2,654,800 2,920,280 3,212,308
 Wheat Bread 80,250 88,275 97,103
 Special Bread 2,325,000 2,557,500 2,813,250
Total Cost of Sales 11,832,700 44.23% 14,031,868 44.13% 16,704,926 44.03%

Gross Margin 14,918,750 55.77% 17,765,155 55.87% 21,234,833 55.97%

Total Salary and Wages 4,612,576 17.24% 4,739,241 14.90% 4,869,707 12.84%

Fixed Business Expenses


Advertising 1,200,000 1,236,000 1,273,080
Car and Truck Expenses 600,000 618,000 636,540
Bank & Merchant Fees 120,000 123,600 127,308
Contract Labor - - -
Conferences & Seminars 180,000 185,400 190,962
Customer Discounts and Refunds - - -
Dues and Subscriptions 60,000 61,800 63,654
Miscellaneous 600,000 618,000 636,540
Insurance (Liability and Property) 250,000 257,500 265,225
Licenses/Fees/Permits 350,000 360,500 371,315
Legal and Professional Fees 120,000 123,600 127,308
Patilad Bakery Business
Year End Summary

Year One % Year Two % Year Three %


Office Expenses & Supplies 600,000 618,000 636,540
Postage and Delivery - - -
Rent (on business property) - - -
Rent of Vehicles and Equipment 240,000 247,200 254,616
Sales & Marketing 600,000 618,000 636,540
Taxes-Other 240,000 247,200 254,616
Telephone and Communications 360,000 370,800 381,924
Travel 600,000 618,000 636,540
Utilities 300,000 309,000 318,270
Total Fixed Business Expenses 6,420,000 24.00% 6,612,600 20.80% 6,810,978 17.95%

Operating Income (before Other Expenses) 3,886,174 14.53% 6,413,314 20.17% 9,554,148 25.18%
[EBITDA]

Other Expenses
Amortized Start-up Expenses 418,333 418,333 418,333
Depreciation 696,214 696,214 696,214
Interest
Commercial Loan - - -
Commercial Mortgage - - -
Line of Credit 399 435 - 435
Credit Card Debt - - -
Vehicle Loans - - -
Other Bank Debt - - -
Taxes 637,912 1,143,333 1,771,500
Total Other Expenses 1,752,859 6.55% 2,258,316 7.10% 2,886,483 7.61%

Net Income 2,133,315 7.97% 4,154,998 13.07% 6,667,666 17.57%


Patilad Bakery Business
Projected Income Statement - Year Two

Jan Feb Mar Apr May Jun Jul Aug

Income
 Slice bread 918,750 1,133,125 1,531,250 1,535,625 1,614,813 1,618,750 1,618,750 1,968,750
 Loaf Bread 3,300 294,800 407,440 221,100 415,800 319,000 330,000 569,800
 Wheat Bread 4,400 11,000 22,000 22,000 22,000 22,000 22,000 22,000
 Special Bread 577,500 577,500 577,500 385,000 385,000 385,000 385,000 385,000
Total Income 1,503,950 2,016,425 2,538,190 2,163,725 2,437,613 2,344,750 2,355,750 2,945,550

Cost of Sales
 Slice bread 393,750 485,625 656,250 658,125 692,063 693,750 693,750 843,750
 Loaf Bread 1,650 147,400 203,720 110,550 207,900 159,500 165,000 284,900
 Wheat Bread 1,650 4,125 8,250 8,250 8,250 8,250 8,250 8,250
 Special Bread 247,500 247,500 247,500 165,000 165,000 165,000 165,000 165,000
Total Cost of Sales 644,550 884,650 1,115,720 941,925 1,073,213 1,026,500 1,032,000 1,301,900

Gross Margin 859,400 1,131,775 1,422,470 1,221,800 1,364,400 1,318,250 1,323,750 1,643,650

Total Salary and Wages 394,937 394,937 394,937 394,937 394,937 394,937 394,937 394,937

Fixed Business Expenses


Advertising 103,000 103,000 103,000 103,000 103,000 103,000 103,000 103,000
Car and Truck Expenses 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500
Bank & Merchant Fees 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300
Contract Labor - - - - - - - -
Conferences & Seminars 15,450 15,450 15,450 15,450 15,450 15,450 15,450 15,450
Customer Discounts and Refunds - - - - - - - -
Dues and Subscriptions 5,150 5,150 5,150 5,150 5,150 5,150 5,150 5,150
Miscellaneous 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500
Insurance (Liability and Property) 21,458 21,458 21,458 21,458 21,458 21,458 21,458 21,458
Licenses/Fees/Permits 30,042 30,042 30,042 30,042 30,042 30,042 30,042 30,042
Legal and Professional Fees 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300
Patilad Bakery Business
Projected Income Statement - Year Two

Jan Feb Mar Apr May Jun Jul Aug


Office Expenses & Supplies 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500
Postage and Delivery - - - - - - - -
Rent (on business property) - - - - - - - -
Rent of Vehicles and Equipment 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600
Sales & Marketing 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500
Taxes-Other 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600
Telephone and Communications 30,900 30,900 30,900 30,900 30,900 30,900 30,900 30,900
Travel 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500
Utilities 25,750 25,750 25,750 25,750 25,750 25,750 25,750 25,750
Total Fixed Business Expenses 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050

Other Expenses
Amortized Start-up Expenses 34,861 34,861 34,861 34,861 34,861 34,861 34,861 34,861
Depreciation 58,018 58,018 58,018 58,018 58,018 58,018 58,018 58,018
Interest
Commercial Loan - - - - - - - -
Commercial Mortgage - - - - - - - -
Line of Credit 36 36 36 36 36 36 36 36
Credit Card Debt - - - - - - - -
Vehicle Loans - - - - - - - -
Other Bank Debt - - - - - - - -
Taxes - - 80,304 43,552 72,072 62,842 63,942 127,922
Total Other Expenses 92,915 92,915 173,220 136,467 164,987 155,757 156,857 220,837

Net Income (179,502) 92,873 303,264 139,346 253,426 216,506 220,906 476,826
Sep Oct Nov Dec Totals

1,968,750 2,016,875 2,034,375 1,793,750 19,753,563


849,200 782,320 855,800 792,000 5,840,560
22,000 22,000 22,000 22,000 235,400
577,500 577,500 577,500 577,500 5,967,500
3,417,450 3,398,695 3,489,675 3,185,250 31,797,023

843,750 864,375 871,875 768,750 8,465,813


424,600 391,160 427,900 396,000 2,920,280
8,250 8,250 8,250 8,250 88,275
247,500 247,500 247,500 247,500 2,557,500
1,524,100 1,511,285 1,555,525 1,420,500 14,031,868

1,893,350 1,887,410 1,934,150 1,764,750 17,765,155

394,937 394,937 394,937 394,937 4,739,241

103,000 103,000 103,000 103,000 1,236,000


51,500 51,500 51,500 51,500 618,000
10,300 10,300 10,300 10,300 123,600
- - - - -
15,450 15,450 15,450 15,450 185,400
- - - - -
5,150 5,150 5,150 5,150 61,800
51,500 51,500 51,500 51,500 618,000
21,458 21,458 21,458 21,458 257,500
30,042 30,042 30,042 30,042 360,500
10,300 10,300 10,300 10,300 123,600
Sep Oct Nov Dec Totals
51,500 51,500 51,500 51,500 618,000
- - - - -
- - - - -
20,600 20,600 20,600 20,600 247,200
51,500 51,500 51,500 51,500 618,000
20,600 20,600 20,600 20,600 247,200
30,900 30,900 30,900 30,900 370,800
51,500 51,500 51,500 51,500 618,000
25,750 25,750 25,750 25,750 309,000
551,050 551,050 551,050 551,050 6,612,600

34,861 34,861 34,861 34,861 418,333


58,018 58,018 58,018 58,018 696,214

- - - - -
- - - - -
36 36 36 36 435
- - - - -
- - - - -
- - - - -
177,862 176,674 186,022 152,142 1,143,333
270,777 269,589 278,937 245,057 2,258,316

676,586 671,834 709,226 573,706 4,154,998


Patilad Bakery Business
Projected Cash Flow Statement - Year Two

Jan Feb Mar Apr May Jun Jul Aug

Beginning Cash Balance 3,332,616 3,235,936 3,411,630 3,797,716 4,063,436 4,471,755 4,655,460 5,023,130

Cash Inflows
Income from Sales 1,503,950 2,016,425 2,538,190 2,163,725 2,437,613 2,344,750 2,355,750 2,945,550
Accounts Receivable - - - - - - - -
Total Cash Inflows 1,503,950 2,016,425 2,538,190 2,163,725 2,437,613 2,344,750 2,355,750 2,945,550

Cash Outflows
Investing Activities
New Fixed Assets Purchases - - - - - - - -
Inventory Addition to Bal. Sheet - - - - - - - -
Cost of Sales 644,550 884,650 1,115,720 941,925 1,073,213 1,026,500 1,032,000 1,301,900
Operating Activities
Salaries and Wages 394,937 394,937 394,937 394,937 394,937 394,937 394,937 394,937
Fixed Business Expenses 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050
Taxes - - 80,304 - - 178,465 - -
Financing Activities
Loan Payments 10,057 10,057 10,057 10,057 10,057 10,057 10,057 10,057
Line of Credit Interest 36 36 36 36 36 36 36 36
Line of Credit Repayments - - - - - - - -
Dividends Paid - - - - - - - -
Total Cash Outflows 1,600,630 1,840,730 2,152,105 1,898,005 2,029,293 2,161,046 1,988,080 2,257,980

Cash Flow (96,680) 175,695 386,085 265,720 408,320 183,704 367,670 687,570

Operating Cash Balance 3,235,936 3,411,630 3,797,716 4,063,436 4,471,755 4,655,460 5,023,130 5,710,699

Line of Credit Drawdowns - - - - - - - -

Ending Cash Balance 3,235,936 3,411,630 3,797,716 4,063,436 4,471,755 4,655,460 5,023,130 5,710,699
Patilad Bakery Business
Projected Cash Flow Statement - Year Two

Jan Feb Mar Apr May Jun Jul Aug

Line of Credit Balance 5,438 5,438 5,438 5,438 5,438 5,438 5,438 5,438
Sep Oct Nov Dec Totals

5,710,699 6,278,244 7,209,574 8,187,643

3,417,450 3,398,695 3,489,675 3,185,250 31,797,023


- - - - -
3,417,450 3,398,695 3,489,675 3,185,250 31,797,023

- - - - -
- - - - -
1,524,100 1,511,285 1,555,525 1,420,500 14,031,868

394,937 394,937 394,937 394,937 4,739,241


551,050 551,050 551,050 551,050 6,612,600
369,725 - - 514,837 1,143,333
-
10,057 10,057 10,057 10,057 120,686
36 36 36 36 435
- - - - -
- - - - -
2,849,906 2,467,365 2,511,605 2,891,418 26,648,162

567,544 931,330 978,070 293,832 5,148,860

6,278,244 7,209,574 8,187,643 8,481,476

- - - - -

6,278,244 7,209,574 8,187,643 8,481,476


Sep Oct Nov Dec Totals

5,438 5,438 5,438 5,438


Patilad Bakery Business
Balance Sheet - Year Two

End of Year One End of Year Two

Assets
Current Assets
Cash 3,332,616 8,481,476
Accounts Receivable - -
Inventory 100,000 100,000
Prepaid Expenses 770,000 385,000
Other Current 66,667 33,333
Total Current Assets 4,269,282 8,999,809

Fixed Assets
Land 700,000 700,000
Buildings 1,110,000 1,110,000
Leasehold Improvements - -
Equipment 1,895,000 1,895,000
Furniture and Fixtures 350,000 350,000
Vehicles 1,000,000 1,000,000
Other Fixed Assets 500,000 500,000
Total Fixed Assets 5,555,000 5,555,000

Less: Accumulated Depreciation 696,214 1,392,429

Total Assets 9,128,068 13,162,380

Liabilities and Owner's Equity


Liabilities
Accounts Payable - -
Notes Payable (386,286) (434,571)
Mortgage Payable 1,375,600 1,303,200
Patilad Bakery Business
Balance Sheet - Year Two

End of Year One End of Year Two


Credit Card Debt - -
Vehicle Loans - -
Other Bank Debt - -
Line of Credit Balance 5,438 5,438
Total Liabilities 994,753 874,067

Owner's Equity
Common Stock 6,000,000 6,000,000
Retained Earnings 2,133,315 6,288,314
Dividends Dispersed - -
Total Owner's Equity 8,133,315 12,288,314

Total Liabilities and Owner's Equity 9,128,068 13,162,380

Statement Balances Statement Balances


Patilad Bakery Business
Projected Income Statement - Year Three

Jan Feb Mar Apr May Jun Jul Aug

Income
 Slice bread 1,148,438 1,416,406 1,914,063 1,919,531 2,018,516 2,023,438 2,023,438 2,460,938
 Loaf Bread 3,630 324,280 448,184 243,210 457,380 350,900 363,000 626,780
 Wheat Bread 4,840 12,100 24,200 24,200 24,200 24,200 24,200 24,200
 Special Bread 635,250 635,250 635,250 423,500 423,500 423,500 423,500 423,500
Total Income 1,792,158 2,388,036 3,021,697 2,610,441 2,923,596 2,822,038 2,834,138 3,535,418

Cost of Sales
 Slice bread 492,188 607,031 820,313 822,656 865,078 867,188 867,188 1,054,688
 Loaf Bread 1,815 162,140 224,092 121,605 228,690 175,450 181,500 313,390
 Wheat Bread 1,815 4,538 9,075 9,075 9,075 9,075 9,075 9,075
 Special Bread 272,250 272,250 272,250 181,500 181,500 181,500 181,500 181,500
Total Cost of Sales 768,068 1,045,959 1,325,730 1,134,836 1,284,343 1,233,213 1,239,263 1,558,653

Gross Margin 1,024,090 1,342,078 1,695,967 1,475,605 1,639,253 1,588,825 1,594,875 1,976,765

Total Salary and Wages 405,809 405,809 405,809 405,809 405,809 405,809 405,809 405,809

Fixed Business Expenses


Advertising 106,090 106,090 106,090 106,090 106,090 106,090 106,090 106,090
Car and Truck Expenses 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045
Bank & Merchant Fees 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609
Contract Labor - - - - - - - -
Conferences & Seminars 15,914 15,914 15,914 15,914 15,914 15,914 15,914 15,914
Customer Discounts and Refunds - - - - - - - -
Dues and Subscriptions 5,305 5,305 5,305 5,305 5,305 5,305 5,305 5,305
Miscellaneous 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045
Insurance (Liability and Property) 22,102 22,102 22,102 22,102 22,102 22,102 22,102 22,102
Licenses/Fees/Permits 30,943 30,943 30,943 30,943 30,943 30,943 30,943 30,943
Legal and Professional Fees 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609
Patilad Bakery Business
Projected Income Statement - Year Three

Jan Feb Mar Apr May Jun Jul Aug


Office Expenses & Supplies 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045
Postage and Delivery - - - - - - - -
Rent (on business property) - - - - - - - -
Rent of Vehicles and Equipment 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218
Sales & Marketing 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045
Taxes-Other 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218
Telephone and Communications 31,827 31,827 31,827 31,827 31,827 31,827 31,827 31,827
Travel 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045
Utilities 26,523 26,523 26,523 26,523 26,523 26,523 26,523 26,523
Total Fixed Business Expenses 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582

Other Expenses
Amortized Start-up Expenses 34,861 34,861 34,861 34,861 34,861 34,861 34,861 34,861
Depreciation 58,018 58,018 58,018 58,018 58,018 58,018 58,018 58,018
Interest
Commercial Loan - - - - - - - -
Commercial Mortgage - - - - - - - -
Line of Credit 36 36 36 36 36 36 36 36
Credit Card Debt - - - - - - - -
Vehicle Loans - - - - - - - -
Other Bank Debt - - - - - - - -
Taxes - 60,656 132,905 88,832 121,562 111,476 112,686 189,064
Total Other Expenses 92,915 153,571 225,820 181,747 214,477 204,391 205,601 281,979

Net Income (42,216) 215,116 496,757 320,467 451,385 411,043 415,883 721,395
Sep Oct Nov Dec Totals

2,460,938 2,521,094 2,542,969 2,242,188 24,691,953


934,120 860,552 941,380 871,200 6,424,616
24,200 24,200 24,200 24,200 258,940
635,250 635,250 635,250 635,250 6,564,250
4,054,508 4,041,096 4,143,799 3,772,838 37,939,759

1,054,688 1,080,469 1,089,844 960,938 10,582,266


467,060 430,276 470,690 435,600 3,212,308
9,075 9,075 9,075 9,075 97,103
272,250 272,250 272,250 272,250 2,813,250
1,803,073 1,792,070 1,841,859 1,677,863 16,704,926

2,251,435 2,249,026 2,301,940 2,094,975 21,234,833

405,809 405,809 405,809 405,809 4,869,707

106,090 106,090 106,090 106,090 1,273,080


53,045 53,045 53,045 53,045 636,540
10,609 10,609 10,609 10,609 127,308
- - - - -
15,914 15,914 15,914 15,914 190,962
- - - - -
5,305 5,305 5,305 5,305 63,654
53,045 53,045 53,045 53,045 636,540
22,102 22,102 22,102 22,102 265,225
30,943 30,943 30,943 30,943 371,315
10,609 10,609 10,609 10,609 127,308
Sep Oct Nov Dec Totals
53,045 53,045 53,045 53,045 636,540
- - - - -
- - - - -
21,218 21,218 21,218 21,218 254,616
53,045 53,045 53,045 53,045 636,540
21,218 21,218 21,218 21,218 254,616
31,827 31,827 31,827 31,827 381,924
53,045 53,045 53,045 53,045 636,540
26,523 26,523 26,523 26,523 318,270
567,582 567,582 567,582 567,582 6,810,978

34,861 34,861 34,861 34,861 418,333


58,018 58,018 58,018 58,018 696,214

- - - - -
- - - - -
36 36 36 36 435
- - - - -
- - - - -
- - - - -
243,998 243,516 254,099 212,706 1,771,500
336,913 336,432 347,014 305,621 2,886,483

941,131 939,204 981,535 815,963 6,667,666


Patilad Bakery Business
Projected Cash Flow Statement - Year Three

Jan Feb Mar Apr May Jun Jul Aug

Beginning Cash Balance 8,481,476 8,522,082 8,880,676 9,399,599 9,891,720 10,547,489 10,830,960 11,442,351

Cash Inflows
Income from Sales 1,792,158 2,388,036 3,021,697 2,610,441 2,923,596 2,822,038 2,834,138 3,535,418
Accounts Receivable - - - - - - - -
Total Cash Inflows 1,792,158 2,388,036 3,021,697 2,610,441 2,923,596 2,822,038 2,834,138 3,535,418

Cash Outflows
Investing Activities
New Fixed Assets Purchases - - - - - - - -
Inventory Addition to Bal.Sheet - - - - - - - -
Cost of Sales 768,068 1,045,959 1,325,730 1,134,836 1,284,343 1,233,213 1,239,263 1,558,653
Operating Activities
Salaries and Wages 405,809 405,809 405,809 405,809 405,809 405,809 405,809 405,809
Fixed Business Expenses 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582
Taxes - - 193,560 - - 321,870 - -
Financing Activities
Loan Payments 10,057 10,057 10,057 10,057 10,057 10,057 10,057 10,057
Line of Credit Interest 36 36 36 36 36 36 36 36
Line of Credit Repayments - - - - - - - -
Dividends Paid - - - - - - - -
Total Cash Outflows 1,751,551 2,029,443 2,502,773 2,118,320 2,267,827 2,538,566 2,222,746 2,542,136

Cash Flow 40,606 358,594 518,923 492,121 655,769 283,471 611,391 993,281

Operating Cash Balance 8,522,082 8,880,676 9,399,599 9,891,720 10,547,489 10,830,960 11,442,351 12,435,633

Line of Credit Drawdowns - - - - - - - -

Ending Cash Balance 8,522,082 8,880,676 9,399,599 9,891,720 10,547,489 10,830,960 11,442,351 12,435,633
Patilad Bakery Business
Projected Cash Flow Statement - Year Three

Jan Feb Mar Apr May Jun Jul Aug

Line of Credit Balance 5,438 5,438 5,438 5,438 5,438 5,438 5,438 5,438
Sep Oct Nov Dec Totals

12,435,633 13,157,836 14,423,378 15,741,834

4,054,508 4,041,096 4,143,799 3,772,838 37,939,759


- - - - -
4,054,508 4,041,096 4,143,799 3,772,838 37,939,759

- - - - -
- - - - -
1,803,073 1,792,070 1,841,859 1,677,863 16,704,926

405,809 405,809 405,809 405,809 4,869,707


567,582 567,582 567,582 567,582 6,810,978
545,748 - - 710,322 1,771,500
-
10,057 10,057 10,057 10,057 120,686
36 36 36 36 435
- - - - -
- - - - -
3,332,305 2,775,554 2,825,343 3,371,668 30,278,231

722,203 1,265,542 1,318,456 401,170 7,661,528

13,157,836 14,423,378 15,741,834 16,143,004

- - - - -

13,157,836 14,423,378 15,741,834 16,143,004


Sep Oct Nov Dec Totals

5,438 5,438 5,438 5,438


Patilad Bakery Business
Balance Sheet - Year Three

End of Year Two End of Year Three

Assets
Current Assets
Cash 8,481,476 16,143,004
Accounts Receivable - -
Inventory 100,000 100,000
Prepaid Expenses 385,000 -
Other Current 33,333 (0)
Total Current Assets 8,999,809 16,243,004

Fixed Assets
Land 700,000 700,000
Buildings 1,110,000 1,110,000
Leasehold Improvements - -
Equipment 1,895,000 1,895,000
Furniture and Fixtures 350,000 350,000
Vehicles 1,000,000 1,000,000
Other Fixed Assets 500,000 500,000
Total Fixed Assets 5,555,000 5,555,000

Less: Accumulated Depreciation 1,392,429 2,088,643

Total Assets 13,162,380 19,709,360

Liabilities and Owner's Equity


Liabilities
Accounts Payable - -
Notes Payable (434,571) (482,857)
Mortgage Payable 1,303,200 1,230,800
Patilad Bakery Business
Balance Sheet - Year Three

End of Year Two End of Year Three


Credit Card Debt - -
Vehicle Loans - -
Other Bank Debt - -
Line of Credit Balance 5,438 5,438
Total Liabilities 874,067 753,381

Owner's Equity
Common Stock 6,000,000 6,000,000
Retained Earnings 6,288,314 12,955,979
Dividends Dispersed - -
Total Owner's Equity 12,288,314 18,955,979

Total Liabilities and Owner's Equity 13,162,380 19,709,360

Statement Balances Statement Balances


Patilad Bakery Business
Financial Ratios

Ratio Year One Year Two Year Three


Liquidity
Current Ratio 4.3 10.3 21.6
Quick Ratio 3.4 9.7 21.4
Safety
Debt to Equity Ratio 0.1 0.1 0.0
Debt to Coverage Ratio 2.8 5.6 9.8
Profitability
Sales Growth 0.0% 18.9% 19.3%
COGS to Sales 44.2% 44.1% 44.0%
Gross Profit Margin 55.8% 55.9% 56.0%
SG&A to Sales 41.2% 35.7% 30.8%
Net Profit Margin 8.0% 13.1% 17.6%
Return on Equity 26.2% 33.8% 35.2%
Return on Assets 23.4% 31.6% 33.8%
Owner's Compensation to Sales 0.9% 0.8% 0.7%
Efficiency
Days in Receivables 0.0 0.0 0.0
Accounts Receivable Turnover 0.0 0.0 0.0
Days in Inventory 3.0 2.6 2.2
Inventory Turnover 118.3 140.3 167.0
Sales to Total Assets 2.9 2.4 1.9
RMA Industry Norms
Patilad Bakery Business
Breakeven Analysis

Breakeven Analysis Dollars Percent


Annual Sales Revenue ₦ 26,751,450.00 100.00%
Cost of Sales 11,832,700 44.23%
Gross Margin 14,918,750 55.77%

Salaries and Wages 4,612,576


Fixed Operating Expenses 7,116,613
Total Fixed Business Expenses 11,729,189

Breakeven Sales Calculation 11,729,189


55.77%

Breakeven Sales in Dollars ₦ 21,032,111.67


Patilad Bakery Business
Amortization Schedule

Loan Type Assumptions Jan Feb Mar Apr May Jun Jul

Commercial Loan
Principal Amount $ (338,000)
Interest Rate 0.00%
Loan Term in Months 84.00
Monthly Payment Amount $4,023.81

Year One
Interest - - - - - - -
Principal 4,024 4,024 4,024 4,024 4,024 4,024 4,024
Loan Balance (342,024) (346,048) (350,071) (354,095) (358,119) (362,143) (366,167)
Year Two
Interest - - - - - - -
Principal 4,024 4,024 4,024 4,024 4,024 4,024 4,024
Loan Balance (390,310) (394,333) (398,357) (402,381) (406,405) (410,429) (414,452)
Year Three
Interest - - - - - - -
Principal 4,024 4,024 4,024 4,024 4,024 4,024 4,024
Loan Balance (438,595) (442,619) (446,643) (450,667) (454,690) (458,714) (462,738)

Commercial Mortgage
Principal Amount $ 1,448,000.00
Interest Rate 0.00%
Loan Term in Months 240.00
Monthly Payment Amount $6,033.33

Year One
Interest - - - - - - -
Principal 6,033 6,033 6,033 6,033 6,033 6,033 6,033
Loan Balance 1,441,967 1,435,933 1,429,900 1,423,867 1,417,833 1,411,800 1,405,767
Year Two
Interest - - - - - - -
Principal 6,033 6,033 6,033 6,033 6,033 6,033 6,033
Loan Balance 1,369,567 1,363,533 1,357,500 1,351,467 1,345,433 1,339,400 1,333,367
Year Three
Interest - - - - - - -
Principal 6,033 6,033 6,033 6,033 6,033 6,033 6,033
Loan Balance 1,297,167 1,291,133 1,285,100 1,279,067 1,273,033 1,267,000 1,260,967

Credit Card Debt


Principal Amount $ -
Interest Rate 0.00%
Loan Term in Months 60.00
Monthly Payment Amount $0.00

Year One
Interest - - - - - - -
Principal - - - - - - -
Loan Balance - - - - - - -
Year Two
Interest - - - - - - -
Principal - - - - - - -
Loan Balance - - - - - - -
Year Three
Interest - - - - - - -
Principal - - - - - - -
Loan Balance - - - - - - -

Vehicle Loans
Principal Amount $ -
Interest Rate 0.00%
Loan Term in Months 48.00
Monthly Payment Amount $0.00
Year One
Interest - - - - - - -
Principal - - - - - - -
Loan Balance - - - - - - -
Year Two
Interest - - - - - - -
Principal - - - - - - -
Loan Balance - - - - - - -
Year Three
Interest - - - - - - -
Principal - - - - - - -
Loan Balance - - - - - - -

Other Bank Debt


Principal Amount $ -
Interest Rate 0.00%
Loan Term in Months 36.00
Monthly Payment Amount $0.00

Year One
Interest - - - - - - -
Principal - - - - - - -
Loan Balance - - - - - - -
Year Two
Interest - - - - - - -
Principal - - - - - - -
Loan Balance - - - - - - -
Year Three
Interest - - - - - - -
Principal - - - - - - -
Loan Balance - - - - - - -
Aug Sep Oct Nov Dec Totals

- - - - - -
4,024 4,024 4,024 4,024 4,024 48,286
(370,190) (374,214) (378,238) (382,262) (386,286)

- - - - - -
4,024 4,024 4,024 4,024 4,024 48,286
(418,476) (422,500) (426,524) (430,548) (434,571)

- - - - - -
4,024 4,024 4,024 4,024 4,024 48,286
(466,762) (470,786) (474,810) (478,833) (482,857)

- - - - - -
6,033 6,033 6,033 6,033 6,033 72,400
1,399,733 1,393,700 1,387,667 1,381,633 1,375,600

- - - - - -
6,033 6,033 6,033 6,033 6,033 72,400
1,327,333 1,321,300 1,315,267 1,309,233 1,303,200

- - - - - -
6,033 6,033 6,033 6,033 6,033 72,400
1,254,933 1,248,900 1,242,867 1,236,833 1,230,800

- - - - - -
- - - - - -
- - - - -

- - - - - -
- - - - - -
- - - - -

- - - - - -
- - - - - -
- - - - -
- - - - - -
- - - - - -
- - - - -

- - - - - -
- - - - - -
- - - - -

- - - - - -
- - - - - -
- - - - -

- - - - - -
- - - - - -
- - - - -

- - - - - -
- - - - - -
- - - - -

- - - - - -
- - - - - -
- - - - -
Patilad Bakery Business
Financial 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 Diagnostics Value Findings


General Financing Assumptions
Owner's Cash Injection into the Business 7.0% Owner's injection might be too low in relation to the amount of money needed
Cash Request as percent of Total Required Funds 2.8% Cash request seems reasonable with respect to total request

Loan Assumptions
Commercial Loan Interest rate 0.0% Interest rate may be too low for the type of loan requested
Commercial Loan Term in Months 84 Loan term seems within range for this type of loan

Commercial Mortgage Interest rate 0.0% Interest rate may be too low for type of loan requested
Commercial Mortgage Term in Months 240 Loan term seems within range for this type of loan

Loan Payments as a Percent of Projected Sales 0.0% Calculated loan payments as a percent of sales seem resonable

Income Statement
Gross Margin as a Percent of Sales 55.8% Gross margin percentage seems reasonable
Owner's Compensation Lower Limit Check $ 240,000 An owner's compensation amount has been established
Owner's Compensation Upper Limit Check 11.3% Owner's compensation seems reasonable
Advertising Expense Levels as a Percent of Sales 4.5% Advertising as a percent of sales may be too low
Profitability Levels $ 2,133,315 The business is showing a profit
Profitability as a Percent of Sales 8.0% The projection does not seem highly unreasonable

Cash Flow Statement


Desired Operating cash Flow Levels $ 5,438 The financial projection does not provide the desired level of cash flow
Line of Credit Drawdowns $ 5,438 The business will need at least this level of a line of credit
Accounts Receivable Ratio to Sales 0.0% Accounts receivable amount as a percent of sales seems reasonable
Balance Sheet
Does the Base Period Balance Sheet Balance? - The balance sheet does balance
Does the Final Balance Sheet Balance - The balance sheet does balance
Debt to Equity Ratio 12.2% The debt to equity ratio seems reasonable

Breakeven Analysis
Breakeven Levels $ 5,719,338 The sales projection exceeds the projected break-even sales level
relation to the amount of money needed
respect to total request

pe of loan requested

of loan requested

nt of sales seem resonable

s been established

ide the desired level of cash flow


vel of a line of credit
cent of sales seems reasonable
ected break-even sales level

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