Bryan's Tutoring Service
Financial Plan
Forecast
Key assumptions
Our key assumptions are:
- In this education based society people to get degrees to get ahead.
- Not everyone learns the same.
- Different tools help different people ace the tests
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of funds
The tutoring business will need about $5,000 to start. Costs include gas and transportation to meet with students away from his home and occasional handouts. Bryan has reserved a room in his house and an office/meeting room for his business. Additionally, Bryan incurs Internet service provider fees, and every two years a new computer.
Sources of Funds
Bryan will use the money he made in his side job to make the tutoring his only source of income.
Statements
Projected Profit and Loss
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Revenue | $71,830 | $72,790 | $73,750 |
| Direct Costs | $3,592 | $3,639 | $3,688 |
| Gross Margin | $68,239 | $69,151 | $70,063 |
| Gross Margin % | 95% | 95% | 95% |
| Operating Expenses | |||
| Rent | $36,000 | $36,000 | $36,000 |
| Supplies | $9,600 | $9,600 | $9,600 |
| Utilities | $1,437 | $1,455 | $1,475 |
| Insurance | $2,400 | $2,400 | $2,400 |
| Marketing | $718 | $728 | $738 |
| Amortization of Other Current Assets | $0 | $0 | $0 |
| Total Operating Expenses | $50,155 | $50,184 | $50,212 |
| Operating Income | $18,084 | $18,966 | $19,850 |
| Interest Incurred | |||
| Depreciation and Amortization | |||
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $2,713 | $2,845 | $2,977 |
| Total Expenses | $56,459 | $56,669 | $56,877 |
| Net Profit | $15,371 | $16,121 | $16,873 |
| Net Profit/Sales | 21% | 22% | 23% |
Projected Balance Sheet
| Starting Balances | 2018 | 2019 | 2020 | |
|---|---|---|---|---|
| Cash | $4,200 | $20,399 | $35,536 | $52,375 |
| Accounts Receivable | $3,871 | $4,768 | $4,843 | |
| Inventory | ||||
| Other Current Assets | $300 | $300 | $300 | $300 |
| Total Current Assets | $4,500 | $24,570 | $40,604 | $57,519 |
| Long-Term Assets | ||||
| Accumulated Depreciation | ||||
| Total Long-Term Assets | ||||
| Total Assets | $4,500 | $24,570 | $40,604 | $57,519 |
| Accounts Payable | $135 | $3,953 | $4,035 | $4,041 |
| Income Taxes Payable | $882 | $712 | $747 | |
| Sales Taxes Payable | $0 | $0 | $0 | |
| Short-Term Debt | ||||
| Prepaid Revenue | ||||
| Total Current Liabilities | $135 | $4,835 | $4,747 | $4,788 |
| Long-Term Debt | ||||
| Long-Term Liabilities | ||||
| Total Liabilities | $135 | $4,835 | $4,747 | $4,788 |
| Paid-In Capital | ||||
| Retained Earnings | $4,365 | $4,365 | $19,736 | $35,857 |
| Earnings | $15,371 | $16,122 | $16,873 | |
| Total Owner’s Equity | $4,365 | $19,736 | $35,857 | $52,730 |
| Total Liabilities & Equity | $4,500 | $24,570 | $40,604 | $57,519 |
Projected Cash Flow Statement
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | $15,371 | $16,121 | $16,873 |
| Depreciation & Amortization | $0 | $0 | $0 |
| Change in Accounts Receivable | ($3,871) | ($897) | ($75) |
| Change in Inventory | |||
| Change in Accounts Payable | $3,818 | $82 | $7 |
| Change in Income Tax Payable | $882 | ($170) | $35 |
| Change in Sales Tax Payable | $0 | $0 | $0 |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | $16,199 | $15,136 | $16,840 |
| Investing & Financing | |||
| Assets Purchased or Sold | |||
| Net Cash from Investing | |||
| Investments Received | |||
| Dividends & Distributions | |||
| Change in Short-Term Debt | |||
| Change in Long-Term Debt | |||
| Net Cash from Financing | |||
| Cash at Beginning of Period | $4,200 | $20,399 | $35,536 |
| Net Change in Cash | $16,199 | $15,136 | $16,840 |
| Cash at End of Period | $20,399 | $35,536 | $52,375 |
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