Clara's Hardware Store
Financial Plan
Forecast
Key Assumptions
Our key assumptions:
- Our customers appreciate better lighting and brighter colors
- If they feel welcome they customers will return
- Customers have DIY projects and well trained agents can help
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
Our startup Expenses are:
Display Set-Up $5,000
Cash Reserve for Hiring $20,000
Start Up Inventory : $6,000
Rent: $3,000
Legal: $1,000
The total is: $35000
There will be an additional $45,000 of machinery and tools to keep the hardware store well stocked and help our customers
Sources of Funds
We will have $80,000 dollars from our founder Clara Johnson
Statements
Projected Profit & Loss
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Revenue | $802,000 | $855,000 | $896,000 |
| Direct Costs | $320,800 | $342,000 | $358,400 |
| Gross Margin | $481,200 | $513,000 | $537,600 |
| Gross Margin % | 60% | 60% | 60% |
| Operating Expenses | |||
| Salaries & Wages | $211,200 | $215,424 | $342,081 |
| Employee Related Expenses | $42,240 | $43,085 | $68,416 |
| Rent | $36,000 | $36,000 | $36,000 |
| Marketing | $24,060 | $25,650 | $26,880 |
| Utilities | $7,200 | $7,200 | $7,200 |
| Total Operating Expenses | $320,700 | $327,359 | $480,577 |
| Operating Income | $160,500 | $185,641 | $57,023 |
| Interest Incurred | $1,216 | $50 | $51 |
| Depreciation and Amortization | $1,875 | $1,875 | $1,875 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $23,611 | $27,558 | $8,264 |
| Total Expenses | $668,202 | $698,841 | $849,168 |
| Net Profit | $133,798 | $156,159 | $46,832 |
| Net Profit/Sales | 17% | 18% | 5% |
Projected Balance Sheet
| Starting Balances | 2018 | 2019 | 2020 | |
|---|---|---|---|---|
| Cash | $40,000 | $78,818 | $249,368 | $289,738 |
| Accounts Receivable | $109,652 | $88,279 | $92,512 | |
| Inventory | $57,000 | $59,733 | $59,734 | |
| Other Current Assets | ||||
| Total Current Assets | $40,000 | $245,470 | $397,380 | $441,983 |
| Long-Term Assets | $15,000 | $15,000 | $15,000 | $15,000 |
| Accumulated Depreciation | ($1,875) | ($3,750) | ($5,625) | |
| Total Long-Term Assets | $15,000 | $13,125 | $11,250 | $9,375 |
| Total Assets | $55,000 | $258,595 | $408,630 | $451,358 |
| Accounts Payable | $10,000 | $53,523 | $54,830 | $54,988 |
| Income Taxes Payable | $11,658 | $6,890 | $2,064 | |
| Sales Taxes Payable | $13,400 | $10,687 | $11,200 | |
| Short-Term Debt | $1,216 | $1,266 | $1,317 | |
| Prepaid Revenue | ||||
| Total Current Liabilities | $10,000 | $79,797 | $73,673 | $69,570 |
| Long-Term Debt | ||||
| Long-Term Liabilities | ||||
| Total Liabilities | $10,000 | $79,797 | $73,673 | $69,570 |
| Paid-In Capital | $80,000 | $80,000 | $80,000 | $80,000 |
| Retained Earnings | ($35,000) | ($35,000) | $98,798 | $254,957 |
| Earnings | $133,798 | $156,159 | $46,832 | |
| Total Owner’s Equity | $45,000 | $178,798 | $334,957 | $381,789 |
| Total Liabilities & Equity | $55,000 | $258,595 | $408,630 | $451,358 |
Projected Cash Flow Statement
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | $133,798 | $156,159 | $46,832 |
| Depreciation & Amortization | $1,875 | $1,875 | $1,875 |
| Change in Accounts Receivable | ($109,652) | $21,373 | ($4,233) |
| Change in Inventory | ($57,000) | ($2,733) | $0 |
| Change in Accounts Payable | $43,523 | $1,308 | $158 |
| Change in Income Tax Payable | $11,658 | ($4,768) | ($4,826) |
| Change in Sales Tax Payable | $13,400 | ($2,713) | $513 |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | $37,602 | $170,500 | $40,319 |
| Investing & Financing | |||
| Assets Purchased or Sold | |||
| Net Cash from Investing | |||
| Investments Received | |||
| Dividends & Distributions | |||
| Change in Short-Term Debt | $1,216 | $50 | $52 |
| Change in Long-Term Debt | |||
| Net Cash from Financing | $1,216 | $50 | $52 |
| Cash at Beginning of Period | $40,000 | $78,818 | $249,368 |
| Net Change in Cash | $38,818 | $170,549 | $40,370 |
| Cash at End of Period | $78,818 | $249,368 | $289,738 |
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