Mid Atlantic Recycling
Financial Plan
Forecast
Key assumptions
We assume that:
- recycling is necessary for the planet
- our customers appreciate options for their needs
- there are a lot of products to help process
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of funds
Start-up Expenses
Legal $500
Phone/utilities deposits $500
Licenses/tax deposit $4,000
Insurance $1,000
Brochures/sales literature $500
Advertising $2,500
Employee salaries $16,680
Skid boxes, 15 @ $3,000 ea. $45,000
Welding and cutting torch$ 10,000
Furniture and supplies $5,000
Website development $1,500
Miscellaneous $5,000
TOTAL START-UP EXPENSES $92,180
Our start-up costs will be $1,000,000. The funds will be primarily used for the following:
Capital Asset Purchases
Processing Plants 2 x $190,460
$380,920
Processing Plants built in-house 2 x $40,000
$80,000
Sheds 48’x72′ 4 x $18,500
$74,000
Skid Truck 2 x $73,000 (avg price)
$146,000
Backhoe
$40,000
Front-end Loader 2 x $50,000
$100,000
Tandem Dump Trailer
$6,000
Total
$826,920
Sources of Funds
We will have angel investors that will give us $850,000 and the owners will provide $150,000 totaling $1,000,000
Statements
Projected Profit and Loss
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Revenue | $2,835,945 | $3,303,700 | $3,324,450 |
| Direct Costs | $1,368,646 | $1,593,168 | $1,603,128 |
| Gross Margin | $1,467,299 | $1,710,532 | $1,721,322 |
| Gross Margin % | 52% | 52% | 52% |
| Operating Expenses | |||
| Salaries & Wages | $804,000 | $820,080 | $836,478 |
| Employee Related Expenses | $160,800 | $164,016 | $167,296 |
| Utilities | $21,600 | $21,600 | $21,600 |
| Insurance | $24,000 | $24,000 | $24,000 |
| Marketing | $28,359 | $33,037 | $33,245 |
| Rent | $85,078 | $99,111 | $99,734 |
| Total Operating Expenses | $1,123,838 | $1,161,844 | $1,182,351 |
| Operating Income | $343,462 | $548,688 | $538,970 |
| Interest Incurred | $15,770 | $13,051 | $10,278 |
| Depreciation and Amortization | $51,625 | $51,625 | $51,625 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $0 | $0 | $0 |
| Total Expenses | $2,559,878 | $2,819,689 | $2,847,382 |
| Net Profit | $276,067 | $484,011 | $477,068 |
| Net Profit/Sales | 10% | 15% | 14% |
Projected Balance Sheet
| Starting Balances | 2018 | 2019 | 2020 | |
|---|---|---|---|---|
| Cash | $92,000 | $285,006 | $683,238 | $1,071,752 |
| Accounts Receivable | $0 | $0 | $0 | |
| Inventory | ||||
| Other Current Assets | ||||
| Total Current Assets | $92,000 | $285,006 | $683,238 | $1,071,752 |
| Long-Term Assets | $826,000 | $826,000 | $826,000 | $826,000 |
| Accumulated Depreciation | ($51,625) | ($103,250) | ($154,875) | |
| Total Long-Term Assets | $826,000 | $774,375 | $722,750 | $671,125 |
| Total Assets | $918,000 | $1,059,381 | $1,405,988 | $1,742,877 |
| Accounts Payable | $0 | $0 | $0 | |
| Income Taxes Payable | $0 | $0 | $0 | |
| Sales Taxes Payable | $0 | $0 | $0 | |
| Short-Term Debt | $134,686 | $137,405 | $140,178 | $143,008 |
| Prepaid Revenue | ||||
| Total Current Liabilities | $134,686 | $137,405 | $140,178 | $143,008 |
| Long-Term Debt | $715,314 | $577,909 | $437,731 | $294,723 |
| Long-Term Liabilities | $715,314 | $577,909 | $437,731 | $294,723 |
| Total Liabilities | $850,000 | $715,314 | $577,909 | $437,731 |
| Paid-In Capital | $150,000 | $150,000 | $150,000 | $150,000 |
| Retained Earnings | ($82,000) | ($82,000) | $194,067 | $678,078 |
| Earnings | $276,067 | $484,012 | $477,068 | |
| Total Owner’s Equity | $68,000 | $344,067 | $828,078 | $1,305,146 |
| Total Liabilities & Equity | $918,000 | $1,059,381 | $1,405,988 | $1,742,877 |
Projected Cash Flow Statement
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | $276,067 | $484,011 | $477,068 |
| Depreciation & Amortization | $51,625 | $51,625 | $51,625 |
| Change in Accounts Receivable | $0 | $0 | $0 |
| Change in Inventory | |||
| Change in Accounts Payable | $0 | $0 | $0 |
| Change in Income Tax Payable | $0 | $0 | $0 |
| Change in Sales Tax Payable | $0 | $0 | $0 |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | $327,692 | $535,637 | $528,693 |
| Investing & Financing | |||
| Assets Purchased or Sold | |||
| Net Cash from Investing | |||
| Investments Received | |||
| Dividends & Distributions | |||
| Change in Short-Term Debt | $2,719 | $2,773 | $2,829 |
| Change in Long-Term Debt | ($137,405) | ($140,178) | ($143,008) |
| Net Cash from Financing | ($134,686) | ($137,405) | ($140,178) |
| Cash at Beginning of Period | $92,000 | $285,006 | $683,238 |
| Net Change in Cash | $193,006 | $398,232 | $388,514 |
| Cash at End of Period | $285,006 | $683,238 | $1,071,752 |
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