Golden Valley Real Estate LLC
Financial Plan
Forecast
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
Start-up Expenses
Legal $800
Insurance $1,500
utilities $200
Rent $3,000
Accounting and bookkeeping fees $2,000
Build a website: $7,000
Total: $30,500
Sources of Funds
We will be getting $28,000 from the owner and her husband
Statements
Projected Profit & Loss
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Revenue | $399,600 | $439,200 | $525,600 |
| Direct Costs | $79,920 | $87,840 | $105,120 |
| Gross Margin | $319,680 | $351,360 | $420,480 |
| Gross Margin % | 80% | 80% | 80% |
| Operating Expenses | |||
| Salaries & Wages | $127,200 | $129,744 | $132,338 |
| Employee Related Expenses | $25,440 | $25,949 | $26,467 |
| Advertising | $24,400 | $6,500 | $4,800 |
| Rent | $38,400 | $38,400 | $38,400 |
| Utilities | $7,200 | $7,200 | $7,200 |
| Marketing – Website subscriptions etc | $10,200 | $10,200 | $10,200 |
| Sales | $18,000 | $18,000 | $18,000 |
| Amortization of Other Current Assets | $0 | $0 | $0 |
| Total Operating Expenses | $250,840 | $235,993 | $237,405 |
| Operating Income | $68,840 | $115,367 | $183,075 |
| Interest Incurred | |||
| Depreciation and Amortization | ($1,000) | ($1,000) | ($1,000) |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $0 | $0 | $0 |
| Total Expenses | $329,760 | $322,833 | $341,525 |
| Net Profit | $69,840 | $116,367 | $184,075 |
| Net Profit/Sales | 17% | 26% | 35% |
Projected Balance Sheet
| Starting Balances | 2018 | 2019 | 2020 | |
|---|---|---|---|---|
| Cash | $15,000 | $81,159 | $195,935 | $378,792 |
| Accounts Receivable | $1,620 | $1,800 | $2,160 | |
| Inventory | ||||
| Other Current Assets | $3,500 | $3,500 | $3,500 | $3,500 |
| Total Current Assets | $18,500 | $86,279 | $201,235 | $384,452 |
| Long-Term Assets | $5,000 | $5,000 | $5,000 | $5,000 |
| Accumulated Depreciation | ($8,000) | ($7,000) | ($6,000) | ($5,000) |
| Total Long-Term Assets | ($3,000) | ($2,000) | ($1,000) | $0 |
| Total Assets | $15,500 | $84,279 | $200,235 | $384,452 |
| Accounts Payable | $3,000 | $1,939 | $1,528 | $1,671 |
| Income Taxes Payable | $0 | $0 | $0 | |
| Sales Taxes Payable | $0 | $0 | $0 | |
| Short-Term Debt | ||||
| Prepaid Revenue | ||||
| Total Current Liabilities | $3,000 | $1,939 | $1,528 | $1,671 |
| Long-Term Debt | ||||
| Long-Term Liabilities | ||||
| Total Liabilities | $3,000 | $1,939 | $1,528 | $1,671 |
| Paid-In Capital | $28,000 | $28,000 | $28,000 | $28,000 |
| Retained Earnings | ($15,500) | ($15,500) | $54,340 | $170,707 |
| Earnings | $69,840 | $116,367 | $184,074 | |
| Total Owner’s Equity | $12,500 | $82,340 | $198,707 | $382,782 |
| Total Liabilities & Equity | $15,500 | $84,279 | $200,235 | $384,452 |
Projected Cash Flow Statement
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | $69,840 | $116,367 | $184,075 |
| Depreciation & Amortization | ($1,000) | ($1,000) | ($1,000) |
| Change in Accounts Receivable | ($1,620) | ($180) | ($360) |
| Change in Inventory | |||
| Change in Accounts Payable | ($1,061) | ($411) | $143 |
| 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 | $66,159 | $114,776 | $182,857 |
| 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 | $15,000 | $81,159 | $195,935 |
| Net Change in Cash | $66,159 | $114,776 | $182,857 |
| Cash at End of Period | $81,159 | $195,935 | $378,792 |
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