Financial Projections Model v6.8.3

Financial Projections Model
For Business Plans

Frank Moyes and Stephen Lawrence
Deming Center for Entrepreneurship
Leeds College of Business
University of Colorado
Boulder, Colorado
Copyright 2003 by the Regents of the University of Colorado
Instructions
Financial Projections Model
v6.8.3
This financial model is designed to enable entrepreneurs and students project the financial results of
their ventures for a five-year period. As with all models there are certain simplifying assumptions that
have been made. Each of the assumption spreadsheets has an accompanying Comments box
(denoted by a cell with small red triangle in the upper right corner) that provides suggestions on how
to complete the spreadsheet and the underlying assumptions to the model.
You will notice that the cells in the spreadsheet are color-coded. This has been done to assist you in
entering data, creating or changing formulae, or deleting data, formulae and links.
Enter data and information in Green shaded cells only.
Blue shaded cells calculate results within a spreadsheet.
Data in Yellow shaded cells is transferred to other worksheets.
Purple shaded cells bring in data from other spreadsheets.
In the Green and Blue shaded cells, data and formulas may changed, moved or deleted. The current
calculations are for illustration only -- you will need to tailor these spreadsheets to fit your plan.
In the Yellow shaded cells data and formulas may be changed, but not deleted.
DO NOT delete the Purple shaded cells -- they link one spreadsheet with others.
There are 7 principal spreadsheet outputs of this model:
INCOME: Income Statement
BALANCE: Balance Sheet
CASHFLOW: Cash Flow Statement
BREAKEVEN: Break-even analysis
SUMMARY: Analysis of key measures
INCOME-MOS: Income Statements by months for Years 1 to 5
CASHFLOW-MOS: Cash flow Statements by months for Years 1 and 2, and
by quarters for Years 3 to 5
VAL-1 & VAL-2: Venture capital method for valuing companies
All other spreadsheets are to be used for calculating the underlying assumptions of the 7 principal
spreadsheets:
COMPS: Comparison of financial measures to peer companies
REVENUE: Revenue Projections
COST OF REV: Cost of Goods Sold
OPER EXPEN: Operating Expenses
PROP & EQUIP: Capital Expenditures, Depreciation, and Net Fixed Assets
SALARIES: Salary Personnel
EXTRA: Extraordinary Income and Expense
TAXES: Tax calculation
WORKCAP: Working Capital
FUNDING: Equity, Debt, Interest Expense, Interest Income, Dividends and
Retained Earnings
These assumption spreadsheets are linked to each other and to the 7 principal spreadsheets. When
you make a change in one of the spreadsheets, the impact is automatically recalculated for all other
spreadsheets.
When doing financial projections, it is easy to get lost in the trees and lose the sense of what is reality.
Most errors can be identified if you continuously ask yourself Does this result make sense? The
COMPS spreadsheet, where you look at peer companies, can be particularly helpful as a reality test.
There is an example in the model with which you can experiment. When you are ready to start your
own projections, clear all the numbers in the green shaded cells, and then you can begin to enter new
numbers. Enter the name of your company in the first cell of the COMPS spreadsheet. Before you
begin, make a copy of the model on a separate disk.
This original version of the model has been used since the mid-1980s. It has undergone numerous
revisions over that period. Since 1998, students in the Business Plan Preparation course at the
University of Colorado have used it to prepare their business plans. We have appreciated their
suggestions for improvements and would encourage all users to send us comments and suggestions.
Created by Frank Moyes and Stephen Lawrence

Deming Center for Entrepreneurship
Leeds School of Business
University of Colorado
Boulder, Colorado
Copyright 2001 by the Regents of the University of Colorado
06/17/2011
16:34:50
XYZ Company
Notes
Peer Company Comparisons
Company A
Company B
Company C
Select Best
Comparison
Projections
Year 1
Year 2
Year 3
Year 4
Year 5
10.0%
15.0%
8.0%
16.0%
9.0%
2.3
1.2
8.3%
8.3%
8.7%
7.9%
23.7%
4.2
0.00
8.3%
8.3%
8.7%
7.9%
11.5%
2.0
0.32
8.3%
6.7%
8.7%
6.3%
9.3%
2.0
0.18
8.3%
6.7%
8.7%
6.3%
7.3%
1.9
0.10
8.3%
6.7%
8.7%
6.3%
5.5%
2.1
0.04
30.0%
30.0%
30.0%
30.0%
40.0%
12.0%
12.0%
3.0%
14.0%
5.0%
30.0%
17.0%
12.0%
12.0%
3.0%
14.0%
5.0%
-11.7%
22.9%
14.9%
17.2%
55.0%
-66.7%
-71.2%
4.3%
-66.9%
-71.2%
32.7%
19.0%
7.9%
8.9%
35.7%
-3.0%
-3.0%
2.5%
-0.5%
-4.2%
41.5%
18.5%
7.2%
8.1%
33.8%
7.7%
7.7%
2.5%
10.2%
7.2%
42.5%
17.9%
7.6%
7.3%
32.9%
9.6%
9.6%
2.3%
11.9%
6.2%
46.0%
18.0%
6.7%
6.8%
31.5%
14.5%
14.5%
2.0%
16.5%
8.7%
Returns
Return on Assets
Return on Equity
Return on Capital (LT Debt + Equity)
12.0%
15.0%
15.0%
12.0%
15.0%
15.0%
-74.1%
-90.4%
-90.4%
-9.5%
-20.4%
-13.9%
21.7%
39.7%
32.4%
20.0%
36.1%
32.6%
27.2%
45.2%
43.5%
Growth
Revenue Growth Rate - CAGR:
Net Earnings Growth Rate - CAGR:
15.0%
12.0%
15.0%
12.0%
425.0%
Negative
85.7%
Negative
66.7%
42.3%
60.0%
124.6%
Ratios
Accounts Receivable % of Rev
Inventory % of Rev
Accounts Payable % of Rev
Working Capital % of Rev
Net Fixed Assets % of Rev
Current Ratio
Debt to Capital (LT Debt + Equity)
10.0%
15.0%
8.0%
16.0%
9.0%
2.3
1.2
Profitability
Gross Profit % of Rev
Sales & Marketing % of Rev
Research & Development % of Rev
General & Administration % of Rev
Operating Expenses % of Rev
Earnings from Operations % of Rev
EBIT % of Rev
Depreciation % of Rev
EBITDA % of Rev
Net Earnings % of Rev
06/17/2011
16:34:50
XYZ Company
Revenue Projections
Years 1 to 5
($)
Product A
Number of Units
Price per unit
Total
Service B
Number of Customers
Fee per Customer
Total
Net Revenue
Months
Month 1
Month 2
Month 3
Total 1st Quarter
Month 4
Month 5
Month 6
Total 2nd Quarter
Month 7
Month 8
Month 9
Total 3rd Quarter
Month 10
Month 11
Month 12
Total 4th Quarter
Total for year
Average Revenue
by Month
by Quarter
Year 1
Year 2
Year 3
Year 4
Year 5
20,000
50
1,000,000
75,000
50
3,750,000
150,000
45
6,750,000
250,000
45
11,250,000
400,000
40
16,000,000
50,000
30
1,500,000
100,000
30
3,000,000
200,000
25
5,000,000
500,000
20
10,000,000
1,000,000
5,250,000
9,750,000
16,250,000
26,000,000
Revenues by Months & Quarters

($)
Year 1
Year 2
Year 3
Year 4
Year 5
2,000,000
3,000,000
5,000,000
2,500,000
4,000,000
6,000,000
2,500,000
4,500,000
7,000,000
2,750,000
9,750,000
4,750,000
16,250,000
8,000,000
26,000,000
812,500
2,437,500
1,354,167
4,062,500
2,166,667
6,500,000
0
0
0
0
50,000
80,000
100,000
230,000
100,000
120,000
150,000
370,000
120,000
130,000
150,000
400,000
1,000,000
262,500
262,500
367,500
892,500
315,000
367,500
367,500
1,050,000
420,000
525,000
525,000
1,470,000
577,500
630,000
630,000
1,837,500
5,250,000
83,333
250,000
437,500
1,312,500
06/17/2011
16:34:50
XYZ Company
Cost of Revenues
Years 1 to 5
($)
Year 1
Year 2
Year 3
Year 4
Year 5
1,000,000
5,250,000
9,750,000
16,250,000
26,000,000
Product A
Material Costs per Unit
Subcontact Costs per Unit
Total Direct Costs per Unit
Unit Sales
Total Direct Costs
Labor Costs
Total Direct Costs
15.00
10.00
25.00
20,000
500,000
69,000
569,000
14.00
10.00
24.00
75,000
1,800,000
227,700
2,027,700
11.00
7.00
18.00
150,000
2,700,000
552,000
3,252,000
10.00
6.50
16.50
250,000
4,125,000
864,000
4,989,000
9.00
6.00
15.00
400,000
6,000,000
1,200,000
7,200,000
Service B
Service Personnel Costs
120,750
212,750
480,000
1,500,000
2,750,000
Other Expenses
Salary Expenses
Depreciation
Facility costs (rent, energy)
System Costs
276,000
36,714
50,000
25,000
690,000
91,714
200,000
100,000
990,000
137,429
300,000
150,000
1,410,000
190,286
300,000
300,000
2,000,000
243,143
450,000
350,000
40,000
1,117,464
111.7%
210,000
3,532,164
67.3%
390,000
5,699,429
58.5%
650,000
9,339,286
57.5%
1,040,000
14,033,143
54.0%
729,750
387,714
1,117,464
2,450,450
1,081,714
3,532,164
4,122,000
1,577,429
5,699,429
7,139,000
2,200,286
9,339,286
10,990,000
3,043,143
14,033,143
Year 4
Year 5
Revenue
Cost of Revenue
All other costs % of Revenue

Total Cost of Revenues
% of Revenue
Allocation of Cost of Revenue between:
Variable
Fixed
Total
4%
Cost of Revenues by Months & Quarters

($)
Year 1
Year 2
Year 3
Month 1
Month 2
Month 3
Total 1st Quarter
Month 4
Month 5
Month 6
Total 2nd Quarter
Month 7
Month 8
Month 9
Total 3rd Quarter
Month 10
Month 11
Month 12
Total 4th Quarter
Total for year
0
0
0
0
55,873
89,397
111,746
257,017
111,746
134,096
167,620
413,462
134,096
145,270
167,620
446,986
1,117,464
176,608
176,608
247,252
600,468
211,930
247,252
247,252
706,433
282,573
353,216
353,216
989,006
388,538
423,860
423,860
1,236,258
3,532,164
0
0
0
1,169,114
0
0
0
1,461,392
0
0
0
1,461,392
0
0
0
1,607,531
5,699,429
0
0
0
1,724,176
0
0
0
2,298,901
0
0
0
2,586,264
0
0
0
2,729,945
9,339,286
0
0
0
2,698,681
0
0
0
3,238,418
0
0
0
3,778,154
0
0
0
4,317,890
14,033,143
06/17/2011
16:34:50
XYZ Company
Operating Expenses
Years 1 to 5
($)
Net Revenues
Sales & Marketing
Drivers
Salaries and Benefits
Commissions % of Revenue
Direct Mail Campaign
All other expenses % of Revenue
Total Sales and Marketing
% of Revenue
5%
6%
Research & Development

Drivers
Testing
Total Reaserch & Development
% of Revenue
3%
General & Administration

Drivers
Depreciation
Rent and Utilities

Total General & Administration
% of Revenue
Total Operating Expenses
% of Revenue
Allocation of Operating Expenses between:
Vaiable
Fixed
Total
2%
Year 1
Year 2
Year 3
Year 4
Year 5
1,000,000
5,250,000
9,750,000
16,250,000
26,000,000
69,000
50,000
50,000
270,250
262,500
150,000
432,900
487,500
300,000
624,000
812,500
500,000
816,000
1,300,000
1,000,000
60,000
229,000
22.9%
315,000
997,750
19.0%
585,000
1,805,400
18.5%
975,000
2,911,500
17.9%
1,560,000
4,676,000
18.0%
69,000
50,000
195,500
60,000
310,050
100,000
504,000
250,000
672,000
300,000
30,000
149,000
14.9%
157,500
413,000
7.9%
292,500
702,550
7.2%
487,500
1,241,500
7.6%
780,000
1,752,000
6.7%
125,000
6,667
20,000
300,150
40,000
20,000
388,440
106,667
100,000
573,600
183,333
110,000
784,800
266,667
200,000
20,000
105,000
195,000
325,000
520,000
171,667
17.2%
465,150
8.9%
790,107
8.1%
1,191,933
7.3%
1,771,467
6.8%
549,667
55.0%
1,875,900
35.7%
3,298,057
33.8%
5,344,933
32.9%
8,199,467
31.5%
160,000
389,667
549,667
840,000
1,035,900
1,875,900
1,560,000
1,738,057
3,298,057
2,600,000
2,744,933
5,344,933
4,160,000
4,039,467
8,199,467
Year 4
Year 5
Sales & Marketing by Months & Quarters

($)
Year 1
Year 2
Year 3
Month 1
Month 2
Month 3
Total 1st Quarter
Month 4
Month 5
Month 6
Total 2nd Quarter
Month 7
Month 8
Month 9
Total 3rd Quarter
Month 10
Month 11
Month 12
0
0
0
0
11,450
18,320
22,900
52,670
22,900
27,480
34,350
84,730
27,480
29,770
34,350
49,888
49,888
69,843
169,618
59,865
69,843
69,843
199,550
79,820
99,775
99,775
279,370
109,753
119,730
119,730
0
0
0
370,338
0
0
0
462,923
0
0
0
462,923
0
0
0
0
0
0
537,508
0
0
0
716,677
0
0
0
806,262
0
0
0
0
0
0
899,231
0
0
0
1,079,077
0
0
0
1,258,923
0
0
0
Total 4th Quarter

Total for year
91,600
229,000
349,213
997,750
509,215
1,805,400
851,054
2,911,500
Research & Development by Months & Quarters

($)
Year 1
Year 2
Year 3
Year 4
Month 1
Month 2
Month 3
Total 1st Quarter
Month 4
Month 5
Month 6
Total 2nd Quarter
Month 7
Month 8
Month 9
Total 3rd Quarter
Month 10
Month 11
Month 12
Total 4th Quarter
Total for year
0
0
0
0
7,450
11,920
14,900
34,270
14,900
17,880
22,350
55,130
17,880
19,370
22,350
59,600
149,000
20,650
20,650
28,910
70,210
24,780
28,910
28,910
82,600
33,040
41,300
41,300
115,640
45,430
49,560
49,560
144,550
413,000
0
0
0
144,113
0
0
0
180,141
0
0
0
180,141
0
0
0
198,155
702,550
0
0
0
229,200
0
0
0
305,600
0
0
0
343,800
0
0
0
362,900
1,241,500
General & Administrative by Months & Quarters

($)
Year 1
Year 2
Year 3
Year 4
Month 1
Month 2
Month 3
Total 1st Quarter
Month 4
Month 5
Month 6
Total 2nd Quarter
Month 7
Month 8
Month 9
Total 3rd Quarter
Month 10
Month 11
Month 12
Total 4th Quarter
Total for year
0
0
0
0
8,583
13,733
17,167
39,483
17,167
20,600
25,750
63,517
20,600
22,317
25,750
68,667
171,667
23,258
23,258
32,561
79,076
27,909
32,561
32,561
93,030
37,212
46,515
46,515
130,242
51,167
55,818
55,818
162,803
465,150
0
0
0
162,073
0
0
0
202,591
0
0
0
202,591
0
0
0
222,851
790,107
0
0
0
220,049
0
0
0
293,399
0
0
0
330,074
0
0
0
348,411
1,191,933
1,438,769
06/17/2011
16:34:51
4,676,000
Year 5
0
0
0
336,923
0
0
0
404,308
0
0
0
471,692
0
0
0
539,077
1,752,000
Year 5
0
0
0
340,667
0
0
0
408,800
0
0
0
476,933
0
0
0
545,067
1,771,467
06/17/2011
16:34:51
XYZ Company
Personnel
Years 1 to 5
($)
Net Revenues
Sales & Marketing
Sales Manager
Marketing Manager
Customer service
Tech support
(other)
(other)
(other)
Total Salary
Benefits
Percent (%)
Total benefit costs
Total S & M Compensation
% of Revenue
Research and Development
R & D Manager
Engineers
Technicians
Subcontract
(other)
(other)
Total Salary
Benefits
Percent (%)
Total benefit costs
Total R & D Compensation
% of Revenue
General & Administration
Chief Executive Officer
Chief Financial Officer
Accounting
Secretarial
Clerks and admin personnel
(other)
(other)
Total Salary
Benefits
Percent (%)
Total benefit costs
Total G & A Compensation
% of Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
1,000,000
5,250,000
9,750,000
16,250,000
26,000,000
60,000
80,000
80,000
40,000
35,000
100,000
100,000
120,000
50,000
125,000
125,000
200,000
70,000
150,000
150,000
250,000
130,000
60,000
235,000
370,000
520,000
680,000
15%
9,000
69,000
6.9%
15%
35,250
270,250
5.1%
17%
62,900
432,900
4.4%
20%
104,000
624,000
3.8%
20%
136,000
816,000
3.1%
60,000
80,000
60,000
30,000
100,000
130,000
35,000
125,000
230,000
65,000
150,000
300,000
110,000
60,000
170,000
265,000
420,000
560,000
15%
9,000
69,000
6.9%
15%
25,500
195,500
3.7%
17%
45,050
310,050
3.2%
20%
84,000
504,000
3.1%
20%
112,000
672,000
2.6%
60,000
80,000
50,000
45,000
26,000
60,000
100,000
60,000
25,000
27,000
120,000
125,000
75,000
50,000
28,000
200,000
150,000
100,000
75,000
29,000
300,000
125,000
261,000
332,000
478,000
654,000
15%
0
125,000
12.5%
15%
39,150
300,150
5.7%
17%
56,440
388,440
4.0%
20%
95,600
573,600
3.5%
20%
130,800
784,800
3.0%
40,000
25,000
Cost of Revenue
Manufacturing Personnel
Operations Manager
Quality Assurance
Materials and Logistics
Engineering
Other personnel
(other...)
Total Salary
Benefits
Percent (%)
Total benefit costs
Total Salary Costs
Hourly Personnel
Number of employees
Average wages per employee
Total wages
Benefits
Percent (%)
Total benefit costs
Total Wage Costs
Service Personnel
Number of employees
Salary per employee
Total salaries
Benefits
Percent (%)
Total benefit costs
Total Salary Costs
06/17/2011
16:34:51
100,000
50,000
40,000
50,000
125,000
100,000
150,000
75,000
150,000
150,000
150,000
200,000
125,000
200,000
175,000
300,000
300,000
150,000
250,000
200,000
350,000
450,000
300,000
300,000
240,000
600,000
825,000
1,175,000
1,600,000
15%
36,000
276,000
15%
90,000
690,000
20%
165,000
990,000
20%
235,000
1,410,000
25%
400,000
2,000,000
3
20,000
60,000
9
22,000
198,000
20
23,000
460,000
30
24,000
720,000
40
24,000
960,000
15%
9,000
69,000
15%
29,700
227,700
20%
92,000
552,000
20%
144,000
864,000
25%
240,000
1,200,000
3
35,000
105,000
5
37,000
185,000
10
40,000
400,000
25
50,000
1,250,000
40
55,000
2,200,000
15%
15,750
120,750
15%
27,750
212,750
20%
80,000
480,000
20%
250,000
1,500,000
25%
550,000
2,750,000
Total COR's Compensation

% of Revenue
465,750
46.6%
1,130,450
21.5%
2,022,000
20.7%
3,774,000
23.2%
5,950,000
22.9%
Total Salary & Wages

Total Benefits
Total Compensation
% of Revenue
545,000
63,000
728,750
72.9%
1,464,000
219,600
1,896,350
36.1%
2,252,000
421,390
3,153,390
32.3%
3,313,000
662,600
5,475,600
33.7%
4,454,000
1,018,800
8,222,800
31.6%
06/17/2011
16:34:51
XYZ Company
Extraordinary Income & Expense
Years 1 to 5
($)
Year 1
Income
(Item)
(Item)
(Item)
Total
Start-up expenses
Legal
Relocation
(Item)
Total
Total Extraordinary Income/(Expense)
Year 2
Year 3
Year 4
Year 5
0
0
0
0
0
0
0
0
0
25,000
20,000
45,000
(45,000)
Extraordinary Income and Expense by Months & Quarters

($)
Year 1
Year 2
Year 3
Year 4
Year 5
Month 1
Month 2
Month 3
Total 1st Quarter
Month 4
Month 5
Month 6
Total 2nd Quarter
Month 7
Month 8
Month 9
Total 3rd Quarter
Month 10
Month 11
Month 12
Total 4th Quarter
Total for year
(25,000)
(20,000)
(45,000)
0
0
0
0
0
0
0
0
0
(45,000)
06/17/2011
16:34:51
XYZ Company
Taxes
Years 1 to 5
($)
Net Revenues
Income Tax (Rate Federal & State)
Net Earnings Before Taxes
Cumulative
Taxes
Percent of Revenues
Year 1
Year 2
Year 3
Year 4
Year 5
1,000,000
5,250,000
9,750,000
16,250,000
26,000,000
0.40
0.40
0.40
0.40
0.40
(712,131)
(712,131)
(218,064)
(930,195)
704,515
(225,681)
1,520,781
1,295,100
3,753,390
5,048,491
0
0.0%
0
0.0%
0
0.0%
(518,040)
-3.2%
(1,501,356)
-5.8%
06/17/2011
16:34:51
XYZ Company
Property and Equipment
Years 1 to 5
($)
Year 0
Net Revenues
Purchased
Assets
Capital Expenditures
Computers, Software & Office Equipment
Plant & Equipment
Other
Total Capital Expenditures
% of Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
1,000,000
5,250,000
9,750,000
16,250,000
26,000,000
20,000
250,000
10,000
280,000
28.0%
100,000
350,000
50,000
500,000
9.5%
200,000
250,000
100,000
550,000
5.6%
250,000
300,000
100,000
650,000
4.0%
350,000
300,000
100,000
750,000
2.9%
3
0
0
33,333
66,667
83,333
3
0
0
0
66,667
83,333
116,667
266,667
Depreciation Computers, Sofware & Office Equipment (allocated to General & Administrative Expenses)
Depreciation Rate: Years
1
3
3
3
Year 0
0
0
0
Year 1
6,667
6,667
6,667
Year 2
33,333
33,333
Year 3
66,667
Year 4
Year 5
Total Depreciation
6,667
40,000
106,667
Depreciation on Plant and Equipment (allocated to Cost of Revenue)
1
7
Year 0
0
Year 1
35,714
Year 2
Year 3
Year 4
Year 5
Total Depreciation
35,714
Depreciation Other (allocated to Cost of Revenue)
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Total Depreciation
Total Depreciation
% of Revenue
Property & Equipment
Gross Asset Value
Accumulated Depreciation
Net Property and Equipment
% of Revenue
0
0
7
0
35,714
50,000
7
0
35,714
50,000
35,714
7
0
35,714
50,000
35,714
42,857
85,714
121,429
164,286
10
0
1,000
10
0
1,000
5,000
10
0
1,000
5,000
10,000
10
0
1,000
5,000
10,000
10,000
1,000
6,000
16,000
26,000
10
0
1,000
5,000
10,000
10,000
10,000
36,000
43,381
4.3%
131,714
2.5%
244,095
2.5%
373,619
2.3%
509,810
2.0%
280,000
43,381
236,619
23.7%
780,000
175,095
604,905
11.5%
1,330,000
419,190
910,810
9.3%
1,980,000
792,810
1,187,190
7.3%
2,730,000
1,302,619
1,427,381
5.5%
Year 4
Year 5
Capital Expenditures by Months & Quarters

($)
Year 1
Year 2
Year 3
Month 1
Month 2
Month 3
Total 1st Quarter
Month 4
Month 5
Month 6
Total 2nd Quarter
Month 7
Month 8
Month 9
Total 3rd Quarter
Month 10
Month 11
Month 12
Total 4th Quarter
Total for year
183,333
50,000
100,000
50,000
200,000
40,000
7
0
35,714
50,000
35,714
42,857
42,857
207,143
100,000
100,000
200,000
100,000
200,000
200,000
100,000
100,000
200,000
200,000
200,000
40,000
100,000
100,000
100,000
100,000
200,000
0
280,000
100,000
100,000
500,000
150,000
550,000
150,000
650,000
150,000
750,000
40,000
40,000
06/17/2011
16:34:51
XYZ Company
Working Capital
Years 1 to 5
($)
Year 1
1,000,000
Year 2
5,250,000
Year 3
9,750,000
Accounts Receivable
% of Revenue
Days Outstanding
Accounts Receivable
(Increase)/Decrease from Prev. Period
8.3%
30
149,400
(149,400)
8.3%
30
627,480
(478,080)
8.3%
30
913,000
(285,520)
8.3%
30
1,577,000
(664,000)
8.3%
30
2,656,000
(1,079,000)
Inventory
% of Revenue
Inventory Turns
Inventory Days
Inventory
8.3%
12
30
149,400
(149,400)
8.3%
12
30
627,480
(478,080)
6.7%
15
24
737,000
(109,520)
6.7%
15
24
1,273,000
(536,000)
6.7%
15
24
2,144,000
(871,000)
Other Current Assets

% of Revenue
Days
Other CA Value
1.0%
4
18,000
(18,000)
1.0%
4
75,600
(57,600)
1.0%
4
110,000
(34,400)
1.0%
4
190,000
(80,000)
1.0%
4
320,000
(130,000)
Accounts Payable & Accrued Expenses

% of Revenue
Days
AP & Accrued Value
Increase/(Decrease) from Prev. Period
8.7%
31
155,720
155,720
8.7%
31
657,720
502,000
8.7%
31
957,000
299,280
8.7%
31
1,653,000
696,000
8.7%
31
2,784,000
1,131,000
1.0%
4
18,000
18,000
1.0%
4
75,600
57,600
1.0%
4
110,000
34,400
1.0%
4
190,000
80,000
1.0%
4
320,000
130,000
Year 1
($)
Year 2
Year 3
Year 4
Year 5
0
0
262,500
262,500
0
0
0
0
0
0
0
0
50,000
80,000
100,000
230,000
100,000
120,000
150,000
370,000
120,000
130,000
150,000
400,000
1,000,000
367,500
892,500
315,000
367,500
367,500
1,050,000
420,000
525,000
525,000
1,470,000
577,500
630,000
630,000
1,837,500
5,250,000
0
2,000,000
0
0
0
2,500,000
0
0
0
2,500,000
0
0
0
2,750,000
9,750,000
0
3,000,000
0
0
0
4,000,000
0
0
0
4,500,000
0
0
0
4,750,000
16,250,000
0
5,000,000
0
0
0
6,000,000
0
0
0
7,000,000
0
0
0
8,000,000
26,000,000
Year 1
($)
Year 2
Year 3
Year 4
Year 5
49,800
79,680
99,600
99,600
261,450
261,450
366,030
313,740
366,030
366,030
418,320
Net Revenues
Other Current Liabilites

% of Revenue
Days
Other Current Liabilities
Increase/(Decrease) from Prev. Period
Year 4
Year 5
16,250,000
26,000,000
Revenues by Months & Quarters
Month 1
Month 2
Month 3
Total 1st Quarter
Month 4
Month 5
Month 6
Total 2nd Quarter
Month 7
Month 8
Month 9
Total 3rd Quarter
Month 10
Month 11
Month 12
Total 4th Quarter
Total for year
Accounts Receivable by Months & Quarters
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
664,000
996,000
1,660,000
830,000
1,328,000
1,992,000
Month 8
Month 9
Month 10
Month 11
Month 12
119,520
149,400
119,520
129,480
149,400
522,900
522,900
575,190
627,480
627,480
830,000
1,494,000
06/17/2011
16:34:51
2,324,000
913,000
1,577,000
2,656,000
Inventory by Months & Quarters

Year 1
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
49,800
79,680
99,600
99,600
119,520
149,400
119,520
129,480
149,400
($)
Year 2
261,450
261,450
366,030
313,740
366,030
366,030
418,320
522,900
522,900
575,190
627,480
627,480
Year 3
Year 4
Year 5
536,000
804,000
1,340,000
670,000
1,072,000
1,608,000
670,000
1,206,000
1,876,000
737,000
1,273,000
2,144,000
Other Current Assets by Months & Quarters

Year 1
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
6,000
9,600
12,000
12,000
14,400
18,000
14,400
15,600
18,000
($)
Year 2
31,500
31,500
44,100
37,800
44,100
44,100
50,400
63,000
63,000
69,300
75,600
75,600
Year 3
Year 4
Year 5
80,000
120,000
200,000
100,000
160,000
240,000
100,000
180,000
280,000
110,000
190,000
320,000
Accounts Payble & Accrued Expenses by Months & Quarters

Year 1
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
0
31
50,000
82,200
103,520
104,400
124,400
155,280
126,600
135,280
155,720
($)
Year 2
6,600
0
31
331,170
381,360
383,670
436,170
543,480
548,100
600,600
655,410
657,720
Year 3
Year 4
Year 5
696,000
1,044,000
1,740,000
870,000
1,392,000
2,088,000
870,000
1,566,000
2,436,000
957,000
1,653,000
2,784,000
Other Current Liabilities by Months & Quarters

Year 1
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
6,000
9,600
12,000
12,000
14,400
18,000
14,400
15,600
18,000
($)
Year 2
31,500
31,500
44,100
37,800
44,100
44,100
50,400
63,000
63,000
69,300
75,600
75,600
Year 3
Year 4
Year 5
80,000
120,000
200,000
100,000
160,000
240,000
100,000
180,000
280,000
110,000
190,000
320,000
06/17/2011
16:34:52
XYZ Company
Funding Projections
Years 1 to 5
($)
Begin
Year 1
Year 2
Year 3
Year 4
Year 5
500,000
500,000
0
500,000
0
500,000
0
500,000
0
500,000
0
1,000,000
1,000,000
1,000,000
1,000,000
0
1,500,000
1,000,000
500,000
1,500,000
500,000
2,000,000
1,000,000
500,000
1,500,000
0
2,000,000
1,000,000
500,000
1,500,000
0
2,000,000
1,000,000
500,000
1,500,000
0
2,000,000
100,000
100,000
(100,000)
100,000
400,000
500,000
100,000
300,000
400,000
100,000
200,000
300,000
100,000
100,000
200,000
0
0
0
100,000
400,000
500,000
0
(100,000)
(100,000)
0
(100,000)
(100,000)
0
(100,000)
(100,000)
1,500,000
2,500,000
2,400,000
2,400,000
2,200,000
Interest
Interest Rate
Short Term Debt
Long Term Debt
9.0%
12.0%
9.0%
12.0%
9.0%
12.0%
9.0%
12.0%
9.0%
12.0%
Interest Expense
Short Term Debt
Long Term Debt
Total Interest
0
0
0
0
60,000
60,000
0
48,000
48,000
9,000
36,000
45,000
0
24,000
24,000
4.0%
0
4.0%
0
4.0%
0
4.0%
0
4.0%
10,000
(712,131)
(218,064)
704,515
1,002,741
(712,131)
0
(712,131)
(218,064)
(712,131)
(930,195)
704,515
(930,195)
(225,681)
1,002,741
(225,681)
777,060
2,252,034
50,000
2,202,034
777,060
2,979,094
Beginning Cash
Equity
Common
Increase / (Decrease) Previous Period
Preferred
A Round
B Round
Total Preferred
Total Equity
1,500,000
1,500,000
Debt
Short Term Debt
Long Term Debt
Current Portion
Long Term Portion
Total Long Term Debt
Current Portion
Long Term Protion
Total Long Term Debt
Total Equity & Debt
Interest Income
Interest Rate
Interest Income
Retained Earnings
Net Income
Dividends
Increase / (Decrease) Retained Earnings
Beginning Retained Earnings
Ending Retained Earnings
1,500,000
06/17/2011
16:34:52
XYZ Company
Income Statement
Years 1 to 5
($)
Year 1
Year 2
Year 3
Year 4
Year 5
NET REVENUES
1,000,000
5,250,000
9,750,000
16,250,000
26,000,000
COST OF REVENUE
% of Revenues
1,117,464
111.7%
3,532,164
67.3%
5,699,429
58.5%
9,339,286
57.5%
14,033,143
54.0%
GROSS PROFIT
% of Revenues
(117,464)
-11.7%
1,717,836
32.7%
4,050,571
41.5%
6,910,714
42.5%
11,966,857
46.0%
229,000
149,000
171,667
549,667
55%
997,750
413,000
465,150
1,875,900
36%
1,805,400
702,550
790,107
3,298,057
34%
2,911,500
1,241,500
1,191,933
5,344,933
33%
4,676,000
1,752,000
1,771,467
8,199,467
32%
(667,131)
(158,064)
752,515
1,565,781
3,767,390
EXTRAORDINARY INCOME / (EXPENSE)
(45,000)
EARNINGS BEFORE INTEREST & TAXES
(712,131)
(158,064)
752,515
1,565,781
3,767,390
INTEREST INCOME / (EXPENSE)
(60,000)
(48,000)
(45,000)
(14,000)
NET EARNINGS BEFORE TAXES
(712,131)
(218,064)
704,515
1,520,781
3,753,390
(518,040)
(1,501,356)
(712,131)
-71.2%
(218,064)
-4.2%
704,515
7.2%
1,002,741
6.2%
2,252,034
8.7%
OPERATING EXPENSES
Sales & Marketing
General and Administration
% of Revenues
EARNINGS FROM OPERATIONS
TAXES
NET EARNINGS
% of Revenues
06/17/2011
16:34:52
XYZ Company
Balance Sheet
Years 1 to 5
($)
ASSETS
CURRENT ASSETS
Cash
Accounts Receivable
Inventories
Other Current Assets
Total Current Assets
PROPERTY & EQUIPMENT
TOTAL ASSETS
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short Term Debt
Accounts Payable & Accrued Expen
Other Current Liab
Current portion of long term debt
Total Current Liabilities
LONG TERM DEBT (less current portion)
STOCKHOLDERS' EQUITY
CommonStock
Preferred Stock
Retained Earnings
Total Equity
TOTAL LIABILITIES & EQUITY
Begin
Year 1
Year 2
Year 3
Year 4
1,500,000
1,500,000
0
408,170
149,400
149,400
18,000
724,970
236,619
367,660
627,480
627,480
75,600
1,698,220
604,905
570,510
913,000
737,000
110,000
2,330,510
910,810
792,870
1,577,000
1,273,000
190,000
3,832,870
1,187,190
1,500,000
961,589
2,303,125
3,241,319
5,020,060
0
0
0
155,720
18,000
0
173,720
0
657,720
75,600
100,000
833,320
0
957,000
110,000
100,000
1,167,000
100,000
1,653,000
190,000
100,000
2,043,000
400,000
300,000
200,000
500,000
1,000,000
1,500,000
500,000
1,000,000
(712,131)
787,869
500,000
1,500,000
(930,195)
1,069,805
500,000
1,500,000
(225,681)
1,774,319
500,000
1,500,000
777,060
2,777,060
1,500,000
961,589
2,303,125
3,241,319
5,020,060
06/17/2011
16:34:52
Year 5
1,735,714
2,656,000
2,144,000
320,000
6,855,714
1,427,381
8,283,094
0
2,784,000
320,000
100,000
3,204,000
100,000
500,000
1,500,000
2,979,094
4,979,094
8,283,094
06/17/2011
16:34:52
XYZ Company
Cash Flow Statememt
Years 1 to 5
($)
OPERATING ACTIVITIES
Net Earnings
Depreciation
Working Capital Changes
(Increase)/Decrease Accounts Receivable
(Increase)/Decrease Inventories
(Increase)/Decrease Other Current Assets
Increase/(Decrease) Accts Pay & Accrd Expenses
Increase/(Decrease) Other Current Liab
Net Cash Provided/(Used) by Operating Activities
INVESTING ACTIVITIES
Other
Net Cash Used in Investing Activities
FINANCING ACTIVITIES
Increase/(Decrease) Short Term Debt
Increase/(Decrease) Curr. Portion LTD
Increase/(Decrease) Long Term Debt
Increase/(Decrease) Common Stock
Increase/(Decrease) Preferred Stock
Dividends Declared
Net Cash Provided / (Used) by Financing
INCREASE/(DECREASE) IN CASH
CASH AT BEGINNING OF YEAR
CASH AT END OF YEAR
1,500,000
Year 1
Year 2
Year 3
Year 4
(712,131)
43,381
(218,064)
131,714
704,515
244,095
1,002,741
373,619
(149,400)
(149,400)
(18,000)
155,720
18,000
(811,830)
(478,080)
(478,080)
(57,600)
502,000
57,600
(540,510)
(285,520)
(109,520)
(34,400)
299,280
34,400
852,850
(664,000)
(536,000)
(80,000)
696,000
80,000
872,360
(280,000)
(500,000)
(550,000)
(650,000)
(280,000)
(500,000)
(550,000)
(650,000)
0
0
0
0
0
0
0
0
100,000
400,000
0
500,000
0
1,000,000
0
0
(100,000)
0
0
0
(100,000)
100,000
0
(100,000)
0
0
0
0
(1,091,830)
(40,510)
202,850
222,360
1,500,000
408,170
408,170
367,660
367,660
570,510
570,510
792,870
06/17/2011
16:34:52
Year 5
2,252,034
509,810
(1,079,000)
(871,000)
(130,000)
1,131,000
130,000
1,942,844
(750,000)
(750,000)
(100,000)
0
(100,000)
0
0
(50,000)
(250,000)
942,844
792,870
1,735,714
06/17/2011
16:34:52
XYZ Company
Break-Even Analysis
Years 1 to 5
($)
Year 1
Year 2
Year 3
Year 4
Year 5
Revenue
1,000,000
5,250,000
9,750,000
16,250,000
26,000,000
Cost of Revenue
Variable
Fixed
Total
729,750
387,714
1,117,464
2,450,450
1,081,714
3,532,164
4,122,000
1,577,429
5,699,429
7,139,000
2,200,286
9,339,286
10,990,000
3,043,143
14,033,143
160,000
389,667
549,667
840,000
1,035,900
1,875,900
1,560,000
1,738,057
3,298,057
2,600,000
2,744,933
5,344,933
4,160,000
4,039,467
8,199,467
889,750
777,381
1,667,131
3,290,450
2,117,614
5,408,064
5,682,000
3,315,485
8,997,485
9,739,000
4,945,219
14,684,219
15,150,000
7,082,610
22,232,610
0.89
0.63
0.58
0.60
0.58
7,051,076
5,673,484
7,946,406
12,342,161
16,972,152
Operating Expenses
Variable
Fixed
Total
Total Costs & Expenses
Variable
Fixed
Total
Variable Costs/Revenue Ratio
Break-Even Point Revenues
06/17/2011
16:34:52
XYZ Company
Income Statement
Year 1 by Months
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Year 1
Annual
Projection
Total
12 Months
NET REVENUES
50,000
80,000
100,000
100,000
120,000
150,000
120,000
130,000
150,000
1,000,000
1,000,000
COST OF REVENUE
55,873
89,397
111,746
111,746
134,096
167,620
134,096
145,270
167,620
1,117,464
1,117,464
GROSS PROFIT
(5,873)
(9,397)
(11,746)
(11,746)
(14,096)
(17,620)
(14,096)
(15,270)
(17,620)
(117,464)
(117,464)
OPERATING EXPENSES
Sales & Marketing
0
0
0
0
0
0
0
0
0
0
0
0
11,450
7,450
8,583
27,483
18,320
11,920
13,733
43,973
22,900
14,900
17,167
54,967
22,900
14,900
17,167
54,967
27,480
17,880
20,600
65,960
34,350
22,350
25,750
82,450
27,480
17,880
20,600
65,960
29,770
19,370
22,317
71,457
34,350
22,350
25,750
82,450
229,000
149,000
171,667
549,667
229,000
149,000
171,667
549,667
(667,131)
(33,357)
(53,370)
(66,713)
(66,713)
(80,056)
(100,070)
(80,056)
(86,727)
(100,070)
(667,131)
(25,000)
(20,000)
(45,000)
(45,000)
(25,000)
(20,000)
(33,357)
(53,370)
(66,713)
(66,713)
(80,056)
(100,070)
(80,056)
(86,727)
(100,070)
(712,131)
(712,131)
(25,000)
(20,000)
(33,357)
(53,370)
(66,713)
(66,713)
(80,056)
(100,070)
(80,056)
(86,727)
(100,070)
(712,131)
(712,131)
(25,000)
(20,000)
(33,357)
(53,370)
(66,713)
(66,713)
(80,056)
(100,070)
(80,056)
(86,727)
(100,070)
(712,131)
(712,131)
TAXES
NET EARNINGS
XYZ Company
Income Statement
Year 2 by Months
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Year 2
Total
Annual
12 Months Projection
NET REVENUES
262,500
262,500
367,500
315,000
367,500
367,500
420,000
525,000
525,000
577,500
630,000
630,000
5,250,000
5,250,000
COST OF REVENUE
176,608
176,608
247,252
211,930
247,252
247,252
282,573
353,216
353,216
388,538
423,860
423,860
3,532,164
3,532,164
GROSS PROFIT
85,892
85,892
120,249
103,070
120,249
120,249
137,427
171,784
171,784
188,962
206,140
206,140
1,717,836
1,717,836
OPERATING EXPENSES
Sales & Marketing
49,888
20,650
23,258
93,795
49,888
20,650
23,258
93,795
69,843
28,910
32,561
131,313
59,865
24,780
27,909
112,554
69,843
28,910
32,561
131,313
69,843
28,910
32,561
131,313
79,820
33,040
37,212
150,072
99,775
41,300
46,515
187,590
99,775
41,300
46,515
187,590
109,753
45,430
51,167
206,349
119,730
49,560
55,818
225,108
119,730
49,560
55,818
225,108
997,750
413,000
465,150
1,875,900
997,750
413,000
465,150
1,875,900
(7,903)
(7,903)
(11,065)
(9,484)
(11,065)
(11,065)
(12,645)
(15,806)
(15,806)
(17,387)
(18,968)
(18,968)
(158,064)
(158,064)
(7,903)
(7,903)
(11,065)
(9,484)
(11,065)
(11,065)
(12,645)
(15,806)
(15,806)
(17,387)
(18,968)
(18,968)
(158,064)
(158,064)

(5,000)
(5,000)
(5,000)
(5,000)
(5,000)
(5,000)
(5,000)
(5,000)
(5,000)
(5,000)
(5,000)
(5,000)
(60,000)
(60,000)
(12,903)
(12,903)
(16,065)
(14,484)
(16,065)
(16,065)
(17,645)
(20,806)
(20,806)
(22,387)
(23,968)
(23,968)
(218,064)
(218,064)
TAXES
NET EARNINGS
(12,903)
(12,903)
(16,065)
(14,484)
(16,065)
(16,065)
(17,645)
(20,806)
(20,806)
(22,387)
(23,968)
(23,968)
(218,064)
(218,064)
06/17/2011
16:34:52
XYZ Company
Income Statement
Years 3, 4 & 5 by Quarters
Year 3
1st Qtr
2nd Qrtr
Year 4
3rd Qrtr
4th Qrtr
Total
1st Qtr
2nd Qtr
Year 3
Annual
Projection
Year 5
3rd Qtr
4th Qtr
Total
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year 4
Annual
Projection
Year 5
Annual
Projection
Total
NET REVENUES
2,000,000
2,500,000
2,500,000
2,750,000
9,750,000
3,000,000
4,000,000
4,500,000
4,750,000
16,250,000
5,000,000
6,000,000
7,000,000
8,000,000
26,000,000
COST OF REVENUE
1,169,114
1,461,392
1,461,392
1,607,531
5,699,429
1,724,176
2,298,901
2,586,264
2,729,945
9,339,286
2,698,681
3,238,418
3,778,154
4,317,890
14,033,143
9,750,000
0
5,699,429
16,250,000
0
9,339,286
26,000,000
0
14,033,143
GROSS PROFIT
830,886
1,038,608
1,038,608
1,142,469
4,050,571
1,275,824
1,701,099
1,913,736
2,020,055
6,910,714
2,301,319
2,761,582
3,221,846
3,682,110
11,966,857
4,050,571
6,910,714
11,966,857
OPERATING EXPENSES
Sales & Marketing
370,338
144,113
162,073
676,524
462,923
180,141
202,591
845,656
462,923
180,141
202,591
845,656
509,215
198,155
222,851
930,221
1,805,400
702,550
790,107
3,298,057
537,508
229,200
220,049
986,757
716,677
305,600
293,399
1,315,676
806,262
343,800
330,074
1,480,135
851,054
362,900
348,411
1,562,365
2,911,500
1,241,500
1,191,933
5,344,933
899,231
336,923
340,667
1,576,821
1,079,077
404,308
408,800
1,892,185
1,258,923
471,692
476,933
2,207,549
1,438,769
539,077
545,067
2,522,913
4,676,000
1,752,000
1,771,467
8,199,467
1,805,400
702,550
790,107
3,298,057
2,911,500
1,241,500
1,191,933
5,344,933
4,676,000
1,752,000
1,771,467
8,199,467
154,362
192,953
192,953
212,248
752,515
289,067
385,423
433,601
457,690
1,565,781
724,498
869,398
1,014,297
1,159,197
3,767,390
752,515
1,565,781
3,767,390
154,362
192,953
192,953
212,248
752,515
289,067
385,423
433,601
457,690
1,565,781
724,498
869,398
1,014,297
1,159,197
3,767,390
752,515
1,565,781
3,767,390

(12,000)
(12,000)
(12,000)
(12,000)
(48,000)
(11,250)
(11,250)
(11,250)
(11,250)
(45,000)
(3,500)
(3,500)
(3,500)
(3,500)
(14,000)
142,362
180,953
180,953
200,248
704,515
277,817
374,173
422,351
446,440
1,520,781
720,998
865,898
1,010,797
1,155,697
3,753,390
TAXES
NET EARNINGS
(48,000)
704,515
(94,636)
(127,459)
(143,870)
(152,076)
(518,040)
(288,399)
(346,359)
(404,319)
(462,279)
(1,501,356)
142,362
180,953
180,953
200,248
704,515
183,181
246,714
278,481
294,364
1,002,741
432,599
519,539
606,478
693,418
2,252,034
704,515
(45,000)
1,520,781
(518,040)
1,002,741
(14,000)
3,753,390
(1,501,356)
2,252,034
06/17/2011
16:34:52
XYZ Company
Cash Flow Statement
Year 1 by Months
Month 1
Net Earnings
Depreciation
Other
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Estimated
Year 1
Month 12
Year 1
Annual
Projection
(25,000)
3,615
(20,000)
3,615
0
3,615
(33,357)
3,615
(53,370)
3,615
(66,713)
3,615
(66,713)
3,615
(80,056)
3,615
(100,070)
3,615
(80,056)
3,615
(86,727)
3,615
(100,070)
3,615
(712,131)
43,381
(712,131)
43,381
0
0
0
0
0
(21,385)
0
0
0
0
0
(16,385)
0
0
0
31
0
3,646
(49,800)
(49,800)
(6,000)
49,969
6,000
(79,373)
(29,880)
(29,880)
(3,600)
32,200
3,600
(77,315)
(19,920)
(19,920)
(2,400)
21,320
2,400
(81,618)
0
0
0
880
0
(62,218)
(19,920)
(19,920)
(2,400)
20,000
2,400
(96,281)
(29,880)
(29,880)
(3,600)
30,880
3,600
(125,335)
29,880
29,880
3,600
(28,680)
(3,600)
(45,361)
(9,960)
(9,960)
(1,200)
8,680
1,200
(94,352)
(19,920)
(19,920)
(2,400)
20,440
2,400
(115,855)
(149,400)
(149,400)
(18,000)
155,720
18,000
(811,830)
(149,400)
(149,400)
(18,000)
155,720
18,000
(811,830)
(50,000)
(100,000)
(50,000)
(40,000)
(40,000)
(50,000)
(100,000)
(50,000)
(40,000)
(40,000)
(280,000)
0
(280,000)
(280,000)
0
(280,000)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(1,091,830)
(1,091,830)
Dividends Declared
0
0
0
0
0
0
0
0
0
0
0
0
0
(71,385)
(116,385)
(46,354)
(119,373)
(77,315)
(81,618)
(102,218)
(96,281)
(125,335)
(45,361)
(94,352)
(115,855)
CASH AT BEGINNING OF PERIOD

CASH AT END OF PERIOD
1,500,000
1,428,615
1,428,615
1,312,230
1,312,230
1,265,877
1,265,877
1,146,504
1,146,504
1,069,188
1,069,188
987,570
987,570
885,352
885,352
789,072
789,072
663,737
663,737
618,376
618,376
524,024
524,024
408,170
1,500,000
408,170
XYZ Company
Cash Flow Statement
Year 2 by Months
Month 1
Net Earnings
Depreciation
Other
Dividends Declared
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Estimated
Year 2
Month 12
(12,903)
10,976
(12,903)
10,976
(16,065)
10,976
(14,484)
10,976
(16,065)
10,976
(16,065)
10,976
(17,645)
10,976
(20,806)
10,976
(20,806)
10,976
(22,387)
10,976
(23,968)
10,976
(23,968)
10,976
(218,064)
131,714
(112,050)
(112,050)
(13,500)
(149,120)
13,500
(375,147)
0
0
0
(6,600)
0
(8,527)
(104,580)
(104,580)
(12,600)
31
12,600
(214,217)
52,290
52,290
6,300
331,139
(6,300)
432,211
(52,290)
(52,290)
(6,300)
50,190
6,300
(59,478)
0
0
0
2,310
0
(2,778)
(52,290)
(52,290)
(6,300)
52,500
6,300
(58,749)
(104,580)
(104,580)
(12,600)
107,310
12,600
(111,680)
0
0
0
4,620
0
(5,210)
(52,290)
(52,290)
(6,300)
52,500
6,300
(63,491)
(52,290)
(52,290)
(6,300)
54,810
6,300
(62,762)
0
0
0
2,310
0
(10,682)
(478,080)
(478,080)
(57,600)
502,000
57,600
(540,510)
(100,000)
(100,000)
(100,000)
(100,000)
(100,000)
(100,000)
(100,000)
(100,000)
(100,000)
(100,000)
(500,000)
0
(500,000)
0
100,000
400,000
0
500,000
0
1,000,000
(40,510)
0
100,000
400,000
0
500,000
1,000,000
0
0
0
0
0
0
0
524,853
(108,527)
(214,217)
432,211
(59,478)
(102,778)
(58,749)
(111,680)
(105,210)
(63,491)
(62,762)
(110,682)

408,170
933,023
933,023
824,496
824,496
610,279
610,279
1,042,490
1,042,490
983,012
983,012
880,233
880,233
821,484
821,484
709,804
709,804
604,594
604,594
541,103
541,103
478,341
478,341
367,660
Year 2
Annual
Projection
(218,064)
131,714
0
(478,080)
(478,080)
(57,600)
502,000
57,600
(540,510)
0
0
(500,000)
0
(500,000)
0
0
0
100,000
400,000
0
500,000
0
1,000,000
0
(40,510)
408,170
367,660
XYZ Company
Cash Flow Statement
Years 3, 4 & 5 by Quarters
Year 3
1st Qtr
Net Earnings
Depreciation
Other
Dividends Declared
2nd Qrtr
Year 4
3rd Qrtr
4th Qrtr
Total
1st Qtr
2nd Qtr
Year 5
3rd Qtr
4th Qtr
142,362
61,024
180,953
61,024
180,953
61,024
200,248
61,024
704,515
244,095
183,181
93,405
246,714
93,405
278,481
93,405
294,364
93,405
(36,520)
91,480
(4,400)
38,280
4,400
296,626
(166,000)
(134,000)
(20,000)
174,000
20,000
115,976
0
0
0
0
0
241,976
(83,000)
(67,000)
(10,000)
87,000
10,000
198,272
(285,520)
(109,520)
(34,400)
299,280
34,400
852,850
(83,000)
(67,000)
(10,000)
87,000
10,000
213,586
(332,000)
(268,000)
(40,000)
348,000
40,000
88,119
(166,000)
(134,000)
(20,000)
174,000
20,000
245,886
(83,000)
(67,000)
(10,000)
87,000
10,000
324,769
(100,000)
(200,000)
(100,000)
(150,000)
(200,000)
(100,000)
(150,000)
(200,000)
(100,000)
(150,000)
(550,000)
0
(550,000)
(200,000)
(100,000)
(200,000)
(200,000)
(100,000)
0
0
(100,000)
0
0
0
(100,000)
100,000
0
0
0
0
100,000
202,850
113,586
(111,881)
145,886
Err:508
570,510
684,096
684,096
572,215
572,215
718,101
718,101
Err:508
0
0
0
0
0
0
0
0
(100,000)
0
0
0
(100,000)
196,626
(84,024)
141,976
(51,728)

367,660
564,286
564,286
480,262
480,262
622,238
622,238
570,510
Year 3
Annual
Projection
Total
1,002,741
373,619
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year 4
Annual
Projection
06/17/2011
16:34:52
Year 5
Annual
Projection
Total
432,599
127,452
519,539
127,452
606,478
127,452
693,418
127,452
2,252,034
509,810
704,515
244,095
(664,000)
(536,000)
(80,000)
696,000
80,000
872,360
(83,000)
(67,000)
(10,000)
87,000
10,000
497,051
(332,000)
(268,000)
(40,000)
348,000
40,000
394,991
(332,000)
(268,000)
(40,000)
348,000
40,000
481,931
(332,000)
(268,000)
(40,000)
348,000
40,000
568,871
(1,079,000)
(871,000)
(130,000)
1,131,000
130,000
1,942,844
(285,520)
(109,520)
(34,400)
299,280
34,400
852,850
(664,000)
(536,000)
(80,000)
696,000
80,000
872,360
(1,079,000)
(871,000)
(130,000)
1,131,000
130,000
1,942,844
(650,000)
0
(650,000)
(200,000)
(200,000)
(200,000)
(150,000)
(750,000)
(150,000)
(200,000)
(200,000)
(200,000)
(150,000)
(750,000)
(550,000)
0
(550,000)
(650,000)
0
(650,000)
(750,000)
0
(750,000)
0
0
(100,000)
0
Err:508
0
0
Err:508
100,000
0
(100,000)
0
Err:508
0
Err:508
0
0
0
0
0
0
(100,000)
0
(100,000)
0
0
(50,000)
(250,000)
(100,000)
0
(100,000)
0
0
(50,000)
(250,000)
0
0
(100,000)
0
0
0
(100,000)
100,000
0
(100,000)
0
0
0
0
(100,000)
0
(100,000)
0
0
(50,000)
(250,000)
Err:508
297,051
194,991
281,931
168,871
942,844
202,850
222,360
942,844
367,660
570,510
570,510
792,870
792,870
1,735,714
Err:508
Err:508
Err:508
Err:508
Err:508
Err:508
Err:508
Err:508
1,002,741
373,619
2,252,034
509,810
06/17/2011
16:34:53
XYZ Company
Summary
Years 1 to 5
Year 1
Year 2
Year 3
Year 4
Year 5
1,000,000
(117,464)
(712,131)
(668,750)
(712,131)
(811,830)
280,000
0
0
408,170
(212,131)
0
5,250,000
1,717,836
(158,064)
(26,350)
(218,064)
(540,510)
500,000
(60,000)
0
367,660
(430,195)
500,000
9,750,000
4,050,571
752,515
996,610
704,515
852,850
550,000
(48,000)
0
570,510
274,319
400,000
16,250,000
6,910,714
1,565,781
1,939,400
1,002,741
872,360
650,000
(45,000)
0
792,870
1,277,060
300,000
26,000,000
11,966,857
3,767,390
4,277,200
2,252,034
1,942,844
750,000
(14,000)
50,000
1,735,714
3,479,094
200,000
425%
Nil
86%
Nil
67%
42.3%
60%
124.6%
4.2
0.0
2.0
0.3
2.0
0.2
1.9
0.1
2.1
0.0
Profitability
Gross Profit %
Operating Expenses %
Net Earnings %
-11.7%
55.0%
-71.2%
32.7%
35.7%
-4.2%
41.5%
33.8%
7.2%
42.5%
32.9%
6.2%
46.0%
31.5%
8.7%
Returns
Return on Assets
Return on Equity
Return on Capital (LT Debt + Equity)
-74.1%
-90.4%
-90.4%
-9.5%
-20.4%
-13.9%
21.7%
39.7%
32.4%
20.0%
36.1%
32.6%
27.2%
45.2%
43.5%
Summary Financials ($)

Revenue
Gross Profit
EBIT
EBITDA
Net Earnings
Net Cash from Operating Activities
Capital Expenditures
Interest Income/(Expense)
Dividends
Cash
Total Equity
Total Debt
Growth
Revenue Growth Rate - CAGR:
Net Earnings Growth Rate - CAGR:
Ratios
Current Ratio
Debt to Capital (LT Debt + Equity)
06/17/2011
16:34:53
XYZ Company
Notes
Valuation
Venture Capital Method
Years 1 to 5
Assumptions:
Investor required IRR
P/E ratio at IPO or acquisition
Initial investment
REF
Valuation Calculation
60%
15
$1,500,000
REF
A
B
C
Year
Calculation
Liquidity Event in Year 1

1
2
3
4
5
Net Income
Income Stmt
(712,131)
(218,064)
704,515
1,002,741
2,252,034
FV(A,C)
F
Market
Capitalization
B*E
($10,681,967)
($3,270,964)
$10,567,721
$15,041,112
$33,780,514
G
Required Future
Value (Investor)
FV(F,D)
$2,400,000
$3,840,000
$6,144,000
$9,830,400
$15,728,640
Year
1
2
3
4
5
G/F
H
Investor's
Share
C/G
100.0%
100.0%
58.1%
65.4%
46.6%
IRR(D,G)
I
Investor's
Return
F*H
$0
$0
$6,144,000
$9,830,400
$15,728,640
J
Investor's
ROI
I/C
0%
0%
410%
655%
1049%
K
Investor's
IRR
IRR(I,C,D)
#N/A
#N/A
60%
60%
60%
Negotiation Workspace
Investor's
Investor's
Share
Return
25.0%
$0
25.0%
$0
25.0%
$2,641,930
25.0%
$3,760,278
40.0%
$13,512,206
Investor's
ROI
0%
0%
176%
251%
901%
Investor's
IRR
#N/A
#N/A
21%
26%
55%
IRR Calculation Workspace

Start
Year 1
($1,500,000)
$0
($1,500,000)
$0
($1,500,000)
$0
($1,500,000)
$0
($1,500,000)
$0
($1,500,000)
($1,500,000)
($1,500,000)
($1,500,000)
($1,500,000)
$0
$0
$0
$0
$0
Year 2
Year 3
Year 4
Year 5
$0
$0
$0
$0
$6,144,000
$0
$0
$9,830,400
$0
$15,728,640
$0
$0
$0
$0
$2,641,930
$0
$0
$3,760,278
$0
$13,512,206
06/17/2011
16:34:53
XYZ Company
Valuation
Venture Capital Method
Years 1 to 5
Multiple Rounds
Assumptions
Month of IPO
Forecast annualized earnings at IPO
P/E ratio at IPO
60
$2,252,034
15
Investment Round
Month of Investment
Investor required IRR
Amount of Investment
Required Monthly IRR
Duration of Investment
First
0
60%
$1,500,000
5.00%
60
Calculations
Market Capitalization at IPO
$33,780,514
Ref
A
B
C
Second
24
50%
$500,000
4.17%
36
Calculation
Third
0.00%
60
C
D
E
F
G
D/12
A-C
B*C
Required FV for Investor at IPO

Individual Investor's Share
Individual Investor's ROI
Individual Investor's IRR
First
$15,728,640
46.6%
1049%
60%
Second
$1,687,500
5.0%
338%
50%
Third
$0
0.0%
#DIV/0!
#DIV/0!
I
J
K
L
E*(1+F)^G
I/H
I/E
(I/E)^(12/G)-1
Cumulative Investors' Share

Cumulative Founders' Share
46.6%
53.4%
51.6%
48.4%
51.6%
48.4%
M
N
sum(J)
1-M
First
15.0%
$5,067,077
338%
28%
Second
5.0%
$1,689,026
338%
50%
Third
3.0%
$1,013,415
#DIV/0!
#DIV/0!
Negotiations Round
Individual Investor's Share
FV for Investor at IPO
Individual Investor's ROI
Individual Investor's IRR

Financial Projections Model v6.8.3

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Financial Projections Model v6.8.3

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Financial Projections Model

For Business Plans

Copyright 2003 by the Regents of the University of Colorado

Created by Frank Moyes and Stephen Lawrence

Copyright 2001 by the Regents of the University of Colorado

Peer Company Comparisons

Revenues by Months & Quarters

All other costs % of Revenue

Cost of Revenues by Months & Quarters

Research & Development

General & Administration

All other expenses % of Revenue

Sales & Marketing by Months & Quarters

Total 4th Quarter

Research & Development by Months & Quarters

General & Administrative by Months & Quarters

Total COR's Compensation

Total Salary & Wages

Extraordinary Income and Expense by Months & Quarters

Capital Expenditures by Months & Quarters

Other Current Assets

Accounts Payable & Accrued Expenses

Other Current Liabilites

Revenues by Months & Quarters

Accounts Receivable by Months & Quarters

Inventory by Months & Quarters

Other Current Assets by Months & Quarters

Accounts Payble & Accrued Expenses by Months & Quarters

Other Current Liabilities by Months & Quarters

EXTRAORDINARY INCOME / (EXPENSE)

EARNINGS BEFORE INTEREST & TAXES

INTEREST INCOME / (EXPENSE)

NET EARNINGS BEFORE TAXES

EARNINGS FROM OPERATIONS

EXTRAORDINARY INCOME / (EXPENSE)

EARNINGS BEFORE INTEREST & TAXES

INTEREST INCOME / (EXPENSE)

NET EARNINGS BEFORE TAXES

EARNINGS FROM OPERATIONS

EXTRAORDINARY INCOME / (EXPENSE)

NET EARNINGS BEFORE TAXES

EARNINGS FROM OPERATIONS

EXTRAORDINARY INCOME / (EXPENSE)

NET EARNINGS BEFORE TAXES

CASH AT BEGINNING OF PERIOD

CASH AT BEGINNING OF PERIOD

CASH AT BEGINNING OF PERIOD

Summary Financials ($)

Liquidity Event in Year 1

IRR Calculation Workspace

Required FV for Investor at IPO

Cumulative Investors' Share

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