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5-YEAR FINANCIAL PLAN

Company Name

FORECASTED REVENUE

Product 1

250

125.00

Annual
revenue
per product
31,250.00

Product 2

430

100.00

43,000.00

Product 3

210

65.00

13,650.00

Product 4

540

25.00

13,500.00

Units sold
annually

Average
price per unit

TOTAL OF FORECASTED REVENUE

101,400.00

COST OF GOODS SOLD


Expected
gross margin

Annual cost of
goods sold

Product 1

30%

9,375.00

Product 2

25%

10,750.00

Product 3

25%

3,412.50

Product 4

30%

4,050.00

TOATL COST OF GOODS SOLD

27,587.50

ANNUAL MAINTENANCE, REPAIR AND OVERHAUL


Factor (%) on capital equipment

15%

ASSET DEPRECIATION
Number of Years

TAX
Annual Tax Rate

30%

INFLATION
Annual Inflation Rate

2%

PRODUCT PRICE INCREASE


Annual Price Increase

2%

FUNDING
Loan Amount
Annual interest rate
Term of loan (months)
Monthly rate
Payment

50,000.00
5.00%
60
0.41%
941.02

Total Amount Payable

56,461.20

PROFIT AND LOSS PROJECTION


Company Name

PROFIT AND LOSS ASSUMPTION


Year 1

Year 2

Year 3

Year 4

Year 5

Annual cumulative price (revenue) increase

0.00%

2.00%

4.00%

6.00%

8.00%

Annual cumulative inflation (expense) incre

0.00%

2.00%

4.00%

6.00%

8.00%

Year 1

Year 2

Year 3

Year 4

Year 5

Product 1

31,250.00

31,875.00

33,150.00

35,139.00

37,950.12

Product 2

43,000.00

43,860.00

45,614.40

48,351.26

52,219.37

Product 3

13,650.00

13,923.00

14,479.92

15,348.72

16,576.61

Product 4

13,500.00

13,770.00

14,320.80

15,180.05

16,394.45

101,400.00

103,428.00

107,565.12

114,019.03

123,140.55

Product 1

9,375.00

9,562.50

9,945.00

10,541.70

11,385.04

Product 2

10,750.00

10,965.00

11,403.60

12,087.82

13,054.84

Product 3

3,412.50

3,480.75

3,619.98

3,837.18

4,144.15

Product 4

4,050.00

4,131.00

4,296.24

4,554.01

4,918.34

27,587.50

28,139.25

29,264.82

31,020.71

33,502.37

73,812.50

75,288.75

78,300.30

82,998.32

89,638.18

INCOME
Revenue

Total revenue
Cost of Sales

Cost of goods sold

Gross Profit
Non-Operation Income
Rental

Interest income

Loss (gain) on sale of assets

Other income (specify)

Toatal Non-Operation Income

TOTAL INCOME

1,000.00
1,000.00

73,812.50

75,288.75

79,300.30

82,998.32

89,638.18

15,000.00

15,300.00

15,912.00

16,866.72

18,216.06

EXPENSES
Operating expenses
Sales and marketing

Depreciation

6,000.00

6,120.00

6,240.00

6,360.00

6,480.00

Insurance

7,500.00

7,650.00

7,956.00

8,433.36

9,108.03

21,000.00

21,420.00

22,276.80

23,613.41

25,502.48

Property taxes

2,500.00

2,550.00

2,652.00

2,811.12

3,036.01

Maintenance, repair, and overhaul

1,500.00

1,530.00

1,560.00

1,590.00

1,620.00

Utilities

5,000.00

5,100.00

5,304.00

5,622.24

6,072.02

300.00

306.00

318.24

337.33

364.32

Interest expense on long-term debt

2,243.50

1,791.06

1,316.00

817.19

293.44

Other

1,000.00

1,020.00

1,060.80

1,124.45

1,214.40

62,043.50

62,787.06

64,595.84

67,575.82

71,906.76

Payroll and Payroll Tax

Administrative fees

Total operating expenses


Non-Recurring Expenses
Unexpected Expenses

Other expenses

Total Non-Recurring Expenses

TOTAL EXPENSES

62,043.50

62,787.06

64,595.84

67,575.82

71,906.76

3,530.70

3,750.51

4,411.34

4,626.75

5,319.43

TAXES
Income Tax
Other Tax (specify)

TOTAL TAXES

3,530.70

3,750.51

4,411.34

4,626.75

5,319.43

NET PROFIT

8,238.30

8,751.18

10,293.12

10,795.75

12,412.00

BALANCE SHEET PROJECTION


Company Name

ASSETS
Current Assets
Cash and short-term investments
Accounts receivable
Total inventory

Initial balance

Year 1

Year 2

Year 3

Year 4

50,000.00

155,189.56

110,559.57

141,116.45

197,797.15

3,000.00

3,000.00

3,000.00

3,000.00

3,000.00

25,000.00

25,000.00

25,000.00

25,000.00

25,000.00

Prepaid expenses

Deferred income tax

Other current assets


Total current assets

Property and Equipment

5,000.00

5,000.00

5,000.00

5,000.00

5,000.00

83,000.00

188,189.56

143,559.57

174,116.45

230,797.15

Initial balance

Year 1

Year 2

Year 3

Year 4

Buildings

20,000.00

20,000.00

20,000.00

20,000.00

20,000.00

Land

10,000.00

10,000.00

10,000.00

10,000.00

10,000.00

Capital improvements
Machinery and equipment

10,000.00

Less Accumulated depreciation expense


Total Property and Equipment

Other Assets

40,000.00

Initial balance

10,000.00

10,000.00

10,000.00

10,000.00

6,000.00

12,120.00

18,360.00

24,720.00

34,000.00

27,880.00

21,640.00

15,280.00

Year 1

Year 2

Year 3

Year 4

Goodwill

Deferred income tax

Long-term investments

Deposits

Other long-term assets

Total Other Assets

TOTAL ASSETS

123,000.00

222,189.56

171,439.57

195,756.45

246,077.15

LIABILITIES
Current Liabilities
Accounts payable

Initial balance
2,000.00

Year 1

Year 2

2,000.00

Year 3

2,000.00

Year 4

2,000.00

2,000.00

Accrued expenses

Notes payable/short-term debt

Capital leases

Other current liabilities

100.00

100.00

100.00

100.00

100.00

Total Current Liabilities


Debt

2,100.00
Initial balance

2,100.00

2,100.00

2,100.00

2,100.00

Year 1

Year 2

Year 3

Year 4

Long-term debt/loan

50,000.00

40,951.26

31,450.08

21,473.85

10,998.80

Other long-term debt

100,000.00

200,000.00

150,000.00

175,000.00

225,000.00

152,100.00

243,051.26

183,550.08

198,573.85

238,098.80

Total Debt
Other Liabilities

Initial balance

Year 1

Year 2

Year 3

Year 4

Other liabilities (specify)

Other liabilities (specify)

Total Other Liabilities

TOTAL LIABILITIES

52,100.00

43,051.26

33,550.08

23,573.85

13,098.80

Year 1

Year 2

Year 3

Year 4

50,000.00

50,000.00

50,000.00

50,000.00

50,000.00

250,000.00

250,000.00

250,000.00

250,000.00

250,000.00

EQUITY
Initial balance
Owner's equity (common)
Paid-in capital
Preferred equity

Retained earnings

8,238.30

16,989.48

27,282.60

38,078.35

TOTAL EQUITY

300,000.00

308,238.30

316,989.48

327,282.60

338,078.35

TOTAL LIABILITIES AND EQUITY

352,100.00

351,289.56

350,539.57

350,856.45

351,177.15

Year 5
130,690.35
3,000.00
25,000.00
5,000.00
163,690.35

Year 5
20,000.00
10,000.00
10,000.00
31,200.00
8,800.00

Year 5
-

172,490.35

Year 5
2,000.00
100.00

2,100.00
Year 5
150,000.00
152,100.00
Year 5
-

2,100.00

Year 5
50,000.00
250,000.00
50,490.35
350,490.35

352,590.35

CASH FLOW PROJECTION


Company Name
Operating activities

Year 1

Year 2

Year 3

Year 4

Year 5

Net income

8,238.30

8,751.18

10,293.12

10,795.75

12,412.00

Depreciation

6,000.00

6,120.00

6,240.00

6,360.00

6,480.00

Accounts receivable

Inventories

Accounts payable

Amortization

Other liabilities

Other operating cash flow items

Total operating activities

14,238.30

14,871.18

16,533.12

17,155.75

18,892.00

Investing activities

Year 1

Year 2

Year 3

Year 4

Year 5

Capital expenditures

Acquisition of business

Sale of fixed assets

Other investing cash flow items

Total investing activities


Financing activities
Long-term debt/financing

1,000.00
-

1,000.00

Year 1

Year 2

Year 3

Year 4

Year 5

90,951.26 -

59,501.18

15,023.76

39,524.95 -

85,998.80

Preferred stock

Total cash dividends paid

Common stock

Other financing cash flow items

Total financing activities


Cumulative cash flow
Beginning cash balance
Ending cash balance

90,951.26 -

59,501.18

15,023.76

39,524.95 -

85,998.80

105,189.56 -

44,630.00

30,556.88

56,680.70 -

67,106.80

50,000.00

155,189.56

110,559.57

141,116.45

197,797.15

155,189.56

110,559.57

141,116.45

197,797.15

130,690.35

Total
50,490.35
31,200.00
81,690.35
Total
-

1,000.00
-

1,000.00
Total
80,690.35

LOAN AMORTIZATION SCHEDULE


Company Name
NOTE: Loan Amortization calculations are limited for up to 30 years (360 months).

MONTH
1

BALANCE
SCHEDULED PAYMENT
50,000.00
50,000.00
941.02

PRINCIPAL

INTEREST

737.31

203.71

49,262.69

941.02

740.32

200.70

48,522.37

941.02

743.33

197.69

47,779.03

941.02

746.36

194.66

47,032.67

941.02

749.40

191.62

46,283.27

941.02

752.46

188.56

45,530.81

941.02

755.52

185.50

44,775.29

941.02

758.60

182.42

44,016.69

941.02

761.69

179.33

10

43,255.00

941.02

764.79

176.23

11

42,490.21

941.02

767.91

173.11

12

41,722.30

941.02

771.04

169.98

13

40,951.26

941.02

774.18

166.84

14

40,177.08

941.02

777.33

163.69

15

39,399.75

941.02

780.50

160.52

16

38,619.25

941.02

783.68

157.34

17

37,835.57

941.02

786.87

154.15

18

37,048.69

941.02

790.08

150.94

19

36,258.61

941.02

793.30

147.72

20

35,465.32

941.02

796.53

144.49

21

34,668.79

941.02

799.77

141.24

22

33,869.01

941.02

803.03

137.99

23

33,065.98

941.02

806.31

134.71

24

32,259.67

941.02

809.59

131.43

25

31,450.08

941.02

812.89

128.13

26

30,637.19

941.02

816.20

124.82

27

29,820.99

941.02

819.53

121.49

28

29,001.47

941.02

822.86

118.16

29

28,178.60

941.02

826.22

114.80

30

27,352.39

941.02

829.58

111.44

31

26,522.81

941.02

832.96

108.06

32

25,689.84

941.02

836.36

104.66

33

24,853.49

941.02

839.76

101.26

34

24,013.72

941.02

843.19

97.83

35

23,170.54

941.02

846.62

94.40

36

22,323.92

941.02

850.07

90.95

37

21,473.85

941.02

853.53

87.49

38

20,620.31

941.02

857.01

84.01

39

19,763.30

941.02

860.50

80.52

40

18,902.80

941.02

864.01

77.01

41

18,038.80

941.02

867.53

73.49

42

17,171.27

941.02

871.06

69.96

43

16,300.21

941.02

874.61

66.41

44

15,425.59

941.02

878.17

62.85

45

14,547.42

941.02

881.75

59.27

46

13,665.67

941.02

885.34

55.68

47

12,780.32

941.02

888.95

52.07

48

11,891.37

941.02

892.57

48.45

49

10,998.80

941.02

896.21

44.81

50

10,102.59

941.02

899.86

41.16

51

9,202.73

941.02

903.53

37.49

52

8,299.20

941.02

907.21

33.81

53

7,391.99

941.02

910.90

30.12

54

6,481.09

941.02

914.62

26.40

55

5,566.48

941.02

918.34

22.68

56

4,648.13

941.02

922.08

18.94

57

3,726.05

941.02

925.84

15.18

58

2,800.21

941.02

929.61

11.41

59

1,870.60

941.02

933.40

7.62

60

937.20

941.02

937.20

3.82

NOTES AND ASSUMPTIONS


Company Name
[Document key financial planning assumptions here.]
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