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Financial Model
Financial Model
Financial Model
This spreadsheet walks you through the process of developing an integrated set of financial projections.
To use this model, simply complete any information asked for found in the color yellow.
Example: Fill in boxes that look like this
A number found in the color green is optional information that you can complete.
Example: Check these assumptions
Otherwise, any information found in black type is automatically calculated for you.
Although the cells that are calculated are locked (or protected), you can turn off this protection to modify the sheets.
To do this, select "Tools" from the menu bar at the top of the screen. Then select, "Protection."
Finally, select "Unprotect Sheet" and you will be able to edit any labels or formulas.
Before you begin, we need some information about your business to best customize your financial statements.
Please enter the name of your business in the box below:
Enter Your Business Name Here
The first six worksheets in this workbook are steps you will need to complete. They are titled:
1. Required Start-Up Funds
2. Salaries and Wages
3. Fixed Operating Expenses
4. Projected Sales Forecast (2 sheets)
5. Cash Receipts and Disbursements
The sixth step titled, "Beginning Balance Sheet" is for existing businesses only.
Amount
$
Depreciation
20.00
7.00
7.00
5.00
5.00
5.00
Notes
years
years
years
years
years
years
Sources of Funding
Totals
Amount
Totals
Loan Rate
Term in Months
Monthly Payments
0.00%
0.00%
0.00%
0.00%
0.00%
9.00%
9.00%
84.00
240.00
$0.00
$0.00
$0.00
12-Sep-16
Assumptions
Wage Base
Monthly
Year One
Percent Change
Salaries and Wages
Owner's Compensation
Salaries
Wages
Full-Time Employees
Estimated Hours Per Week
Estimated Rate Per Hour
Part-Time Employees
Estimated Hours Per Week
Estimated Rate Per Hour
Independent Contractors
Total Salaries and Wages
Payroll Taxes and Benefits
Social Security
Medicare
Federal Unemployment Tax (FUTA)
State Unemployment Tax (SUTA)
Employee Pension Programs
Worker's Compensation
Employee Health Insurance
Other Employee Benefit Programs
Total Payroll Taxes and Benefits
Year Two
3.00%
0
0
0
$
40.00
9.00
20.00
9.00
6.20%
1.45%
0.80%
2.70%
0.00%
0.00%
0.00%
0.00%
102,000
$
$
7,000
7,000
###
Year Three
3.00%
Monthly
Year One
Percent Change
Expenses
Advertising
Car and Truck Expenses
Commissions and Fees
Contract Labor
Credit Card and Bank Charges
Customer Discounts and Refunds
Dues and Subscriptions
Entertainment
Insurance (Liability and Property)
Internet
Legal and Professional Fees
Office Expenses
Postage and Delivery
Rent (on business property)
Rent of Vehicles and Equipment
Repairs and Maintenance
Supplies
Telephone and Communications
Travel
Utilities
Total Expenses
Other Expenses
Depreciation
Interest
Commercial Loan
Year Two
Year Three
3.00%
3.00%
Notes
Commercial Mortgage
Line of Credit
Total Other Expenses
###
Assumptions
Product/Service A
Price Per Unit
$
Variable Cost Per Unit
$
Gross Margin Per Unit
$
Projected Unit Sales
Seasonality Factor
Year One
Year Two Growth
Year Three Growth
Fixed Expense Allocation
Projected Revenue
Variable Costs
Gross Margin
Fixed Expenses
Profit
Product/Service B
Price Per Unit
Variable Cost Per Unit
Gross Margin Per Unit
Projected Unit Sales
Seasonality Factor
Year One
$
$
$
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
100.00%
0.00%
0.00%
10.00%
10.00%
50.00%
-
Month 1
0.00%
100.00%
0.00%
0.00%
10.00%
10.00%
16.67%
$
0.00%
12-Sep-16
Month 9 Month 10
Month 11 Month 12
Totals
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
Assumptions
Product/Service C
Price Per Unit
$
Variable Cost Per Unit
$
Gross Margin Per Unit
$
Projected Unit Sales
Seasonality Factor
Year One
Year Two Growth
Year Three Growth
Fixed Expense Allocation
Projected Revenue
Variable Costs
Gross Margin
Fixed Expenses
Profit
Product/Service D
Price Per Unit
Variable Cost Per Unit
Gross Margin Per Unit
Projected Unit Sales
Seasonality Factor
Year One
$
$
$
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
100.00%
0.00%
0.00%
10.00%
10.00%
16.67%
-
Month 1
0.00%
100.00%
0.00%
0.00%
10.00%
10.00%
16.67%
$
0.00%
12-Sep-16
Month 9 Month 10
Month 11 Month 12
Totals
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
100.00%
0.00%
0.00%
100.00%
100.00%
0.00%
0.00%
100.00%
9.00%
0.00%
3.00
###
12/31/2006
Assets
Current Assets
Cash
Accounts Receivable
Inventory
Prepaid Expenses
Other Current
Total Current Assets
Fixed Assets
Real Estate
Buildings
Leasehold Improvements
Equipment
Furniture and Fixtures
Vehicles
Other Fixed Assets
Total Fixed Assets
Total Assets
12/31/2006
-
Statement Balances
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Income
Product/Service A
Product/Service B
Total Income
Cost of Sales
Product/Service A
Product/Service B
Gross Margin
Office Expenses
Postage and Delivery
Rent (on business property)
Rent of Vehicles and Equipment
Repairs and Maintenance
Supplies
Telephone and Communications
Travel
Utilities
Total Fixed Business Expenses
Month 1
-
Month 2
-
Month 3
-
Month 4
-
Month 5
-
Month 6
-
Month 7
-
Month 8
-
Month 9
-
Net Income
Month 10
Month 11
Month 12
Totals
Month 10
-
Month 11
-
Month 12
-
Totals
-
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Cash Inflows
Income from Sales
Accounts Receivable
Total Cash Inflows
Cash Flow
Cash Outflows
Investing Activities
New Capital Purchases
Inventory Purchases
Cost of Sales
Operating Activities
Salaries and Wages
Fixed Business Expenses
Taxes
Financing Activities
Loan Payments
Line of Credit Interest
Line of Credit Repayments
Dividends Paid
Total Cash Outflows
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Totals
Month 10
Month 11
Month 12
Totals
Base Period
Assets
Current Assets
Cash
Accounts Receivable
Inventory
Prepaid Expenses
Other Current
Total Current Assets
Fixed Assets
Real Estate
Buildings
Leasehold Improvements
Equipment
Furniture and Fixtures
Vehicles
Other Fixed Assets
Total Fixed Assets
Total Assets
Base Period
-
Statement Balances
Statement Balances
Year One
Income
Product/Service A
Product/Service B
Year Two
100.00%
100.00%
0.00%
0.00%
Gross Margin
0.00%
0.00%
0.00%
0.00%
Total Income
Cost of Sales
Product/Service A
Product/Service B
Office Expenses
Postage and Delivery
Rent (on business property)
Rent of Vehicles and Equipment
Repairs and Maintenance
Supplies
Telephone and Communications
Travel
Utilities
Total Fixed Business Expenses
Year One
-
0.00%
Year Two
-
0.00%
0.00%
0.00%
Net Income
0.00%
0.00%
Year Three
100.00%
0.00%
0.00%
0.00%
Year Three
-
0.00%
0.00%
0.00%
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Income
Product/Service A
Product/Service B
Total Income
Cost of Sales
Product/Service A
Product/Service B
Gross Margin
Office Expenses
Postage and Delivery
Rent (on business property)
Rent of Vehicles and Equipment
Repairs and Maintenance
Supplies
Telephone and Communications
Travel
Utilities
Total Fixed Business Expenses
Month 1
-
Month 2
-
Month 3
-
Month 4
-
Month 5
-
Month 6
-
Month 7
-
Month 8
-
Month 9
-
Net Income
Month 10
Month 11
Month 12
Totals
Month 10
-
Month 11
-
Month 12
-
Totals
-
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Cash Inflows
Income from Sales
Accounts Receivable
Total Cash Inflows
Cash Flow
Cash Outflows
Investing Activities
New Capital Purchases
Inventory Purchases
Cost of Sales
Operating Activities
Salaries and Wages
Fixed Business Expenses
Taxes
Financing Activities
Loan Payments
Line of Credit Interest
Line of Credit Repayments
Dividends Paid
Total Cash Outflows
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Totals
Month 10
Month 11
Month 12
Totals
Fixed Assets
Real Estate
Buildings
Leasehold Improvements
Equipment
Furniture and Fixtures
Vehicles
Other Fixed Assets
Total Fixed Assets
Total Assets
Statement Balances
Statement Balances
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Income
Product/Service A
Product/Service B
Total Income
Cost of Sales
Product/Service A
Product/Service B
Gross Margin
Office Expenses
Postage and Delivery
Rent (on business property)
Rent of Vehicles and Equipment
Repairs and Maintenance
Supplies
Telephone and Communications
Travel
Utilities
Total Fixed Business Expenses
Month 1
-
Month 2
-
Month 3
-
Month 4
-
Month 5
-
Month 6
-
Month 7
-
Month 8
-
Month 9
-
Net Income
Month 10
Month 11
Month 12
Totals
Month 10
-
Month 11
-
Month 12
-
Totals
-
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Cash Inflows
Income from Sales
Accounts Receivable
Total Cash Inflows
Cash Flow
Cash Outflows
Investing Activities
New Capital Purchases
Inventory Purchases
Cost of Sales
Operating Activities
Salaries and Wages
Fixed Business Expenses
Taxes
Financing Activities
Loan Payments
Line of Credit Interest
Line of Credit Repayments
Dividends Paid
Total Cash Outflows
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Totals
Month 10
Month 11
Month 12
Totals
Fixed Assets
Real Estate
Buildings
Leasehold Improvements
Equipment
Furniture and Fixtures
Vehicles
Other Fixed Assets
Total Fixed Assets
Total Assets
Statement Balances
Statement Balances
Ratio
Liquidity
Current Ratio
Quick Ratio
Safety
Debt to Equity Ratio
Debt to Coverage Ratio
Profitability
Sales Growth
COGS to Sales
Gross Profit Margin
SG&A to Sales
Net Profit Margin
Return on Equity
Return on Assets
Owner's Compensation to Sales
Efficiency
Days in Receivables
Accounts Receivable Turnover
Days in Inventory
Inventory Turnover
Sales to Total Assets
Year One
Year Two
Year Three
Breakeven Analysis
Annual Sales Revenue
Cost of Sales
Gross Margin
Dollars
-
0.00%
$
Percent
100.00%
0.00%
0.00%
Loan Type
Commercial Loan
Principal Amount
$
Interest Rate
Loan Term in Months
Monthly Payment Amoun
Assumptions
Year One
Interest
Principal
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
9.00%
84.00
$0.00
Year One
Interest
Principal
Loan Balance
Year Two
Interest
Principal
Loan Balance
Year Three
Interest
Principal
Loan Balance
Commercial Mortgage
Principal Amount
$
Interest Rate
Loan Term in Months
Monthly Payment Amoun
Month 1
9.00%
240.00
$0.00
Loan Balance
Year Two
Interest
Principal
Loan Balance
Year Three
Interest
Principal
Loan Balance
Month 10
Month 11
Month 12
Totals
This sheet performs a few tests on your numbers to see if they seem within certain reasonable ranges.
Remember, no computer can tell whether your projections are truly well-constructed, only a human can do that.
But these tests can at least look for values that are critically out of range.
Financial Diagnostics
General Financing Assumptions
Owner's Cash Injection into the Business
Cash Request as percent of Total Required Funds
Loan Assumptions
Commercial Loan Interest rate
Commercial Loan Term in Months
Commercial Mortgage Interest rate
Commercial Mortgage Term in Months
Value
Findings
0.00%
0.00%
Owner's injection might be too low in relation to the amount of money needed
Cash request seems reasonable with respect to total request
9.00%
84
9.00%
240.00
0.00%
Income Statement
Gross Margin as a Percent of Sales
Owner's Compensation Lower Limit Check
$
Owner's Compensation Upper Limit Check
Advertising Expense Levels as a Percent of Sales
Profitability Levels
$
Profitability as a Percent of Sales
0.00%
0.00%
0.00%
0.00%
0.00%
$
$
Balance Sheet
Does the Base Period Balance Sheet Balance?
Does the Final Balance Sheet Balance
Debt to Equity Ratio
Breakeven Analysis
Breakeven Levels
0.00%