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Introduction 407355394.

xls 1

RETAIL 12-MONTH BUDGET

IMPORTANT NOTE: You can add up to 4 expense accounts to the existing accounts in this workbook.
You can add these accounts in the "Expense Breakdown" section

Required Inputs: All required inputs are highlighted in light blue.

Instructions:
1. Before you start entering data, explore the workbook and understand how it operates.
2. All instructions are highlighted in green.
3. Make sure you read the instructions in each worksheet before filling in data.
4. For this sheet, enter all inputs highlighted below in blue.

Restaurant Name Sample Retail Store


Prepared by Enter Your Name
Year of analysis 2004

This workbook contains the following worksheets: This workbook contains the following Macros:
1. Introduction 1. CTRL+SHIFT+F : Fills remaining month's with same value as first month.
2. Expense Breakdown To perform this function, select the first month cell and perform the function (CTRL+SHIFT+F).
3. Assumptions
4. Inc. Stmt. (Income Statement) What is a macro?
5. Output Ratios A macro is a set of commands or functions that simplifies tasks that are repeated in Excel.
If you want to use this feature, you must click "Enable Macros" when you open this workbook.
If your version of Excel does not allow macros, then you can manually enter the values.

© 2003 Board of Regents of the University of Wisconsin System, d/b/a Division of Cooperative Extension of the University of Wisconsin-Extension
Expense Breakdown 407355394.xls 2

Sample Retail Store


EXPENSE BREAKDOWN

Required Inputs: All required inputs for this sheet are highlighted in light blue

Instructions:
1. For each of the accounts below, specify whether it is Fixed (F), Variable (V), or both Fixed and Variable (B)
2. If an account is fixed, you will be entering a specific dollar amount in the assumptions sheet.
3. For the variable accounts, you will be expressing the amount in percentage of sales.
4. For accounts that are both fixed and variable, you will be entering a fixed dollar amount and a percentage of sales amount
5. You can add up to 4 additional expense accounts. Type the account's name and classify it as F, V or B in the section for additional accounts

Account Type of Account*


Payroll Expenses v Variable accounts are those that are
Employee Benefits v dependant on another value. For example, if
Accounting/ Legal v you expect to hire more employees as your
Telephone f sales increase or cut down on employees if
Marketing & Advertising f sales decrease, then payroll expense has a
variable component.
Utilities f
Office Supplies v
Maintenance f Fixed accounts do not change with sales
Rent f
Property Taxes f
Travel v
Miscellaneous Expenses v
Insurance f
Interest Expense f
Depreciation and Amortization f

Add other expense accounts here:


Acct 1 f
Acct 2 f

*F=Fixed
V=Variable
B=Both Fixed and Variable

Now click the "Assumptions" tab below.


Assumptions 407355394.xls 3

Sample Retail Store


ASSUMPTIONS

Required Inputs: All required inputs for this sheet are highlighted in light blue.

Instructions:
1. Fill in all the cells highlighted in light blue. Remember the inputs are for the corresponding month mentioned in the "Month" column.
2. Enter the category of your goods. There is space for five different categories.
3. When entering your sales, you can save time by using the fill-in macro. Simply, enter a value in the first month, select that cell and press the 3 keys: CTRL+SHIFT+F
4. You must apply the fill-in macro only when selecting the first month cell.
5. Next fill in the account assumptions listed below "Average Cost of Goods Sold". Use historical data if available or industry averages.
6. When entering values for the accounts, you can save time by applying the fill-in macro.
7. If you classified an account as fixed in the "Expense Breakdown" sheet, you should only enter a fixed dollar amount in this sheet for that account
8. Similarly, enter only percentage values for variable accounts. If a account is both fixed and variable, enter both dollar amount and percentage.

Month
Jan Feb Mar Apr May Jun Jul

Days Open in Month 30 28 30 30 30 30 30


Store Square Feet 1,500 1,500 1,500 1,500 1,500 1,500 1,500

Monthly Sales by Category:


Gift Items 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Sports Items 2,500 2,500 2,500 2,500 2,500 2,500 2,500
Food Items 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Beverage Items 2,500 2,500 2,500 2,500 2,500 2,500 2,500

Total Monthly Sales 9,000 9,000 9,000 9,000 9,000 9,000 9,000

Cost of Goods Sold:


Gift Items 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0%
Sports Items 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0%
Food Items % of Category Sales 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0%
Beverage Items 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0%

Average Cost of Goods Sold 32.2% 32.2% 32.2% 32.2% 32.2% 32.2% 32.2%

Payroll Expense
% of Total Sales 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00%

Employee Benefits Expense


% of Total Sales 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

Accounting/ Legal
% of Total Sales 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%

Fixed $ Amount 100 100 100 100 100 100 100


Telephone Expense
Assumptions 407355394.xls 4

Fixed $ Amount 500 500 500 500 500 500 500


Marketing and Advertising

Fixed $ Amount 300 300 300 300 300 300 300


Utilities

Office Supplies
% of Total Sales 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

Fixed $ Amount 500 500 500 500 500 500 500


Maintenance Expense

Fixed $ Amount 1,500 1,500 1,500 1,500 1,500 1,500 1,500


Rent

Fixed $ Amount
Property Taxes

Travel
% of Total Sales

Miscellaneous Expenses
% of Total Sales

Fixed $ Amount 250 250 250 250 250 250 250


Insurance

Fixed $ Amount
Interest Expense

Fixed $ Amount 100 100 100 100 100 100 100


Depreciation and Amortization

Fixed $ Amount 100 100 100 100 100 100 100


Acct 1

Fixed $ Amount 200 200 200 200 200 200 200


Acct 2

Next click the "Inc. Stmt." tab below


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0.46

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whatif2

0.49

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Inc. Stmt. 407355394.xls 7

Sample Retail Store


INCOME STATEMENT

Required Inputs: None


Year: 2004
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Total Square Feet 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500

Sales:
Gift Items 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000
Sports Items 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000
Food Items 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000
Beverage Items 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000
0 0 0 0 0 0 0 0 0 0 0 0 0

Total Sales 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 108,000

Cost of Goods Sold:


Gift Items 700 700 700 700 700 700 700 700 700 700 700 700 8,400
Sports Items 750 750 750 750 750 750 750 750 750 750 750 750 9,000
Food Items 700 700 700 700 700 700 700 700 700 700 700 700 8,400
Beverage Items 750 750 750 750 750 750 750 750 750 750 750 750 9,000
0 0 0 0 0 0 0 0 0 0 0 0 0

Total Cost of Sales 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,900 34,800

Gross Profit 6,100 6,100 6,100 6,100 6,100 6,100 6,100 6,100 6,100 6,100 6,100 6,100 73,200

Operating Expenses:
Payroll Expenses 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 16,200
Employee Benefits 270 270 270 270 270 270 270 270 270 270 270 270 3,240
Accounting/ Legal 90 90 90 90 90 90 90 90 90 90 90 90 1,080
Telephone 100 100 100 100 100 100 100 100 100 100 100 100 1,200
Marketing & Advertising 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Utilities 300 300 300 300 300 300 300 300 300 300 300 300 3,600
Office Supplies 270 270 270 270 270 270 270 270 270 270 270 270 3,240
Maintenance 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Travel 0 0 0 0 0 0 0 0 0 0 0 0 0
Miscellaneous Expenses 0 0 0 0 0 0 0 0 0 0 0 0 0

Total Operating Expenses 3,380 3,380 3,380 3,380 3,380 3,380 3,380 3,380 3,380 3,380 3,380 3,380 40,560

Occupancy Costs:
Rent 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000
Property Taxes 0 0 0 0 0 0 0 0 0 0 0 0 0
Insurance 250 250 250 250 250 250 250 250 250 250 250 250 3,000

Total Occupancy Costs 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 21,000

Interest Expense 0 0 0 0 0 0 0 0 0 0 0 0 0
Depreciation and Amortization 100 100 100 100 100 100 100 100 100 100 100 100 1,200

Other Accounts:
Acct 1 100 100 100 100 100 100 100 100 100 100 100 100 1,200
Acct 2 200 200 200 200 200 200 200 200 200 200 200 200 2,400
0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0

Income Before Taxes 570 570 570 570 570 570 570 570 570 570 570 570 6,840

Next, click the "Output ratios" tab below.


Sample Retail Store
OUTPUT RATIOS

Required Inputs: None

Account % of Sales $ Total


Payroll Expenses 15.00% 16,200
Employee Benefits 3.00% 3,240
Accounting/ Legal 1.00% 1,080
Telephone 1.11% 1,200
Marketing & Advertising 5.56% 6,000
Utilities 3.33% 3,600
Office Supplies 3.00% 3,240
Maintenance 5.56% 6,000
Rent 16.67% 18,000
Property Taxes % of Total Sales 0.00% 0
Travel 0.00% 0
Miscellaneous Expenses 0.00% 0
Insurance 2.78% 3,000
Interest Expense 0.00% 0
Depreciation and Amortization 1.11% 1,200
Acct 1 1.11% 1,200
Acct 2 2.22% 2,400
0.00% 0
0.00% 0

You can use the above outputs as assumptions for the 5-Year Proforma Financial Projection

This is the end of the workbook