KEY ASSUMPTIONS

The company has low-profit margin compared to the industry, and hence it will remain in bad conditions after mark
company is at greater risk and likelihood of occurring remains relatively high.
With forecast in our financial model is much more than growth rate and numbers. The model incorporates in
The revenue
improve some sales made by company one such as customer acquisition costs. Further, the excel attached has histor
metrics such as capital expenditures, revenue growth, working capital, margins and other terms such as accounts rec

Capital assets such as property plant and equipment are to be forecast before developing the income statement in m
added capital expenditures and depreciation deducted. Depreciation was calculated using declining basis and straigh

The income statement was developed from the debt schedule. The working capital was forecasted using average day
turns. Other capital assets such as PPE and debt balance are included.

After completing the balance sheet, the cashflow statement should be built from it, and hence we can complete our
items that have been calculated above. The three sections include cash from investing, cash from financing and cash
I hope this is helpful in building a three statement model of excel.
in bad conditions after market conditions change for the worst. The solvency of the

s. The model incorporates inputs and outputs. The inputs involve assumptions that
the excel attached has historical financial information in an easy to use way. Several
er terms such as accounts receivable, inventory and accounts payable.

g the income statement in my model. The closing balance from the last period is
g declining basis and straight line method.

forecasted using average days receivable and average days payable, and inventory

hence we can complete our three excel statement. This section is interlinked to other
ash from financing and cash from operations.
Cash Flow Forecast Year 1

Prepared By: Company Name:

Yong Company 1

January February March April

Beginning Balance 6958 1000 1000 1000
Cash Inflows
Cash Sales 20035.5 23712 24549 21405
Accounts Receivable 0 20035.5 50426 56165
Total Cash Inflows 20035.5 43747.5 74975 77570

Cash Outflows
Investing Activities
New Fixed Asset Purchases 0 36 201 327
Additional Inventory
Cost of Goods Sold 0 23596 29595 32108
Operating Activities
Operating Expenses 758 302 575 527
Payroll 106549.6247 106549.6246667 106549.62 106550
Taxes 0 0 0 0
Financing Activities
Loan Payments 2878.934908 2878.93490835 2878.9349 2878.935
Owners Distribution
Line of Credit Interest 596.367505323 1235.3651 1703.29
Line of Credit Repayments
Dividends Paid
Total Cash Outflows 110186.5596 133958.9270803 141034.92 144094
Net Cash Flows -90151.0596 -90211.4270803 -66059.925 -66523.8
Operating Cash Balance -83193.0596 -89211.4270803 -65059.925 -65523.8
Line of Credit Drawdown 84193.05958 90211.42708034 66059.925 66523.85
Ending Cash Balance 1000 1000 1000 1000
Line of Credit Balance 84193.05958 174404.4866554 240464.41 306988
May June July August SeptembeOctober NovembeDecemberTotals
1000 1000 1000 1000 1000 1000 1000 1000

23338.5 25041 24276 25897.5 25653 25891.5 26707.5 27718.5 294225

54137 51878.5 56159 57664 58265.5 60183 60095.5 61229.5 586238.5
77475.5 76919.5 80435 83561.5 83918.5 86074.5 86803 88948 880463.5

139 130 156 169 210 157 146 149 1820

0
25623 31051 31753 29554 32138 32475 33653 34200 335746

588 635 797 773 762 806 833 835 8191

106550 106550 106550 106550 106550 106550 106550 106550 1278595
0 0 0 0 0 0 0 0 0

2878.935 2878.935 2878.935 2878.935 2878.935 2878.935 2878.935 2878.935 34547.22

0
2174.5 2602.883 3076.956 3535.789 3960.073 4403.349 4836.816 5276.652 33402
0
0
137953 143847 145212 143460 146499 147270 148897 149889 1692302
-60477.6 -66927.9 -64776.5 -59898.8 -62580.1 -61195.4 -62094.4 -60941.2 -811838
-59477.6 -65927.9 -63776.5 -58898.8 -61580.1 -60195.4 -61094.4 -59941.2
60477.56 66927.94 64776.52 59898.85 62580.13 61195.41 62094.38 60941.21 805880
1000 1000 1000 1000 1000 1000 1000 1000
367466 434394 499170 559069 621649 682845 744939 805880
Income Statement Year 1

Prepared By: Company Name:

Yong Company 1

January February March

Revenue
Product Lines 1 10625 17750 22250
Product Lines 2 43800 48900 45900
Product Lines 3 12360 12390 13680
Product 4 0 0 0
Product 5 0 0 0
Product 6 0 0 0
Total Revenue 66785 79040 81830
Cost of Goods Sold
Product Lines 1 6800 11360 14240
Product Lines 2 12264 13692 12852
Product Lines 3 4532 4543 5016
Product 4 0 0 0
Product 5 0 0 0
Product 6 0 0 0
Total Cost of Goods Sold 23596 29595 32108
Gross Margin 43189 49445 49722
Payroll 106549.624666667 106549.624667 106549.62467
Operating Expenses
Advertising 10 5 3
Car and Truck Expenses 12 12 10
Commissions and Fees 124 14 12
Contract Labor (Not included in payroll) 125 15 12
Insurance (other than health) 98 16 41
Legal and Professional Services 69 21 45
Licenses 25 23 74
Office Expense 20 24 78
Rent or Lease -- Vehicles, Machinery, Equip 41 32 98
Rent or Lease -- Other Business Property 12 25 12
Repairs and Maintenance 14 24 45
Supplies 14 27 42
Travel, Meals and Entertainment 58 25 47
Utilities 74 14 32
Miscellaneous 62 25 24
Other Expense 1
Other Expense 2
Total Operating Expenses 758 302 575
Income (Before Other Expenses) -64118.624666667 -57406.6246667 -57402.62467
Other Expenses
Amortized Start-up Expenses 4448.25 4448.25 4448.25
Depreciation 3014.39583333333 3014.79345238 3018.0095238
Interest
Commercial Loan 523.905 519.405138954 514.87152895
Commercial Mortgage 35.88 35.826278327 35.772153742
Credit Card Debt 21.0583333333333 20.7641933718 20.468337594
Vehicle Loans 349.27 342.813733904 336.32518648
Other Bank Debt 0 0 0
Line of Credit 0 596.367505323 1235.3651138
Bad Debt Expense 0 0 0
Total Other Expenses 8392.75916666667 8978.22030226 9609.0618444
Net Income Before Income Tax -72511.383833333 -66384.8449689 -67011.68651
Income Tax 0 0 0
Net Profit/Loss -72511.383833333 -66384.8449689 -67011.68651
April May June July August SeptemberOctober NovemberDecember Annual Totals

12250 22250 19750 15625 18375 19750 22375 21750 22750 225500
44850 41025 49050 50625 52350 49350 47400 50625 52125 576000
14250 14520 14670 14670 15600 16410 16530 16650 17520 179250
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 0 0 0 0
71350 77795 83470 80920 86325 85510 86305 89025 92395 980750

7840 14240 12640 10000 11760 12640 14320 13920 14560 144320
12558 11487 13734 14175 14658 13818 13272 14175 14595 161280
5225 5324 5379 5379 5720 6017 6061 6105 6424 65725
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 0 0 0 0
25623 31051 31753 29554 32138 32475 33653 34200 35579 371325
45727 46744 51717 51366 54187 53035 52652 54825 56816 609425
106549.6 106549.6 106549.6 106549.6 106549.6 106549.6 106549.6 106549.6 106549.6 1278595

14 5 7 8 9 10 12 11 14 108
12 42 45 78 21 21 45 58 74 430
14 12 98 74 58 69 47 85 75 682
6 14 45 78 85 74 95 56 45 650
24 18 12 45 74 85 95 75 95 678
58 95 25 45 12 45 35 41 62 553
41 36 85 74 45 58 75 69 74 679
41 45 95 74 52 47 84 79 63 702
32 24 25 74 85 21 45 85 85 647
32 12 36 41 47 85 95 47 36 480
91 32 32 25 41 52 42 51 46 495
45 25 36 15 46 52 41 75 25 443
38 58 35 51 42 51 46 25 81 557
25 74 38 74 81 29 35 61 42 579
54 96 21 41 75 63 14 15 18 508
 527 588 635 797 773 762 806 833 835 8191
-61349.62 -60393.62 -55467.62 -55980.62 -53135.62 -54276.62 -54703.62 -52557.62 -50568.62 -677361

4448.25 4448.25 4448.25 4448.25 4448.25 4448.25 4448.25 4448.25 4448.25 53379
3021.736 3023.587 3025.303 3027.374 3029.493 3032.126 3034.214 3035.911 3037.857 36314.8

510.3039 505.702 501.0657 496.3945 491.6883 486.9468 482.1698 477.3569 472.5079 5982.318
35.71762 35.66268 35.60733 35.55157 35.49538 35.43877 35.38174 35.32428 35.2664 426.9242
20.17076 19.87144 19.57037 19.26756 18.96297 18.65661 18.34846 18.03851 17.72675 232.9043
329.8042 323.2506 316.6642 310.0449 303.3926 296.7069 289.9878 283.2351 276.4487 3757.944
0 0 0 0 0 0 0 0 0 0
1703.29 2174.5 2602.883 3076.956 3535.789 3960.073 4403.349 4836.816 5276.652 33402.04
0 0 0 0 0 0 0 0 0 0
10069.27 10530.82 10949.34 11413.84 11863.07 12278.2 12711.7 13134.93 13564.71 133495.9
-71418.9 -70924.45 -66417 -67394.46 -64998.7 -66554.82 -67415.33 -65692.56 -64133.33 -810857
0 0 0 0 0 0 0 0 0 0
-71418.9 -70924.45 -66417 -67394.46 -64998.7 -66554.82 -67415.33 -65692.56 -64133.33 -810857
Annual Totals
Balance Sheet Years 1-3

Prepared By: Company Name:

Yong Company 1

ASSETS 2017 2018 2019

Current Assets
Cash 1000 1000 1000
Accounts Receivable 100286.5 110315.15 121346.665
Inventory 4575 4575 4575
Prepaid Expenses 103106 51553 0
Other Initial Costs 3652 1826 0
Total Current Assets 212619.5 169269.15 126921.665

Fixed Assets
Real Estate -- Land 98256 98256 98256
Real Estate -- Buildings 70205 70205 70205
Leasehold Improvements 85154 85154 85154
Equipment 23923 23923 23923
Furniture and Fixtures 5714 5714 5714
Vehicles 23985 23985 23985
Other 57109 57109 57109
Total Fixed Assets 364346 364346 364346
(Less Accumulated Depreciation) 36314.79880952 72769.07738 109223.3559524
Total Assets 540650 460846 382044

LIABILITIES & EQUITY

Liabilities
Accounts Payable 35579 39136.9 43050.59
Commercial Loan Balance 62349.67991717 54141.40285 45163.13277224
Commercial Mortgage Balance 4694.409538169 4596.414873 4489.227632414
Credit Card Debt Balance 2985.116361179 2315.059834 1596.564865428
Vehicle Loans Balance 53925.66537641 37014.90593 19061.12783693
Other Bank Debt Balance 0 0 0
Line of Credit Balance 805880.2553309 1778924.628 3179467.354873
Total Liabilities 965414.1265239 1916129.312 3292827.99798
Equity
Common Stock 386094 386094 386094
Retained Earnings -810857.4253334 -1841377.24 -3296877.688933
Dividends Dispersed/Owners Draw 0 0 0
Total Equity -424763.4253334 -1455283.24 -2910783.688933
Total Liabilities and Equity 540650 460846 382044