562618474.

xlsx

Build a startup financial plan covering the first two years of operation of your small business
Save this file as "YourName Financial Forecast"

You may use information you have collected for you own business idea (the information will be held in
confidence by your instructor), or you may develop an imagined business idea.
Your assignment requires you to pull together information to complete all the sheets in this template. The
numbers you used do not have to be meticulously researched, but deductions may be made for information
that is unreasonable or obviously incomplete.
Follow the lead of the class example "Yes Chef". The example is a business in the food service
industry, so please choose for YOUR business something in a different industry!

Enter your (imagined) Past Purchases

at least 5 items should be included and categorized as Assets or Expenses
The assets should reflect a reasonable lifespan

Complete your proposed financing strategy and your proposed start up costs. Regardless of your true
intentions, you should assume you will get money from yourself, from Futurpreneur and one other source.
State the interest rate or dividend rate on the "other" financing.
Show how you will use the money from each financing source by balancing the cost with invested funds

Prepare two years of cash flows, estimating as best you can what your unit sales, selling prices, variable
and fixed costs will likely be. Make sure to define your selling unit: for a restaurant this could be customers
(average cheque), for a retail store this could be individual items (or cases, or other sale units)

The actual cash flow is irrelevant to your mark (I don't care if you force your cash flow to be positive
or if it's negative). Anyone can make up numbers to indicate what ever result they hope for. Question is:
Is that a realistic forecast? What is important is your analysis of what's going right and wrong with the cash
flow results. You need to make insightful comments about the cash flows. Particularly negative cash flow.
But what is causing the results to be the way they are??

When you prepare your income statement, prepare a vertical analysis of both years and make insightful
comments about what the income statement is telling you. Again, you can create any scenario you want,
but you should be able to explain how the income statement shows you the factors that are causing your
success or your lack of success (which might just be start up issues)

Review your financial ratios and comment on the business's year to year performance as well as discussing
any sucesses or challenges shown by the profitability, efficiency, leverage and liquidity ratios. QUESTION
the results! What is causing poor results? If results are fantastic, question your sales and cost assumptions

Marks
Marking Key Avble Examples of criteria
My Business - Background: Provide a description
Useful in understanding the nature of
of the business (no marketing superlatives about 5%
the business and its financial needs
you or your product, please)
Mix of exp and assets; realistic life; not
Past purchases 10%
operations costs
Complete; lifespans, loans allocated as
Step 1 Start up costs 15% intended, consistent with other
schedules. Reasonable startup funds

Completeness, reasonable figures,

Step 2 Cash Flow - Yr 1 20%
useful analysis of cashflow implications

Completeness, reasonable figures,

Step 3 Cash Flow - Yr 2 15%
useful analysis of cashflow implications

Insightful comments supporting of

Step 4 Income Statement 15%
operating results and vertical analysis
Updated A/R, Inventory and debt
Step 5 Financial Review 20% amounts (can be made up) insightful
horizontal analysis and ratios
Total 100%

Assignment 4 Overview
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Cash-flow Guidelines
You would like to take advantage of your business idea and raise cash from potential investors

The sheets are protected from alteration. This can be changed at any time if you need to make changes by using the Review
menu. Select "Unprotect Sheet"

The data in this cell comes from another sheet. You should not
Many cells are colour coded: change these cell unless absolutely sure. The cell is locked.

The cell contains a formula from elsewhere in the sheet. You

should not change these cell unless absolutely sure. The cell is
locked.

The cell is expecting input from you. If you do not have anything
to put in this cell, leave it blank

Highlights information such as important totals

Highlights information such as important totals

If you want to change the formula of a locked cell (e.g., if you find an error in the worksheets or you believe the cell is wrong,
you can use the Review Menu/Unprotect Sheet)

Please highlight any changed cells: (Home/Border Tool: More Borders)

PAST PURCHASES
To test out some of your ideas, you will probably have paid for some goods and services that have been used (expenses) or
will have continuing value (assets). List the items here.

STEP 1 - START UP COSTS

You are planning to approach Futurpreneur to a loan (up to $20,000; 2021 figures) and hope to be introduced to the BDC to
get up to $40,000 more. You have managed to scrape together $xx,000 of your own funds (including some cash from your
family). If you have some other arrangements, list them too

Lifespan of 1 year means an item's value has been realized. It can be expensed in year 1

Lifespan of 0 years means it is not an expensable item in the near future

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For this assignment, you should create at least one "Other " source of funding in addition to the funds you will request from
BDC and Futurpreneur. Assume you will be borrowing some money from these three sources and chipping in some money
of your own. The amounts you are requesting can be any amount. if you don't need much, you don't need to borrow the
maximums.

The Balance Check ensures that all funding sources have been allocated to the various assets. If this column is not in
balance, then the assets and their funding are not properly matched.

STEP 2 - CASH FLOW - YR1

CASH INFLOWS

Sales Assumptions - first estimate the unit sales you expect from all your lines of business. Define your unit of sales and
below, come up with the average price you will sell the items for. To make this manageable, if you have a wide range of
products, you could divide them up by selling price (category 1 is the items priced from $.25 to $1.99; category 2 is items
from $2 to $4.99 etc.) Break your offerings down into no more than four categories. Few businesses have a single product
with one selling price and one cost price. I expect at least 2 or three categories.

Cash from Sales - in this section, indicate the average price we will receive for each type of sale. If the low price items have
a price range from $.25 to $2, try to come up with the average price of a unit from this category. Do the same with the other
categories, if you need more than one category.

Funding Sources - cash flow comes from the previous sheet. All these amounts should be the same.

Note: the extra green areas are for you to use when you identify that there is a shortfall in cash and new money needs to
be raised. If you invest again, put it on the owner line. Otherwise use the new funding line. Explain any new funding in
the comments area below.

The total of the above sections gives the net total cash inflows by month. This amount is supposed to cover
all the expenses and provide profits. You will pay yourself in the owner's draw line of the general expenses section.

CASH OUTFLOWS

Variable Costs
Indicate your cost of sales % for each product/service you offer. In the example, an estimate of 30% food cost for the meal
kits, 25% for the education, 20% for business groups, and 35% for cookware sales.
Note that this has just calculated the variable cost percentage - 28%.

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Other variable costs should be included in this section. This is a change from the Futurpreneur model, which doesn't really
make a fixed/variable distinction, except with inventory. All you enter is the estimated % of sales represented by that
particular expense.

General (Fixed) Expenses

Futurpreneur doesn't explicitly use variable and fixed costs, which is a missed opportunity. They are trying to be practical, I
suppose, but it's a less useful approach.

In this section, enter all your fixed expenses - the ones that don't change much from month to month or from one sales level
to another. You can enter an average amount in each month, e.g. as was done for 1st owner's draw or bank charges, or you
can try to predict them
If some of the captions aren't applicable to your business, you may have to rename some of them and/or group some
expenses together

Other Disbursements
This is where you will enter any cash you spend repaying the interest or principal on your loans. You can also use the extra
line to show when you are buying more assets, such as equipment. However, if you do buy more equipment, the
depreciation will not be calculated for you on the income statement.

The bottom section shows the change in cash for the month (inflows-outflows). The chane is added to your opening cash
balance and this becomes the ending balance for the month as well as the opening balance for the following month. The
ending balance is the Cumulative Cash Flow. It should be POSITIVE. A positive balance indicates you have cash to run your
business. A negative means that your business is running an overdraft. If this is acceptable to your bank, i.e., you have
negotiated an overdraft loan agreement and the amount is less than the overdraft limit, then you are OK (though you would
have additional interest expenses following the creation of any overdraft amount). The model does not handle overdrafts,
but you could add a formula or a line for this.

A negative amount without an overdraft means your business is in a negative cash position, which is usually going to be a big
problem. This could be handled in the short term by maybe delaying payments to suppliers but it indicates the need for
added investments by the owner.

At the bottom, enter your comments on the projected cashflow. There's no honour in simply bumping up the sales until
you get a positive cashflow. That's how people trick themselves into starting a doomed business because they wish it made
sense. Here, make comments on what to do about your cashflow, whether it is good or bad. What's causing the situation.
What does it indicate that you should do in the future?

STEP 3 - CASHFLOW YR2

This sheet is basically the same as the previous sheet, but it doesn't need the lines for the original financing or investment.
Another difference is that the Futurpreneur and BDC loans start to come due and interest becomes payable. These amounts
were calculated in the template and may not reflect current Futurpreneur or BDC rates.

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Again, there is room at the bottom for your comments and analysis.

INCOME STATEMENT

This report will tell you more about the profitablity of your business. Losses aren't as urgent as cash shortages, but they
need to be corrected if the business is going to be viable. This statement only looks at the income and expense items - it
ignores asset purchases, loan principal repayment and borrowing. On the other hand, it does account for the use of the
assets through a depreciation charge and the interest on loans. If you are facing a loss currently, ask yourself if the problem
stems from low unit sales? Low selling price? High variable costs and therefore not enough contribution? High fixed
operating costs? High financing costs?
Each one suggests a different solution - make a suggestion as to what's going right and what's going wrong with your
forecasted operations

FINANCIAL REVIEW
This review takes amounts from some of the other worksheets and generates a summarized Balance Sheet and Income
Statement. It compares the first year forecasted amounts (Step 1) to the original plans and to next year's plans (Step 2).
Most of the amounts come from either the Cashflows (like Cash balance, borrowing amounts and fixed assets) or from the
income statement (revenues, expenses, depreciation).

You will need to input or amend several items (Receivables, Inventory, Current liabilities, for example) in order to generate
a realistic Balance Sheet, and therefore to help create a plausible analysis.

The initial year assumes all asset and liability accounts started with a zero balance for calculating ratios. From year 1 to 2,
the average balances are the forecasted actuals for Year 1 and the Year 2 plan.

The key issue with the forecast Balance Sheet is to determine if you need to raise even more capital than you have already
planned for. The Futurpreneur forms require some basic balance sheet information in the Financial Analysis tab.

The Financial Commentary section is where the "rubber hits the road". You should analyze your financial ratios and give a
reasonable explanation for what is good, what is bad, and what you might do to fix the problems.

MARKING KEY
Review this final sheet to understand the key focus areas of this assignment. Good luck!

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The following information explains some of the underlying assumptions of the business that is modelled in the assignment
Briefly describe the basic product or service offered by the business

We are a manufacturer and marketer of custom t-shirts and garments in 3D printing.

Does the business need a fixed place of operation (production, sales, office, storefront)? Briefly describe.

You need a retail store and a production facility. The first location will have a large
production facility to guarantee our daily products
A small office area with computer and office equipment is necessary
the production area will need 3D machines, sewing machines.

Has significant work already been done to develop the idea and has cash been spent on this? Describe briefly.

We buy new equipment, supplies and necessary raw material items.

Paid for management of inventory and accounting advice

Who are the main funding sources (assignment requires you to have personal investment, Futurpreneur, BDC and one other
source)? If you don't need other sources, complete the case as if you would raise money from these sources.

personal invenst $

Briefly explain the important pieces (assets, skills, locations, etc.) of the business that will be needed to make it viable.

In addition to the facilities mentioned above, the sales and marketing necessary to increase our presence and for the client to
better locate us.

4 designers are needed to be able to use my machines to their maximum capacity.

Are there estimates of how much it will cost to provide the products/services to customers?
(rules of thumb -e.g. no more than 30% of sales in restaurant should be food cost - note this is an EXAMPLE only)

cotton and polyester t-shirts $ 25 each

3D printing hour $ 10

How many employees do you expect to have working for you? Provide an estimate of monthly hours and rates.

2 Employes 160 Hrs per month each employ.

Is this business intended to be your main source of income, or is it more of a hobby/interest?

its more a hobby

What is the minimum amount of monthly profit you need to earn from this enterprise for it to be worthwhile?

How long do you think it will take for your business to become profitable?

5 years

Any other information relevant to this exercise?

my back ground is graphic designer

My Business - Background
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Past Purchases - Items already bought for the business

Item Cost Type of purchase - Start-up Life- Expense Yr Expense Yr
Expense or Asset Assets span* 1 2
Machines $ 8,000 Assets $ 8,000 2 $ 4,000 $ 4,000
Furnitures $ 2,000 Assets $ 2,000 2 $ 1,000 $ 1,000
Computers and Office eq $ 2,500 Assets $ 2,500 2 $ 1,250 $ 1,250
Uniform $ 400 Assets $ 400 1 $ 400 $ -
First Month Rent $ 2,000 Expense $ - 1 $ 2,000 $ -
Last Month Rent $ 2,000 Assets $ 2,000 0 $ - $ -
Item 7 $ - Expense $ - 1 $ - $ -
Item 8 $ - Expense $ - 1 $ - $ -
Expense $ - 1 $ - $ -
Expense $ - 1 $ - $ -
Expense $ - 1 $ - $ -
Expense $ - 1 $ - $ -
Expense $ - 1 $ - $ -
Expense $ - 1 $ - $ -
Expense $ - 1 $ - $ -
Expense $ - 1 $ - $ -
Expense $ - 1 $ - $ -
Expense $ - 1 $ - $ -
Expense $ - 1 $ - $ -
Expense $ - 1 $ - $ -
$ - Expense $ - 1 $ - $ -
$ 16,900 Total Cost
Assets $ 14,900 $ 8,650 $ 6,250

* Lifespan notes:
Expenses are goods and services used immediately. They should have a lifespan of 1, meaning they will be expensed in year 1.
Assets should have a lifespan that matchs its useful life. A lifespan of 2 indicates the asset will be used up 1/2 in year 1; the rest in year 2
Assets that will not be expensed in the foreseeable future (e.g., Land or Rent deposits) have a lifespan of 0 - they won’t e expensed at all

Past Purchases
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Start-up Costs Loan Interest Rates Notes

CIBC Prime rate (est) 2.45% Check this rate before continuing
First Month of Futurpreneur Loan
January 2022 Enter your expected start date Futurpreneur Premium 3.75%
i.e., 04/01, is April 1 of the current year Futurpreneur charges Prime +3.75 (according to their model in 2020)
Max $20,000 Max $40,000 BDC Premium 10.05% BDC charges at BDC Floating Base rate (5.05%) + 5% (according to the Futurpreneur model 2020)
Funding Sources Owner Will Futurpreneur BDC Loan Other Funding Other Funding
Futurpreneur Loan Term 5 2-5 years
Contribute Loan Funding Funding Set the term of your anticipated FP loan (first year is interest only)
Amount $60,000 $25,000 $30,000 BDC Loan Term 5 2-5 years Set the term of your anticipated BDC loan (first year is interest only)
Enter "0" if no financing from a particular source Other Funding Set the interest rates charged for your other funding, you must calculate the repayment schedule yourself)
Other Funding Set the interest rates charged for your other funding, you must calculate the repayment schedule yourself)
Balance
Owner Will Futurpreneur BDC Loan Check Lifespan Year 1 Acctg Yr 2+ Acctg
Start-up Item Cost of Item Other Funding Other Funding
Contribute Loan Funding Funding (SHOULD (Yrs) Expense Expense
BE ZERO)
Occupancy Costs (Lease, Mortgage, Leasehold)
Architects drawings 500 500 0 0 1 $ 500 $ -
Bulding improvement cost 20,000 20,000 0 5 $ 4,000 $ 4,000
Legal fees to review documents 3,000 3,000 0 1 $ 3,000 $ -
others 0 $ - $ -
etc… 0 $ - $ -
General Start-up Costs (Describe)
Business Insurance (paid monthly) 100 100 0 1 $ 100 $ -
Business License - Incorp 500 500 0 0 $ - $ -
Equipment & Fixtures 30,000 10,000 10,000 10,000 0 5 $ 6,000 $ 6,000
Office Furniture (desk, filing cabinet) 1,000 1,000 0 5 $ 200 $ 200 Insert new lines in the middle of the ranges
Computer, printer 1,500 1,500 0 2 $ 750 $ 750
other 0 $ - $ -
Accounting System - POS system 400 400 0 1 $ 400 $ -
Accounting Consultation to set up books 1,000 1,000 0 1 $ 1,000 $ -
Legal fees to review contracts 900 900 0 1 $ 900 $ -
Website 1,500 1,500 0 1 $ 1,500 $ -
Other 0 $ - $ -
Past Purchases - Assets 14,900 14,900 0 N/A $ 8,650 $ 6,250 These amounts will be included as depreciation on your income statement
START-UP COST SUBTOTALS 75,300 35,300 10,000 30,000 0 0 $ 27,000 $ 17,200 This is your total startup investment
Starting Inventory (resale products)
T-shirts general design 1,500 1,500 0 0 $ - $ - This is the startup inventory that will be replaced as you sell
T-shirts specific design 1,000 1,000 0 0 $ - $ -
Design 3D 2,000 2,000 0 0 $ - $ -
Team building 0 0 0 $ - $ -
INVENTORY / STOCK SUBTOTALS $4,500 $0 $4,500 $0 $0 $0 $ - $ -
TOTAL START-UP COSTS
START-UP & INVENTORY SUBTOTALS $79,800 $35,300 $14,500 $30,000 $0 $0 $ 27,000 $ 17,200
Available Cash in the Bank
Funds Available for Post Start-up $35,200 $24,700 $10,500 $0 $0 $0 This is the money you have after startup & before cash flow is positive
TOTALS $115,000 $60,000 $25,000 $30,000 $0 $0 $ 27,000 $ 17,200
Percentage Contributions by funding source 100% 52% 22% 26% NA NA 100% This line is informational

STEP 1 - Start Up Costs

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Cash Flow Forecast - Year 1

Month Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Total
Month of Operation 1 2 3 4 5 6 7 8 9 10 11 12
Sales Assumptions (In UNITS, not $)
T-shirts general design 100 120 150 150 200 250 250 300 450 450 500 500 3,420
T-shirts specific design 20 50 65 65 100 135 170 205 205 210 210 210 1,645 explain what the UNIT of Sales is
Design 3D 5 5 9 9 15 15 15 15 20 20 20 20 168
Others -
Cash from Sales ($) Avg Price/U % of sales
T-shirts general design $ 15.00 $ 1,500 $ 1,800 $ 2,250 $ 2,250 $ 3,000 $ 3,750 $ 3,750 $ 4,500 $ 6,750 $ 6,750 $ 7,500 $ 7,500 $51,300 55%
T-shirts specific design $ 20.00 $ 400 $ 1,000 $ 1,300 $ 1,300 $ 2,000 $ 2,700 $ 3,400 $ 4,100 $ 4,100 $ 4,200 $ 4,200 $ 4,200 $32,900 36% Selling price for the units described above
Design 3D $ 50.00 $ 250 $ 250 $ 450 $ 450 $ 750 $ 750 $ 750 $ 750 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $8,400 9%
Others $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $0 0%
Total Cash Sales $ 2,150 $ 3,050 $ 4,000 $ 4,000 $ 5,750 $ 7,200 $ 7,900 $ 9,350 $ 11,850 $ 11,950 $ 12,700 $ 12,700 $92,600 100%
Funding Sources
Owner Will Contribute 60,000 $60,000
Futurpreneur Loan Funding 25,000 $25,000
BDC Loan Funding 30,000 $30,000
Other Funding 1 - $0
Other Funding 2 - $0
New Funding $0
Total Other Cash Inflow $ 115,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $115,000
(A) TOTAL CASH INFLOW $ 117,150 $ 3,050 $ 4,000 $ 4,000 $ 5,750 $ 7,200 $ 7,900 $ 9,350 $ 11,850 $ 11,950 $ 12,700 $ 12,700 $207,600
Cash Outflow % of sales
Variable Costs % of sales % of sales needs to be realistic
T-shirts general design 35% 525 630 788 788 1,050 1,313 1,313 1,575 2,363 2,363 2,625 2,625 $17,955 19%
T-shirts specific design 25% 100 250 325 325 500 675 850 1,025 1,025 1,050 1,050 1,050 $8,225 9%
Design 3D 20% 50 50 90 90 150 150 150 150 200 200 200 200 $1,680 2%
Others 0% - - - - - - - - - - - - $0 0%
Credit card transaction fee (% of sales) 2% 43 61 80 80 115 144 158 187 237 239 254 254 $1,852 2% If you sell for debit and credit, you need an estimate
Royalties or commissions 2% 43 61 80 80 115 144 158 187 237 239 254 254 $1,852 2%
Other 0% - - - - - - - - - - - - $0 0%
Other 0% - - - - - - - - - - - - $0 0%
(B) TOTAL VARIABLE COSTS $ 761 $ 1,052 $ 1,363 $ 1,363 $ 1,930 $ 2,426 $ 2,629 $ 3,124 $ 4,062 $ 4,091 $ 4,383 $ 4,383 $31,564 34%
General Expenses % of sales
1st Owner's draw/salary 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 $12,000 13% unless this is a hobby, you need to pay yourself a decent wage
2nd Owner's draw/salary, if necessary $0 0% if you have a partner
Labour costs - describe - salary wage # employees 1,500 1,500 1,500 1,500 1,500 1,500 1,500 3,000 3,000 3,000 3,000 3,000 $25,500 28% 1 person at $15 /hr = $30,000 /yr plus at least 15-20% for EI, holiday pay, CPP & WSIB. More if you offer other benefits
Legal fees 600 150 150 150 $1,050 1%
Accounting services 400 400 $800 1%
Advertising and promotion 500 500 500 200 200 200 200 200 200 200 200 200 $3,300 4% Try to estimate when your costs are paid, not just annual / 12
Commercial Rent 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 $11,000 12%
Property TMI (Taxes Maintenance Insurance) 250 250 250 250 250 250 250 250 250 250 250 250 $3,000 3% this may be included in the overall rent or split out. If included, then use the line for something else
Utilities 200 200 200 200 200 200 200 200 200 200 200 200 $2,400 3% change these if they don't make sense for you
Business Insurance 135 135 135 135 135 135 135 135 135 135 135 $1,485 2% change these if they don't make sense for you
Bank Charges 25 25 25 25 25 25 25 25 25 25 25 25 $300 0% change these if they don't make sense for you
Office supplies & postage 185 185 185 185 185 185 185 185 185 185 185 185 $2,220 2% change these if they don't make sense for you
Telephone & Internet 250 250 250 250 250 250 250 250 250 250 250 250 $3,000 3% change these if they don't make sense for you
Alarm System 35 35 35 35 35 35 35 35 35 35 35 35 $420 0% change these if they don't make sense for you
List any other expenses appropriate to your business! $0 0% change these if they don't make sense for you
Business Cards 25 25 25 25 25 25 25 25 25 25 25 25 $300 0%
… $0 0%
(C) TOTAL GENERAL EXPENSES $ 4,570 $ 5,105 $ 5,105 $ 4,955 $ 4,805 $ 4,805 $ 4,955 $ 6,305 $ 6,705 $ 6,455 $ 6,705 $ 6,305 $66,775 72%
Other disbursements
TOTAL Start-up Costs 79,800 $79,800
Futurpreneur Loan Funding - Int Pmt + $15 mthly fee 144 144 144 144 144 144 144 144 144 144 144 144 $1,730 2% Interest only - estimated for you
Futurpreneur Loan Funding - Principal Payment - - - - - - - - - - - - $0 first year is $0 repayment
BDC Loan Funding - Interest Payment 313 313 313 313 313 313 313 313 313 313 313 313 $3,750 4% Interest only - estimated for you
BDC Loan Funding - Principal Payment - - - - - - - - - - - - $0 first year is $0 repayment
Other Funding 1 and 2 - Interest Payment $0 0% Your outside investors need to be repaid too
Other Funding 1 and 2 - Principal Payment $0 Your outside investors need to be repaid too
Other $0
(D) TOTAL OTHER DISBURSEMENTS $ 80,257 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $85,280
(E) TOTAL CASH OUTFLOW (B+C+D) $ 85,588 $ 6,614 $ 6,924 $ 6,774 $ 7,192 $ 7,687 $ 8,040 $ 9,886 $ 11,223 $ 11,002 $ 11,545 $ 11,145 $183,619 198%

(F) NET CASH-FLOW (A-E) $ 31,562 $ (3,564) $ (2,924) $ (2,774) $ (1,442) $ (487) $ (140) $ (536) $ 627 $ 948 $ 1,155 $ 1,555 $23,981 26% negative cash flow indicates you spent more in the month than your received

(G) CASH FROM PREVIOUS PERIOD $ - $ 31,562 $ 27,999 $ 25,075 $ 22,300 $ 20,859 $ 20,372 $ 20,231 $ 19,696 $ 20,323 $ 21,270 $ 22,426 $0 openng cash balance

(H) CUMULATIVE CASH-FLOW (F+G) $31,562 $27,999 $25,075 $22,300 $20,859 $20,372 $20,231 $19,696 $20,323 $21,270 $22,426 $23,981 $23,981 26% This ending balance for cash should never be zero or less. It means you have run out of money.
(F) Net cash flow is composed of: You may need new investments or overdraft agreement (for small, occasional negatives)
Operating Cash Flow - from Sales and Expenses $ (2,181) $ (2,107) $ (1,468) $ (1,318) $ 15 $ 970 $ 1,317 $ 921 $ 2,084 $ 2,405 $ 2,612 $ 3,012 $6,261 7%
Financing and Investing Cash Flows $ 33,743 $ (1,457) $ (1,457) $ (1,457) $ (1,457) $ (1,457) $ (1,457) $ (1,457) $ (1,457) $ (1,457) $ (1,457) $ (1,457) $17,720 19%
Commentary:
Explain what you have learned from this exercise What insights do you have from preparing this report?
Does your cash flow dip into negatives? Yes / No If Yes, how are you going to solve it? If no, to what do you attribute your success?
Does your cash flow meet your expectations? Yes / No Explain:
Are there any issues that need to be addressed?

STEP 2 - Cashflow - Yr1

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Cash Flow Forecast - Year 2

Month Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Total
Month of Operation 13 14 15 16 17 18 19 20 21 22 23 24
Sales Assumptions (In UNITS, not $)
T-shirts general design 550 500 600 650 750 800 800 860 800 950 1,500 1,500 10,260
T-shirts specific design 300 200 350 380 420 200 450 400 450 450 500 600 4,700
Design 3D 20 10 22 25 10 20 18 30 21 20 26 25 247
Others -
Cash from Sales ($) Avg Price/U % of sales
T-shirts general design $ 17.99 $ 9,895 $ 8,995 $ 10,794 $ 11,694 $ 13,493 $ 14,392 $ 14,392 $ 15,471 $ 14,392 $ 17,091 $ 26,985 $ 26,985 $184,577 58%
T-shirts specific design $ 24.99 $ 7,497 $ 4,998 $ 8,747 $ 9,496 $ 10,496 $ 4,998 $ 11,246 $ 9,996 $ 11,246 $ 11,246 $ 12,495 $ 14,994 $117,453 37%
Design 3D $ 55.00 $ 1,100 $ 550 $ 1,210 $ 1,375 $ 550 $ 1,100 $ 990 $ 1,650 $ 1,155 $ 1,100 $ 1,430 $ 1,375 $13,585 4%
Others $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $0 0%
Total Cash Sales $ 18,492 $ 14,543 $ 20,751 $ 22,565 $ 24,538 $ 20,490 $ 26,628 $ 27,117 $ 26,793 $ 29,436 $ 40,910 $ 43,354 $315,615 100%
Owner's Investment
New Investments Required 10,000 5,000 $15,000
$0
Total Other Cash Inflow 0 10,000 0 0 0 5,000 0 0 0 0 0 0 $15,000
(A) TOTAL CASH INFLOW 18,492 24,543 20,751 22,565 24,538 25,490 26,628 27,117 26,793 29,436 40,910 43,354 $330,615
CASH OUTFLOW
VARIABLE COSTS % of sales
T-shirts general design 40% $ 3,958 $ 3,598 $ 4,318 $ 4,677 $ 5,397 $ 5,757 $ 5,757 $ 6,189 $ 5,757 $ 6,836 $ 10,794 $ 10,794 $73,831
T-shirts specific design 25% $ 1,874 $ 1,250 $ 2,187 $ 2,374 $ 2,624 $ 1,250 $ 2,811 $ 2,499 $ 2,811 $ 2,811 $ 3,124 $ 3,749 $29,363
Design 3D 20% $ 220 $ 110 $ 242 $ 275 $ 110 $ 220 $ 198 $ 330 $ 231 $ 220 $ 286 $ 275 $2,717
Others 0% $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $0
Credit card transaction fee (% of sales) 2% 370 291 415 451 491 410 533 542 536 589 818 867 $6,312 2%
Royalties or commissions 0% - - - - - - - - - - - - $0 0%
Sales packaging and shipping 2% 370 291 415 451 491 410 533 542 536 589 818 867 $6,312 2%
Other - - - - - - - - - - - - $0 0%
(B) TOTAL VARIABLE COSTS $ 6,792 $ 5,539 $ 7,576 $ 8,229 $ 9,112 $ 8,046 $ 9,831 $ 10,102 $ 9,871 $ 11,045 $ 15,840 $ 16,552 $118,536 38%
FIXED COSTS % of Sales
1st Owner's draw/salary 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 $12,000 4%
2nd Owner's draw/salary, if necessary $0 0%
Labour costs - describe - salary wage # employees 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 $36,000 11%
Legal fees 600 150 150 150 $1,050 0%
Accounting services 400 400 $800 0%
Advertising and promotion 200 200 200 200 200 200 200 200 200 200 200 200 $2,400 1%
Commercial Rent 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 $12,000 4%
Property TMI (Taxes Maintenance Insurance) 250 250 250 250 250 250 250 250 250 250 250 250 $3,000 1%
Utilities 200 200 200 200 200 200 200 200 200 200 200 200 $2,400 1%
Business Insurance 135 135 135 135 135 135 135 135 135 135 135 135 $1,620 1%
Bank Charges 25 25 25 25 25 25 25 25 25 25 25 25 $300 0%
Office supplies & postage 185 185 185 185 185 185 185 185 185 185 185 185 $2,220 1%
Telephone & Internet 250 250 250 250 250 250 250 250 250 250 250 250 $3,000 1%
Alarm System 35 35 35 35 35 35 35 35 35 35 35 35 $420 0%
List any other expenses appropriate to your business! $0 0%
Business Cards 25 25 25 25 25 25 25 25 25 25 25 25 $300 0%
… $0 0%
(C) TOTAL FIXED EXPENSES $ 6,905 $ 6,305 $ 6,305 $ 6,455 $ 6,305 $ 6,305 $ 6,455 $ 6,305 $ 6,705 $ 6,455 $ 6,705 $ 6,305 $77,510 25%
Financing and Investing Costs
Start-up Costs $0 0%
Futurpreneur Loan Funding - Int Pmt + $15 mthly fee 141 139 136 133 131 128 125 123 120 117 115 112 $1,520 0%
Futurpreneur Loan Funding - Principal Payment 521 521 521 521 521 521 521 521 521 521 521 521 $6,250
BDC Loan Funding - Interest Payment 306 299 293 286 280 273 267 260 254 247 241 234 $3,242 1%
BDC Loan Funding - Principal Payment 625 625 625 625 625 625 625 625 625 625 625 625 $7,500
Other Funding 1 and 2 - Interest Payment $0 0%
Other Funding 1 and 2 - Principal Payment $0
Repayment of other loans or purchases of assets $0
(D) TOTAL FINANCING/INVESTING COSTS $ 1,593 $ 1,584 $ 1,575 $ 1,566 $ 1,556 $ 1,547 $ 1,538 $ 1,529 $ 1,520 $ 1,510 $ 1,501 $ 1,492 $ 18,512
(E) TOTAL CASH OUTFLOW (B+C+D) $ 15,290 $ 13,428 $ 15,456 $ 16,250 $ 16,974 $ 15,898 $ 17,824 $ 17,936 $ 18,096 $ 19,011 $ 24,046 $ 24,349 $ 214,558

(F) NET CASH-FLOW (A-E) $ 3,201 $ 11,115 $ 5,294 $ 6,315 $ 7,564 $ 9,592 $ 8,803 $ 9,181 $ 8,697 $ 10,425 $ 16,864 $ 19,005 $116,057 37%

(G) CASH FROM PREVIOUS PERIOD $ 23,981 $ 27,182 $ 38,297 $ 43,592 $ 49,907 $ 57,471 $ 67,063 $ 75,866 $ 85,047 $ 93,744 $ 104,169 $ 121,033 $23,981

(H) CUMULATIVE CASH-FLOW (F+G) $ 27,182 $ 38,297 $ 43,592 $ 49,907 $ 57,471 $ 67,063 $ 75,866 $ 85,047 $ 93,744 $ 104,169 $ 121,033 $ 140,038 $140,038 44%

(F) Net cash flow is composed of:

Operating Cash Flow - from Sales-Expenses $ 4,795 $ 2,699 $ 6,869 $ 7,881 $ 9,121 $ 6,139 $ 10,341 $ 10,710 $ 10,217 $ 11,936 $ 18,365 $ 20,497 $119,570 38%
Financing and Investing Cash Flows $ (1,593) $ 8,416 $ (1,575) $ (1,566) $ (1,556) $ 3,453 $ (1,538) $ (1,529) $ (1,520) $ (1,510) $ (1,501) $ (1,492) ($3,512) -1%

Commentary:
Explain what you have learned from this exercise
Does your cash flow dip into negatives?
Does your cash flow meet your expectations?
Are there any issues that need to be addressed?
What insights do you have from preparing this report?
Yes / No If Yes, how are you going to solve it?
Yes / No Explain:

STEP 3 - Cashflow - Yr2

 562618474.xlsx

Projected Income Statement Vertical Analysis

Year 1 Year 2 Year 1 Year 2
Revenues
Sales
T-shirts general design 51,300 184,577 55.4% 58.5%
T-shirts specific design 32,900 117,453 35.5% 37.2%
Design 3D 8,400 13,585 9.1% 4.3%
Others 0 0
(A) Total Sales $92,600 $315,615 * 100.0% 100.0%
Variable Costs
T-shirts general design 17,955 73,831 56.9% 62.3%
T-shirts specific design 8,225 29,363 26.1% 24.8%
Design 3D 1,680 2,717 5.3% 2.3%
Others 0 0 0.0% 0.0%
Credit card transaction fee (% of sales) 1,852 6,312 5.9% 5.3%
Royalties or commissions 1,852 0 5.9% 0.0%
Sales packaging and shipping 0 6,312 0.0% 5.3%
(B) Total Variable Costs $31,564 $118,536 * 51.7% 60.1%
(C) CONTRIBUTION MARGIN (A-B) $61,036 $197,080
Fixed Expenses
General Expenses
Owner's Draws/salaries 12,000 12,000 18.0% 15.5%
Labour costs - describe - salary wage # employees 25,500 36,000 38.2% 46.4%
Legal fees 1,050 1,050 1.6% 1.4%
Accounting services 800 800 1.2% 1.0%
Advertising and promotion 3,300 2,400 4.9% 3.1%
Commercial Rent 11,000 12,000 16.5% 15.5%
Property TMI (Taxes Maintenance Insurance) 3,000 3,000 4.5% 3.9%
Utilities 2,400 2,400 3.6% 3.1%
Business Insurance 1,485 1,620 2.2% 2.1%
Bank Charges 300 300 0.4% 0.4%
Office supplies & postage 2,220 2,220 3.3% 2.9%
Telephone & Internet 3,000 3,000 4.5% 3.9%
Alarm System 420 420 0.6% 0.5%
List any other expenses appropriate to your business! 0 0 0.0% 0.0%
Business Cards 300 300 0.4% 0.4%
… 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%
(D) TOTAL GENERAL EXPENSES $66,775 $77,510 * 100.0% 100.0%
Other Non-Operating (Financing Expenses)
Depreciation of Start up Costs 27,000 17,200 **
Futurpreneur Loan Funding - Int Pmt + $15 mthly fee 1,730 1,520 *
BDC Loan Funding - Interest Payment 3,750 3,242 *
Other Funding 1 and 2 - Interest Payment 0 0 *
Other
(E) TOTAL FINANCING EXPENSES $32,480 $21,962
(F) TOTAL EXPENSES (D+E) $99,255 $99,472

NET PROFIT BEFORE TAX (C-F) -$38,219 $97,607

Income Tax (est. 15% ON) $0 -$14,641
NET PROFIT AFTER TAX -$38,219 $82,966

* should match Step 2 and 3 - the amounts appear in the total column
** should match Step 1 Year 1 and Year 2 Accounting Expense (table at right)
Comment: What does the income statement & vertical analysis tell you about your profitability? What are the positives &
negatives? What does this statement tell you?
Enter your comments here, and add lines as needed

Step 4 - Income Statement

MGMT4042 562618474.xlsx

Financial Review
Summarize your financial performance in
Integrate your findings into your projection for next year's financial plan.
comparison to your original plan.

As at: Current year's (Yr1) Next year's (Yr2) Year to Year Chg
Forecasted Next year to
Jun-17 Actual (end) Plan Plan Variance Plan Current Act
Balance sheet
Cash $ 23,981 $ 1 $ 23,980 $ 140,038 484.0%

Receivables - enter from acctg records 25,763 25,763 -100.0%

Inventory enter from acctg records 7,646 7,646 -100.0%

Total current assets 57,390 1 57,389 140,038 144.0%
Long-term Assets

Property, plant, equipment 48,300 48,300 - 31,100 -35.6%

Other assets - N/A

Total assets $ 105,690 $ 48,301 $ 57,389 $ 171,138 61.9%

Current liabilities $ 6,052 $ 6,052 -100.0%

Long term liabilities 55,000 $ 55,000 - 41,250 -25.0%

Equity (forced figure) 44,637 (6,699) 51,336 129,888 191.0%
Total liabilities and equity $ 105,690 $ 48,301 $ 57,389 $ 171,138 61.9%

Income statement
Sales Revenue $ 92,600 $ 92,600 $ 315,615 240.8%
Variable Costs 31,564 (31,564) 118,536 275.5%
Contribution Margin 61,036 61,036 197,080 222.9%
Operating Expenses
Op Expenses excl. Depreciation 66,775 (66,775) 77,510 16.1%
Depreciation 27,000 (27,000) 17,200 -36.3%
Operating Income (EBIT) (32,739) - (32,739) 102,370 412.7%
Interest/financing fees 5,480 (5,480) 4,762 -13.1%
Income Before Tax (EBT) (38,219) - (38,219) 97,607 355.4%
Income Taxes (15% of positive EBT) - - - 14,641 N/A
Net income $ (38,219) $ - $ (38,219) $ 82,966 317.1%

Net cash flow from operations (see notes) $ (38,575) $ - $ (38,575) $ 11,465 129.7%

Financial ratios Forecast Act Plan Potential Questions Next Year Plan

- Are your products properly

Gross (contribution) margin 65.9% priced to cover your operating 62.4% Profitability
costs?

- Does the business make an

Operating Margin -35.4% adequate return before financing 32.4% Profitability
costs and taxes?
- Is this an adequate &
Net margin -41.3% sustainable amount of 26.3% Profitability
profitability?

- Are your shareholders receiving

Return on Equity (use average Equity) -171.2% 0.0% an adequate return on their 95.1% Profitability
investment in the company?

- Are the assets generating a

Return on Assets (use Average Assets) -62.0% 0.0% reasonable level of sales?
59.9% Efficiency

- Are your collecting your

Average Collection Period (Use Avg A/R) 50.77 N/A revenues in a timely manner?
N/A Efficiency

Average Days in Inventory (use Avg Inv) 44.21 N/A - Is the turnover too high or low? N/A Efficiency
- Does your business have
Current Ratio 9.48 enough liquidity to cover your Liquidity
short term liabilities?
- Does your business have
enough cash to meet any short
Quick ratio 8.22 term liabilities that may be due Liquidity
soon?

Step 5 - Financial Review Page 12 of 17

MGMT4042 562618474.xlsx

- Does the business use debt

responsibly to enhance
Debt to Equity Ratio 1.37 -8.21 shareholder wealth or does it
0.32 Leverage
borrow excessively?

Step 5 - Financial Review Page 13 of 17

MGMT4042 562618474.xlsx

Financial Comment on the results that you see above

Commentary What actions should management prioritize?
My Horizontal analysis is….

My Budget to actual analysis is…

My Analysis of profitability ratios is…

My Analysis of efficiency ratios reveals…

My Analysis of liquidity ratios is…

My Analysis of leverage ratios is…

Notes: -the current year is the first year of operations, so all asset, liability and equity accounts began the year at a zero balance.
- Net Cash Flow is Net Income plus Depreciation plus a decrease in working capital during the year. A decrease in working capital occurs when Current Assests minus
Current Liabilities is less than at the beginning of the period. (If working capital increased in the year, deduct the amount of the change).

Step 5 - Financial Review Page 14 of 17

MGMT4042 562618474.xlsx

Cash-flow Guidelines
This template is based on and mostly adapted from, but not identical to, the Futurpreneur cash flow forecast model.

Figures you input are based on your experience, research and business activity estimates.

The cash-flow template is divided into several parts to simplify the cash-flow creation. You can revisit and adjust your figures as you adjust your plan, but it is best to start working in order
from start-up, to year one then year two cash-flow projections. The sheets are protected so you can only add information into the green cells. Yellow cells show data you entered on a
previous sheet.

If you have already incurred business expenses add these to the Past Purchase form. If you have not made any purchases yet skip the past purchases step.
If you have prepared this cash-flow using the Futurpreneur Canada online business plan writer, there are a few items you will want to review and edit as you finalize your cash-flow.
When using the Interactive business plan writer, Start-up - Inventory / Stock / Products costs will be grouped together as a single cost and not separated by inventory type or product price
ranges. You may need to organize these costs by inventory type or price ranges to better demonstrate your initial Inventory / Stock / Products costs. We recommend you limit the categories
to 3 - 4 at a maximum.

Sales Assumptions, Cash Sales and Inventory Costs on the Year One & Two Cash-Flows will not be broken down by inventory items, costing or services. You may need to separate the prices
shown in the cash-flow by organizing them into inventory types, price ranges or service categories. This will show your sales and expenses assumptions more clearly. We suggest you start by
organizing the Sales Assumptions first and do not use more than 3 or 4 different categories for cash-flows on year one and year two.

In the income statement and financial analysis tabs, you may need to ensure that you are capturing all your expenses, especially if you added new lines to any of the models. In the income
statement you will find that the start up costs are being added based on their lifespans.
Resources:
See the Glossary - Business Terms and Definitions for basic descriptions of terms and concepts.
Futurpreneur Financing guidelines and loan details can be found on the Financing Guidelines tab and the Futurpreneur Canada website.
The Projected Income Statement is filled in automatically when you complete the year 1 and 2 cash-flows. The Income Statement will give you insight into the overall progress of the business.
Visit our resource website for assistance with financial planning at:
http://www.futurpreneur.ca/en/resources/operational-and-financial-planning/

Notes-Futurpreneur base tmplte Page 15 of 17

MGMT4042 562618474.xlsx

Notes-Futurpreneur base tmplte Page 16 of 17

MGMT4042 UPDATED MARKING KEY + ADVICE ASSIGNMENT 4

My Business - Background 0
Does the description indicate the student understands what the assignment requires? 2
Does the description indicate the student understands the keys to successfully operating this business? 2
Are the above areas completed in a reasonable manner? 1 Total - 5

Past Purchases
Reasonable number of items (at least 5) with dollar amounts 3
Evidence of business-specific items added by student 3
All allocated to Assets or Expense appropriately? Lifespan for all items (Exp =1) and reasonable? 2
Does the plan provide for adequate cashflow? 2 - 10

Step 1 Start up costs

Indicates funding from Owner, Futurpreneur BDC and one more and loans are matched to line items 3
Has included a reasonable number of items (min. 10) of startup costs 3

Evidence of business-specific items added by student, that are truly "startup" costs 3
Start up costs have reasonable lifespans 3

The startup costs and funding are matched 3 Total - 15

Step 2 Cashflow Year 1

Are unit sales indicated by month for the year? Is there a pattern of growth? 2
Cash expenses indicated based on fixed and variable splits. New variable costs entered specific to business? 2
Variable costs calculated by % of sales appear reasonable 2
Fixed costs indicated on each month - do they reflect Cash Flow v. Exp.? 2
Does the cashflow include business-specific expenditures? 2
Does the student's analysis indicate an understanding of operating cash flow? 5
Does the analysis show insight into the issues raised by the cash flow? 5 Total - 20

Step 3 Cashflow Year 2

Unit sales indicated by month for the year 1
Does year 2 indicate any new conditions (rising sales, rising costs) 1
Variable costs calculated by % of sales 1
Does the cashflow include business-specific expenditures? 1
Is the owner being paid? 1
Does the student's analysis indicate an insights into the second year of operation 5
Does the analysis show insight into the issues raised by the cash flow? 5 Total - 15

Step 4 - Income Statement

Does the analysis match the income statement information? 5
Does the analysis indicate understanding of othe interaction of S, VC and FC 2
Was a break even analysis attempted? Are the sales requirements reasonable? 3
Was there an attempt to explain the results (positive or negative)? 5 - 15

Step 5 - Financial Analysis

Were missing items entered (A/R, Inventory, Current and long term debt?) 1
Are amounts entered reasonable in circumstances 2
Does the analysis of horizontal analysis indicate proper calculations and meaningful discussion 2
Does the analysis of budget to actuals indicate proper calculations and meaningful discussion 2
Does the analysis of profitablility ratios indicate proper calculations and meaningful discussion 2
Does the analysis of efficiency ratios indicate proper calculations and meaningful discussion 2
Does the analysis of liquidity ratios indicate proper calculations and meaningful discussion 2
Does the analysis of leverage ratios indicate proper calculations and meaningful discussion 2
Is there an insightful discussion that shows student understands impact of the statements and unusual items? 3
Are action items indicated? 2 Total - 20

Total - 100

562618474.xlsx Marking Key NAME________________ Page 17 of 17