Balance Sheet

end of Year 0 Year 1

ASSETS
Current Assets
Cash at Bank $5,000 $19,624
Inventory $5,000 $5,000
Accounts Receivable
Total Current Assets $10,000 $24,624

Fixed Assets
Gross PP&E $45,000 $45,000
Less: Depreciation & Amortization -$6,833
Total Fixed Assets $45,000 $38,167

TOTAL ASSETS $55,000 $62,791

LIABILITIES
Current Liabilities
Accounts Payable $0 $0
Total Current Liabilities $0 $0

Long Term Liabilities

Bank Loan $30,000 $30,000
Total Long Term Liabilities $30,000 $30,000

EQUITY
Owner's Funds $25,000 $25,000
Retained Earnings $7,791
TOTAL EQUITY $25,000 $32,791

TOTAL LIABILITIES & EQUITY $55,000 $62,791

error check $0 $0

See Chapter 10 of
Financial Modeling in
Excel for Dummies.
Sources of Funds
Borrowed from the Bank $30,000
Equity raised $25,000
Total sources of funds $55,000

Uses of Funds
Working Cash $5,000
Working Inventory $5,000
Coffee Machine $10,000
Furniture & Fixtures $35,000
Total uses of funds $55,000
Scenario: Best

Forecast P&L
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Revenue $7,814 $7,992 $9,768 $7,992 $11,233 $11,189 $11,722 $10,745 $8,880 $8,880 $8,791 $6,749 $111,755

Staff Costs $5,208 $5,208 $5,208 $5,208 $5,208 $5,208 $5,208 $5,208 $5,208 $5,208 $5,208 $5,208 $62,500
Other Costs $2,250 $2,272 $2,488 $2,272 $2,666 $2,661 $2,726 $2,607 $2,380 $2,380 $2,369 $2,121 $29,192
Total Expenses $7,459 $7,480 $7,696 $7,480 $7,875 $7,869 $7,934 $7,815 $7,588 $7,588 $7,578 $7,329 $91,692

EBITDA $356 $512 $2,072 $512 $3,359 $3,320 $3,788 $2,930 $1,292 $1,292 $1,214 -$580 $20,063

Depreciation & Amortization (D&A) Expense $569 $569 $569 $569 $569 $569 $569 $569 $569 $569 $569 $569 $6,833
EBIT -$214 -$58 $1,502 -$58 $2,789 $2,750 $3,218 $2,360 $722 $722 $644 -$1,150 $13,230

Interest $175 $175 $175 $175 $175 $175 $175 $175 $175 $175 $175 $175 $2,100
EBT -$389 -$233 $1,327 -$233 $2,614 $2,575 $3,043 $2,185 $547 $547 $469 -$1,325 $11,130

Tax -$117 -$70 $398 -$70 $784 $773 $913 $656 $164 $164 $141 -$397 $3,339
Net Income -$272 -$163 $929 -$163 $1,830 $1,803 $2,130 $1,530 $383 $383 $328 -$927 $7,791

Forecast Cashflow

Pre-Open Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Opening Cash $5,000 $5,297 $5,704 $7,202 $7,609 $10,008 $12,380 $15,080 $17,179 $18,132 $19,084 $19,982
Cash flow from Operations
Net Income -$5,000 -$272 -$163 $929 -$163 $1,830 $1,803 $2,130 $1,530 $383 $383 $328 -$927
+ D&A (non-cash) $569 $569 $569 $569 $569 $569 $569 $569 $569 $569 $569 $569
- increase in inventory
- increase in accounts receivable
+ increase in accounts payable

Cash flow from Investment

Capital expenditure -$45,000

Cash flow from Financing

Bank loan $30,000
Capital raised $25,000
Paydown of Debt

Closing Cash $5,000 $5,297 $5,704 $7,202 $7,609 $10,008 $12,380 $15,080 $17,179 $18,132 $19,084 $19,982 $19,624
Expenses

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Staff Costs
Barista Salary $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167
Other Staff Costs and Benefits $1,042 $1,042 $1,042 $1,042 $1,042 $1,042 $1,042 $1,042 $1,042 $1,042 $1,042 $1,042
Total Staff costs $5,208 $5,208 $5,208 $5,208 $5,208 $5,208 $5,208 $5,208 $5,208 $5,208 $5,208 $5,208

Rent $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Utilities $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Consumables $950 $972 $1,188 $972 $1,366 $1,361 $1,426 $1,307 $1,080 $1,080 $1,069 $821
Total Other Costs $2,250 $2,272 $2,488 $2,272 $2,666 $2,661 $2,726 $2,607 $2,380 $2,380 $2,369 $2,121

Total Costs $7,459 $7,480 $7,696 $7,480 $7,875 $7,869 $7,934 $7,815 $7,588 $7,588 $7,578 $7,329

Depreciation & Amortization (D&A) Schedule

Purchase Price Useful Life Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Coffee Machine $10,000 3 $278 $278 $278 $278 $278 $278 $278 $278 $278 $278 $278 $278
Furniture & Fixtures $35,000 10 $292 $292 $292 $292 $292 $292 $292 $292 $292 $292 $292 $292
Total D&A expense $569 $569 $569 $569 $569 $569 $569 $569 $569 $569 $569 $569
Revenue

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Unit Sales Forecast 2640
Cups of coffee sold per day 96 108 120 120 132 144 144 132 120 120 108 96
Large 38 43 48 48 53 58 58 53 48 48 43 38
Small 58 65 72 72 79 86 86 79 72 72 65 58
Total 96 108 120 120 132 144 144 132 120 120 108 96
error check - - - - - - - - - - - -

$ Sales Forecast
Large Sales per day $154 $173 $192 $192 $211 $230 $230 $211 $192 $192 $173 $154
Small Sales per day $202 $227 $252 $252 $277 $302 $302 $277 $252 $252 $227 $202
Daily Sales $355 $400 $444 $444 $488 $533 $533 $488 $444 $444 $400 $355
Monthly Sales $7,814 $7,992 $9,768 $7,992 $11,233 $11,189 $11,722 $10,745 $8,880 $8,880 $8,791 $6,749

Number of Cups Sold

160

140

120

100

80

60

40

20

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Scenarios For detailed instructions of how to complete
Worst Base Best these Integrated Financial Statements, see
Chapter 10 of Financial Modeling in Excel for
Cups per Day Dummies.
Rent

Assumptions
Revenue Assumptions

Average no Cups sold per day 120

% of units Price
Large 40% $4.00
Small 60% $3.50

Expense Assumptions

Consumables per cup $0.45

Consumables have been calculated on average for large and small cups

Barista Salary $50,000

Other Staff Costs and Benefits 25%

Monthly Rent $1,200

Monthly Utilities $100

Interest rate 7%
Income Tax 30%
All GST, VAT or sales tax is excluded for the purposes of this model

Other Assumptions
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Number of business days per month 22 20 22 18 23 21 22 22 20 20 22 19
Based on past year calendar
Seasonality Variance (% of ann avg) 80% 90% 100% 100% 110% 120% 120% 110% 100% 100% 90% 80%
Based on historical demand data