[Company Name]

5-Year Financial Plan—Manufacturing

Model inputs and investor scenario

Enter data in white cells only.

Italicized numbers in gray cells are calculations that should not be overwritten.
Non-italicized numbers in gray cells are calculations that can be overwritten.

General notes and assumptions

[Document key financial planning assumptions here.]

Year 1 model inputs

Use this area to capture key components of the Profit and Loss Statement and the Balance Sheet for the first year only.

1. Year-one revenue expectancy

<Product 1> <Product 2> <Product 3> <Product 4>
Number of units sold annually 2,800 1,200 1,600 0
Average sales price per unit $120.00 $80.00 $40.00 $0.00
Annual revenue per product $336,000 $96,000 $64,000 $0

Total year 1 revenue $496,000

2. Year 1 cost of goods sold

<Product 1> <Product 2> <Product 3> <Product 4>
Expected gross margin per product 50.00% 40.00% 25.00% 0.00%
Annual cost of goods sold per product $168,000 $38,400 $16,000 $0

Total year 1 cost of goods sold $222,400

3. Annual maintenance, repair, and overhaul

Factor (%) on capital equipment 15%

4. Number of years for straight-line depreciation 5

5. Annual tax rate 30%

6. If long-term debt is being used to finance $80,000

operations, enter the total loan value.
[Company Name]
5-Year Financial Plan—Manufacturing
Profit and loss projections

Year-by-year profit and loss assumptions

Year 1 Year 2 Year 3 Year 4 Year 5
Annual cumulative price (revenue) increase - 2.00% 4.00% 6.00% 8.00%
Annual cumulative inflation (expense) increase - 2.00% 4.00% 6.00% 8.00%
Interest rate on ending cash balance 0.50% 0.50% 0.50% 0.50% 0.50%

Year 1 Year 2 Year 3 Year 4 Year 5

Revenue
Gross revenue $496,000 $505,920 $526,157 $557,726 $602,344
Cost of goods sold 222,400 226,848 235,922 250,077 270,083
Gross margin $273,600 $279,072 $290,235 $307,649 $332,261

Other revenue [source] $0 $0 $10,000 $0 $0

Interest income $1,000 $0 $0 $0 $0
Total revenue $274,600 $279,072 $300,235 $307,649 $332,261

Operating expenses
Sales and marketing $40,000 $40,800 $42,432 $44,978 $48,576
Payroll and payroll taxes 60,000 $61,200 $63,648 $67,467 $72,864
Depreciation 40,000 40,800 41,600 42,400 43,200
Insurance 40,000 $40,800 $42,432 $44,978 $48,576
Maintenance, repair, and overhaul 15,000 15,300 15,600 15,900 16,200
Utilities 30,000 $30,600 $31,824 $33,733 $36,432
Property taxes 15,000 $15,300 $15,912 $16,867 $18,216
Administrative fees 18,000 $18,360 $19,094 $20,240 $21,859
Other 4,000 $4,080 $4,243 $4,498 $4,858
Total operating expenses $262,000 $267,240 $276,786 $291,061 $310,782

Operating income $12,600 $11,832 $23,449 $16,588 $21,479

Interest expense on long-term debt 3,590 2,866 2,106 1,308 470

Operating income before other items $9,010 $8,966 $21,344 $15,281 $21,010

Loss (gain) on sale of assets 0 0 1,000 0 0

Other unusual expenses (income) 0 0 0 0 0

Earnings before taxes $9,010 $8,966 $22,344 $15,281 $21,010

Taxes on income 30% 2,703 2,690 6,703 4,584 6,303

Net income (loss) $6,307 $6,276 $15,641 $10,697 $14,707

[Company Name]
5-Year Financial Plan—Manufacturing
Balance sheet projections

Assets Initial balance Year 1 Year 2 Year 3 Year 4 Year 5

Cash and short-term investments $50,000 $181,829 $164,704 $229,982 $314,819 $280,128
Accounts receivable 3,000 3,000 3,000 3,000 3,000 3,000
Total inventory 25,000 25,000 25,000 25,000 25,000 25,000
Prepaid expenses 0 0 0 0 0 0
Deferred income tax 0 0 0 0 0 0
Other current assets 5,000 5,000 5,000 5,000 5,000 5,000
Total current assets $83,000 $214,829 $197,704 $262,982 $347,819 $313,128

Buildings $100,000 $100,000 $100,000 $100,000 $100,000 $100,000

Land 100,000 100,000 100,000 100,000 100,000 100,000
Capital improvements 0 0 0 0 0 0
Machinery and equipment 100,000 100,000 100,000 100,000 100,000 100,000
Less: Accumulated depreciation expense 0 40,000 80,800 122,400 164,800 208,000
Net property/equipment $300,000 $260,000 $219,200 $177,600 $135,200 $92,000

Goodwill $0 $0 $0 $0 $0 $0
Deferred income tax 0 0 0 0 0 0
Long-term investments 0 0 0 0 0 0
Deposits 0 0 0 0 0 0
Other long-term assets 0 0 0 0 0 0
Total assets $383,000 $474,829 $416,904 $440,582 $483,019 $405,128

Liabilities Initial balance Year 1 Year 2 Year 3 Year 4 Year 5

Accounts payable $2,000 $2,000 $3,000 $3,000 $1,500 $1,500
Accrued expenses 0 0 0 0 0 0
Notes payable/short-term debt 0 0 0 0 0 0
Capital leases 0 0 0 0 0 0
Other current liabilities 100 100 100 100 100 100
Total current liabilities $2,100 $2,100 $3,100 $3,100 $1,600 $1,600

Long-term debt from loan payment calculator $80,000 $65,522 $50,320 $34,358 $17,598 ($0)
Other long-term debt $100,000 $200,000 $150,000 $175,000 $225,000 $150,000
Total debt $182,100 $267,622 $203,420 $212,458 $244,198 $151,600

Other liabilities 0 0 0 0 0 0

Total liabilities $82,100 $67,622 $53,420 $37,458 $19,198 $1,600

Equity Initial balance Year 1 Year 2 Year 3 Year 4 Year 5

Owner's equity (common) $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Paid-in capital 250,000 250,000 250,000 250,000 250,000 250,000
Preferred equity 0 0 0 0 0 0
Retained earnings 0 6,307 12,584 28,224 38,921 53,628
Total equity $300,000 $306,307 $312,584 $328,224 $338,921 $353,628

Total liabilities and equity $382,100 $373,929 $366,004 $365,682 $358,119 $355,228
[Company Name]
5-Year Financial Plan—Manufacturing
Cash flow

Year 1 Year 2 Year 3 Year 4 Year 5 Total

Operating activities
Net income $6,307 $6,276 $15,641 $10,697 $14,707 $53,628
Depreciation 40,000 40,800 41,600 42,400 43,200 208,000
Accounts receivable 0 0 0 0 0 0
Inventories 0 0 0 0 0 0
Accounts payable 0 1,000 0 (1,500) 0 (500)
Amortization 0 0 0 0 0 0
Other liabilities 0 0 0 0 0 0
Other operating cash flow items 0 0 0 0 0 0
Total operating activities $46,307 $48,076 $57,241 $51,597 $57,907 $261,128

Investing activities
Capital expenditures $0 $0 $0 $0 $0 $0
Acquisition of business 0 0 0 0 0 0
Sale of fixed assets $0 $0 ($1,000) $0 $0 (1,000)
Other investing cash flow items 0 0 0 0 0 0
Total investing activities $0 $0 ($1,000) $0 $0 ($1,000)

Financing activities
Long-term debt/financing $85,522 ($65,202) $9,038 $33,240 ($92,598) ($30,000)
Preferred stock 0 0 0 0 0 0
Total cash dividends paid 0 0 0 0 0 0
Common stock 0 0 0 0 0 0
Other financing cash flow items 0 0 0 0 0 0
Total financing activities $85,522 ($65,202) $9,038 $33,240 ($92,598) ($30,000)

Cumulative cash flow $131,829 ($17,125) $65,279 $84,836 ($34,691) $230,128

Beginning cash balance $50,000 $181,829 $164,704 $229,982 $314,819

Ending cash balance $181,829 $164,704 $229,982 $314,819 $280,128
[Company Name]
5-Year Financial Plan—Manufacturing
Loan payment calculator

Annual interest rate 5.0% Note: This calculator can generate principal
Monthly rate 0.41% and interest payments for a period of up to 30
Loan amount $80,000 years (360 months).
Term of loan (months) 60
Payment ($1,505.63)

Month Principal balance Principal payment Interest Payment

1 $80,000 ($1,180) ($326) ($1,506)
2 78,820 (1,185) (321) ($1,506)
3 77,636 (1,189) (316) ($1,506)
4 76,446 (1,194) (311) ($1,506)
5 75,252 (1,199) (307) ($1,506)
6 74,053 (1,204) (302) ($1,506)
7 72,849 (1,209) (297) ($1,506)
8 71,640 (1,214) (292) ($1,506)
9 70,427 (1,219) (287) ($1,506)
10 69,208 (1,224) (282) ($1,506)
11 67,984 (1,229) (277) ($1,506)
12 66,756 (1,234) (272) ($1,506)
13 65,522 (1,239) (267) ($1,506)
14 64,283 (1,244) (262) ($1,506)
15 63,040 (1,249) (257) ($1,506)
16 61,791 (1,254) (252) ($1,506)
17 60,537 (1,259) (247) ($1,506)
18 59,278 (1,264) (242) ($1,506)
19 58,014 (1,269) (236) ($1,506)
20 56,745 (1,274) (231) ($1,506)
21 55,470 (1,280) (226) ($1,506)
22 54,190 (1,285) (221) ($1,506)
23 52,906 (1,290) (216) ($1,506)
24 51,615 (1,295) (210) ($1,506)
25 50,320 (1,301) (205) ($1,506)
26 49,020 (1,306) (200) ($1,506)
27 47,714 (1,311) (194) ($1,506)
28 46,402 (1,317) (189) ($1,506)
29 45,086 (1,322) (184) ($1,506)
30 43,764 (1,327) (178) ($1,506)
31 42,436 (1,333) (173) ($1,506)
32 41,104 (1,338) (167) ($1,506)
33 39,766 (1,344) (162) ($1,506)
34 38,422 (1,349) (157) ($1,506)
35 37,073 (1,355) (151) ($1,506)
36 35,718 (1,360) (146) ($1,506)
37 34,358 (1,366) (140) ($1,506)
38 32,993 (1,371) (134) ($1,506)
39 31,621 (1,377) (129) ($1,506)
40 30,244 (1,382) (123) ($1,506)
41 28,862 (1,388) (118) ($1,506)
42 27,474 (1,394) (112) ($1,506)
43 26,080 (1,399) (106) ($1,506)
44 24,681 (1,405) (101) ($1,506)
45 23,276 (1,411) (95) ($1,506)
46 21,865 (1,417) (89) ($1,506)
47 20,449 (1,422) (83) ($1,506)
48 19,026 (1,428) (78) ($1,506)
49 17,598 (1,434) (72) ($1,506)
50 16,164 (1,440) (66) ($1,506)
51 14,724 (1,446) (60) ($1,506)
52 13,279 (1,452) (54) ($1,506)
53 11,827 (1,457) (48) ($1,506)
54 10,370 (1,463) (42) ($1,506)
55 8,906 (1,469) (36) ($1,506)
56 7,437 (1,475) (30) ($1,506)
57 5,962 (1,481) (24) ($1,506)
58 4,480 (1,487) (18) ($1,506)
59 2,993 (1,493) (12) ($1,506)
60 1,500 (1,500) (6) ($1,506)
61 (0) (0) 0 $0
62 (0) (0) 0 $0
63 (0) (0) 0 $0
64 (0) (0) 0 $0
65 (0) (0) 0 $0
66 (0) (0) 0 $0
67 (0) (0) 0 $0
68 (0) (0) 0 $0
69 (0) (0) 0 $0
70 (0) (0) 0 $0
71 (0) (0) 0 $0
72 (0) (0) 0 $0
73 (0) (0) 0 $0
74 (0) (0) 0 $0
75 (0) (0) 0 $0
76 (0) (0) 0 $0
77 (0) (0) 0 $0
78 (0) (0) 0 $0
79 (0) (0) 0 $0
80 (0) (0) 0 $0
81 (0) (0) 0 $0
82 (0) (0) 0 $0
 83 (0) (0) 0 $0
84 (0) (0) 0 $0
85 (0) (0) 0 $0
86 (0) (0) 0 $0
87 (0) (0) 0 $0
88 (0) (0) 0 $0
89 (0) (0) 0 $0
90 (0) (0) 0 $0
91 (0) (0) 0 $0
92 (0) (0) 0 $0
93 (0) (0) 0 $0
94 (0) (0) 0 $0
95 (0) (0) 0 $0
96 (0) (0) 0 $0
97 (0) (0) 0 $0
98 (0) (0) 0 $0
99 (0) (0) 0 $0
100 (0) (0) 0 $0
101 (0) (0) 0 $0
102 (0) (0) 0 $0
103 (0) (0) 0 $0
104 (0) (0) 0 $0
105 (0) (0) 0 $0
106 (0) (0) 0 $0
107 (0) (0) 0 $0
108 (0) (0) 0 $0
109 (0) (0) 0 $0
110 (0) (0) 0 $0
111 (0) (0) 0 $0
112 (0) (0) 0 $0
113 (0) (0) 0 $0
114 (0) (0) 0 $0
115 (0) (0) 0 $0
116 (0) (0) 0 $0
117 (0) (0) 0 $0
118 (0) (0) 0 $0
119 (0) (0) 0 $0
120 (0) (0) 0 $0
121 (0) (0) 0 $0
122 (0) (0) 0 $0
123 (0) (0) 0 $0
124 (0) (0) 0 $0
125 (0) (0) 0 $0
126 (0) (0) 0 $0
127 (0) (0) 0 $0
128 (0) (0) 0 $0
129 (0) (0) 0 $0
130 (0) (0) 0 $0
131 (0) (0) 0 $0
132 (0) (0) 0 $0
133 (0) (0) 0 $0
134 (0) (0) 0 $0
135 (0) (0) 0 $0
136 (0) (0) 0 $0
137 (0) (0) 0 $0
138 (0) (0) 0 $0
139 (0) (0) 0 $0
140 (0) (0) 0 $0
141 (0) (0) 0 $0
142 (0) (0) 0 $0
143 (0) (0) 0 $0
144 (0) (0) 0 $0
145 (0) (0) 0 $0
146 (0) (0) 0 $0
147 (0) (0) 0 $0
148 (0) (0) 0 $0
149 (0) (0) 0 $0
150 (0) (0) 0 $0
151 (0) (0) 0 $0
152 (0) (0) 0 $0
153 (0) (0) 0 $0
154 (0) (0) 0 $0
155 (0) (0) 0 $0
156 (0) (0) 0 $0
157 (0) (0) 0 $0
158 (0) (0) 0 $0
159 (0) (0) 0 $0
160 (0) (0) 0 $0
161 (0) (0) 0 $0
162 (0) (0) 0 $0
163 (0) (0) 0 $0
164 (0) (0) 0 $0
165 (0) (0) 0 $0
166 (0) (0) 0 $0
167 (0) (0) 0 $0
168 (0) (0) 0 $0
169 (0) (0) 0 $0
170 (0) (0) 0 $0
171 (0) (0) 0 $0
172 (0) (0) 0 $0
173 (0) (0) 0 $0
174 (0) (0) 0 $0
175 (0) (0) 0 $0
176 (0) (0) 0 $0
177 (0) (0) 0 $0
178 (0) (0) 0 $0
179 (0) (0) 0 $0
180 (0) (0) 0 $0
181 (0) (0) 0 $0
182 (0) (0) 0 $0
183 (0) (0) 0 $0
184 (0) (0) 0 $0
185 (0) (0) 0 $0
186 (0) (0) 0 $0
187 (0) (0) 0 $0
188 (0) (0) 0 $0
189 (0) (0) 0 $0
190 (0) (0) 0 $0
191 (0) (0) 0 $0
192 (0) (0) 0 $0
193 (0) (0) 0 $0
194 (0) (0) 0 $0
195 (0) (0) 0 $0
196 (0) (0) 0 $0
197 (0) (0) 0 $0
198 (0) (0) 0 $0
199 (0) (0) 0 $0
200 (0) (0) 0 $0
201 (0) (0) 0 $0
202 (0) (0) 0 $0
203 (0) (0) 0 $0
204 (0) (0) 0 $0
205 (0) (0) 0 $0
206 (0) (0) 0 $0
207 (0) (0) 0 $0
208 (0) (0) 0 $0
209 (0) (0) 0 $0
210 (0) (0) 0 $0
211 (0) (0) 0 $0
212 (0) (0) 0 $0
213 (0) (0) 0 $0
214 (0) (0) 0 $0
215 (0) (0) 0 $0
216 (0) (0) 0 $0
217 (0) (0) 0 $0
218 (0) (0) 0 $0
219 (0) (0) 0 $0
220 (0) (0) 0 $0
221 (0) (0) 0 $0
222 (0) (0) 0 $0
223 (0) (0) 0 $0
224 (0) (0) 0 $0
225 (0) (0) 0 $0
226 (0) (0) 0 $0
227 (0) (0) 0 $0
228 (0) (0) 0 $0
229 (0) (0) 0 $0
230 (0) (0) 0 $0
231 (0) (0) 0 $0
232 (0) (0) 0 $0
233 (0) (0) 0 $0
234 (0) (0) 0 $0
235 (0) (0) 0 $0
236 (0) (0) 0 $0
237 (0) (0) 0 $0
238 (0) (0) 0 $0
239 (0) (0) 0 $0
240 (0) (0) 0 $0
241 (0) (0) 0 $0
242 (0) (0) 0 $0
243 (0) (0) 0 $0
244 (0) (0) 0 $0
245 (0) (0) 0 $0
246 (0) (0) 0 $0
247 (0) (0) 0 $0
248 (0) (0) 0 $0
249 (0) (0) 0 $0
250 (0) (0) 0 $0
251 (0) (0) 0 $0
252 (0) (0) 0 $0
253 (0) (0) 0 $0
254 (0) (0) 0 $0
255 (0) (0) 0 $0
256 (0) (0) 0 $0
257 (0) (0) 0 $0
258 (0) (0) 0 $0
259 (0) (0) 0 $0
260 (0) (0) 0 $0
261 (0) (0) 0 $0
262 (0) (0) 0 $0
263 (0) (0) 0 $0
264 (0) (0) 0 $0
265 (0) (0) 0 $0
266 (0) (0) 0 $0
267 (0) (0) 0 $0
268 (0) (0) 0 $0
269 (0) (0) 0 $0
270 (0) (0) 0 $0
271 (0) (0) 0 $0
272 (0) (0) 0 $0
273 (0) (0) 0 $0
274 (0) (0) 0 $0
275 (0) (0) 0 $0
276 (0) (0) 0 $0
277 (0) (0) 0 $0
278 (0) (0) 0 $0
279 (0) (0) 0 $0
280 (0) (0) 0 $0
281 (0) (0) 0 $0
282 (0) (0) 0 $0
283 (0) (0) 0 $0
284 (0) (0) 0 $0
285 (0) (0) 0 $0
286 (0) (0) 0 $0
287 (0) (0) 0 $0
288 (0) (0) 0 $0
289 (0) (0) 0 $0
290 (0) (0) 0 $0
291 (0) (0) 0 $0
292 (0) (0) 0 $0
293 (0) (0) 0 $0
294 (0) (0) 0 $0
295 (0) (0) 0 $0
296 (0) (0) 0 $0
297 (0) (0) 0 $0
298 (0) (0) 0 $0
299 (0) (0) 0 $0
300 (0) (0) 0 $0
301 (0) (0) 0 $0
302 (0) (0) 0 $0
303 (0) (0) 0 $0
304 (0) (0) 0 $0
305 (0) (0) 0 $0
306 (0) (0) 0 $0
307 (0) (0) 0 $0
308 (0) (0) 0 $0
309 (0) (0) 0 $0
310 (0) (0) 0 $0
311 (0) (0) 0 $0
312 (0) (0) 0 $0
313 (0) (0) 0 $0
314 (0) (0) 0 $0
315 (0) (0) 0 $0
316 (0) (0) 0 $0
317 (0) (0) 0 $0
318 (0) (0) 0 $0
319 (0) (0) 0 $0
320 (0) (0) 0 $0
321 (0) (0) 0 $0
322 (0) (0) 0 $0
323 (0) (0) 0 $0
324 (0) (0) 0 $0
325 (0) (0) 0 $0
326 (0) (0) 0 $0
327 (0) (0) 0 $0
328 (0) (0) 0 $0
329 (0) (0) 0 $0
330 (0) (0) 0 $0
331 (0) (0) 0 $0
332 (0) (0) 0 $0
333 (0) (0) 0 $0
334 (0) (0) 0 $0
335 (0) (0) 0 $0
336 (0) (0) 0 $0
337 (0) (0) 0 $0
338 (0) (0) 0 $0
339 (0) (0) 0 $0
340 (0) (0) 0 $0
341 (0) (0) 0 $0
342 (0) (0) 0 $0
343 (0) (0) 0 $0
344 (0) (0) 0 $0
345 (0) (0) 0 $0
346 (0) (0) 0 $0
347 (0) (0) 0 $0
348 (0) (0) 0 $0
349 (0) (0) 0 $0
350 (0) (0) 0 $0
351 (0) (0) 0 $0
352 (0) (0) 0 $0
353 (0) (0) 0 $0
354 (0) (0) 0 $0
355 (0) (0) 0 $0
356 (0) (0) 0 $0
357 (0) (0) 0 $0
358 (0) (0) 0 $0
359 (0) (0) 0 $0
360 (0) (0) 0 $0