Introduction
Financial Projection Model
This spreadsheet walks you through the process of developing an integrated set of financial projections.
To use this model, simply complete any information asked for found in the color yellow.
Example: Fill in boxes that look like this – 0
A number found in the color green is optional information that you can complete.
Example: Check these assumptions – 0
Otherwise, any information found in black type is automatically calculated for you.
Although the cells that are calculated are locked (or protected), you can turn off this protection to modify the sheets.
To do this, select “Tools” from the menu bar at the top of the screen. Then select, “Protection.”
Finally, select “Unprotect Sheet” and you will be able to edit any labels or formulas.
Before you begin, we need some information about your business to best customize your financial statements.
Please enter the name of your business in the box below:
Joe’s Landscaping
The first six worksheets in this workbook are steps you will need to complete. They are titled:
1. Required Start-Up Funds
2. Salaries and Wages
3. Fixed Operating Expenses
4. Projected Sales Forecast (2 sheets)
5. Cash Receipts and Disbursements
The sixth step titled, “Beginning Balance Sheet” is for existing businesses only.
Begin by clicking on the tabs below
q
1. Required Start-Up Funds
Joe’s Landscaping 3-Nov-20
Required Start-Up Funds for a New
Required Start-Up Funds Amount Totals Depreciation Notes
Fixed Assets Fixed Assets Pur.
Real Estate $ 100,000.00 Real Estate $ 10,000.00
Buildings 20.00 years Buildings $ 50,000.00
Leasehold Improvements 7.00 years Leasehold Improvements
Equipment $ 2,500.00 7.00 years Equipment $ 2,500.00
Furniture and Fixtures $ 1,000.00 5.00 years Furniture and Fixtures $ 1,000.00
Vehicles $ 25,000.00 5.00 years Vehicles $ 25,000.00
Other Fixed Assets $ 1,500.00 5.00 years Other Fixed Assets $ 1,500.00
Total Fixed Assets 130,000
Operating Capital Operating Capital
Pre-Opening Salaries and Wages $ 1,000.00 Pre-Opening Salaries and Wages $ 1,000.00
Prepaid Insurance Premiums $ 1,500.00 Prepaid Insurance Premiums $ 1,500.00
Beginning Inventory $ – 0 Beginning Inventory $ – 0
Prof. Services (legal,CPA,Bus.Coach) $ 2,500.00 Prof. Services (legal,CPA,Bus.Coach) $ 2,500.00
Rent Deposits $ 300.00 Rent Deposits $ 300.00
Utility Deposits $ 300.00 Utility Deposits $ 300.00
Supplies $ 1,000.00 Supplies $ 1,000.00
Advertising and Promotions $ 1,500.00 Advertising and Promotions $ 1,500.00
Licenses/Permits $ 300.00 Licenses/Permits $ 300.00
Other Initial Start-Up Costs $ 1,500.00 Other Initial Start-Up Costs $ 1,500.00
Working Capital (Cash On Hand) $ 7,000.00 Working Capital (Cash On Hand) $ 5,000.00
Total Operating Capital 16,900
Total Required Funds $ 146,900
Sources of Funding Amount Totals Loan Rate Term in Months Monthly Payments Sources of Funding
Owner’s Cash Injection 68.07% 100,000 Investment (Owner plus others) $ 100,000.00
Outside Investors 0.00% – 0
Additional Loans or Debt Debt
Commercial Loan 0.00% – 0 9.00% 72.00 $0.00 $ – 0
Commercial Mortgage 31.93% 46,900 9.00% 240.00 $421.97 $ 46,900.00
Total Sources of Funding 100.00% $ 146,900 $421.97 Total $ 46,900.00
0 $ – 0 SBA Loan guarantee 85% $ 39,865.00 $ – 0
Bank 15% $ 7,035.00
$ 46,900.00
2. Salaries and Wages
Joe’s Landscaping 3-Nov-20
Salaries and Wages
Salaries and Related Expenses # Assumptions Wage Base Monthly Year One Year Two Year Three
Percent Change 3.00% 3.00%
Salaries and Wages
Owner’s Compensation 1 $ 2,500 30,000 30,900 31,827
Office manager – 0 – 0 – 0
Wages
Managers 0 – 0 – 0 – 0 – 0
Estimated Hours Per Week – 0
Estimated Rate Per Hour $ – 0
Assistants 1 3,683 44,200 45,526 46,892
Estimated Hours Per Week 50.00
Estimated Rate Per Hour $ 17.00
Independent Contractors – 0 – 0 – 0 – 0
Total Salaries and Wages 2 6,183 74,200 76,426 78,719
Payroll Taxes and Benefits
Social Security 6.20% $ 102,000 383 4,600 4,738 4,881
Medicare 1.45% 90 1,076 1,108 1,141
Federal Unemployment Tax (FUTA) 0.80% $ 7,000 9 112 112 112
State Unemployment Tax (SUTA) 2.70% $ 7,000 32 378 378 378
Employee Pension Programs 0.00% – 0 – 0 – 0 – 0
Worker’s Compensation 0.00% – 0 – 0 – 0 – 0
Employee Health Insurance 0.00% – 0 – 0 – 0 – 0
Other Employee Benefit Programs 0.00% – 0 – 0 – 0 – 0
Total Payroll Taxes and Benefits 514 8% 6,166 6,337 6,512
Total Salaries and Related Expenses 6,697 80,366 82,763 85,231
3. Fixed Operating Expenses
Joe’s Landscaping 3-Nov-20
Fixed Operating Expenses
Fixed Operating Expenses Monthly Year One Year Two Year Three Notes
Percent Change 3.00% 3.00%
Expenses Expenses MONTHLY
Advertising $ 250 3,000 3,090 3,183 Advertising $ 250
Auto expenses $ 500 6,000 6,180 6,365 Auto expenses $ 500
Telephone/Internet $ 150 1,800 1,854 1,910 Telephone/Internet $ 150
Insurance (Liability and Property) $ 150 1,800 1,854 1,910 Insurance (Liability and Property) $ 150
Legal and Professional Fees $ 350 4,200 4,326 4,456 Legal and Professional Fees $ 350 (Attorney, CPA, Other- Quarterly/monthly)
Merchant Fees (Credit Card and Bank Charges) $ 100 1,200 1,236 1,273 Merchant Fees (Credit Card and Bank Charges) $ 100 (3 % of credit card receipts)
Office expense $ 150 1,800 1,854 1,910 Office expense $ 150
Payroll Expense $ – 0 – 0 – 0 – 0 Payroll Expense $ – 0
Rent/Lease $ 150 1,800 1,854 1,910 Rent/Lease $ 150
Repair/Maintenance $ 300 3,600 3,708 3,819 Repair/Maintenance $ 300
Shipping and Delivery $ 50 600 618 637 Shipping and Delivery $ 50
Taxes $ – 0 – 0 – 0 – 0 Taxes $ – 0
Travel $ – 0 – 0 – 0 – 0 Travel $ – 0
Utilities $ 150 1,800 1,854 1,910 Utilities $ 150
Personnel expenses (Training, etc.) $ 150 1,800 1,854 1,910 Personnel expenses (Training, etc.) $ 150
Miscellaneous $ 150 1,800 1,854 1,910 Miscellaneous $ 150
Independent Contractors $ 1,500 18,000 18,540 19,096 Independent Contractors $ 3,000 (Contractor rate ($25/Hr)X Hrs per month(120)= $3,000)
Customer Service Call center $ 150 1,800 1,854 1,910 Customer Service Call center $ 150
Coach $ 150 1,800 1,854 1,910 Coach $ 150
– 0 – 0 – 0
Total Expenses 4,400 52,800 54,384 56,016
Other Expenses
Depreciation 488 5,857 5,857 5,857
Interest
Commercial Loan – 0 – 0 – 0 – 0
Commercial Mortgage 349 4,185 4,103 4,013
Line of Credit – 0 – 0 – 0 – 0
Total Other Expenses 837 10,042 9,960 9,870
Total Fixed Operating Expenses 5,237 62,842 64,344 65,886
4. Projected Sales Forecast
Joe’s Landscaping 3-Nov-20
Projected Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Products and Services Assumptions % Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Totals
Mow
Price Per Unit $ 50.00 100.00%
Variable Cost Per Unit $ 5.00 10.00% QUESTION: WHAT IS THE MAX PER CREW?
Gross Margin Per Unit $ 45.00 90.00%
Projected Unit Sales
Seasonality Factor 7.64% 7.64% 7.64% 8.28% 8.60% 8.92% 8.92% 9.24% 9.24% 8.28% 7.96% 7.64% 100.00%
Year One 120 120 120 130 135 140 140 145 145 130 125 120 1,570 No units per day (5) X days/Week (6) X Weeks/Month (4)= 120 units/month
Year Two Growth 0.00% 120 120 120 135 135 145 145 150 150 140 135 130 1,625 No units per day (6) X days/Week (6) X Weeks/Month (4)= 144 units/month
Year Three Growth 0.00% 130 130 130 145 145 145 150 160 165 150 145 140 1,735 No units per day (7) X days/Week (6) X Weeks/Month (4)= 168 units/month
Fixed Expense Allocation 39.37%
Projected Revenue $ 78,500
Variable Costs 7,850
Gross Margin 70,650
Fixed Expenses 24,741
Profit 45,909 58.48%
Breakeven Sales Revenue $ 27,490.16
Breakeven Sales Units 550 120 240 360 490 625 765 905 1,050 1,195 1,325 1,450 1,570
Trim
Price Per Unit $ 10.00 100.00%
Variable Cost Per Unit $ 2.00 20.00%
Gross Margin Per Unit $ 8.00 80.00%
Projected Unit Sales
Seasonality Factor 7.64% 7.64% 7.64% 8.28% 8.60% 8.92% 8.92% 9.24% 9.24% 8.28% 7.96% 7.64% 100.00%
Year One 120 120 120 130 135 140 140 145 145 130 125 120 1,570
Year Two Growth 120 120 120 135 135 145 145 150 150 140 135 130 1,625
Year Three Growth 130 130 130 145 145 145 150 160 165 150 145 140 1,735
Fixed Expense Allocation 7.87%
Projected Revenue $ 15,700
Variable Costs 3,140
Gross Margin 12,560
Fixed Expenses 4,948
Profit 7,612 48.48%
Breakeven Sales Revenue $ 6,185.29
Breakeven Sales Units 619 120 240 360 490 625 765 905 1,050 1,195 1,325 1,450 1,570
5. Projected Sales Forecast (2)
Joe’s Landscaping 3-Nov-20
Projected Sales Forecast – Page 2
Products and Services Assumptions % Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Totals
Bag
Price Per Unit $ 2.00 100.00%
Variable Cost Per Unit $ 0.50 25.00%
Gross Margin Per Unit $ 1.50 75.00%
Projected Unit Sales
Seasonality Factor 7.64% 7.64% 7.64% 8.28% 8.60% 8.92% 8.92% 9.24% 9.24% 8.28% 7.96% 7.64% 100.00%
Year One 120 120 120 130 135 140 140 145 145 130 125 120 1,570
Year Two Growth 120 120 120 135 135 145 145 150 150 140 135 130 1,625
Year Three Growth 130 130 130 145 145 145 150 160 165 150 145 140 1,735
Fixed Expense Allocation 1.57%
Projected Revenue $ 3,140
Variable Costs 785
Gross Margin 2,355
Fixed Expenses 990
Profit 1,365 43.48%
Breakeven Sales Revenue $ 1,319.53
Breakeven Sales Units 660 120 240 360 490 625 765 905 1,050 1,195 1,325 1,450 1,570
Package
Price Per Unit $ 65.00 100.00%
Variable Cost Per Unit $ 7.50 11.54%
Gross Margin Per Unit $ 57.50 88.46%
Projected Unit Sales
Seasonality Factor 7.64% 7.64% 7.64% 8.28% 8.60% 8.92% 8.92% 9.24% 9.24% 8.28% 7.96% 7.64% 100.00%
Year One 120 120 120 130 135 140 140 145 145 130 125 120 1,570
Year Two Growth 0.00% 120 120 120 135 135 145 145 150 150 140 135 130 1,625
Year Three Growth 0.00% 130 130 130 145 145 145 150 160 165 150 145 140 1,735
Fixed Expense Allocation 51.18%
Projected Revenue $ 102,050
Variable Costs 11,775
Gross Margin 90,275
Fixed Expenses 32,163
Profit 58,112 56.94%
Breakeven Sales Revenue $ 36,358.72
Breakeven Sales Units 559 120 240 360 490 625 765 905 1,050 1,195 1,325 1,450 1,570
6. Cash Receipts-Disbursements
Joe’s Landscaping 3-Nov-20
Cash Receipts and Disbursements
Accounts Receivable Collections
Percent of Collections
0 to 30 days 75.00%
31 to 60 days 25.00%
More than 60 days 0.00%
Total Collections Percentage 100.00%
Accounts Payable Disbursements
Number of Days to Pay Suppliers
0 to 30 days 100.00%
31 to 60 days 0.00%
More than 60 days 0.00%
Total Disbursements Percentage 100.00%
Line of Credit Assumptions
Desired Minimum Cash Balance $ 1,000.00
Line of Credit Interest Rate 9.00%
Income Tax Assumptions
Effective Income Tax Rate 15.00%
2,800 233
Amortization of Start-Up Expenses 500 42
Amortization Period in Years 3.00 275
7. Beginning Balance Sheet
Joe’s Landscaping
Balance Sheet (For Existing es Only)
DO NOT USE THIS PAGE FOR ANY DATA ENTRY
The opening balance sheet is now shown on the “start-up” page inputs, so this page is unnecessary.
12/31/06 %
Assets
Current Assets
Cash – 0
Accounts Receivable – 0
Inventory – 0
Prepaid Expenses – 0
Other Current – 0
Total Current Assets – 0
Fixed Assets
Real Estate – 0
Buildings – 0
Leasehold Improvements – 0
Equipment – 0
Furniture and Fixtures – 0
Vehicles – 0
Other Fixed Assets – 0
Total Fixed Assets – 0
Less: Accumulated Depreciation – 0
Total Assets – 0
Liabilities and Owner’s Equity
Liabilities
Accounts Payable – 0
Notes Payable – 0
Mortgage Payable – 0
Line of Credit Balance – 0
Total Liabilities – 0
Owner’s Equity
Common Stock – 0
Retained Earnings – 0
Dividends Dispersed – 0
Total Owner’s Equity – 0
Total Liabilities and Owner’s Equity – 0
Statement Balances
8. Income Statement
Joe’s Landscaping
Projected Income Statement – Year One
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Totals
Income Fixed Expense Allocation
Mow 6,000 6,000 6,000 6,500 6,750 7,000 7,000 7,250 7,250 6,500 6,250 6,000 78,500 39%
Trim 1,200 1,200 1,200 1,300 1,350 1,400 1,400 1,450 1,450 1,300 1,250 1,200 15,700 8%
Bag 240 240 240 260 270 280 280 290 290 260 250 240 3,140 2%
Package 7,800 7,800 7,800 8,450 8,775 9,100 9,100 9,425 9,425 8,450 8,125 7,800 102,050 51%
Total Income 15,240 15,240 15,240 16,510 17,145 17,780 17,780 18,415 18,415 16,510 15,875 15,240 199,390 100%
Cost of Sales
Mow 600 600 600 650 675 700 700 725 725 650 625 600 7,850
Trim 240 240 240 260 270 280 280 290 290 260 250 240 3,140
Bag 60 60 60 65 68 70 70 73 73 65 63 60 785
Package 900 900 900 975 1,013 1,050 1,050 1,088 1,088 975 938 900 11,775
Total Cost of Sales 1,800 1,800 1,800 1,950 2,025 2,100 2,100 2,175 2,175 1,950 1,875 1,800 23,550
Gross Margin 13,440 13,440 13,440 14,560 15,120 15,680 15,680 16,240 16,240 14,560 14,000 13,440 175,840
Salaries and Wages
Owner’s Compensation 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
Office manager – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Managers – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Assistants 3,683 3,683 3,683 3,683 3,683 3,683 3,683 3,683 3,683 3,683 3,683 3,683 44,200
Independent Contractors – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Payroll Taxes and Benefits 514 514 514 514 514 514 514 514 514 514 514 514 6,166
Total Salary and Wages 6,697 6,697 6,697 6,697 6,697 6,697 6,697 6,697 6,697 6,697 6,697 6,697 80,366
Fixed Expenses
Advertising 250 250 250 250 250 250 250 250 250 250 250 250 3,000
Auto expenses 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Telephone/Internet 150 150 150 150 150 150 150 150 150 150 150 150 1,800
Insurance (Liability and Property) 150 150 150 150 150 150 150 150 150 150 150 150 1,800
Legal and Professional Fees 350 350 350 350 350 350 350 350 350 350 350 350 4,200
Merchant Fees (Credit Card and Bank Charges) 100 100 100 100 100 100 100 100 100 100 100 100 1,200
Office expense 150 150 150 150 150 150 150 150 150 150 150 150 1,800
Payroll Expense – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Rent/Lease 150 150 150 150 150 150 150 150 150 150 150 150 1,800
Repair/Maintenance 300 300 300 300 300 300 300 300 300 300 300 300 3,600
Shipping and Delivery 50 50 50 50 50 50 50 50 50 50 50 50 600
Taxes – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Travel – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Utilities 150 150 150 150 150 150 150 150 150 150 150 150 1,800
Personnel expenses (Training, etc.) 150 150 150 150 150 150 150 150 150 150 150 150 1,800
Miscellaneous 150 150 150 150 150 150 150 150 150 150 150 150 1,800
Independent Contractors 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
Customer Service Call center 150 150 150 150 150 150 150 150 150 150 150 150 1,800
Coach 150 150 150 150 150 150 150 150 150 150 150 150 1,800
0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Total Fixed Expenses 4,400 4,400 4,400 4,400 4,400 4,400 4,400 4,400 4,400 4,400 4,400 4,400 52,800
Other Expenses
Amortized Start-up Expenses 275 275 275 275 275 275 275 275 275 275 275 275 3,300
Depreciation 488 488 488 488 488 488 488 488 488 488 488 488 5,857
Interest
Commercial Loan – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Commercial Mortgage 352 351 351 350 350 349 349 348 347 347 346 346 4,185
Line of Credit – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Taxes 225 226 226 394 478 562 562 646 646 394 310 226 4,895
Total Other Expenses 1,340 1,340 1,339 1,507 1,590 1,674 1,674 1,757 1,757 1,504 1,420 1,335 18,237
Net Income 1,003 1,003 1,003 1,956 2,432 2,909 2,909 3,386 3,386 1,959 1,483 1,008 24,437
1,503 1,503 1,504 2,625 3,185 3,746 3,746 4,307 4,307 2,628 2,068 1,509
1,503 3,006 4,510 7,135 10,320 14,066 17,812 22,119 26,426 29,054 31,122 32,631
9. Cash Flow Statement
Joe’s Landscaping
Projected Cash Flow Statement – Year One
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Totals
Beginning Cash Balance 7,000 5,111 7,032 8,276 10,999 14,441 17,010 21,171 25,733 28,600 32,117 34,757
Cash Inflows
Income from Sales 11,430 11,430 11,430 12,383 12,859 13,335 13,335 13,811 13,811 12,383 11,906 11,430 149,543
Accounts Receivable – 0 3,810 3,810 3,810 4,128 4,286 4,445 4,445 4,604 4,604 4,128 3,969 46,038
Total Cash Inflows 11,430 15,240 15,240 16,193 16,986 17,621 17,780 18,256 18,415 16,986 16,034 15,399 195,580
Cash Outflows
Investing Activities
New Capital Purchases – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Inventory Purchases – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Cost of Sales 1,800 1,800 1,800 1,950 2,025 2,100 2,100 2,175 2,175 1,950 1,875 1,800 23,550
Operating Activities
Salaries and Wages 6,697 6,697 6,697 6,697 6,697 6,697 6,697 6,697 6,697 6,697 6,697 6,697 80,366
Fixed Expenses 4,400 4,400 4,400 4,400 4,400 4,400 4,400 4,400 4,400 4,400 4,400 4,400 52,800
Taxes – 0 – 0 677 – 0 – 0 1,433 – 0 – 0 1,854 – 0 – 0 931 4,895
Financing Activities – 0
Loan Payments 422 422 422 422 422 422 422 422 422 422 422 422 5,064
Line of Credit Interest – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Line of Credit Repayments – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Dividends Paid – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Total Cash Outflows 13,319 13,319 13,996 13,469 13,544 15,052 13,619 13,694 15,548 13,469 13,394 14,250 166,675
Cash Flow (1,889) 1,921 1,244 2,723 3,442 2,569 4,161 4,562 2,867 3,517 2,640 1,149 28,905
Operating Cash Balance 5,111 7,032 8,276 10,999 14,441 17,010 21,171 25,733 28,600 32,117 34,757 35,905
Line of Credit Drawdowns – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Ending Cash Balance 5,111 7,032 8,276 10,999 14,441 17,010 21,171 25,733 28,600 32,117 34,757 35,905
Line of Credit Balance – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
10. Balance Sheet
Joe’s Landscaping
Balance Sheet – Year One
Base Period End of Year One
Assets
Current Assets
Cash 7,000 35,905
Accounts Receivable – 0 3,810
Inventory – 0 – 0
Prepaid Expenses 8,400 5,600
Other Current 1,500 1,000
Total Current Assets 16,900 46,315
Fixed Assets
Real Estate 100,000 100,000
Buildings – 0 – 0
Leasehold Improvements – 0 – 0
Equipment 2,500 2,500
Furniture and Fixtures 1,000 1,000
Vehicles 25,000 25,000
Other Fixed Assets 1,500 1,500
Total Fixed Assets 130,000 130,000
Less: Accumulated Depreciation – 0 5,857
Total Assets 146,900 170,458
Liabilities and Owner’s Equity
Liabilities
Accounts Payable – 0 – 0
Notes Payable – 0 – 0
Mortgage Payable 46,900 46,022
Line of Credit Balance – 0 – 0
Total Liabilities 46,900 46,022
Owner’s Equity
Common Stock 100,000 100,000
Retained Earnings – 0 24,437
Dividends Dispersed – 0 – 0
Total Owner’s Equity 100,000 124,437
Total Liabilities and Owner’s Equity 146,900 170,458
Statement Balances Statement Balances
11. Year End Summary
Joe’s Landscaping
Year End Summary
Year One % Year Two % Year Three %
Income
Mow 78,500 81,250 86,750
Trim 15,700 16,250 17,350
Bag 3,140 3,250 3,470
Package 102,050 105,625 112,775
Total Income 199,390 100.00% 206,375 100.00% 220,345 100.00%
Cost of Sales
Mow 7,850 8,125 8,675
Trim 3,140 3,250 3,470
Bag 785 813 868
Package 11,775 12,188 13,013
Total Cost of Sales 23,550 11.81% 24,375 11.81% 26,025 11.81%
Gross Margin 175,840 88.19% 182,000 88.19% 194,320 88.19%
Salaries and Wages
Owner’s Compensation 30,000 30,900 31,827
Office manager – 0 – 0 – 0
Managers – 0 – 0 – 0
Assistants 44,200 45,526 46,892
Independent Contractors – 0 – 0 – 0
Payroll Taxes and Benefits 6,166 6,337 6,512
Total Salary and Wages 80,366 40.31% 82,763 40.10% 85,231 38.68%
Fixed Expenses
Advertising 3,000 3,090 3,183
Auto expenses 6,000 6,180 6,365
Telephone/Internet 1,800 1,854 1,910
Insurance (Liability and Property) 1,800 1,854 1,910
Legal and Professional Fees 4,200 4,326 4,456
Merchant Fees (Credit Card and Bank Charges) 1,200 1,236 1,273
Office expense 1,800 1,854 1,910
Payroll Expense – 0 – 0 – 0
Rent/Lease 1,800 1,854 1,910
Repair/Maintenance 3,600 3,708 3,819
Shipping and Delivery 600 618 637
Taxes – 0 – 0 – 0
Travel – 0 – 0 – 0
Utilities 1,800 1,854 1,910
Personnel expenses (Training, etc.) 1,800 1,854 1,910
Miscellaneous 1,800 1,854 1,910
Independent Contractors 18,000 18,540 19,096
Customer Service Call center 1,800 1,854 1,910
Coach 1,800 1,854 1,910
0 – 0 – 0 – 0
Total Fixed Expenses 52,800 26.48% 54,384 26.35% 56,016 25.42%
Other Expenses
Amortized Start-up Expenses 3,300 3,300 3,300
Depreciation 5,857 5,857 5,857
Interest
Commercial Loan – 0 – 0 – 0
Commercial Mortgage 4,185 4,103 4,013
Line of Credit – 0 – 0 – 0
Taxes 4,895 5,234 6,481
Total Other Expenses 18,237 9.15% 18,494 8.96% 19,651 8.92%
Net Income 24,437 12.26% 26,359 12.77% 33,423 15.17%
12. Income Statement (2)
Joe’s Landscaping
Projected Income Statement – Year Two
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Totals
Income
Mow 6,000 6,000 6,000 6,750 6,750 7,250 7,250 7,500 7,500 7,000 6,750 6,500 81,250
Trim 1,200 1,200 1,200 1,350 1,350 1,450 1,450 1,500 1,500 1,400 1,350 1,300 16,250
Bag 240 240 240 270 270 290 290 300 300 280 270 260 3,250
Package 7,800 7,800 7,800 8,775 8,775 9,425 9,425 9,750 9,750 9,100 8,775 8,450 105,625
Total Income 15,240 15,240 15,240 17,145 17,145 18,415 18,415 19,050 19,050 17,780 17,145 16,510 206,375
Cost of Sales
Mow 600 600 600 675 675 725 725 750 750 700 675 650 8,125
Trim 240 240 240 270 270 290 290 300 300 280 270 260 3,250
Bag 60 60 60 68 68 73 73 75 75 70 68 65 813
Package 900 900 900 1,013 1,013 1,088 1,088 1,125 1,125 1,050 1,013 975 12,188
Total Cost of Sales 1,800 1,800 1,800 2,025 2,025 2,175 2,175 2,250 2,250 2,100 2,025 1,950 24,375
Gross Margin 13,440 13,440 13,440 15,120 15,120 16,240 16,240 16,800 16,800 15,680 15,120 14,560 182,000
Salaries and Wages
Owner’s Compensation 2,575 2,575 2,575 2,575 2,575 2,575 2,575 2,575 2,575 2,575 2,575 2,575 30,900
Office manager – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Managers – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Assistants 3,794 3,794 3,794 3,794 3,794 3,794 3,794 3,794 3,794 3,794 3,794 3,794 45,526
Independent Contractors – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Payroll Taxes and Benefits 528 528 528 528 528 528 528 528 528 528 528 528 6,337
Total Salary and Wages 6,897 6,897 6,897 6,897 6,897 6,897 6,897 6,897 6,897 6,897 6,897 6,897 82,763
Fixed Expenses
Advertising 258 258 258 258 258 258 258 258 258 258 258 258 3,090
Auto expenses 515 515 515 515 515 515 515 515 515 515 515 515 6,180
Telephone/Internet 155 155 155 155 155 155 155 155 155 155 155 155 1,854
Insurance (Liability and Property) 155 155 155 155 155 155 155 155 155 155 155 155 1,854
Legal and Professional Fees 361 361 361 361 361 361 361 361 361 361 361 361 4,326
Merchant Fees (Credit Card and Bank Charges) 103 103 103 103 103 103 103 103 103 103 103 103 1,236
Office expense 155 155 155 155 155 155 155 155 155 155 155 155 1,854
Payroll Expense – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Rent/Lease 155 155 155 155 155 155 155 155 155 155 155 155 1,854
Repair/Maintenance 309 309 309 309 309 309 309 309 309 309 309 309 3,708
Shipping and Delivery 52 52 52 52 52 52 52 52 52 52 52 52 618
Taxes – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Travel – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Utilities 155 155 155 155 155 155 155 155 155 155 155 155 1,854
Personnel expenses (Training, etc.) 155 155 155 155 155 155 155 155 155 155 155 155 1,854
Miscellaneous 155 155 155 155 155 155 155 155 155 155 155 155 1,854
Independent Contractors 1,545 1,545 1,545 1,545 1,545 1,545 1,545 1,545 1,545 1,545 1,545 1,545 18,540
Customer Service Call center 155 155 155 155 155 155 155 155 155 155 155 155 1,854
Coach 155 155 155 155 155 155 155 155 155 155 155 155 1,854
0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Total Fixed Expenses 4,532 4,532 4,532 4,532 4,532 4,532 4,532 4,532 4,532 4,532 4,532 4,532 54,384
Other Expenses
Amortized Start-up Expenses 275 275 275 275 275 275 275 275 275 275 275 275 3,300
Depreciation 488 488 488 488 488 488 488 488 488 488 488 488 5,857
Interest
Commercial Loan – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Commercial Mortgage 345 345 344 343 343 342 342 341 340 340 339 339 4,103
Line of Credit – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Taxes 177 177 177 429 429 597 597 681 681 513 430 346 5,234
Total Other Expenses 1,285 1,284 1,284 1,535 1,535 1,702 1,702 1,785 1,785 1,616 1,532 1,447 18,494
Net Income 726 727 727 2,156 2,156 3,109 3,109 3,586 3,586 2,635 2,159 1,684 26,359
1,178 1,178 1,179 2,860 2,860 3,981 3,981 4,542 4,543 3,423 2,864 2,304
1,178 2,356 3,535 6,395 9,255 13,236 17,217 21,759 26,302 29,725 32,589 34,893
13. Cash Flow Statement (2)
Joe’s Landscaping
Projected Cash Flow Statement – Year Two
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Totals
Beginning Cash Balance 35,905 37,495 39,084 40,143 42,935 46,205 48,821 53,210 58,001 60,990 65,137 68,564
Cash Inflows
Income from Sales 11,430 11,430 11,430 12,859 12,859 13,811 13,811 14,288 14,288 13,335 12,859 12,383 154,781
Accounts Receivable 3,810 3,810 3,810 3,810 4,286 4,286 4,604 4,604 4,763 4,763 4,445 4,286 51,276
Total Cash Inflows 15,240 15,240 15,240 16,669 17,145 18,098 18,415 18,891 19,050 18,098 17,304 16,669 206,058
Cash Outflows
Investing Activities
New Capital Purchases – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Inventory Purchases – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Cost of Sales 1,800 1,800 1,800 2,025 2,025 2,175 2,175 2,250 2,250 2,100 2,025 1,950 24,375
Operating Activities
Salaries and Wages 6,897 6,897 6,897 6,897 6,897 6,897 6,897 6,897 6,897 6,897 6,897 6,897 82,763
Fixed Expenses 4,532 4,532 4,532 4,532 4,532 4,532 4,532 4,532 4,532 4,532 4,532 4,532 54,384
Taxes – 0 – 0 530 – 0 – 0 1,455 – 0 – 0 1,960 – 0 – 0 1,289 5,234
Financing Activities – 0
Loan Payments 422 422 422 422 422 422 422 422 422 422 422 422 5,064
Line of Credit Interest – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Line of Credit Repayments – 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0 – …
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