Financial models for small business BACK

 

These models are customized to reflect the client's business. Typical features of a model:

 

Project models are provided to clients with telephone support for in-house use.

EXAMPLES OF FINANCIAL MODEL OUTPUTS:

  

PRO FORMA ANALYSIS             
YEAR 2013 2014 2015 2016 2028
Inflation - annual 2.0% 2.0% 2.0% 2.0%
Inflation - accumulated 100.0% 102.0% 104.0% 106.1% 134.6%
Revenue growth - annual 1% 1% 1%   1%
Revenue growth - accumulated 100.0% 101.0% 102.0% 103.0% 116.1%
SUMMARY OF FINANCIAL PERFORMANCE            
Retained earnings $4,929 ($20,820) ($20,200) ($20,260) ($11,930)
Total long term debt $4,000 $3,000 $2,000 $1,000 $0
Total short term debt $0 $0 $0 $0 $0
Total debt $4,000 $3,000 $2,000 $1,000 $0
Net Worth $763,929 $749,109 $734,909 $720,649 $540,149
Debt service coverage 76.47 121.68 130.14 140.75
Profit rate 1% -2% -2% -2% -1%
Debt/equity          0.01         0.00           0.00           0.00   
Operating Margin 7% -7% -7% -7% -1%
Cash Surplus $9,129 $6,780 $7,880 $9,020 $20,250
Net worth $763,929 $749,109 $734,909 $720,649 $540,149
Zero line (for plots on first sheet) 0 0 0 0 0
BALANCE SHEET            
Fixed Assets
Building and grounds $750,000 $754,000 $754,000 $754,000 $774,000
Equipment $68,000 $70,000 $76,000 $82,000 $121,000
Less depreciation ($60,200) ($88,800) ($117,880) ($148,160)   ($589,620)
Total Fixed Assets $757,800 $735,200 $712,120 $687,840 $305,380
Inventory $0 $0 $0 $0 $0
Cash And Cash Equivalents $10,129 $16,909 $24,789 $33,809   $234,769
Total Assets $767,929 $752,109 $736,909 $721,649 $540,149
Liabilities
Short term debt $0 $0 $0 $0 $0
Long term debt $4,000 $3,000 $2,000 $1,000   $0
Total debt $4,000 $3,000 $2,000 $1,000 $0
Net Worth $763,929 $749,109 $734,909 $720,649   $540,149
Total Debt plus Equity $767,929 $752,109 $736,909 $721,649 $540,149
Check digit (should be zero) 0 0 0 0 0
0 0 0 0
INCOME AND EXPENSES             
REVENUE
Retail sales $154,655 $159,330 $164,140 $169,090 $241,650
Interest earned $10 $101 $169 $248 $2,145
Other $0 $0 $0 $0 $0
Other $0 $0 $0 $0   $0
Total revenues $154,655 $159,330 $164,140 $169,090 $241,650
Less cost of sales ($52,495) ($53,540) ($54,610) ($55,700)   ($70,650)
Operating revenue $102,160 $105,790 $109,530 $113,390 $171,000
OPERATING EXPENSES
Wages $24,000 $24,720 $25,470 $26,240 $37,520
Salary $24,000 $24,720 $25,470 $26,240 $37,520
Vehicle costs $3,273 $3,370 $3,470 $3,570 $5,110
Telephone $3,600 $3,710 $3,820 $3,940 $5,640
Property rent $6,000 $6,180 $6,370 $6,560 $9,370
Utilities-electric, oil $1,800 $1,850 $1,910 $1,970 $2,810
Property Taxes $2,720 $2,800 $2,880 $2,970 $4,240
Business taxes $2,720 $2,800 $2,880 $2,970 $4,240
Insurance $1,800 $1,850 $1,910 $1,970 $2,810
Supplies $1,080 $1,110 $1,140 $1,170 $1,680
Repairs & Maint. $12,000 $12,360 $12,730 $13,110 $18,740
Advertising $240 $250 $260 $270 $390
Professional services $1,200 $1,240 $1,280 $1,320 $1,870
Bank fees $1,800 $1,850 $1,910 $1,970 $2,810
Other $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0
Depreciation $5,200 $28,600 $29,080 $30,280   $39,180
Total operating expenses $91,433 $117,410 $120,580 $124,550   $173,930
Earnings before interest, dividends and taxes $10,726 ($11,620) ($11,050) ($11,160) ($2,930)
Interest Costs on Debt  $250 $200 $150 $100   $0
Earnings before dividends and taxes $10,476 ($11,820) ($11,200) ($11,260) ($2,930)
Dividends - common shares $0 $0 $0 $0 $0
Dividends - prefered shares $4,500 $9,000 $9,000 $9,000 $9,000
Income Taxes $1,048 $0 $0 $0   $0
Retained earnings $4,929 ($20,820) ($20,200) ($20,260) ($11,930)
CASH FLOW             
Sources of cash
Retained earnings $4,929 ($20,820) ($20,200) ($20,260) ($11,930)
Less change in inventory $0 $0 $0 $0 $0
New long term loans $0 $0 $0 $0 $0
Common shares $117,000 $6,000 $6,000 $6,000 $0
Prefered shares $450,000 $0 $0 $0 $0
New short term loans $0 $0 $0 $0 $0
Add Back Depreciation $5,200 $28,600 $29,080 $30,280   $39,180
Total  $577,129 $13,780 $14,880 $16,020 $27,250
Application of cash
Investments $567,000 $6,000 $6,000 $6,000 $7,000
Repayment of long term debt $1,000 $1,000 $1,000 $1,000 $0
Repayment of short term debt $0 $0 $0 $0   $0
Total  $568,000 $7,000 $7,000 $7,000   $7,000
Cash surplus (deficit) $9,129 $6,780 $7,880 $9,020 $20,250
Accumulated surplus (deficit) - beginning balance $1,000 $10,129 $16,909 $24,789 $214,519
Accumulated surplus (deficit) - ending balance $10,129 $16,909 $24,789 $33,809 $234,769
Check digit (should be zero) 0 0 0 0 0