Mẫu Lập Dự Báo Tài Chính Bằng Excel
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Financial Projections Model For Business Plans Frank Moyes and Stephen Lawrence Deming Center for Entrepreneurship Leeds College of Business University of Colorado Boulder, Colorado Copyright © 2003 by the Regents of the University of Colorado
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Transcript of Mẫu Lập Dự Báo Tài Chính Bằng Excel
Financial Projections ModelFor Business Plans
Frank Moyes and Stephen Lawrence
Deming Center for EntrepreneurshipLeeds College of Business
University of ColoradoBoulder, Colorado
Copyright © 2003 by the Regents of the University of Colorado
Instructions Financial Projections Model v6.8.3
This financial model is designed to enable entrepreneurs and students project the financial results of their ventures for a five-year period. As with all models there are certain simplifying assumptions that have been made. Each of the assumption spreadsheets has an accompanying Comments box (denoted by a cell with small red triangle in the upper right corner) that provides suggestions on how to complete the spreadsheet and the underlying assumptions to the model.
You will notice that the cells in the spreadsheet are color-coded. This has been done to assist you in entering data, creating or changing formulae, or deleting data, formulae and links.
Enter data and information in Green shaded cells only.Blue shaded cells calculate results within a spreadsheet.Data in Yellow shaded cells is transferred to other worksheets.Purple shaded cells bring in data from other spreadsheets.
In the Green and Blue shaded cells, data and formulas may changed, moved or deleted. The current calculations are for illustration only -- you will need to tailor these spreadsheets to fit your plan.
In the Yellow shaded cells data and formulas may be changed, but not deleted.
DO NOT delete the Purple shaded cells -- they link one spreadsheet with others.
There are 7 principal spreadsheet outputs of this model: INCOME: Income Statement BALANCE: Balance Sheet CASHFLOW: Cash Flow Statement BREAKEVEN: Break-even analysis SUMMARY: Analysis of key measures INCOME-MOS: Income Statements by months for Years 1 to 5 CASHFLOW-MOS: Cash flow Statements by months for Years 1 and 2, and by quarters for Years 3 to 5 VAL-1 & VAL-2: Venture capital method for valuing companies
All other spreadsheets are to be used for calculating the underlying assumptions of the 7 principal spreadsheets:
COMPS: Comparison of financial measures to peer companies REVENUE: Revenue Projections COST OF REV: Cost of Goods Sold OPER EXPEN: Operating Expenses PROP & EQUIP: Capital Expenditures, Depreciation, and Net Fixed Assets SALARIES: Salary Personnel EXTRA: Extraordinary Income and Expense TAXES: Tax calculation WORKCAP: Working Capital FUNDING: Equity, Debt, Interest Expense, Interest Income, Dividends and Retained Earnings
These assumption spreadsheets are linked to each other and to the 7 principal spreadsheets. When you make a change in one of the spreadsheets, the impact is automatically recalculated for all other spreadsheets.
When doing financial projections, it is easy to get lost in the trees and lose the sense of what is reality. Most errors can be identified if you continuously ask yourself “Does this result make sense?” The COMPS spreadsheet, where you look at peer companies, can be particularly helpful as a reality test.
There is an example in the model with which you can experiment. When you are ready to start your own projections, clear all the numbers in the green shaded cells, and then you can begin to enter new numbers. Enter the name of your company in the first cell of the COMPS spreadsheet. Before you begin, make a copy of the model on a separate disk.
This original version of the model has been used since the mid-1980’s. It has undergone numerous revisions over that period. Since 1998, students in the Business Plan Preparation course at the University of Colorado have used it to prepare their business plans. We have appreciated their suggestions for improvements and would encourage all users to send us comments and suggestions.
Created by Frank Moyes and Stephen Lawrence Deming Center for Entrepreneurship Leeds School of Business University of Colorado Boulder, Colorado
Copyright © 2001 by the Regents of the University of Colorado
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XYZ Company NotesPeer Company Comparisons
Select BestCompany A Company B Company C Comparison Projections
Ratios Year 1 Year 2 Year 3 Year 4 Year 5Accounts Receivable % of Rev 10.0% 10.0% 8.3% 8.3% 8.3% 8.3% 8.3%Inventory % of Rev 15.0% 15.0% 8.3% 8.3% 6.7% 6.7% 6.7%Accounts Payable % of Rev 8.0% 8.0% 8.7% 8.7% 8.7% 8.7% 8.7%Working Capital % of Rev 16.0% 16.0% 7.9% 7.9% 6.3% 6.3% 6.3%Net Fixed Assets % of Rev 9.0% 9.0% 23.7% 11.5% 9.3% 7.3% 5.5%Current Ratio 2.3 2.3 4.2 2.0 2.0 1.9 2.1 Debt to Capital (LT Debt + Equity) 1.2 1.2 0.00 0.32 0.18 0.10 0.04
ProfitabilityGross Profit % of Rev 30.0% 30.0% -11.7% 32.7% 41.5% 42.5% 46.0%Sales & Marketing % of Rev 30.0% 22.9% 19.0% 18.5% 17.9% 18.0%Research & Development % of Rev 30.0% 14.9% 7.9% 7.2% 7.6% 6.7%General & Administration % of Rev 30.0% 17.2% 8.9% 8.1% 7.3% 6.8%Operating Expenses % of Rev 40.0% 17.0% 55.0% 35.7% 33.8% 32.9% 31.5%Earnings from Operations % of Rev 12.0% 12.0% -66.7% -3.0% 7.7% 9.6% 14.5%EBIT % of Rev 12.0% 12.0% -71.2% -3.0% 7.7% 9.6% 14.5%Depreciation % of Rev 3.0% 3.0% 4.3% 2.5% 2.5% 2.3% 2.0%EBITDA % of Rev 14.0% 14.0% -66.9% -0.5% 10.2% 11.9% 16.5%Net Earnings % of Rev 5.0% 5.0% -71.2% -4.2% 7.2% 6.2% 8.7%
ReturnsReturn on Assets 12.0% 12.0% -74.1% -9.5% 21.7% 20.0% 27.2%Return on Equity 15.0% 15.0% -90.4% -20.4% 39.7% 36.1% 45.2%Return on Capital (LT Debt + Equity) 15.0% 15.0% -90.4% -13.9% 32.4% 32.6% 43.5%
Growth Revenue Growth Rate - CAGR: 15.0% 15.0% 425.0% 85.7% 66.7% 60.0% Net Earnings Growth Rate - CAGR: 12.0% 12.0% Negative Negative 42.3% 124.6%
G1
Comparison of Financial Projections with Peer Companies Identify two or three companies that are similar to your venture where you can obtain financial information. Good sources are publicly traded companies in your industry, particularly those that have recently done an IPO. In more traditional industries you may find financial information by NAIC codes in Dun and Bradstreet or the Almanac of Business and Industrial Financial Ratios. When selecting peer companies, you need to consider how many years have they been in business. The financial measures of a company that has been in business for 10 years is likely to be considerable different than a start-up. For example, a start-up’s Sales & Marketing expenses, as a % of revenue, should be considerable greater than a mature company. In that case you should consider the peer company’s measures as a target that you may reach in year 5.
04/22/202310:32:56XYZ Company
Revenue ProjectionsYears 1 to 5($)
Year 1 Year 2 Year 3 Year 4 Year 5Product A
Number of Units 20,000 75,000 150,000 250,000 400,000 Price per unit 50 50 45 45 40
Total 1,000,000 3,750,000 6,750,000 11,250,000 16,000,000 Service B
Number of Customers 50,000 100,000 200,000 500,000 Fee per Customer 30 30 25 20
Total 0 1,500,000 3,000,000 5,000,000 10,000,000
Net Revenue 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000
Revenues by Months & Quarters($)
Months Year 1 Year 2 Year 3 Year 4 Year 5Month 1 0 262,500 Month 2 0 262,500 Month 3 0 367,500
Total 1st Quarter 0 892,500 2,000,000 3,000,000 5,000,000 Month 4 50,000 315,000 Month 5 80,000 367,500 Month 6 100,000 367,500
Total 2nd Quarter 230,000 1,050,000 2,500,000 4,000,000 6,000,000 Month 7 100,000 420,000 Month 8 120,000 525,000 Month 9 150,000 525,000
Total 3rd Quarter 370,000 1,470,000 2,500,000 4,500,000 7,000,000 Month 10 120,000 577,500 Month 11 130,000 630,000 Month 12 150,000 630,000
Total 4th Quarter 400,000 1,837,500 2,750,000 4,750,000 8,000,000 Total for year 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000
Average Revenue by Month 83,333 437,500 812,500 1,354,167 2,166,667 by Quarter 250,000 1,312,500 2,437,500 4,062,500 6,500,000
04/22/202310:32:56XYZ Company
Cost of RevenuesYears 1 to 5($)
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000
Cost of Revenue
Product AMaterial Costs per Unit 15.00 14.00 11.00 10.00 9.00Subcontact Costs per Unit 10.00 10.00 7.00 6.50 6.00
Total Direct Costs per Unit 25.00 24.00 18.00 16.50 15.00Unit Sales 20,000 75,000 150,000 250,000 400,000 Total Direct Costs 500,000 1,800,000 2,700,000 4,125,000 6,000,000
Labor Costs 69,000 227,700 552,000 864,000 1,200,000 Total Direct Costs 569,000 2,027,700 3,252,000 4,989,000 7,200,000
Service BService Personnel Costs 120,750 212,750 480,000 1,500,000 2,750,000
Other ExpensesSalary Expenses 276,000 690,000 990,000 1,410,000 2,000,000 Depreciation 36,714 91,714 137,429 190,286 243,143 Facility costs (rent, energy) 50,000 200,000 300,000 300,000 450,000 System Costs 25,000 100,000 150,000 300,000 350,000
All other costs % of Revenue 4% 40,000 210,000 390,000 650,000 1,040,000 Total Cost of Revenues 1,117,464 3,532,164 5,699,429 9,339,286 14,033,143
% of Revenue 111.7% 67.3% 58.5% 57.5% 54.0%
Allocation of Cost of Revenue between:Variable 729,750 2,450,450 4,122,000 7,139,000 10,990,000 Fixed 387,714 1,081,714 1,577,429 2,200,286 3,043,143
Total 1,117,464 3,532,164 5,699,429 9,339,286 14,033,143
Cost of Revenues by Months & Quarters($)
Year 1 Year 2 Year 3 Year 4 Year 5Month 1 0 176,608 0 0 0 Month 2 0 176,608 0 0 0 Month 3 0 247,252 0 0 0
Total 1st Quarter 0 600,468 1,169,114 1,724,176 2,698,681 Month 4 55,873 211,930 0 0 0 Month 5 89,397 247,252 0 0 0 Month 6 111,746 247,252 0 0 0
Total 2nd Quarter 257,017 706,433 1,461,392 2,298,901 3,238,418 Month 7 111,746 282,573 0 0 0 Month 8 134,096 353,216 0 0 0 Month 9 167,620 353,216 0 0 0
Total 3rd Quarter 413,462 989,006 1,461,392 2,586,264 3,778,154 Month 10 134,096 388,538 0 0 0 Month 11 145,270 423,860 0 0 0 Month 12 167,620 423,860 0 0 0
Total 4th Quarter 446,986 1,236,258 1,607,531 2,729,945 4,317,890 Total for year 1,117,464 3,532,164 5,699,429 9,339,286 14,033,143
04/22/202310:32:56XYZ Company
Operating ExpensesYears 1 to 5($)
Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000
Sales & MarketingDrivers
Salaries and Benefits 69,000 270,250 432,900 624,000 816,000 Commissions % of Revenue 5% 50,000 262,500 487,500 812,500 1,300,000 Direct Mail Campaign 50,000 150,000 300,000 500,000 1,000,000
All other expenses % of Revenue 6% 60,000 315,000 585,000 975,000 1,560,000 Total Sales and Marketing 229,000 997,750 1,805,400 2,911,500 4,676,000 % of Revenue 22.9% 19.0% 18.5% 17.9% 18.0%
Research & DevelopmentDrivers
Salaries and Benefits 69,000 195,500 310,050 504,000 672,000 Testing 50,000 60,000 100,000 250,000 300,000
All other expenses % of Revenue 3% 30,000 157,500 292,500 487,500 780,000 Total Reaserch & Development 149,000 413,000 702,550 1,241,500 1,752,000 % of Revenue 14.9% 7.9% 7.2% 7.6% 6.7%
General & AdministrationDrivers
Salaries and Benefits 125,000 300,150 388,440 573,600 784,800 Depreciation 6,667 40,000 106,667 183,333 266,667 Rent and Utilities 20,000 20,000 100,000 110,000 200,000
All other expenses % of Revenue 2% 20,000 105,000 195,000 325,000 520,000
Total General & Administration 171,667 465,150 790,107 1,191,933 1,771,467 % of Revenue 17.2% 8.9% 8.1% 7.3% 6.8%
Total Operating Expenses 549,667 1,875,900 3,298,057 5,344,933 8,199,467 % of Revenue 55.0% 35.7% 33.8% 32.9% 31.5%
Allocation of Operating Expenses between:Vaiable 160,000 840,000 1,560,000 2,600,000 4,160,000 Fixed 389,667 1,035,900 1,738,057 2,744,933 4,039,467
Total 549,667 1,875,900 3,298,057 5,344,933 8,199,467
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Sales & Marketing by Months & Quarters($)
Year 1 Year 2 Year 3 Year 4 Year 5Month 1 0 49,888 0 0 0 Month 2 0 49,888 0 0 0 Month 3 0 69,843 0 0 0
Total 1st Quarter 0 169,618 370,338 537,508 899,231 Month 4 11,450 59,865 0 0 0 Month 5 18,320 69,843 0 0 0 Month 6 22,900 69,843 0 0 0
Total 2nd Quarter 52,670 199,550 462,923 716,677 1,079,077 Month 7 22,900 79,820 0 0 0 Month 8 27,480 99,775 0 0 0 Month 9 34,350 99,775 0 0 0
Total 3rd Quarter 84,730 279,370 462,923 806,262 1,258,923 Month 10 27,480 109,753 0 0 0 Month 11 29,770 119,730 0 0 0 Month 12 34,350 119,730 0 0 0
Total 4th Quarter 91,600 349,213 509,215 851,054 1,438,769 Total for year 229,000 997,750 1,805,400 2,911,500 4,676,000
Research & Development by Months & Quarters($)
Year 1 Year 2 Year 3 Year 4 Year 5Month 1 0 20,650 0 0 0 Month 2 0 20,650 0 0 0 Month 3 0 28,910 0 0 0
Total 1st Quarter 0 70,210 144,113 229,200 336,923 Month 4 7,450 24,780 0 0 0 Month 5 11,920 28,910 0 0 0 Month 6 14,900 28,910 0 0 0
Total 2nd Quarter 34,270 82,600 180,141 305,600 404,308 Month 7 14,900 33,040 0 0 0 Month 8 17,880 41,300 0 0 0 Month 9 22,350 41,300 0 0 0
Total 3rd Quarter 55,130 115,640 180,141 343,800 471,692 Month 10 17,880 45,430 0 0 0 Month 11 19,370 49,560 0 0 0 Month 12 22,350 49,560 0 0 0
Total 4th Quarter 59,600 144,550 198,155 362,900 539,077 Total for year 149,000 413,000 702,550 1,241,500 1,752,000
General & Administrative by Months & Quarters($)
Year 1 Year 2 Year 3 Year 4 Year 5Month 1 0 23,258 0 0 0 Month 2 0 23,258 0 0 0 Month 3 0 32,561 0 0 0
Total 1st Quarter 0 79,076 162,073 220,049 340,667 Month 4 8,583 27,909 0 0 0 Month 5 13,733 32,561 0 0 0 Month 6 17,167 32,561 0 0 0
Total 2nd Quarter 39,483 93,030 202,591 293,399 408,800 Month 7 17,167 37,212 0 0 0 Month 8 20,600 46,515 0 0 0 Month 9 25,750 46,515 0 0 0
Total 3rd Quarter 63,517 130,242 202,591 330,074 476,933 Month 10 20,600 51,167 0 0 0 Month 11 22,317 55,818 0 0 0 Month 12 25,750 55,818 0 0 0
Total 4th Quarter 68,667 162,803 222,851 348,411 545,067 Total for year 171,667 465,150 790,107 1,191,933 1,771,467
04/22/202310:32:56XYZ Company
PersonnelYears 1 to 5($)
Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000
Sales & MarketingSales Manager 60,000 80,000 100,000 125,000 150,000 Marketing Manager 80,000 100,000 125,000 150,000 Customer service 40,000 120,000 200,000 250,000 Tech support 35,000 50,000 70,000 130,000 (other…)(other…)(other…)
Total Salary 60,000 235,000 370,000 520,000 680,000 BenefitsPercent (%) 15% 15% 17% 20% 20%
Total benefit costs 9,000 35,250 62,900 104,000 136,000 Total S & M Compensation 69,000 270,250 432,900 624,000 816,000 % of Revenue 6.9% 5.1% 4.4% 3.8% 3.1%
Research and DevelopmentR & D Manager 80,000 100,000 125,000 150,000 Engineers 60,000 60,000 130,000 230,000 300,000 Technicians 30,000 35,000 65,000 110,000 Subcontract(other…)(other…)
Total Salary 60,000 170,000 265,000 420,000 560,000 BenefitsPercent (%) 15% 15% 17% 20% 20%
Total benefit costs 9,000 25,500 45,050 84,000 112,000 Total R & D Compensation 69,000 195,500 310,050 504,000 672,000 % of Revenue 6.9% 3.7% 3.2% 3.1% 2.6%
General & AdministrationChief Executive Officer 60,000 80,000 100,000 125,000 150,000 Chief Financial Officer 50,000 60,000 75,000 100,000 Accounting 40,000 45,000 25,000 50,000 75,000 Secretarial 25,000 26,000 27,000 28,000 29,000 Clerks and admin personnel 60,000 120,000 200,000 300,000 (other…)(other…)
Total Salary 125,000 261,000 332,000 478,000 654,000 BenefitsPercent (%) 15% 15% 17% 20% 20%
Total benefit costs 0 39,150 56,440 95,600 130,800 Total G & A Compensation 125,000 300,150 388,440 573,600 784,800 % of Revenue 12.5% 5.7% 4.0% 3.5% 3.0%
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Cost of RevenueManufacturing Personnel
Operations Manager 100,000 125,000 150,000 175,000 200,000 Quality Assurance 50,000 100,000 150,000 300,000 350,000 Materials and Logistics 40,000 150,000 200,000 300,000 450,000 Engineering 75,000 125,000 150,000 300,000 Other personnel 50,000 150,000 200,000 250,000 300,000 (other...)
Total Salary 240,000 600,000 825,000 1,175,000 1,600,000 BenefitsPercent (%) 15% 15% 20% 20% 25%
Total benefit costs 36,000 90,000 165,000 235,000 400,000 Total Salary Costs 276,000 690,000 990,000 1,410,000 2,000,000
Hourly PersonnelNumber of employees 3 9 20 30 40 Average wages per employee 20,000 22,000 23,000 24,000 24,000
Total wages 60,000 198,000 460,000 720,000 960,000 BenefitsPercent (%) 15% 15% 20% 20% 25%
Total benefit costs 9,000 29,700 92,000 144,000 240,000 Total Wage Costs 69,000 227,700 552,000 864,000 1,200,000
Service PersonnelNumber of employees 3 5 10 25 40 Salary per employee 35,000 37,000 40,000 50,000 55,000
Total salaries 105,000 185,000 400,000 1,250,000 2,200,000 BenefitsPercent (%) 15% 15% 20% 20% 25%
Total benefit costs 15,750 27,750 80,000 250,000 550,000 Total Salary Costs 120,750 212,750 480,000 1,500,000 2,750,000
Total COR's Compensation 465,750 1,130,450 2,022,000 3,774,000 5,950,000 % of Revenue 46.6% 21.5% 20.7% 23.2% 22.9%
Total Salary & Wages 545,000 1,464,000 2,252,000 3,313,000 4,454,000 Total Benefits 63,000 219,600 421,390 662,600 1,018,800 Total Compensation 728,750 1,896,350 3,153,390 5,475,600 8,222,800 % of Revenue 72.9% 36.1% 32.3% 33.7% 31.6%
04/22/202310:32:56XYZ Company
Extraordinary Income & ExpenseYears 1 to 5($)
Year 1 Year 2 Year 3 Year 4 Year 5
Income (Item…) 0 (Item…) (Item…)
Total 0 0 0 0 0 Start-up expenses
Legal 25,000 Relocation 20,000
(Item…)Total 45,000 0 0 0 0
Total Extraordinary Income/(Expense) (45,000) 0 0 0 0
Extraordinary Income and Expense by Months & Quarters($)
Year 1 Year 2 Year 3 Year 4 Year 5Month 1 (25,000)Month 2 (20,000)Month 3
Total 1st Quarter (45,000) 0 0 0 0 Month 4Month 5Month 6
Total 2nd Quarter 0 0 0 0 0 Month 7Month 8Month 9
Total 3rd Quarter 0 0 0 0 0 Month 10Month 11Month 12
Total 4th Quarter 0 0 0 0 0 Total for year (45,000) 0 0 0 0
04/22/202310:32:56XYZ Company
TaxesYears 1 to 5($)
Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000
Income Tax (Rate Federal & State) 0.40 0.40 0.40 0.40 0.40
Net Earnings Before Taxes (712,131) (218,064) 704,515 1,520,781 3,753,390 Cumulative (712,131) (930,195) (225,681) 1,295,100 5,048,491
Taxes 0 0 0 (518,040) (1,501,356) Percent of Revenues 0.0% 0.0% 0.0% -3.2% -5.8%
04/22/202310:32:56XYZ Company
Property and EquipmentYears 1 to 5($)
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5Purchased
Net Revenues Assets 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000
Capital ExpendituresComputers, Software & Office Equipment 20,000 100,000 200,000 250,000 350,000 Plant & Equipment 250,000 350,000 250,000 300,000 300,000 Other 10,000 50,000 100,000 100,000 100,000
Total Capital Expenditures 0 280,000 500,000 550,000 650,000 750,000 % of Revenue 28.0% 9.5% 5.6% 4.0% 2.9%
Depreciation Computers, Sofware & Office Equipment (allocated to General & Administrative Expenses) Depreciation Rate: Years 1 3 3 3 3 3 Year 0 0 0 0 0 0 Year 1 6,667 6,667 6,667 0 0 Year 2 33,333 33,333 33,333 0 Year 3 66,667 66,667 66,667 Year 4 83,333 83,333 Year 5 116,667
Total Depreciation 6,667 40,000 106,667 183,333 266,667
Depreciation on Plant and Equipment (allocated to Cost of Revenue) Depreciation Rate: Years 1 7 7 7 7 7 Year 0 0 0 0 0 0 Year 1 35,714 35,714 35,714 35,714 35,714 Year 2 50,000 50,000 50,000 50,000 Year 3 35,714 35,714 35,714 Year 4 42,857 42,857 Year 5 42,857
Total Depreciation 35,714 85,714 121,429 164,286 207,143
Depreciation Other (allocated to Cost of Revenue) Depreciation Rate: Years 1 10 10 10 10 10 Year 0 0 0 0 0 0 Year 1 1,000 1,000 1,000 1,000 1,000 Year 2 5,000 5,000 5,000 5,000 Year 3 10,000 10,000 10,000 Year 4 10,000 10,000 Year 5 10,000
Total Depreciation 1,000 6,000 16,000 26,000 36,000
Total Depreciation 43,381 131,714 244,095 373,619 509,810 % of Revenue 4.3% 2.5% 2.5% 2.3% 2.0%
Property & Equipment Gross Asset Value 0 280,000 780,000 1,330,000 1,980,000 2,730,000 Accumulated Depreciation 43,381 175,095 419,190 792,810 1,302,619
Net Property and Equipment 0 236,619 604,905 910,810 1,187,190 1,427,381 % of Revenue 23.7% 11.5% 9.3% 7.3% 5.5%
Capital Expenditures by Months & Quarters($)
Year 1 Year 2 Year 3 Year 4 Year 5Month 1 50,000 100,000 Month 2 100,000 100,000 Month 3 50,000
Total 1st Quarter 200,000 200,000 100,000 200,000 200,000 Month 4 40,000 Month 5Month 6 100,000
Total 2nd Quarter 40,000 100,000 200,000 200,000 200,000 Month 7 40,000 Month 8Month 9 100,000
Total 3rd Quarter 40,000 100,000 100,000 100,000 200,000 Month 10Month 11Month 12 100,000
Total 4th Quarter 0 100,000 150,000 150,000 150,000 Total for year 280,000 500,000 550,000 650,000 750,000
B5
Purchased Assets To be used when your venture purchases an existing business.
04/22/202310:32:56XYZ Company
Working CapitalYears 1 to 5($)
Year 1 Year 2 Year 3 Year 4 Year 5Net Revenues 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000
Accounts Receivable% of Revenue 8.3% 8.3% 8.3% 8.3% 8.3%Days Outstanding 30 30 30 30 30Accounts Receivable 149,400 627,480 913,000 1,577,000 2,656,000 (Increase)/Decrease from Prev. Period (149,400) (478,080) (285,520) (664,000) (1,079,000)
Inventory% of Revenue 8.3% 8.3% 6.7% 6.7% 6.7%Inventory Turns 12 12 15 15 15Inventory Days 30 30 24 24 24Inventory 149,400 627,480 737,000 1,273,000 2,144,000 (Increase)/Decrease from Prev. Period (149,400) (478,080) (109,520) (536,000) (871,000)
Other Current Assets% of Revenue 1.0% 1.0% 1.0% 1.0% 1.0%Days 4 4 4 4 4 Other CA Value 18,000 75,600 110,000 190,000 320,000 (Increase)/Decrease from Prev. Period (18,000) (57,600) (34,400) (80,000) (130,000)
Accounts Payable & Accrued Expenses% of Revenue 8.7% 8.7% 8.7% 8.7% 8.7%Days 31 31 31 31 31 AP & Accrued Value 155,720 657,720 957,000 1,653,000 2,784,000 Increase/(Decrease) from Prev. Period 155,720 502,000 299,280 696,000 1,131,000
Other Current Liabilites% of Revenue 1.0% 1.0% 1.0% 1.0% 1.0%Days 4 4 4 4 4 Other Current Liabilities 18,000 75,600 110,000 190,000 320,000 Increase/(Decrease) from Prev. Period 18,000 57,600 34,400 80,000 130,000
Revenues by Months & Quarters($)
Year 1 Year 2 Year 3 Year 4 Year 5Month 1 0 262,500 0 0 0 Month 2 0 262,500 0 0 0 Month 3 0 367,500 0 0 0
Total 1st Quarter 0 892,500 2,000,000 3,000,000 5,000,000 Month 4 50,000 315,000 0 0 0 Month 5 80,000 367,500 0 0 0 Month 6 100,000 367,500 0 0 0
Total 2nd Quarter 230,000 1,050,000 2,500,000 4,000,000 6,000,000 Month 7 100,000 420,000 0 0 0 Month 8 120,000 525,000 0 0 0 Month 9 150,000 525,000 0 0 0
Total 3rd Quarter 370,000 1,470,000 2,500,000 4,500,000 7,000,000 Month 10 120,000 577,500 0 0 0 Month 11 130,000 630,000 0 0 0 Month 12 150,000 630,000 0 0 0
Total 4th Quarter 400,000 1,837,500 2,750,000 4,750,000 8,000,000 Total for year 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000
Accounts Receivable by Months & Quarters($)
Year 1 Year 2 Year 3 Year 4 Year 5Month 1 - 261,450 Month 2 - 261,450 Month 3 - 366,030 664,000 996,000 1,660,000 Month 4 49,800 313,740 Month 5 79,680 366,030 Month 6 99,600 366,030 830,000 1,328,000 1,992,000 Month 7 99,600 418,320
B17
Moyes: Inventory turns chancges each year to reflect the differnet mix of product and services
04/22/202310:32:56
Month 8 119,520 522,900 Month 9 149,400 522,900 830,000 1,494,000 2,324,000 Month 10 119,520 575,190 Month 11 129,480 627,480 Month 12 149,400 627,480 913,000 1,577,000 2,656,000
Inventory by Months & Quarters($)
Year 1 Year 2 Year 3 Year 4 Year 5Month 1 - 261,450 Month 2 - 261,450 Month 3 - 366,030 536,000 804,000 1,340,000 Month 4 49,800 313,740 Month 5 79,680 366,030 Month 6 99,600 366,030 670,000 1,072,000 1,608,000 Month 7 99,600 418,320 Month 8 119,520 522,900 Month 9 149,400 522,900 670,000 1,206,000 1,876,000 Month 10 119,520 575,190 Month 11 129,480 627,480 Month 12 149,400 627,480 737,000 1,273,000 2,144,000
Other Current Assets by Months & Quarters($)
Year 1 Year 2 Year 3 Year 4 Year 5Month 1 - 31,500 Month 2 - 31,500 Month 3 - 44,100 80,000 120,000 200,000 Month 4 6,000 37,800 Month 5 9,600 44,100 Month 6 12,000 44,100 100,000 160,000 240,000 Month 7 12,000 50,400 Month 8 14,400 63,000 Month 9 18,000 63,000 100,000 180,000 280,000 Month 10 14,400 69,300 Month 11 15,600 75,600 Month 12 18,000 75,600 110,000 190,000 320,000
04/22/202310:32:56
Accounts Payble & Accrued Expenses by Months & Quarters($)
Year 1 Year 2 Year 3 Year 4 Year 5Month 1 - 6,600 Month 2 0 0 Month 3 31 31 696,000 1,044,000 1,740,000 Month 4 50,000 331,170 Month 5 82,200 381,360 Month 6 103,520 383,670 870,000 1,392,000 2,088,000 Month 7 104,400 436,170 Month 8 124,400 543,480 Month 9 155,280 548,100 870,000 1,566,000 2,436,000 Month 10 126,600 600,600 Month 11 135,280 655,410 Month 12 155,720 657,720 957,000 1,653,000 2,784,000
Other Current Liabilities by Months & Quarters($)
Year 1 Year 2 Year 3 Year 4 Year 5Month 1 - 31,500 Month 2 - 31,500 Month 3 - 44,100 80,000 120,000 200,000 Month 4 6,000 37,800 Month 5 9,600 44,100 Month 6 12,000 44,100 100,000 160,000 240,000 Month 7 12,000 50,400 Month 8 14,400 63,000 Month 9 18,000 63,000 100,000 180,000 280,000 Month 10 14,400 69,300 Month 11 15,600 75,600 Month 12 18,000 75,600 110,000 190,000 320,000
04/22/202310:32:56XYZ Company
Funding ProjectionsYears 1 to 5($)
Begin Year 1 Year 2 Year 3 Year 4 Year 5Beginning Cash 1,500,000 Equity
Common 500,000 500,000 500,000 500,000 500,000 500,000 Increase / (Decrease) Previous Period 0 0 0 0 0
PreferredA Round 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 B Round 500,000 500,000 500,000 500,000
Total Preferred 1,000,000 1,000,000 1,500,000 1,500,000 1,500,000 1,500,000 Increase / (Decrease) Previous Period 0 500,000 0 0 0
Total Equity 1,500,000 1,500,000 2,000,000 2,000,000 2,000,000 2,000,000
Debt Short Term Debt 100,000
Increase / (Decrease) Previous Period 0 0 0 100,000 (100,000)
Long Term DebtCurrent Portion 100,000 100,000 100,000 100,000 Long Term Portion 400,000 300,000 200,000 100,000
Total Long Term Debt 0 500,000 400,000 300,000 200,000
Increase / (Decrease) Previous PeriodCurrent Portion 0 100,000 0 0 0 Long Term Protion 0 400,000 (100,000) (100,000) (100,000)
Total Long Term Debt 0 500,000 (100,000) (100,000) (100,000)
Total Equity & Debt 1,500,000 1,500,000 2,500,000 2,400,000 2,400,000 2,200,000
Interest Interest Rate
Short Term Debt 9.0% 9.0% 9.0% 9.0% 9.0%Long Term Debt 12.0% 12.0% 12.0% 12.0% 12.0%
Interest ExpenseShort Term Debt 0 0 0 9,000 0 Long Term Debt 0 60,000 48,000 36,000 24,000 Total Interest 0 60,000 48,000 45,000 24,000
Interest IncomeInterest Rate 4.0% 4.0% 4.0% 4.0% 4.0%Interest Income 0 0 0 0 10,000
Retained EarningsNet Income (712,131) (218,064) 704,515 1,002,741 2,252,034 Dividends 50,000 Increase / (Decrease) Retained Earnings (712,131) (218,064) 704,515 1,002,741 2,202,034 Beginning Retained Earnings 0 (712,131) (930,195) (225,681) 777,060 Ending Retained Earnings (712,131) (930,195) (225,681) 777,060 2,979,094
04/22/202310:32:56XYZ Company
Income StatementYears 1 to 5($)
Year 1 Year 2 Year 3 Year 4 Year 5
NET REVENUES 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000
COST OF REVENUE 1,117,464 3,532,164 5,699,429 9,339,286 14,033,143 % of Revenues 111.7% 67.3% 58.5% 57.5% 54.0%
GROSS PROFIT (117,464) 1,717,836 4,050,571 6,910,714 11,966,857 % of Revenues -11.7% 32.7% 41.5% 42.5% 46.0%
OPERATING EXPENSES Sales & Marketing 229,000 997,750 1,805,400 2,911,500 4,676,000 Research & Development 149,000 413,000 702,550 1,241,500 1,752,000 General and Administration 171,667 465,150 790,107 1,191,933 1,771,467 Total Operating Expenses 549,667 1,875,900 3,298,057 5,344,933 8,199,467 % of Revenues 55% 36% 34% 33% 32%
EARNINGS FROM OPERATIONS (667,131) (158,064) 752,515 1,565,781 3,767,390
EXTRAORDINARY INCOME / (EXPENSE) (45,000) 0 0 0 0
EARNINGS BEFORE INTEREST & TAXES (712,131) (158,064) 752,515 1,565,781 3,767,390
INTEREST INCOME / (EXPENSE) 0 (60,000) (48,000) (45,000) (14,000)
NET EARNINGS BEFORE TAXES (712,131) (218,064) 704,515 1,520,781 3,753,390
TAXES 0 0 0 (518,040) (1,501,356)
NET EARNINGS (712,131) (218,064) 704,515 1,002,741 2,252,034 % of Revenues -71.2% -4.2% 7.2% 6.2% 8.7%
04/22/202310:32:56XYZ Company
Balance SheetYears 1 to 5($)
Begin Year 1 Year 2 Year 3 Year 4
ASSETS CURRENT ASSETS Cash 1,500,000 408,170 367,660 570,510 792,870 Accounts Receivable 149,400 627,480 913,000 1,577,000 Inventories 149,400 627,480 737,000 1,273,000 Other Current Assets 18,000 75,600 110,000 190,000
Total Current Assets 1,500,000 724,970 1,698,220 2,330,510 3,832,870 PROPERTY & EQUIPMENT 0 236,619 604,905 910,810 1,187,190
TOTAL ASSETS 1,500,000 961,589 2,303,125 3,241,319 5,020,060
LIABILITIES & SHAREHOLDERS' EQUITY CURRENT LIABILITIES Short Term Debt 0 0 0 0 100,000 Accounts Payable & Accrued Expen 155,720 657,720 957,000 1,653,000 Other Current Liab 18,000 75,600 110,000 190,000 Current portion of long term debt 0 0 100,000 100,000 100,000
Total Current Liabilities 0 173,720 833,320 1,167,000 2,043,000
0 0 400,000 300,000 200,000
STOCKHOLDERS' EQUITY CommonStock 500,000 500,000 500,000 500,000 500,000 Preferred Stock 1,000,000 1,000,000 1,500,000 1,500,000 1,500,000 Retained Earnings (712,131) (930,195) (225,681) 777,060
Total Equity 1,500,000 787,869 1,069,805 1,774,319 2,777,060 TOTAL LIABILITIES & EQUITY 1,500,000 961,589 2,303,125 3,241,319 5,020,060
LONG TERM DEBT (less current portion)
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Year 5
1,735,714 2,656,000 2,144,000
320,000 6,855,714 1,427,381 8,283,094
0 2,784,000
320,000 100,000
3,204,000
100,000
500,000 1,500,000 2,979,094 4,979,094 8,283,094
04/22/202310:32:56XYZ Company
Cash Flow StatememtYears 1 to 5($)
Year 1 Year 2 Year 3 Year 4OPERATING ACTIVITIES Net Earnings (712,131) (218,064) 704,515 1,002,741 Depreciation 43,381 131,714 244,095 373,619 Working Capital Changes
(Increase)/Decrease Accounts Receivable (149,400) (478,080) (285,520) (664,000)(Increase)/Decrease Inventories (149,400) (478,080) (109,520) (536,000)(Increase)/Decrease Other Current Assets (18,000) (57,600) (34,400) (80,000)Increase/(Decrease) Accts Pay & Accrd Expenses 155,720 502,000 299,280 696,000 Increase/(Decrease) Other Current Liab 18,000 57,600 34,400 80,000 Net Cash Provided/(Used) by Operating Activities (811,830) (540,510) 852,850 872,360
INVESTING ACTIVITIES Property & Equipment (280,000) (500,000) (550,000) (650,000) Other
Net Cash Used in Investing Activities (280,000) (500,000) (550,000) (650,000)
FINANCING ACTIVITIES Increase/(Decrease) Short Term Debt 0 0 0 100,000 Increase/(Decrease) Curr. Portion LTD 0 100,000 0 0 Increase/(Decrease) Long Term Debt 0 400,000 (100,000) (100,000) Increase/(Decrease) Common Stock 0 0 0 0 Increase/(Decrease) Preferred Stock 0 500,000 0 0 Dividends Declared 0 0 0 0
Net Cash Provided / (Used) by Financing 0 1,000,000 (100,000) 0
INCREASE/(DECREASE) IN CASH (1,091,830) (40,510) 202,850 222,360
CASH AT BEGINNING OF YEAR 1,500,000 408,170 367,660 570,510 CASH AT END OF YEAR 1,500,000 408,170 367,660 570,510 792,870
04/22/202310:32:56
Year 5
2,252,034 509,810
(1,079,000)(871,000)(130,000)
1,131,000 130,000
1,942,844
(750,000)
(750,000)
(100,000)0
(100,000)0 0
(50,000)(250,000)
942,844
792,870 1,735,714
04/22/202310:32:56
XYZ CompanyBreak-Even AnalysisYears 1 to 5($)
Year 1 Year 2 Year 3 Year 4 Year 5Revenue 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000
Cost of RevenueVariable 729,750 2,450,450 4,122,000 7,139,000 10,990,000 Fixed 387,714 1,081,714 1,577,429 2,200,286 3,043,143 Total 1,117,464 3,532,164 5,699,429 9,339,286 14,033,143
Operating ExpensesVariable 160,000 840,000 1,560,000 2,600,000 4,160,000 Fixed 389,667 1,035,900 1,738,057 2,744,933 4,039,467 Total 549,667 1,875,900 3,298,057 5,344,933 8,199,467
Total Costs & ExpensesVariable 889,750 3,290,450 5,682,000 9,739,000 15,150,000 Fixed 777,381 2,117,614 3,315,485 4,945,219 7,082,610 Total 1,667,131 5,408,064 8,997,485 14,684,219 22,232,610
Variable Costs/Revenue Ratio 0.89 0.63 0.58 0.60 0.58
Break-Even Point Revenues 7,051,076 5,673,484 7,946,406 12,342,161 16,972,152
04/22/202310:32:56XYZ Company
Income Statement Year 1Year 1 by Months Total Annual
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 12 Months Projection
NET REVENUES 0 0 0 50,000 80,000 100,000 100,000 120,000 150,000 120,000 130,000 150,000 1,000,000 1,000,000
COST OF REVENUE 0 0 0 55,873 89,397 111,746 111,746 134,096 167,620 134,096 145,270 167,620 1,117,464 1,117,464
GROSS PROFIT 0 0 0 (5,873) (9,397) (11,746) (11,746) (14,096) (17,620) (14,096) (15,270) (17,620) (117,464) (117,464)
OPERATING EXPENSES Sales & Marketing 0 0 0 11,450 18,320 22,900 22,900 27,480 34,350 27,480 29,770 34,350 229,000 229,000 Research & Development 0 0 0 7,450 11,920 14,900 14,900 17,880 22,350 17,880 19,370 22,350 149,000 149,000 General and Administration 0 0 0 8,583 13,733 17,167 17,167 20,600 25,750 20,600 22,317 25,750 171,667 171,667 Total Operating Expenses 0 0 0 27,483 43,973 54,967 54,967 65,960 82,450 65,960 71,457 82,450 549,667 549,667
EARNINGS FROM OPERATIONS 0 0 0 (33,357) (53,370) (66,713) (66,713) (80,056) (100,070) (80,056) (86,727) (100,070) (667,131) (667,131)
EXTRAORDINARY INCOME / (EXPENSE) (25,000) (20,000) 0 0 0 0 0 0 0 0 0 0 (45,000) (45,000)
EARNINGS BEFORE INTEREST & TAXES (25,000) (20,000) 0 (33,357) (53,370) (66,713) (66,713) (80,056) (100,070) (80,056) (86,727) (100,070) (712,131) (712,131)
INTEREST INCOME / (EXPENSE) 0 0 0 0 0 0 0 0 0 0 0 0 0 0
NET EARNINGS BEFORE TAXES (25,000) (20,000) 0 (33,357) (53,370) (66,713) (66,713) (80,056) (100,070) (80,056) (86,727) (100,070) (712,131) (712,131)
TAXES 0 0 0 0 0 0 0 0 0 0 0 0 0 0
NET EARNINGS (25,000) (20,000) 0 (33,357) (53,370) (66,713) (66,713) (80,056) (100,070) (80,056) (86,727) (100,070) (712,131) (712,131)
XYZ CompanyIncome Statement Year 2Year 2 by Months Total Annual
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 12 Months Projection
NET REVENUES 262,500 262,500 367,500 315,000 367,500 367,500 420,000 525,000 525,000 577,500 630,000 630,000 5,250,000 5,250,000
COST OF REVENUE 176,608 176,608 247,252 211,930 247,252 247,252 282,573 353,216 353,216 388,538 423,860 423,860 3,532,164 3,532,164
GROSS PROFIT 85,892 85,892 120,249 103,070 120,249 120,249 137,427 171,784 171,784 188,962 206,140 206,140 1,717,836 1,717,836
OPERATING EXPENSES Sales & Marketing 49,888 49,888 69,843 59,865 69,843 69,843 79,820 99,775 99,775 109,753 119,730 119,730 997,750 997,750 Research & Development 20,650 20,650 28,910 24,780 28,910 28,910 33,040 41,300 41,300 45,430 49,560 49,560 413,000 413,000 General and Administration 23,258 23,258 32,561 27,909 32,561 32,561 37,212 46,515 46,515 51,167 55,818 55,818 465,150 465,150 Total Operating Expenses 93,795 93,795 131,313 112,554 131,313 131,313 150,072 187,590 187,590 206,349 225,108 225,108 1,875,900 1,875,900
EARNINGS FROM OPERATIONS (7,903) (7,903) (11,065) (9,484) (11,065) (11,065) (12,645) (15,806) (15,806) (17,387) (18,968) (18,968) (158,064) (158,064)
EXTRAORDINARY INCOME / (EXPENSE) 0 0 0 0 0 0 0 0 0 0 0 0 0 0
EARNINGS BEFORE INTEREST & TAXES (7,903) (7,903) (11,065) (9,484) (11,065) (11,065) (12,645) (15,806) (15,806) (17,387) (18,968) (18,968) (158,064) (158,064)
INTEREST INCOME / (EXPENSE) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (60,000) (60,000)
NET EARNINGS BEFORE TAXES (12,903) (12,903) (16,065) (14,484) (16,065) (16,065) (17,645) (20,806) (20,806) (22,387) (23,968) (23,968) (218,064) (218,064)
TAXES 0 0 0 0 0 0 0 0 0 0 0 0 0 0
NET EARNINGS (12,903) (12,903) (16,065) (14,484) (16,065) (16,065) (17,645) (20,806) (20,806) (22,387) (23,968) (23,968) (218,064) (218,064)
04/22/202310:32:56XYZ Company
Income Statement Year 3 Year 4 Year 5Years 3, 4 & 5 by Quarters Annual Annual Annual
Year 3 Year 4 Year 5 Projection Projection Projection1st Qtr 2nd Qrtr 3rd Qrtr 4th Qrtr Total 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
NET REVENUES 2,000,000 2,500,000 2,500,000 2,750,000 9,750,000 3,000,000 4,000,000 4,500,000 4,750,000 16,250,000 5,000,000 6,000,000 7,000,000 8,000,000 26,000,000 9,750,000 16,250,000 26,000,000 0 0 0
COST OF REVENUE 1,169,114 1,461,392 1,461,392 1,607,531 5,699,429 1,724,176 2,298,901 2,586,264 2,729,945 9,339,286 2,698,681 3,238,418 3,778,154 4,317,890 14,033,143 5,699,429 9,339,286 14,033,143
GROSS PROFIT 830,886 1,038,608 1,038,608 1,142,469 4,050,571 1,275,824 1,701,099 1,913,736 2,020,055 6,910,714 2,301,319 2,761,582 3,221,846 3,682,110 11,966,857 4,050,571 6,910,714 11,966,857
OPERATING EXPENSES Sales & Marketing 370,338 462,923 462,923 509,215 1,805,400 537,508 716,677 806,262 851,054 2,911,500 899,231 1,079,077 1,258,923 1,438,769 4,676,000 1,805,400 2,911,500 4,676,000 Research & Development 144,113 180,141 180,141 198,155 702,550 229,200 305,600 343,800 362,900 1,241,500 336,923 404,308 471,692 539,077 1,752,000 702,550 1,241,500 1,752,000 General and Administration 162,073 202,591 202,591 222,851 790,107 220,049 293,399 330,074 348,411 1,191,933 340,667 408,800 476,933 545,067 1,771,467 790,107 1,191,933 1,771,467 Total Operating Expenses 676,524 845,656 845,656 930,221 3,298,057 986,757 1,315,676 1,480,135 1,562,365 5,344,933 1,576,821 1,892,185 2,207,549 2,522,913 8,199,467 3,298,057 5,344,933 8,199,467
EARNINGS FROM OPERATIONS 154,362 192,953 192,953 212,248 752,515 289,067 385,423 433,601 457,690 1,565,781 724,498 869,398 1,014,297 1,159,197 3,767,390 752,515 1,565,781 3,767,390
EXTRAORDINARY INCOME / (EXPENSE) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
EARNINGS BEFORE INTEREST & TAXES 154,362 192,953 192,953 212,248 752,515 289,067 385,423 433,601 457,690 1,565,781 724,498 869,398 1,014,297 1,159,197 3,767,390 752,515 1,565,781 3,767,390
INTEREST INCOME / (EXPENSE) (12,000) (12,000) (12,000) (12,000) (48,000) (11,250) (11,250) (11,250) (11,250) (45,000) (3,500) (3,500) (3,500) (3,500) (14,000) (48,000) (45,000) (14,000)
NET EARNINGS BEFORE TAXES 142,362 180,953 180,953 200,248 704,515 277,817 374,173 422,351 446,440 1,520,781 720,998 865,898 1,010,797 1,155,697 3,753,390 704,515 1,520,781 3,753,390
TAXES 0 0 0 0 0 (94,636) (127,459) (143,870) (152,076) (518,040) (288,399) (346,359) (404,319) (462,279) (1,501,356) 0 (518,040) (1,501,356)
NET EARNINGS 142,362 180,953 180,953 200,248 704,515 183,181 246,714 278,481 294,364 1,002,741 432,599 519,539 606,478 693,418 2,252,034 704,515 1,002,741 2,252,034
04/22/202310:32:56XYZ Company
Cash Flow Statement Year 1Year 1 by Months Estimated Annual
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1 ProjectionOPERATING ACTIVITIES Net Earnings (25,000) (20,000) 0 (33,357) (53,370) (66,713) (66,713) (80,056) (100,070) (80,056) (86,727) (100,070) (712,131) (712,131) Depreciation 3,615 3,615 3,615 3,615 3,615 3,615 3,615 3,615 3,615 3,615 3,615 3,615 43,381 43,381 Working Capital Changes
(Increase)/Decrease Accounts Receivable 0 0 0 (49,800) (29,880) (19,920) 0 (19,920) (29,880) 29,880 (9,960) (19,920) (149,400) (149,400)(Increase)/Decrease Inventories 0 0 0 (49,800) (29,880) (19,920) 0 (19,920) (29,880) 29,880 (9,960) (19,920) (149,400) (149,400)(Increase)/Decrease Other Current Assets 0 0 0 (6,000) (3,600) (2,400) 0 (2,400) (3,600) 3,600 (1,200) (2,400) (18,000) (18,000)Increase/(Decrease) Accts Pay & Accrd Expenses 0 0 31 49,969 32,200 21,320 880 20,000 30,880 (28,680) 8,680 20,440 155,720 155,720 Increase/(Decrease) Other Current Liab 0 0 0 6,000 3,600 2,400 0 2,400 3,600 (3,600) 1,200 2,400 18,000 18,000 Net Cash Provided/(Used) by Operating Activities (21,385) (16,385) 3,646 (79,373) (77,315) (81,618) (62,218) (96,281) (125,335) (45,361) (94,352) (115,855) (811,830) (811,830)
INVESTING ACTIVITIES Property & Equipment (50,000) (100,000) (50,000) (40,000) 0 0 (40,000) 0 0 0 0 0 (280,000) (280,000) Other 0 0
Net Cash Used in Investing Activities (50,000) (100,000) (50,000) (40,000) 0 0 (40,000) 0 0 0 0 0 (280,000) (280,000)
FINANCING ACTIVITIES Increase/(Decrease) Short Term Debt 0 0 0 0 Increase/(Decrease) Curr. Portion LTD 0 0 0 0 Increase/(Decrease) Long Term Debt 0 0 0 0 Increase/(Decrease) Common Stock 0 0 0 0 Increase/(Decrease) Preferred Stock 0 0 0 0 Dividends Declared 0 0 0
Net Cash Provided / (Used) by Financing 0 0 0 0 0 0 0 0 0 0 0 0 0 0
INCREASE/(DECREASE) IN CASH (71,385) (116,385) (46,354) (119,373) (77,315) (81,618) (102,218) (96,281) (125,335) (45,361) (94,352) (115,855) (1,091,830) (1,091,830)
CASH AT BEGINNING OF PERIOD 1,500,000 1,428,615 1,312,230 1,265,877 1,146,504 1,069,188 987,570 885,352 789,072 663,737 618,376 524,024 1,500,000 CASH AT END OF PERIOD 1,428,615 1,312,230 1,265,877 1,146,504 1,069,188 987,570 885,352 789,072 663,737 618,376 524,024 408,170 408,170
XYZ CompanyCash Flow Statement Year 2Year 2 by Months Estimated Annual
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 2 ProjectionOPERATING ACTIVITIES Net Earnings (12,903) (12,903) (16,065) (14,484) (16,065) (16,065) (17,645) (20,806) (20,806) (22,387) (23,968) (23,968) (218,064) (218,064) Depreciation 10,976 10,976 10,976 10,976 10,976 10,976 10,976 10,976 10,976 10,976 10,976 10,976 131,714 131,714 Working Capital Changes 0
(Increase)/Decrease Accounts Receivable (112,050) 0 (104,580) 52,290 (52,290) 0 (52,290) (104,580) 0 (52,290) (52,290) 0 (478,080) (478,080)(Increase)/Decrease Inventories (112,050) 0 (104,580) 52,290 (52,290) 0 (52,290) (104,580) 0 (52,290) (52,290) 0 (478,080) (478,080)(Increase)/Decrease Other Current Assets (13,500) 0 (12,600) 6,300 (6,300) 0 (6,300) (12,600) 0 (6,300) (6,300) 0 (57,600) (57,600)Increase/(Decrease) Accts Pay & Accrd Expenses (149,120) (6,600) 31 331,139 50,190 2,310 52,500 107,310 4,620 52,500 54,810 2,310 502,000 502,000 Increase/(Decrease) Other Current Liab 13,500 0 12,600 (6,300) 6,300 0 6,300 12,600 0 6,300 6,300 0 57,600 57,600 Net Cash Provided/(Used) by Operating Activities (375,147) (8,527) (214,217) 432,211 (59,478) (2,778) (58,749) (111,680) (5,210) (63,491) (62,762) (10,682) (540,510) (540,510)
0 INVESTING ACTIVITIES 0 Property & Equipment (100,000) (100,000) 0 0 0 (100,000) 0 0 (100,000) 0 0 (100,000) (500,000) (500,000) Other 0 0
Net Cash Used in Investing Activities (100,000) (100,000) 0 0 0 (100,000) 0 0 (100,000) 0 0 (100,000) (500,000) (500,000)0
FINANCING ACTIVITIES 0 Increase/(Decrease) Short Term Debt 0 0 0 0 Increase/(Decrease) Curr. Portion LTD 100,000 0 100,000 100,000 Increase/(Decrease) Long Term Debt 400,000 0 400,000 400,000 Increase/(Decrease) Common Stock 0 0 0 0 Increase/(Decrease) Preferred Stock 500,000 0 500,000 500,000 Dividends Declared 0 0 0
Net Cash Provided / (Used) by Financing 1,000,000 0 0 0 0 0 0 0 0 0 0 0 1,000,000 1,000,000 0
INCREASE/(DECREASE) IN CASH 524,853 (108,527) (214,217) 432,211 (59,478) (102,778) (58,749) (111,680) (105,210) (63,491) (62,762) (110,682) (40,510) (40,510)
CASH AT BEGINNING OF PERIOD 408,170 933,023 824,496 610,279 1,042,490 983,012 880,233 821,484 709,804 604,594 541,103 478,341 408,170 CASH AT END OF PERIOD 933,023 824,496 610,279 1,042,490 983,012 880,233 821,484 709,804 604,594 541,103 478,341 367,660 367,660
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Cash Flow Statement Year 3 Year 4 Year 5Years 3, 4 & 5 by Quarters Annual Annual Annual
Year 3 Year 4 Year 5 Projection Projection Projection1st Qtr 2nd Qrtr 3rd Qrtr 4th Qrtr Total 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
OPERATING ACTIVITIES Net Earnings 142,362 180,953 180,953 200,248 704,515 183,181 246,714 278,481 294,364 1,002,741 432,599 519,539 606,478 693,418 2,252,034 704,515 1,002,741 2,252,034 Depreciation 61,024 61,024 61,024 61,024 244,095 93,405 93,405 93,405 93,405 373,619 127,452 127,452 127,452 127,452 509,810 244,095 373,619 509,810 Working Capital Changes
(Increase)/Decrease Accounts Receivable (36,520) (166,000) 0 (83,000) (285,520) (83,000) (332,000) (166,000) (83,000) (664,000) (83,000) (332,000) (332,000) (332,000) (1,079,000) (285,520) (664,000) (1,079,000)(Increase)/Decrease Inventories 91,480 (134,000) 0 (67,000) (109,520) (67,000) (268,000) (134,000) (67,000) (536,000) (67,000) (268,000) (268,000) (268,000) (871,000) (109,520) (536,000) (871,000)(Increase)/Decrease Other Current Assets (4,400) (20,000) 0 (10,000) (34,400) (10,000) (40,000) (20,000) (10,000) (80,000) (10,000) (40,000) (40,000) (40,000) (130,000) (34,400) (80,000) (130,000)Increase/(Decrease) Accts Pay & Accrd Expenses 38,280 174,000 0 87,000 299,280 87,000 348,000 174,000 87,000 696,000 87,000 348,000 348,000 348,000 1,131,000 299,280 696,000 1,131,000 Increase/(Decrease) Other Current Liab 4,400 20,000 0 10,000 34,400 10,000 40,000 20,000 10,000 80,000 10,000 40,000 40,000 40,000 130,000 34,400 80,000 130,000 Net Cash Provided/(Used) by Operating Activities 296,626 115,976 241,976 198,272 852,850 213,586 88,119 245,886 324,769 872,360 497,051 394,991 481,931 568,871 1,942,844 852,850 872,360 1,942,844
INVESTING ACTIVITIES Property & Equipment (100,000) (200,000) (100,000) (150,000) (550,000) (200,000) (200,000) (100,000) (150,000) (650,000) (200,000) (200,000) (200,000) (150,000) (750,000) (550,000) (650,000) (750,000) Other 0 0 0 0 0
Net Cash Used in Investing Activities (100,000) (200,000) (100,000) (150,000) (550,000) (200,000) (200,000) (100,000) (150,000) (650,000) (200,000) (200,000) (200,000) (150,000) (750,000) (550,000) (650,000) (750,000)
FINANCING ACTIVITIES Increase/(Decrease) Short Term Debt 0 0 0 100,000 0 100,000 0 (100,000) (100,000) 0 100,000 (100,000) Increase/(Decrease) Curr. Portion LTD 0 0 0 0 0 0 0 0 0 0 0 0 Increase/(Decrease) Long Term Debt 0 (100,000) (100,000) 0 (100,000) (100,000) 0 (100,000) (100,000) (100,000) (100,000) (100,000) Increase/(Decrease) Common Stock 0 0 0 0 0 0 0 0 0 0 0 0 Increase/(Decrease) Preferred Stock 0 0 0 0 0 0 0 0 0 0 0 0 Dividends Declared 0 0 0 0 (50,000) (50,000) 0 0 (50,000)
Net Cash Provided / (Used) by Financing 0 0 0 (100,000) (100,000) 100,000 0 0 (100,000) 0 0 0 0 (250,000) (250,000) (100,000) 0 (250,000)
INCREASE/(DECREASE) IN CASH 196,626 (84,024) 141,976 (51,728) 202,850 113,586 (111,881) 145,886 74,769 222,360 297,051 194,991 281,931 168,871 942,844 202,850 222,360 942,844
CASH AT BEGINNING OF PERIOD 367,660 564,286 480,262 622,238 570,510 684,096 572,215 718,101 792,870 1,089,921 1,284,912 1,566,843 367,660 570,510 792,870 CASH AT END OF PERIOD 564,286 480,262 622,238 570,510 684,096 572,215 718,101 792,870 1,089,921 1,284,912 1,566,843 1,735,714 570,510 792,870 1,735,714
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SummaryYears 1 to 5
Year 1 Year 2 Year 3 Year 4 Year 5Summary Financials ($)
Revenue 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000 Gross Profit (117,464) 1,717,836 4,050,571 6,910,714 11,966,857 EBIT (712,131) (158,064) 752,515 1,565,781 3,767,390 EBITDA (668,750) (26,350) 996,610 1,939,400 4,277,200 Net Earnings (712,131) (218,064) 704,515 1,002,741 2,252,034 Net Cash from Operating Activities (811,830) (540,510) 852,850 872,360 1,942,844 Capital Expenditures 280,000 500,000 550,000 650,000 750,000 Interest Income/(Expense) 0 (60,000) (48,000) (45,000) (14,000)Dividends 0 0 0 0 50,000 Cash 408,170 367,660 570,510 792,870 1,735,714 Total Equity (212,131) (430,195) 274,319 1,277,060 3,479,094 Total Debt 0 500,000 400,000 300,000 200,000
Growth Revenue Growth Rate - CAGR: 425% 86% 67% 60% Net Earnings Growth Rate - CAGR: Nil Nil 42.3% 124.6%
Ratios Current Ratio 4.2 2.0 2.0 1.9 2.1 Debt to Capital (LT Debt + Equity) 0.0 0.3 0.2 0.1 0.0
ProfitabilityGross Profit % -11.7% 32.7% 41.5% 42.5% 46.0%Operating Expenses % 55.0% 35.7% 33.8% 32.9% 31.5%Net Earnings % -71.2% -4.2% 7.2% 6.2% 8.7%
ReturnsReturn on Assets -74.1% -9.5% 21.7% 20.0% 27.2%Return on Equity -90.4% -20.4% 39.7% 36.1% 45.2%Return on Capital (LT Debt + Equity) -90.4% -13.9% 32.4% 32.6% 43.5%
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XYZ Company NotesValuation Venture Capital MethodYears 1 to 5
Assumptions: REFInvestor required IRR 60% AP/E ratio at IPO or acquisition 15 BInitial investment $1,500,000 C FV(A,C) G/F IRR(D,G)
REF D E F G H I J K
Valuation Calculation Year Net Income IRR Calculation WorkspaceCalculation Income Stmt B * E FV(F,D) C / G F * H I / C IRR(I,C,D) Start Year 1 Year 2 Year 3 Year 4 Year 5
Liquidity Event in Year 1 1 (712,131) ($10,681,967) $2,400,000 100.0% $0 0% #N/A ($1,500,000) $0 Liquidity Event in Year 2 2 (218,064) ($3,270,964) $3,840,000 100.0% $0 0% #N/A ($1,500,000) $0 $0 Liquidity Event in Year 3 3 704,515 $10,567,721 $6,144,000 58.1% $6,144,000 410% 60% ($1,500,000) $0 $0 $6,144,000 Liquidity Event in Year 4 4 1,002,741 $15,041,112 $9,830,400 65.4% $9,830,400 655% 60% ($1,500,000) $0 $0 $0 $9,830,400 Liquidity Event in Year 5 5 2,252,034 $33,780,514 $15,728,640 46.6% $15,728,640 1049% 60% ($1,500,000) $0 $0 $0 $0 $15,728,640
Negotiation Workspace
Year1 25.0% $0 0% #N/A ($1,500,000) $0 2 25.0% $0 0% #N/A ($1,500,000) $0 $0 3 25.0% $2,641,930 176% 21% ($1,500,000) $0 $0 $2,641,930 4 25.0% $3,760,278 251% 26% ($1,500,000) $0 $0 $0 $3,760,278 5 40.0% $13,512,206 901% 55% ($1,500,000) $0 $0 $0 $0 $13,512,206
MarketCapitalization
Required Future Value (Investor)
Investor'sShare
Investor'sReturn
Investor'sROI
Investor'sIRR
Investor'sShare
Investor'sReturn
Investor'sROI
Investor'sIRR
H1
Valuation The venture capital method assumes that a firm will undertake an Initial Public Offering (IPO) at some point in the future or be acquired, ie a “liquidity event”. The future value of the firm is determined by multiplying the earnings of the firm in the year of the liquidity event by the expected price/earnings (P/E) ratio that the market will support. (The long-run P/E ratio of NYSE stocks is about 15.) This provides the expected future value of the firm. The present value of the firm is then calculated using a risk adjusted discount rate. Discount rates of 50 to 100% (and more) are frequently used in valuing start-up businesses to capture the inherently risky nature of new ventures. Similarly, venture capitalists frequently demand an Internal Rate of Return (IRR) of 100% (or more) in order to justify investing in a risky startup. (An IRR of 100% is equivalent to doubling the value of an investment every year.) There are two valuation worksheets provided in the model: VAL-1 estimates the value of the company based on an initial investment of the start of the venture and a one-time liquidity event. The net income estimates for each of the five years need to be inputted manually, but you can easily make links directly to Net Income line in the Income Statement projections. Use the Negotiation Workspace to test various dilution assumptions. Val-2 estimates the value of the company based on multiple rounds of investment. The timing of the each round of Investment and the IPO can be modified. Use the Negotiation Workspace to test various dilution assumptions.
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XYZ CompanyValuation Venture Capital MethodYears 1 to 5Multiple Rounds
Assumptions Ref CalculationMonth of IPO 60 AForecast annualized earnings at IPO $2,252,034 BP/E ratio at IPO 15 C
Investment Round First Second Third Month of Investment 0 24 CInvestor required IRR 60% 50% DAmount of Investment $1,500,000 $500,000 ERequired Monthly IRR 5.00% 4.17% 0.00% F D/12Duration of Investment 60 36 60 G A-C
CalculationsMarket Capitalization at IPO $33,780,514 H B*C
First Second Third Required FV for Investor at IPO $15,728,640 $1,687,500 $0 I E*(1+F)^GIndividual Investor's Share 46.6% 5.0% 0.0% J I/HIndividual Investor's ROI 1049% 338% #DIV/0! K I/EIndividual Investor's IRR 60% 50% #DIV/0! L (I/E)^(12/G)-1
Cumulative Investors' Share 46.6% 51.6% 51.6% M sum(J)Cumulative Founders' Share 53.4% 48.4% 48.4% N 1-M
Negotiations Round First Second Third Individual Investor's Share 15.0% 5.0% 3.0%FV for Investor at IPO $5,067,077 $1,689,026 $1,013,415 Individual Investor's ROI 338% 338% #DIV/0!Individual Investor's IRR 28% 50% #DIV/0!
