Financial Plan (First Draft) This week, you will build your draft financial plan. You will need to do it for the first two years. Use the Comparable method (please refer to chapter 9 of your textbook for further information). For this week, complete the following: Complete a list of key financial assumptions that drive your revenue projections, cost of goods sold and operating expenses. Identify 2-3 companies to benchmark (financial information can be found on their annual reports which are public). Include 3 APA style references for your assumptions. An opening day balance sheet (your balance sheet MUST BALANCE) A monthly cash flow statement for years 1 and 2 An income statement for years 1 and 2 A chart or graph showing growth from start-up through year 2 Please use this template to build your pro-forma financial statements. Please be aware, the included worksheets do not interact with one another. You will need to enter information on each of the worksheets. These pro-forma financial statements do not include a graph/chart required for item 5.

2-3 different companies

Company name: Assumptions for Financial Projections Description Value Comment Revenue Assumptions Unit Sales Price per unit sold Overall Market Size potential customers Target Market Size potential customers in niche Year One Sales Projections units sold Year Two Sales Projections units sold Year Three Sales Projections units sold Variable Cost Assumptions Materials per unit sold Labor per unit sold Overhead per unit sold Sales Commission (%) of Unit Sale Price Sales Commission ($) per unit sold Fixed Cost Assumptions Plant Operations per year Telecommunications per year; includes phones and internet Legal Services per year Accounting Services per year Insurance per year Personnel Assumptions Employees (#) Salary per employee ($) per employee Employee Salaries ($) $0 Salespeople (#) Base Salary per Salesperson ($) per salesperson Sales Base Salaries ($) $0 Personnel Overead Rate (%) 15% of total salaries Personnel Overhead ($) $0 Start-Up Cost Assumptions Plant Site Development one-time cost to build or buy Equipment Costs one-time cost to purchase equipment Working Capital Financing Assumptions Capital from Investors from sale of 25% equity in company Capital from Commercial Loan Loan Interest Rate 7% annual percentage rate (APR) Loan Term 20 years; lifetime of loan Periods per Year 12 payment periods per year Total Periods 240 periods for life of loan Monthly Loan Servicing Cost $0.00 Annual Loan Servicing Cost $0.00 References: Benchmark Companies: