Hi,

I'm currently trying to do a pro-forma income statement for a car wash business. I was wondering if you could check it over and tell me if I'm doing it right and if I omitted anything. If anything is incorrect or if there is any information that should be there that has been omitted, please re-write it in the correct way and place that as the answer. Thank you so much!

These are my start up costs:

Location (lease)- $288,000 for 3 years (96,000/year)

Landscaping/construction- $212,000

Business License- $200

5 Part time employees- $12/hr

Vending machines(4)- $3,000 each

General liability Insurance-$800/year

Vacuums--$11,250 for 10 ($1,125 each J.E. Adams Commercial Vacuum)

Automated Washing Bays(2)-$42,000 each

Products- $110,000

Kiosk(2)- $3,000 each

Property Tax- 1,200/year

These are my periodic costs:

Periodic Costs

1. Marketing:

• Radio Stations: $150 per mention (4 mentions per month/$1800 per yr)
• Newspaper ads: $90 per 5 x 5 ad (1 ad per month/$1080 per yr)
• Social media promotion: $500 ($.04 per hanging air freshener/12,500 qty available)

2. Legal:

• California Business License = $200
• California Business Personal Property Tax = $130
• California Fictitious Business Name = $50
• Hazardous Materials/Waste Management Program = $64
• Car Washing + Polishing Registration Certification = $55

3. Administration

• Liability Business Insurance = $800
• Property Tax = $1200
• Equipment repairs / maintenance = $4000

This is the pro forma income statement I have so far:

Debit Credit Account Revenues Sales ($492,750+ $24,000) $516,750 ($7,751.25) Less card transaction fees 1.5% Total Revenue General / Administrative Expenses Supplies Expense ($117,720 $8,000) Equipment Depreciation License Permit Expense (license, permit, dom $125,720 $2,400 + $499 $77,877 Tax Expense (15.3% + Property Tax) Advertising Expense S3,380 Operating Expenses $96,000 Rent $105,120 Payroll $800 Insurance $4,000 $91,800 Equipment Repairs Utilities Total Expenses $507,596 $1,402 Net Income: Debit Credit Account Revenues Sales ($492,750+ $24,000) $516,750 ($7,751.25) Less card transaction fees 1.5% Total Revenue General / Administrative Expenses Supplies Expense ($117,720 $8,000) Equipment Depreciation License Permit Expense (license, permit, dom $125,720 $2,400 + $499 $77,877 Tax Expense (15.3% + Property Tax) Advertising Expense S3,380 Operating Expenses $96,000 Rent $105,120 Payroll $800 Insurance $4,000 $91,800 Equipment Repairs Utilities Total Expenses $507,596 $1,402 Net Income