I need help with an assignment to calculate 5 year budget proposal.

BUSN278 Course Project Overview

This is an individual project where you'll be acting as a consultant to an entrepreneur who wants to start a new business.As the consultant, you'll calculate 5 year budget that supports the entrepreneur's vision and strategy and needs for equipment labor and other startup costs.

You can choose from one of three types of new business startups -- a landscaping company, a restaurant, or an electronics store that sells portable computing devices.Each business has its own Business Profile detailed in the below sections. The purpose of the Business Profile is to guide you in understanding the scope of the business, the entrepreneur's startup costs, and financial assumptions.

The project requires you to calculate a written budget proposal, a supporting Excel Workbook showing your calculations, as well as a PowerPoint presentation summarizing the key elements of the budget proposal, which you assume will be presented to a management team.

Business Profile: Papa Geo's Restaurant

Vision

The vision of the entrepreneur is to produce a single-location, sit-down Italian restaurant called Papa Geo's.The goal is to generate an income of $40,000 per year, starting sometime in the second year of operation, as wells as profit that is at least 2% of sales.

Strategy

a)Market Focus/Analysis

The restaurant targets middle to lower-middle class families with children as well as adults and seniors, located in Orlando, Florida.The area within 15 minutes of the store has 10,000 families, mostly from lower to middle class neighborhoods.Average family size is 4 people per household.There is no direct competition; however, there are fast food restaurants like McDonald's, Taco Bell and Wendy's in the geographical target market.The lower-to middle class population is growing at about 6% per year over the next five years in this area.

b)Product

The product is Italian food served buffet style, in an all-you-can-eat format, with a salad bar, pizza, several different types of pasta with three or four types of sauces, soup, desserts and self-serve soda bar.The restaurant is also to have a 500 square foot games area which has game machines that children would be interested in using.

c)Basis of Competition

Customers come to come to this restaurant because of the good Italian food at a low price - where you can get a meal for $7 including drinks.Customers also eat at Papa Geo's due to the cleanliness of the facility, the speed of getting their seat and food, as well as the vending machines which keep the children busy while adults enjoy their meal.

Startup Requirements*

Given Costs

The cost of registering a Limited Liability Company in Florida, filing fees listed at the bottom of the application form located at http://form.sunbiz.org/pdf/cr2e047.pdf

Renovation of the facility expected to cost $15000

Business Insurance, estimated at $1000 per year

Health and other benefits are 20% of the salaries of the manager and assistant manager

Costs you should estimate through research, experience or other methods

• Soda Fountain Bar
• 2 Pizza Ovens
• Salad and Pizza/Dessert Bar
• Approximately 100square foot commercial refrigerator
• 2 cash registers
• 6 Video Game vending machines
• Average of6 staff members at any given time
• Management Office with desk, lower-priced laptop computer
• Staff lunchroom equipment such as microwave, sink, cupboards and refrigerator
• 20 four-seater tables with chairs
• Busing cart for transporting dirty dishes from the dining area to the dishwashing area
• 140 sets of dishes, cutlery and drinking cups
• Commercial Dishwasher
• Miscellaneous cooking and food handling equipment like trays, lifters, spoons, pots etcetera
• The cost of an average of 7 employees on the payroll.
• All operating costs, such as advertising, rent for a 3500 square foot facility with male and female washrooms, already installed, utilities, maintenance, and annual depreciation.

*if you have questions about startup requirements, or think other startup costs are necessary for the business are missing, then make an assumption and state it in the relevant section of the report.

Given Financial Assumptions*

• The owner will be granted a loan for the initial startup, repayable over 10 years at current interest rates for small business loans
• The owner will use personal funds to operate the business until it generates enough cash flow to fund itself.
• Essentially, all sales are made by credit card. All credit card sales are a paid to the restaurant daily by the credit card company
• 2.5% of sales is paid to a credit card company in fees
• Food suppliers give 30 days of trade credit
• Inventories are expected to be approximately 10% of the following month's sales
• The average meal costs $4.00 in materials and labor.
• The average family spends $4.00 on vending machine tokens
• Equipment is depreciated on a straight-line basis over 5 years
• Managers have health benefits, other workers do not.
• The company will operate from 10:00 am to 9 pm,7 days a week.
• The entrepreneur will manage the store and draw a salary.
• Every shift has one person on the cash register, one keeping the food bars stocked with food, and one on busing and table cleaning, a manager and assistant manager.

*If you believe any other assumptions are necessary, then please state them in your budget proposal

Your Company Name

Budget Proposal

for

[enter years here]

BUSN278

[Term]

Professor[name]

DeVry University

Table of Contents

Section

Title

Subsection

Title

Page Number

1.0

Executive Summary

2.0

Sales Forecast

2.1

Sales Forecast

2.2

Methods and Assumptions

3.0

Capital Expenditure Budget

4.0

Investment Analysis

4.1

Cash Flows

4.2

NPV Analysis

4.3

Rate of Return Calculations

4.4

Payback Period Calculations

5.0

Pro Forma Financial Statements

5.1

Pro Forma Income Statement

5.2

Pro Forma Balance Sheet

5.3

Pro Forma Cash Budget

6.0

Works Cited

7.0

Appendices

7.1

Appendix 1: [description]

7.2

Appendix 2:

[description]

(Also, please submit your Excel spreadsheet that shows your supporting calculations.)

The first paragraph of this executive summary should give a brief description of the business to which this budget applies. Very briefly describe the products and services of this company, the geography or demographics of the customers it serves, and why people purchase the main product of this business. Much or all of this information will be found in the business profile provided to you. Please use your own words, and please do not simply copy and paste the explanation in the course materials. Make assumptions if necessary.

Also, provide a second paragraph that describes how the budget supports the company's strategy.

Finally, provide a third paragraph in which you summarize the key points from your budget, including the planning horizon; the amount of up-front investment; the NPV, payback, and IRR of the project; and key figures from your income statement, cash budget, and balance sheet.

Remember, this is not a thesis or introduction of what you will talk aboutit contains the major, specific content of each section. The second and third paragraphs should be written after you have completed all other sections of this template.

As you complete sections of this template, please remove all italicized text in all sections of this template and replace it with your own text or you will lose points!

Briefly introduce the sales forecast section.

2.1 Sales Forecast

Here you should include a simple table showing the years and the total sales for each year, along with a brief explanation of why sales are expected to rise, fall, change, or stay the same in certain years. Provide a brief explanation of the sales forecast, indicating why you expect sales to rise or fall during the planning horizon. Your explanation should be consistent with the trends and changes in sales found in your table.

Year 1

Year 2

Year 3

Year 4

Year 5

Sales

2.2 Methods and Assumptions

Here you should describe how you arrived at your sales forecast in section 2.1. You should provide any detailed calculations that led you to the sales forecast values. You should also summarize any research or figures that led you to make this sales forecast.

Here you should provide a screenshot of your capital expenditure budget, also listing the sources of data and assumptions that led to each line item in table format. Briefly describe the total investment and, if necessary, why major items are necessary to achieve the company's strategy.

Briefly describe the NVP, IRR, accounting rate of return, and payback period for this analysis. Indicate the discount rate you used and how you arrived at it.

4.1 Cash flows

Provide an Excel spreadsheet screenshot that shows how you arrived at the net cash flows for each period in your planning horizon, and describe its highlights.

4.2 NPV Analysis

Provide a screenshot of your Excel NPV analysis here, and describe its highlights.

4.3 Rate of Return

Provide a screenshot of your IRR and accounting rate of return calculations here, and explain the highlights.

4.4 Payback Period

Provide a screenshot of your Excel calculation of the payback period for this venture.

Briefly introduce this section here.

5.1 Pro Forma Income Statement

Describe key figures and assumptions from the income statement, such as important profit or sales figures and their causes. Also, provide a screenshot of your pro forma income statement.

5.2 Pro Forma Balance Sheets

Provide a screenshot of your balance sheets and describe key figures they contain.

5.3 Pro Forma Cash Budget

Provide a screenshot of the cash budget and describe the impact of the budget on cash balances.

List any sources you cited in the body of your report.

NOTE: Start this section at the top of a new page.

This section of the budget proposal is where you'll attach all of the supporting materials that you've referenced in the preparation of your plan and that is too detailed or extensive to be included in the body of the report. Use this page to separate the appendices from the text in the body of your report. Make certain that you update the table of contents to include the title of each exhibit in the appendix and its page number.

7.1 Appendix 1: [put a description here]

7.2 Appendix 1: [put a description here]

7.3 Appendix 1: [put a description here]