In this assignment you have to create a small business profit and loss, cash flow, and balance sheet for the next 3 years. Starting budget $60,000, fill out excel sheets. Please fill out the excel sheets.

Using the financial modeling Excel template and individual tabs, create a pro-forma profit and loss forecast, cash flow analysis and projected balance sheets for the first 3 years of the business. In the Notes column for each forecasted statement, replace the instruction notes with assumptions, descriptions of the items included for each row and any other comments to support and justify the numbers used. Assignments are to include the completed Microsoft Excel template file, as well as any additional spreadsheets used to calculate more detailed business data like product costs or potential revenue forecasts.

Note - Please answer question by using random Numbers with a starting Cash Balance of $60,000, keeping in view the instructions given in question.

Projected Profit and Loss Year 1 Year 3 Notes - replace instructional notes with your business specific notes and assumptions. Year 2 Revenue Cost of materials, labor and facility for actual production. For services it is actual cost you can attribute to a specific unit of service. Does not include equipment and overhead. Less COGS Gross Margin $ Percent Gross Margin $ Revenue COGS #DIV/o! #DIV/0! #DIV/0! Operating and General Expenses Marketing and Sales Advertising, research, commissions - not labor expenses Include salary, hourly pay, benefits and add a percentage for payroll taxes (~13%) |Check against market conditions, include facilities and any equipment rental Phone, electric, water, etc... Use this to identify expenses prominent to your industry/business/location for example, travel may be extensive for some industries. Payroll Rent Utilities Other Total Expenses $ $ Gross Margin Operating and General Expenses Only use this if you are purchasing high value equipment or buildings that will depreciate -$ Earnings Before Interest, Taxes Ammortization (EBITA) - Less Ammortization Earnings Before Interest, Taxes $ -$ -$ - Only use this if you are financing the startup with long term debt Income taxes. Only if you have a profit. Usually zero for a start-up when rolling profits back into company Less Interest $ Less Taxes Net Earnings (Profit/Loss) $ $ Note: Input numbers into unshaded boxes Projected Cash Flow Notes - replace instructional notes with your business specific notes and assumptions. Year 1 Year 2 Year 3 Beginning cash should be zero. Include personal investment with "Increase from Investors" Beginning Cash $ Cash Sources This should be Net Profit or Loss (bottom line) from PnL Add back in any ammortization/depreciation, since it is not a cash expense. When extending credit (invoicing for later payment), this is the change in how much is outstanding How much you owe your vendors at a given time The increase (-decrease) in loans/credit card balances from previous period (enter hear if debt was increased) Amount collected from investors in exchange for ownership Cash in from Operations Adjustment for Ammortization/Depreciation $ $ $ Decrease in AcCounts Receivable Increase in Accounts Payable Increase in Debt Increase from Investors Total Cash In$ $ Cash Uses The amount your inventory increased (-decreased) in the time period This is purchase of buildings or major equipment - capital purchases are not reflected on PnL Increase in Inventory Increase in Capital Assets $ $ Total Cash Uses Net Cash Flow $ $ $ Ending Cash $ $ $ Note: Input numbers into unshaded boxes. Projected Balance Sheet replace instructional notes with your business specific notes and assumptions Year 1 Year 2 Year 3 Notes Assets Current Assets Ending cash balance from cash flow Cash - $ $ Outstanding balance at end of year amount customers owe you for products sold Accounts Receivable - Estimate value of inventory on hand finished and unfinished (raw materials) goods Inventory - -. $ Total Current Assets S S - Fixed Assets Land is not depreciable Land Buildings Building depreciate over 30 years, so 1/30 of building cost Less Depreciation Total Buildings$ $ Equipment Use 1/15 of original cost for equipment depreciation Less Depreciation Total Equipment $ - Furniture and Fixtures Use 1/10 of original cost for any furntiure and fixture items Less Depreciation Total Furniture and Fixtures $ - Total Fixed Assets $ $ Total Assets $ - Liabilities Current Liabilities Accounts Payable Amount that you owe vendors who provide product (not loans) Amount of debt due in the next 12 months, lines of credit, etc... Current Portion of Long Term Debt Total Current Liabilities $ Long-term Liabilities Mortgage Other Long-term Loans Loans on buildings Long term portion on other loans (amoutn due after next 12 months) Total Long-term Liabilities $ $ $ Total Liabilities S - Total Owner's Equity $ - Total Liabilities and Owner's Equity $ S - Note: Input numbers into unshaded boxes. Projected Profit and Loss Year 1 Year 3 Notes - replace instructional notes with your business specific notes and assumptions. Year 2 Revenue Cost of materials, labor and facility for actual production. For services it is actual cost you can attribute to a specific unit of service. Does not include equipment and overhead. Less COGS Gross Margin $ Percent Gross Margin $ Revenue COGS #DIV/o! #DIV/0! #DIV/0! Operating and General Expenses Marketing and Sales Advertising, research, commissions - not labor expenses Include salary, hourly pay, benefits and add a percentage for payroll taxes (~13%) |Check against market conditions, include facilities and any equipment rental Phone, electric, water, etc... Use this to identify expenses prominent to your industry/business/location for example, travel may be extensive for some industries. Payroll Rent Utilities Other Total Expenses $ $ Gross Margin Operating and General Expenses Only use this if you are purchasing high value equipment or buildings that will depreciate -$ Earnings Before Interest, Taxes Ammortization (EBITA) - Less Ammortization Earnings Before Interest, Taxes $ -$ -$ - Only use this if you are financing the startup with long term debt Income taxes. Only if you have a profit. Usually zero for a start-up when rolling profits back into company Less Interest $ Less Taxes Net Earnings (Profit/Loss) $ $ Note: Input numbers into unshaded boxes Projected Cash Flow Notes - replace instructional notes with your business specific notes and assumptions. Year 1 Year 2 Year 3 Beginning cash should be zero. Include personal investment with "Increase from Investors" Beginning Cash $ Cash Sources This should be Net Profit or Loss (bottom line) from PnL Add back in any ammortization/depreciation, since it is not a cash expense. When extending credit (invoicing for later payment), this is the change in how much is outstanding How much you owe your vendors at a given time The increase (-decrease) in loans/credit card balances from previous period (enter hear if debt was increased) Amount collected from investors in exchange for ownership Cash in from Operations Adjustment for Ammortization/Depreciation $ $ $ Decrease in AcCounts Receivable Increase in Accounts Payable Increase in Debt Increase from Investors Total Cash In$ $ Cash Uses The amount your inventory increased (-decreased) in the time period This is purchase of buildings or major equipment - capital purchases are not reflected on PnL Increase in Inventory Increase in Capital Assets $ $ Total Cash Uses Net Cash Flow $ $ $ Ending Cash $ $ $ Note: Input numbers into unshaded boxes. Projected Balance Sheet replace instructional notes with your business specific notes and assumptions Year 1 Year 2 Year 3 Notes Assets Current Assets Ending cash balance from cash flow Cash - $ $ Outstanding balance at end of year amount customers owe you for products sold Accounts Receivable - Estimate value of inventory on hand finished and unfinished (raw materials) goods Inventory - -. $ Total Current Assets S S - Fixed Assets Land is not depreciable Land Buildings Building depreciate over 30 years, so 1/30 of building cost Less Depreciation Total Buildings$ $ Equipment Use 1/15 of original cost for equipment depreciation Less Depreciation Total Equipment $ - Furniture and Fixtures Use 1/10 of original cost for any furntiure and fixture items Less Depreciation Total Furniture and Fixtures $ - Total Fixed Assets $ $ Total Assets $ - Liabilities Current Liabilities Accounts Payable Amount that you owe vendors who provide product (not loans) Amount of debt due in the next 12 months, lines of credit, etc... Current Portion of Long Term Debt Total Current Liabilities $ Long-term Liabilities Mortgage Other Long-term Loans Loans on buildings Long term portion on other loans (amoutn due after next 12 months) Total Long-term Liabilities $ $ $ Total Liabilities S - Total Owner's Equity $ - Total Liabilities and Owner's Equity $ S - Note: Input numbers into unshaded boxes