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.

Projected Profit and Loss Year 1 Year 2 Year 3 Notes - replace instructional notes with your business specific notes and assumptions. Revenue Less COGS 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. Revenue - COGS Gross Margin $ - $ - - Percent Gross Margin #DIV/0! #DIV/0! $ ! #DIV/0! Operating and General Expenses Marketing and Sales Payroll Rent Utilities Other 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. 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 Less Interest Less Taxes Net Earnings (Profit/Loss) 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. $ $ $ Note: Input numbers into unshaded boxes. Projected Cash Flow Year 1 Year 2 Year 3 Notes - replace instructional notes with your business specific notes and assumptions. Beginning cash should be zero. Include personal investment with "Increase from Investors" Beginning Cash Cash Sources 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 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 Uses Increase in Inventory Increase in Capital Assets 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 Total Cash Uses S S s Net Cash Flow Ending Cash $ $ - . $ S - . $ S . Note: Input numbers into unshaded boxes. Projected Balance Sheet Year 1 Year 2 Year 3 Notes - replace instructional notes with your business specific notes and assumptions. $ - - $ $ . - Ending cash balance from cash flow Outstanding balance at end of year - amount customers owe you for products sold Estimate value of inventory on hand - finished and unfinished (raw materials) goods Land is not depreciable Assets Current Assets Cash Accounts Receivable $ Inventory Total Current Assets $ Fixed Assets Land Buildings Less Depreciation Total Buildings $ Equipment Less Depreciation Total Equipment $ Furniture and Fixtures Less Depreciation Total Furniture and Fixtures $ Total Fixed Assets $ Total Assets $ Building depreciate over 30 years, so 1/30 of building cost $ - $ . Use 1/15 of original cost for equipment depreciation - $ . Juse 1/10 of original cost for any furntiure and fixture items - $ $ $ - - - $ $ $ .. - - - Amount that you owe vendors who provide product (not loans) Amount of debt due in the next 12 months, lines of credit, etc... $ - Liabilities Current Liabilities Accounts Payable Current Portion of Long Term Debt Total Current Liabilities Long-term Liabilities Mortgage Other Long-term Loans Total Long-term Liabilities Total Liabilities Loans on buildings Long term portion on other loans (amoutn due after next 12 months) $ $ - - $ $ - - $ $ - . $ . Total Owner's Equity Total Liabilities and Owner's Equity $ $ $ $ - - Note: Input numbers into unshaded boxes. Projected Profit and Loss Year 1 Year 2 Year 3 Notes - replace instructional notes with your business specific notes and assumptions. Revenue Less COGS 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. Revenue - COGS Gross Margin $ - $ - - Percent Gross Margin #DIV/0! #DIV/0! $ ! #DIV/0! Operating and General Expenses Marketing and Sales Payroll Rent Utilities Other 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. 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 Less Interest Less Taxes Net Earnings (Profit/Loss) 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. $ $ $ Note: Input numbers into unshaded boxes. Projected Cash Flow Year 1 Year 2 Year 3 Notes - replace instructional notes with your business specific notes and assumptions. Beginning cash should be zero. Include personal investment with "Increase from Investors" Beginning Cash Cash Sources 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 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 Uses Increase in Inventory Increase in Capital Assets 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 Total Cash Uses S S s Net Cash Flow Ending Cash $ $ - . $ S - . $ S . Note: Input numbers into unshaded boxes. Projected Balance Sheet Year 1 Year 2 Year 3 Notes - replace instructional notes with your business specific notes and assumptions. $ - - $ $ . - Ending cash balance from cash flow Outstanding balance at end of year - amount customers owe you for products sold Estimate value of inventory on hand - finished and unfinished (raw materials) goods Land is not depreciable Assets Current Assets Cash Accounts Receivable $ Inventory Total Current Assets $ Fixed Assets Land Buildings Less Depreciation Total Buildings $ Equipment Less Depreciation Total Equipment $ Furniture and Fixtures Less Depreciation Total Furniture and Fixtures $ Total Fixed Assets $ Total Assets $ Building depreciate over 30 years, so 1/30 of building cost $ - $ . Use 1/15 of original cost for equipment depreciation - $ . Juse 1/10 of original cost for any furntiure and fixture items - $ $ $ - - - $ $ $ .. - - - Amount that you owe vendors who provide product (not loans) Amount of debt due in the next 12 months, lines of credit, etc... $ - Liabilities Current Liabilities Accounts Payable Current Portion of Long Term Debt Total Current Liabilities Long-term Liabilities Mortgage Other Long-term Loans Total Long-term Liabilities Total Liabilities Loans on buildings Long term portion on other loans (amoutn due after next 12 months) $ $ - - $ $ - - $ $ - . $ . Total Owner's Equity Total Liabilities and Owner's Equity $ $ $ $ - - Note: Input numbers into unshaded boxes