need help coming to a conclusion on what my sales forecast should be.

Attached is the question that is being asked and below is all information about the business that has been given.

If any one is able to provide a step by step answer with explainations it would be great in allowing me to come to the proper conclusion.

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.

SALES

Year 1

Year 2

Year 3

Year 4

Year 5

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.

Business Profile: Papa Geo's Restaurant

Vision

The vision of the entrepreneur is to make 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.