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Start-up Requirements

Start-up Expenses Start-up Assets


Fixed Costs Owner Funding
Legal and Permits $8,000
Stationery and Supplies $12,000
Insurance $30,000
Rent $40,000
Office Equipment $50,000 Loans
Website Development $15,000
Print Advertisements $15,000
Brochures -
Total Fixed Costs $170,000
Average Monthly Costs Other
Rent $40,000
Utilities $15,000
Salaries / Wages $50,000
Total Average Monthly Costs $105,000
x Number of Months: 6 Total Start-up Assets
Total Monthly Costs $630,000
Total Startup Expenses $800,000
uirements
Start-up Assets
Owner Funding
Owner 1 Cash $100,000
Owner 2 Cash $100,000
Owner 3 Cash $100,000
Total Owner Funding $300,000

Bank Loan 1 $500,000


Bank Loan 2 $0
Other
Total Loans $500,000

Grant 1 $0
Grant 2 $0
Other
Total Other Funding $0
Total Start-up Assets $800,000
Balance Sheet
Date: 31st March 2020

Assets 2020P 2021P 2022P


Current Assets
Cash 300,000 330,000 363,000
Accounts receivable - 20,000 22,000
Inventory 200,000 220,000 242,000
Prepaid expenses - -
Short-term investments 20,000 22,000 24,200
Total current assets $ 520,000.00 $ 592,000 $ 651,200
Fixed (Long-Term) Assets
Long-term investments 30,000 33,000 36,300
Property, plant, and equipment 70,000 77,000 84,700
(Less accumulated depreciation) (20,000) (22,000) (24,200)
Intangible assets 20,000 22,000 24,200
Total fixed assets $ 100,000 $ 110,000 $ 121,000
Other Assets
Deferred income tax - - -
Other - - -
Total Other Assets $ - $ - $ -

Total Assets $ 620,000 $ 702,000 $ 772,200

[42]
3-Year Profit and Loss
INCOME 2020 P % of OI 2021 P
Operating Income
Revenue $500,000 83.3% $700,000
COGS $100,000 16.7% $140,000
Total Operating Income (OI) $600,000 100.0% $840,000
Non-Operating Income
Interest Income $10,000 $50,000
Rental Income $8,000 $8,800
Loans $0 $75,000
Donations $500,000 $200,000
Total Non-Operating Income $518,000 $333,800
Total INCOME $1,118,000 186.3% $1,173,800
EXPENSES
Operating Expenses
Accounting and Legal $8,000 1.3% $0
Advertising $2,500 0.4% $2,500
Depreciation $1,000 0.2% $1,000
Dues and Subscriptions -
Insurance $20,000 3.3% $22,000
Interest Expense $0 - $5,000
Maintenance and Repairs $20,000 3.3% $22,000
Office Supplies $10,000 1.7% $11,000
Payroll Expenses $10,000 1.7% $11,000
Postage $10,000 1.7% $11,000
Rent $20,000 3.3% $20,000
Research and Development $10,000 1.7% $5,000
Salaries and Wages $20,000 3.3% $22,000
Taxes and Licenses -
Telephone $3,000 0.5% $3,300
Travel $5,000 0.8% $5,000
Utilities $8,000 1.3% $8,000
Web Hosting and Domains $8,000 1.3% $5,000
Total Operating Expenses $155,500 25.9% $153,800
Non-Recurring Expenses
Furniture, Equipment & Software $100,000 16.7% $120,000
Gifts Given $20,000 3.3% $0
Total Non-Recurring Expenses $120,000 20.0% $120,000
Total EXPENSES $275,500 45.9% $273,800
Net Income Before Taxes $842,500 $900,000
Income Tax Expense $0 $270,000
NET INCOME $842,500 $630,000
Owner Distributions / Dividends $252,750 $189,000
Adjustment to Retained Earnings $589,750 $441,000
% of OI 2022 P % of OI

83.3% $850,000 83.3%


16.7% $170,000 16.7%
100.0% $1,020,000 100.0%

$55,000
$9,680
$75,000
$0
$139,680
139.7% $1,159,680 113.7%

- $0 -
0.3% $2,500 0.2%
0.1% $1,000 0.1%
- $0 -
2.6% $0 -
0.6% $5,000 0.5%
2.6% $22,000 2.2%
1.3% $12,000 1.2%
1.3% $12,000 1.2%
1.3% $12,100 1.2%
2.4% $20,000 2.0%
0.6% $4,000 0.4%
2.6% $25,000 2.5%
- $0 -
0.4% $3,000 0.3%
0.6% $5,000 0.5%
1.0% $8,000 0.8%
0.6% $3,000 0.3%
18.3% $134,600 13.2%

14.3% $144,000 14.1%


- $0 -
14.3% $144,000 14.1%
32.6% $278,600 27.3%
$881,080
$264,324
$616,756
$185,027 0
$431,729
3-Year Cash Flow
For the Year Ending 3/31/2020 3/31/2021 3/31/2022
Cash at Beginning of Year 300,000 417,000 166,910
Cash at End of Year 417,000 166,910 11,425

Operations 2020 2021 2022


Cash receipts from
Customers 200,000 300,000 500,000
Other operations 50,000 50,000 50,000
Cash paid for
Inventory purchases (250,000) (150,000) (300,000)
General operating and administrative expenses (30,000) (30,000) (30,000)
Wage expenses (60,000) (75,000) (80,000)
Interest (10,000) (14,850) (16,335)
Income taxes 0 (270,000) (274,830)
Net Cash Flow from Operations (100,000) (189,850) (151,165)

[42] Investing Activities


Cash receipts from
Sale of property and equipment 0 36,960 40,600
Collection of principal on loans 10,000 13,000 16,900
Sale of investment securities 20,000 28,000 39,200
Cash paid for
Purchase of property and equipment (50,000) (82,500) (90,750)
Making loans to other entities 0 (50,000) (60,000)
Purchase of investment securities 4,000
Net Cash Flow from Investing Activities (16,000) (54,540) (54,050)

Financing Activities
Cash receipts from
Issuance of stock 20,000 40,000 30,000
Borrowing 500,000 150,000 200,000
Cash paid for
Repurchase of stock (treasury stock) (200,000) (100,000) (75,000)
Repayment of loans (34,000) (37,400) (41,140)
Dividends (53,000) (58,300) (64,130)
Net Cash Flow from Financing Activities 233,000 (5,700) 49,730

Net Cash Flow 117,000 (250,090) (155,485)