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Section 2-The Sample Company
(a hypothetical company)
Projected Balance Sheet, Income Statement and Cash Flow Statement
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|
Projected Balance Sheet |
||||||
|
Dec Prior |
Jan |
Feb |
Mar |
Apr |
May |
|
|
Assets |
||||||
| Current Assets | ||||||
| Cash in Bank |
$ 25,000 |
$(26,309) |
$(60,157) |
$(92,828) |
$(124,325) |
$(174,914) |
| Accounts Receivable |
100,000 |
93,452 |
105,830 |
118,211 |
130,594 |
158,391 |
| Inventory |
100,000 |
103,050 |
116,640 |
130,235 |
143,834 |
174,313 |
| Prepaid Expenses |
5,000 |
5,100 |
5,200 |
5,300 |
5,400 |
5,200 |
| Total Current Assets |
230,000 |
175,293 |
167,513 |
160,917 |
155,503 |
162,989 |
| Fixed Assets | ||||||
| Tools/equipment |
25,000 |
26,675 |
28,350 |
30,025 |
31,700 |
33,375 |
| Vehicles |
100,000 |
114,000 |
128,000 |
142,000 |
156,000 |
170,000 |
|
125,000 |
140,675 |
156,350 |
172,025 |
187,700 |
203,375 |
|
| Less: Accumulated Depreciation |
(45,000) |
(47,610) |
(50,481) |
(53,613) |
(57,006) |
(60,660) |
| Net Fixed Assets |
80,000 |
93,065 |
105,869 |
118,412 |
130,694 |
142,715 |
| Total Assets |
$310,000 |
$268,358 |
$273,382 |
$279,329 |
$286,197 |
$ 305,704 |
|
Liabilities |
||||||
| Current Liabilities | ||||||
| Accounts Payable |
$100,000 |
$ 57,143 |
$ 63,759 |
$ 70,377 |
$ 76,996 |
$ 92,283 |
| Accrued Salaries and Wages |
20,000 |
23,359 |
25,068 |
26,778 |
28,488 |
35,910 |
| Payroll Taxes Payable |
7,000 |
9,473 |
10,167 |
10,860 |
11,553 |
14,563 |
| Working Capital Line of Credit |
- |
- |
- |
- |
- |
|
| Notes payable-Current Portion |
29,441 |
29,216 |
30,547 |
31,893 |
33,256 |
34,637 |
| Total Current Liabilities |
156,441 |
119,192 |
129,541 |
139,908 |
150,294 |
177,392 |
| Long Term Liabilities | ||||||
| Notes Payable-long term portion |
26,981 |
38,156 |
47,333 |
56,352 |
65,211 |
73,906 |
|
Shareholder's Equity |
||||||
| Retained Earnings |
126,578 |
126,578 |
126,578 |
126,578 |
126,578 |
126,578 |
| Current Earnings |
- |
(15,567) |
(30,070) |
(43,509) |
(55,885) |
(72,172) |
| Total Shareholder's Equity |
126,578 |
111,011 |
96,508 |
83,069 |
70,692 |
54,405 |
| Total Liabilities and Equity |
$310,000 |
$268,358 |
$273,382 |
$279,329 |
$286,197 |
$ 305,704 |
| Working Capital |
$ 56,102 |
$ 37,972 |
$ 21,009 |
$ 5,209 |
$ (14,403) |
|
| Current Ratio |
1.47 |
1.29 |
1.15 |
1.03 |
0.92 |
|
| Quick Ratio |
0.61 |
0.39 |
0.22 |
0.08 |
(0.06) |
|
| Debt to Net Worth |
1.42 |
1.83 |
2.36 |
3.05 |
4.62 |
|
| Projected Income Statement | ||||||
|
Jan |
Feb |
Mar |
Apr |
May |
||
| Sales | ||||||
| Income Labor |
$37,500 |
$42,500 |
$47,500 |
$52,500 |
$63,750 |
|
| Income Parts |
56,250 |
63,750 |
71,250 |
78,750 |
95,625 |
|
| Over Counter Parts |
1,000 |
1,050 |
1,103 |
1,158 |
1,216 |
|
| Franchise Income |
- |
- |
- |
- |
- |
|
| Total Sales |
94,750 |
107,300 |
119,853 |
132,408 |
160,591 |
|
| Less: Cost of Sales |
83,495 |
93,015 |
102,537 |
112,061 |
127,597 |
|
| Gross Margin |
11,255 |
14,285 |
17,315 |
20,347 |
32,994 |
|
| Gross Margin % |
12% |
13% |
14% |
15% |
21% |
|
| Operating Expenses |
34,177 |
35,819 |
37,461 |
39,103 |
57,463 |
|
| Income from Operations |
(22,923) |
(21,535) |
(20,146) |
(18,756) |
(24,469) |
|
| Other Income/Expenses | ||||||
| Interest Expense |
684 |
816 |
947 |
1,075 |
1,202 |
|
| Total Other Income/Expenses |
684 |
816 |
947 |
1,075 |
1,202 |
|
| Income Before Taxes |
(22,239) |
(20,718) |
(19,199) |
(17,681) |
(23,267) |
|
| Income Taxes |
(6,672) |
(6,215) |
(5,760) |
(5,304) |
(6,980) |
|
| Net Income |
$(15,567) |
$(14,503) |
$(13,439) |
$ (12,376) |
$ (16,287) |
|
| Projected Cash Flow Statement | ||||||
|
Jan |
Feb |
Mar |
Apr |
May |
||
| Net Income |
$(15,567) |
$(14,503) |
$(13,439) |
$ (12,376) |
$ (16,287) |
|
| Add Non Cash Item: Depreciation |
2,610 |
2,871 |
3,132 |
3,393 |
3,654 |
|
| Income from Operations |
(12,957) |
(11,632) |
(10,307) |
(8,983) |
(12,633) |
|
| Source (Use) of Working Capital | ||||||
| Accounts Receivable |
6,548 |
(12,378) |
(12,381) |
(12,383) |
(27,797) |
|
| Inventory |
(3,050) |
(13,590) |
(13,595) |
(13,599) |
(30,479) |
|
| Prepaid Expenses |
(100) |
(100) |
(100) |
(100) |
200 |
|
| Accounts Payable |
(42,857) |
6,616 |
6,618 |
6,620 |
15,286 |
|
| Accrued Salaries and Wages |
3,359 |
1,710 |
1,710 |
1,710 |
7,422 |
|
| Payroll Taxes Payable |
2,473 |
693 |
693 |
693 |
3,010 |
|
| Net Fixed Assets |
(15,675) |
(15,675) |
(15,675) |
(15,675) |
(15,675) |
|
| Working Capital Line of Credit |
- |
- |
- |
- |
- |
|
| Notes Payable |
10,950 |
10,508 |
10,365 |
10,222 |
10,076 |
|
| Net change in Cash |
(51,309) |
(33,848) |
(32,671) |
(31,497) |
(50,590) |
|
| Beginning Cash |
25,000 |
(26,309) |
(60,157) |
(92,828) |
(124,325) |
|
| Ending Cash |
$(26,309) |
$(60,157) |
$(92,828) |
$(124,325) |
$(174,914) |
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