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 Complete a list of key financial assumptions that drive your revenue projections, cost of goods sold and operating expenses. Identify 2-3 companies to benchmark (financial information can be found on their annual reports which are public). 

Income Statement

Company Name
By: Your name
Income Statement
Years 1 to 5
($)
Year 1 Year 2 Year 3 Year 4 Year 5
NET REVENUES 1 1 1 1 1
COST OF REVENUE 1 1 1 1 1
% of Revenues 100% 100% 100% 100% 100%
GROSS PROFIT 0 0 0 0 0
% of Revenues 0% 0% 0% 0% 0%
OPERATING EXPENSES
Sales & Marketing
Research & Development 0 0 0 0 0
General and Administration 0 0 0 0 0
Total Operating Expenses 0 0 0 0 0
% of Revenues 0% 0% 0% 0% 0%
EARNINGS FROM OPERATIONS 0 0 0 0 0
EXTRAORDINARY INCOME / (EXPENSE) 0 0 0 0 0
EARNINGS BEFORE INTEREST & TAXES 0 0 0 0 0
INTEREST INCOME / (EXPENSE) 0 0 0 0 0
NET EARNINGS BEFORE TAXES 0 0 0 0 0
TAXES 0 0 0 0 0
NET EARNINGS 0 0 0 0 0
% of Revenues 0 0 0 0 0

Cash Flow Statement

Company Name
By: Your name
Cash Flow Statememt
Year 1 by Months
Cash Flow Statement Year 1
Year 1 by Months Estimated Annual
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1 Projection
OPERATING ACTIVITIES
Net Earnings 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Depreciation 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Working Capital Changes
(Increase)/Decrease Accounts Receivable 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(Increase)/Decrease Inventories 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(Increase)/Decrease Other Current Assets 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Increase/(Decrease) Accts Pay & Accrd Expenses 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Increase/(Decrease) Other Current Liab 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Net Cash Provided/(Used) by Operating Activities 0 0 0 0 0 0 0 0 0 0 0 0 0 0
INVESTING ACTIVITIES
Property & Equipment 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other 0 0
Net Cash Used in Investing Activities 0 0 0 0 0 0 0 0 0 0 0 0 0 0
FINANCING ACTIVITIES
Increase/(Decrease) Short Term Debt 0 0 0 0
Increase/(Decrease) Curr. Portion LTD 0 0 0 0
Increase/(Decrease) Long Term Debt 0 0 0 0
Increase/(Decrease) Common Stock 0 0 0 0
Increase/(Decrease) Preferred Stock 0 0 0 0
Dividends Declared 0 0 0
Net Cash Provided / (Used) by Financing 0 0 0 0 0 0 0 0 0 0 0 0 0 0
INCREASE/(DECREASE) IN CASH 0 0 0 0 0 0 0 0 0 0 0 0
CASH AT BEGINNING OF PERIOD 0 0 0 0 0 0 0 0 0 0 0 0
CASH AT END OF PERIOD 0 0 0 0 0 0 0 0 0 0 0 0 Year 2 Year 3 Year 4 Year 5
Annual Annual Annual Annual
Projection Projection Projection Projection
Year 2 Year 3 Year 4 Year 5
1st Qtr 2nd Qrtr 3rd Qrtr 4th Qrtr Total 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
OPERATING ACTIVITIES
Net Earnings 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1320 2300 3050 4350
Depreciation 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 500 1650 2130 3370
Working Capital Changes
(Increase)/Decrease Accounts Receivable 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -450 -300 500
(Increase)/Decrease Inventories 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -200 150 1300 1190
(Increase)/Decrease Other Current Assets 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 200 510
Increase/(Decrease) Accts Pay & Accrd Expenses 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 150 100
Increase/(Decrease) Other Current Liab 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 230 450 0 630
Net Cash Provided/(Used) by Operating Activities 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1850 4100 6530 10650
INVESTING ACTIVITIES
Property & Equipment 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Net Cash Used in Investing Activities 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
FINANCING ACTIVITIES
Increase/(Decrease) Short Term Debt 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1000 0
Increase/(Decrease) Curr. Portion LTD 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Increase/(Decrease) Long Term Debt 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Increase/(Decrease) Common Stock 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Increase/(Decrease) Preferred Stock 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Dividends Declared 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Net Cash Provided / (Used) by Financing 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1000 0
INCREASE/(DECREASE) IN CASH 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1850 4100 7530 10650
CASH AT BEGINNING OF PERIOD 300 450 770 1320 2150 2800 3800 5200 6250 8000 9180 11250 13780 16170 18520 21410 300 2150 6250 13780
CASH AT END OF PERIOD 300 450 770 1320 2150 2800 3800 5200 6250 8000 9180 11250 13780 16170 18520 21410 2150 6250 13780 24430

Balance Sheet

Company name
By: Your name
Balance Sheet
Year 1
($)
Begin Year 1 Year 2 Year 3 Year 4 Year 5
ASSETS 0
CURRENT ASSETS 0
Cash 0.00
Accounts Receivable 0.00
Inventories 0.00
Other Current Assets 0.00 0.00 0.00 0.00
Total Current Assets 0.00 0.00 0.00 0.00 0.00 0.00
PROPERTY & EQUIPMENT 0 0.00 0.00 0.00 0.00 0.00
TOTAL ASSETS 0.00 0.00 0.00 0.00 0.00 0.00
LIABILITIES & SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Short Term Debt 0 0 0 0 0 0
Accounts Payable & Accrued Expen 0 0 0 0 0
Other Current Liab 0 0 0 0 0
Current portion of long term debt 0 0 0 0 0 0
Total Current Liabilities 0 0 0 0 0 0
LONG TERM DEBT (less current portion) 0 0 0 0 0 0
TOTAL LIABILITIES & EQUITY 0.00 0 0 0 0 0

Assumptions

Company name:
Assumptions for Financial Projections
Description Value Comment
Revenue Assumptions
Unit Sales Price per unit sold
Overall Market Size potential customers
Target Market Size potential customers in niche
Year One Sales Projections units sold
Year Two Sales Projections units sold
Year Three Sales Projections units sold
Variable Cost Assumptions
Materials per unit sold
Labor per unit sold
Overhead per unit sold
Sales Commission (%) of Unit Sale Price
Sales Commission ($) per unit sold
Fixed Cost Assumptions
Plant Operations per year
Telecommunications per year; includes phones and internet
Legal Services per year
Accounting Services per year
Insurance per year
Personnel Assumptions
Employees (#)
Salary per employee ($) per employee
Employee Salaries ($) $0
Salespeople (#)
Base Salary per Salesperson ($) per salesperson
Sales Base Salaries ($) $0
Personnel Overead Rate (%) 15% of total salaries
Personnel Overhead ($) $0
Start-Up Cost Assumptions
Plant Site Development one-time cost to build or buy
Equipment Costs one-time cost to purchase equipment
Working Capital
Financing Assumptions
Capital from Investors from sale of 25% equity in company
Capital from Commercial Loan
Loan Interest Rate 7% annual percentage rate (APR)
Loan Term 20 years; lifetime of loan
Periods per Year 12 payment periods per year
Total Periods 240 periods for life of loan
Monthly Loan Servicing Cost $0.00
Annual Loan Servicing Cost $0.00
References: Benchmark Companies: