Financial Projections Model v6.8.3 _

8/14/2019 Financial Projections Model v6.8.3 _ www.bantinsom.com

1/31

Financial Projections ModelFor Business Plans

Frank Moyes and Stephen Lawrence

Deming Center for EntrepreneurshipLeeds College of Business

University of ColoradoBoulder, Colorado

Copyright 2003 by the Regents of the University of Colorado


2/31

Instructions

Financial Projections Modelv6.8.3

This financial model is designed to enable entrepreneurs and students project the financial results oftheir ventures for a five-year period. As with all models there are certain simplifying assumptions thathave been made. Each of the assumption spreadsheets has an accompanying Comments box(denoted by a cell with small red triangle in the upper right corner) that provides suggestions on howto complete the spreadsheet and the underlying assumptions to the model.

You will notice that the cells in the spreadsheet are color-coded. This has been done to assist you inentering data, creating or changing formulae, or deleting data, formulae and links.

Enter data and information in Green shaded cells only.Blue shaded cells calculate results within a spreadsheet.Data inYellow shaded cells is transferred to other worksheets.Purple shaded cells bring in data from other spreadsheets.

In the Green and Blue shaded cells, data and formulas may changed, moved or deleted. The currentcalculations are for illustration only -- you will need to tailor these spreadsheets to fit your plan.

In theYellow shaded cells data and formulas may be changed, but not deleted.

DO NOT delete the Purple shaded cells -- they link one spreadsheet with others.

There are 7 principal spreadsheet outputs of this model:INCOME: Income StatementBALANCE: Balance SheetCASHFLOW: Cash Flow StatementBREAKEVEN: Break-even analysisSUMMARY: Analysis of key measuresINCOME-MOS: Income Statements by months for Years 1 to 5CASHFLOW-MOS: Cash flow Statements by months for Years 1 and 2, and

by quarters for Years 3 to 5VAL-1 & VAL-2: Venture capital method for valuing companies

All other spreadsheets are to be used for calculating the underlying assumptions of the 7 principalspreadsheets:

COMPS: Comparison of financial measures to peer companiesREVENUE: Revenue ProjectionsCOST OF REV: Cost of Goods SoldOPER EXPEN: Operating ExpensesPROP & EQUIP: Capital Expenditures, Depreciation, and Net Fixed AssetsSALARIES: Salary PersonnelEXTRA: Extraordinary Income and ExpenseTAXES: Tax calculationWORKCAP: Working CapitalFUNDING: Equity, Debt, Interest Expense, Interest Income, Dividends andRetained Earnings

These assumption spreadsheets are linked to each other and to the 7 principal spreadsheets. Whenyou make a change in one of the spreadsheets, the impact is automatically recalculated for all otherspreadsheets.

When doing financial projections, it is easy to get lost in the trees and lose the sense of what is reality.Most errors can be identified if you continuously ask yourself Does this result make sense? TheCOMPS spreadsheet, where you look at peer companies, can be particularly helpful as a reality test.

There is an example in the model with which you can experiment. When you are ready to start yourown projections, clear all the numbers in the green shaded cells, and then you can begin to enter newnumbers. Enter the name of your company in the first cell of the COMPS spreadsheet. Before youbegin, make a copy of the model on a separate disk.

This original version of the model has been used since the mid-1980s. It has undergone numerousrevisions over that period. Since 1998, students in the Business Plan Preparation course at theUniversity of Colorado have used it to prepare their business plans. We have appreciated theirsuggestions for improvements and would encourage all users to send us comments and suggestions.

Created by Frank Moyes and Stephen LawrenceDeming Center for EntrepreneurshipLeeds School of Business

University of ColoradoBoulder, Colorado

Copyright 2001 by the Regents of the University of Colorado


3/31

04/1

13

XYZ CompanyPeer Company Comparisons

Company

RatiosAccounts Receivable % of Rev 10Inventory % of Rev 15

Accounts Payable % of Rev 8Working Capital % of Rev 16Net Fixed Assets % of Rev 9

Current RatioDebt to Capital (LT Debt + Equity)

ProfitabilityGross Profit % of Rev 30Sales & Marketing % of Rev 30Research & Development % of Rev 30

General & Administration % of Rev 30Operating Expenses % of Rev 40Earnings from Operations % of Rev 12

EBIT % of Rev 12Depreciation % of Rev 3EBITDA % of Rev 14

Net Earnings % of Rev 5

Returns

Return on Assets 12Return on Equity 15Return on Capital (LT Debt + Equity) 15

GrowthRevenue Growth Rate - CAGR: 15Net Earnings Growth Rate - CAGR: 12


4/31

04/1

13

Notes

Projections

Year 2 Year 3 Year 4 Year 58.3% 8.3% 8.3% 8.3%8.3% 6.7% 6.7% 6.7%

8.7% 8.7% 8.7% 8.7%7.9% 6.3% 6.3% 6.3%

11.5% 9.3% 7.3% 5.5%

2.0 2.0 1.9 2.10.32 0.18 0.10 0.04

32.7% 41.5% 42.5% 46.0%19.0% 18.5% 17.9% 18.0%7.9% 7.2% 7.6% 6.7%

8.9% 8.1% 7.3% 6.8%35.7% 33.8% 32.9% 31.5%-3.0% 7.7% 9.6% 14.5%

-3.0% 7.7% 9.6% 14.5%2.5% 2.5% 2.3% 2.0%

-0.5% 10.2% 11.9% 16.5%

-4.2% 7.2% 6.2% 8.7%

-9.5% 21.7% 20.0% 27.2%-20.4% 39.7% 36.1% 45.2%-13.9% 32.4% 32.6% 43.5%

425.0% 85.7% 66.7% 60.0%Negative Negative 42.3% 124.6%


5/31

04/18/200913:58:11XYZ Company Notes

Revenue ProjectionsYears 1 to 5($)

Year 1 Year 2 Year 3 Year 4 Year 5Product A

Number of Units 20,000 75,000 150,000 250,000 400,000Price per unit 50 50 45 45 40

Total 1,000,000 3,750,000 6,750,000 11,250,000 16,000,000Service B

Number of Customers 50,000 100,000 200,000 500,000Fee per Customer 30 30 25 20

Total 0 1,500,000 3,000,000 5,000,000 10,000,000

Net Revenue 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000

Revenues by Months & Quarters($)

Months Year 1 Year 2 Year 3 Year 4 Year 5Month 1 0 262,500Month 2 0 262,500Month 3 0 367,500

Total 1st Quarter 0 892,500 2,000,000 3,000,000 5,000,000

Month 4 50,000 315,000Month 5 80,000 367,500Month 6 100,000 367,500

Total 2nd Quarter 230,000 1,050,000 2,500,000 4,000,000 6,000,000Month 7 100,000 420,000Month 8 120,000 525,000Month 9 150,000 525,000

Total 3rd Quarter 370,000 1,470,000 2,500,000 4,500,000 7,000,000Month 10 120,000 577,500Month 11 130,000 630,000Month 12 150,000 630,000

Total 4th Quarter 400,000 1,837,500 2,750,000 4,750,000 8,000,000Total for year 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000

Average Revenue

by Month 83,333 437,500 812,500 1,354,167 2,166,667by Quarter 250,000 1,312,500 2,437,500 4,062,500 6,500,000


6/31

04/18/200913:58:11

XYZ Company NotesCost of Revenues

Years 1 to 5($)

Year 1 Year 2 Year 3 Year 4 Year 5

Revenue 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000

Cost of Revenue

Product AMaterial Costs per Unit 15.00 14.00 11.00 10.00 9.00Subcontact Costs per Unit 10.00 10.00 7.00 6.50 6.00

Total Direct Costs per Unit 25.00 24.00 18.00 16.50 15.00Unit Sales 20,000 75,000 150,000 250,000 400,000Total Direct Costs 500,000 1,800,000 2,700,000 4,125,000 6,000,000

Labor Costs 69,000 227,700 552,000 864,000 1,200,000Total Direct Costs 569,000 2,027,700 3,252,000 4,989,000 7,200,000

Service BService Personnel Costs 120,750 212,750 480,000 1,500,000 2,750,000

Other ExpensesSalary Expenses 276,000 690,000 990,000 1,410,000 2,000,000Depreciation 36,714 91,714 137,429 190,286 243,143

Facility costs (rent, energy) 50,000 200,000 300,000 300,000 450,000System Costs 25,000 100,000 150,000 300,000 350,000

All other costs % of Revenue 4% 40,000 210,000 390,000 650,000 1,040,000Total Cost of Revenues 1,117,464 3,532,164 5,699,429 9,339,286 14,033,143

% of Revenue 111.7% 67.3% 58.5% 57.5% 54.0%

Allocation of Cost of Revenue between:Variable 729,750 2,450,450 4,122,000 7,139,000 10,990,000Fixed 387,714 1,081,714 1,577,429 2,200,286 3,043,143

Total 1,117,464 3,532,164 5,699,429 9,339,286 14,033,143

Cost of Revenues by Months & Quarters($)

Year 1 Year 2 Year 3 Year 4 Year 5Month 1 0 176,608 0 0 0

Month 2 0 176,608 0 0 0Month 3 0 247,252 0 0 0

Total 1st Quarter 0 600,468 1,169,114 1,724,176 2,698,681

Month 4 55,873 211,930 0 0 0Month 5 89,397 247,252 0 0 0Month 6 111,746 247,252 0 0 0

Total 2nd Quarter 257,017 706,433 1,461,392 2,298,901 3,238,418


Total 3rd Quarter 413,462 989,006 1,461,392 2,586,264 3,778,154Month 10 134,096 388,538 0 0 0Month 11 145,270 423,860 0 0 0

Month 12 167,620 423,860 0 0 0Total 4th Quarter 446,986 1,236,258 1,607,531 2,729,945 4,317,890

Total for year 1,117,464 3,532,164 5,699,429 9,339,286 14,033,143


7/31

XYZ Company NotesOperating ExpensesYears 1 to 5($)


Net Revenues 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000

Sales & MarketingDriversSalaries and Benefits 69,000 270,250 432,900 624,000 816,000Commissions % of Revenue 5% 50,000 262,500 487,500 812,500 1,300,000Direct Mail Campaign 50,000 150,000 300,000 500,000 1,000,000

All other expenses % of Revenue 6% 60,000 315,000 585,000 975,000 1,560,000Total Sales and Marketing 229,000 997,750 1,805,400 2,911,500 4,676,000

% of Revenue 22.9% 19.0% 18.5% 17.9% 18.0%

Research & DevelopmentDrivers

Salaries and Benefits 69,000 195,500 310,050 504,000 672,000Testing 50,000 60,000 100,000 250,000 300,000

All other expenses % of Revenue 3% 30,000 157,500 292,500 487,500 780,000

Total Reaserch & Development 149,000 413,000 702,550 1,241,500 1,752,000% of Revenue 14.9% 7.9% 7.2% 7.6% 6.7%

General & AdministrationDrivers

Salaries and Benefits 125,000 300,150 388,440 573,600 784,800Depreciation 6,667 40,000 106,667 183,333 266,667Rent and Utilities 20,000 20,000 100,000 110,000 200,000

All other expenses % of Revenue 2% 20,000 105,000 195,000 325,000 520,000

Total General & Administration 171,667 465,150 790,107 1,191,933 1,771,467% of Revenue 17.2% 8.9% 8.1% 7.3% 6.8%

Total Operating Expenses 549,667 1,875,900 3,298,057 5,344,933 8,199,467% of Revenue 55.0% 35.7% 33.8% 32.9% 31.5%

Allocation of Operating Expenses between:Vaiable 160,000 840,000 1,560,000 2,600,000 4,160,000

Fixed 389,667 1,035,900 1,738,057 2,744,933 4,039,467Total 549,667 1,875,900 3,298,057 5,344,933 8,199,467


8/31

Sales & Marketing by Months & Quarters($)

Year 1 Year 2 Year 3 Year 4 Year 5Month 1 0 49,888 0 0 0Month 2 0 49,888 0 0 0Month 3 0 69,843 0 0 0

Total 1st Quarter 0 169,618 370,338 537,508 899,231Month 4 11,450 59,865 0 0 0Month 5 18,320 69,843 0 0 0

Month 6 22,900 69,843 0 0 0

Total 2nd Quarter 52,670 199,550 462,923 716,677 1,079,077

Month 7 22,900 79,820 0 0 0

Month 8 27,480 99,775 0 0 0

Month 9 34,350 99,775 0 0 0

Total 3rd Quarter 84,730 279,370 462,923 806,262 1,258,923

Month 10 27,480 109,753 0 0 0

Month 11 29,770 119,730 0 0 0

Month 12 34,350 119,730 0 0 0

Total 4th Quarter 91,600 349,213 509,215 851,054 1,438,769

Total for year 229,000 997,750 1,805,400 2,911,500 4,676,000

Research & Development by Months & Quarters($)


Month 2 0 20,650 0 0 0

Month 3 0 28,910 0 0 0

Total 1st Quarter 0 70,210 144,113 229,200 336,923

Month 4 7,450 24,780 0 0 0

Month 5 11,920 28,910 0 0 0

Month 6 14,900 28,910 0 0 0

Total 2nd Quarter 34,270 82,600 180,141 305,600 404,308

Month 7 14,900 33,040 0 0 0

Month 8 17,880 41,300 0 0 0

Month 9 22,350 41,300 0 0 0

Total 3rd Quarter 55,130 115,640 180,141 343,800 471,692

Month 10 17,880 45,430 0 0 0Month 11 19,370 49,560 0 0 0

Month 12 22,350 49,560 0 0 0

Total 4th Quarter 59,600 144,550 198,155 362,900 539,077Total for year 149,000 413,000 702,550 1,241,500 1,752,000

General & Administrative by Months & Quarters($)


Month 2 0 23,258 0 0 0

Month 3 0 32,561 0 0 0Total 1st Quarter 0 79,076 162,073 220,049 340,667

Month 4 8,583 27,909 0 0 0

Month 5 13,733 32,561 0 0 0Month 6 17,167 32,561 0 0 0

Total 2nd Quarter 39,483 93,030 202,591 293,399 408,800

Month 7 17,167 37,212 0 0 0Month 8 20,600 46,515 0 0 0

Month 9 25,750 46,515 0 0 0

Total 3rd Quarter 63,517 130,242 202,591 330,074 476,933

Month 10 20,600 51,167 0 0 0

Month 11 22,317 55,818 0 0 0

Month 12 25,750 55,818 0 0 0

Total 4th Quarter 68,667 162,803 222,851 348,411 545,067

Total for year 171,667 465,150 790,107 1,191,933 1,771,467

Note: totmust equabove.

Note: tomust eqabove.

Note: totamust equabove.


9/31

04/18/200913:58:13XYZ Company Notes

PersonnelYears 1 to 5($)


Net Revenues 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000

Sales & Marketing

Sales Manager 60,000 80,000 100,000 125,000 150,000Marketing Manager 80,000 100,000 125,000 150,000Customer service 40,000 120,000 200,000 250,000Tech support 35,000 50,000 70,000 130,000(other)(other)(other)

Total Salary 60,000 235,000 370,000 520,000 680,000BenefitsPercent (%) 15% 15% 17% 20% 20%

Total benefit costs 9,000 35,250 62,900 104,000 136,000Total S & M Compensation 69,000 270,250 432,900 624,000 816,000

% of Revenue 6.9% 5.1% 4.4% 3.8% 3.1%

Research and DevelopmentR & D Manager 80,000 100,000 125,000 150,000

Engineers 60,000 60,000 130,000 230,000 300,000Technicians 30,000 35,000 65,000 110,000Subcontract(other)(other)


Total benefit costs 9,000 25,500 45,050 84,000 112,000Total R & D Compensation 69,000 195,500 310,050 504,000 672,000

% of Revenue 6.9% 3.7% 3.2% 3.1% 2.6%

General & AdministrationChief Executive Officer 60,000 80,000 100,000 125,000 150,000Chief Financial Officer 50,000 60,000 75,000 100,000

Accounting 40,000 45,000 25,000 50,000 75,000Secretarial 25,000 26,000 27,000 28,000 29,000Clerks and admin personnel 60,000 120,000 200,000 300,000(other)(other)


Total benefit costs 0 39,150 56,440 95,600 130,800Total G & A Compensation 125,000 300,150 388,440 573,600 784,800

% of Revenue 12.5% 5.7% 4.0% 3.5% 3.0%


10/31

04/18/200913:58:14

Cost of RevenueManufacturing Personnel

Operations Manager 100,000 125,000 150,000 175,000 200,000Quality Assurance 50,000 100,000 150,000 300,000 350,000Materials and Logistics 40,000 150,000 200,000 300,000 450,000Engineering 75,000 125,000 150,000 300,000Other personnel 50,000 150,000 200,000 250,000 300,000(other...)

Total Salary 240,000 600,000 825,000 1,175,000 1,600,000BenefitsPercent (%) 15% 15% 20% 20% 25%

Total benefit costs 36,000 90,000 165,000 235,000 400,000Total Salary Costs 276,000 690,000 990,000 1,410,000 2,000,000

Hourly PersonnelNumber of employees 3 9 20 30 40Average wages per employee 20,000 22,000 23,000 24,000 24,000

Total wages 60,000 198,000 460,000 720,000 960,000BenefitsPercent (%) 15% 15% 20% 20% 25%

Total benefit costs 9,000 29,700 92,000 144,000 240,000 Total Wage Costs 69,000 227,700 552,000 864,000 1,200,000

Service PersonnelNumber of employees 3 5 10 25 40Salary per employee 35,000 37,000 40,000 50,000 55,000

Total salaries 105,000 185,000 400,000 1,250,000 2,200,000Benefits

Percent (%) 15% 15% 20% 20% 25% Total benefit costs 15,750 27,750 80,000 250,000 550,000

Total Salary Costs 120,750 212,750 480,000 1,500,000 2,750,000

Total COR's Compensation 465,750 1,130,450 2,022,000 3,774,000 5,950,000% of Revenue 46.6% 21.5% 20.7% 23.2% 22.9%

Total Salary & Wages 545,000 1,464,000 2,252,000 3,313,000 4,454,000Total Benefits 63,000 219,600 421,390 662,600 1,018,800Total Compensation 728,750 1,896,350 3,153,390 5,475,600 8,222,800

% of Revenue 72.9% 36.1% 32.3% 33.7% 31.6%


11/31

04/18/200913:58:14

XYZ Company NotesExtraordinary Income & Expense

Years 1 to 5($)


Income(Item) 0(Item)(Item)

Total 0 0 0 0 0Start-up expenses

Legal 25,000Relocation 20,000(Item)

Total 45,000 0 0 0 0Total Extraordinary Income/(Expense) (45,000) 0 0 0 0

Extraordinary Income and Expense by Months & Quarters($)

Year 1 Year 2 Year 3 Year 4 Year 5Month 1 (25,000)Month 2 (20,000)

Month 3Total 1st Quarter (45,000) 0 0 0 0

Month 4Month 5Month 6

Total 2nd Quarter 0 0 0 0 0Month 7Month 8Month 9

Total 3rd Quarter 0 0 0 0 0Month 10Month 11Month 12

Total 4th Quarter 0 0 0 0 0Total for year (45,000) 0 0 0 0


12/31

04/18/200913:58:15

XYZ Company NotesTaxesYears 1 to 5

($)Year 1 Year 2 Year 3 Year 4 Year 5

Net Revenues 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000

Income Tax (Rate Federal & State) 0.40 0.40 0.40 0.40 0.40

Net Earnings Before Taxes (712,131) (218,064) 704,515 1,520,781 3,753,390Cumulative (712,131) (930,195) (225,681) 1,295,100 5,048,491

Taxes 0 0 0 (518,040) (1,501,356)Percent of Revenues 0.0% 0.0% 0.0% -3.2% -5.8%


13/31

04/18/2013:58XYZ Company

Property and EquipmentYears 1 to 5($)

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5Purchased

Net Revenues Assets 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000

Capital Expenditures

Computers, Software & Office Equipment 20,000 100,000 200,000 250,000 350,000Plant & Equipment 250,000 350,000 250,000 300,000 300,000Other 10,000 50,000 100,000 100,000 100,000

Total Capital Expenditures 0 280,000 500,000 550,000 650,000 750,000% of Revenue 28.0% 9.5% 5.6% 4.0% 2.9%

Depreciation Computers, Sofware & Office Equipment (allocated to General & Administrative Expenses)Depreciation Rate: Years 1 3 3 3 3 3Year 0 0 0 0 0 0Year 1 6,667 6,667 6,667 0 0Year 2 33,333 33,333 33,333 0Year 3 66,667 66,667 66,667Year 4 83,333 83,333Year 5 116,667

Total Depreciation 6,667 40,000 106,667 183,333 266,667

Depreciation on Plant and Equipment (allocated to Cost of Revenue)Depreciation Rate: Years 1 7 7 7 7 7Year 0 0 0 0 0 0Year 1 35,714 35,714 35,714 35,714 35,714Year 2 50,000 50,000 50,000 50,000Year 3 35,714 35,714 35,714Year 4 42,857 42,857Year 5 42,857


Depreciation Other (allocated to Cost of Revenue)Depreciation Rate: Years 1 10 10 10 10 10Year 0 0 0 0 0 0Year 1 1,000 1,000 1,000 1,000 1,000Year 2 5,000 5,000 5,000 5,000

Year 3 10,000 10,000 10,000Year 4 10,000 10,000Year 5 10,000


Total Depreciation 43,381 131,714 244,095 373,619 509,810% of Revenue 4.3% 2.5% 2.5% 2.3% 2.0%

Property & EquipmentGross Asset Value 0 280,000 780,000 1,330,000 1,980,000 2,730,000Accumulated Depreciation 43,381 175,095 419,190 792,810 1,302,619

Net Property and Equipment 0 236,619 604,905 910,810 1,187,190 1,427,381% of Revenue 23.7% 11.5% 9.3% 7.3% 5.5%

Capital Expenditures by Months & Quarters($)

Year 1 Year 2 Year 3 Year 4 Year 5Month 1 50,000 100,000Month 2 100,000 100,000Month 3 50,000

Total 1st Quarter 200,000 200,000 100,000 200,000 200,000Month 4 40,000Month 5Month 6 100,000

Total 2nd Quarter 40,000 100,000 200,000 200,000 200,000Month 7 40,000Month 8Month 9 100,000

Total 3rd Quarter 40,000 100,000 100,000 100,000 200,000Month 10Month 11Month 12 100,000

Total 4th Quarter 0 100,000 150,000 150,000 150,000Total for year 280,000 500,000 550,000 650,000 750,000


14/31

04/18/200913:58:15Notes


15/31

XYZ Company NoWorking Capital

Years 1 to 5($)


Net Revenues 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000

Accounts Receivable% of Revenue 8.3% 8.3% 8.3% 8.3% 8.3%Days Outstanding 30 30 30 30 30Accounts Receivable 149,400 627,480 913,000 1,577,000 2,656,000(Increase)/Decrease from Prev. Period (149,400) (478,080) (285,520) (664,000) (1,079,000)

Inventory% of Revenue 8.3% 8.3% 6.7% 6.7% 6.7%Inventory Turns 12 12 15 15 15Inventory Days 30 30 24 24 24Inventory 149,400 627,480 737,000 1,273,000 2,144,000(Increase)/Decrease from Prev. Period (149,400) (478,080) (109,520) (536,000) (871,000)

Other Current Assets% of Revenue 1.0% 1.0% 1.0% 1.0% 1.0%Days 4 4 4 4 4

Other CA Value 18,000 75,600 110,000 190,000 320,000(Increase)/Decrease from Prev. Period (18,000) (57,600) (34,400) (80,000) (130,000)

Accounts Payable & Accrued Expenses% of Revenue 8.7% 8.7% 8.7% 8.7% 8.7%Days 31 31 31 31 31AP & Accrued Value 155,720 657,720 957,000 1,653,000 2,784,000Increase/(Decrease) from Prev. Period 155,720 502,000 299,280 696,000 1,131,000

Other Current Liabilites% of Revenue 1.0% 1.0% 1.0% 1.0% 1.0%Days 4 4 4 4 4Other Current Liabilities 18,000 75,600 110,000 190,000 320,000Increase/(Decrease) from Prev. Period 18,000 57,600 34,400 80,000 130,000

Revenues by Months & Quarters($)

Year 1 Year 2 Year 3 Year 4 Year 5Month 1 0 262,500 0 0 0Month 2 0 262,500 0 0 0

Month 3 0 367,500 0 0 0Total 1st Quarter 0 892,500 2,000,000 3,000,000 5,000,000


Total 2nd Quarter 230,000 1,050,000 2,500,000 4,000,000 6,000,000Month 7 100,000 420,000 0 0 0Month 8 120,000 525,000 0 0 0Month 9 150,000 525,000 0 0 0

Total 3rd Quarter 370,000 1,470,000 2,500,000 4,500,000 7,000,000Month 10 120,000 577,500 0 0 0Month 11 130,000 630,000 0 0 0Month 12 150,000 630,000 0 0 0

Total 4th Quarter 400,000 1,837,500 2,750,000 4,750,000 8,000,000Total for year 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000

Accounts Receivable by Months & Quarters($)

Year 1 Year 2 Year 3 Year 4 Year 5Month 1 - 261,450Month 2 - 261,450Month 3 - 366,030 664,000 996,000 1,660,000Month 4 49,800 313,740Month 5 79,680 366,030Month 6 99,600 366,030 830,000 1,328,000 1,992,000Month 7 99,600 418,320Month 8 119,520 522,900Month 9 149,400 522,900 830,000 1,494,000 2,324,000Month 10 119,520 575,190Month 11 129,480 627,480Month 12 149,400 627,480 913,000 1,577,000 2,656,000

Inventory by Months & Quarters($)


16/31

Month 9 149,400 522,900 670,000 1,206,000 1,876,000

Month 10 119,520 575,190

Month 11 129,480 627,480Month 12 149,400 627,480 737,000 1,273,000 2,144,000

Other Current Assets by Months & Quarters($)

Year 1 Year 2 Year 3 Year 4 Year 5Month 1 - 31,500

Month 2 - 31,500Month 3 - 44,100 80,000 120,000 200,000

Month 4 6,000 37,800Month 5 9,600 44,100Month 6 12,000 44,100 100,000 160,000 240,000Month 7 12,000 50,400Month 8 14,400 63,000Month 9 18,000 63,000 100,000 180,000 280,000Month 10 14,400 69,300Month 11 15,600 75,600Month 12 18,000 75,600 110,000 190,000 320,000


17/31

Accounts Payble & Accrued Expenses by Months & Quarters($)

Year 1 Year 2 Year 3 Year 4 Year 5Month 1 - 6,600Month 2 0 0Month 3 31 31 696,000 1,044,000 1,740,000Month 4 50,000 331,170Month 5 82,200 381,360Month 6 103,520 383,670 870,000 1,392,000 2,088,000Month 7 104,400 436,170

Month 8 124,400 543,480Month 9 155,280 548,100 870,000 1,566,000 2,436,000Month 10 126,600 600,600Month 11 135,280 655,410Month 12 155,720 657,720 957,000 1,653,000 2,784,000

Other Current Liabilities by Months & Quarters($)

Year 1 Year 2 Year 3 Year 4 Year 5Month 1 - 31,500

Month 2 - 31,500Month 3 - 44,100 80,000 120,000 200,000Month 4 6,000 37,800Month 5 9,600 44,100

Month 6 12,000 44,100 100,000 160,000 240,000Month 7 12,000 50,400Month 8 14,400 63,000Month 9 18,000 63,000 100,000 180,000 280,000Month 10 14,400 69,300Month 11 15,600 75,600Month 12 18,000 75,600 110,000 190,000 320,000


18/31

04/18/200913:58:18

XYZ Company NotesFunding Projections

Years 1 to 5

($)Begin Year 1 Year 2 Year 3 Year 4 Year 5

Beginning Cash 1,500,000Equity

Common 500,000 500,000 500,000 500,000 500,000 500,000Increase / (Decrease) Previous Period 0 0 0 0 0

PreferredA Round 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000B Round 500,000 500,000 500,000 500,000

Total Preferred 1,000,000 1,000,000 1,500,000 1,500,000 1,500,000 1,500,000

Increase / (Decrease) Previous Period 0 500,000 0 0 0Total Equity 1,500,000 1,500,000 2,000,000 2,000,000 2,000,000 2,000,000

DebtShort Term Debt 100,000

Increase / (Decrease) Previous Period 0 0 0 100,000 (100,000)

Long Term DebtCurrent Portion 100,000 100,000 100,000 100,000

Long Term Portion 400,000 300,000 200,000 100,000Total Long Term Debt 0 500,000 400,000 300,000 200,000

Increase / (Decrease) Previous PeriodCurrent Portion 0 100,000 0 0 0Long Term Protion 0 400,000 (100,000) (100,000) (100,000)

Total Long Term Debt 0 500,000 (100,000) (100,000) (100,000)

Total Equity & Debt 1,500,000 1,500,000 2,500,000 2,400,000 2,400,000 2,200,000

InterestInterest Rate

Short Term Debt 9.0% 9.0% 9.0% 9.0% 9.0%Long Term Debt 12.0% 12.0% 12.0% 12.0% 12.0%

Interest ExpenseShort Term Debt 0 0 0 9,000 0Long Term Debt 0 60,000 48,000 36,000 24,000

Total Interest 0 60,000 48,000 45,000 24,000

Interest IncomeInterest Rate 4.0% 4.0% 4.0% 4.0% 4.0%Interest Income 0 0 0 0 10,000

Retained EarningsNet Income (712,131) (218,064) 704,515 1,002,741 2,252,034

Dividends 50,000Increase / (Decrease) Retained Earnings (712,131) (218,064) 704,515 1,002,741 2,202,034Beginning Retained Earnings 0 (712,131) (930,195) (225,681) 777,060

Ending Retained Earnings (712,131) (930,195) (225,681) 777,060 2,979,094


19/31

04/18/200913:58:19

XYZ CompanyIncome Statement

Years 1 to 5($)


NET REVENUES 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000

COST OF REVENUE 1,117,464 3,532,164 5,699,429 9,339,286 14,033,143% of Revenues 111.7% 67.3% 58.5% 57.5% 54.0%

GROSS PROFIT (117,464) 1,717,836 4,050,571 6,910,714 11,966,857% of Revenues -11.7% 32.7% 41.5% 42.5% 46.0%

OPERATING EXPENSESSales & Marketing 229,000 997,750 1,805,400 2,911,500 4,676,000Research & Development 149,000 413,000 702,550 1,241,500 1,752,000General and Administration 171,667 465,150 790,107 1,191,933 1,771,467

Total Operating Expenses 549,667 1,875,900 3,298,057 5,344,933 8,199,467% of Revenues 55% 36% 34% 33% 32%

EARNINGS FROM OPERATIONS (667,131) (158,064) 752,515 1,565,781 3,767,390

EXTRAORDINARY INCOME / (EXPENSE) (45,000) 0 0 0 0

EARNINGS BEFORE INTEREST & TAXES (712,131) (158,064) 752,515 1,565,781 3,767,390

INTEREST INCOME / (EXPENSE) 0 (60,000) (48,000) (45,000) (14,000)

NET EARNINGS BEFORE TAXES (712,131) (218,064) 704,515 1,520,781 3,753,390

TAXES 0 0 0 (518,040) (1,501,356)

NET EARNINGS (712,131) (218,064) 704,515 1,002,741 2,252,034% of Revenues -71.2% -4.2% 7.2% 6.2% 8.7%


20/31

04/18/200913:58:19

XYZ CompanyBalance Sheet

Years 1 to 5($)

Begin Year 1 Year 2 Year 3 Year 4

ASSETS

CURRENT ASSETS

Cash 1,500,000 408,170 367,660 570,510 792,870

Accounts Receivable 149,400 627,480 913,000 1,577,000

Inventories 149,400 627,480 737,000 1,273,000

Other Current Assets 18,000 75,600 110,000 190,000

Total Current Assets 1,500,000 724,970 1,698,220 2,330,510 3,832,870

PROPERTY & EQUIPMENT 0 236,619 604,905 910,810 1,187,190

TOTAL ASSETS 1,500,000 961,589 2,303,125 3,241,319 5,020,060

LIABILITIES & SHAREHOLDERS' EQUITY

CURRENT LIABILITIES

Short Term Debt 0 0 0 0 100,000

Accounts Payable & Accrued Expen 155,720 657,720 957,000 1,653,000

Other Current Liab 18,000 75,600 110,000 190,000

Current portion of long term debt 0 0 100,000 100,000 100,000

Total Current Liabilities 0 173,720 833,320 1,167,000 2,043,000

0 0 400,000 300,000 200,000

STOCKHOLDERS' EQUITY

CommonStock 500,000 500,000 500,000 500,000 500,000

Preferred Stock 1,000,000 1,000,000 1,500,000 1,500,000 1,500,000

Retained Earnings (712,131) (930,195) (225,681) 777,060

Total Equity 1,500,000 787,869 1,069,805 1,774,319 2,777,060

TOTAL LIABILITIES & EQUITY 1,500,000 961,589 2,303,125 3,241,319 5,020,060

LONG TERM DEBT (less current portion)


21/31

04/18/200913:58:19

Year 5

1,735,714

2,656,000

2,144,000

320,000

6,855,714

1,427,381

8,283,094

0

2,784,000

320,000

100,000

3,204,000

100,000

500,000

1,500,000

2,979,094

4,979,094

8,283,094


22/31

04/18/200913:58:19

XYZ CompanyCash Flow StatememtYears 1 to 5($)

Year 1 Year 2 Year 3 Year 4OPERATING ACTIVITIES

Net Earnings (712,131) (218,064) 704,515 1,002,741Depreciation 43,381 131,714 244,095 373,619Working Capital Changes

(Increase)/Decrease Accounts Receivable (149,400) (478,080) (285,520) (664,000)(Increase)/Decrease Inventories (149,400) (478,080) (109,520) (536,000)

(Increase)/Decrease Other Current Assets (18,000) (57,600) (34,400) (80,000)Increase/(Decrease) Accts Pay & Accrd Expenses 155,720 502,000 299,280 696,000Increase/(Decrease) Other Current Liab 18,000 57,600 34,400 80,000

Net Cash Provided/(Used) by Operating Activities (811,830) (540,510) 852,850 872,360

INVESTING ACTIVITIESProperty & Equipment (280,000) (500,000) (550,000) (650,000)Other

Net Cash Used in Investing Activities (280,000) (500,000) (550,000) (650,000)

FINANCING ACTIVITIESIncrease/(Decrease) Short Term Debt 0 0 0 100,000Increase/(Decrease) Curr. Portion LTD 0 100,000 0 0Increase/(Decrease) Long Term Debt 0 400,000 (100,000) (100,000)Increase/(Decrease) Common Stock 0 0 0 0

Increase/(Decrease) Preferred Stock 0 500,000 0 0Dividends Declared 0 0 0 0

Net Cash Provided / (Used) by Financing 0 1,000,000 (100,000) 0

INCREASE/(DECREASE) IN CASH (1,091,830) (40,510) 202,850 222,360

CASH AT BEGINNING OF YEAR 1,500,000 408,170 367,660 570,510

CASH AT END OF YEAR 1,500,000 408,170 367,660 570,510 792,870


23/31

04/18/200913:58:19

Year 5

2,252,034509,810

(1,079,000)(871,000)(130,000)

1,131,000130,000

1,942,844

(750,000)

(750,000)

(100,000)0

(100,000)0

0(50,000)

(250,000)

942,844

792,8701,735,714


24/31

04/18/200913:58:19

XYZ Company NotesBreak-Even Analysis

Years 1 to 5($)

Year 1 Year 2 Year 3 Year 4 Year 5Revenue 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000

Cost of RevenueVariable 729,750 2,450,450 4,122,000 7,139,000 10,990,000Fixed 387,714 1,081,714 1,577,429 2,200,286 3,043,143Total 1,117,464 3,532,164 5,699,429 9,339,286 14,033,143

Operating ExpensesVariable 160,000 840,000 1,560,000 2,600,000 4,160,000Fixed 389,667 1,035,900 1,738,057 2,744,933 4,039,467Total 549,667 1,875,900 3,298,057 5,344,933 8,199,467

Total Costs & ExpensesVariable 889,750 3,290,450 5,682,000 9,739,000 15,150,000Fixed 777,381 2,117,614 3,315,485 4,945,219 7,082,610Total 1,667,131 5,408,064 8,997,485 14,684,219 22,232,610

Variable Costs/Revenue Ratio 0.89 0.63 0.58 0.60 0.58

Break-Even Point Revenues 7,051,076 5,673,484 7,946,406 12,342,161 16,972,152


25/31

XYZ CompanyIncome Statements5 Years by Months & Quarters

($)

XYZ CompanyIncome StatementYear 1 by Months

Month 1 Month 2 Month 3 Month 4 M

NET REVENUES 0 0 0 50,000

COST OF REVENUE 0 0 0 55,873

GROSS PROFIT 0 0 0 (5,873)

OPERATING EXPENSESSales & Marketing 0 0 0 11,450 Research & Development 0 0 0 7,450

General and Administration 0 0 0 8,583 Total Operating Expenses 0 0 0 27,483

EARNINGS FROM OPERATIONS 0 0 0 (33,357)

EXTRAORDINARY INCOME / (EXPENSE) (25,000) (20,000) 0 0

EARNINGS BEFORE INTEREST & TAXES (25,000) (20,000) 0 (33,357)

INTEREST INCOME / (EXPENSE) 0 0 0 0

NET EARNINGS BEFORE TAXES (25,000) (20,000) 0 (33,357)

TAXES 0 0 0 0

NET EARNINGS (25,000) (20,000) 0 (33,357)

XYZ CompanyIncome StatementYear 2 by Months

Month 1 Month 2 Month 3 Month 4 M

NET REVENUES 262,500 262,500 367,500 315,000

COST OF REVENUE 176,608 176,608 247,252 211,930

GROSS PROFIT 85,892 85,892 120,249 103,070

OPERATING EXPENSESSales & Marketing 49,888 49,888 69,843 59,865 Research & Development 20,650 20,650 28,910 24,780 General and Administration 23,258 23,258 32,561 27,909

Total Operating Expenses 93,795 93,795 131,313 112,554

EARNINGS FROM OPERATIONS (7,903) (7,903) (11,065) (9,484)

EXTRAORDINARY INCOME / (EXPENSE) 0 0 0 0

EARNINGS BEFORE INTEREST & TAXES (7,903) (7,903) (11,065) (9,484)

INTEREST INCOME / (EXPENSE) (5,000) (5,000) (5,000) (5,000)

NET EARNINGS BEFORE TAXES (12,903) (12,903) (16,065) (14,484)

TAXES 0 0 0 0

NET EARNINGS (12,903) (12,903) (16,065) (14,484)

XYZ CompanyIncome StatementYears 3, 4 & 5 by Quarters

Year 31st Qtr 2nd Qrtr 3rd Qrtr 4th Qrtr


26/31

XYZ CompanyCash Flow Statememt

Year 1 by Months

($)

XYZ CompanyCash Flow Statement

Year 1 by MonthsMonth 1 Month 2 Month 3 Month 4 Month 5

OPERATING ACTIVITIESNet Earnings (25,000) (20,000) 0 (33,357) (53Depreciation 3,615 3,615 3,615 3,615 3Working Capital Changes

(Increase)/Decrease Accounts Receivable 0 0 0 (49,800) (29

(Increase)/Decrease Inventories 0 0 0 (49,800) (29(Increase)/Decrease Other Current Assets 0 0 0 (6,000) (3Increase/(Decrease) Accts Pay & Accrd Expenses 0 0 31 49,969 32Increase/(Decrease) Other Current Liab 0 0 0 6,000 3

Net Cash Provided/(Used) by Operating Activities (21,385) (16,385) 3,646 (79,373) (77

INVESTING ACTIVITIESProperty & Equipment (50,000) (100,000) (50,000) (40,000)Other

Net Cash Used in Investing Activities (50,000) (100,000) (50,000) (40,000)

FINANCING ACTIVITIESIncrease/(Decrease) Short Term Debt 0 Increase/(Decrease) Curr. Portion LTD 0 Increase/(Decrease) Long Term Debt 0 Increase/(Decrease) Common Stock 0

Increase/(Decrease) Preferred Stock 0 Dividends Declared

Net Cash Provided / (Used) by Financing 0 0 0 0

INCREASE/(DECREASE) IN CASH (71,385) (116,385) (46,354) (119,373) (77

CASH AT BEGINNING OF PERIOD 1,500,000 1,428,615 1,312,230 1,265,877 1,146

CASH AT END OF PERIOD 1,428,615 1,312,230 1,265,877 1,146,504 1,069

XYZ CompanyCash Flow Statement

Year 2 by MonthsMonth 1 Month 2 Month 3 Month 4 Month 5

OPERATING ACTIVITIESNet Earnings (12,903) (12,903) (16,065) (14,484) (16Depreciation 10,976 10,976 10,976 10,976 10Working Capital Changes

(Increase)/Decrease Accounts Receivable (112,050) 0 (104,580) 52,290 (52(Increase)/Decrease Inventories (112,050) 0 (104,580) 52,290 (52

(Increase)/Decrease Other Current Assets (13,500) 0 (12,600) 6,300 (6Increase/(Decrease) Accts Pay & Accrd Expenses (149,120) (6,600) 31 331,139 50Increase/(Decrease) Other Current Liab 13,500 0 12,600 (6,300) 6

Net Cash Provided/(Used) by Operating Activities (375,147) (8,527) (214,217) 432,211 (59

INVESTING ACTIVITIESProperty & Equipment (100,000) (100,000) 0 0 Other

Net Cash Used in Investing Activities (100,000) (100,000) 0 0

FINANCING ACTIVITIESIncrease/(Decrease) Short Term Debt 0 Increase/(Decrease) Curr. Portion LTD 100,000

Increase/(Decrease) Long Term Debt 400,000 Increase/(Decrease) Common Stock 0 Increase/(Decrease) Preferred Stock 500,000 Dividends Declared

Net Cash Provided / (Used) by Financing 1,000,000 0 0 0

INCREASE/(DECREASE) IN CASH 524,853 (108,527) (214,217) 432,211 (59

CASH AT BEGINNING OF PERIOD 408,170 933,023 824,496 610,279 1,042CASH AT END OF PERIOD 933,023 824,496 610,279 1,042,490 983

XYZ C


27/31

04/18/200913:58:23

XYZ CompanySummaryYears 1 to 5

Year 1 Year 2 Year 3 Year 4 Year 5Summary Financials ($)

Revenue 1,000,000 5,250,000 9,750,000 16,250,000 26,000,000Gross Profit (117,464) 1,717,836 4,050,571 6,910,714 11,966,857EBIT (712,131) (158,064) 752,515 1,565,781 3,767,390EBITDA (668,750) (26,350) 996,610 1,939,400 4,277,200Net Earnings (712,131) (218,064) 704,515 1,002,741 2,252,034

Net Cash from Operating Activities (811,830) (540,510) 852,850 872,360 1,942,844Capital Expenditures 280,000 500,000 550,000 650,000 750,000Interest Income/(Expense) 0 (60,000) (48,000) (45,000) (14,000)Dividends 0 0 0 0 50,000Cash 408,170 367,660 570,510 792,870 1,735,714Total Equity (212,131) (430,195) 274,319 1,277,060 3,479,094Total Debt 0 500,000 400,000 300,000 200,000

GrowthRevenue Growth Rate - CAGR: 425% 86% 67% 60%Net Earnings Growth Rate - CAGR: Nil Nil 42.3% 124.6%

RatiosCurrent Ratio 4.2 2.0 2.0 1.9 2.1Debt to Capital (LT Debt + Equity) 0.0 0.3 0.2 0.1 0.0

ProfitabilityGross Profit % -11.7% 32.7% 41.5% 42.5% 46.0%Operating Expenses % 55.0% 35.7% 33.8% 32.9% 31.5%Net Earnings % -71.2% -4.2% 7.2% 6.2% 8.7%

ReturnsReturn on Assets -74.1% -9.5% 21.7% 20.0% 27.2%Return on Equity -90.4% -20.4% 39.7% 36.1% 45.2%Return on Capital (LT Debt + Equity) -90.4% -13.9% 32.4% 32.6% 43.5%


28/31

04/18/20013:58:2

XYZ CompanyValuation

Venture Capital MethodYears 1 to 5

Assumptions:Investor required IRR 60%P/E ratio at IPO or acquisition 15

Initial investment $1,500,000

REF D

Valuation Calculation Year NeCalculation Inc

Liquidity Event in Year 1 1Liquidity Event in Year 2 2Liquidity Event in Year 3 3Liquidity Event in Year 4 4

Liquidity Event in Year 5 5


29/31

04/18/200913:58:27

IRR CalculationStart

($1,500,000)

($1,500,000)($1,500,000)($1,500,000)

($1,500,000)

($1,500,000)

($1,500,000)($1,500,000)($1,500,000)

($1,500,000)

m


30/31

04/18/200913:58:30

WorkspaceYear 1 Year 2 Year 3 Year 4 Yea

$0

$0 $0$0 $0 $6,144,000$0 $0 $0 $9,830,400

$0 $0 $0 $0 $15,

$0

$0 $0$0 $0 $2,641,930$0 $0 $0 $3,760,278

$0 $0 $0 $0 $13,


31/31

04/18/200913:58:30

XYZ Company NotesValuationVenture Capital Method

Years 1 to 5Multiple Rounds

Assumptions Ref CalculationMonth of IPO 60 AForecast annualized earnings at IPO $2,252,034 BP/E ratio at IPO 15 C

Investment Round First Second ThirdMonth of Investment 0 24 C

Investor required IRR 60% 50% DAmount of Investment $1,500,000 $500,000 ERequired Monthly IRR 5.00% 4.17% 0.00% F D/12Duration of Investment 60 36 60 G A-C

Calculations

Market Capitalization at IPO $33,780,514 H B*C

First Second ThirdRequired FV for Investor at IPO $15,728,640 $1,687,500 $0 I E*(1+F)^GIndividual Investor's Share 46.6% 5.0% 0.0% J I/H

Individual Investor's ROI 1049% 338% #DIV/0! K I/E

Individual Investor's IRR 60% 50% #DIV/0! L (I/E)^(12/G)-1

Cumulative Investors' Share 46.6% 51.6% 51.6% M sum(J)Cumulative Founders' Share 53.4% 48.4% 48.4% N 1-M

Negotiations Round First Second ThirdIndividual Investor's Share 15.0% 5.0% 3.0%FV for Investor at IPO $5,067,077 $1,689,026 $1,013,415

Individual Investor's ROI 338% 338% #DIV/0!Individual Investor's IRR 28% 50% #DIV/0!

Date post:	30-May-2018
Category:	Documents
Upload:	bantinsom
View:	221 times
Download:	1 times

Financial Projections Model v6.8.3 _

Documents