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Community Futures Financial Projection Model Please read this entire page before you do anything else The

"Notes" tab provides additional instructions.


This spreadsheet walks you through the process of developing an integrated set of financial projections. To use this model, simply complete any information asked for found in the color yellow. Example: Fill in boxes that look like this A number found in the color green is optional information that you can complete. Example: Check these assumptions If "green" cells have formulas in them to start with and are then overwritten, the dependent calculations will not be correct and will need to be updated manually Otherwise, any information found in black type is automatically calculated for you. Although the cells that are calculated are locked (or protected), you can turn off this protection to modify the sheets. To do this, select "Tools" from the menu bar at the top of the screen. Then select, "Protection." Finally, select "Unprotect Sheet" and you will be able to edit any labels or formulas. Before you begin, we need some information about your business to best customize your financial statements. Please enter the name of your business in the box below:

The first seven worksheets in this workbook are steps you will need to complete. They are titled: 1. Required Start-Up Funds 2. Salaries and Wages 3. Fixed Operating Expenses 4. & 5. Projected Sales Forecast (2 sheets) 6. Cash Receipts and Disbursements 7. Assumptions-put all the information & research that you found to rationalize/justify the assumptions you used in the other worksheets on this spreadsheet

Begin by clicking on the tabs below


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SCORE Financial Forecasts Template Statements Template Community Futures Notes to Financial
Tab Worksheet
Introduction

Notes
Follow the instructions on the introduction tab. Enter the name of the business in the area shown. As stated, the information entered on the 1st 6 worksheets (tabs) will flow to the statements on worksheets 7 through 21. Enter the start-up funds required to start the business only - not any ongoing monthly expenses. They will be entered in worksheets 2 and 3. Also complete the sources of funding to equal the total required funds. Alter the depreciation years if necessary. Change the interest rates and payment terms to fit the profile of interest-bearing debt. Owner's Equity contribution includes both cash and other assets contributions into the business entity, such as Fixed Assets or prepaid expenses that would be amortized as the business begins doing business. Enter the starting point Balance Sheet data here. In line 29, Working Capital, enter the total of Cash + Accounts Receivable + Prepaid Expense - Accounts Payable - Accrued Expense. These items are cash or sums that will be turned into cash or paid out of cash shortly. Enter monthly wages for employees as well as owner's salaries or compensation. Add the cost of any other benefits you may have that are not calculated--i.e., insert the appropriate % numbers in col. G Enter the monthly costs in the expenses section. Other expenses are calculated from "sources of funding" and "cash flow" information. Alter the labels if necessary. Sales are entered by month using projected units of sales. Enter the # of units by month for year one. The selling price per unit and variable cost per unit must be entered The cost per unit would not include wages or other fixed expenses but would be other variable costs of material and production labor spent on a unit of sales. 4 sections are provided on tabs 4 and 5 for different type sales. A unit of sale could be a job such as in a service business. The price per unit could represent the average selling price of a job and also show the average cost. If your sales consist of many small sales you may need to simplify by entering total monthly sales under units and use 1$ as the selling price and % of $1 as the variable cost per unit. If a Start-up Business, be sure to properly account for a growth in sales. Most new businesses aren't able to be operating at maximum capacity right away: it takes time to grow your business and brand. Also, be sure to take into account any seasonality factors in your monthly sales projections.

Required start-up funds For a start-up business

For an existing business

Salaries and wages

Fixed operating expenses

4 & 5 Sales

Adjust the % Overhead Allocation depending on the Sales Mix of your products. For example, if you intend on generating 60% of revenues from Clothing and 40% from Food Sales, adjust the % Overhead Allocation to account for this sales mix breakdown. 6 Cash receipts/Disbursements Enter the estimated % of when you realistically expect payment from your customers and when you will pay your suppliers. Also enter a minimum cash balance you want to keep on hand. In line 22, enter the interest rate assumed for bank Line of Credit borrowings. In line 25, enter the rate of all federal, state and local taxes as a % of pre-tax income. DO NOT USE THIS PAGE. THIS PAGE IS HIDDEN AND USED FOR FORMATING PURPOSES ONLY Using the input from Tabs 1-6, income statements, cash flow statements, balance sheets are compiled as well as a break-even analysis and amortization schedule. Use the lines outlined in green to insert expected or planned new Fixed Assets expenditures, increases in Inventory to support increasing sales levels, line of credit repayments and dividend distributions. Note that line 40 shows month end Line of Credit bank borrowings, on which interest expense is automatically calculated and inserted into the P&L and Cash Flow statements. Insert industry norms for comparison purposes. Go to: www.ic.gc.ca/eic/site/pp-pp.nsf/eng/home to create a Benchmarking Report Review this page to see if any of your calculations appear to be realistic or unrealistic.

Beginning balance sheet

8 to 15 Statements/analysis

Cash Flow Schedules

12

Financial Ratios

15

Financial Diagnostics

0 Required Start-Up Funds for a New Business or Opening Balance Sheet for an Existing Business
Required Start-Up Funds Fixed Assets Real Estate-Land Buildings Leasehold Improvements Equipment Furniture and Fixtures Vehicles Other Fixed Assets Total Fixed Assets Operating Capital Pre-Opening Salaries and Wages Prepaid Insurance Premiums Inventory Legal and Accounting Fees Rent Deposits Utility Deposits Supplies Advertising and Promotions Licenses Other Initial Start-Up Costs Working Capital (Cash On Hand) Total Operating Capital Total Required Funds Amount $ 20.00 5.00 5.00 5.00 5.00 5.00 years years years years years years A B Totals Depreciation Notes

12-Jun-12

For existing businesses = Cash+Ppd Exp+A/R-A/P-Accrd Exp See Note below# $ C D E F G H

Sources of Funding Owner's Equity Outside Investors Additional Loans or Debt Commercial Loan Commercial Mortgage Credit Card Debt Vehicle Loans Other Bank Debt Total Sources of Funding

Amount 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% $

Totals -

Loan Rate

Term in Months

Monthly Payments

9.00% 8.00% 7.00% 6.00% 5.00%

72.00 240.00 60.00 48.00 36.00

$0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Note#: For existing businesses, this should be the "bucket" of cash plus recievables that will be turned into cash or payables paid out in cash in the near term (i.e. in the first month of the plan) If "green" cells have formulas in them to start with and are then overwritten, the dependent calculations will not be correct and will need to be updated manually

0 Salaries and Wages

12-Jun-12

Salaries and Related Expenses Percent Change Salaries and Wages Owner's Compensation Salaries Wages Full-Time Employees Estimated Hours Per Week Estimated Rate Per Hour Part-Time Employees Estimated Hours Per Week Estimated Rate Per Hour Independent Contractors Total Salaries and Wages Payroll Taxes and Benefits CPP/EI/WCB, etc (approx 15%) Total Payroll Taxes and Benefits

Assumptions

Monthly

Year One

Notes

0 0 0 $ 0 $ 0 19.00 9.00 40.00 9.00

15.00%

Total Salaries and Related Expenses

If "green" cells have formulas in them to start with and are then overwritten, the dependent calculations will not be correct and will need to be updated manually

0 Fixed Operating Expenses

12-Jun-12

Fixed Operating Expenses Expenses Advertising, promotion, marketing $ Automobile (gas, R+M, Insurance) Bank Charges (account, credit card fees, etc.) Business Insurance Equipment purchases Freight and Other Inventory Legal and Accounting Licenses and Municipal Taxes Office Supplies Renovations/Leasehold Improvements Rental - Premises / damage deposit Rentals - Other (equipment, etc.) Repairs and Maintenance - Premises/Equipment Salaries - Management Salaries - Other Telephone Travel Utilities (heat, light, water, etc) Other ______________________ Other ______________________ Other ______________________ Other ______________________ Total Expenses Other Expenses Depreciation Interest Commercial Loan Commercial Mortgage Line of Credit Credit Card Debt Vehicle Loans Other Bank Debt Total Other Expenses

Monthly

Year One

Notes

Automatically calculated from Tab 1 Automatically calculated from Tab 14 Automatically calculated from Tab 8

Total Fixed Operating Expenses

0 Projected Sales Forecast

12-Jun-12

Products and Services Product/Service A Price Per Unit $ Variable Cost Per Unit $ Gross Margin Per Unit $ Projected Unit Sales Seasonality Factor Year One Overhead Exp Allocation Projected Revenue Variable Costs Gross Margin Overhead Expenses Profit $

Assumptions

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Totals Notes

100.00% 0.00% 0.00%

N 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -

100.00% -

0.00%

Breakeven Sales Revenue $ Breakeven Sales Units

Product/Service B Price Per Unit $ Variable Cost Per Unit $ Gross Margin Per Unit $ Projected Unit Sales Seasonality Factor Year One Overhead Exp Allocation Projected Revenue Variable Costs Gross Margin Overhead Expenses Profit $

100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -

0.00% -

0.00%

Breakeven Sales Revenue $ Breakeven Sales Units

If "green" cells have formulas in them to start with and are then overwritten, the dependent calculations will not be correct and will need to be updated manually

0 Projected Sales Forecast - Page 2

12-Jun-12

Products and Services Product/Service C Price Per Unit $ Variable Cost Per Unit $ Gross Margin Per Unit $ Projected Unit Sales Seasonality Factor Year One Overhead Exp Allocation Projected Revenue Variable Costs Gross Margin Overhead Expenses Profit $

Assumptions

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Totals

100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -

0.00% -

0.00%

Breakeven Sales Revenue $ Breakeven Sales Units

Product/Service D Price Per Unit $ Variable Cost Per Unit $ Gross Margin Per Unit $ Projected Unit Sales Seasonality Factor Year One Overhead Exp Allocation Projected Revenue Variable Costs Gross Margin Overhead Expenses Profit $

100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -

0.00% -

0.00%

Breakeven Sales Revenue $ Breakeven Sales Units

If "green" cells have formulas in them to start with and are then overwritten, the dependent calculations will not be correct and will need to be updated manually

0 Cash Receipts and Disbursements

12-Jun-12

Accounts Receivable Collections Percent of Collections 0 to 30 days 31 to 60 days More than 60 days Total Collections Percentage Accounts Payable Disbursements Number of Days to Pay Suppliers 0 to 30 days 31 to 60 days More than 60 days Total Disbursements Percentage Line of Credit Assumptions Desired Minimum Cash Balance Line of Credit Interest Rate Income Tax Assumptions Effective Income Tax Rate Amortization of Start-Up Expenses Amortization Period in Years

Notes 100.00% 0.00% 0.00% 100.00% O

100.00% 0.00% 0.00% 100.00%

8.00%

20.00%

1.00

0 Assumptions
# Item How you arrived at this assumption

06/12/12

E.g.

Based on research done on XYZ website, and from talking to 2 other similar store owners in Williams Lake and Dawson Creek: 2 - 1/4 page ads in the Observer to run the first week of operations - $700 Initial advertising and promotion cost of $3000 Business cards printed and designed -$400 Brochures for grand opening - $750 Ratio ad blitz 1 week before opening and during first week of operations - $550 Coffee/Snacks/Door Prizes/Balloons - $600

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

0 Projected Income Statement - Year One

Jan Income Product/Service A Product/Service B

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total Income Cost of Sales Product/Service A Product/Service B

Total Cost of Sales Gross Margin Total Salary and Wages Fixed Business Expenses Advertising, promotion, marketing Automobile (gas, R+M, Insurance) Bank Charges (account, credit card fees, etc.) Business Insurance Equipment purchases Freight and Other Office Supplies Renovations/Leasehold Improvements Rental - Premises / damage deposit Rentals - Other (equipment, etc.) Repairs and Maintenance - Premises/Equipment Salaries - Management Salaries - Other Telephone Travel Utilities (heat, light, water, etc) Other ______________________ Other ______________________ Other ______________________ Other ______________________ Total Fixed Business Expenses

0 Projected Income Statement - Year One

Jan Other Expenses Amortized Start-up Expenses Depreciation Interest Commercial Loan Commercial Mortgage Line of Credit Credit Card Debt Vehicle Loans Other Bank Debt Taxes Total Other Expenses Net Income -

Feb -

Mar -

Apr -

May -

Jun -

Jul

Aug -

Sep -

Oct -

Nov -

Dec -

Totals

Totals -

0 Projected Cash Flow Statement - Year One

Jan Beginning Cash Balance Cash Inflows Income from Sales Accounts Receivable Total Cash Inflows Cash Outflows Investing Activities New Fixed Assets Purchases Inventory Addition to Bal.Sheet Cost of Sales Operating Activities Salaries and Wages Fixed Business Expenses Taxes Financing Activities Loan Payments Line of Credit Interest Line of Credit Repayments Dividends Paid Total Cash Outflows Cash Flow Operating Cash Balance Line of Credit Drawdowns Ending Cash Balance -

Feb -

Mar -

Apr -

May -

Jun -

Jul

Aug -

Sep -

Oct -

Nov -

Dec -

Totals

Line of Credit Balance

0 Balance Sheet - Year One

Base Period Assets Current Assets Cash Accounts Receivable Inventory Prepaid Expenses Other Current Total Current Assets Fixed Assets Real Estate-Land Buildings Leasehold Improvements Equipment Furniture and Fixtures Vehicles Other Fixed Assets Total Fixed Assets Less: Accumulated Depreciation Total Assets

End of Year One

Liabilities and Owner's Equity Liabilities Accounts Payable Loan Payable Mortgage Payable Credit Card Debt Vehicle Loans Other Bank Debt Line of Credit Balance Total Liabilities Owner's Equity Common Stock Retained Earnings Dividends Dispersed Total Owner's Equity Total Liabilities and Owner's Equity

0 Year End Summary

Year One Income Product/Service A Product/Service B

Total Income Cost of Sales Product/Service A Product/Service B

100.00%

Total Cost of Sales Gross Margin Total Salary and Wages Fixed Business Expenses Advertising, promotion, marketing Automobile (gas, R+M, Insurance) Bank Charges (account, credit card fees, etc.) Business Insurance Equipment purchases Freight and Other Office Supplies Renovations/Leasehold Improvements Rental - Premises / damage deposit Rentals - Other (equipment, etc.) Repairs and Maintenance - Premises/Equipment Salaries - Management Salaries - Other Telephone Travel Utilities (heat, light, water, etc) Other ______________________ Other ______________________ Other ______________________ Other ______________________ Total Fixed Business Expenses Operating Income (before Other Expenses) [EBITDA] Other Expenses Amortized Start-up Expenses Depreciation Interest Commercial Loan Commercial Mortgage Line of Credit Credit Card Debt Vehicle Loans Other Bank Debt Taxes Total Other Expenses Net Income

0.00% 0.00% 0.00%

0.00% 0.00%

0.00% 0.00%

0 Financial Ratios

Ratio Liquidity Current Ratio Quick Ratio Safety Debt to Equity Ratio Debt to Coverage Ratio Profitability Sales Growth COGS to Sales Gross Profit Margin SG&A to Sales Net Profit Margin Return on Equity Return on Assets Owner's Compensation to Sales Efficiency Days in Receivables Accounts Receivable Turnover Days in Inventory Inventory Turnover Sales to Total Assets

Year One Industry Averages 0.0 0.0 0.0 0.0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0 0.0 0.0 0.0 0.0

0 Breakeven Analysis

Breakeven Analysis Annual Sales Revenue Cost of Sales Gross Margin Salaries and Wages Fixed Operating Expenses Total Fixed Business Expenses Breakeven Sales Calculation

Dollars 0.00%

Percent 100.00% 0.00% 0.00%

Breakeven Sales in Dollars

0 Amortization Schedule

Loan Type Commercial Loan Principal Amount $ Interest Rate Loan Term in Months Monthly Payment Amount Year One Interest Principal Loan Balance Year Two Interest Principal Loan Balance Year Three Interest Principal Loan Balance

Assumptions

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Totals

9.00% 72.00 $0.00

Commercial Mortgage Principal Amount $ Interest Rate Loan Term in Months Monthly Payment Amount Year One Interest Principal Loan Balance Year Two Interest Principal Loan Balance Year Three Interest Principal Loan Balance

8.00% 240.00 $0.00

Credit Card Debt Principal Amount $ Interest Rate Loan Term in Months Monthly Payment Amount Year One Interest Principal Loan Balance Year Two Interest Principal Loan Balance Year Three Interest Principal Loan Balance

7.00% 60.00 $0.00

Vehicle Loans Principal Amount $ Interest Rate Loan Term in Months Monthly Payment Amount Year One Interest Principal Loan Balance Year Two Interest Principal Loan Balance Year Three Interest Principal Loan Balance

6.00% 48.00 $0.00

Other Bank Debt Principal Amount $ Interest Rate Loan Term in Months Monthly Payment Amount Year One Interest Principal Loan Balance Year Two Interest Principal Loan Balance Year Three Interest Principal Loan Balance

5.00% 36.00 $0.00

0 Financial Diagnostics

This sheet performs a few tests on your numbers to see if they seem within certain reasonable ranges. Remember, no computer can tell whether your projections are truly well-constructed, only a human can do that. But these tests can at least look for values that are critically out of range.

Financial Diagnostics General Financing Assumptions Owner's Cash Injection into the Business Cash Request as percent of Total Required Funds Loan Assumptions Commercial Loan Interest rate Commercial Loan Term in Months Commercial Mortgage Interest rate Commercial Mortgage Term in Months Loan Payments as a Percent of Projected Sales Income Statement Gross Margin as a Percent of Sales Owner's Compensation Lower Limit Check $ Owner's Compensation Upper Limit Check Advertising Expense Levels as a Percent of Sales Profitability Levels $ Profitability as a Percent of Sales Cash Flow Statement Desired Operating cash Flow Levels Line of Credit Drawdowns Accounts Receivable Ratio to Sales Balance Sheet Does the Base Period Balance Sheet Balance? Does the Final Balance Sheet Balance Debt to Equity Ratio Breakeven Analysis Breakeven Levels

Value 0.0% 0.0%

Findings Owner's injection might be too low in relation to the amount of money needed Cash request seems reasonable with respect to total request

9.0% 72 8.0% 240 0.0%

Interest rate seems reasonable Loan term seems within range for this type of loan Interest rate seems reasonable Loan term seems within range for this type of loan Calculated loan payments as a percent of sales seem resonable

0.0% 0.0% 0.0% 0.0%

Gross margin percentage seems very low An owner's compensation amount has not been established Owner's compensation seems reasonable Advertising as a percent of sales may be too low The business is showing a profit The projection does not seem highly unreasonable

$ $

0.0%

The financial projection provides the desired level of cash flow The business doesn't seem to require a line of credit Accounts receivable amount as a percent of sales seems reasonable

0.0%

The balance sheet does balance The balance sheet does balance The debt to equity ratio seems reasonable

The sales projection is less than the break-even amount

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