Financial Plan - John Bieler Professor Carrigan Business...

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John Bieler Professor Carrigan Business 100-05 6 April 2007 Mclean Skate Shop Financial Plan Year 0 (6 Months leading up to Opening) Income Statement Revenue (Sales) 1 $0 COGS 2 $0 Gross Profit 3 $0 Expenses 4 Supplies $400 Salary Expense $350 Phone Bill $1,000 Utilities $1,200 Rent $10,000 Liability Insurance $2,000 Advertising $4,000 Interest Expense $2,000 Shop Design Expense $5,000 Total Expenses $25,950 Net Income before Taxes ($25,950) Net Income 5 ($25,950) *** 1-3 the skate shop is yet to be opened so there is no sales/revenue. Since there is the goods sold there is no COGS. Since there is no Revenue or COGS there can be no gross profit made. 4 Office supplies will cost me as much as I spend on school supplies. I plan to train employees before shop opens and that is the salary expense. I expect to pay at least a thousand dollars to. Rent is for renting a building in Mclean/ Great Falls area. Liability insurance is through a major insurance firm. Interest expense is 10% of $20,000 that I loan from the bank. Shop Design is expense is make my shop look appealing to the eye. 5 I expect to lose money before the shop opens but that is why I am borrowing money from the bank. Year 1 Income Statement Revenue (Sales) 1 $85,000 COGS 2 $25,000 Gross Profit 3 $60,000 Expenses 4 Supplies $400 Salary Expense $12,000
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Phone Bill $2,500 Utilities $1,200 Rent $10,000 Liability Insurance $4,000 Advertising $2,500 Interest Expense $2,000 Shipping Expense $15,000 Total Expenses $49,600 Net Income before Taxes $10,400 Net Income 5 $6,760 *** 1-3 I expect to sell a thousand skateboards using prestige pricing. I will get the skateboard parts for around $25 each and will construct and add value to them. Then I will sell for around $60-75. The other ten to twenty-five grand, I will earn from other revenue streams such as t-shirts and parts.
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This note was uploaded on 06/21/2011 for the course BUS 100 taught by Professor Staff during the Fall '08 term at Northern Virginia Community College.

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Financial Plan - John Bieler Professor Carrigan Business...

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