36 50 777 590 281 year 2 536 64 518 590 270 year 3

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Unformatted text preview: 0 $15,000 $15,000 —————— $989,991 10.78% $155,000 $107,840 $12,681 $30,000 $9,000 $6,000 $84,000 $0 $6,331 $410,852 6.35% $179,000 $139,760 $13,315 $31,500 $9,450 $6,300 $88,200 $0 $6,648 $474,173 6.34% $234,000 $169,360 $13,981 $33,075 $9,923 $6,615 $92,610 $0 $6,980 $566,544 6.17% Page 21 HURDLE: THE BOOK SP2.24 Other Expenses Other Payroll Contract/Consultants Other Total Other Expenses Other % Total Operating Expenses Profit Before Interest and Taxes Interest Expense Short-term Interest Expense Long-term Taxes Incurred Net Profit Net Profit/Sales $36,000 $1,500 —————— $37,500 0.58% —————— $1,149,502 $465,419 $7,867 $29,628 $85,585 $342,339 5.29% Page 22 $70,000 $5,000 —————— $75,000 1.00% —————— $1,370,462 $583,624 $8,000 $26,833 $109,758 $439,033 5.87% ON BUSINESS PLANNING $77,000 $30,000 —————— $107,000 1.17% —————— $1,663,535 $1,029,389 $8,000 $21,162 $200,045 $800,182 8.71% SAMPLE PLAN: AMT, INC. SP2.25 7.5 Projected Cash Flow The cash flow depends on assumptions for inventory turnover, payment days, and accounts receivable management. Our projected 45-day collection days is critical, and it is also reasonable. We need $300,000 in new financing in March to get through a cash flow dip as we build up for midyear sales. Pro-Forma Cash Flow Net Profit Plus: Depreciation Change in Accounts Payable Current Borrowing (repayment) Increase (decrease) Other Liabilities Long-term Borrowing (repayment) Capital Input Subtotal Year 1 $342,339 Year 2 $439,033 Year 3 $800,182 $12,681 $537,079 $10,000 $0 $63,292 $325,000 $1,290,391 $13,315 $96,220 $0 $0 ($64,953) $0 $483,615 $13,981 $152,274 $0 $0 ($68,484) $0 $897,953 Less: Change in Accounts Receivable Change in Inventory Change in Other ST Assets Capital Expenditure Dividends Subtotal Net Cash Flow Cash Balance Year 1 $449,771 $746,874 $0 $90,000 $0 $1,286,645 $3,746 $59,178 Year 2 $131,896 $137,884 $0 $200,000 $0 $469,780 $13,835 $73,013 Year 3 $222,718 $198,673 $0 $400,000 $0 $821,391 $76,562 $149,575 CASH ANALYSIS Page 23 HURDLE: THE BOOK SP2.26 ON BUSINESS PLANNING 7.6 Projected Balance Sheet The Projected Balance Sheet is quite solid. We do not project any real trouble meeting our debt obligations—as long as we can achieve our specific objectives. Pro forma Balance Sheet Assets Starting Balances $55,432 $395,107 $251,012 $25,000 $726,551 Year 1 $59,178 $844,878 $997,886 $25,000 $1,926,942 Year...
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This note was uploaded on 01/26/2014 for the course BUINESS 102 taught by Professor Unknown during the Winter '09 term at University of Phoenix.

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