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Unformatted text preview: -even Analysis: Monthly Units Break-even Monthly Sales Break-even 12,500 $12,500 Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost $1.00 $0.20 $10,000 Break-even Analysis Page 13 HURDLE: THE BOOK SP1.16 ON BUSINESS PLANNING 7.4 Projected Profit and Loss The detailed monthly pro forma income statement for the first year is included in the appendix. The annual estimates are included here. Profit and Loss (Income Statement) Sales Direct Cost of Sales Other Total Cost of Sales Gross Margin Gross Margin % Operating expenses: Advertising/Promotion Public Relations Travel Miscellaneous Travel Miscellaneous Payroll Expense Payroll Burden Depreciation Leased Equipment Utilities Insurance Rent Other Contract/Consultants Total Operating Expenses Profit Before Interest and Taxes Interest Expense Short-term Interest Expense Long-term Taxes Incurred Net Profit Net Profit/Sales Year 1 $592,000 $159,000 $0 —————— $159,000 $433,000 73.14% Year 2 $875,000 $219,000 $0 —————— $219,000 $656,000 74.97% Year 3 $1,100,000 $289,000 $0 —————— $289,000 $811,000 73.73% $36,000 $30,000 $90,000 $6,000 $0 $0 $194,750 $27,265 $0 $6,000 $12,000 $3,600 $18,000 $0 $0 —————— $423,615 $9,385 $3,600 $5,000 $196 $589 0.10% $40,000 $30,000 $60,000 $7,000 $0 $0 $377,000 $52,780 $0 $7,000 $12,000 $2,000 $0 $0 $0 —————— $587,780 $68,220 $8,800 $5,000 $13,605 $40,815 4.66% $44,000 $33,000 $110,000 $8,000 $0 $0 $432,000 $60,480 $0 $7,000 $12,000 $2,000 $0 $0 $0 —————— $708,480 $102,520 $12,800 $5,000 $21,180 $63,540 5.78% Page 14 SAMPLE PLAN: ACME CONSULTING SP1.17 7.5 Projected Cash Flow Cash flow projections are critical to our success. The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month and the other representing the monthly balance. The annual cash flow figures are included here. Detailed monthly numbers are included in the appendix. 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 Less: Change in Accounts R...
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