Business Plan Financials
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Business Plan Financials
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General administration was assumed to be 5% of revenue. We assumed that $200,000 worth of equipment would be required for manufacturing. This amount of equipment will be able to meet our needs for the first three years of operations. It was paid for by a loan, assumed to be 8% per year. Depreciation expense was based on 7-year MACRS. The tax rate was assumed to be 25% in the years in which we turned a profit
| |Q1 |Q2 |Q3 |Q4 |
|Revenue |133000 |166000 |187000 |148000 |
|COGS |66500 |83000 |93500 |74000 |
|Net Profit |66500 |83000 |93500 |74000 |
|Rent |20500 |20500 |20500 |20500 |
|Salaries |14880 |16800 |16800 |14880 |
|General Admin |6650 |8300 |9350 |7400 |
|Depreciation Expense |12245 |12245 |12245 |12245 |
|Operating Income |12225 |25155 |34605 |18975 |
|Interest Expense |1333 |1333 |1333 |1333 |
|Net Income Before Taxes |10892 |23822 |33272 |17642 |
|Tax Expense |2723 |5956 |8318 |4411 |
|Net Income |8169 |17867 |24954 |13232 |
| |Y3 |
|Revenue |1021992 |
|COGS |510996 |
|Net Profit |510996 |
|Rent |198000 |
|Salaries |112230 |
|General Admin |51100 |
|Depreciation Expense |34980 |
|Operating Income |114686 |
|Interest Expense |1333 |
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