SeasonalizationForecast of sales, including seasonal adjustment.y=.docx

SeasonalizationForecast of sales, including seasonal
adjustment.y=a + bxa=246.884057971b=1.0126086957Time
xActual Sales (A) Jan-01 - Dec-02Regression Forecast (F)
y = a + bxSeasonal Ratio (A)/(F)Seasonal Forecast of
SalesYearMonth0246.88Year
1Jan1245247.900.99245Feb2244248.910.98244Mar3250249.921
.00250Apr4260250.931.04260May5265251.951.05265Jun62602
52.961.03260Jul7255253.971.00255Aug8245254.980.96245Sep
9240256.000.94240Oct10255257.010.99255Nov11265258.021.0
3265Dec12270259.041.04270Year
2Jan13250260.050.96250Feb14250261.060.96250Mar15258262.
070.98258Apr16267263.091.01267May17273264.101.03273Jun
18278265.111.05278Jul19260266.120.98260Aug20256267.140.
96256Sep21255268.150.95255Oct22270269.161.00270Nov2327
5270.171.02275Dec24283271.191.04283Year
3Jan25272.200.97265Feb26273.210.97265Mar27274.220.99272
Apr28275.241.03282May29276.251.04288Jun30277.261.04288J
ul31278.270.99276Aug32279.290.96268Sep33280.300.94265Oc
t34281.311.00281Nov35282.331.02289Dec36283.341.04296
Regression StatisticsCalculation of Regression Statistics
(amounts in thousands)Advertising (x) Sales (y)
xyx2y291513581225192038036140011141541211961416224196
25623255755296251220240144400122024014440022235064845
297149849196132228616948415182702253241718306289324S
UMS (S)1742253,4142,7924,359Using the formulas below, we
substitute from the table above and obtain an intercept (a) of
10.5836 and a slope (b) of .5632y=a +
bxa=10.5836431227b=0.563197026
Regression ReportSUMMARY OUTPUTRegression
StatisticsMultiple R0.7799828575R
Square0.6083732581Adjusted R Square0.5692105839Standard
Error2.3436222084Observations12ANOVAdfSSMSFSignificanc
e

FRegression185.324349442485.324349442415.53451776650.00
27686531Residual1054.92565055765.4925650558Total11140.2
5CoefficientsStandard Errort StatP-valueLower 95%Upper
95%Lower 95.0%Upper
95.0%Intercept10.58364312272.17960878024.85575357320.000
66562455.727172138215.44011410725.727172138215.4401141
072X Variable
10.5631970260.1428931683.94138525980.00276865310.244811
20810.88158284390.24481120810.8815828439
Moving AverageMoving Average ModelFormula for Moving
Average:Moving Average = ForecastMonthDateActual Sales3
Day Moving AverageActual Numerical Deviation = Actual -
ForecastAbsolute Deviation D|A-F|6 Day Moving
AverageAbsolute Deviation D|A-
F|Jan14625435344651.00(5.00)5.0055851.007.007.0064952.33(
3.33)3.3375451.003.003.0051.003.00853.6752.33SD|A-
F|=1.6718.333.00n=441MAD=0.424.583.00
Weighted Moving AverageWeighted Moving Average Model
Formula for weighted moving average:MonthDateActual
SalesW1=0.1, W2=0.3, W3=0.6D|A-F| W1=0.25, W2=0.35,
W3=0.40D|A-F| W1=4 W2=5 W3=8D|A-F|
0Jan14625435344652.606.6051.605.6051.655.6555848.909.105
0.457.5549.948.0664953.904.9052.553.5553.294.2975451.402.6
051.402.6050.943.06852.9053.2553.47SD|A-F|
=23.2019.3021.06n =4.004.004.00MAD =5.804.835.26
Exponential SmoothingExponential Smoothing ModelFormulas
for Exponential Smoothing Model:With a =0.1With a =0.2With
a =0.25MonthDateActual Sales (A)Forecast for a=0.1Forecast
for a=0.2Forecast for a=0.25D|A-F|D|A-F|D|A-
F|0Jan14625446.0046.0046.0035346.806.2047.605.4048.005.00
44647.421.4248.682.6849.253.2555847.2810.7248.149.8648.44
9.5664948.350.6550.121.1250.831.8375448.425.5849.894.1150.
373.63848.9750.7151.28SD|A-F| =24.5823.1623.27n
=5.005.005.00MAD =4.924.634.65
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Regression LineCalculation of the Regression Line (amounts in
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xyx2y291513581225192038036140011141541211961416224196
25623255755296251220240144400122024014440022235064845
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DeVry University
Course Project
BUSN278 Budgeting and Forecasting
Student Project Activity – Week 7
A. Week 7: Section 5.3: Pro Forma Balance Sheet, Finalized
Budget Proposal and Presentation
B. TCOs Addressed:
TCO 10: Given a description of a new business, new product,
service or project develop, present and defend the budget.
C. Project Activity Overview – Scenario / Summary:
Use the Budget Proposal Workbook.xlsx and Budget Proposal
Template.docx to develop pro-forma balances sheets for the new
business. Also create and defend the budget.
D. Deliverables:
Complete Section 5.3: Pro-Forma Balance Sheets. Also,
provide pro forma balance sheets and other supporting budget
calculations in MS Excel template tab 5.0 in Budget Proposal
Workbook.xlsx. Also, put the finishing touches on your
appendices and works cited sections and complete your
executive summary. Update the table of contents with page
numbers. Create a PowerPoint presentation complete with notes
defending the presentation.
Add section 5.3, Works Cited Section 6.0, any content to
Appendices Section 7.0, your Executive Summary, and updated
Table of Contents (with page numbers) to the Budget Proposal
Template.docx and save it as YourName_Project_WK7.docx.
Also add the pro forma balance sheets to Section 5.0 or the
Budget Proposal workbook.xls and save it as
YourName_Worksheet_WK7.xlsx and upload both files to

the Week 7 Project Dropbox.
E. Project Tasks:
Task 1:
Add Pro Forma Balance Sheets to Section 5.0 of the Budget
Proposal Workbook.xls and the Budget Proposal Template.docx
Section 5.3.
Task 2:
Add any works cited, appendices or other details to your Budget
Proposal Template.docx. Also complete your Executive
Summary and Page Numbers in the Table of Contents.
Task 3
Save the Excel and Word documents, and submit them to the
Week 7 Project Dropbox.
Task 4
Create and Save a Powerpoint Presentation presenting and
defending the Budget Proposal, placing notes in the presentation
indicating your assumptions and defense of the budget
components.
Task 5
Submit the PowerPoint presentation to the Week 7 Presentation
Dropbox.
F. Grading Criteria: Project Proposal
Item
Description
Points
Content
All parts of the template are fully completed.
5
Executive Summary
Executive Summary presents the major details of the Budget
Proposal and adequately describes the business.
10
Sales Forecast

Sales Forecast is based on sound methodology and is complete.
15
Capital Expenditure Budget
Capital Expenditure Budget is complete with capital
expenditure items properly identified.
15
Investment Analysis
Investment Analysis is complete with NPV, Rates of Return,
Payback Period and Net Cash Flow Calculations.
15
Pro-Forma Financial Statement Interaction
The Income Statement, Cash Flow Statement, and Balance Sheet
are properly constructed and are internally consistent.
15
Assumptions and Primary Research
Assumptions and sources of financial estimates are
understandable and reasonable for all financial statements.
15
Total
90
G. Grading Criteria: Presentation
Item
Description
Points
Spelling and Grammar
There are no spelling or grammatical errors.
5
Summarization
The key points from the budget proposal are presented at the
right level of detail.
20
Professionalism
The layout of the slides, color schemes, and content are
readable and highly professional.
5

Total
30
End of Week 7
Copyright ®© 2010 by DeVry Educational Development
Corporation.
All rights reserved. No part of this work may be reproduced or
used in any form or by any means – graphic, electronic, or
mechanical, including photocopying, recording, Web
distribution or information storage and retrieval systems –
without the prior consent of DeVry Educational Development
Corporation.
Page 1 of 3
BUSN278_Project_Activity_ Week_7.doc
DeVry University
Course Project
A. Week 6: Section 5.2: Pro Forma Cash Flow Statement
B. TCOs Addressed:
service or project develop, present and defend the budget

Use the Budget Proposal Workbook.xlsx Budget Proposal
Template.docx to develop pro-forma cash flow statements for
the new business
D. Deliverables:
Complete Section 5.2: Pro-Forma Cash Flow Statements.
Also, provide cash flow statements and other supporting budget
calculations in MS Excel template tab 5.0 in Budget Proposal
Workbook.xlsx
Add section 5.2 to the Budget Proposal Template.docx and save
it as YourName_Project_WK6.docx. Also add Section 5.2 to
your Budget Proposal workbook.xls and save it as
E. Project Tasks:
Task 1:
Add Pro Forma Cash Flow statements to Section 5.0 of the
Budget Proposal Workbook.xls and the Budget Proposal
Template.docx.
Task 2:
F. Grading Criteria
Description
Suggested Points
The Pro-forma cash flow statement is properly constructed.
3
Other necessary supporting budgets are present and all
calculations are correct.

3
The sources of figures in the pro-forma cash flow statements
and assumptions are identified.
4
Total Points
10 points
End of Week 6
Corporation.
Corporation.
Page 1 of 2
DeVry University
Course Project

A. Week 5: Section 5.1: Pro Forma Income Statement
B. TCOs Addressed:
service or project develop, present and defend the budget
Template.docx to develop pro-forma income statements for the
new business.
D. Deliverables:
Complete Section 5.1: Pro-Forma Income Statements. Also,
provide calculations in MS Excel template tab 5.0 in Budget
Proposal Workbook.xlsx
your Budget Proposal workbook.xls and save it as
E. Project Tasks:
Task 1:
Add Section 5.1 of the Budget Proposal Workbook.xls and the
Budget Proposal Template.docx.
Task 2:
F. Grading Criteria

Description
Suggested Points
The Pro-forma income statement is properly constructed in
contribution format.
3
Other necessary supporting budgets are also present and all
calculations are correct.
3
The sources of figures in the pro-forma income statement and
assumptions are identified.
4
Total Points
10 points
End of Week 4
Corporation.
Corporation.
Page 1 of 2
DeVry University
Course Project

A. Week 4: Section 4.0 Investment Analysis
B. TCOs Addressed:
Template.docx to develop and present an Investment Analysis
for your new business startup.
D. Deliverables:
Complete Section 4.0: Investment Analysis. Also, provide
calculations in MS Excel template tab 4.0 in the Budget
Proposal Workbook.xlsx.
your Budget Proposal Workbook.xls and save it as
E. Project Tasks:
Task 1:
Complete Section 4.0 of the Budget Proposal Workbook.xls and
the Budget Proposal Template.docx.
Task 2:

F. Grading Criteria
Description
Suggested Points
The cash flows show detailed inflows and outflows, as well as
net cash flows.
3
The NPV Analysis is properly calculated and presented.
3
The Rate of Return calculations are properly calculated and
presented.
2
The payback period is properly calculated and presented.
2
Total Points
10 points
End of Week 4
Corporation.

Corporation.
Page 1 of 2
DeVry University
Course Project
A. Week 3: Section 3.0 Capital Expenditure Budget
B. TCOs Addressed:
Template.docx to develop and present a Capital Expenditure
Budget for your new business startup.
D. Deliverables:
Complete Section 3.0: Capital Expenditure Budget in the
Budget Proposal Template.docx after doing research about
expected capital expenditures. Also, provide calculations in MS
Excel template tab 3.0 in the Budget Proposal Workbook.xlsx.
Add section 3.0 to the Budget Proposal Template and save it as
YourName_Project_WK3.docx. Add your Capital Expenditure

Budget to the worksheet tab labeled Section 3.0 and save as
E. Project Tasks:
Task 1:
Identify items considered capital expenditures for the new
business startup.
Task 2:
Do research to estimate costs of these capital expenditure items.
Task 3:
Create a capital expenditure budget in the Excel Template Tab
labeled Section 3.0 Capital Expenditure Budget.
Task 4:
Add Section 3.0 of the Budget Proposal Template word
document. Make sure the first paragraph of your Executive
Summary Section 1.0 and Sales Forecast Section 2.0 are also in
the Budget Proposal Template. Also, update your Section 6.0
Works Cited as necessary.
Task 5:
F. Grading Criteria
Description
Suggested Points
Capital Expenditure Items have been correctly identified.
3
Costs of these items appear reasonable and based on primary
research.
3
The Capital Expenditure budget is properly constructed in the

Excel Template and calculations appear correct.
2
The Capital Expenditure section of the Word template is
complete and correctly describes the capital expenditure budget
and its underlying assumptions.
2
Total Points
10 points
END OF WEEK 3
Corporation.
Corporation.
Page 1 of 2
DeVry University
Course Project
A. Week 2: Budget ProposalSection 2.0 Sales Forecast
B. TCOs Addressed:

TCO 5: Given a new business startup or new product
introduction and the need to make a forecast when historical
data is not available, create the forecast for the organization.
Last week, you selected a business for which you’ll make a
budget proposal. Your first step is to create a sales forecast (in
sales dollars) when no historical data is available. Use
methods such as historical analogy, expert judgment, consumer
surveys, the Delphi method, or calculations based on population
distributions, estimated growth rates, or expected market
penetration rates to arrive at reasonable sales figures for your
business for the next 5 years.
Template.docx.
D. Deliverables:
Complete Section 2.0 (including sections 2.1 and 2.2) in the
Budget Proposal Template.docx after doing research and
performing calculations to arrive at your 5 year forecast. Also,
provide calculations in the Budget Proposal Workbook.xlsx.
Add section 2.0 to your Budget Proposal Template and save it
as YourName_Project_WK2.docx. Save your sales forecast in
the worksheet tab labeled Section 2.1 and 2.2as
E.
Project Tasks:

Task 1:
Download Budget Proposal Workbook.xlsx from DocSharing.
Task 2:
Research the area in which your business is located, and do
calculations in the Excel workbook which produce a reasonable
dollar value forecast based on population size, growth rates, an
estimate of the percent of the population expected to purchase
your product, and the dollar value of the average sale over the 5
year planning horizon. Do these calculations in the Section 2.1
and 2.2 tab of the Budget Proposal Workbook.xlsx. Also, feel
free to use other methods described in this course you feel are
appropriate to estimate sales for your new business startup’s
first five years.
Task 3:
Write section 2.1 and 2.2 of the Budget Proposal Template.docx
document, summarizing your forecast in a table, and also
describing and justifying your methodology for arriving at the
sales forecast. Follow the instructions in section 2.0 of the
Budget Proposal Template.docx when writing these sections.
Also, update your works cited Section 6.0 in the template with
any research you did.
Task 4:
Paste the first paragraph of the 1.0 Executive Summary template
into the Budget Proposal Template.docx so your professor is
reminded which business you’re doing.
Task 5:
Save the draft of the Budget Proposal Word document and
Budget Proposal Excel calculation and submit it to the Week 2
Project Dropbox.
F. Grading Criteria
Description
Suggested Points

There is a 5 year sales forecast in the Word document Section
2.1 and the Excel spreadsheet (in sales dollars).
2
The 5-year forecast appears to be based on research, reasonable
assumptions, and methodologies described in the course based
on the description in section 2.2 of the template.
4
The 5-year forecast calculations appear to be correct.
4
Total Points
10 points
END OF WEEK 2
Corporation.
Corporation.
Page 1 of 3
Course_Project_Budget_Proposal_Template.docx
Your Company Name
Your Company Name
Budget Proposal
For
[Enter Years Here]

BUSN-278
[Term]
Professor[name]
DeVry University
Table of Contents
Section
Title
Subsection
Title
Page Number
1.0
Executive summary
2.0
Sales Forecast
2.1
Sales Forecast

2.2
Methods and Assumptions
3.0
Capital Expenditure Budget
4.0
Investment Analysis
4.1
Cash flows
4.2
NPV Analysis
4.3
Rate of Return Calculations
4.4
Payback Period Calculations
5.0

Pro Forma Financial Statements
5.1
Pro Forma Income Statement
5.2
Pro-Forma Cash flow Statement
5.3
Pro-Forma Balance Sheets
6.0
Works Cited
7.0
Appendices
7.1
Appendix 1: [description]
7.2Appendix 2:
[description] etc

[Please put page numbers in the last column of the table of
contents above, as they apply to your finished assignment. Do
this after your project is complete. Also, remove this text and
all text that is in italics in this template when finished your
project.]
[Also, please submit your Excel Spreadsheet which shows your
supporting calculations]
(
1.0 Executive Summary
)
The first paragraph of this executive summary should give a
brief description of the business to which this budget applies.
Very briefly describe the products and services of this company,
the geographical or demographics of the customers it serves,
and why people purchase the main product of this business.
Much or all of this will be found in the Business Profile
provided to you. Please use your own words, and please do not
simply copy and paste the explanation in the course materials.
Make assumptions if necessary.
Also, provide a second paragraph which describes how the
budget supports the company’s strategy.
Finally, provide a third paragraph where you summarize the key
points from your budget, including the planning horizon, the
amount of up-front investment, the NPV, Payback and IRR of
the project, as well as key figures from your income statement,
cash flow statement, and balance sheet.
Remember, this is not a thesis or introduction of what you will
talk about – it contains the major, specific content of each

section. The second and third paragraph should be written after
you have completed all other sections of this template.
As you complete sections of this template, please remove all
italicized text in all sections of this template and replace it with
your own or you will lose points!
(
2.0 Sales Forecast
)
Briefly introduce the sales forecast section.
2.1 Sales Forecast
Here you should include a simple table showing the years and
the total sales for each year, along with a brief explanation of
why sales are expected to rise, fall, change, or stay the same in
certain years. Provide a brief explanation of the sales forecast,
indicating why you expect sales to rise or fall during the
planning horizon. Your explanation should be consistent with
the trends and changes in sales found in your table:
Year 1
Year 2
Year 3
Year 4
Year 5
Sales
2.2 Methods and Assumptions
Here you should describe how you arrived at your sales forecast

in section 2.1. You should also provide any detailed
calculations that led you to the sales forecast values. You
should also summarize any research or figures that led you to
make this sales forecast.
(
3.0 Capital Expenditure Budget
)
Here you should provide a screenshot of your capital
expenditure budget, also listing the sources of data and
assumptions that led to each line item in table format. Briefly
describe the total investment and, if necessary, why major items
are necessary to achieve the company’s strategy.
(
4.0 Investment Analysis
)
Briefly describe the NVP, IRR, accounting rate of return, and
payback period for this analysis. Indicate the discount rate you
used, and how you arrived at it.
4.1 Cashflows
Provide an excel spreadsheet screenshot that shows how you
arrive at the net cash flows for each period in your planning
horizon and describe its highlights.
4.2 NPV Analysis
Provide a screen shot of your Excel NPV Analysis here, and
describe its highlights.
4.3 Rate of Return
Provide a screen shot of your IRR and Accounting Rate of
Return calculations here, and explain the highlights.
4.4 Payback Period

Provide a screen shot of your Excel calculation of the payback
period for this venture.
(
5.0 Pro-Forma Financial Statements
)
Briefly introduce this section here.
5.1 Pro-Forma Income Statement
Describe key figures and assumptions from the income
statement, such as important profit or sales figures and their
causes. Also, provide a screen shot of your pro-forma income
statement.
5.2 Pro-Forma Cash Flow Statement
Provide a screen shot of the cash flow statement and describe
the impact of the budget on cash balances.
5.3 Pro-Forma Balance Sheets
Provide a screen shot of your balance sheets, and describe key
figures they contain.
(
6
.0
Works Cited
)
List any sources you cited in the body of your report.
(
7.0
Appendi
ces
)
NOTE: Start this section at the top of a new page.
This section of the budget proposal is where you’ll attach all of

the supporting materials that you’ve referenced in the
preparation of your plan, and that is too detailed or extensive to
be included in the body of the report. Use this page to separate
the appendices from the text in the body of your report. Make
certain that you update the table of contents to include the title
of each exhibit in the appendix and its page number.
7.1 Appendix 1: [put a description here]
Project Activity Week 1.docx
DeVry University
Course Project
A. Week 1: Section 1.0 Executive Summary
B. TCOs Addressed:
You have been asked to create a budget proposal for one of
these businesses: Papa Geo’s Restaurant, The Cutting Edge
Landscaping, or Wireless World Electronics Retail Store. This

week you will begin working on the proposal by drafting the
Executive Summary.
Use the Budget Proposal Template.docx.
D. Deliverables:
Save the first paragraph of Section 1.0 Executive Summary
Draft as YourName_Project_WK1.docx and upload to the Week
1 Project Dropbox.
E. Project Tasks:
Task 1:
Download the Budget Proposal Template.docx from
DocSharing.
Task 2:
Download the Course Project Description.docx. from
DocSharing.
Task 3:
Review the three different business scenarios.
Task 4:
Select the business for which you will create a budget proposal.
Task 5:
Draft the first paragraph of the Section 1.0 Executive Summary.
Task 6:
Save the Draft and submit to the dropbox.
F. Grading Criteria
Description
Suggested Points
The business is briefly described in one paragraph.
3

The business description is in your own words.
3
The business description appears in the Executive Summary
section of the Budget Proposal Template.
2
The business description is one of the three businesses
described in the business profiles.
2
Total Points
10 points
END OF WEEK 1
Corporation.
Corporation.
Page 1 of 2
InstructionsBUSN-278 Budgeting and Forecasting Template
InstructionsUse this spreadsheet structure to lay out the various
sections of your project.The purpose of this spreadsheet is to
make it easy for your professor to locate the various sections of
your project. Please don't alter the Worksheet Tabs or
titles.After you finish your calculations in this spreadsheet, you
will have tocreate a written report where you take screenshots
from this spreadsheetand put them in the Budget Proposal

Template, along with necessary explanations. Detailed
instructions for how to write the reportare found in the Budget
Proposal Template, a word document.
2.1 & 2.2 Sales ForecastPut your sales forecasting calculations
here.
4.1 CashflowsPut your detailed cash inflows and cash outflows
here, also showing net cash flow.
4.2 NPV AnalysisCreate an NPV Analysis here.
4.3 Rate of Return CalculationsShow your rate of return
calculations in this worksheet.
4.4 Payback Period CalculationsShow your payback period
calculations here.
5.0 Pro Forma FinancialsPut your Pro-Forma Income Statement,
Balance sheet and statement of cash flows here, along with any
other supporting calculations or schedules.
DeVry University
Course Project Description
BUSN278 Course Project.
Project Overview:
This is an individual project where you will be acting as a
consultant to an entrepreneur who wants to start a new business.
As the consultant, you’ll create a 5 year budget that supports
the entrepreneur’s vision and strategy, as well as the needs for
equipment, labor, and other startup costs.
You can choose from one of three types of new business
startups -- a landscaping company, a restaurant, or an
electronics store that sells portable computing devices. Each

business has its own Business Profile detailed in the sections
below. The purpose of the Business Profile is to guide you in
understanding the scope of the business, the entrepreneur’s
startup costs, and financial assumptions.
The project requires you to create a written budget proposal, a
supporting Excel Workbook showing your calculations, and a
PowerPoint presentation summarizing the key elements of the
budget proposal, which you assume will be presented to a
management team.
This is an individual project. Each week you will complete a
section of the project in draft form. In Week 7, you will submit
the final version of the project’s Budget Proposal, Budget
Workbook, and Budget Presentation in PowerPoint.
Deliverables Schedule / Points
Week
Deliverable
Points
1
Section 1.0 Executive Summary (Draft)
10
2
Section 2.0 Sales Forecast (Draft)
10
3
Section 3.0 Capital Expenditure Budget (Draft)
10
4
Section 4.0 Investment Analysis (Draft)
10
5
Section 5.1 Pro Forma Income Statement (Draft)
10

6
Section 5.2 Pro Forma Cash Flow Statements (Draft)
10
7
Final Budget Proposal
90
7
Final Presentation w/ PowerPoint
30
Total project points
180
Business Profile: Papa Geo’s – Restaurant
Vision
The vision of the entrepreneur is to create a single-location, sit-
down Italian restaurant called Papa Geo’s. The goal is to
generate an income of $40,000 per year, starting sometime in
the second year of operation, as wells as profit that is at least
2% of sales.
Strategy
a) Market Focus/Analysis
The restaurant targets middle to lower-middle class families
with children, as well as adults and seniors, located in Orlando,
Florida. The area within 15 minutes of the store has 10,000
families, mostly from lower to middle class neighborhoods.
Average family size is 4 people per household. There is no
direct competition; however, there are fast food restaurants like
McDonald’s, Taco Bell and Wendy’s in the geographical target
market. The lower to middle class population is growing at
about 6% per year over the next five years in this area.

b) Product
The product is Italian food served buffet style, in an all-you-
can-eat format, with a salad bar, pizza, several different types
of pasta with three or four types of sauces, soup, desserts, and a
self-serve soda bar. The restaurant is also to have a 500 square
foot gaming area which has game machines that children would
be interested in using.
c) Basis of Competition
Customers come to this restaurant because of the good Italian
food at a low price – you can get a meal for $7, including
drinks. Customers also eat at Papa Geo’s due to the cleanliness
of the facility, the speed of getting their seat and food, and the
vending machines which keep the children busy while adults
enjoy their meal.
Startup Requirements*
Given Costs
· The cost of registering a limited liability company in Florida –
filing fees listed at the bottom of the application for located at:
http://form.sunbiz.org/pdf/cr2e047.pdf
· Renovation of the facility expected to cost $15,000
· Business insurance, estimated at $1,000 per year
· Health and other benefits are 20% of the salaries of the
manager and assistant manager
Costs you should estimate through research, experience or other
methods
· Soda fountain bar
· 2 pizza ovens
· Salad and pizza/dessert bar
· Approximately 100 square foot commercial refrigerator
· 2 cash registers
· 6 video game vending machines
· Management office with desk and lower-priced laptop

computer
· Staff lunchroom equipment such as microwave, sink,
cupboards and refrigerator
· 20 four-seater tables with chairs
· Busing cart for transporting dirty dishes from the dining area
to the dishwashing area
· 140 sets of dishes, including cutlery and drinking cups
· Commercial dishwasher
· Miscellaneous cooking and food handling equipment like
trays, lifters, spoons, pots etcetera
· The cost of an average of 7 employees on the payroll.
· All operating costs, such as advertising, rent for a 3,500
square foot facility with male and female washrooms (already
installed), utilities, maintenance, and annual depreciation
*If you have questions about startup requirements, or think
other startup costs necessary for the business are missing, then
make an assumption and state it in the relevant section of the
report.
Given Financial Assumptions*
· The owner will be granted a loan for the initial startup,
repayable over 10 years at current interest rates for small
business loans.
· The owner will use personal funds to operate the business
until it generates enough cash flow to fund itself.
· Essentially, all sales are made by credit card. All credit card
sales are paid to the restaurant daily by the credit card
company.
· 2.5% of sales is paid to the credit card company in fees.
· Food suppliers give 30 days of trade credit.
· Inventories are expected to be approximately 10% of the
following month’s sales.
· The average meal costs $4.00 in materials and labor.
· The average family spends $4.00 on vending machine tokens.
· Equipment is depreciated on a straight-line basis over 5 years.

· Managers have health benefits, other workers do not. The
company will operate from 10:00 am to 9:00 pm, 7 days a week.
· The entrepreneur will manage the store and draw a salary.
· Every shift has one person on the cash register, one keeping
the food bars stocked with food, two cooking the food, one on
busing and table cleaning, a manager, and assistant manager.
*If you believe any other assumptions are necessary, please
state them in your budget proposal.
Business Profile: The Cutting Edge – Landscaping
Vision
The vision of the entrepreneur is to create a 5-team landscaping
business that caters to upscale neighborhoods in Miami, Florida.
The company is to be called “The Cutting Edge”. The goal of
the entrepreneur is to generate income of at least $42,000 per
year as his personal salary, as well as profits of 4% after tax
sometime no later than the second year of operation. The
entrepreneur intends to buy a route of 100 homes from a lawn
service company whose owner is retiring.
Strategy
The landscaping business targets upscale neighborhoods with
home associations which demand lawns to be manicured and
well-cared for. Customers tend to be upper middle, to upper-
class individuals with household income levels of $110,000 or
more. The geographic focus is Miami and its surrounding area.
The area is expected to show slow economic growth of about
1% per year over the next five years.
b) Product
The product is lawn maintenance and landscaping services as
well as minor irrigation equipment repair. The primary source

of income is expected to be in the form of lawn-cutting, debris-
blowing, and edge trimming services. However, the company
will also do reseeding, landscaping and foliage/tree planting,
tree trimming, and light irrigation system repair when necessary
to keep their customer’s lawns watered and healthy.
Customers hire the Cutting Edge due to its reliability in
showing up when they are supposed to, quality lawn service, as
well as their ability to keep lawn sprinkler systems in good
repair, sparing the homeowner of the inconvenience of calling a
sprinkler repair for minor repairs such as broken or clogged
sprinkler heads, or other minor sprinkler system repairs.
Given Costs
· No health benefits except for the owner of the business
· Workman’s compensation fees
· The cost of the initial route of 100 homes, at a cost of
$120,000
methods
· Team equipment for lawn cutting, which includes equipment
for a two-person team:
· A pickup truck
· A trailer
· A large riding lawnmower
· A smaller riding lawnmower
· A push lawnmower
· Two gas-powered lawn trimmers

· Two gas-powered lawn edgers
· Safety equipment for eye and ear protection
· Tools for minor equipment repair on the job
· A drink cooler
· 2 gas powered blowers
· 2 tree/hedge trimmers
· 2 long ladders
· Buck saws for cutting branches
· The cost of 10 workers, two per team
· All operating costs such as advertising, phone, a small 400
square foot office complete with utilities, internet, laptop
computer, accounting software like QuickBooks, office
supplies, and annual depreciation on equipment.
report. This list is not necessarily complete.
business loans.
· Essentially, 60% sales are made by credit card and 40% are
made by check. All credit card sales are a paid to the company
daily by the credit card company.
· 2.5% of credit card sales is paid to the credit card company in
fees.
· The average lawn service costs $150 per month. Irrigation
repairs are minimal at an average of $50 per customer per year,
landscaping and other services are about $200 per customer per
year.
· Equipment is depreciated on a straight-line basis over 5 years.
· The owner has health benefits, other workers do not.

· Each lawn takes about 1.5 hours to cut and manicure, as well
as any other repairs or extra services like tree or shrub
trimming.
· The entrepreneur will manage the company and draw a salary,
but will not service lawns or perform other services.
Business Profile: Wireless World - Wireless Device Retail Store
Vision
The vision of the entrepreneur is to create a single-location
retail operation that sells portable wireless devices called
Wireless World. The company sells phones, wireless eBook
readers, high-end notebook and netbook computers, iPads, and
other wireless computing devices.
Strategy
This store targets tech-savvy individuals who are mostly
students from wealthy families or working adults between the
ages of 22 and 49 years of age. These individuals either
purchase the products because they love wireless gadgets, think
the gadgets will improve their productivity, or think the
wireless gadgets are fashionable and consistent with their
lifestyle. The store is located in a high-end shopping center
called Millenia Mall alongside Neiman Marcus, Macy’s and
other high-end stores.
b) Product
Products are cutting edge wireless devices from brand name
companies, as well as specialty companies that have unique
products that are not readily available at other stores.

Customers shop at the store for the high-end shopping
experience, knowledgeable staff, superior customer service and
return policies, the broad selection of well-known, brand-name
products, as well as lesser known companies with highly unique
and innovative wireless devices. They also shop at the store
because it is stocked with cutting edge products that are new to
the market.
Given Costs
· Renovation of the facility expected to cost $25,000
· Health and other benefits are 20% of the salaries of the
manager and assistant manager
· Initial investment in inventory is $20,000
methods
· The cost of an average of 7 employees on the payroll.
· All operating costs, such as advertising, rent for a 3,500
square foot facility with male and female washrooms (already
installed), utilities, maintenance, and annual depreciation.
report.

business loans.
· Essentially, all sales are made by credit card. All credit card
sales are paid to the store daily by the credit card company.
· 2.5% of sales is paid to the credit card company in fees.
· Merchandise suppliers give 30 days of trade credit.
· Inventories are expected to be approximately 10% of the
following month’s sales.
· Managers have health benefits, other workers do not.
· The company will operate from 10:00 am to 9:00 pm, 6 days a
week.
· The entrepreneur will manage the store and draw a salary.
Corporation.
Corporation.
Page 1 of 9 BUSN278 Course Project Description.docx
Your Company Name
Your Company Name

Budget Proposal
For
[Enter Years Here]
BUSN-278
[Term]
Professor[name]
DeVry University
Table of Contents
Section
Title
Subsection
Title
Page Number1.0Executive summary
2.0Sales Forecast
2.1Sales Forecast
2.2Methods and Assumptions
3.0Capital Expenditure Budget
4.0Investment Analysis
4.1Cash flows
4.2NPV Analysis
4.3Rate of Return Calculations
4.4Payback Period Calculations
5.0Pro Forma Financial Statements
5.1Pro Forma Income Statement
5.2Pro-Forma Cash flow Statement

5.3Pro-Forma Balance Sheets
6.0Works Cited
7.0Appendices
7.1Appendix 1: [description]
7.2Appendix 2:
[description] etc
[Please put page numbers in the last column of the table of
contents above, as they apply to your finished assignment. Do
this after your project is complete. Also, remove this text and
all text that is in italics in this template when finished your
project.]
[Also, please submit your Excel Spreadsheet which shows your
supporting calculations]
(
1.0 Executive Summary
)
The first paragraph of this executive summary should give a
brief description of the business to which this budget applies.
Very briefly describe the products and services of this company,
the geographical or demographics of the customers it serves,
and why people purchase the main product of this business.
Much or all of this will be found in the Business Profile
provided to you. Please use your own words, and please do not
simply copy and paste the explanation in the course materials.
Make assumptions if necessary.
Also, provide a second paragraph which describes how the
budget supports the company’s strategy.
Finally, provide a third paragraph where you summarize the key
points from your budget, including the planning horizon, the

amount of up-front investment, the NPV, Payback and IRR of
the project, as well as key figures from your income statement,
cash flow statement, and balance sheet.
Remember, this is not a thesis or introduction of what you will
talk about – it contains the major, specific content of each
section. The second and third paragraph should be written after
you have completed all other sections of this template.
As you complete sections of this template, please remove all
italicized text in all sections of this template and replace it with
your own or you will lose points!
(
2.0 Sales Forecast
)
Briefly introduce the sales forecast section.
2.1 Sales Forecast
Here you should include a simple table showing the years and
the total sales for each year, along with a brief explanation of
why sales are expected to rise, fall, change, or stay the same in
certain years. Provide a brief explanation of the sales forecast,
indicating why you expect sales to rise or fall during the
planning horizon. Your explanation should be consistent with
the trends and changes in sales found in your table:
Year 1
Year 2
Year 3
Year 4
Year 5
Sales

2.2 Methods and Assumptions
Here you should describe how you arrived at your sales forecast
in section 2.1. You should also provide any detailed
calculations that led you to the sales forecast values. You
should also summarize any research or figures that led you to
make this sales forecast.
(
)
Here you should provide a screenshot of your capital
expenditure budget, also listing the sources of data and
assumptions that led to each line item in table format. Briefly
describe the total investment and, if necessary, why major items
are necessary to achieve the company’s strategy.
(
4.0 Investment Analysis
)
Briefly describe the NVP, IRR, accounting rate of return, and
payback period for this analysis. Indicate the discount rate you
used, and how you arrived at it.4.1 Cashflows
Provide an excel spreadsheet screenshot that shows how you
arrive at the net cash flows for each period in your planning
horizon and describe its highlights.
4.2 NPV Analysis
Provide a screen shot of your Excel NPV Analysis here, and
describe its highlights.
4.3 Rate of Return

Provide a screen shot of your IRR and Accounting Rate of
Return calculations here, and explain the highlights.4.4
Payback Period
Provide a screen shot of your Excel calculation of the payback
period for this venture.
(
5.0 Pro-Forma Financial Statements
)
Briefly introduce this section here.5.1 Pro-Forma Income
Statement
Describe key figures and assumptions from the income
statement, such as important profit or sales figures and their
causes. Also, provide a screen shot of your pro-forma income
statement.
5.2 Pro-Forma Cash Flow Statement
Provide a screen shot of the cash flow statement and describe
the impact of the budget on cash balances.
5.3 Pro-Forma Balance Sheets
Provide a screen shot of your balance sheets, and describe key
figures they contain.
(
6
.0
Works Cited
)
List any sources you cited in the body of your report.
(
7.0
Appendi
ces
)

NOTE: Start this section at the top of a new page.
This section of the budget proposal is where you’ll attach all of
the supporting materials that you’ve referenced in the
preparation of your plan, and that is too detailed or extensive to
be included in the body of the report. Use this page to separate
the appendices from the text in the body of your report. Make
certain that you update the table of contents to include the title
of each exhibit in the appendix and its page number.7.1
Appendix 1: [put a description here]7.2 Appendix 1: [put a
description here]7.3 Appendix 1: [put a description here]

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