BA 385, Principles of Finance The Capstone Assignment The description here is a follow-up to the material presented in class. The SS template and assignment instructions are posted in Moodle. If you have questions after reading this please talk with me. – Thanks – Curt To use the SS to its greatest advantage the following conditions for your business must be met: 1. It must be a start-up business 2. You must borrow money and demonstrate how you will repay your debt. 3. You must provide your own capital. This is the “sale of stock” row on the CF tab. Even if you are not a corporation, think of this as your owner financial contribution to the firm. 4. Your business must provide a physical product. You may not start a service firm such as an athletic facility (a running camp), an accounting firm (we’ll do your taxes), guide services (let me help you catch fish), or a consulting business (I charge $150 per hour with no appreciable cost of goods sold). A restaurant is OK because there is a definite cost per unit sold (that $6 burger has $1 worth of ingredients). I suggest that you manufacture items with easily identifiable revenues and expenses. 5. Pay yourself a decent living wage and show a profit. Why would you make up a failing company where you also get to be poor? I believe this assignment is more valuable with a higher level of achievement and understanding if you are required to complete various portions on a regular basis throughout the term. As you complete the tabs on the SS you should also be completing a Word document explaining your assumptions. Later, as you need to change your SS values, be sure to ALSO CHANGE the assumptions on your Word document. For the first submission you will submit two documents; a copy of your completed SS to-date and your corresponding Word document. In subsequent weeks you will REPLACE each of those documents with updated versions until you have completed the entire assignment. Only one partner should be submitting the assignments. Make sure all LAST names are in the title of the submitted documents so that I can review each and give credit to all group members. Assignment portions are due within two hours of the completion of the last class period of the week. You may complete each portion of the overall assignment earlier than required, but late work will realize a modest penalty. Still, turning in your work late is vastly preferable to not turning in your work at all. The completed assignment is due two hours after the completion of the last regular day of class for the term (dead week). After reviewing your submissions, (I INTEND to do this weekly…don’t hold your breath!) I will enter a score in Moodle for your work-to-date. The total possible points are 50 and I will enter a maximum of 5 points per tab/portion submitted. Tabs: Week 2: Intro Think of a name for your company and when you will start your business. Week 3: CFI often start with this, the cash flow tab. After I think about what type ...

1. BA 385, Principles of Finance
The Capstone Assignment
The description here is a follow-up to the material presented in
class. The SS template and assignment instructions are posted in
Moodle. If you have questions after reading this please talk with
me. – Thanks – Curt
To use the SS to its greatest advantage the following conditions
for your business must be met:
1. It must be a start-up business
2. You must borrow money and demonstrate how you will repay
your debt.
3. You must provide your own capital. This is the “sale of
stock” row on the CF tab. Even if you are not a corporation,
think of this as your owner financial contribution to the firm.
4. Your business must provide a physical product. You may not
start a service firm such as an athletic facility (a running camp),
an accounting firm (we’ll do your taxes), guide services (let me
help you catch fish), or a consulting business (I charge $150 per
hour with no appreciable cost of goods sold). A restaurant is
OK because there is a definite cost per unit sold (that $6 burger
has $1 worth of ingredients). I suggest that you manufacture
items with easily identifiable revenues and expenses.
5. Pay yourself a decent living wage and show a profit. Why
would you make up a failing company where you also get to be
poor?
I believe this assignment is more valuable with a higher level of
achievement and understanding if you are required to complete
various portions on a regular basis throughout the term. As you
complete the tabs on the SS you should also be completing a
Word document explaining your assumptions. Later, as you
need to change your SS values, be sure to ALSO CHANGE the
assumptions on your Word document.
For the first submission you will submit two documents; a copy

2. of your completed SS to-date and your corresponding Word
document. In subsequent weeks you will REPLACE each of
those documents with updated versions until you have
completed the entire assignment. Only one partner should be
submitting the assignments. Make sure all LAST names are in
the title of the submitted documents so that I can review each
and give credit to all group members.
Assignment portions are due within two hours of the completion
of the last class period of the week. You may complete each
portion of the overall assignment earlier than required, but late
work will realize a modest penalty. Still, turning in your work
late is vastly preferable to not turning in your work at all. The
completed assignment is due two hours after the completion of
the last regular day of class for the term (dead week).
After reviewing your submissions, (I INTEND to do this
weekly…don’t hold your breath!) I will enter a score in Moodle
for your work-to-date. The total possible points are 50 and I
will enter a maximum of 5 points per tab/portion submitted.
Tabs:
Week 2: Intro Think of a name for your company and
when you will start your business.
Week 3: CFI often start with this, the cash flow tab. After I
think about what type of firm I would like to have, I then think
about how much money I need to start it and keep it going, and
I think about where is that money coming from?!
A couple of important notes for this tab: Row 64 says “Sale of
Stock”. Think of this as YOUR contribution to the firms. In
most cases I expect you and your partner to personally
contribute 50% or more of the start-up costs. After all, if you
are not willing and able to contribute money to your firm, why
should anyone else? With 20/20 hindsight, I think this cell
should have been labeled “Owners Contribution”.
Be sure to begin a regular repayment plan for any money that
you do intend to borrow. Also, make sure that the values in row
72, “Ending Cash”, never fall below $0. If they do that means
you have failed to meet your financial obligations in that period

3. and are at that point bankrupt.
Week 4: Sales Identify the products and/or services you
plan to sell. Do this in general terms. I would like you to
identify three or four such products/services. For example, if
you started a drive-through coffee kiosk, you might identify
“hot drinks”, “cold drinks”, “food items”, and “misc.” as your
four categories rather than listing a menu of 47 different drinks
and sizes.
You then need to spend some time attempting to determine how
many of your items you will sell at an AVERAGE price and an
AVERAGE cost. Further, if appropriate, add some seasonality
to your assumptions. For instance, I would think a drive-through
coffee kiosk sells more cold drinks in the summer than it does
in the winter.
Week 5: People How many people do you need to hire
to operate your company and how much are you going to pay
them? Are your sales people paid on commission? Are you open
more hours over Christmas? Are the people a direct cost of sales
or are they an operating expense, or are they a combination?
Week 6: IS This is the income statement and it starts
by filling in a number of the costs that you have already
identified. But you still have to identify your operating costs
such as utilities, insurance, rent/lease payments, licensing,
Marketing…
Week 7: BS A lot of the balance sheet fills in by itself.
I suggest that you leave column D “Beginning Balances” alone
and treat your firm as a new start-up. If you intend to claim that
you are stepping into an on-going firm then you need to
complete column D. But this is harder to do if you have no real
frame of reference for what a firm’s balance sheet would look
like after several years of operation.
What this tab DOES DO is give you the opportunity to think
about what percentage of your sales are on credit vs cash (and
thus accounts receivable), how much inventory do you need
(usually as a percentage of sales), and how you go about paying
for things (i.e., accounts payable).

4. Week 8: Break The breakeven tab is often overlooked –
don’t you make that mistake. I understand that in the long-run
“everything is a variable cost”. But in Business very few items
are typically considered to be completely fixed or completely
variable. Think about your utility bills for instance. They are
never the same from month to month. Does this make them
completely variable? Think of it this way: I pay water, sewer,
electricity, and natural gas bills. I never pay the same amount in
any particular month but I owe something every month. My
combined utility bills may range from a low of $100 per month
to a high of $300, with an average over the year of $250 per
month. Thus, I could view my utility bills as 40% fixed
($100/$250) and 60% variable (1- fixed percentage).
Week 9: PV On this tab you are being asked to project
out your cash flows (from the cash flow tab) for years 4 – 10.
You are making up these numbers, but you need to tell me about
your assumptions for arriving at those numbers. A little further
down on that page you are thinking about how much money
YOU put into the firm, and how much money YOU get out of
the firm.
Week 10: What I learned This is not a tab, but rather the 300 –
600 word summary from EACH group member of what they
have learned from the assignment.
BA 385, Principles of Finance
Capstone Assignment Group Pro Forma Financial Statement
Project
In your groups, using the Financial Statement Projection
Spreadsheet used for BA499, develop a full set of projected
financial statements for a hypothetical company.
To complete this project provide the following:
1. A description of your hypothetical company. This description
must make it clear to me what the company does; the product or

5. service it will be providing; the target market to be served and
what portion of the target market the company plans to serve
(this must be realistic and specify the number of people), where
it will be located, the number of employees it will have, how
the company anticipates financing the business, and any other
information necessary for me to understand the company.
2. A detailed list of assumptions used to project the financial
statements. These assumptions must include how sales were
computed based on the target market you will serve.
3. The excel file that includes the group’s projected financial
statements. This will show 3 years of projections with the first
year by month.
4. A short description (300-600 words for each group member)
written by each member of the group describing what they
learned from the project. These should be written separately,
not as a group, although I want you to include them in one
WORD file. Be sure to show each members name at the
beginning of their section.
5. The project will be submitted the same way you have
submitted each of the previous Bb assignments into the Bb
submission folder. This is a challenging project, but will
substantially help prepare you for BA 499. The time to start is
upon you. Your financial statements will not be perfect, but you
must be clear about all your assumptions. When you are making
a wild guess make it clear in your assumptions that you are
doing that. You can be far more accurate than you think. Be
reasonable, talk to other business people, and use ratios for your
industry to help you with your projections. Your sales
projections should be based on your target market. How many
people will you sell to, how many times, and what will be the
average amount of a transaction. Demonstrate how you have the
capacity to sell to that number of people.

6. Good luck! Remember this assignment uses the same financial
statement projection model that you use in BA 499. See
http://www.sou.edu/business/dungan/ba385/Projects/GradeSheet
Project2R.doc for grade sheet.
TOCFinancial Plan Forecast TemplateBA499Table of
ContentsWorksheetContentsInput WorksheetsIntroIntroduction
plus basic inputs for company name and start dateSalesInputs
for Sales and COS by product/servicePeopleInputs for personnel
expenses including benefitsISInputs for other income statement
items (includes summary IS)BSInputs for other balance sheet
items (includes summary BS)CFInputs for other cash flow items
(includes summary CF)BreakInputs for breakeven
analysisPVInputs for present value analysisReport
WorksheetsReportsIntroductionYR-CFAnnual Cash FlowYR-
ISAnnual Income StatementYR-BSAnnual Balance SheetYR-
BreakAnnual Breakeven AnalysisYR-RatiosAnnual Ratio
AnalysisYR-PVAnnual Present Value AnalysisMth-CFMonthly
Cash Flow for Year 1Mth-ISMonthly Income Statement for Year
1Mth-BSMonthly Balance Sheet for Year 1AssumptionsBlank
Page to enter AssumptionsClick the blue "Return to TOC" box
to return here anywhere in the workbookVersion 1.03
7/14/03All rights reserved. Copyright Andy T. Dungan, 2002.
No copying, re-publication, or use of this spreadsheet, other
than as authorized by Andy T. Dungan or the Southern Oregon
University School of Business for its BA 499 students, may be
made unless otherwise specifically authorized in writing by
Andy T. Dungan or the Dean of the School of Business.
RETURN TO TOC
Intro
Sales
People
IS
BS
CF

7. Break
PV
YR-CF
YR-IS
YR-BS
YR-Break
YR-Ratios
YR-PV
Mth-CF
Mth-IS
Mth-BS
Assumptions
Reports
IntroIntroduction
Welcome to the BA499 integrated model for projecting financial
statements for your business plan.
This brief introduction has been divided into several pieces.
They are:
- A discussion of intimidation
- Organization of the workbook
- Where the assumptions are found
- What the background colors mean
- A note on startup costs
- First things to enter
- Tips and tricks
- A final word from the author
If any of us as professors can help please ask. If you have
specific technical questions your professor can not answer
please contact the author of this workbook, Dr. Andy
DunganAre You Intimidated by Financial Statements?
Many of you may be intimidated by the financial statements.
We have two pieces of advice: 1. You can do this! and 2.

8. DON'T WAIT TO GET STARTED. The sooner you start, the
sooner you will finish. A significant amount of time is required
to do a reasonable job on your financials. If you procrastinate,
you will have a difficult time finishing the financials in time.
The process of projecting financial statements is an iterative
one. What that means is that it will take multiple attempts to
figure out your financials; you will try one thing and then
another. In the beginning you may be confused and not
understand how changing one variable changes another. Keep
working. Eventually you will see how your inputs relate to the
financial statements and you will have a much better
understanding of how the different statements relate to each
other.Organization of the Workbook (file)
If you look at the bottom of this page you will see a number of
tabs. The first eight tabs are where you enter data for your plan.
The tabs listed after the REPORT tab are your financial
statements. These tabs make it easy for you to switch back and
forth between worksheets to see the results in your financial
statements.Where the Assumptions are found
This section shows you by input worksheet what assumptions or
inputs are found on that worksheet.Worksheet
NameInputs/AssumptionsIntroCompany name and start
dateSalesUnit sales, revenues and costs
Product names and other cost of salesPeoplePersonnel costs
charged to Cost of Sales
Personnel costs charged to Operating Expenses
Assumptions for payroll taxes and benefitsIS (Income
Statement)Interest expense assumptions
Income tax assumptions
Operating expense inputs (except personnel and depreciation)
Other expenses or incomeBS (Balance Sheet)Assumptions about
depreciation
Accumptions about accounts receivable
Assumptions about inventory

9. Assumptions about accounts payable
Beginning balances for companies that are not a startupCF
(Cash Flow)Cash flows for purchase of assets (property and
equipment, other current assets, and other assets)
Cash flows for short and long-term borrowings
Cash flows for sale of stock (equity) and payment of dividends
Cash flows for other current liabilities and other liabilitiesBreak
(Breakeven)Allocation of costs between variable and fixed
Volumes for sales if unit breakeven calculations are desiredPV
(Present Value)Discount rate assumptions
Cash flow assumptions Year 4-10 for Business
Cash flow assumptions for Primary Investor AnalysisWhat the
Background Colors Mean
The backgrounds of cells are important primarily if they are
yellow. For the input worksheets yellow denotes places you
must enter your assumptions. You do not have to enter
something in every yello box, but be sure you know why you
are or are not using it.Most important color--This is where you
enter your assumptionsUsed for column headings--shows the
period (month or year)A Note on Startup CostsThis projection
model has not been designed with a separate section for startup
costs. Your projection should begin in the period you begin
spending money, not the period you begin generating revenues.
Thus, you will record expenses (investments, financing, etc.)
before you have revenues. An alternative to this method would
be to acculmulate all your startup costs and enter them into the
first period of your projection.If your business is not a startup
business then you will need to enter your beginning balance
sheet data. This information is entered on the BS input tab.The
First Things to EnterYour Company Name HereYour Company
NameEnter the year and month your projections
beginYear2010Month1This shows you the dates each of your
periods end. These green heading will show up as headings on
the input worksheets. Please understand that this model has
been designed to project one year by month with two following

10. years being projected by year. There is no option to change this.
You could do this on your own, but it would be a difficult task
unless you are well versed in the use of Excel.Months in your
ProjectionMonth123456789101112Jan-10Feb-10Mar-10Apr-
10May-10Jun-10Jul-10Aug-10Sep-10Oct-10Nov-10Dec-10Years
in your ProjectionYear0123Dec-09Dec-10Dec-11Dec-12Tips
and Tricks
1. This entire spreadsheet has been protected. The only cells in
which you can enter data are those with the yellow background.
You can remove the protection and start making changes, but if
you get yourself in trouble you are on your own.
2. Each of the input worksheets has had its panes frozen. This
means that the column and row headings always show when
working with the worksheet. The screen can not be split when
the pane is frozen. To unfreeze a worksheet select Window--
Unfreeze Panes.
3. The wider you can make your Excel window and the higher
you can set the resolution on your computer screen the easier it
will be to work with this spreadsheet. The input worksheets all
contain 3 columns for headings 12 columns for the months, 1
column to total the first year and 2 more columns for the last
two years. The more of this information you can see at the same
time, the easier it will be to understand the worksheet. An
alternative to this would be to reduce the view size on the
standard toolbar (to say 75%). This would allow you to see
more of the spreadsheet at one time.4. The Go To command
(Edit GoTo or ctrl G) can be very helpful. If you do not
understand where a number came from you can highlight part of
a formula for a cell and then Go To it.
Tricks for forecasting--possibly I could talk about Power
variable techniques see p. 10.13 BP ProA Final Word from the
Author

11. Please remember that while the "numbers" are important that
ultimately business is about PEOPLE and RELATIONSHIPS.
Said differently, the numbers must work, but businesses are run
by PEOPLE that have PEOPLE for customers and operate in a
community of PEOPLE.
Best wishes in your business endeavors, Andy Dungan, Ph.D.All
rights reserved. Copyright Andy T. Dungan, 2002. No copying,
re-publication, or use of this spreadsheet, other than as
authorized by Andy T. Dungan or the Southern Oregon
University School of Business for its BA 499 students, may be
made unless otherwise specifically authorized in writing by
Andy T. Dungan or the Dean of the School of Business.
RETURN TO TOC
RETURN TO TOC
Inputs worksheets where your assumptions are entered
Reports worksheets for printable reports for your business plan
Intro
Sales
People
IS (Income Statement)
BS (Balance Sheet)
CF (Cash Flow)
Break (Breakeven)
PV (Present Value)
SalesSummary of Sales & CostsMonth EndedYear EndedJan-
10Feb-10Mar-10Apr-10May-10Jun-10Jul-10Aug-10Sep-10Oct-
10Nov-10Dec-10Dec-10Dec-11Dec-12Introduction to
Worksheet
This section allows you to project your sales and cost of sales.
It has been designed to work with unit sales and unit costs. If
you can not forecast your sales this way read the next
paragraph. 1. Labor Costs and 2. Other Costs of Sales are not
projected by product. They are forecasted as a total amount for

12. all products. Most people will not use these two categories.
Labor Costs come from the People worksheet and Other Costs
of Sales are entered on the Summary of Sales and Costs below.
If you want to project specific amounts for each period without
using the unit sales enter "1" as the unit sales and then enter the
total sales amount as the unit price. You should then compute
your Direct COS as a % of sales by entering a formula into the
Unit Cost of Sales (instead of an amount per unit of sales). If
you do not wish to use COS just leave the amounts blank.
For this worksheet you will enter the following:
- Product/service names for up to 9 product/services--use
only as many as you need
- Other Cost of Sales--an aggregate amount entered for all
products/services--most will not use
- Unit sales, revenues, and costs
In the summary below you will find your sales and costs
summarized by product/service and period.Product Names
You may forecast up to 9 different products/services. Enter the
names of the products/services belowProduct/Service
1Product/Service 2Product/Service 3Product/Service
4Product/Service 5Product/Service 6Product/Service
7Product/Service 8Product/Service 9Summary of Sales &
CostsMonth EndedYear EndedYour Company NameJan-10Feb-
10Mar-10Apr-10May-10Jun-10Jul-10Aug-10Sep-10Oct-10Nov-
10Dec-10Dec-10Dec-11Dec-12Sales$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -Less Cost of Sales:Direct
COS$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-Labor (including benefits)$ -$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -$ -$ -$ -$ -Other Cost of Sales$ -Total Cost of
Sales$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-Gross Profit$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -Summary of Sales by Product/ServiceGross Profit by

13. Product/ServiceProduct/Service 1$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -Product/Service 2$ -$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Product/Service 3$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
Product/Service 4$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -Product/Service 5$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -Product/Service 6$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Product/Service 7$ -
$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
Product/Service 8$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -Product/Service 9$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -LESS:Labor (including benefits)$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Other
Cost of Sales$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -Gross Profit$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -Unit SalesProduct/Service 10Product/Service
20Product/Service 30Product/Service 40Product/Service
50Product/Service 60Product/Service 70Product/Service
80Product/Service 90Unit Sales PriceProduct/Service 1$ -
0Product/Service 2$ - 0Product/Service 3$ -
0Product/Service 4$ - 0Product/Service 5$ -
0Product/Service 6$ - 0Product/Service 7$ -
0Product/Service 8$ - 0Product/Service 9$ - 0Unit Cost of
SalesProduct/Service 1$ - 0Product/Service 2$ -
0Product/Service 3$ - 0Product/Service 4$ -
0Product/Service 5$ - 0Product/Service 6$ -
0Product/Service 7$ - 0Product/Service 8$ -
0Product/Service 9$ - 0Sales by
Product/ServiceProduct/Service 1$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -Product/Service 2$ -$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Product/Service 3$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
Product/Service 4$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -Product/Service 5$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -Product/Service 6$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Product/Service 7$ -

14. $ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
Product/Service 8$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -Product/Service 9$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -Total Sales$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -Direct COS by
Product/ServiceProduct/Service 1$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -Product/Service 2$ -$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Product/Service 3$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
Product/Service 4$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -Product/Service 5$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -Product/Service 6$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Product/Service 7$ -
$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
Product/Service 8$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -Product/Service 9$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -Total COS$ -$ -$ -$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -$ -$ -All rights reserved.
Copyright Andy T. Dungan, 2002. No copying, re-publication,
or use of this spreadsheet, other than as authorized by Andy T.
Dungan or the Southern Oregon University School of Business
for its BA 499 students, may be made unless otherwise
specifically authorized in writing by Andy T. Dungan or the
Dean of the School of Business.
RETURN TO TOC
RETURN TO TOC
PeoplePersonnel CostsMonth EndedYear EndedJan-10Feb-
10Mar-10Apr-10May-10Jun-10Jul-10Aug-10Sep-10Oct-10Nov-
10Dec-10Dec-10Dec-11Dec-12Introduction to Worksheet
There are two categories of Personnel Expense that can be
projected. The first category is for personnel costs that will be
shown as part of Cost of Sales. They will be reported as
aggregate numbers, not by product. See the income statement to
see where these costs print out. Only use this category if you
can determine which people are directly involved in making

15. your product or offering your service. If people have multiple
duties then it is often easier to project their personnel costs as
part of the second category, Operating Expenses.
For this worksheet you will enter the following:
- Assumptions about Payroll Taxes and Benefits
- Salaries for people to be included in Cost of Sales
- Salaries for people to be included in Operating Expenses
In the summary below you will find your personnel expenses
summarized into the two categories by period.Assumptions
about Payroll Taxes and Benefits
In this section you will enter your assumptions about Payroll
taxes and other benefits costs. These will all be entered as a %
of Payroll. While this method is not always perfect it will allow
a reasonable estimate to be determined. It is not uncommon for
taxes and benefits to cost 30% to 40% of salaries or more.
Percents will be projected for each year. For the first year the
same percents will be used for each month.Year 1Year 2Year
3Year EndingTaxes and Benefits as a % of SalariesDec-10Dec-
11Dec-12Social Security (for employer
share)6.20%6.20%6.20%Medicare (for employer
share)1.45%1.45%1.45%Federal
Unemployment0.80%0.80%0.80%State
Unemployment3.00%3.00%3.00%Workmen's
compensation0.10%0.10%0.10%Other taxes (local, etc.)Health
insurance15.00%15.00%15.00%(typically $300-
$700/month/person)Retirement contributionOther benefits(gym,
tuition, etc.)Total Benefits as % of
Salaries26.55%26.55%26.55%Personnel CostsMonth EndedYear
EndedYour Company NameJan-10Feb-10Mar-10Apr-10May-
10Jun-10Jul-10Aug-10Sep-10Oct-10Nov-10Dec-10Dec-10Dec-
11Dec-12Personnel Costs To Be Included in Cost of
SalesSalariesProd Person 1$ -Prod Person 2$ -Prod Person 3$
-Prod Person 4$ -Prod Person 5$ -Prod Person 6$ -Prod

16. Person 7$ -Prod Person 8$ -Prod Person 9$ -Total Salaries$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
Personnel Benefits$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -$ -$ -Total Personnel to COS$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -Personnel Costs To Be
Included in Operating ExpensesSalariesPerson 1$ -Person 2$
-Person 3$ -Person 4$ -Person 5$ -Person 6$ -Person 7$ -
Person 8$ -Person 9$ -Total Salaries$ -$ -$ -$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -$ -$ -Personnel Benefits$ -$ -
$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Total
Personnel to Oper Exp$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -$ -$ -$ -All rights reserved. Copyright Andy T.
Dungan, 2002. No copying, re-publication, or use of this
spreadsheet, other than as authorized by Andy T. Dungan or the
Southern Oregon University School of Business for its BA 499
students, may be made unless otherwise specifically authorized
in writing by Andy T. Dungan or the Dean of the School of
Business.
RETURN TO TOC
RETURN TO TOC
ISIncome Statement DetailMonth EndedYear EndedJan-10Feb-
10Mar-10Apr-10May-10Jun-10Jul-10Aug-10Sep-10Oct-10Nov-
10Dec-10Dec-10Dec-11Dec-12Introduction to Worksheet
This section allows you to enter your Operating Expenses
except for Personnel and Depreciation expenses. You will also
enter your assumptions for computation of interest expense and
income taxes. Additionally, you can enter other expenses (or
income) that are not included in Operating Expenses. Most
people will not use this category.
This worksheet also provides a summary of your entire income
statement by month for the first year and by year for the next
two years.
For this worksheet you will enter the following:

17. - Assumptions about interest expense
- Assumptions about income taxes
- Operating expense category names
- Operating expenses for the first year by month and the
following two years
- Other expenses (or income)
The income statement is found located after the
assumptions.Assumptions for Interest Expense
Interest expense is computed by taking the average loan balance
times the interest rate. Monthyly amounts are computed by
dividing by 12. Interest expense for short and long-term loans
are computed separately and then added together.Year
EndedDec-10Dec-11Dec-12Short-term
rate4.50%4.75%5.00%Long-term rate6.00%6.50%7.00%Interest
Expense CalculatorShort-term Loan Ending Balance$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -+prior month
Balance$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-divide by 2 = average balance$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -Interst Rate from
above4.50%4.50%4.50%4.50%4.50%4.50%4.50%4.50%4.50%4.
50%4.50%4.50%4.75%5.00%times rate$ -$ -$ -$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -$ -/ 12 for monthly interest
expense$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
Long-term Loan Ending Balance$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -+prior month Balance$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -divide by 2 =
average balance$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -Interst Rate from
above6.00%6.00%6.00%6.00%6.00%6.00%6.00%6.00%6.00%6.
00%6.00%6.00%6.50%7.00%times rate$ -$ -$ -$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -$ -/ 12 for monthly interest
expense$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -

18. Total Interest Expense$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -$ -$ -$ -Assumptions for Income Taxes (inlcudes
Federal, State, Local or other)
For this projection you must enter tax rates by range. Absolute
accuracy is not required but the estimate should be reasonable
and include all types of income taxes (federal, state, local). At
the far right is a table that shows the detail of tax calculation by
range.Year EndedDec-10Dec-11Dec-12Enter Tax Rates by
RangeTax Computer>>>>>>>>>>>>>>>>>>>>>NIBT$ -$ -$
-RangeRateBy range chart shows tax computation>>>>>$ -$
10,00015%$ -$ -$ -$ 10,001$ 50,00025%$ -$ -$ -$
50,001$ 100,00035%$ -$ -$ -$ 100,001or greater45%$ -
$ -$ -$ -$ -$ -Income Statement DetailMonth EndedYear
EndedYour Company NameJan-10Feb-10Mar-10Apr-10May-
10Jun-10Jul-10Aug-10Sep-10Oct-10Nov-10Dec-10Dec-10Dec-
11Dec-12Sales$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -$ -Less Cost of Sales:$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -Material$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -Labor (including benefits)$ -
$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Other
Cost of Sales$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -Total Cost of Sales$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -Gross Profit$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -Operating ExpensesPersonnel
& Benefits$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -Depreciation$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -Oper exp 1$ -Oper exp 2$ -Oper exp 3$ -
Oper exp 4$ -Oper exp 5$ -Oper exp 6$ -Oper exp 7$ -
Oper exp 8$ -Oper exp 9$ -Oper exp 10$ -Oper exp 11$ -
Oper exp 12$ -Oper exp 13$ -Oper exp 14$ -Oper exp 15$
-Other Operating Expenses$ -Total Operating Expenses$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Earnings
Before Interest and Taxes$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -Interest Expense (calulation above)$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Other Exp

19. (Inc) (Normally do not use)$ -Earnings Before Taxes$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Income
Taxes$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
$ -Net Income$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -All rights reserved. Copyright Andy T. Dungan,
2002. No copying, re-publication, or use of this spreadsheet,
other than as authorized by Andy T. Dungan or the Southern
Oregon University School of Business for its BA 499 students,
may be made unless otherwise specifically authorized in writing
by Andy T. Dungan or the Dean of the School of Business.
RETURN TO TOC
RETURN TO TOC
BSBalance Sheet DetailYear EndedMonth EndedYear
EndedDec-09Jan-10Feb-10Mar-10Apr-10May-10Jun-10Jul-
10Aug-10Sep-10Oct-10Nov-10Dec-10Dec-10Dec-11Dec-
12Introduction to Worksheet
This section allows you to enter your assumptions about
depreciation, accounts receivable, inventory and accounts
payable. Additionally, if you are not a startup company you can
enter your beginning balances. For most individuals your
beginning balances will be zeros because you are a startup
company. Costs for starting up the business should be included
in the first month of projections not the beginning balances.
There are different ways of looking at how startup costs should
be included in a projection, but this is the method used in this
model.
This worksheet also provides a summary of your entire balance
sheet by month for the first year and by year for the next two
years.
For this worksheet you will enter the following:
- Assumptions about depreciation
- Assumptions about accounts receivable
- Assumptions about inventory

20. - Assumptions about accounts payable
- Beginning balances if you are not a startup company
The balance sheet is found located after the
assumptions.Assumptions about Depreciation and depreciation
calculator
This section is where you enter assumptions about the life of
different categories of assets. These different lives will be used
for depreciation purposes. All depreciation is computed straight
line with a salvage value of zero. Some default numbers have
been entered, but you should change them to fit your
assumptions. You may also change the names of the
categories.Type of AssetAverage
LifeLandn/aBuildings30Building/Leasehold
Improvements10Machinery & Equipment5Automobiles3Office
Equipment/Other3Depreciation
CalculatorBuildings000000000000000Building/Leasehold
Improvements000000000000000Machinery &
Equipment000000000000000Automobiles000000000000000Offi
ce
Equipment/Other000000000000000000000000000000Assumptio
ns about Accounts Receivable
Two methods are provided to project accounts receivable. The
first method is based on the percent of sales that are on credit
and how many days, on average, you have outstanding in
accounts receivable. This will be the method used by most. The
second method allows you to forecast a specific increase or
decrease for account receivable by period. The first decision
you must make is the method you will use.Method to be used--
check one1.0Method 1--sales on credit/collection periodMonth
EndedYear EndedYOU ARE USING THIS METHODJan-10Feb-
10Mar-10Apr-10May-10Jun-10Jul-10Aug-10Sep-10Oct-10Nov-
10Dec-10Dec-11Dec-12% of Sales on CreditAverage days A/R
outstandingMethod 2--specific changesMonth EndedYear

21. Ended0Jan-10Feb-10Mar-10Apr-10May-10Jun-10Jul-10Aug-
10Sep-10Oct-10Nov-10Dec-10Dec-11Dec-12Increase
(Decrease) per periodAccounts Receivable CalculatorAccounts
Receivable Balance$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -Assumptions about Inventory
Two methods are provided to project inventory. The first
method is based on the percent of sales that should be in
inventory. This is a realatively simplistic method but should
work for a broad range of situations. If, for example, your cost
of sales was 40% and you feel that you should have 30 days of
product (or materials to make the product in stock) then you
would enter 40% for % of sales in inventory. If you felt 60 days
was required you would enter 80% (2x40%). This will be the
method used by most. The second method allows you to forecast
a specific increase or decrease for inventory by period. The first
decision you must make is the method you will use.Method to
be used--check one1.0Method 1--inventory as % of salesMonth
EndedYear EndedYOU ARE USING THIS METHODJan-10Feb-
10Mar-10Apr-10May-10Jun-10Jul-10Aug-10Sep-10Oct-10Nov-
10Dec-10Dec-11Dec-12% of Sales to be in inventoryMethod 2--
specific changesMonth EndedYear Ended0Jan-10Feb-10Mar-
10Apr-10May-10Jun-10Jul-10Aug-10Sep-10Oct-10Nov-10Dec-
10Dec-11Dec-12Increase (Decrease) per periodInventory
CalculatorInventory Balance$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -Assumptions about Accounts Payable
Two methods are provided to project accounts payble. The
methods are quite similar to the methods used for accounts
receivable. The first method is based on the percent of
expenditures (includes cost of sales and operating expenses
except depreciation) that are purchased on credit and how many
days on average you take to pay your bills. In the beginning few
vendors will extend you credit at all. Once you are established
the possibility of vendors giving you credit is much greater.
This will be the method used by most. The second method

22. allows you to forecast a specific increase or decrease for
accounts payable by period. The first decision you must make is
the method you will use.Method to be used--check
one1.0Method 1--sales on credit/collection periodMonth
EndedYear EndedYOU ARE USING THIS METHODJan-10Feb-
10Mar-10Apr-10May-10Jun-10Jul-10Aug-10Sep-10Oct-10Nov-
10Dec-10Dec-11Dec-12% of Expenditures Made on
CreditAverage Days to Pay BillsMethod 2--specific
changesMonth EndedYear Ended0Jan-10Feb-10Mar-10Apr-
10May-10Jun-10Jul-10Aug-10Sep-10Oct-10Nov-10Dec-10Dec-
11Dec-12Increase (Decrease) per periodAccounts Payable
CalculatorAccounts Payable Balance$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -about BEGINNING BALANCES
You only enter amounts in Beginning Balances if your company
is NOT a startup. If this is a startup company beginning
balances will all be zero and startup costs should be entered in
the first period of the projection (or when they
occur).BeginningBalancessee note aboveBalance Sheet
DetailYear EndedMonth EndedYear EndedYour Company
NameDec-09Jan-10Feb-10Mar-10Apr-10May-10Jun-10Jul-
10Aug-10Sep-10Oct-10Nov-10Dec-10Dec-10Dec-11Dec-
12AssetsCash$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -Accounts Receivable$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -Inventory$ -$ -$ -$ -$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -$ -Other Current Assets$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Total Current
Assets$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -Property and EquipmentLand$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -Buildings$ -$ -$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Building/Leasehold
Improvements$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -$ -Machinery & Equipment$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -Automobiles$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Office
Equipment/Other$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

23. -$ -$ -$ -Total Property & Equipment$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -less acculumlated
depreciation$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -Total Fixed Assets$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -Other Assets$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -Total Assets$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Liabilities
and EquityAccounts Payable$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -Short-term Loans Payable$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Other Current
Liabilities$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -Total Current Liabilities$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -Long-term Debt$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Other Liabilities$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Total
Liabilities$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -$ -EquityStock and Paid-in Capital$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Retained Earnings$ -
$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
Current Year Earnings$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -$ -$ -$ -Total Equity$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -Total Liabilities and Equity$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
All rights reserved. Copyright Andy T. Dungan, 2002. No
copying, re-publication, or use of this spreadsheet, other than as
authorized by Andy T. Dungan or the Southern Oregon
University School of Business for its BA 499 students, may be
made unless otherwise specifically authorized in writing by
Andy T. Dungan or the Dean of the School of Business.
RETURN TO TOC
RETURN TO TOC
Method 1--Project sales on credit and average collection period
Method 2--Project specific changes
Method 1--Project inventory as a % of sales
Method 2--Project specific changes
Method 1--Project sales on credit and average collection period

24. Method 2--Project specific changes
CFCash Flow DetailMonth EndedYear EndedJan-10Feb-10Mar-
10Apr-10May-10Jun-10Jul-10Aug-10Sep-10Oct-10Nov-10Dec-
10Dec-10Dec-11Dec-12Introduction to Worksheet
This section allows you to enter certain cash flows for your
company. Some of the cash flows are computed from other
inputs (those that do not have a yellow background in the cash
flow statement below), but you will be entering many important
amounts for your business on this worksheet. Generally, the
amounts you will project here relate to how you will finance
your business (including payback of that financing) and what
assets you will purchase to operate your business. Several
miscellaneous categories are also provided to handle unusual
situations.
This is the most important worksheet in your projection. If you
don't have a positive balance in your cash account (think of it
like your checking account) at the end of the month then you
are essentially bankrupt (or at least in legal trouble). You have
to have a positive cash balance at the end of each period. The
graphic provided immediately below will help you visualize
your situation. Remember the income statment is not the cash
flow. Just because you have a profit does not mean you have
enough money to run your business.
A summary of your statement by month for the first year and by
year for the next two years is provided below.
You will enter your cashflows on this statement in cells with the
yellow background.
For this worksheet you will enter cash flows for a number of
different categories. They are:
- Other current assets (normally not used)
- Other current liabilities (normally not used)

25. - Purchases of property and equipment (in 6 categories)
- Purchaes (or sales) of other assets (normally not used)
- New short-term borrowings
- Repayment of short-term borrowings
- New long-term borrowings
- Repayment of long-term borrowings
- Acquisition (or repayment of other liabilities (normally
not used)
- Sale or issuance of company stock (equity)
- Payment of dividends
The cash flow statement is found immediately below the
graphic.Cash Flow DetailMonth EndedYear EndedYour
Company NameJan-10Feb-10Mar-10Apr-10May-10Jun-10Jul-
10Aug-10Sep-10Oct-10Nov-10Dec-10Dec-10Dec-11Dec-
12Cash Flows from OperationsNet Income$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -Depreciation$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Changes in
Working CapitalAccounts Receivable1$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -Inventories1$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Other Current Assets1
(Minus increases asset)$ -Accounts Payable2$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Other Current
Liabilities2 (Plus increases liability)$ -Net Cash Provide by
Operating Activities$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -Cash Flows from Investing ActivitiesPurchases
(Sales) of Property and EquipmentLand$ -Buildings$ -
Building/Leasehold Improvements$ -Machinery & Equipment$
-Automobiles$ -Office Equipment/Other$ -Total Property and
Equipment$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -Acquisition of Other Assets$ -Net Cash Used in
Investing Activities$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -Cash Flows from Financing ActivitiesShort-
term Borrowings$ -Repayment of Short-term Borrowings$ -
Long-term Borrowings$ -Repayment of Long-term
Borrowings$ -Acquire (repay) Other Liabilities$ -Sale of

26. Stock$ -Payment of Dividends$ -Net Cash Provided by (Used
in) Financing Activities$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -Net Increase (Decrease) in Cash$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Plus
Beginning Cash$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -Ending Cash$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -1An increase in a current asset will
decrease cash (i.e. not receving cash from a sale means you
have less cash)2An increase in a current liability will increase
cash (i.e. not paying a bill means you have more cash)All rights
reserved. Copyright Andy T. Dungan, 2002. No copying, re-
publication, or use of this spreadsheet, other than as authorized
by Andy T. Dungan or the Southern Oregon University School
of Business for its BA 499 students, may be made unless
otherwise specifically authorized in writing by Andy T. Dungan
or the Dean of the School of Business.
CF
Ending Cash
BreakBreakeven AnalysisYear 1Year 1 AllocationYear 2Year 2
AllocationYear 3Year 3 AllocationIntroduction to Worksheet
This section allows you to enter certain assumptions so your
breakeven analysis can be completed. You will be entering, on
an optional basis, the number of units you sell. You will only
enter amounts for units if you want to compute breakeven based
on number of units. Everyone will enter allocations for costs
between variable and fixed costs.
For this worksheet you will enter the following:
- Units sold by year if you wish to computer breakeven
based on units
- Assumptions allocation of costs between variable and
fixed costs
The breakeven analysis is found at the end after the allocation
assumptions.Discussion of Variable and Fixed Costs

27. Variable costs are those costs that are a direct function of the
production (or service) process. For instance, if you were in the
retail business, the cost of buying a product that you sell is a
variable cost. If you were making a product the cost of
materials to make the product would be variable. Variable costs
are those costs directly related to each unit you sell.
Fixed costs, on the other hand, are those costs that do not vary.
For instance, if you decided to rent a building as a store or
manufacturing facility the rent would be payable no matter
whether you sold something or not. These are called fixed costs.
They are fixed no matter how much you sell.
The challenge comes in the form of mixed or step variable
costs. An example of this would be someone you hire to sell
your product or service. In one way they are variable. You
wouldn't need them if you were not selling something. But, you
only need to hire a new sales person when your sales increase
substantially. This would be an example of "step"
variable.Another example might be if an employee had two
jobs. Let us say that half the time an employee made a product
for you and the other half of the time they did the accounting.
The production time would be variable and the accounting time
fixed.
So your challenge for determing the below allocations of
variable and fixed costs is to make a reasonable, not perfect,
allocation of the costs in your projected income statement
between fixed and variable costs. Normally cost of sales are
variable cost and operating costs are fixed, but this is not
always the case. It depends on your business and where you put
certain kinds of expenses in your projected income statement.
Breakeven was discussed in BA213 and BA380 so if you need
go back and look at your textbooks for those classes.

28. Note: the word ERROR prints in the column next to the
allocations until you enter the allocations correctly.Unit Sales
Volume if availableYear 1Year 2Year 3Number of Units Sold
(if available--not required input)Average Sale per unit sold$ -
0$ - 0$ - 0Allocation of Costs to Fixed and Variable
CostsPercent AllocationNI Year EndedNI Year EndedNI Year
EndedMust total 100%Dec-10Year 1 AllocationDec-11Year 2
AllocationDec-12Year 3 AllocationIncome
StatementVariableFixedTotalVariableFixedTotalVariableFixedT
otalVariableFixedSales100%0$ -$ -$ -$ -$ -$ -$ -$ -$
-Less Cost of Sales:$ -$ -$ -Material100%0$ -$ -$ -$ -
$ -$ -$ -$ -$ -Labor (including benefits)100%0$ -$ -$
-$ -$ -$ -$ -$ -$ -Other Cost of Sales100%0$ -$ -$ -
$ -$ -$ -$ -$ -$ -Total Cost of Sales$ -$ -$ -$ -$ -
$ -$ -$ -$ -Gross Profit$ -$ -$ -$ -$ -$ -$ -$ -$
-Operating Expenses$ -$ -$ -Personnel100%0$ -$ -$ -$
-$ -$ -$ -$ -$ -Depreciation100%0$ -$ -$ -$ -$ -$
-$ -$ -$ -Oper exp 1100%0$ -$ -$ -$ -$ -$ -$ -$ -
$ -Oper exp 2100%0$ -$ -$ -$ -$ -$ -$ -$ -$ -Oper
exp 3100%0$ -$ -$ -$ -$ -$ -$ -$ -$ -Oper exp
4100%0$ -$ -$ -$ -$ -$ -$ -$ -$ -Oper exp 5100%0$
-$ -$ -$ -$ -$ -$ -$ -$ -Oper exp 6100%0$ -$ -$ -
$ -$ -$ -$ -$ -$ -Oper exp 7100%0$ -$ -$ -$ -$ -$
-$ -$ -$ -Oper exp 8100%0$ -$ -$ -$ -$ -$ -$ -$ -
$ -Oper exp 9100%0$ -$ -$ -$ -$ -$ -$ -$ -$ -Oper
exp 10100%0$ -$ -$ -$ -$ -$ -$ -$ -$ -Oper exp
11100%0$ -$ -$ -$ -$ -$ -$ -$ -$ -Oper exp
12100%0$ -$ -$ -$ -$ -$ -$ -$ -$ -Oper exp
13100%0$ -$ -$ -$ -$ -$ -$ -$ -$ -Oper exp
14100%0$ -$ -$ -$ -$ -$ -$ -$ -$ -Oper exp
15100%0$ -$ -$ -$ -$ -$ -$ -$ -$ -Other Operating
Expenses100%0$ -$ -$ -$ -$ -$ -$ -$ -$ -Total
Operating Expenses$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -Earnings Before Interest and
Taxes$ -$ -$ -$ -$ -$ -$ -$ -$ -Interest

29. Expense100%0$ -$ -$ -$ -$ -$ -$ -$ -$ -Other Exp
(Inc)100%0$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
Earnings Before Taxes$ -$ -$ -$ -$ -$ -$ -$ -$ -
Income Taxes100%0$ -$ -$ -$ -$ -$ -$ -$ -$ -Net
Income$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
Breakeven AnalysisYear EndedYear EndedYear EndedYour
Company NameDec-10Dec-11Dec-
12SummarySummarySummarySummary of Income Statement By
Cost TypeSales$ -$ -$ -Variable CostsVariable Cost of
Sales$ -$ -$ -Variable Operating Costs$ -$ -$ -Variable
Interest, Taxes and Other$ -$ -$ -Total Variable Costs$ -$
-$ -Contribution to Fixed Costs$ -$ -$ -Fixed CostsFixed
Cost of Sales$ -$ -$ -Fixed Operating Costs$ -$ -$ -
Fixed Interest, Taxes and Other$ -$ -$ -Total Fixed Costs$
-$ -$ -Net Profit (Loss)$ -$ -$ -$ -$ -$ -Variable Cost
per $ of Sales$ -$ -$ -Amount available per $ of Sales to
Pay Fixed Costs$ -$ -$ -Contribution
Margin0.00%0.00%0.00%Breakeven Sales based on EBIT$ -$
-$ -0$ -$ -$ -0000Breakeven Sales Based on All Expenses$
-$ -$ -0$ -$ -$ -0000All rights reserved. Copyright Andy
T. Dungan, 2002. No copying, re-publication, or use of this
spreadsheet, other than as authorized by Andy T. Dungan or the
Southern Oregon University School of Business for its BA 499
students, may be made unless otherwise specifically authorized
in writing by Andy T. Dungan or the Dean of the School of
Business.
Balances below zero are not ok!
RETURN TO TOC
RETURN TO TOC
RETURN TO TOC
RETURN TO TOC
PVIntroduction to Worksheet
This section allows you to enter your assumptions about your
cash flows so that a basic present value analysis may be

30. completed. Two analyses are used. The first computes Net
Present Value (NPV) and Internal Rate of Return (IRR) from the
perspective of the business. The second computes the same
analysis from the perspective of the primary investor.
For this worksheet you will enter the following:
- Assumptions about discount rates
- Assumptions about cash flows after Year 3 for the
business
- Assumptions about cash flows for the primary
investorAssumptions
To compute present value cash flows must be forecasted for a
longer period than 3 years. For purposes of this analysis it will
be assumed that forecasting cash flows for 10 years is
adequate.For the Business Perspective analysis, cash flows for
the first 3 years are taken from the projected statements. For
years 4 through 10 the student must enter amounts. Interest
expense and dividends are excluded from the cash flows
because appropriate present value analysis excludes these
amounts as they are reflected in the discount rate. Year 0 "Cash
used for Investing Activities" is computed by summing up the
amounts for the first 3 months of the year. This amount is then
subtracted from the year 1 total for "Cash used for Investing
Activities." The investment amount in Year 0 is then used in the
IRR calculations as the initial investment. All cash flows
associated with Equity are excluded. First because from the
business perspective one must assume the business is already
operating, meaning the equity investment has already been
made. Dividends are excluded because, like interest expense,
the discount rate should reflect the cost of doing business.Said
another way, the discount rate should reflect the firm's cost of
capital, which includes both debt and equity.For the Individual
Investor Perspective all cash flows must be entered. In many
respects this analysis could be deemed more appropriate. If you
are a small business owner you are interested in how much you

31. must invest and then how much you can get back. Be sure you
understand how the business will return cash to the primary
investor. This step is often left out. Any cash paid out to the
primary investor should be shown as dividends in the business
projection.
As always, if you have questions contact your professor or Dr.
Dungan.Present Value Analysis from Business
PerspecitiveDiscount Rate Used for NPV
Analysis7%Year012345678910Cash from Operations$ -$ -$
-plus Interest Expense$ -$ -$ -Cash from Operations for
NPV$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Cash used for
Investing Activities$ -$ -$ -$ -Cash from Financing
Activities(excluding equity transactions)New Borrowings (ST &
LT)$ -$ -$ -Repayments (ST, LT, Other Liab)$ -$ -$ -
Cash from Financing Activities$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -Cash to Business for NPV Analysis$ -$ -$ -$ -$ -
$ -$ -$ -$ -$ -$ -Present Value of Cash Flow$ -
$0$0$0$0$0$0$0$0$0$0Net Present Value of Above$0by Excel
calculation$0IRR (Internal Rate of Return)0%Present Value
Analysis from Primary Investor PerspecitiveDiscount Rate Used
for NPV Analysis7%Year012345678910Investment by Primary
InvestorAdditional Investment by Primary InvestorCash
Received by Primary InvestorNet Cash To Primary Investor$ -
$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Present Value of Cash
Flow$ -$0$0$0$0$0$0$0$0$0$0Net Present Value of
Above$0by Excel calculation$0IRR (Internal Rate of
Return)0%All rights reserved. Copyright Andy T. Dungan,
2002. No copying, re-publication, or use of this spreadsheet,
other than as authorized by Andy T. Dungan or the Southern
Oregon University School of Business for its BA 499 students,
may be made unless otherwise specifically authorized in writing
by Andy T. Dungan or the Dean of the School of Business.
RETURN TO TOC
RETURN TO TOC
REPORTSIntroduction to Reports Section

32. The tabs listed after this tab are only for the printable versions
of your financial statements. No calculations (other than
subtotals and ratio computation) are performed.All rights
reserved. Copyright Andy T. Dungan, 2002. No copying, re-
publication, or use of this spreadsheet, other than as authorized
by Andy T. Dungan or the Southern Oregon University School
of Business for its BA 499 students, may be made unless
otherwise specifically authorized in writing by Andy T. Dungan
or the Dean of the School of Business.
Inputs worksheets--all calculations are performed on these
sheets
Reports worksheets--used only to create printable versions of
your financial statements for use in your Business Plan
RETURN TO TOC
YR-CFYour Company NamePro FormaStatement of Cash
Flowsfor the 12 Month Period EndingDec-10Dec-11Dec-12Cash
Flows from OperationsNet Income$ -$ -$ -Depreciation$ -
$ -$ -Changes in Working CapitalAccounts Receivable1$ -$
-$ -Inventories1$ -$ -$ -Other Current Assets1$ -$ -$ -
Accounts Payable2$ -$ -$ -Other Current Liabilities2$ -$
-$ -Net Cash Provide by Operating Activities$ -$ -$ -Cash
Flows from Investing ActivitiesPurchases of Property and
EquipmentLand$ -$ -$ -Buildings$ -$ -$ -
Building/Leasehold Improvements$ -$ -$ -Machinery &
Equipment$ -$ -$ -Automobiles$ -$ -$ -Office
Equipment/Other$ -$ -$ -Total Property and Equipment$ -
$ -$ -Acquisition of Other Assets$ -$ -$ -Net Cash Used
in Investing Activities$ -$ -$ -Cash Flows from Financing
ActivitiesShort-term Borrowings$ -$ -$ -Repayment of
Short-term Borrowings$ -$ -$ -Long-term Borrowings$ -$
-$ -Repayment of Long-term Borrowings$ -$ -$ -Acquire
(Repay) Other Liabilities$ -$ -$ -Sale of Stock$ -$ -$ -
Payment of Dividends$ -$ -$ -Net Cash Provided by (Used
in) Financing Activities$ -$ -$ -Net Increase (Decrease) in
Cash$ -$ -$ -Plus Beginning Cash$ -$ -$ -Ending Cash$

33. -$ -$ -0000001An increase in a current asset will decrease
cash (i.e. not receving cash from a sale means you have less
cash)2An increase in a current liability will increase cash (i.e.
not paying a bill means you have more cash)
YR-ISYour Company NamePro FormaIncome Statementfor the
12 Month Period EndingDec-10Dec-11Dec-12Sales$ -0.0%$ -
0.0%$ -0.0%Less Cost of Sales:Material$ -0.0%$ -0.0%$ -
0.0%Labor (including benefits)$ -0.0%$ -0.0%$ -0.0%Other
Cost of Sales$ -0.0%$ -0.0%$ -0.0%Total Cost of Sales$ -
0.0%$ -0.0%$ -0.0%Gross Profit$ -0.0%$ -0.0%$ -
0.0%Operating ExpensesPersonnel$ -0.0%$ -0.0%$ -
0.0%Depreciation$ -0.0%$ -0.0%$ -0.0%Oper exp 1$ -
0.0%$ -0.0%$ -0.0%Oper exp 2$ -0.0%$ -0.0%$ -
0.0%Oper exp 3$ -0.0%$ -0.0%$ -0.0%Oper exp 4$ -
0.0%$ -0.0%$ -0.0%Oper exp 5$ -0.0%$ -0.0%$ -
0.0%Oper exp 6$ -0.0%$ -0.0%$ -0.0%Oper exp 7$ -
0.0%$ -0.0%$ -0.0%Oper exp 8$ -0.0%$ -0.0%$ -
0.0%Oper exp 9$ -0.0%$ -0.0%$ -0.0%Oper exp 10$ -
0.0%$ -0.0%$ -0.0%Oper exp 11$ -0.0%$ -0.0%$ -
0.0%Oper exp 12$ -0.0%$ -0.0%$ -0.0%Oper exp 13$ -
0.0%$ -0.0%$ -0.0%Oper exp 14$ -0.0%$ -0.0%$ -
0.0%Oper exp 15$ -0.0%$ -0.0%$ -0.0%Other Operating
Expenses$ -0.0%$ -0.0%$ -0.0%Total Operating Expenses$
-0.0%$ -0.0%$ -0.0%Earnings Before Interest and Taxes$ -
0.0%$ -0.0%$ -0.0%Interest Expense$ -0.0%$ -0.0%$ -
0.0%Other Expense (Income)$ -0.0%$ -0.0%$ -
0.0%Earnings Before Taxes$ -0.0%$ -0.0%$ -0.0%Income
Taxes$ -0.0%$ -0.0%$ -0.0%Net Income$ -0.0%$ -0.0%$
-0.0%000000Return on Sales0.00%0.00%0.00%Return on
Assets0.00%0.00%0.00%Return on Equity0.00%0.00%0.00%
YR-BSYour Company NamePro FormaBalance Sheetfor the
Period EndingDec-09Dec-10Dec-11Dec-12AssetsCash$ -$ -$
-$ -Accounts Receivable$ -$ -$ -$ -Inventory$ -$ -$ -
$ -Other Current Assets$ -$ -$ -$ -Total Current Assets$
-$ -$ -$ -Property and EquipmentLand$ -$ -$ -$ -
Buildings$ -$ -$ -$ -Building/Leasehold Improvements$ -

34. $ -$ -$ -Machinery & Equipment$ -$ -$ -$ -
Automobiles$ -$ -$ -$ -Office Equipment/Other$ -$ -$
-$ -Total Property & Equipment$ -$ -$ -$ -less
acculumlated depreciation$ -$ -$ -$ -Total Fixed Assets$
-$ -$ -$ -Other Assets$ -$ -$ -$ -Total Assets$ -$ -$
-$ -000000000000Liabilities and EquityAccounts Payable$ -$
-$ -$ -Short-term Loans Payable$ -$ -$ -$ -Other
Current Liabilities$ -$ -$ -$ -Total Current Liabilities$ -
$ -$ -$ -Long-term Debt$ -$ -$ -$ -Other Liabilities$
-$ -$ -$ -Total Liabilities$ -$ -$ -$ -EquityStock and
Paid-in Capital$ -$ -$ -$ -Retained Earnings$ -$ -$ -$
-Current Year Earnings$ -$ -$ -$ -Total Equity$ -$ -$
-$ -Total Liabilities and Equity$ -$ -$ -$ -
00000000Debt/Equity0.0%0.0%0.0%0.0%Debt/Total
Assets0.0%0.0%0.0%0.0%
YR-BreakYour Company NamePro FormaBreakeven Analysisfor
the 12 Month Period EndingDec-10Dec-11Dec-12Summary of
Income Statement By Cost TypeSales$ -$ -$ -Variable
CostsVariable Cost of Sales$ -$ -$ -Variable Operating
Costs$ -$ -$ -Variable Interest, Taxes and Other$ -$ -$
-Total Variable Costs$ -$ -$ -Contribution to Fixed Costs$
-$ -$ -Fixed CostsFixed Cost of Sales$ -$ -$ -Fixed
Operating Costs$ -$ -$ -Fixed Interest, Taxes and Other$ -
$ -$ -Total Fixed Costs$ -$ -$ -Net Profit (Loss)$ -$ -
$ -$ -$ -$ -Margins AnalysisVariable Cost per $ of Sales$
-$ -$ -Amount available per $ of Sales to Pay Fixed Costs$
-$ -$ -Contribution Margin0.00%0.00%0.00%Breakeven
AnalysisBreakeven Sales based on EBIT$ -$ -$ -0$ -$ -$
-0000Breakeven Sales Based on All Expenses$ -$ -$ -0$ -$
-$ -0000
YR-RatiosYour Company NamePro FormaRatiosDec-09Dec-
10Dec-11Dec-12Short-term SolvencyCurrent ratio
(CA/CL)0.000.000.000.00Quick ratio (CA-
inventory/CL)0.000.000.000.00Cash ratio
(Cash/CL)0.000.000.000.00Long-term SolvencyTotal Debt ratio
(TL/TA)0.000.000.000.00Debt-Equity ratio

35. (TL/TE)0.000.000.000.00Equity Multiplier
(TA/TE)0.000.000.000.00Times Interest Earned
(EBIT/interest)0.000.000.00Cash Coverage
(EBIT+depreciation/Interest)0.000.000.00Asset
UtilizationInventory Turnover
(CGS/inventory)0.000.000.00Days' Sales in Inventory
(365/Inventory Turnover)000Receivable Turnover
(sales/AR)0.000.000.00Days' Sales in receivables (365/
Receivable Turnover)000Total Asset Turnover
(sales/TA)0.000.000.00Capital Intensity
(TA/sales)0.000.000.00Profitability RatiosProfit Margin
(NI/sales)0.00%0.00%0.00%ROA
(NI/TA)0.00%0.00%0.00%ROE
(NI/TE)0.00%0.00%0.00%Dupont IdentityROE=(Profit
Margin)(TA Turnover)(Equity
Mulitpler)0.00%0.00%0.00%Market Value RatiosNot computed
since not publicly tradedEPS (NI/# shares)PE ratio (price per
share/EPS)Market to Book (market value/book value)
YR-PVYour Company NamePro FormaPresent Value
AnalysisDec-09Dec-10Dec-11Dec-12Dec-13Dec-14Dec-15Dec-
16Dec-17Dec-18Dec-19Present Value Analysis from Business
PerspecitiveCash from Operations$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -plus Interest Expense$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -Cash from Operations for NPV$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -Cash used for Investing Activities$ -$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -Cash from Financing ActivitiesNew
Borrowings (ST & LT)$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
Repayments (ST, LT, Other Liab)$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -Cash from Financing Activities$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -Cash to Business for NPV Analysis$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -Present Value of Cash Flow$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Net Present Value of
Above$0Discount Rate Used for NPV Analysis7.00%IRR
(Internal Rate of Return)0.00%Present Value Analysis from
Primary Investor PerspecitiveInvestment by Primary Investor$
-Additional Investment by Primary Investor$ -$ -$ -$ -$ -

36. $ -$ -$ -$ -$ -Cash Received by Primary Investor$ -$ -
$ -$ -$ -$ -$ -$ -$ -$ -Net Cash To Primary Investor$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Present Value of Cash
Flow$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Net Present
Value of Above$0Discount Rate Used for NPV
Analysis7.00%IRR (Internal Rate of Return)0.00%
Mth-CFYour Company NamePro FormaStatement of Cash
FlowsAnnualfor the Month EndingTotalJan-10Feb-10Mar-
10Apr-10May-10Jun-10Jul-10Aug-10Sep-10Oct-10Nov-10Dec-
10Dec-10Cash Flows from OperationsNet Income$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -Depreciation$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -Changes in Working
CapitalAccounts Receivable1$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -Inventories1$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -Other Current Assets1$ -$ -$ -$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -Accounts Payable2$ -$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -$ -$ -Other Current Liabilities2$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Net Cash
Provide by Operating Activities$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -Cash Flows from Investing
ActivitiesPurchases of Property and EquipmentLand$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Buildings$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -Building/Leasehold
Improvements$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
$ -Machinery & Equipment$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -Automobiles$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -Office Equipment/Other$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -Total Property and Equipment$ -
$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Acquisition of
Other Assets$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-Net Cash Used in Investing Activities$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -Cash Flows from Financing
ActivitiesShort-term Borrowings$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -Repayment of Short-term Borrowings$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Long-term
Borrowings$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

37. -Repayment of Long-term Borrowings$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -Acquire (Repay) Other Liabilities$ -
$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Sale of Stock$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Payment of
Dividends$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
Net Cash Provided by (Used in) Financing Activities$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Net Increase
(Decrease) in Cash$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -Plus Beginning Cash$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -Ending Cash$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -
Mth-ISYour Company NamePro FormaIncome
StatementAnnualfor the Month EndingTotalJan-10Feb-10Mar-
10Apr-10May-10Jun-10Jul-10Aug-10Sep-10Oct-10Nov-10Dec-
10Dec-10Sales$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
$ -0.0%Less Cost of Sales:Material$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -0.0%Labor (including benefits)$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -0.0%Other Cost
of Sales$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
0.0%Total Cost of Sales$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -0.0%Gross Profit$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -0.0%Operating ExpensesPersonnel$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -0.0%Depreciation$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -0.0%Oper exp 1$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -0.0%Oper exp
2$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
0.0%Oper exp 3$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -0.0%Oper exp 4$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -0.0%Oper exp 5$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -0.0%Oper exp 6$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -0.0%Oper exp 7$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -0.0%Oper exp 8$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -0.0%Oper exp 9$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -0.0%Oper exp 10$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -0.0%Oper exp 11$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -0.0%Oper exp 12$ -$ -$

38. -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -0.0%Oper exp 13$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -0.0%Oper exp 14$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -0.0%Oper exp
15$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
0.0%Other Operating Expenses$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -$ -$ -$ -0.0%Total Operating Expenses$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -0.0%Earnings Before
Interest and Taxes$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -0.0%Interest Expense$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -0.0%Other Expense (Income)$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -0.0%Earnings Before Taxes$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -0.0%Income
Taxes$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
0.0%Net Income$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -0.0%
Mth-BSYour Company NamePro FormaBeginningBalance
SheetBalancefor the Month EndingDec-09Jan-10Feb-10Mar-
10Apr-10May-10Jun-10Jul-10Aug-10Sep-10Oct-10Nov-10Dec-
10AssetsCash$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-Accounts Receivable$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -Inventory$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
$ -$ -Other Current Assets$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -Total Current Assets$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -Property and EquipmentLand$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Buildings$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Building/Leasehold
Improvements$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
$ -Machinery & Equipment$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -Automobiles$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -Office Equipment/Other$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -Total Property & Equipment$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -less acculumlated
depreciation$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-Total Fixed Assets$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -Other Assets$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -Total Assets$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

39. -$ -$ -
000000000000000000000000000000000000000Liabilities and
EquityAccounts Payable$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -Short-term Loans Payable$ -$ -$ -$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -Other Current Liabilities$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Total Current
Liabilities$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
Long-term Debt$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -Other Liabilities$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -Total Liabilities$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -EquityStock and Paid-in Capital$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -Retained Earnings$ -$ -$ -
$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -Current Year
Earnings$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -
Total Equity$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-Total Liabilities and Equity$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -
AssumptionsFinancial Assumptions Summary
You should have a page in your business plan where you
explain your important financial statement assumptions.
This page may be better completed in word, but if you wish you
can use this blank page.
At a minimum your Financial Statement Assumption page
should explain your assumptions about unit sales and costs by
product, provide an explanation of your operating expenses, and
explain your sources of cash (your investors).