Financial Planning – Feras Suleiman Flavorful Smoothie Bowls Manufacturing Budget for the First Three Months Project Sales (units) Desired ending inventory Available for sales Less: beginning inventory Total production required Jan. 5000 100 5100 0 5100 Feb. 8000 200 8200 100 8100 Mar. 12000 300 12300 200 12100 Jan. Feb. Mar. 26.2 2 0.9 17 1 2 2.1 1.2 1.5 53.9 Operating Budget for the First Three Months (000s) Expense Salaries Rent Utilities Advertising Selling expenses Insurance Payroll taxes Depreciation Office expenses Total expenses 23.2 2 0.9 13.5 1 2 2.1 1.2 1.5 47.4 23.2 2 0.9 13.5 1 2 2.1 1.2 1.5 47.4 Pro Forma Income Statement, First Year by Month (000s) Jan. Sales Less: Cost of goods sold Gross profit Operating Expenses Salaries* Rent Utilities Advertising Sales expenses Insurance Payroll taxes Depreciation+ Office expenses Total Operating expenses Net profit 20 10 10 Feb. 32 16 16 48 24 24 70 35 35 90 45 45 Jun 100 50 50 23.2 2 0.9 13.5 1 2 2.1 1.2 1.5 47.4 (37.40) 23.2 2 0.9 13.5 1 2 2.1 1.2 1.5 47.4 (31.40) 26.2 2 0.9 17 1 2 2.5 1.2 1.5 54.3 (30.30) 26.2 2 0.8 17 1 2 2.5 1.2 1.7 54.4 (19.40) 26.2 2 0.8 17 1 2 2.5 1.2 1.8 54.5 (9.50) 26.2 2 0.8 17 1 2 2.5 1.2 2 54.7 (4.70) * added shipper in the month 3 *ads in october - participated in trade show +straight line depreciation for 5 years Mar. Apr May Jul 100 50 50 Aug 100 50 50 26.2 2 0.9 14 1 2 2.5 1.2 2 51.8 (1.80) 26.2 2 0.9 14 1 2 2.5 1.2 2 51.8 (1.80) Sep 80 40 40 Oct 80 40 40 Nov 120 60 60 Dec TOTALS 130 970 65 485 65 485 26.2 2 0.9 14 1 2 2.5 1.2 1.8 51.6 (11.60) 26.2 2 0.8 21 1 2 2.5 1.2 1.8 58.5 (18.50) 26.2 2 0.8 17 1 2 2.5 1.2 2.2 54.9 5.10 26.2 308.4 2 24 0.9 10.3 17 192 1 12 2 24 2.5 29.2 1.2 14.4 2.2 22 55 636.3 10.00 (151.30) Pro Forma Income Statement, Second Year by Month (000s) Jan. Feb. Sales 28 44.8 Less: Cost of 12 goods sold 19.2 Gross profit 16 25.6 Operating Expenses Salaries* 23.2 23.2 Rent 2 2 Utilities 0.9 0.9 Advertising 13.5 13.5 Sales expenses 1 1 Insurance 2 2 Payroll taxes 2.1 2.1 Depreciation+1.2 1.2 Office expenses 1.8 1.8 Total Operating 47.7 expenses 47.7 Net profit (31.70) (22.10) Mar. 67.2 28.8 38.4 26.2 2 0.9 17 1 2 2.5 1.2 1.8 54.6 (16.20) Apr Jun 140 60 80 Jul 98 42 56 May 126 54 72 140 60 80 Aug 140 60 80 Sep 112 48 64 Oct 112 48 64 Nov 168 72 96 26.2 2 0.8 17 1 2 2.5 1.2 2.04 54.74 1.26 26.2 2 0.8 17 1 2 2.5 1.2 2.16 54.86 17.14 26.2 2 0.8 17 1 2 2.5 1.2 2.4 55.1 24.90 26.2 2 0.9 14 1 2 2.5 1.2 2.4 52.2 27.80 26.2 2 0.9 14 1 2 2.5 1.2 2.4 52.2 27.80 26.2 2 0.9 14 1 2 2.5 1.2 2.16 51.96 12.04 26.2 2 0.8 21 1 2 2.5 1.2 2.16 58.86 5.14 26.2 2 0.8 17 1 2 2.5 1.2 2.64 55.34 40.66 Dec TOTALS 182 1164 78 582 104 582 26.2 2 0.9 17 1 2 2.5 1.2 2.64 55.44 48.56 308.4 24 10.3 192 12 24 29.2 14.4 26.4 640.7 135.30 Pro Forma Income Statement, Third Year by Month (000s) Jan. Feb. Sales 36.4 49.28 Less: Cost of 13.2 goods sold 21.12 Gross profit 23.2 28.16 Operating Expenses Salaries* 20.88 20.88 Rent 1.8 1.8 Utilities 0.81 0.81 Advertising12.15 12.15 Sales expenses0.9 0.9 Insurance 1.8 1.8 Payroll taxes1.89 1.89 Depreciation+ 1.08 1.08 Office expenses 1.98 1.98 Total Operating43.29 expenses43.29 Net profit (20.09) (15.13) Mar. 73.92 31.68 42.24 Apr 107.8 46.2 61.6 May 138.6 59.4 79.2 Jun 154 66 88 Jul 154 66 88 Aug 154 66 88 Sep 123.2 52.8 70.4 Oct 123.2 52.8 70.4 Nov 184.8 79.2 105.6 Dec TOTALS 200.2 1280.4 85.8 640.2 114.4 640.2 23.58 1.8 0.81 15.3 0.9 1.8 2.25 1.08 1.98 49.5 (7.26) 23.58 1.8 0.72 15.3 0.9 1.8 2.25 1.08 2.244 49.674 11.93 23.58 1.8 0.72 15.3 0.9 1.8 2.25 1.08 2.376 49.806 29.39 23.58 1.8 0.72 15.3 0.9 1.8 2.25 1.08 2.64 50.07 37.93 23.58 1.8 0.81 12.6 0.9 1.8 2.25 1.08 2.64 47.46 40.54 23.58 1.8 0.81 12.6 0.9 1.8 2.25 1.08 2.64 47.46 40.54 23.58 1.8 0.81 12.6 0.9 1.8 2.25 1.08 2.376 47.196 23.20 23.58 1.8 0.72 18.9 0.9 1.8 2.25 1.08 2.376 53.406 16.99 23.58 1.8 0.72 15.3 0.9 1.8 2.25 1.08 2.904 50.334 55.27 23.58 1.8 0.81 15.3 0.9 1.8 2.25 1.08 2.904 50.424 63.98 277.56 21.6 9.27 172.8 10.8 21.6 26.28 12.96 29.04 581.91 277.29