Financial Plan for a Business Startup

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Financials Any startup business will typically want to have a financial plan. This plan should include a pro forma income statement, balance sheet and cash flow statement. These statements will naturally be built on a set of assumptions. The assumptions are as follows: Revenue. There is a fleet of 4 vehicles and expected revenue is $200 per vehicle per day, seven days per week. Capacity will be at 50% initially, gradually increasing to 90% by the end of the first year. Auto Expenses. This includes fuel, washing, maintenance, registration, airport fees, insurance and other costs of goods sold. Limousine Company Pro Forma Income Statement Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 Revenue 12000 13000 14000 15000 16000 20000 18000 19000 19500 20000 21000 21600 209100 Auto Expenses 2662 2700 2800 2900 2950 3200 3000 3100 3150 3200 3250 3300 36212 Wages 9584 9584 9584 9584 9584 9584 9584 9584 9584 9584 9584 9584 115008 Advertising 161 161 161 161 161 161 161 161 161 161 161 161 1932 Depreciation 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 30000 Interest 3333 3333 3333 3333 3333 3333 3333 3333 3333 3333 3333 3333 39996 Miscellaneous 395 395 395 395 395 395 395 395 395 395 395 395 4740 Income -6635 -5673 -4773 -3873 -2923 827 -973 -73 377 827 1777 2327 -18788 The company would turn a profit in its second year: Pro Forma Income Statement Jan 2014 Revenue 259200 Auto Expenses 39600 Wages 115008 Advertising 1932 Depreciation 30000 Interest 39996
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