5-Year Financial Plan for Eco-friendly Straw Company

This presentation outlines a 5-year financial plan for Eco-friendly Straw Company, including forecasted revenue, cost of goods sold, annual maintenance, repair and overhaul, funding, profit and loss, and balance sheet projection.

Financial plan

5-Year Financial Plan
Company Name Eco-friendly Straw company
Forecasted Revenue
Units sold
annually
Natural Wheat Drinking Straws 270
Biodegradable Bamboo Straw 420
Milk Flavouring Straw 250
Edible Straws 520
Total Of Forecasted Revenue

Cost Of Goods Sold
Expected
gross margin
Annual cost of
goods sold
Natural Wheat Drinking Straws 32% 9,072.00
Biodegradable Bamboo Straw 27% 10,773.00
Milk Flavouring Straw 22% 4,125.00
Edible Straws 30% 8,580.00
Total Cost Of Goods Sold 32,550.00

Annual Maintenance, Repair And Overhaul
Factor (%) on capital equipment 15%
Asset Depreciation
Number of Years 5
Tax
Annual Tax Rate 30%
Inflation
Annual Inflation Rate 2%
Product Price Increase
Annual Price Increase 2%
Funding
Loan Amount 55,000.00
Annual interest rate 5.00%
Term of loan (months) 60
Monthly rate 0.41%
Payment 1,035.12
Total Amount Payable 62,107.31

Profit And Loss (Financial Plan)
Year 1 Year 2 Year 3 Year 4 Year 5
Annual cumulative price (revenue)
increase 0.00% 2.00% 4.00% 6.00% 8.00%
Annual cumulative inflation
(expense) increase 0.00% 2.00% 4.00% 6.00% 8.00%
Income
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue

Natural Wheat Drinking Straws 28,350.00 28,917.00 30,073.68 31,878.10 34,428.35
Biodegradable Bamboo Straw 39,900.00 40,698.00 42,325.92 44,865.48 48,454.71
Milk Flavouring Straw 18,750.00 19,125.00 19,890.00 21,083.40 22,770.07
Edible Straws 28,600.00 29,172.00 30,338.88 32,159.21 34,731.95
Total revenue 1,15,600.00 1,17,912.00 1,22,628.48 1,29,986.19 1,40,385.08
Cost of Sales
Natural Wheat Drinking Straws 9,072.00 9,253.44 9,623.58 10,200.99 11,017.07
Biodegradable Bamboo Straw 10,773.00 10,988.46 11,428.00 12,113.68 13,082.77
Milk Flavouring Straw 4,125.00 4,207.50 4,375.80 4,638.35 5,009.42
Edible Straws 8,580.00 8,751.60 9,101.66 9,647.76 10,419.58
Cost of goods sold 32,550.00 33,201.00 34,529.04 36,600.78 39,528.84

Gross Profit 83,050.00 84,711.00 88,099.44 93,385.41 1,00,856.24
Non-Operation Income
Rental - - - - -
Interest income - - - - -
Loss (gain) on sale of assets - - 1,000.00 - -
Other income (specify) - - - - -
Total Non-Operation Income - - 1,000.00 - -
Total Income 83,050.00 84,711.00 89,099.44 93,385.41 1,00,856.24

Expenses
Operating expenses
Sales and marketing 15,000.00 15,300.00 15,912.00 16,866.72 18,216.06
Depreciation 6,000.00 6,120.00 6,240.00 6,360.00 6,480.00
Insurance 7,500.00 7,650.00 7,956.00 8,433.36 9,108.03
Payroll and Payroll Tax 21,000.00 21,420.00 22,276.80 23,613.41 25,502.48
Property taxes 2,500.00 2,550.00 2,652.00 2,811.12 3,036.01
Maintenance, repair, and overhaul 1,500.00 1,530.00 1,560.00 1,590.00 1,620.00
Utilities 5,000.00 5,100.00 5,304.00 5,622.24 6,072.02
Administrative fees 300.00 306.00 318.24 337.33 364.32
Interest expense on long-term debt 2,467.85 1,970.17 1,447.60 898.91 322.78
Other 1,000.00 1,020.00 1,060.80 1,124.45 1,214.40
Total operating expenses 62,267.85 62,966.17 64,727.44 67,657.54 71,936.10

Total Expenses 62,267.85 62,966.17 64,727.44 67,657.54 71,936.10
Taxes
Income Tax 6,234.65 6,523.45 7,311.60 7,718.36 8,676.04
Other Tax (specify) - - - - -
Total Taxes 6,234.65 6,523.45 7,311.60 7,718.36 8,676.04
Net Profit 14,547.51 15,221.38 17,060.40 18,009.51 20,244.09

Balance Sheet Projection
Assets
Current Assets Initial balance Year 1 Year 2 Year 3 Year 4 Year 5
Cash and short-term investments 50,000.00 1,60,593.89 1,21,483.98 1,57,810.52 2,20,657.47 1,60,282.89
Accounts receivable 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00
Total inventory 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00
Prepaid expenses - - - - - -
Deferred income tax - - - - - -
Other current assets 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Total current assets 83,000.00 1,93,593.89 1,54,483.98 1,90,810.52 2,53,657.47 1,93,282.89

Property and Equipment Initial balance Year 1 Year 2 Year 3 Year 4 Year 5
Buildings 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
Land 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Capital improvements - - - - - -
Machinery and equipment 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Less Accumulated depreciation expense 6,000.00 12,120.00 18,360.00 24,720.00 31,200.00
Total Property and Equipment 40,000.00 34,000.00 27,880.00 21,640.00 15,280.00 8,800.00
Total Assets 1,23,000.00 2,27,593.89 1,82,363.98 2,12,450.52 2,68,937.47 2,02,082.89

Liabilities
Current Liabilities Initial
balance Year 1 Year 2 Year 3 Year 4 Year 5
Accounts payable 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
Accrued expenses - - - - - -
Notes payable/short-term debt - - - - - -
Capital leases - - - - - -
Other current liabilities 100.00 100.00 100.00 100.00 100.00 100.00
Total Current Liabilities 2,100.00 2,100.00 2,100.00 2,100.00 2,100.00 2,100.00

Debt Initial
balance Year 1 Year 2 Year 3 Year 4 Year 5
Long-term debt/loan 55,000.00 45,046.39 34,595.09 23,621.23 12,098.68 -
Other long-term debt 1,00,000.00 2,00,000.00 1,50,000.00 1,75,000.00 2,25,000.00 1,50,000.00
Total Debt 1,57,100.00 2,47,146.39 1,86,695.09 2,00,721.23 2,39,198.68 1,52,100.00
TOTAL LIABILITIES 57,100.00 47,146.39 36,695.09 25,721.23 14,198.68 2,100.00

Equity
Initial
balance Year 1 Year 2 Year 3 Year 4 Year 5
Owner's equity (common) 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00
Paid-in capital 2,50,000.00 2,50,000.00 2,50,000.00 2,50,000.00 2,50,000.00 2,50,000.00
Retained earnings - 14,547.51 29,768.89 46,829.29 64,838.79 85,082.89
Total Equity 3,00,000.00 3,14,547.51 3,29,768.89 3,46,829.29 3,64,838.79 3,85,082.89
Total Liabilities And Equity 3,57,100.00 3,61,693.89 3,66,463.98 3,72,550.52 3,79,037.47 3,87,182.89