Business Planning: Revenue Expectancy, Cost of Goods Sold, and Profit and Loss Assumptions

Running head: BUSINESS PLANNING
BUSINESS PLANNING
Name of Student
Name of University
Author note

2BUSINESS PLANNING
Important Assumptions
1. Year-one revenue expectancy
Item 1 Item 2 Item 3 Item 4
Number of units sold annually 750 0 0 0
Average sales price per unit $47.00 $0.00 $0.00 $0.00
Annual revenue per product $35,250 $0 $0 $0
Total year 1 revenue $35,250
2. Year 1 cost of goods sold
Item 1 Item 2 Item 3 Item 4
Expected gross margin per product 15.00% 0.00% 0.00% 0.00%
Annual cost of goods sold per product $5,288 $0 $0 $0
Total year 1 cost of goods sold $5,288
3. Annual maintenance, repair, and overhaul
Factor (%) on capital equipment 0%
4. Number of years for straight-line depreciation 5
5. Annual tax rate 30%
6. If long-term debt is being used to finance
operations, enter the total loan value.
110,
000
Startup costs
Organic Food
Sources of Capital
Owners' Investment (name & % ownership)
Your name & % ownership $
250,000
Other Investor
-
Other Investor
-
Other Investor
-
Total Investment $
250,000

3BUSINESS PLANNING
Bank Loans
Bank 1 $
10,000
Bank 2
10,000
Bank 3
-
Bank 4
-
Total Bank Loans $
20,000
Other Loans
Source 1 $
65,000
Source 2
25,000
Total Other Loans $
90,000
Summary Statement
Sources of Capital
Owners' and Other Investments $
250,000
Bank Loans
20,000
Other Loans
90,000
Total Source of Funds $
360,000
Startup Expenses
Bldgs / Real Estate $
28,750
Leasehold Improvements
10,000
Capital Equipment
62,500
Location / Admin Expenses
10,000
Opening Inventory
-
Advertising / Promo Expenses
6,000
Other Expenses
50,000
Total Startup Expenses $
887,250
Break even Costs