Manufacturing 5-Year Financial Plan: Encore Coffee Roaster Company

This comprehensive financial plan outlines the key components for a coffee roaster startup, Encore Coffee Roaster Company. The plan meticulously details sources of capital, startup expenses, and owner investments, alongside projected revenue from gym training equipment, cardio theatre, nutritionalist services, and health supplements. It includes detailed profit and loss projections over five years, factoring in revenue increases, inflation, and interest rates on debt. The project further encompasses balance sheet projections, cash flow statements, and a loan payment calculator, providing a holistic view of the company's financial health and performance. The plan addresses operating expenses, depreciation, and tax implications, offering insights into the financial sustainability and growth potential of the business. The plan is designed to help you to understand financial planning for a new business and how to project the financial future of the company. This project offers a practical example of financial modeling for manufacturing companies.

Sources of Capital
Owners' Investment (name & % ownership)
Your name & % ownership $ 6,000,000
Other Investor 25,000
Other Investor 2,500
Other Investor -
Total Investment $ 6,027,500
Bank Loans
Bank 1 $ 2,500
Bank 2 2,500
Bank 3 -
Bank 4 -
Total Bank Loans $ 5,000
Other Loans
Source 1 $ 65,000
Source 2 25,000
Total Other Loans $ 90,000
Summary Statement
Sources of Capital
Owners' and Other Investments $ 6,027,500
Bank Loans 5,000
Other Loans 90,000
Total Source of Funds $ 6,122,500
Startup Expenses
Bldgs / Real Estate $ 50,500
Leasehold Improvements 22,000
Capital Equipment 67,000
Location / Admin Expenses 76,000
Opening Inventory -
Advertising / Promo Expenses 6,000
Other Expenses 50,000
Total Startup Expenses $ 12,516,500

Startup Expenses
Buildings / Real Estate
Purchase $ 40,000
Construction 10,000
Remodeling -
Other 500
Total Buildings and R / E $ 50,500
Leasehold Improvements
Online bidding system $ 5,500
Live music shows $ 5,500
Online press kits $ 5,500
Newsletters $ 5,500
Catering and photography $ 22,000
Capital Equipment List
Furniture $ 55,000
Equipment $ 1,500
Fixtures $ 1,500
Machinery $ 6,500
Other $ 2,500
Total Capital Equipment $ 67,000
Location and Admin Expenses
Rental $ -
Utility Deposits 5,500
Legal and Accounting Fees 4,500
Prepaid Insurance 55,000
Pre-opening Salaries 5,500
Other 5,500
Total Location and Admin Expenses $ 76,000
Opening Inventory
Online bidding system $ 2,560
Live music shows $ 2,560
Online press kits $ 2,560
Newsletters $ 2,560
Catering and photography $ 2,560
Total Inventory $ 12,800
Advertising and Promotional Expenses
Advertising $ 1,500
Signage $ 1,500
Printing $ 1,500
Travel & Entertainment $ 1,500
Other / Additional categories -
Total Adv and Promo expenses $ 6,000
Payroll and payroll taxes
Expense 1 $ 25,000
Expense 2 25,000
Total Payroll and payroll taxes $ 50,000

Fixed Expenses
Fixed Expenses
Bldgs / Real Estate $ 50,500
Leasehold Improvements 22,000
Capital Equipment 67,000
Location / Admin Expenses 76,000
Opening Inventory -
Advertising / Promo Expenses 6,000
Other Expenses 50,000
Total Fixed Expenses $ 271,500
Variable Expenses
Inventory or Materials 90000.0
Direct labor (includes payroll taxes) 91000.0
Other expenses 98000.0
Other expenses 99000.0
Salaries (includes payroll taxes) 100000000.0
Supplies 10000000.0
Total Variable Expenses 11037800000%
Breakeven Sales level = 0

Year 1 model inputs
Use this area to capture key components of the Profit and Loss Statement and the Balance Sheet for the firs
1. Year-one revenue expectancy
Gym training equipments Cardio theatre
Number of units sold annually 500 500
Average sales price per unit $40.00 $40.00
Annual revenue per product $20,000 $20,000
Total year 1 revenue $80,000
2. Year 1 cost of goods sold
Gym training equipments Cardio theatre
Expected gross margin per product 0.00% 0.00%
Annual cost of goods sold per product $0 $0
Total year 1 cost of goods sold $0
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%
95,0006. If long-term debt is being used to finance
operations, enter the total loan value.

nt and the Balance Sheet for the first year only.
Nutritionalist services Health supplements
500 500
$40.00 $40.00
$20,000 $20,000
Nutritionalist services Health supplements
0.00% 0.00%
$0 $0

[Company Name]
5-Year Financial Plan—Manufacturing
Profit and loss projections
Year-by-year profit and loss assumptions
Year 1 Year 2
Annual cumulative price (revenue) increase - 2.00%
Annual cumulative inflation (expense) increase - 2.00%
Interest rate on ending cash balance 0.50% 0.50%
Year 1 Year 2
Gross revenue $80,000 $200,000
Cost of goods sold $0 $0
Gross margin $80,000 $200,000
Other revenue [source] $21,000 $22,000
Interest income $8,000 $7,000
Total revenue $109,000 $229,000
Operating expenses
Sales and marketing $6,000 $6,120
Payroll and payroll taxes $50,000 $51,000
Depreciation $27,900 $28,458
Maintenance, repair, and overhaul $0 $0
Total operating expenses $83,900 $85,578
Operating income $25,100 $143,422
Interest expense on long-term debt $1,500 $1,545
Operating income before other items $23,600 $141,877
Loss (gain) on sale of assets $330 $320
Other unusual expenses (income) $0 $0
Earnings before taxes $23,930 $142,197
Taxes on income 30% $7,179 $42,659
Net income (loss) $16,751 $99,538

ssumptions
Year 3 Year 4 Year 5
4.00% 6.00% 8.00%
4.00% 6.00% 8.00%
0.50% 0.50% 0.50%
Year 3 Year 4 Year 5
$300,000 $400,000 $500,000
$0 $0 $0
$300,000 $400,000 $500,000
$23,000 $24,000 $25,000
$6,000 $5,000 $4,000
$329,000 $429,000 $529,000
$6,365 $6,747 $7,286
$53,040 $56,222 $60,720
$29,016 $29,574 $30,132
$0 $0 $0
$88,421 $92,543 $98,139
$240,579 $336,457 $430,861
$1,591 $1,639 $1,688
$238,988 $334,818 $429,173
$310 $300 $290
$0 $0 $0
$239,298 $335,118 $429,463
$71,789 $100,535 $128,839
$167,508 $234,582 $300,624

Encore Coffee Roaster Company
5-Year Financial Plan—Manufacturing
Balance sheet projections
Assets Initial balance Year 1
Cash and short-term investments $0 $3,400
Accounts receivable 0 76,000
Total inventory 0 0
Prepaid expenses 0 0
Deferred income tax 0 0
Other current assets 0 0
Total current assets $0 $79,400
Buildings $50,500 $50,500
Land 0 0
Capital improvements $ 22,000 22,000
Machinery and equipment $ 67,000 67,000
Less: Accumulated depreciation expense 0 27,900
Net property/equipment $139,500 $111,600
Goodwill $0 $0
Deferred income tax 0 0
Long-term investments 0 0
Deposits 0 0
Other long-term assets 0 0
Total assets $139,500 $191,000
Liabilities Initial balance Year 1
Accounts payable $65,000 $65,000
Accrued expenses 21,000 21,000
Notes payable/short-term debt 18,000 18,000
Capital leases 19,000 19,000
Other current liabilities 17,500 17,500
Total current liabilities $140,500 $140,500
Long-term debt from loan payment calculator 95,000 $51,500
Other long-term debt $0 $0
Total debt $235,500 $192,000
Other liabilities 0 0
Total liabilities $235,500 $192,000
Equity Initial balance Year 1
Owner's equity (common) $50,000 $50,000
Paid-in capital 0 0
Preferred equity 0 0
Retained earnings 0 0
Total equity $50,000 $50,000
Total liabilities and equity $285,500 $242,000

Year 2 Year 3 Year 4 Year 5
$182,403 $315,010 $458,223 $612,044
32,000 45,000 58,000 71,000
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
$214,403 $360,010 $516,223 $683,044
$50,500 $50,500 $50,500 $50,500
0 0 0 0
22,000 22,000 22,000 22,000
67,000 67,000 67,000 67,000
56,358 85,374 114,948 145,080
$83,142 $54,126 $24,552 ($5,580)
$0 $0 $0 $0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
$297,545 $414,136 $540,775 $677,464 A
Year 2 Year 3 Year 4 Year 5
$65,000 $65,000 $65,000 $65,000
21,000 21,000 21,000 21,000
18,000 18,000 18,000 18,000
19,000 19,000 19,000 19,000
17,500 17,500 17,500 17,500
$140,500 $140,500 $140,500 $140,500
$53,045 $54,636 $56,275 $57,964
$0 $0 $0 $0
$193,545 $195,136 $196,775 $198,464
0 0 0 0
$193,545 $195,136 $196,775 $198,464
Year 2 Year 3 Year 4 Year 5
$50,000 $50,000 $50,000 $50,000
0 0 0 0
0 0 0 0
0 0 0 0
$50,000 $50,000 $50,000 $50,000
$243,545 $245,136 $246,775 $248,464 B

[Company Name]
5-Year Financial Plan—Manufacturing
Cash flow
Year 1 Year 2 Year 3
Operating activities
Net income $30,000 $40,000 $50,000
Depreciation $27,900 $28,458 $29,016
Accounts receivable ($76,000) $44,000 ($13,000)
Inventories $0 $0 $0
Accounts payable $0 $0 $0
Amortization 5,000 5,000 $5,000
Other liabilities 25,000 25,000 $25,000
Other operating cash flow items 0 0 $0
Total operating activities $11,900 $142,458 $96,016
Investing activities
Capital expenditures $0 $0 $0
Acquisition of business 15,000 15,000 15,000
Sale of fixed assets $10,000 $10,000 $10,000
Other investing cash flow items 0 0 0
Total investing activities $25,000 $25,000 $25,000
Financing activities
Long-term debt/financing ($43,500) $1,545 $1,591
Preferred stock 0 0 0
Total cash dividends paid 5,000 5,000 5,000
Common stock 0 0 0
Other financing cash flow items 5,000 5,000 5,000
Total financing activities ($33,500) $11,545 $11,591
Cumulative cash flow $3,400 $179,003 $132,607
Beginning cash balance $0 $3,400 $182,403
Ending cash balance $3,400 $182,403 $315,010

Year 4 Year 5 Total
$60,000 $70,000 $80,000
$29,574 $30,132 $145,080
($13,000) ($13,000) ($71,000)
$0 $0 $0
$0 $0 $0
$5,000 $5,000 $25,000
$25,000 $25,000 $125,000
$0 $0 $0
$106,574 $117,132 $474,080
$0
$0
$0 $0 $0
15,000 15,000 $75,000
$10,000 $10,000 $50,000
0 0 $0
$25,000 $25,000 $125,000
$1,639 $1,688 ($37,036)
0 0 0
5,000 5,000 25,000
0 0 0
5,000 5,000 25,000
$11,639 $11,688 $12,964
$143,213 $153,820 $612,044
$315,010 $458,223
$458,223 $612,044

[Company Name]
5-Year Financial Plan—Manufacturing
Loan payment calculator
Annual interest rate 3.0%
Monthly rate 0.25%
Loan amount $0
Term of loan (months) 60
Payment $0.00
Month Principal balance Principal payment Interest
1 $50,000 $123 ($123)
2 50,123 124 (124)
3 50,247 124 (124)
4 50,371 124 (124)
5 50,495 125 (125)
6 50,620 125 (125)
7 50,744 125 (125)
8 50,870 125 (125)
9 50,995 126 (126)
10 51,121 126 (126)
11 51,247 126 (126)
12 51,373 127 (127)
13 51,500 127 (127)
14 51,627 127 (127)
15 51,754 128 (128)
16 51,882 128 (128)
17 52,010 128 (128)
18 52,138 129 (129)
19 52,267 129 (129)
20 52,396 129 (129)
21 52,525 130 (130)
22 52,654 130 (130)
23 52,784 130 (130)
24 52,914 131 (131)
25 53,045 131 (131)
26 53,176 131 (131)
27 53,307 131 (131)
28 53,438 132 (132)
29 53,570 132 (132)
30 53,702 132 (132)
31 53,835 133 (133)
32 53,968 133 (133)
33 54,101 133 (133)
34 54,234 134 (134)
35 54,368 134 (134)
36 54,502 134 (134)
37 54,636 135 (135)
Note: This calculator can generate principal
and interest payments for a period of up to 30
years (360 months).