Financial Plan 2.0

7.
0 Financial Plan
The financial prospects for Protein Quake is quite promising. Since Protein Quake is a pioneer in the market,
the business is expected to grow fast due to high existing, untapped demand. Investment will play a major
role in financing our growth and cushioning the initial losses.
We hope to expand to other outlets by Year 3 when we most likely have repaid most of the debts. However,
for the purpose of this financial plan, we assume that there will be no additional outlets within 3 years.
7.1 Start-up Funding

The majority of our funding for start-up requirements will come from short-term loans from VPBank and/or
Agribank, as both banks are well known for charging a lower interest rate and higher amount of loanable
funds for entrepreneurs. Furthermore, as the maximum loanable funds at both banks is at $9412, after the
required start-up cost of $7322, there is a $2090 cushion for unexpected overhead costs.
Other current liabilities include but not limited to:
Taxes
Insurance
Start-up Stocks
The owners of Protein Quake has gathered an additional funding of $500 to support the company for the
first few months. We hope to able to secure an investment of $30,000, which will be paid out in dividends of
2% per month after the first year.
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$4,672
$2,650
$7,322
$2,150
$500
$31,363
$31,863
$34,013
Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Other Current Liabilities (interest-free)
Total Liabilities
$7,322
$0
$863
$8,185
Capital
Planned Investment
Owner
Investor
Total Planned Investment
$500
$30,000
$30,500
Page 1
Loss at Start-up (Start-up Expenses)
($4,672)
$25,828
Total Capital and Liabilities
$34,013
Total Funding
$38,685
Total Capital
7.2 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table. The
key underlying assumptions are:
1. A quick-growth economy, without major recession or overheating.
2. There are no unforeseen changes in public health perceptions of its general products.
3. No additional outlets are opened within the assessed period.
4. Access to equity capital and financing sufficient to maintain its financial plan as shown in the tables.
Additionally,
Tax rate for private businesses is expected to drop from 22% to 20% in 2016.
The interest rate is estimated based on public statements from VPBank and Agribank.
7.3 Break-even Analysis

Our break-even analysis is summarized by the following chart and table.
Break-even Analysis
Monthly Units Break-even
Monthly Revenue Break-even
Assumptions:
Average Per-Unit Revenue
Average Per-Unit Variable Cost
Estimated Monthly Fixed Cost
3,708
$10,778
$2.91
$1.44
$5,429
Page 2
7.4 Projected Profit and Loss

There are a multitude of factors and consideration to include when determining projected profit and loss,
including but not limited to:
Pro Forma Profit and Loss

Year 1
$153,819
$76,340
$0
$76,340
Year 2
$193,539
$95,891
$0
$95,891
Year 3
$212,913
$105,494
$0
$105,494
Gross Margin
Gross Margin %
$77,479
50.37%
$97,648
50.45%
$107,419
50.45%
Expenses
Payroll
Marketing/Promotion
Depreciation
Rent
Utilities
Payroll Taxes
Other
$6,720
$20,900
$120
$34,800
$600
$469
$1,540
$7,251
$4,300
$350
$34,800
$750
$508
$1,694
$7,828
$4,300
$1,020
$34,800
$1,000
$782
$1,863
Total Operating Expenses
$65,149
$49,653
$51,593
Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred
$12,330
$12,450
$877
$2,520
$47,995
$48,345
$847
$9,430
$55,826
$56,846
$406
$11,084
Sales
Direct Cost of Sales
Other Costs of Sales
Total Cost of Sales
Page 3
Net Profit
Net Profit/Sales
$8,934
5.81%
$37,719
19.49%
$44,336
20.82%
Page 4
7.5 Projected Cash Flow

Our projected cash flow is outlined in the following chart and table.
Pro Forma Cash Flow

Year 1
Year 2
Year 3
Page 5
Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
$153,819
$153,819
$193,539
$193,539
$212,913
$212,913
Additional Cash Received

Sales Tax, VAT, HST/GST Received
Subtotal Cash Received
$0
$153,819
$0
$193,539
$0
$212,913
Year 1
Year 2
Year 3
Expenditures from Operations

Cash Spending
Subtotal Spent on Operations
$144,765
$144,765
$155,470
$155,470
$167,557
$167,557
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Dividends
Subtotal Cash Spent
$0
$176
$0
$144,941
$0
$176
$7,200
$162,846
$0
$7,176
$7,200
$181,933
$8,878
$40,741
$30,693
$71,433
$30,980
$102,413
Expenditures
Net Cash Flow

Cash Balance
Page 6
7.6 Projected Balance Sheet

The table below outlines the projected balance sheet.
Pro Forma Balance Sheet

Year 1
Year 2
Year 3
Current Assets
Cash
Other Current Assets
Total Current Assets
$40,741
$580
$41,321
$71,433
$580
$72,013
$102,413
$580
$102,993
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
$1,570
$120
$1,450
$42,771
$1,570
$470
$1,100
$73,113
$1,570
$1,490
$80
$103,073
Year 1
Year 2
Year 3
Current Liabilities
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$7,146
$863
$8,009
$6,970
$863
$7,833
($206)
$863
$657
Total Liabilities
$0
$8,009
$0
$7,833
$0
$657
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$30,500
($4,672)
$8,934
$34,762
$42,771
$30,500
($2,938)
$37,719
$65,280
$73,113
$30,500
$27,580
$44,336
$102,416
$103,073
Net Worth
$34,762
$65,280
$102,416
Assets
Liabilities and Capital
7.7 Business Ratios

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Ratio Analysis
Sales Growth
Percent of Total Assets
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets
Current Liabilities
Year 1
n.a.
Year 2
25.82%
Year 3
10.01%
1.36%
96.61%
3.39%
100.00%
0.79%
98.50%
1.50%
100.00%
0.56%
99.92%
0.08%
100.00%
18.73%
0.00%
10.71%
0.00%
0.64%
0.00%
Page 7
Total Liabilities
Net Worth
18.73%
81.27%
10.71%
89.29%
0.64%
99.36%
100.00%
50.37%
44.56%
100.00%
50.45%
30.97%
100.00%
50.45%
29.63%
13.59%
8.02%
2.22%
24.80%
2.02%
26.22%
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
5.16
5.16
18.73%
32.95%
26.78%
9.19
9.19
10.71%
72.22%
64.49%
156.72
156.72
0.64%
54.11%
53.77%
Additional Ratios
Net Profit Margin
Return on Equity
Year 1
5.81%
25.70%
Year 2
19.49%
57.78%
Year 3
20.82%
43.29%
15.18
3.60
12.17
2.65
12.17
2.07
0.23
1.00
0.12
1.00
0.01
1.00
$33,312
14.06
$64,180
56.67
$102,336
137.55
0.28
19%
5.16
4.42
0.00
0.38
11%
9.19
2.96
0.19
0.48
1%
156.72
2.08
0.16
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative
Expenses
Advertising Expenses
Profit Before Interest and Taxes
Activity Ratios
Accounts Payable Turnover
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout
Page 8

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7.

7.1 Start-up Funding

Liabilities and Capital

Loss at Start-up (Start-up Expenses)

Total Capital and Liabilities

7.2 Important Assumptions

7.3 Break-even Analysis

7.4 Projected Profit and Loss

Pro Forma Profit and Loss

Total Operating Expenses

Profit Before Interest and Taxes

7.5 Projected Cash Flow

Pro Forma Cash Flow

Additional Cash Received

Expenditures from Operations

Additional Cash Spent

Net Cash Flow

7.6 Projected Balance Sheet

Pro Forma Balance Sheet

Liabilities and Capital

7.7 Business Ratios

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