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Example of Financial Study

The document presents financial projections for Clark Que's Fried Seafood Restaurant from 2016 to 2020. It includes projections for total project costs, financing through a bank loan, annual financial statements showing expected income, expenses and profits, balance sheets, and cash flow statements. The business is expected to be profitable with net income growing from $227,497 in 2016 to $718,400 in 2020 as sales increase annually. Cash balances are also projected to increase substantially over the 5-year period from $150,000 to $550,000.

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John Michael Sernadilla
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© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
29 views

Example of Financial Study

The document presents financial projections for Clark Que's Fried Seafood Restaurant from 2016 to 2020. It includes projections for total project costs, financing through a bank loan, annual financial statements showing expected income, expenses and profits, balance sheets, and cash flow statements. The business is expected to be profitable with net income growing from $227,497 in 2016 to $718,400 in 2020 as sales increase annually. Cash balances are also projected to increase substantially over the 5-year period from $150,000 to $550,000.

Uploaded by

John Michael Sernadilla
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Chapter 5

FINANCIAL STUDY
Project Cost
Fixed Capital
Cart

7,500.00

Tools and Equipment

6,500.00

Working Capital

2,500.00

Pre-Operating Capital

3,150.00
19,650.00

Total Project Cost

Financing
Since this business required less than twenty thousand, it
can be started by means of capital share, but if someone wants to
obtain a loan from the bank the table below represent an
amortization schedule with the interest of 3% to be paid within
five years.
Year
2016
2017
2018
2019
2020

Principal
3,763.96
3,878.44
3,996.41
4,117.97
4,243.22

Amortization
548.53
434.04
316.07
194.52
69.27

Balance
16,263.04
12,357.60
8,361.18
4,243.22
0.00

Financial Assumptions
Repairs & Maintenance
Rent
Taxes and Licensees
Miscellaneous
Supplies

12,501
12,000
48,000
6,000
60,000

Financial Statements
Income Statement:
CLARK QUEs Fried Seafood Restaurant
Income Statement
For the Year Ending December 31, 2016 to 2020
2016
Revenues
Sales
Expenses
Cost of
Goods Sold
Depreciatio
n Expense
Rent
Expense
Supplies
Expense
Total
Expenses
Net Income

2017

2018

2019

2020

681,800

753,200

983,900

1,197,800

1,593,200

381,803

411,600

464,400

500,100

649,300

500

500

750

1,000

1,500

12,000

13,200

17,690

18,000

24,000

60,000

72,567

100,000

150,000

200,000

454,303
497,867
582,840
669,100
874,800
227,497
255,333
401,060
528,700
718,400

Balance Sheet:

CLARK QUEs Fried Seafood Restaurant


Balance Sheet
As of December 31, 2016 to 2020
2016

2017

2018

2019

2020

ASSETS
Current Assets
Cash
Inventories
Total Current
Assets
Fixed Assets
Tools and
Equipment/Stal
l
Total Asset
LIABILITIES
AND EQUITY
Liabilities
Accrued Wages
Unearned
Revenue
Owners Equity
Total
Liabilities
and Equity

150,000
8,000

200,000
11,000

289,000
11,000

350,000
12,000

490,000
15,000

158,000

211,000

300,000

362,000

505,000

15,923

16,500

17,411

18,289

20,931

173,923

227,500

317,411

380,289

525,931

8,400

10,800

11,000

12,800

15,000

60,000
105,523

60,000
156,700

62,400
244,011

62,400
305,089

62,400
448,531

173,923

227,500

317,411

380,289

525,931

Cash Flows
CLARK QUEs Fried Seafood Enterprise
Statement of Cash Flows
For the Year Ending December 31,2016 to 2020
2016
2017
2018
2019
OPERATING
ACTIVITIES
Net Income
227,497
255,333
401,060
528,700
Addition(Source
s of Cash)
Depreciation
1,000
and
500
500
750
Amortization
Increase in
Accruals
2,400
200
1,800
Subtraction(Use
s of Cash)
Increase in
Inventories
(3,000)
(2,000)
Net Cash
Provided by
Operating
Activities
227,997
255,233
402,010
529,500
LONG-TERM
INVESTING
ACTIVITIES
Cash use to
acquire Fixed
Assets
(14,000) (20,000) (21,000) (25,000)
FINANCING
ACTIVITIES
Net increase in
Cash
50,000
90,000
60,000
Cash at
beginning of
year
150,000
200,000
289,000
350,000
Cash at end of
year
200,000
290,000
350,000
490,000

2020

718,400

1,500

2,200

(3,000)

719,100

(30,000)

140,000

490,000
550,000

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