Which of the following is an example of a fixed cost for a bridal gown shop?

The following sections will outline important financial information.

7.1 Important Assumptions

The following table details important financial assumptions.

General Assumptions
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0

We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.

Create your own business plan

7.2 Break-even Analysis

The Break-even Analysis indicates what will be needed in monthly revenue to reach the break-even point.

Break-even Analysis
Monthly Revenue Break-even $15,944
Average Percent Variable Cost 25%
Estimated Monthly Fixed Cost $11,958

7.3 Projected Profit and Loss

The following table and charts display the projected profit and loss.

Pro Forma Profit and Loss
Direct Cost of Sales $36,961 $71,405 $74,837
Other Production Expenses $0 $0 $0
Total Cost of Sales $36,961 $71,405 $74,837
Gross Margin $110,883 $214,214 $224,512
Gross Margin % 75.00% 75.00% 75.00%
Payroll $99,320 $114,400 $117,400
Sales and Marketing and Other Expenses $3,600 $11,200 $11,200
Depreciation $7,728 $7,728 $7,728
Leased Equipment $0 $0 $0
Utilities $1,750 $1,750 $1,750
Insurance $1,800 $1,800 $1,800
Rent $14,400 $14,400 $14,400
Payroll Taxes $14,898 $17,160 $17,610
Other $0 $0 $0
Profit Before Interest and Taxes ($32,613) $45,776 $52,624
EBITDA ($24,885) $53,504 $60,352
Interest Expense $1,934 $1,809 $1,671
Taxes Incurred $0 $13,190 $15,286
Net Profit/Sales -23.37% 10.78% 11.91%

7.4 Projected Cash Flow

The following chart and table will indicate projected cash flow.

Pro Forma Cash Flow
Cash from Operations
Cash Sales $147,844 $285,618 $299,349
Subtotal Cash from Operations $147,844 $285,618 $299,349
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $147,844 $285,618 $299,349
Expenditures from Operations
Cash Spending $99,320 $114,400 $117,400
Bill Payments $66,822 $130,326 $138,074
Subtotal Spent on Operations $166,142 $244,726 $255,474
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $1,237 $1,345 $1,421
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $167,380 $246,071 $256,895
Cash Balance $11,764 $51,311 $93,766

7.5 Projected Balance Sheet

The following table will indicate the projected balance sheet.

Pro Forma Balance Sheet
Current Assets
Cash $11,764 $51,311 $93,766
Other Current Assets $0 $0 $0
Total Current Assets $11,764 $51,311 $93,766
Long-term Assets
Long-term Assets $18,000 $18,000 $18,000
Accumulated Depreciation $7,728 $15,456 $23,184
Total Long-term Assets $10,272 $2,544 ($5,184)
Total Assets $22,036 $53,855 $88,582
Current Liabilities
Accounts Payable $8,521 $10,908 $11,388
Current Borrowing ($1,237) ($2,582) ($4,003)
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $7,283 $8,326 $7,385
Long-term Liabilities $20,000 $20,000 $20,000
Total Liabilities $27,283 $28,326 $27,385
Paid-in Capital $30,000 $30,000 $30,000
Retained Earnings ($700) ($35,247) ($4,470)
Earnings ($34,547) $30,777 $35,667
Total Capital ($5,247) $25,530 $61,197
Total Liabilities and Capital $22,036 $53,855 $88,582
Net Worth ($5,247) $25,530 $61,197

We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.

Create your own business plan

7.6 Business Ratios

The following tables shows a variety of standard business analysis ratios, as calculated for the years of this plan. The Industry Profile column shows, for comparison, typical ratios for other businesses in the Formal Wear and Costume Rental industry, NAICS code 532220.

Ratio Analysis
Sales Growth 0.00% 93.19% 4.81% 11.37%
Other Current Assets 0.00% 0.00% 0.00% 49.84%
Total Current Assets 53.39% 95.28% 105.85% 64.51%
Long-term Assets 46.61% 4.72% -5.85% 35.49%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 33.05% 15.46% 8.34% 26.03%
Long-term Liabilities 90.76% 37.14% 22.58% 26.31%
Total Liabilities 123.81% 52.60% 30.91% 52.34%
Net Worth -23.81% 47.40% 69.09% 47.66%
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 75.00% 75.00% 75.00% 100.00%
Selling, General & Administrative Expenses 98.37% 64.22% 63.09% 67.07%
Advertising Expenses 1.62% 0.70% 0.67% 1.87%
Profit Before Interest and Taxes -22.06% 16.03% 17.58% 3.67%
Current 1.62 6.16 12.70 1.69
Quick 1.62 6.16 12.70 1.21
Total Debt to Total Assets 123.81% 52.60% 30.91% 61.69%
Pre-tax Return on Net Worth 658.41% 172.22% 83.26% 6.99%
Pre-tax Return on Assets -156.77% 81.64% 57.52% 18.25%
Net Profit Margin -23.37% 10.78% 11.91% n.a
Return on Equity 0.00% 120.55% 58.28% n.a
Accounts Payable Turnover 8.84 12.17 12.17 n.a
Payment Days 27 27 29 n.a
Total Asset Turnover 6.71 5.30 3.38 n.a
Debt to Net Worth 0.00 1.11 0.45 n.a
Current Liab. to Liab. 0.27 0.29 0.27 n.a
Net Working Capital $4,481 $42,986 $86,381 n.a
Interest Coverage -16.86 25.30 31.50 n.a
Assets to Sales 0.15 0.19 0.30 n.a
Current Debt/Total Assets 33% 15% 8% n.a
Acid Test 1.62 6.16 12.70 n.a
Sales/Net Worth 0.00 11.19 4.89 n.a
Dividend Payout 0.00 0.00 0.00 n.a