Profit & Loss

Year 1
Sales

Year 2

Year 3

$98,000

$1,000,000

$1,200,000

Costs/Goods Sold

$150

$150

$150

GROSS PROFIT

$97,850

$999,850

$1,199,850

$137,280

$137,280

$137,280

$11,000

$11,000

$11,000

$0

$0

$0

$9,500

$300

$500

$0

$1,000

$1,500

$2,000

$2,500

$3,000

$0

$0

$0

$500

$500

$500

$3,000

$300

$300

$600

$600

$600

$7,000

$7,500

$8,000

$12,500

$13,000

$13,000

Taxes (Real Estate, etc.)

$2,000

$3,000

$4,000

Interest

$1,000

$1,000

$1,000

$0

$0

$0

$4,000

$4,000

$4,000

TOTAL EXPENSES

$190,380

$181,980

$184,680

NET PROFIT BEFORE TAXES

$-92,530

$817,870

$1,015,170

$3,000

$4,000

$4,500

$-95,530

$813,870

$1,010,670

$35,000

$35,000

$40,000

$-130,530

$778,870

$970,670

OPERATING EXPENSES
Salary (Office & Overhead)
Payroll (taxes, etc.)
Outside Services
Supplies (Office & Operation)
Repairs & Maintenance
Advertising
Car, Delivery & Travel
Accounting & Legal
Rent
Telephone
Utilities
Insurance

Depreciation
Other Expenses

Income Taxes
NET PROFIT AFTER TAX
Owner Draw/Dividends
ADJUSTED TO RETAINED

Cash Flow (12/01/2016 to 01/01/2020)

Pre-Startup
EST
Cash on Hand

Year 1

Year 2

Year 3

Total Item
EST

$20,000

$1,250

$-101,930

$697,790

$617,110

Cash Sales

$0

$0

$0

$0

$0

Collections from CR
Accounts

$0

$98,000

$1,000,000

$1,200,000

$2,298,000

Loan/Cash Injection

$0

$0

$0

$0

TOTAL CASH RECEIPTS

$0

$98,000

$1,000,000

$1,200,000

$2,298,000

$20,000

$99,250

$898,070

$1,897,790

$2,915,110

$9,500

$2,000

$2,000

$2,000

$15,500

Gross Wages

$0

$137,280

$137,280

$137,280

$411,840

Outside Services

$0

$0

$0

$0

$0

$2,000

$3,600

Repairs & Maintenance

$0

$500

$600

$750

$1,850

Advertising

$0

$2,000

$2,300

$2,500

$6,800

Car, Delivery & Travel

$0

$100

$100

$100

$300

Accounting & Legal

$0

$500

$500

$500

$1,500

$250

$3,000

$3,000

$3,000

$9,250

$50

$600

$600

$600

$1,850

Utilities

$2,000

$7,000

$7,500

$8,000

$24,500

Insurance

$3,000

$12,500

$13,000

$13,000

$41,500

$500

$14,000

$15,000

$15,500

$45,000

$0

$1,000

$1,000

$1,000

$3,000

$700

$4,000

$4,000

$4,000

$12,700

$18,000

$188,080

$186,880

$188,230

$581,190

$250

$3,000

$3,000

$3,000

$9,250

$0

$9,000

$9,000

$9,000

$27,000

$500

$500

$500

$1,500

$0

$0

$0

$0

CASH RECEIPTS

TOTAL CASH
AVAILABLE
CASH PAID OUT
Purchases

Supplies

Rent
Telephone

Taxes (Real Estate, etc.)

Interest
Other Expenses
SUBTOTAL
Loan Principal Payment
Capital Purchase
Other Startup Costs
Reserve and/or Escrow

$0

$5,600

Others Withdrawal
TOTAL CASH PAID OUT
CASH POSITION

$500

$600

$900

$1,000

$3,000

$18,750

$201,180

$200,280

$201,730

$621,940

$1,250

$-101,930

$697,790

$1,696,060

$2,293,170

Balance Sheet
Assets

Start Date: 12/01/2016

End Date: 01/01/2020

CURRENT ASSETS
Cash in Bank

$1,250

$1,696,060

Accounts Receivable

$0

$0

Inventory

$0

$0

Prepaid Expenses

$0

$50,000

$1,250

$1,806,060

Machinery & Equipment

$9,500

$27,000

Furniture & Fixtures

$2,000

$4,000

Leaseholder Improvements

$2,000

$6,000

$150

$5,400

$2,000

$8,000

$15,650

$50,400

$500

$6,000

$0

$60,000

Other

$200

$8,000

TOTAL OTHER ASSETS

$700

$14,000

$17,600

$1,870,460

Other Current Assets

TOTAL CURRENT ASSETS

FIXED ASSETS

Land & Buildings

Other Fixed Assets
TOTAL FIXED ASSETS
(net of depreciation)

OTHER ASSETS
Intangibles
Deposits

TOTAL ASSETS

Liabilities & Equity

CURRENT LIABILITIES
Accounts Payable

$0

$0

Interest Payable

$0

$2,000

Taxes Payable

$1,500

$3,500

Notes, Short Term (due in 12 months)

$5,000

$6,000

$0

$5,000

$6,500

$16,500

$5,000

$6,000

Notes Payable to Stockholders

$0

$0

LESS: Short-Term Portion

$0

$0

Other Long-Term Debt

$2,000

$5,000

TOTAL LONG-TERM DEBT

$7,000

$11,000

$13,500

$27,500

$0

$0

Retained Earnings

$4,100

$1,842,960

TOTAL OWNERS EQUITY

$4,100

$1,842,960

$17,600

$1,870,460

Current Part, Long-Term Debt

TOTAL CURRENT LIABILITIES

LONG TERM DEBT

Bank Loans Payable

TOTAL LIABILITIES

OWNER'S EQUITY
Invested Capital

TOTAL LIABILITIES & EQUITY

Financial Assumptions
Assumptions for Profit and Loss Projections
According to the Profit and Loss Projections Omega Designs will be losing money during the 1st
year of operation and then come back during the 2nd and 3rd year making a very good profit.

Assumptions for Cash Flow Analysis

Although it is a bit pricy to set up and Omega Designs will be in the whole (Losing Money)
during the first year of operation Omega Designs will come back during the 2nd and 3rd years
making a hefty amount of money off of the Website/Graphic Design Business.

Assumptions for Balance Sheet

During the 3 year span that was used, when Omega Designs started out they had practically no
money left over after getting the business started. By the end date exactly 3 year latter the
company has almost 1 million dollars in the back to be spent on improvement for the company.