Use the docx to finish the excel form, and please finish it before the deadline.Notes Deco Frost...

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Use the docx to finish the excel form, and please finish it before the deadline.Notes 	Deco Frost Financial Pro Forma Statement 	Notes - Outline all assumptions driving the financial proforma on this sheet 	Suggested Method: 		1. Start with the income statement. Figure out the revenue, COGS and GM 		2. Estimate your operating expenses and get your EBITDA  		3. Subtract any depreciation if you have planned on capital purchases (that will be reflected on the balance sheet and cash flow statements ONLY) 		4. Subtract any interest expenses from the EBIT from 3 above to get your EBT. 		5. If your net income is positive, subtract taxes from your EBT to get your Net Income. 		6. Complete the Cash Flow projections by reconciling your Net Income from the Income Statement. Do not duplicate your expenses on the Cash Flow Statement! 		7. Put your financing into the flow statement, whether investments or debt. These must be sufficient to remain cash flow positive at the end of each month. 		8. Itemize any capital expenses in the investment section.  	ALL NOTES GO HERE. No comments in the spreadsheet! 	Business description:  	Development Plan: 	Marketing Plan: 	Sales Plan:	direct or through channels? 		what channels? 		trade discounts by channel? 	IP plans?	TM 		Patent upgrades? 		License 	COGS 		reference for similar gross margins for similar equipment 		changes in COGS over the three years 	Sales Price: 		changes in price over the three years 	Sales volume growth exoectations 	Hires: Hires should make sense for your revenue level. Justify your salary levels.  		Marketing 		sales 		engineering 		administrative 	AP plans  		What are your inventory levels? How quickly will you ship? 		How quickly will you pay for inventory? 	manufacturing plans 		contract  			premium on cogs 		in-house 			assembly people 			production space 			equipment -fixed assets? Capital expenditures? 	expenses 		insurance 		rent 		general maintenance 		office supplies 		communications - internet, phone 		marketing expenses 	AR Plans 		when do you get paid by customers or channels? 	tax rate 		remember taxes are only paid on positive income 		where are you located and what do they charge? 	How does your accounting get done? 		bookeeping by admin 		accounting services 		full time accountant Income Statement 	Deco Frost Income Statement 				Year 1													Year 2													Year 3 				Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Year 1	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Year 2 	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Year 3 	Sales Volume 	Price 	Revenue 		Trade discounts Graef, Ted: Graef, Ted: This is the discount you have to give to retailer like amazon or best buy. If sellin in more than one outlet, put a line for each with specific discount for that retailer. 		COGS 		Credit card charges 		Shipping 	Gross Margin 	Expenses 		Salaries (Itemize with line per hire) 			Owner 1 			Owner 2 			Employee 1 			Employee 2 			Employee 3 		R&D  		Marketing 			Social Media 			Advertising 			Tradeshows 			Guerilla events 			Demo equipment 		Sales expenses (travel) 		Rent 		Maintenance (fixed assets) 		Insurance 		Professional services 			accounting 			legal 	EBITDA 		Depreciation  	EBIT 		Interest expense 	EBT 		Taxes 	Net Income Cash Flow Statement 	Deco Frost Cash Flow Statement 			Year 1													Year 2													Year 3 			Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Year 1	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Year 2 	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Year 3 	Beginning Cash 	Cash from Operations 		Net Income 		Depreciation 		Change in AR 		Change in AP 	Cash for Investments 		Capital Purchases 		Acquisitions 	Cash from Financing 		Equity Investments 		New Debt 		Retired Debt 		Dividends Paid 	Ending Cash Balance Sheet 	Deco Frost Balance Sheet Proforma 				Year 1, End of month													Year 2													Year 3 				Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	12/31/Year 1	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	12/31/Year 2 	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	12/31/Year 3 	Assets 		Current Assets 			Cash 			AR 			Inventory 		Tangiblle Assets 			Fixed Assets 			(Accumulated Depreciation) 		Intangible Assets 			IP 		Total Assets 	Liabilities 		Current Liabiliites 			AP 			Credit Line, Debt due

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Notes
	Deco Frost Financial Pro Forma Statement
	Notes - Outline all assumptions driving the financial proforma on this sheet
	Suggested Method:
		1. Start with the income statement. Figure out the revenue, COGS and GM
		2. Estimate your operating expenses and get your EBITDA 
		3. Subtract any depreciation if you have planned on capital purchases (that will be reflected on the balance sheet and cash flow statements ONLY)
		4. Subtract any interest expenses from the EBIT from 3 above to get your EBT.
		5. If your net income is positive, subtract taxes from your EBT to get your Net Income.
		6. Complete the Cash Flow projections by reconciling your Net Income from the Income Statement. Do not duplicate your expenses on the Cash Flow Statement!
		7. Put your financing into the flow statement, whether investments or debt. These must be sufficient to remain cash flow positive at the end of each month.
		8. Itemize any capital expenses in the investment section. 
	ALL NOTES GO HERE. No comments in the spreadsheet!
	Business description: Selling T-shirts
	Development Plan: Set up the Manufacturing Plant
	Marketing Plan:
	Sales Plan:	direct or through channels?						Channel
		what channels?						Middleman
		trade discounts by channel?						2.50%
	IP plans?	TM
		Patent upgrades?						Yes, cost $20000 
		License						Yes
	COGS
		reference for similar gross margins for similar equipment						50% - COGS in 1st Year
		changes in COGS over the three years						with Economies of scale, 49% in 2nd Years and 48% in 3rd year
	Sales Price:
		changes in price over the three years						Price will increase by 5% in year 2 and $2.5 in year 3
	Sales volume growth exoectations							10% increase month-on-month
	Hires: Hires should make sense for your revenue level. Justify your salary levels. 
		Marketing						2250 per month
		sales
		engineering						2250 per month
		administrative
	AP plans 
		What are your inventory levels? How quickly will you ship?						I will ship the very next day. Since Change in Inventory is not given in Cash Flow statement, I have taken this at 0
		How quickly will you pay for inventory?						80% in month of purchase, 20% in next month
	manufacturing plans
		contract 
			premium on cogs
		in-house
			assembly people					2
			production space					on Rent
			equipment -fixed assets? Capital expenditures?					150000 in first year and then 10000 every year
	expenses
		insurance						300 per month
		rent						500 per month
		general maintenance						400 per month
		office supplies
		communications - internet, phone
		marketing expenses						1425 per month
	AR Plans
		when do you get paid by customers or channels?						80% in month of sale, 20% in next month
	tax rate
		remember taxes are only paid on positive income						Yes
		where are you located and what do they charge?						25%
	How does your accounting get done?							Full Time Accountant
		bookeeping by admin
		accounting services
		full time accountant
Income Statement
	Deco Frost Income Statement
				Year 1													Year 2													Year 3
				Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Year 1	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Year 2 	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Year 3
	Sales Volume			$1,000.00	$1,050.00	$1,103.00	$1,158.00	$1,216.00	$1,277.00	$1,341.00	$1,408.00	$1,478.00	$1,552.00	$1,630.00	$1,712.00	$15,925.00	$1,798.00	$1,888.00	$1,982.00	$2,081.00	$2,185.00	$2,294.00	$2,409.00	$2,529.00	$2,655.00	$2,788.00	$2,927.00	$3,073.00	$28,609.00	$3,227.00	$3,388.00	$3,557.00	$3,735.00	$3,922.00	$4,118.00	$4,324.00	$4,540.00	$4,767.00	$5,005.00	$5,255.00	$5,518.00	$51,356.00
	Price			$25.00	$25.00	$25.00	$25.00	$25.00	$25.00	$25.00	$25.00	$25.00	$25.00	$25.00	$25.00	$25.00	$27.50	$27.50	$27.50	$27.50	$27.50	$27.50	$27.50	$27.50	$27.50	$27.50	$27.50	$27.50	$27.50	$30.00	$30.00	$30.00	$30.00	$30.00	$30.00	$30.00	$30.00	$30.00	$30.00	$30.00	$30.00	$30.00
	Revenue			$25,000.00	$26,250.00	$27,575.00	$28,950.00	$30,400.00	$31,925.00	$33,525.00	$35,200.00	$36,950.00	$38,800.00	$40,750.00	$42,800.00	$398,125.00	$49,445.00	$51,920.00	$54,505.00	$57,227.50	$60,087.50	$63,085.00	$66,247.50	$69,547.50	$73,012.50	$76,670.00	$80,492.50	$84,507.50	$786,747.50	$96,810.00	$101,640.00	$106,710.00	$112,050.00	$117,660.00	$123,540.00	$129,720.00	$136,200.00	$143,010.00	$150,150.00	$157,650.00	$165,540.00	$1,540,680.00
		Trade discounts
Graef, Ted: Graef, Ted:
This is the discount you have to give to retailer like amazon or best buy. If sellin in more than one outlet, put a line for each with specific discount for that retailer.		$625.00	$656.25	$689.38	$723.75	$760.00	$798.13	$838.13	$880.00	$923.75	$970.00	$1,018.75	$1,070.00	$9,953.13	$1,236.13	$1,298.00	$1,362.63	$1,430.69	$1,502.19	$1,577.13	$1,656.19	$1,738.69	$1,825.31	$1,916.75	$2,012.31	$2,112.69	$19,668.69	$2,420.25	$2,541.00	$2,667.75	$2,801.25	$2,941.50	$3,088.50	$3,243.00	$3,405.00	$3,575.25	$3,753.75	$3,941.25	$4,138.50	$38,517.00
		COGS		$12,500.00	$13,125.00	$13,787.50	$14,475.00	$15,200.00	$15,962.50	$16,762.50	$17,600.00	$18,475.00	$19,400.00	$20,375.00	$21,400.00	$159,250.00	$24,228.05	$25,440.80	$26,707.45	$28,041.48	$29,442.88	$30,911.65	$32,461.28	$34,078.28	$35,776.13	$37,568.30	$39,441.33	$41,408.68	$306,831.53	$46,468.80	$48,787.20	$51,220.80	$53,784.00	$56,476.80	$59,299.20	$62,265.60	$65,376.00	$68,644.80	$72,072.00	$75,672.00	$79,459.20	$585,458.40
		Credit card charges		$100.00	$100.00	$100.00	$100.00	$100.00	$100.00	$100.00	$100.00	$100.00	$100.00	$100.00	$100.00	$1,200.00	$100.00	$100.00	$100.00	$100.00	$100.00	$100.00	$100.00	$100.00	$100.00	$100.00	$100.00	$100.00	$1,200.00	$100.00	$100.00	$100.00	$100.00	$100.00	$100.00	$100.00	$100.00	$100.00	$100.00	$100.00	$100.00	$1,200.00
		Shipping		$500.00	$525.00	$551.50	$579.00	$608.00	$638.50	$670.50	$704.00	$739.00	$776.00	$815.00	$856.00	$7,962.50	$988.90	$1,038.40	$1,090.10	$1,144.55	$1,201.75	$1,261.70	$1,324.95	$1,390.95	$1,460.25	$1,533.40	$1,609.85	$1,690.15	$15,734.95	$1,936.20	$2,032.80	$2,134.20	$2,241.00	$2,353.20	$2,470.80	$2,594.40	$2,724.00	$2,860.20	$3,003.00	$3,153.00	$3,310.80	$30,813.60
	Gross Margin			$11,275.00	$11,843.75	$12,446.63	$13,072.25	$13,732.00	$14,425.88	$15,153.88	$15,916.00	$16,712.25	$17,554.00	$18,441.25	$19,374.00	$219,759.38	$22,891.93	$24,042.80	$25,244.83	$26,510.79	$27,840.69	$29,234.53	$30,705.09	$32,239.59	$33,850.81	$35,551.55	$37,329.01	$39,195.99	$443,312.34	$45,884.75	$48,179.00	$50,587.25	$53,123.75	$55,788.50	$58,581.50	$61,517.00	$64,595.00	$67,829.75	$71,221.25	$74,783.75	$78,531.50	$884,691.00
	Expenses
		Salaries (Itemize with line per hire)
			Owner 1	$3,750.00	$3,750.00	$3,750.00	$3,750.00	$3,750.00	$3,750.00	$3,750.00	$3,750.00	$3,750.00	$3,750.00	$3,750.

NotesDeco Frost Financial Pro Forma StatementNotes - Outline all assumptions driving the financial proforma on this sheetSuggested Method:1. Start with the income statement. Figure out...

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