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Financial Plan Sample for Truck Stop Business Plan

Financial Plan

The following topics outline the financials for Interstate Travel Center.

7.1 Important Assumptions

The chart indicating the projected cash account does not take into account the investment needed to initiate Phases II-IV. The General Assumptions table states some of the more important business assumptions for the company.

General Assumptions
Year 1 Year 2 Year 3
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 25.42% 25.00% 25.42%
Other 0 0 0

7.2 Projected Cash Flow

The following table and chart reveal the projected cash flow for Interstate Travel Center for fiscal years 2001, 2002, and 2003.

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $8,203,203 $8,604,910 $9,027,661
Subtotal Cash from Operations $8,203,203 $8,604,910 $9,027,661
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 $8,203,203 $8,604,910 $9,027,661
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $481,672 $481,672 $481,672
Bill Payments $6,956,862 $7,367,638 $7,785,173
Subtotal Spent on Operations $7,438,534 $7,849,310 $8,266,845
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $275,000 $275,000 $275,000
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $7,713,534 $8,124,310 $8,541,845
Net Cash Flow $489,669 $480,600 $485,816
Cash Balance $739,669 $1,220,269 $1,706,085

7.3 Break-even Analysis

The break-even chart and table below describe how much money will need to be made to be profitable each month.

Break-even Analysis
Monthly Units Break-even 165,099
Monthly Revenue Break-even $325,729
Assumptions:
Average Per-Unit Revenue $1.97
Average Per-Unit Variable Cost $1.46
Estimated Monthly Fixed Cost $84,960

7.4 Projected Profit and Loss

The chart and table below projects the yearly profit and loss for the company. For a monthly breakdown, please see the appendix following the plan.

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $8,203,203 $8,604,910 $9,027,661
Direct Cost of Sales $6,063,555 $6,366,533 $6,684,784
Other $0 $0 $0
Total Cost of Sales $6,063,555 $6,366,533 $6,684,784
Gross Margin $2,139,648 $2,238,377 $2,342,878
Gross Margin % 26.08% 26.01% 25.95%
Expenses
Payroll $481,672 $481,672 $481,672
Sales and Marketing and Other Expenses $220,800 $278,800 $378,800
Depreciation $30,000 $30,000 $30,000
Leased Equipment $49,800 $49,800 $49,800
Utilities $49,200 $49,200 $49,200
Insurance $91,800 $91,800 $91,800
Rent $24,000 $30,000 $34,000
Payroll Taxes $72,251 $72,251 $72,251
Other $0 $0 $0
Total Operating Expenses $1,019,523 $1,083,523 $1,187,523
Profit Before Interest and Taxes $1,120,125 $1,154,854 $1,155,355
EBITDA $1,150,125 $1,184,854 $1,185,355
Interest Expense $235,104 $208,750 $181,250
Taxes Incurred $224,890 $236,526 $247,585
Net Profit $660,131 $709,578 $726,520
Net Profit/Sales 8.05% 8.25% 8.05%

7.5 Projected Balance Sheet

The following table shows our projected Balance Sheet for the next three years. We anticipate a steadily increasing Net Worth.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $739,669 $1,220,269 $1,706,085
Inventory $555,826 $583,599 $612,772
Other Current Assets $50,000 $50,000 $50,000
Total Current Assets $1,345,495 $1,853,868 $2,368,857
Long-term Assets
Long-term Assets $1,600,000 $1,600,000 $1,600,000
Accumulated Depreciation $30,000 $60,000 $90,000
Total Long-term Assets $1,570,000 $1,540,000 $1,510,000
Total Assets $2,915,495 $3,393,868 $3,878,857
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $565,364 $609,159 $642,628
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $565,364 $609,159 $642,628
Long-term Liabilities $2,225,000 $1,950,000 $1,675,000
Total Liabilities $2,790,364 $2,559,159 $2,317,628
Paid-in Capital $250,000 $250,000 $250,000
Retained Earnings ($785,000) ($124,869) $584,709
Earnings $660,131 $709,578 $726,520
Total Capital $125,131 $834,709 $1,561,229
Total Liabilities and Capital $2,915,495 $3,393,868 $3,878,857
Net Worth $125,131 $834,709 $1,561,229

7.6 Business Ratios

The table below outlines industry profile statisticsĀ for the gas and service station industry, as determined by the Standard Industry Classification (SIC) Index code 5541, Gasoline Service Stations. These statistics show a comparison of the industry standards and key ratios for this plan.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 4.90% 4.91% 10.80%
Percent of Total Assets
Inventory 19.06% 17.20% 15.80% 13.30%
Other Current Assets 1.71% 1.47% 1.29% 25.60%
Total Current Assets 46.15% 54.62% 61.07% 49.50%
Long-term Assets 53.85% 45.38% 38.93% 50.50%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 19.39% 17.95% 16.57% 31.60%
Long-term Liabilities 76.32% 57.46% 43.18% 23.10%
Total Liabilities 95.71% 75.41% 59.75% 54.70%
Net Worth 4.29% 24.59% 40.25% 45.30%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 26.08% 26.01% 25.95% 16.50%
Selling, General & Administrative Expenses 17.99% 17.77% 17.86% 10.40%
Advertising Expenses 2.34% 2.32% 2.77% 0.20%
Profit Before Interest and Taxes 13.65% 13.42% 12.80% 0.50%
Main Ratios
Current 2.38 3.04 3.69 1.55
Quick 1.40 2.09 2.73 0.91
Total Debt to Total Assets 95.71% 75.41% 59.75% 54.70%
Pre-tax Return on Net Worth 707.28% 113.35% 62.39% 2.50%
Pre-tax Return on Assets 30.36% 27.88% 25.11% 5.50%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 8.05% 8.25% 8.05% n.a
Return on Equity 527.55% 85.01% 46.54% n.a
Activity Ratios
Inventory Turnover 10.91 11.17 11.18 n.a
Accounts Payable Turnover 13.31 12.17 12.17 n.a
Payment Days 27 29 29 n.a
Total Asset Turnover 2.81 2.54 2.33 n.a
Debt Ratios
Debt to Net Worth 22.30 3.07 1.48 n.a
Current Liab. to Liab. 0.20 0.24 0.28 n.a
Liquidity Ratios
Net Working Capital $780,131 $1,244,709 $1,726,229 n.a
Interest Coverage 4.76 5.53 6.37 n.a
Additional Ratios
Assets to Sales 0.36 0.39 0.43 n.a
Current Debt/Total Assets 19% 18% 17% n.a
Acid Test 1.40 2.09 2.73 n.a
Sales/Net Worth 65.56 10.31 5.78 n.a
Dividend Payout 0.00 0.00 0.00 n.a

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