Pro Forma - 5 Year Financial Forecast ABC EXAMPLE CO.’ financial projections show that the Company will competently utilize the requested funding to capitalize its growth efforts. The Company projects a significant increase in net income over the next (5) years as its business plan is implemented. The Company has fully developed this financial plan to cover the next five years in business. The purpose of the financial plan is to survey solid growth through the exciting business model punctuated by a healthy relation between continually increasing revenues, and diligent monitoring of an optimum cost structure. Start-up Summary/Use of Funds Use of Start-up Funding Expenses Equipment (X-Ray Machine, Computers, Misc Medical Supplies) Salaries Fees (Insurance, Licenses, Consultants) Property Lease Salaries Operating Costs for the First Year/Working Capital Official Breakdown TBDTotal Start-up Expenses Total Long-Term Assets Short-Term Assets Working Capital Total Short-Term Assets Total Expenses & Assets Total Start-up Expenses Total Start-up Assets Total Funding Requirements Total Start-up Funding Total Amount Being Requested Total Funds Already Received Total Funding New Start-up Funding Being Requested Bank Amount Being Requested Investor Amount Being Requested Total Amount Being Requested Start-up Funding Already Received C onfi denti al Busi ness $639,464 $639,464 $0 $120,536 $120,536 $639,464 $120,536 $760,000 $760,000 $95,045 $855,045 $760,000 $0 $760,000 P l a n - 0|P A G E
Owner Contribution Investor Contribution Total Funding Already Received $95,045 $0 $95,045 Start-up Capital and Liabilities Loss at Start-up (Start-up Expenses) Total Funds Received & Requested Cash Balance on Starting Date ($639,464) $855,045 $79,728 Assumptions Financial Assumptions Year 1 Year 2 Year 4 Year 5 10% 7% 10% 7% 10% 7% 3% 3% Personnel Assumptions Average Salary Growth Payroll Growth Year 3 10% 7% Growth Assumptions Total Revenue Growth Total Expense Growth 3% 3% 3% 3% 3% 3% Cash Assumptions Months of Cash on Hand Bill Payment Term (Days) 0 30 10 30 14 30 19 30 23 30 Loan Assumptions Loan Term Loan Rate Monthly Loan Payment Average Monthly Interest Average Monthly Principle 5 6.3% $14,781 $3,643 $11,139 $14,781 $2,926 $11,855 $14,781 $2,164 $12,618 $14,781 $1,352 $13,429 $14,781 $488 $14,293 C onfi denti al Busi ness P l a n - 1|P A G E
Pro Forma Summary Chart Pro Forma Summary Chart $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Year 1 Year 2 Year 3 Year 4 Year 5 $1,610,000 $1,771,000 $1,948,100 $2,142,910 $2,357,201 0 0 0 0 0 Total Operating Expenses $948,498 $1,014,613 $1,086,478 $1,164,641 $1,249,705 Taxes & Interest Incurred $229,050 $251,498 $276,663 $304,840 $336,352 Net Profit $432,451 $504,889 $584,959 $673,429 $771,144 Revenue Total Cost of Revenue Income (Revenue) Statement Year 1 Total Patients/Visits Price (Average) Patients/Visits Revenue Patients/Visits Total Revenue Revenue Forecast Year 2 Year 3 Year 4 Year 5 14,000 15,400 16,940 18,634 20,497 $115.00 $115.00 $115.00 $115.00 $115.00 $1,610,000 $1,610,000 $1,771,000 $1,771,000 $1,948,100 $1,948,100 $2,142,910 $2,142,910 $2,357,201 $2,357,201 Revenue $2,500,000 $2,000,000 $1,500,000 Revenue $1,000,000 $500,000 $0 Year 1 Year 2 Year 3 Year 4 Year 5 C onfi denti al Busi ness P l a n - 2|P A G E
Profit & Loss Statement The projected Profit & Loss Statement for ABC EXAMPLE CO. highlights the relation between the sales forecast and the operating expenses. These figures are based on the experience in the industry and the projected sales for the next five years. Please note: the Company makes every attempt to present conservative projections with incremental growth. Revenue Total Cost of Revenue Gross Margin Gross Margin/Revenue Expenses Billing Services Radiologist MSO Mgt Fees Office Mgr MSO Advertising Marketing Automobile Bank fees Conferences/Seminars Discounts/Refunds Dues and Subscriptions Insurance Licenses/Fees/Permits Legal/Professional Office supplies Telephone/Internet Travel Utilities Workers Comp. Payroll Taxes Total Personnel Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Revenue Pro Forma Profit and Loss Year 1 Year 2 Year 3 $1,610,000 $1,771,000 $1,948,100 $0 $0 $0 $1,610,000 $1,771,000 $1,948,100 100.00% 100.00% 100.00% Year 4 $2,142,910 $0 $2,142,910 100.00% Year 5 $2,357,201 $0 $2,357,201 100.00% $128,800 $6,000 $161,000 $40,000 $12,000 $24,000 $12,000 $3,000 $12,000 $12,000 $12,000 $30,000 $12,000 $30,000 $18,000 $7,200 $12,000 $6,000 $10,436 $52,182 $347,880 $948,498 $141,680 $6,600 $177,100 $44,000 $13,200 $26,400 $13,200 $3,300 $13,200 $13,200 $13,200 $33,000 $13,200 $33,000 $19,800 $7,920 $13,200 $6,600 $10,749 $53,747 $358,316 $1,014,613 $155,848 $7,260 $194,810 $48,400 $14,520 $29,040 $14,520 $3,630 $14,520 $14,520 $14,520 $36,300 $14,520 $36,300 $21,780 $8,712 $14,520 $7,260 $11,072 $55,360 $369,066 $1,086,478 $171,433 $7,986 $214,291 $53,240 $15,972 $31,944 $15,972 $3,993 $15,972 $15,972 $15,972 $39,930 $15,972 $39,930 $23,958 $9,583 $15,972 $7,986 $11,404 $57,021 $380,138 $1,164,641 $188,576 $8,785 $235,720 $58,564 $17,569 $35,138 $17,569 $4,392 $17,569 $17,569 $17,569 $43,923 $17,569 $43,923 $26,354 $10,542 $17,569 $8,785 $11,746 $58,731 $391,542 $1,249,705 $661,502 $661,502 $43,714 $185,336 $432,451 26.86% $756,387 $756,387 $35,117 $216,381 $504,889 28.51% $861,622 $861,622 $25,966 $250,697 $584,959 30.03% $978,269 $978,269 $16,227 $288,613 $673,429 31.43% $1,107,496 $1,107,496 $5,862 $330,490 $771,144 32.71% C onfi denti al Busi ness P l a n - 3|P A G E
Gross Margin & Profit Yearly $2,500,000 $2,000,000 Gross Margin $1,500,000 Profit $1,000,000 $500,000 $0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Cash Flow $600,000 $500,000 Net Cash Flow $400,000 $300,000 Cash Balance $200,000 $100,000 $0 C onfi denti al Busi ness Month 12 Month 11 Month 10 Month 9 Month 8 Month 7 Month 6 Month 5 Month 4 Month 3 Month 2 Month 1 -$100,000 P l a n - 4|P A G E
Cash Flow Statement The projected Cash Flow Statement for ABC EXAMPLE CO. represents what the Company believes the business will take in and what it will spend. Cash flow will be crucial to the survival of the business. The Company is confident that the Company will have ample cash on hand to ensure that investors can be paid on time. The Company offers this statement of the business’s positive cash flow as perhaps the single most powerful gauge of the expected financial performance. Year 1 Cash Received Revenue Proceeds from Property/Land Proceeds from Bank Loan Proceeds from Current Assets Proceeds From Longterm Assets Proceeds from Investor Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Investor Repayment Principal Loan Repayment Purchase Long-term Assets Dividends Paid Subtotal Cash Spent Net Cash Flow Cash Balance Pro Forma Cash Flow Year 2 Year 3 Year 4 Year 5 $1,610,000 $1,771,000 $1,948,100 $2,142,910 $2,357,201 $0 $0 $0 $0 $0 $760,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,370,000 $0 $0 $1,771,000 $0 $0 $1,948,100 $0 $0 $2,142,910 $0 $0 $2,357,201 $347,880 $724,454 $358,316 $944,118 $369,066 $987,220 $380,138 $1,081,773 $391,542 $1,186,159 $1,072,334 $1,302,434 $1,356,286 $1,461,911 $1,577,701 $0 $0 $0 $0 $0 $133,663 $142,261 $151,411 $161,150 $171,515 $0 $0 $1,845,461 $0 $0 $1,444,695 $0 $0 $1,507,697 $0 $0 $1,623,061 $0 $0 $1,749,217 $524,539 $524,539 $326,305 $850,844 $440,403 $1,291,247 $519,849 $1,811,096 $607,984 $2,419,080 C onfi denti al Busi ness P l a n - 5|P A G E
Financial Indicators ABC EXAMPLE CO. recognizes that the most important financial indicators are cash and bottom line. ABC EXAMPLE CO. will constantly monitor the flow of revenue to the Company as well as the expense requirements that deplete the Company of its cash. ABC EXAMPLE CO. will always try to improve the ratio of revenue and expenses to generate a healthier bottom line in addition to a healthier cash base. Financial Indicators Year 1 Year 2 Profitability %'s: Gross Margin Net Profit Margin EBITDA to Revenue Return on Assets Return on Equity Activity Ratios: Accounts Payable Turnover Asset Turnover Leverage Ratios: Debt to Equity Debt to Assets Ratio Interest Coverage Ratio Liquidity Ratios: Current Ratio Current Debt to Total Assets Ratio Additional Indicators: Revenue to Equity Ratio Year 3 Year 4 Year 5 100.00% 26.86% 41.09% 82.44% 100.75% 100.00% 28.51% 42.71% 59.34% 54.05% 100.00% 30.03% 44.23% 45.30% 38.51% 100.00% 31.43% 45.65% 37.18% 30.72% 100.00% 32.71% 46.98% 31.88% 26.02% 0.00 3.07 0.00 2.08 0.00 1.51 0.00 1.18 0.00 0.97 0.22 18.17% 15.13 (0.09) -9.79% 21.54 (0.15) -17.64% 33.18 (0.17) -21.06% 60.29 (0.18) -22.51% 188.93 (0.99) -101.23% (1.50) -66.68% (2.30) -43.41% (3.28) -30.53% (4.44) -22.51% 3.75 1.90 1.28 0.98 0.80 C onfi denti al Busi ness P l a n - 6|P A G E
Personnel Personnel Count Officers Comp. Medical Assistants Mid-Level Providers Front Office Staff Per Diem Total Personnel Personnel Wage Officers Comp. Medical Assistants Mid-Level Providers Front Office Staff Per Diem Personnel Costs Officers Comp. Medical Assistants Mid-Level Providers Front Office Staff Per Diem Total Payroll Year 1 3 2 2 2 1 10 Year 1 Dividends $27,144 $106,080 $21,216 $39,000 Year 1 Dividends $54,288 $212,160 $42,432 $39,000 $347,880 Year 2 3 2 2 2 1 10 Year 2 Dividends $27,958 $109,262 $21,852 $40,170 Year 2 Dividends $55,917 $218,525 $43,705 $40,170 $358,316 Year 3 3 2 2 2 1 10 Year 3 Dividends $28,797 $112,540 $22,508 $41,375 Year 3 Dividends $57,594 $225,081 $45,016 $41,375 $369,066 Year 4 3 2 2 2 1 10 Year 4 Dividends $29,661 $115,916 $23,183 $42,616 Year 4 Dividends $59,322 $231,833 $46,367 $42,616 $380,138 C onfi denti al Busi ness Year 5 3 2 2 2 1 10 Year 5 Dividends $30,551 $119,394 $23,879 $43,895 Year 5 Dividends $61,102 $238,788 $47,758 $43,895 $391,542 P l a n - 7|P A G E
Breakeven Analysis The break-even analysis for ABC EXAMPLE CO. calculates at what point the Company becomes profitable, and also at what point the Company will be operating at a loss. The analysis takes into consideration forecasted revenues as well as regular running fixed costs and average revenue. Break-even Analysis Monthly Revenue Break-even $98,129 Assumptions: Average Monthly Revenue Average Monthly Variable Cost Estimated Monthly Fixed Cost $134,167 $0 $98,129 Break-even Analysis $150,000 $100,000 $50,000 $0 ($50,000) ($100,000) ($150,000) $0 $98,129 $196,258 Monthly Revenue To Break-Even C onfi denti al Busi ness P l a n - 8|P A G E
Fleepit Digital © 2021