Dollinger index

The Business Plan 201

Net Income

Depreciation

(Increase) decrease in AR

(Increase) decrease in inventories

Increase (decrease) in AP

Increase (decrease) in salaries

payable

Increase (decrease) in IT payable

Cash flow from operations

Investing

Acquisition of P,P, & E

Cash flow from investing

Financing

Issue of long-term debt *

Increase (decrease) in paid-in

capital

Cash flow from financing

Change in cash

Cash, Dec. 31, last year

Cash, Dec. 31, current year

Year 1

(298,627)

37,000

(43,750)

35,000

(270,377)

(185,000)

(185,000)

300,000

400,000

700,000

244,623

• 244,623

Year 2

(144,527)

37,000

(6,250)

21,000

(92,777)

• 
  


• 
  


• 
  

  (92,777)
  244,623
  151,847

  
  

Year 3

131,176

37,000

(25,000)

68,600

211,776

• 
  


• 
  


• 
  

  211,776
  151,847
  363,623

  
  

Year 4

592,379

37,000

(50,000)

88,200

667,579

• 
  


• 
  


• 
  

  667,579
  363,623
  1,031,202

  
  

Year 5

1,572,055

37,000

(35,000)

186,200

1,760,255

• 
  


• 
  


• 
  

  1,760,255
  1,031,202
  2,791,457

  
  

Projected Cash Flow Statement

* Long term debt project is made up of two loans:

1. Equipment loan—5 years at 9.5%
   2. General loan—3 years at 9.5%

C C C C C

C

C

CCCCC

CCCCC

CCCC

CCCC

CCCC

CCC

CCCC

Cash

Accounts receivable

Inventories

Total current assets

P,P, & E (net)

Total assets

Liabilities and owners’ equity

Accounts payable

Current portion LTD

Salaries payable

Income taxes payable

Total current liabilities

Long-term debt

Bonds payable

Total liabilities

Paid-in capital

Retained earnings

Total owners’ equity

Total liabilities & owners’

equity

Year 1

244,623

43,750

288,373

185,000

473,373

35,000

94,018

• 
  


• 
  

  129,018
  284,396

  
  


• 
  

  413,414
  400,000
  (340,041)
  59,959

  
  

473,373

Year 2

151,847

50,000

201,847

148,000

349,847

56,000

94,018

• 
  


• 
  

  150,018
  190,378

  
  


• 
  

  340,396

  
  


• 
  

  9,451
  9,451

  
  

_349,847

Year 3

363,623

75,000

438,623

111,000

549,623

124,600

94,018

• 
  


• 
  

  218,618
  96,360

  
  


• 
  

  314,978

  
  


• 
  

  234,645
  234,645

  
  

549,623

Year 4

1,031,202

125,000

1,156,202

74,000

1,230,202

212,800

48,181

• 
  


• 
  

  260,981
  48,179

  
  


• 
  

  309,160

  
  


• 
  

  921,042
  921,042

  
  

1,230,202

Year 5

2,791,457

160,000

2,951,457

37,000

2,988,457

399,000

48,181

• 
  


• 
  

  447,181

  
  


• 
  

  447,181

  
  


• 
  

  2,541,276
  2,541.276

  
  

2,988,457

*Note: Discretionary owner distributions may be taken beginning in Year 3 depending on company profitability.

Projected Balance Sheet

C C

C C

C

C

C

C C C

C C

C

C

C

C

C

C

C

CC

C

C

C