preview

Scenario Plan For A Scenario

Better Essays
Open Document

ellent Scenario Year 1 Year 2 Year 3 Year 4 Year 5 Sales 80,000 100,000 120,000 150,000 250,000 Variable Cost Materials 11,000 12,000 13,000 15,000 18,000 Payroll 30,000 33,000 37,000 38,000 40,150 Contribution Margin 39,000 55000 70000 97,000 191,850 Fixed Cost Rent 10,000 10,000 10,000 10,000 10,000 Electricity 1,500 1,500 1,500 1,500 1,500 Total Fixed Costs 11,500 11,500 11,500 11,500 11,500 Net Profit (Loss) 27,500 43,500 58,500 85,500 180,350 Year 1 Year 2 Year 3 Year 4 Year 5 Assets PPE, Net 50,000 50,000 50,000 50,000 50,000 Cash 25,000 65,000 100,000 170,000 350,000 Total Assets 75,000 115,000 150,000 220,000 400,000 Liabilities Accounts Payable 0 0 0 0 0 Note Payable 75,000 70,000 35,000 0 0 Total Liabilities 75,000 70,000 35,000 0 0 Equity 0 45,000 115,000 220,000 400,000 Year 1 Year 2 Year 3 Year 4 Year 5 Operating Cash 25,000 45,000 115,000 220,000 400,000 Investing PPE (50,000) 0 0 0 0 Financing Note Payable (Loan) 75,000 0 0 0 0 Worst Case Scenario Year 1 Year 2 Year 3 Year 4 Year 5 Sales 15,000 20,000 25,000 30,000 18,000 Variable Cost Materials 7,500 8,000 8,500 9,000 7,800 Payroll 19,000 21500 23500 25000 20000 Contribution Margin (11,500) (9500) (7000) (4000) (9800) Fixed Cost Rent 20,000 20,000 20,000 20,000 20,000 Electricity 3,000 3,000 3,000 3,000 3,000 Total Fixed Costs 23,000 23,000 23,000 23,000 23,000 Net Profit (Loss) (34,500) (32,500) (30,000) (27,000) (32,800) Year 1 Year 2 Year 3 Year 4 Year 5 Assets PPE, Net 50,000 50,000 50,000 50,000 50,000

Get Access
Related
Get Access