5-YEAR FINANCIAL PLAN

Company Name

FORECASTED REVENUE
Units sold
annually (Ton)
Raw Mushrooms

300

Processed Mushrooms

125

Medicinal Mushrooms

Annual
revenue
per product
50.00
Medicinal Mushrooms15,000.00
;1
Average
price per unit

200.00

25,000.00

Processed
Mushrooms;
125
1
600.00

600.00

Product 4

TOTAL OF FORECASTED REVENUE

40,600.00

COST OF GOODS SOLD

Expected
gross margin

Annual
cost of 300
Raw
Mushrooms;
goods sold

Raw Mushrooms

20%

3,000.00

Processed Mushrooms

25%

6,250.00

Medicinal Mushrooms

30%

180.00

Product 4

30%

TOATL COST OF GOODS SOLD

9,430.00

ANNUAL MAINTENANCE, REPAIR AND OVERHAUL

Factor (%) on capital equipment

15%

ASSET DEPRECIATION
Number of Years

10

TAX
Annual Tax Rate

15%

INFLATION
Annual Inflation Rate

5%

PRODUCT PRICE INCREASE

Annual Price Increase

9%

FUNDING
Loan Amount
Annual interest rate
Term of loan (months)

30,000.00
5.00%
60

Monthly rate

0.41%

Payment

564.61

Total Amount Payable

33,876.72

ms; 300

PROFIT AND LOSS PROJECTION

Company Name

PROFIT AND LOSS ASSUMPTION

Year 1

Year 2

Year 3

Year 4

Year 5

Annual cumulative price (revenue) increase

0.00%

9.00%

18.00%

27.00%

36.00%

Annual cumulative inflation (expense) incre

0.00%

5.00%

10.00%

15.00%

20.00%

Year 1

Year 2

Year 3

Year 4

Year 5

Raw Mushrooms

15,000.00

16,350.00

19,293.00

24,502.11

33,322.87

Processed Mushrooms

25,000.00

27,250.00

32,155.00

40,836.85

55,538.12

600.00

654.00

771.72

980.08

1,332.91

INCOME
Revenue

Medicinal Mushrooms
Product 4

Total revenue

40,600.00

44,254.00

52,219.72

66,319.04

90,193.90

Cost of Sales

Year 1

Year 2

Year 3

Year 4

Year 5

Raw Mushrooms

3,000.00

3,150.00

3,465.00

3,984.75

4,781.70

Processed Mushrooms

6,250.00

6,562.50

7,218.75

8,301.56

9,961.88

180.00

189.00

207.90

239.09

286.90

Medicinal Mushrooms
Product 4
Cost of goods sold

Gross Profit

9,430.00

9,901.50

10,891.65

12,525.40

15,030.48

Year 1

Year 2

Year 3

Year 4

Year 5

31,170.00

34,352.50

41,328.07

53,793.65

75,163.42

Non-Operation Income
Rental

Interest income

Loss (gain) on sale of assets

Other income (specify)

Toatal Non-Operation Income

TOTAL INCOME

31,170.00

34,352.50

41,328.07

53,793.65

75,163.42

Year 1

Year 2

Year 3

Year 4

Year 5

EXPENSES
Operating expenses
Sales and marketing

2,000.00

2,100.00

2,310.00

2,656.50

3,187.80

Depreciation

5,000.00

5,000.00

5,000.00

5,000.00

5,000.00

Insurance

7,500.00

7,875.00

8,662.50

9,961.88

11,954.25

Payroll and Payroll Tax

5,000.00

5,250.00

5,775.00

6,641.25

7,969.50

500.00

525.00

577.50

664.13

796.95

Maintenance, repair, and overhaul

4,500.00

4,725.00

4,950.00

5,175.00

5,400.00

Utilities

5,000.00

5,250.00

5,775.00

6,641.25

7,969.50

300.00

315.00

346.50

398.48

478.17

1,346.10

1,074.64

789.60

490.31

176.06

100.00

105.00

115.50

132.83

159.39

Total operating expenses

31,246.10

32,219.64

34,301.60

37,761.61

43,091.62

Non-Recurring Expenses

Year 1

Year 2

Year 3

Year 4

Year 5

Property taxes

Administrative fees
Interest expense on long-term debt
Other

Unexpected Expenses

2,000.00

2,000.00

2,000.00

2,000.00

2,000.00

500.00

550.00

605.00

665.50

732.05

2,500.00

2,550.00

2,605.00

2,665.50

2,732.05

Other expenses
Total Non-Recurring Expenses

TOTAL EXPENSES

Year 1

Year 2

Year 3

Year 4

Year 5

33,746.10

34,769.64

36,906.60

40,427.11

45,823.67

62.57

663.22

2,004.98

4,400.96

TAXES
Income Tax

Other Tax (specify)

TOTAL TAXES

Year 1

NET PROFIT

62.57

Year 2

2,576.10 -

663.22
Year 3

354.57

3,758.25

2,004.98
Year 4
11,361.55

4,400.96
Year 5
24,938.79

Year 6
45.00%
25.00%

Year 6

45,319.10
75,531.84
1,812.76

122,663.70
Year 6
5,738.04
11,954.25
344.28

18,036.57
Year 6
104,627.13

104,627.13

Year 6
3,984.75

5,000.00
14,942.81
9,961.88
996.19
5,625.00
9,961.88
597.71
199.24
51,269.45
Year 6
2,000.00
805.26
2,805.26
Year 6
54,074.71

7,582.86

7,582.86
Year 6
42,969.56

Staffing
Staff position

Finance Manager
Human Resource and Relationship Manager
Farmer Relations Executive
Training Manager
Skilled Mushroom Cultivation Trainer
Operations Manager
Skilled Cultivator
Semi Skilled Labor
Transport and & Shipment Associate
Processing lead
Annual Incease in Salary Percentage

Year 1

Year 2

Year 3

Year 4

Year 5

$3,000 $3,300.0 $3,630.0 $3,993.0 $4,392.3

$3,000 $3,300.0 $3,630.0 $3,993.0 $4,392.3
$3,000 $3,300.0 $3,630.0 $3,993.0 $4,392.3
$3,000 $3,300.0 $3,630.0 $3,993.0 $4,392.3
$2,000 $2,200.0 $2,420.0 $2,662.0 $2,928.2
$3,000 $3,300.0 $3,630.0 $3,993.0 $4,392.3
$1,600 $1,760.0 $1,936.0 $2,129.6 $2,342.6
$1,000 $1,100.0 $1,210.0 $1,331.0 $1,464.1
$2,000 $2,200.0 $2,420.0 $2,662.0 $2,928.2
$1,500 $1,650.0 $1,815.0 $1,996.5 $2,196.2
10%

Year 6

Year 7

Year 8

Year 9

Year 10

$4,831.5 $5,314.7 $5,846.2 $6,430.8 $7,073.8

$4,831.5 $5,314.7 $5,846.2 $6,430.8 $7,073.8
$4,831.5 $5,314.7 $5,846.2 $6,430.8 $7,073.8
$4,831.5 $5,314.7 $5,846.2 $6,430.8 $7,073.8
$3,221.0 $3,543.1 $3,897.4 $4,287.2 $4,715.9
$4,831.5 $5,314.7 $5,846.2 $6,430.8 $7,073.8
$2,576.8 $2,834.5

$3,117.9 $3,429.7 $3,772.7

$1,610.5 $1,771.6 $1,948.7 $2,143.6 $2,357.9

$3,221.0 $3,543.1 $3,897.4 $4,287.2 $4,715.9
$2,415.8 $2,657.3 $2,923.1 $3,215.4 $3,536.9

TOTAL INCOME

Year
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10

31170

TOTAL EXPENSES
33746
34770
36907
40427
45824
54075
58724
77305
105935
150981

Average
price per unit (Ton)
Raw Mushrooms
Processed Mushrooms
Medicinal Mushrooms

50
200
600

34352.5

TOTAL INCOME
31170
34353
41328
53794
75163
104627
145179
200906
277388
382234

Expected
gross margin
20.00%
25.00%
30.00%

41328.07

Net Profit
-2576
-417
4421
13367
29340
50552
86455
123601
171453
231253

53793.6469

75163.423384 104627.13212 145178.751 200906.1236 277387.9544 382234.36954

Break Even Analysis

450000
400000
350000
300000
250000
200000
150000
100000
50000
0
Year 1

Year 2

Year 3

Year 4

Year 5

TOTAL EXPENSES

Year 6

Year 7

TOTAL INCOME

Year 8

Year 9

Year 10

Year 9

Year 10

Operating expenses

Year 1

Sales and marketing

Depreciation
Insurance
Payroll and Payroll Tax
Property taxes
Maintenance, repair, and overhaul
Utilities
Administrative fees
Interest expense on long-term debt
Other

2000
2100
2310
2656.5
5000
5000
5000
5000
7500
7875
8662.5
9961.875
5000
5250
5775
6641.25
500
525
577.5
664.125
4500
4725
4950
5175
5000
5250
5775
6641.25
300
315
346.5
398.475
1346.0994692 1074.637272 789.60196495 490.31489254
100
105
115.5
132.825

146994.65658696
95939.3837647204
123711.890146423
183788.413832264
207692.533266689
255662.096320593
327176.504225302
430073.396254387
573453.230660809
767472.409679401

Year 2

Year 3

Year 4

Calculate NPV
Enter:
Interest Rate
Initial
Investement
Net Cash Flows
1
2
3
4
5
6
7
8
9
10
NPV

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

3187.8
3984.75
5180.175 6993.23625 9790.53075 14196.269588
5000
5000
3000
3000
3000
3000
11954.25 14942.8125 19425.65625 26224.635938 36714.490313 53236.010953
7969.5
9961.875 12950.4375 17483.090625 24476.326875 35490.673969
796.95
996.1875 1295.04375 1748.3090625 2447.6326875 3549.0673969
5400
5625
0
0
0
0
7969.5
9961.875 12950.4375 17483.090625 24476.326875 35490.673969
478.17
597.7125
777.02625 1048.9854375 1468.5796125 2129.4404381
176.06346652
0
0
0
0
0
159.39
199.2375
259.00875 349.6618125 489.5265375 709.81347938

Calculate NPV

er:
5.00%
35,000.00
Net Cash Flows
96994.656587
-51055.27282
27772.506382
60076.523686
23904.119434
47969.563054
71514.407905
102896.89203
143379.83441
194019.17902

146,995
95,939
123,712
183,788
207,693
255,662
327,177
430,073
573,453
767,472
2,168,020

BALANCE SHEET PROJECTION

Company Name

ASSETS
Current Assets
Cash and short-term investments
Accounts receivable
Total inventory

Initial balance

Year 1

Year 2

Year 3

Year 4

50,000.00

146,994.66

95,939.38

123,711.89

183,788.41

3,000.00

3,000.00

3,000.00

3,000.00

3,000.00

25,000.00

25,000.00

25,000.00

25,000.00

25,000.00

Prepaid expenses

Deferred income tax

Other current assets

Total current assets

Property and Equipment

5,000.00

5,000.00

5,000.00

5,000.00

5,000.00

83,000.00

179,994.66

128,939.38

156,711.89

216,788.41

Initial balance

Year 1

Year 2

Year 3

Year 4

Buildings

20,000.00

20,000.00

20,000.00

20,000.00

20,000.00

Land

10,000.00

10,000.00

10,000.00

10,000.00

10,000.00

Capital improvements
Machinery and equipment

30,000.00

Less Accumulated depreciation expense

Total Property and Equipment

Other Assets

60,000.00

Initial balance

30,000.00

30,000.00

30,000.00

30,000.00

5,000.00

10,000.00

15,000.00

20,000.00

55,000.00

50,000.00

45,000.00

40,000.00

Year 1

Year 2

Year 3

Year 4

Goodwill

Deferred income tax

Long-term investments

Deposits

Other long-term assets

Total Other Assets

TOTAL ASSETS

143,000.00

234,994.66

178,939.38

201,711.89

256,788.41

LIABILITIES
Current Liabilities
Accounts payable

Initial balance
2,000.00

Year 1

Year 2

2,000.00

Year 3

2,000.00

Year 4

2,000.00

2,000.00

Accrued expenses

Notes payable/short-term debt

Capital leases

Other current liabilities

Total Current Liabilities

Debt

2,000.00

2,000.00

Initial balance

2,000.00

2,000.00

Year 1

Year 2

Year 3

2,000.00
Year 4

Long-term debt/loan

30,000.00

24,570.76

18,870.05

12,884.31

6,599.28

Other long-term debt

100,000.00

200,000.00

150,000.00

175,000.00

225,000.00

132,000.00

226,570.76

170,870.05

189,884.31

233,599.28

Total Debt
Other Liabilities

Initial balance

Year 1

Year 2

Year 3

Year 4

Other liabilities (specify)

Other liabilities (specify)

Total Other Liabilities

TOTAL LIABILITIES

32,000.00

26,570.76

20,870.05

14,884.31

8,599.28

Year 1

Year 2

Year 3

Year 4

50,000.00

50,000.00

50,000.00

50,000.00

50,000.00

250,000.00

250,000.00

250,000.00

250,000.00

250,000.00

EQUITY
Initial balance
Owner's equity (common)
Paid-in capital
Preferred equity

Retained earnings

2,576.10 -

2,930.67

827.58

12,189.13

TOTAL EQUITY

300,000.00

297,423.90

297,069.33

300,827.58

312,189.13

TOTAL LIABILITIES AND EQUITY

332,000.00

323,994.66

317,939.38

315,711.89

320,788.41

Year 5

Year 6

207,692.53

255,662.10

3,000.00

3,000.00

25,000.00

25,000.00

5,000.00

5,000.00

240,692.53

288,662.10

Year 5

Year 6

20,000.00

20,000.00

10,000.00

10,000.00

30,000.00

30,000.00

25,000.00

30,000.00

35,000.00

30,000.00

Year 5

Year 6
-

275,692.53

318,662.10

Year 5

Year 6

2,000.00

2,000.00

2,000.00

2,000.00

Year 5

Year 6

564.61

537.73

225,000.00

225,000.00

227,564.61

227,537.73

Year 5

Year 6
-

2,564.61

2,537.73

Year 5

Year 6

50,000.00

50,000.00

250,000.00

250,000.00

37,127.92

80,097.48

337,127.92

380,097.48

339,692.53

382,635.21

CASH FLOW PROJECTION

Company Name
Operating activities
Net income
Depreciation

Year 1
-

Year 2

2,576.10 5,000.00

Year 3

Year 4

Year 5

354.57

3,758.25

11,361.55

24,938.79

5,000.00

5,000.00

5,000.00

5,000.00

Accounts receivable

Inventories

Accounts payable

Amortization

Other liabilities

Other operating cash flow items

Total operating activities

Investing activities

2,423.90
Year 1

4,645.43
Year 2

Year 3

Capital expenditures

Acquisition of business

Sale of fixed assets

Other investing cash flow items

Total investing activities

Financing activities
Long-term debt/financing

8,758.25

16,361.55

29,938.79

Year 4

Year 5

Year 1

Year 2

Year 3

Year 4

Year 5

94,570.76 -

55,700.71

19,014.26

43,714.97 -

6,034.67

Preferred stock

Total cash dividends paid

Common stock

Other financing cash flow items

Total financing activities

94,570.76 -

55,700.71

19,014.26

43,714.97 -

Cumulative cash flow

96,994.66 -

51,055.27

27,772.51

60,076.52

23,904.12

Beginning cash balance

50,000.00

146,994.66

95,939.38

123,711.89

183,788.41

146,994.66

95,939.38

123,711.89

183,788.41

207,692.53

Ending cash balance

6,034.67

Year 6

Year 7

Year 8

Year 9

Year 10

Total

42,969.56

68,514.41

99,896.89

140,379.83

191,019.18

579,907.80

5,000.00

3,000.00

3,000.00

3,000.00

3,000.00

42,000.00
-

47,969.56

71,514.41

102,896.89

143,379.83

194,019.18

621,907.80
Total
Total

26.89 -

510.84 -

26.89

95,564.61
95,564.61

47,969.56

71,514.41

102,896.89

143,379.83

194,019.18

207,692.53

255,662.10

327,176.50

430,073.40

573,453.23

255,662.10

327,176.50

430,073.40

573,453.23

767,472.41

157,692.53

157,692.53

LOAN AMORTIZATION SCHEDULE

Company Name
NOTE: Loan Amortization calculations are limited for up to 30 years (360 months).

MONTH
1

BALANCE
SCHEDULED PAYMENT
30,000.00
30,000.00
564.61

PRINCIPAL

INTEREST

442.39

122.22

29,557.61

564.61

444.19

120.42

29,113.42

564.61

446.00

118.61

28,667.42

564.61

447.82

116.79

28,219.60

564.61

449.64

114.97

27,769.96

564.61

451.47

113.14

27,318.49

564.61

453.31

111.30

26,865.18

564.61

455.16

109.45

26,410.02

564.61

457.01

107.60

10

25,953.00

564.61

458.88

105.74

11

25,494.12

564.61

460.75

103.87

12

25,033.38

564.61

462.62

101.99

13

24,570.76

564.61

464.51

100.10

14

24,106.25

564.61

466.40

98.21

15

23,639.85

564.61

468.30

96.31

16

23,171.55

564.61

470.21

94.40

17

22,701.34

564.61

472.12

92.49

18

22,229.22

564.61

474.05

90.56

19

21,755.17

564.61

475.98

88.63

20

21,279.19

564.61

477.92

86.69

21

20,801.27

564.61

479.86

84.75

22

20,321.41

564.61

481.82

82.79

23

19,839.59

564.61

483.78

80.83

24

19,355.80

564.61

485.75

78.86

25

18,870.05

564.61

487.73

76.88

26

18,382.32

564.61

489.72

74.89

27

17,892.60

564.61

491.72

72.90

28

17,400.88

564.61

493.72

70.89

29

16,907.16

564.61

495.73

68.88

30

16,411.43

564.61

497.75

66.86

31

15,913.68

564.61

499.78

64.83

32

15,413.91

564.61

501.81

62.80

33

14,912.09

564.61

503.86

60.75

34

14,408.23

564.61

505.91

58.70

35

13,902.32

564.61

507.97

56.64

36

13,394.35

564.61

510.04

54.57

37

12,884.31

564.61

512.12

52.49

38

12,372.19

564.61

514.21

50.41

39

11,857.98

564.61

516.30

48.31

40

11,341.68

564.61

518.40

46.21

41

10,823.28

564.61

520.52

44.10

42

10,302.76

564.61

522.64

41.97

43

9,780.12

564.61

524.77

39.85

44

9,255.36

564.61

526.90

37.71

45

8,728.45

564.61

529.05

35.56

46

8,199.40

564.61

531.21

33.41

47

7,668.19

564.61

533.37

31.24

48

7,134.82

564.61

535.54

29.07

49

6,599.28

564.61

537.73

26.89

50

6,061.55

564.61

539.92

24.70

51

5,521.64

564.61

542.12

22.50

52

4,979.52

564.61

544.32

20.29

53

4,435.20

564.61

546.54

18.07

54

3,888.65

564.61

548.77

15.84

55

3,339.89

564.61

551.00

13.61

56

2,788.88

564.61

553.25

11.36

57

2,235.63

564.61

555.50

9.11

58

1,680.13

564.61

557.77

6.85

59

1,122.36

564.61

560.04

4.57

60

562.32

564.61

562.32

2.29

Quarter
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
11.00
12.00
13.00
14.00
15.00
16.00
17.00
18.00
19.00
20.00

Sales
Predicted Residual Residual Square
90000.00 88711.30
1,289
1660747.69
95000.00 92394.60
2,605
6788109.16
98000.00 96077.90
1,922
3694468.41
96000.00 99761.20 -3,761 14146625.44
### 103444.50 -1,445
2086580.25
99000.00 107127.80 -8,128 66061132.84
### 110811.10
7,189 51680283.21
### 114494.40 -5,494 30188431.36
### 118177.70
5,822 33899177.29
121861.00
125544.30
129227.60
132910.90
136594.20
140277.50
143960.80
147644.10
151327.40
155010.70
158694.00
210205555.65

140000.00
120000.00
100000.00

f(x) =
R =

80000.00
60000.00
40000.00
20000.00
0.00
0.00

R2

0.7948

1.

Sales
140000.00
120000.00
100000.00

f(x) = 3683.3333333333x + 85027.7777777778

R = 0.7947656759

80000.00
60000.00
40000.00
20000.00
0.00
0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00 10.00