Burger Stand

Bob’s Burger Shack

1200 High St.

Brooklyn, New York 11219

BizPlanDB.com

The purpose of this business plan is to raise $60,000 for the development of a food stand that will sell
burgers, hot dogs, and beverages to customers in its targeted market. The Company was founded by Robert
Bergeon.

1.0 EXECUTIVE SUMMARY

The purpose of this business plan is to raise $60,000 for the development of a burger stand while
showcasing the expected financials and operations over the next three years. Bob’s Burger Shack (‘‘the
Company’’) is a New York-based corporation that will provide burgers, hot dogs, and beverages to
customers in its targeted market. The Company was founded by Robert Bergeon.

1.1 The Services

Our vision for Bob’s Burger Shack is to operate a small location that will provide a wide selection of
burgers, hotdogs, beverages, and ice cream.
Bob’s Burger Shack, vis-a-vis food and beverage sales, will generate substantial gross margins that will
allow the business to generate profitable revenue throughout the course of the calendar year.
The third section of the business plan will further describe the services offered by Bob’s Burger Shack.

1.2 Financing
Mr. Bergeon is seeking to raise $50,000 from a bank loan. The interest rate and loan agreement are to be
further discussed during negotiation. This business plan assumes that the business will receive a 10 year
loan with a 9% fixed interest rate. The financing will be used for the following:
• Development of the Company’s location.
• Financing for the first six months of operation.
• Capital to purchase the Company’s equipment.
Mr. Bergeon will contribute $10,000 to the venture.

1.3 Mission Statement

The Company is committed to providing customers with quality burgers, hot dogs, ice cream, and
beverages at reasonable prices while conforming to all laws regarding the sale of food on both the state
and local level.

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1.4 Management Team

The Company was founded by Robert Bergeon. Mr. Bergeon has more than 10 years of experience in
the retail food establishment industry. Through his expertise, he will be able to bring the operations of
the business to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Bergeon expects a strong rate of growth at the start of operations. Below are the expected financials
over the next three years.

Proforma profit and loss (yearly)

Year 1 2 3
Sales $430,122 $473,134 $520,448
Operating costs $219,454 $227,558 $236,028
EBITDA $124,644 $150,950 $180,330
Taxes, interest, and depreciation $ 60,209 $ 66,510 $ 77,263
Net profit $ 64,434 $ 84,440 $103,067

Sales, operating costs, and profit forecast

Sales EBITDA Net profit

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

$0
1 2 3
Year

1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation.
Mr. Bergeon intends to implement marketing campaigns that will effectively target individuals within
the target market.

2.0 COMPANY AND FINANCING SUMMARY

2.1 Registered Name and Corporate Structure
The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, Bob’s Burger Shack requires $50,000 of debt funds. Below is a breakdown of how these
funds will be used:

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Projected startup costs

Initial lease payments and deposits $ 5,000

Working capital $17,500
FF&E $12,500
Leasehold improvements $ 2,500
Security deposits $ 2,500
Insurance $ 1,250
Cooking equipment $10,000
Marketing budget $ 3,750
Miscellaneous and unforeseen costs $ 5,000
Total startup costs $60,000

Use of funds

Miscellaneous and Initial lease payments

unforeseen costs and deposits
8% 8%
Marketing
budget
6%

Cooking
Working
equipment
capital
17%
30%

Insurance
2%
Security FF&E
deposits 21%
4% Leasehold
improvements
4%

2.3 Investor Equity

Mr. Bergeon is not seeking an investment from a third party at this time.

2.4 Management Equity

Mr. Bergeon owns 100% of Bob’s Burger Shack.

2.5 Exit Strategy

If the business is very successful, Mr. Bergeon may seek to sell the business to a third party for a significant
earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on
behalf of Bob’s Burger Shack. Based on historical numbers, the business could fetch a sales premium of up
to 3 times earnings. There are moderate risks associated with operating a restaurant business, and as such
Mr. Bergeon will need to properly train a new owner for at least 30 to 60 days after the sale is complete.

3.0 PRODUCTS AND SERVICES

Bob’s Burger Shack will sell a variety of hamburgers, hot dogs, ice cream, smoothies, and other products
that are common within Burger Stands.
The Owner’s top priority (along with serving quality food) is to comply with all state and local laws regarding
the sale of food and beverages to the general public. Within Bob’s Burger Shack’s facility, the Company will
always properly handle dairy and meat products, which have higher incidences of spoilage. The Owner will
ensure, at all times, the Company’s facility is in compliance with all health and food safety laws.

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He intends to further the support for the business by sourcing inventories of meat, ice cream, and other
food products from local stores that will provide Bob’s Burger Shack with bulk discounts. This will
allow the business to further its ties to the local economy.
Mr. Bergeon is sourcing a number of inventory and equipment suppliers for the ongoing and one time
costs associated with this business.

4.0 STRATEGIC AND MARKET ANALYSIS

4.1 Economic Outlook
This section of the analysis will detail the economic climate, the burger stand quick service food industry, the
customer profile, and the competition that the business will face as it progresses through its business operations.
Presently the economic market condition in the United States is moderate. The meltdown of the sub prime
mortgage market coupled with increasing gas prices has led many people to believe that the US is on the cusp
of a double dip economic recession. This slowdown in the economy has also greatly impacted real estate sales,
which has halted to historical lows. However, due to the low pricing point of the food products offered by
Bob’s Burger Shack, the business should be able to remain profitable despite any future economic declines.

4.2 Industry Analysis

There are over 640,000 restaurants in the United States. Gross annual receipts total more than $193
billion dollars per year. The industry also employs over 10.5 million people, and generates an average
annual payroll of more than $40 billion dollars per year.
As it pertains to relationships that specifically focus on selling hamburgers and similar products, there
are approximately 75,000 businesses that operate within this sub-segment of the general restaurant
industry. Each year, these businesses typically generate 15% to 19% of all revenues generated by
restaurants within the United States.

4.3 Customer Profile

As the business offers an expansive menu of burgers, hot dogs, ice cream, and other products, it is
difficult to categorize the average customer of Bob’s Burger Shack as many people, of all walks of life,
enjoy the products offered by the Company.
Management expects that the average customer will be a middle to upper middle class man or woman
(usually with children) living in the Company’s target market. Common traits among clients will include:
• Annual household income exceeding $30,000
• Lives or works no more than 5 miles from the Company’s location.
• Will spend $5 to $15 per visit to Bob’s Burger Shack
In the Company’s target market radius (approximately 5 miles), there are more than 100,000 residents.
Among these residents, the annual household income is $42,000 while median family income is
approximately $50,000. The 10 year population growth of the area has been 3%.

4.4 Competition
As with any metropolitan area, there are always many businesses that operate in a similar or identical
capacity. The Company’s burger stand will face competition from other restaurants as well as with
major franchised locations that serve similar fare. Management intends to differentiate itself by
operating in a burger stand capacity while serving the freshest quality products.

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5.0 MARKETING PLAN

Bob’s Burger Shack intends to maintain an extensive marketing campaign that will ensure maximum
visibility for the business in its targeted market. Below is an overview of the marketing strategies and
objectives of Bob’s Burger Shack.

5.1 Marketing Objectives

• Implement a local campaign with the Company’s targeted market via the use of coupons that will
be provided with all mailed advertisements.
• Build a large word-of-mouth referral network through existing customer base once the business
becomes popular within the local community.
• Establish connections with local suppliers and vendors.

5.2 Marketing Strategies

Direct marketing will be the most difficult portion of the marketing strategy. This is because one of the
essential elements to reaching a retail food and beverage purchasing audience is that the Company must
build a brand affinity with the customer. Bob’s Burger Shack will maintain a moderate level of traditional
print and media advertising among local channels. These promotional campaigns will provide customers
with coupons and special savings deals that will entice consumers to come to the Company’s location.
Prior to opening the Company’s location, Management intends to send mailing and circulars to local
residents within the target market so that the business has instant traffic and visibility upon its grand
opening. Every mailing undertaken by the business will include a coupon.
As stated earlier, the business will also heavily benefit from the high visibility location which Mr.
Bergeon is currently sourcing. Management anticipates that a vast majority of the Company’s revenues
will come from passers-by and shoppers.

5.3 Pricing
The Company intends to price its food products between $1.50 to $3.50 per hamburger, hot dog, ice cream,
or beverage. Management anticipates gross margins of approximately 80% on each dollar generated.

6.0 ORGANIZATIONAL PLAN AND PERSONNEL SUMMARY

6.1 Corporate Organization

Senior management

Retail operations Administrative staff

Inventory management Accounting

Customer service Sales—marketing

Store maintenance Administrative

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6.2 Organizational Budget

Personnel plan—yearly

Year 1 2 3
Owner $ 35,000 $ 36,050 $ 37,132
Store manager $ 29,000 $ 29,870 $ 30,766
Customer service $ 46,500 $ 47,895 $ 49,332
Bookkeeper (P/T) $ 12,500 $ 12,875 $ 13,261
Administrative $ 22,000 $ 22,660 $ 23,340
Total $145,000 $149,350 $153,831

Numbers of personnel

Year 1 2 3
Owner 1 1 1
Store manager 1 1 1
Customer service 3 3 3
Bookkeeper (P/T) 1 1 1
Administrative 1 1 1
Totals 7 7 7

Personnel expense breakdown

Administrative
15% Owner
24%
Bookkeeper
(P/T)
9%

Store
Customer manager
service 20%
32%

7.0 FINANCIAL PLAN

7.1 Underlying Assumptions
The Company has based its proforma financial statements on the following:
• Bob’s Burger Shack will have an annual revenue growth rate of 10% per year.
• The Owner will acquire $50,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.

7.2 Sensitivity Analysis

The Company’s revenues are somewhat sensitive to the overall conditions of the economy. During
times of economic recession, the Company may have a decrease in its top line revenues as
people will demand fewer beverages/food products from retail locations. However, the Company’s

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revenues provide high levels of operating income for the business, and Bob’s Burger Shack
would need to have a significant decrease in its top line income before the Company becomes
unprofitable.

7.3 Source of Funds

Financing

Equity contributions
Management investment $ 10,000.00
Total equity financing $10,000.00
Banks and lenders
Banks and lenders $ 50,000.00
Total debt financing $50,000.00
Total financing $60,000.00

7.4 General Assumptions

General assumptions

Year 1 2 3
Short term interest rate 9.5% 9.5% 9.5%
Long term interest rate 10.0% 10.0% 10.0%
Federal tax rate 33.0% 33.0% 33.0%
State tax rate 5.0% 5.0% 5.0%
Personnel taxes 15.0% 15.0% 15.0%

7.5 Profit and Loss Statements

Proforma profit and loss (yearly)

Year 1 2 3
Sales $430,122 $473,134 $520,448
Cost of goods sold $ 86,024 $ 94,627 $104,090
Gross margin 80.00% 80.00% 80.00%
Operating income $344,098 $378,507 $416,358
Expenses
Payroll $145,000 $149,350 $153,831
General and administrative $ 13,200 $ 13,728 $ 14,277
Marketing expenses $ 4,301 $ 4,731 $ 5,204
Professional fees and licensure $ 5,219 $ 5,376 $ 5,537
Insurance costs $ 5,987 $ 6,286 $ 6,601
Travel and vehicle costs $ 7,596 $ 8,356 $ 9,191
Rent and utilities $ 14,250 $ 14,963 $ 15,711
Miscellaneous costs $ 2,151 $ 2,366 $ 2,602
Payroll taxes $ 21,750 $ 22,403 $ 23,075
Total operating costs $219,454 $227,558 $236,028
EBITDA $124,644 $150,950 $180,330
Federal income tax $ 41,132 $ 47,130 $ 57,044
State income tax $ 6,232 $ 7,141 $ 8,643
Interest expense $ 8,738 $ 8,131 $ 7,468
Depreciation expenses $ 4,107 $ 4,107 $ 4,107
Net profit $ 64,434 $ 84,440 $103,067
Profit margin 14.98% 17.85 % 19.80%

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Sales, operating costs, and profit forecast

Sales EBITDA Net profit

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

$0
1 2 3
Year

7.6 Cash Flow Analysis

Proforma cash flow analysis—yearly

Year 1 2 3
Cash from operations $ 72,910 $ 91,068 $109,489
Cash from receivables $ 0 $ 0 $ 0
Operating cash inflow $ 72,910 $ 91,068 $109,489
Other cash inflows
Equity investment $ 10,000 $ 0 $ 0
Increased borrowings $ 50,000 $ 0 $ 0
Sales of business assets $ 0 $ 0 $ 0
A/P increases $ 37,902 $ 43,587 $ 50,125
Total other cash inflows $ 97,902 $ 43,587 $ 50,125
Total cash inflow $170,812 $134,655 $159,615
Cash outflows
Repayment of principal $ 3,232 $ 3,535 $ 3,866
A/P decreases $ 24,897 $ 29,876 $ 35,852
A/R increases $ 0 $ 0 $ 0
Asset purchases $ 32,000 $ 22,767 $ 27,372
Dividends $ 51,037 $ 63,748 $ 76,643
Total cash outflows $111,166 $119,926 $143,733
Net cash flow $ 59,646 $ 14,729 $ 15,882
Cash balance $ 59,646 $ 74,376 $ 90,258

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Proforma cash flow (yearly)

Total cash inflow Total cash outflows Cash balance

$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
1 2 3
Year

7.7 Balance Sheet

Proforma balance sheet—yearly

Year 1 2 3
Assets
Cash $59,646 $ 74,376 $ 90,258
Amortized development/expansion costs $ 9,500 $ 16,330 $ 19,067
Burger stand equipment $10,000 $ 15,692 $ 22,535
FF&E $12,500 $ 22,745 $ 35,063
Accumulated depreciation ($ 2,286) ($ 4,571) ($ 6,857)
Total assets $89,361 $124,571 $160,065
Liabilities and equity
Accounts payable $13,005 $ 26,716 $ 40,990
Long term liabilities $46,768 $ 43,233 $ 39,699
Other liabilities $ 0 $ 0 $ 0
Total liabilities $59,773 $ 69,949 $ 80,688
Net worth $29,587 $ 54,622 $ 79,377
Total liabilities and equity $89,361 $124,571 $160,065

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Proforma balance sheet

Total assets Total liabilities Net worth

$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
1 2 3
Year

7.8 Breakeven Analysis

Monthly break even analysis

Year 1 2 3
Monthly revenue $ 22,860 $ 23,704 $ 24,586
Yearly revenue $274,317 $284,447 $295,035

Break even analysis

Monthly revenue Yearly revenue

$300,000

$250,000

$200,000

$150,000

$100,000

$50,000

$0
1 2 3
Year

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7.9 Business Ratios

Business ratios—yearly

Year 1 2 3
Sales
Sales growth 0.00% 10.00% 10.00%
Gross margin 80.00% 80.00% 80.00%
Financials
Profit margin 14.98% 17.85% 19.80%
Assets to liabilities 1.25 1.43 1.59
Equity to liabilities 0.25 0.43 0.59
Assets to equity 5.03 3.31 2.70
Liquidity
Acid test 0.75 0.80 0.85
Cash to assets 0.60 0.56 0.54

7.10 Three Year Profit and Loss Statement

Profit and loss statement (first year)

Months 1 2 3 4 5 6 7
Sales $26,600 $26,733 $26,866 $26,999 $39,900 $49,875 $53,200
Cost of goods sold $ 5,320 $ 5,347 $ 5,373 $ 5,400 $ 7,980 $ 9,975 $10,640
Gross margin 80.00% 80.00% 80.00% 80.00% 80.00% 80.00% 80.00%
Operating income $21,280 $21,386 $21,493 $21,599 $31,920 $39,900 $42,560
Expenses
Payroll $ 12,083 $12,083 $12,083 $12,083 $12,083 $12,083 $12,083
General and administrative $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100
Marketing expenses $ 358 $ 358 $ 358 $ 358 $ 358 $ 358 $ 358
Professional fees and licensure $ 435 $ 435 $ 435 $ 435 $ 435 $ 435 $ 435
Insurance costs $ 499 $ 499 $ 499 $ 499 $ 499 $ 499 $ 499
Travel and vehicle costs $ 633 $ 633 $ 633 $ 633 $ 633 $ 633 $ 633
Rent and utilities $ 1,188 $ 1,188 $ 1,188 $ 1,188 $ 1,188 $ 1,188 $ 1,188
Miscellaneous costs $ 179 $ 179 $ 179 $ 179 $ 179 $ 179 $ 179
Payroll taxes $ 1,813 $ 1,813 $ 1,813 $ 1,813 $ 1,813 $ 1,813 $ 1,813
Total operating costs $18,288 $18,288 $18,288 $18,288 $18,288 $18,288 $18,288
EBITDA $ 2,992 $ 3,099 $ 3,205 $ 3,311 $13,632 $21,612 $24,272
Federal income tax $ 2,544 $ 2,556 $ 2,569 $ 2,582 $ 3,816 $ 4,770 $ 5,088
State income tax $ 385 $ 387 $ 389 $ 391 $ 578 $ 723 $ 771
Interest expense $ 750 $ 746 $ 742 $ 738 $ 734 $ 730 $ 726
Depreciation expense $ 342 $ 342 $ 342 $ 342 $ 342 $ 342 $ 342
Net profit $ 1,029 $ 934 $ 838 $ 742 $ 8,162 $15,047 $17,345

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Profit and loss statement (first year cont.)

Month 8 9 10 11 12 1
Sales $56,525 $43,225 $26,600 $26,733 $26,866 $430,122
Cost of goods sold $11,305 $ 8,645 $ 5,320 $ 5,347 $ 5,373 $ 86,024
Gross margin 80.0% 80.0% 80.0% 80.0% 80.0% 80.0%
Operating income $45,220 $34,580 $21,280 $21,386 $21,493 $344,098
Expenses
Payroll $12,083 $12,083 $ 12,083 $12,083 $12,083 $145,000
General and administrative $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 13,200
Marketing expenses $ 358 $ 358 $ 358 $ 358 $ 358 $ 4,301
Professional fees and licensure $ 435 $ 435 $ 435 $ 435 $ 435 $ 5,219
Insurance costs $ 499 $ 499 $ 499 $ 499 $ 499 $ 5,987
Travel and vehicle costs $ 633 $ 633 $ 633 $ 633 $ 633 $ 7,596
Rent and utilities $ 1,188 $ 1,188 $ 1,188 $ 1,188 $ 1,188 $ 14,250
Miscellaneous costs $ 179 $ 179 $ 179 $ 179 $ 179 $ 2,151
Payroll taxes $ 1,813 $ 1,813 $ 1,813 $ 1,813 $ 1,813 $ 21,750
Total operating costs $18,288 $18,288 $18,288 $18,288 $18,288 $219,454
EBITDA $26,932 $16,292 $ 2,992 $ 3,099 $ 3,205 $124,644
Federal income tax $ 5,405 $ 4,134 $ 2,544 $ 2,556 $ 2,569 $ 41,132
State income tax $ 819 $ 626 $ 385 $ 387 $ 389 $ 6,232
Interest expense $ 722 $ 718 $ 714 $ 710 $ 706 $ 8,738
Depreciation expense $ 342 $ 342 $ 342 $ 342 $ 342 $ 4,107
Net profit $19,643 $10,472 $ 993 $ 897 $ 801 $ 64,434

Profit and loss statement (second year)

2
Quarter Q1 Q2 Q3 Q4 2
Sales $94,627 $118,284 $127,746 $132,478 $473,134
Cost of goods sold $ 18,925 $ 23,657 $ 25,549 $ 26,496 $ 94,627
Gross margin 80.0% 80.0% 80.0% 80.0% 80.0%
Operating income $ 75,701 $ 94,627 $102,197 $105,982 $378,507
Expenses
Payroll $ 29,870 $ 37,338 $ 40,325 $ 41,818 $149,350
General and administrative $ 2,746 $ 3,432 $ 3,707 $ 3,844 $ 13,728
Marketing expenses $ 946 $ 1,183 $ 1,277 $ 1,325 $ 4,731
Professional fees and licensure $ 1,075 $ 1,344 $ 1,451 $ 1,505 $ 5,376
Insurance costs $ 1,257 $ 1,572 $ 1,697 $ 1,760 $ 6,286
Travel and vehicle costs $ 1,671 $ 2,089 $ 2,256 $ 2,340 $ 8,356
Rent and utilities $ 2,993 $ 3,741 $ 4,040 $ 4,190 $ 14,963
Miscellaneous costs $ 473 $ 591 $ 639 $ 662 $ 2,366
Payroll taxes $ 4,481 $ 5,601 $ 6,049 $ 6,273 $ 22,403
Total operating costs $45,512 $ 56,889 $ 61,441 $ 63,716 $227,558
EBITDA $30,190 $ 37,737 $ 40,756 $ 42,266 $150,950
Federal income tax $ 9,426 $ 11,783 $ 12,725 $ 13,196 $ 47,130
State income tax $ 1,428 $ 1,785 $ 1,928 $ 1,999 $ 7,141
Interest expense $ 2,092 $ 2,053 $ 2,013 $ 1,973 $ 8,131
Depreciation expense $ 1,027 $ 1,027 $ 1,027 $ 1,027 $ 4,107
Net profit $16,217 $ 21,090 $ 23,063 $ 24,070 $ 84,440

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Profit and loss statement (third year)

3
Quarter Q1 Q2 Q3 Q4 3
Sales $104,090 $130,112 $140,521 $145,725 $520,448
Cost of goods sold $ 20,818 $ 26,022 $ 28,104 $ 29,145 $104,090
Gross margin 80.0% 80.0% 80.0% 80.0% 80.0%
Operating income $ 83,272 $104,090 $112,417 $116,580 $416,358
Expenses
Payroll $ 30,766 $ 38,458 $ 41,534 $ 43,073 $153,831
General and administrative $ 2,855 $ 3,569 $ 3,855 $ 3,998 $ 14,277
Marketing expenses $ 1,041 $ 1,301 $ 1,405 $ 1,457 $ 5,204
Professional fees and licensure $ 1,107 $ 1,384 $ 1,495 $ 1,550 $ 5,537
Insurance costs $ 1,320 $ 1,650 $ 1,782 $ 1,848 $ 6,601
Travel and vehicle costs $ 1,838 $ 2,298 $ 2,482 $ 2,574 $ 9,191
Rent and utilities $ 3,142 $ 3,928 $ 4,242 $ 4,399 $ 15,711
Miscellaneous costs $ 520 $ 651 $ 703 $ 729 $ 2,602
Payroll taxes $ 4,615 $ 5,769 $ 6,230 $ 6,461 $ 23,075
Total operating costs $ 47,206 $ 59,007 $ 63,728 $ 66,088 $236,028
EBITDA $ 36,066 $ 45,082 $ 48,689 $ 50,492 $180,330
Federal income tax $ 11,409 $ 14,261 $ 15,402 $ 15,972 $ 57,044
State income tax $ 1,729 $ 2,161 $ 2,334 $ 2,420 $ 8,643
Interest expense $ 1,932 $ 1,889 $ 1,846 $ 1,802 $ 7,468
Depreciation expense $ 1,027 $ 1,027 $ 1,027 $ 1,027 $ 4,107
Net profit $ 19,970 $ 25,745 $ 28,081 $ 29,272 $103,067

7.11 Three Year Cash Flow Analysis

Cash flow analysis (first year)

Month 1 2 3 4 5 6 7
Cash from operations $ 312 $ 218 $ 125 $ 31 $ 8,871 $15,755 $18,051
Cash from receivables $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Operating cash inflow $ 312 $ 218 $ 125 $ 31 $ 8,871 $15,755 $18,051
Other cash inflows
Equity investment $10,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Increased borrowings $50,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Sales of business assets $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
A/P increases $ 3,159 $ 3,159 $ 3,159 $ 3,159 $ 3,159 $ 3,159 $ 3,159
Total other cash inflows $63,159 $ 3,159 $ 3,159 $ 3,159 $ 3,159 $ 3,159 $ 3,159
Total cash inflow $62,847 $ 2,940 $ 3,034 $ 3,128 $12,030 $18,913 $21,209
Cash outflows
Repayment of principal $ 258 $ 260 $ 262 $ 264 $ 266 $ 268 $ 270
A/P decreases $ 2,075 $ 2,075 $ 2,075 $ 2,075 $ 2,075 $ 2,075 $ 2,075
A/R increases $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Asset purchases $32,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Dividends $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Total cash outflows $34,333 $ 2,335 $ 2,337 $ 2,339 $ 2,341 $ 2,343 $ 2,345
Net cash flow $28,513 $ 605 $ 697 $ 789 $ 9,689 $16,570 $18,864
Cash balance $28,513 $29,119 $29,815 $30,604 $40,293 $56,863 $75,727

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Cash flow analysis (first year cont.)

Month 8 9 10 11 12 1
Cash from operations $20,347 $ 11,173 $ 294 $ 200 $ 106 $ 72,910
Cash from receivables $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Operating cash inflow $20,347 $ 11,173 $ 294 $ 200 $ 106 $ 72,910
Other cash inflows
Equity investment $ 0 $ 0 $ 0 $ 0 $ 0 $ 10,000
Increased borrowings $ 0 $ 0 $ 0 $ 0 $ 0 $ 50,000
Sales of business assets $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
A/P increases $ 3,159 $ 3,159 $ 3,159 $ 3,159 $ 3,159 $ 37,902
Total other cash inflows $ 3,159 $ 3,159 $ 3,159 $ 3,159 $ 3,159 $ 97,902
Total cash inflow $23,505 $ 14,332 $ 2,864 $ 2,958 $ 3,052 $170,812
Cash outflows
Repayment of principal $ 272 $ 273 $ 276 $ 278 $ 281 $ 3,232
A/P decreases $ 2,075 $ 2,075 $ 2,075 $ 2,075 $ 2,075 $ 24,897
A/R increases $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Asset purchases $ 0 $ 0 $ 0 $ 0 $ 0 $ 32,000
Dividends $ 0 $ 0 $ 0 $ 0 $51,037 $ 51,037
Total cash outflows $ 2,347 $ 2,348 $ 2,351 $ 2,353 $53,392 $111,166
Net cash flow $21,158 $ 11,984 $ 513 $ 605 $50,340 $ 59,646
Cash balance $96,886 $108,869 $109,383 $109,988 $59,648 $ 59,646

Cash flow analysis (second year)

2
Quarter Q1 Q2 Q3 Q4 2
Cash from operations $18,214 $22,767 $24,588 $25,499 $ 91,068
Cash from receivables $ 0 $ 0 $ 0 $ 0 $ 0
Operating cash inflow $18,214 $22,767 $24,588 $25,499 $ 91,068
Other cash inflows
Equity investment $ 0 $ 0 $ 0 $ 0 $ 0
Increased borrowings $ 0 $ 0 $ 0 $ 0 $ 0
Sales of business assets $ 0 $ 0 $ 0 $ 0 $ 0
A/P increases $ 8,717 $10,897 $11,769 $12,204 $ 43,587
Total other cash inflows $ 8,717 $10,897 $11,769 $12,204 $ 43,587
Total cash inflow $26,931 $33,664 $36,357 $37,704 $134,655
Cash outflows
Repayment of principal $ 854 $ 874 $ 893 $ 914 $ 3,535
A/P decreases $ 5,975 $ 7,469 $ 8,067 $ 8,365 $ 29,876
A/R increases $ 0 $ 0 $ 0 $ 0 $ 0
Asset purchases $ 4,553 $ 5,692 $ 6,147 $ 6,375 $ 22,767
Dividends $12,750 $15,937 $17,212 $17,849 $ 63,748
Total cash outflows $24,132 $29,971 $32,319 $33,503 $119,926
Net cash flow $ 2,799 $ 3,692 $ 4,038 $ 4,200 $ 14,729
Cash balance $62,445 $66,138 $70,175 $74,376 $ 74,376

14 B U S I N E S S P L A N S H A N D B O O K , Volume 22

(c) 2012 Cengage Learning. All Rights Reserved.

 BURGER STAND

Cash flow analysis (third year)

3
Quarter Q1 Q2 Q3 Q4 3
Cash from operations $21,898 $27,372 $29,562 $30,657 $ 109,489
Cash from receivables $ 0 $ 0 $ 0 $ 0 $ 0
Operating cash inflow $21,898 $27,372 $29,562 $30,657 $109,489
Other cash inflows
Equity investment $ 0 $ 0 $ 0 $ 0 $ 0
Increased borrowings $ 0 $ 0 $ 0 $ 0 $ 0
Sales of business assets $ 0 $ 0 $ 0 $ 0 $ 0
A/P increases $10,025 $12,531 $13,534 $14,035 $ 50,125
Total other cash inflows $10,025 $12,531 $13,534 $14,035 $ 50,125
Total cash inflow $31,923 $39,904 $43,096 $44,692 $159,615
Cash outflows
Repayment of principal $ 934 $ 956 $ 977 $ 999 $ 3,866
A/P decreases $ 7,170 $ 8,963 $ 9,680 $10,038 $ 35,852
A/R increases $ 0 $ 0 $ 0 $ 0 $ 0
Asset purchases $ 5,474 $ 6,843 $ 7,391 $ 7,664 $ 27,372
Dividends $15,329 $19,161 $20,693 $21,460 $ 76,643
Total cash outflows $28,908 $35,922 $38,741 $40,162 $143,733
Net cash flow $ 3,015 $ 3,982 $ 4,355 $ 4,530 $ 15,882
Cash balance $77,391 $81,373 $85,727 $90,258 $ 90,258

B U S I N ES S P L A NS H AN D BO O K, Volume 22 15

(c) 2012 Cengage Learning. All Rights Reserved.