SCORE Financial Projection Model Please read this entire page before you do anything else

This spreadsheet walks you through the process of developing an integrated set of financial projections. To use this model, simply complete any information asked for found in the color yellow. Example: Fill in boxes that look like this A number found in the color green is optional information that you can complete. Example: Check these assumptions Otherwise, any information found in black type is automatically calculated for you. Although the cells that are calculated are locked (or protected), you can turn off this protection to modify the sheets. To do this, select "Tools" from the menu bar at the top of the screen. Then select, "Protection." Finally, select "Unprotect Sheet" and you will be able to edit any labels or formulas. With Office2007, Click "Review" tab, then "Unprotect" or "Protect" to allow entry of data by month in Year 1. Before you begin, we need some information about your business to best customize your financial statements. Please enter the name of your business in the box below: EXPERIMENT W/SCORE TEMPLATE The first six worksheets in this workbook are steps you will need to complete. They are titled:

1. Required Start-Up Funds - Do not enter ongoing monthly expenses, they will be on Sheets 2 & 3
Alter Depreciation years, interest rates and payment terms to reflect your business Owners Equity contribution includes Cash and Other Assets put into the business entity, such as Fixed Assets or prepaid expenses (Other Fixed Assets) that will Fixed Assets label) that will be Amortized as the business begins operations. Time and costs incurred by the owner up to this point may be entered as Other Initial Start-Up Costs and offset by Owner's Equity to reflect "Value" so equity of 51% can be justified as members (LLC) or shareholders (S Corp) are admitted for cash or services.

2. Salaries and Wages - Enter estimated Monthly wages for employees plus
Salaries should be consistent with Sales Growth to support the level projected. Adjust rates and percentage change for Years 2 & 3 The Schedule C Tax Return will not reflect salaries of owner as a cost for Sole Proprietors or LLC's.

3. Fixed Operating Expenses - Enter Monthly costs in expenses. You can NOT add lines or the formulas will malfunction - change labels.
Adjust "Percent Change" for Years 2 & 3. Other Expenses are 'automatically' calculated from Sheet 1 - Start-up Funds. You CAN enter data by Month for Year 1 (sales, salaries, expenses) IF you Unprotect Sheet 8, the Income Statement!

4. & 5. Projected Sales Forecast (2 sheets) - Sales are entered by months using "Units of Sales". Enter the # of units for year one,
then the Price Per Unit, Variable Cost per Unit (If it exists - services do plus NOT Owners have asalary COG),or finally 'Draw your on Equity'. projected Cannot growth plan for by Years month 2 & here 3. IF you provide SERVICES, then enter the Price per Unit as $1 with no COG, then under Projected Unit Sales enter "Dollar" estimates.

6. Cash Receipts and Disbursements - This is really a statement of collection/payable expectations. Enter minimum cash balance
to keep on hand. Leave Income Tax rate at 'Zero' since small business entities are "Pass Thru" and pay no income taxes. Amortization of Start-up expenses is 5 years by default. The IRS code is 15 years for amounts over $5,000, deduct in first year up to $50,000 maximum.

7. Sheets 7 (there is no 7) to 21 use the input of the first 6 worksheets and calculates the content automatically.
Sheet 18 enter RMA (Risk Management Association) ratios for your NAICS code for your business.

Begin by clicking on the tabs below

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INDEX OF SHEETS
0 Introduction 1 Required Start-up Funds Need loan rates and terms 2 Salaries and Wages Full & Part-time, SS/Medicar and other 3 Fixed Operating Expenses Plus "Other" of Depreciation & Interest 4 Projected Sales Products A & B, COG, Growth Year 2 & 3 5 Projected Sales -2 Products C & D, COG, Growth Year 2 & 3 6 Cash Receipts/Disbursements A/R, A/P, Interest %, and Start-up Amortization 7 Hidden from use 8 Income Statement Income, Cost of Goods, Fixed Expenses, Other Expenses 9 Cash Flow Statement Show as "Line of Credit" any deficiency in Start-Up cash 10 Balance Sheet Base and End of First Year 11 Year End Summary-Income StmtEOY's 1, 2, & 3 12 Income Statement - Year 2 13 Cash Flow Stmt - Year 2 14 Balance Sheet - EOY 1 & 2 15 Income Statement - Year 3 16 Cash Flow Stmt - Year 3 17 Balance Sheet - EOY 2 & 3 18 Financial Rations Years 1, 2 &3 plus RMA 19 Break-Even Analysis 20 Amortization Schedule Principal and Interest on all loans for three years 21 Financial Diagnosis Computer 'reasonableness' test

EXPERIMENT W/SCORE TEMPLATE Required Start-Up Funds for a New Business or Opening Balance Sheet for an Existing Business
Required Start-Up Funds Fixed Assets Real Estate-Land Buildings Leasehold Improvements Equipment Furniture and Fixtures Vehicles Other Fixed Assets Total Fixed Assets Operating Capital Pre-Opening Salaries and Wages Prepaid Insurance Premiums Inventory Legal and Accounting Fees Rent Deposits Utility Deposits Supplies Advertising and Promotions Licenses Other Initial Start-Up Costs Working Capital (Cash On Hand) Total Operating Capital Total Required Funds Amount $ Amortized Start-up Amortized Start-up Amortized Start-up Amortized Start-up Amortized Start-up Amortized Start-up Amortized Start-up Amortized Start-up Amortized Start-up Amortized Start-up this is the owners research, time, etc. to get to this point. For existing businesses = Cash+Ppd Exp+A/R-A/P-Accrd Exp See Note below# $ Totals Depreciation Notes

8-Jul-13

20.00 7.00 7.00 5.00 5.00 5.00

years years years years years years

Sources of Funding Owner's Equity Outside Investors Additional Loans or Debt Commercial Loan Commercial Mortgage Credit Card Debt Vehicle Loans Other Bank Debt Total Sources of Funding

Amount 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% $

Totals -

Loan Rate

Term in Months

Monthly Payments

5.00% 8.00% 7.00% 6.00% 5.00%

84.00 240.00 60.00 48.00 36.00

$0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Note#: For existing businesses, this should be the "bucket" of cash plus recievables that will be turned into cash or payables paid out in cash in the near term (i.e. in the first month of the plan)

EXPERIMENT W/SCORE TEMPLATE Salaries and Wages

8-Jul-13

Salaries and Related Expenses Percent Change Salaries and Wages Owner's Compensation Salaries Wages Full-Time Employees Estimated Hours Per Week Estimated Rate Per Hour Part-Time Employees Estimated Hours Per Week Estimated Rate Per Hour Independent Contractors Total Salaries and Wages Payroll Taxes and Benefits Social Security Medicare Federal Unemployment Tax (FUTA) State Unemployment Tax (SUTA) Employee Pension Programs Worker's Compensation Employee Health Insurance Other Employee Benefit Programs Total Payroll Taxes and Benefits

Assumptions

Wage Base

Monthly

Year One

Year Two 3.00%

Year Three 3.00%

0 0 0 $ 0 $ 0 20.00 9.00 40.00 9.00

6.20% 1.45% 0.80% 2.70% 0.00% 0.00% 0.00% 4.00%

$ $ $

102,000 7,000 7,000

Total Salaries and Related Expenses

EXPERIMENT W/SCORE TEMPLATE Fixed Operating Expenses

8-Jul-13

Fixed Operating Expenses Percent Change Years 2 & 3 > Expenses Advertising Car and Truck Expenses Bank & Merchant Fees Contract Labor Conferences & Seminars Customer Discounts and Refunds Dues and Subscriptions Miscellaneous Insurance (Liability and Property) Licenses/Fees/Permits Legal and Professional Fees Office Expenses & Supplies Postage and Delivery Rent (on business property) Rent of Vehicles and Equipment Sales & Marketing Taxes-Other Telephone and Communications Travel Utilities Total Expenses Other Expenses Depreciation from Sheet 1 Interest Commercial Loan Commercial Mortgage Line of Credit Credit Card Debt Vehicle Loans Other Bank Debt Total Other Expenses

Monthly

Year One

Year Two 3.00%

Year Three 4.00%

Notes

Total Fixed Operating Expenses

EXPERIMENT W/SCORE TEMPLATE Projected Sales Forecast

8-Jul-13

Products and Services Product/Service A Price Per Unit $ Variable Cost Per Unit $ Gross Margin Per Unit $ Projected Unit Sales Seasonality Factor Year One Year Two Growth Year Three Growth Fixed Expense Allocation Projected Revenue Variable Costs Gross Margin Fixed Expenses Profit $

Assumptions

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Totals

100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -

25.00% 25.00% 50.00% -

0.00%

Breakeven Sales Revenue $ Breakeven Sales Units

Product/Service B Price Per Unit $ Variable Cost Per Unit $ Gross Margin Per Unit $ Projected Unit Sales Seasonality Factor Year One Year Two Growth Year Three Growth Fixed Expense Allocation Projected Revenue Variable Costs Gross Margin Fixed Expenses Profit $

100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -

25.00% 25.00% 16.67% -

0.00%

Breakeven Sales Revenue $ Breakeven Sales Units

EXPERIMENT W/SCORE TEMPLATE Projected Sales Forecast - Page 2

8-Jul-13

Products and Services Product/Service C Price Per Unit $ Variable Cost Per Unit $ Gross Margin Per Unit $ Projected Unit Sales Seasonality Factor Year One Year Two Growth Year Three Growth Fixed Expense Allocation Projected Revenue Variable Costs Gross Margin Fixed Expenses Profit $

Assumptions

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Totals

100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -

10.00% 10.00% 16.67% -

0.00%

Breakeven Sales Revenue $ Breakeven Sales Units

Product/Service D Price Per Unit Variable Cost Per Unit $ Gross Margin Per Unit $ Projected Unit Sales Seasonality Factor Year One Year Two Growth Year Three Growth Fixed Expense Allocation Projected Revenue Variable Costs Gross Margin Fixed Expenses Profit $

100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -

10.00% 10.00% 16.67% -

0.00%

Breakeven Sales Revenue $ Breakeven Sales Units

EXPERIMENT W/SCORE TEMPLATE Cash Receipts and Disbursements

8-Jul-13

Accounts Receivable Collections Percent of Collections 0 to 30 days 31 to 60 days More than 60 days Total Collections Percentage Accounts Payable Disbursements Number of Days to Pay Suppliers 0 to 30 days 31 to 60 days More than 60 days Total Disbursements Percentage Line of Credit Assumptions Desired Minimum Cash Balance Line of Credit Interest Rate Income Tax Assumptions Effective Income Tax Rate Amortization of Start-Up Expenses Amortization Period in Years

100.00% 0.00% 0.00% 100.00%

100.00% 0.00% 0.00% 100.00%

6.00%

0.00%

No tax on Sml Bus.

E -

5.00

Irs is 15 Yrs $5-50,000

EXPERIMENT W/SCORE TEMPLATE Projected Income Statement - Year One

Jan Income Product/Service A Product/Service B

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Totals

Total Income Cost of Sales Product/Service A Product/Service B

Total Cost of Sales Gross Margin Total Salary and Wages Unlock to enter by month Fixed Business Expenses Advertising Car and Truck Expenses Bank & Merchant Fees Contract Labor Conferences & Seminars Customer Discounts and Refunds Dues and Subscriptions Miscellaneous Insurance (Liability and Property) Licenses/Fees/Permits Legal and Professional Fees Office Expenses & Supplies Postage and Delivery Rent (on business property) Rent of Vehicles and Equipment Sales & Marketing Taxes-Other Telephone and Communications Travel Utilities Total Fixed Business Expenses Other Expenses Amortized Start-up Expenses Depreciation Interest Commercial Loan Commercial Mortgage

EXPERIMENT W/SCORE TEMPLATE Projected Income Statement - Year One

Jan Line of Credit Credit Card Debt Vehicle Loans Other Bank Debt Taxes Total Other Expenses Net Income -

Feb -

Mar -

Apr -

May -

Jun -

Jul

Aug -

Sep -

Oct -

Nov -

Dec -

Totals -

EXPERIMENT W/SCORE TEMPLATE Projected Cash Flow Statement - Year One

Jan Beginning Cash Balance Cash Inflows Income from Sales Accounts Receivable Total Cash Inflows Cash Outflows Investing Activities New Fixed Assets Purchases Inventory Addition to Bal.Sheet Cost of Sales Operating Activities Salaries and Wages Fixed Business Expenses Taxes Financing Activities Loan Payments Line of Credit Interest Line of Credit Repayments Dividends Paid Total Cash Outflows Cash Flow Operating Cash Balance Line of Credit Drawdowns Ending Cash Balance -

Feb -

Mar -

Apr -

May -

Jun -

Jul

Aug -

Sep -

Oct -

Nov -

Dec -

Totals

Line of Credit Balance

Amt = shortage of cash!

EXPERIMENT W/SCORE TEMPLATE Balance Sheet - Year One

Base Period

End of Year One

Start-Up Funding
Assets Current Assets Cash Accounts Receivable Inventory Prepaid Expenses Other Current Total Current Assets Fixed Assets Real Estate-Land Buildings Leasehold Improvements Equipment Furniture and Fixtures Vehicles Other Fixed Assets Total Fixed Assets Less: Accumulated Depreciation Total Assets

Liabilities and Owner's Equity Liabilities Accounts Payable Loan Payable Mortgage Payable Credit Card Debt Vehicle Loans Other Bank Debt Line of Credit Balance Total Liabilities Owner's Equity Common Stock Retained Earnings Dividends Dispersed Total Owner's Equity Total Liabilities and Owner's Equity

Statement Balances

Statement Balances

EXPERIMENT W/SCORE TEMPLATE Year End Summary

Year One Income Product/Service A Product/Service B

Year Two

Year Three

Total Income Cost of Sales Product/Service A Product/Service B

100.00%

100.00%

100.00%

Total Cost of Sales Gross Margin

0.00% 0.00% 0.00%

0.00% 0.00% 0.00%

0.00% 0.00% 0.00%

Compare to RMA by NAICS

Total Salary and Wages Fixed Business Expenses Advertising Car and Truck Expenses Bank & Merchant Fees Contract Labor Conferences & Seminars Customer Discounts and Refunds Dues and Subscriptions Miscellaneous Insurance (Liability and Property) Licenses/Fees/Permits Legal and Professional Fees Office Expenses & Supplies Postage and Delivery Rent (on business property) Rent of Vehicles and Equipment Sales & Marketing Taxes-Other Telephone and Communications Travel Utilities Total Fixed Business Expenses Operating Income (before Other Expenses) [EBITDA] Other Expenses Amortized Start-up Expenses Depreciation

0.00% 0.00%

0.00% 0.00%

0.00% 0.00%

EXPERIMENT W/SCORE TEMPLATE Year End Summary

Year One Interest Commercial Loan Commercial Mortgage Line of Credit Credit Card Debt Vehicle Loans Other Bank Debt Taxes Total Other Expenses Net Income -

Year Two -

Year Three -

0.00% 0.00%

0.00% 0.00%

0.00% 0.00%

EXPERIMENT W/SCORE TEMPLATE Projected Income Statement - Year Two

Jan Income Product/Service A Product/Service B

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Totals

Total Income Cost of Sales Product/Service A Product/Service B

Total Cost of Sales Gross Margin Total Salary and Wages Fixed Business Expenses Advertising Car and Truck Expenses Bank & Merchant Fees Contract Labor Conferences & Seminars Customer Discounts and Refunds Dues and Subscriptions Miscellaneous Insurance (Liability and Property) Licenses/Fees/Permits Legal and Professional Fees Office Expenses & Supplies Postage and Delivery Rent (on business property) Rent of Vehicles and Equipment Sales & Marketing Taxes-Other Telephone and Communications Travel Utilities Total Fixed Business Expenses Other Expenses Amortized Start-up Expenses Depreciation Interest Commercial Loan Commercial Mortgage

EXPERIMENT W/SCORE TEMPLATE Projected Income Statement - Year Two

Jan Line of Credit Credit Card Debt Vehicle Loans Other Bank Debt Taxes Total Other Expenses Net Income -

Feb -

Mar -

Apr -

May -

Jun -

Jul

Aug -

Sep -

Oct -

Nov -

Dec -

Totals -

EXPERIMENT W/SCORE TEMPLATE Projected Cash Flow Statement - Year Two

Jan Beginning Cash Balance Cash Inflows Income from Sales Accounts Receivable Total Cash Inflows Cash Outflows Investing Activities New Fixed Assets Purchases Inventory Addition to Bal. Sheet Cost of Sales Operating Activities Salaries and Wages Fixed Business Expenses Taxes Financing Activities Loan Payments Line of Credit Interest Line of Credit Repayments Dividends Paid Total Cash Outflows Cash Flow Operating Cash Balance Line of Credit Drawdowns Ending Cash Balance -

Feb -

Mar -

Apr -

May -

Jun -

Jul

Aug -

Sep -

Oct -

Nov -

Dec -

Totals

Line of Credit Balance

EXPERIMENT W/SCORE TEMPLATE Balance Sheet - Year Two

End of Year One Assets Current Assets Cash Accounts Receivable Inventory Prepaid Expenses Other Current Total Current Assets Fixed Assets Real Estate-Land Buildings Leasehold Improvements Equipment Furniture and Fixtures Vehicles Other Fixed Assets Total Fixed Assets Less: Accumulated Depreciation Total Assets

End of Year Two

Liabilities and Owner's Equity Liabilities Accounts Payable Notes Payable Mortgage Payable Credit Card Debt Vehicle Loans Other Bank Debt Line of Credit Balance Total Liabilities Owner's Equity Common Stock Retained Earnings Dividends Dispersed Total Owner's Equity Total Liabilities and Owner's Equity

Statement Balances

Statement Balances

EXPERIMENT W/SCORE TEMPLATE Projected Income Statement - Year Three

Jan Income Product/Service A Product/Service B

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Totals

Total Income Cost of Sales Product/Service A Product/Service B

Total Cost of Sales Gross Margin Total Salary and Wages Fixed Business Expenses Advertising Car and Truck Expenses Bank & Merchant Fees Contract Labor Conferences & Seminars Customer Discounts and Refunds Dues and Subscriptions Miscellaneous Insurance (Liability and Property) Licenses/Fees/Permits Legal and Professional Fees Office Expenses & Supplies Postage and Delivery Rent (on business property) Rent of Vehicles and Equipment Sales & Marketing Taxes-Other Telephone and Communications Travel Utilities Total Fixed Business Expenses Other Expenses Amortized Start-up Expenses Depreciation Interest Commercial Loan Commercial Mortgage

EXPERIMENT W/SCORE TEMPLATE Projected Income Statement - Year Three

Jan Line of Credit Credit Card Debt Vehicle Loans Other Bank Debt Taxes Total Other Expenses Net Income -

Feb -

Mar -

Apr -

May -

Jun -

Jul

Aug -

Sep -

Oct -

Nov -

Dec -

Totals -

EXPERIMENT W/SCORE TEMPLATE Projected Cash Flow Statement - Year Three

Jan Beginning Cash Balance Cash Inflows Income from Sales Accounts Receivable Total Cash Inflows Cash Outflows Investing Activities New Fixed Assets Purchases Inventory Addition to Bal.Sheet Cost of Sales Operating Activities Salaries and Wages Fixed Business Expenses Taxes Financing Activities Loan Payments Line of Credit Interest Line of Credit Repayments Dividends Paid Total Cash Outflows Cash Flow Operating Cash Balance Line of Credit Drawdowns Ending Cash Balance -

Feb -

Mar -

Apr -

May -

Jun -

Jul

Aug -

Sep -

Oct -

Nov -

Dec -

Totals

Line of Credit Balance

EXPERIMENT W/SCORE TEMPLATE Balance Sheet - Year Three

End of Year Two Assets Current Assets Cash Accounts Receivable Inventory Prepaid Expenses Other Current Total Current Assets Fixed Assets Real Estate-Land Buildings Leasehold Improvements Equipment Furniture and Fixtures Vehicles Other Fixed Assets Total Fixed Assets Less: Accumulated Depreciation Total Assets

End of Year Three

Liabilities and Owner's Equity Liabilities Accounts Payable Notes Payable Mortgage Payable Credit Card Debt Vehicle Loans Other Bank Debt Line of Credit Balance Total Liabilities Owner's Equity Common Stock Retained Earnings Dividends Dispersed Total Owner's Equity Total Liabilities and Owner's Equity

Statement Balances

Statement Balances

EXPERIMENT W/SCORE TEMPLATE Financial Ratios

Ratio Liquidity Current Ratio Quick Ratio Safety Debt to Equity Ratio Debt to Coverage Ratio Profitability Sales Growth COGS to Sales Gross Profit Margin SG&A to Sales Net Profit Margin Return on Equity Return on Assets Owner's Compensation to Sales Efficiency Days in Receivables Accounts Receivable Turnover Days in Inventory Inventory Turnover Sales to Total Assets

Year One 0.0 0.0 0.0 0.0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0 0.0 0.0 0.0 0.0

Year Two 0.0 0.0 0.0 0.0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0 0.0 0.0 0.0 0.0

Year Three 0.0 0.0 0.0 0.0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0 0.0 0.0 0.0 0.0

RMA Industry Norms

Use your Busines NAICS

Code

EXPERIMENT W/SCORE TEMPLATE Breakeven Analysis

Breakeven Analysis Annual Sales Revenue Cost of Sales Gross Margin Salaries and Wages Fixed Operating Expenses Total Fixed Business Expenses Breakeven Sales Calculation

Dollars 0.00%

Percent 100.00% 0.00% 0.00%

Breakeven Sales in Dollars

EXPERIMENT W/SCORE TEMPLATE Amortization Schedule

Loan Type Commercial Loan Principal Amount $ Interest Rate Loan Term in Months Monthly Payment Amount Year One Interest Principal Loan Balance Year Two Interest Principal Loan Balance Year Three Interest Principal Loan Balance

Assumptions

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Totals

5.00% 84.00 $0.00

Commercial Mortgage Principal Amount $ Interest Rate Loan Term in Months Monthly Payment Amount Year One Interest Principal Loan Balance Year Two Interest Principal Loan Balance Year Three Interest Principal Loan Balance

8.00% 240.00 $0.00

Credit Card Debt Principal Amount $ Interest Rate Loan Term in Months Monthly Payment Amount

7.00% 60.00 $0.00

Year One Interest Principal Loan Balance Year Two Interest Principal Loan Balance Year Three Interest Principal Loan Balance

Vehicle Loans Principal Amount $ Interest Rate Loan Term in Months Monthly Payment Amount Year One Interest Principal Loan Balance Year Two Interest Principal Loan Balance Year Three Interest Principal Loan Balance

6.00% 48.00 $0.00

Other Bank Debt Principal Amount $ Interest Rate Loan Term in Months Monthly Payment Amount Year One Interest Principal Loan Balance Year Two Interest Principal Loan Balance Year Three Interest Principal Loan Balance

5.00% 36.00 $0.00

EXPERIMENT W/SCORE TEMPLATE Financial Diagnostics

This sheet performs a few tests on your numbers to see if they seem within certain reasonable ranges. Remember, no computer can tell whether your projections are truly well-constructed, only a human can do that. But these tests can at least look for values that are critically out of range.

Financial Diagnostics General Financing Assumptions Owner's Cash Injection into the Business Cash Request as percent of Total Required Funds Loan Assumptions Commercial Loan Interest rate Commercial Loan Term in Months Commercial Mortgage Interest rate Commercial Mortgage Term in Months Loan Payments as a Percent of Projected Sales Income Statement Gross Margin as a Percent of Sales Owner's Compensation Lower Limit Check $ Owner's Compensation Upper Limit Check Advertising Expense Levels as a Percent of Sales Profitability Levels $ Profitability as a Percent of Sales Cash Flow Statement Desired Operating cash Flow Levels Line of Credit Drawdowns Accounts Receivable Ratio to Sales Balance Sheet Does the Base Period Balance Sheet Balance? Does the Final Balance Sheet Balance Debt to Equity Ratio Breakeven Analysis Breakeven Levels

Value 0.0% 0.0%

Findings Owner's injection might be too low in relation to the amount of money needed Cash request seems reasonable with respect to total request

5.0% 84 8.0% 240 0.0%

Interest rate may be too low for the type of loan requested Loan term seems within range for this type of loan Interest rate seems reasonable Loan term seems within range for this type of loan Calculated loan payments as a percent of sales seem resonable

0.0% 0.0% 0.0% 0.0%

Gross margin percentage seems very low An owner's compensation amount has not been established Owner's compensation seems reasonable Advertising as a percent of sales may be too low The business is showing a profit The projection does not seem highly unreasonable

$ $

0.0%

The financial projection provides the desired level of cash flow The business doesn't seem to require a line of credit Accounts receivable amount as a percent of sales seems reasonable

0.0%

The balance sheet does balance The balance sheet does balance The debt to equity ratio seems reasonable

The sales projection is less than the break-even amount