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Sample Chart of Accounts for Florist
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Red, White & Bloom
Financial Plan
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- Contracted Labor and Hire brand upward over 40% of the operating expenses.
- Red White & Blossom wants to finance growth through cash flow.
- Marketing will remain at or below vi% of sales.
- Company expansion, while non a necessity, volition exist an choice if sales projections are met and/or exceeded.
seven.1 Intermission-fifty-fifty Analysis
For our interruption-even analysis, we assume running costs which include our full payroll, rent, and utilities, and an interpretation of other running costs. The chart shows what we demand to sell per month to break fifty-fifty, according to these assumptions.
| Break-even Analysis | |
| Monthly Acquirement Interruption-even | $five,085 |
| Assumptions: | |
| Average Per centum Variable Toll | xxx% |
| Estimated Monthly Fixed Cost | $3,560 |
7.2 Projected Profit and Loss
This business program assumes an eventual ten% profit and is congenital using the following allocations of gross acquirement:
- 10% profit
- thirty% labor (including possessor’s describe)
- 10% inventory
- 27% overhead
- 23% cost of merchandise
| Pro Forma Turn a profit and Loss | |||
| Year i | Year 2 | Yr 3 | |
| Sales | $79,600 | $137,200 | $166,600 |
| Direct Cost of Sales | $23,880 | $41,160 | $49,830 |
| Other Costs of Goods | $0 | $0 | $0 |
| Total Price of Sales | $23,880 | $41,160 | $49,830 |
| Gross Margin | $55,720 | $96,040 | $116,770 |
| Gross Margin % | 70.00% | seventy.00% | 70.09% |
| Expenses | |||
| Payroll | $0 | $0 | $0 |
| Marketing & Advertising | $4,640 | $6,860 | $8,330 |
| Depreciation | $one,150 | $i,150 | $1,150 |
| Rent | $iv,800 | $7,800 | $eight,400 |
| Delivery Labor | $five,000 | $eight,500 | $x,200 |
| Temp Labor | $768 | $1,000 | $1,000 |
| Contracted Floral Designer | $0 | $17,000 | $18,200 |
| Insurance | $3,390 | $four,068 | $4,068 |
| Ante & Subscriptions | $250 | $300 | $300 |
| Repairs & Maintenance | $one,000 | $i,200 | $1,200 |
| Supplies | $2,650 | $five,488 | $6,944 |
| Taxes | $1,330 | $2,000 | $2,500 |
| Other Fees | $ane,500 | $1,800 | $one,800 |
| Buildout Costs | $9,000 | $0 | $0 |
| Deposits | $ane,000 | $0 | $0 |
| Utilities | $3,500 | $four,200 | $4,200 |
| Van | $1,410 | $ane,692 | $1,692 |
| Merchant Fees | $1,330 | $ii,744 | $three,472 |
| Total Operating Expenses | $42,718 | $65,802 | $73,456 |
| Profit Before Involvement and Taxes | $13,002 | $30,238 | $43,314 |
| EBITDA | $fourteen,152 | $31,388 | $44,464 |
| Interest Expense | $2,156 | $1,404 | $711 |
| Taxes Incurred | $iii,254 | $8,650 | $12,781 |
| Net Profit | $7,592 | $20,184 | $29,822 |
| Net Profit/Sales | 9.54% | fourteen.71% | 17.90% |
7.three Projected Cash Flow
The Cash Flow tabular array, below, shows a solid cash residue from day ane. Because Ruddy White & Flower will sell on a cash-basis only, and will stock simply slightly more than one calendar month’s inventory at whatsoever time, we practise not anticipate any problems with cash menses, one time we accept obtained sufficient start-upward funds.
| Pro Forma Greenbacks Flow | |||
| Year 1 | Year 2 | Yr three | |
| Cash Received | |||
| Greenbacks from Operations | |||
| Cash Sales | $79,600 | $137,200 | $166,600 |
| Subtotal Cash from Operations | $79,600 | $137,200 | $166,600 |
| Additional Cash Received | |||
| Sales Revenue enhancement, VAT, HST/GST Received | $0 | $0 | $0 |
| New Electric current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-complimentary) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Avails | $0 | $0 | $0 |
| Sales of Long-term Avails | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| Subtotal Cash Received | $79,600 | $137,200 | $166,600 |
| Expenditures | Year 1 | Year two | Twelvemonth 3 |
| Expenditures from Operations | |||
| Cash Spending | $0 | $0 | $0 |
| Pecker Payments | $64,913 | $117,356 | $135,553 |
| Subtotal Spent on Operations | $64,913 | $117,356 | $135,553 |
| Boosted Cash Spent | |||
| Sales Taxation, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Main Repayment of Current Borrowing | $15,000 | $13,860 | $13,860 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Main Repayment | $0 | $0 | $0 |
| Buy Other Electric current Assets | $0 | $0 | $0 |
| Purchase Long-term Avails | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| Subtotal Cash Spent | $79,913 | $131,216 | $149,413 |
| Net Cash Flow | ($313) | $5,984 | $17,187 |
| Cash Balance | $70,037 | $76,021 | $93,208 |
seven.4 Projected Balance Sheet
The Balance Sheet, below, shows our projected assets and liabilities for the three years of the program, including accumulated depreciation of long-term assets.
| Pro Forma Remainder Sheet | |||
| Year 1 | Year ii | Year three | |
| Assets | |||
| Current Avails | |||
| Cash | $70,037 | $76,021 | $93,208 |
| Inventory | $3,947 | $half dozen,803 | $8,236 |
| Other Current Assets | $0 | $0 | $0 |
| Full Current Assets | $73,984 | $82,824 | $101,444 |
| Long-term Assets | |||
| Long-term Avails | $11,550 | $11,550 | $11,550 |
| Accumulated Depreciation | $i,150 | $2,300 | $3,450 |
| Total Long-term Assets | $x,400 | $9,250 | $8,100 |
| Full Assets | $84,384 | $92,074 | $109,544 |
| Liabilities and Upper-case letter | Twelvemonth 1 | Twelvemonth 2 | Twelvemonth 3 |
| Electric current Liabilities | |||
| Accounts Payable | $8,392 | $9,758 | $eleven,265 |
| Current Borrowing | $35,000 | $21,140 | $vii,280 |
| Other Current Liabilities | $0 | $0 | $0 |
| Subtotal Electric current Liabilities | $43,392 | $30,898 | $18,545 |
| Long-term Liabilities | $0 | $0 | $0 |
| Total Liabilities | $43,392 | $30,898 | $18,545 |
| Paid-in Capital letter | $45,000 | $45,000 | $45,000 |
| Retained Earnings | ($eleven,600) | ($4,008) | $16,176 |
| Earnings | $7,592 | $xx,184 | $29,822 |
| Full Uppercase | $40,992 | $61,176 | $ninety,999 |
| Full Liabilities and Majuscule | $84,384 | $92,074 | $109,544 |
| Net Worth | $40,992 | $61,176 | $90,999 |
vii.five Business Ratios
Business ratios for the years of this program are shown below. Industry contour ratios based on the Standard Industrial Classification (SIC) code 5992, Florists, are shown for comparing.
| Ratio Analysis | ||||
| Yr 1 | Year ii | Year 3 | Industry Profile | |
| Sales Growth | 0.00% | 72.36% | 21.43% | 0.24% |
| Percent of Total Assets | ||||
| Inventory | 4.68% | 7.39% | 7.52% | 36.28% |
| Other Current Avails | 0.00% | 0.00% | 0.00% | 24.49% |
| Total Current Assets | 87.68% | 89.95% | 92.61% | 76.91% |
| Long-term Assets | 12.32% | 10.05% | vii.39% | 23.09% |
| Full Assets | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 51.42% | 33.56% | 16.93% | 39.45% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | eleven.77% |
| Total Liabilities | 51.42% | 33.56% | 16.93% | 51.22% |
| Internet Worth | 48.58% | 66.44% | 83.07% | 48.78% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | lxx.00% | 70.00% | 70.09% | 38.48% |
| Selling, General & Administrative Expenses | #VALUE! | 68.09% | #VALUE! | 23.26% |
| Advert Expenses | 0.00% | 0.00% | 0.00% | ii.12% |
| Profit Before Interest and Taxes | xvi.33% | 22.04% | 26.00% | 1.54% |
| Main Ratios | ||||
| Current | 1.71 | 2.68 | 5.47 | ane.68 |
| Quick | one.61 | 2.46 | v.03 | 0.68 |
| Total Debt to Total Assets | 51.42% | 33.56% | 16.93% | 57.66% |
| Pre-tax Render on Cyberspace Worth | 26.46% | 47.13% | 46.82% | 3.25% |
| Pre-taxation Return on Assets | 12.85% | 31.32% | 38.89% | 7.68% |
| Boosted Ratios | Year 1 | Year ii | Twelvemonth 3 | |
| Internet Profit Margin | ix.54% | 14.71% | 17.90% | n.a |
| Return on Equity | 18.52% | 32.99% | 32.77% | n.a |
| Activity Ratios | ||||
| Inventory Turnover | 9.79 | 7.66 | six.63 | due north.a |
| Accounts Payable Turnover | eight.73 | 12.17 | 12.17 | n.a |
| Payment Days | 27 | 28 | 28 | n.a |
| Total Asset Turnover | 0.94 | 1.49 | ane.52 | n.a |
| Debt Ratios | ||||
| Debt to Net Worth | 1.06 | 0.51 | 0.20 | northward.a |
| Current Liab. to Liab. | 1.00 | ane.00 | 1.00 | n.a |
| Liquidity Ratios | ||||
| Net Working Capital | $30,592 | $51,926 | $82,899 | due north.a |
| Interest Coverage | vi.03 | 21.54 | sixty.96 | n.a |
| Boosted Ratios | ||||
| Avails to Sales | 1.06 | 0.67 | 0.66 | n.a |
| Electric current Debt/Full Assets | 51% | 34% | 17% | northward.a |
| Acid Test | i.61 | 2.46 | five.03 | n.a |
| Sales/Internet Worth | 1.94 | ii.24 | 1.83 | n.a |
| Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sample Chart of Accounts for Florist
Source: https://www.bplans.com/florist-business-plan/financial-plan/
