Financial Plan - Assumptions - 2
| Variables_Used_for_Assumption | Units_Used | Explanation_of_Variables |
Average Monthly Sales | US $000s | Here you can enter net sales value. |
Desired average finished inventory | % of Sales | Does not apply to Service / Distribution business. For Manufacturing business, this variable is % of sales. |
Cost of materials/goods | As % Sales | This value is set to zero for Service business and for Distribution it refers to the purchases/inventory for resale. |
Target materials/goods inventory | US $000s | This value is set to zero for Service business and for Distribution it refers to the purchases/inventory for resale. |
Average monthly direct costs | US $000s | It is set to zero for for Distribution business |
Average monthly overhead expenses | US $000s | Interest and Depreciation is not included |
Opening total cost of fixed assets | US $000s | This is cost as on start date of projection |
Accumulated opening depreciation | US $000s | This is the value on the start date of projections |
Average depreciation rate | % p.a. | This is approximated weighted average rate of all fixed assets |
Planned capital expenditure for year | US $000s | Equipment purchases for the year |
Interest rate for cash balances | % p.a. | This is approximated weighted average rate |
Interest rate for all debt/notes | % p.a. | This is approximated weighted average rate |
Opening cash balance (deficit) | US $000s | If business is started with line of credit, then this number is negative |
Opening longterm debt/notes | US $000s | Total value of all long-term debt/loans/notes |
Net change in longterm debt/notes in yr | US $000s | Use appropriate sign for increase or decrease in the value |
Opening accounts receivable | US $000s | As of projection start date. Do not include expected bad debts |
Opening accounts payable | US $000s | As of projection start date. Also include all other planned payments |
Average credit given on sales | Days Sales | Use estimates with consideration of cash sales |
Average credit taken for materials /goods | Days Sales | Estimate should include suppliers who do not give credit |
Expected federal/state tax rate | % | Use Effective rate |
Planned dividend for year | US $000s | Include declared dividends only |
Opening number of shares | 000s | Issued shares only |
Proceeds of new stock issues | US $000s | Proceeds should be net of all fund raising costs |
Number of new shares issued | 000s | Add this number to opening number of shares |