Sales Forecasting
2014 | Total | 2015 | 2016 | 2017 | 2018 | ||||||||||||
Revenue & Expenses | January | February | March | April | May | June | July | August | September | October | November | December | |||||
Sales Unit | 4,000 | 6,000 | 7,000 | 8,000 | 10,000 | 10,000 | 45,000 | 380,000 | 1,425,000 | 2,250,000 | 3,162,500 | ||||||
Regular Version (75%) | 3,000 | 4,500 | 5,250 | 6,000 | 7,500 | 7,500 | 33,750 | 285,000 | 1,068,750 | 1,687,500 | 2,371,875 | ||||||
Premium Version (25%) | 1,000 | 1,500 | 1,750 | 2,000 | 2,500 | 2,500 | 11,250 | 95,000 | 356,250 | 562,500 | 790,625 | ||||||
Regular Price $1.99 | 5,970 | 8,955 | 10,448 | 11,940 | 14,925 | 14,925 | 67,163 | 567,150 | 2,126,813 | 3,358,125 | 4,720,031 | ||||||
Premium Price $4.99 | 4,990 | 7,485 | 8,733 | 9,980 | 12,475 | 12,475 | 56,138 | 474,050 | 1,777,688 | 2,806,875 | 3,945,219 | ||||||
Total Revenue From Sales | 10,960 | 16,440 | 19,180 | 21,920 | 27,400 | 27,400 | 123,300 | 1,041,200 | 3,904,500 | 6,165,000 | 8,665,250 | ||||||
Coins Purchase | 2,740.0 | 4,110.0 | 4,795.0 | 5,480.0 | 6,850.0 | 6,850.0 | 30,825.0 | 260,300.0 | 976,125.0 | 1,541,250.0 | 2,166,312.5 | ||||||
Assumptions | |||||||||||||||||
Advertising Earnings Growth | 25% | ||||||||||||||||
Subscription growth | 15% | ||||||||||||||||
Marketing Expense | 10% | ||||||||||||||||
Transaction Cost | 3% | ||||||||||||||||
Tax Rate | 30% | ||||||||||||||||
Interest Rate | 12% | ||||||||||||||||
Interest Expense | $24,000 |
Revenue and Expenses
2014 | Total | 2015 | 2016 | 2017 | 2018 | ||||||||||||
Revenue & Expenses | January | February | March | April | May | June | July | August | September | October | November | December | |||||
REVENUE (Sales): | $0 | $0 | $0 | $0 | $0 | $0 | $10,960 | $16,440 | $19,180 | $21,920 | $27,400 | $27,400 | $123,300 | $1,041,200 | $3,904,500 | $6,165,000 | $8,665,250 |
Coins Purchase | $0 | $0 | $0 | $0 | $0 | $0 | $2,740 | $4,110 | $4,795 | $5,480 | $6,850 | $6,850 | $30,825 | $260,300 | $976,125 | $1,541,250 | $2,166,313 |
Advertising | $500 | $1,000 | $1,500 | $2,500 | $3,500 | $5,000 | $14,000 | $17,500 | $21,875 | $27,344 | $34,180 | ||||||
Subscription Fee | $150 | $350 | $500 | $750 | $1,000 | $1,150 | $3,900 | $4,485 | $5,158 | $5,931 | $6,821 | ||||||
Total Revenue | $0 | $0 | $0 | $0 | $0 | $0 | $14,350 | $21,900 | $25,975 | $30,650 | $38,750 | $40,400 | $172,025 | $1,323,485 | $4,907,658 | $7,739,525 | $10,872,563 |
OPERATING EXPENSES: | |||||||||||||||||
Salary Expenses | 35000 | 35000 | 35000 | 35000 | 35000 | 35000 | 35000 | 35000 | 35000 | 35000 | 35000 | 35000 | 420000 | 500000 | 550000 | 650000 | 800000 |
Maitenance Expenses | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 22000 | 24000 | 24000 | 24000 | 24000 | |
Marketing Expenses | 1500 | $1,435 | $2,190 | $2,598 | $3,065 | $3,875 | $4,040 | $17,203 | $132,349 | $490,766 | $773,953 | $1,087,256 | |||||
Legal Expenses | 1500 | 3000 | 4500 | ||||||||||||||
Adminstrative Expenses | 500 | 1000 | 1000 | 1000 | 1000 | 1000 | 3500 | 3500 | 3500 | 3500 | 3500 | 3500 | 26500 | 42000 | 45000 | 50000 | 65000 |
Utilities | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 3600 | 3600 | 3600 | 4000 | 5000 |
Transaction Cost (Payment) | $431 | $657 | $779 | $920 | $1,163 | $1,212 | $5,161 | $39,705 | $147,230 | $232,186 | $326,177 | ||||||
Total Expenses | 37300 | 41300 | 38300 | 38300 | 38300 | 39800 | 42665.5 | 43647 | 44176.75 | 44784.5 | 45837.5 | 46052 | 498963.25 | 741653.05 | 1260595.5075 | 1734138.271125 | 2307433.23054375 |
Earnings Before Interest and Tax | -$37,300 | -$41,300 | -$38,300 | -$38,300 | -$38,300 | -$39,800 | -$28,316 | -$21,747 | -$18,202 | -$14,135 | -$7,088 | -$5,652 | -$326,938 | $581,832 | $3,647,062 | $6,005,387 | $8,565,130 |
Interest Expense | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 24000 | 24000 | 24000 | 24000 | 24000 |
Earnings Before Tax | -$39,300 | -$43,300 | -$40,300 | -$40,300 | -$40,300 | -$41,800 | -$30,316 | -$23,747 | -$20,202 | -$16,135 | -$9,088 | -$7,652 | -$350,938 | $557,832 | $3,623,062 | $5,981,387 | $8,541,130 |
Tax Expense | -$11,790 | -$12,990 | -$12,090 | -$12,090 | -$12,090 | -$12,540 | -$9,095 | -$7,124 | -$6,061 | -$4,840 | -$2,726 | -$2,296 | -$105,281 | $167,350 | $1,086,919 | $1,794,416 | $2,562,339 |
Net Income | -$27,510 | -$30,310 | -$28,210 | -$28,210 | -$28,210 | -$29,260 | -$21,221 | -$16,623 | -$14,141 | -$11,294 | -$6,361 | -$5,356 | -$245,657 | $390,482 | $2,536,144 | $4,186,971 | $5,978,791 |
Forecasted Balance Sheet
2014 | 2015 | 2016 | 2017 | 2018 | |||
ASSETS: | |||||||
Current Assets: | |||||||
Cash | $ (245,657) | $ 290,482 | $ 2,036,144 | $ 2,986,971 | $ 3,478,791 | ||
Office Equipment | $ 100,000 | $ 90,000 | $ 75,000 | $ 65,000 | $ 60,000 | ||
Long Term Assets: | |||||||
Application Value | $ 500,000 | $ 510,000 | $ 525,000 | $ 535,000 | $ 540,000 | ||
Total Assets | $ 354,343 | $ 890,482 | $ 2,636,144 | $ 3,586,971 | $ 4,078,791 | ||
LIABILITIES: | |||||||
Current Liabilties: | |||||||
Salaries Payables | |||||||
Long Term Liabilities: | |||||||
Loans | $ 200,000.00 | $ 200,000.00 | $ 200,000.00 | $ 200,000.00 | $ 200,000.00 | ||
Total Liabilities | $ 200,000.00 | $ 200,000.00 | $ 200,000.00 | $ 200,000.00 | $ 200,000.00 | ||
Owner's Equity | |||||||
Equity Investment | $ 400,000.00 | $ 400,000.00 | $ 400,000.00 | $ 400,000.00 | $ 400,000.00 | ||
Retain Earnings | -$245,657 | $290,482 | $2,036,144 | $2,986,971 | $3,478,791 | ||
Total Liabilities and | |||||||
Owner's Equity | $ 354,343 | $ 890,482 | $ 2,636,144 | $ 3,586,971 | $ 4,078,791 | ||
Statement of Retain Earnings | |||||||
2014 | 2015 | 2016 | 2017 | 2018 | |||
Beginning Reatin Earnings | |||||||
Net Income | -$245,657 | $390,482 | $2,536,144 | $4,186,971 | $5,978,791 | ||
Dividends | 0 | 100,000 | 500,000 | 1,200,000 | 2,500,000 | ||
Ending Retain Earnings | -$245,657 | $290,482 | $2,036,144 | $2,986,971 | $3,478,791 |
Financial Statements and Projections
Financial Assumptions
Revenue and Cost Estimate
As it would take at least 6 months to market our first app so we have forecasted revenue for the last 6 months of the first year only. Below is the forecasting:
page 1
Forecasted Profit and Loss Statement
Financial Projections
Summarize the financial projections and the assumption used in estimating the projections in section F
Break Even Analysis
Financial Position
Capital Needs
Income Statements:
Total
Revenue & ExpensesJanuary FebruaryMarchAprilMay JuneJuly AugustSeptemberOctober November December
REVENUE (Sales):$0$0$0$0$0$0$10,960$16,440$19,180$21,920$27,400$27,400$123,300
Coins Purchase$0$0$0$0$0$0$2,740$4,110$4,795$5,480$6,850$6,850$30,825
Advertising$500$1,000$1,500$2,500$3,500$5,000$14,000
Subscription Fee$150$350$500$750$1,000$1,150$3,900
Total Revenue$0$0$0$0$0$0$14,350$21,900$25,975$30,650$38,750$40,400$172,025
OPERATING EXPENSES:
Salary Expenses350003500035000350003500035000350003500035000350003500035000420000
Maintenance Expenses2000200020002000200020002000200020002000200022000
Marketing Expenses1500$1,435$2,190$2,598$3,065$3,875$4,040$17,203
Legal Expenses150030004500
Administrative Expenses5001000100010001000100035003500350035003500350026500
Utilities3003003003003003003003003003003003003600
Transaction Cost (Payment)$431$657$779$920$1,163$1,212$5,161
2014
Sheet1
Income Statements: | |||||||||||||
2014 | Total | ||||||||||||
Revenue & Expenses | January | February | March | April | May | June | July | August | September | October | November | December | |
REVENUE (Sales): | $0 | $0 | $0 | $0 | $0 | $0 | $10,960 | $16,440 | $19,180 | $21,920 | $27,400 | $27,400 | $123,300 |
Coins Purchase | $0 | $0 | $0 | $0 | $0 | $0 | $2,740 | $4,110 | $4,795 | $5,480 | $6,850 | $6,850 | $30,825 |
Advertising | $500 | $1,000 | $1,500 | $2,500 | $3,500 | $5,000 | $14,000 | ||||||
Subscription Fee | $150 | $350 | $500 | $750 | $1,000 | $1,150 | $3,900 | ||||||
Total Revenue | $0 | $0 | $0 | $0 | $0 | $0 | $14,350 | $21,900 | $25,975 | $30,650 | $38,750 | $40,400 | $172,025 |
OPERATING EXPENSES: | |||||||||||||
Salary Expenses | 35000 | 35000 | 35000 | 35000 | 35000 | 35000 | 35000 | 35000 | 35000 | 35000 | 35000 | 35000 | 420000 |
Maintenance Expenses | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 22000 | |
Marketing Expenses | 1500 | $1,435 | $2,190 | $2,598 | $3,065 | $3,875 | $4,040 | $17,203 | |||||
Legal Expenses | 1500 | 3000 | 4500 | ||||||||||
Administrative Expenses | 500 | 1000 | 1000 | 1000 | 1000 | 1000 | 3500 | 3500 | 3500 | 3500 | 3500 | 3500 | 26500 |
Utilities | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 3600 |
Transaction Cost (Payment) | $431 | $657 | $779 | $920 | $1,163 | $1,212 | $5,161 | ||||||
Total Expenses | 37300 | 41300 | 38300 | 38300 | 38300 | 39800 | 42665.5 | 43647 | 44176.75 | 44784.5 | 45837.5 | 46052 | 498963.25 |
Earnings Before Interest and Tax | ($37,300) | ($41,300) | ($38,300) | ($38,300) | ($38,300) | ($39,800) | ($28,316) | ($21,747) | ($18,202) | ($14,135) | ($7,088) | ($5,652) | ($326,938) |
Interest Expense | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 24000 |
Earnings Before Tax | ($39,300) | ($43,300) | ($40,300) | ($40,300) | ($40,300) | ($41,800) | ($30,316) | ($23,747) | ($20,202) | ($16,135) | ($9,088) | ($7,652) | ($350,938) |
Tax Expense | ($11,790) | ($12,990) | ($12,090) | ($12,090) | ($12,090) | ($12,540) | ($9,095) | ($7,124) | ($6,061) | ($4,840) | ($2,726) | ($2,296) | ($105,281) |
Net Income | ($27,510) | ($30,310) | ($28,210) | ($28,210) | ($28,210) | ($29,260) | ($21,221) | ($16,623) | ($14,141) | ($11,294) | ($6,361) | ($5,356) | ($245,657) |
ParticularsAmount
ASSETS:
Current Assets:
Cash($245,657)
Other Current Assets$100,000
Long Term Assets:
Office Equipments$500,000
Total Assets$354,343
LIABILITIES:
Current Liabilities:
Salaries Payables
Long Term Liabilities:
Loans$200,000.00
Total Liabilities $200,000.00
Owner's Equity
Equity Investment$400,000.00
Retain Earnings($245,657)
Total Liabilities and
Owner's Equity
$354,343
Balance Sheet: For the year ended, 2014
Sheet1
Balance Sheet: For the year ended, 2014 | |
Particulars | Amount |
ASSETS: | |
Current Assets: | |
Cash | ($245,657) |
Other Current Assets | $100,000 |
Long Term Assets: | |
Office Equipments | $500,000 |
Total Assets | $354,343 |
LIABILITIES: | |
Current Liabilities: | |
Salaries Payables | |
Long Term Liabilities: | |
Loans | $200,000.00 |
Total Liabilities | $200,000.00 |
Owner's Equity | |
Equity Investment | $400,000.00 |
Retain Earnings | ($245,657) |
Total Liabilities and Owner's Equity | $354,343 |
Fixed Cost$500,000
Price (Average)$2.74
Variable Cost$1,308,557
Sales Average1,452,500
VC per APP$0.90
Break-Even Unit271,872
Break-Even Analysis
Sheet1
Break-Even Analysis | |
Fixed Cost | $500,000 |
Price (Average) | $2.74 |
Variable Cost | $1,308,557 |
Sales Average | 1,452,500 |
VC per APP | $0.90 |
Break-Even Unit | 271,872 |
Equity Capital$400,000
Debt Capital (Loan @ 12%)$200,000
Total Investments$600,000
Capital Requirements
Sheet1
Capital Requirements | |
Equity Capital | $400,000 |
Debt Capital (Loan @ 12%) | $200,000 |
Total Investments | $600,000 |
Advertising Earnings Growth25%
Subscription growth15%
Marketing Expense10%
Transaction Cost3%
Tax Rate30%
Interest Rate12%
Interest Expense$24,000
Financial Assumptions
Sheet1
Financial Assumptions | |
Advertising Earnings Growth | 25% |
Subscription growth | 15% |
Marketing Expense | 10% |
Transaction Cost | 3% |
Tax Rate | 30% |
Interest Rate | 12% |
Interest Expense | $24,000 |
Total
Sales projectionJanuary FebruaryMarchAprilMay JuneJuly AugustSeptemberOctober November December
Sales Unit4,0006,0007,0008,00010,00010,00045,000
Regular Version (75%)3,0004,5005,2506,0007,5007,50033,750
Premium Version (25%)1,0001,5001,7502,0002,5002,50011,250
Regular Price $1.995,9708,95510,44811,94014,92514,92567,163
Premium Price $4.994,9907,4858,7339,98012,47512,47556,138
Total Revenue From Sales10,96016,44019,18021,92027,40027,400123,300
2014
Sheet1
2014 | Total | ||||||||||||
Sales projection | January | February | March | April | May | June | July | August | September | October | November | December | |
Sales Unit | 4,000 | 6,000 | 7,000 | 8,000 | 10,000 | 10,000 | 45,000 | ||||||
Regular Version (75%) | 3,000 | 4,500 | 5,250 | 6,000 | 7,500 | 7,500 | 33,750 | ||||||
Premium Version (25%) | 1,000 | 1,500 | 1,750 | 2,000 | 2,500 | 2,500 | 11,250 | ||||||
Regular Price $1.99 | 5,970 | 8,955 | 10,448 | 11,940 | 14,925 | 14,925 | 67,163 | ||||||
Premium Price $4.99 | 4,990 | 7,485 | 8,733 | 9,980 | 12,475 | 12,475 | 56,138 | ||||||
Total Revenue From Sales | 10,960 | 16,440 | 19,180 | 21,920 | 27,400 | 27,400 | 123,300 | ||||||
Coins Purchase | 2,740.00 | 4,110.00 | 4,795.00 | 5,480.00 | 6,850.00 | 6,850.00 | 30,825.00 |
Financial Statements and Projections
(3-5 pages) – Develop projected financial statements for the first year of business. You may use the Business Plan Financials Template to prepare this section (see Appendix B) or you may create your own template.
Revenue and Cost Estimate
This is the first part of the profit and loss statement. You will estimate the revenue (sales) and expenses for the first 12 months of your business.
Forecasted Profit and Loss Statement
(Month by month for 1st 12 months)– Here you will consider the sales forecast, the operating expenses, and the profits. Take the month-by-month revenue estimates of sales and expenses from the revenue and cost estimate (F1) and include interest expense to obtain a profit projection for your first year of operations. It will reveal net profit (obtained from subtracting the interest expense from the profit before interest). The profit before interest is calculated by subtracting total expenses from total revenue.
Salary expenses |
Payroll expenses |
General and administrative |
Repairs and maintenance |
Marketing and Advertising |
Accounting and legal |
Utilities |
Insurance |
Taxes (real estate, etc.) |
Selling Expenses |
Other expenses (specify) |
Examples of expenses may include:
Forecasted Balance Sheet
This statement deals with cash and income and also with assets, liabilities, and capital. The balance should result in the debit and credit balances ending up equal.
Financial Projections
(1-2 pages)- Summarize the financial projections and the assumption used in estimating the projections in section F.
Breakeven Point-
Include an estimate of income and expenses. It determines whether or not your business will bring in enough money to meet its costs.
This method is used to determine the exact point at which the business makes neither takes a loss nor makes a profit. It is calculated at a point where sales have grown at a greater rate than costs and the two lines cross.
Financial Position:
Include the estimated financial position of the company at the end of the first year and the estimated capital/investment needs. Make sure to include any assumptions you used in estimating this information.
Capital/Investment Needs:
Estimate the capital and investment needs for your company. Be sure to discuss any equity contributions your company will need along with other start up costs required.

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