Introduction

107120858.xls.ms_office

RETAIL 5-YEAR FINANCIAL PROJECTION

Required Inputs: All required inputs are highlighted in light blue.
Instructions:
1. Before you start entering data, explore the workbook and understand how it operates.
2. All instructions are highlighted in green.
3. Make sure you read the instructions in each worksheet before filling in data.
4. For this sheet, enter all inputs highlighted below in blue. Enter the first year for which the projection is needed in the "First Year of Analysis" cell.
Restaurant Name
First Year of Analysis
Inflation Rate
Prepared by

Sample Retail Store

2003
4.00%
Enter Your Name

This workbook contains the following worksheets:

1. Introduction
2. Expense Breakdown
3. Assumptions
4. Inc. Stmt. (Income Statement)
5. Cash Flow Stmt.
6. Common Size Inc. Stmt.
7. Break Even Analysis
8. Charts
9. What-If Analysis

This workbook contains the following Macros:

1. CTRL+SHIFT+I : Applies Inflation Rate.
To perform this function, select the first year cell and perform the function (CTRL+SHIFT+I).
The inflation rate is applied to the 4 cells to the right of the selected cell
2. CTRL+SHIFT+N = Removes Inflation Rate
This function works the same way the Inflation function does.
What is a macro?
A macro is a set of commands or functions that simplifies tasks that are repeated in Excel.
If you want to use this feature, you must click "Enable Macros" when you open this workbook.
If your version of Excel does not allow macros, then you can manually enter the values.

Expense Breakdown

107120858.xls.ms_office

Sample Retail Store

EXPENSE BREAKDOWN
Required Inputs: All required inputs for this sheet are highlighted in light blue
Instructions:
1. For each of the accounts below, specify whether it is Fixed (F), Variable (V), or both Fixed and Variable (B)
2. If an account is fixed, you will be entering a specific dollar amount in the assumptions sheet.
3. For the variable accounts, you will be expressing the amount in percentage of sales.
4. For accounts that are both fixed and variable, you will be entering a fixed dollar amount and a percentage of sales amount
5. This classification is necessary for developing the break-even analysis.
Account
Payroll Expenses
Employee Benefits
Accounting/ Legal
Telephone
Marketing & Advertising
Utilities
Office Supplies
Maintenance
Rent
Property Taxes
Travel
Miscellaneous Expenses
Insurance
Interest Expense
Depreciation and Amortization

Type of Account*
b
b
f
f
f
f
f
f
f
f
f
v
f
f
f

*F=Fixed
V=Variable
B=Both Fixed and Variable
Now click the "Assumptions" tab Next Sheet.

Variable accounts are those that are

dependant on another value. For example, if
you expect to hire more employees as your
sales increase or cut down on employees if
sales decrease, then payroll expense has a
variable component.
If, however, there are a fixed number of
employees who remain on payroll even if
sales change, then payroll has a fixed
component.

Assumptions

107120858.xls.ms_office

Sample Retail Store

ASSUMPTIONS
Required Inputs: All required inputs for this sheet are highlighted in light blue.
Instructions:
1. Fill in all the cells highlighted in light blue. Remember the inputs are for the corresponding year mentioned in the "Year" column.
For example, in cell E24, enter the total annual sales for that category you expect for the year mentioned.
2. When entering your sales per day, you can save time by using the inflation macro. Simply, enter a value in the first year, select that cell and press the 3 keys: CTRL+SHIFT+I
3. You must apply the inflation macro only when selecting the first year cell. To remove inflation, select the first year and perform: CTRL+SHIFT+N
4. Next fill in the account assumptions listed below "Average Cost of Goods Sold". Use historical data if available or industry averages.
5. When entering fixed dollar values for the accounts, you can apply the inflation macro by selecting the first year cell and performing the inflation function.
6. If you classified an account as fixed in the "Expense Breakdown" sheet, you should only enter a fixed dollar amount in this sheet for that account
7. Similarly, enter only percentage values for variable accounts. If a account is both fixed and variable, enter both dollar amount and percentage.
Year

Days Open in Year

Store Square Feet
Annual Sales by Category:
Gift Items
Sports Items
Food Items
Beverage Items
Miscellaneous
Total Annual Sales

2003

2004

2005

2006

2007

200
1,500

200
1,500

200
1,500

200
1,500

200
1,500

1,000,000
500,000
250,000
100,000
50,000
1,900,000

1,040,000
520,000
260,000
104,000
52,000
1,976,000

1,081,600
540,800
270,400
108,160
54,080
2,055,040

1,124,864
562,432
281,216
112,486
56,243
2,137,242

1,169,859
584,929
292,465
116,986
58,493
2,222,731

65.0%
55.0%
50.0%
50.0%
50.0%
59.2%

65.0%
55.0%
50.0%
50.0%
50.0%
59.2%

65.0%
55.0%
50.0%
50.0%
50.0%
59.2%

65.0%
55.0%
50.0%
50.0%
50.0%
59.2%

65.0%
55.0%
50.0%
50.0%
50.0%
59.2%

Cost of Goods Sold:

Gift Items
Sports Items
Food Items
Beverage Items
Miscellaneous
Average Cost of Goods Sold

% of Category Sales

Payroll Expense

Fixed $ Amount
% of Total Sales

50,000
15.00%

52,000
15.00%

54,080
15.00%

56,243
15.00%

58,493
15.00%

Employee Benefits Expense

Fixed $ Amount
% of Total Sales

30,000
5.00%

31,200
5.00%

32,448
5.00%

33,746
5.00%

35,096
5.00%

Fixed $ Amount

15,000

15,600

16,224

16,873

17,548

Fixed $ Amount

2,000

2,080

2,163

2,250

2,340

Fixed $ Amount

10,000

10,400

10,816

11,249

11,699

Fixed $ Amount

20,000

20,800

21,632

22,497

23,397

Accounting/ Legal

Telephone Expense

Marketing and Advertising

Utilities

Assumptions

Office Supplies

Maintenance Expense

Rent

Property Taxes

Travel

Miscellaneous Expenses

Insurance

Interest Expense

Depreciation and Amortization

Repayment of Principal on Debt

Fixed Asset Replacement Reserves Used

107120858.xls.ms_office

Fixed $ Amount

10,000

10,400

10,816

11,249

11,699

Fixed $ Amount

2,500

2,500

2,500

2,500

2,500

Fixed $ Amount

50,000

50,000

50,000

50,000

50,000

Fixed $ Amount

Fixed $ Amount

10,000

10,000

10,000

10,000

10,000

% of Total Sales

2.00%

2.00%

2.00%

2.00%

2.00%

Fixed $ Amount

10,000

10,000

10,000

10,000

10,000

Fixed $ Amount

5,000

5,000

5,000

5,000

5,000

Fixed $ Amount

5,000

5,000

5,000

5,000

5,000

Fixed $ Amount

500

500

500

500

500

Fixed $ Amount

2,500

2,500

2,500

2,500

2,500

Next click the "Inc. Stmt." tab below

Inc. Stmt.

107120858.xls.ms_office

Sample Retail Store

INCOME STATEMENT
Required Inputs: There are no required inputs, but you may enter the data for the historical income statement. This will be helpful to see trends in data
Instructions if entering historical data:
1. Enter all cells highlighted in light blue. The subtotals and totals for the accounts will automatically be generated.

Total Square Feet

Sales:
Gift Items
Sports Items
Food Items
Beverage Items
Miscellaneous

Historical Data
2001
2002
1,500
1,500

2003
1,500

2004
1,500

Projections
2005
1,500

2006
1,500

2007
1,500

800,000
500,000
125,000
62,500
50,000

800,000
500,000
125,000
62,500
50,000

1,000,000
500,000
250,000
100,000
50,000

1,040,000
520,000
260,000
104,000
52,000

1,081,600
540,800
270,400
108,160
54,080

1,124,864
562,432
281,216
112,486
56,243

1,169,859
584,929
292,465
116,986
58,493

1,537,500

1,537,500

1,900,000

1,976,000

2,055,040

2,137,242

2,222,731

1,025

0.00%
1,025

23.58%
1,267

4.00%
1,317

4.00%
1,370

4.00%
1,425

4.00%
1,482

Cost of Goods Sold:

Gift Items
Sports Items
Food Items
Beverage Items
Miscellaneous

427,500
250,000
68,750
37,500
25,000

427,500
250,000
68,750
37,500
25,000

650,000
275,000
125,000
50,000
25,000

676,000
286,000
130,000
52,000
26,000

703,040
297,440
135,200
54,080
27,040

731,162
309,338
140,608
56,243
28,122

760,408
321,711
146,232
58,493
29,246

Total Cost of Sales

808,750

808,750

1,125,000

1,170,000

1,216,800

1,265,472

1,316,091

52.60%

52.60%

59.21%

59.21%

59.21%

59.21%

59.21%

Operating Expenses:
Payroll Expenses
Employee Benefits
Accounting/ Legal
Telephone
Marketing & Advertising
Utilities
Office Supplies
Maintenance
Travel
Miscellaneous Expenses

300,000
188,750
5,000
2,000
1,000
10,000
4,000
2,500
10,000
38,000

300,000
188,750
5,000
2,000
1,000
10,000
4,000
2,500
10,000
38,000

335,000
125,000
15,000
2,000
10,000
20,000
10,000
2,500
10,000
38,000

348,400
130,000
15,600
2,080
10,400
20,800
10,400
2,500
10,000
39,520

362,336
135,200
16,224
2,163
10,816
21,632
10,816
2,500
10,000
41,101

376,829
140,608
16,873
2,250
11,249
22,497
11,249
2,500
10,000
42,745

391,903
146,232
17,548
2,340
11,699
23,397
11,699
2,500
10,000
44,455

Total Operating Expenses

Total Sales
Growth in Sales from previous year
Total Sales per Square Foot

in percent of Total Sales

561,250

561,250

567,500

589,700

612,788

636,800

661,772

in percent of Total Sales

36.50%

36.50%

29.87%

29.84%

29.82%

29.80%

29.77%

Occupancy Costs:
Rent
Property Taxes
Insurance

25,000
0
1,000

25,000
0
1,000

50,000
0
10,000

50,000
0
10,000

50,000
0
10,000

50,000
0
10,000

50,000
0
10,000

Total Occupancy Costs

26,000

26,000

60,000

60,000

60,000

60,000

60,000

200
500

200
500

5,000
5,000

5,000
5,000

5,000
5,000

5,000
5,000

5,000
5,000

Interest Expense
Depreciation and Amortization
Income Before Taxes
in percent of Total Sales

140,800
9.16%

140,800
9.16%

137,500
7.24%

Next, click the "Balance Sheet" tab below.

146,300
7.40%

155,452
7.56%

164,970
7.72%

174,869
7.87%

Cash Flow Stmt.

107120858.xls.ms_office

Sample Retail Store

CASH FLOW FROM OPERATIONS
Required Inputs: There are no required inputs, but you may enter the historical data in the highlighted cells.
Instructions:
1. Note that the line items that are indented will be filled in only if the balance sheet is completed.
2. The Cash Flow estimates will still be reasonable even if the Balance Sheet is not completed.
3. If Sales do not grow over the entire period, then the indented line items will be zero.

Net Income
Add:
Depreciation and Amortization
Cash Flow from Operations
Repayment of Debt
Reserve for Replacement of Fixed Assets
Cash Flow After Replacement of Fixed Assets
and Debt Repayment

Historical Data
2001
2002
140,800
140,800

2003
137,500

2004
146,300

Projections
2005
155,452

2006
164,970

2007
174,869

500

500

5,000

5,000

5,000

5,000

5,000

141,300
0
0
141,300

141,300
0
0
141,300

142,500
500
2,500
139,500

151,300
500
2,500
148,300

160,452
500
2,500
157,452

169,970
500
2,500
166,970

179,869
500
2,500
176,869

Next, click the "Common Size Inc. Stmt." tab below.

Common Size Inc. Stmt.

107120858.xls.ms_office

Sample Retail Store

COMMON SIZE INCOME STATEMENT
(All figures are in percent of total sales)

Historical Data
Projections
2001
2002
2003
2004
2005
2006
This sheet expresses all income statement values in percent of total sales unless otherwise stated.
There are no required inputs for this sheet. All data is automatically generated

Sales:
Gift Items
Sports Items
Food Items
Beverage Items
Miscellaneous

2007

52.03%
32.52%
8.13%
4.07%
3.25%

52.03%
32.52%
8.13%
4.07%
3.25%

52.63%
26.32%
13.16%
5.26%
2.63%

52.63%
26.32%
13.16%
5.26%
2.63%

52.63%
26.32%
13.16%
5.26%
2.63%

52.63%
26.32%
13.16%
5.26%
2.63%

52.63%
26.32%
13.16%
5.26%
2.63%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

53.44%
50.00%
55.00%
60.00%
50.00%

53.44%
50.00%
55.00%
60.00%
50.00%

65.00%
55.00%
50.00%
50.00%
50.00%

65.00%
55.00%
50.00%
50.00%
50.00%

65.00%
55.00%
50.00%
50.00%
50.00%

65.00%
55.00%
50.00%
50.00%
50.00%

65.00%
55.00%
50.00%
50.00%
50.00%

Total Cost of Sales

52.60%

52.60%

59.21%

59.21%

59.21%

59.21%

59.21%

Operating Expenses:
Payroll Expenses
Employee Benefits
Accounting/ Legal
Telephone
Marketing & Advertising
Utilities
Office Supplies
Maintenance
Travel
Miscellaneous Expenses

19.51%
12.28%
0.33%
0.13%
0.07%
0.65%
0.26%
0.16%
0.65%
2.47%

19.51%
12.28%
0.33%
0.13%
0.07%
0.65%
0.26%
0.16%
0.65%
2.47%

17.63%
6.58%
0.79%
0.11%
0.53%
1.05%
0.53%
0.13%
0.53%
2.00%

17.63%
6.58%
0.79%
0.11%
0.53%
1.05%
0.53%
0.13%
0.51%
2.00%

17.63%
6.58%
0.79%
0.11%
0.53%
1.05%
0.53%
0.12%
0.49%
2.00%

17.63%
6.58%
0.79%
0.11%
0.53%
1.05%
0.53%
0.12%
0.47%
2.00%

17.63%
6.58%
0.79%
0.11%
0.53%
1.05%
0.53%
0.11%
0.45%
2.00%

Total Operating Expenses

36.50%

36.50%

29.87%

29.84%

29.82%

29.80%

29.77%

Occupancy Costs:
Rent
Property Taxes
Insurance

1.63%
0.00%
0.07%

1.63%
0.00%
0.07%

2.63%
0.00%
0.53%

2.53%
0.00%
0.51%

2.43%
0.00%
0.49%

2.34%
0.00%
0.47%

2.25%
0.00%
0.45%

Total Occupancy Costs

1.69%

1.69%

3.16%

3.04%

2.92%

2.81%

2.70%

Interest Expense
Depreciation and Amortization

0.01%
0.03%

0.01%
0.03%

0.26%
0.26%

0.25%
0.25%

0.24%
0.24%

0.23%
0.23%

0.22%
0.22%

Income Before Taxes

9.16%

9.16%

7.24%

7.40%

7.56%

7.72%

7.87%

Total Sales
Cost of Goods Sold:
Gift Items
Sports Items
Food Items
Beverage Items
Miscellaneous

% of Gift Sales
% of Sports Sales
% of Food Sales
% of Bev. Sales
% of Misc. Sales

Break Even

107120858.xls.ms_office

Sample Retail Store

BREAK EVEN ANALYSIS
There are no required inputs for this sheet. All data is automatically generated.
Note: This analysis is based on data from the year:

Account
Cost of Goods Sold:
Gift Items
Sports Items
Food Items
Beverage Items
Miscellaneous
Payroll Expenses
Employee Benefits
Accounting/ Legal
Telephone
Marketing & Advertising
Utilities
Office Supplies
Maintenance
Rent
Property Taxes
Travel
Miscellaneous Expenses
Insurance
Interest Expense
Depreciation and Amortization
Total
Fixed Cost
Variable Cost per $1 of Revenue

2003

Fixed Amount Variable Amount

0
0
0
0
0
50,000
30,000
15,000
2,000
10,000
20,000
10,000
2,500
50,000
0
10,000
0
10,000
5,000
5,000
219,500

650,000
275,000
125,000
50,000
25,000
285,000
95,000
0
0
0
0
0
0
0
0
0
38,000
0
0
0
1,543,000

Total Cost
650,000
275,000
125,000
50,000
25,000
335,000
125,000
15,000
2,000
10,000
20,000
10,000
2,500
50,000
0
10,000
38,000
10,000
5,000
5,000
1,762,500

Total Sales
0
190,000
380,000
570,000
760,000
950,000
1,140,000
1,330,000
1,520,000
1,710,000
1,900,000
2,090,000
2,280,000
2,470,000
2,660,000
2,850,000
3,040,000
3,230,000
3,420,000
3,610,000

BREAK EVEN DATA

Variable Cost
0
154,300
308,600
462,900
617,200
771,500
925,800
1,080,100
1,234,400
1,388,700
1,543,000
1,697,300
1,851,600
2,005,900
2,160,200
2,314,500
2,468,800
2,623,100
2,777,400
2,931,700

Total Cost
219,500
373,800
528,100
682,400
836,700
991,000
1,145,300
1,299,600
1,453,900
1,608,200
1,762,500
1,916,800
2,071,100
2,225,400
2,379,700
2,534,000
2,688,300
2,842,600
2,996,900
3,151,200

219,500
0.812
Current Sales
Current Sales / Sq. Ft.
Current Profit:
Break even Sales point:
Break Even Sales / Sq. Ft.

Break Even Analysis

4,000,000
3,500,000
3,000,000
Sales and Costs

Fixed Cost
219,500
219,500
219,500
219,500
219,500
219,500
219,500
219,500
219,500
219,500
219,500
219,500
219,500
219,500
219,500
219,500
219,500
219,500
219,500
219,500

2,500,000
Total Sales

2,000,000

Fixed Cost
Total Cost

1,500,000
1,000,000
500,000
0

Total Sales

Next, click the "Charts" tab below.

$1,900,000
$1,266.67
$137,500
$1,168,207
$779

Profit/(Loss)
(219,500)
(183,800)
(148,100)
(112,400)
(76,700)
(41,000)
(5,300)
30,400
66,100
101,800
137,500
173,200
208,900
244,600
280,300
316,000
351,700
387,400
423,100
458,800

Charts

107120858.xls.ms_office

Sample Retail Store

CHARTS
There are no required inputs for this sheet. All charts are automatically generated.
Total Sales

Income Before Taxes

2,500,000

200,000

180,000
2,000,000

160,000

Dollars

Dollars

140,000
1,500,000

1,000,000

120,000

100,000
80,000
60,000
40,000

500,000

20,000
0

0
2001

2002

2003

2004

2005

2006

2001

2007

2002

2003

Cash Flows

2005

2006

2007

Operating Expenses

4%

200,000
180,000
160,000

3%

140,000
Dollars

2004
Year

Year

0%
2%

2%

2%
0%
Payroll Expenses

120,000

Employee Benefits

100,000

Accounting/ Legal

80,000

Telephone

60,000

24%

Marketing & Advertising

40,000

Utilities

20,000

63%

0
2001

2002

2003

2004

2005

2006

2007

Office Supplies
Maintenance
Travel

Year

Cash Flow from Operations

Cash Flow After Replacement of Fixed Assets and Debt Repayment

Sales Breakdown

3%
5%
13%
Gift Items
Sports Items
Food Items

53%
26%

Beverage Items
Miscellaneous

What-If

107120858.xls.ms_office

Sample Retail Store

WHAT-IF ANALYSIS
Required Inputs: The required inputs are highlighted in blue
Instructions:
1. Fill in the highlighted cells and new net income will be displayed.
2. All data is based on values from the first projected year.
1. Adjustment to Operating Expenses
Current Operating Expenses as % of Sales
Current Amount of Operating Expense
Current Net Income

29.87%
$567,500
Note: All accounts other than
$137,500

New Operating Expense as % of Sales

New Amount of Operating Expense
New Net Income

0.00%
$0
$705,000

operating expenses are held constant

in this analysis

2. Adjustment of Average Cost of Goods Sold

Current Average Cost of Goods Sold
Current Amount of Cost of Goods Sold
Current Net Income
New Average Cost of Goods Sold
New Amount of Cost of Goods Sold
New Net Income

59.21%
1,125,000
Note: All accounts other than cost of
$137,500
0.00%
0
$1,262,500

goods sold are held constant in this

analysis

3. Adjustment to Sales per Square Foot

Current Sales per Square Foot
Current Total Sales
Current Variable Costs
Current Net Income

$1,267
$1,900,000
$1,543,000
$137,500

New Sales per Square Foot

New Total Sales
New Variable Costs
New Net Income

$0
$0
$0
($219,500)

Note: Fixed Costs are held constant

This is the end of the workbook

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