FINANCIAL PLAN FOR MEET GREEN

Meet green is an app with variation of product in the category of organic food,
herbal medicines, personal care which are locally grown produce, chemical- and
preservative-free groceries. While continuing to strengthen the business, meet
green has expanded to the different areas in pursuit of a strategy to diversify and
leverage its revenue stream.

A sound financial plan serves as a key factor for successful start-up of business.
Besides the importance of financial needs of business, the plan also require
ensure than business remains liquor and profitable.
The following part describes the financial plan of meetgreen which consist of
balance sheet and income statement based on a year’s forecast. This part also
discusses various assumptions, analysis justifications of the figures that included
in both income statement and balance sheet.
 PROFIT AND LOSS STATEMENT OF MEETGREEN

PROFIT & LOSS STATEMENT

MEETGREEN

Column1 Year 1 Year 2 Year 3 Year 4 Year 5

Sales $30,000 $58,000 $68,200 $81,100 $101,600
Less Sales Returns & Discounts ($200) ($100) ($200) ($100) ($100)

Net Sales $29,800 $57,900 $68,000 $81,000 $101,500

Total Cost Of Sales $27,000 $52,110 $61,200 $72,900 $91,350
Gross Profit $2,800 $5,790 $6,800 $8,100 $10,150
Gross Profit Margin (%) 9% 10% 10% 10% 10%

EXPENSES Year 1 Year 2 Year 3 Year 4 Year 5

Payroll $100 $100 $100 $100 $100
Marketing/Advertising $300 $250 $230 $200 $150
Sales Commissions
Application Development & Maintenance $300 $50 $50 $50 $50

Rent $250 $250 $250 $250 $250

Legal $200 $200 $200 $200 $200
Stationary $250 $350 $350 $450 $450
Brochures $350 $200 $200 $200 $200
Expensed Equipment $900 $900 $1000 $1200 $1500
Other $250 $250 $250 $250 $250
Utilities $200 $500 $500 $700 $900
Insurance $300 $400 $500 $600 $700
Payroll Taxes $10 $10 $10 $10 $10
Research & Development $200 $200 $200 $200 $200

Total Expenses $3,610 $5,671 $6,451 $7,641 $9,478

Income Before Taxes ($810) $140 $410 $540 $790
Income Tax Expense ($122) $21 $62 $81 $118

NET PROFIT ($932) $119 $349 $459 $672

NET PROFIT MARGIN (%) -3.13% 0.35% 0.97% 1.24% 1.72%
BALANCE SHEET OF MEETGREEN
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Assets

Current assets

Cash $29,800 $57,900 $68,000 $81,000 $101,500

Accounts receivables $0 $0

Inventory $0 $2,700 $3,060 $3,240 $3,330

Other current assets $701

Total current assets $30,501 $60,600 $71,060 $84,240 $104,830

Fixed assets $3000 $3500 $4500 $5000 $5500

Total fixed assets

Total assets $33,501 $64,100 $75,560 $89,240 $110,330

Current liabilities

Accounts payable $8,532 $30,278 $35,720 $46,953 $52,885

Other current liabilities $17,901 $26,211 $27,942 $28,786 $29,724

Total current liabilities $26,433 $56,489 $63,662 $75,739 $82,609

Long term liabilities $0 $0 $0 $0 $0

Paid in capital $8,000 $8,000 $8,000 $8,000 $8,000

Retained earning -$932 $119 $349 $459 $672

Total capital $7,069 $7,492 $10,956 $13,042 $25,049

Total capital and liabilities $33,501 $64,100 $75,560 $89,240 $110,330

PRO FORMA CASH FLOW

Year 1 Year 2 Year 3 Year 4 Year 5

Cash Received

Cash from Operations

Cash Sales $29,800 $57,900 $68,000 $81,000 $101,500

Subtotal Cash from Operations $29,800 $57,900 $68,000 $81,000 $101,500

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0 $0 $0

New Current Borrowing $0 $0 $0 $0 $0

New Other Liabilities (interest-free) $0 $0 $0 $0 $0

New Long-term Liabilities $0 $0 $0 $0 $0

Sales of Other Current Assets $0 $0 $0 $0 $0

Sales of Long-term Assets $0 $0 $0 $0 $0

New Investment Received $8,000 $0 $0 $0 $0

Subtotal Cash Received $37,800 $57,900 $68,000 $81,000 $101,500

Expenditures Year 1 Year 2 Year 3 Year 4 Year 5

Expenditures from Operations

Cash Spending $30,000 $32,000 $38,000 $43,000 $55,000

Bill Payments $15,500 $18,000 $20,500 $23,500 $29,750

Subtotal Spent on Operations $45,500 $50,000 $58,500 $66,500 $84,750

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0

Principal Repayment of Current Borrowing $0 $0 $0 $0 $0

Other Liabilities Principal Repayment $0 $0 $0 $0 $0

Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0

Purchase Other Current Assets $0 $0 $0 $0 $0

Purchase Long-term Assets $0 $0 $0 $0 $0

Dividends $0 $0 $0 $0 $0

Subtotal Cash Spent $45,500 $50,000 $58,500 $66,500 $84,750

Net Cash Flow ($7,700) $7,900 $9,500 $14,500 $16,750

Cash Balance $800 $8,700 $18,200 $32,700 $49,450

 PAYBACK PERIOD

Year Cash Flow Investment

0 -$8000
1 ($7,700) -$15,700
2 $7,900 -$7,800
3 $9,500 $0

NET PRESENT VALUE

Assuming WACC / Discount rate of 20%

NPV = [R1 / (1+r) 1 + R2 / (1+r) 2 + R3 / (1+r) 3 + R4 / (1+r) 4 + R5 / (1+r) 5} - Initial Investment

Where,

R = Net Cash flow of that particular year

r = Discount rate = 20%
t = Particular Year
Initial investment = $8,000

NPV = {(-$7,700) / 1.20 + $7,900 / 1.44 + $9,500 / 1.72 + $14,500/ 2.07 + $16,750/ 2.48} -$8,000

NPV = {-$6416 + $5486 + $5497 + $6992 + $6731} - $8,000

NPV = $18290 - $8000

NPV = $10,290 {POSITIVE}

HENCE, NPV IS POSITIVE SO WE WILL ACCEPT THIS PROJECT

 INTERNAL RATE OF RETURN

Assuming Discount rate of 42%

NPV = [R1 / (1+r) 1 + R2 / (1+r) 2 + R3 / (1+r) 3 + R4 / (1+r) 4 + R5 / (1+r) 5} - Initial Investment

Where,

R = Net Cash flow of that particular year

r = Discount rate = 39%
t = Particular Year
Initial investment = $8,000

NPV = {(-$7,700) / 1.42 + $7,900 / 2.01 + $9,500 / 2.86 + $14,500 / 4.06 + $16,750/ 5.77} -$8,000

NPV = {-$5,540 + $4,089 + $3,537 + $3,884 + $3,228} - $8,000

NPV = $8,278 - $8,000

NPV = $278 {NEARER TO 0}

HENCE, NPV IS NEARER TO 0 SO IRR IS 42%.