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Financial Modeling

The document shows an income statement and assumptions for a company over 4 years. It tracks metrics like revenue, costs, expenses and profits. It also outlines steps to build a financial model including planning revenue, costs of sales, operating expenses and profit margins.

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shalini164
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31 views4 pages

Financial Modeling

The document shows an income statement and assumptions for a company over 4 years. It tracks metrics like revenue, costs, expenses and profits. It also outlines steps to build a financial model including planning revenue, costs of sales, operating expenses and profit margins.

Uploaded by

shalini164
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Income Statement Year 1 Year 2 Year 3 Year 4

Total Orders $ 2,500 $ 8,643 $ 37,619 $ 140,000

Revenue $ 222,500 $ 769,214 $ 3,348,095 $ 12,460,000

Cost of Goods Sold


Product $ 42,500 $ 146,929 $ 639,524 $ 2,380,000
Fulfillment $ 70,000 $ 242,000 $ 1,053,333 $ 3,920,000
Customer Service $ 17,500 $ 60,500 $ 263,333 $ 980,000
Total COGS $ 130,000 $ 449,429 $ 1,956,190 $ 7,280,000

Gross Profit $ 92,500 $ 319,786 $ 1,391,905 $ 5,180,000


GP % 42% 42% 42% 42%

Operating Expenses
Payroll $ 100,000 $ 150,000 $ 200,000 $ 350,000
Marketing 100,000 250,000 1,000,000 3,000,000
Other Expenses 30,000 50,000 75,000 90,000
Total OPEX $ 230,000 $ 450,000 $ 1,275,000 $ 3,440,000

Operating Income $ (137,500) $ (130,214) $ 116,905 $ 1,740,000

Taxes - - - 444,973

Net Income $ (137,500) $ (130,214) $ 116,905 $ 1,295,027


Net Income % -62% -17% 3% 10%

ASSUMPTIONS

Marketing $ 100,000 $ 250,000 $ 1,000,000 $ 3,000,000

Customer Acquisition Cost $ 40 $ 35 $ 30 $ 25

New Orders $ 2,500.00 $ 7,142.86 $ 33,333.33 $ 120,000.00


Returning Orders 1,500 4,286 20,000
Total $ 2,500 $ 8,643 $ 37,619 $ 140,000
60% 60% 60%
Return Rate (Annual)

Average Order Value $ 89 $ 89 $ 89 $ 89

COGS (Per Order)


Product $ 17 $ 17 $ 17 $ 17
Fulfillment $ 28 $ 28 $ 28 $ 28
Customer Service $ 7 $ 7 $ 7 $ 7
Operating Expenses
Payroll $ 100,000 $ 150,000 $ 200,000 $ 350,000
Other Expenses $ 30,000 $ 50,000 $ 75,000 $ 90,000

Corporate Tax Rate 28% 28% 28% 28%

Tax Loss Asset $ (137,500) $ (267,714) $ (150,810) $ 1,589,190


Steps to Build Model

Step 1: Revenue Plan

Step 2: Cost of Sales

Step 4: Profit Margins

Step 3: Operating
Expenses

Step 4: Profit Margins

Step 1: Revenue Plan

Step 2: Cost of Sales


Step 3: Operating
Expenses

Step 4: Profit Margins

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