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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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44 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

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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