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Build A Basic Financial Model

The financial model outlines revenue, costs, and net income projections for the years 2016 to 2018, showing significant growth in revenue from $25,000 to $87,500. Operating income improves from a loss of $5,000 in 2016 to a profit of $15,000 in 2018, with net income transitioning from a loss to a profit of $9,000. Key metrics include a gross profit margin increase from 40% to 48% and a net income margin improvement from -20% to 10%.

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rhoti
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29 views1 page

Build A Basic Financial Model

The financial model outlines revenue, costs, and net income projections for the years 2016 to 2018, showing significant growth in revenue from $25,000 to $87,500. Operating income improves from a loss of $5,000 in 2016 to a profit of $15,000 in 2018, with net income transitioning from a loss to a profit of $9,000. Key metrics include a gross profit margin increase from 40% to 48% and a net income margin improvement from -20% to 10%.

Uploaded by

rhoti
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

Basic Financial Model

2016 2017 2018


Assumptions
Revenue $ 25,000 $ 45,000 $ 87,500
Units 100 180 350
Price $ 250 $ 250 $ 250

COGS $ 15,000 $ 25,200 $ 45,500


Unit Cost $ 150 $ 140 $ 130

Operating Expenses $ 10,000 $ 19,800 $ 42,000


Labor $ 10,000 $ 15,000 $ 20,000
Marketing $ 5,000 $ 6,000 $ 7,000
Operating Income $ (5,000) $ (1,200) $ 15,000
Tax 40% 40% 40%
Net Income $ (5,000) $ (1,200) $ 9,000 $ 2,800
Income Statement

Net Revenue $ 25,000 $ 45,000 $ 87,500

COGS $ 15,000 $ 25,200 $ 45,500

Gross Profit $ 10,000 $ 19,800 $ 42,000


GP % 40.0% 44.0% 48.0%

Operating Expenses
Labor $ 10,000 $ 15,000 $ 20,000
Marketing $ 5,000 $ 6,000 $ 7,000
Total $ 15,000 $ 21,000 $ 27,000

Operating Income $ (5,000) $ (1,200) $ 15,000


Operating Margin % -20% -3% 17%

Tax $ 6,000

Net Income $ (5,000) $ (1,200) $ 9,000


NI % -20% -3% 10%

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