This should be a three-year projection with notes of explanation

Include notes of explanation.

7. Detailed Cost of Goods Sold Schedule

8. Financial Statements

Audited financial statements for past 3-5 years.

9. Collateral

List of collateral offered to secure the loan.

10. Personal Financial Statements

Personal financial statements of all owners with 20 percent or more ownership .

11. Aging of Accounts Payable and Accounts Receivable (if an existing business)

Financial Data Sample

Financial Data
The most important thing for Catle Producers Marketing Coop at this point is to acquire ample financing to take the organization to the next level. Current production capacity of Larry and Linda’s Locker is too small to butcher as many animals as the producers need to move, and the capabilities of the processing plant will not facilitate anything other than fresh meat processing and freezing. Many of the parts of the animal that are profit centers for large-scale packers are presently cost centers for the cooperative as they must be properly disposed of.

Members’ sweat equity and their proposed willingness to sometimes take slightly less than the best available market price for their cattle will help the cooperative maintain its margins. At every opportunity, the private resources of the members, and their volunteer time, will be used to offset the costs of operating costs associated with:

• administration;
• utilities, fuel, telephone;
• salaries and contract services; and
• repairs, replacements and preventive maintenance.

The cooperative’s ability to retain earnings and defer dividends will also serve to help meet financial requirements of the new business.

Sources of Funds
Bank loan ............................................................................................................... $125,000
Owner equity........................................................................................................... $260,000
State of Iowa.............................................................................................................. $40,000

Uses of Funds
Equipment purchase ............................................................................................ $225,000
Working capital ...................................................................................................... $100,000
Down payment for processing facility ................................................................ $100,000
(Note: Total purchase price on locker plant is $300,000, owner financing,  10 years,
10 percent interest.)

Equipment List
Cooper vacuum packing machine ...................................................................... $70,000
10 horsepower rotary vane vacuum pump .......................................................... $1,000
Lorenz smokehouse with microprocessor control ........................................ $150,000
Used electric lift ......................................................................................................... $2,000
Total ........................................................................................................................ $225,000

Balance Sheet
Year: 2000
Current Assets
Cash ............................................................................................................................ 21,468
Accounts Receivable .................................................................................................. 8,000
Inventory ...................................................................................................................... 10,000
Prepaid Expenses .............................................................................................................. 0

Total Current Assets ................................................................................................ 39,468

Property and Equipment
Building .................................................................................................................... 350,000
Machinery and Equipment .................................................................................... 225,000
Furniture and Fixtures ................................................................................................ 3,000
Vehicles ...................................................................................................................... 20,000
Less: Accum Depr .................................................................................................... 49,798

Total Assets ............................................................................................................ 567,670

Current Liabilities
Accounts Payable ....................................................................................................... 4,385
Current Portion, Debt ................................................................................................. 2,654
Accrued Expenses ..................................................................................................... 5,380
Taxes Owed ................................................................................................................. 1,200

Total Current Liabilities ........................................................................................... 13,619

Long Term Debt and Equity
Bank Loan ................................................................................................................ 125,000
Building Purchase .................................................................................................. 200,000

Total Liabilities ........................................................................................................ 338,619

Stockholder’s Equity
Capital Stock ............................................................................................................ 260,000
Paid in Capital
Retained Earnings ................................................................................................... -30,949

Total Net Worth ....................................................................................................... 229,051

Total Liabilities and Net Worth ............................................................................. 567,670

Breakeven Projection
Year: 2000
BE$ = Fixed Expenses/Gross Profit Margin
BE $ = 177333.3
For year 2000, Cattle Producers Marketing Coop is projecting to achieve 56.39 %
of sales

Income Projections
                                                                         2000                          2001                         2002
Sales ........................................................ 100,000 .................. 200,000 ................. 300,000
Cost of Sales
Material ......................................................, 20,000 .................... 50,000 .................... 65,000
Labor ........................................................... 28,000 .................... 50,000 .................... 50,000
Supplies ....................................................... 2,000 ....................... 4,000 ...................... 4,000
Gross Profit ................................................ 50,000 .................... 96,000 .................. 181,000

Operating Expenses
Officer Salaries ........................................... 40,000 .................... 40,000 .................... 42,000
Office Salaries ............................................ 12,000 .................... 12,600 .................... 13,230
Supplies - Office ............................................... 500 ......................... 550 .......................... 580
Advertising ......................................................... 500 ......................... 500 .......................... 525
Travel .................................................................. 250 ......................... 300 .......................... 315
Depreciation .................................................. 1,060 ....................... 1,060 ...................... 1,113
Freight/Postage ............................................... 450 .......................... 500 .......................... 525
Insurance ........................................................... 700 ......................... 700 .......................... 735
Utilities ............................................................ 1,200 ...................... 1,300 ....................... 1,365
Accounting/Legal ........................................... 1,500 ...................... 1,500 ...................... 1,575
Taxes ............................................................... 1,200 ...................... 1,200 ...................... 1,260
Telephone ...................................................... 2,000 ...................... 2,000 ....................... 2,100
Repairs and Maintenance .............................. 500 ......................... 500 ........................... 525
Auto/Truck .......................................................... 250 ......................... 250 ........................... 265
Rent or Lease Expense ....................................... 0 ...................... 3,000 ....................... 3,000
Total Operating Expenses ......................... 62,110 ................... 65,960 ..................... 69,113

Operating Profit ............................................ -12,110 .................... 30,040 ................. 111,887
Interest Expense .......................................... 18,839 .................... 18,839 ................... 18,839
Other Income
Other Expense

Net Income Before Taxes ......................... -30,949 .................... 11,201 ................... 93,048
Estimated Income Taxes

Net Profit ...................................................... -30,949 .................... 11,201 ................... 93,048


Monthly Cash Flow Example (JPEG)




Financial Statements
No audited financial statements are available at this time. BigFort CPA firm has been retained to prepare audited statements for the past year.

Collateral
Building and Property Equity: .............................................................................. $100,000
Equipment: ............................................................................................................. $100,000
Personal CD: ........................................................................................................... $50,000

Personal Financial Statements
Personal financial statements are already on file at the bank.

Aged Statements
Payables: ............................................................................................ All bills are current
Account Receivables: 0-30 .................................................................................... $9,000 
                                       31-60 .................................................................................. $1,000 
                                                 61–90 ................................................................................. 0