business plan financial model inquiry

[robismyname]

Im looking at a financial model I found online.

DOWNLOAD: Restaurant Business Plan Template

Can someone help me understand how 181,610 was derived in the "Net income before income taxes" section?

Once you view the webpage scroll down to the "Blue Water LLC" financial model.

Thanks in Advance

 

[bklynboy]

Simple. Gross Profit (1,562,299) less Payroll (717,354) less other controllable expenses (332,439) less occupancy costs and depreciation (280,750) less other (income)expenses (50,147). There is rounding so its off by $1.

Why is this causing you a problem as I dont see the difficulty?

 

[robismyname]

Why is this causing you a problem as I dont see the difficulty?

(4800) threw me off. Now i see that it means -4800. Amateur mistake.

Can you tell me what is the diference between "cash flow before income taxes" 219,530 and "net income before income taxes" 181,610?

 

[bklynboy]

Net income is the calculated operating profit. Cash flow is simply the amount of cash used in the period which in this example is taking net income and subtracting any non-cash items in net income such as depreciation (a non-cash item) and adding back loan payments ( a cash item that is not part of net income but accounted solely on the balance sheet).

 

[robismyname]

Net income is the calculated operating profit. Cash flow is simply the amount of cash used in the period which in this example is taking net income and subtracting any non-cash items in net income such as depreciation (a non-cash item) and adding back loan payments ( a cash item that is not part of net income but accounted solely on the balance sheet).

Is the Investment Party Equity Contribution of $375,000 related to the Loan Principal Payments of 46,117 yr1, 49,945 yr2, 54,091 yr3, 58,580 yr4, 63,442 yr5?

Im trying to understand how the yearly loan principal payments were derived.

Im asking all these questions for understanding how to put a business plan financial model together in case i ever need to make one of my own.

 

[bklynboy]

I dont think it has anything to do with the $375K as this was equity invested and not a loan. When setting up a company, funds invested by the partners are treated as capital and not loans. Each investor earns a profit based on their shares owned. These are not loans. A loan is made by the company and is not capital but an obligation to repay with interest.

I cant tell where the loan details are kept in this example and how they calculate the interest and principal but can say that when you add the interest line and the loan repaid lines in the income statement they equal 98,665 each year (so it looks like its similar to a mortgage loan where its a set payment each year with interest being smaller each period and principal becoming larger). I tried to download the file to see how they did the calc but you need to be a member to get more insight. Sorry I couldn't be more help.