Electronic Detectives
Appendix
| Sales Forecast | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Sales | |||||||||||||
| Malpractice lawsuits | 0% | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $5,000 | $7,000 | $7,000 | $9,000 | $9,000 | $9,000 |
| Corporate/business lawsuits | 0% | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $5,000 | $5,000 | $5,000 | $9,000 | $11,000 | $13,000 |
| Intellectual property lawsuits | 0% | $0 | $0 | $0 | $0 | $0 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
| General practice lawsuits | 0% | $0 | $0 | $0 | $0 | $2,000 | $2,000 | $3,000 | $4,000 | $4,000 | $5,000 | $5,000 | $5,000 |
| Environmental lawsuits | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $5,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 |
| Total Sales | $7,000 | $7,000 | $7,000 | $7,000 | $9,000 | $11,000 | $20,000 | $24,000 | $24,000 | $31,000 | $33,000 | $35,000 | |
| Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Row 1 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Personnel Plan | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Mr. Radcliffe – President | 0% | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
| Mrs. Walters – CFO | 0% | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
| Mr. Rinke – Operations Manager | 0% | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
| Mr. Orcott – Law Consultant | 0% | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
| Computer Forensics Analyst | 0% | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
| Computer Forensics Analyst | 0% | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
| Computer Forensics Analyst | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Computer Forensics Analyst | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total People | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total Payroll | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | |
| General Assumptions | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
| Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
| Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
| Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
| Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Pro Forma Profit and Loss | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Sales | $7,000 | $7,000 | $7,000 | $7,000 | $9,000 | $11,000 | $20,000 | $24,000 | $24,000 | $31,000 | $33,000 | $35,000 | |
| Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Other Costs of Sales | $500 | $500 | $500 | $500 | $500 | $600 | $700 | $1,000 | $2,000 | $2,000 | $2,000 | $5,000 | |
| Total Cost of Sales | $500 | $500 | $500 | $500 | $500 | $600 | $700 | $1,000 | $2,000 | $2,000 | $2,000 | $5,000 | |
| Gross Margin | $6,500 | $6,500 | $6,500 | $6,500 | $8,500 | $10,400 | $19,300 | $23,000 | $22,000 | $29,000 | $31,000 | $30,000 | |
| Gross Margin % | 92.86% | 92.86% | 92.86% | 92.86% | 94.44% | 94.55% | 96.50% | 95.83% | 91.67% | 93.55% | 93.94% | 85.71% | |
| Expenses | |||||||||||||
| Payroll | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | |
| Sales and Marketing and Other Expenses | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | |
| Depreciation | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Rent | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
| Utilities | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Insurance | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
| Travel | $600 | $0 | $600 | $1,000 | $1,000 | $0 | $1,000 | $0 | $1,000 | $1,000 | $1,000 | $1,000 | |
| Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | |
| Total Operating Expenses | $25,400 | $24,800 | $25,400 | $25,800 | $25,800 | $24,800 | $25,800 | $24,800 | $25,800 | $25,800 | $25,800 | $25,800 | |
| Profit Before Interest and Taxes | ($18,900) | ($18,300) | ($18,900) | ($19,300) | ($17,300) | ($14,400) | ($6,500) | ($1,800) | ($3,800) | $3,200 | $5,200 | $4,200 | |
| EBITDA | ($18,700) | ($18,100) | ($18,700) | ($19,100) | ($17,100) | ($14,200) | ($6,300) | ($1,600) | ($3,600) | $3,400 | $5,400 | $4,400 | |
| Interest Expense | $1,417 | $1,417 | $1,417 | $1,417 | $1,417 | $1,417 | $1,417 | $1,417 | $1,417 | $1,417 | $1,417 | $1,417 | |
| Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Net Profit | ($20,317) | ($19,717) | ($20,317) | ($20,717) | ($18,717) | ($15,817) | ($7,917) | ($3,217) | ($5,217) | $1,783 | $3,783 | $2,783 | |
| Net Profit/Sales | -290.24% | -281.67% | -290.24% | -295.95% | -207.96% | -143.79% | -39.58% | -13.40% | -21.74% | 5.75% | 11.46% | 7.95% | |
| Pro Forma Cash Flow | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Cash Received | |||||||||||||
| Cash from Operations | |||||||||||||
| Cash Sales | $1,750 | $1,750 | $1,750 | $1,750 | $2,250 | $2,750 | $5,000 | $6,000 | $6,000 | $7,750 | $8,250 | $8,750 | |
| Cash from Receivables | $0 | $175 | $5,250 | $5,250 | $5,250 | $5,300 | $6,800 | $8,475 | $15,100 | $18,000 | $18,175 | $23,300 | |
| Subtotal Cash from Operations | $1,750 | $1,925 | $7,000 | $7,000 | $7,500 | $8,050 | $11,800 | $14,475 | $21,100 | $25,750 | $26,425 | $32,050 | |
| Additional Cash Received | |||||||||||||
| Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Received | $1,750 | $1,925 | $7,000 | $7,000 | $7,500 | $8,050 | $11,800 | $14,475 | $21,100 | $25,750 | $26,425 | $32,050 | |
| Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Expenditures from Operations | |||||||||||||
| Cash Spending | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | |
| Bill Payments | $44,054 | $9,097 | $8,537 | $9,130 | $9,517 | $9,487 | $8,653 | $9,693 | $9,083 | $11,017 | $11,017 | $11,117 | |
| Subtotal Spent on Operations | $62,054 | $27,097 | $26,537 | $27,130 | $27,517 | $27,487 | $26,653 | $27,693 | $27,083 | $29,017 | $29,017 | $29,117 | |
| Additional Cash Spent | |||||||||||||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Spent | $62,054 | $27,097 | $26,537 | $27,130 | $27,517 | $27,487 | $26,653 | $27,693 | $27,083 | $29,017 | $29,017 | $29,117 | |
| Net Cash Flow | ($60,304) | ($25,172) | ($19,537) | ($20,130) | ($20,017) | ($19,437) | ($14,853) | ($13,218) | ($5,983) | ($3,267) | ($2,592) | $2,933 | |
| Cash Balance | $281,246 | $256,074 | $236,538 | $216,408 | $196,391 | $176,954 | $162,101 | $148,883 | $142,899 | $139,633 | $137,041 | $139,974 | |
| Pro Forma Balance Sheet | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Assets | Starting Balances | ||||||||||||
| Current Assets | |||||||||||||
| Cash | $341,550 | $281,246 | $256,074 | $236,538 | $216,408 | $196,391 | $176,954 | $162,101 | $148,883 | $142,899 | $139,633 | $137,041 | $139,974 |
| Accounts Receivable | $0 | $5,250 | $10,325 | $10,325 | $10,325 | $11,825 | $14,775 | $22,975 | $32,500 | $35,400 | $40,650 | $47,225 | $50,175 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $341,550 | $286,496 | $266,399 | $246,863 | $226,733 | $208,216 | $191,729 | $185,076 | $181,383 | $178,299 | $180,283 | $184,266 | $190,149 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $128,000 | $128,000 | $128,000 | $128,000 | $128,000 | $128,000 | $128,000 | $128,000 | $128,000 | $128,000 | $128,000 | $128,000 | $128,000 |
| Accumulated Depreciation | $0 | $200 | $400 | $600 | $800 | $1,000 | $1,200 | $1,400 | $1,600 | $1,800 | $2,000 | $2,200 | $2,400 |
| Total Long-term Assets | $128,000 | $127,800 | $127,600 | $127,400 | $127,200 | $127,000 | $126,800 | $126,600 | $126,400 | $126,200 | $126,000 | $125,800 | $125,600 |
| Total Assets | $469,550 | $414,296 | $393,999 | $374,263 | $353,933 | $335,216 | $318,529 | $311,676 | $307,783 | $304,499 | $306,283 | $310,066 | $315,749 |
| Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Current Liabilities | |||||||||||||
| Accounts Payable | $43,750 | $8,813 | $8,233 | $8,813 | $9,199 | $9,199 | $8,329 | $9,393 | $8,716 | $10,649 | $10,649 | $10,649 | $13,549 |
| Current Borrowing | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $93,750 | $58,813 | $58,233 | $58,813 | $59,199 | $59,199 | $58,329 | $59,393 | $58,716 | $60,649 | $60,649 | $60,649 | $63,549 |
| Long-term Liabilities | $120,000 | $120,000 | $120,000 | $120,000 | $120,000 | $120,000 | $120,000 | $120,000 | $120,000 | $120,000 | $120,000 | $120,000 | $120,000 |
| Total Liabilities | $213,750 | $178,813 | $178,233 | $178,813 | $179,199 | $179,199 | $178,329 | $179,393 | $178,716 | $180,649 | $180,649 | $180,649 | $183,549 |
| Paid-in Capital | $297,000 | $297,000 | $297,000 | $297,000 | $297,000 | $297,000 | $297,000 | $297,000 | $297,000 | $297,000 | $297,000 | $297,000 | $297,000 |
| Retained Earnings | ($41,200) | ($41,200) | ($41,200) | ($41,200) | ($41,200) | ($41,200) | ($41,200) | ($41,200) | ($41,200) | ($41,200) | ($41,200) | ($41,200) | ($41,200) |
| Earnings | $0 | ($20,317) | ($40,033) | ($60,350) | ($81,067) | ($99,783) | ($115,600) | ($123,517) | ($126,733) | ($131,950) | ($130,167) | ($126,383) | ($123,600) |
| Total Capital | $255,800 | $235,483 | $215,767 | $195,450 | $174,733 | $156,017 | $140,200 | $132,283 | $129,067 | $123,850 | $125,633 | $129,417 | $132,200 |
| Total Liabilities and Capital | $469,550 | $414,296 | $393,999 | $374,263 | $353,933 | $335,216 | $318,529 | $311,676 | $307,783 | $304,499 | $306,283 | $310,066 | $315,749 |
| Net Worth | $255,800 | $235,483 | $215,767 | $195,450 | $174,733 | $156,017 | $140,200 | $132,283 | $129,067 | $123,850 | $125,633 | $129,417 | $132,200 |
By 
