Abbey Electronic Services
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 | |||||||||||||
| Service Contracts | 0% | $9,000 | $11,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $11,000 | $12,000 | $11,000 | $12,000 | $11,000 |
| Walk-In Customers | 0% | $4,000 | $5,000 | $7,000 | $8,000 | $9,000 | $10,000 | $8,000 | $9,000 | $10,000 | $10,000 | $9,000 | $9,000 |
| Total Sales | $13,000 | $16,000 | $19,000 | $20,000 | $21,000 | $22,000 | $20,000 | $20,000 | $22,000 | $21,000 | $21,000 | $20,000 | |
| 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 | |
| Service Contracts | $300 | $400 | $450 | $400 | $400 | $450 | $500 | $500 | $475 | $575 | $600 | $500 | |
| Walk-In Customers | $200 | $200 | $300 | $350 | $350 | $400 | $450 | $450 | $500 | $500 | $500 | $500 | |
| Subtotal Direct Cost of Sales | $500 | $600 | $750 | $750 | $750 | $850 | $950 | $950 | $975 | $1,075 | $1,100 | $1,000 | |
| 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 | ||
| Richard Abbey | 0% | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
| John Williamson | 0% | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
| Jim Logan | 0% | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
| Other | 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 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | |
| 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 | $13,000 | $16,000 | $19,000 | $20,000 | $21,000 | $22,000 | $20,000 | $20,000 | $22,000 | $21,000 | $21,000 | $20,000 | |
| Direct Cost of Sales | $500 | $600 | $750 | $750 | $750 | $850 | $950 | $950 | $975 | $1,075 | $1,100 | $1,000 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $500 | $600 | $750 | $750 | $750 | $850 | $950 | $950 | $975 | $1,075 | $1,100 | $1,000 | |
| Gross Margin | $12,500 | $15,400 | $18,250 | $19,250 | $20,250 | $21,150 | $19,050 | $19,050 | $21,025 | $19,925 | $19,900 | $19,000 | |
| Gross Margin % | 96.15% | 96.25% | 96.05% | 96.25% | 96.43% | 96.14% | 95.25% | 95.25% | 95.57% | 94.88% | 94.76% | 95.00% | |
| Expenses | |||||||||||||
| Payroll | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | |
| Sales and Marketing and Other Expenses | $800 | $800 | $900 | $1,000 | $500 | $400 | $500 | $500 | $300 | $600 | $600 | $500 | |
| Depreciation | $185 | $185 | $185 | $185 | $185 | $185 | $185 | $185 | $185 | $185 | $185 | $185 | |
| Leased Equipment | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | |
| Utilities | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Insurance | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Rent | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
| Payroll Taxes | 15% | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $17,185 | $17,185 | $17,285 | $17,385 | $16,885 | $16,785 | $16,885 | $16,885 | $16,685 | $16,985 | $16,985 | $16,885 | |
| Profit Before Interest and Taxes | ($4,685) | ($1,785) | $965 | $1,865 | $3,365 | $4,365 | $2,165 | $2,165 | $4,340 | $2,940 | $2,915 | $2,115 | |
| EBITDA | ($4,500) | ($1,600) | $1,150 | $2,050 | $3,550 | $4,550 | $2,350 | $2,350 | $4,525 | $3,125 | $3,100 | $2,300 | |
| Interest Expense | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | |
| Taxes Incurred | ($1,655) | ($786) | $39 | $309 | $759 | $1,060 | $399 | $399 | $1,052 | $632 | $624 | $384 | |
| Net Profit | ($3,863) | ($1,833) | $92 | $722 | $1,772 | $2,472 | $932 | $932 | $2,455 | $1,475 | $1,457 | $897 | |
| Net Profit/Sales | -29.71% | -11.46% | 0.49% | 3.61% | 8.44% | 11.24% | 4.66% | 4.66% | 11.16% | 7.02% | 6.94% | 4.49% | |
| 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 | $13,000 | $16,000 | $19,000 | $20,000 | $21,000 | $22,000 | $20,000 | $20,000 | $22,000 | $21,000 | $21,000 | $20,000 | |
| Subtotal Cash from Operations | $13,000 | $16,000 | $19,000 | $20,000 | $21,000 | $22,000 | $20,000 | $20,000 | $22,000 | $21,000 | $21,000 | $20,000 | |
| 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 | $13,000 | $16,000 | $19,000 | $20,000 | $21,000 | $22,000 | $20,000 | $20,000 | $22,000 | $21,000 | $21,000 | $20,000 | |
| 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 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | |
| Bill Payments | $156 | $4,710 | $5,684 | $6,735 | $7,091 | $7,053 | $7,327 | $6,883 | $6,899 | $7,360 | $7,341 | $7,343 | |
| Subtotal Spent on Operations | $12,156 | $16,710 | $17,684 | $18,735 | $19,091 | $19,053 | $19,328 | $18,883 | $18,899 | $19,360 | $19,341 | $19,343 | |
| 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 | $12,156 | $16,710 | $17,684 | $18,735 | $19,091 | $19,053 | $19,328 | $18,883 | $18,899 | $19,360 | $19,341 | $19,343 | |
| Net Cash Flow | $844 | ($710) | $1,316 | $1,265 | $1,909 | $2,947 | $673 | $1,117 | $3,101 | $1,640 | $1,659 | $657 | |
| Cash Balance | $10,044 | $9,334 | $10,650 | $11,915 | $13,824 | $16,771 | $17,444 | $18,561 | $21,662 | $23,302 | $24,961 | $25,618 | |
| 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 | $9,200 | $10,044 | $9,334 | $10,650 | $11,915 | $13,824 | $16,771 | $17,444 | $18,561 | $21,662 | $23,302 | $24,961 | $25,618 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $9,200 | $10,044 | $9,334 | $10,650 | $11,915 | $13,824 | $16,771 | $17,444 | $18,561 | $21,662 | $23,302 | $24,961 | $25,618 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 |
| Accumulated Depreciation | $0 | $185 | $370 | $555 | $740 | $925 | $1,110 | $1,295 | $1,480 | $1,665 | $1,850 | $2,035 | $2,220 |
| Total Long-term Assets | $100,000 | $99,815 | $99,630 | $99,445 | $99,260 | $99,075 | $98,890 | $98,705 | $98,520 | $98,335 | $98,150 | $97,965 | $97,780 |
| Total Assets | $109,200 | $109,859 | $108,964 | $110,095 | $111,175 | $112,899 | $115,661 | $116,149 | $117,081 | $119,997 | $121,452 | $122,926 | $123,398 |
| 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 | $0 | $4,522 | $5,460 | $6,499 | $6,856 | $6,808 | $7,098 | $6,653 | $6,653 | $7,115 | $7,096 | $7,113 | $6,687 |
| Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $0 | $4,522 | $5,460 | $6,499 | $6,856 | $6,808 | $7,098 | $6,653 | $6,653 | $7,115 | $7,096 | $7,113 | $6,687 |
| Long-term Liabilities | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 |
| Total Liabilities | $100,000 | $104,522 | $105,460 | $106,499 | $106,856 | $106,808 | $107,098 | $106,653 | $106,653 | $107,115 | $107,096 | $107,113 | $106,687 |
| Paid-in Capital | $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 |
| Retained Earnings | ($40,800) | ($40,800) | ($40,800) | ($40,800) | ($40,800) | ($40,800) | ($40,800) | ($40,800) | ($40,800) | ($40,800) | ($40,800) | ($40,800) | ($40,800) |
| Earnings | $0 | ($3,863) | ($5,696) | ($5,603) | ($4,881) | ($3,109) | ($637) | $295 | $1,227 | $3,682 | $5,157 | $6,614 | $7,511 |
| Total Capital | $9,200 | $5,337 | $3,504 | $3,597 | $4,319 | $6,091 | $8,563 | $9,495 | $10,427 | $12,882 | $14,357 | $15,814 | $16,711 |
| Total Liabilities and Capital | $109,200 | $109,859 | $108,964 | $110,095 | $111,175 | $112,899 | $115,661 | $116,149 | $117,081 | $119,997 | $121,452 | $122,926 | $123,398 |
| Net Worth | $9,200 | $5,337 | $3,504 | $3,597 | $4,319 | $6,091 | $8,563 | $9,495 | $10,427 | $12,882 | $14,357 | $15,814 | $16,711 |
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