Twin Brothers Construction
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 | |||||||||||||
| Direct Construction Projects | 0% | $0 | $0 | $0 | $10,000 | $10,000 | $10,000 | $15,000 | $15,000 | $15,000 | $20,000 | $20,000 | $20,000 |
| Building Renovations | 0% | $7,500 | $7,500 | $8,000 | $8,000 | $9,000 | $9,000 | $10,000 | $10,000 | $12,000 | $12,000 | $15,000 | $15,000 |
| Building Rentals | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Sale of Components and Goods | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other | 0% | $0 | $0 | $0 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
| Total Sales | $7,500 | $7,500 | $8,000 | $19,000 | $20,000 | $20,000 | $26,000 | $26,000 | $28,000 | $33,000 | $36,000 | $36,000 | |
| 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 | |
| All construction work | 40% | $0 | $0 | $0 | $4,000 | $4,000 | $4,000 | $6,000 | $6,000 | $6,000 | $8,000 | $8,000 | $8,000 |
| Renovations | 40% | $3,000 | $3,000 | $3,200 | $3,200 | $3,600 | $3,600 | $4,000 | $4,000 | $4,800 | $4,800 | $6,000 | $6,000 |
| Rentals | 20% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Sale of Components and Goods | 20% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other | 10% | $0 | $0 | $0 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
| Subtotal Direct Cost of Sales | $3,000 | $3,000 | $3,200 | $8,200 | $8,600 | $8,600 | $11,000 | $11,000 | $11,800 | $13,800 | $15,000 | $15,000 | |
| 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 | ||
| Chairman (Principal Owner) | 0% | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 |
| CEO (Secondary Owner) | 0% | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 |
| Office Clerk (Temporary Hire) | 0% | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,500 | $1,500 | $1,500 | $1,750 | $1,750 | $1,750 |
| Foreman (Temporary Hire) | 0% | $0 | $0 | $0 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 |
| Technical Employee (Part-time) | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 |
| Total People | 3 | 3 | 3 | 4 | 4 | 4 | 5 | 5 | 5 | 5 | 5 | 5 | |
| Total Payroll | $4,250 | $4,250 | $4,250 | $6,650 | $6,650 | $6,650 | $8,400 | $8,400 | $8,400 | $8,650 | $8,650 | $8,650 | |
| 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% | |
| Sales on Credit | 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 | |
| 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 | $7,500 | $7,500 | $8,000 | $19,000 | $20,000 | $20,000 | $26,000 | $26,000 | $28,000 | $33,000 | $36,000 | $36,000 | |
| Direct Cost of Sales | $3,000 | $3,000 | $3,200 | $8,200 | $8,600 | $8,600 | $11,000 | $11,000 | $11,800 | $13,800 | $15,000 | $15,000 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $3,000 | $3,000 | $3,200 | $8,200 | $8,600 | $8,600 | $11,000 | $11,000 | $11,800 | $13,800 | $15,000 | $15,000 | |
| Gross Margin | $4,500 | $4,500 | $4,800 | $10,800 | $11,400 | $11,400 | $15,000 | $15,000 | $16,200 | $19,200 | $21,000 | $21,000 | |
| Gross Margin % | 60.00% | 60.00% | 60.00% | 56.84% | 57.00% | 57.00% | 57.69% | 57.69% | 57.86% | 58.18% | 58.33% | 58.33% | |
| Expenses | |||||||||||||
| Payroll | $4,250 | $4,250 | $4,250 | $6,650 | $6,650 | $6,650 | $8,400 | $8,400 | $8,400 | $8,650 | $8,650 | $8,650 | |
| Sales and Marketing and Other Expenses | $500 | $500 | $500 | $500 | $500 | $500 | $750 | $750 | $750 | $750 | $750 | $750 | |
| Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Gasoline and oil | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
| Telephone | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | |
| Utilities | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | |
| Insurance | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | |
| Rent | $1,500 | $543 | $543 | $543 | $543 | $543 | $543 | $543 | $543 | $543 | $543 | $543 | |
| Payroll Taxes | 15% | $543 | $543 | $543 | $543 | $543 | $543 | $543 | $543 | $543 | $543 | $543 | $544 |
| Website Maintenance & Support | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | |
| Consultants | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Advertising | 15% | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 |
| Misc. Other Expenses | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
| Total Operating Expenses | $9,868 | $8,912 | $8,912 | $11,312 | $11,312 | $11,312 | $13,312 | $13,312 | $13,312 | $13,562 | $13,562 | $13,562 | |
| Profit Before Interest and Taxes | ($5,368) | ($4,412) | ($4,112) | ($512) | $88 | $88 | $1,688 | $1,688 | $2,888 | $5,638 | $7,438 | $7,438 | |
| EBITDA | ($5,368) | ($4,412) | ($4,112) | ($512) | $88 | $88 | $1,688 | $1,688 | $2,888 | $5,638 | $7,438 | $7,438 | |
| Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $625 | |
| Taxes Incurred | ($1,611) | ($1,324) | ($1,234) | ($154) | $26 | $26 | $506 | $506 | $866 | $1,691 | $2,231 | $2,044 | |
| Net Profit | ($3,758) | ($3,088) | ($2,878) | ($358) | $62 | $62 | $1,182 | $1,182 | $2,022 | $3,947 | $5,207 | $4,769 | |
| Net Profit/Sales | -50.11% | -41.18% | -35.98% | -1.89% | 0.31% | 0.31% | 4.54% | 4.54% | 7.22% | 11.96% | 14.46% | 13.25% | |
| 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 | $7,500 | $7,500 | $8,000 | $19,000 | $20,000 | $20,000 | $26,000 | $26,000 | $28,000 | $33,000 | $36,000 | $36,000 | |
| Subtotal Cash from Operations | $7,500 | $7,500 | $8,000 | $19,000 | $20,000 | $20,000 | $26,000 | $26,000 | $28,000 | $33,000 | $36,000 | $36,000 | |
| 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 | $75,000 | |
| 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 | $7,500 | $7,500 | $8,000 | $19,000 | $20,000 | $20,000 | $26,000 | $26,000 | $28,000 | $33,000 | $36,000 | $111,000 | |
| 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 | $4,250 | $4,250 | $4,250 | $6,650 | $6,650 | $6,650 | $8,400 | $8,400 | $8,400 | $8,650 | $8,650 | $8,650 | |
| Bill Payments | $234 | $6,986 | $6,348 | $6,831 | $12,728 | $13,288 | $13,393 | $16,418 | $16,457 | $17,672 | $20,461 | $22,158 | |
| Subtotal Spent on Operations | $4,484 | $11,236 | $10,598 | $13,481 | $19,378 | $19,938 | $21,793 | $24,818 | $24,857 | $26,322 | $29,111 | $30,808 | |
| 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 | $100,000 | |
| Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Spent | $4,484 | $11,236 | $10,598 | $13,481 | $19,378 | $19,938 | $21,793 | $24,818 | $24,857 | $26,322 | $29,111 | $130,808 | |
| Net Cash Flow | $3,016 | ($3,736) | ($2,598) | $5,519 | $622 | $62 | $4,207 | $1,182 | $3,143 | $6,678 | $6,889 | ($19,808) | |
| Cash Balance | $53,016 | $49,281 | $46,683 | $52,202 | $52,824 | $52,886 | $57,093 | $58,275 | $61,418 | $68,095 | $74,984 | $55,176 | |
| 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 | $50,000 | $53,016 | $49,281 | $46,683 | $52,202 | $52,824 | $52,886 | $57,093 | $58,275 | $61,418 | $68,095 | $74,984 | $55,176 |
| Other Current Assets | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
| Total Current Assets | $55,000 | $58,016 | $54,281 | $51,683 | $57,202 | $57,824 | $57,886 | $62,093 | $63,275 | $66,418 | $73,095 | $79,984 | $60,176 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $100,000 |
| Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $100,000 |
| Total Assets | $55,000 | $58,016 | $54,281 | $51,683 | $57,202 | $57,824 | $57,886 | $62,093 | $63,275 | $66,418 | $73,095 | $79,984 | $160,176 |
| 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 | $6,774 | $6,127 | $6,407 | $12,285 | $12,845 | $12,845 | $15,871 | $15,871 | $16,992 | $19,723 | $21,405 | $21,828 |
| 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 | $6,774 | $6,127 | $6,407 | $12,285 | $12,845 | $12,845 | $15,871 | $15,871 | $16,992 | $19,723 | $21,405 | $21,828 |
| Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $75,000 |
| Total Liabilities | $0 | $6,774 | $6,127 | $6,407 | $12,285 | $12,845 | $12,845 | $15,871 | $15,871 | $16,992 | $19,723 | $21,405 | $96,828 |
| Paid-in Capital | $90,000 | $90,000 | $90,000 | $90,000 | $90,000 | $90,000 | $90,000 | $90,000 | $90,000 | $90,000 | $90,000 | $90,000 | $90,000 |
| Retained Earnings | ($35,000) | ($35,000) | ($35,000) | ($35,000) | ($35,000) | ($35,000) | ($35,000) | ($35,000) | ($35,000) | ($35,000) | ($35,000) | ($35,000) | ($35,000) |
| Earnings | $0 | ($3,758) | ($6,846) | ($9,725) | ($10,083) | ($10,021) | ($9,960) | ($8,778) | ($7,596) | ($5,575) | ($1,628) | $3,579 | $8,348 |
| Total Capital | $55,000 | $51,242 | $48,154 | $45,275 | $44,917 | $44,979 | $45,040 | $46,222 | $47,404 | $49,425 | $53,372 | $58,579 | $63,348 |
| Total Liabilities and Capital | $55,000 | $58,016 | $54,281 | $51,683 | $57,202 | $57,824 | $57,886 | $62,093 | $63,275 | $66,418 | $73,095 | $79,984 | $160,176 |
| Net Worth | $55,000 | $51,242 | $48,154 | $45,275 | $44,917 | $44,979 | $45,040 | $46,222 | $47,404 | $49,425 | $53,372 | $58,579 | $63,348 |
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