Miles Garden Carpentry
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 | |||||||||||||
| New Home Construction | 0% | $19,000 | $19,000 | $19,000 | $23,000 | $27,000 | $30,000 | $29,000 | $24,000 | $19,000 | $14,000 | $11,000 | $14,000 |
| Remodeling Projects | 0% | $0 | $0 | $4,000 | $6,000 | $7,000 | $9,000 | $9,000 | $8,000 | $6,000 | $4,000 | $4,000 | $6,000 |
| Total Sales | $19,000 | $19,000 | $23,000 | $29,000 | $34,000 | $39,000 | $38,000 | $32,000 | $25,000 | $18,000 | $15,000 | $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 | |
| New Home Construction | $5,000 | $5,000 | $5,000 | $6,400 | $7,800 | $9,000 | $8,000 | $6,400 | $5,000 | $4,000 | $3,000 | $4,000 | |
| Remodeling Projects | $0 | $0 | $1,000 | $1,800 | $2,200 | $2,700 | $2,700 | $2,000 | $1,800 | $1,200 | $1,200 | $1,800 | |
| Subtotal Direct Cost of Sales | $5,000 | $5,000 | $6,000 | $8,200 | $10,000 | $11,700 | $10,700 | $8,400 | $6,800 | $5,200 | $4,200 | $5,800 | |
| 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 | ||
| Joan Miles | 0% | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
| Garden Carpentry Staff (3) | 0% | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 |
| 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 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | |
| 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 | $19,000 | $19,000 | $23,000 | $29,000 | $34,000 | $39,000 | $38,000 | $32,000 | $25,000 | $18,000 | $15,000 | $20,000 | |
| Direct Cost of Sales | $5,000 | $5,000 | $6,000 | $8,200 | $10,000 | $11,700 | $10,700 | $8,400 | $6,800 | $5,200 | $4,200 | $5,800 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $5,000 | $5,000 | $6,000 | $8,200 | $10,000 | $11,700 | $10,700 | $8,400 | $6,800 | $5,200 | $4,200 | $5,800 | |
| Gross Margin | $14,000 | $14,000 | $17,000 | $20,800 | $24,000 | $27,300 | $27,300 | $23,600 | $18,200 | $12,800 | $10,800 | $14,200 | |
| Gross Margin % | 73.68% | 73.68% | 73.91% | 71.72% | 70.59% | 70.00% | 71.84% | 73.75% | 72.80% | 71.11% | 72.00% | 71.00% | |
| Expenses | |||||||||||||
| Payroll | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | |
| Sales and Marketing and Other Expenses | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | |
| Depreciation | $357 | $357 | $357 | $357 | $357 | $357 | $357 | $357 | $357 | $357 | $357 | $357 | |
| Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| 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% | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $14,557 | $14,557 | $14,557 | $14,557 | $14,557 | $14,557 | $14,557 | $14,557 | $14,557 | $14,557 | $14,557 | $14,557 | |
| Profit Before Interest and Taxes | ($557) | ($557) | $2,443 | $6,243 | $9,443 | $12,743 | $12,743 | $9,043 | $3,643 | ($1,757) | ($3,757) | ($357) | |
| EBITDA | ($200) | ($200) | $2,800 | $6,600 | $9,800 | $13,100 | $13,100 | $9,400 | $4,000 | ($1,400) | ($3,400) | $0 | |
| Interest Expense | $410 | $403 | $396 | $389 | $382 | $375 | $368 | $361 | $354 | $347 | $340 | $333 | |
| Taxes Incurred | ($290) | ($288) | $614 | $1,756 | $2,718 | $3,710 | $3,712 | $2,605 | $987 | ($631) | ($1,229) | ($207) | |
| Net Profit | ($677) | ($672) | $1,433 | $4,098 | $6,343 | $8,658 | $8,662 | $6,077 | $2,302 | ($1,473) | ($2,868) | ($483) | |
| Net Profit/Sales | -3.56% | -3.54% | 6.23% | 14.13% | 18.66% | 22.20% | 22.80% | 18.99% | 9.21% | -8.18% | -19.12% | -2.42% | |
| 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 | $19,000 | $19,000 | $23,000 | $29,000 | $34,000 | $39,000 | $38,000 | $32,000 | $25,000 | $18,000 | $15,000 | $20,000 | |
| Subtotal Cash from Operations | $19,000 | $19,000 | $23,000 | $29,000 | $34,000 | $39,000 | $38,000 | $32,000 | $25,000 | $18,000 | $15,000 | $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 | $19,000 | $19,000 | $23,000 | $29,000 | $34,000 | $39,000 | $38,000 | $32,000 | $25,000 | $18,000 | $15,000 | $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 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | |
| Bill Payments | $311 | $9,320 | $9,378 | $11,321 | $14,637 | $17,390 | $19,952 | $18,867 | $15,458 | $12,233 | $9,062 | $7,598 | |
| Subtotal Spent on Operations | $10,311 | $19,320 | $19,378 | $21,321 | $24,637 | $27,390 | $29,952 | $28,867 | $25,458 | $22,233 | $19,062 | $17,598 | |
| 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 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | |
| 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 | $11,144 | $20,153 | $20,211 | $22,154 | $25,470 | $28,223 | $30,785 | $29,700 | $26,291 | $23,066 | $19,895 | $18,431 | |
| Net Cash Flow | $7,856 | ($1,153) | $2,789 | $6,846 | $8,530 | $10,777 | $7,215 | $2,300 | ($1,291) | ($5,066) | ($4,895) | $1,569 | |
| Cash Balance | $20,556 | $19,404 | $22,193 | $29,039 | $37,569 | $48,346 | $55,561 | $57,861 | $56,570 | $51,504 | $46,608 | $48,177 | |
| 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 | $12,700 | $20,556 | $19,404 | $22,193 | $29,039 | $37,569 | $48,346 | $55,561 | $57,861 | $56,570 | $51,504 | $46,608 | $48,177 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $12,700 | $20,556 | $19,404 | $22,193 | $29,039 | $37,569 | $48,346 | $55,561 | $57,861 | $56,570 | $51,504 | $46,608 | $48,177 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $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 |
| Accumulated Depreciation | $0 | $357 | $714 | $1,071 | $1,428 | $1,785 | $2,142 | $2,499 | $2,856 | $3,213 | $3,570 | $3,927 | $4,284 |
| Total Long-term Assets | $35,000 | $34,643 | $34,286 | $33,929 | $33,572 | $33,215 | $32,858 | $32,501 | $32,144 | $31,787 | $31,430 | $31,073 | $30,716 |
| Total Assets | $47,700 | $55,199 | $53,690 | $56,122 | $62,611 | $70,784 | $81,204 | $88,062 | $90,005 | $88,357 | $82,934 | $77,681 | $78,893 |
| 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 | $9,009 | $9,004 | $10,836 | $14,060 | $16,724 | $19,319 | $18,348 | $15,047 | $11,929 | $8,812 | $7,261 | $9,789 |
| 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 | $9,009 | $9,004 | $10,836 | $14,060 | $16,724 | $19,319 | $18,348 | $15,047 | $11,929 | $8,812 | $7,261 | $9,789 |
| Long-term Liabilities | $50,000 | $49,167 | $48,334 | $47,501 | $46,668 | $45,835 | $45,002 | $44,169 | $43,336 | $42,503 | $41,670 | $40,837 | $40,004 |
| Total Liabilities | $50,000 | $58,176 | $57,338 | $58,337 | $60,728 | $62,559 | $64,321 | $62,517 | $58,383 | $54,432 | $50,482 | $48,098 | $49,793 |
| Paid-in Capital | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 |
| Retained Earnings | ($62,300) | ($62,300) | ($62,300) | ($62,300) | ($62,300) | ($62,300) | ($62,300) | ($62,300) | ($62,300) | ($62,300) | ($62,300) | ($62,300) | ($62,300) |
| Earnings | $0 | ($677) | ($1,349) | $84 | $4,182 | $10,525 | $19,183 | $27,845 | $33,922 | $36,225 | $34,752 | $31,883 | $31,400 |
| Total Capital | ($2,300) | ($2,977) | ($3,649) | ($2,216) | $1,882 | $8,225 | $16,883 | $25,545 | $31,622 | $33,925 | $32,452 | $29,583 | $29,100 |
| Total Liabilities and Capital | $47,700 | $55,199 | $53,690 | $56,122 | $62,611 | $70,784 | $81,204 | $88,062 | $90,005 | $88,357 | $82,934 | $77,681 | $78,893 |
| Net Worth | ($2,300) | ($2,977) | ($3,649) | ($2,216) | $1,882 | $8,225 | $16,883 | $25,545 | $31,622 | $33,925 | $32,452 | $29,583 | $29,100 |
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