Edgar Risk Ventures, Ltd.
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 | |||||||||||||
| Regional Releases | 0% | $0 | $0 | $22,545 | $0 | $22,545 | $0 | $0 | $0 | $0 | $45,090 | $0 | $0 |
| Community Dances | 0% | $5,450 | $16,350 | $5,450 | $5,450 | $5,450 | $5,450 | $10,900 | $10,900 | $10,900 | $16,350 | $0 | $16,350 |
| Miscellaneous Projects | 0% | $5,478 | $5,478 | $5,478 | $5,478 | $5,478 | $5,478 | $5,478 | $5,478 | $5,478 | $5,478 | $5,478 | $5,478 |
| Total Sales | $10,928 | $21,828 | $33,473 | $10,928 | $33,473 | $10,928 | $16,378 | $16,378 | $16,378 | $66,918 | $5,478 | $21,828 | |
| 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 | |
| Regional Releases | $0 | $0 | $8,775 | $0 | $8,775 | $0 | $0 | $0 | $0 | $14,624 | $0 | $0 | |
| Community Dances | $2,820 | $8,460 | $2,820 | $2,820 | $2,820 | $2,820 | $5,640 | $5,640 | $5,640 | $8,460 | $0 | $8,460 | |
| Miscellaneous Projects | $1,978 | $1,978 | $1,978 | $1,978 | $1,978 | $1,978 | $1,978 | $1,978 | $1,978 | $1,978 | $1,978 | $1,978 | |
| Subtotal Direct Cost of Sales | $4,798 | $10,438 | $13,573 | $4,798 | $13,573 | $4,798 | $7,618 | $7,618 | $7,618 | $25,061 | $1,978 | $10,438 | |
| 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 | ||
| President | 0% | $2,917 | $2,917 | $2,917 | $2,917 | $2,917 | $2,917 | $2,917 | $2,917 | $2,917 | $2,917 | $2,917 | $2,917 |
| Vice president- Admin | 0% | $2,917 | $2,917 | $2,917 | $2,917 | $2,917 | $2,917 | $2,917 | $2,917 | $2,917 | $2,917 | $2,917 | $2,917 |
| Controller | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,750 | $1,750 | $1,750 | $1,750 |
| Ambassador of Goodwill | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,750 | $1,750 | $1,750 | $1,750 |
| Total People | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | |
| Total Payroll | $5,833 | $5,833 | $5,833 | $5,833 | $5,833 | $5,833 | $5,833 | $5,833 | $9,333 | $9,333 | $9,333 | $9,333 | |
| 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 | $10,928 | $21,828 | $33,473 | $10,928 | $33,473 | $10,928 | $16,378 | $16,378 | $16,378 | $66,918 | $5,478 | $21,828 | |
| Direct Cost of Sales | $4,798 | $10,438 | $13,573 | $4,798 | $13,573 | $4,798 | $7,618 | $7,618 | $7,618 | $25,061 | $1,978 | $10,438 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $4,798 | $10,438 | $13,573 | $4,798 | $13,573 | $4,798 | $7,618 | $7,618 | $7,618 | $25,061 | $1,978 | $10,438 | |
| Gross Margin | $6,130 | $11,390 | $19,900 | $6,130 | $19,900 | $6,130 | $8,760 | $8,760 | $8,760 | $41,857 | $3,500 | $11,390 | |
| Gross Margin % | 56.10% | 52.18% | 59.45% | 56.10% | 59.45% | 56.10% | 53.49% | 53.49% | 53.49% | 62.55% | 63.90% | 52.18% | |
| Expenses | |||||||||||||
| Payroll | $5,833 | $5,833 | $5,833 | $5,833 | $5,833 | $5,833 | $5,833 | $5,833 | $9,333 | $9,333 | $9,333 | $9,333 | |
| Sales and Marketing and Other Expenses | $2,562 | $2,562 | $2,562 | $2,562 | $2,562 | $2,562 | $2,562 | $2,562 | $2,562 | $2,562 | $2,562 | $2,562 | |
| Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Publications/memberships | $135 | $135 | $135 | $135 | $135 | $135 | $135 | $135 | $135 | $135 | $135 | $135 | |
| Insurance | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
| Rent | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | |
| Payroll Taxes | 15% | $875 | $875 | $875 | $875 | $875 | $875 | $875 | $875 | $1,400 | $1,400 | $1,400 | $1,400 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $10,456 | $10,456 | $10,456 | $10,456 | $10,456 | $10,456 | $10,456 | $10,456 | $14,481 | $14,481 | $14,481 | $14,481 | |
| Profit Before Interest and Taxes | ($4,326) | $934 | $9,444 | ($4,326) | $9,444 | ($4,326) | ($1,696) | ($1,696) | ($5,721) | $27,376 | ($10,981) | ($3,091) | |
| EBITDA | ($4,326) | $934 | $9,444 | ($4,326) | $9,444 | ($4,326) | ($1,696) | ($1,696) | ($5,721) | $27,376 | ($10,981) | ($3,091) | |
| Interest Expense | $116 | $115 | $115 | $114 | $113 | $113 | $112 | $111 | $110 | $110 | $109 | $75 | |
| Taxes Incurred | ($1,333) | $246 | $2,799 | ($1,332) | $2,799 | ($1,331) | ($542) | ($542) | ($1,749) | $8,180 | ($3,327) | ($950) | |
| Net Profit | ($3,109) | $573 | $6,531 | ($3,108) | $6,532 | ($3,107) | ($1,265) | ($1,265) | ($4,082) | $19,086 | ($7,763) | ($2,216) | |
| Net Profit/Sales | -28.45% | 2.63% | 19.51% | -28.44% | 19.51% | -28.43% | -7.73% | -7.72% | -24.92% | 28.52% | -141.72% | -10.15% | |
| 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 | $9,835 | $19,645 | $30,125 | $9,835 | $30,125 | $9,835 | $14,740 | $14,740 | $14,740 | $60,226 | $4,930 | $19,645 | |
| Cash from Receivables | $0 | $36 | $1,129 | $2,222 | $3,272 | $1,168 | $3,272 | $1,111 | $1,638 | $1,638 | $1,806 | $6,487 | |
| Subtotal Cash from Operations | $9,835 | $19,681 | $31,254 | $12,056 | $33,397 | $11,003 | $18,012 | $15,851 | $16,378 | $61,864 | $6,736 | $26,132 | |
| 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 | $9,835 | $19,681 | $31,254 | $12,056 | $33,397 | $11,003 | $18,012 | $15,851 | $16,378 | $61,864 | $6,736 | $26,132 | |
| 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 | $5,833 | $5,833 | $5,833 | $5,833 | $5,833 | $5,833 | $5,833 | $5,833 | $9,333 | $9,333 | $9,333 | $9,333 | |
| Bill Payments | $1,273 | $8,444 | $15,611 | $20,678 | $8,632 | $20,677 | $8,321 | $11,809 | $11,786 | $12,038 | $37,345 | $4,267 | |
| Subtotal Spent on Operations | $7,107 | $14,277 | $21,444 | $26,512 | $14,465 | $26,511 | $14,155 | $17,643 | $21,120 | $21,372 | $46,678 | $13,601 | |
| 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 | $4,000 | |
| Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Long-term Liabilities Principal Repayment | $83 | $83 | $83 | $83 | $83 | $83 | $83 | $83 | $83 | $83 | $83 | $83 | |
| Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Purchase Long-term Assets | $0 | $0 | $0 | $0 | $20,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Spent | $7,190 | $14,361 | $21,527 | $26,595 | $34,549 | $26,594 | $14,238 | $17,726 | $21,203 | $21,455 | $46,762 | $17,684 | |
| Net Cash Flow | $2,645 | $5,321 | $9,727 | ($14,539) | ($1,151) | ($15,591) | $3,774 | ($1,875) | ($4,825) | $40,408 | ($40,026) | $8,448 | |
| Cash Balance | $40,645 | $45,965 | $55,692 | $41,154 | $40,002 | $24,411 | $28,185 | $26,309 | $21,484 | $61,892 | $21,867 | $30,315 | |
| 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 | $38,000 | $40,645 | $45,965 | $55,692 | $41,154 | $40,002 | $24,411 | $28,185 | $26,309 | $21,484 | $61,892 | $21,867 | $30,315 |
| Accounts Receivable | $0 | $1,093 | $3,239 | $5,457 | $4,328 | $4,404 | $4,328 | $2,694 | $3,221 | $3,221 | $8,275 | $7,016 | $2,712 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $38,000 | $41,737 | $49,204 | $61,150 | $45,482 | $44,406 | $28,739 | $30,879 | $29,530 | $24,705 | $70,167 | $28,883 | $33,027 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $24,500 | $24,500 | $24,500 | $24,500 | $24,500 | $24,500 | $24,500 | $24,500 |
| Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Long-term Assets | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $24,500 | $24,500 | $24,500 | $24,500 | $24,500 | $24,500 | $24,500 | $24,500 |
| Total Assets | $42,500 | $46,237 | $53,704 | $65,650 | $49,982 | $68,906 | $53,239 | $55,379 | $54,030 | $49,205 | $94,667 | $53,383 | $57,527 |
| 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 | $1,000 | $7,930 | $14,907 | $20,405 | $7,929 | $20,404 | $7,928 | $11,416 | $11,415 | $10,755 | $37,215 | $3,777 | $14,220 |
| Current Borrowing | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $0 |
| Other Current Liabilities | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
| Subtotal Current Liabilities | $7,000 | $13,930 | $20,907 | $26,405 | $13,929 | $26,404 | $13,928 | $17,416 | $17,415 | $16,755 | $43,215 | $9,777 | $16,220 |
| Long-term Liabilities | $10,000 | $9,917 | $9,833 | $9,750 | $9,667 | $9,583 | $9,500 | $9,417 | $9,333 | $9,250 | $9,167 | $9,083 | $9,000 |
| Total Liabilities | $17,000 | $23,847 | $30,740 | $36,155 | $23,595 | $35,987 | $23,428 | $26,833 | $26,749 | $26,005 | $52,381 | $18,860 | $25,220 |
| Paid-in Capital | $44,000 | $44,000 | $44,000 | $44,000 | $44,000 | $44,000 | $44,000 | $44,000 | $44,000 | $44,000 | $44,000 | $44,000 | $44,000 |
| Retained Earnings | ($18,500) | ($18,500) | ($18,500) | ($18,500) | ($18,500) | ($18,500) | ($18,500) | ($18,500) | ($18,500) | ($18,500) | ($18,500) | ($18,500) | ($18,500) |
| Earnings | $0 | ($3,109) | ($2,536) | $3,995 | $887 | $7,419 | $4,312 | $3,046 | $1,782 | ($2,300) | $16,786 | $9,023 | $6,807 |
| Total Capital | $25,500 | $22,391 | $22,964 | $29,495 | $26,387 | $32,919 | $29,812 | $28,546 | $27,282 | $23,200 | $42,286 | $34,523 | $32,307 |
| Total Liabilities and Capital | $42,500 | $46,237 | $53,704 | $65,650 | $49,982 | $68,906 | $53,239 | $55,379 | $54,030 | $49,205 | $94,667 | $53,383 | $57,527 |
| Net Worth | $25,500 | $22,391 | $22,964 | $29,495 | $26,387 | $32,919 | $29,812 | $28,546 | $27,282 | $23,200 | $42,286 | $34,523 | $32,307 |
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