It's Scrappy!
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 | |||||||||||||
| SCRAPBOOK SUPPLIES | 0% | $3,000 | $3,000 | $3,000 | $4,000 | $4,000 | $4,500 | $4,500 | $4,500 | $4,500 | $5,000 | $5,000 | $5,000 |
| CLASSES | 0% | $1,000 | $1,500 | $1,500 | $1,500 | $1,500 | $2,600 | $2,600 | $2,600 | $2,600 | $3,000 | $3,000 | $3,000 |
| PAGE DESIGN | 0% | $250 | $500 | $500 | $500 | $500 | $1,000 | $1,000 | $1,000 | $1,000 | $1,500 | $1,500 | $1,500 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Sales | $4,250 | $5,000 | $5,000 | $6,000 | $6,000 | $8,100 | $8,100 | $8,100 | $8,100 | $9,500 | $9,500 | $9,500 | |
| 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 | |
| SCRAPBOOK SUPPLIES | $750 | $750 | $750 | $1,000 | $1,000 | $1,125 | $1,125 | $1,125 | $1,125 | $1,250 | $1,250 | $1,250 | |
| CLASSES | $250 | $375 | $375 | $375 | $375 | $650 | $650 | $650 | $650 | $750 | $750 | $750 | |
| PAGE DESIGN | $63 | $125 | $125 | $125 | $125 | $250 | $250 | $250 | $250 | $375 | $375 | $375 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $1,063 | $1,250 | $1,250 | $1,500 | $1,500 | $2,025 | $2,025 | $2,025 | $2,025 | $2,375 | $2,375 | $2,375 | |
| 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 | ||
| Owner/Manager | 0% | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 |
| PART-TIME HELP | 0% | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 |
| PART-TIME HELP | 0% | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 |
| 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 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | |
| 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 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
| Tax Rate | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
| 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 | $4,250 | $5,000 | $5,000 | $6,000 | $6,000 | $8,100 | $8,100 | $8,100 | $8,100 | $9,500 | $9,500 | $9,500 | |
| Direct Cost of Sales | $1,063 | $1,250 | $1,250 | $1,500 | $1,500 | $2,025 | $2,025 | $2,025 | $2,025 | $2,375 | $2,375 | $2,375 | |
| Other Costs of Goods | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $1,063 | $1,250 | $1,250 | $1,500 | $1,500 | $2,025 | $2,025 | $2,025 | $2,025 | $2,375 | $2,375 | $2,375 | |
| Gross Margin | $3,188 | $3,750 | $3,750 | $4,500 | $4,500 | $6,075 | $6,075 | $6,075 | $6,075 | $7,125 | $7,125 | $7,125 | |
| Gross Margin % | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | |
| Expenses | |||||||||||||
| Payroll | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | |
| Sales and Marketing and Other Expenses | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Rent | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | |
| Utilities | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Insurance | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
| Payroll Taxes | 15% | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | |
| Profit Before Interest and Taxes | ($2,563) | ($2,000) | ($2,000) | ($1,250) | ($1,250) | $325 | $325 | $325 | $325 | $1,375 | $1,375 | $1,375 | |
| EBITDA | ($2,563) | ($2,000) | ($2,000) | ($1,250) | ($1,250) | $325 | $325 | $325 | $325 | $1,375 | $1,375 | $1,375 | |
| Interest Expense | $58 | $57 | $56 | $55 | $55 | $54 | $53 | $53 | $52 | $51 | $50 | $50 | |
| Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Net Profit | ($2,620) | ($2,057) | ($2,056) | ($1,305) | ($1,305) | $271 | $272 | $272 | $273 | $1,324 | $1,325 | $1,325 | |
| Net Profit/Sales | -61.65% | -41.14% | -41.12% | -21.76% | -21.75% | 3.35% | 3.35% | 3.36% | 3.37% | 13.93% | 13.94% | 13.95% | |
| 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 | $4,250 | $5,000 | $5,000 | $6,000 | $6,000 | $8,100 | $8,100 | $8,100 | $8,100 | $9,500 | $9,500 | $9,500 | |
| Subtotal Cash from Operations | $4,250 | $5,000 | $5,000 | $6,000 | $6,000 | $8,100 | $8,100 | $8,100 | $8,100 | $9,500 | $9,500 | $9,500 | |
| 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 | $7,000 | $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 | $11,250 | $5,000 | $5,000 | $6,000 | $6,000 | $8,100 | $8,100 | $8,100 | $8,100 | $9,500 | $9,500 | $9,500 | |
| 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 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | |
| Bill Payments | $107 | $3,208 | $3,207 | $3,206 | $3,269 | $5,105 | $5,123 | $5,228 | $5,228 | $5,251 | $5,948 | $5,575 | |
| Subtotal Spent on Operations | $2,707 | $5,808 | $5,807 | $5,806 | $5,869 | $7,705 | $7,723 | $7,828 | $7,828 | $7,851 | $8,548 | $8,175 | |
| 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 | $86 | $86 | $86 | $86 | $86 | $86 | $86 | $86 | $86 | $86 | $86 | $86 | |
| 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 | $2,793 | $5,893 | $5,893 | $5,892 | $5,954 | $7,791 | $7,808 | $7,914 | $7,913 | $7,937 | $8,634 | $8,261 | |
| Net Cash Flow | $8,457 | ($893) | ($893) | $108 | $46 | $309 | $292 | $186 | $187 | $1,563 | $866 | $1,239 | |
| Cash Balance | $9,957 | $9,064 | $8,171 | $8,280 | $8,325 | $8,634 | $8,926 | $9,112 | $9,298 | $10,861 | $11,727 | $12,966 | |
| 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 | $1,500 | $9,957 | $9,064 | $8,171 | $8,280 | $8,325 | $8,634 | $8,926 | $9,112 | $9,298 | $10,861 | $11,727 | $12,966 |
| Inventory | $7,000 | $5,938 | $4,688 | $3,438 | $1,938 | $2,338 | $2,228 | $2,228 | $2,228 | $2,228 | $2,613 | $2,613 | $2,613 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $8,500 | $15,895 | $13,752 | $11,609 | $10,217 | $10,663 | $10,862 | $11,153 | $11,339 | $11,526 | $13,474 | $14,340 | $15,579 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
| Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Long-term Assets | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
| Total Assets | $11,000 | $18,395 | $16,252 | $14,109 | $12,717 | $13,163 | $13,362 | $13,653 | $13,839 | $14,026 | $15,974 | $16,840 | $18,079 |
| 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 | $3,101 | $3,100 | $3,099 | $3,099 | $4,935 | $4,948 | $5,054 | $5,053 | $5,053 | $5,762 | $5,390 | $5,389 |
| Current Borrowing | $0 | $6,914 | $6,829 | $6,743 | $6,657 | $6,571 | $6,486 | $6,400 | $6,314 | $6,229 | $6,143 | $6,057 | $5,971 |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $0 | $10,015 | $9,929 | $9,842 | $9,756 | $11,506 | $11,434 | $11,454 | $11,368 | $11,281 | $11,905 | $11,447 | $11,360 |
| Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Liabilities | $0 | $10,015 | $9,929 | $9,842 | $9,756 | $11,506 | $11,434 | $11,454 | $11,368 | $11,281 | $11,905 | $11,447 | $11,360 |
| Paid-in Capital | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 |
| Retained Earnings | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) |
| Earnings | $0 | ($2,620) | ($4,677) | ($6,733) | ($8,039) | ($9,343) | ($9,073) | ($8,801) | ($8,528) | ($8,255) | ($6,932) | ($5,607) | ($4,282) |
| Total Capital | $11,000 | $8,380 | $6,323 | $4,267 | $2,961 | $1,657 | $1,927 | $2,199 | $2,472 | $2,745 | $4,068 | $5,393 | $6,718 |
| Total Liabilities and Capital | $11,000 | $18,395 | $16,252 | $14,109 | $12,717 | $13,163 | $13,362 | $13,653 | $13,839 | $14,026 | $15,974 | $16,840 | $18,079 |
| Net Worth | $11,000 | $8,380 | $6,323 | $4,267 | $2,961 | $1,657 | $1,927 | $2,199 | $2,472 | $2,745 | $4,068 | $5,393 | $6,718 |
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