Equipment Rental

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Equipment Rental Sales Business Plan

Appendix

Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Sales and Rentals 0% $10,000 $10,000 $11,200 $14,400 $17,500 $20,400 $28,000 $29,000 $26,000 $18,500 $15,000 $10,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $10,000 $10,000 $11,200 $14,400 $17,500 $20,400 $28,000 $29,000 $26,000 $18,500 $15,000 $10,000
Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales and Rentals $1,500 $1,500 $1,680 $2,160 $2,625 $3,060 $4,200 $4,350 $3,900 $2,775 $2,250 $1,500
Other $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Subtotal Direct Cost of Sales $1,750 $1,750 $1,930 $2,410 $2,875 $3,310 $4,450 $4,600 $4,150 $3,025 $2,500 $1,750
Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales/Rental Associate 0% $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600
Sales/Rental Associate 0% $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600
Sales/Rental Associate 0% $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600
Maintenance/Technician 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Maintenance Technician 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 5 5 5 5 5 5 5 5 5 5 5 5
Total Payroll $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800
Pro Forma Profit and Loss
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $10,000 $10,000 $11,200 $14,400 $17,500 $20,400 $28,000 $29,000 $26,000 $18,500 $15,000 $10,000
Direct Cost of Sales $1,750 $1,750 $1,930 $2,410 $2,875 $3,310 $4,450 $4,600 $4,150 $3,025 $2,500 $1,750
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $1,000 $750 $500 $750
Total Cost of Sales $1,750 $1,750 $1,930 $2,410 $2,875 $3,310 $4,450 $4,600 $5,150 $3,775 $3,000 $2,500
Gross Margin $8,250 $8,250 $9,270 $11,990 $14,625 $17,090 $23,550 $24,400 $20,850 $14,725 $12,000 $7,500
Gross Margin % 82.50% 82.50% 82.77% 83.26% 83.57% 83.77% 84.11% 84.14% 80.19% 79.59% 80.00% 75.00%
Expenses
Payroll $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800
Sales and Marketing and Other Expenses $917 $917 $917 $2,417 $2,417 $917 $917 $917 $917 $917 $917 $917
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Supplies and equipment $827 $827 $827 $827 $827 $827 $827 $827 $827 $827 $827 $827
Utilities $134 $134 $134 $134 $134 $134 $134 $134 $134 $134 $134 $134
Telephone $651 $651 $651 $651 $651 $651 $651 $651 $651 $651 $651 $651
Insurance $1,204 $1,204 $1,204 $1,204 $1,204 $1,204 $1,204 $1,204 $1,204 $1,204 $1,204 $1,204
Repairs and Maintenance $911 $911 $911 $911 $911 $911 $911 $911 $911 $911 $911 $911
Services $236 $236 $236 $236 $236 $236 $236 $236 $236 $236 $236 $236
Rent $1,035 $1,035 $1,035 $1,035 $1,035 $1,035 $1,035 $1,035 $1,035 $1,035 $1,035 $1,035
Payroll Taxes 15% $720 $720 $720 $720 $720 $720 $720 $720 $720 $720 $720 $720
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $11,434 $11,434 $11,434 $12,934 $12,934 $11,434 $11,434 $11,434 $11,434 $11,434 $11,434 $11,434
Profit Before Interest and Taxes ($3,184) ($3,184) ($2,164) ($944) $1,691 $5,656 $12,116 $12,966 $9,416 $3,291 $566 ($3,934)
EBITDA ($3,184) ($3,184) ($2,164) ($944) $1,691 $5,656 $12,116 $12,966 $9,416 $3,291 $566 ($3,934)
Interest Expense $2,663 $2,663 $2,663 $2,643 $2,623 $2,604 $2,584 $2,565 $2,442 $2,296 $2,151 $2,043
Taxes Incurred ($1,754) ($1,754) ($1,448) ($1,076) ($280) $916 $2,860 $3,120 $2,092 $298 ($476) ($1,793)
Net Profit ($4,093) ($4,093) ($3,379) ($2,511) ($653) $2,136 $6,672 $7,281 $4,882 $696 ($1,110) ($4,184)
Net Profit/Sales -40.93% -40.93% -30.17% -17.44% -3.73% 10.47% 23.83% 25.11% 18.78% 3.76% -7.40% -41.84%
Pro Forma Cash Flow
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash Received
Cash from Operations
Cash Sales $2,000 $2,000 $2,240 $2,880 $3,500 $4,080 $5,600 $5,800 $5,200 $3,700 $3,000 $2,000
Cash from Receivables $4,500 $4,767 $8,000 $8,032 $9,045 $11,603 $14,077 $16,523 $22,427 $23,120 $20,600 $14,707
Subtotal Cash from Operations $6,500 $6,767 $10,240 $10,912 $12,545 $15,683 $19,677 $22,323 $27,627 $26,820 $23,600 $16,707
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 $149,000 $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 $151,000 $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 $306,500 $6,767 $10,240 $10,912 $12,545 $15,683 $19,677 $22,323 $27,627 $26,820 $23,600 $16,707
Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Expenditures from Operations
Cash Spending $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800
Bill Payments $9,251 $7,543 $7,553 $7,910 $9,727 $10,467 $10,363 $16,469 $17,042 $15,688 $11,732 $10,662
Subtotal Spent on Operations $14,051 $12,343 $12,353 $12,710 $14,527 $15,267 $15,163 $21,269 $21,842 $20,488 $16,532 $15,462
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 $12,416 $12,416 $12,416 $8,000
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $2,350 $2,350 $2,350 $2,350 $2,350 $2,350 $5,000 $5,000 $5,000
Purchase Other Current Assets $10,000 $12,000 $25,000 $4,000 $7,000 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $30,000 $27,000 $34,000 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417
Subtotal Cash Spent $29,468 $59,759 $69,770 $58,477 $29,294 $23,034 $22,930 $29,036 $42,025 $43,320 $39,365 $33,879
Net Cash Flow $277,032 ($52,993) ($59,530) ($47,565) ($16,748) ($7,351) ($3,253) ($6,713) ($14,398) ($16,500) ($15,765) ($17,172)
Cash Balance $279,532 $226,539 $167,010 $119,445 $102,697 $95,346 $92,093 $85,380 $70,982 $54,481 $38,717 $21,544
General Assumptions
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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 Balance Sheet
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets Starting Balances
Current Assets
Cash $2,500 $279,532 $226,539 $167,010 $119,445 $102,697 $95,346 $92,093 $85,380 $70,982 $54,481 $38,717 $21,544
Accounts Receivable $9,000 $12,500 $15,733 $16,693 $20,181 $25,136 $29,853 $38,176 $44,853 $43,227 $34,907 $26,307 $19,600
Inventory $19,000 $17,250 $15,500 $13,570 $11,160 $8,285 $4,975 $4,895 $5,060 $4,565 $3,328 $2,750 $2,000
Other Current Assets $6,000 $16,000 $28,000 $53,000 $57,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000
Total Current Assets $36,500 $325,282 $285,773 $250,273 $207,786 $200,118 $194,174 $199,164 $199,293 $182,773 $156,716 $131,773 $107,144
Long-term Assets
Long-term Assets $8,000 $8,000 $38,000 $65,000 $99,000 $99,000 $99,000 $99,000 $99,000 $99,000 $99,000 $99,000 $99,000
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $8,000 $8,000 $38,000 $65,000 $99,000 $99,000 $99,000 $99,000 $99,000 $99,000 $99,000 $99,000 $99,000
Total Assets $44,500 $333,282 $323,773 $315,273 $306,786 $299,118 $293,174 $298,164 $298,293 $281,773 $255,716 $230,773 $206,144
Liabilities and Capital Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Current Liabilities
Accounts Payable $9,000 $7,291 $7,291 $7,587 $9,378 $10,128 $9,815 $15,900 $16,515 $15,296 $11,374 $10,375 $8,346
Current Borrowing $9,500 $158,500 $158,500 $158,500 $158,500 $158,500 $158,500 $158,500 $158,500 $146,084 $133,668 $121,252 $113,252
Other Current Liabilities $3,700 $3,700 $3,700 $3,700 $3,700 $3,700 $3,700 $3,700 $3,700 $3,700 $3,700 $3,700 $3,700
Subtotal Current Liabilities $22,200 $169,491 $169,491 $169,787 $171,578 $172,328 $172,015 $178,100 $178,715 $165,080 $148,742 $135,327 $125,298
Long-term Liabilities $10,000 $161,000 $161,000 $161,000 $158,650 $156,300 $153,950 $151,600 $149,250 $146,900 $141,900 $136,900 $131,900
Total Liabilities $32,200 $330,491 $330,491 $330,787 $330,228 $328,628 $325,965 $329,700 $327,965 $311,980 $290,642 $272,227 $257,198
Paid-in Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Retained Earnings $12,300 $6,883 $1,467 ($3,950) ($9,367) ($14,783) ($20,200) ($25,617) ($31,033) ($36,450) ($41,867) ($47,283) ($52,700)
Earnings $0 ($4,093) ($8,185) ($11,564) ($14,075) ($14,728) ($12,591) ($5,919) $1,362 $6,244 $6,940 $5,830 $1,646
Total Capital $12,300 $2,791 ($6,719) ($15,514) ($23,442) ($29,511) ($32,791) ($31,536) ($29,671) ($30,206) ($34,927) ($41,453) ($51,054)
Total Liabilities and Capital $44,500 $333,282 $323,773 $315,273 $306,786 $299,118 $293,174 $298,164 $298,293 $281,773 $255,716 $230,773 $206,144
Net Worth $12,300 $2,791 ($6,719) ($15,514) ($23,442) ($29,511) ($32,791) ($31,536) ($29,671) ($30,206) ($34,927) ($41,453) ($51,054)