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Plastics Recycling Business Plan

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
Unit Sales
Recycled Flake PET 0% 0 0 0 0 1,925,000 3,208,400 2,566,700 2,566,700 2,566,700 2,566,700 2,566,700 2,566,700
Extruded Roll Stock Sheet 0% 0 0 0 0 0 641,600 1,283,300 1,283,300 1,283,300 1,283,300 1,283,300 1,283,300
Extruded Strapping 0% 0 0 0 0 0 0 0 0 0 0 0 0
Total Unit Sales 0 0 0 0 1,925,000 3,850,000 3,850,000 3,850,000 3,850,000 3,850,000 3,850,000 3,850,000
Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Recycled Flake PET $0.45 $0.00 $0.00 $0.00 $0.45 $0.45 $0.45 $0.45 $0.45 $0.45 $0.45 $0.45
Extruded Roll Stock Sheet $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70
Extruded Strapping $0.95 $0.95 $0.95 $0.95 $0.95 $0.95 $0.95 $0.95 $0.95 $0.95 $0.95 $0.95
Sales
Recycled Flake PET $0 $0 $0 $0 $866,250 $1,443,780 $1,155,015 $1,155,015 $1,155,015 $1,155,015 $1,155,015 $1,155,015
Extruded Roll Stock Sheet $0 $0 $0 $0 $0 $449,120 $898,310 $898,310 $898,310 $898,310 $898,310 $898,310
Extruded Strapping $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $0 $0 $0 $0 $866,250 $1,892,900 $2,053,325 $2,053,325 $2,053,325 $2,053,325 $2,053,325 $2,053,325
Direct Unit Costs Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Recycled Flake PET 0.00% $0.27 $0.27 $0.27 $0.27 $0.27 $0.27 $0.27 $0.27 $0.27 $0.27 $0.27 $0.27
Extruded Roll Stock Sheet 0.00% $0.27 $0.27 $0.27 $0.27 $0.27 $0.27 $0.27 $0.27 $0.27 $0.27 $0.27 $0.27
Extruded Strapping 0.00% $0.27 $0.27 $0.27 $0.27 $0.27 $0.27 $0.27 $0.27 $0.27 $0.27 $0.27 $0.27
Direct Cost of Sales
Recycled Flake PET $0 $0 $0 $0 $510,125 $850,226 $680,176 $680,176 $680,176 $680,176 $680,176 $680,176
Extruded Roll Stock Sheet $0 $0 $0 $0 $0 $170,024 $340,075 $340,075 $340,075 $340,075 $340,075 $340,075
Extruded Strapping $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0 $0 $510,125 $1,020,250 $1,020,250 $1,020,250 $1,020,250 $1,020,250 $1,020,250 $1,020,250
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
Production Personnel
Shift Supervisor $0 $0 $0 $0 $12,500 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667
Maintainence Techs $0 $0 $0 $0 $14,583 $14,583 $14,583 $14,583 $14,583 $14,583 $14,583 $14,583
Skilled Recycle Plant Labor $0 $0 $0 $0 $43,750 $43,750 $43,750 $43,750 $43,750 $43,750 $43,750 $43,750
Unskilled Recycle Plant Labor $0 $0 $0 $0 $0 $23,438 $23,438 $23,438 $23,438 $23,438 $23,438 $23,438
Extruder Operator (full time) $0 $0 $0 $0 $10,938 $10,938 $10,938 $10,938 $10,938 $10,938 $10,938 $10,938
Extruder Operator (part time) $0 $0 $0 $0 $0 $3,646 $3,646 $3,646 $3,646 $3,646 $3,646 $3,646
Production Assistant (full time) $0 $0 $0 $0 $7,813 $7,813 $7,813 $7,813 $7,813 $7,813 $7,813 $7,813
Production Assistant (part time) $0 $0 $0 $0 $0 $2,604 $2,604 $2,604 $2,604 $2,604 $2,604 $2,604
Name or Title or Group $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $0 $0 $0 $0 $89,584 $123,439 $123,439 $123,439 $123,439 $123,439 $123,439 $123,439
Sales and Marketing Personnel
commission-basis - see P&L $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Name or Title or Group $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
General and Administrative Personnel
President $2,000 $2,000 $2,000 $2,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000
Vice Pres COO $1,800 $1,800 $1,800 $1,800 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500
CFO $1,800 $1,800 $1,800 $1,800 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500
Plant Manager $0 $0 $0 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000
Accountant $0 $0 $0 $0 $3,650 $3,650 $3,650 $3,650 $3,650 $3,650 $3,650 $3,650
Clerk $0 $0 $0 $0 $2,600 $2,600 $2,600 $2,600 $2,600 $2,600 $2,600 $2,600
Clerk $0 $0 $0 $0 $0 $0 $2,600 $2,600 $2,600 $2,600 $2,600 $2,600
Clerk $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Shipper Receiver $0 $0 $0 $0 $3,400 $3,400 $3,400 $3,400 $3,400 $3,400 $3,400 $3,400
Subtotal $5,600 $5,600 $5,600 $12,600 $39,650 $39,650 $42,250 $42,250 $42,250 $42,250 $42,250 $42,250
Other Personnel
Name or title $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Name or title $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 3 3 3 4 50 50 51 51 51 51 51 51
Total Payroll $5,600 $5,600 $5,600 $12,600 $129,234 $163,089 $165,689 $165,689 $165,689 $165,689 $165,689 $165,689
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 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00%
Long-term Interest Rate 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00%
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 $0 $0 $0 $0 $866,250 $1,892,900 $2,053,325 $2,053,325 $2,053,325 $2,053,325 $2,053,325 $2,053,325
Direct Cost of Sales $0 $0 $0 $0 $510,125 $1,020,250 $1,020,250 $1,020,250 $1,020,250 $1,020,250 $1,020,250 $1,020,250
Production Payroll $0 $0 $0 $0 $89,584 $123,439 $123,439 $123,439 $123,439 $123,439 $123,439 $123,439
Packaging $0 $0 $0 $0 $8,663 $18,929 $20,533 $20,533 $20,533 $20,533 $20,533 $20,533
Sales Commission $0 $0 $0 $0 $43,313 $93,041 $99,458 $99,458 $99,458 $99,458 $99,458 $99,458
Total Cost of Sales $0 $0 $0 $0 $651,684 $1,255,659 $1,263,680 $1,263,680 $1,263,680 $1,263,680 $1,263,680 $1,263,680
Gross Margin $0 $0 $0 $0 $214,566 $637,241 $789,645 $789,645 $789,645 $789,645 $789,645 $789,645
Gross Margin % 0.00% 0.00% 0.00% 0.00% 24.77% 33.66% 38.46% 38.46% 38.46% 38.46% 38.46% 38.46%
Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Advertising/Promotion $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Travel $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales and Marketing Expenses $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Sales and Marketing % 0.00% 0.00% 0.00% 0.00% 0.06% 0.03% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02%
General and Administrative Expenses
General and Administrative Payroll $5,600 $5,600 $5,600 $12,600 $39,650 $39,650 $42,250 $42,250 $42,250 $42,250 $42,250 $42,250
Sales and Marketing and Other Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation $20,145 $20,145 $20,145 $20,145 $20,145 $20,145 $20,145 $20,145 $20,145 $20,145 $20,145 $20,145
Payroll Burden 30% $1,680 $1,680 $1,680 $3,780 $38,770 $48,927 $49,707 $49,707 $49,707 $49,707 $49,707 $49,707
Office Equipment Rent $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Office Supplies/Expense $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Travel & Entertainment $0 $0 $0 $0 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Leased Vehicles $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 $0 $0 $0 $0 $38,981 $85,181 $92,400 $92,400 $92,400 $92,400 $92,400 $92,400
Insurance $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Misc Plant & Maintainence Supplies 15% $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total General and Administrative Expenses $37,425 $37,425 $37,425 $46,525 $149,546 $205,902 $216,501 $216,501 $216,501 $216,501 $216,501 $216,501
General and Administrative % 0.00% 0.00% 0.00% 0.00% 17.26% 10.88% 10.54% 10.54% 10.54% 10.54% 10.54% 10.54%
Other Expenses:
Other Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Misc (contingency) $1,871 $1,871 $1,871 $2,326 $7,477 $10,295 $10,825 $10,825 $10,825 $10,825 $10,825 $10,825
Prof Fees ( Includ legal & accounting) $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Total Other Expenses $26,871 $26,871 $26,871 $27,326 $32,477 $35,295 $35,825 $35,825 $35,825 $35,825 $35,825 $35,825
Other % 0.00% 0.00% 0.00% 0.00% 3.75% 1.86% 1.74% 1.74% 1.74% 1.74% 1.74% 1.74%
Total Operating Expenses $64,796 $64,796 $64,796 $74,351 $182,523 $241,697 $252,826 $252,826 $252,826 $252,826 $252,826 $252,826
Profit Before Interest and Taxes ($64,796) ($64,796) ($64,796) ($74,351) $32,043 $395,544 $536,818 $536,818 $536,818 $536,818 $536,818 $536,818
EBITDA ($44,651) ($44,651) ($44,651) ($54,206) $52,188 $415,689 $556,963 $556,963 $556,963 $556,963 $556,963 $556,963
Interest Expense $5,289 $5,245 $5,201 $5,157 $5,113 $5,069 $5,025 $4,981 $4,937 $4,893 $4,849 $4,805
Taxes Incurred ($21,026) ($21,012) ($20,999) ($23,852) $8,079 $117,142 $159,538 $159,551 $159,564 $159,578 $159,591 $159,604
Net Profit ($49,060) ($49,029) ($48,998) ($55,656) $18,850 $273,332 $372,255 $372,286 $372,317 $372,348 $372,378 $372,409
Net Profit/Sales 0.00% 0.00% 0.00% 0.00% 2.18% 14.44% 18.13% 18.13% 18.13% 18.13% 18.14% 18.14%
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 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Cash from Receivables $0 $0 $0 $0 $28,875 $900,472 $1,898,248 $2,053,325 $2,053,325 $2,053,325 $2,053,325 $2,053,325
Subtotal Cash from Operations $0 $0 $0 $0 $28,875 $900,472 $1,898,248 $2,053,325 $2,053,325 $2,053,325 $2,053,325 $2,053,325
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 $0 $0 $0 $0 $28,875 $900,472 $1,898,248 $2,053,325 $2,053,325 $2,053,325 $2,053,325 $2,053,325
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 $5,600 $5,600 $5,600 $12,600 $129,234 $163,089 $165,689 $165,689 $165,689 $165,689 $165,689 $165,689
Bill Payments $777 $23,314 $23,283 $23,242 $37,250 $494,360 $1,684,858 $1,495,235 $1,495,204 $1,495,173 $1,495,142 $1,495,112
Subtotal Spent on Operations $6,377 $28,914 $28,883 $35,842 $166,484 $657,449 $1,850,547 $1,660,924 $1,660,893 $1,660,862 $1,660,831 $1,660,801
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 $6,600 $6,600 $6,600 $6,600 $6,600 $6,600 $6,600 $6,600 $6,600 $6,600 $6,600 $6,600
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 $568,000 $0 $1,023,000
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $12,977 $35,514 $35,483 $42,442 $173,084 $664,049 $1,857,147 $1,667,524 $1,667,493 $2,235,462 $1,667,431 $2,690,401
Net Cash Flow ($12,977) ($35,514) ($35,483) ($42,442) ($144,209) $236,423 $41,101 $385,801 $385,832 ($182,137) $385,894 ($637,076)
Cash Balance $632,023 $596,509 $561,026 $518,585 $374,376 $610,798 $651,899 $1,037,700 $1,423,532 $1,241,395 $1,627,288 $990,213
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 $645,000 $632,023 $596,509 $561,026 $518,585 $374,376 $610,798 $651,899 $1,037,700 $1,423,532 $1,241,395 $1,627,288 $990,213
Accounts Receivable $0 $0 $0 $0 $0 $837,375 $1,829,803 $1,984,881 $1,984,881 $1,984,881 $1,984,881 $1,984,881 $1,984,881
Inventory $500,000 $500,000 $500,000 $500,000 $500,000 $255,063 $510,125 $510,125 $510,125 $510,125 $510,125 $510,125 $510,125
Other Current Assets $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Total Current Assets $1,170,000 $1,157,023 $1,121,509 $1,086,026 $1,043,585 $1,491,813 $2,975,726 $3,171,905 $3,557,706 $3,943,538 $3,761,401 $4,147,294 $3,510,219
Long-term Assets
Long-term Assets $3,620,000 $3,620,000 $3,620,000 $3,620,000 $3,620,000 $3,620,000 $3,620,000 $3,620,000 $3,620,000 $3,620,000 $4,188,000 $4,188,000 $5,211,000
Accumulated Depreciation $0 $20,145 $40,290 $60,435 $80,580 $100,725 $120,870 $141,015 $161,160 $181,305 $201,450 $221,595 $241,740
Total Long-term Assets $3,620,000 $3,599,855 $3,579,710 $3,559,565 $3,539,420 $3,519,275 $3,499,130 $3,478,985 $3,458,840 $3,438,695 $3,986,550 $3,966,405 $4,969,260
Total Assets $4,790,000 $4,756,878 $4,701,219 $4,645,591 $4,583,005 $5,011,088 $6,474,856 $6,650,890 $7,016,546 $7,382,233 $7,747,951 $8,113,699 $8,479,479
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 $22,538 $22,508 $22,478 $22,147 $437,980 $1,635,016 $1,445,395 $1,445,365 $1,445,335 $1,445,305 $1,445,276 $1,445,246
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 $22,538 $22,508 $22,478 $22,147 $437,980 $1,635,016 $1,445,395 $1,445,365 $1,445,335 $1,445,305 $1,445,276 $1,445,246
Long-term Liabilities $800,000 $793,400 $786,800 $780,200 $773,600 $767,000 $760,400 $753,800 $747,200 $740,600 $734,000 $727,400 $720,800
Total Liabilities $800,000 $815,938 $809,308 $802,678 $795,747 $1,204,980 $2,395,416 $2,199,195 $2,192,565 $2,185,935 $2,179,305 $2,172,676 $2,166,046
Paid-in Capital $4,200,000 $4,200,000 $4,200,000 $4,200,000 $4,200,000 $4,200,000 $4,200,000 $4,200,000 $4,200,000 $4,200,000 $4,200,000 $4,200,000 $4,200,000
Retained Earnings ($210,000) ($210,000) ($210,000) ($210,000) ($210,000) ($210,000) ($210,000) ($210,000) ($210,000) ($210,000) ($210,000) ($210,000) ($210,000)
Earnings $0 ($49,060) ($98,089) ($147,087) ($202,743) ($183,892) $89,440 $461,695 $833,981 $1,206,298 $1,578,645 $1,951,024 $2,323,433
Total Capital $3,990,000 $3,940,940 $3,891,911 $3,842,913 $3,787,257 $3,806,108 $4,079,440 $4,451,695 $4,823,981 $5,196,298 $5,568,645 $5,941,024 $6,313,433
Total Liabilities and Capital $4,790,000 $4,756,878 $4,701,219 $4,645,591 $4,583,005 $5,011,088 $6,474,856 $6,650,890 $7,016,546 $7,382,233 $7,747,951 $8,113,699 $8,479,479
Net Worth $3,990,000 $3,940,940 $3,891,911 $3,842,913 $3,787,257 $3,806,108 $4,079,440 $4,451,695 $4,823,981 $5,196,298 $5,568,645 $5,941,024 $6,313,433