Promerit Advertising
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 | |||||||||||||
Online Companies | 0% | $6,000 | $6,000 | $10,900 | $12,030 | $14,400 | $16,000 | $16,000 | $17,000 | $18,000 | $19,000 | $20,500 | $23,000 |
Offline Companies | 0% | $0 | $0 | $0 | $0 | $4,000 | $5,000 | $4,000 | $6,000 | $6,000 | $5,000 | $7,000 | $10,000 |
Total Sales | $6,000 | $6,000 | $10,900 | $12,030 | $18,400 | $21,000 | $20,000 | $23,000 | $24,000 | $24,000 | $27,500 | $33,000 | |
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 | |
Online Companies | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Offline Companies | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
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 | ||
Robert Humphrey | 0% | $2,000 | $2,000 | $2,000 | $2,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Cheryl Littlejohn | 0% | $2,000 | $2,000 | $2,000 | $2,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Secretary/Receptionist | 0% | $0 | $0 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
Salesperson | 0% | $0 | $0 | $3,000 | $3,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
Bookkeeper | 0% | $0 | $0 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
Other | 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 | $4,000 | $4,000 | $11,000 | $11,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 |
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 | $6,000 | $6,000 | $10,900 | $12,030 | $18,400 | $21,000 | $20,000 | $23,000 | $24,000 | $24,000 | $27,500 | $33,000 | |
Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Gross Margin | $6,000 | $6,000 | $10,900 | $12,030 | $18,400 | $21,000 | $20,000 | $23,000 | $24,000 | $24,000 | $27,500 | $33,000 | |
Gross Margin % | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |
Expenses | |||||||||||||
Payroll | $4,000 | $4,000 | $11,000 | $11,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | |
Sales and Marketing and Other Expenses | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | |
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 | |
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 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | |
Payroll Taxes | 15% | $600 | $600 | $1,650 | $1,650 | $2,100 | $2,100 | $2,100 | $2,100 | $2,100 | $2,100 | $2,100 | $2,100 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $10,300 | $10,300 | $18,350 | $18,350 | $21,800 | $21,800 | $21,800 | $21,800 | $21,800 | $21,800 | $21,800 | $21,800 | |
Profit Before Interest and Taxes | ($4,300) | ($4,300) | ($7,450) | ($6,320) | ($3,400) | ($800) | ($1,800) | $1,200 | $2,200 | $2,200 | $5,700 | $11,200 | |
EBITDA | ($4,300) | ($4,300) | ($7,450) | ($6,320) | ($3,400) | ($800) | ($1,800) | $1,200 | $2,200 | $2,200 | $5,700 | $11,200 | |
Interest Expense | $819 | $806 | $792 | $778 | $764 | $750 | $736 | $722 | $708 | $694 | $681 | $667 | |
Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | ($5,119) | ($5,106) | ($8,242) | ($7,098) | ($4,164) | ($1,550) | ($2,536) | $478 | $1,492 | $1,506 | $5,019 | $10,533 | |
Net Profit/Sales | -85.32% | -85.09% | -75.61% | -59.00% | -22.63% | -7.38% | -12.68% | 2.08% | 6.22% | 6.27% | 18.25% | 31.92% |
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 | $1,500 | $1,500 | $2,725 | $3,008 | $4,600 | $5,250 | $5,000 | $5,750 | $6,000 | $6,000 | $6,875 | $8,250 | |
Cash from Receivables | $0 | $150 | $4,500 | $4,623 | $8,203 | $9,182 | $13,865 | $15,725 | $15,075 | $17,275 | $18,000 | $18,088 | |
Subtotal Cash from Operations | $1,500 | $1,650 | $7,225 | $7,630 | $12,803 | $14,432 | $18,865 | $21,475 | $21,075 | $23,275 | $24,875 | $26,338 | |
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 | $1,500 | $1,650 | $7,225 | $7,630 | $12,803 | $14,432 | $18,865 | $21,475 | $21,075 | $23,275 | $24,875 | $26,338 | |
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 | $4,000 | $4,000 | $11,000 | $11,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | |
Bill Payments | $237 | $7,119 | $7,140 | $8,141 | $8,142 | $8,563 | $8,550 | $8,536 | $8,522 | $8,508 | $8,494 | $8,480 | |
Subtotal Spent on Operations | $4,237 | $11,119 | $18,140 | $19,141 | $22,142 | $22,563 | $22,550 | $22,536 | $22,522 | $22,508 | $22,494 | $22,480 | |
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 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | |
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 | $5,904 | $12,786 | $19,807 | $20,808 | $23,809 | $24,230 | $24,217 | $24,203 | $24,189 | $24,175 | $24,161 | $24,147 | |
Net Cash Flow | ($4,404) | ($11,136) | ($12,582) | ($13,178) | ($11,006) | ($9,799) | ($5,352) | ($2,728) | ($3,114) | ($900) | $714 | $2,190 | |
Cash Balance | $151,096 | $139,960 | $127,378 | $114,199 | $103,193 | $93,395 | $88,043 | $85,316 | $82,202 | $81,302 | $82,016 | $84,206 |
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 | $155,500 | $151,096 | $139,960 | $127,378 | $114,199 | $103,193 | $93,395 | $88,043 | $85,316 | $82,202 | $81,302 | $82,016 | $84,206 |
Accounts Receivable | $0 | $4,500 | $8,850 | $12,525 | $16,925 | $22,522 | $29,090 | $30,225 | $31,750 | $34,675 | $35,400 | $38,025 | $44,688 |
Other Current Assets | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 |
Total Current Assets | $165,500 | $165,596 | $158,810 | $149,903 | $141,124 | $135,715 | $132,485 | $128,268 | $127,066 | $126,877 | $126,702 | $130,041 | $138,894 |
Long-term Assets | |||||||||||||
Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Assets | $165,500 | $165,596 | $158,810 | $149,903 | $141,124 | $135,715 | $132,485 | $128,268 | $127,066 | $126,877 | $126,702 | $130,041 | $138,894 |
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 | $6,882 | $6,869 | $7,870 | $7,857 | $8,278 | $8,265 | $8,252 | $8,238 | $8,225 | $8,211 | $8,198 | $8,184 |
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 | $6,882 | $6,869 | $7,870 | $7,857 | $8,278 | $8,265 | $8,252 | $8,238 | $8,225 | $8,211 | $8,198 | $8,184 |
Long-term Liabilities | $100,000 | $98,333 | $96,666 | $94,999 | $93,332 | $91,665 | $89,998 | $88,331 | $86,664 | $84,997 | $83,330 | $81,663 | $79,996 |
Total Liabilities | $100,000 | $105,215 | $103,535 | $102,869 | $101,189 | $99,943 | $98,263 | $96,583 | $94,902 | $93,222 | $91,541 | $89,861 | $88,180 |
Paid-in Capital | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 |
Retained Earnings | ($34,500) | ($34,500) | ($34,500) | ($34,500) | ($34,500) | ($34,500) | ($34,500) | ($34,500) | ($34,500) | ($34,500) | ($34,500) | ($34,500) | ($34,500) |
Earnings | $0 | ($5,119) | ($10,225) | ($18,467) | ($25,564) | ($29,728) | ($31,278) | ($33,814) | ($33,337) | ($31,845) | ($30,339) | ($25,320) | ($14,786) |
Total Capital | $65,500 | $60,381 | $55,275 | $47,033 | $39,936 | $35,772 | $34,222 | $31,686 | $32,163 | $33,655 | $35,161 | $40,180 | $50,714 |
Total Liabilities and Capital | $165,500 | $165,596 | $158,810 | $149,903 | $141,124 | $135,715 | $132,485 | $128,268 | $127,066 | $126,877 | $126,702 | $130,041 | $138,894 |
Net Worth | $65,500 | $60,381 | $55,275 | $47,033 | $39,936 | $35,772 | $34,222 | $31,686 | $32,163 | $33,655 | $35,161 | $40,180 | $50,714 |