Heavy Lifting, Inc.
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 | |||||||||||||
Consulting | 0% | $0 | $0 | $2,000 | $0 | $0 | $0 | $0 | $2,000 | $0 | $0 | $2,000 | $0 |
Weigh Bridge Deposit | 0% | $0 | $0 | $0 | $0 | $500,000 | $0 | $500,000 | $0 | $0 | $0 | $0 | $0 |
Weigh Bridge Balance | 0% | $2,000,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $500,000 | $0 | $500,000 | $0 |
Total Sales | $2,000,000 | $0 | $2,000 | $0 | $500,000 | $0 | $500,000 | $2,000 | $500,000 | $0 | $502,000 | $0 | |
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 | |
Materials/Construction | 65% | $1,300,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $650,000 | $0 | $652,600 | $0 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $1,300,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $650,000 | $0 | $652,600 | $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 | ||
Chief Executive Officer | 0% | $16,666 | $16,666 | $16,666 | $16,666 | $16,666 | $16,666 | $16,666 | $16,666 | $16,666 | $16,666 | $16,666 | $16,666 |
Technical Director | 0% | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 |
Project Director | 0% | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $12,500 | $12,500 | $12,500 |
Office Manager/PA to CEO | 0% | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 |
Legal Services Director | 0% | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 |
Software Engineer | 0% | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 |
Corporate Services | 0% | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 |
Total People | 3 | 3 | 3 | 3 | 3 | 6 | 6 | 6 | 6 | 6 | 6 | 9 | |
Total Payroll | $76,249 | $76,249 | $76,249 | $76,249 | $76,249 | $76,249 | $76,249 | $76,249 | $76,249 | $78,749 | $78,749 | $78,749 |
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% | 0.00% | |
Tax Rate | 33.00% | 33.00% | 33.00% | 33.00% | 33.00% | 33.00% | 33.00% | 33.00% | 33.00% | 33.00% | 33.00% | 33.00% | |
Sales Tax | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 |
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 | $2,000,000 | $0 | $2,000 | $0 | $500,000 | $0 | $500,000 | $2,000 | $500,000 | $0 | $502,000 | $0 | |
Direct Cost of Sales | $1,300,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $650,000 | $0 | $652,600 | $0 | |
Manufacturing costs | $16,000 | $16,000 | $16,000 | $16,000 | $16,000 | $16,000 | $16,000 | $16,000 | $16,000 | $16,000 | $16,000 | $16,000 | |
Total Cost of Sales | $1,316,000 | $16,000 | $16,000 | $16,000 | $16,000 | $16,000 | $16,000 | $16,000 | $666,000 | $16,000 | $668,600 | $16,000 | |
Gross Margin | $684,000 | ($16,000) | ($14,000) | ($16,000) | $484,000 | ($16,000) | $484,000 | ($14,000) | ($166,000) | ($16,000) | ($166,600) | ($16,000) | |
Gross Margin % | 34.20% | 0.00% | -700.00% | 0.00% | 96.80% | 0.00% | 96.80% | -700.00% | -33.20% | 0.00% | -33.19% | 0.00% | |
Expenses | |||||||||||||
Payroll | $76,249 | $76,249 | $76,249 | $76,249 | $76,249 | $76,249 | $76,249 | $76,249 | $76,249 | $78,749 | $78,749 | $78,749 | |
Sales and Marketing and Other Expenses | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | |
Depreciation | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | |
Leased Equipment | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | |
Rent and Utilities | $0 | $0 | $0 | $0 | $0 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | |
Payroll Taxes | 25% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $81,366 | $81,366 | $81,366 | $81,366 | $81,366 | $82,866 | $82,866 | $82,866 | $82,866 | $85,366 | $85,366 | $85,366 | |
Profit Before Interest and Taxes | $602,634 | ($97,366) | ($95,366) | ($97,366) | $402,634 | ($98,866) | $401,134 | ($96,866) | ($248,866) | ($101,366) | ($251,966) | ($101,366) | |
EBITDA | $605,634 | ($94,366) | ($92,366) | ($94,366) | $405,634 | ($95,866) | $404,134 | ($93,866) | ($245,866) | ($98,366) | ($248,966) | ($98,366) | |
Interest Expense | $8,186 | $8,117 | $8,048 | $7,980 | $7,911 | $7,842 | $7,773 | $7,705 | $7,636 | $7,567 | $7,498 | $0 | |
Taxes Incurred | $196,168 | ($34,809) | ($34,127) | ($34,764) | $130,259 | ($35,214) | $129,809 | ($34,508) | ($84,646) | ($35,948) | ($85,623) | ($33,451) | |
Net Profit | $398,280 | ($70,674) | ($69,288) | ($70,582) | $264,465 | ($71,494) | $263,552 | ($70,062) | ($171,856) | ($72,985) | ($173,841) | ($67,915) | |
Net Profit/Sales | 19.91% | 0.00% | -3464.38% | 0.00% | 52.89% | 0.00% | 52.71% | -3503.11% | -34.37% | 0.00% | -34.63% | 0.00% |
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 | $1,000,000 | $0 | $0 | $0 | $500,000 | $0 | $500,000 | $0 | $500,000 | $0 | $500,000 | $0 | |
Cash from Receivables | $0 | $33,333 | $966,667 | $0 | $2,000 | $0 | $0 | $0 | $0 | $2,000 | $0 | $0 | |
Subtotal Cash from Operations | $1,000,000 | $33,333 | $966,667 | $0 | $502,000 | $0 | $500,000 | $0 | $500,000 | $2,000 | $500,000 | $0 | |
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 | $1,000,000 | $33,333 | $966,667 | $0 | $502,000 | $0 | $500,000 | $0 | $500,000 | $2,000 | $500,000 | $0 | |
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 | $76,249 | $76,249 | $76,249 | $76,249 | $76,249 | $76,249 | $76,249 | $76,249 | $76,249 | $78,749 | $78,749 | $78,749 | |
Bill Payments | $75,749 | $1,463,146 | ($16,251) | ($16,363) | ($3,169) | $143,322 | ($2,256) | $144,773 | $12,806 | $564,090 | $11,331 | $560,455 | |
Subtotal Spent on Operations | $151,998 | $1,539,395 | $59,998 | $59,886 | $73,080 | $219,571 | $73,993 | $221,022 | $89,055 | $642,839 | $90,080 | $639,204 | |
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 | $8,250 | $8,250 | $8,250 | $8,250 | $8,250 | $8,250 | $8,250 | $8,250 | $8,250 | $8,250 | $8,250 | $8,250 | |
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 | $160,248 | $1,547,645 | $68,248 | $68,136 | $81,330 | $227,821 | $82,243 | $229,272 | $97,305 | $651,089 | $98,330 | $647,454 | |
Net Cash Flow | $839,752 | ($1,514,312) | $898,419 | ($68,136) | $420,670 | ($227,821) | $417,757 | ($229,272) | $402,695 | ($649,089) | $401,669 | ($647,454) | |
Cash Balance | $3,139,752 | $1,625,440 | $2,523,858 | $2,455,723 | $2,876,393 | $2,648,572 | $3,066,329 | $2,837,057 | $3,239,752 | $2,590,663 | $2,992,332 | $2,344,878 |
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 | $2,300,000 | $3,139,752 | $1,625,440 | $2,523,858 | $2,455,723 | $2,876,393 | $2,648,572 | $3,066,329 | $2,837,057 | $3,239,752 | $2,590,663 | $2,992,332 | $2,344,878 |
Accounts Receivable | $0 | $1,000,000 | $966,667 | $2,000 | $2,000 | $0 | $0 | $0 | $2,000 | $2,000 | $0 | $2,000 | $2,000 |
Other Current Assets | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 |
Total Current Assets | $2,550,000 | $4,389,752 | $2,842,107 | $2,775,858 | $2,707,723 | $3,126,393 | $2,898,572 | $3,316,329 | $3,089,057 | $3,491,752 | $2,840,663 | $3,244,332 | $2,596,878 |
Long-term Assets | |||||||||||||
Long-term Assets | $400,000 | $400,000 | $400,000 | $400,000 | $400,000 | $400,000 | $400,000 | $400,000 | $400,000 | $400,000 | $400,000 | $400,000 | $400,000 |
Accumulated Depreciation | $0 | $3,000 | $6,000 | $9,000 | $12,000 | $15,000 | $18,000 | $21,000 | $24,000 | $27,000 | $30,000 | $33,000 | $36,000 |
Total Long-term Assets | $400,000 | $397,000 | $394,000 | $391,000 | $388,000 | $385,000 | $382,000 | $379,000 | $376,000 | $373,000 | $370,000 | $367,000 | $364,000 |
Total Assets | $2,950,000 | $4,786,752 | $3,236,107 | $3,166,858 | $3,095,723 | $3,511,393 | $3,280,572 | $3,695,329 | $3,465,057 | $3,864,752 | $3,210,663 | $3,611,332 | $2,960,878 |
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 | $25,000 | $1,471,722 | $0 | $8,289 | $15,986 | $175,441 | $24,364 | $183,820 | $31,860 | $611,661 | $38,807 | $621,568 | $47,279 |
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 | $25,000 | $1,471,722 | $0 | $8,289 | $15,986 | $175,441 | $24,364 | $183,820 | $31,860 | $611,661 | $38,807 | $621,568 | $47,279 |
Long-term Liabilities | $990,550 | $982,300 | $974,050 | $965,800 | $957,550 | $949,300 | $941,050 | $932,800 | $924,550 | $916,300 | $908,050 | $899,800 | $891,550 |
Total Liabilities | $1,015,550 | $2,454,022 | $974,050 | $974,089 | $973,536 | $1,124,741 | $965,414 | $1,116,620 | $956,410 | $1,527,961 | $946,857 | $1,521,368 | $938,829 |
Paid-in Capital | $2,000,000 | $2,000,000 | $2,000,000 | $2,000,000 | $2,000,000 | $2,000,000 | $2,000,000 | $2,000,000 | $2,000,000 | $2,000,000 | $2,000,000 | $2,000,000 | $2,000,000 |
Retained Earnings | ($65,550) | ($65,550) | ($65,550) | ($65,550) | ($65,550) | ($65,550) | ($65,550) | ($65,550) | ($65,550) | ($65,550) | ($65,550) | ($65,550) | ($65,550) |
Earnings | $0 | $398,280 | $327,607 | $258,319 | $187,737 | $452,202 | $380,708 | $644,259 | $574,197 | $402,341 | $329,356 | $155,514 | $87,599 |
Total Capital | $1,934,450 | $2,332,730 | $2,262,057 | $2,192,769 | $2,122,187 | $2,386,652 | $2,315,158 | $2,578,709 | $2,508,647 | $2,336,791 | $2,263,806 | $2,089,964 | $2,022,049 |
Total Liabilities and Capital | $2,950,000 | $4,786,752 | $3,236,107 | $3,166,858 | $3,095,723 | $3,511,393 | $3,280,572 | $3,695,329 | $3,465,057 | $3,864,752 | $3,210,663 | $3,611,332 | $2,960,878 |
Net Worth | $1,934,450 | $2,332,730 | $2,262,057 | $2,192,769 | $2,122,187 | $2,386,652 | $2,315,158 | $2,578,709 | $2,508,647 | $2,336,791 | $2,263,806 | $2,089,964 | $2,022,049 |