Hart Fraeme Gallery
Appendix
| Sales Forecast | |||||||||||||
| Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | ||
| Sales | |||||||||||||
| Unframed Artwork | 0% | $3,750 | $4,500 | $7,500 | $13,500 | $4,500 | $4,000 | $3,750 | $3,750 | $3,500 | $2,250 | $2,500 | $3,150 |
| Framed Artwork | 0% | $3,750 | $4,500 | $7,500 | $13,500 | $4,500 | $4,000 | $3,750 | $3,750 | $3,500 | $2,250 | $2,500 | $3,150 |
| Special Orders | 0% | $400 | $420 | $500 | $650 | $475 | $400 | $380 | $375 | $365 | $350 | $360 | $375 |
| Custom Framing | 0% | $22,500 | $27,000 | $31,000 | $38,000 | $31,000 | $28,000 | $24,000 | $22,500 | $21,000 | $13,500 | $15,000 | $18,700 |
| Total Sales | $30,400 | $36,420 | $46,500 | $65,650 | $40,475 | $36,400 | $31,880 | $30,375 | $28,365 | $18,350 | $20,360 | $25,375 | |
| Direct Cost of Sales | Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | |
| Unframed Artwork | $2,250 | $2,700 | $4,500 | $8,100 | $2,700 | $2,400 | $2,250 | $2,250 | $2,100 | $1,350 | $1,500 | $1,900 | |
| Materials for Framing | $7,900 | $9,500 | $10,900 | $13,300 | $10,900 | $9,800 | $8,400 | $7,900 | $7,400 | $4,700 | $5,300 | $6,600 | |
| Framing Supplies and Maintenance | $600 | $750 | $750 | $900 | $750 | $750 | $600 | $600 | $600 | $300 | $450 | $600 | |
| Subtotal Direct Cost of Sales | $10,750 | $12,950 | $16,150 | $22,300 | $14,350 | $12,950 | $11,250 | $10,750 | $10,100 | $6,350 | $7,250 | $9,100 | |
| Personnel Plan | |||||||||||||
| Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | ||
| Owner | 0% | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
| Assistant Manager | 0% | $0 | $0 | $0 | $0 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
| Sales and Design Associates | 0% | $2,880 | $2,880 | $2,880 | $2,880 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 |
| Total People | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | |
| Total Payroll | $6,880 | $6,880 | $6,880 | $6,880 | $7,600 | $7,600 | $7,600 | $7,600 | $7,600 | $7,600 | $7,600 | $7,600 | |
| Pro Forma Profit and Loss | |||||||||||||
| Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | ||
| Sales | $30,400 | $36,420 | $46,500 | $65,650 | $40,475 | $36,400 | $31,880 | $30,375 | $28,365 | $18,350 | $20,360 | $25,375 | |
| Direct Cost of Sales | $10,750 | $12,950 | $16,150 | $22,300 | $14,350 | $12,950 | $11,250 | $10,750 | $10,100 | $6,350 | $7,250 | $9,100 | |
| Other Costs of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $10,750 | $12,950 | $16,150 | $22,300 | $14,350 | $12,950 | $11,250 | $10,750 | $10,100 | $6,350 | $7,250 | $9,100 | |
| Gross Margin | $19,650 | $23,470 | $30,350 | $43,350 | $26,125 | $23,450 | $20,630 | $19,625 | $18,265 | $12,000 | $13,110 | $16,275 | |
| Gross Margin % | 64.64% | 64.44% | 65.27% | 66.03% | 64.55% | 64.42% | 64.71% | 64.61% | 64.39% | 65.40% | 64.39% | 64.14% | |
| Expenses | |||||||||||||
| Payroll | $6,880 | $6,880 | $6,880 | $6,880 | $7,600 | $7,600 | $7,600 | $7,600 | $7,600 | $7,600 | $7,600 | $7,600 | |
| Marketing/Promotion | $1,500 | $1,000 | $1,500 | $1,500 | $1,000 | $750 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Depreciation | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
| Rent | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | |
| Percentage Rent | $3,000 | $3,700 | $4,700 | $6,700 | $4,000 | $3,600 | $3,200 | $3,000 | $2,900 | $1,900 | $2,000 | $2,500 | |
| Payroll Taxes | 15% | $1,032 | $1,032 | $1,032 | $1,032 | $1,140 | $1,140 | $1,140 | $1,140 | $1,140 | $1,140 | $1,140 | $1,140 |
| Utilities | $1,500 | $1,500 | $2,000 | $2,000 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | |
| Insurance | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
| Accounting Services | 15% | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 |
| Other | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | |
| Total Operating Expenses | $18,562 | $18,762 | $20,762 | $22,762 | $19,890 | $19,240 | $18,590 | $18,390 | $18,290 | $17,290 | $17,390 | $17,890 | |
| Profit Before Interest and Taxes | $1,088 | $4,708 | $9,588 | $20,588 | $6,235 | $4,210 | $2,040 | $1,235 | ($25) | ($5,290) | ($4,280) | ($1,615) | |
| EBITDA | $1,338 | $4,958 | $9,838 | $20,838 | $6,485 | $4,460 | $2,290 | $1,485 | $225 | ($5,040) | ($4,030) | ($1,365) | |
| Interest Expense | $697 | $685 | $673 | $662 | $650 | $638 | $627 | $615 | $603 | $592 | $580 | $568 | |
| Taxes Incurred | $117 | $1,207 | $2,674 | $5,978 | $1,676 | $1,072 | $424 | $186 | ($189) | ($1,765) | ($1,458) | ($655) | |
| Net Profit | $274 | $2,816 | $6,240 | $13,948 | $3,910 | $2,500 | $989 | $434 | ($440) | ($4,117) | ($3,402) | ($1,528) | |
| Net Profit/Sales | 0.90% | 7.73% | 13.42% | 21.25% | 9.66% | 6.87% | 3.10% | 1.43% | -1.55% | -22.44% | -16.71% | -6.02% | |
| Pro Forma Cash Flow | |||||||||||||
| Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | ||
| Cash Received | |||||||||||||
| Cash from Operations | |||||||||||||
| Cash Sales | $30,400 | $36,420 | $46,500 | $65,650 | $40,475 | $36,400 | $31,880 | $30,375 | $28,365 | $18,350 | $20,360 | $25,375 | |
| Subtotal Cash from Operations | $30,400 | $36,420 | $46,500 | $65,650 | $40,475 | $36,400 | $31,880 | $30,375 | $28,365 | $18,350 | $20,360 | $25,375 | |
| 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 | $30,400 | $36,420 | $46,500 | $65,650 | $40,475 | $36,400 | $31,880 | $30,375 | $28,365 | $18,350 | $20,360 | $25,375 | |
| Expenditures | Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | |
| Expenditures from Operations | |||||||||||||
| Cash Spending | $6,880 | $6,880 | $6,880 | $6,880 | $7,600 | $7,600 | $7,600 | $7,600 | $7,600 | $7,600 | $7,600 | $7,600 | |
| Bill Payments | $408 | $12,744 | $27,479 | $36,809 | $49,723 | $20,895 | $24,540 | $21,349 | $21,548 | $19,990 | $11,065 | $16,948 | |
| Subtotal Spent on Operations | $7,288 | $19,624 | $34,359 | $43,689 | $57,323 | $28,495 | $32,140 | $28,949 | $29,148 | $27,590 | $18,665 | $24,548 | |
| 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 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | |
| 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 | $520 | $520 | $520 | $520 | $520 | $520 | $520 | $520 | $520 | $520 | $520 | $520 | |
| Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Spent | $9,208 | $21,544 | $36,279 | $45,609 | $59,243 | $30,415 | $34,060 | $30,869 | $31,068 | $29,510 | $20,585 | $26,468 | |
| Net Cash Flow | $21,192 | $14,876 | $10,221 | $20,041 | ($18,768) | $5,985 | ($2,180) | ($494) | ($2,703) | ($11,160) | ($225) | ($1,093) | |
| Cash Balance | $41,192 | $56,068 | $66,289 | $86,330 | $67,562 | $73,547 | $71,367 | $70,873 | $68,170 | $57,010 | $56,784 | $55,691 | |
| Pro Forma Balance Sheet | |||||||||||||
| Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | ||
| Assets | Starting Balances | ||||||||||||
| Current Assets | |||||||||||||
| Cash | $20,000 | $41,192 | $56,068 | $66,289 | $86,330 | $67,562 | $73,547 | $71,367 | $70,873 | $68,170 | $57,010 | $56,784 | $55,691 |
| Inventory | $23,000 | $12,250 | $12,950 | $16,150 | $22,300 | $14,350 | $12,950 | $11,250 | $10,750 | $10,100 | $6,350 | $7,250 | $9,100 |
| Other Current Assets | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 |
| Total Current Assets | $46,500 | $56,942 | $72,518 | $85,939 | $112,130 | $85,412 | $89,997 | $86,117 | $85,123 | $81,770 | $66,860 | $67,534 | $68,291 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $39,000 | $39,520 | $40,040 | $40,560 | $41,080 | $41,600 | $42,120 | $42,640 | $43,160 | $43,680 | $44,200 | $44,720 | $45,240 |
| Accumulated Depreciation | $0 | $250 | $500 | $750 | $1,000 | $1,250 | $1,500 | $1,750 | $2,000 | $2,250 | $2,500 | $2,750 | $3,000 |
| Total Long-term Assets | $39,000 | $39,270 | $39,540 | $39,810 | $40,080 | $40,350 | $40,620 | $40,890 | $41,160 | $41,430 | $41,700 | $41,970 | $42,240 |
| Total Assets | $85,500 | $96,212 | $112,058 | $125,749 | $152,210 | $125,762 | $130,617 | $127,007 | $126,283 | $123,200 | $108,560 | $109,504 | $110,531 |
| Liabilities and Capital | Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | |
| Current Liabilities | |||||||||||||
| Accounts Payable | $0 | $11,838 | $26,268 | $35,119 | $49,031 | $20,073 | $23,828 | $20,629 | $20,871 | $19,628 | $10,505 | $16,252 | $20,207 |
| Current Borrowing | $85,000 | $83,600 | $82,200 | $80,800 | $79,400 | $78,000 | $76,600 | $75,200 | $73,800 | $72,400 | $71,000 | $69,600 | $68,200 |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $85,000 | $95,438 | $108,468 | $115,919 | $128,431 | $98,073 | $100,428 | $95,829 | $94,671 | $92,028 | $81,505 | $85,852 | $88,407 |
| Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Liabilities | $85,000 | $95,438 | $108,468 | $115,919 | $128,431 | $98,073 | $100,428 | $95,829 | $94,671 | $92,028 | $81,505 | $85,852 | $88,407 |
| 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 | ($19,500) | ($19,500) | ($19,500) | ($19,500) | ($19,500) | ($19,500) | ($19,500) | ($19,500) | ($19,500) | ($19,500) | ($19,500) | ($19,500) | ($19,500) |
| Earnings | $0 | $274 | $3,090 | $9,330 | $23,279 | $27,188 | $29,688 | $30,678 | $31,112 | $30,672 | $26,555 | $23,153 | $21,624 |
| Total Capital | $500 | $774 | $3,590 | $9,830 | $23,779 | $27,688 | $30,188 | $31,178 | $31,612 | $31,172 | $27,055 | $23,653 | $22,124 |
| Total Liabilities and Capital | $85,500 | $96,212 | $112,058 | $125,749 | $152,210 | $125,762 | $130,617 | $127,007 | $126,283 | $123,200 | $108,560 | $109,504 | $110,531 |
| Net Worth | $500 | $774 | $3,590 | $9,830 | $23,779 | $27,688 | $30,188 | $31,178 | $31,612 | $31,172 | $27,055 | $23,653 | $22,124 |
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