ArtSphere
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 | |||||||||||||
| Portrait Sales (HRN) | 0% | $650 | $650 | $650 | $650 | $650 | $650 | $650 | $650 | $650 | $650 | $650 | $650 |
| Artwork Sales (PN) | 0% | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 |
| School-aged Classes | 0% | $3,000 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 |
| Retired/non-work Classes | 0% | $0 | $0 | $0 | $0 | $0 | $3,160 | $3,160 | $3,160 | $3,160 | $3,160 | $3,160 | $6,320 |
| Evening/working Classes | 0% | $0 | $0 | $3,584 | $3,584 | $3,584 | $3,584 | $3,584 | $3,584 | $3,584 | $3,584 | $3,584 | $3,584 |
| Sale of Art Supplies | 0% | $0 | $0 | $640 | $640 | $640 | $1,240 | $1,240 | $1,240 | $2,140 | $2,140 | $2,140 | $2,740 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Sales | $3,950 | $4,550 | $8,774 | $8,774 | $8,774 | $12,534 | $12,534 | $12,534 | $13,434 | $13,434 | $13,434 | $17,194 | |
| 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 | |
| Portrait Sales (HRN) | $98 | $98 | $98 | $98 | $98 | $98 | $98 | $98 | $98 | $98 | $98 | $98 | |
| Artwork Sales (PN) | $45 | $45 | $45 | $45 | $45 | $45 | $45 | $45 | $45 | $45 | $45 | $45 | |
| School-aged Classes | $270 | $270 | $270 | $270 | $270 | $270 | $270 | $270 | $0 | $0 | $0 | $0 | |
| Retired/non-work Classes | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Evening/working Classes | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Sale of Art Supplies | $0 | $0 | $448 | $448 | $448 | $868 | $868 | $868 | $1,498 | $1,498 | $1,498 | $1,918 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $413 | $413 | $861 | $861 | $861 | $1,281 | $1,281 | $1,281 | $1,641 | $1,641 | $1,641 | $2,061 | |
| 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 | ||
| Hannah | 0% | $0 | $0 | $500 | $500 | $1,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
| Paul | 0% | $1,000 | $1,000 | $1,000 | $1,000 | $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 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total Payroll | $1,000 | $1,000 | $1,500 | $1,500 | $3,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | |
| 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% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | |
| 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 | $3,950 | $4,550 | $8,774 | $8,774 | $8,774 | $12,534 | $12,534 | $12,534 | $13,434 | $13,434 | $13,434 | $17,194 | |
| Direct Cost of Sales | $413 | $413 | $861 | $861 | $861 | $1,281 | $1,281 | $1,281 | $1,641 | $1,641 | $1,641 | $2,061 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $413 | $413 | $861 | $861 | $861 | $1,281 | $1,281 | $1,281 | $1,641 | $1,641 | $1,641 | $2,061 | |
| Gross Margin | $3,538 | $4,138 | $7,914 | $7,914 | $7,914 | $11,254 | $11,254 | $11,254 | $11,794 | $11,794 | $11,794 | $15,134 | |
| Gross Margin % | 89.56% | 90.93% | 90.19% | 90.19% | 90.19% | 89.78% | 89.78% | 89.78% | 87.79% | 87.79% | 87.79% | 88.02% | |
| Expenses | |||||||||||||
| Payroll | $1,000 | $1,000 | $1,500 | $1,500 | $3,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | |
| Sales and Marketing and Other Expenses | $400 | $400 | $400 | $449 | $1,593 | $899 | $899 | $899 | $2,043 | $899 | $899 | $1,349 | |
| Depreciation | $0 | $172 | $172 | $172 | $172 | $172 | $172 | $172 | $172 | $172 | $172 | $172 | |
| Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Utilities (Gas & Elec.) | $175 | $175 | $175 | $175 | $95 | $75 | $75 | $75 | $97 | $175 | $175 | $175 | |
| Insurance | $45 | $45 | $45 | $45 | $45 | $45 | $45 | $45 | $45 | $45 | $45 | $45 | |
| Rent | $1,225 | $1,225 | $1,225 | $1,225 | $1,225 | $1,225 | $1,225 | $1,225 | $1,225 | $1,225 | $1,225 | $1,225 | |
| Payroll Taxes | 15% | $150 | $150 | $225 | $225 | $450 | $600 | $600 | $600 | $600 | $600 | $600 | $600 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $2,995 | $3,167 | $3,742 | $3,791 | $6,580 | $7,016 | $7,016 | $7,016 | $8,182 | $7,116 | $7,116 | $7,566 | |
| Profit Before Interest and Taxes | $543 | $971 | $4,172 | $4,123 | $1,334 | $4,238 | $4,238 | $4,238 | $3,612 | $4,678 | $4,678 | $7,568 | |
| EBITDA | $543 | $1,143 | $4,344 | $4,295 | $1,506 | $4,410 | $4,410 | $4,410 | $3,784 | $4,850 | $4,850 | $7,740 | |
| Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Taxes Incurred | $163 | $340 | $1,460 | $1,443 | $467 | $1,483 | $1,483 | $1,483 | $1,264 | $1,637 | $1,637 | $2,649 | |
| Net Profit | $380 | $631 | $2,711 | $2,680 | $867 | $2,754 | $2,754 | $2,754 | $2,347 | $3,040 | $3,040 | $4,919 | |
| Net Profit/Sales | 9.61% | 13.86% | 30.90% | 30.54% | 9.88% | 21.98% | 21.98% | 21.98% | 17.47% | 22.63% | 22.63% | 28.61% | |
| 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 | $3,950 | $4,550 | $8,774 | $8,774 | $8,774 | $12,534 | $12,534 | $12,534 | $13,434 | $13,434 | $13,434 | $17,194 | |
| Subtotal Cash from Operations | $3,950 | $4,550 | $8,774 | $8,774 | $8,774 | $12,534 | $12,534 | $12,534 | $13,434 | $13,434 | $13,434 | $17,194 | |
| 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 | $3,950 | $4,550 | $8,774 | $8,774 | $8,774 | $12,534 | $12,534 | $12,534 | $13,434 | $13,434 | $13,434 | $17,194 | |
| 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 | $1,000 | $1,000 | $1,500 | $1,500 | $3,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | |
| Bill Payments | $105 | $3,164 | $3,375 | $4,531 | $4,572 | $4,893 | $5,429 | $5,608 | $5,664 | $7,274 | $6,222 | $6,300 | |
| Subtotal Spent on Operations | $1,105 | $4,164 | $4,875 | $6,031 | $7,572 | $8,893 | $9,429 | $9,608 | $9,664 | $11,274 | $10,222 | $10,300 | |
| 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 | $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 | $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 | $1,105 | $4,164 | $4,875 | $6,031 | $7,572 | $8,893 | $9,429 | $9,608 | $9,664 | $11,274 | $10,222 | $10,300 | |
| Net Cash Flow | $2,845 | $386 | $3,899 | $2,743 | $1,202 | $3,641 | $3,105 | $2,926 | $3,770 | $2,160 | $3,212 | $6,894 | |
| Cash Balance | $2,845 | $3,231 | $7,131 | $9,873 | $11,075 | $14,716 | $17,821 | $20,748 | $24,517 | $26,677 | $29,889 | $36,784 | |
| 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 | $0 | $2,845 | $3,231 | $7,131 | $9,873 | $11,075 | $14,716 | $17,821 | $20,748 | $24,517 | $26,677 | $29,889 | $36,784 |
| Inventory | $0 | $588 | $1,175 | $1,315 | $1,454 | $1,594 | $1,409 | $1,409 | $1,409 | $1,805 | $1,805 | $1,805 | $2,267 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $0 | $3,432 | $4,406 | $8,445 | $11,327 | $12,669 | $16,125 | $19,230 | $22,156 | $26,322 | $28,482 | $31,694 | $39,050 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $6,200 | $6,200 | $6,200 | $6,200 | $6,200 | $6,200 | $6,200 | $6,200 | $6,200 | $6,200 | $6,200 | $6,200 | $6,200 |
| Accumulated Depreciation | $0 | $0 | $172 | $344 | $516 | $688 | $860 | $1,032 | $1,204 | $1,376 | $1,548 | $1,720 | $1,892 |
| Total Long-term Assets | $6,200 | $6,200 | $6,028 | $5,856 | $5,684 | $5,512 | $5,340 | $5,168 | $4,996 | $4,824 | $4,652 | $4,480 | $4,308 |
| Total Assets | $6,200 | $9,632 | $10,434 | $14,301 | $17,011 | $18,181 | $21,465 | $24,398 | $27,152 | $31,146 | $33,134 | $36,174 | $43,358 |
| 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 | $3,052 | $3,224 | $4,379 | $4,410 | $4,712 | $5,242 | $5,421 | $5,421 | $7,067 | $6,014 | $6,014 | $8,280 |
| 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 | $3,052 | $3,224 | $4,379 | $4,410 | $4,712 | $5,242 | $5,421 | $5,421 | $7,067 | $6,014 | $6,014 | $8,280 |
| Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Liabilities | $0 | $3,052 | $3,224 | $4,379 | $4,410 | $4,712 | $5,242 | $5,421 | $5,421 | $7,067 | $6,014 | $6,014 | $8,280 |
| Paid-in Capital | $8,265 | $8,265 | $8,265 | $8,265 | $8,265 | $8,265 | $8,265 | $8,265 | $8,265 | $8,265 | $8,265 | $8,265 | $8,265 |
| Retained Earnings | ($2,065) | ($2,065) | ($2,065) | ($2,065) | ($2,065) | ($2,065) | ($2,065) | ($2,065) | ($2,065) | ($2,065) | ($2,065) | ($2,065) | ($2,065) |
| Earnings | $0 | $380 | $1,011 | $3,722 | $6,402 | $7,268 | $10,023 | $12,777 | $15,532 | $17,879 | $20,919 | $23,960 | $28,879 |
| Total Capital | $6,200 | $6,580 | $7,211 | $9,922 | $12,602 | $13,468 | $16,223 | $18,977 | $21,732 | $24,079 | $27,119 | $30,160 | $35,079 |
| Total Liabilities and Capital | $6,200 | $9,632 | $10,434 | $14,301 | $17,011 | $18,181 | $21,465 | $24,398 | $27,152 | $31,146 | $33,134 | $36,174 | $43,358 |
| Net Worth | $6,200 | $6,580 | $7,211 | $9,922 | $12,602 | $13,468 | $16,223 | $18,977 | $21,732 | $24,079 | $27,119 | $30,160 | $35,079 |
By 
