Southeast Racing
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 | |||||||||||||
| Inventory Sales | 0% | $16,000 | $20,800 | $24,960 | $22,464 | $20,217 | $23,250 | $26,737 | $32,084 | $38,501 | $46,202 | $41,581 | $37,423 |
| Internet Marketing | 0% | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 |
| Total Sales | $17,400 | $22,200 | $26,360 | $23,864 | $21,617 | $24,650 | $28,137 | $33,484 | $39,901 | $47,602 | $42,981 | $38,823 | |
| 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 | |
| Inventory | $11,200 | $14,560 | $17,472 | $15,725 | $14,152 | $16,275 | $18,716 | $22,459 | $26,951 | $32,341 | $29,107 | $26,196 | |
| Internet Marketing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $11,200 | $14,560 | $17,472 | $15,725 | $14,152 | $16,275 | $18,716 | $22,459 | $26,951 | $32,341 | $29,107 | $26,196 | |
| 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 | ||
| Tim Jones | 0% | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 |
| Molly Jones | 0% | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 |
| Salesperson (PT) | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Salesperson (FT) | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total People | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | |
| Total Payroll | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | |
| 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 | $17,400 | $22,200 | $26,360 | $23,864 | $21,617 | $24,650 | $28,137 | $33,484 | $39,901 | $47,602 | $42,981 | $38,823 | |
| Direct Cost of Sales | $11,200 | $14,560 | $17,472 | $15,725 | $14,152 | $16,275 | $18,716 | $22,459 | $26,951 | $32,341 | $29,107 | $26,196 | |
| Other Costs of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $11,200 | $14,560 | $17,472 | $15,725 | $14,152 | $16,275 | $18,716 | $22,459 | $26,951 | $32,341 | $29,107 | $26,196 | |
| Gross Margin | $6,200 | $7,640 | $8,888 | $8,139 | $7,465 | $8,375 | $9,421 | $11,025 | $12,950 | $15,261 | $13,874 | $12,627 | |
| Gross Margin % | 35.63% | 34.41% | 33.72% | 34.11% | 34.53% | 33.98% | 33.48% | 32.93% | 32.46% | 32.06% | 32.28% | 32.52% | |
| Expenses | |||||||||||||
| Payroll | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | |
| Marketing/Promotion | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
| Depreciation | $345 | $345 | $345 | $345 | $345 | $345 | $345 | $345 | $345 | $345 | $345 | $345 | |
| Vehicle Expense | $150 | $150 | $150 | $125 | $125 | $125 | $125 | $150 | $150 | $150 | $150 | $150 | |
| Credit Card Surcharge | $160 | $208 | $249 | $224 | $202 | $232 | $267 | $320 | $385 | $462 | $415 | $374 | |
| Inbound Freight Charges | $224 | $350 | $350 | $314 | $284 | $326 | $374 | $450 | $540 | $646 | $582 | $524 | |
| Office Supplies | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | |
| Security/alarm | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | |
| Telephone | $150 | $156 | $187 | $168 | $150 | $174 | $200 | $240 | $288 | $346 | $311 | $280 | |
| Accounting Costs | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | |
| Rent | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | |
| Utilities | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Insurance | $70 | $70 | $70 | $70 | $70 | $70 | $70 | $70 | $70 | $70 | $70 | $70 | |
| Payroll Taxes | 15% | $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 | $5,454 | $5,634 | $5,706 | $5,601 | $5,531 | $5,627 | $5,736 | $5,930 | $6,133 | $6,374 | $6,228 | $6,098 | |
| Profit Before Interest and Taxes | $746 | $2,006 | $3,182 | $2,538 | $1,934 | $2,748 | $3,685 | $5,095 | $6,817 | $8,887 | $7,646 | $6,529 | |
| EBITDA | $1,091 | $2,351 | $3,527 | $2,883 | $2,279 | $3,093 | $4,030 | $5,440 | $7,162 | $9,232 | $7,991 | $6,874 | |
| Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Taxes Incurred | $224 | $602 | $955 | $761 | $580 | $824 | $1,106 | $1,529 | $2,045 | $2,666 | $2,294 | $1,959 | |
| Net Profit | $522 | $1,404 | $2,227 | $1,777 | $1,354 | $1,924 | $2,580 | $3,567 | $4,772 | $6,221 | $5,352 | $4,570 | |
| Net Profit/Sales | 3.00% | 6.33% | 8.45% | 7.44% | 6.26% | 7.80% | 9.17% | 10.65% | 11.96% | 13.07% | 12.45% | 11.77% | |
| 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 | $17,400 | $22,200 | $26,360 | $23,864 | $21,617 | $24,650 | $28,137 | $33,484 | $39,901 | $47,602 | $42,981 | $38,823 | |
| Subtotal Cash from Operations | $17,400 | $22,200 | $26,360 | $23,864 | $21,617 | $24,650 | $28,137 | $33,484 | $39,901 | $47,602 | $42,981 | $38,823 | |
| 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 | $17,400 | $22,200 | $26,360 | $23,864 | $21,617 | $24,650 | $28,137 | $33,484 | $39,901 | $47,602 | $42,981 | $38,823 | |
| 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 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | |
| Bill Payments | $2,104 | $3,151 | $4,120 | $16,602 | $17,566 | $16,206 | $22,623 | $25,891 | $31,691 | $37,767 | $44,324 | $31,426 | |
| Subtotal Spent on Operations | $4,304 | $5,351 | $6,320 | $18,802 | $19,766 | $18,406 | $24,823 | $28,091 | $33,891 | $39,967 | $46,524 | $33,626 | |
| 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 | $4,304 | $5,351 | $6,320 | $18,802 | $19,766 | $18,406 | $24,823 | $28,091 | $33,891 | $39,967 | $46,524 | $33,626 | |
| Net Cash Flow | $13,096 | $16,849 | $20,040 | $5,062 | $1,851 | $6,244 | $3,314 | $5,393 | $6,010 | $7,635 | ($3,543) | $5,197 | |
| Cash Balance | $14,096 | $30,944 | $50,984 | $56,046 | $57,897 | $64,141 | $67,456 | $72,849 | $78,859 | $86,494 | $82,952 | $88,149 | |
| 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 | $1,000 | $14,096 | $30,944 | $50,984 | $56,046 | $57,897 | $64,141 | $67,456 | $72,849 | $78,859 | $86,494 | $82,952 | $88,149 |
| Inventory | $50,000 | $38,800 | $24,240 | $19,219 | $17,298 | $15,567 | $17,903 | $20,588 | $24,705 | $29,646 | $35,575 | $32,018 | $28,816 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $51,000 | $52,896 | $55,184 | $70,203 | $73,344 | $73,464 | $82,044 | $88,043 | $97,554 | $108,505 | $122,070 | $114,969 | $116,965 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 |
| Accumulated Depreciation | $0 | $345 | $690 | $1,035 | $1,380 | $1,725 | $2,070 | $2,415 | $2,760 | $3,105 | $3,450 | $3,795 | $4,140 |
| Total Long-term Assets | $29,000 | $28,655 | $28,310 | $27,965 | $27,620 | $27,275 | $26,930 | $26,585 | $26,240 | $25,895 | $25,550 | $25,205 | $24,860 |
| Total Assets | $80,000 | $81,551 | $83,494 | $98,168 | $100,964 | $100,739 | $108,974 | $114,628 | $123,794 | $134,400 | $147,620 | $140,174 | $141,825 |
| 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 | $2,000 | $3,028 | $3,568 | $16,015 | $17,033 | $15,455 | $21,766 | $24,841 | $30,440 | $36,274 | $43,273 | $30,476 | $27,555 |
| 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 | $2,000 | $3,028 | $3,568 | $16,015 | $17,033 | $15,455 | $21,766 | $24,841 | $30,440 | $36,274 | $43,273 | $30,476 | $27,555 |
| Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Liabilities | $2,000 | $3,028 | $3,568 | $16,015 | $17,033 | $15,455 | $21,766 | $24,841 | $30,440 | $36,274 | $43,273 | $30,476 | $27,555 |
| Paid-in Capital | $80,625 | $80,625 | $80,625 | $80,625 | $80,625 | $80,625 | $80,625 | $80,625 | $80,625 | $80,625 | $80,625 | $80,625 | $80,625 |
| Retained Earnings | ($2,625) | ($2,625) | ($2,625) | ($2,625) | ($2,625) | ($2,625) | ($2,625) | ($2,625) | ($2,625) | ($2,625) | ($2,625) | ($2,625) | ($2,625) |
| Earnings | $0 | $522 | $1,926 | $4,154 | $5,930 | $7,284 | $9,208 | $11,787 | $15,354 | $20,126 | $26,347 | $31,699 | $36,269 |
| Total Capital | $78,000 | $78,522 | $79,926 | $82,154 | $83,930 | $85,284 | $87,208 | $89,787 | $93,354 | $98,126 | $104,347 | $109,699 | $114,269 |
| Total Liabilities and Capital | $80,000 | $81,551 | $83,494 | $98,168 | $100,964 | $100,739 | $108,974 | $114,628 | $123,794 | $134,400 | $147,620 | $140,174 | $141,825 |
| Net Worth | $78,000 | $78,522 | $79,926 | $82,154 | $83,930 | $85,284 | $87,208 | $89,787 | $93,354 | $98,126 | $104,347 | $109,699 | $114,269 |
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