F and R Auto Repair
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 | |||||||||||||
Routine maintenance | 0% | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 |
Small repair jobs | 0% | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 |
Large repair jobs | 0% | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $6,500 | $6,500 | $6,500 | $6,500 | $6,500 | $6,500 |
Total Sales | $13,300 | $13,300 | $13,300 | $13,300 | $13,300 | $13,300 | $16,500 | $16,500 | $16,500 | $16,500 | $16,500 | $16,500 | |
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 | |
Routine maintenance | $400 | $400 | $400 | $400 | $400 | $400 | $450 | $450 | $450 | $450 | $450 | $450 | |
Small repair jobs | $450 | $450 | $450 | $450 | $450 | $450 | $550 | $550 | $550 | $550 | $550 | $550 | |
Large repair jobs | $480 | $480 | $480 | $480 | $480 | $480 | $650 | $650 | $650 | $650 | $650 | $650 | |
Subtotal Direct Cost of Sales | $1,330 | $1,330 | $1,330 | $1,330 | $1,330 | $1,330 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 |
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 | ||
Mr. Ford | 0% | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Mr. Ronald | 0% | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Office manager (part time) | 0% | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 |
Apprentice mechanic (part time) | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $1,150 | $1,150 | $1,150 | $1,150 | $1,150 | $1,150 |
Apprentice mechanic (part time) | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Apprentice mechanic (part time) | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total People | 3 | 3 | 3 | 3 | 3 | 3 | 4 | 4 | 4 | 4 | 4 | 4 | |
Total Payroll | $7,200 | $7,200 | $7,200 | $7,200 | $7,200 | $7,200 | $8,350 | $8,350 | $8,350 | $8,350 | $8,350 | $8,350 |
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 | $13,300 | $13,300 | $13,300 | $13,300 | $13,300 | $13,300 | $16,500 | $16,500 | $16,500 | $16,500 | $16,500 | $16,500 | |
Direct Cost of Sales | $1,330 | $1,330 | $1,330 | $1,330 | $1,330 | $1,330 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | |
Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $1,330 | $1,330 | $1,330 | $1,330 | $1,330 | $1,330 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | |
Gross Margin | $11,970 | $11,970 | $11,970 | $11,970 | $11,970 | $11,970 | $14,850 | $14,850 | $14,850 | $14,850 | $14,850 | $14,850 | |
Gross Margin % | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | |
Expenses | |||||||||||||
Payroll | $7,200 | $7,200 | $7,200 | $7,200 | $7,200 | $7,200 | $8,350 | $8,350 | $8,350 | $8,350 | $8,350 | $8,350 | |
Sales and Marketing and Other Expenses | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Depreciation | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | |
Leased Equipment | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Utilities | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | |
Insurance | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | |
Rent | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
Payroll Taxes | 15% | $1,080 | $1,080 | $1,080 | $1,080 | $1,080 | $1,080 | $1,253 | $1,253 | $1,253 | $1,253 | $1,253 | $1,253 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $12,446 | $12,446 | $12,446 | $12,446 | $12,446 | $12,446 | $13,769 | $13,769 | $13,769 | $13,769 | $13,769 | $13,769 | |
Profit Before Interest and Taxes | ($476) | ($476) | ($476) | ($476) | ($476) | ($476) | $1,082 | $1,082 | $1,082 | $1,082 | $1,082 | $1,082 | |
EBITDA | ($310) | ($310) | ($310) | ($310) | ($310) | ($310) | $1,248 | $1,248 | $1,248 | $1,248 | $1,248 | $1,248 | |
Interest Expense | $165 | $164 | $162 | $161 | $160 | $158 | $157 | $156 | $154 | $153 | $151 | $150 | |
Taxes Incurred | ($192) | ($192) | ($192) | ($191) | ($191) | ($190) | $277 | $278 | $278 | $279 | $279 | $279 | |
Net Profit | ($449) | ($448) | ($447) | ($446) | ($445) | ($444) | $647 | $648 | $649 | $650 | $651 | $652 | |
Net Profit/Sales | -3.38% | -3.37% | -3.36% | -3.35% | -3.35% | -3.34% | 3.92% | 3.93% | 3.93% | 3.94% | 3.95% | 3.95% |
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 | $11,970 | $11,970 | $11,970 | $11,970 | $11,970 | $11,970 | $14,850 | $14,850 | $14,850 | $14,850 | $14,850 | $14,850 | |
Cash from Receivables | $0 | $44 | $1,330 | $1,330 | $1,330 | $1,330 | $1,330 | $1,341 | $1,650 | $1,650 | $1,650 | $1,650 | |
Subtotal Cash from Operations | $11,970 | $12,014 | $13,300 | $13,300 | $13,300 | $13,300 | $16,180 | $16,191 | $16,500 | $16,500 | $16,500 | $16,500 | |
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 | $11,970 | $12,014 | $13,300 | $13,300 | $13,300 | $13,300 | $16,180 | $16,191 | $16,500 | $16,500 | $16,500 | $16,500 | |
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 | $7,200 | $7,200 | $7,200 | $7,200 | $7,200 | $7,200 | $8,350 | $8,350 | $8,350 | $8,350 | $8,350 | $8,350 | |
Bill Payments | $262 | $7,797 | $6,382 | $6,381 | $6,380 | $6,379 | $6,422 | $7,677 | $7,336 | $7,335 | $7,334 | $7,333 | |
Subtotal Spent on Operations | $7,462 | $14,997 | $13,582 | $13,581 | $13,580 | $13,579 | $14,772 | $16,027 | $15,686 | $15,685 | $15,684 | $15,683 | |
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 | $167 | $167 | $167 | $167 | $167 | $167 | $167 | $167 | $167 | $167 | $167 | $167 | |
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 | $7,628 | $15,164 | $13,749 | $13,748 | $13,747 | $13,746 | $14,938 | $16,194 | $15,852 | $15,852 | $15,851 | $15,850 | |
Net Cash Flow | $4,342 | ($3,149) | ($449) | ($448) | ($447) | ($446) | $1,242 | ($3) | $648 | $648 | $649 | $650 | |
Cash Balance | $7,242 | $4,092 | $3,644 | $3,196 | $2,750 | $2,304 | $3,546 | $3,543 | $4,190 | $4,839 | $5,488 | $6,138 |
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 | $2,900 | $7,242 | $4,092 | $3,644 | $3,196 | $2,750 | $2,304 | $3,546 | $3,543 | $4,190 | $4,839 | $5,488 | $6,138 |
Accounts Receivable | $0 | $1,330 | $2,616 | $2,616 | $2,616 | $2,616 | $2,616 | $2,936 | $3,245 | $3,245 | $3,245 | $3,245 | $3,245 |
Inventory | $0 | $1,463 | $1,463 | $1,463 | $1,463 | $1,463 | $1,463 | $1,815 | $1,815 | $1,815 | $1,815 | $1,815 | $1,815 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $2,900 | $10,035 | $8,171 | $7,722 | $7,275 | $6,828 | $6,383 | $8,296 | $8,603 | $9,250 | $9,899 | $10,548 | $11,198 |
Long-term Assets | |||||||||||||
Long-term Assets | $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 |
Accumulated Depreciation | $0 | $166 | $332 | $498 | $664 | $830 | $996 | $1,162 | $1,328 | $1,494 | $1,660 | $1,826 | $1,992 |
Total Long-term Assets | $20,000 | $19,834 | $19,668 | $19,502 | $19,336 | $19,170 | $19,004 | $18,838 | $18,672 | $18,506 | $18,340 | $18,174 | $18,008 |
Total Assets | $22,900 | $29,869 | $27,839 | $27,224 | $26,611 | $25,998 | $25,387 | $27,134 | $27,275 | $27,756 | $28,239 | $28,722 | $29,206 |
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 | $7,584 | $6,169 | $6,168 | $6,167 | $6,166 | $6,165 | $7,433 | $7,091 | $7,090 | $7,089 | $7,088 | $7,088 |
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 | $7,584 | $6,169 | $6,168 | $6,167 | $6,166 | $6,165 | $7,433 | $7,091 | $7,090 | $7,089 | $7,088 | $7,088 |
Long-term Liabilities | $20,000 | $19,833 | $19,667 | $19,500 | $19,333 | $19,167 | $19,000 | $18,833 | $18,667 | $18,500 | $18,333 | $18,167 | $18,000 |
Total Liabilities | $20,000 | $27,418 | $25,836 | $25,668 | $25,501 | $25,333 | $25,165 | $26,266 | $25,758 | $25,590 | $25,423 | $25,255 | $25,088 |
Paid-in Capital | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 |
Retained Earnings | ($9,100) | ($9,100) | ($9,100) | ($9,100) | ($9,100) | ($9,100) | ($9,100) | ($9,100) | ($9,100) | ($9,100) | ($9,100) | ($9,100) | ($9,100) |
Earnings | $0 | ($449) | ($897) | ($1,344) | ($1,790) | ($2,235) | ($2,679) | ($2,032) | ($1,383) | ($734) | ($84) | $567 | $1,219 |
Total Capital | $2,900 | $2,451 | $2,003 | $1,556 | $1,110 | $665 | $221 | $868 | $1,517 | $2,166 | $2,816 | $3,467 | $4,119 |
Total Liabilities and Capital | $22,900 | $29,869 | $27,839 | $27,224 | $26,611 | $25,998 | $25,387 | $27,134 | $27,275 | $27,756 | $28,239 | $28,722 | $29,206 |
Net Worth | $2,900 | $2,451 | $2,003 | $1,556 | $1,110 | $665 | $221 | $868 | $1,517 | $2,166 | $2,816 | $3,467 | $4,119 |