Magnolia Inn
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 | |||||||||||||
| Reservations | 0% | $18,000 | $20,000 | $24,482 | $24,727 | $24,974 | $25,224 | $25,476 | $25,731 | $25,989 | $26,248 | $26,511 | $26,776 |
| Drop-ins | 0% | $2,000 | $3,000 | $4,080 | $4,121 | $4,162 | $4,204 | $4,246 | $4,289 | $4,331 | $4,375 | $4,418 | $4,463 |
| Total Sales | $20,000 | $23,000 | $28,563 | $28,848 | $29,137 | $29,428 | $29,723 | $30,020 | $30,320 | $30,623 | $30,929 | $31,239 | |
| 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 | |
| Reservations | $900 | $1,000 | $1,224 | $1,236 | $1,249 | $1,261 | $1,274 | $1,287 | $1,299 | $1,312 | $1,326 | $1,339 | |
| Drop-ins | $100 | $150 | $204 | $206 | $208 | $210 | $212 | $214 | $217 | $219 | $221 | $223 | |
| Subtotal Direct Cost of Sales | $1,000 | $1,150 | $1,428 | $1,442 | $1,457 | $1,471 | $1,486 | $1,501 | $1,516 | $1,531 | $1,546 | $1,562 | |
| 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 | ||
| Owners | 0% | $3,000 | $4,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
| Full time Staff | 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 |
| Total People | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | |
| Total Payroll | $7,000 | $8,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | |
| 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 | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | |
| Long-term Interest Rate | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | |
| Tax Rate | 30.00% | 28.00% | 28.00% | 28.00% | 28.00% | 28.00% | 28.00% | 28.00% | 28.00% | 28.00% | 28.00% | 28.00% | |
| 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 | $20,000 | $23,000 | $28,563 | $28,848 | $29,137 | $29,428 | $29,723 | $30,020 | $30,320 | $30,623 | $30,929 | $31,239 | |
| Direct Cost of Sales | $1,000 | $1,150 | $1,428 | $1,442 | $1,457 | $1,471 | $1,486 | $1,501 | $1,516 | $1,531 | $1,546 | $1,562 | |
| Other Costs of Sales | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
| Total Cost of Sales | $2,000 | $2,150 | $2,428 | $2,442 | $2,457 | $2,471 | $2,486 | $2,501 | $2,516 | $2,531 | $2,546 | $2,562 | |
| Gross Margin | $18,000 | $20,850 | $26,135 | $26,406 | $26,680 | $26,957 | $27,236 | $27,519 | $27,804 | $28,092 | $28,383 | $28,677 | |
| Gross Margin % | 90.00% | 90.65% | 91.50% | 91.53% | 91.57% | 91.60% | 91.64% | 91.67% | 91.70% | 91.73% | 91.77% | 91.80% | |
| Expenses | |||||||||||||
| Payroll | $7,000 | $8,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | |
| Sales and Marketing and Other Expenses | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
| Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| 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 | |
| Utilities | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
| Insurance | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Payroll Taxes | 15% | $1,050 | $1,200 | $1,350 | $1,350 | $1,350 | $1,350 | $1,350 | $1,350 | $1,350 | $1,350 | $1,350 | $1,350 |
| Other | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
| Total Operating Expenses | $15,550 | $16,700 | $17,850 | $17,850 | $17,850 | $17,850 | $17,850 | $17,850 | $17,850 | $17,850 | $17,850 | $17,850 | |
| Profit Before Interest and Taxes | $2,450 | $4,150 | $8,285 | $8,556 | $8,830 | $9,107 | $9,386 | $9,669 | $9,954 | $10,242 | $10,533 | $10,827 | |
| EBITDA | $2,450 | $4,150 | $8,285 | $8,556 | $8,830 | $9,107 | $9,386 | $9,669 | $9,954 | $10,242 | $10,533 | $10,827 | |
| Interest Expense | $2,499 | $2,497 | $2,496 | $2,494 | $2,493 | $2,491 | $2,490 | $2,488 | $2,487 | $2,485 | $2,483 | $2,482 | |
| Taxes Incurred | ($15) | $463 | $1,621 | $1,697 | $1,774 | $1,852 | $1,931 | $2,011 | $2,091 | $2,172 | $2,254 | $2,337 | |
| Net Profit | ($34) | $1,190 | $4,168 | $4,364 | $4,563 | $4,763 | $4,966 | $5,170 | $5,377 | $5,585 | $5,796 | $6,008 | |
| Net Profit/Sales | -0.17% | 5.17% | 14.59% | 15.13% | 15.66% | 16.19% | 16.71% | 17.22% | 17.73% | 18.24% | 18.74% | 19.23% | |
| 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 | $20,000 | $23,000 | $28,563 | $28,848 | $29,137 | $29,428 | $29,723 | $30,020 | $30,320 | $30,623 | $30,929 | $31,239 | |
| Subtotal Cash from Operations | $20,000 | $23,000 | $28,563 | $28,848 | $29,137 | $29,428 | $29,723 | $30,020 | $30,320 | $30,623 | $30,929 | $31,239 | |
| 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 | $20,000 | $23,000 | $28,563 | $28,848 | $29,137 | $29,428 | $29,723 | $30,020 | $30,320 | $30,623 | $30,929 | $31,239 | |
| 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 | $7,000 | $8,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | |
| Bill Payments | $434 | $13,060 | $13,863 | $15,398 | $15,487 | $15,577 | $15,668 | $15,760 | $15,853 | $15,947 | $16,041 | $16,137 | |
| Subtotal Spent on Operations | $7,434 | $21,060 | $22,863 | $24,398 | $24,487 | $24,577 | $24,668 | $24,760 | $24,853 | $24,947 | $25,041 | $25,137 | |
| 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 | $212 | $214 | $215 | $217 | $218 | $220 | $221 | $223 | $224 | $226 | $228 | $229 | |
| 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 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Subtotal Cash Spent | $8,147 | $21,774 | $23,578 | $25,114 | $25,205 | $25,297 | $25,389 | $25,483 | $25,577 | $25,672 | $25,769 | $25,866 | |
| Net Cash Flow | $11,853 | $1,226 | $4,985 | $3,734 | $3,932 | $4,132 | $4,333 | $4,537 | $4,743 | $4,951 | $5,161 | $5,373 | |
| Cash Balance | $17,853 | $19,080 | $24,065 | $27,799 | $31,730 | $35,862 | $40,195 | $44,732 | $49,475 | $54,426 | $59,586 | $64,959 | |
| 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 | $6,000 | $17,853 | $19,080 | $24,065 | $27,799 | $31,730 | $35,862 | $40,195 | $44,732 | $49,475 | $54,426 | $59,586 | $64,959 |
| Other Current Assets | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 |
| Total Current Assets | $16,000 | $27,853 | $29,080 | $34,065 | $37,799 | $41,730 | $45,862 | $50,195 | $54,732 | $59,475 | $64,426 | $69,586 | $74,959 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $370,000 | $370,000 | $370,000 | $370,000 | $370,000 | $370,000 | $370,000 | $370,000 | $370,000 | $370,000 | $370,000 | $370,000 | $370,000 |
| Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Long-term Assets | $370,000 | $370,000 | $370,000 | $370,000 | $370,000 | $370,000 | $370,000 | $370,000 | $370,000 | $370,000 | $370,000 | $370,000 | $370,000 |
| Total Assets | $386,000 | $397,853 | $399,080 | $404,065 | $407,799 | $411,730 | $415,862 | $420,195 | $424,732 | $429,475 | $434,426 | $439,586 | $444,959 |
| 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 | $12,600 | $13,350 | $14,882 | $14,968 | $15,055 | $15,143 | $15,232 | $15,321 | $15,412 | $15,503 | $15,596 | $15,689 |
| 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 | $12,600 | $13,350 | $14,882 | $14,968 | $15,055 | $15,143 | $15,232 | $15,321 | $15,412 | $15,503 | $15,596 | $15,689 |
| Long-term Liabilities | $353,000 | $352,788 | $352,574 | $352,359 | $352,143 | $351,925 | $351,705 | $351,484 | $351,261 | $351,037 | $350,811 | $350,583 | $350,354 |
| Total Liabilities | $353,000 | $365,388 | $365,924 | $367,241 | $367,111 | $366,980 | $366,848 | $366,716 | $366,582 | $366,449 | $366,314 | $366,179 | $366,043 |
| Paid-in Capital | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 |
| Retained Earnings | ($32,000) | ($32,500) | ($33,000) | ($33,500) | ($34,000) | ($34,500) | ($35,000) | ($35,500) | ($36,000) | ($36,500) | ($37,000) | ($37,500) | ($38,000) |
| Earnings | $0 | ($34) | $1,156 | $5,324 | $9,688 | $14,251 | $19,014 | $23,980 | $29,150 | $34,526 | $40,112 | $45,907 | $51,916 |
| Total Capital | $33,000 | $32,466 | $33,156 | $36,824 | $40,688 | $44,751 | $49,014 | $53,480 | $58,150 | $63,026 | $68,112 | $73,407 | $78,916 |
| Total Liabilities and Capital | $386,000 | $397,853 | $399,080 | $404,065 | $407,799 | $411,730 | $415,862 | $420,195 | $424,732 | $429,475 | $434,426 | $439,586 | $444,959 |
| Net Worth | $33,000 | $32,466 | $33,156 | $36,824 | $40,688 | $44,751 | $49,014 | $53,480 | $58,150 | $63,026 | $68,112 | $73,407 | $78,916 |
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