BikeArt
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 | |||||||||||||
| Industrial art collectors | 0% | $0 | $1,245 | $1,854 | $2,354 | $2,987 | $4,254 | $5,385 | $6,458 | $7,548 | $8,254 | $8,745 | $9,145 |
| Bicycling enthusiasts | 0% | $0 | $2,245 | $3,258 | $4,214 | $5,214 | $7,245 | $8,457 | $9,365 | $10,255 | $11,547 | $12,687 | $13,044 |
| Total Sales | $0 | $3,490 | $5,112 | $6,568 | $8,201 | $11,499 | $13,842 | $15,823 | $17,803 | $19,801 | $21,432 | $22,189 | |
| 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 | |
| Industrial art collectors | $0 | $623 | $927 | $1,177 | $1,494 | $2,127 | $2,693 | $3,229 | $3,774 | $4,127 | $4,373 | $4,573 | |
| Bicycling enthusiasts | $0 | $1,123 | $1,629 | $2,107 | $2,607 | $3,623 | $4,229 | $4,683 | $5,128 | $5,774 | $6,344 | $6,522 | |
| Subtotal Direct Cost of Sales | $0 | $1,745 | $2,556 | $3,284 | $4,101 | $5,750 | $6,921 | $7,912 | $8,902 | $9,901 | $10,716 | $11,095 | |
| 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 | ||
| Steve | 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 |
| Part-time employee | 0% | $200 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 |
| Part-time employee | 0% | $200 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 |
| Part-time employee | 0% | $200 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 |
| Total People | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | |
| Total Payroll | $3,600 | $5,700 | $5,700 | $5,700 | $5,700 | $5,700 | $5,700 | $5,700 | $5,700 | $5,700 | $5,700 | $5,700 | |
| 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% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
| 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 | $0 | $3,490 | $5,112 | $6,568 | $8,201 | $11,499 | $13,842 | $15,823 | $17,803 | $19,801 | $21,432 | $22,189 | |
| Direct Cost of Sales | $0 | $1,745 | $2,556 | $3,284 | $4,101 | $5,750 | $6,921 | $7,912 | $8,902 | $9,901 | $10,716 | $11,095 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $0 | $1,745 | $2,556 | $3,284 | $4,101 | $5,750 | $6,921 | $7,912 | $8,902 | $9,901 | $10,716 | $11,095 | |
| Gross Margin | $0 | $1,745 | $2,556 | $3,284 | $4,101 | $5,750 | $6,921 | $7,912 | $8,902 | $9,901 | $10,716 | $11,095 | |
| Gross Margin % | 0.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | |
| Expenses | |||||||||||||
| Payroll | $3,600 | $5,700 | $5,700 | $5,700 | $5,700 | $5,700 | $5,700 | $5,700 | $5,700 | $5,700 | $5,700 | $5,700 | |
| Sales and Marketing and Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Depreciation | $52 | $52 | $52 | $52 | $52 | $52 | $52 | $52 | $52 | $52 | $52 | $52 | |
| Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Utilities | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
| Insurance | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
| Rent | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
| Payroll Taxes | 15% | $540 | $855 | $855 | $855 | $855 | $855 | $855 | $855 | $855 | $855 | $855 | $855 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $5,392 | $7,807 | $7,807 | $7,807 | $7,807 | $7,807 | $7,807 | $7,807 | $7,807 | $7,807 | $7,807 | $7,807 | |
| Profit Before Interest and Taxes | ($5,392) | ($6,062) | ($5,251) | ($4,523) | ($3,707) | ($2,058) | ($886) | $105 | $1,095 | $2,094 | $2,909 | $3,288 | |
| EBITDA | ($5,340) | ($6,010) | ($5,199) | ($4,471) | ($3,655) | ($2,006) | ($834) | $157 | $1,147 | $2,146 | $2,961 | $3,340 | |
| Interest Expense | $163 | $160 | $157 | $154 | $151 | $147 | $144 | $141 | $137 | $134 | $130 | $127 | |
| Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Net Profit | ($5,555) | ($6,222) | ($5,408) | ($4,677) | ($3,857) | ($2,205) | ($1,030) | ($36) | $957 | $1,960 | $2,779 | $3,161 | |
| Net Profit/Sales | 0.00% | -178.29% | -105.79% | -71.21% | -47.03% | -19.17% | -7.44% | -0.23% | 5.38% | 9.90% | 12.97% | 14.24% | |
| 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 | $0 | $3,490 | $5,112 | $6,568 | $8,201 | $11,499 | $13,842 | $15,823 | $17,803 | $19,801 | $21,432 | $22,189 | |
| Subtotal Cash from Operations | $0 | $3,490 | $5,112 | $6,568 | $8,201 | $11,499 | $13,842 | $15,823 | $17,803 | $19,801 | $21,432 | $22,189 | |
| 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 | $0 | $3,490 | $5,112 | $6,568 | $8,201 | $11,499 | $13,842 | $15,823 | $17,803 | $19,801 | $21,432 | $22,189 | |
| 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 | $3,600 | $5,700 | $5,700 | $5,700 | $5,700 | $5,700 | $5,700 | $5,700 | $5,700 | $5,700 | $5,700 | $5,700 | |
| Bill Payments | $63 | $2,036 | $5,872 | $5,681 | $6,324 | $7,290 | $9,787 | $10,435 | $11,229 | $12,216 | $13,208 | $13,795 | |
| Subtotal Spent on Operations | $3,663 | $7,736 | $11,572 | $11,381 | $12,024 | $12,990 | $15,487 | $16,135 | $16,929 | $17,916 | $18,908 | $19,495 | |
| 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 | $381 | $384 | $387 | $390 | $393 | $397 | $400 | $403 | $407 | $410 | $414 | $417 | |
| 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 | $4,044 | $8,120 | $11,959 | $11,771 | $12,417 | $13,386 | $15,887 | $16,538 | $17,336 | $18,326 | $19,322 | $19,912 | |
| Net Cash Flow | ($4,044) | ($4,630) | ($6,847) | ($5,203) | ($4,216) | ($1,887) | ($2,045) | ($715) | $467 | $1,475 | $2,110 | $2,277 | |
| Cash Balance | $37,556 | $32,926 | $26,079 | $20,875 | $16,659 | $14,772 | $12,727 | $12,011 | $12,478 | $13,952 | $16,062 | $18,339 | |
| 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 | $41,600 | $37,556 | $32,926 | $26,079 | $20,875 | $16,659 | $14,772 | $12,727 | $12,011 | $12,478 | $13,952 | $16,062 | $18,339 |
| Inventory | $0 | $0 | $1,920 | $2,812 | $3,612 | $4,511 | $6,324 | $7,613 | $8,703 | $9,792 | $10,891 | $11,788 | $12,204 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $41,600 | $37,556 | $34,846 | $28,891 | $24,488 | $21,170 | $21,096 | $20,340 | $20,714 | $22,270 | $24,843 | $27,850 | $30,543 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $3,100 | $3,100 | $3,100 | $3,100 | $3,100 | $3,100 | $3,100 | $3,100 | $3,100 | $3,100 | $3,100 | $3,100 | $3,100 |
| Accumulated Depreciation | $0 | $52 | $104 | $156 | $208 | $260 | $312 | $364 | $416 | $468 | $520 | $572 | $624 |
| Total Long-term Assets | $3,100 | $3,048 | $2,996 | $2,944 | $2,892 | $2,840 | $2,788 | $2,736 | $2,684 | $2,632 | $2,580 | $2,528 | $2,476 |
| Total Assets | $44,700 | $40,604 | $37,842 | $31,835 | $27,380 | $24,010 | $23,884 | $23,076 | $23,398 | $24,902 | $27,423 | $30,378 | $33,019 |
| 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 | $1,840 | $5,684 | $5,472 | $6,084 | $6,964 | $9,440 | $10,062 | $10,823 | $11,777 | $12,749 | $13,338 | $13,236 |
| 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 | $1,840 | $5,684 | $5,472 | $6,084 | $6,964 | $9,440 | $10,062 | $10,823 | $11,777 | $12,749 | $13,338 | $13,236 |
| Long-term Liabilities | $20,000 | $19,619 | $19,236 | $18,849 | $18,459 | $18,065 | $17,668 | $17,268 | $16,865 | $16,458 | $16,048 | $15,634 | $15,217 |
| Total Liabilities | $20,000 | $21,460 | $24,920 | $24,320 | $24,543 | $25,029 | $27,109 | $27,330 | $27,688 | $28,235 | $28,796 | $28,972 | $28,453 |
| Paid-in Capital | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 |
| Retained Earnings | ($300) | ($300) | ($300) | ($300) | ($300) | ($300) | ($300) | ($300) | ($300) | ($300) | ($300) | ($300) | ($300) |
| Earnings | $0 | ($5,555) | ($11,778) | ($17,186) | ($21,863) | ($25,720) | ($27,924) | ($28,954) | ($28,990) | ($28,033) | ($26,073) | ($23,295) | ($20,134) |
| Total Capital | $24,700 | $19,145 | $12,922 | $7,514 | $2,837 | ($1,020) | ($3,224) | ($4,254) | ($4,290) | ($3,333) | ($1,373) | $1,405 | $4,566 |
| Total Liabilities and Capital | $44,700 | $40,604 | $37,842 | $31,835 | $27,380 | $24,010 | $23,884 | $23,076 | $23,398 | $24,902 | $27,423 | $30,378 | $33,019 |
| Net Worth | $24,700 | $19,145 | $12,922 | $7,514 | $2,837 | ($1,020) | ($3,224) | ($4,254) | ($4,290) | ($3,333) | ($1,373) | $1,405 | $4,566 |
By 
