Recycled Dreams
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 | |||||||||||||
| Bridal couple | 0% | $0 | $2,547 | $3,254 | $3,654 | $4,789 | $5,587 | $6,987 | $7,845 | $8,547 | $9,654 | $10,457 | $10,887 |
| Parents of bridal couple | 0% | $0 | $2,214 | $3,356 | $3,785 | $4,678 | $5,687 | $7,125 | $7,765 | $8,978 | $9,545 | $9,658 | $10,845 |
| Total Sales | $0 | $4,761 | $6,610 | $7,439 | $9,467 | $11,274 | $14,112 | $15,610 | $17,525 | $19,199 | $20,115 | $21,732 | |
| 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 | |
| Bridal couple | $0 | $637 | $814 | $914 | $1,197 | $1,397 | $1,747 | $1,961 | $2,137 | $2,414 | $2,614 | $2,722 | |
| Parents of bridal couple | $0 | $554 | $839 | $946 | $1,170 | $1,422 | $1,781 | $1,941 | $2,245 | $2,386 | $2,415 | $2,711 | |
| Subtotal Direct Cost of Sales | $0 | $1,190 | $1,653 | $1,860 | $2,367 | $2,819 | $3,528 | $3,903 | $4,381 | $4,800 | $5,029 | $5,433 | |
| 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 | ||
| Connie | 0% | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 |
| Full-time employee | 0% | $0 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 |
| Part-time employee | 0% | $0 | $960 | $960 | $960 | $960 | $960 | $960 | $960 | $960 | $960 | $960 | $960 |
| Seamstress | 0% | $0 | $800 | $900 | $1,000 | $1,100 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 |
| Full-time employee | 0% | $0 | $0 | $0 | $0 | $0 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 |
| Total People | 1 | 4 | 4 | 4 | 4 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | |
| Total Payroll | $3,500 | $7,180 | $7,280 | $7,380 | $7,480 | $9,500 | $9,500 | $9,500 | $9,500 | $9,500 | $9,500 | $9,500 | |
| 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 | $0 | $4,761 | $6,610 | $7,439 | $9,467 | $11,274 | $14,112 | $15,610 | $17,525 | $19,199 | $20,115 | $21,732 | |
| Direct Cost of Sales | $0 | $1,190 | $1,653 | $1,860 | $2,367 | $2,819 | $3,528 | $3,903 | $4,381 | $4,800 | $5,029 | $5,433 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $0 | $1,190 | $1,653 | $1,860 | $2,367 | $2,819 | $3,528 | $3,903 | $4,381 | $4,800 | $5,029 | $5,433 | |
| Gross Margin | $0 | $3,571 | $4,958 | $5,579 | $7,100 | $8,456 | $10,584 | $11,708 | $13,144 | $14,399 | $15,086 | $16,299 | |
| Gross Margin % | 0.00% | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | |
| Expenses | |||||||||||||
| Payroll | $3,500 | $7,180 | $7,280 | $7,380 | $7,480 | $9,500 | $9,500 | $9,500 | $9,500 | $9,500 | $9,500 | $9,500 | |
| Sales and Marketing and Other Expenses | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
| Depreciation | $644 | $644 | $644 | $644 | $644 | $644 | $644 | $644 | $644 | $644 | $644 | $644 | |
| Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Utilities | $100 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
| Insurance | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
| Rent | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | |
| Payroll Taxes | 15% | $525 | $1,077 | $1,092 | $1,107 | $1,122 | $1,425 | $1,425 | $1,425 | $1,425 | $1,425 | $1,425 | $1,425 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $6,419 | $10,701 | $10,816 | $10,931 | $11,046 | $13,369 | $13,369 | $13,369 | $13,369 | $13,369 | $13,369 | $13,369 | |
| Profit Before Interest and Taxes | ($6,419) | ($7,130) | ($5,859) | ($5,352) | ($3,946) | ($4,914) | ($2,785) | ($1,662) | ($225) | $1,030 | $1,717 | $2,930 | |
| EBITDA | ($5,775) | ($6,486) | ($5,215) | ($4,708) | ($3,302) | ($4,270) | ($2,141) | ($1,018) | $419 | $1,674 | $2,361 | $3,574 | |
| Interest Expense | $166 | $165 | $164 | $163 | $162 | $162 | $161 | $160 | $159 | $158 | $157 | $156 | |
| Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Net Profit | ($6,585) | ($7,295) | ($6,023) | ($5,515) | ($4,108) | ($5,075) | ($2,946) | ($1,821) | ($384) | $872 | $1,560 | $2,774 | |
| Net Profit/Sales | 0.00% | -153.23% | -91.11% | -74.14% | -43.40% | -45.02% | -20.87% | -11.67% | -2.19% | 4.54% | 7.76% | 12.76% | |
| 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 | $4,761 | $6,610 | $7,439 | $9,467 | $11,274 | $14,112 | $15,610 | $17,525 | $19,199 | $20,115 | $21,732 | |
| Subtotal Cash from Operations | $0 | $4,761 | $6,610 | $7,439 | $9,467 | $11,274 | $14,112 | $15,610 | $17,525 | $19,199 | $20,115 | $21,732 | |
| 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 | $4,761 | $6,610 | $7,439 | $9,467 | $11,274 | $14,112 | $15,610 | $17,525 | $19,199 | $20,115 | $21,732 | |
| 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 | $3,500 | $7,180 | $7,280 | $7,380 | $7,480 | $9,500 | $9,500 | $9,500 | $9,500 | $9,500 | $9,500 | $9,500 | |
| Bill Payments | $81 | $2,501 | $4,248 | $4,716 | $4,947 | $5,476 | $6,229 | $6,926 | $7,303 | $7,779 | $8,191 | $8,424 | |
| Subtotal Spent on Operations | $3,581 | $9,681 | $11,528 | $12,096 | $12,427 | $14,976 | $15,729 | $16,426 | $16,803 | $17,279 | $17,691 | $17,924 | |
| 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 | $98 | $99 | $100 | $101 | $102 | $103 | $103 | $104 | $105 | $106 | $107 | $108 | |
| 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 | $3,680 | $9,780 | $11,628 | $12,197 | $12,529 | $15,079 | $15,832 | $16,531 | $16,909 | $17,385 | $17,797 | $18,032 | |
| Net Cash Flow | ($3,680) | ($5,019) | ($5,018) | ($4,758) | ($3,062) | ($3,805) | ($1,720) | ($921) | $616 | $1,814 | $2,318 | $3,700 | |
| Cash Balance | $27,620 | $22,601 | $17,583 | $12,825 | $9,763 | $5,958 | $4,238 | $3,317 | $3,934 | $5,747 | $8,065 | $11,764 | |
| 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 | $31,300 | $27,620 | $22,601 | $17,583 | $12,825 | $9,763 | $5,958 | $4,238 | $3,317 | $3,934 | $5,747 | $8,065 | $11,764 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $31,300 | $27,620 | $22,601 | $17,583 | $12,825 | $9,763 | $5,958 | $4,238 | $3,317 | $3,934 | $5,747 | $8,065 | $11,764 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 |
| Accumulated Depreciation | $0 | $644 | $1,288 | $1,932 | $2,576 | $3,220 | $3,864 | $4,508 | $5,152 | $5,796 | $6,440 | $7,084 | $7,728 |
| Total Long-term Assets | $18,000 | $17,356 | $16,712 | $16,068 | $15,424 | $14,780 | $14,136 | $13,492 | $12,848 | $12,204 | $11,560 | $10,916 | $10,272 |
| Total Assets | $49,300 | $44,976 | $39,313 | $33,651 | $28,249 | $24,543 | $20,094 | $17,730 | $16,165 | $16,138 | $17,307 | $18,981 | $22,036 |
| 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 | $2,359 | $4,091 | $4,552 | $4,766 | $5,270 | $5,998 | $6,683 | $7,044 | $7,506 | $7,910 | $8,131 | $8,521 |
| Current Borrowing | $0 | ($98) | ($198) | ($298) | ($399) | ($501) | ($603) | ($707) | ($811) | ($916) | ($1,022) | ($1,129) | ($1,237) |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $0 | $2,261 | $3,893 | $4,254 | $4,367 | $4,769 | $5,395 | $5,977 | $6,234 | $6,590 | $6,888 | $7,001 | $7,283 |
| Long-term Liabilities | $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 |
| Total Liabilities | $20,000 | $22,261 | $23,893 | $24,254 | $24,367 | $24,769 | $25,395 | $25,977 | $26,234 | $26,590 | $26,888 | $27,001 | $27,283 |
| Paid-in Capital | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 |
| Retained Earnings | ($700) | ($700) | ($700) | ($700) | ($700) | ($700) | ($700) | ($700) | ($700) | ($700) | ($700) | ($700) | ($700) |
| Earnings | $0 | ($6,585) | ($13,880) | ($19,903) | ($25,418) | ($29,526) | ($34,601) | ($37,547) | ($39,368) | ($39,753) | ($38,881) | ($37,321) | ($34,547) |
| Total Capital | $29,300 | $22,715 | $15,420 | $9,397 | $3,882 | ($226) | ($5,301) | ($8,247) | ($10,068) | ($10,453) | ($9,581) | ($8,021) | ($5,247) |
| Total Liabilities and Capital | $49,300 | $44,976 | $39,313 | $33,651 | $28,249 | $24,543 | $20,094 | $17,730 | $16,165 | $16,138 | $17,307 | $18,981 | $22,036 |
| Net Worth | $29,300 | $22,715 | $15,420 | $9,397 | $3,882 | ($226) | ($5,301) | ($8,247) | ($10,068) | ($10,453) | ($9,581) | ($8,021) | ($5,247) |
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