Granite Industries, Inc.
Appendix
| Sales Forecast | |||||||||||||
| Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | ||
| Sales | |||||||||||||
| Row 1 | 0% | $69,525 | $99,100 | $125,175 | $146,450 | $164,425 | $188,600 | $201,650 | $214,600 | $222,150 | $242,400 | $264,400 | $278,900 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Sales | $69,525 | $99,100 | $125,175 | $146,450 | $164,425 | $188,600 | $201,650 | $214,600 | $222,150 | $242,400 | $264,400 | $278,900 | |
| Direct Cost of Sales | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | |
| Row 1 | $29,200 | $44,595 | $52,573 | $65,902 | $75,635 | $90,528 | $96,792 | $92,278 | $95,524 | $104,232 | $111,048 | $117,138 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $29,200 | $44,595 | $52,573 | $65,902 | $75,635 | $90,528 | $96,792 | $92,278 | $95,524 | $104,232 | $111,048 | $117,138 | |
| Personnel Plan | |||||||||||||
| Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | ||
| Manufacturing | 0% | $13,282 | $13,282 | $13,282 | $15,760 | $18,920 | $18,920 | $18,920 | $19,500 | $19,500 | $19,500 | $21,580 | $21,580 |
| Sales | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $15,000 |
| Total People | 6 | 6 | 6 | 6 | 6 | 6 | 6 | 9 | 9 | 9 | 9 | 11 | |
| Total Payroll | $13,282 | $13,282 | $13,282 | $15,760 | $18,920 | $18,920 | $18,920 | $19,500 | $19,500 | $19,500 | $21,580 | $36,580 | |
| General Assumptions | |||||||||||||
| Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | ||
| 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 | 25.00% | 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 | |||||||||||||
| Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | ||
| Sales | $69,525 | $99,100 | $125,175 | $146,450 | $164,425 | $188,600 | $201,650 | $214,600 | $222,150 | $242,400 | $264,400 | $278,900 | |
| Direct Cost of Sales | $29,200 | $44,595 | $52,573 | $65,902 | $75,635 | $90,528 | $96,792 | $92,278 | $95,524 | $104,232 | $111,048 | $117,138 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $29,200 | $44,595 | $52,573 | $65,902 | $75,635 | $90,528 | $96,792 | $92,278 | $95,524 | $104,232 | $111,048 | $117,138 | |
| Gross Margin | $40,325 | $54,505 | $72,602 | $80,548 | $88,790 | $98,072 | $104,858 | $122,322 | $126,626 | $138,168 | $153,352 | $161,762 | |
| Gross Margin % | 58.00% | 55.00% | 58.00% | 55.00% | 54.00% | 52.00% | 52.00% | 57.00% | 57.00% | 57.00% | 58.00% | 58.00% | |
| Expenses | |||||||||||||
| Payroll | $13,282 | $13,282 | $13,282 | $15,760 | $18,920 | $18,920 | $18,920 | $19,500 | $19,500 | $19,500 | $21,580 | $36,580 | |
| Sales and Marketing and Other Expenses | $1,400 | $1,400 | $2,000 | $2,500 | $4,000 | $1,500 | $2,000 | $1,500 | $27,000 | $27,500 | $27,000 | $7,000 | |
| Depreciation | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | |
| Leased Equipment | $931 | $931 | $931 | $931 | $931 | $931 | $931 | $931 | $931 | $931 | $931 | $931 | |
| 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 | $285 | $285 | $285 | $285 | $285 | $285 | $285 | $310 | $310 | $310 | $310 | $310 | |
| Rent | $2,450 | $2,450 | $2,450 | $2,450 | $2,450 | $2,450 | $2,450 | $2,450 | $2,450 | $2,450 | $2,450 | $2,450 | |
| Payroll Taxes | 15% | $1,992 | $1,992 | $1,992 | $2,364 | $2,838 | $2,838 | $2,838 | $2,925 | $2,925 | $2,925 | $3,237 | $5,487 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $24,340 | $24,340 | $24,940 | $28,290 | $33,424 | $30,924 | $31,424 | $31,616 | $57,116 | $57,616 | $59,508 | $56,758 | |
| Profit Before Interest and Taxes | $15,985 | $30,165 | $47,662 | $52,258 | $55,366 | $67,148 | $73,434 | $90,706 | $69,510 | $80,552 | $93,844 | $105,004 | |
| EBITDA | $18,985 | $33,165 | $50,662 | $55,258 | $58,366 | $70,148 | $76,434 | $93,706 | $72,510 | $83,552 | $96,844 | $108,004 | |
| Interest Expense | $2,785 | $2,805 | $2,825 | $2,845 | $2,865 | $2,885 | $2,905 | $2,925 | $2,945 | $2,965 | $2,985 | $3,005 | |
| Taxes Incurred | $3,300 | $6,840 | $11,209 | $12,353 | $13,125 | $16,066 | $17,632 | $21,945 | $16,641 | $19,397 | $22,715 | $25,500 | |
| Net Profit | $9,900 | $20,520 | $33,627 | $37,060 | $39,376 | $48,197 | $52,897 | $65,836 | $49,924 | $58,190 | $68,144 | $76,500 | |
| Net Profit/Sales | 14.24% | 20.71% | 26.86% | 25.31% | 23.95% | 25.56% | 26.23% | 30.68% | 22.47% | 24.01% | 25.77% | 27.43% | |
| Pro Forma Cash Flow | |||||||||||||
| Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | ||
| Cash Received | |||||||||||||
| Cash from Operations | |||||||||||||
| Cash Sales | $6,953 | $9,910 | $12,518 | $14,645 | $16,443 | $18,860 | $20,165 | $21,460 | $22,215 | $24,240 | $26,440 | $27,890 | |
| Cash from Receivables | $7,750 | $9,836 | $63,460 | $89,972 | $113,296 | $132,344 | $148,708 | $170,132 | $181,874 | $193,367 | $200,543 | $218,820 | |
| Subtotal Cash from Operations | $14,703 | $19,746 | $75,977 | $104,617 | $129,738 | $151,204 | $168,873 | $191,592 | $204,089 | $217,607 | $226,983 | $246,710 | |
| 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) | $3,000 | $2,500 | $2,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| New Long-term Liabilities | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | |
| 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 | $75,000 | $0 | $0 | $300,000 | $0 | $0 | $0 | $500,000 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Received | $97,703 | $27,246 | $82,977 | $409,617 | $134,738 | $156,204 | $173,873 | $696,592 | $209,089 | $222,607 | $231,983 | $251,710 | |
| Expenditures | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | |
| Expenditures from Operations | |||||||||||||
| Cash Spending | $13,282 | $13,282 | $13,282 | $15,760 | $18,920 | $18,920 | $18,920 | $19,500 | $19,500 | $19,500 | $21,580 | $36,580 | |
| Bill Payments | $28,399 | $57,345 | $79,393 | $84,750 | $105,577 | $114,537 | $134,827 | $133,309 | $122,365 | $153,896 | $171,551 | $178,851 | |
| Subtotal Spent on Operations | $41,681 | $70,627 | $92,675 | $100,510 | $124,497 | $133,457 | $153,747 | $152,809 | $141,865 | $173,396 | $193,131 | $215,431 | |
| 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 | $607 | $607 | $607 | $607 | $607 | $607 | $607 | $607 | $607 | $607 | $607 | $614 | |
| Other Liabilities Principal Repayment | $0 | $0 | $0 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
| Long-term Liabilities Principal Repayment | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
| Purchase Other Current Assets | $0 | $0 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $0 | |
| Purchase Long-term Assets | $0 | $0 | $0 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $0 | $0 | $0 | $0 | |
| Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Spent | $44,288 | $73,234 | $100,282 | $119,117 | $143,104 | $152,064 | $172,354 | $171,416 | $150,472 | $182,003 | $201,738 | $219,045 | |
| Net Cash Flow | $53,414 | ($45,988) | ($17,305) | $290,500 | ($8,366) | $4,141 | $1,519 | $525,175 | $58,616 | $40,603 | $30,244 | $32,665 | |
| Cash Balance | $65,414 | $19,426 | $2,121 | $292,621 | $284,256 | $288,396 | $289,915 | $815,090 | $873,706 | $914,309 | $944,554 | $977,218 | |
| Pro Forma Balance Sheet | |||||||||||||
| Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | ||
| Assets | Starting Balances | ||||||||||||
| Current Assets | |||||||||||||
| Cash | $12,000 | $65,414 | $19,426 | $2,121 | $292,621 | $284,256 | $288,396 | $289,915 | $815,090 | $873,706 | $914,309 | $944,554 | $977,218 |
| Accounts Receivable | $15,500 | $70,323 | $149,677 | $198,875 | $240,707 | $275,394 | $312,790 | $345,567 | $368,576 | $386,637 | $411,431 | $448,848 | $481,038 |
| Inventory | $18,873 | $32,120 | $49,055 | $57,830 | $72,492 | $83,199 | $99,581 | $106,471 | $101,506 | $105,076 | $114,655 | $122,153 | $128,852 |
| Other Current Assets | $0 | $0 | $0 | $5,000 | $10,000 | $15,000 | $20,000 | $25,000 | $30,000 | $35,000 | $40,000 | $45,000 | $45,000 |
| Total Current Assets | $46,373 | $167,857 | $218,157 | $263,826 | $615,821 | $657,848 | $720,767 | $766,953 | $1,315,171 | $1,400,420 | $1,480,395 | $1,560,554 | $1,632,108 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $149,118 | $149,118 | $149,118 | $149,118 | $159,118 | $169,118 | $179,118 | $189,118 | $199,118 | $199,118 | $199,118 | $199,118 | $199,118 |
| Accumulated Depreciation | $23,605 | $26,605 | $29,605 | $32,605 | $35,605 | $38,605 | $41,605 | $44,605 | $47,605 | $50,605 | $53,605 | $56,605 | $59,605 |
| Total Long-term Assets | $125,513 | $122,513 | $119,513 | $116,513 | $123,513 | $130,513 | $137,513 | $144,513 | $151,513 | $148,513 | $145,513 | $142,513 | $139,513 |
| Total Assets | $171,886 | $290,370 | $337,670 | $380,339 | $739,334 | $788,361 | $858,280 | $911,466 | $1,466,684 | $1,548,933 | $1,625,908 | $1,703,067 | $1,771,621 |
| Liabilities and Capital | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | |
| Current Liabilities | |||||||||||||
| Accounts Payable | $26,513 | $54,704 | $76,592 | $81,240 | $101,782 | $110,041 | $130,370 | $129,266 | $117,255 | $148,187 | $165,579 | $173,201 | $163,869 |
| Current Borrowing | $7,291 | $6,684 | $6,077 | $5,470 | $4,863 | $4,256 | $3,649 | $3,042 | $2,435 | $1,828 | $1,221 | $614 | $0 |
| Other Current Liabilities | $43,503 | $46,503 | $49,003 | $51,003 | $50,003 | $49,003 | $48,003 | $47,003 | $46,003 | $45,003 | $44,003 | $43,003 | $42,003 |
| Subtotal Current Liabilities | $77,307 | $107,891 | $131,672 | $137,713 | $156,648 | $163,300 | $182,022 | $179,311 | $165,693 | $195,018 | $210,803 | $216,818 | $205,872 |
| Long-term Liabilities | $324,550 | $327,550 | $330,550 | $333,550 | $336,550 | $339,550 | $342,550 | $345,550 | $348,550 | $351,550 | $354,550 | $357,550 | $360,550 |
| Total Liabilities | $401,857 | $435,441 | $462,222 | $471,263 | $493,198 | $502,850 | $524,572 | $524,861 | $514,243 | $546,568 | $565,353 | $574,368 | $566,422 |
| Paid-in Capital | $814,820 | $889,820 | $889,820 | $889,820 | $1,189,820 | $1,189,820 | $1,189,820 | $1,189,820 | $1,689,820 | $1,689,820 | $1,689,820 | $1,689,820 | $1,689,820 |
| Retained Earnings | ($877,599) | ($1,044,791) | ($1,044,791) | ($1,044,791) | ($1,044,791) | ($1,044,791) | ($1,044,791) | ($1,044,791) | ($1,044,791) | ($1,044,791) | ($1,044,791) | ($1,044,791) | ($1,044,791) |
| Earnings | ($167,192) | $9,900 | $30,419 | $64,047 | $101,106 | $140,482 | $188,679 | $241,576 | $307,412 | $357,336 | $415,526 | $483,671 | $560,170 |
| Total Capital | ($229,971) | ($145,071) | ($124,552) | ($90,924) | $246,135 | $285,511 | $333,708 | $386,605 | $952,441 | $1,002,365 | $1,060,555 | $1,128,700 | $1,205,199 |
| Total Liabilities and Capital | $171,886 | $290,370 | $337,670 | $380,339 | $739,334 | $788,361 | $858,280 | $911,466 | $1,466,684 | $1,548,933 | $1,625,908 | $1,703,067 | $1,771,621 |
| Net Worth | ($229,971) | ($145,071) | ($124,552) | ($90,924) | $246,135 | $285,511 | $333,708 | $386,605 | $952,441 | $1,002,365 | $1,060,555 | $1,128,700 | $1,205,199 |
By 
