Betcher Chiropractic
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 treatment | 0% | $0 | $0 | $1,100 | $1,325 | $1,656 | $1,998 | $2,254 | $2,626 | $2,998 | $3,232 | $3,698 | $4,545 |
| Initial examination and diagnosis | 0% | $0 | $0 | $484 | $583 | $729 | $879 | $992 | $1,155 | $1,319 | $1,422 | $1,627 | $2,000 |
| Total Sales | $0 | $0 | $1,584 | $1,908 | $2,385 | $2,877 | $3,246 | $3,781 | $4,317 | $4,654 | $5,325 | $6,545 | |
| 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 treatment | $0 | $0 | $22 | $27 | $33 | $40 | $45 | $53 | $60 | $65 | $74 | $91 | |
| Initial examination and diagnosis | $0 | $0 | $22 | $27 | $33 | $40 | $45 | $53 | $60 | $65 | $74 | $91 | |
| Subtotal Direct Cost of Sales | $0 | $0 | $44 | $53 | $66 | $80 | $90 | $105 | $120 | $129 | $148 | $182 | |
| 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 | ||
| Dr. Betcher | 0% | $0 | $2,000 | $2,000 | $2,000 | $2,300 | $2,300 | $2,400 | $2,500 | $2,500 | $2,700 | $2,800 | $3,000 |
| Office Assistant | 0% | $0 | $0 | $0 | $0 | $800 | $800 | $900 | $900 | $1,000 | $1,200 | $1,200 | $1,200 |
| Total People | 0 | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | |
| Total Payroll | $0 | $2,000 | $2,000 | $2,000 | $3,100 | $3,100 | $3,300 | $3,400 | $3,500 | $3,900 | $4,000 | $4,200 | |
| 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 | $0 | $1,584 | $1,908 | $2,385 | $2,877 | $3,246 | $3,781 | $4,317 | $4,654 | $5,325 | $6,545 | |
| Direct Cost of Sales | $0 | $0 | $44 | $53 | $66 | $80 | $90 | $105 | $120 | $129 | $148 | $182 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $0 | $0 | $44 | $53 | $66 | $80 | $90 | $105 | $120 | $129 | $148 | $182 | |
| Gross Margin | $0 | $0 | $1,540 | $1,855 | $2,318 | $2,797 | $3,156 | $3,676 | $4,197 | $4,525 | $5,177 | $6,363 | |
| Gross Margin % | 0.00% | 0.00% | 97.22% | 97.22% | 97.22% | 97.22% | 97.22% | 97.22% | 97.22% | 97.22% | 97.22% | 97.22% | |
| Expenses | |||||||||||||
| Payroll | $0 | $2,000 | $2,000 | $2,000 | $3,100 | $3,100 | $3,300 | $3,400 | $3,500 | $3,900 | $4,000 | $4,200 | |
| Sales and Marketing and Other Expenses | $0 | $320 | $320 | $320 | $320 | $320 | $320 | $320 | $320 | $320 | $320 | $320 | |
| Depreciation | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
| Utilities (all) | $0 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
| Insurance – malpractice | $0 | $110 | $110 | $110 | $110 | $110 | $110 | $110 | $110 | $110 | $110 | $110 | |
| Insurance – workers comp | $0 | $20 | $20 | $20 | $20 | $20 | $20 | $20 | $20 | $20 | $20 | $20 | |
| Insurance – liability | $0 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Rent | 15% | $0 | $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% | $0 | $300 | $300 | $300 | $465 | $465 | $495 | $510 | $525 | $585 | $600 | $630 |
| Total Operating Expenses | $250 | $4,700 | $4,700 | $4,700 | $5,965 | $5,965 | $6,195 | $6,310 | $6,425 | $6,885 | $7,000 | $7,230 | |
| Profit Before Interest and Taxes | ($250) | ($4,700) | ($3,160) | ($2,845) | ($3,647) | ($3,168) | ($3,039) | ($2,634) | ($2,228) | ($2,360) | ($1,823) | ($867) | |
| EBITDA | $0 | ($4,450) | ($2,910) | ($2,595) | ($3,397) | ($2,918) | ($2,789) | ($2,384) | ($1,978) | ($2,110) | ($1,573) | ($617) | |
| Interest Expense | $165 | $162 | $160 | $158 | $156 | $154 | $152 | $150 | $148 | $146 | $143 | $141 | |
| Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Net Profit | ($415) | ($4,862) | ($3,320) | ($3,003) | ($3,803) | ($3,322) | ($3,191) | ($2,783) | ($2,375) | ($2,506) | ($1,966) | ($1,008) | |
| Net Profit/Sales | 0.00% | 0.00% | -209.62% | -157.40% | -159.47% | -115.46% | -98.32% | -73.61% | -55.02% | -53.84% | -36.92% | -15.41% | |
| 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 | $0 | $396 | $477 | $596 | $719 | $811 | $945 | $1,079 | $1,164 | $1,331 | $1,636 | |
| Cash from Receivables | $0 | $0 | $0 | $40 | $1,196 | $1,443 | $1,801 | $2,167 | $2,448 | $2,849 | $3,246 | $3,507 | |
| Subtotal Cash from Operations | $0 | $0 | $396 | $517 | $1,792 | $2,162 | $2,612 | $3,112 | $3,527 | $4,013 | $4,578 | $5,144 | |
| 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 | $0 | $396 | $517 | $1,792 | $2,162 | $2,612 | $3,112 | $3,527 | $4,013 | $4,578 | $5,144 | |
| 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 | $0 | $2,000 | $2,000 | $2,000 | $3,100 | $3,100 | $3,300 | $3,400 | $3,500 | $3,900 | $4,000 | $4,200 | |
| Bill Payments | $5 | $246 | $2,614 | $2,655 | $2,667 | $2,838 | $2,850 | $2,888 | $2,916 | $2,945 | $3,011 | $3,043 | |
| Subtotal Spent on Operations | $5 | $2,246 | $4,614 | $4,655 | $5,767 | $5,938 | $6,150 | $6,288 | $6,416 | $6,845 | $7,011 | $7,243 | |
| 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 | $253 | $253 | $253 | $253 | $253 | $253 | $253 | $253 | $253 | $253 | $253 | $253 | |
| 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 | $258 | $2,499 | $4,867 | $4,908 | $6,020 | $6,191 | $6,403 | $6,541 | $6,669 | $7,098 | $7,264 | $7,496 | |
| Net Cash Flow | ($258) | ($2,499) | ($4,471) | ($4,391) | ($4,228) | ($4,029) | ($3,791) | ($3,429) | ($3,142) | ($3,085) | ($2,686) | ($2,353) | |
| Cash Balance | $40,742 | $38,242 | $33,772 | $29,381 | $25,153 | $21,124 | $17,333 | $13,905 | $10,763 | $7,678 | $4,992 | $2,639 | |
| 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 | $41,000 | $40,742 | $38,242 | $33,772 | $29,381 | $25,153 | $21,124 | $17,333 | $13,905 | $10,763 | $7,678 | $4,992 | $2,639 |
| Accounts Receivable | $0 | $0 | $0 | $1,188 | $2,579 | $3,172 | $3,887 | $4,520 | $5,189 | $5,979 | $6,620 | $7,368 | $8,769 |
| Other Current Assets | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
| Total Current Assets | $43,500 | $43,242 | $40,742 | $37,460 | $34,460 | $30,824 | $27,511 | $24,353 | $21,594 | $19,242 | $16,798 | $14,860 | $13,908 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 |
| Accumulated Depreciation | $0 | $250 | $500 | $750 | $1,000 | $1,250 | $1,500 | $1,750 | $2,000 | $2,250 | $2,500 | $2,750 | $3,000 |
| Total Long-term Assets | $15,000 | $14,750 | $14,500 | $14,250 | $14,000 | $13,750 | $13,500 | $13,250 | $13,000 | $12,750 | $12,500 | $12,250 | $12,000 |
| Total Assets | $58,500 | $57,992 | $55,242 | $51,710 | $48,460 | $44,574 | $41,011 | $37,603 | $34,594 | $31,992 | $29,298 | $27,110 | $25,908 |
| 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 | $159 | $2,525 | $2,566 | $2,573 | $2,743 | $2,754 | $2,791 | $2,818 | $2,845 | $2,910 | $2,940 | $3,000 |
| 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 | $159 | $2,525 | $2,566 | $2,573 | $2,743 | $2,754 | $2,791 | $2,818 | $2,845 | $2,910 | $2,940 | $3,000 |
| Long-term Liabilities | $20,000 | $19,747 | $19,494 | $19,241 | $18,988 | $18,735 | $18,482 | $18,229 | $17,976 | $17,723 | $17,470 | $17,217 | $16,964 |
| Total Liabilities | $20,000 | $19,906 | $22,019 | $21,807 | $21,561 | $21,478 | $21,236 | $21,020 | $20,794 | $20,568 | $20,380 | $20,157 | $19,964 |
| Paid-in Capital | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 |
| Retained Earnings | ($21,500) | ($21,500) | ($21,500) | ($21,500) | ($21,500) | ($21,500) | ($21,500) | ($21,500) | ($21,500) | ($21,500) | ($21,500) | ($21,500) | ($21,500) |
| Earnings | $0 | ($415) | ($5,277) | ($8,597) | ($11,601) | ($15,403) | ($18,725) | ($21,916) | ($24,700) | ($27,075) | ($29,581) | ($31,547) | ($32,556) |
| Total Capital | $38,500 | $38,085 | $33,223 | $29,903 | $26,899 | $23,097 | $19,775 | $16,584 | $13,800 | $11,425 | $8,919 | $6,953 | $5,944 |
| Total Liabilities and Capital | $58,500 | $57,992 | $55,242 | $51,710 | $48,460 | $44,574 | $41,011 | $37,603 | $34,594 | $31,992 | $29,298 | $27,110 | $25,908 |
| Net Worth | $38,500 | $38,085 | $33,223 | $29,903 | $26,899 | $23,097 | $19,775 | $16,584 | $13,800 | $11,425 | $8,919 | $6,953 | $5,944 |
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