Flash Commercial Photography
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 | |||||||||||||
| Photo Shoots | $15,383 | $15,691 | $16,005 | $16,325 | $16,652 | $16,985 | $17,325 | $17,672 | $18,025 | $18,386 | $18,754 | $19,129 | |
| Photo Editing | $3,683 | $3,831 | $3,984 | $4,143 | $4,309 | $4,481 | $4,661 | $4,847 | $5,041 | $5,243 | $5,452 | $5,670 | |
| Printing and Framing | $1,739 | $1,774 | $1,809 | $1,845 | $1,882 | $1,920 | $1,958 | $1,997 | $2,037 | $2,078 | $2,120 | $2,162 | |
| Studio Rental | $1,023 | $5,027 | $6,163 | $6,651 | $7,075 | $7,162 | $7,436 | $7,494 | $7,162 | $6,344 | $5,705 | $4,396 | |
| Total Sales | $21,828 | $26,323 | $27,961 | $28,964 | $29,918 | $30,548 | $31,380 | $32,010 | $32,265 | $32,051 | $32,031 | $31,357 | |
| 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 | |
| Printing and Framing Cost | $1,304 | $1,331 | $1,357 | $1,384 | $1,412 | $1,440 | $1,469 | $1,498 | $1,528 | $1,559 | $1,590 | $1,622 | |
| Other Cost of Sales | $3,274 | $3,948 | $4,194 | $4,345 | $4,488 | $4,582 | $4,707 | $4,802 | $4,840 | $4,808 | $4,805 | $4,704 | |
| Subtotal Direct Cost of Sales | $4,578 | $5,279 | $5,551 | $5,728 | $5,899 | $6,022 | $6,176 | $6,299 | $6,368 | $6,366 | $6,395 | $6,325 | |
| 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 | ||
| CEO | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | |
| Assistant Photographer | $2,000 | $2,120 | $2,247 | $2,382 | $2,525 | $2,676 | $2,837 | $3,007 | $3,187 | $3,378 | $3,581 | $3,796 | |
| Administrative Assistant | $1,500 | $1,515 | $1,530 | $1,545 | $1,560 | $1,576 | $1,592 | $1,608 | $1,624 | $1,640 | $1,656 | $1,673 | |
| Assistant Photographer 2 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Assistant Photographer 3 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Assistant Photographer 4 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total People | 2 | 2 | 2 | 2 | 2 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | |
| Total Payroll | $8,500 | $8,635 | $8,777 | $8,927 | $9,085 | $9,252 | $9,429 | $9,615 | $9,811 | $10,018 | $10,237 | $10,469 | |
| 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 | $21,828 | $26,323 | $27,961 | $28,964 | $29,918 | $30,548 | $31,380 | $32,010 | $32,265 | $32,051 | $32,031 | $31,357 | |
| Direct Cost of Sales | $4,578 | $5,279 | $5,551 | $5,728 | $5,899 | $6,022 | $6,176 | $6,299 | $6,368 | $6,366 | $6,395 | $6,325 | |
| Other Costs of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $4,578 | $5,279 | $5,551 | $5,728 | $5,899 | $6,022 | $6,176 | $6,299 | $6,368 | $6,366 | $6,395 | $6,325 | |
| Gross Margin | $17,250 | $21,044 | $22,410 | $23,236 | $24,019 | $24,526 | $25,205 | $25,711 | $25,898 | $25,685 | $25,636 | $25,032 | |
| Gross Margin % | 79.02% | 79.95% | 80.15% | 80.22% | 80.28% | 80.29% | 80.32% | 80.32% | 80.26% | 80.14% | 80.04% | 79.83% | |
| Expenses | |||||||||||||
| Payroll | $8,500 | $8,635 | $8,777 | $8,927 | $9,085 | $9,252 | $9,429 | $9,615 | $9,811 | $10,018 | $10,237 | $10,469 | |
| Marketing/Promotion | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | |
| Depreciation | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Rent | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
| Utilities | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Insurance | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Payroll Taxes | 15% | $1,275 | $1,313 | $1,352 | $1,393 | $1,435 | $1,478 | $1,522 | $1,568 | $1,615 | $1,663 | $1,713 | $1,764 |
| 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 | $16,675 | $16,848 | $17,029 | $17,220 | $17,420 | $17,630 | $17,851 | $18,083 | $18,326 | $18,581 | $18,850 | $19,133 | |
| Profit Before Interest and Taxes | $575 | $4,196 | $5,381 | $6,016 | $6,599 | $6,896 | $7,354 | $7,628 | $7,572 | $7,104 | $6,786 | $5,899 | |
| EBITDA | $1,075 | $4,696 | $5,881 | $6,516 | $7,099 | $7,396 | $7,854 | $8,128 | $8,072 | $7,604 | $7,286 | $6,399 | |
| Interest Expense | $76 | $69 | $63 | $56 | $49 | $42 | $35 | $28 | $21 | $14 | $7 | $0 | |
| Taxes Incurred | $149 | $1,238 | $1,596 | $1,788 | $1,965 | $2,056 | $2,196 | $2,280 | $2,265 | $2,127 | $2,034 | $1,770 | |
| Net Profit | $349 | $2,889 | $3,723 | $4,172 | $4,585 | $4,798 | $5,123 | $5,320 | $5,285 | $4,963 | $4,746 | $4,129 | |
| Net Profit/Sales | 1.60% | 10.97% | 13.32% | 14.40% | 15.33% | 15.71% | 16.33% | 16.62% | 16.38% | 15.48% | 14.82% | 13.17% | |
| 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 | $4,366 | $5,265 | $5,592 | $5,793 | $5,984 | $6,110 | $6,276 | $6,402 | $6,453 | $6,410 | $6,406 | $6,271 | |
| Cash from Receivables | $582 | $17,582 | $21,102 | $22,396 | $23,197 | $23,951 | $24,461 | $25,121 | $25,615 | $25,806 | $25,640 | $25,607 | |
| Subtotal Cash from Operations | $4,948 | $22,847 | $26,694 | $28,188 | $29,180 | $30,061 | $30,737 | $31,523 | $32,068 | $32,216 | $32,046 | $31,878 | |
| 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 | $4,948 | $22,847 | $26,694 | $28,188 | $29,180 | $30,061 | $30,737 | $31,523 | $32,068 | $32,216 | $32,046 | $31,878 | |
| 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 | $8,500 | $8,635 | $8,777 | $8,927 | $9,085 | $9,252 | $9,429 | $9,615 | $9,811 | $10,018 | $10,237 | $10,469 | |
| Bill Payments | $2,916 | $12,540 | $14,321 | $14,974 | $15,378 | $15,756 | $16,009 | $16,336 | $16,578 | $16,665 | $16,569 | $16,539 | |
| Subtotal Spent on Operations | $11,416 | $21,175 | $23,098 | $23,901 | $24,463 | $25,008 | $25,438 | $25,951 | $26,389 | $26,683 | $26,806 | $27,008 | |
| 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 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | |
| Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Long-term Liabilities Principal Repayment | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $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 | $12,249 | $22,008 | $23,932 | $24,735 | $25,296 | $25,842 | $26,271 | $26,784 | $27,222 | $27,517 | $27,640 | $27,841 | |
| Net Cash Flow | ($7,302) | $839 | $2,763 | $3,454 | $3,884 | $4,219 | $4,465 | $4,738 | $4,845 | $4,700 | $4,407 | $4,037 | |
| Cash Balance | $7,698 | $8,537 | $11,299 | $14,753 | $18,637 | $22,856 | $27,322 | $32,060 | $36,905 | $41,605 | $46,012 | $50,049 | |
| 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 | $15,000 | $7,698 | $8,537 | $11,299 | $14,753 | $18,637 | $22,856 | $27,322 | $32,060 | $36,905 | $41,605 | $46,012 | $50,049 |
| Accounts Receivable | $0 | $16,880 | $20,356 | $21,623 | $22,399 | $23,137 | $23,624 | $24,267 | $24,754 | $24,952 | $24,786 | $24,771 | $24,249 |
| Other Current Assets | $1,000 | $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 Current Assets | $16,000 | $25,579 | $29,893 | $33,923 | $38,152 | $42,774 | $47,480 | $52,589 | $57,814 | $62,857 | $67,391 | $71,783 | $75,299 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $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 |
| Accumulated Depreciation | $0 | $500 | $1,000 | $1,500 | $2,000 | $2,500 | $3,000 | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | $6,000 |
| Total Long-term Assets | $30,000 | $29,500 | $29,000 | $28,500 | $28,000 | $27,500 | $27,000 | $26,500 | $26,000 | $25,500 | $25,000 | $24,500 | $24,000 |
| Total Assets | $46,000 | $55,079 | $58,893 | $62,423 | $66,152 | $70,274 | $74,480 | $79,089 | $83,814 | $88,357 | $92,391 | $96,283 | $99,299 |
| 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 | $2,500 | $12,063 | $13,823 | $14,462 | $14,853 | $15,223 | $15,465 | $15,784 | $16,023 | $16,113 | $16,018 | $15,997 | $15,717 |
| Current Borrowing | $5,000 | $4,583 | $4,167 | $3,750 | $3,333 | $2,917 | $2,500 | $2,083 | $1,667 | $1,250 | $833 | $417 | $0 |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $7,500 | $16,647 | $17,989 | $18,212 | $18,186 | $18,140 | $17,965 | $17,867 | $17,689 | $17,363 | $16,851 | $16,413 | $15,717 |
| Long-term Liabilities | $5,000 | $4,583 | $4,167 | $3,750 | $3,333 | $2,917 | $2,500 | $2,083 | $1,667 | $1,250 | $833 | $417 | $0 |
| Total Liabilities | $12,500 | $21,230 | $22,156 | $21,962 | $21,519 | $21,056 | $20,465 | $19,950 | $19,356 | $18,613 | $17,684 | $16,830 | $15,717 |
| Paid-in Capital | $58,000 | $58,000 | $58,000 | $58,000 | $58,000 | $58,000 | $58,000 | $58,000 | $58,000 | $58,000 | $58,000 | $58,000 | $58,000 |
| Retained Earnings | ($24,500) | ($24,500) | ($24,500) | ($24,500) | ($24,500) | ($24,500) | ($24,500) | ($24,500) | ($24,500) | ($24,500) | ($24,500) | ($24,500) | ($24,500) |
| Earnings | $0 | $349 | $3,237 | $6,960 | $11,132 | $15,718 | $20,515 | $25,639 | $30,959 | $36,244 | $41,207 | $45,953 | $50,082 |
| Total Capital | $33,500 | $33,849 | $36,737 | $40,460 | $44,632 | $49,218 | $54,015 | $59,139 | $64,459 | $69,744 | $74,707 | $79,453 | $83,582 |
| Total Liabilities and Capital | $46,000 | $55,079 | $58,893 | $62,423 | $66,152 | $70,274 | $74,480 | $79,089 | $83,814 | $88,357 | $92,391 | $96,283 | $99,299 |
| Net Worth | $33,500 | $33,849 | $36,737 | $40,460 | $44,632 | $49,218 | $54,015 | $59,139 | $64,459 | $69,744 | $74,707 | $79,453 | $83,582 |
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