Todd, West, and Associates
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 | |||||||||||||
| Symbol and CDS Customers | 0% | $20,000 | $20,000 | $20,785 | $21,890 | $21,400 | $24,200 | $24,302 | $25,000 | $27,400 | $28,900 | $27,500 | $22,000 |
| New Customers | 0% | $0 | $0 | $0 | $0 | $6,000 | $7,500 | $8,000 | $9,700 | $6,000 | $7,000 | $7,000 | $6,000 |
| Total Sales | $20,000 | $20,000 | $20,785 | $21,890 | $27,400 | $31,700 | $32,302 | $34,700 | $33,400 | $35,900 | $34,500 | $28,000 | |
| 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 | |
| Symbol and CDS Customers | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| New Customers | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| 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 | ||
| Mary Todd | 0% | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
| John West | 0% | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
| Installation Consultants | 0% | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 |
| Office Manager | 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 |
| Total People | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | |
| Total Payroll | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | |
| 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 | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | |
| 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 | $20,000 | $20,000 | $20,785 | $21,890 | $27,400 | $31,700 | $32,302 | $34,700 | $33,400 | $35,900 | $34,500 | $28,000 | |
| Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Gross Margin | $20,000 | $20,000 | $20,785 | $21,890 | $27,400 | $31,700 | $32,302 | $34,700 | $33,400 | $35,900 | $34,500 | $28,000 | |
| Gross Margin % | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |
| Expenses | |||||||||||||
| Payroll | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | |
| Sales and Marketing and Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Utilities | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
| Insurance | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| 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% | $3,150 | $3,150 | $3,150 | $3,150 | $3,150 | $3,150 | $3,150 | $3,150 | $3,150 | $3,150 | $3,150 | $3,150 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $25,450 | $25,450 | $25,450 | $25,450 | $25,450 | $25,450 | $25,450 | $25,450 | $25,450 | $25,450 | $25,450 | $25,450 | |
| Profit Before Interest and Taxes | ($5,450) | ($5,450) | ($4,665) | ($3,560) | $1,950 | $6,250 | $6,852 | $9,250 | $7,950 | $10,450 | $9,050 | $2,550 | |
| EBITDA | ($5,450) | ($5,450) | ($4,665) | ($3,560) | $1,950 | $6,250 | $6,852 | $9,250 | $7,950 | $10,450 | $9,050 | $2,550 | |
| Interest Expense | $249 | $247 | $246 | $244 | $243 | $241 | $240 | $238 | $237 | $235 | $234 | $232 | |
| Taxes Incurred | ($1,710) | ($1,709) | ($1,473) | ($1,141) | $512 | $1,803 | $1,984 | $2,704 | $2,314 | $3,065 | $2,645 | $695 | |
| Net Profit | ($3,989) | ($3,988) | ($3,437) | ($2,663) | $1,195 | $4,206 | $4,629 | $6,308 | $5,399 | $7,151 | $6,172 | $1,623 | |
| Net Profit/Sales | -19.94% | -19.94% | -16.54% | -12.16% | 4.36% | 13.27% | 14.33% | 18.18% | 16.17% | 19.92% | 17.89% | 5.79% | |
| 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 | $5,000 | $5,000 | $5,196 | $5,473 | $6,850 | $7,925 | $8,076 | $8,675 | $8,350 | $8,975 | $8,625 | $7,000 | |
| Cash from Receivables | $0 | $500 | $15,000 | $15,020 | $15,616 | $16,555 | $20,658 | $23,790 | $24,286 | $25,993 | $25,113 | $26,890 | |
| Subtotal Cash from Operations | $5,000 | $5,500 | $20,196 | $20,492 | $22,466 | $24,480 | $28,733 | $32,465 | $32,636 | $34,968 | $33,738 | $33,890 | |
| 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 | $5,000 | $5,500 | $20,196 | $20,492 | $22,466 | $24,480 | $28,733 | $32,465 | $32,636 | $34,968 | $33,738 | $33,890 | |
| 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 | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | $21,000 | |
| Bill Payments | $100 | $2,989 | $2,996 | $3,233 | $3,608 | $5,248 | $6,500 | $6,697 | $7,379 | $7,026 | $7,735 | $7,263 | |
| Subtotal Spent on Operations | $21,100 | $23,989 | $23,996 | $24,233 | $24,608 | $26,248 | $27,500 | $27,697 | $28,379 | $28,026 | $28,735 | $28,263 | |
| 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 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
| 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 | $21,400 | $24,289 | $24,296 | $24,533 | $24,908 | $26,548 | $27,800 | $27,997 | $28,679 | $28,326 | $29,035 | $28,563 | |
| Net Cash Flow | ($16,400) | ($18,789) | ($4,099) | ($4,041) | ($2,441) | ($2,067) | $933 | $4,468 | $3,958 | $6,642 | $4,702 | $5,327 | |
| Cash Balance | $44,600 | $25,811 | $21,712 | $17,671 | $15,229 | $13,162 | $14,095 | $18,563 | $22,521 | $29,163 | $33,865 | $39,191 | |
| 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 | $61,000 | $44,600 | $25,811 | $21,712 | $17,671 | $15,229 | $13,162 | $14,095 | $18,563 | $22,521 | $29,163 | $33,865 | $39,191 |
| Accounts Receivable | $0 | $15,000 | $29,500 | $30,089 | $31,487 | $36,420 | $43,640 | $47,209 | $49,444 | $50,208 | $51,140 | $51,903 | $46,013 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $61,000 | $59,600 | $55,311 | $51,801 | $49,157 | $51,650 | $56,802 | $61,304 | $68,007 | $72,728 | $80,303 | $85,767 | $85,204 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Assets | $61,000 | $59,600 | $55,311 | $51,801 | $49,157 | $51,650 | $56,802 | $61,304 | $68,007 | $72,728 | $80,303 | $85,767 | $85,204 |
| 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 | $2,889 | $2,888 | $3,115 | $3,434 | $5,031 | $6,277 | $6,451 | $7,145 | $6,767 | $7,491 | $7,084 | $5,198 |
| 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 | $2,889 | $2,888 | $3,115 | $3,434 | $5,031 | $6,277 | $6,451 | $7,145 | $6,767 | $7,491 | $7,084 | $5,198 |
| Long-term Liabilities | $50,000 | $49,700 | $49,400 | $49,100 | $48,800 | $48,500 | $48,200 | $47,900 | $47,600 | $47,300 | $47,000 | $46,700 | $46,400 |
| Total Liabilities | $50,000 | $52,589 | $52,288 | $52,215 | $52,234 | $53,531 | $54,477 | $54,351 | $54,745 | $54,067 | $54,491 | $53,784 | $51,598 |
| Paid-in Capital | $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 |
| Retained Earnings | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) |
| Earnings | $0 | ($3,989) | ($7,977) | ($11,414) | ($14,077) | ($12,882) | ($8,675) | ($4,047) | $2,262 | $7,661 | $14,812 | $20,983 | $22,606 |
| Total Capital | $11,000 | $7,011 | $3,023 | ($414) | ($3,077) | ($1,882) | $2,325 | $6,953 | $13,262 | $18,661 | $25,812 | $31,983 | $33,606 |
| Total Liabilities and Capital | $61,000 | $59,600 | $55,311 | $51,801 | $49,157 | $51,650 | $56,802 | $61,304 | $68,007 | $72,728 | $80,303 | $85,767 | $85,204 |
| Net Worth | $11,000 | $7,011 | $3,023 | ($414) | ($3,077) | ($1,882) | $2,325 | $6,953 | $13,262 | $18,661 | $25,812 | $31,983 | $33,606 |
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