Eagle Computers
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 | |||||||||||||
| Computer Sales | 0% | $8,000 | $10,000 | $12,000 | $12,500 | $12,500 | $13,000 | $13,500 | $14,000 | $14,500 | $15,000 | $15,500 | $16,000 |
| Computer Repairs | 0% | $2,000 | $2,500 | $3,000 | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | $5,600 | $5,700 | $5,800 | $5,900 |
| Computer Rental Stations | 0% | $650 | $700 | $750 | $800 | $850 | $900 | $900 | $900 | $900 | $900 | $900 | $900 |
| Total Sales | $10,650 | $13,200 | $15,750 | $16,800 | $17,350 | $18,400 | $19,400 | $20,400 | $21,000 | $21,600 | $22,200 | $22,800 | |
| 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 | |
| Computer Parts | $5,600 | $7,000 | $8,400 | $8,750 | $8,750 | $9,100 | $9,450 | $9,800 | $10,150 | $10,500 | $10,850 | $11,200 | |
| Row 3 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $5,600 | $7,000 | $8,400 | $8,750 | $8,750 | $9,100 | $9,450 | $9,800 | $10,150 | $10,500 | $10,850 | $11,200 | |
| 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 | ||
| Jim Johnson | 0% | $2,000 | $2,000 | $2,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
| Judy Johnson | 0% | $1,000 | $1,000 | $1,000 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 |
| Total People | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | |
| Total Payroll | $3,000 | $3,000 | $3,000 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | |
| 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 | $10,650 | $13,200 | $15,750 | $16,800 | $17,350 | $18,400 | $19,400 | $20,400 | $21,000 | $21,600 | $22,200 | $22,800 | |
| Direct Cost of Sales | $5,600 | $7,000 | $8,400 | $8,750 | $8,750 | $9,100 | $9,450 | $9,800 | $10,150 | $10,500 | $10,850 | $11,200 | |
| Other Costs of Goods | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $5,600 | $7,000 | $8,400 | $8,750 | $8,750 | $9,100 | $9,450 | $9,800 | $10,150 | $10,500 | $10,850 | $11,200 | |
| Gross Margin | $5,050 | $6,200 | $7,350 | $8,050 | $8,600 | $9,300 | $9,950 | $10,600 | $10,850 | $11,100 | $11,350 | $11,600 | |
| Gross Margin % | 47.42% | 46.97% | 46.67% | 47.92% | 49.57% | 50.54% | 51.29% | 51.96% | 51.67% | 51.39% | 51.13% | 50.88% | |
| Expenses | |||||||||||||
| Payroll | $3,000 | $3,000 | $3,000 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | |
| Sales and Marketing and Other Expenses | $0 | $0 | $70 | $0 | $0 | $70 | $0 | $0 | $70 | $0 | $0 | $70 | |
| Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Rent | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | |
| Utilities | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
| Security Alarm System | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | |
| Insurance | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | |
| Payroll Taxes | 15% | $450 | $450 | $450 | $675 | $675 | $675 | $675 | $675 | $675 | $675 | $675 | $675 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $5,130 | $5,130 | $5,200 | $6,855 | $6,855 | $6,925 | $6,855 | $6,855 | $6,925 | $6,855 | $6,855 | $6,925 | |
| Profit Before Interest and Taxes | ($80) | $1,070 | $2,150 | $1,195 | $1,745 | $2,375 | $3,095 | $3,745 | $3,925 | $4,245 | $4,495 | $4,675 | |
| EBITDA | ($80) | $1,070 | $2,150 | $1,195 | $1,745 | $2,375 | $3,095 | $3,745 | $3,925 | $4,245 | $4,495 | $4,675 | |
| Interest Expense | $289 | $287 | $284 | $282 | $280 | $277 | $275 | $272 | $270 | $267 | $265 | $262 | |
| Taxes Incurred | ($111) | $235 | $560 | $274 | $440 | $629 | $846 | $1,042 | $1,097 | $1,193 | $1,269 | $1,324 | |
| Net Profit | ($258) | $548 | $1,306 | $639 | $1,026 | $1,469 | $1,974 | $2,431 | $2,559 | $2,784 | $2,961 | $3,089 | |
| Net Profit/Sales | -2.43% | 4.15% | 8.29% | 3.80% | 5.91% | 7.98% | 10.18% | 11.92% | 12.18% | 12.89% | 13.34% | 13.55% | |
| 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 | $10,650 | $13,200 | $15,750 | $16,800 | $17,350 | $18,400 | $19,400 | $20,400 | $21,000 | $21,600 | $22,200 | $22,800 | |
| Subtotal Cash from Operations | $10,650 | $13,200 | $15,750 | $16,800 | $17,350 | $18,400 | $19,400 | $20,400 | $21,000 | $21,600 | $22,200 | $22,800 | |
| 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 | $35,000 | $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 | $45,650 | $13,200 | $15,750 | $16,800 | $17,350 | $18,400 | $19,400 | $20,400 | $21,000 | $21,600 | $22,200 | $22,800 | |
| 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 | $3,000 | $3,000 | $3,000 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | |
| Bill Payments | $136 | $4,306 | $11,252 | $12,953 | $12,038 | $11,857 | $12,833 | $13,329 | $13,870 | $14,339 | $14,715 | $15,140 | |
| Subtotal Spent on Operations | $3,136 | $7,306 | $14,252 | $17,453 | $16,538 | $16,357 | $17,333 | $17,829 | $18,370 | $18,839 | $19,215 | $19,640 | |
| 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 | $292 | $292 | $292 | $292 | $292 | $292 | $292 | $292 | $292 | $292 | $292 | $292 | |
| 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 | $3,428 | $7,598 | $14,544 | $17,745 | $16,830 | $16,649 | $17,625 | $18,121 | $18,662 | $19,131 | $19,507 | $19,932 | |
| Net Cash Flow | $42,222 | $5,602 | $1,206 | ($945) | $520 | $1,751 | $1,775 | $2,279 | $2,338 | $2,469 | $2,693 | $2,868 | |
| Cash Balance | $44,247 | $49,849 | $51,056 | $50,111 | $50,631 | $52,382 | $54,157 | $56,436 | $58,774 | $61,243 | $63,936 | $66,805 | |
| 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 | $2,025 | $44,247 | $49,849 | $51,056 | $50,111 | $50,631 | $52,382 | $54,157 | $56,436 | $58,774 | $61,243 | $63,936 | $66,805 |
| Inventory | $10,000 | $6,160 | $7,700 | $9,240 | $9,625 | $9,625 | $10,010 | $10,395 | $10,780 | $11,165 | $11,550 | $11,935 | $12,320 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $12,025 | $50,407 | $57,549 | $60,296 | $59,736 | $60,256 | $62,392 | $64,552 | $67,216 | $69,939 | $72,793 | $75,871 | $79,125 |
| 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 | $12,025 | $50,407 | $57,549 | $60,296 | $59,736 | $60,256 | $62,392 | $64,552 | $67,216 | $69,939 | $72,793 | $75,871 | $79,125 |
| 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 | $3,933 | $10,819 | $12,551 | $11,644 | $11,430 | $12,389 | $12,867 | $13,392 | $13,849 | $14,211 | $14,620 | $15,076 |
| 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 | $3,933 | $10,819 | $12,551 | $11,644 | $11,430 | $12,389 | $12,867 | $13,392 | $13,849 | $14,211 | $14,620 | $15,076 |
| Long-term Liabilities | $0 | $34,708 | $34,416 | $34,124 | $33,832 | $33,540 | $33,248 | $32,956 | $32,664 | $32,372 | $32,080 | $31,788 | $31,496 |
| Total Liabilities | $0 | $38,641 | $45,235 | $46,675 | $45,476 | $44,970 | $45,637 | $45,823 | $46,056 | $46,221 | $46,291 | $46,408 | $46,572 |
| 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 | ($7,975) | ($7,975) | ($7,975) | ($7,975) | ($7,975) | ($7,975) | ($7,975) | ($7,975) | ($7,975) | ($7,975) | ($7,975) | ($7,975) | ($7,975) |
| Earnings | $0 | ($258) | $290 | $1,596 | $2,235 | $3,261 | $4,729 | $6,704 | $9,134 | $11,693 | $14,478 | $17,439 | $20,527 |
| Total Capital | $12,025 | $11,767 | $12,315 | $13,621 | $14,260 | $15,286 | $16,754 | $18,729 | $21,159 | $23,718 | $26,503 | $29,464 | $32,552 |
| Total Liabilities and Capital | $12,025 | $50,407 | $57,549 | $60,296 | $59,736 | $60,256 | $62,392 | $64,552 | $67,216 | $69,939 | $72,793 | $75,871 | $79,125 |
| Net Worth | $12,025 | $11,767 | $12,315 | $13,621 | $14,260 | $15,286 | $16,754 | $18,729 | $21,159 | $23,718 | $26,503 | $29,464 | $32,552 |
