Hass Irrigation Systems
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 | |||||||||||||
| New Home Construction | 0% | $19,000 | $19,000 | $19,000 | $23,000 | $27,000 | $30,000 | $29,000 | $24,000 | $19,000 | $14,000 | $11,000 | $14,000 |
| Landscaping Projects | 0% | $0 | $0 | $4,000 | $6,000 | $7,000 | $9,000 | $9,000 | $8,000 | $6,000 | $4,000 | $4,000 | $6,000 |
| Total Sales | $19,000 | $19,000 | $23,000 | $29,000 | $34,000 | $39,000 | $38,000 | $32,000 | $25,000 | $18,000 | $15,000 | $20,000 | |
| 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 | |
| New Home Construction | $5,000 | $5,000 | $5,000 | $6,400 | $7,800 | $9,000 | $8,000 | $6,400 | $5,000 | $4,000 | $3,000 | $4,000 | |
| Landscaping Projects | $0 | $0 | $1,000 | $1,800 | $2,200 | $2,700 | $2,700 | $2,000 | $1,800 | $1,200 | $1,200 | $1,800 | |
| Subtotal Direct Cost of Sales | $5,000 | $5,000 | $6,000 | $8,200 | $10,000 | $11,700 | $10,700 | $8,400 | $6,800 | $5,200 | $4,200 | $5,800 | |
| 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 | ||
| Andrew Hass | 0% | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
| Irrigation Crew Members (3) | 0% | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 |
| Total People | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total Payroll | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | |
| 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 | 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 | $19,000 | $19,000 | $23,000 | $29,000 | $34,000 | $39,000 | $38,000 | $32,000 | $25,000 | $18,000 | $15,000 | $20,000 | |
| Direct Cost of Sales | $5,000 | $5,000 | $6,000 | $8,200 | $10,000 | $11,700 | $10,700 | $8,400 | $6,800 | $5,200 | $4,200 | $5,800 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $5,000 | $5,000 | $6,000 | $8,200 | $10,000 | $11,700 | $10,700 | $8,400 | $6,800 | $5,200 | $4,200 | $5,800 | |
| Gross Margin | $14,000 | $14,000 | $17,000 | $20,800 | $24,000 | $27,300 | $27,300 | $23,600 | $18,200 | $12,800 | $10,800 | $14,200 | |
| Gross Margin % | 73.68% | 73.68% | 73.91% | 71.72% | 70.59% | 70.00% | 71.84% | 73.75% | 72.80% | 71.11% | 72.00% | 71.00% | |
| Expenses | |||||||||||||
| Payroll | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | |
| Sales and Marketing and Other Expenses | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | |
| Depreciation | $357 | $357 | $357 | $357 | $357 | $357 | $357 | $357 | $357 | $357 | $357 | $357 | |
| Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Utilities | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| 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% | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $14,557 | $14,557 | $14,557 | $14,557 | $14,557 | $14,557 | $14,557 | $14,557 | $14,557 | $14,557 | $14,557 | $14,557 | |
| Profit Before Interest and Taxes | ($557) | ($557) | $2,443 | $6,243 | $9,443 | $12,743 | $12,743 | $9,043 | $3,643 | ($1,757) | ($3,757) | ($357) | |
| EBITDA | ($200) | ($200) | $2,800 | $6,600 | $9,800 | $13,100 | $13,100 | $9,400 | $4,000 | ($1,400) | ($3,400) | $0 | |
| Interest Expense | $826 | $819 | $813 | $806 | $799 | $792 | $785 | $778 | $771 | $764 | $757 | $750 | |
| Taxes Incurred | ($415) | ($413) | $489 | $1,631 | $2,593 | $3,585 | $3,587 | $2,480 | $862 | ($756) | ($1,354) | ($332) | |
| Net Profit | ($968) | ($964) | $1,141 | $3,806 | $6,051 | $8,366 | $8,371 | $5,786 | $2,010 | ($1,765) | ($3,160) | ($775) | |
| Net Profit/Sales | -5.10% | -5.07% | 4.96% | 13.12% | 17.80% | 21.45% | 22.03% | 18.08% | 8.04% | -9.80% | -21.07% | -3.87% | |
| 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 | $4,750 | $4,750 | $5,750 | $7,250 | $8,500 | $9,750 | $9,500 | $8,000 | $6,250 | $4,500 | $3,750 | $5,000 | |
| Cash from Receivables | $0 | $475 | $14,250 | $14,350 | $17,400 | $21,875 | $25,625 | $29,225 | $28,350 | $23,825 | $18,575 | $13,425 | |
| Subtotal Cash from Operations | $4,750 | $5,225 | $20,000 | $21,600 | $25,900 | $31,625 | $35,125 | $37,225 | $34,600 | $28,325 | $22,325 | $18,425 | |
| 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 | $5,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Received | $4,750 | $10,225 | $20,000 | $21,600 | $25,900 | $31,625 | $35,125 | $37,225 | $34,600 | $28,325 | $22,325 | $18,425 | |
| 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 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | |
| Bill Payments | $154 | $4,611 | $4,636 | $5,539 | $6,842 | $13,104 | $22,015 | $18,011 | $13,246 | $10,765 | $7,616 | $6,885 | |
| Subtotal Spent on Operations | $10,154 | $14,611 | $14,636 | $15,539 | $16,842 | $23,104 | $32,015 | $28,011 | $23,246 | $20,765 | $17,616 | $16,885 | |
| 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 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | |
| 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 | $10,987 | $15,444 | $15,469 | $16,372 | $17,675 | $23,937 | $32,848 | $28,844 | $24,079 | $21,598 | $18,449 | $17,718 | |
| Net Cash Flow | ($6,237) | ($5,219) | $4,531 | $5,228 | $8,225 | $7,688 | $2,277 | $8,381 | $10,521 | $6,727 | $3,876 | $707 | |
| Cash Balance | $6,463 | $1,244 | $5,775 | $11,002 | $19,227 | $26,915 | $29,193 | $37,574 | $48,096 | $54,823 | $58,698 | $59,405 | |
| 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 | $12,700 | $6,463 | $1,244 | $5,775 | $11,002 | $19,227 | $26,915 | $29,193 | $37,574 | $48,096 | $54,823 | $58,698 | $59,405 |
| Accounts Receivable | $0 | $14,250 | $28,025 | $31,025 | $38,425 | $46,525 | $53,900 | $56,775 | $51,550 | $41,950 | $31,625 | $24,300 | $25,875 |
| Inventory | $40,000 | $35,000 | $30,000 | $24,000 | $15,800 | $11,000 | $12,870 | $11,770 | $9,240 | $7,480 | $5,720 | $4,620 | $6,380 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $52,700 | $55,713 | $59,269 | $60,800 | $65,227 | $76,752 | $93,685 | $97,738 | $98,364 | $97,526 | $92,168 | $87,618 | $91,660 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 |
| Accumulated Depreciation | $0 | $357 | $714 | $1,071 | $1,428 | $1,785 | $2,142 | $2,499 | $2,856 | $3,213 | $3,570 | $3,927 | $4,284 |
| Total Long-term Assets | $50,000 | $49,643 | $49,286 | $48,929 | $48,572 | $48,215 | $47,858 | $47,501 | $47,144 | $46,787 | $46,430 | $46,073 | $45,716 |
| Total Assets | $102,700 | $105,356 | $108,555 | $109,729 | $113,799 | $124,967 | $141,543 | $145,239 | $145,508 | $144,313 | $138,598 | $133,691 | $137,376 |
| 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 | $4,458 | $4,453 | $5,318 | $6,416 | $12,366 | $21,409 | $17,566 | $12,883 | $10,510 | $7,393 | $6,479 | $11,772 |
| 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 | $4,458 | $4,453 | $5,318 | $6,416 | $12,366 | $21,409 | $17,566 | $12,883 | $10,510 | $7,393 | $6,479 | $11,772 |
| Long-term Liabilities | $100,000 | $99,167 | $98,334 | $97,501 | $96,668 | $95,835 | $95,002 | $94,169 | $93,336 | $92,503 | $91,670 | $90,837 | $90,004 |
| Total Liabilities | $100,000 | $103,625 | $102,787 | $102,819 | $103,084 | $108,201 | $116,411 | $111,735 | $106,219 | $103,013 | $99,063 | $97,316 | $101,776 |
| Paid-in Capital | $60,000 | $60,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 |
| Retained Earnings | ($57,300) | ($57,300) | ($57,300) | ($57,300) | ($57,300) | ($57,300) | ($57,300) | ($57,300) | ($57,300) | ($57,300) | ($57,300) | ($57,300) | ($57,300) |
| Earnings | $0 | ($968) | ($1,932) | ($791) | $3,016 | $9,067 | $17,433 | $25,803 | $31,589 | $33,600 | $31,835 | $28,675 | $27,900 |
| Total Capital | $2,700 | $1,732 | $5,768 | $6,909 | $10,716 | $16,767 | $25,133 | $33,503 | $39,289 | $41,300 | $39,535 | $36,375 | $35,600 |
| Total Liabilities and Capital | $102,700 | $105,356 | $108,555 | $109,729 | $113,799 | $124,967 | $141,543 | $145,239 | $145,508 | $144,313 | $138,598 | $133,691 | $137,376 |
| Net Worth | $2,700 | $1,732 | $5,768 | $6,909 | $10,716 | $16,767 | $25,133 | $33,503 | $39,289 | $41,300 | $39,535 | $36,375 | $35,600 |
By 
