Arrow Mail
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 | |||||||||||||
| Marketing Campaigns | 0% | $0 | $0 | $10,000 | $12,000 | $15,000 | $18,000 | $20,000 | $24,000 | $24,000 | $28,000 | $28,000 | $30,000 |
| Market Analysis | 0% | $0 | $0 | $6,000 | $8,000 | $10,000 | $12,000 | $16,000 | $16,000 | $12,000 | $14,000 | $16,000 | $20,000 |
| Database Analysis | 0% | $0 | $0 | $3,000 | $5,000 | $7,000 | $9,000 | $10,000 | $13,000 | $13,000 | $14,000 | $15,000 | $17,000 |
| Mailing Production | 0% | $0 | $0 | $4,000 | $5,000 | $7,000 | $7,000 | $8,000 | $10,000 | $10,000 | $12,000 | $14,000 | $16,000 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Sales | $0 | $0 | $23,000 | $30,000 | $39,000 | $46,000 | $54,000 | $63,000 | $59,000 | $68,000 | $73,000 | $83,000 | |
| 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 | |
| Marketing Campaigns | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Market Analysis | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Database Analysis | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Mailing Production | $0 | $0 | $1,000 | $1,500 | $1,750 | $2,000 | $2,400 | $2,400 | $2,000 | $2,200 | $2,400 | $2,800 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $0 | $0 | $1,000 | $1,500 | $1,750 | $2,000 | $2,400 | $2,400 | $2,000 | $2,200 | $2,400 | $2,800 | |
| 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 | ||
| Todd Graham | 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 |
| Sales Team (2) | 0% | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 |
| Creative Team (2) | 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 |
| Production 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 |
| Production Team (3) | 0% | $5,400 | $5,400 | $5,400 | $5,400 | $5,400 | $5,400 | $5,400 | $5,400 | $5,400 | $5,400 | $5,400 | $5,400 |
| Office Manager | 0% | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 |
| Creative Director | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total People | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | |
| Total Payroll | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | |
| 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% | 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 | $0 | $0 | $23,000 | $30,000 | $39,000 | $46,000 | $54,000 | $63,000 | $59,000 | $68,000 | $73,000 | $83,000 | |
| Direct Cost of Sales | $0 | $0 | $1,000 | $1,500 | $1,750 | $2,000 | $2,400 | $2,400 | $2,000 | $2,200 | $2,400 | $2,800 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $0 | $0 | $1,000 | $1,500 | $1,750 | $2,000 | $2,400 | $2,400 | $2,000 | $2,200 | $2,400 | $2,800 | |
| Gross Margin | $0 | $0 | $22,000 | $28,500 | $37,250 | $44,000 | $51,600 | $60,600 | $57,000 | $65,800 | $70,600 | $80,200 | |
| Gross Margin % | 0.00% | 0.00% | 95.65% | 95.00% | 95.51% | 95.65% | 95.56% | 96.19% | 96.61% | 96.76% | 96.71% | 96.63% | |
| Expenses | |||||||||||||
| Payroll | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | |
| Sales and Marketing and Other Expenses | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
| 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 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | |
| Insurance | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Rent | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | |
| Payroll Taxes | 15% | $4,230 | $4,230 | $4,230 | $4,230 | $4,230 | $4,230 | $4,230 | $4,230 | $4,230 | $4,230 | $4,230 | $4,230 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $37,030 | $37,030 | $37,030 | $37,030 | $37,030 | $37,030 | $37,030 | $37,030 | $37,030 | $37,030 | $37,030 | $37,030 | |
| Profit Before Interest and Taxes | ($37,030) | ($37,030) | ($15,030) | ($8,530) | $220 | $6,970 | $14,570 | $23,570 | $19,970 | $28,770 | $33,570 | $43,170 | |
| EBITDA | ($37,030) | ($37,030) | ($15,030) | ($8,530) | $220 | $6,970 | $14,570 | $23,570 | $19,970 | $28,770 | $33,570 | $43,170 | |
| Interest Expense | $1,028 | $1,015 | $1,002 | $988 | $975 | $962 | $948 | $935 | $922 | $908 | $895 | $882 | |
| Taxes Incurred | ($11,418) | ($11,414) | ($4,810) | ($2,856) | ($227) | $1,802 | $4,086 | $6,791 | $5,714 | $8,359 | $9,803 | $12,687 | |
| Net Profit | ($26,641) | ($26,632) | ($11,222) | ($6,663) | ($529) | $4,206 | $9,535 | $15,845 | $13,334 | $19,503 | $22,873 | $29,602 | |
| Net Profit/Sales | 0.00% | 0.00% | -48.79% | -22.21% | -1.36% | 9.14% | 17.66% | 25.15% | 22.60% | 28.68% | 31.33% | 35.66% | |
| 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 | $23,000 | $30,000 | $39,000 | $46,000 | $54,000 | $63,000 | $59,000 | $68,000 | $73,000 | $83,000 | |
| Subtotal Cash from Operations | $0 | $0 | $23,000 | $30,000 | $39,000 | $46,000 | $54,000 | $63,000 | $59,000 | $68,000 | $73,000 | $83,000 | |
| 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 | $23,000 | $30,000 | $39,000 | $46,000 | $54,000 | $63,000 | $59,000 | $68,000 | $73,000 | $83,000 | |
| 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 | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | $28,200 | |
| Bill Payments | ($1,559) | ($3,076) | ($1,349) | $5,120 | $8,056 | $10,857 | $13,964 | $16,780 | $18,891 | $17,143 | $20,571 | $22,264 | |
| Subtotal Spent on Operations | $26,641 | $25,124 | $26,851 | $33,320 | $36,256 | $39,057 | $42,164 | $44,980 | $47,091 | $45,343 | $48,771 | $50,464 | |
| 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 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | |
| 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 | $28,241 | $26,724 | $28,451 | $34,920 | $37,856 | $40,657 | $43,764 | $46,580 | $48,691 | $46,943 | $50,371 | $52,064 | |
| Net Cash Flow | ($28,241) | ($26,724) | ($5,451) | ($4,920) | $1,144 | $5,343 | $10,236 | $16,420 | $10,309 | $21,057 | $22,629 | $30,936 | |
| Cash Balance | $124,359 | $97,635 | $92,184 | $87,263 | $88,408 | $93,750 | $103,987 | $120,407 | $130,716 | $151,773 | $174,402 | $205,338 | |
| 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 | $152,600 | $124,359 | $97,635 | $92,184 | $87,263 | $88,408 | $93,750 | $103,987 | $120,407 | $130,716 | $151,773 | $174,402 | $205,338 |
| Inventory | $4,000 | $4,000 | $4,000 | $3,000 | $2,500 | $1,925 | $2,200 | $2,640 | $2,640 | $2,200 | $2,420 | $2,640 | $3,080 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $156,600 | $128,359 | $101,635 | $95,184 | $89,763 | $90,333 | $95,950 | $106,627 | $123,047 | $132,916 | $154,193 | $177,042 | $208,418 |
| 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 | $156,600 | $128,359 | $101,635 | $95,184 | $89,763 | $90,333 | $95,950 | $106,627 | $123,047 | $132,916 | $154,193 | $177,042 | $208,418 |
| 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 | $0 | $1,507 | $7,878 | $10,721 | $13,418 | $16,430 | $19,171 | $21,347 | $19,482 | $22,856 | $24,433 | $27,807 |
| 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 | $0 | $1,507 | $7,878 | $10,721 | $13,418 | $16,430 | $19,171 | $21,347 | $19,482 | $22,856 | $24,433 | $27,807 |
| Long-term Liabilities | $125,000 | $123,400 | $121,800 | $120,200 | $118,600 | $117,000 | $115,400 | $113,800 | $112,200 | $110,600 | $109,000 | $107,400 | $105,800 |
| Total Liabilities | $125,000 | $123,400 | $123,307 | $128,078 | $129,321 | $130,418 | $131,830 | $132,971 | $133,547 | $130,082 | $131,856 | $131,833 | $133,607 |
| Paid-in Capital | $205,000 | $205,000 | $205,000 | $205,000 | $205,000 | $205,000 | $205,000 | $205,000 | $205,000 | $205,000 | $205,000 | $205,000 | $205,000 |
| Retained Earnings | ($173,400) | ($173,400) | ($173,400) | ($173,400) | ($173,400) | ($173,400) | ($173,400) | ($173,400) | ($173,400) | ($173,400) | ($173,400) | ($173,400) | ($173,400) |
| Earnings | $0 | ($26,641) | ($53,272) | ($64,495) | ($71,157) | ($71,686) | ($67,480) | ($57,945) | ($42,100) | ($28,767) | ($9,263) | $13,609 | $43,211 |
| Total Capital | $31,600 | $4,959 | ($21,672) | ($32,895) | ($39,557) | ($40,086) | ($35,880) | ($26,345) | ($10,500) | $2,833 | $22,337 | $45,209 | $74,811 |
| Total Liabilities and Capital | $156,600 | $128,359 | $101,635 | $95,184 | $89,763 | $90,333 | $95,950 | $106,627 | $123,047 | $132,916 | $154,193 | $177,042 | $208,418 |
| Net Worth | $31,600 | $4,959 | ($21,672) | ($32,895) | ($39,557) | ($40,086) | ($35,880) | ($26,345) | ($10,500) | $2,833 | $22,337 | $45,209 | $74,811 |
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