Markam Driving School
Appendix
| Sales Forecast | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Sales | |||||||||||||
| Adult drivers | 0% | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $20,000 | $20,000 | $20,000 | $24,000 | $25,000 | $21,000 | $23,000 |
| Beginner drivers | 0% | $18,000 | $18,000 | $18,000 | $18,000 | $18,000 | $24,000 | $24,000 | $24,000 | $28,000 | $26,000 | $33,000 | $36,000 |
| Drivers under court order | 0% | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $14,000 | $14,000 | $14,000 | $17,000 | $18,000 | $18,888 | $18,000 |
| High schools | 0% | $20,850 | $20,850 | $20,850 | $20,850 | $20,850 | $25,000 | $25,000 | $25,000 | $41,700 | $41,700 | $31,000 | $31,000 |
| Commercial drivers | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Sales | $64,350 | $64,350 | $64,350 | $64,350 | $64,350 | $83,000 | $83,000 | $83,000 | $110,700 | $110,700 | $103,888 | $108,000 | |
| Direct Cost of Sales | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
| Adult drivers | $5,600 | $5,600 | $5,600 | $5,600 | $5,600 | $8,000 | $8,000 | $8,000 | $9,600 | $10,000 | $8,400 | $9,200 | |
| Beginner drivers | $7,200 | $7,200 | $7,200 | $7,200 | $7,200 | $9,600 | $9,600 | $9,600 | $11,200 | $10,400 | $13,200 | $14,400 | |
| Drivers under court order | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $5,600 | $5,600 | $5,600 | $6,800 | $7,200 | $7,555 | $7,200 | |
| High schools | $8,340 | $8,340 | $8,340 | $8,340 | $8,340 | $10,000 | $10,000 | $10,000 | $16,680 | $16,680 | $12,400 | $12,400 | |
| Commercial drivers | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $25,740 | $25,740 | $25,740 | $25,740 | $25,740 | $33,200 | $33,200 | $33,200 | $44,280 | $44,280 | $41,555 | $43,200 | |
| Personnel Plan | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| President and General Manager | 0% | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
| Controller | 0% | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
| Education Planner | 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 |
| Education Coordinator | 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 |
| Facilities Mangers | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Office Manager | 0% | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
| Marketing Executive (Contract work) | 0% | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 |
| Educators | 0% | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 |
| Total People | 11 | 11 | 11 | 11 | 11 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | |
| Total Payroll | $24,750 | $24,750 | $24,750 | $24,750 | $24,750 | $30,250 | $30,250 | $30,250 | $30,250 | $30,250 | $30,250 | $30,250 | |
| General Assumptions | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| 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 | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Sales | $64,350 | $64,350 | $64,350 | $64,350 | $64,350 | $83,000 | $83,000 | $83,000 | $110,700 | $110,700 | $103,888 | $108,000 | |
| Direct Cost of Sales | $25,740 | $25,740 | $25,740 | $25,740 | $25,740 | $33,200 | $33,200 | $33,200 | $44,280 | $44,280 | $41,555 | $43,200 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $25,740 | $25,740 | $25,740 | $25,740 | $25,740 | $33,200 | $33,200 | $33,200 | $44,280 | $44,280 | $41,555 | $43,200 | |
| Gross Margin | $38,610 | $38,610 | $38,610 | $38,610 | $38,610 | $49,800 | $49,800 | $49,800 | $66,420 | $66,420 | $62,333 | $64,800 | |
| Gross Margin % | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | |
| Expenses | |||||||||||||
| Payroll | $24,750 | $24,750 | $24,750 | $24,750 | $24,750 | $30,250 | $30,250 | $30,250 | $30,250 | $30,250 | $30,250 | $30,250 | |
| Sales and Marketing and Other Expenses | $2,900 | $2,900 | $2,900 | $2,900 | $2,900 | $4,500 | $4,500 | $4,500 | $6,000 | $6,000 | $6,000 | $6,000 | |
| Depreciation | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $400 | $400 | $400 | $400 | |
| Leased Equipment | $0 | $0 | $0 | $0 | $0 | $2,000 | $2,000 | $2,000 | $4,000 | $4,000 | $4,000 | $4,000 | |
| Utilities | $200 | $200 | $200 | $200 | $200 | $400 | $400 | $400 | $600 | $600 | $600 | $600 | |
| Insurance | $600 | $600 | $600 | $600 | $600 | $1,200 | $1,200 | $1,200 | $1,800 | $1,800 | $1,800 | $1,800 | |
| Rent | $2,000 | $2,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $6,000 | $6,000 | $6,000 | $6,000 | |
| Payroll Taxes | 15% | $3,713 | $3,713 | $3,713 | $3,713 | $3,713 | $4,538 | $4,538 | $4,538 | $4,538 | $4,538 | $4,538 | $4,538 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $34,363 | $34,363 | $36,363 | $36,363 | $36,363 | $47,088 | $47,088 | $47,088 | $53,588 | $53,588 | $53,588 | $53,588 | |
| Profit Before Interest and Taxes | $4,248 | $4,248 | $2,248 | $2,248 | $2,248 | $2,713 | $2,713 | $2,713 | $12,833 | $12,833 | $8,745 | $11,213 | |
| EBITDA | $4,448 | $4,448 | $2,448 | $2,448 | $2,448 | $2,913 | $2,913 | $2,913 | $13,233 | $13,233 | $9,145 | $11,613 | |
| Interest Expense | $188 | $183 | $179 | $175 | $171 | $167 | $163 | $158 | $154 | $150 | $146 | $142 | |
| Taxes Incurred | $1,218 | $1,219 | $621 | $622 | $623 | $764 | $765 | $766 | $3,804 | $3,805 | $2,580 | $3,321 | |
| Net Profit | $2,842 | $2,845 | $1,448 | $1,451 | $1,454 | $1,782 | $1,785 | $1,788 | $8,875 | $8,878 | $6,020 | $7,750 | |
| Net Profit/Sales | 4.42% | 4.42% | 2.25% | 2.25% | 2.26% | 2.15% | 2.15% | 2.15% | 8.02% | 8.02% | 5.79% | 7.18% | |
| Pro Forma Cash Flow | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Cash Received | |||||||||||||
| Cash from Operations | |||||||||||||
| Cash Sales | $64,350 | $64,350 | $64,350 | $64,350 | $64,350 | $83,000 | $83,000 | $83,000 | $110,700 | $110,700 | $103,888 | $108,000 | |
| Subtotal Cash from Operations | $64,350 | $64,350 | $64,350 | $64,350 | $64,350 | $83,000 | $83,000 | $83,000 | $110,700 | $110,700 | $103,888 | $108,000 | |
| 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 | $64,350 | $64,350 | $64,350 | $64,350 | $64,350 | $83,000 | $83,000 | $83,000 | $110,700 | $110,700 | $103,888 | $108,000 | |
| Expenditures | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
| Expenditures from Operations | |||||||||||||
| Cash Spending | $24,750 | $24,750 | $24,750 | $24,750 | $24,750 | $30,250 | $30,250 | $30,250 | $30,250 | $30,250 | $30,250 | $30,250 | |
| Bill Payments | $4,935 | $36,558 | $36,602 | $37,952 | $37,949 | $38,374 | $50,768 | $50,765 | $51,443 | $71,175 | $71,040 | $67,298 | |
| Subtotal Spent on Operations | $29,685 | $61,308 | $61,352 | $62,702 | $62,699 | $68,624 | $81,018 | $81,015 | $81,693 | $101,425 | $101,290 | $97,548 | |
| 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 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| 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 | $30,185 | $61,808 | $61,852 | $63,202 | $63,199 | $69,124 | $81,518 | $81,515 | $82,193 | $101,925 | $101,790 | $98,048 | |
| Net Cash Flow | $34,165 | $2,542 | $2,498 | $1,148 | $1,151 | $13,876 | $1,482 | $1,485 | $28,507 | $8,775 | $2,098 | $9,952 | |
| Cash Balance | $47,103 | $49,645 | $52,144 | $53,292 | $54,443 | $68,319 | $69,801 | $71,286 | $99,794 | $108,569 | $110,666 | $120,618 | |
| Pro Forma Balance Sheet | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Assets | Starting Balances | ||||||||||||
| Current Assets | |||||||||||||
| Cash | $12,938 | $47,103 | $49,645 | $52,144 | $53,292 | $54,443 | $68,319 | $69,801 | $71,286 | $99,794 | $108,569 | $110,666 | $120,618 |
| Other Current Assets | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
| Total Current Assets | $14,938 | $49,103 | $51,645 | $54,144 | $55,292 | $56,443 | $70,319 | $71,801 | $73,286 | $101,794 | $110,569 | $112,666 | $122,618 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $74,000 | $74,000 | $74,000 | $74,000 | $74,000 | $74,000 | $74,000 | $74,000 | $74,000 | $74,000 | $74,000 | $74,000 | $74,000 |
| Accumulated Depreciation | $12,000 | $12,200 | $12,400 | $12,600 | $12,800 | $13,000 | $13,200 | $13,400 | $13,600 | $14,000 | $14,400 | $14,800 | $15,200 |
| Total Long-term Assets | $62,000 | $61,800 | $61,600 | $61,400 | $61,200 | $61,000 | $60,800 | $60,600 | $60,400 | $60,000 | $59,600 | $59,200 | $58,800 |
| Total Assets | $76,938 | $110,903 | $113,245 | $115,544 | $116,492 | $117,443 | $131,119 | $132,401 | $133,686 | $161,794 | $170,169 | $171,866 | $181,418 |
| Liabilities and Capital | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
| Current Liabilities | |||||||||||||
| Accounts Payable | $3,716 | $35,339 | $35,337 | $36,687 | $36,684 | $36,681 | $49,076 | $49,073 | $49,070 | $68,803 | $68,800 | $64,978 | $67,280 |
| 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 | $3,716 | $35,339 | $35,337 | $36,687 | $36,684 | $36,681 | $49,076 | $49,073 | $49,070 | $68,803 | $68,800 | $64,978 | $67,280 |
| Long-term Liabilities | $23,000 | $22,500 | $22,000 | $21,500 | $21,000 | $20,500 | $20,000 | $19,500 | $19,000 | $18,500 | $18,000 | $17,500 | $17,000 |
| Total Liabilities | $26,716 | $57,839 | $57,337 | $58,187 | $57,684 | $57,181 | $69,076 | $68,573 | $68,070 | $87,303 | $86,800 | $82,478 | $84,280 |
| Paid-in Capital | $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 |
| Retained Earnings | $20,222 | $20,222 | $20,222 | $20,222 | $20,222 | $20,222 | $20,222 | $20,222 | $20,222 | $20,222 | $20,222 | $20,222 | $20,222 |
| Earnings | $0 | $2,842 | $5,687 | $7,135 | $8,586 | $10,039 | $11,821 | $13,606 | $15,394 | $24,269 | $33,147 | $39,166 | $46,916 |
| Total Capital | $50,222 | $53,064 | $55,909 | $57,357 | $58,808 | $60,261 | $62,043 | $63,828 | $65,616 | $74,491 | $83,369 | $89,388 | $97,138 |
| Total Liabilities and Capital | $76,938 | $110,903 | $113,245 | $115,544 | $116,492 | $117,443 | $131,119 | $132,401 | $133,686 | $161,794 | $170,169 | $171,866 | $181,418 |
| Net Worth | $50,222 | $53,064 | $55,909 | $57,357 | $58,808 | $60,261 | $62,043 | $63,828 | $65,616 | $74,491 | $83,369 | $89,388 | $97,138 |
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