By 
Our biggest savings of the year
Gaian Adventure Fabric and Notions
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 | |||||||||||||
| Walk-ins | 0% | $0 | $565 | $634 | $778 | $943 | $1,111 | $1,202 | $1,360 | $1,619 | $1,750 | $2,010 | $2,151 |
| internet individual customers | 0% | $0 | $4,345 | $4,878 | $5,985 | $7,254 | $8,547 | $9,245 | $10,458 | $12,457 | $13,458 | $15,458 | $16,545 |
| internet company orders | 0% | $0 | $261 | $293 | $359 | $435 | $513 | $555 | $627 | $747 | $807 | $927 | $993 |
| Total Sales | $0 | $5,171 | $5,805 | $7,122 | $8,632 | $10,171 | $11,002 | $12,445 | $14,824 | $16,015 | $18,395 | $19,689 | |
| 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 | |
| Walk-ins | $0 | $73 | $436 | $585 | $675 | $765 | $945 | $1,035 | $1,305 | $1,575 | $2,085 | $2,745 | |
| internet individual customers | $0 | $1,955 | $2,195 | $2,693 | $3,264 | $3,846 | $4,160 | $4,706 | $5,606 | $6,056 | $6,956 | $7,445 | |
| internet company orders | $0 | $117 | $132 | $162 | $196 | $231 | $250 | $282 | $336 | $363 | $417 | $447 | |
| Subtotal Direct Cost of Sales | $0 | $2,145 | $2,763 | $3,440 | $4,135 | $4,842 | $5,355 | $6,023 | $7,247 | $7,994 | $9,458 | $10,637 | |
| 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 | ||
| Martha | 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 |
| Employee 1 | 0% | $0 | $0 | $0 | $0 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 |
| Total People | 1 | 1 | 1 | 1 | 2 | 0 | 2 | 2 | 2 | 2 | 2 | 2 | |
| Total Payroll | $3,000 | $3,000 | $3,000 | $3,000 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | |
| 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 | $5,171 | $5,805 | $7,122 | $8,632 | $10,171 | $11,002 | $12,445 | $14,824 | $16,015 | $18,395 | $19,689 | |
| Direct Cost of Sales | $0 | $2,145 | $2,763 | $3,440 | $4,135 | $4,842 | $5,355 | $6,023 | $7,247 | $7,994 | $9,458 | $10,637 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $0 | $2,145 | $2,763 | $3,440 | $4,135 | $4,842 | $5,355 | $6,023 | $7,247 | $7,994 | $9,458 | $10,637 | |
| Gross Margin | $0 | $3,025 | $3,042 | $3,682 | $4,497 | $5,329 | $5,647 | $6,422 | $7,577 | $8,021 | $8,937 | $9,052 | |
| Gross Margin % | 0.00% | 58.51% | 52.40% | 51.70% | 52.10% | 52.39% | 51.33% | 51.60% | 51.11% | 50.08% | 48.58% | 45.97% | |
| Expenses | |||||||||||||
| Payroll | $3,000 | $3,000 | $3,000 | $3,000 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | |
| Sales and Marketing and Other Expenses | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | |
| Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Leased Equipment | $58 | $58 | $58 | $58 | $58 | $58 | $58 | $58 | $58 | $58 | $58 | $58 | |
| Phone line + DSL + web site maintenance | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
| Insurance | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
| Rent | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | |
| Payroll Taxes | 15% | $450 | $450 | $450 | $450 | $690 | $690 | $690 | $690 | $690 | $690 | $690 | $690 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $4,708 | $4,708 | $4,708 | $4,708 | $6,548 | $6,548 | $6,548 | $6,548 | $6,548 | $6,548 | $6,548 | $6,548 | |
| Profit Before Interest and Taxes | ($4,708) | ($1,683) | ($1,666) | ($1,026) | ($2,051) | ($1,219) | ($901) | ($126) | $1,029 | $1,473 | $2,389 | $2,504 | |
| EBITDA | ($4,708) | ($1,683) | ($1,666) | ($1,026) | ($2,051) | ($1,219) | ($901) | ($126) | $1,029 | $1,473 | $2,389 | $2,504 | |
| Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Net Profit | ($4,708) | ($1,683) | ($1,666) | ($1,026) | ($2,051) | ($1,219) | ($901) | ($126) | $1,029 | $1,473 | $2,389 | $2,504 | |
| Net Profit/Sales | 0.00% | -32.55% | -28.70% | -14.40% | -23.76% | -11.99% | -8.19% | -1.02% | 6.94% | 9.19% | 12.98% | 12.72% | |
| 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 | $5,171 | $5,805 | $7,122 | $8,632 | $10,171 | $11,002 | $12,445 | $14,824 | $16,015 | $18,395 | $19,689 | |
| Subtotal Cash from Operations | $0 | $5,171 | $5,805 | $7,122 | $8,632 | $10,171 | $11,002 | $12,445 | $14,824 | $16,015 | $18,395 | $19,689 | |
| 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 | $5,171 | $5,805 | $7,122 | $8,632 | $10,171 | $11,002 | $12,445 | $14,824 | $16,015 | $18,395 | $19,689 | |
| 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 | $3,000 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | |
| Bill Payments | $57 | $1,858 | $6,178 | $5,175 | $5,924 | $6,872 | $7,577 | $7,895 | $8,768 | $10,548 | $10,840 | $13,046 | |
| Subtotal Spent on Operations | $3,057 | $4,858 | $9,178 | $8,175 | $10,524 | $11,472 | $12,177 | $12,495 | $13,368 | $15,148 | $15,440 | $17,646 | |
| 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 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| 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 | $3,057 | $4,858 | $9,178 | $8,175 | $10,524 | $11,472 | $12,177 | $12,495 | $13,368 | $15,148 | $15,440 | $17,646 | |
| Net Cash Flow | ($3,057) | $312 | ($3,373) | ($1,053) | ($1,892) | ($1,301) | ($1,176) | ($50) | $1,456 | $867 | $2,955 | $2,043 | |
| Cash Balance | $17,843 | $18,155 | $14,782 | $13,730 | $11,838 | $10,537 | $9,361 | $9,311 | $10,766 | $11,633 | $14,588 | $16,631 | |
| 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 | $20,900 | $17,843 | $18,155 | $14,782 | $13,730 | $11,838 | $10,537 | $9,361 | $9,311 | $10,766 | $11,633 | $14,588 | $16,631 |
| Inventory | $0 | $0 | $2,360 | $3,039 | $3,784 | $4,549 | $5,326 | $5,890 | $6,626 | $7,972 | $8,794 | $10,404 | $11,701 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $20,900 | $17,843 | $20,515 | $17,821 | $17,514 | $16,386 | $15,863 | $15,251 | $15,937 | $18,738 | $20,427 | $24,993 | $28,332 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 |
| Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Long-term Assets | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 |
| Total Assets | $24,400 | $21,343 | $24,015 | $21,321 | $21,014 | $19,886 | $19,363 | $18,751 | $19,437 | $22,238 | $23,927 | $28,493 | $31,832 |
| 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 | $1,651 | $6,006 | $4,978 | $5,696 | $6,620 | $7,315 | $7,605 | $8,417 | $10,190 | $10,406 | $12,583 | $13,419 |
| 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 | $1,651 | $6,006 | $4,978 | $5,696 | $6,620 | $7,315 | $7,605 | $8,417 | $10,190 | $10,406 | $12,583 | $13,419 |
| Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Liabilities | $0 | $1,651 | $6,006 | $4,978 | $5,696 | $6,620 | $7,315 | $7,605 | $8,417 | $10,190 | $10,406 | $12,583 | $13,419 |
| Paid-in Capital | $38,000 | $38,000 | $38,000 | $38,000 | $38,000 | $38,000 | $38,000 | $38,000 | $38,000 | $38,000 | $38,000 | $38,000 | $38,000 |
| Retained Earnings | ($13,600) | ($13,600) | ($13,600) | ($13,600) | ($13,600) | ($13,600) | ($13,600) | ($13,600) | ($13,600) | ($13,600) | ($13,600) | ($13,600) | ($13,600) |
| Earnings | $0 | ($4,708) | ($6,391) | ($8,057) | ($9,083) | ($11,133) | ($12,352) | ($13,254) | ($13,380) | ($12,351) | ($10,879) | ($8,490) | ($5,987) |
| Total Capital | $24,400 | $19,692 | $18,009 | $16,343 | $15,317 | $13,267 | $12,048 | $11,146 | $11,020 | $12,049 | $13,521 | $15,910 | $18,413 |
| Total Liabilities and Capital | $24,400 | $21,343 | $24,015 | $21,321 | $21,014 | $19,886 | $19,363 | $18,751 | $19,437 | $22,238 | $23,927 | $28,493 | $31,832 |
| Net Worth | $24,400 | $19,692 | $18,009 | $16,343 | $15,317 | $13,267 | $12,048 | $11,146 | $11,020 | $12,049 | $13,521 | $15,910 | $18,413 |