Tucson Electronics
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 | |||||||||||||
TVs | 0% | $3,000 | $3,200 | $3,400 | $3,550 | $3,550 | $3,550 | $3,700 | $3,700 | $4,000 | $4,800 | $4,800 | $5,000 |
VCRs | 0% | $3,500 | $3,600 | $3,700 | $3,900 | $3,900 | $3,900 | $4,000 | $4,200 | $4,500 | $5,100 | $5,400 | $5,900 |
DVDs | 0% | $2,000 | $2,200 | $2,200 | $2,400 | $2,400 | $2,400 | $2,600 | $2,600 | $3,000 | $4,200 | $5,000 | $5,500 |
Stereo Systems | 0% | $4,000 | $4,000 | $4,100 | $4,400 | $4,400 | $4,400 | $4,600 | $4,800 | $5,400 | $5,600 | $6,000 | $6,000 |
Microwave Ovens | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $400 | $2,500 | $3,000 |
Total Sales | $12,500 | $13,000 | $13,400 | $14,250 | $14,250 | $14,250 | $14,900 | $15,300 | $16,900 | $20,100 | $23,700 | $25,400 | |
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 | |
TVs | $300 | $320 | $340 | $355 | $355 | $355 | $370 | $370 | $400 | $480 | $480 | $500 | |
VCRs | $350 | $360 | $370 | $390 | $390 | $390 | $400 | $420 | $450 | $510 | $540 | $590 | |
DVDs | $200 | $220 | $220 | $240 | $240 | $240 | $260 | $260 | $300 | $420 | $500 | $550 | |
Stereo Systems | $400 | $400 | $410 | $440 | $440 | $440 | $460 | $480 | $540 | $560 | $600 | $600 | |
Microwave Ovens | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $40 | $250 | $300 | |
Subtotal Direct Cost of Sales | $1,250 | $1,300 | $1,340 | $1,425 | $1,425 | $1,425 | $1,490 | $1,530 | $1,690 | $2,010 | $2,370 | $2,540 |
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 | ||
Mr. James Munroe | 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 |
Mr. Samuel Munroe | 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 |
Part-time technician | 0% | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 |
Part-time technician | 0% | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 |
Part-time technician | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total People | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | |
Total Payroll | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 |
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 | $12,500 | $13,000 | $13,400 | $14,250 | $14,250 | $14,250 | $14,900 | $15,300 | $16,900 | $20,100 | $23,700 | $25,400 | |
Direct Cost of Sales | $1,250 | $1,300 | $1,340 | $1,425 | $1,425 | $1,425 | $1,490 | $1,530 | $1,690 | $2,010 | $2,370 | $2,540 | |
Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $1,250 | $1,300 | $1,340 | $1,425 | $1,425 | $1,425 | $1,490 | $1,530 | $1,690 | $2,010 | $2,370 | $2,540 | |
Gross Margin | $11,250 | $11,700 | $12,060 | $12,825 | $12,825 | $12,825 | $13,410 | $13,770 | $15,210 | $18,090 | $21,330 | $22,860 | |
Gross Margin % | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | |
Expenses | |||||||||||||
Payroll | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | |
Sales and Marketing and Other Expenses | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $3,400 | $3,200 | |
Depreciation | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | |
Leased Equipment | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Utilities | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | |
Insurance | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | |
Rent | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | |
Payroll Taxes | 15% | $1,110 | $1,110 | $1,110 | $1,110 | $1,110 | $1,110 | $1,110 | $1,110 | $1,110 | $1,110 | $1,110 | $1,110 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $15,876 | $15,876 | $15,876 | $15,876 | $15,876 | $15,876 | $15,876 | $15,876 | $15,876 | $15,876 | $17,076 | $16,876 | |
Profit Before Interest and Taxes | ($4,626) | ($4,176) | ($3,816) | ($3,051) | ($3,051) | ($3,051) | ($2,466) | ($2,106) | ($666) | $2,214 | $4,254 | $5,984 | |
EBITDA | ($4,460) | ($4,010) | ($3,650) | ($2,885) | ($2,885) | ($2,885) | ($2,300) | ($1,940) | ($500) | $2,380 | $4,420 | $6,150 | |
Interest Expense | $126 | $123 | $121 | $118 | $116 | $113 | $111 | $108 | $114 | $112 | $109 | $98 | |
Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | ($4,752) | ($4,299) | ($3,937) | ($3,169) | ($3,167) | ($3,164) | ($2,577) | ($2,214) | ($780) | $2,102 | $4,145 | $5,886 | |
Net Profit/Sales | -38.01% | -33.07% | -29.38% | -22.24% | -22.22% | -22.21% | -17.29% | -14.47% | -4.62% | 10.46% | 17.49% | 23.17% |
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 | $12,500 | $13,000 | $13,400 | $14,250 | $14,250 | $14,250 | $14,900 | $15,300 | $16,900 | $20,100 | $23,700 | $25,400 | |
Subtotal Cash from Operations | $12,500 | $13,000 | $13,400 | $14,250 | $14,250 | $14,250 | $14,900 | $15,300 | $16,900 | $20,100 | $23,700 | $25,400 | |
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 | $1,000 | $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 | $12,500 | $13,000 | $13,400 | $14,250 | $14,250 | $14,250 | $14,900 | $15,300 | $17,900 | $20,100 | $23,700 | $25,400 | |
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 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | |
Bill Payments | $281 | $8,469 | $9,445 | $9,800 | $9,944 | $9,851 | $9,853 | $9,983 | $10,002 | $10,307 | $10,837 | $12,377 | |
Subtotal Spent on Operations | $7,681 | $15,869 | $16,845 | $17,200 | $17,344 | $17,251 | $17,253 | $17,383 | $17,402 | $17,707 | $18,237 | $19,777 | |
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 | $1,000 | |
Other Liabilities Principal Repayment | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
Long-term Liabilities Principal Repayment | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
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 | $8,281 | $16,469 | $17,445 | $17,800 | $17,944 | $17,851 | $17,853 | $17,983 | $18,002 | $18,307 | $18,837 | $21,377 | |
Net Cash Flow | $4,219 | ($3,469) | ($4,045) | ($3,550) | ($3,694) | ($3,601) | ($2,953) | ($2,683) | ($102) | $1,793 | $4,863 | $4,023 | |
Cash Balance | $40,419 | $36,950 | $32,904 | $29,354 | $25,661 | $22,060 | $19,107 | $16,425 | $16,322 | $18,116 | $22,979 | $27,002 |
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 | $36,200 | $40,419 | $36,950 | $32,904 | $29,354 | $25,661 | $22,060 | $19,107 | $16,425 | $16,322 | $18,116 | $22,979 | $27,002 |
Inventory | $3,000 | $1,750 | $1,450 | $1,474 | $1,568 | $1,568 | $1,568 | $1,639 | $1,683 | $1,859 | $2,211 | $2,607 | $2,794 |
Other Current Assets | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 |
Total Current Assets | $47,200 | $50,169 | $46,400 | $42,378 | $38,922 | $35,228 | $31,628 | $28,746 | $26,108 | $26,181 | $28,327 | $33,586 | $37,796 |
Long-term Assets | |||||||||||||
Long-term Assets | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
Accumulated Depreciation | $0 | $166 | $332 | $498 | $664 | $830 | $996 | $1,162 | $1,328 | $1,494 | $1,660 | $1,826 | $1,992 |
Total Long-term Assets | $4,000 | $3,834 | $3,668 | $3,502 | $3,336 | $3,170 | $3,004 | $2,838 | $2,672 | $2,506 | $2,340 | $2,174 | $2,008 |
Total Assets | $51,200 | $54,003 | $50,068 | $45,880 | $42,258 | $38,398 | $34,632 | $31,584 | $28,780 | $28,687 | $30,667 | $35,760 | $39,804 |
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 | $8,155 | $9,119 | $9,468 | $9,615 | $9,522 | $9,520 | $9,650 | $9,659 | $9,947 | $10,424 | $11,972 | $11,731 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,000 | $1,000 | $1,000 | $0 |
Other Current Liabilities | $13,600 | $13,300 | $13,000 | $12,700 | $12,400 | $12,100 | $11,800 | $11,500 | $11,200 | $10,900 | $10,600 | $10,300 | $10,000 |
Subtotal Current Liabilities | $13,600 | $21,455 | $22,119 | $22,168 | $22,015 | $21,622 | $21,320 | $21,150 | $20,859 | $21,847 | $22,024 | $23,272 | $21,731 |
Long-term Liabilities | $15,400 | $15,100 | $14,800 | $14,500 | $14,200 | $13,900 | $13,600 | $13,300 | $13,000 | $12,700 | $12,400 | $12,100 | $11,800 |
Total Liabilities | $29,000 | $36,555 | $36,919 | $36,668 | $36,215 | $35,522 | $34,920 | $34,450 | $33,859 | $34,547 | $34,424 | $35,372 | $33,531 |
Paid-in Capital | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 |
Retained Earnings | ($26,300) | ($26,300) | ($26,300) | ($26,300) | ($26,300) | ($26,300) | ($26,300) | ($26,300) | ($26,300) | ($26,300) | ($26,300) | ($26,300) | ($26,300) |
Earnings | $0 | ($4,752) | ($9,051) | ($12,988) | ($16,157) | ($19,324) | ($22,489) | ($25,065) | ($27,280) | ($28,060) | ($25,958) | ($21,813) | ($15,927) |
Total Capital | $22,200 | $17,448 | $13,149 | $9,212 | $6,043 | $2,876 | ($289) | ($2,865) | ($5,080) | ($5,860) | ($3,758) | $387 | $6,273 |
Total Liabilities and Capital | $51,200 | $54,003 | $50,068 | $45,880 | $42,258 | $38,398 | $34,632 | $31,584 | $28,780 | $28,687 | $30,667 | $35,760 | $39,804 |
Net Worth | $22,200 | $17,448 | $13,149 | $9,212 | $6,043 | $2,876 | ($289) | ($2,865) | ($5,080) | ($5,860) | ($3,758) | $387 | $6,273 |