Environmental Engines
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 | |||||||||||||
| Toyota Prius | 0% | $150,000 | $180,000 | $216,000 | $259,200 | $311,040 | $373,248 | $447,898 | $537,477 | $644,973 | $773,967 | $928,760 | $1,114,513 |
| Toyota RAV4 | 0% | $70,000 | $84,000 | $100,800 | $120,960 | $145,152 | $174,182 | $209,019 | $250,823 | $300,987 | $361,185 | $433,422 | $520,106 |
| Honda | 0% | $25,000 | $30,000 | $36,000 | $43,200 | $51,840 | $62,208 | $74,650 | $89,580 | $107,495 | $128,995 | $154,793 | $185,752 |
| GM | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Mechanic Labor | 0% | $10,000 | $12,000 | $14,400 | $17,280 | $20,736 | $24,883 | $29,860 | $35,832 | $42,998 | $51,598 | $61,917 | $74,301 |
| Total Sales | $255,000 | $306,000 | $367,200 | $440,640 | $528,768 | $634,522 | $761,426 | $913,711 | $1,096,453 | $1,315,744 | $1,578,893 | $1,894,671 | |
| 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 | |
| Toyota Prius | $120,000 | $144,000 | $172,800 | $207,360 | $248,832 | $298,598 | $358,318 | $429,982 | $515,978 | $619,174 | $743,008 | $891,610 | |
| Toyota RAV4 | $56,000 | $67,200 | $80,640 | $96,768 | $116,122 | $139,346 | $167,215 | $200,658 | $240,790 | $288,948 | $346,737 | $416,085 | |
| Honda | $20,000 | $24,000 | $28,800 | $34,560 | $41,472 | $49,766 | $59,720 | $71,664 | $85,996 | $103,196 | $123,835 | $148,602 | |
| GM | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Mechanic Labor | $8,000 | $9,600 | $11,520 | $13,824 | $16,589 | $19,907 | $23,888 | $28,665 | $34,399 | $41,278 | $49,534 | $59,441 | |
| Subtotal Direct Cost of Sales | $204,000 | $244,800 | $293,760 | $352,512 | $423,014 | $507,617 | $609,141 | $730,969 | $877,163 | $1,052,595 | $1,263,114 | $1,515,737 | |
| 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 | ||
| Jack Anderson | 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 |
| Frank Lee Good | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Jim Handy | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Sales Person 1 | 0% | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 |
| Sales Person 2 | 0% | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 |
| Sales Person 3 | 0% | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 |
| Sales Person 4 | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Sales Person 5 | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Sales Person 6 | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Mechanic 1 | 0% | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 |
| Maintenance | 0% | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 |
| Secretary | 0% | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 | $1,040 |
| Mechanic 2 | 0% | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 |
| Total People | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total Payroll | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | |
| 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 | $255,000 | $306,000 | $367,200 | $440,640 | $528,768 | $634,522 | $761,426 | $913,711 | $1,096,453 | $1,315,744 | $1,578,893 | $1,894,671 | |
| Direct Cost of Sales | $204,000 | $244,800 | $293,760 | $352,512 | $423,014 | $507,617 | $609,141 | $730,969 | $877,163 | $1,052,595 | $1,263,114 | $1,515,737 | |
| Sales Commission | $12,750 | $15,300 | $18,360 | $22,032 | $26,438 | $31,726 | $38,071 | $45,686 | $54,823 | $65,787 | $78,945 | $94,734 | |
| Total Cost of Sales | $216,750 | $260,100 | $312,120 | $374,544 | $449,453 | $539,343 | $647,212 | $776,654 | $931,985 | $1,118,382 | $1,342,059 | $1,610,471 | |
| Gross Margin | $38,250 | $45,900 | $55,080 | $66,096 | $79,315 | $95,178 | $114,214 | $137,057 | $164,468 | $197,362 | $236,834 | $284,201 | |
| Gross Margin % | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | |
| Expenses | |||||||||||||
| Payroll | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | |
| Sales and Marketing and Other Expenses | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | |
| Depreciation | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | |
| Rent | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | |
| Utilities (Including costs of photovoltaic cell maintenance) | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | |
| Insurance | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Payroll Taxes | 15% | $2,190 | $2,190 | $2,190 | $2,190 | $2,190 | $2,190 | $2,190 | $2,190 | $2,190 | $2,190 | $2,190 | $2,190 |
| Licensing | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
| Total Operating Expenses | $40,690 | $40,690 | $40,690 | $40,690 | $40,690 | $40,690 | $40,690 | $40,690 | $40,690 | $40,690 | $40,690 | $40,690 | |
| Profit Before Interest and Taxes | ($2,440) | $5,210 | $14,390 | $25,406 | $38,625 | $54,488 | $73,524 | $96,367 | $123,778 | $156,672 | $196,144 | $243,511 | |
| EBITDA | ($1,240) | $6,410 | $15,590 | $26,606 | $39,825 | $55,688 | $74,724 | $97,567 | $124,978 | $157,872 | $197,344 | $244,711 | |
| Interest Expense | $28,583 | $28,000 | $27,417 | $26,833 | $26,250 | $25,667 | $25,083 | $24,500 | $23,917 | $23,333 | $22,750 | $22,167 | |
| Taxes Incurred | ($9,307) | ($6,837) | ($3,908) | ($428) | $3,713 | $8,646 | $14,532 | $21,560 | $29,958 | $40,001 | $52,018 | $66,403 | |
| Net Profit | ($21,716) | ($15,953) | ($9,119) | ($999) | $8,663 | $20,175 | $33,908 | $50,307 | $69,903 | $93,337 | $121,376 | $154,941 | |
| Net Profit/Sales | -8.52% | -5.21% | -2.48% | -0.23% | 1.64% | 3.18% | 4.45% | 5.51% | 6.38% | 7.09% | 7.69% | 8.18% | |
| 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 | $63,750 | $76,500 | $91,800 | $110,160 | $132,192 | $158,630 | $190,356 | $228,428 | $274,113 | $328,936 | $394,723 | $473,668 | |
| Cash from Receivables | $0 | $6,375 | $192,525 | $231,030 | $277,236 | $332,683 | $399,220 | $479,064 | $574,877 | $689,852 | $827,822 | $993,387 | |
| Subtotal Cash from Operations | $63,750 | $82,875 | $284,325 | $341,190 | $409,428 | $491,314 | $589,576 | $707,492 | $848,990 | $1,018,788 | $1,222,545 | $1,467,055 | |
| 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 | $63,750 | $82,875 | $284,325 | $341,190 | $409,428 | $491,314 | $589,576 | $707,492 | $848,990 | $1,018,788 | $1,222,545 | $1,467,055 | |
| 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 | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | $14,600 | |
| Bill Payments | $12,011 | $360,007 | $353,144 | $416,911 | $493,513 | $585,516 | $696,002 | $828,667 | $987,947 | $1,179,164 | $1,408,706 | $1,684,239 | |
| Subtotal Spent on Operations | $26,611 | $374,607 | $367,744 | $431,511 | $508,113 | $600,116 | $710,602 | $843,267 | $1,002,547 | $1,193,764 | $1,423,306 | $1,698,839 | |
| 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 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | |
| Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Long-term Liabilities Principal Repayment | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | |
| 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 | $96,611 | $444,607 | $437,744 | $501,511 | $578,113 | $670,116 | $780,602 | $913,267 | $1,072,547 | $1,263,764 | $1,493,306 | $1,768,839 | |
| Net Cash Flow | ($32,861) | ($361,732) | ($153,419) | ($160,321) | ($168,685) | ($178,803) | ($191,026) | ($205,776) | ($223,557) | ($244,976) | ($270,761) | ($301,784) | |
| Cash Balance | $3,577,189 | $3,215,458 | $3,062,038 | $2,901,717 | $2,733,032 | $2,554,230 | $2,363,203 | $2,157,428 | $1,933,871 | $1,688,894 | $1,418,133 | $1,116,349 | |
| 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 | $3,610,050 | $3,577,189 | $3,215,458 | $3,062,038 | $2,901,717 | $2,733,032 | $2,554,230 | $2,363,203 | $2,157,428 | $1,933,871 | $1,688,894 | $1,418,133 | $1,116,349 |
| Accounts Receivable | $0 | $191,250 | $414,375 | $497,250 | $596,700 | $716,040 | $859,248 | $1,031,098 | $1,237,317 | $1,484,781 | $1,781,737 | $2,138,084 | $2,565,701 |
| Inventory | $125,000 | $224,400 | $269,280 | $323,136 | $387,763 | $465,316 | $558,379 | $670,055 | $804,066 | $964,879 | $1,157,855 | $1,389,426 | $1,667,311 |
| Other Current Assets | $189,500 | $189,500 | $189,500 | $189,500 | $189,500 | $189,500 | $189,500 | $189,500 | $189,500 | $189,500 | $189,500 | $189,500 | $189,500 |
| Total Current Assets | $3,924,550 | $4,182,339 | $4,088,613 | $4,071,924 | $4,075,680 | $4,103,888 | $4,161,357 | $4,253,856 | $4,388,311 | $4,573,030 | $4,817,986 | $5,135,143 | $5,538,860 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $440,000 | $440,000 | $440,000 | $440,000 | $440,000 | $440,000 | $440,000 | $440,000 | $440,000 | $440,000 | $440,000 | $440,000 | $440,000 |
| Accumulated Depreciation | $0 | $1,200 | $2,400 | $3,600 | $4,800 | $6,000 | $7,200 | $8,400 | $9,600 | $10,800 | $12,000 | $13,200 | $14,400 |
| Total Long-term Assets | $440,000 | $438,800 | $437,600 | $436,400 | $435,200 | $434,000 | $432,800 | $431,600 | $430,400 | $429,200 | $428,000 | $426,800 | $425,600 |
| Total Assets | $4,364,550 | $4,621,139 | $4,526,213 | $4,508,324 | $4,510,880 | $4,537,888 | $4,594,157 | $4,685,456 | $4,818,711 | $5,002,230 | $5,245,986 | $5,561,943 | $5,964,460 |
| 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 | $348,306 | $339,332 | $400,562 | $474,117 | $562,463 | $668,556 | $795,947 | $948,895 | $1,132,511 | $1,352,930 | $1,617,512 | $1,935,088 |
| Current Borrowing | $2,000,000 | $1,970,000 | $1,940,000 | $1,910,000 | $1,880,000 | $1,850,000 | $1,820,000 | $1,790,000 | $1,760,000 | $1,730,000 | $1,700,000 | $1,670,000 | $1,640,000 |
| Other Current Liabilities | $178,000 | $178,000 | $178,000 | $178,000 | $178,000 | $178,000 | $178,000 | $178,000 | $178,000 | $178,000 | $178,000 | $178,000 | $178,000 |
| Subtotal Current Liabilities | $2,178,000 | $2,496,306 | $2,457,332 | $2,488,562 | $2,532,117 | $2,590,463 | $2,666,556 | $2,763,947 | $2,886,895 | $3,040,511 | $3,230,930 | $3,465,512 | $3,753,088 |
| Long-term Liabilities | $1,500,000 | $1,460,000 | $1,420,000 | $1,380,000 | $1,340,000 | $1,300,000 | $1,260,000 | $1,220,000 | $1,180,000 | $1,140,000 | $1,100,000 | $1,060,000 | $1,020,000 |
| Total Liabilities | $3,678,000 | $3,956,306 | $3,877,332 | $3,868,562 | $3,872,117 | $3,890,463 | $3,926,556 | $3,983,947 | $4,066,895 | $4,180,511 | $4,330,930 | $4,525,512 | $4,773,088 |
| Paid-in Capital | $1,500,000 | $1,500,000 | $1,500,000 | $1,500,000 | $1,500,000 | $1,500,000 | $1,500,000 | $1,500,000 | $1,500,000 | $1,500,000 | $1,500,000 | $1,500,000 | $1,500,000 |
| Retained Earnings | ($813,450) | ($813,450) | ($813,450) | ($813,450) | ($813,450) | ($813,450) | ($813,450) | ($813,450) | ($813,450) | ($813,450) | ($813,450) | ($813,450) | ($813,450) |
| Earnings | $0 | ($21,716) | ($37,669) | ($46,788) | ($47,787) | ($39,124) | ($18,949) | $14,959 | $65,266 | $135,169 | $228,505 | $349,881 | $504,822 |
| Total Capital | $686,550 | $664,834 | $648,881 | $639,762 | $638,763 | $647,426 | $667,601 | $701,509 | $751,816 | $821,719 | $915,055 | $1,036,431 | $1,191,372 |
| Total Liabilities and Capital | $4,364,550 | $4,621,139 | $4,526,213 | $4,508,324 | $4,510,880 | $4,537,888 | $4,594,157 | $4,685,456 | $4,818,711 | $5,002,230 | $5,245,986 | $5,561,943 | $5,964,460 |
| Net Worth | $686,550 | $664,834 | $648,881 | $639,762 | $638,763 | $647,426 | $667,601 | $701,509 | $751,816 | $821,719 | $915,055 | $1,036,431 | $1,191,372 |
By 
