Equipment Rental
Appendix
| Sales Forecast | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Sales | |||||||||||||
| Sales and Rentals | 0% | $10,000 | $10,000 | $11,200 | $14,400 | $17,500 | $20,400 | $28,000 | $29,000 | $26,000 | $18,500 | $15,000 | $10,000 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Sales | $10,000 | $10,000 | $11,200 | $14,400 | $17,500 | $20,400 | $28,000 | $29,000 | $26,000 | $18,500 | $15,000 | $10,000 | |
| Direct Cost of Sales | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
| Sales and Rentals | $1,500 | $1,500 | $1,680 | $2,160 | $2,625 | $3,060 | $4,200 | $4,350 | $3,900 | $2,775 | $2,250 | $1,500 | |
| Other | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
| Subtotal Direct Cost of Sales | $1,750 | $1,750 | $1,930 | $2,410 | $2,875 | $3,310 | $4,450 | $4,600 | $4,150 | $3,025 | $2,500 | $1,750 | |
| Personnel Plan | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Sales/Rental Associate | 0% | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 |
| Sales/Rental Associate | 0% | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 |
| Sales/Rental Associate | 0% | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 |
| Maintenance/Technician | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Maintenance Technician | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total People | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | |
| Total Payroll | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | |
| Pro Forma Profit and Loss | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Sales | $10,000 | $10,000 | $11,200 | $14,400 | $17,500 | $20,400 | $28,000 | $29,000 | $26,000 | $18,500 | $15,000 | $10,000 | |
| Direct Cost of Sales | $1,750 | $1,750 | $1,930 | $2,410 | $2,875 | $3,310 | $4,450 | $4,600 | $4,150 | $3,025 | $2,500 | $1,750 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,000 | $750 | $500 | $750 | |
| Total Cost of Sales | $1,750 | $1,750 | $1,930 | $2,410 | $2,875 | $3,310 | $4,450 | $4,600 | $5,150 | $3,775 | $3,000 | $2,500 | |
| Gross Margin | $8,250 | $8,250 | $9,270 | $11,990 | $14,625 | $17,090 | $23,550 | $24,400 | $20,850 | $14,725 | $12,000 | $7,500 | |
| Gross Margin % | 82.50% | 82.50% | 82.77% | 83.26% | 83.57% | 83.77% | 84.11% | 84.14% | 80.19% | 79.59% | 80.00% | 75.00% | |
| Expenses | |||||||||||||
| Payroll | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | |
| Sales and Marketing and Other Expenses | $917 | $917 | $917 | $2,417 | $2,417 | $917 | $917 | $917 | $917 | $917 | $917 | $917 | |
| Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Supplies and equipment | $827 | $827 | $827 | $827 | $827 | $827 | $827 | $827 | $827 | $827 | $827 | $827 | |
| Utilities | $134 | $134 | $134 | $134 | $134 | $134 | $134 | $134 | $134 | $134 | $134 | $134 | |
| Telephone | $651 | $651 | $651 | $651 | $651 | $651 | $651 | $651 | $651 | $651 | $651 | $651 | |
| Insurance | $1,204 | $1,204 | $1,204 | $1,204 | $1,204 | $1,204 | $1,204 | $1,204 | $1,204 | $1,204 | $1,204 | $1,204 | |
| Repairs and Maintenance | $911 | $911 | $911 | $911 | $911 | $911 | $911 | $911 | $911 | $911 | $911 | $911 | |
| Services | $236 | $236 | $236 | $236 | $236 | $236 | $236 | $236 | $236 | $236 | $236 | $236 | |
| Rent | $1,035 | $1,035 | $1,035 | $1,035 | $1,035 | $1,035 | $1,035 | $1,035 | $1,035 | $1,035 | $1,035 | $1,035 | |
| Payroll Taxes | 15% | $720 | $720 | $720 | $720 | $720 | $720 | $720 | $720 | $720 | $720 | $720 | $720 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $11,434 | $11,434 | $11,434 | $12,934 | $12,934 | $11,434 | $11,434 | $11,434 | $11,434 | $11,434 | $11,434 | $11,434 | |
| Profit Before Interest and Taxes | ($3,184) | ($3,184) | ($2,164) | ($944) | $1,691 | $5,656 | $12,116 | $12,966 | $9,416 | $3,291 | $566 | ($3,934) | |
| EBITDA | ($3,184) | ($3,184) | ($2,164) | ($944) | $1,691 | $5,656 | $12,116 | $12,966 | $9,416 | $3,291 | $566 | ($3,934) | |
| Interest Expense | $2,663 | $2,663 | $2,663 | $2,643 | $2,623 | $2,604 | $2,584 | $2,565 | $2,442 | $2,296 | $2,151 | $2,043 | |
| Taxes Incurred | ($1,754) | ($1,754) | ($1,448) | ($1,076) | ($280) | $916 | $2,860 | $3,120 | $2,092 | $298 | ($476) | ($1,793) | |
| Net Profit | ($4,093) | ($4,093) | ($3,379) | ($2,511) | ($653) | $2,136 | $6,672 | $7,281 | $4,882 | $696 | ($1,110) | ($4,184) | |
| Net Profit/Sales | -40.93% | -40.93% | -30.17% | -17.44% | -3.73% | 10.47% | 23.83% | 25.11% | 18.78% | 3.76% | -7.40% | -41.84% | |
| Pro Forma Cash Flow | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Cash Received | |||||||||||||
| Cash from Operations | |||||||||||||
| Cash Sales | $2,000 | $2,000 | $2,240 | $2,880 | $3,500 | $4,080 | $5,600 | $5,800 | $5,200 | $3,700 | $3,000 | $2,000 | |
| Cash from Receivables | $4,500 | $4,767 | $8,000 | $8,032 | $9,045 | $11,603 | $14,077 | $16,523 | $22,427 | $23,120 | $20,600 | $14,707 | |
| Subtotal Cash from Operations | $6,500 | $6,767 | $10,240 | $10,912 | $12,545 | $15,683 | $19,677 | $22,323 | $27,627 | $26,820 | $23,600 | $16,707 | |
| 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 | $149,000 | $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 | $151,000 | $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 | $306,500 | $6,767 | $10,240 | $10,912 | $12,545 | $15,683 | $19,677 | $22,323 | $27,627 | $26,820 | $23,600 | $16,707 | |
| Expenditures | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
| Expenditures from Operations | |||||||||||||
| Cash Spending | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | |
| Bill Payments | $9,251 | $7,543 | $7,553 | $7,910 | $9,727 | $10,467 | $10,363 | $16,469 | $17,042 | $15,688 | $11,732 | $10,662 | |
| Subtotal Spent on Operations | $14,051 | $12,343 | $12,353 | $12,710 | $14,527 | $15,267 | $15,163 | $21,269 | $21,842 | $20,488 | $16,532 | $15,462 | |
| 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 | $12,416 | $12,416 | $12,416 | $8,000 | |
| Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $2,350 | $2,350 | $2,350 | $2,350 | $2,350 | $2,350 | $5,000 | $5,000 | $5,000 | |
| Purchase Other Current Assets | $10,000 | $12,000 | $25,000 | $4,000 | $7,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Purchase Long-term Assets | $0 | $30,000 | $27,000 | $34,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Dividends | $5,417 | $5,417 | $5,417 | $5,417 | $5,417 | $5,417 | $5,417 | $5,417 | $5,417 | $5,417 | $5,417 | $5,417 | |
| Subtotal Cash Spent | $29,468 | $59,759 | $69,770 | $58,477 | $29,294 | $23,034 | $22,930 | $29,036 | $42,025 | $43,320 | $39,365 | $33,879 | |
| Net Cash Flow | $277,032 | ($52,993) | ($59,530) | ($47,565) | ($16,748) | ($7,351) | ($3,253) | ($6,713) | ($14,398) | ($16,500) | ($15,765) | ($17,172) | |
| Cash Balance | $279,532 | $226,539 | $167,010 | $119,445 | $102,697 | $95,346 | $92,093 | $85,380 | $70,982 | $54,481 | $38,717 | $21,544 | |
| 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 Balance Sheet | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Assets | Starting Balances | ||||||||||||
| Current Assets | |||||||||||||
| Cash | $2,500 | $279,532 | $226,539 | $167,010 | $119,445 | $102,697 | $95,346 | $92,093 | $85,380 | $70,982 | $54,481 | $38,717 | $21,544 |
| Accounts Receivable | $9,000 | $12,500 | $15,733 | $16,693 | $20,181 | $25,136 | $29,853 | $38,176 | $44,853 | $43,227 | $34,907 | $26,307 | $19,600 |
| Inventory | $19,000 | $17,250 | $15,500 | $13,570 | $11,160 | $8,285 | $4,975 | $4,895 | $5,060 | $4,565 | $3,328 | $2,750 | $2,000 |
| Other Current Assets | $6,000 | $16,000 | $28,000 | $53,000 | $57,000 | $64,000 | $64,000 | $64,000 | $64,000 | $64,000 | $64,000 | $64,000 | $64,000 |
| Total Current Assets | $36,500 | $325,282 | $285,773 | $250,273 | $207,786 | $200,118 | $194,174 | $199,164 | $199,293 | $182,773 | $156,716 | $131,773 | $107,144 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $8,000 | $8,000 | $38,000 | $65,000 | $99,000 | $99,000 | $99,000 | $99,000 | $99,000 | $99,000 | $99,000 | $99,000 | $99,000 |
| Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Long-term Assets | $8,000 | $8,000 | $38,000 | $65,000 | $99,000 | $99,000 | $99,000 | $99,000 | $99,000 | $99,000 | $99,000 | $99,000 | $99,000 |
| Total Assets | $44,500 | $333,282 | $323,773 | $315,273 | $306,786 | $299,118 | $293,174 | $298,164 | $298,293 | $281,773 | $255,716 | $230,773 | $206,144 |
| Liabilities and Capital | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
| Current Liabilities | |||||||||||||
| Accounts Payable | $9,000 | $7,291 | $7,291 | $7,587 | $9,378 | $10,128 | $9,815 | $15,900 | $16,515 | $15,296 | $11,374 | $10,375 | $8,346 |
| Current Borrowing | $9,500 | $158,500 | $158,500 | $158,500 | $158,500 | $158,500 | $158,500 | $158,500 | $158,500 | $146,084 | $133,668 | $121,252 | $113,252 |
| Other Current Liabilities | $3,700 | $3,700 | $3,700 | $3,700 | $3,700 | $3,700 | $3,700 | $3,700 | $3,700 | $3,700 | $3,700 | $3,700 | $3,700 |
| Subtotal Current Liabilities | $22,200 | $169,491 | $169,491 | $169,787 | $171,578 | $172,328 | $172,015 | $178,100 | $178,715 | $165,080 | $148,742 | $135,327 | $125,298 |
| Long-term Liabilities | $10,000 | $161,000 | $161,000 | $161,000 | $158,650 | $156,300 | $153,950 | $151,600 | $149,250 | $146,900 | $141,900 | $136,900 | $131,900 |
| Total Liabilities | $32,200 | $330,491 | $330,491 | $330,787 | $330,228 | $328,628 | $325,965 | $329,700 | $327,965 | $311,980 | $290,642 | $272,227 | $257,198 |
| Paid-in Capital | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Retained Earnings | $12,300 | $6,883 | $1,467 | ($3,950) | ($9,367) | ($14,783) | ($20,200) | ($25,617) | ($31,033) | ($36,450) | ($41,867) | ($47,283) | ($52,700) |
| Earnings | $0 | ($4,093) | ($8,185) | ($11,564) | ($14,075) | ($14,728) | ($12,591) | ($5,919) | $1,362 | $6,244 | $6,940 | $5,830 | $1,646 |
| Total Capital | $12,300 | $2,791 | ($6,719) | ($15,514) | ($23,442) | ($29,511) | ($32,791) | ($31,536) | ($29,671) | ($30,206) | ($34,927) | ($41,453) | ($51,054) |
| Total Liabilities and Capital | $44,500 | $333,282 | $323,773 | $315,273 | $306,786 | $299,118 | $293,174 | $298,164 | $298,293 | $281,773 | $255,716 | $230,773 | $206,144 |
| Net Worth | $12,300 | $2,791 | ($6,719) | ($15,514) | ($23,442) | ($29,511) | ($32,791) | ($31,536) | ($29,671) | ($30,206) | ($34,927) | ($41,453) | ($51,054) |
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