Bauman's Frozen Custard
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 | |||||||||||||
| Frozen Custard | 0% | $840 | $2,550 | $3,570 | $5,610 | $6,630 | $6,120 | $4,830 | $4,410 | $3,315 | $3,315 | $3,900 | $5,040 |
| Italian Ice | 0% | $280 | $850 | $1,190 | $1,870 | $2,210 | $2,040 | $1,610 | $1,470 | $1,105 | $1,105 | $1,300 | $1,680 |
| Total Sales | $1,120 | $3,400 | $4,760 | $7,480 | $8,840 | $8,160 | $6,440 | $5,880 | $4,420 | $4,420 | $5,200 | $6,720 | |
| 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 | |
| Frozen Custard | $218 | $663 | $928 | $1,459 | $1,724 | $1,591 | $1,256 | $1,147 | $862 | $862 | $1,014 | $1,310 | |
| Italian Ice | $73 | $221 | $309 | $486 | $575 | $530 | $419 | $382 | $287 | $287 | $338 | $437 | |
| Subtotal Direct Cost of Sales | $291 | $884 | $1,238 | $1,945 | $2,298 | $2,122 | $1,674 | $1,529 | $1,149 | $1,149 | $1,352 | $1,747 | |
| 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 | ||
| Part-time employees | 0% | $0 | $994 | $994 | $994 | $994 | $994 | $426 | $426 | $426 | $426 | $426 | $994 |
| Owner – Matthew Bauman | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other Owner(s) | 0% | $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 People | 2 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | |
| Total Payroll | $1,000 | $1,994 | $1,994 | $1,994 | $1,994 | $1,994 | $1,426 | $1,426 | $1,426 | $1,426 | $1,426 | $1,994 | |
| 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 | 4.08% | 4.08% | 4.08% | 4.08% | 4.08% | 4.08% | 4.08% | 4.08% | 4.08% | 4.08% | 4.08% | 4.08% | |
| Long-term Interest Rate | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | |
| 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 | $1,120 | $3,400 | $4,760 | $7,480 | $8,840 | $8,160 | $6,440 | $5,880 | $4,420 | $4,420 | $5,200 | $6,720 | |
| Direct Cost of Sales | $291 | $884 | $1,238 | $1,945 | $2,298 | $2,122 | $1,674 | $1,529 | $1,149 | $1,149 | $1,352 | $1,747 | |
| Other Costs of Goods | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $291 | $884 | $1,238 | $1,945 | $2,298 | $2,122 | $1,674 | $1,529 | $1,149 | $1,149 | $1,352 | $1,747 | |
| Gross Margin | $829 | $2,516 | $3,522 | $5,535 | $6,542 | $6,038 | $4,766 | $4,351 | $3,271 | $3,271 | $3,848 | $4,973 | |
| Gross Margin % | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | |
| Expenses | |||||||||||||
| Payroll | $1,000 | $1,994 | $1,994 | $1,994 | $1,994 | $1,994 | $1,426 | $1,426 | $1,426 | $1,426 | $1,426 | $1,994 | |
| Sales and Marketing and Other Expenses | $1,000 | $1,000 | $1,000 | $1,000 | $800 | $800 | $800 | $350 | $350 | $350 | $350 | $350 | |
| Depreciation | $389 | $389 | $389 | $389 | $389 | $389 | $389 | $389 | $389 | $389 | $389 | $389 | |
| Rent | $1,055 | $1,055 | $1,055 | $1,055 | $1,055 | $1,055 | $1,055 | $1,055 | $1,055 | $1,055 | $1,055 | $1,055 | |
| Utilities | $900 | $1,100 | $1,300 | $1,500 | $1,500 | $1,200 | $1,000 | $800 | $700 | $700 | $800 | $900 | |
| Insurance | $141 | $141 | $141 | $141 | $141 | $141 | $141 | $141 | $141 | $141 | $141 | $141 | |
| Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $4,485 | $5,679 | $5,879 | $6,079 | $5,879 | $5,579 | $4,811 | $4,161 | $4,061 | $4,061 | $4,161 | $4,829 | |
| Profit Before Interest and Taxes | ($3,656) | ($3,163) | ($2,357) | ($544) | $663 | $459 | ($45) | $190 | ($790) | ($790) | ($313) | $144 | |
| EBITDA | ($3,267) | ($2,774) | ($1,968) | ($155) | $1,052 | $848 | $344 | $579 | ($401) | ($401) | $76 | $533 | |
| Interest Expense | $316 | $312 | $309 | $305 | $301 | $297 | $293 | $289 | $285 | $281 | $277 | $273 | |
| Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Net Profit | ($3,973) | ($3,475) | ($2,665) | ($848) | $362 | $163 | ($338) | ($99) | ($1,075) | ($1,071) | ($590) | ($129) | |
| Net Profit/Sales | -354.70% | -102.22% | -55.99% | -11.34% | 4.09% | 1.99% | -5.25% | -1.68% | -24.32% | -24.23% | -11.35% | -1.92% | |
| 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 | $1,120 | $3,400 | $4,760 | $7,480 | $8,840 | $8,160 | $6,440 | $5,880 | $4,420 | $4,420 | $5,200 | $6,720 | |
| Subtotal Cash from Operations | $1,120 | $3,400 | $4,760 | $7,480 | $8,840 | $8,160 | $6,440 | $5,880 | $4,420 | $4,420 | $5,200 | $6,720 | |
| 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 | $1,120 | $3,400 | $4,760 | $7,480 | $8,840 | $8,160 | $6,440 | $5,880 | $4,420 | $4,420 | $5,200 | $6,720 | |
| 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 | $1,000 | $1,994 | $1,994 | $1,994 | $1,994 | $1,994 | $1,426 | $1,426 | $1,426 | $1,426 | $1,426 | $1,994 | |
| Bill Payments | $147 | $4,419 | $4,630 | $5,307 | $6,715 | $6,448 | $5,388 | $4,456 | $3,988 | $3,531 | $3,545 | $4,106 | |
| Subtotal Spent on Operations | $1,147 | $6,413 | $6,624 | $7,301 | $8,709 | $8,442 | $6,814 | $5,882 | $5,414 | $4,957 | $4,971 | $6,100 | |
| 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 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | |
| Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Long-term Liabilities Principal Repayment | $583 | $583 | $583 | $583 | $583 | $583 | $583 | $583 | $583 | $583 | $583 | $583 | |
| 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 | $2,147 | $7,413 | $7,624 | $8,301 | $9,709 | $9,442 | $7,814 | $6,882 | $6,414 | $5,957 | $5,971 | $7,100 | |
| Net Cash Flow | ($1,027) | ($4,013) | ($2,864) | ($821) | ($869) | ($1,282) | ($1,374) | ($1,002) | ($1,994) | ($1,537) | ($771) | ($380) | |
| Cash Balance | $23,791 | $19,778 | $16,914 | $16,093 | $15,223 | $13,941 | $12,567 | $11,565 | $9,572 | $8,035 | $7,264 | $6,883 | |
| 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 | $24,818 | $23,791 | $19,778 | $16,914 | $16,093 | $15,223 | $13,941 | $12,567 | $11,565 | $9,572 | $8,035 | $7,264 | $6,883 |
| Inventory | $320 | $1,029 | $1,145 | $1,361 | $2,139 | $2,528 | $2,334 | $1,842 | $1,682 | $1,532 | $1,383 | $1,487 | $1,922 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $25,138 | $24,820 | $20,923 | $18,275 | $18,232 | $17,752 | $16,275 | $14,409 | $13,247 | $11,104 | $9,418 | $8,751 | $8,805 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $69,800 | $69,800 | $69,800 | $69,800 | $69,800 | $69,800 | $69,800 | $69,800 | $69,800 | $69,800 | $69,800 | $69,800 | $69,800 |
| Accumulated Depreciation | $0 | $389 | $778 | $1,167 | $1,556 | $1,945 | $2,334 | $2,723 | $3,112 | $3,501 | $3,890 | $4,279 | $4,668 |
| Total Long-term Assets | $69,800 | $69,411 | $69,022 | $68,633 | $68,244 | $67,855 | $67,466 | $67,077 | $66,688 | $66,299 | $65,910 | $65,521 | $65,132 |
| Total Assets | $94,938 | $94,231 | $89,945 | $86,908 | $86,476 | $85,607 | $83,741 | $81,486 | $79,935 | $77,403 | $75,328 | $74,272 | $73,937 |
| 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 | $4,265 | $4,455 | $5,083 | $6,499 | $6,268 | $5,239 | $4,322 | $3,870 | $3,413 | $3,409 | $3,943 | $4,738 |
| Current Borrowing | $5,000 | $4,583 | $4,167 | $3,750 | $3,333 | $2,917 | $2,500 | $2,083 | $1,667 | $1,250 | $833 | $417 | $0 |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $5,000 | $8,849 | $8,621 | $8,833 | $9,832 | $9,185 | $7,739 | $6,405 | $5,537 | $4,663 | $4,243 | $4,360 | $4,738 |
| Long-term Liabilities | $70,000 | $69,417 | $68,833 | $68,250 | $67,667 | $67,083 | $66,500 | $65,917 | $65,333 | $64,750 | $64,167 | $63,583 | $63,000 |
| Total Liabilities | $75,000 | $78,265 | $77,455 | $77,083 | $77,499 | $76,268 | $74,239 | $72,322 | $70,870 | $69,413 | $68,409 | $67,943 | $67,738 |
| Paid-in Capital | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 |
| Retained Earnings | ($5,062) | ($5,062) | ($5,062) | ($5,062) | ($5,062) | ($5,062) | ($5,062) | ($5,062) | ($5,062) | ($5,062) | ($5,062) | ($5,062) | ($5,062) |
| Earnings | $0 | ($3,973) | ($7,448) | ($10,113) | ($10,961) | ($10,600) | ($10,437) | ($10,775) | ($10,873) | ($11,949) | ($13,020) | ($13,610) | ($13,739) |
| Total Capital | $19,938 | $15,966 | $12,490 | $9,825 | $8,977 | $9,339 | $9,502 | $9,163 | $9,065 | $7,990 | $6,919 | $6,329 | $6,200 |
| Total Liabilities and Capital | $94,938 | $94,231 | $89,945 | $86,908 | $86,476 | $85,607 | $83,741 | $81,486 | $79,935 | $77,403 | $75,328 | $74,272 | $73,937 |
| Net Worth | $19,938 | $15,966 | $12,490 | $9,825 | $8,977 | $9,339 | $9,502 | $9,163 | $9,065 | $7,990 | $6,919 | $6,329 | $6,200 |
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