Ereidi Farm
Appendix
| Sales Forecast | |||||||||||||
| May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | ||
| Sales | |||||||||||||
| Training | 0% | $0 | $0 | $0 | $0 | $7,200 | $12,000 | $18,000 | $24,000 | $24,000 | $24,000 | $24,000 | $24,000 |
| Broodmare w/foal | 0% | $0 | $660 | $660 | $1,320 | $2,880 | $5,760 | $7,200 | $8,640 | $8,640 | $8,640 | $8,640 | $8,640 |
| Boarding other | 0% | $1,070 | $650 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $600 | $1,800 | $6,000 | $6,000 | $6,000 |
| Home-grown sales | 0% | $2,000 | $0 | $0 | $0 | $6,000 | $0 | $0 | $10,000 | $0 | $0 | $0 | $0 |
| Total Sales | $3,070 | $1,310 | $1,710 | $2,370 | $17,130 | $18,810 | $26,250 | $43,240 | $34,440 | $38,640 | $38,640 | $38,640 | |
| Direct Cost of Sales | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | |
| Training | $0 | $0 | $0 | $0 | $600 | $1,000 | $1,500 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
| Broodmare w/foal | $0 | $100 | $100 | $100 | $400 | $800 | $1,000 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | |
| Boarding other | $300 | $200 | $300 | $300 | $300 | $300 | $300 | $100 | $300 | $1,000 | $1,000 | $1,000 | |
| Home-grown sales | $0 | $8,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $300 | $8,300 | $400 | $400 | $1,300 | $2,100 | $2,800 | $3,300 | $3,500 | $4,200 | $4,200 | $4,200 | |
| Personnel Plan | |||||||||||||
| May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | ||
| Owner | 0% | $0 | $0 | $0 | $0 | $0 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
| Head Trainer | 0% | $0 | $0 | $0 | $0 | $0 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
| Groom 1 | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $1,203 | $1,203 | $1,203 | $1,203 | $1,203 | $1,203 |
| Groom 2 | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,203 | $1,203 | $1,203 | $1,203 |
| Total People | 0 | 0 | 0 | 0 | 0 | 2 | 3 | 3 | 4 | 4 | 4 | 4 | |
| Total Payroll | $0 | $0 | $0 | $0 | $0 | $4,000 | $5,203 | $5,203 | $6,406 | $6,406 | $6,406 | $6,406 | |
| General Assumptions | |||||||||||||
| May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | ||
| Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
| Current Interest Rate | 5.50% | 5.50% | 5.50% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | |
| Long-term Interest Rate | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | |
| Tax Rate | 30.00% | 23.00% | 23.00% | 23.00% | 23.00% | 23.00% | 23.00% | 23.00% | 23.00% | 23.00% | 23.00% | 23.00% | |
| Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Pro Forma Profit and Loss | |||||||||||||
| May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | ||
| Sales | $3,070 | $1,310 | $1,710 | $2,370 | $17,130 | $18,810 | $26,250 | $43,240 | $34,440 | $38,640 | $38,640 | $38,640 | |
| Direct Cost of Sales | $300 | $8,300 | $400 | $400 | $1,300 | $2,100 | $2,800 | $3,300 | $3,500 | $4,200 | $4,200 | $4,200 | |
| Other Costs of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $300 | $8,300 | $400 | $400 | $1,300 | $2,100 | $2,800 | $3,300 | $3,500 | $4,200 | $4,200 | $4,200 | |
| Gross Margin | $2,770 | ($6,990) | $1,310 | $1,970 | $15,830 | $16,710 | $23,450 | $39,940 | $30,940 | $34,440 | $34,440 | $34,440 | |
| Gross Margin % | 90.23% | -533.59% | 76.61% | 83.12% | 92.41% | 88.84% | 89.33% | 92.37% | 89.84% | 89.13% | 89.13% | 89.13% | |
| Expenses | |||||||||||||
| Payroll | $0 | $0 | $0 | $0 | $0 | $4,000 | $5,203 | $5,203 | $6,406 | $6,406 | $6,406 | $6,406 | |
| Sales and Marketing and Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Depreciation | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Rent | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $600 | $780 | $780 | $961 | $961 | $961 | $961 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $200 | $200 | $200 | $200 | $200 | $4,800 | $6,183 | $6,183 | $7,567 | $7,567 | $7,567 | $7,567 | |
| Profit Before Interest and Taxes | $2,570 | ($7,190) | $1,110 | $1,770 | $15,630 | $11,910 | $17,267 | $33,757 | $23,373 | $26,873 | $26,873 | $26,873 | |
| EBITDA | $2,770 | ($6,990) | $1,310 | $1,970 | $15,830 | $12,110 | $17,467 | $33,957 | $23,573 | $27,073 | $27,073 | $27,073 | |
| Interest Expense | $1,185 | $1,185 | $1,185 | $1,191 | $1,191 | $1,191 | $1,191 | $1,191 | $1,191 | $1,191 | $1,191 | $1,191 | |
| Taxes Incurred | $415 | ($1,926) | ($17) | $133 | $3,321 | $2,465 | $3,697 | $7,490 | $5,102 | $5,907 | $5,907 | $5,907 | |
| Net Profit | $969 | ($6,449) | ($58) | $446 | $11,118 | $8,254 | $12,378 | $25,076 | $17,080 | $19,775 | $19,775 | $19,775 | |
| Net Profit/Sales | 31.57% | -492.30% | -3.40% | 18.82% | 64.90% | 43.88% | 47.16% | 57.99% | 49.59% | 51.18% | 51.18% | 51.18% | |
| Pro Forma Cash Flow | |||||||||||||
| May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | ||
| Cash Received | |||||||||||||
| Cash from Operations | |||||||||||||
| Cash Sales | $2,610 | $1,114 | $1,454 | $2,015 | $14,561 | $15,989 | $22,313 | $36,754 | $29,274 | $32,844 | $32,844 | $32,844 | |
| Cash from Receivables | $6,469 | $6,484 | $452 | $199 | $260 | $429 | $2,578 | $2,859 | $4,022 | $6,442 | $5,187 | $5,796 | |
| Subtotal Cash from Operations | $9,078 | $7,597 | $1,905 | $2,213 | $14,820 | $16,418 | $24,890 | $39,613 | $33,296 | $39,286 | $38,031 | $38,640 | |
| 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 | $9,078 | $7,597 | $1,905 | $2,213 | $14,820 | $16,418 | $24,890 | $39,613 | $33,296 | $39,286 | $38,031 | $38,640 | |
| Expenditures | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | |
| Expenditures from Operations | |||||||||||||
| Cash Spending | $0 | $0 | $0 | $0 | $0 | $4,000 | $5,203 | $5,203 | $6,406 | $6,406 | $6,406 | $6,406 | |
| Bill Payments | $63 | $2,089 | $7,359 | $1,573 | $1,860 | $5,830 | $6,427 | $8,612 | $12,694 | $10,804 | $12,259 | $12,259 | |
| Subtotal Spent on Operations | $63 | $2,089 | $7,359 | $1,573 | $1,860 | $9,830 | $11,630 | $13,815 | $19,100 | $17,210 | $18,665 | $18,665 | |
| 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 | $63 | $2,089 | $7,359 | $1,573 | $1,860 | $9,830 | $11,630 | $13,815 | $19,100 | $17,210 | $18,665 | $18,665 | |
| Net Cash Flow | $9,015 | $5,508 | ($5,454) | $640 | $12,960 | $6,588 | $13,261 | $25,798 | $14,196 | $22,076 | $19,366 | $19,975 | |
| Cash Balance | $12,297 | $17,805 | $12,350 | $12,990 | $25,950 | $32,538 | $45,799 | $71,597 | $85,793 | $107,869 | $127,235 | $147,210 | |
| Pro Forma Balance Sheet | |||||||||||||
| May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | ||
| Assets | Starting Balances | ||||||||||||
| Current Assets | |||||||||||||
| Cash | $3,282 | $12,297 | $17,805 | $12,350 | $12,990 | $25,950 | $32,538 | $45,799 | $71,597 | $85,793 | $107,869 | $127,235 | $147,210 |
| Accounts Receivable | $12,937 | $6,929 | $642 | $446 | $603 | $2,913 | $5,305 | $6,665 | $10,292 | $11,436 | $10,790 | $11,399 | $11,399 |
| Other Current Assets | $87,684 | $87,684 | $87,684 | $87,684 | $87,684 | $87,684 | $87,684 | $87,684 | $87,684 | $87,684 | $87,684 | $87,684 | $87,684 |
| Total Current Assets | $103,903 | $106,910 | $106,130 | $100,481 | $101,278 | $116,547 | $125,527 | $140,148 | $169,573 | $184,912 | $206,343 | $226,318 | $246,293 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $490,000 | $490,000 | $490,000 | $490,000 | $490,000 | $490,000 | $490,000 | $490,000 | $490,000 | $490,000 | $490,000 | $490,000 | $490,000 |
| Accumulated Depreciation | $2,800 | $3,000 | $3,200 | $3,400 | $3,600 | $3,800 | $4,000 | $4,200 | $4,400 | $4,600 | $4,800 | $5,000 | $5,200 |
| Total Long-term Assets | $487,200 | $487,000 | $486,800 | $486,600 | $486,400 | $486,200 | $486,000 | $485,800 | $485,600 | $485,400 | $485,200 | $485,000 | $484,800 |
| Total Assets | $591,103 | $593,910 | $592,930 | $587,081 | $587,678 | $602,747 | $611,527 | $625,948 | $655,173 | $670,312 | $691,543 | $711,318 | $731,093 |
| Liabilities and Capital | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | |
| Current Liabilities | |||||||||||||
| Accounts Payable | $0 | $1,837 | $7,307 | $1,516 | $1,667 | $5,618 | $6,144 | $8,186 | $12,336 | $10,395 | $11,850 | $11,850 | $11,850 |
| Current Borrowing | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $13,000 | $14,837 | $20,307 | $14,516 | $14,667 | $18,618 | $19,144 | $21,186 | $25,336 | $23,395 | $24,850 | $24,850 | $24,850 |
| Long-term Liabilities | $193,000 | $193,000 | $193,000 | $193,000 | $193,000 | $193,000 | $193,000 | $193,000 | $193,000 | $193,000 | $193,000 | $193,000 | $193,000 |
| Total Liabilities | $206,000 | $207,837 | $213,307 | $207,516 | $207,667 | $211,618 | $212,144 | $214,186 | $218,336 | $216,395 | $217,850 | $217,850 | $217,850 |
| Paid-in Capital | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Retained Earnings | $385,103 | $385,103 | $385,103 | $385,103 | $385,103 | $385,103 | $385,103 | $385,103 | $385,103 | $385,103 | $385,103 | $385,103 | $385,103 |
| Earnings | $0 | $969 | ($5,480) | ($5,538) | ($5,092) | $6,026 | $14,280 | $26,658 | $51,734 | $68,814 | $88,590 | $108,365 | $128,140 |
| Total Capital | $385,103 | $386,072 | $379,623 | $379,565 | $380,011 | $391,129 | $399,383 | $411,761 | $436,837 | $453,917 | $473,693 | $493,468 | $513,243 |
| Total Liabilities and Capital | $591,103 | $593,910 | $592,930 | $587,081 | $587,678 | $602,747 | $611,527 | $625,948 | $655,173 | $670,312 | $691,543 | $711,318 | $731,093 |
| Net Worth | $385,103 | $386,072 | $379,623 | $379,565 | $380,011 | $391,129 | $399,383 | $411,761 | $436,837 | $453,917 | $473,693 | $493,468 | $513,243 |
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