Web Services Provider
Appendix
Sales Forecast | |||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
Sales | |||||||||||||
All Services | 0% | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Sales | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | |
Direct Cost of Sales | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
All Services | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,337 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,337 |
Personnel Plan | |||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
Marketing and Sales | 0% | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 |
Technical Services | 0% | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 |
Accounting | 0% | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
Administrative and HR | 0% | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 |
Total People | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | |
Total Payroll | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 |
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% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
Sales | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | |
Direct Cost of Sales | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,337 | |
Other | $4,167 | $4,167 | $4,167 | $4,167 | $4,167 | $4,167 | $4,167 | $4,167 | $4,167 | $4,167 | $4,167 | $4,167 | |
Total Cost of Sales | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,504 | |
Gross Margin | $112,500 | $112,500 | $112,500 | $112,500 | $112,500 | $112,500 | $112,500 | $112,500 | $112,500 | $112,500 | $112,500 | $112,496 | |
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 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | |
Sales and Marketing and Other Expenses | $29,500 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | |
Depreciation | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | |
Repairs and Maintenance | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
Bank Charges | $167 | $167 | $167 | $167 | $167 | $167 | $167 | $167 | $167 | $167 | $167 | $167 | |
Insurance | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Rent | $1,250 | $2,500 | $2,500 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | |
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 | |
Software | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
Product Development | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
Payroll Taxes | 15% | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $105,967 | $97,717 | $97,717 | $98,967 | $98,967 | $98,967 | $98,967 | $98,967 | $98,967 | $98,967 | $98,967 | $98,967 | |
Profit Before Interest and Taxes | $6,534 | $14,784 | $14,784 | $13,534 | $13,534 | $13,534 | $13,534 | $13,534 | $13,534 | $13,534 | $13,534 | $13,530 | |
EBITDA | $6,884 | $15,134 | $15,134 | $13,884 | $13,884 | $13,884 | $13,884 | $13,884 | $13,884 | $13,884 | $13,884 | $13,880 | |
Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Taxes Incurred | $1,960 | $3,696 | $3,696 | $3,383 | $3,383 | $3,383 | $3,383 | $3,383 | $3,383 | $3,383 | $3,383 | $3,382 | |
Net Profit | $4,574 | $11,088 | $11,088 | $10,150 | $10,150 | $10,150 | $10,150 | $10,150 | $10,150 | $10,150 | $10,150 | $10,147 | |
Net Profit/Sales | 3.66% | 8.87% | 8.87% | 8.12% | 8.12% | 8.12% | 8.12% | 8.12% | 8.12% | 8.12% | 8.12% | 8.12% |
Pro Forma Cash Flow | |||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Cash from Receivables | $7,100 | $11,267 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | |
Subtotal Cash from Operations | $7,100 | $11,267 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | |
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 | $1,250,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $1,257,100 | $11,267 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | |
Expenditures | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
Expenditures from Operations | |||||||||||||
Cash Spending | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | |
Bill Payments | $12,669 | $79,859 | $73,562 | $73,594 | $74,500 | $74,500 | $74,500 | $74,500 | $74,500 | $74,500 | $74,500 | $74,500 | |
Subtotal Spent on Operations | $52,669 | $119,859 | $113,562 | $113,594 | $114,500 | $114,500 | $114,500 | $114,500 | $114,500 | $114,500 | $114,500 | $114,500 | |
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 | $500 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $10,900 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $3,550 | $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 | $150,000 | $30,000 | $30,000 | $150,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $217,619 | $149,859 | $143,562 | $263,594 | $144,500 | $144,500 | $144,500 | $144,500 | $144,500 | $144,500 | $144,500 | $144,500 | |
Net Cash Flow | $1,039,481 | ($138,593) | ($18,562) | ($138,594) | ($19,500) | ($19,500) | ($19,500) | ($19,500) | ($19,500) | ($19,500) | ($19,500) | ($19,500) | |
Cash Balance | $1,041,931 | $903,338 | $884,776 | $746,182 | $726,683 | $707,183 | $687,683 | $668,183 | $648,684 | $629,184 | $609,684 | $590,184 |
Pro Forma Balance Sheet | |||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $2,450 | $1,041,931 | $903,338 | $884,776 | $746,182 | $726,683 | $707,183 | $687,683 | $668,183 | $648,684 | $629,184 | $609,684 | $590,184 |
Accounts Receivable | $14,200 | $132,100 | $245,833 | $245,833 | $245,833 | $245,833 | $245,833 | $245,833 | $245,833 | $245,833 | $245,833 | $245,833 | $245,833 |
Other Current Assets | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 |
Total Current Assets | $17,700 | $1,175,081 | $1,150,221 | $1,131,659 | $993,066 | $973,566 | $954,066 | $934,566 | $915,067 | $895,567 | $876,067 | $856,567 | $837,068 |
Long-term Assets | |||||||||||||
Long-term Assets | $5,250 | $155,250 | $185,250 | $215,250 | $365,250 | $395,250 | $425,250 | $455,250 | $485,250 | $515,250 | $545,250 | $575,250 | $605,250 |
Accumulated Depreciation | $1,000 | $1,350 | $1,700 | $2,050 | $2,400 | $2,750 | $3,100 | $3,450 | $3,800 | $4,150 | $4,500 | $4,850 | $5,200 |
Total Long-term Assets | $4,250 | $153,900 | $183,550 | $213,200 | $362,850 | $392,500 | $422,150 | $451,800 | $481,450 | $511,100 | $540,750 | $570,400 | $600,050 |
Total Assets | $21,950 | $1,328,981 | $1,333,771 | $1,344,859 | $1,355,916 | $1,366,066 | $1,376,216 | $1,386,366 | $1,396,517 | $1,406,667 | $1,416,817 | $1,426,967 | $1,437,118 |
Liabilities and Capital | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
Current Liabilities | |||||||||||||
Accounts Payable | $10,000 | $77,407 | $71,110 | $71,110 | $72,016 | $72,016 | $72,016 | $72,016 | $72,016 | $72,016 | $72,016 | $72,016 | $72,019 |
Current Borrowing | $500 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $10,900 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $21,400 | $77,407 | $71,110 | $71,110 | $72,016 | $72,016 | $72,016 | $72,016 | $72,016 | $72,016 | $72,016 | $72,016 | $72,019 |
Long-term Liabilities | $3,550 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Liabilities | $24,950 | $77,407 | $71,110 | $71,110 | $72,016 | $72,016 | $72,016 | $72,016 | $72,016 | $72,016 | $72,016 | $72,016 | $72,019 |
Paid-in Capital | $100,000 | $1,350,000 | $1,350,000 | $1,350,000 | $1,350,000 | $1,350,000 | $1,350,000 | $1,350,000 | $1,350,000 | $1,350,000 | $1,350,000 | $1,350,000 | $1,350,000 |
Retained Earnings | ($103,000) | ($103,000) | ($103,000) | ($103,000) | ($103,000) | ($103,000) | ($103,000) | ($103,000) | ($103,000) | ($103,000) | ($103,000) | ($103,000) | ($103,000) |
Earnings | $0 | $4,574 | $15,661 | $26,749 | $36,899 | $47,050 | $57,200 | $67,350 | $77,500 | $87,651 | $97,801 | $107,951 | $118,098 |
Total Capital | ($3,000) | $1,251,574 | $1,262,661 | $1,273,749 | $1,283,899 | $1,294,050 | $1,304,200 | $1,314,350 | $1,324,500 | $1,334,651 | $1,344,801 | $1,354,951 | $1,365,098 |
Total Liabilities and Capital | $21,950 | $1,328,981 | $1,333,771 | $1,344,859 | $1,355,916 | $1,366,066 | $1,376,216 | $1,386,366 | $1,396,517 | $1,406,667 | $1,416,817 | $1,426,967 | $1,437,118 |
Net Worth | ($3,000) | $1,251,574 | $1,262,661 | $1,273,749 | $1,283,899 | $1,294,050 | $1,304,200 | $1,314,350 | $1,324,500 | $1,334,651 | $1,344,801 | $1,354,951 | $1,365,098 |