By 
Our biggest savings of the year
Web Solutions, Inc.
Appendix
| Sales Forecast | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Sales | |||||||||||||
| Dialup Internet Access | 0% | $98,250 | $98,500 | $97,250 | $98,250 | $96,250 | $96,250 | $96,250 | $96,250 | $96,250 | $96,250 | $93,000 | $92,250 |
| High-bandwidth Internet Access | 0% | $9,250 | $9,750 | $9,500 | $9,250 | $8,750 | $8,750 | $8,750 | $8,750 | $8,750 | $8,750 | $7,750 | $7,000 |
| Website and Virtual Domain Hosting | 0% | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 |
| Network Services | 0% | $8,000 | $8,000 | $7,000 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $5,000 | $3,250 |
| Server Colocation | 0% | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 |
| Other | 0% | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 |
| Total Sales | $129,250 | $130,000 | $127,500 | $127,500 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $119,500 | $116,250 | |
| Direct Cost of Sales | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
| Dialup Internet Access | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | |
| High-bandwidth Internet Access | $0 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
| Website and Virtual Domain Hosting | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | |
| Network Services | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Server Colocation | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Other | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Subtotal Direct Cost of Sales | $4,633 | $6,633 | $6,633 | $6,633 | $6,633 | $6,633 | $6,633 | $6,633 | $6,633 | $6,633 | $6,633 | $6,633 | |
| Personnel Plan | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Donald Williams | 0% | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
| Amy Williams | 0% | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
| Geena James | 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 |
| Dialup Services Manager | 0% | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 |
| R & D Manager | 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 |
| R & D Researcher | 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 |
| Technical Support Personnel | 0% | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 |
| Technical Support Personnel | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 |
| Total People | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | |
| Total Payroll | $24,350 | $24,350 | $24,350 | $24,350 | $24,350 | $24,350 | $26,950 | $26,950 | $26,950 | $26,950 | $26,950 | $26,950 | |
| 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 | $129,250 | $130,000 | $127,500 | $127,500 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $119,500 | $116,250 | |
| Direct Cost of Sales | $4,633 | $6,633 | $6,633 | $6,633 | $6,633 | $6,633 | $6,633 | $6,633 | $6,633 | $6,633 | $6,633 | $6,633 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $4,633 | $6,633 | $6,633 | $6,633 | $6,633 | $6,633 | $6,633 | $6,633 | $6,633 | $6,633 | $6,633 | $6,633 | |
| Gross Margin | $124,617 | $123,367 | $120,867 | $120,867 | $118,367 | $118,367 | $118,367 | $118,367 | $118,367 | $118,367 | $112,867 | $109,617 | |
| Gross Margin % | 96.42% | 94.90% | 94.80% | 94.80% | 94.69% | 94.69% | 94.69% | 94.69% | 94.69% | 94.69% | 94.45% | 94.29% | |
| Expenses | |||||||||||||
| Payroll | $24,350 | $24,350 | $24,350 | $24,350 | $24,350 | $24,350 | $26,950 | $26,950 | $26,950 | $26,950 | $26,950 | $26,950 | |
| Sales and Marketing and Other Expenses | $3,456 | $3,456 | $3,456 | $3,456 | $3,456 | $3,456 | $3,456 | $3,456 | $3,456 | $3,456 | $3,456 | $3,456 | |
| Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Legal Fees | $25 | $25 | $25 | $25 | $25 | $25 | $25 | $25 | $25 | $25 | $25 | $25 | |
| Utilities | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
| Insurance | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | |
| Mortgage | $5,600 | $5,600 | $5,600 | $5,600 | $5,600 | $5,600 | $5,600 | $5,600 | $5,600 | $5,600 | $5,600 | $5,600 | |
| Payroll Taxes | 15% | $3,653 | $3,653 | $3,653 | $3,653 | $3,653 | $3,653 | $4,043 | $4,043 | $4,043 | $4,043 | $4,043 | $4,043 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $37,733 | $37,733 | $37,733 | $37,733 | $37,733 | $37,733 | $40,723 | $40,723 | $40,723 | $40,723 | $40,723 | $40,723 | |
| Profit Before Interest and Taxes | $86,884 | $85,634 | $83,134 | $83,134 | $80,634 | $80,634 | $77,644 | $77,644 | $77,644 | $77,644 | $72,144 | $68,894 | |
| EBITDA | $86,884 | $85,634 | $83,134 | $83,134 | $80,634 | $80,634 | $77,644 | $77,644 | $77,644 | $77,644 | $72,144 | $68,894 | |
| Interest Expense | $5,990 | $5,844 | $5,698 | $5,553 | $5,407 | $5,261 | $5,115 | $4,969 | $4,823 | $4,678 | $4,532 | $4,386 | |
| Taxes Incurred | $24,268 | $19,947 | $19,359 | $19,395 | $18,807 | $18,843 | $18,132 | $18,169 | $18,205 | $18,242 | $16,903 | $16,127 | |
| Net Profit | $56,626 | $59,842 | $58,077 | $58,186 | $56,420 | $56,530 | $54,397 | $54,506 | $54,615 | $54,725 | $50,709 | $48,381 | |
| Net Profit/Sales | 43.81% | 46.03% | 45.55% | 45.64% | 45.14% | 45.22% | 43.52% | 43.60% | 43.69% | 43.78% | 42.43% | 41.62% | |
| Pro Forma Cash Flow | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Cash Received | |||||||||||||
| Cash from Operations | |||||||||||||
| Cash Sales | $109,863 | $110,500 | $108,375 | $108,375 | $106,250 | $106,250 | $106,250 | $106,250 | $106,250 | $106,250 | $101,575 | $98,813 | |
| Cash from Receivables | $11,750 | $12,396 | $19,391 | $19,488 | $19,125 | $19,113 | $18,750 | $18,750 | $18,750 | $18,750 | $18,750 | $18,723 | |
| Subtotal Cash from Operations | $121,613 | $122,896 | $127,766 | $127,863 | $125,375 | $125,363 | $125,000 | $125,000 | $125,000 | $125,000 | $120,325 | $117,535 | |
| 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 | $121,613 | $122,896 | $127,766 | $127,863 | $125,375 | $125,363 | $125,000 | $125,000 | $125,000 | $125,000 | $120,325 | $117,535 | |
| Expenditures | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
| Expenditures from Operations | |||||||||||||
| Cash Spending | $24,350 | $24,350 | $24,350 | $24,350 | $24,350 | $24,350 | $26,950 | $26,950 | $26,950 | $26,950 | $26,950 | $26,950 | |
| Bill Payments | $72,297 | $48,192 | $45,783 | $45,070 | $44,940 | $44,226 | $44,105 | $43,650 | $43,540 | $43,431 | $43,276 | $41,810 | |
| Subtotal Spent on Operations | $96,647 | $72,542 | $70,133 | $69,420 | $69,290 | $68,576 | $71,055 | $70,600 | $70,490 | $70,381 | $70,226 | $68,760 | |
| 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 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | |
| Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Long-term Liabilities Principal Repayment | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | |
| 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 | $114,147 | $90,042 | $87,633 | $86,920 | $86,790 | $86,076 | $88,555 | $88,100 | $87,990 | $87,881 | $87,726 | $86,260 | |
| Net Cash Flow | $7,466 | $32,854 | $40,133 | $40,943 | $38,585 | $39,286 | $36,445 | $36,900 | $37,010 | $37,119 | $32,599 | $31,275 | |
| Cash Balance | $120,078 | $152,932 | $193,065 | $234,008 | $272,593 | $311,880 | $348,325 | $385,225 | $422,235 | $459,354 | $491,953 | $523,228 | |
| Pro Forma Balance Sheet | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Assets | Starting Balances | ||||||||||||
| Current Assets | |||||||||||||
| Cash | $112,613 | $120,078 | $152,932 | $193,065 | $234,008 | $272,593 | $311,880 | $348,325 | $385,225 | $422,235 | $459,354 | $491,953 | $523,228 |
| Accounts Receivable | $23,500 | $31,138 | $38,241 | $37,975 | $37,613 | $37,238 | $36,875 | $36,875 | $36,875 | $36,875 | $36,875 | $36,050 | $34,765 |
| Other Current Assets | $34,650 | $34,650 | $34,650 | $34,650 | $34,650 | $34,650 | $34,650 | $34,650 | $34,650 | $34,650 | $34,650 | $34,650 | $34,650 |
| Total Current Assets | $170,763 | $185,866 | $225,824 | $265,690 | $306,271 | $344,481 | $383,405 | $419,850 | $456,750 | $493,760 | $530,879 | $562,653 | $592,643 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $331,650 | $331,650 | $331,650 | $331,650 | $331,650 | $331,650 | $331,650 | $331,650 | $331,650 | $331,650 | $331,650 | $331,650 | $331,650 |
| Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Long-term Assets | $331,650 | $331,650 | $331,650 | $331,650 | $331,650 | $331,650 | $331,650 | $331,650 | $331,650 | $331,650 | $331,650 | $331,650 | $331,650 |
| Total Assets | $502,413 | $517,516 | $557,474 | $597,340 | $637,921 | $676,131 | $715,055 | $751,500 | $788,400 | $825,410 | $862,529 | $894,303 | $924,293 |
| Liabilities and Capital | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
| Current Liabilities | |||||||||||||
| Accounts Payable | $70,688 | $46,665 | $44,281 | $43,571 | $43,465 | $42,755 | $42,650 | $42,198 | $42,093 | $41,987 | $41,881 | $40,446 | $39,555 |
| Current Borrowing | $90,337 | $85,337 | $80,337 | $75,337 | $70,337 | $65,337 | $60,337 | $55,337 | $50,337 | $45,337 | $40,337 | $35,337 | $30,337 |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $161,025 | $132,002 | $124,618 | $118,908 | $113,802 | $108,092 | $102,987 | $97,535 | $92,430 | $87,324 | $82,218 | $75,783 | $69,892 |
| Long-term Liabilities | $645,975 | $633,475 | $620,975 | $608,475 | $595,975 | $583,475 | $570,975 | $558,475 | $545,975 | $533,475 | $520,975 | $508,475 | $495,975 |
| Total Liabilities | $807,000 | $765,477 | $745,593 | $727,383 | $709,777 | $691,567 | $673,962 | $656,010 | $638,405 | $620,799 | $603,193 | $584,258 | $565,867 |
| Paid-in Capital | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Retained Earnings | ($304,587) | ($304,587) | ($304,587) | ($304,587) | ($304,587) | ($304,587) | ($304,587) | ($304,587) | ($304,587) | ($304,587) | ($304,587) | ($304,587) | ($304,587) |
| Earnings | $0 | $56,626 | $116,468 | $174,544 | $232,730 | $289,151 | $345,680 | $400,077 | $454,583 | $509,198 | $563,923 | $614,632 | $663,013 |
| Total Capital | ($304,587) | ($247,961) | ($188,119) | ($130,043) | ($71,857) | ($15,436) | $41,093 | $95,490 | $149,996 | $204,611 | $259,336 | $310,045 | $358,426 |
| Total Liabilities and Capital | $502,413 | $517,516 | $557,474 | $597,340 | $637,921 | $676,131 | $715,055 | $751,500 | $788,400 | $825,410 | $862,529 | $894,303 | $924,293 |
| Net Worth | ($304,587) | ($247,961) | ($188,119) | ($130,043) | ($71,857) | ($15,436) | $41,093 | $95,490 | $149,996 | $204,611 | $259,336 | $310,045 | $358,426 |