Wy'East Law Firm
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 | |||||||||||||
| Technology companies | 0% | $0 | $8,005 | $9,514 | $13,587 | $16,547 | $16,874 | $16,854 | $17,525 | $18,547 | $18,752 | $18,887 | $19,004 |
| Public Interest organizations | 0% | $0 | $1,100 | $1,200 | $1,500 | $1,545 | $1,587 | $1,584 | $1,654 | $1,666 | $1,548 | $1,741 | $1,714 |
| Total Sales | $0 | $9,105 | $10,714 | $15,087 | $18,092 | $18,461 | $18,438 | $19,179 | $20,213 | $20,300 | $20,628 | $20,718 | |
| 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 | |
| Technology companies | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Public Interest organizations | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| 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 | ||
| Richard | 0% | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 |
| Receptionist/ secretary | 0% | $0 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 |
| Paralegal | 0% | $0 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
| Law clerk | 0% | $0 | $0 | $0 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 |
| Law clerk | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $900 | $900 | $900 | $900 | $900 |
| Total People | 1 | 3 | 3 | 4 | 4 | 4 | 4 | 5 | 5 | 5 | 5 | 5 | |
| Total Payroll | $5,500 | $8,550 | $8,550 | $9,450 | $9,450 | $9,450 | $9,450 | $10,350 | $10,350 | $10,350 | $10,350 | $10,350 | |
| 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 | 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 | |||||||||||||
| 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 | $0 | $9,105 | $10,714 | $15,087 | $18,092 | $18,461 | $18,438 | $19,179 | $20,213 | $20,300 | $20,628 | $20,718 | |
| Direct Cost of Sales | $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 Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Gross Margin | $0 | $9,105 | $10,714 | $15,087 | $18,092 | $18,461 | $18,438 | $19,179 | $20,213 | $20,300 | $20,628 | $20,718 | |
| Gross Margin % | 0.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |
| Expenses | |||||||||||||
| Payroll | $5,500 | $8,550 | $8,550 | $9,450 | $9,450 | $9,450 | $9,450 | $10,350 | $10,350 | $10,350 | $10,350 | $10,350 | |
| Sales and Marketing and Other Expenses | $180 | $180 | $180 | $180 | $180 | $180 | $180 | $180 | $180 | $180 | $180 | $180 | |
| Depreciation | $139 | $139 | $139 | $139 | $139 | $139 | $139 | $139 | $139 | $139 | $139 | $139 | |
| Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Utilities | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | |
| Rent | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Payroll Taxes | 15% | $825 | $1,283 | $1,283 | $1,418 | $1,418 | $1,418 | $1,418 | $1,553 | $1,553 | $1,553 | $1,553 | $1,553 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $6,969 | $10,477 | $10,477 | $11,512 | $11,512 | $11,512 | $11,512 | $12,547 | $12,547 | $12,547 | $12,547 | $12,547 | |
| Profit Before Interest and Taxes | ($6,969) | ($1,372) | $238 | $3,576 | $6,581 | $6,950 | $6,927 | $6,633 | $7,667 | $7,754 | $8,082 | $8,172 | |
| EBITDA | ($6,830) | ($1,233) | $377 | $3,715 | $6,720 | $7,089 | $7,066 | $6,772 | $7,806 | $7,893 | $8,221 | $8,311 | |
| Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Taxes Incurred | ($2,091) | ($343) | $59 | $894 | $1,645 | $1,737 | $1,732 | $1,658 | $1,917 | $1,938 | $2,020 | $2,043 | |
| Net Profit | ($4,878) | ($1,029) | $178 | $2,682 | $4,935 | $5,212 | $5,195 | $4,974 | $5,750 | $5,815 | $6,061 | $6,129 | |
| Net Profit/Sales | 0.00% | -11.30% | 1.66% | 17.77% | 27.28% | 28.23% | 28.17% | 25.94% | 28.45% | 28.65% | 29.38% | 29.58% | |
| 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 | $0 | $2,276 | $2,679 | $3,772 | $4,523 | $4,615 | $4,610 | $4,795 | $5,053 | $5,075 | $5,157 | $5,180 | |
| Cash from Receivables | $0 | $0 | $228 | $6,869 | $8,145 | $11,390 | $13,578 | $13,845 | $13,847 | $14,410 | $15,162 | $15,233 | |
| Subtotal Cash from Operations | $0 | $2,276 | $2,906 | $10,641 | $12,668 | $16,006 | $18,188 | $18,640 | $18,900 | $19,485 | $20,319 | $20,413 | |
| 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 | $0 | $2,276 | $2,906 | $10,641 | $12,668 | $16,006 | $18,188 | $18,640 | $18,900 | $19,485 | $20,319 | $20,413 | |
| 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 | $5,500 | $8,550 | $8,550 | $9,450 | $9,450 | $9,450 | $9,450 | $10,350 | $10,350 | $10,350 | $10,350 | $10,350 | |
| Bill Payments | ($761) | ($687) | $1,458 | $1,879 | $2,841 | $3,571 | $3,660 | $3,656 | $3,724 | $3,975 | $3,999 | $4,079 | |
| Subtotal Spent on Operations | $4,739 | $7,863 | $10,008 | $11,329 | $12,291 | $13,021 | $13,110 | $14,006 | $14,074 | $14,325 | $14,349 | $14,429 | |
| 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 | $4,739 | $7,863 | $10,008 | $11,329 | $12,291 | $13,021 | $13,110 | $14,006 | $14,074 | $14,325 | $14,349 | $14,429 | |
| Net Cash Flow | ($4,739) | ($5,587) | ($7,102) | ($688) | $376 | $2,985 | $5,078 | $4,634 | $4,826 | $5,160 | $5,970 | $5,984 | |
| Cash Balance | $14,011 | $8,424 | $1,322 | $634 | $1,010 | $3,995 | $9,073 | $13,707 | $18,533 | $23,693 | $29,663 | $35,648 | |
| 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 | $18,750 | $14,011 | $8,424 | $1,322 | $634 | $1,010 | $3,995 | $9,073 | $13,707 | $18,533 | $23,693 | $29,663 | $35,648 |
| Accounts Receivable | $0 | $0 | $6,829 | $14,637 | $19,083 | $24,507 | $26,962 | $27,213 | $27,752 | $29,065 | $29,879 | $30,188 | $30,494 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $18,750 | $14,011 | $15,253 | $15,959 | $19,717 | $25,517 | $30,958 | $36,286 | $41,459 | $47,597 | $53,573 | $59,852 | $66,141 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
| Accumulated Depreciation | $0 | $139 | $278 | $417 | $556 | $695 | $834 | $973 | $1,112 | $1,251 | $1,390 | $1,529 | $1,668 |
| Total Long-term Assets | $5,000 | $4,861 | $4,722 | $4,583 | $4,444 | $4,305 | $4,166 | $4,027 | $3,888 | $3,749 | $3,610 | $3,471 | $3,332 |
| Total Assets | $23,750 | $18,872 | $19,975 | $20,542 | $24,161 | $29,822 | $35,124 | $40,313 | $45,347 | $51,346 | $57,183 | $63,323 | $69,473 |
| 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 | $0 | $2,132 | $2,521 | $3,458 | $4,184 | $4,273 | $4,268 | $4,327 | $4,577 | $4,598 | $4,677 | $4,699 |
| Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $0 | $0 | $2,132 | $2,521 | $3,458 | $4,184 | $4,273 | $4,268 | $4,327 | $4,577 | $4,598 | $4,677 | $4,699 |
| Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Liabilities | $0 | $0 | $2,132 | $2,521 | $3,458 | $4,184 | $4,273 | $4,268 | $4,327 | $4,577 | $4,598 | $4,677 | $4,699 |
| 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 | ($1,250) | ($1,250) | ($1,250) | ($1,250) | ($1,250) | ($1,250) | ($1,250) | ($1,250) | ($1,250) | ($1,250) | ($1,250) | ($1,250) | ($1,250) |
| Earnings | $0 | ($4,878) | ($5,907) | ($5,729) | ($3,047) | $1,888 | $7,100 | $12,295 | $17,270 | $23,019 | $28,835 | $34,896 | $41,024 |
| Total Capital | $23,750 | $18,872 | $17,843 | $18,021 | $20,703 | $25,638 | $30,850 | $36,045 | $41,020 | $46,769 | $52,585 | $58,646 | $64,774 |
| Total Liabilities and Capital | $23,750 | $18,872 | $19,975 | $20,542 | $24,161 | $29,822 | $35,124 | $40,313 | $45,347 | $51,346 | $57,183 | $63,323 | $69,473 |
| Net Worth | $23,750 | $18,872 | $17,843 | $18,021 | $20,703 | $25,638 | $30,850 | $36,045 | $41,020 | $46,769 | $52,585 | $58,646 | $64,774 |
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