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Machine Tooling

Appendix

Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Automation 0% $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $19,000 $19,000 $19,000 $19,000
Production Machining 0% $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $23,000 $24,000 $25,000
Specialized Manufacturing 0% $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $60,000 $60,000
Value Added Assembly 0% $63,000 $63,000 $63,000 $63,000 $63,000 $63,000 $63,000 $63,000 $64,000 $64,000 $64,000 $64,000
Total Sales $162,000 $162,000 $162,000 $162,000 $162,000 $162,000 $162,000 $162,000 $164,000 $165,000 $167,000 $168,000
Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Automation $3,700 $3,700 $3,700 $3,700 $3,700 $3,700 $3,700 $3,700 $3,900 $3,900 $3,900 $3,900
Production Machining $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,700 $4,700 $4,800
Specialized Manufacturing $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,200 $12,200
Value Added Assembly $12,900 $12,900 $12,900 $13,000 $13,000 $13,000 $13,000 $13,000 $13,000 $13,000 $13,000 $13,000
Subtotal Direct Cost of Sales $33,100 $33,100 $33,100 $33,200 $33,200 $33,200 $33,200 $33,200 $33,400 $33,600 $33,800 $33,900
Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Peter Newton, CEO 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
John Abbot, President 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
Chris Manuel, VP Marketing 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
Production 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
Administrative Assistant 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
Total People 15 15 15 15 15 15 15 15 15 15 15 15
Total Payroll $23,750 $23,750 $23,750 $23,750 $23,750 $23,750 $23,750 $23,750 $23,750 $23,750 $23,750 $23,750

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 $162,000 $162,000 $162,000 $162,000 $162,000 $162,000 $162,000 $162,000 $164,000 $165,000 $167,000 $168,000
Direct Cost of Sales $33,100 $33,100 $33,100 $33,200 $33,200 $33,200 $33,200 $33,200 $33,400 $33,600 $33,800 $33,900
Production Personnel $29,170 $29,170 $29,170 $29,170 $29,170 $29,170 $29,170 $29,170 $29,170 $29,170 $29,170 $29,170
Total Cost of Sales $62,270 $62,270 $62,270 $62,370 $62,370 $62,370 $62,370 $62,370 $62,570 $62,770 $62,970 $63,070
Gross Margin $99,730 $99,730 $99,730 $99,630 $99,630 $99,630 $99,630 $99,630 $101,430 $102,230 $104,030 $104,930
Gross Margin % 61.56% 61.56% 61.56% 61.50% 61.50% 61.50% 61.50% 61.50% 61.85% 61.96% 62.29% 62.46%
Expenses
Payroll $23,750 $23,750 $23,750 $23,750 $23,750 $23,750 $23,750 $23,750 $23,750 $23,750 $23,750 $23,750
Marketing/Promotion $13,900 $13,900 $14,000 $13,900 $13,900 $14,000 $13,900 $13,900 $14,050 $14,000 $14,100 $14,350
Depreciation $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833
Quality Assurance $7,700 $7,700 $7,700 $7,700 $7,700 $7,700 $7,700 $7,700 $7,900 $8,000 $8,100 $8,200
General & Administrative $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000
Manufacturing & Engineering $10,800 $10,800 $10,800 $10,800 $10,800 $10,800 $10,800 $10,800 $10,800 $10,800 $10,800 $10,800
Machining & Systems Building $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200
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 $72,183 $72,183 $72,283 $72,183 $72,183 $72,283 $72,183 $72,183 $72,533 $72,583 $72,783 $73,133
Profit Before Interest and Taxes $27,547 $27,547 $27,447 $27,447 $27,447 $27,347 $27,447 $27,447 $28,897 $29,647 $31,247 $31,797
EBITDA $28,380 $28,380 $28,280 $28,280 $28,280 $28,180 $28,280 $28,280 $29,730 $30,480 $32,080 $32,630
Interest Expense $2,917 $5,000 $4,958 $4,500 $4,458 $4,069 $4,028 $3,986 $3,597 $3,555 $3,513 $3,124
Taxes Incurred $7,389 $5,637 $5,622 $5,737 $5,747 $5,819 $5,855 $5,865 $6,325 $6,523 $6,933 $7,168
Net Profit $17,241 $16,910 $16,867 $17,210 $17,242 $17,458 $17,565 $17,596 $18,975 $19,569 $20,800 $21,505
Net Profit/Sales 10.64% 10.44% 10.41% 10.62% 10.64% 10.78% 10.84% 10.86% 11.57% 11.86% 12.46% 12.80%

Pro Forma Cash Flow
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash Received
Cash from Operations
Cash Sales $40,500 $40,500 $40,500 $40,500 $40,500 $40,500 $40,500 $40,500 $41,000 $41,250 $41,750 $42,000
Cash from Receivables $65,000 $69,050 $121,500 $121,500 $121,500 $121,500 $121,500 $121,500 $121,500 $121,550 $123,025 $123,800
Subtotal Cash from Operations $105,500 $109,550 $162,000 $162,000 $162,000 $162,000 $162,000 $162,000 $162,500 $162,800 $164,775 $165,800
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 $250,000 $250,000 $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 $355,500 $359,550 $162,000 $162,000 $162,000 $162,000 $162,000 $162,000 $162,500 $162,800 $164,775 $165,800
Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Expenditures from Operations
Cash Spending $23,750 $23,750 $23,750 $23,750 $23,750 $23,750 $23,750 $23,750 $23,750 $23,750 $23,750 $23,750
Bill Payments $77,903 $87,507 $100,701 $120,543 $120,312 $120,168 $119,955 $119,851 $119,849 $120,675 $121,094 $121,843
Subtotal Spent on Operations $101,653 $111,257 $124,451 $144,293 $144,062 $143,918 $143,705 $143,601 $143,599 $144,425 $144,844 $145,593
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 $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 $0 $0 $0 $50,000 $0 $41,700 $0 $0 $41,700 $0 $0 $41,700
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $120,000 $0 $150,000 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $101,653 $111,257 $129,451 $199,293 $269,062 $190,618 $298,705 $148,601 $190,299 $149,425 $149,844 $192,293
Net Cash Flow $253,847 $248,293 $32,549 ($37,293) ($107,062) ($28,618) ($136,705) $13,399 ($27,799) $13,375 $14,931 ($26,493)
Cash Balance $313,847 $562,140 $594,689 $557,396 $450,334 $421,716 $285,011 $298,410 $270,611 $283,985 $298,917 $272,424
Pro Forma Balance Sheet
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets Starting Balances
Current Assets
Cash $60,000 $313,847 $562,140 $594,689 $557,396 $450,334 $421,716 $285,011 $298,410 $270,611 $283,985 $298,917 $272,424
Accounts Receivable $130,000 $186,500 $238,950 $238,950 $238,950 $238,950 $238,950 $238,950 $238,950 $240,450 $242,650 $244,875 $247,075
Inventory $90,000 $56,900 $36,410 $36,410 $36,520 $36,520 $36,520 $36,520 $36,520 $36,740 $36,960 $37,180 $37,290
Other Current Assets $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000
Total Current Assets $295,000 $572,247 $852,500 $885,049 $847,866 $740,804 $712,186 $575,481 $588,880 $562,801 $578,595 $595,972 $571,789
Long-term Assets
Long-term Assets $100,000 $100,000 $100,000 $100,000 $100,000 $220,000 $220,000 $370,000 $370,000 $370,000 $370,000 $370,000 $370,000
Accumulated Depreciation $30,000 $30,833 $31,666 $32,499 $33,332 $34,165 $34,998 $35,831 $36,664 $37,497 $38,330 $39,163 $39,996
Total Long-term Assets $70,000 $69,167 $68,334 $67,501 $66,668 $185,835 $185,002 $334,169 $333,336 $332,503 $331,670 $330,837 $330,004
Total Assets $365,000 $641,414 $920,834 $952,550 $914,534 $926,639 $897,188 $909,650 $922,216 $895,304 $910,265 $926,809 $901,793
Liabilities and Capital Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Current Liabilities
Accounts Payable $75,000 $84,173 $96,683 $116,532 $116,306 $116,170 $115,960 $115,857 $115,827 $116,640 $117,032 $117,776 $117,955
Current Borrowing $50,000 $50,000 $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0
Other Current Liabilities $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Subtotal Current Liabilities $135,000 $144,173 $156,683 $171,532 $166,306 $161,170 $155,960 $150,857 $145,827 $141,640 $137,032 $132,776 $127,955
Long-term Liabilities $50,000 $300,000 $550,000 $550,000 $500,000 $500,000 $458,300 $458,300 $458,300 $416,600 $416,600 $416,600 $374,900
Total Liabilities $185,000 $444,173 $706,683 $721,532 $666,306 $661,170 $614,260 $609,157 $604,127 $558,240 $553,632 $549,376 $502,855
Paid-in Capital $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Retained Earnings $130,000 $130,000 $130,000 $130,000 $130,000 $130,000 $130,000 $130,000 $130,000 $130,000 $130,000 $130,000 $130,000
Earnings $0 $17,241 $34,151 $51,018 $68,228 $85,470 $102,928 $120,493 $138,089 $157,064 $176,633 $197,433 $218,938
Total Capital $180,000 $197,241 $214,151 $231,018 $248,228 $265,470 $282,928 $300,493 $318,089 $337,064 $356,633 $377,433 $398,938
Total Liabilities and Capital $365,000 $641,414 $920,834 $952,550 $914,534 $926,639 $897,188 $909,650 $922,216 $895,304 $910,265 $926,809 $901,793
Net Worth $180,000 $197,241 $214,151 $231,018 $248,228 $265,470 $282,928 $300,493 $318,089 $337,064 $356,633 $377,433 $398,938