By 
Our biggest savings of the year
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 |