Cents and Senseibility Value-Priced Martial Arts School
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 | |||||||||||||
| 3T Membership | 8000% | $400 | $1,200 | $2,000 | $2,800 | $3,600 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
| Basic Club Membership | 8500% | $425 | $1,275 | $2,125 | $2,975 | $3,825 | $4,250 | $4,675 | $5,100 | $5,525 | $5,950 | $6,375 | $6,800 |
| Black Belt Club Membership | 9000% | $450 | $630 | $900 | $1,350 | $1,530 | $1,800 | $2,250 | $3,150 | $4,050 | $4,950 | $4,950 | $4,950 |
| Masters Club Membership | 10000% | $0 | $500 | $700 | $1,000 | $1,200 | $1,500 | $2,000 | $2,500 | $3,500 | $4,500 | $5,500 | $6,000 |
| Testing | 0% | $0 | $0 | $1,150 | $2,300 | $3,200 | $4,500 | $5,050 | $5,600 | $6,150 | $6,700 | $7,500 | $8,750 |
| Private Lessons | 0% | $0 | $0 | $150 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 |
| Weekend Specials | 0% | $0 | $150 | $150 | $200 | $200 | $225 | $225 | $225 | $250 | $250 | $250 | $250 |
| Merchandise | 0% | $0 | $800 | $1,000 | $1,250 | $1,250 | $1,250 | $1,250 | $1,500 | $1,500 | $1,500 | $1,700 | $1,700 |
| Pilates Membership | 0% | $0 | $0 | $750 | $1,250 | $1,750 | $2,250 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
| Cardio Kick Boxing Membership | 0% | $0 | $0 | $750 | $1,250 | $1,750 | $2,250 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
| Total Sales | $1,275 | $4,555 | $9,675 | $14,575 | $18,505 | $22,225 | $24,650 | $27,275 | $30,175 | $33,050 | $35,475 | $37,650 | |
| 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 | |
| Merchandise | 50% | $0 | $400 | $500 | $625 | $625 | $625 | $625 | $750 | $750 | $750 | $850 | $850 |
| Testing – CATISC fees | 15% | $0 | $0 | $173 | $345 | $480 | $675 | $758 | $840 | $923 | $1,005 | $1,125 | $1,313 |
| Testing (inventory, etc.) | 30% | $0 | $0 | $345 | $690 | $960 | $1,350 | $1,515 | $1,680 | $1,845 | $2,010 | $2,250 | $2,625 |
| Subtotal Direct Cost of Sales | $0 | $400 | $1,018 | $1,660 | $2,065 | $2,650 | $2,898 | $3,270 | $3,518 | $3,765 | $4,225 | $4,788 | |
| 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 | ||
| Rolly BonTemps (Owner) | 0% | $2,000 | $2,000 | $2,000 | $2,500 | $2,500 | $2,500 | $3,000 | $3,000 | $3,000 | $3,500 | $3,500 | $3,500 |
| Meg LeFevre (Instructor) | 0% | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $750 | $750 | $750 | $750 |
| Fiorello BonTemps (Board of Directors) | 0% | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 |
| Merry BonTemps (Board of Directors) | 0% | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 |
| Total People | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | |
| Total Payroll | $3,500 | $3,500 | $3,500 | $4,000 | $4,000 | $4,000 | $4,500 | $4,500 | $4,750 | $5,250 | $5,250 | $5,250 | |
| 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 | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | |
| Long-term Interest Rate | 9.00% | 9.00% | 9.00% | 9.00% | 9.00% | 9.00% | 9.00% | 9.00% | 9.00% | 9.00% | 9.00% | 9.00% | |
| Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
| 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 | $1,275 | $4,555 | $9,675 | $14,575 | $18,505 | $22,225 | $24,650 | $27,275 | $30,175 | $33,050 | $35,475 | $37,650 | |
| Direct Cost of Sales | $0 | $400 | $1,018 | $1,660 | $2,065 | $2,650 | $2,898 | $3,270 | $3,518 | $3,765 | $4,225 | $4,788 | |
| Other costs | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Cost of Sales | $0 | $400 | $1,018 | $1,660 | $2,065 | $2,650 | $2,898 | $3,270 | $3,518 | $3,765 | $4,225 | $4,788 | |
| Gross Margin | $1,275 | $4,155 | $8,658 | $12,915 | $16,440 | $19,575 | $21,753 | $24,005 | $26,658 | $29,285 | $31,250 | $32,863 | |
| Gross Margin % | 100.00% | 91.22% | 89.48% | 88.61% | 88.84% | 88.08% | 88.25% | 88.01% | 88.34% | 88.61% | 88.09% | 87.28% | |
| Expenses | |||||||||||||
| Payroll | $3,500 | $3,500 | $3,500 | $4,000 | $4,000 | $4,000 | $4,500 | $4,500 | $4,750 | $5,250 | $5,250 | $5,250 | |
| Sales and Marketing and Other Expenses | $4,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
| Depreciation | $83 | $83 | $83 | $83 | $83 | $83 | $83 | $83 | $83 | $83 | $83 | $83 | |
| Rent | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | |
| Utilities | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | |
| Janitorial services | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
| Insurance | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
| Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Miscellaneous | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Total Operating Expenses | $11,283 | $8,283 | $8,283 | $8,783 | $8,783 | $8,783 | $9,283 | $9,283 | $9,533 | $10,033 | $10,033 | $10,033 | |
| Profit Before Interest and Taxes | ($10,008) | ($4,128) | $374 | $4,132 | $7,657 | $10,792 | $12,469 | $14,722 | $17,124 | $19,252 | $21,217 | $22,829 | |
| EBITDA | ($9,925) | ($4,045) | $458 | $4,215 | $7,740 | $10,875 | $12,553 | $14,805 | $17,208 | $19,335 | $21,300 | $22,913 | |
| Interest Expense | $439 | $428 | $417 | $406 | $394 | $383 | $372 | $360 | $349 | $337 | $325 | $313 | |
| Taxes Incurred | ($3,134) | ($1,367) | ($13) | $1,118 | $2,179 | $3,123 | $3,629 | $4,308 | $5,033 | $5,674 | $6,267 | $6,755 | |
| Net Profit | ($7,313) | ($3,189) | ($30) | $2,608 | $5,084 | $7,286 | $8,468 | $10,053 | $11,743 | $13,240 | $14,624 | $15,761 | |
| Net Profit/Sales | -573.58% | -70.02% | -0.31% | 17.89% | 27.47% | 32.78% | 34.35% | 36.86% | 38.92% | 40.06% | 41.22% | 41.86% | |
| 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 | $1,020 | $3,644 | $7,740 | $11,660 | $14,804 | $17,780 | $19,720 | $21,820 | $24,140 | $26,440 | $28,380 | $30,120 | |
| Cash from Receivables | $0 | $9 | $277 | $945 | $1,968 | $2,941 | $3,726 | $4,461 | $4,948 | $5,474 | $6,054 | $6,626 | |
| Subtotal Cash from Operations | $1,020 | $3,653 | $8,017 | $12,605 | $16,772 | $20,721 | $23,446 | $26,281 | $29,088 | $31,914 | $34,434 | $36,746 | |
| 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 | $1,020 | $3,653 | $8,017 | $12,605 | $16,772 | $20,721 | $23,446 | $26,281 | $29,088 | $31,914 | $34,434 | $36,746 | |
| 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 | $3,500 | $3,500 | $3,500 | $4,000 | $4,000 | $4,000 | $4,500 | $4,500 | $4,750 | $5,250 | $5,250 | $5,250 | |
| Bill Payments | $167 | $4,963 | $3,806 | $5,188 | $7,705 | $10,211 | $12,028 | $12,136 | $13,407 | $14,123 | $15,020 | $16,479 | |
| Subtotal Spent on Operations | $3,667 | $8,463 | $7,306 | $9,188 | $11,705 | $14,211 | $16,528 | $16,636 | $18,157 | $19,373 | $20,270 | $21,729 | |
| 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 | $1,458 | $1,469 | $1,480 | $1,491 | $1,502 | $1,513 | $1,525 | $1,536 | $1,548 | $1,559 | $1,571 | $1,583 | |
| 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 | $5,125 | $9,932 | $8,786 | $10,679 | $13,207 | $15,724 | $18,053 | $18,173 | $19,705 | $20,932 | $21,841 | $23,312 | |
| Net Cash Flow | ($4,105) | ($6,280) | ($769) | $1,926 | $3,564 | $4,997 | $5,393 | $8,108 | $9,382 | $10,982 | $12,593 | $13,434 | |
| Cash Balance | $39,895 | $33,615 | $32,846 | $34,772 | $38,337 | $43,334 | $48,727 | $56,835 | $66,217 | $77,199 | $89,792 | $103,227 | |
| 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 | $44,000 | $39,895 | $33,615 | $32,846 | $34,772 | $38,337 | $43,334 | $48,727 | $56,835 | $66,217 | $77,199 | $89,792 | $103,227 |
| Accounts Receivable | $0 | $255 | $1,158 | $2,816 | $4,786 | $6,519 | $8,023 | $9,227 | $10,221 | $11,308 | $12,444 | $13,485 | $14,388 |
| Inventory | $5,000 | $5,000 | $4,600 | $3,583 | $3,320 | $4,130 | $5,300 | $5,795 | $6,540 | $7,035 | $7,530 | $8,450 | $9,575 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $49,000 | $45,150 | $39,373 | $39,245 | $42,878 | $48,986 | $56,656 | $63,748 | $73,596 | $84,561 | $97,173 | $111,727 | $127,190 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $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 |
| Accumulated Depreciation | $0 | $83 | $167 | $250 | $333 | $417 | $500 | $583 | $667 | $750 | $833 | $917 | $1,000 |
| Total Long-term Assets | $10,000 | $9,917 | $9,833 | $9,750 | $9,667 | $9,583 | $9,500 | $9,417 | $9,333 | $9,250 | $9,167 | $9,083 | $9,000 |
| Total Assets | $59,000 | $55,067 | $49,206 | $48,995 | $52,545 | $58,569 | $66,156 | $73,165 | $82,929 | $93,811 | $106,340 | $120,810 | $136,190 |
| 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 | $4,838 | $3,636 | $4,934 | $7,367 | $9,810 | $11,625 | $11,690 | $12,938 | $13,624 | $14,472 | $15,890 | $17,091 |
| 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 | $4,838 | $3,636 | $4,934 | $7,367 | $9,810 | $11,625 | $11,690 | $12,938 | $13,624 | $14,472 | $15,890 | $17,091 |
| Long-term Liabilities | $60,000 | $58,542 | $57,073 | $55,593 | $54,102 | $52,600 | $51,086 | $49,562 | $48,025 | $46,478 | $44,918 | $43,347 | $41,764 |
| Total Liabilities | $60,000 | $63,380 | $60,709 | $60,527 | $61,469 | $62,410 | $62,711 | $61,252 | $60,963 | $60,101 | $59,390 | $59,237 | $58,855 |
| Paid-in Capital | $35,000 | $35,000 | $35,000 | $35,000 | $35,000 | $35,000 | $35,000 | $35,000 | $35,000 | $35,000 | $35,000 | $35,000 | $35,000 |
| Retained Earnings | ($36,000) | ($36,000) | ($36,000) | ($36,000) | ($36,000) | ($36,000) | ($36,000) | ($36,000) | ($36,000) | ($36,000) | ($36,000) | ($36,000) | ($36,000) |
| Earnings | $0 | ($7,313) | ($10,503) | ($10,533) | ($7,924) | ($2,841) | $4,445 | $12,913 | $22,966 | $34,709 | $47,950 | $62,574 | $78,335 |
| Total Capital | ($1,000) | ($8,313) | ($11,503) | ($11,533) | ($8,924) | ($3,841) | $3,445 | $11,913 | $21,966 | $33,709 | $46,950 | $61,574 | $77,335 |
| Total Liabilities and Capital | $59,000 | $55,067 | $49,206 | $48,995 | $52,545 | $58,569 | $66,156 | $73,165 | $82,929 | $93,811 | $106,340 | $120,810 | $136,190 |
| Net Worth | ($1,000) | ($8,313) | ($11,503) | ($11,533) | ($8,924) | ($3,841) | $3,445 | $11,913 | $21,966 | $33,709 | $46,950 | $61,574 | $77,335 |
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