Massage Tools
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 | |||||||||||||
| Massage Tool | 0% | $1,062 | $1,322 | $1,966 | $3,346 | $5,664 | $7,538 | $8,206 | $9,922 | $11,040 | $13,560 | $14,066 | $11,140 |
| Massage Tool Deluxe | 0% | $1,886 | $2,506 | $2,502 | $4,462 | $6,352 | $7,122 | $7,346 | $9,348 | $11,520 | $13,674 | $14,290 | $13,100 |
| Total Sales | $2,948 | $3,828 | $4,468 | $7,808 | $12,016 | $14,660 | $15,552 | $19,270 | $22,560 | $27,234 | $28,356 | $24,240 | |
| 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 | |
| Massage Tool | $531 | $661 | $983 | $1,673 | $2,832 | $3,769 | $4,103 | $4,961 | $5,520 | $6,780 | $7,033 | $5,570 | |
| Massage Tool Deluxe | $754 | $1,002 | $1,001 | $1,785 | $2,541 | $2,849 | $2,938 | $3,739 | $4,608 | $5,470 | $5,716 | $5,240 | |
| Subtotal Direct Cost of Sales | $1,285 | $1,663 | $1,984 | $3,458 | $5,373 | $6,618 | $7,041 | $8,700 | $10,128 | $12,250 | $12,749 | $10,810 | |
| 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 | ||
| Ron Tickman, President & Owner | 0% | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 |
| Katherine Allen, Sales Rep | 0% | $100 | $150 | $200 | $250 | $300 | $350 | $400 | $450 | $500 | $550 | $600 | $650 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total People | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total Payroll | $200 | $250 | $300 | $350 | $400 | $450 | $500 | $550 | $600 | $650 | $700 | $750 | |
| 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% | 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 | $2,948 | $3,828 | $4,468 | $7,808 | $12,016 | $14,660 | $15,552 | $19,270 | $22,560 | $27,234 | $28,356 | $24,240 | |
| Direct Cost of Sales | $1,285 | $1,663 | $1,984 | $3,458 | $5,373 | $6,618 | $7,041 | $8,700 | $10,128 | $12,250 | $12,749 | $10,810 | |
| Other Costs of Goods | $0 | $1 | $1 | $1 | $1 | $1 | $1 | $1 | $1 | $1 | $1 | $1 | |
| Total Cost of Sales | $1,285 | $1,664 | $1,985 | $3,459 | $5,374 | $6,619 | $7,042 | $8,701 | $10,129 | $12,251 | $12,750 | $10,811 | |
| Gross Margin | $1,663 | $2,164 | $2,483 | $4,349 | $6,642 | $8,041 | $8,510 | $10,569 | $12,431 | $14,983 | $15,606 | $13,429 | |
| Gross Margin % | 56.40% | 56.52% | 55.58% | 55.70% | 55.28% | 54.85% | 54.72% | 54.85% | 55.10% | 55.02% | 55.04% | 55.40% | |
| Expenses | |||||||||||||
| Payroll | $200 | $250 | $300 | $350 | $400 | $450 | $500 | $550 | $600 | $650 | $700 | $750 | |
| Sales and Marketing and Other Expenses | $1,200 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | |
| Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Rent | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | |
| Utilities | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Insurance | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | |
| Payroll Taxes | 15% | $30 | $38 | $45 | $53 | $60 | $68 | $75 | $83 | $90 | $98 | $105 | $113 |
| Commission | $147 | $191 | $223 | $390 | $601 | $733 | $778 | $964 | $1,128 | $1,362 | $1,418 | $1,212 | |
| Total Operating Expenses | $2,977 | $2,479 | $2,568 | $2,793 | $3,061 | $3,251 | $3,353 | $3,596 | $3,818 | $4,109 | $4,223 | $4,075 | |
| Profit Before Interest and Taxes | ($1,315) | ($315) | ($85) | $1,556 | $3,581 | $4,791 | $5,157 | $6,973 | $8,613 | $10,874 | $11,383 | $9,355 | |
| EBITDA | ($1,315) | ($315) | ($85) | $1,556 | $3,581 | $4,791 | $5,157 | $6,973 | $8,613 | $10,874 | $11,383 | $9,355 | |
| Interest Expense | ($2) | ($4) | ($6) | ($8) | ($10) | ($13) | ($15) | ($17) | ($19) | ($21) | ($23) | ($25) | |
| Taxes Incurred | ($394) | ($93) | ($24) | $469 | $1,078 | $1,441 | $1,551 | $2,097 | $2,590 | $3,269 | $3,422 | $2,814 | |
| Net Profit | ($919) | ($218) | ($55) | $1,095 | $2,514 | $3,362 | $3,620 | $4,893 | $6,042 | $7,627 | $7,984 | $6,566 | |
| Net Profit/Sales | -31.17% | -5.69% | -1.24% | 14.03% | 20.92% | 22.93% | 23.28% | 25.39% | 26.78% | 28.00% | 28.16% | 27.09% | |
| 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 | $2,948 | $3,828 | $4,468 | $7,808 | $12,016 | $14,660 | $15,552 | $19,270 | $22,560 | $27,234 | $28,356 | $24,240 | |
| Subtotal Cash from Operations | $2,948 | $3,828 | $4,468 | $7,808 | $12,016 | $14,660 | $15,552 | $19,270 | $22,560 | $27,234 | $28,356 | $24,240 | |
| 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 | $2,948 | $3,828 | $4,468 | $7,808 | $12,016 | $14,660 | $15,552 | $19,270 | $22,560 | $27,234 | $28,356 | $24,240 | |
| 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 | $200 | $250 | $300 | $350 | $400 | $450 | $500 | $550 | $600 | $650 | $700 | $750 | |
| Bill Payments | $79 | $2,373 | $2,136 | $2,401 | $7,236 | $11,242 | $12,207 | $12,023 | $15,713 | $17,615 | $21,256 | $20,040 | |
| Subtotal Spent on Operations | $279 | $2,623 | $2,436 | $2,751 | $7,636 | $11,692 | $12,707 | $12,573 | $16,313 | $18,265 | $21,956 | $20,790 | |
| 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 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
| 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 | $529 | $2,873 | $2,686 | $3,001 | $7,886 | $11,942 | $12,957 | $12,823 | $16,563 | $18,515 | $22,206 | $21,040 | |
| Net Cash Flow | $2,419 | $955 | $1,782 | $4,807 | $4,130 | $2,718 | $2,595 | $6,447 | $5,997 | $8,719 | $6,150 | $3,200 | |
| Cash Balance | $15,119 | $16,073 | $17,855 | $22,662 | $26,792 | $29,510 | $32,106 | $38,553 | $44,549 | $53,268 | $59,419 | $62,619 | |
| 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 | $12,700 | $15,119 | $16,073 | $17,855 | $22,662 | $26,792 | $29,510 | $32,106 | $38,553 | $44,549 | $53,268 | $59,419 | $62,619 |
| Inventory | $8,000 | $6,715 | $5,051 | $3,067 | $3,804 | $5,910 | $7,280 | $7,746 | $9,570 | $11,141 | $13,475 | $14,024 | $11,891 |
| Other Current 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 |
| Total Current Assets | $25,700 | $26,833 | $26,125 | $25,923 | $31,466 | $37,702 | $41,790 | $44,851 | $53,123 | $60,690 | $71,743 | $78,443 | $79,510 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Assets | $25,700 | $26,833 | $26,125 | $25,923 | $31,466 | $37,702 | $41,790 | $44,851 | $53,123 | $60,690 | $71,743 | $78,443 | $79,510 |
| 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 | $2,302 | $2,061 | $2,165 | $6,862 | $10,835 | $11,810 | $11,501 | $15,130 | $16,905 | $20,582 | $19,547 | $14,298 |
| Current Borrowing | $0 | ($250) | ($500) | ($750) | ($1,000) | ($1,250) | ($1,500) | ($1,750) | ($2,000) | ($2,250) | ($2,500) | ($2,750) | ($3,000) |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $0 | $2,052 | $1,561 | $1,415 | $5,862 | $9,585 | $10,310 | $9,751 | $13,130 | $14,655 | $18,082 | $16,797 | $11,298 |
| Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Liabilities | $0 | $2,052 | $1,561 | $1,415 | $5,862 | $9,585 | $10,310 | $9,751 | $13,130 | $14,655 | $18,082 | $16,797 | $11,298 |
| Paid-in Capital | $45,000 | $45,000 | $45,000 | $45,000 | $45,000 | $45,000 | $45,000 | $45,000 | $45,000 | $45,000 | $45,000 | $45,000 | $45,000 |
| Retained Earnings | ($19,300) | ($19,300) | ($19,300) | ($19,300) | ($19,300) | ($19,300) | ($19,300) | ($19,300) | ($19,300) | ($19,300) | ($19,300) | ($19,300) | ($19,300) |
| Earnings | $0 | ($919) | ($1,137) | ($1,192) | ($97) | $2,418 | $5,780 | $9,400 | $14,293 | $20,335 | $27,961 | $35,946 | $42,511 |
| Total Capital | $25,700 | $24,781 | $24,563 | $24,508 | $25,603 | $28,118 | $31,480 | $35,100 | $39,993 | $46,035 | $53,661 | $61,646 | $68,211 |
| Total Liabilities and Capital | $25,700 | $26,833 | $26,125 | $25,923 | $31,466 | $37,702 | $41,790 | $44,851 | $53,123 | $60,690 | $71,743 | $78,443 | $79,510 |
| Net Worth | $25,700 | $24,781 | $24,563 | $24,508 | $25,603 | $28,118 | $31,480 | $35,100 | $39,993 | $46,035 | $53,661 | $61,646 | $68,211 |
By 
