La Salsa Fresh Mexican Grill
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 | |||||||||||||
| Meal Deals | 0% | $12,588 | $19,188 | $24,319 | $26,688 | $28,044 | $28,428 | $23,302 | $18,116 | $15,604 | $20,116 | $24,240 | $25,536 |
| A La Carte | 0% | $6,582 | $9,534 | $12,048 | $13,560 | $14,431 | $14,880 | $12,910 | $10,796 | $9,658 | $12,796 | $11,622 | $10,903 |
| Burrito/ Taco | 0% | $8,844 | $14,592 | $20,100 | $23,244 | $25,104 | $26,832 | $22,792 | $19,268 | $16,804 | $21,268 | $24,672 | $25,548 |
| Other | 0% | $1,378 | $2,192 | $3,015 | $3,752 | $4,042 | $4,352 | $3,490 | $2,932 | $2,072 | $2,746 | $3,610 | $3,570 |
| Total Sales | $29,392 | $45,506 | $59,482 | $67,244 | $71,621 | $74,492 | $62,494 | $51,112 | $44,138 | $56,926 | $64,144 | $65,557 | |
| 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 | |
| Meal Deals | 26% | $3,273 | $4,989 | $6,323 | $6,939 | $7,291 | $7,391 | $6,059 | $4,710 | $4,057 | $5,230 | $6,302 | $6,639 |
| A La Carte | 21% | $1,382 | $2,002 | $2,530 | $2,848 | $3,031 | $3,125 | $2,711 | $2,267 | $2,028 | $2,687 | $2,441 | $2,290 |
| Burrito/ Taco | 31% | $2,742 | $4,524 | $6,231 | $7,206 | $7,782 | $8,318 | $7,066 | $5,973 | $5,209 | $6,593 | $7,648 | $7,920 |
| Other | 17% | $234 | $373 | $513 | $638 | $687 | $740 | $593 | $498 | $352 | $467 | $614 | $607 |
| Subtotal Direct Cost of Sales | $7,631 | $11,887 | $15,597 | $17,630 | $18,791 | $19,574 | $16,428 | $13,449 | $11,647 | $14,977 | $17,005 | $17,456 | |
| 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 | ||
| Production Personnel | |||||||||||||
| Manager | $3,000 | $3,000 | $3,008 | $3,015 | $3,023 | $3,030 | $3,038 | $3,045 | $3,053 | $3,061 | $3,068 | $3,076 | |
| Cooks (3) | $4,800 | $4,800 | $4,812 | $4,824 | $4,836 | $4,848 | $4,860 | $4,872 | $4,885 | $4,897 | $4,909 | $4,921 | |
| Other | $2,000 | $2,000 | $3,008 | $3,015 | $3,023 | $3,030 | $3,038 | $3,045 | $3,053 | $3,061 | $3,068 | $3,076 | |
| Subtotal | $9,800 | $9,800 | $10,828 | $10,854 | $10,882 | $10,908 | $10,936 | $10,962 | $10,991 | $11,019 | $11,045 | $11,073 | |
| Sales and Marketing Personnel | |||||||||||||
| Marketing | $1,000 | $1,003 | $1,005 | $1,008 | $1,010 | $1,013 | $1,015 | $1,018 | $1,020 | $1,023 | $1,025 | $1,028 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal | $1,000 | $1,003 | $1,005 | $1,008 | $1,010 | $1,013 | $1,015 | $1,018 | $1,020 | $1,023 | $1,025 | $1,028 | |
| General and Administrative Personnel | |||||||||||||
| Benjamin Strock | $3,000 | $3,008 | $3,015 | $3,023 | $3,030 | $3,038 | $3,045 | $3,053 | $3,061 | $3,068 | $3,076 | $3,084 | |
| Accountant | $1,000 | $1,000 | $1,003 | $1,005 | $1,008 | $1,010 | $1,013 | $1,015 | $1,018 | $1,020 | $1,023 | $1,025 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal | $4,000 | $4,008 | $4,018 | $4,028 | $4,038 | $4,048 | $4,058 | $4,068 | $4,079 | $4,088 | $4,099 | $4,109 | |
| Other Personnel | |||||||||||||
| Name or Title | $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 | |
| Subtotal | $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 | $14,800 | $14,811 | $15,851 | $15,890 | $15,930 | $15,969 | $16,009 | $16,048 | $16,090 | $16,130 | $16,169 | $16,210 | |
| 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 | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | |
| 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 | $29,392 | $45,506 | $59,482 | $67,244 | $71,621 | $74,492 | $62,494 | $51,112 | $44,138 | $56,926 | $64,144 | $65,557 | |
| Direct Cost of Sales | $7,631 | $11,887 | $15,597 | $17,630 | $18,791 | $19,574 | $16,428 | $13,449 | $11,647 | $14,977 | $17,005 | $17,456 | |
| Production Payroll | $9,800 | $9,800 | $10,828 | $10,854 | $10,882 | $10,908 | $10,936 | $10,962 | $10,991 | $11,019 | $11,045 | $11,073 | |
| SBRG Franchise Fee | 6% | $1,764 | $2,730 | $3,569 | $4,035 | $4,297 | $4,470 | $3,750 | $3,067 | $2,648 | $3,416 | $3,849 | $3,933 |
| Other Production Expenses | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
| Total Cost of Sales | $20,195 | $25,418 | $30,993 | $33,519 | $34,971 | $35,951 | $32,114 | $28,478 | $26,286 | $30,412 | $32,899 | $33,462 | |
| Gross Margin | $9,197 | $20,088 | $28,489 | $33,725 | $36,650 | $38,541 | $30,380 | $22,634 | $17,852 | $26,514 | $31,245 | $32,095 | |
| Gross Margin % | 31.29% | 44.14% | 47.89% | 50.15% | 51.17% | 51.74% | 48.61% | 44.28% | 40.45% | 46.58% | 48.71% | 48.96% | |
| Operating Expenses | |||||||||||||
| Sales and Marketing Expenses | |||||||||||||
| Sales and Marketing Payroll | $1,000 | $1,003 | $1,005 | $1,008 | $1,010 | $1,013 | $1,015 | $1,018 | $1,020 | $1,023 | $1,025 | $1,028 | |
| Advertising/ Promotion | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
| SBRG Corporate Marketing Fee | 4% | $1,176 | $1,820 | $2,379 | $2,690 | $2,865 | $2,980 | $2,500 | $2,044 | $1,766 | $2,277 | $2,566 | $2,622 |
| Travel | $600 | $600 | $600 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Miscellaneous | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
| Total Sales and Marketing Expenses | $3,876 | $4,523 | $5,084 | $4,798 | $4,975 | $5,093 | $4,615 | $4,162 | $3,886 | $4,400 | $4,691 | $4,750 | |
| Sales and Marketing % | 13.19% | 9.94% | 8.55% | 7.13% | 6.95% | 6.84% | 7.38% | 8.14% | 8.80% | 7.73% | 7.31% | 7.25% | |
| General and Administrative Expenses | |||||||||||||
| General and Administrative Payroll | $4,000 | $4,008 | $4,018 | $4,028 | $4,038 | $4,048 | $4,058 | $4,068 | $4,079 | $4,088 | $4,099 | $4,109 | |
| Sales and Marketing and Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Depreciation | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
| Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Utilities | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Insurance | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Rent | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | |
| Payroll Taxes | 15% | $2,220 | $2,222 | $2,378 | $2,384 | $2,390 | $2,395 | $2,401 | $2,407 | $2,414 | $2,420 | $2,425 | $2,432 |
| Other General and Administrative Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total General and Administrative Expenses | $10,620 | $10,630 | $10,796 | $10,812 | $10,828 | $10,843 | $10,859 | $10,875 | $10,893 | $10,908 | $10,924 | $10,941 | |
| General and Administrative % | 36.13% | 23.36% | 18.15% | 16.08% | 15.12% | 14.56% | 17.38% | 21.28% | 24.68% | 19.16% | 17.03% | 16.69% | |
| Other Expenses: | |||||||||||||
| Other Payroll | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Consultants | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Contract/Consultants | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Other % | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
| Total Operating Expenses | $14,496 | $15,153 | $15,880 | $15,609 | $15,802 | $15,936 | $15,474 | $15,038 | $14,778 | $15,308 | $15,615 | $15,691 | |
| Profit Before Interest and Taxes | ($5,298) | $4,936 | $12,609 | $18,116 | $20,848 | $22,605 | $14,906 | $7,597 | $3,074 | $11,207 | $15,630 | $16,404 | |
| EBITDA | ($4,298) | $5,936 | $13,609 | $19,116 | $21,848 | $23,605 | $15,906 | $8,597 | $4,074 | $12,207 | $16,630 | $17,404 | |
| Interest Expense | $1,740 | $1,730 | $1,719 | $1,709 | $1,699 | $1,688 | $1,678 | $1,667 | $1,657 | $1,646 | $1,635 | $1,625 | |
| Taxes Incurred | ($2,111) | $962 | $3,267 | $4,922 | $5,745 | $6,275 | $3,968 | $1,779 | $425 | $2,868 | $4,198 | $4,434 | |
| Net Profit | ($4,927) | $2,244 | $7,622 | $11,485 | $13,404 | $14,641 | $9,259 | $4,151 | $992 | $6,692 | $9,796 | $10,346 | |
| Net Profit/Sales | -16.76% | 4.93% | 12.81% | 17.08% | 18.72% | 19.65% | 14.82% | 8.12% | 2.25% | 11.76% | 15.27% | 15.78% | |
| 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 | $29,392 | $45,506 | $59,482 | $67,244 | $71,621 | $74,492 | $62,494 | $51,112 | $44,138 | $56,926 | $64,144 | $65,557 | |
| Subtotal Cash from Operations | $29,392 | $45,506 | $59,482 | $67,244 | $71,621 | $74,492 | $62,494 | $51,112 | $44,138 | $56,926 | $64,144 | $65,557 | |
| 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 | $29,392 | $45,506 | $59,482 | $67,244 | $71,621 | $74,492 | $62,494 | $51,112 | $44,138 | $56,926 | $64,144 | $65,557 | |
| 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 | $14,800 | $14,811 | $15,851 | $15,890 | $15,930 | $15,969 | $16,009 | $16,048 | $16,090 | $16,130 | $16,169 | $16,210 | |
| Bill Payments | $363 | $11,044 | $15,768 | $22,330 | $41,154 | $42,603 | $43,377 | $32,561 | $26,551 | $24,497 | $36,855 | $39,379 | |
| Subtotal Spent on Operations | $15,163 | $25,855 | $31,619 | $38,220 | $57,084 | $58,572 | $59,386 | $48,609 | $42,641 | $40,627 | $53,024 | $55,589 | |
| 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 | $1,733 | $1,743 | $1,754 | $1,764 | $1,774 | $1,784 | $1,795 | $1,805 | $1,816 | $1,826 | $1,837 | $1,848 | |
| 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 | $16,896 | $27,598 | $33,372 | $39,984 | $58,859 | $60,357 | $61,180 | $50,415 | $44,456 | $42,453 | $54,861 | $57,437 | |
| Net Cash Flow | $12,496 | $17,908 | $26,110 | $27,260 | $12,762 | $14,135 | $1,314 | $697 | ($318) | $14,473 | $9,283 | $8,120 | |
| Cash Balance | $114,496 | $132,404 | $158,514 | $185,773 | $198,536 | $212,671 | $213,985 | $214,682 | $214,364 | $228,837 | $238,119 | $246,240 | |
| 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 | $102,000 | $114,496 | $132,404 | $158,514 | $185,773 | $198,536 | $212,671 | $213,985 | $214,682 | $214,364 | $228,837 | $238,119 | $246,240 |
| Inventory | $50,000 | $42,369 | $30,482 | $17,156 | $19,393 | $20,670 | $21,531 | $18,071 | $14,794 | $12,811 | $16,475 | $18,706 | $19,201 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $152,000 | $156,865 | $162,886 | $175,670 | $205,166 | $219,206 | $234,202 | $232,056 | $229,476 | $227,175 | $245,312 | $256,825 | $265,441 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $287,000 | $287,000 | $287,000 | $287,000 | $287,000 | $287,000 | $287,000 | $287,000 | $287,000 | $287,000 | $287,000 | $287,000 | $287,000 |
| Accumulated Depreciation | $0 | $1,000 | $2,000 | $3,000 | $4,000 | $5,000 | $6,000 | $7,000 | $8,000 | $9,000 | $10,000 | $11,000 | $12,000 |
| Total Long-term Assets | $287,000 | $286,000 | $285,000 | $284,000 | $283,000 | $282,000 | $281,000 | $280,000 | $279,000 | $278,000 | $277,000 | $276,000 | $275,000 |
| Total Assets | $439,000 | $442,865 | $447,886 | $459,670 | $488,166 | $501,206 | $515,202 | $512,056 | $508,476 | $505,175 | $522,312 | $532,825 | $540,441 |
| 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 | $10,525 | $15,045 | $20,960 | $39,736 | $41,145 | $42,284 | $31,673 | $25,748 | $23,271 | $35,542 | $38,096 | $37,214 |
| 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 | $10,525 | $15,045 | $20,960 | $39,736 | $41,145 | $42,284 | $31,673 | $25,748 | $23,271 | $35,542 | $38,096 | $37,214 |
| Long-term Liabilities | $300,000 | $298,267 | $296,523 | $294,770 | $293,006 | $291,232 | $289,448 | $287,653 | $285,848 | $284,032 | $282,205 | $280,368 | $278,521 |
| Total Liabilities | $300,000 | $308,791 | $311,568 | $315,730 | $332,742 | $332,377 | $331,732 | $319,326 | $311,596 | $307,303 | $317,747 | $318,464 | $315,735 |
| Paid-in Capital | $300,000 | $300,000 | $300,000 | $300,000 | $300,000 | $300,000 | $300,000 | $300,000 | $300,000 | $300,000 | $300,000 | $300,000 | $300,000 |
| Retained Earnings | ($161,000) | ($161,000) | ($161,000) | ($161,000) | ($161,000) | ($161,000) | ($161,000) | ($161,000) | ($161,000) | ($161,000) | ($161,000) | ($161,000) | ($161,000) |
| Earnings | $0 | ($4,927) | ($2,683) | $4,940 | $16,425 | $29,829 | $44,470 | $53,730 | $57,880 | $58,872 | $65,565 | $75,361 | $85,707 |
| Total Capital | $139,000 | $134,073 | $136,317 | $143,940 | $155,425 | $168,829 | $183,470 | $192,730 | $196,880 | $197,872 | $204,565 | $214,361 | $224,707 |
| Total Liabilities and Capital | $439,000 | $442,865 | $447,886 | $459,670 | $488,166 | $501,206 | $515,202 | $512,056 | $508,476 | $505,175 | $522,312 | $532,825 | $540,441 |
| Net Worth | $139,000 | $134,073 | $136,317 | $143,940 | $155,425 | $168,829 | $183,470 | $192,730 | $196,880 | $197,872 | $204,565 | $214,361 | $224,707 |
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