Martin Cove Brewing Company
Appendix
| Sales Forecast | |||||||||||||
| Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | ||
| Sales | |||||||||||||
| Microbrews | 0% | $55,000 | $55,000 | $60,000 | $65,000 | $75,000 | $85,000 | $85,000 | $80,000 | $80,000 | $80,000 | $100,000 | $70,000 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Sales | $55,000 | $55,000 | $60,000 | $65,000 | $75,000 | $85,000 | $85,000 | $80,000 | $80,000 | $80,000 | $100,000 | $70,000 | |
| Direct Cost of Sales | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | |
| Microbrews | $16,500 | $16,500 | $18,000 | $19,500 | $22,500 | $25,500 | $25,500 | $24,000 | $24,000 | $24,000 | $30,000 | $21,000 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $16,500 | $16,500 | $18,000 | $19,500 | $22,500 | $25,500 | $25,500 | $24,000 | $24,000 | $24,000 | $30,000 | $21,000 | |
| Personnel Plan | |||||||||||||
| Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | ||
| Bottling and Shipping Mgr | 0% | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
| Brewing Mgrs (2) | 0% | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 |
| Marketing and Sales Mgr | 0% | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
| Bottling Staff | 0% | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 |
| Shipping Staff | 0% | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 |
| Total People | 11 | 11 | 11 | 11 | 11 | 11 | 11 | 11 | 11 | 11 | 11 | 11 | |
| Total Payroll | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | |
| General Assumptions | |||||||||||||
| Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | ||
| 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 | |||||||||||||
| Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | ||
| Sales | $55,000 | $55,000 | $60,000 | $65,000 | $75,000 | $85,000 | $85,000 | $80,000 | $80,000 | $80,000 | $100,000 | $70,000 | |
| Direct Cost of Sales | $16,500 | $16,500 | $18,000 | $19,500 | $22,500 | $25,500 | $25,500 | $24,000 | $24,000 | $24,000 | $30,000 | $21,000 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $16,500 | $16,500 | $18,000 | $19,500 | $22,500 | $25,500 | $25,500 | $24,000 | $24,000 | $24,000 | $30,000 | $21,000 | |
| Gross Margin | $38,500 | $38,500 | $42,000 | $45,500 | $52,500 | $59,500 | $59,500 | $56,000 | $56,000 | $56,000 | $70,000 | $49,000 | |
| Gross Margin % | 70.00% | 70.00% | 70.00% | 70.00% | 70.00% | 70.00% | 70.00% | 70.00% | 70.00% | 70.00% | 70.00% | 70.00% | |
| Expenses | |||||||||||||
| Payroll | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | |
| Sales and Marketing and Other Expenses | $5,000 | $6,000 | $6,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $6,000 | $5,000 | $5,000 | $5,000 | |
| Depreciation | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | |
| Sales Commission | $1,650 | $1,650 | $1,800 | $1,950 | $2,250 | $2,550 | $2,550 | $2,400 | $2,400 | $2,400 | $3,000 | $2,100 | |
| Utilities | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
| Insurance | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Rent | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | $1,400 | |
| Payroll Taxes | 15% | $4,650 | $4,650 | $4,650 | $4,650 | $4,650 | $4,650 | $4,650 | $4,650 | $4,650 | $4,650 | $4,650 | $4,650 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $46,100 | $47,100 | $47,250 | $46,400 | $46,700 | $47,000 | $47,000 | $46,850 | $47,850 | $46,850 | $47,450 | $46,550 | |
| Profit Before Interest and Taxes | ($7,600) | ($8,600) | ($5,250) | ($900) | $5,800 | $12,500 | $12,500 | $9,150 | $8,150 | $9,150 | $22,550 | $2,450 | |
| EBITDA | ($6,400) | ($7,400) | ($4,050) | $300 | $7,000 | $13,700 | $13,700 | $10,350 | $9,350 | $10,350 | $23,750 | $3,650 | |
| Interest Expense | $331 | $328 | $325 | $322 | $319 | $317 | $314 | $311 | $308 | $305 | $303 | $300 | |
| Taxes Incurred | ($2,379) | ($2,678) | ($1,672) | ($367) | $1,644 | $3,655 | $3,656 | $2,652 | $2,353 | $2,653 | $6,674 | $645 | |
| Net Profit | ($5,551) | ($6,249) | ($3,902) | ($856) | $3,836 | $8,528 | $8,530 | $6,187 | $5,489 | $6,191 | $15,573 | $1,505 | |
| Net Profit/Sales | -10.09% | -11.36% | -6.50% | -1.32% | 5.12% | 10.03% | 10.04% | 7.73% | 6.86% | 7.74% | 15.57% | 2.15% | |
| Pro Forma Cash Flow | |||||||||||||
| Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | ||
| Cash Received | |||||||||||||
| Cash from Operations | |||||||||||||
| Cash Sales | $13,750 | $13,750 | $15,000 | $16,250 | $18,750 | $21,250 | $21,250 | $20,000 | $20,000 | $20,000 | $25,000 | $17,500 | |
| Cash from Receivables | $40,000 | $41,375 | $41,250 | $41,375 | $45,125 | $49,000 | $56,500 | $63,750 | $63,625 | $60,000 | $60,000 | $60,500 | |
| Subtotal Cash from Operations | $53,750 | $55,125 | $56,250 | $57,625 | $63,875 | $70,250 | $77,750 | $83,750 | $83,625 | $80,000 | $85,000 | $78,000 | |
| 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 | $53,750 | $55,125 | $56,250 | $57,625 | $63,875 | $70,250 | $77,750 | $83,750 | $83,625 | $80,000 | $85,000 | $78,000 | |
| Expenditures | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | |
| Expenditures from Operations | |||||||||||||
| Cash Spending | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | |
| Bill Payments | $20,883 | $26,586 | $29,193 | $33,418 | $35,537 | $42,440 | $47,462 | $44,126 | $40,041 | $42,287 | $42,183 | $57,746 | |
| Subtotal Spent on Operations | $51,883 | $57,586 | $60,193 | $64,418 | $66,537 | $73,440 | $78,462 | $75,126 | $71,041 | $73,287 | $73,183 | $88,746 | |
| 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 | $335 | $335 | $335 | $335 | $335 | $335 | $335 | $335 | $335 | $335 | $335 | $335 | |
| 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 | $52,218 | $57,921 | $60,528 | $64,753 | $66,872 | $73,775 | $78,797 | $75,461 | $71,376 | $73,622 | $73,518 | $89,081 | |
| Net Cash Flow | $1,532 | ($2,796) | ($4,278) | ($7,128) | ($2,997) | ($3,525) | ($1,047) | $8,289 | $12,249 | $6,378 | $11,482 | ($11,081) | |
| Cash Balance | $81,532 | $78,735 | $74,457 | $67,330 | $64,332 | $60,807 | $59,760 | $68,049 | $80,298 | $86,676 | $98,158 | $87,077 | |
| Pro Forma Balance Sheet | |||||||||||||
| Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | ||
| Assets | Starting Balances | ||||||||||||
| Current Assets | |||||||||||||
| Cash | $80,000 | $81,532 | $78,735 | $74,457 | $67,330 | $64,332 | $60,807 | $59,760 | $68,049 | $80,298 | $86,676 | $98,158 | $87,077 |
| Accounts Receivable | $80,000 | $81,250 | $81,125 | $84,875 | $92,250 | $103,375 | $118,125 | $125,375 | $121,625 | $118,000 | $118,000 | $133,000 | $125,000 |
| Inventory | $20,000 | $18,150 | $18,150 | $19,800 | $21,450 | $24,750 | $28,050 | $28,050 | $26,400 | $26,400 | $26,400 | $33,000 | $23,100 |
| 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 | $185,000 | $185,932 | $183,010 | $184,132 | $186,030 | $197,457 | $211,982 | $218,185 | $221,074 | $229,698 | $236,076 | $269,158 | $240,177 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 |
| Accumulated Depreciation | $12,000 | $13,200 | $14,400 | $15,600 | $16,800 | $18,000 | $19,200 | $20,400 | $21,600 | $22,800 | $24,000 | $25,200 | $26,400 |
| Total Long-term Assets | $88,000 | $86,800 | $85,600 | $84,400 | $83,200 | $82,000 | $80,800 | $79,600 | $78,400 | $77,200 | $76,000 | $74,800 | $73,600 |
| Total Assets | $273,000 | $272,732 | $268,610 | $268,532 | $269,230 | $279,457 | $292,782 | $297,785 | $299,474 | $306,898 | $312,076 | $343,958 | $313,777 |
| Liabilities and Capital | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | |
| Current Liabilities | |||||||||||||
| Accounts Payable | $20,000 | $25,618 | $28,081 | $32,241 | $34,129 | $40,855 | $45,986 | $42,794 | $38,631 | $40,900 | $40,222 | $56,866 | $25,515 |
| 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 | $20,000 | $25,618 | $28,081 | $32,241 | $34,129 | $40,855 | $45,986 | $42,794 | $38,631 | $40,900 | $40,222 | $56,866 | $25,515 |
| Long-term Liabilities | $40,000 | $39,665 | $39,330 | $38,995 | $38,660 | $38,325 | $37,990 | $37,655 | $37,320 | $36,985 | $36,650 | $36,315 | $35,980 |
| Total Liabilities | $60,000 | $65,283 | $67,411 | $71,236 | $72,789 | $79,180 | $83,976 | $80,449 | $75,951 | $77,885 | $76,872 | $93,181 | $61,495 |
| Paid-in Capital | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 |
| Retained Earnings | $109,000 | $133,000 | $133,000 | $133,000 | $133,000 | $133,000 | $133,000 | $133,000 | $133,000 | $133,000 | $133,000 | $133,000 | $133,000 |
| Earnings | $24,000 | ($5,551) | ($11,801) | ($15,703) | ($16,559) | ($12,722) | ($4,194) | $4,336 | $10,524 | $16,013 | $22,204 | $37,777 | $39,282 |
| Total Capital | $213,000 | $207,449 | $201,199 | $197,297 | $196,441 | $200,278 | $208,806 | $217,336 | $223,524 | $229,013 | $235,204 | $250,777 | $252,282 |
| Total Liabilities and Capital | $273,000 | $272,732 | $268,610 | $268,532 | $269,230 | $279,457 | $292,782 | $297,785 | $299,474 | $306,898 | $312,076 | $343,958 | $313,777 |
| Net Worth | $213,000 | $207,449 | $201,199 | $197,297 | $196,441 | $200,278 | $208,806 | $217,336 | $223,524 | $229,013 | $235,204 | $250,777 | $252,282 |
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