Recycled Riding Dreams
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 | |||||||||||||
| Used Motorcycles | 0% | $9,000 | $11,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $11,000 | $12,000 | $11,000 | $12,000 | $11,000 |
| Used Motorcycle Parts | 0% | $4,000 | $5,000 | $7,000 | $8,000 | $9,000 | $10,000 | $8,000 | $9,000 | $10,000 | $10,000 | $9,000 | $9,000 |
| Total Sales | $13,000 | $16,000 | $19,000 | $20,000 | $21,000 | $22,000 | $20,000 | $20,000 | $22,000 | $21,000 | $21,000 | $20,000 | |
| 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 | |
| Used Motorcycles | $5,000 | $5,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $5,000 | $6,000 | $5,000 | $6,000 | $500 | |
| Used Motorcycle Parts | $2,000 | $2,500 | $3,500 | $4,000 | $4,500 | $5,000 | $4,000 | $4,500 | $5,000 | $5,000 | $4,500 | $500 | |
| Subtotal Direct Cost of Sales | $7,000 | $7,500 | $9,500 | $10,000 | $10,500 | $11,000 | $10,000 | $9,500 | $11,000 | $10,000 | $10,500 | $1,000 | |
| 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 | ||
| Brian Jefferson | 0% | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
| Staff Person | 0% | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 |
| Total People | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | |
| Total Payroll | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | |
| 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 | $13,000 | $16,000 | $19,000 | $20,000 | $21,000 | $22,000 | $20,000 | $20,000 | $22,000 | $21,000 | $21,000 | $20,000 | |
| Direct Cost of Sales | $7,000 | $7,500 | $9,500 | $10,000 | $10,500 | $11,000 | $10,000 | $9,500 | $11,000 | $10,000 | $10,500 | $1,000 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $7,000 | $7,500 | $9,500 | $10,000 | $10,500 | $11,000 | $10,000 | $9,500 | $11,000 | $10,000 | $10,500 | $1,000 | |
| Gross Margin | $6,000 | $8,500 | $9,500 | $10,000 | $10,500 | $11,000 | $10,000 | $10,500 | $11,000 | $11,000 | $10,500 | $19,000 | |
| Gross Margin % | 46.15% | 53.13% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 52.50% | 50.00% | 52.38% | 50.00% | 95.00% | |
| Expenses | |||||||||||||
| Payroll | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | |
| Sales and Marketing and Other Expenses | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Depreciation | $357 | $357 | $357 | $357 | $357 | $357 | $357 | $357 | $357 | $357 | $357 | $357 | |
| 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 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Rent | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | |
| Payroll Taxes | 15% | $870 | $870 | $870 | $870 | $870 | $870 | $870 | $870 | $870 | $870 | $870 | $870 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $9,027 | $9,027 | $9,027 | $9,027 | $9,027 | $9,027 | $9,027 | $9,027 | $9,027 | $9,027 | $9,027 | $9,027 | |
| Profit Before Interest and Taxes | ($3,027) | ($527) | $473 | $973 | $1,473 | $1,973 | $973 | $1,473 | $1,973 | $1,973 | $1,473 | $9,973 | |
| EBITDA | ($2,670) | ($170) | $830 | $1,330 | $1,830 | $2,330 | $1,330 | $1,830 | $2,330 | $2,330 | $1,830 | $10,330 | |
| Interest Expense | $167 | $167 | $167 | $167 | $167 | $167 | $167 | $167 | $167 | $167 | $167 | $167 | |
| Taxes Incurred | ($958) | ($208) | $92 | $242 | $392 | $542 | $242 | $392 | $542 | $542 | $392 | $2,942 | |
| Net Profit | ($2,236) | ($486) | $214 | $564 | $914 | $1,264 | $564 | $914 | $1,264 | $1,264 | $914 | $6,864 | |
| Net Profit/Sales | -17.20% | -3.03% | 1.13% | 2.82% | 4.35% | 5.75% | 2.82% | 4.57% | 5.75% | 6.02% | 4.35% | 34.32% | |
| 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 | $5,200 | $6,400 | $7,600 | $8,000 | $8,400 | $8,800 | $8,000 | $8,000 | $8,800 | $8,400 | $8,400 | $8,000 | |
| Cash from Receivables | $0 | $260 | $7,860 | $9,660 | $11,420 | $12,020 | $12,620 | $13,160 | $12,000 | $12,040 | $13,180 | $12,600 | |
| Subtotal Cash from Operations | $5,200 | $6,660 | $15,460 | $17,660 | $19,820 | $20,820 | $20,620 | $21,160 | $20,800 | $20,440 | $21,580 | $20,600 | |
| 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 | $5,200 | $6,660 | $15,460 | $17,660 | $19,820 | $20,820 | $20,620 | $21,160 | $20,800 | $20,440 | $21,580 | $20,600 | |
| 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 | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | $5,800 | |
| Bill Payments | $69 | $2,104 | $2,839 | $3,134 | $3,652 | $14,500 | $15,030 | $12,185 | $12,507 | $16,104 | $12,545 | $14,195 | |
| Subtotal Spent on Operations | $5,869 | $7,904 | $8,639 | $8,934 | $9,452 | $20,300 | $20,830 | $17,985 | $18,307 | $21,904 | $18,345 | $19,995 | |
| 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 | $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 | $5,869 | $7,904 | $8,639 | $8,934 | $9,452 | $20,300 | $20,830 | $17,985 | $18,307 | $21,904 | $18,345 | $19,995 | |
| Net Cash Flow | ($669) | ($1,244) | $6,821 | $8,726 | $10,368 | $520 | ($210) | $3,175 | $2,493 | ($1,464) | $3,235 | $605 | |
| Cash Balance | $3,331 | $2,087 | $8,909 | $17,635 | $28,003 | $28,523 | $28,313 | $31,487 | $33,981 | $32,517 | $35,752 | $36,356 | |
| 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 | $4,000 | $3,331 | $2,087 | $8,909 | $17,635 | $28,003 | $28,523 | $28,313 | $31,487 | $33,981 | $32,517 | $35,752 | $36,356 |
| Accounts Receivable | $0 | $7,800 | $17,140 | $20,680 | $23,020 | $24,200 | $25,380 | $24,760 | $23,600 | $24,800 | $25,360 | $24,780 | $24,180 |
| Inventory | $45,000 | $38,000 | $30,500 | $21,000 | $11,000 | $11,550 | $12,100 | $11,000 | $10,450 | $12,100 | $11,000 | $11,550 | $10,550 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $49,000 | $49,131 | $49,727 | $50,589 | $51,655 | $63,753 | $66,003 | $64,073 | $65,537 | $70,881 | $68,877 | $72,082 | $71,086 |
| Long-term Assets | |||||||||||||
| Long-term 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 |
| Accumulated Depreciation | $0 | $357 | $714 | $1,071 | $1,428 | $1,785 | $2,142 | $2,499 | $2,856 | $3,213 | $3,570 | $3,927 | $4,284 |
| Total Long-term Assets | $15,000 | $14,643 | $14,286 | $13,929 | $13,572 | $13,215 | $12,858 | $12,501 | $12,144 | $11,787 | $11,430 | $11,073 | $10,716 |
| Total Assets | $64,000 | $63,774 | $64,013 | $64,518 | $65,227 | $76,968 | $78,861 | $76,574 | $77,681 | $82,668 | $80,307 | $83,155 | $81,802 |
| 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 | $2,009 | $2,734 | $3,024 | $3,169 | $13,996 | $14,624 | $11,773 | $11,966 | $15,688 | $12,063 | $13,996 | $5,779 |
| 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 | $2,009 | $2,734 | $3,024 | $3,169 | $13,996 | $14,624 | $11,773 | $11,966 | $15,688 | $12,063 | $13,996 | $5,779 |
| Long-term Liabilities | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 |
| Total Liabilities | $20,000 | $22,009 | $22,734 | $23,024 | $23,169 | $33,996 | $34,624 | $31,773 | $31,966 | $35,688 | $32,063 | $33,996 | $25,779 |
| Paid-in Capital | $55,000 | $55,000 | $55,000 | $55,000 | $55,000 | $55,000 | $55,000 | $55,000 | $55,000 | $55,000 | $55,000 | $55,000 | $55,000 |
| Retained Earnings | ($11,000) | ($11,000) | ($11,000) | ($11,000) | ($11,000) | ($11,000) | ($11,000) | ($11,000) | ($11,000) | ($11,000) | ($11,000) | ($11,000) | ($11,000) |
| Earnings | $0 | ($2,236) | ($2,721) | ($2,507) | ($1,942) | ($1,028) | $237 | $801 | $1,715 | $2,980 | $4,244 | $5,159 | $12,023 |
| Total Capital | $44,000 | $41,764 | $41,279 | $41,493 | $42,058 | $42,972 | $44,237 | $44,801 | $45,715 | $46,980 | $48,244 | $49,159 | $56,023 |
| Total Liabilities and Capital | $64,000 | $63,774 | $64,013 | $64,518 | $65,227 | $76,968 | $78,861 | $76,574 | $77,681 | $82,668 | $80,307 | $83,155 | $81,802 |
| Net Worth | $44,000 | $41,764 | $41,279 | $41,493 | $42,058 | $42,972 | $44,237 | $44,801 | $45,715 | $46,980 | $48,244 | $49,159 | $56,023 |
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