Mojo Music
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 | ||
| Unit Sales | |||||||||||||
| New CDs | 0% | 1,000 | 1,000 | 1,300 | 1,400 | 1,800 | 2,000 | 1,500 | 1,200 | 1,600 | 1,600 | 1,900 | 2,100 |
| Used CDs | 0% | 2,000 | 2,500 | 2,500 | 2,800 | 3,000 | 3,200 | 2,500 | 2,000 | 2,800 | 3,000 | 3,200 | 4,000 |
| CD/DVD Recording Media | 0% | 1,000 | 1,000 | 1,000 | 1,300 | 1,500 | 1,300 | 1,000 | 1,000 | 1,000 | 1,300 | 1,700 | 2,000 |
| DVD Rentals | 0% | 2,000 | 1,200 | 1,300 | 1,800 | 2,200 | 2,800 | 2,000 | 2,000 | 2,800 | 3,400 | 3,400 | 3,200 |
| Other | 0% | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Unit Sales | 6,000 | 5,700 | 6,100 | 7,300 | 8,500 | 9,300 | 7,000 | 6,200 | 8,200 | 9,300 | 10,200 | 11,300 | |
| Unit Prices | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| New CDs | $16.00 | $16.00 | $16.00 | $16.00 | $16.00 | $16.00 | $16.00 | $16.00 | $16.00 | $16.00 | $16.00 | $16.00 | |
| Used CDs | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | |
| CD/DVD Recording Media | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | |
| DVD Rentals | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | |
| 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 | |
| Sales | |||||||||||||
| New CDs | $16,000 | $16,000 | $20,800 | $22,400 | $28,800 | $32,000 | $24,000 | $19,200 | $25,600 | $25,600 | $30,400 | $33,600 | |
| Used CDs | $20,000 | $25,000 | $25,000 | $28,000 | $30,000 | $32,000 | $25,000 | $20,000 | $28,000 | $30,000 | $32,000 | $40,000 | |
| CD/DVD Recording Media | $10,000 | $10,000 | $10,000 | $13,000 | $15,000 | $13,000 | $10,000 | $10,000 | $10,000 | $13,000 | $17,000 | $20,000 | |
| DVD Rentals | $6,000 | $3,600 | $3,900 | $5,400 | $6,600 | $8,400 | $6,000 | $6,000 | $8,400 | $10,200 | $10,200 | $9,600 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Sales | $52,000 | $54,600 | $59,700 | $68,800 | $80,400 | $85,400 | $65,000 | $55,200 | $72,000 | $78,800 | $89,600 | $103,200 | |
| Direct Unit Costs | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| New CDs | 0.00% | $11.00 | $11.00 | $11.00 | $11.00 | $11.00 | $11.00 | $11.00 | $11.00 | $11.00 | $11.00 | $11.00 | $11.00 |
| Used CDs | 0.00% | $5.00 | $5.00 | $5.00 | $5.00 | $5.00 | $5.00 | $5.00 | $5.00 | $5.00 | $5.00 | $5.00 | $5.00 |
| CD/DVD Recording Media | 0.00% | $4.00 | $4.00 | $4.00 | $4.00 | $4.00 | $4.00 | $4.00 | $4.00 | $4.00 | $4.00 | $4.00 | $4.00 |
| DVD Rentals | 0.00% | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| 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 | $0.00 |
| Direct Cost of Sales | |||||||||||||
| New CDs | $11,000 | $11,000 | $14,300 | $15,400 | $19,800 | $22,000 | $16,500 | $13,200 | $17,600 | $17,600 | $20,900 | $23,100 | |
| Used CDs | $10,000 | $12,500 | $12,500 | $14,000 | $15,000 | $16,000 | $12,500 | $10,000 | $14,000 | $15,000 | $16,000 | $20,000 | |
| CD/DVD Recording Media | $4,000 | $4,000 | $4,000 | $5,200 | $6,000 | $5,200 | $4,000 | $4,000 | $4,000 | $5,200 | $6,800 | $8,000 | |
| DVD Rentals | $2,000 | $1,200 | $1,300 | $1,800 | $2,200 | $2,800 | $2,000 | $2,000 | $2,800 | $3,400 | $3,400 | $3,200 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $27,000 | $28,700 | $32,100 | $36,400 | $43,000 | $46,000 | $35,000 | $29,200 | $38,400 | $41,200 | $47,100 | $54,300 | |
| 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 | ||
| Manager | 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 |
| Assistant Manager | 0% | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
| Customer Assistants | 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 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total People | 6 | 6 | 6 | 6 | 6 | 6 | 6 | 6 | 6 | 6 | 6 | 6 | |
| Total Payroll | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | |
| 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 | $52,000 | $54,600 | $59,700 | $68,800 | $80,400 | $85,400 | $65,000 | $55,200 | $72,000 | $78,800 | $89,600 | $103,200 | |
| Direct Cost of Sales | $27,000 | $28,700 | $32,100 | $36,400 | $43,000 | $46,000 | $35,000 | $29,200 | $38,400 | $41,200 | $47,100 | $54,300 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $27,000 | $28,700 | $32,100 | $36,400 | $43,000 | $46,000 | $35,000 | $29,200 | $38,400 | $41,200 | $47,100 | $54,300 | |
| Gross Margin | $25,000 | $25,900 | $27,600 | $32,400 | $37,400 | $39,400 | $30,000 | $26,000 | $33,600 | $37,600 | $42,500 | $48,900 | |
| Gross Margin % | 48.08% | 47.44% | 46.23% | 47.09% | 46.52% | 46.14% | 46.15% | 47.10% | 46.67% | 47.72% | 47.43% | 47.38% | |
| Expenses | |||||||||||||
| Payroll | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | |
| Sales and Marketing and Other Expenses | $20,000 | $20,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | |
| Depreciation | $595 | $595 | $595 | $595 | $595 | $595 | $595 | $595 | $595 | $595 | $595 | $595 | |
| Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Utilities | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | |
| Insurance | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Rent | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | |
| Payroll Taxes | 15% | $1,725 | $1,725 | $1,725 | $1,725 | $1,725 | $1,725 | $1,725 | $1,725 | $1,725 | $1,725 | $1,725 | $1,725 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $38,220 | $38,220 | $24,220 | $24,220 | $24,220 | $24,220 | $24,220 | $24,220 | $24,220 | $24,220 | $24,220 | $24,220 | |
| Profit Before Interest and Taxes | ($13,220) | ($12,320) | $3,380 | $8,180 | $13,180 | $15,180 | $5,780 | $1,780 | $9,380 | $13,380 | $18,280 | $24,680 | |
| EBITDA | ($12,625) | ($11,725) | $3,975 | $8,775 | $13,775 | $15,775 | $6,375 | $2,375 | $9,975 | $13,975 | $18,875 | $25,275 | |
| Interest Expense | $819 | $806 | $792 | $778 | $764 | $750 | $736 | $722 | $708 | $695 | $681 | $667 | |
| Taxes Incurred | ($4,212) | ($3,938) | $776 | $2,221 | $3,725 | $4,329 | $1,513 | $317 | $2,601 | $3,806 | $5,280 | $7,204 | |
| Net Profit | ($9,828) | ($9,188) | $1,812 | $5,182 | $8,691 | $10,101 | $3,531 | $740 | $6,070 | $8,880 | $12,320 | $16,809 | |
| Net Profit/Sales | -18.90% | -16.83% | 3.03% | 7.53% | 10.81% | 11.83% | 5.43% | 1.34% | 8.43% | 11.27% | 13.75% | 16.29% | |
| 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 | $13,000 | $13,650 | $14,925 | $17,200 | $20,100 | $21,350 | $16,250 | $13,800 | $18,000 | $19,700 | $22,400 | $25,800 | |
| Cash from Receivables | $0 | $1,300 | $39,065 | $41,078 | $45,003 | $51,890 | $60,425 | $63,540 | $48,505 | $41,820 | $54,170 | $59,370 | |
| Subtotal Cash from Operations | $13,000 | $14,950 | $53,990 | $58,278 | $65,103 | $73,240 | $76,675 | $77,340 | $66,505 | $61,520 | $76,570 | $85,170 | |
| 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 | $68,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Received | $13,000 | $82,950 | $53,990 | $58,278 | $65,103 | $73,240 | $76,675 | $77,340 | $66,505 | $61,520 | $76,570 | $85,170 | |
| 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 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | |
| Bill Payments | $2,648 | $78,570 | $53,429 | $49,757 | $56,607 | $66,861 | $65,530 | $37,231 | $36,917 | $63,853 | $61,264 | $72,027 | |
| Subtotal Spent on Operations | $14,148 | $90,070 | $64,929 | $61,257 | $68,107 | $78,361 | $77,030 | $48,731 | $48,417 | $75,353 | $72,764 | $83,527 | |
| 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 | $1,666 | $1,666 | $1,666 | $1,666 | $1,666 | $1,666 | $1,666 | $1,666 | $1,666 | $1,666 | $1,666 | $1,666 | |
| 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 | $15,814 | $91,736 | $66,595 | $62,923 | $69,773 | $80,027 | $78,696 | $50,397 | $50,083 | $77,019 | $74,430 | $85,193 | |
| Net Cash Flow | ($2,814) | ($8,786) | ($12,605) | ($4,646) | ($4,671) | ($6,787) | ($2,021) | $26,943 | $16,422 | ($15,499) | $2,140 | ($23) | |
| Cash Balance | $46,186 | $37,400 | $24,795 | $20,150 | $15,479 | $8,691 | $6,671 | $33,613 | $50,035 | $34,536 | $36,676 | $36,653 | |
| 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 | $49,000 | $46,186 | $37,400 | $24,795 | $20,150 | $15,479 | $8,691 | $6,671 | $33,613 | $50,035 | $34,536 | $36,676 | $36,653 |
| Accounts Receivable | $0 | $39,000 | $78,650 | $84,360 | $94,883 | $110,180 | $122,340 | $110,665 | $88,525 | $94,020 | $111,300 | $124,330 | $142,360 |
| Inventory | $0 | $29,700 | $31,570 | $35,310 | $40,040 | $47,300 | $50,600 | $38,500 | $32,120 | $42,240 | $45,320 | $51,810 | $59,730 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $49,000 | $114,886 | $147,620 | $144,465 | $155,072 | $172,959 | $181,631 | $155,836 | $154,258 | $186,295 | $191,156 | $212,816 | $238,743 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 |
| Accumulated Depreciation | $0 | $595 | $1,190 | $1,785 | $2,380 | $2,975 | $3,570 | $4,165 | $4,760 | $5,355 | $5,950 | $6,545 | $7,140 |
| Total Long-term Assets | $50,000 | $49,405 | $48,810 | $48,215 | $47,620 | $47,025 | $46,430 | $45,835 | $45,240 | $44,645 | $44,050 | $43,455 | $42,860 |
| Total Assets | $99,000 | $164,291 | $196,430 | $192,680 | $202,692 | $219,984 | $228,061 | $201,671 | $199,498 | $230,940 | $235,206 | $256,271 | $281,603 |
| 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 | $76,785 | $51,777 | $47,882 | $54,378 | $64,645 | $64,287 | $36,032 | $34,785 | $61,823 | $58,875 | $69,286 | $79,475 |
| 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 | $76,785 | $51,777 | $47,882 | $54,378 | $64,645 | $64,287 | $36,032 | $34,785 | $61,823 | $58,875 | $69,286 | $79,475 |
| Long-term Liabilities | $100,000 | $98,334 | $96,668 | $95,002 | $93,336 | $91,670 | $90,004 | $88,338 | $86,672 | $85,006 | $83,340 | $81,674 | $80,008 |
| Total Liabilities | $100,000 | $175,119 | $148,445 | $142,884 | $147,714 | $156,315 | $154,291 | $124,370 | $121,457 | $146,829 | $142,215 | $150,960 | $159,483 |
| Paid-in Capital | $150,000 | $150,000 | $218,000 | $218,000 | $218,000 | $218,000 | $218,000 | $218,000 | $218,000 | $218,000 | $218,000 | $218,000 | $218,000 |
| Retained Earnings | ($151,000) | ($151,000) | ($151,000) | ($151,000) | ($151,000) | ($151,000) | ($151,000) | ($151,000) | ($151,000) | ($151,000) | ($151,000) | ($151,000) | ($151,000) |
| Earnings | $0 | ($9,828) | ($19,016) | ($17,204) | ($12,022) | ($3,331) | $6,770 | $10,301 | $11,041 | $17,111 | $25,991 | $38,311 | $55,120 |
| Total Capital | ($1,000) | ($10,828) | $47,984 | $49,796 | $54,978 | $63,669 | $73,770 | $77,301 | $78,041 | $84,111 | $92,991 | $105,311 | $122,120 |
| Total Liabilities and Capital | $99,000 | $164,291 | $196,430 | $192,680 | $202,692 | $219,984 | $228,061 | $201,671 | $199,498 | $230,940 | $235,206 | $256,271 | $281,603 |
| Net Worth | ($1,000) | ($10,828) | $47,984 | $49,796 | $54,978 | $63,669 | $73,770 | $77,301 | $78,041 | $84,111 | $92,991 | $105,311 | $122,120 |
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