MusicWest
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 | |||||||||||||
Guitar Sales | 0% | $7,000 | $8,500 | $10,500 | $10,500 | $12,500 | $14,500 | $17,000 | $17,500 | $22,000 | $35,000 | $22,000 | $18,000 |
Band and Orchestral Instruments | 0% | $3,200 | $3,500 | $3,460 | $3,632 | $3,200 | $6,576 | $6,576 | $5,900 | $7,000 | $10,000 | $3,100 | $2,000 |
Amplifiers, Keyboards etc. | 0% | $1,200 | $1,500 | $1,700 | $1,900 | $2,000 | $2,000 | $2,000 | $2,200 | $3,000 | $5,200 | $2,900 | $2,000 |
Accessories | 0% | $9,000 | $11,004 | $11,316 | $13,464 | $13,900 | $13,500 | $18,516 | $17,590 | $20,000 | $30,000 | $22,000 | $15,984 |
Print & DVD | 0% | $300 | $750 | $800 | $1,000 | $1,000 | $1,200 | $1,200 | $1,200 | $2,100 | $3,800 | $1,200 | $1,000 |
Rentals | 0% | $0 | $100 | $250 | $300 | $500 | $500 | $500 | $600 | $600 | $1,000 | $400 | $200 |
Repair Labor | 0% | $350 | $500 | $650 | $700 | $1,005 | $1,400 | $1,755 | $1,500 | $1,900 | $3,500 | $2,500 | $1,500 |
Total Sales | $21,050 | $25,854 | $28,676 | $31,496 | $34,105 | $39,676 | $47,547 | $46,490 | $56,600 | $88,500 | $54,100 | $40,684 | |
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 | |
Guitar Sales | $4,200 | $5,100 | $6,300 | $6,300 | $7,500 | $8,700 | $10,200 | $10,500 | $13,200 | $21,000 | $13,200 | $10,800 | |
Band and Orchestral Instruments | $1,600 | $1,750 | $1,730 | $1,816 | $1,600 | $3,288 | $3,288 | $2,950 | $3,500 | $5,000 | $1,550 | $1,000 | |
Amplifiers, Keyboards etc. | $720 | $900 | $1,020 | $1,140 | $1,200 | $1,200 | $1,200 | $1,320 | $1,800 | $3,120 | $1,740 | $1,200 | |
Accessories | $3,600 | $4,402 | $4,526 | $5,386 | $5,560 | $5,400 | $7,406 | $7,036 | $8,000 | $12,000 | $8,800 | $6,394 | |
Print & DVD | $180 | $450 | $480 | $600 | $600 | $720 | $720 | $720 | $1,260 | $2,280 | $720 | $600 | |
Rentals | $0 | $100 | $250 | $300 | $500 | $500 | $500 | $600 | $600 | $1,000 | $400 | $200 | |
Repair Labor | $53 | $75 | $98 | $105 | $151 | $210 | $263 | $225 | $285 | $525 | $375 | $225 | |
Subtotal Direct Cost of Sales | $10,353 | $12,777 | $14,404 | $15,647 | $17,111 | $20,018 | $23,578 | $23,351 | $28,645 | $44,925 | $26,785 | $20,419 |
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 | ||
Dave Moore | 0% | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $3,500 | $2,500 | $2,500 |
Kayle Moore | 0% | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $3,500 | $2,500 | $2,500 |
C. Ray Himes | 0% | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 |
Full-time Employee #1 | 0% | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 |
Full-time Employee #2 | 0% | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 | $1,700 |
Part-time Employee #1 | 0% | $450 | $450 | $450 | $450 | $450 | $450 | $450 | $550 | $750 | $950 | $750 | $450 |
Part-time Employee #2 | 0% | $450 | $450 | $450 | $450 | $450 | $450 | $450 | $550 | $750 | $950 | $750 | $450 |
Seasonal Employee #1 | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $700 | $700 | $350 | $0 |
Total People | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 8 | 8 | 8 | 7 | |
Total Payroll | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,700 | $12,800 | $15,200 | $12,450 | $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 | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | |
Long-term Interest Rate | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | |
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 | $21,050 | $25,854 | $28,676 | $31,496 | $34,105 | $39,676 | $47,547 | $46,490 | $56,600 | $88,500 | $54,100 | $40,684 | |
Direct Cost of Sales | $10,353 | $12,777 | $14,404 | $15,647 | $17,111 | $20,018 | $23,578 | $23,351 | $28,645 | $44,925 | $26,785 | $20,419 | |
Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $10,353 | $12,777 | $14,404 | $15,647 | $17,111 | $20,018 | $23,578 | $23,351 | $28,645 | $44,925 | $26,785 | $20,419 | |
Gross Margin | $10,698 | $13,077 | $14,272 | $15,849 | $16,994 | $19,658 | $23,969 | $23,139 | $27,955 | $43,575 | $27,315 | $20,265 | |
Gross Margin % | 50.82% | 50.58% | 49.77% | 50.32% | 49.83% | 49.55% | 50.41% | 49.77% | 49.39% | 49.24% | 50.49% | 49.81% | |
Expenses | |||||||||||||
Payroll | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,700 | $12,800 | $15,200 | $12,450 | $11,500 | |
Sales and Marketing and Other Expenses | $6,400 | $3,400 | $3,400 | $3,400 | $5,900 | $3,400 | $3,400 | $2,400 | $4,500 | $5,700 | $5,900 | $3,400 | |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Acountant Expense | $800 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | |
Utilities | $1,040 | $1,040 | $1,130 | $1,380 | $1,790 | $1,460 | $1,370 | $1,460 | $1,760 | $2,210 | $1,400 | $1,080 | |
Insurance | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | |
Rent | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | |
Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Website Maintenance | $25 | $25 | $25 | $25 | $25 | $25 | $25 | $25 | $25 | $25 | $25 | $25 | |
Total Operating Expenses | $22,665 | $19,265 | $19,355 | $19,605 | $22,515 | $19,685 | $19,595 | $18,885 | $22,385 | $26,435 | $23,075 | $19,305 | |
Profit Before Interest and Taxes | ($11,968) | ($6,188) | ($5,083) | ($3,756) | ($5,521) | ($27) | $4,374 | $4,254 | $5,570 | $17,140 | $4,240 | $960 | |
EBITDA | ($11,968) | ($6,188) | ($5,083) | ($3,756) | ($5,521) | ($27) | $4,374 | $4,254 | $5,570 | $17,140 | $4,240 | $960 | |
Interest Expense | $1,067 | $1,051 | $1,035 | $1,019 | $1,003 | $987 | $971 | $955 | $939 | $923 | $906 | $890 | |
Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | ($13,035) | ($7,239) | ($6,118) | ($4,775) | ($6,524) | ($1,014) | $3,404 | $3,299 | $4,631 | $16,217 | $3,334 | $70 | |
Net Profit/Sales | -61.92% | -28.00% | -21.33% | -15.16% | -19.13% | -2.56% | 7.16% | 7.10% | 8.18% | 18.32% | 6.16% | 0.17% |
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 | $21,050 | $25,854 | $28,676 | $31,496 | $34,105 | $39,676 | $47,547 | $46,490 | $56,600 | $88,500 | $54,100 | $40,684 | |
Subtotal Cash from Operations | $21,050 | $25,854 | $28,676 | $31,496 | $34,105 | $39,676 | $47,547 | $46,490 | $56,600 | $88,500 | $54,100 | $40,684 | |
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 | $21,050 | $25,854 | $28,676 | $31,496 | $34,105 | $39,676 | $47,547 | $46,490 | $56,600 | $88,500 | $54,100 | $40,684 | |
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 | $11,700 | $12,800 | $15,200 | $12,450 | $11,500 | |
Bill Payments | $408 | $12,118 | $8,819 | $8,898 | $9,220 | $11,923 | $9,168 | $9,466 | $21,860 | $45,992 | $73,103 | $18,487 | |
Subtotal Spent on Operations | $11,908 | $23,618 | $20,319 | $20,398 | $20,720 | $23,423 | $20,668 | $21,166 | $34,660 | $61,192 | $85,553 | $29,987 | |
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 | $2,969 | $2,969 | $2,969 | $2,969 | $2,969 | $2,969 | $2,969 | $2,969 | $2,969 | $2,969 | $2,969 | $2,969 | |
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 | $14,877 | $26,587 | $23,288 | $23,367 | $23,689 | $26,392 | $23,637 | $24,135 | $37,629 | $64,161 | $88,522 | $32,956 | |
Net Cash Flow | $6,173 | ($733) | $5,388 | $8,129 | $10,416 | $13,284 | $23,910 | $22,355 | $18,971 | $24,339 | ($34,422) | $7,728 | |
Cash Balance | $74,673 | $73,940 | $79,328 | $87,457 | $97,873 | $111,157 | $135,067 | $157,422 | $176,392 | $200,732 | $166,310 | $174,037 |
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 | $68,500 | $74,673 | $73,940 | $79,328 | $87,457 | $97,873 | $111,157 | $135,067 | $157,422 | $176,392 | $200,732 | $166,310 | $174,037 |
Inventory | $150,000 | $139,648 | $126,871 | $112,467 | $96,820 | $79,710 | $59,692 | $36,114 | $25,686 | $31,510 | $49,418 | $29,464 | $22,460 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $218,500 | $214,321 | $200,811 | $191,795 | $184,278 | $177,583 | $170,848 | $171,181 | $183,108 | $207,902 | $250,149 | $195,773 | $196,498 |
Long-term Assets | |||||||||||||
Long-term Assets | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Long-term Assets | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 |
Total Assets | $226,000 | $221,821 | $208,311 | $199,295 | $191,778 | $185,083 | $178,348 | $178,681 | $190,608 | $215,402 | $257,649 | $203,273 | $203,998 |
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 | $11,825 | $8,522 | $8,594 | $8,820 | $11,617 | $8,866 | $8,764 | $20,361 | $43,492 | $72,491 | $17,750 | $21,374 |
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 | $11,825 | $8,522 | $8,594 | $8,820 | $11,617 | $8,866 | $8,764 | $20,361 | $43,492 | $72,491 | $17,750 | $21,374 |
Long-term Liabilities | $200,000 | $197,031 | $194,062 | $191,093 | $188,124 | $185,155 | $182,186 | $179,217 | $176,248 | $173,279 | $170,310 | $167,341 | $164,372 |
Total Liabilities | $200,000 | $208,856 | $202,584 | $199,687 | $196,944 | $196,772 | $191,052 | $187,981 | $196,609 | $216,771 | $242,801 | $185,091 | $185,746 |
Paid-in Capital | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 |
Retained Earnings | ($34,000) | ($34,000) | ($34,000) | ($34,000) | ($34,000) | ($34,000) | ($34,000) | ($34,000) | ($34,000) | ($34,000) | ($34,000) | ($34,000) | ($34,000) |
Earnings | $0 | ($13,035) | ($20,274) | ($26,392) | ($31,166) | ($37,690) | ($38,704) | ($35,300) | ($32,001) | ($27,369) | ($11,152) | ($7,818) | ($7,748) |
Total Capital | $26,000 | $12,965 | $5,726 | ($392) | ($5,166) | ($11,690) | ($12,704) | ($9,300) | ($6,001) | ($1,369) | $14,848 | $18,182 | $18,252 |
Total Liabilities and Capital | $226,000 | $221,821 | $208,311 | $199,295 | $191,778 | $185,083 | $178,348 | $178,681 | $190,608 | $215,402 | $257,649 | $203,273 | $203,998 |
Net Worth | $26,000 | $12,965 | $5,726 | ($392) | ($5,166) | ($11,690) | ($12,704) | ($9,300) | ($6,001) | ($1,369) | $14,848 | $18,182 | $18,252 |