Web Applications, Inc.
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 | |||||||||||||
| Online Office Manager | 0% | $5,000 | $10,000 | $10,000 | $15,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Sales | $5,000 | $10,000 | $10,000 | $15,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $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 | |
| Online Office Manager | $2,500 | $5,000 | $5,000 | $7,500 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $2,500 | $5,000 | $5,000 | $7,500 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | |
| 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 | ||
| Lester Andrews | 0% | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 |
| Dwight Austion | 0% | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 |
| Service Manager | 0% | $2,173 | $2,173 | $2,173 | $2,173 | $2,173 | $2,173 | $2,173 | $2,173 | $2,173 | $2,173 | $2,173 | $2,173 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total People | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | |
| Total Payroll | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | |
| 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% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
| 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 | $5,000 | $10,000 | $10,000 | $15,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | |
| Direct Cost of Sales | $2,500 | $5,000 | $5,000 | $7,500 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | |
| Other | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $600 | |
| Total Cost of Sales | $2,900 | $5,400 | $5,400 | $7,900 | $10,400 | $10,400 | $10,400 | $10,400 | $10,400 | $10,400 | $10,400 | $10,600 | |
| Gross Margin | $2,100 | $4,600 | $4,600 | $7,100 | $9,600 | $9,600 | $9,600 | $9,600 | $9,600 | $9,600 | $9,600 | $9,400 | |
| Gross Margin % | 42.00% | 46.00% | 46.00% | 47.33% | 48.00% | 48.00% | 48.00% | 48.00% | 48.00% | 48.00% | 48.00% | 47.00% | |
| Expenses | |||||||||||||
| Payroll | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | |
| Sales and Marketing and Other Expenses | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 | |
| Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Research and Development | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | |
| Utilities | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | |
| Insurance | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | |
| Rent | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Payroll Taxes | 15% | $1,196 | $1,196 | $1,196 | $1,196 | $1,196 | $1,196 | $1,196 | $1,196 | $1,196 | $1,196 | $1,196 | $1,196 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $12,667 | $12,667 | $12,667 | $12,667 | $12,667 | $12,667 | $12,667 | $12,667 | $12,667 | $12,667 | $12,667 | $12,667 | |
| Profit Before Interest and Taxes | ($10,567) | ($8,067) | ($8,067) | ($5,567) | ($3,067) | ($3,067) | ($3,067) | ($3,067) | ($3,067) | ($3,067) | ($3,067) | ($3,267) | |
| EBITDA | ($10,567) | ($8,067) | ($8,067) | ($5,567) | ($3,067) | ($3,067) | ($3,067) | ($3,067) | ($3,067) | ($3,067) | ($3,067) | ($3,267) | |
| Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Net Profit | ($10,567) | ($8,067) | ($8,067) | ($5,567) | ($3,067) | ($3,067) | ($3,067) | ($3,067) | ($3,067) | ($3,067) | ($3,067) | ($3,267) | |
| Net Profit/Sales | -211.33% | -80.67% | -80.67% | -37.11% | -15.33% | -15.33% | -15.33% | -15.33% | -15.33% | -15.33% | -15.33% | -16.33% | |
| 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 | $1,250 | $2,500 | $2,500 | $3,750 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | |
| Cash from Receivables | $0 | $125 | $3,875 | $7,500 | $7,625 | $11,375 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | |
| Subtotal Cash from Operations | $1,250 | $2,625 | $6,375 | $11,250 | $12,625 | $16,375 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | |
| 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 | $6,000 | $0 | $30,000 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Received | $1,250 | $2,625 | $6,375 | $11,250 | $12,625 | $22,375 | $20,000 | $50,000 | $20,000 | $20,000 | $20,000 | $20,000 | |
| 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 | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | $7,971 | |
| Bill Payments | $1,253 | $7,679 | $10,096 | $10,179 | $12,679 | $15,096 | $15,096 | $15,096 | $15,096 | $15,096 | $15,096 | $15,102 | |
| Subtotal Spent on Operations | $9,224 | $15,650 | $18,067 | $18,150 | $20,650 | $23,067 | $23,067 | $23,067 | $23,067 | $23,067 | $23,067 | $23,073 | |
| 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 | $10,000 | $0 | $0 | $0 | $0 | |
| Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Spent | $9,224 | $15,650 | $18,067 | $18,150 | $20,650 | $23,067 | $23,067 | $33,067 | $23,067 | $23,067 | $23,067 | $23,073 | |
| Net Cash Flow | ($7,974) | ($13,025) | ($11,692) | ($6,900) | ($8,025) | ($692) | ($3,067) | $16,933 | ($3,067) | ($3,067) | ($3,067) | ($3,073) | |
| Cash Balance | $44,526 | $31,501 | $19,809 | $12,909 | $4,884 | $4,193 | $1,126 | $18,059 | $14,993 | $11,926 | $8,859 | $5,786 | |
| 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 | $52,500 | $44,526 | $31,501 | $19,809 | $12,909 | $4,884 | $4,193 | $1,126 | $18,059 | $14,993 | $11,926 | $8,859 | $5,786 |
| Accounts Receivable | $0 | $3,750 | $11,125 | $14,750 | $18,500 | $25,875 | $29,500 | $29,500 | $29,500 | $29,500 | $29,500 | $29,500 | $29,500 |
| 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 | $57,500 | $53,276 | $47,626 | $39,559 | $36,409 | $35,759 | $38,693 | $35,626 | $52,559 | $49,493 | $46,426 | $43,359 | $40,286 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 |
| Total Assets | $57,500 | $53,276 | $47,626 | $39,559 | $36,409 | $35,759 | $38,693 | $35,626 | $62,559 | $59,493 | $56,426 | $53,359 | $50,286 |
| 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 | $1,000 | $7,342 | $9,759 | $9,759 | $12,176 | $14,592 | $14,592 | $14,592 | $14,592 | $14,592 | $14,592 | $14,592 | $14,786 |
| 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 | $1,000 | $7,342 | $9,759 | $9,759 | $12,176 | $14,592 | $14,592 | $14,592 | $14,592 | $14,592 | $14,592 | $14,592 | $14,786 |
| Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Liabilities | $1,000 | $7,342 | $9,759 | $9,759 | $12,176 | $14,592 | $14,592 | $14,592 | $14,592 | $14,592 | $14,592 | $14,592 | $14,786 |
| Paid-in Capital | $116,600 | $116,600 | $116,600 | $116,600 | $116,600 | $116,600 | $122,600 | $122,600 | $152,600 | $152,600 | $152,600 | $152,600 | $152,600 |
| Retained Earnings | ($60,100) | ($60,100) | ($60,100) | ($60,100) | ($60,100) | ($60,100) | ($60,100) | ($60,100) | ($60,100) | ($60,100) | ($60,100) | ($60,100) | ($60,100) |
| Earnings | $0 | ($10,567) | ($18,633) | ($26,700) | ($32,267) | ($35,333) | ($38,400) | ($41,467) | ($44,533) | ($47,600) | ($50,667) | ($53,733) | ($57,000) |
| Total Capital | $56,500 | $45,933 | $37,867 | $29,800 | $24,233 | $21,167 | $24,100 | $21,033 | $47,967 | $44,900 | $41,833 | $38,767 | $35,500 |
| Total Liabilities and Capital | $57,500 | $53,276 | $47,626 | $39,559 | $36,409 | $35,759 | $38,693 | $35,626 | $62,559 | $59,493 | $56,426 | $53,359 | $50,286 |
| Net Worth | $56,500 | $45,933 | $37,867 | $29,800 | $24,233 | $21,167 | $24,100 | $21,033 | $47,967 | $44,900 | $41,833 | $38,767 | $35,500 |
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