Harquebus Paintball, 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 | |||||||||||||
| Guns | 1% | $35,733 | $36,090 | $36,451 | $36,816 | $37,184 | $37,556 | $37,931 | $38,311 | $38,694 | $39,081 | $39,471 | $39,866 |
| Hoppers | 1% | $6,253 | $6,316 | $6,379 | $6,442 | $6,507 | $6,572 | $6,638 | $6,704 | $6,771 | $6,839 | $6,907 | $6,976 |
| Paintballs | 1% | $53,600 | $54,136 | $54,677 | $55,224 | $55,776 | $56,334 | $56,897 | $57,466 | $58,041 | $58,622 | $59,208 | $59,800 |
| Gun Upgrades | 1% | $17,867 | $18,046 | $18,226 | $18,408 | $18,592 | $18,778 | $18,966 | $19,156 | $19,347 | $19,541 | $19,736 | $19,934 |
| Apparel | 1% | $35,733 | $36,090 | $36,451 | $36,816 | $37,184 | $37,556 | $37,931 | $38,311 | $38,694 | $39,081 | $39,471 | $39,866 |
| Repairs | 1% | $1,787 | $1,805 | $1,823 | $1,841 | $1,860 | $1,878 | $1,897 | $1,916 | $1,935 | $1,954 | $1,974 | $1,994 |
| Magazines | 1% | $447 | $451 | $456 | $461 | $465 | $470 | $474 | $479 | $484 | $489 | $494 | $499 |
| Total Sales | $151,420 | $152,934 | $154,464 | $156,008 | $157,568 | $159,144 | $160,735 | $162,343 | $163,966 | $165,606 | $167,262 | $168,935 | |
| 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 | |
| Guns | 1% | $26,800 | $27,068 | $27,338 | $27,612 | $27,888 | $28,167 | $28,448 | $28,733 | $29,020 | $29,310 | $29,604 | $29,900 |
| Hoppers | 1% | $4,690 | $4,737 | $4,784 | $4,832 | $4,880 | $4,929 | $4,979 | $5,028 | $5,079 | $5,129 | $5,181 | $5,232 |
| Paintballs | 1% | $40,200 | $40,602 | $41,008 | $41,418 | $41,832 | $42,251 | $42,673 | $43,100 | $43,531 | $43,966 | $44,406 | $44,850 |
| Gun Upgrades | 1% | $13,400 | $13,534 | $13,669 | $13,806 | $13,944 | $14,084 | $14,224 | $14,367 | $14,510 | $14,655 | $14,802 | $14,950 |
| Apparel | 1% | $26,800 | $27,068 | $27,339 | $27,612 | $27,888 | $28,167 | $28,449 | $28,733 | $29,021 | $29,311 | $29,604 | $29,900 |
| Repairs | 1% | $772 | $798 | $772 | $798 | $798 | $772 | $798 | $772 | $798 | $798 | $721 | $798 |
| Magazines | 1% | $335 | $338 | $342 | $345 | $349 | $352 | $356 | $359 | $363 | $366 | $370 | $374 |
| Subtotal Direct Cost of Sales | $112,997 | $114,145 | $115,252 | $116,423 | $117,580 | $118,721 | $119,927 | $121,092 | $122,321 | $123,537 | $124,687 | $126,004 | |
| 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 | ||
| Store Manager | 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 |
| Asst. Store Manager | 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 |
| Inventory Manager | 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 |
| Service Manager | 0% | $867 | $867 | $867 | $867 | $867 | $867 | $867 | $867 | $867 | $867 | $867 | $867 |
| Front Svc. Clerk | 0% | $803 | $830 | $803 | $830 | $830 | $803 | $830 | $803 | $830 | $830 | $750 | $830 |
| Front Svc. Clerk | 0% | $803 | $830 | $803 | $830 | $830 | $803 | $830 | $803 | $830 | $830 | $750 | $830 |
| Front Svc. Clerk | 0% | $803 | $830 | $803 | $830 | $830 | $803 | $830 | $803 | $830 | $830 | $750 | $830 |
| Total People | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | |
| Total Payroll | $8,376 | $8,457 | $8,376 | $8,457 | $8,457 | $8,376 | $8,457 | $8,376 | $8,457 | $8,457 | $8,217 | $8,457 | |
| 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 | 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 | Long-term Interest Rate | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% |
| Tax Rate | 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 | $151,420 | $152,934 | $154,464 | $156,008 | $157,568 | $159,144 | $160,735 | $162,343 | $163,966 | $165,606 | $167,262 | $168,935 | |
| Direct Cost of Sales | $112,997 | $114,145 | $115,252 | $116,423 | $117,580 | $118,721 | $119,927 | $121,092 | $122,321 | $123,537 | $124,687 | $126,004 | |
| Other Costs of Goods | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $112,997 | $114,145 | $115,252 | $116,423 | $117,580 | $118,721 | $119,927 | $121,092 | $122,321 | $123,537 | $124,687 | $126,004 | |
| Gross Margin | $38,423 | $38,789 | $39,211 | $39,585 | $39,989 | $40,423 | $40,809 | $41,251 | $41,645 | $42,069 | $42,575 | $42,931 | |
| Gross Margin % | 25.38% | 25.36% | 25.39% | 25.37% | 25.38% | 25.40% | 25.39% | 25.41% | 25.40% | 25.40% | 25.45% | 25.41% | |
| Expenses | |||||||||||||
| Payroll | $8,376 | $8,457 | $8,376 | $8,457 | $8,457 | $8,376 | $8,457 | $8,376 | $8,457 | $8,457 | $8,217 | $8,457 | |
| Sales and Marketing and Other Expenses | $6,500 | $6,500 | $6,500 | $6,500 | $6,500 | $6,500 | $6,500 | $6,500 | $6,500 | $6,500 | $6,500 | $6,500 | |
| Depreciation | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | |
| Rent | $2,717 | $2,717 | $2,717 | $2,717 | $2,717 | $2,717 | $2,717 | $2,717 | $2,717 | $2,717 | $2,717 | $2,717 | |
| Utilities | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | |
| Insurance | $94 | $94 | $94 | $94 | $94 | $94 | $94 | $94 | $94 | $94 | $94 | $94 | |
| Payroll Taxes | 20% | $562 | $581 | $568 | $581 | $581 | $562 | $581 | $562 | $581 | $581 | $525 | $581 |
| Website | 15% | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $18,799 | $18,899 | $18,805 | $18,899 | $18,899 | $18,799 | $18,899 | $18,799 | $18,899 | $18,899 | $18,603 | $18,899 | |
| Profit Before Interest and Taxes | $19,624 | $19,890 | $20,406 | $20,686 | $21,090 | $21,623 | $21,909 | $22,451 | $22,746 | $23,170 | $23,972 | $24,032 | |
| EBITDA | $19,674 | $19,940 | $20,456 | $20,736 | $21,140 | $21,673 | $21,959 | $22,501 | $22,796 | $23,220 | $24,022 | $24,082 | |
| Interest Expense | $700 | $689 | $678 | $666 | $655 | $644 | $633 | $621 | $610 | $599 | $588 | $576 | |
| Taxes Incurred | $5,677 | $5,760 | $5,918 | $6,006 | $6,130 | $6,294 | $6,383 | $6,549 | $6,641 | $6,771 | $7,015 | $7,037 | |
| Net Profit | $13,247 | $13,441 | $13,810 | $14,014 | $14,304 | $14,686 | $14,894 | $15,281 | $15,495 | $15,800 | $16,369 | $16,419 | |
| Net Profit/Sales | 8.75% | 8.79% | 8.94% | 8.98% | 9.08% | 9.23% | 9.27% | 9.41% | 9.45% | 9.54% | 9.79% | 9.72% | |
| 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 | $151,420 | $152,934 | $154,464 | $156,008 | $157,568 | $159,144 | $160,735 | $162,343 | $163,966 | $165,606 | $167,262 | $168,935 | |
| Subtotal Cash from Operations | $151,420 | $152,934 | $154,464 | $156,008 | $157,568 | $159,144 | $160,735 | $162,343 | $163,966 | $165,606 | $167,262 | $168,935 | |
| Additional Cash Received | |||||||||||||
| Sales Tax, VAT, HST/GST Received | 7.00% | $10,599 | $10,705 | $10,812 | $10,921 | $11,030 | $11,140 | $11,251 | $11,364 | $11,478 | $11,592 | $11,708 | $11,825 |
| 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 | $162,019 | $163,640 | $165,276 | $166,929 | $168,598 | $170,284 | $171,987 | $173,707 | $175,444 | $177,198 | $178,970 | $180,760 | |
| 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 | $8,376 | $8,457 | $8,376 | $8,457 | $8,457 | $8,376 | $8,457 | $8,376 | $8,457 | $8,457 | $8,217 | $8,457 | |
| Bill Payments | $5,801 | $172,651 | $132,289 | $133,490 | $134,817 | $136,071 | $137,334 | $138,702 | $139,964 | $141,360 | $142,677 | $143,943 | |
| Subtotal Spent on Operations | $14,177 | $181,108 | $140,665 | $141,947 | $143,274 | $144,447 | $145,791 | $147,078 | $148,421 | $149,817 | $150,894 | $152,400 | |
| Additional Cash Spent | |||||||||||||
| Sales Tax, VAT, HST/GST Paid Out | $10,599 | $10,705 | $10,812 | $10,921 | $11,030 | $11,140 | $11,251 | $11,364 | $11,478 | $11,592 | $11,708 | $11,825 | |
| 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 | $2,250 | $2,250 | $2,250 | $2,250 | $2,250 | $2,250 | $2,250 | $2,250 | $2,250 | $2,250 | $2,250 | |
| 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 | $24,777 | $194,063 | $153,728 | $155,118 | $156,554 | $157,837 | $159,292 | $160,692 | $162,149 | $163,660 | $164,853 | $166,476 | |
| Net Cash Flow | $137,243 | ($30,423) | $11,548 | $11,811 | $12,044 | $12,447 | $12,694 | $13,014 | $13,295 | $13,539 | $14,117 | $14,284 | |
| Cash Balance | $164,807 | $134,383 | $145,932 | $157,743 | $169,787 | $182,234 | $194,928 | $207,942 | $221,237 | $234,776 | $248,894 | $263,178 | |
| 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 | $27,564 | $164,807 | $134,383 | $145,932 | $157,743 | $169,787 | $182,234 | $194,928 | $207,942 | $221,237 | $234,776 | $248,894 | $263,178 |
| Inventory | $80,000 | $124,296 | $125,559 | $126,778 | $128,066 | $129,337 | $130,593 | $131,920 | $133,201 | $134,553 | $135,890 | $137,155 | $138,604 |
| Other Current Assets | $12,100 | $12,100 | $12,100 | $12,100 | $12,100 | $12,100 | $12,100 | $12,100 | $12,100 | $12,100 | $12,100 | $12,100 | $12,100 |
| Total Current Assets | $119,664 | $301,203 | $272,043 | $284,809 | $297,908 | $311,224 | $324,927 | $338,948 | $353,244 | $367,891 | $382,766 | $398,149 | $413,882 |
| Long-term Assets | |||||||||||||
| Long-term 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 |
| Accumulated Depreciation | $0 | $50 | $100 | $150 | $200 | $250 | $300 | $350 | $400 | $450 | $500 | $550 | $600 |
| Total Long-term Assets | $5,000 | $4,950 | $4,900 | $4,850 | $4,800 | $4,750 | $4,700 | $4,650 | $4,600 | $4,550 | $4,500 | $4,450 | $4,400 |
| Total Assets | $124,664 | $306,153 | $276,943 | $289,659 | $302,708 | $315,974 | $329,627 | $343,598 | $357,844 | $372,441 | $387,266 | $402,599 | $418,282 |
| 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 | $168,242 | $127,841 | $128,998 | $130,283 | $131,495 | $132,712 | $134,039 | $135,254 | $136,606 | $137,881 | $139,095 | $140,609 |
| 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 | $168,242 | $127,841 | $128,998 | $130,283 | $131,495 | $132,712 | $134,039 | $135,254 | $136,606 | $137,881 | $139,095 | $140,609 |
| Long-term Liabilities | $140,000 | $140,000 | $137,750 | $135,500 | $133,250 | $131,000 | $128,750 | $126,500 | $124,250 | $122,000 | $119,750 | $117,500 | $115,250 |
| Total Liabilities | $140,000 | $308,242 | $265,591 | $264,498 | $263,533 | $262,495 | $261,462 | $260,539 | $259,504 | $258,606 | $257,631 | $256,595 | $255,859 |
| 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 | ($95,336) | ($95,336) | ($95,336) | ($95,336) | ($95,336) | ($95,336) | ($95,336) | ($95,336) | ($95,336) | ($95,336) | ($95,336) | ($95,336) | ($95,336) |
| Earnings | $0 | $13,247 | $26,688 | $40,498 | $54,511 | $68,816 | $83,501 | $98,395 | $113,676 | $129,171 | $144,971 | $161,340 | $177,759 |
| Total Capital | ($15,336) | ($2,089) | $11,352 | $25,162 | $39,175 | $53,480 | $68,165 | $83,059 | $98,340 | $113,835 | $129,635 | $146,004 | $162,423 |
| Total Liabilities and Capital | $124,664 | $306,153 | $276,943 | $289,659 | $302,708 | $315,974 | $329,627 | $343,598 | $357,844 | $372,441 | $387,266 | $402,599 | $418,282 |
| Net Worth | ($15,336) | ($2,089) | $11,352 | $25,162 | $39,175 | $53,480 | $68,165 | $83,059 | $98,340 | $113,835 | $129,635 | $146,004 | $162,423 |
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