The Pasta Tree
Appendix
| Sales Forecast | |||||||||||||
| Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | ||
| Sales | |||||||||||||
| Supermarkets | 0% | $9,000 | $9,000 | $10,000 | $9,000 | $10,000 | $10,000 | $10,000 | $11,000 | $12,000 | $12,000 | $13,000 | $13,000 |
| Grocery Stores | 0% | $14,000 | $14,000 | $14,000 | $15,000 | $15,000 | $15,000 | $15,000 | $16,000 | $16,000 | $16,000 | $17,000 | $18,000 |
| Total Sales | $23,000 | $23,000 | $24,000 | $24,000 | $25,000 | $25,000 | $25,000 | $27,000 | $28,000 | $28,000 | $30,000 | $31,000 | |
| Direct Cost of Sales | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | |
| Supermarkets | $900 | $900 | $1,000 | $900 | $1,000 | $1,000 | $1,000 | $1,100 | $1,200 | $1,200 | $1,300 | $1,300 | |
| Grocery Stores | $1,400 | $1,400 | $1,400 | $1,500 | $1,500 | $1,500 | $1,500 | $1,600 | $1,600 | $1,600 | $1,700 | $1,800 | |
| Subtotal Direct Cost of Sales | $2,300 | $2,300 | $2,400 | $2,400 | $2,500 | $2,500 | $2,500 | $2,700 | $2,800 | $2,800 | $3,000 | $3,100 | |
| Personnel Plan | |||||||||||||
| Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | ||
| Production 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 |
| Sales 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 |
| Production Staff | 0% | $6,800 | $6,800 | $6,800 | $6,800 | $6,800 | $6,800 | $6,800 | $6,800 | $6,800 | $6,800 | $6,800 | $6,800 |
| Delivery | 0% | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
| Store Staff | 0% | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 |
| Total People | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | |
| Total Payroll | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | |
| General Assumptions | |||||||||||||
| Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | ||
| 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 | |||||||||||||
| Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | ||
| Sales | $23,000 | $23,000 | $24,000 | $24,000 | $25,000 | $25,000 | $25,000 | $27,000 | $28,000 | $28,000 | $30,000 | $31,000 | |
| Direct Cost of Sales | $2,300 | $2,300 | $2,400 | $2,400 | $2,500 | $2,500 | $2,500 | $2,700 | $2,800 | $2,800 | $3,000 | $3,100 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $2,300 | $2,300 | $2,400 | $2,400 | $2,500 | $2,500 | $2,500 | $2,700 | $2,800 | $2,800 | $3,000 | $3,100 | |
| Gross Margin | $20,700 | $20,700 | $21,600 | $21,600 | $22,500 | $22,500 | $22,500 | $24,300 | $25,200 | $25,200 | $27,000 | $27,900 | |
| Gross Margin % | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | |
| Expenses | |||||||||||||
| Payroll | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | |
| Sales and Marketing and Other Expenses | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Depreciation | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | |
| Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Utilities | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
| Insurance | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | |
| Rent | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
| Payroll Taxes | 15% | $2,490 | $2,490 | $2,490 | $2,490 | $2,490 | $2,490 | $2,490 | $2,490 | $2,490 | $2,490 | $2,490 | $2,490 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $22,490 | $22,490 | $22,490 | $22,490 | $22,490 | $22,490 | $22,490 | $22,490 | $22,490 | $22,490 | $22,490 | $22,490 | |
| Profit Before Interest and Taxes | ($1,790) | ($1,790) | ($890) | ($890) | $10 | $10 | $10 | $1,810 | $2,710 | $2,710 | $4,510 | $5,410 | |
| EBITDA | ($990) | ($990) | ($90) | ($90) | $810 | $810 | $810 | $2,610 | $3,510 | $3,510 | $5,310 | $6,210 | |
| Interest Expense | $345 | $332 | $402 | $388 | $458 | $445 | $432 | $418 | $405 | $392 | $378 | $365 | |
| Taxes Incurred | ($641) | ($636) | ($388) | ($383) | ($135) | ($131) | ($127) | $418 | $692 | $696 | $1,240 | $1,514 | |
| Net Profit | ($1,495) | ($1,485) | ($904) | ($895) | ($314) | ($305) | ($295) | $974 | $1,614 | $1,623 | $2,892 | $3,532 | |
| Net Profit/Sales | -6.50% | -6.46% | -3.77% | -3.73% | -1.26% | -1.22% | -1.18% | 3.61% | 5.76% | 5.80% | 9.64% | 11.39% | |
| Pro Forma Cash Flow | |||||||||||||
| Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | ||
| Cash Received | |||||||||||||
| Cash from Operations | |||||||||||||
| Cash Sales | $5,750 | $5,750 | $6,000 | $6,000 | $6,250 | $6,250 | $6,250 | $6,750 | $7,000 | $7,000 | $7,500 | $7,750 | |
| Cash from Receivables | $7,000 | $7,575 | $17,250 | $17,275 | $18,000 | $18,025 | $18,750 | $18,750 | $18,800 | $20,275 | $21,000 | $21,050 | |
| Subtotal Cash from Operations | $12,750 | $13,325 | $23,250 | $23,275 | $24,250 | $24,275 | $25,000 | $25,500 | $25,800 | $27,275 | $28,500 | $28,800 | |
| 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 | $30,000 | $0 | $10,000 | $0 | $10,000 | $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 | $42,750 | $13,325 | $33,250 | $23,275 | $34,250 | $24,275 | $25,000 | $25,500 | $25,800 | $27,275 | $28,500 | $28,800 | |
| Expenditures | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | |
| Expenditures from Operations | |||||||||||||
| Cash Spending | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | |
| Bill Payments | $10,160 | $4,794 | $4,850 | $6,769 | $7,512 | $8,020 | $7,904 | $7,927 | $8,854 | $9,093 | $9,009 | $9,936 | |
| Subtotal Spent on Operations | $26,760 | $21,394 | $21,450 | $23,369 | $24,112 | $24,620 | $24,504 | $24,527 | $25,454 | $25,693 | $25,609 | $26,536 | |
| 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 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
| Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Long-term Liabilities Principal Repayment | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | |
| 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 | $28,360 | $22,994 | $23,050 | $24,969 | $25,712 | $26,220 | $26,104 | $26,127 | $27,054 | $27,293 | $27,209 | $28,136 | |
| Net Cash Flow | $14,390 | ($9,669) | $10,200 | ($1,694) | $8,538 | ($1,945) | ($1,104) | ($627) | ($1,254) | ($18) | $1,291 | $664 | |
| Cash Balance | $84,390 | $74,721 | $84,921 | $83,226 | $91,764 | $89,819 | $88,715 | $88,088 | $86,834 | $86,816 | $88,107 | $88,771 | |
| Pro Forma Balance Sheet | |||||||||||||
| Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | ||
| Assets | Starting Balances | ||||||||||||
| Current Assets | |||||||||||||
| Cash | $70,000 | $84,390 | $74,721 | $84,921 | $83,226 | $91,764 | $89,819 | $88,715 | $88,088 | $86,834 | $86,816 | $88,107 | $88,771 |
| Accounts Receivable | $14,000 | $24,250 | $33,925 | $34,675 | $35,400 | $36,150 | $36,875 | $36,875 | $38,375 | $40,575 | $41,300 | $42,800 | $45,000 |
| Inventory | $8,000 | $5,700 | $3,400 | $2,640 | $2,640 | $2,750 | $2,750 | $2,750 | $2,970 | $3,080 | $3,080 | $3,300 | $3,410 |
| 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 | $97,000 | $119,340 | $117,046 | $127,236 | $126,266 | $135,664 | $134,444 | $133,340 | $134,433 | $135,489 | $136,196 | $139,207 | $142,181 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $36,736 | $36,736 | $36,736 | $36,736 | $36,736 | $36,736 | $36,736 | $36,736 | $36,736 | $36,736 | $36,736 | $36,736 | $36,736 |
| Accumulated Depreciation | $5,248 | $6,048 | $6,848 | $7,648 | $8,448 | $9,248 | $10,048 | $10,848 | $11,648 | $12,448 | $13,248 | $14,048 | $14,848 |
| Total Long-term Assets | $31,488 | $30,688 | $29,888 | $29,088 | $28,288 | $27,488 | $26,688 | $25,888 | $25,088 | $24,288 | $23,488 | $22,688 | $21,888 |
| Total Assets | $128,488 | $150,028 | $146,934 | $156,324 | $154,554 | $163,152 | $161,132 | $159,228 | $159,521 | $159,777 | $159,684 | $161,895 | $164,069 |
| Liabilities and Capital | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | |
| Current Liabilities | |||||||||||||
| Accounts Payable | $10,000 | $4,635 | $4,626 | $6,519 | $7,245 | $7,756 | $7,641 | $7,632 | $8,551 | $8,793 | $8,678 | $9,597 | $9,839 |
| Current Borrowing | $3,000 | $2,900 | $2,800 | $2,700 | $2,600 | $2,500 | $2,400 | $2,300 | $2,200 | $2,100 | $2,000 | $1,900 | $1,800 |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $13,000 | $7,535 | $7,426 | $9,219 | $9,845 | $10,256 | $10,041 | $9,932 | $10,751 | $10,893 | $10,678 | $11,497 | $11,639 |
| Long-term Liabilities | $10,000 | $38,500 | $37,000 | $45,500 | $44,000 | $52,500 | $51,000 | $49,500 | $48,000 | $46,500 | $45,000 | $43,500 | $42,000 |
| Total Liabilities | $23,000 | $46,035 | $44,426 | $54,719 | $53,845 | $62,756 | $61,041 | $59,432 | $58,751 | $57,393 | $55,678 | $54,997 | $53,639 |
| Paid-in Capital | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Retained Earnings | $81,488 | $105,488 | $105,488 | $105,488 | $105,488 | $105,488 | $105,488 | $105,488 | $105,488 | $105,488 | $105,488 | $105,488 | $105,488 |
| Earnings | $24,000 | ($1,495) | ($2,980) | ($3,884) | ($4,779) | ($5,092) | ($5,397) | ($5,692) | ($4,718) | ($3,104) | ($1,482) | $1,411 | $4,942 |
| Total Capital | $105,488 | $103,994 | $102,508 | $101,604 | $100,709 | $100,396 | $100,091 | $99,796 | $100,770 | $102,384 | $104,006 | $106,899 | $110,430 |
| Total Liabilities and Capital | $128,488 | $150,028 | $146,934 | $156,324 | $154,554 | $163,152 | $161,132 | $159,228 | $159,521 | $159,777 | $159,684 | $161,895 | $164,069 |
| Net Worth | $105,488 | $103,994 | $102,508 | $101,604 | $100,709 | $100,396 | $100,091 | $99,796 | $100,770 | $102,384 | $104,006 | $106,899 | $110,430 |
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