Wilson Family Peach Farm
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 | |||||||||||||
| Peaches | 0% | $40,000 | $55,000 | $65,000 | $73,000 | $42,000 | $24,000 | $0 | $0 | $0 | $0 | $0 | $0 |
| Nectarines | 0% | $5,000 | $10,000 | $10,000 | $12,000 | $5,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Sales | $45,000 | $65,000 | $75,000 | $85,000 | $47,000 | $24,000 | $0 | $0 | $0 | $0 | $0 | $0 | |
| 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 | |
| Peaches | $12,000 | $16,500 | $19,500 | $21,900 | $12,600 | $7,200 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Nectarines | $1,500 | $3,000 | $3,000 | $3,600 | $1,500 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $13,500 | $19,500 | $22,500 | $25,500 | $14,100 | $7,200 | $0 | $0 | $0 | $0 | $0 | $0 | |
| 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 | ||
| Payroll | 0% | $0 | $0 | $500 | $1,500 | $3,000 | $3,000 | $3,000 | $2,000 | $1,000 | $0 | $0 | $0 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total People | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |
| Total Payroll | $0 | $0 | $500 | $1,500 | $3,000 | $3,000 | $3,000 | $2,000 | $1,000 | $0 | $0 | $0 | |
| 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 | $45,000 | $65,000 | $75,000 | $85,000 | $47,000 | $24,000 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Direct Cost of Sales | $13,500 | $19,500 | $22,500 | $25,500 | $14,100 | $7,200 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $13,500 | $19,500 | $22,500 | $25,500 | $14,100 | $7,200 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Gross Margin | $31,500 | $45,500 | $52,500 | $59,500 | $32,900 | $16,800 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Gross Margin % | 70.00% | 70.00% | 70.00% | 70.00% | 70.00% | 70.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
| Expenses | |||||||||||||
| Payroll | $0 | $0 | $500 | $1,500 | $3,000 | $3,000 | $3,000 | $2,000 | $1,000 | $0 | $0 | $0 | |
| Sales and Marketing and Other Expenses | $2,750 | $2,700 | $2,775 | $2,800 | $2,800 | $3,400 | $2,900 | $2,900 | $3,400 | $3,400 | $3,400 | $3,400 | |
| Depreciation | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $400 | $400 | $400 | $400 | |
| Leased Equipment | $0 | $0 | $0 | $2,000 | $2,000 | $2,000 | $1,000 | $1,000 | $0 | $0 | $0 | $0 | |
| Utilities | $200 | $200 | $200 | $200 | $200 | $400 | $400 | $400 | $600 | $600 | $600 | $600 | |
| Insurance | $600 | $600 | $600 | $600 | $600 | $1,200 | $1,200 | $1,200 | $1,800 | $1,800 | $1,800 | $1,800 | |
| Rent | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
| Payroll Taxes | 15% | $0 | $0 | $75 | $225 | $450 | $450 | $450 | $300 | $150 | $0 | $0 | $0 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $5,750 | $5,700 | $6,350 | $9,525 | $11,250 | $12,650 | $11,150 | $10,000 | $9,350 | $8,200 | $8,200 | $8,200 | |
| Profit Before Interest and Taxes | $25,750 | $39,800 | $46,150 | $49,975 | $21,650 | $4,150 | ($11,150) | ($10,000) | ($9,350) | ($8,200) | ($8,200) | ($8,200) | |
| EBITDA | $25,950 | $40,000 | $46,350 | $50,175 | $21,850 | $4,350 | ($10,950) | ($9,800) | ($8,950) | ($7,800) | ($7,800) | ($7,800) | |
| Interest Expense | $1,023 | $1,004 | $985 | $967 | $948 | $929 | $910 | $892 | $873 | $854 | $835 | $817 | |
| Taxes Incurred | $7,418 | $11,639 | $13,549 | $14,703 | $6,211 | $966 | ($3,618) | ($3,267) | ($3,067) | ($2,716) | ($2,711) | ($2,705) | |
| Net Profit | $17,309 | $27,157 | $31,615 | $34,306 | $14,491 | $2,255 | ($8,442) | ($7,624) | ($7,156) | ($6,338) | ($6,325) | ($6,312) | |
| Net Profit/Sales | 38.46% | 41.78% | 42.15% | 40.36% | 30.83% | 9.39% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
| 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 | $6,750 | $9,750 | $11,250 | $12,750 | $7,050 | $3,600 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Cash from Receivables | $0 | $1,275 | $38,817 | $55,533 | $64,033 | $71,173 | $39,298 | $19,720 | $0 | $0 | $0 | $0 | |
| Subtotal Cash from Operations | $6,750 | $11,025 | $50,067 | $68,283 | $71,083 | $74,773 | $39,298 | $19,720 | $0 | $0 | $0 | $0 | |
| 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 | $20,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Received | $6,750 | $11,025 | $50,067 | $88,283 | $71,083 | $74,773 | $39,298 | $19,720 | $0 | $0 | $0 | $0 | |
| 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 | $0 | $0 | $500 | $1,500 | $3,000 | $3,000 | $3,000 | $2,000 | $1,000 | $0 | $0 | $0 | |
| Bill Payments | $1,411 | $42,404 | $44,301 | $46,195 | $51,110 | $16,588 | $11,142 | $5,248 | $5,435 | $5,762 | $5,937 | $5,924 | |
| Subtotal Spent on Operations | $1,411 | $42,404 | $44,801 | $47,695 | $54,110 | $19,588 | $14,142 | $7,248 | $6,435 | $5,762 | $5,937 | $5,924 | |
| 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 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
| Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Long-term Liabilities Principal Repayment | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | |
| Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Purchase Long-term Assets | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
| Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Spent | $5,661 | $46,654 | $49,051 | $51,945 | $58,360 | $23,838 | $18,392 | $11,498 | $10,685 | $10,012 | $10,187 | $10,174 | |
| Net Cash Flow | $1,089 | ($35,629) | $1,016 | $36,338 | $12,723 | $50,936 | $20,906 | $8,222 | ($10,685) | ($10,012) | ($10,187) | ($10,174) | |
| Cash Balance | $128,809 | $93,179 | $94,195 | $130,533 | $143,256 | $194,192 | $215,098 | $223,320 | $212,635 | $202,623 | $192,435 | $182,261 | |
| 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 | $127,720 | $128,809 | $93,179 | $94,195 | $130,533 | $143,256 | $194,192 | $215,098 | $223,320 | $212,635 | $202,623 | $192,435 | $182,261 |
| Accounts Receivable | $0 | $38,250 | $92,225 | $117,158 | $133,875 | $109,792 | $59,018 | $19,720 | $0 | $0 | $0 | $0 | $0 |
| Inventory | $0 | $14,850 | $21,450 | $24,750 | $28,050 | $15,510 | $8,310 | $8,310 | $8,310 | $8,310 | $8,310 | $8,310 | $8,310 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $127,720 | $181,909 | $206,854 | $236,103 | $292,458 | $268,558 | $261,520 | $243,128 | $231,630 | $220,945 | $210,933 | $200,745 | $190,571 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $140,280 | $142,280 | $144,280 | $146,280 | $148,280 | $150,280 | $152,280 | $154,280 | $156,280 | $158,280 | $160,280 | $162,280 | $164,280 |
| Accumulated Depreciation | $0 | $200 | $400 | $600 | $800 | $1,000 | $1,200 | $1,400 | $1,600 | $2,000 | $2,400 | $2,800 | $3,200 |
| Total Long-term Assets | $140,280 | $142,080 | $143,880 | $145,680 | $147,480 | $149,280 | $151,080 | $152,880 | $154,680 | $156,280 | $157,880 | $159,480 | $161,080 |
| Total Assets | $268,000 | $323,989 | $350,734 | $381,783 | $439,938 | $417,838 | $412,600 | $396,008 | $386,310 | $377,225 | $368,813 | $360,225 | $351,651 |
| 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 | $40,930 | $42,768 | $44,452 | $50,551 | $16,210 | $10,967 | $5,068 | $5,243 | $5,564 | $5,740 | $5,727 | $5,715 |
| Current Borrowing | $25,000 | $24,000 | $23,000 | $22,000 | $21,000 | $20,000 | $19,000 | $18,000 | $17,000 | $16,000 | $15,000 | $14,000 | $13,000 |
| Other Current Liabilities | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 |
| Subtotal Current Liabilities | $50,000 | $89,930 | $90,768 | $91,452 | $96,551 | $61,210 | $54,967 | $48,068 | $47,243 | $46,564 | $45,740 | $44,727 | $43,715 |
| Long-term Liabilities | $100,000 | $98,750 | $97,500 | $96,250 | $95,000 | $93,750 | $92,500 | $91,250 | $90,000 | $88,750 | $87,500 | $86,250 | $85,000 |
| Total Liabilities | $150,000 | $188,680 | $188,268 | $187,702 | $191,551 | $154,960 | $147,467 | $139,318 | $137,243 | $135,314 | $133,240 | $130,977 | $128,715 |
| Paid-in Capital | $175,000 | $175,000 | $175,000 | $175,000 | $195,000 | $195,000 | $195,000 | $195,000 | $195,000 | $195,000 | $195,000 | $195,000 | $195,000 |
| Retained Earnings | ($57,000) | ($57,000) | ($57,000) | ($57,000) | ($57,000) | ($57,000) | ($57,000) | ($57,000) | ($57,000) | ($57,000) | ($57,000) | ($57,000) | ($57,000) |
| Earnings | $0 | $17,309 | $44,466 | $76,081 | $110,387 | $124,879 | $127,133 | $118,691 | $111,067 | $103,911 | $97,573 | $91,248 | $84,936 |
| Total Capital | $118,000 | $135,309 | $162,466 | $194,081 | $248,387 | $262,879 | $265,133 | $256,691 | $249,067 | $241,911 | $235,573 | $229,248 | $222,936 |
| Total Liabilities and Capital | $268,000 | $323,989 | $350,734 | $381,783 | $439,938 | $417,838 | $412,600 | $396,008 | $386,310 | $377,225 | $368,813 | $360,225 | $351,651 |
| Net Worth | $118,000 | $135,309 | $162,466 | $194,081 | $248,387 | $262,879 | $265,133 | $256,691 | $249,067 | $241,911 | $235,573 | $229,248 | $222,936 |
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