The Pottery Table
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 | |||||||||||||
| Group Instruction | 0% | $1,200 | $2,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $4,000 | $4,000 | $3,000 | $3,500 | $3,500 |
| Studio Time | 0% | $2,000 | $3,000 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $4,000 | $4,000 | $3,000 | $3,500 | $3,500 |
| Pottery | 0% | $800 | $1,000 | $1,200 | $1,200 | $1,200 | $1,500 | $1,500 | $1,600 | $1,800 | $1,200 | $1,500 | $2,000 |
| Gift Basket Pottery | 0% | $500 | $700 | $900 | $1,000 | $1,000 | $800 | $1,200 | $1,500 | $2,000 | $300 | $500 | $600 |
| Other | 0% | $300 | $330 | $363 | $399 | $439 | $395 | $435 | $478 | $850 | $540 | $594 | $594 |
| Total Sales | $4,800 | $7,030 | $8,963 | $9,099 | $9,139 | $9,195 | $9,635 | $11,578 | $12,650 | $8,040 | $9,594 | $10,194 | |
| 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 | |
| Group Instruction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Studio Time | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Pottery | $400 | $500 | $600 | $600 | $600 | $750 | $750 | $800 | $900 | $600 | $750 | $1,000 | |
| Gift Basket Pottery | $200 | $300 | $400 | $430 | $430 | $300 | $500 | $700 | $900 | $100 | $200 | $250 | |
| Other | $150 | $165 | $182 | $200 | $220 | $198 | $217 | $239 | $425 | $270 | $297 | $297 | |
| Subtotal Direct Cost of Sales | $750 | $965 | $1,182 | $1,230 | $1,250 | $1,248 | $1,467 | $1,739 | $2,225 | $970 | $1,247 | $1,547 | |
| 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 | ||
| Manager | 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 |
| Instructor | 0% | $2,250 | $2,250 | $2,250 | $2,250 | $2,250 | $2,250 | $2,250 | $2,250 | $2,250 | $2,250 | $2,250 | $2,250 |
| Aides | 0% | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 |
| 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 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | |
| 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 | $4,800 | $7,030 | $8,963 | $9,099 | $9,139 | $9,195 | $9,635 | $11,578 | $12,650 | $8,040 | $9,594 | $10,194 | |
| Direct Cost of Sales | $750 | $965 | $1,182 | $1,230 | $1,250 | $1,248 | $1,467 | $1,739 | $2,225 | $970 | $1,247 | $1,547 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $750 | $965 | $1,182 | $1,230 | $1,250 | $1,248 | $1,467 | $1,739 | $2,225 | $970 | $1,247 | $1,547 | |
| Gross Margin | $4,050 | $6,065 | $7,782 | $7,870 | $7,890 | $7,948 | $8,167 | $9,839 | $10,425 | $7,070 | $8,347 | $8,647 | |
| Gross Margin % | 84.38% | 86.27% | 86.82% | 86.49% | 86.33% | 86.43% | 84.77% | 84.98% | 82.41% | 87.94% | 87.00% | 84.82% | |
| Expenses | |||||||||||||
| Payroll | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | |
| Sales and Marketing and Other Expenses | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
| Depreciation | $357 | $357 | $357 | $357 | $357 | $357 | $357 | $357 | $357 | $357 | $357 | $357 | |
| Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Utilities | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Insurance | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
| Rent | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | |
| Payroll Taxes | 15% | $863 | $863 | $863 | $863 | $863 | $863 | $863 | $863 | $863 | $863 | $863 | $863 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $8,070 | $8,070 | $8,070 | $8,070 | $8,070 | $8,070 | $8,070 | $8,070 | $8,070 | $8,070 | $8,070 | $8,070 | |
| Profit Before Interest and Taxes | ($4,020) | ($2,005) | ($288) | ($200) | ($180) | ($122) | $98 | $1,770 | $2,356 | ($1,000) | $278 | $578 | |
| EBITDA | ($3,663) | ($1,648) | $69 | $157 | $177 | $235 | $455 | $2,127 | $2,713 | ($643) | $635 | $935 | |
| Interest Expense | $83 | $83 | $82 | $81 | $79 | $78 | $76 | $75 | $74 | $72 | $71 | $70 | |
| Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Net Profit | ($4,103) | ($2,088) | ($370) | ($280) | ($259) | ($200) | $22 | $1,695 | $2,282 | ($1,072) | $207 | $508 | |
| Net Profit/Sales | -85.48% | -29.70% | -4.13% | -3.08% | -2.83% | -2.17% | 0.22% | 14.64% | 18.04% | -13.33% | 2.15% | 4.98% | |
| 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 | $4,800 | $7,030 | $8,963 | $9,099 | $9,139 | $9,195 | $9,635 | $11,578 | $12,650 | $8,040 | $9,594 | $10,194 | |
| Subtotal Cash from Operations | $4,800 | $7,030 | $8,963 | $9,099 | $9,139 | $9,195 | $9,635 | $11,578 | $12,650 | $8,040 | $9,594 | $10,194 | |
| 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 | $4,800 | $7,030 | $8,963 | $9,099 | $9,139 | $9,195 | $9,635 | $11,578 | $12,650 | $8,040 | $9,594 | $10,194 | |
| 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 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | $5,750 | |
| Bill Payments | $68 | $2,046 | $2,046 | $2,044 | $2,043 | $2,075 | $3,064 | $3,755 | $4,100 | $4,704 | $2,073 | $3,199 | |
| Subtotal Spent on Operations | $5,818 | $7,796 | $7,796 | $7,794 | $7,793 | $7,825 | $8,814 | $9,505 | $9,850 | $10,454 | $7,823 | $8,949 | |
| 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 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | |
| 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 | $5,818 | $7,796 | $7,962 | $7,960 | $7,959 | $7,991 | $8,980 | $9,671 | $10,016 | $10,620 | $7,989 | $9,115 | |
| Net Cash Flow | ($1,018) | ($766) | $1,001 | $1,139 | $1,180 | $1,204 | $655 | $1,907 | $2,634 | ($2,580) | $1,605 | $1,079 | |
| Cash Balance | $12,882 | $12,116 | $13,117 | $14,256 | $15,436 | $16,641 | $17,296 | $19,203 | $21,837 | $19,258 | $20,863 | $21,942 | |
| 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 | $13,900 | $12,882 | $12,116 | $13,117 | $14,256 | $15,436 | $16,641 | $17,296 | $19,203 | $21,837 | $19,258 | $20,863 | $21,942 |
| Inventory | $7,000 | $6,250 | $5,285 | $4,104 | $2,874 | $1,624 | $1,377 | $1,614 | $1,913 | $2,448 | $1,478 | $1,372 | $1,702 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $20,900 | $19,132 | $17,401 | $17,221 | $17,130 | $17,061 | $18,017 | $18,910 | $21,116 | $24,285 | $20,735 | $22,235 | $23,644 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $44,000 | $44,000 | $44,000 | $44,000 | $44,000 | $44,000 | $44,000 | $44,000 | $44,000 | $44,000 | $44,000 | $44,000 | $44,000 |
| Accumulated Depreciation | $0 | $357 | $714 | $1,071 | $1,428 | $1,785 | $2,142 | $2,499 | $2,856 | $3,213 | $3,570 | $3,927 | $4,284 |
| Total Long-term Assets | $44,000 | $43,643 | $43,286 | $42,929 | $42,572 | $42,215 | $41,858 | $41,501 | $41,144 | $40,787 | $40,430 | $40,073 | $39,716 |
| Total Assets | $64,900 | $62,775 | $60,687 | $60,150 | $59,702 | $59,276 | $59,875 | $60,411 | $62,260 | $65,072 | $61,165 | $62,308 | $63,360 |
| 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 | $1,978 | $1,978 | $1,976 | $1,975 | $1,974 | $2,939 | $3,619 | $3,940 | $4,636 | $1,967 | $3,069 | $3,779 |
| 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 | $1,978 | $1,978 | $1,976 | $1,975 | $1,974 | $2,939 | $3,619 | $3,940 | $4,636 | $1,967 | $3,069 | $3,779 |
| Long-term Liabilities | $10,000 | $10,000 | $10,000 | $9,834 | $9,668 | $9,502 | $9,336 | $9,170 | $9,004 | $8,838 | $8,672 | $8,506 | $8,340 |
| Total Liabilities | $10,000 | $11,978 | $11,978 | $11,810 | $11,643 | $11,476 | $12,275 | $12,789 | $12,944 | $13,474 | $10,639 | $11,575 | $12,119 |
| Paid-in Capital | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 |
| Retained Earnings | ($15,100) | ($15,100) | ($15,100) | ($15,100) | ($15,100) | ($15,100) | ($15,100) | ($15,100) | ($15,100) | ($15,100) | ($15,100) | ($15,100) | ($15,100) |
| Earnings | $0 | ($4,103) | ($6,191) | ($6,561) | ($6,841) | ($7,100) | ($7,300) | ($7,278) | ($5,584) | ($3,302) | ($4,374) | ($4,167) | ($3,659) |
| Total Capital | $54,900 | $50,797 | $48,709 | $48,339 | $48,059 | $47,800 | $47,600 | $47,622 | $49,316 | $51,598 | $50,526 | $50,733 | $51,241 |
| Total Liabilities and Capital | $64,900 | $62,775 | $60,687 | $60,150 | $59,702 | $59,276 | $59,875 | $60,411 | $62,260 | $65,072 | $61,165 | $62,308 | $63,360 |
| Net Worth | $54,900 | $50,797 | $48,709 | $48,339 | $48,059 | $47,800 | $47,600 | $47,622 | $49,316 | $51,598 | $50,526 | $50,733 | $51,241 |
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