Reed Properties
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 | |||||||||||||
| New homebuyers | 0% | $4,000 | $5,000 | $6,000 | $7,000 | $8,000 | $10,000 | $11,000 | $12,000 | $7,000 | $5,000 | $4,000 | $4,000 |
| Other homebuyers | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Sales | $4,000 | $5,000 | $6,000 | $7,000 | $8,000 | $10,000 | $11,000 | $12,000 | $7,000 | $5,000 | $4,000 | $4,000 | |
| 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 | |
| New homebuyers | $200 | $250 | $300 | $350 | $400 | $500 | $550 | $600 | $350 | $250 | $200 | $200 | |
| Other homebuyers | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $200 | $250 | $300 | $350 | $400 | $500 | $550 | $600 | $350 | $250 | $200 | $200 | |
| 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 | ||
| Claudia Reed | 0% | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
| Part Time Admin | 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 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | |
| 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 | $4,000 | $5,000 | $6,000 | $7,000 | $8,000 | $10,000 | $11,000 | $12,000 | $7,000 | $5,000 | $4,000 | $4,000 | |
| Direct Cost of Sales | $200 | $250 | $300 | $350 | $400 | $500 | $550 | $600 | $350 | $250 | $200 | $200 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $200 | $250 | $300 | $350 | $400 | $500 | $550 | $600 | $350 | $250 | $200 | $200 | |
| Gross Margin | $3,800 | $4,750 | $5,700 | $6,650 | $7,600 | $9,500 | $10,450 | $11,400 | $6,650 | $4,750 | $3,800 | $3,800 | |
| Gross Margin % | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | |
| Expenses | |||||||||||||
| Payroll | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | |
| Sales and Marketing and Other Expenses | $575 | $575 | $575 | $575 | $575 | $575 | $575 | $575 | $575 | $575 | $575 | $575 | |
| Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Utilities | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
| Insurance | $300 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Rent | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | |
| Payroll Taxes | 15% | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $7,225 | $6,925 | $6,925 | $6,925 | $6,925 | $6,925 | $6,925 | $6,925 | $6,925 | $6,925 | $6,925 | $6,925 | |
| Profit Before Interest and Taxes | ($3,425) | ($2,175) | ($1,225) | ($275) | $675 | $2,575 | $3,525 | $4,475 | ($275) | ($2,175) | ($3,125) | ($3,125) | |
| EBITDA | ($3,425) | ($2,175) | ($1,225) | ($275) | $675 | $2,575 | $3,525 | $4,475 | ($275) | ($2,175) | ($3,125) | ($3,125) | |
| 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 | ($3,425) | ($2,175) | ($1,225) | ($275) | $675 | $2,575 | $3,525 | $4,475 | ($275) | ($2,175) | ($3,125) | ($3,125) | |
| Net Profit/Sales | -85.63% | -43.50% | -20.42% | -3.93% | 8.44% | 25.75% | 32.05% | 37.29% | -3.93% | -43.50% | -78.13% | -78.13% | |
| 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 | $1,000 | $1,250 | $1,500 | $1,750 | $2,000 | $2,500 | $2,750 | $3,000 | $1,750 | $1,250 | $1,000 | $1,000 | |
| Cash from Receivables | $0 | $100 | $3,025 | $3,775 | $4,525 | $5,275 | $6,050 | $7,525 | $8,275 | $8,875 | $5,200 | $3,725 | |
| Subtotal Cash from Operations | $1,000 | $1,350 | $4,525 | $5,525 | $6,525 | $7,775 | $8,800 | $10,525 | $10,025 | $10,125 | $6,200 | $4,725 | |
| 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 | $6,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Received | $1,000 | $1,350 | $10,525 | $5,525 | $6,525 | $7,775 | $8,800 | $10,525 | $10,025 | $10,125 | $6,200 | $4,725 | |
| 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 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | |
| Bill Payments | $114 | $3,417 | $3,177 | $3,227 | $3,277 | $3,328 | $3,427 | $3,477 | $3,517 | $3,272 | $3,173 | $3,125 | |
| Subtotal Spent on Operations | $4,114 | $7,417 | $7,177 | $7,227 | $7,277 | $7,328 | $7,427 | $7,477 | $7,517 | $7,272 | $7,173 | $7,125 | |
| 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 | $0 | $0 | $0 | $0 | $0 | |
| Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Spent | $4,114 | $7,417 | $7,177 | $7,227 | $7,277 | $7,328 | $7,427 | $7,477 | $7,517 | $7,272 | $7,173 | $7,125 | |
| Net Cash Flow | ($3,114) | ($6,067) | $3,348 | ($1,702) | ($752) | $447 | $1,373 | $3,048 | $2,508 | $2,853 | ($973) | ($2,400) | |
| Cash Balance | $6,836 | $769 | $4,118 | $2,416 | $1,664 | $2,111 | $3,484 | $6,533 | $9,041 | $11,894 | $10,921 | $8,521 | |
| 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 | $9,950 | $6,836 | $769 | $4,118 | $2,416 | $1,664 | $2,111 | $3,484 | $6,533 | $9,041 | $11,894 | $10,921 | $8,521 |
| Accounts Receivable | $0 | $3,000 | $6,650 | $8,125 | $9,600 | $11,075 | $13,300 | $15,500 | $16,975 | $13,950 | $8,825 | $6,625 | $5,900 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $9,950 | $9,836 | $7,419 | $12,243 | $12,016 | $12,739 | $15,411 | $18,984 | $23,508 | $22,991 | $20,719 | $17,546 | $14,421 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| 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 | $0 | $0 | $0 | $0 | $0 |
| Total Assets | $9,950 | $9,836 | $7,419 | $12,243 | $12,016 | $12,739 | $15,411 | $18,984 | $23,508 | $22,991 | $20,719 | $17,546 | $14,421 |
| 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 | $3,311 | $3,069 | $3,118 | $3,166 | $3,214 | $3,311 | $3,359 | $3,408 | $3,166 | $3,069 | $3,021 | $3,021 |
| 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 | $3,311 | $3,069 | $3,118 | $3,166 | $3,214 | $3,311 | $3,359 | $3,408 | $3,166 | $3,069 | $3,021 | $3,021 |
| Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Liabilities | $0 | $3,311 | $3,069 | $3,118 | $3,166 | $3,214 | $3,311 | $3,359 | $3,408 | $3,166 | $3,069 | $3,021 | $3,021 |
| Paid-in Capital | $25,000 | $25,000 | $25,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 | $31,000 |
| Retained Earnings | ($15,050) | ($15,050) | ($15,050) | ($15,050) | ($15,050) | ($15,050) | ($15,050) | ($15,050) | ($15,050) | ($15,050) | ($15,050) | ($15,050) | ($15,050) |
| Earnings | $0 | ($3,425) | ($5,600) | ($6,825) | ($7,100) | ($6,425) | ($3,850) | ($325) | $4,150 | $3,875 | $1,700 | ($1,425) | ($4,550) |
| Total Capital | $9,950 | $6,525 | $4,350 | $9,125 | $8,850 | $9,525 | $12,100 | $15,625 | $20,100 | $19,825 | $17,650 | $14,525 | $11,400 |
| Total Liabilities and Capital | $9,950 | $9,836 | $7,419 | $12,243 | $12,016 | $12,739 | $15,411 | $18,984 | $23,508 | $22,991 | $20,719 | $17,546 | $14,421 |
| Net Worth | $9,950 | $6,525 | $4,350 | $9,125 | $8,850 | $9,525 | $12,100 | $15,625 | $20,100 | $19,825 | $17,650 | $14,525 | $11,400 |
By 
