University Cycle Works
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 Bicycles | 0% | $9,500 | $14,000 | $14,000 | $9,500 | $6,500 | $10,000 | $7,500 | $6,500 | $8,000 | $9,500 | $11,000 | $10,000 |
| Accessories and Parts | 0% | $11,000 | $17,500 | $16,000 | $11,000 | $10,000 | $15,000 | $9,500 | $8,000 | $13,000 | $15,000 | $11,000 | $13,000 |
| Clothing | 0% | $3,500 | $3,500 | $4,500 | $6,500 | $10,500 | $7,500 | $4,500 | $3,500 | $4,500 | $6,500 | $7,500 | $5,500 |
| Repair and Service | 0% | $11,000 | $11,000 | $13,000 | $14,000 | $12,000 | $11,000 | $12,000 | $14,000 | $16,000 | $18,000 | $18,000 | $16,000 |
| University Patrol Service Contract | 0% | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 |
| Total Sales | $35,100 | $46,100 | $47,600 | $41,100 | $39,100 | $43,600 | $33,600 | $32,100 | $41,600 | $49,100 | $47,600 | $44,600 | |
| 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 Bicycles | 68% | $6,460 | $9,520 | $9,520 | $6,460 | $4,420 | $6,800 | $5,100 | $4,420 | $5,440 | $6,460 | $7,480 | $6,800 |
| Accessories and Parts | 50% | $5,500 | $8,750 | $8,000 | $5,500 | $5,000 | $7,500 | $4,750 | $4,000 | $6,500 | $7,500 | $5,500 | $6,500 |
| Clothing | 35% | $1,225 | $1,225 | $1,575 | $2,275 | $3,675 | $2,625 | $1,575 | $1,225 | $1,575 | $2,275 | $2,625 | $1,925 |
| Repair and Service | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| University Patrol Service Contract | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $13,185 | $19,495 | $19,095 | $14,235 | $13,095 | $16,925 | $11,425 | $9,645 | $13,515 | $16,235 | $15,605 | $15,225 | |
| 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 | ||
| Hub Freewheeler | 0% | $1,800 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
| Vel O’Cipede | 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 |
| Dee Raylure | 0% | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 |
| Jean-Baptiste Kapsyze | 0% | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 |
| Part-time Employees | 0% | $0 | $700 | $1,400 | $2,100 | $2,100 | $2,100 | $2,100 | $2,100 | $2,100 | $2,100 | $1,400 | $700 |
| Total People | 4 | 5 | 6 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 6 | 5 | |
| Total Payroll | $7,650 | $9,550 | $10,250 | $10,950 | $10,950 | $10,950 | $10,950 | $10,950 | $10,950 | $10,950 | $10,250 | $9,550 | |
| 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 | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | |
| Tax Rate | 30.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
| 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 | $35,100 | $46,100 | $47,600 | $41,100 | $39,100 | $43,600 | $33,600 | $32,100 | $41,600 | $49,100 | $47,600 | $44,600 | |
| Direct Cost of Sales | $13,185 | $19,495 | $19,095 | $14,235 | $13,095 | $16,925 | $11,425 | $9,645 | $13,515 | $16,235 | $15,605 | $15,225 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $13,185 | $19,495 | $19,095 | $14,235 | $13,095 | $16,925 | $11,425 | $9,645 | $13,515 | $16,235 | $15,605 | $15,225 | |
| Gross Margin | $21,915 | $26,605 | $28,505 | $26,865 | $26,005 | $26,675 | $22,175 | $22,455 | $28,085 | $32,865 | $31,995 | $29,375 | |
| Gross Margin % | 62.44% | 57.71% | 59.88% | 65.36% | 66.51% | 61.18% | 66.00% | 69.95% | 67.51% | 66.93% | 67.22% | 65.86% | |
| Expenses | |||||||||||||
| Payroll | $7,650 | $9,550 | $10,250 | $10,950 | $10,950 | $10,950 | $10,950 | $10,950 | $10,950 | $10,950 | $10,250 | $9,550 | |
| Sales and Marketing and Other Expenses | $1,618 | $2,073 | $4,268 | $1,798 | $1,738 | $1,998 | $1,698 | $1,528 | $1,813 | $2,313 | $1,993 | $2,028 | |
| Depreciation | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
| Leased Equipment | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
| Utilities | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
| Insurance | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | |
| Rent | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $0 | |
| Payroll Taxes | 25% | $1,913 | $2,388 | $2,563 | $2,738 | $2,738 | $2,738 | $2,738 | $2,738 | $2,738 | $2,738 | $2,563 | $2,388 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $20,981 | $23,811 | $26,881 | $25,286 | $25,226 | $25,486 | $25,186 | $25,016 | $25,301 | $25,801 | $24,606 | $15,766 | |
| Profit Before Interest and Taxes | $935 | $2,795 | $1,625 | $1,580 | $780 | $1,190 | ($3,011) | ($2,561) | $2,785 | $7,065 | $7,390 | $13,610 | |
| EBITDA | $1,935 | $3,795 | $2,625 | $2,580 | $1,780 | $2,190 | ($2,011) | ($1,561) | $3,785 | $8,065 | $8,390 | $14,610 | |
| Interest Expense | $774 | $761 | $748 | $735 | $722 | $709 | $696 | $683 | $670 | $658 | $645 | $632 | |
| Taxes Incurred | $48 | $508 | $219 | $211 | $14 | $120 | ($927) | ($811) | $529 | $1,602 | $1,686 | $3,244 | |
| Net Profit | $113 | $1,525 | $657 | $633 | $43 | $360 | ($2,780) | ($2,433) | $1,586 | $4,805 | $5,059 | $9,733 | |
| Net Profit/Sales | 0.32% | 3.31% | 1.38% | 1.54% | 0.11% | 0.83% | -8.27% | -7.58% | 3.81% | 9.79% | 10.63% | 21.82% | |
| 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 | $35,100 | $46,100 | $47,600 | $41,100 | $39,100 | $43,600 | $33,600 | $32,100 | $41,600 | $49,100 | $47,600 | $44,600 | |
| Subtotal Cash from Operations | $35,100 | $46,100 | $47,600 | $41,100 | $39,100 | $43,600 | $33,600 | $32,100 | $41,600 | $49,100 | $47,600 | $44,600 | |
| 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 | $8,000 | |
| 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 | $35,100 | $46,100 | $47,600 | $41,100 | $39,100 | $43,600 | $33,600 | $32,100 | $41,600 | $49,100 | $47,600 | $52,600 | |
| 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 | $7,650 | $9,550 | $10,250 | $10,950 | $10,950 | $10,950 | $10,950 | $10,950 | $10,950 | $10,950 | $10,250 | $9,550 | |
| Bill Payments | $18,533 | $18,893 | $36,063 | $37,919 | $28,809 | $24,601 | $31,000 | $26,371 | $19,577 | $26,863 | $33,930 | $32,810 | |
| Subtotal Spent on Operations | $26,183 | $28,443 | $46,313 | $48,869 | $39,759 | $35,551 | $41,950 | $37,321 | $30,527 | $37,813 | $44,180 | $42,360 | |
| 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 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
| Other Liabilities Principal Repayment | $0 | $0 | $0 | $1,000 | $1,500 | $2,500 | $1,000 | $0 | $0 | $0 | $2,500 | $1,500 | |
| Long-term Liabilities Principal Repayment | $0 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
| Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Purchase Long-term Assets | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
| Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Spent | $26,433 | $30,693 | $48,563 | $52,119 | $43,509 | $40,301 | $45,200 | $39,571 | $32,777 | $40,063 | $48,930 | $46,110 | |
| Net Cash Flow | $8,667 | $15,407 | ($963) | ($11,019) | ($4,409) | $3,299 | ($11,600) | ($7,471) | $8,823 | $9,037 | ($1,330) | $6,490 | |
| Cash Balance | $103,667 | $119,074 | $118,111 | $107,092 | $102,683 | $105,982 | $94,382 | $86,912 | $95,734 | $104,771 | $103,442 | $109,932 | |
| 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 | $95,000 | $103,667 | $119,074 | $118,111 | $107,092 | $102,683 | $105,982 | $94,382 | $86,912 | $95,734 | $104,771 | $103,442 | $109,932 |
| Inventory | $17,000 | $14,504 | $21,445 | $21,005 | $15,659 | $14,405 | $18,618 | $12,568 | $10,610 | $14,867 | $17,859 | $17,166 | $16,748 |
| Other Current Assets | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $0 |
| Total Current Assets | $120,000 | $126,170 | $148,518 | $147,115 | $130,750 | $125,088 | $132,599 | $114,950 | $105,521 | $118,601 | $130,630 | $128,607 | $126,680 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $61,500 | $61,600 | $61,700 | $61,800 | $61,900 | $62,000 | $62,100 | $62,200 | $62,300 | $62,400 | $62,500 | $62,600 | $62,700 |
| Accumulated Depreciation | $0 | $1,000 | $2,000 | $3,000 | $4,000 | $5,000 | $6,000 | $7,000 | $8,000 | $9,000 | $10,000 | $11,000 | $12,000 |
| Total Long-term Assets | $61,500 | $60,600 | $59,700 | $58,800 | $57,900 | $57,000 | $56,100 | $55,200 | $54,300 | $53,400 | $52,500 | $51,600 | $50,700 |
| Total Assets | $181,500 | $186,770 | $208,218 | $205,915 | $188,650 | $182,088 | $188,699 | $170,150 | $159,821 | $172,001 | $183,130 | $180,207 | $177,380 |
| 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 | $27,800 | $33,108 | $55,180 | $54,370 | $39,622 | $36,666 | $47,567 | $34,948 | $29,202 | $41,946 | $50,420 | $47,089 | $38,178 |
| Current Borrowing | $2,000 | $1,850 | $1,700 | $1,550 | $1,400 | $1,250 | $1,100 | $950 | $800 | $650 | $500 | $350 | $200 |
| Other Current Liabilities | $10,000 | $10,000 | $10,000 | $10,000 | $9,000 | $7,500 | $5,000 | $4,000 | $4,000 | $4,000 | $4,000 | $1,500 | $0 |
| Subtotal Current Liabilities | $39,800 | $44,958 | $66,880 | $65,920 | $50,022 | $45,416 | $53,667 | $39,898 | $34,002 | $46,596 | $54,920 | $48,939 | $38,378 |
| Long-term Liabilities | $130,000 | $130,000 | $128,000 | $126,000 | $124,000 | $122,000 | $120,000 | $118,000 | $116,000 | $114,000 | $112,000 | $110,000 | $108,000 |
| Total Liabilities | $169,800 | $174,958 | $194,880 | $191,920 | $174,022 | $167,416 | $173,667 | $157,898 | $150,002 | $160,596 | $166,920 | $158,939 | $146,378 |
| Paid-in Capital | $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 |
| Retained Earnings | ($13,300) | ($13,300) | ($13,300) | ($13,300) | ($13,300) | ($13,300) | ($13,300) | ($13,300) | ($13,300) | ($13,300) | ($13,300) | ($13,300) | ($13,300) |
| Earnings | $0 | $113 | $1,638 | $2,295 | $2,929 | $2,972 | $3,332 | $552 | ($1,881) | ($295) | $4,510 | $9,568 | $19,302 |
| Total Capital | $11,700 | $11,813 | $13,338 | $13,995 | $14,629 | $14,672 | $15,032 | $12,252 | $9,819 | $11,405 | $16,210 | $21,268 | $31,002 |
| Total Liabilities and Capital | $181,500 | $186,770 | $208,218 | $205,915 | $188,650 | $182,088 | $188,699 | $170,150 | $159,821 | $172,001 | $183,130 | $180,207 | $177,380 |
| Net Worth | $11,700 | $11,813 | $13,338 | $13,995 | $14,629 | $14,672 | $15,032 | $12,252 | $9,819 | $11,405 | $16,210 | $21,268 | $31,002 |
By 
