The House of Pine
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 | |||||||||||||
Furniture | 0% | $50,000 | $60,000 | $70,000 | $75,000 | $85,000 | $90,000 | $100,000 | $85,000 | $90,000 | $85,000 | $79,000 | $95,000 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Sales | $50,000 | $60,000 | $70,000 | $75,000 | $85,000 | $90,000 | $100,000 | $85,000 | $90,000 | $85,000 | $79,000 | $95,000 | |
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 | |
Furniture | $20,000 | $22,000 | $31,000 | $34,000 | $40,000 | $42,000 | $45,000 | $38,000 | $41,000 | $37,000 | $35,000 | $47,000 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $20,000 | $22,000 | $31,000 | $34,000 | $40,000 | $42,000 | $45,000 | $38,000 | $41,000 | $37,000 | $35,000 | $47,000 |
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% | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Assistant 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 |
Office Manager/Bookkeeper | 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 |
Checkers | 0% | $2,700 | $2,700 | $2,700 | $2,700 | $2,700 | $2,700 | $2,700 | $2,700 | $2,700 | $2,700 | $2,700 | $2,700 |
Production Staff | 0% | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 |
Stockers | 0% | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 |
Total People | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | |
Total Payroll | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 |
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 | $50,000 | $60,000 | $70,000 | $75,000 | $85,000 | $90,000 | $100,000 | $85,000 | $90,000 | $85,000 | $79,000 | $95,000 | |
Direct Cost of Sales | $20,000 | $22,000 | $31,000 | $34,000 | $40,000 | $42,000 | $45,000 | $38,000 | $41,000 | $37,000 | $35,000 | $47,000 | |
Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $20,000 | $22,000 | $31,000 | $34,000 | $40,000 | $42,000 | $45,000 | $38,000 | $41,000 | $37,000 | $35,000 | $47,000 | |
Gross Margin | $30,000 | $38,000 | $39,000 | $41,000 | $45,000 | $48,000 | $55,000 | $47,000 | $49,000 | $48,000 | $44,000 | $48,000 | |
Gross Margin % | 60.00% | 63.33% | 55.71% | 54.67% | 52.94% | 53.33% | 55.00% | 55.29% | 54.44% | 56.47% | 55.70% | 50.53% | |
Expenses | |||||||||||||
Payroll | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
Sales and Marketing and Other Expenses | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | |
Depreciation | $952 | $952 | $952 | $952 | $952 | $952 | $952 | $952 | $952 | $952 | $952 | $952 | |
Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Utilities | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | |
Insurance | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
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% | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $38,502 | $38,502 | $38,502 | $38,502 | $38,502 | $38,502 | $38,502 | $38,502 | $38,502 | $38,502 | $38,502 | $38,502 | |
Profit Before Interest and Taxes | ($8,502) | ($502) | $498 | $2,498 | $6,498 | $9,498 | $16,498 | $8,498 | $10,498 | $9,498 | $5,498 | $9,498 | |
EBITDA | ($7,550) | $450 | $1,450 | $3,450 | $7,450 | $10,450 | $17,450 | $9,450 | $11,450 | $10,450 | $6,450 | $10,450 | |
Interest Expense | $1,069 | $1,056 | $1,042 | $1,028 | $1,014 | $1,000 | $986 | $972 | $958 | $945 | $931 | $917 | |
Taxes Incurred | ($2,871) | ($467) | ($163) | $441 | $1,645 | $2,549 | $4,654 | $2,258 | $2,862 | $2,566 | $1,370 | $2,574 | |
Net Profit | ($6,700) | ($1,090) | ($381) | $1,029 | $3,839 | $5,949 | $10,858 | $5,268 | $6,678 | $5,987 | $3,197 | $6,007 | |
Net Profit/Sales | -13.40% | -1.82% | -0.54% | 1.37% | 4.52% | 6.61% | 10.86% | 6.20% | 7.42% | 7.04% | 4.05% | 6.32% |
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 | $37,500 | $45,000 | $52,500 | $56,250 | $63,750 | $67,500 | $75,000 | $63,750 | $67,500 | $63,750 | $59,250 | $71,250 | |
Cash from Receivables | $0 | $417 | $12,583 | $15,083 | $17,542 | $18,833 | $21,292 | $22,583 | $24,875 | $21,292 | $22,458 | $21,200 | |
Subtotal Cash from Operations | $37,500 | $45,417 | $65,083 | $71,333 | $81,292 | $86,333 | $96,292 | $86,333 | $92,375 | $85,042 | $81,708 | $92,450 | |
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 | $37,500 | $45,417 | $65,083 | $71,333 | $81,292 | $86,333 | $96,292 | $86,333 | $92,375 | $85,042 | $81,708 | $92,450 | |
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 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
Bill Payments | $358 | $11,368 | $30,171 | $54,228 | $51,669 | $61,759 | $60,506 | $65,809 | $46,566 | $60,270 | $48,627 | $48,604 | |
Subtotal Spent on Operations | $25,358 | $36,368 | $55,171 | $79,228 | $76,669 | $86,759 | $85,506 | $90,809 | $71,566 | $85,270 | $73,627 | $73,604 | |
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 | $1,666 | $1,666 | $1,666 | $1,666 | $1,666 | $1,666 | $1,666 | $1,666 | $1,666 | $1,666 | $1,666 | $1,666 | |
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 | $27,024 | $38,034 | $56,837 | $80,894 | $78,335 | $88,425 | $87,172 | $92,475 | $73,232 | $86,936 | $75,293 | $75,270 | |
Net Cash Flow | $10,476 | $7,383 | $8,246 | ($9,561) | $2,957 | ($2,091) | $9,120 | ($6,142) | $19,143 | ($1,894) | $6,415 | $17,180 | |
Cash Balance | $16,276 | $23,659 | $31,905 | $22,344 | $25,301 | $23,209 | $32,329 | $26,187 | $45,330 | $43,436 | $49,851 | $67,031 |
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 | $5,800 | $16,276 | $23,659 | $31,905 | $22,344 | $25,301 | $23,209 | $32,329 | $26,187 | $45,330 | $43,436 | $49,851 | $67,031 |
Accounts Receivable | $0 | $12,500 | $27,083 | $32,000 | $35,667 | $39,375 | $43,042 | $46,750 | $45,417 | $43,042 | $43,000 | $40,292 | $42,842 |
Inventory | $50,000 | $30,000 | $24,200 | $34,100 | $37,400 | $44,000 | $46,200 | $49,500 | $41,800 | $45,100 | $40,700 | $38,500 | $51,700 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $55,800 | $58,776 | $74,942 | $98,005 | $95,410 | $108,676 | $112,451 | $128,579 | $113,404 | $133,472 | $127,136 | $128,643 | $161,573 |
Long-term Assets | |||||||||||||
Long-term Assets | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 |
Accumulated Depreciation | $0 | $952 | $1,904 | $2,856 | $3,808 | $4,760 | $5,712 | $6,664 | $7,616 | $8,568 | $9,520 | $10,472 | $11,424 |
Total Long-term Assets | $60,000 | $59,048 | $58,096 | $57,144 | $56,192 | $55,240 | $54,288 | $53,336 | $52,384 | $51,432 | $50,480 | $49,528 | $48,576 |
Total Assets | $115,800 | $117,824 | $133,038 | $155,149 | $151,602 | $163,916 | $166,739 | $181,915 | $165,788 | $184,904 | $177,616 | $178,171 | $210,149 |
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 | $10,390 | $28,360 | $52,518 | $49,608 | $59,749 | $58,289 | $64,273 | $44,544 | $58,648 | $47,039 | $46,062 | $73,700 |
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 | $10,390 | $28,360 | $52,518 | $49,608 | $59,749 | $58,289 | $64,273 | $44,544 | $58,648 | $47,039 | $46,062 | $73,700 |
Long-term Liabilities | $130,000 | $128,334 | $126,668 | $125,002 | $123,336 | $121,670 | $120,004 | $118,338 | $116,672 | $115,006 | $113,340 | $111,674 | $110,008 |
Total Liabilities | $130,000 | $138,724 | $155,028 | $177,520 | $172,944 | $181,419 | $178,293 | $182,611 | $161,216 | $173,654 | $160,379 | $157,736 | $183,708 |
Paid-in Capital | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 |
Retained Earnings | ($64,200) | ($64,200) | ($64,200) | ($64,200) | ($64,200) | ($64,200) | ($64,200) | ($64,200) | ($64,200) | ($64,200) | ($64,200) | ($64,200) | ($64,200) |
Earnings | $0 | ($6,700) | ($7,790) | ($8,171) | ($7,142) | ($3,303) | $2,646 | $13,504 | $18,772 | $25,450 | $31,437 | $34,634 | $40,641 |
Total Capital | ($14,200) | ($20,900) | ($21,990) | ($22,371) | ($21,342) | ($17,503) | ($11,554) | ($696) | $4,572 | $11,250 | $17,237 | $20,434 | $26,441 |
Total Liabilities and Capital | $115,800 | $117,824 | $133,038 | $155,149 | $151,602 | $163,916 | $166,739 | $181,915 | $165,788 | $184,904 | $177,616 | $178,171 | $210,149 |
Net Worth | ($14,200) | ($20,900) | ($21,990) | ($22,371) | ($21,342) | ($17,503) | ($11,554) | ($696) | $4,572 | $11,250 | $17,237 | $20,434 | $26,441 |