Cresta Testing
Appendix
| Sales Forecast | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Unit Sales | |||||||||||||
| Consulting Services | 0% | 117 | 167 | 169 | 160 | 160 | 220 | 220 | 180 | 240 | 240 | 200 | 260 |
| Staff Augmentation | 0% | 0 | 0 | 0 | 0 | 60 | 60 | 80 | 80 | 100 | 100 | 120 | 120 |
| Training Services | 0% | 0 | 0 | 0 | 0 | 0 | 6 | 8 | 8 | 10 | 15 | 8 | 8 |
| Other | 0% | 1 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Unit Sales | 118 | 168 | 169 | 160 | 220 | 286 | 308 | 268 | 350 | 355 | 328 | 388 | |
| Unit Prices | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
| Consulting Services | $624.00 | $756.00 | $737.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | |
| Staff Augmentation | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 | |
| Training Services | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $400.00 | $400.00 | $400.00 | $400.00 | $400.00 | $400.00 | $400.00 | |
| Other | $10,994.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | |
| Sales | |||||||||||||
| Consulting Services | $73,008 | $126,252 | $124,553 | $160,000 | $160,000 | $220,000 | $220,000 | $180,000 | $240,000 | $240,000 | $200,000 | $260,000 | |
| Staff Augmentation | $0 | $0 | $0 | $0 | $27,000 | $27,000 | $36,000 | $36,000 | $45,000 | $45,000 | $54,000 | $54,000 | |
| Training Services | $0 | $0 | $0 | $0 | $0 | $2,400 | $3,200 | $3,200 | $4,000 | $6,000 | $3,200 | $3,200 | |
| Other | $10,994 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Sales | $84,002 | $126,252 | $124,553 | $160,000 | $187,000 | $249,400 | $259,200 | $219,200 | $289,000 | $291,000 | $257,200 | $317,200 | |
| Direct Unit Costs | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
| Consulting Services | 30.00% | $187.20 | $226.80 | $221.10 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 |
| Staff Augmentation | 30.00% | $135.00 | $135.00 | $135.00 | $135.00 | $135.00 | $135.00 | $135.00 | $135.00 | $135.00 | $135.00 | $135.00 | $135.00 |
| Training Services | 30.00% | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $120.00 | $120.00 | $120.00 | $120.00 | $120.00 | $120.00 | $120.00 |
| Other | 0.00% | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Direct Cost of Sales | |||||||||||||
| Consulting Services | $21,902 | $37,876 | $37,366 | $48,000 | $48,000 | $66,000 | $66,000 | $54,000 | $72,000 | $72,000 | $60,000 | $78,000 | |
| Staff Augmentation | $0 | $0 | $0 | $0 | $8,100 | $8,100 | $10,800 | $10,800 | $13,500 | $13,500 | $16,200 | $16,200 | |
| Training Services | $0 | $0 | $0 | $0 | $0 | $720 | $960 | $960 | $1,200 | $1,800 | $960 | $960 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $21,902 | $37,876 | $37,366 | $48,000 | $56,100 | $74,820 | $77,760 | $65,760 | $86,700 | $87,300 | $77,160 | $95,160 | |
| Personnel Plan | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Production Personnel | |||||||||||||
| People | 6 | 6 | 6 | 6 | 6 | 6 | 6 | 6 | 6 | 7 | 7 | 7 | |
| Average per Person | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | $6,250 | |
| Subtotal | $37,500 | $37,500 | $37,500 | $37,500 | $37,500 | $37,500 | $37,500 | $37,500 | $37,500 | $43,750 | $43,750 | $43,750 | |
| Sales and Marketing Personnel | |||||||||||||
| People | 2 | 2 | 2 | 2 | 2 | 3 | 3 | 3 | 3 | 3 | 4 | 4 | |
| Average per Person | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | |
| Subtotal | $16,667 | $16,667 | $16,667 | $16,667 | $16,667 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $33,333 | $33,333 | |
| General and Administrative Personnel | |||||||||||||
| People | 2 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | |
| Average per Person | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | |
| Subtotal | $20,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | |
| Other Personnel | |||||||||||||
| People | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Average per Person | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total People | 10 | 11 | 11 | 11 | 11 | 12 | 12 | 12 | 12 | 13 | 14 | 14 | |
| Total Payroll Expenditures | $74,167 | $84,167 | $84,167 | $84,167 | $84,167 | $92,500 | $92,500 | $92,500 | $92,500 | $98,750 | $107,083 | $107,083 | |
| Pro Forma Profit and Loss | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Sales | $84,002 | $126,252 | $124,553 | $160,000 | $187,000 | $249,400 | $259,200 | $219,200 | $289,000 | $291,000 | $257,200 | $317,200 | |
| Direct Cost of Sales | $21,902 | $37,876 | $37,366 | $48,000 | $56,100 | $74,820 | $77,760 | $65,760 | $86,700 | $87,300 | $77,160 | $95,160 | |
| Production Payroll | $37,500 | $37,500 | $37,500 | $37,500 | $37,500 | $37,500 | $37,500 | $37,500 | $37,500 | $43,750 | $43,750 | $43,750 | |
| Commissions | $2,100 | $3,156 | $3,114 | $4,000 | $4,675 | $6,235 | $6,480 | $5,480 | $7,225 | $7,275 | $6,430 | $7,930 | |
| Total Cost of Sales | $61,502 | $78,532 | $77,980 | $89,500 | $98,275 | $118,555 | $121,740 | $108,740 | $131,425 | $138,325 | $127,340 | $146,840 | |
| Gross Margin | $22,500 | $47,720 | $46,573 | $70,500 | $88,725 | $130,845 | $137,460 | $110,460 | $157,575 | $152,675 | $129,860 | $170,360 | |
| Gross Margin % | 26.78% | 37.80% | 37.39% | 44.06% | 47.45% | 52.46% | 53.03% | 50.39% | 54.52% | 52.47% | 50.49% | 53.71% | |
| Operating Expenses | |||||||||||||
| Sales and Marketing Expenses | |||||||||||||
| Sales and Marketing Payroll | $16,667 | $16,667 | $16,667 | $16,667 | $16,667 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $33,333 | $33,333 | |
| Advertising/Promotion | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
| Other Sales and Marketing Expenses | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $6,000 | $6,000 | |
| Total Sales and Marketing Expenses | $21,667 | $21,667 | $21,667 | $21,667 | $21,667 | $31,500 | $31,500 | $31,500 | $31,500 | $31,500 | $41,333 | $41,333 | |
| Sales and Marketing % | 25.79% | 17.16% | 17.40% | 13.54% | 11.59% | 12.63% | 12.15% | 14.37% | 10.90% | 10.82% | 16.07% | 13.03% | |
| General and Administrative Expenses | |||||||||||||
| General and Administrative Payroll | $20,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | |
| Sales and Marketing and Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| 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 | |
| Communications | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | |
| Rent | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | |
| Utilities | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
| Insurance | $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 | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other General and Administrative Expenses | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | |
| Total General and Administrative Expenses | $38,500 | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 | |
| General and Administrative % | 45.83% | 38.42% | 38.94% | 30.31% | 25.94% | 19.45% | 18.71% | 22.13% | 16.78% | 16.67% | 18.86% | 15.29% | |
| Other Expenses: | |||||||||||||
| Other Payroll | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Consultants | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Other Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Other % | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
| Total Operating Expenses | $60,167 | $70,167 | $70,167 | $70,167 | $70,167 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $89,833 | $89,833 | |
| Profit Before Interest and Taxes | ($37,667) | ($22,447) | ($23,593) | $333 | $18,558 | $50,845 | $57,460 | $30,460 | $77,575 | $72,675 | $40,027 | $80,527 | |
| EBITDA | ($36,667) | ($21,447) | ($22,593) | $1,333 | $19,558 | $51,845 | $58,460 | $31,460 | $78,575 | $73,675 | $41,027 | $81,527 | |
| Interest Expense | $1,347 | $1,339 | $1,331 | $1,324 | $1,316 | $1,308 | $1,301 | $1,287 | $1,274 | $1,260 | $1,247 | $1,233 | |
| Taxes Incurred | ($15,606) | ($9,514) | ($9,970) | ($396) | $6,897 | $19,815 | $22,464 | $11,669 | $30,520 | $28,566 | $15,512 | $31,717 | |
| Net Profit | ($23,408) | ($14,271) | ($14,955) | ($594) | $10,345 | $29,722 | $33,696 | $17,504 | $45,781 | $42,849 | $23,268 | $47,576 | |
| Net Profit/Sales | -27.87% | -11.30% | -12.01% | -0.37% | 5.53% | 11.92% | 13.00% | 7.99% | 15.84% | 14.72% | 9.05% | 15.00% | |
| Pro Forma Cash Flow | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Cash Received | |||||||||||||
| Cash from Operations | |||||||||||||
| Cash Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Cash from Receivables | $60,856 | $63,656 | $85,410 | $126,195 | $125,735 | $160,900 | $189,080 | $249,727 | $257,867 | $221,527 | $289,067 | $289,873 | |
| Subtotal Cash from Operations | $60,856 | $63,656 | $85,410 | $126,195 | $125,735 | $160,900 | $189,080 | $249,727 | $257,867 | $221,527 | $289,067 | $289,873 | |
| 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 | $185,000 | $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 | $245,856 | $63,656 | $85,410 | $126,195 | $125,735 | $160,900 | $189,080 | $249,727 | $257,867 | $221,527 | $289,067 | $289,873 | |
| Expenditures | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
| Expenditures from Operations | |||||||||||||
| Cash Spending | $74,167 | $84,167 | $84,167 | $84,167 | $84,167 | $92,500 | $92,500 | $92,500 | $92,500 | $98,750 | $107,083 | $107,083 | |
| Bill Payments | $59,793 | $33,014 | $55,323 | $55,044 | $75,963 | $92,644 | $126,372 | $131,211 | $109,580 | $149,675 | $147,649 | $127,038 | |
| Subtotal Spent on Operations | $133,959 | $117,181 | $139,490 | $139,211 | $160,130 | $185,144 | $218,872 | $223,711 | $202,080 | $248,425 | $254,733 | $234,122 | |
| 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 | $765 | $765 | $765 | $765 | $765 | $765 | $765 | $765 | $765 | $765 | $765 | $765 | |
| 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 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
| 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 | $134,724 | $117,946 | $140,255 | $139,976 | $160,895 | $185,909 | $219,637 | $225,476 | $203,845 | $250,190 | $256,498 | $235,887 | |
| Net Cash Flow | $111,131 | ($54,290) | ($54,844) | ($13,780) | ($35,160) | ($25,009) | ($30,557) | $24,251 | $54,021 | ($28,664) | $32,569 | $53,987 | |
| Cash Balance | $263,821 | $209,531 | $154,687 | $140,906 | $105,746 | $80,737 | $50,180 | $74,431 | $128,452 | $99,788 | $132,357 | $186,344 | |
| Pro Forma Balance Sheet | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Assets | Starting Balances | ||||||||||||
| Current Assets | |||||||||||||
| Cash | $152,690 | $263,821 | $209,531 | $154,687 | $140,906 | $105,746 | $80,737 | $50,180 | $74,431 | $128,452 | $99,788 | $132,357 | $186,344 |
| Accounts Receivable | $121,711 | $144,858 | $207,454 | $246,597 | $280,401 | $341,667 | $430,167 | $500,287 | $469,760 | $500,893 | $570,367 | $538,500 | $565,827 |
| Other Current Assets | $15,933 | $15,933 | $15,933 | $15,933 | $15,933 | $15,933 | $15,933 | $15,933 | $15,933 | $15,933 | $15,933 | $15,933 | $15,933 |
| Total Current Assets | $290,334 | $424,612 | $432,918 | $417,216 | $437,241 | $463,346 | $526,837 | $566,399 | $560,124 | $645,278 | $686,088 | $686,790 | $768,103 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $92,595 | $92,595 | $92,595 | $92,595 | $92,595 | $92,595 | $92,595 | $92,595 | $92,595 | $92,595 | $92,595 | $92,595 | $92,595 |
| Accumulated Depreciation | $15,496 | $16,496 | $17,496 | $18,496 | $19,496 | $20,496 | $21,496 | $22,496 | $23,496 | $24,496 | $25,496 | $26,496 | $27,496 |
| Total Long-term Assets | $77,099 | $76,099 | $75,099 | $74,099 | $73,099 | $72,099 | $71,099 | $70,099 | $69,099 | $68,099 | $67,099 | $66,099 | $65,099 |
| Total Assets | $367,433 | $500,711 | $508,017 | $491,315 | $510,340 | $535,445 | $597,936 | $636,498 | $629,223 | $713,377 | $753,187 | $752,889 | $833,202 |
| Liabilities and Capital | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
| Current Liabilities | |||||||||||||
| Accounts Payable | $58,718 | $31,169 | $53,511 | $52,530 | $72,913 | $88,438 | $121,972 | $127,604 | $104,590 | $144,729 | $143,454 | $121,654 | $156,156 |
| Current Borrowing | $27,515 | $26,750 | $25,985 | $25,220 | $24,455 | $23,690 | $22,925 | $22,160 | $21,395 | $20,630 | $19,865 | $19,100 | $18,335 |
| Other Current Liabilities | $84,483 | $84,483 | $84,483 | $84,483 | $84,483 | $84,483 | $84,483 | $84,483 | $84,483 | $84,483 | $84,483 | $84,483 | $84,483 |
| Subtotal Current Liabilities | $170,716 | $142,402 | $163,979 | $162,233 | $181,851 | $196,611 | $229,380 | $234,247 | $210,468 | $249,842 | $247,802 | $225,237 | $258,974 |
| Long-term Liabilities | $0 | $185,000 | $185,000 | $185,000 | $185,000 | $185,000 | $185,000 | $185,000 | $184,000 | $183,000 | $182,000 | $181,000 | $180,000 |
| Total Liabilities | $170,716 | $327,402 | $348,979 | $347,233 | $366,851 | $381,611 | $414,380 | $419,247 | $394,468 | $432,842 | $429,802 | $406,237 | $438,974 |
| Paid-in Capital | $544,732 | $544,732 | $544,732 | $544,732 | $544,732 | $544,732 | $544,732 | $544,732 | $544,732 | $544,732 | $544,732 | $544,732 | $544,732 |
| Retained Earnings | ($106,521) | ($348,015) | ($348,015) | ($348,015) | ($348,015) | ($348,015) | ($348,015) | ($348,015) | ($348,015) | ($348,015) | ($348,015) | ($348,015) | ($348,015) |
| Earnings | ($241,494) | ($23,408) | ($37,680) | ($52,634) | ($53,229) | ($42,883) | ($13,161) | $20,534 | $38,038 | $83,818 | $126,667 | $149,935 | $197,511 |
| Total Capital | $196,717 | $173,309 | $159,037 | $144,083 | $143,488 | $153,834 | $183,556 | $217,251 | $234,755 | $280,535 | $323,384 | $346,652 | $394,228 |
| Total Liabilities and Capital | $367,433 | $500,711 | $508,017 | $491,315 | $510,340 | $535,445 | $597,936 | $636,498 | $629,223 | $713,377 | $753,187 | $752,889 | $833,202 |
| Net Worth | $196,717 | $173,309 | $159,037 | $144,083 | $143,488 | $153,834 | $183,556 | $217,251 | $234,755 | $280,535 | $323,384 | $346,652 | $394,228 |
By 
