Pink Lady Bug Designs
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 | |||||||||||||
| Chocolate – Favor | 0% | $0 | $2,985 | $2,985 | $2,985 | $6,965 | $2,985 | $6,965 | $2,985 | $3,980 | $2,985 | $2,985 | $3,980 |
| Chocolates – Medium Favor/Gift | 0% | $0 | $2,495 | $2,495 | $2,970 | $24,950 | $2,970 | $24,950 | $2,970 | $4,990 | $2,970 | $2,970 | $4,990 |
| Chocolate – Premium | 0% | $0 | $1,499 | $1,499 | $7,495 | $14,990 | $7,495 | $7,495 | $7,495 | $7,495 | $7,495 | $7,495 | $7,495 |
| Plush Collectible | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Gift Basket | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Sales | $0 | $6,979 | $6,979 | $13,450 | $46,905 | $13,450 | $39,410 | $13,450 | $16,465 | $13,450 | $13,450 | $16,465 | |
| 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 | |
| Chocolate – Favor | $0 | $1,493 | $1,493 | $1,493 | $3,483 | $1,493 | $3,483 | $1,493 | $1,990 | $1,493 | $1,493 | $1,990 | |
| Chocolates – Medium Favor/Gift | $0 | $1,247 | $1,247 | $1,485 | $12,475 | $1,485 | $12,475 | $1,485 | $2,495 | $1,485 | $1,485 | $2,495 | |
| Chocolate – Premium | $0 | $749 | $749 | $3,748 | $7,495 | $3,748 | $3,748 | $3,748 | $3,748 | $3,748 | $3,748 | $3,748 | |
| Plush Collectible | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Gift Basket | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $0 | $3,489 | $3,489 | $6,726 | $23,453 | $6,726 | $19,706 | $6,726 | $8,233 | $6,726 | $6,726 | $8,233 | |
| 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 | ||
| Linda Herter – President | 100% | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,337 |
| Jim Herter – Vice President/Controller | 100% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Office Manager/Administrative Assistant | 100% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Marketing/Sales Manager | 100% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total People | 0 | 0 | 0 | 0 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |
| Total Payroll | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,337 | |
| 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 | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | |
| Long-term Interest Rate | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | |
| 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 | $0 | $6,979 | $6,979 | $13,450 | $46,905 | $13,450 | $39,410 | $13,450 | $16,465 | $13,450 | $13,450 | $16,465 | |
| Direct Cost of Sales | $0 | $3,489 | $3,489 | $6,726 | $23,453 | $6,726 | $19,706 | $6,726 | $8,233 | $6,726 | $6,726 | $8,233 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $0 | $3,489 | $3,489 | $6,726 | $23,453 | $6,726 | $19,706 | $6,726 | $8,233 | $6,726 | $6,726 | $8,233 | |
| Gross Margin | $0 | $3,490 | $3,490 | $6,724 | $23,452 | $6,724 | $19,704 | $6,724 | $8,232 | $6,724 | $6,724 | $8,232 | |
| Gross Margin % | 0.00% | 50.01% | 50.01% | 49.99% | 50.00% | 49.99% | 50.00% | 49.99% | 50.00% | 49.99% | 49.99% | 50.00% | |
| Expenses | |||||||||||||
| Payroll | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,337 | |
| Sales and Marketing and Other Expenses | $2,275 | $2,275 | $2,275 | $2,275 | $2,275 | $2,275 | $2,275 | $2,275 | $2,275 | $2,275 | $2,275 | $2,275 | |
| Depreciation | $66 | $66 | $66 | $66 | $66 | $66 | $66 | $66 | $66 | $66 | $66 | $66 | |
| 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 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
| Rent | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Payroll Taxes | 15% | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $501 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $6,724 | $6,724 | $6,724 | $6,724 | $6,724 | $6,724 | $6,724 | $6,724 | $6,724 | $6,724 | $6,724 | $6,729 | |
| Profit Before Interest and Taxes | ($6,724) | ($3,234) | ($3,234) | $0 | $16,728 | $0 | $12,980 | $0 | $1,508 | $0 | $0 | $1,503 | |
| EBITDA | ($6,658) | ($3,168) | ($3,168) | $66 | $16,794 | $66 | $13,046 | $66 | $1,574 | $66 | $66 | $1,569 | |
| Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Taxes Incurred | ($2,017) | ($970) | ($970) | $0 | $5,018 | $0 | $3,894 | $0 | $452 | $0 | $0 | $451 | |
| Net Profit | ($4,707) | ($2,264) | ($2,264) | $0 | $11,710 | $0 | $9,086 | $0 | $1,056 | $0 | $0 | $1,052 | |
| Net Profit/Sales | 0.00% | -32.44% | -32.44% | 0.00% | 24.96% | 0.00% | 23.06% | 0.00% | 6.41% | 0.00% | 0.00% | 6.39% | |
| 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 | $0 | $6,630 | $6,630 | $12,778 | $44,560 | $12,778 | $37,440 | $12,778 | $15,642 | $12,778 | $12,778 | $15,642 | |
| Cash from Receivables | $0 | $0 | $12 | $349 | $360 | $728 | $2,289 | $716 | $1,927 | $678 | $818 | $673 | |
| Subtotal Cash from Operations | $0 | $6,630 | $6,642 | $13,126 | $44,919 | $13,506 | $39,729 | $13,493 | $17,569 | $13,455 | $13,596 | $16,314 | |
| 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 | $0 | $6,630 | $6,642 | $13,126 | $44,919 | $13,506 | $39,729 | $13,493 | $17,569 | $13,455 | $13,596 | $16,314 | |
| 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 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,337 | |
| Bill Payments | $44 | $1,459 | $5,844 | $5,984 | $10,776 | $31,072 | $10,613 | $26,362 | $10,116 | $11,945 | $10,051 | $10,116 | |
| Subtotal Spent on Operations | $3,377 | $4,792 | $9,177 | $9,317 | $14,109 | $34,405 | $13,946 | $29,695 | $13,449 | $15,278 | $13,384 | $13,453 | |
| 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 | $3,377 | $4,792 | $9,177 | $9,317 | $14,109 | $34,405 | $13,946 | $29,695 | $13,449 | $15,278 | $13,384 | $13,453 | |
| Net Cash Flow | ($3,377) | $1,838 | ($2,535) | $3,809 | $30,811 | ($20,899) | $25,783 | ($16,202) | $4,120 | ($1,823) | $212 | $2,861 | |
| Cash Balance | $32,123 | $33,961 | $31,426 | $35,236 | $66,047 | $45,148 | $70,930 | $54,728 | $58,848 | $57,025 | $57,237 | $60,098 | |
| 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 | $35,500 | $32,123 | $33,961 | $31,426 | $35,236 | $66,047 | $45,148 | $70,930 | $54,728 | $58,848 | $57,025 | $57,237 | $60,098 |
| Accounts Receivable | $0 | $0 | $349 | $686 | $1,010 | $2,995 | $2,940 | $2,621 | $2,577 | $1,473 | $1,468 | $1,323 | $1,473 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $35,500 | $32,123 | $34,310 | $32,113 | $36,246 | $69,042 | $48,087 | $73,551 | $57,305 | $60,321 | $58,493 | $58,559 | $61,571 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Accumulated Depreciation | $0 | $66 | $132 | $198 | $264 | $330 | $396 | $462 | $528 | $594 | $660 | $726 | $792 |
| Total Long-term Assets | $0 | ($66) | ($132) | ($198) | ($264) | ($330) | ($396) | ($462) | ($528) | ($594) | ($660) | ($726) | ($792) |
| Total Assets | $35,500 | $32,057 | $34,178 | $31,915 | $35,982 | $68,712 | $47,691 | $73,089 | $56,777 | $59,727 | $57,833 | $57,833 | $60,779 |
| 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 | $1,264 | $5,649 | $5,649 | $9,716 | $30,736 | $9,716 | $26,027 | $9,716 | $11,610 | $9,716 | $9,716 | $11,609 |
| 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 | $1,264 | $5,649 | $5,649 | $9,716 | $30,736 | $9,716 | $26,027 | $9,716 | $11,610 | $9,716 | $9,716 | $11,609 |
| Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Liabilities | $0 | $1,264 | $5,649 | $5,649 | $9,716 | $30,736 | $9,716 | $26,027 | $9,716 | $11,610 | $9,716 | $9,716 | $11,609 |
| Paid-in Capital | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 |
| Retained Earnings | ($29,500) | ($29,500) | ($29,500) | ($29,500) | ($29,500) | ($29,500) | ($29,500) | ($29,500) | ($29,500) | ($29,500) | ($29,500) | ($29,500) | ($29,500) |
| Earnings | $0 | ($4,707) | ($6,971) | ($9,234) | ($9,234) | $2,475 | $2,475 | $11,561 | $11,561 | $12,617 | $12,617 | $12,617 | $13,670 |
| Total Capital | $35,500 | $30,793 | $28,529 | $26,266 | $26,266 | $37,975 | $37,975 | $47,061 | $47,061 | $48,117 | $48,117 | $48,117 | $49,170 |
| Total Liabilities and Capital | $35,500 | $32,057 | $34,178 | $31,915 | $35,982 | $68,712 | $47,691 | $73,089 | $56,777 | $59,727 | $57,833 | $57,833 | $60,779 |
| Net Worth | $35,500 | $30,793 | $28,529 | $26,266 | $26,266 | $37,975 | $37,975 | $47,061 | $47,061 | $48,117 | $48,117 | $48,117 | $49,170 |
By 
