Hang Toes Surfing
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 | |||||||||||||
Boardshorts | 0% | $18,760 | $18,760 | $18,760 | $18,760 | $18,760 | $38,960 | $38,960 | $40,000 | $22,640 | $21,200 | $14,480 | $14,480 |
Bikinis | 0% | $9,600 | $9,600 | $9,600 | $9,600 | $9,600 | $24,960 | $24,960 | $25,000 | $23,950 | $8,160 | $8,880 | $8,880 |
Surfboards | 0% | $3,540 | $3,540 | $3,540 | $3,540 | $3,540 | $11,400 | $11,400 | $12,000 | $13,800 | $8,160 | $11,000 | $11,000 |
Hats & Beanies | 0% | $5,580 | $5,580 | $5,580 | $5,580 | $5,580 | $11,400 | $11,400 | $12,000 | $10,680 | $4,560 | $6,960 | $6,960 |
T-Shirts | 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 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Sales | $47,480 | $47,480 | $47,480 | $47,480 | $47,480 | $96,720 | $96,720 | $99,000 | $81,070 | $52,080 | $51,320 | $51,320 | |
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 | |
Freight | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | |
Processing | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | |
Subtotal Direct Cost of Sales | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 |
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 | ||
CEO | 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 |
Vice President | 0% | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 |
Total People | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Total Payroll | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 |
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 | $47,480 | $47,480 | $47,480 | $47,480 | $47,480 | $96,720 | $96,720 | $99,000 | $81,070 | $52,080 | $51,320 | $51,320 | |
Direct Cost of Sales | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | |
Other Costs of Sales | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | |
Total Cost of Sales | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
Gross Margin | $22,480 | $22,480 | $22,480 | $22,480 | $22,480 | $71,720 | $71,720 | $74,000 | $56,070 | $27,080 | $26,320 | $26,320 | |
Gross Margin % | 47.35% | 47.35% | 47.35% | 47.35% | 47.35% | 74.15% | 74.15% | 74.75% | 69.16% | 52.00% | 51.29% | 51.29% | |
Expenses | |||||||||||||
Payroll | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | |
Marketing/Promotion | $10,000 | $13,440 | $9,840 | $7,920 | $13,200 | $5,000 | $15,840 | $12,000 | $15,840 | $22,880 | $18,240 | $18,720 | |
Depreciation | $640 | $1,270 | $3,594 | $10,000 | $1,900 | $1,900 | $1,200 | $3,000 | $1,690 | $14,000 | $2,740 | $1,480 | |
Rent | $1,375 | $1,375 | $1,375 | $1,375 | $1,375 | $1,375 | $1,375 | $1,375 | $1,375 | $1,375 | $1,375 | $1,375 | |
Office utility, supplies | $4,675 | $3,578 | $3,446 | $3,696 | $4,238 | $4,964 | $4,634 | $5,088 | $6,020 | $4,436 | $5,822 | $5,426 | |
Insurance | 15% | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $29,190 | $32,163 | $30,755 | $35,491 | $33,213 | $25,739 | $35,549 | $33,963 | $37,425 | $55,191 | $40,677 | $39,501 | |
Profit Before Interest and Taxes | ($6,710) | ($9,683) | ($8,275) | ($13,011) | ($10,733) | $45,981 | $36,171 | $40,037 | $18,645 | ($28,111) | ($14,357) | ($13,181) | |
EBITDA | ($6,070) | ($8,413) | ($4,681) | ($3,011) | ($8,833) | $47,881 | $37,371 | $43,037 | $20,335 | ($14,111) | ($11,617) | ($11,701) | |
Interest Expense | $998 | $1,026 | $1,010 | $1,069 | $977 | $961 | $886 | $869 | $853 | $837 | $820 | $804 | |
Taxes Incurred | ($2,312) | ($3,213) | ($2,785) | ($4,224) | ($3,513) | $13,506 | $10,586 | $11,750 | $5,338 | ($8,684) | ($4,553) | ($4,195) | |
Net Profit | ($5,396) | ($7,496) | ($6,499) | ($9,856) | ($8,197) | $31,514 | $24,700 | $27,417 | $12,454 | ($20,263) | ($10,624) | ($9,789) | |
Net Profit/Sales | -11.36% | -15.79% | -13.69% | -20.76% | -17.26% | 32.58% | 25.54% | 27.69% | 15.36% | -38.91% | -20.70% | -19.08% |
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 | $35,610 | $35,610 | $35,610 | $35,610 | $35,610 | $72,540 | $72,540 | $74,250 | $60,803 | $39,060 | $38,490 | $38,490 | |
Cash from Receivables | $0 | $396 | $11,870 | $11,870 | $11,870 | $11,870 | $12,280 | $24,180 | $24,199 | $24,601 | $20,026 | $13,014 | |
Subtotal Cash from Operations | $35,610 | $36,006 | $47,480 | $47,480 | $47,480 | $84,410 | $84,820 | $98,430 | $85,002 | $63,661 | $58,516 | $51,504 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 6.00% | $2,849 | $2,849 | $2,849 | $2,849 | $2,849 | $5,803 | $5,803 | $5,940 | $4,864 | $3,125 | $3,079 | $3,079 |
New Current Borrowing | $1,696 | $5,376 | $0 | $9,000 | $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 | $40,155 | $44,230 | $50,329 | $59,329 | $50,329 | $90,213 | $90,624 | $104,370 | $89,866 | $66,785 | $61,595 | $54,583 | |
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 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | |
Bill Payments | $50,425 | $71,185 | $27,696 | $69,184 | $20,050 | $28,195 | $82,456 | $44,846 | $87,427 | $39,140 | $32,472 | $78,118 | |
Subtotal Spent on Operations | $57,925 | $78,685 | $35,196 | $76,684 | $27,550 | $35,695 | $89,956 | $52,346 | $94,927 | $46,640 | $39,972 | $85,618 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $2,849 | $2,849 | $2,849 | $2,849 | $2,849 | $5,803 | $5,803 | $5,940 | $4,864 | $3,125 | $3,079 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $9,000 | $0 | $7,072 | $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 | $1,960 | $1,960 | $1,960 | $1,960 | $1,960 | $1,960 | $1,960 | $1,960 | $1,960 | $1,960 | $1,960 | $1,960 | |
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 | $59,885 | $83,493 | $40,005 | $81,493 | $41,359 | $40,504 | $104,792 | $60,109 | $102,827 | $53,464 | $45,057 | $90,658 | |
Net Cash Flow | ($19,730) | ($39,263) | $10,324 | ($22,164) | $8,970 | $49,710 | ($14,168) | $44,261 | ($12,962) | $13,322 | $16,538 | ($36,075) | |
Cash Balance | $55,270 | $16,007 | $26,331 | $4,167 | $13,137 | $62,847 | $48,678 | $92,939 | $79,978 | $93,299 | $109,837 | $73,763 |
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 | $75,000 | $55,270 | $16,007 | $26,331 | $4,167 | $13,137 | $62,847 | $48,678 | $92,939 | $79,978 | $93,299 | $109,837 | $73,763 |
Accounts Receivable | $0 | $11,870 | $23,344 | $23,344 | $23,344 | $23,344 | $35,654 | $47,554 | $48,124 | $44,193 | $32,612 | $25,416 | $25,232 |
Inventory | $48,000 | $76,000 | $56,000 | $84,000 | $64,000 | $44,000 | $72,000 | $52,000 | $80,000 | $60,000 | $40,000 | $68,000 | $48,000 |
Other Current Assets | $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 |
Total Current Assets | $173,000 | $193,140 | $145,352 | $183,676 | $141,512 | $130,481 | $220,501 | $198,232 | $271,063 | $234,170 | $215,911 | $253,253 | $196,995 |
Long-term Assets | |||||||||||||
Long-term Assets | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 |
Accumulated Depreciation | $0 | $640 | $1,910 | $5,504 | $15,504 | $17,404 | $19,304 | $20,504 | $23,504 | $25,194 | $39,194 | $41,934 | $43,414 |
Total Long-term Assets | $100,000 | $99,360 | $98,090 | $94,496 | $84,496 | $82,596 | $80,696 | $79,496 | $76,496 | $74,806 | $60,806 | $58,066 | $56,586 |
Total Assets | $273,000 | $292,500 | $243,442 | $278,172 | $226,008 | $213,077 | $301,197 | $277,728 | $347,559 | $308,976 | $276,717 | $311,319 | $253,581 |
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 | $48,000 | $70,311 | $25,333 | $68,523 | $19,175 | $25,401 | $81,012 | $41,876 | $86,113 | $38,111 | $29,815 | $77,047 | $31,059 |
Current Borrowing | $0 | $1,696 | $7,072 | $7,072 | $16,072 | $7,072 | $7,072 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $2,849 | $2,849 | $2,849 | $2,849 | $2,849 | $5,803 | $5,803 | $5,940 | $4,864 | $3,125 | $3,079 | $3,079 |
Subtotal Current Liabilities | $48,000 | $74,856 | $35,254 | $78,443 | $38,095 | $35,322 | $93,888 | $47,679 | $92,053 | $42,976 | $32,940 | $80,127 | $34,138 |
Long-term Liabilities | $120,000 | $118,040 | $116,080 | $114,120 | $112,160 | $110,200 | $108,240 | $106,280 | $104,320 | $102,359 | $100,399 | $98,439 | $96,479 |
Total Liabilities | $168,000 | $192,896 | $151,334 | $192,563 | $150,255 | $145,522 | $202,127 | $153,959 | $196,373 | $145,335 | $133,339 | $178,566 | $130,617 |
Paid-in Capital | $180,625 | $180,625 | $180,625 | $180,625 | $180,625 | $180,625 | $180,625 | $180,625 | $180,625 | $180,625 | $180,625 | $180,625 | $180,625 |
Retained Earnings | ($75,625) | ($75,625) | ($75,625) | ($75,625) | ($75,625) | ($75,625) | ($75,625) | ($75,625) | ($75,625) | ($75,625) | ($75,625) | ($75,625) | ($75,625) |
Earnings | $0 | ($5,396) | ($12,892) | ($19,392) | ($29,247) | ($37,444) | ($5,930) | $18,769 | $46,187 | $58,641 | $38,378 | $27,754 | $17,964 |
Total Capital | $105,000 | $99,604 | $92,108 | $85,608 | $75,753 | $67,556 | $99,070 | $123,769 | $151,187 | $163,641 | $143,378 | $132,754 | $122,964 |
Total Liabilities and Capital | $273,000 | $292,500 | $243,442 | $278,172 | $226,008 | $213,077 | $301,197 | $277,728 | $347,559 | $308,976 | $276,717 | $311,319 | $253,581 |
Net Worth | $105,000 | $99,604 | $92,108 | $85,608 | $75,753 | $67,556 | $99,070 | $123,769 | $151,187 | $163,641 | $143,378 | $132,754 | $122,964 |
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 |