Tropical Tan
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 | |||||||||||||
| Tanning Session | 0% | $32,400 | $34,224 | $38,928 | $42,800 | $38,032 | $31,760 | $28,848 | $25,520 | $26,672 | $27,376 | $29,296 | $31,216 |
| Lotions/swimwear/sunglasses/etc. | 0% | $500 | $612 | $675 | $702 | $621 | $603 | $585 | $549 | $507 | $603 | $633 | $684 |
| Total Sales | $32,900 | $34,836 | $39,603 | $43,502 | $38,653 | $32,363 | $29,433 | $26,069 | $27,179 | $27,979 | $29,929 | $31,900 | |
| 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 | |
| Lotions/swimwear/sunglasses/etc. | $250 | $250 | $300 | $300 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $250 | $250 | $300 | $300 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
| 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 | ||
| Part-time Help | 0% | $645 | $645 | $645 | $645 | $645 | $645 | $645 | $645 | $645 | $645 | $645 | $645 |
| Part-time Help | 0% | $645 | $645 | $645 | $645 | $645 | $645 | $645 | $645 | $645 | $645 | $645 | $645 |
| Part-time Help | 0% | $0 | $0 | $645 | $645 | $645 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Owners | 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 |
| Total People | 3 | 3 | 4 | 4 | 4 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | |
| Total Payroll | $5,290 | $5,290 | $5,935 | $5,935 | $5,935 | $5,290 | $5,290 | $5,290 | $5,290 | $5,290 | $5,290 | $5,290 | |
| 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 | $32,900 | $34,836 | $39,603 | $43,502 | $38,653 | $32,363 | $29,433 | $26,069 | $27,179 | $27,979 | $29,929 | $31,900 | |
| Direct Cost of Sales | $250 | $250 | $300 | $300 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
| Other Costs of Sales | $27,996 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $28,246 | $250 | $300 | $300 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
| Gross Margin | $4,654 | $34,586 | $39,303 | $43,202 | $38,403 | $32,113 | $29,183 | $25,819 | $26,929 | $27,729 | $29,679 | $31,650 | |
| Gross Margin % | 14.15% | 99.28% | 99.24% | 99.31% | 99.35% | 99.23% | 99.15% | 99.04% | 99.08% | 99.11% | 99.16% | 99.22% | |
| Expenses | |||||||||||||
| Payroll | $5,290 | $5,290 | $5,935 | $5,935 | $5,935 | $5,290 | $5,290 | $5,290 | $5,290 | $5,290 | $5,290 | $5,290 | |
| Sales and Marketing and Other Expenses | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | |
| Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Rent | $1,817 | $1,817 | $1,817 | $1,817 | $1,817 | $1,817 | $1,817 | $1,817 | $1,817 | $1,817 | $1,817 | $1,817 | |
| Utilities | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | |
| Insurance | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
| Payroll Taxes | 15% | $794 | $794 | $890 | $890 | $890 | $794 | $794 | $794 | $794 | $794 | $794 | $794 |
| Loan Repayment | $996 | $996 | $996 | $996 | $996 | $996 | $996 | $996 | $996 | $996 | $996 | $996 | |
| Janitorial Service | 15% | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 |
| Other | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Total Operating Expenses | $10,147 | $10,147 | $10,888 | $10,888 | $10,888 | $10,147 | $10,147 | $10,147 | $10,147 | $10,147 | $10,147 | $10,147 | |
| Profit Before Interest and Taxes | ($5,493) | $24,439 | $28,415 | $32,314 | $27,515 | $21,966 | $19,036 | $15,672 | $16,782 | $17,582 | $19,532 | $21,503 | |
| EBITDA | ($5,493) | $24,439 | $28,415 | $32,314 | $27,515 | $21,966 | $19,036 | $15,672 | $16,782 | $17,582 | $19,532 | $21,503 | |
| Interest Expense | $162 | $157 | $152 | $148 | $143 | $138 | $133 | $128 | $124 | $119 | $114 | $109 | |
| Taxes Incurred | ($1,696) | $7,285 | $8,479 | $9,650 | $8,212 | $6,549 | $5,671 | $4,663 | $4,998 | $5,239 | $5,826 | $6,418 | |
| Net Profit | ($3,958) | $16,998 | $19,784 | $22,516 | $19,160 | $15,280 | $13,232 | $10,881 | $11,661 | $12,224 | $13,593 | $14,976 | |
| Net Profit/Sales | -12.03% | 48.79% | 49.96% | 51.76% | 49.57% | 47.21% | 44.96% | 41.74% | 42.91% | 43.69% | 45.42% | 46.95% | |
| 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 | $32,900 | $34,836 | $39,603 | $43,502 | $38,653 | $32,363 | $29,433 | $26,069 | $27,179 | $27,979 | $29,929 | $31,900 | |
| Subtotal Cash from Operations | $32,900 | $34,836 | $39,603 | $43,502 | $38,653 | $32,363 | $29,433 | $26,069 | $27,179 | $27,979 | $29,929 | $31,900 | |
| 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 | $32,900 | $34,836 | $39,603 | $43,502 | $38,653 | $32,363 | $29,433 | $26,069 | $27,179 | $27,979 | $29,929 | $31,900 | |
| 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 | $5,290 | $5,290 | $5,935 | $5,935 | $5,935 | $5,290 | $5,290 | $5,290 | $5,290 | $5,290 | $5,290 | $5,290 | |
| Bill Payments | $1,927 | $31,651 | $12,341 | $13,656 | $15,669 | $13,249 | $11,514 | $10,660 | $10,626 | $9,986 | $10,234 | $10,849 | |
| Subtotal Spent on Operations | $7,217 | $36,941 | $18,276 | $19,591 | $21,604 | $18,539 | $16,804 | $15,950 | $15,916 | $15,276 | $15,524 | $16,139 | |
| 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 | $575 | $575 | $575 | $575 | $575 | $575 | $575 | $575 | $575 | $575 | $575 | $575 | |
| 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 | $7,792 | $37,516 | $18,851 | $20,166 | $22,179 | $19,114 | $17,379 | $16,525 | $16,491 | $15,851 | $16,099 | $16,714 | |
| Net Cash Flow | $25,108 | ($2,680) | $20,752 | $23,335 | $16,474 | $13,249 | $12,054 | $9,544 | $10,688 | $12,128 | $13,830 | $15,186 | |
| Cash Balance | $54,441 | $51,761 | $72,512 | $95,848 | $112,322 | $125,571 | $137,625 | $147,169 | $157,857 | $169,985 | $183,815 | $199,001 | |
| 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 | $29,333 | $54,441 | $51,761 | $72,512 | $95,848 | $112,322 | $125,571 | $137,625 | $147,169 | $157,857 | $169,985 | $183,815 | $199,001 |
| Inventory | $250 | $1,000 | $750 | $450 | $1,150 | $900 | $650 | $400 | $1,150 | $900 | $650 | $400 | $1,150 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $29,583 | $55,441 | $52,511 | $72,962 | $96,998 | $113,222 | $126,221 | $138,025 | $148,319 | $158,757 | $170,635 | $184,215 | $200,151 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 |
| Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Long-term Assets | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 |
| Total Assets | $56,583 | $82,441 | $79,511 | $99,962 | $123,998 | $140,222 | $153,221 | $165,025 | $175,319 | $185,757 | $197,635 | $211,215 | $227,151 |
| 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 | $850 | $31,241 | $11,888 | $13,131 | $15,226 | $12,864 | $11,158 | $10,305 | $10,293 | $9,645 | $9,874 | $10,436 | $11,971 |
| Current Borrowing | $0 | ($575) | ($1,150) | ($1,725) | ($2,300) | ($2,875) | ($3,450) | ($4,025) | ($4,600) | ($5,175) | ($5,750) | ($6,325) | ($6,900) |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $850 | $30,666 | $10,738 | $11,406 | $12,926 | $9,989 | $7,708 | $6,280 | $5,693 | $4,470 | $4,124 | $4,111 | $5,071 |
| Long-term Liabilities | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 |
| Total Liabilities | $20,850 | $50,666 | $30,738 | $31,406 | $32,926 | $29,989 | $27,708 | $26,280 | $25,693 | $24,470 | $24,124 | $24,111 | $25,071 |
| 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 | ($29,267) | ($29,267) | ($29,267) | ($29,267) | ($29,267) | ($29,267) | ($29,267) | ($29,267) | ($29,267) | ($29,267) | ($29,267) | ($29,267) | ($29,267) |
| Earnings | $0 | ($3,958) | $13,039 | $32,823 | $55,339 | $74,500 | $89,779 | $103,012 | $113,892 | $125,554 | $137,778 | $151,371 | $166,347 |
| Total Capital | $35,733 | $31,775 | $48,772 | $68,556 | $91,072 | $110,233 | $125,512 | $138,745 | $149,625 | $161,287 | $173,511 | $187,104 | $202,080 |
| Total Liabilities and Capital | $56,583 | $82,441 | $79,511 | $99,962 | $123,998 | $140,222 | $153,221 | $165,025 | $175,319 | $185,757 | $197,635 | $211,215 | $227,151 |
| Net Worth | $35,733 | $31,775 | $48,772 | $68,556 | $91,072 | $110,233 | $125,512 | $138,745 | $149,625 | $161,287 | $173,511 | $187,104 | $202,080 |
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