University Telephones
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 | |||||||||||||
| Land Line Phones | 0% | $2,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
| Cell Phones | 0% | $5,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| Cell Phone Accessories | 0% | $4,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
| Cell Service Plans | 0% | $10,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 |
| Total Sales | $21,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | |
| 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 | |
| Land Line Phones | $500 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | |
| Cell Phones | $1,200 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | |
| Cell Phone Accessories | $1,000 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | |
| Cell Service Plans | $7,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | |
| Subtotal Direct Cost of Sales | $9,700 | $13,600 | $13,600 | $13,600 | $13,600 | $13,600 | $13,600 | $13,600 | $13,600 | $13,600 | $13,600 | $13,600 | |
| 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 | ||
| Robert Conway | 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 |
| Store Staff (4) | 0% | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total People | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | |
| Total Payroll | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | |
| 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 | $21,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | |
| Direct Cost of Sales | $9,700 | $13,600 | $13,600 | $13,600 | $13,600 | $13,600 | $13,600 | $13,600 | $13,600 | $13,600 | $13,600 | $13,600 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $9,700 | $13,600 | $13,600 | $13,600 | $13,600 | $13,600 | $13,600 | $13,600 | $13,600 | $13,600 | $13,600 | $13,600 | |
| Gross Margin | $11,300 | $15,400 | $15,400 | $15,400 | $15,400 | $15,400 | $15,400 | $15,400 | $15,400 | $15,400 | $15,400 | $15,400 | |
| Gross Margin % | 53.81% | 53.10% | 53.10% | 53.10% | 53.10% | 53.10% | 53.10% | 53.10% | 53.10% | 53.10% | 53.10% | 53.10% | |
| Expenses | |||||||||||||
| Payroll | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | |
| Sales and Marketing and Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Depreciation | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Utilities | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
| Insurance | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| 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% | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $15,050 | $15,050 | $15,050 | $15,050 | $15,050 | $15,050 | $15,050 | $15,050 | $15,050 | $15,050 | $15,050 | $15,050 | |
| Profit Before Interest and Taxes | ($3,750) | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | |
| EBITDA | ($3,550) | $550 | $550 | $550 | $550 | $550 | $550 | $550 | $550 | $550 | $550 | $550 | |
| Interest Expense | $409 | $402 | $394 | $387 | $379 | $372 | $364 | $357 | $349 | $342 | $334 | $327 | |
| Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Net Profit | ($4,159) | ($52) | ($44) | ($37) | ($29) | ($22) | ($14) | ($7) | $1 | $8 | $16 | $23 | |
| Net Profit/Sales | -19.81% | -0.18% | -0.15% | -0.13% | -0.10% | -0.07% | -0.05% | -0.02% | 0.00% | 0.03% | 0.05% | 0.08% | |
| 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 | $21,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | |
| Subtotal Cash from Operations | $21,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | |
| 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 | $21,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | $29,000 | |
| 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 | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | $11,000 | |
| Bill Payments | $142 | $4,534 | $12,689 | $17,844 | $17,836 | $17,829 | $17,821 | $17,814 | $17,806 | $17,799 | $17,791 | $17,784 | |
| Subtotal Spent on Operations | $11,142 | $15,534 | $23,689 | $28,844 | $28,836 | $28,829 | $28,821 | $28,814 | $28,806 | $28,799 | $28,791 | $28,784 | |
| 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 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | |
| 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 | $12,042 | $16,434 | $24,589 | $29,744 | $29,736 | $29,729 | $29,721 | $29,714 | $29,706 | $29,699 | $29,691 | $29,684 | |
| Net Cash Flow | $8,958 | $12,566 | $4,411 | ($744) | ($736) | ($729) | ($721) | ($714) | ($706) | ($699) | ($691) | ($684) | |
| Cash Balance | $10,958 | $23,524 | $27,934 | $27,190 | $26,454 | $25,725 | $25,004 | $24,290 | $23,583 | $22,884 | $22,193 | $21,509 | |
| 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 | $2,000 | $10,958 | $23,524 | $27,934 | $27,190 | $26,454 | $25,725 | $25,004 | $24,290 | $23,583 | $22,884 | $22,193 | $21,509 |
| Inventory | $30,000 | $20,300 | $14,960 | $14,960 | $14,960 | $14,960 | $14,960 | $14,960 | $14,960 | $14,960 | $14,960 | $14,960 | $14,960 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $32,000 | $31,258 | $38,484 | $42,894 | $42,150 | $41,414 | $40,685 | $39,964 | $39,250 | $38,543 | $37,844 | $37,153 | $36,469 |
| Long-term Assets | |||||||||||||
| Long-term 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 |
| Accumulated Depreciation | $0 | $200 | $400 | $600 | $800 | $1,000 | $1,200 | $1,400 | $1,600 | $1,800 | $2,000 | $2,200 | $2,400 |
| Total Long-term Assets | $50,000 | $49,800 | $49,600 | $49,400 | $49,200 | $49,000 | $48,800 | $48,600 | $48,400 | $48,200 | $48,000 | $47,800 | $47,600 |
| Total Assets | $82,000 | $81,058 | $88,084 | $92,294 | $91,350 | $90,414 | $89,485 | $88,564 | $87,650 | $86,743 | $85,844 | $84,953 | $84,069 |
| 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 | $4,117 | $12,095 | $17,249 | $17,242 | $17,235 | $17,228 | $17,220 | $17,213 | $17,206 | $17,199 | $17,191 | $17,184 |
| 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 | $4,117 | $12,095 | $17,249 | $17,242 | $17,235 | $17,228 | $17,220 | $17,213 | $17,206 | $17,199 | $17,191 | $17,184 |
| Long-term Liabilities | $50,000 | $49,100 | $48,200 | $47,300 | $46,400 | $45,500 | $44,600 | $43,700 | $42,800 | $41,900 | $41,000 | $40,100 | $39,200 |
| Total Liabilities | $50,000 | $53,217 | $60,295 | $64,549 | $63,642 | $62,735 | $61,828 | $60,920 | $60,013 | $59,106 | $58,199 | $57,291 | $56,384 |
| Paid-in Capital | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 |
| Retained Earnings | ($8,000) | ($8,000) | ($8,000) | ($8,000) | ($8,000) | ($8,000) | ($8,000) | ($8,000) | ($8,000) | ($8,000) | ($8,000) | ($8,000) | ($8,000) |
| Earnings | $0 | ($4,159) | ($4,211) | ($4,255) | ($4,292) | ($4,321) | ($4,343) | ($4,357) | ($4,363) | ($4,363) | ($4,354) | ($4,338) | ($4,315) |
| Total Capital | $32,000 | $27,841 | $27,789 | $27,745 | $27,708 | $27,679 | $27,658 | $27,643 | $27,637 | $27,637 | $27,646 | $27,662 | $27,685 |
| Total Liabilities and Capital | $82,000 | $81,058 | $88,084 | $92,294 | $91,350 | $90,414 | $89,485 | $88,564 | $87,650 | $86,743 | $85,844 | $84,953 | $84,069 |
| Net Worth | $32,000 | $27,841 | $27,789 | $27,745 | $27,708 | $27,679 | $27,658 | $27,643 | $27,637 | $27,638 | $27,646 | $27,662 | $27,685 |
By 
