Flyleaf Books
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 | |||||||||||||
| Fiction Books | 0% | $8,000 | $9,200 | $10,580 | $12,167 | $12,836 | $13,542 | $14,287 | $15,073 | $15,902 | $16,776 | $17,699 | $18,230 |
| Sci-Fi Books | 0% | $9,000 | $10,350 | $11,903 | $13,688 | $14,441 | $15,235 | $16,073 | $16,957 | $17,890 | $18,873 | $19,911 | $20,509 |
| Magazines/newspapers | 0% | $7,000 | $8,050 | $9,258 | $10,646 | $11,232 | $11,849 | $12,501 | $13,189 | $13,914 | $14,679 | $15,487 | $15,951 |
| Children’s Books | 0% | $9,000 | $10,350 | $11,903 | $13,688 | $14,441 | $15,235 | $16,073 | $16,957 | $17,890 | $18,873 | $19,911 | $20,509 |
| Biography Books | 0% | $6,000 | $6,900 | $7,935 | $9,125 | $9,627 | $10,157 | $10,715 | $11,305 | $11,926 | $12,582 | $13,274 | $13,673 |
| Business Books | 0% | $5,500 | $6,325 | $7,274 | $8,365 | $8,825 | $9,310 | $9,822 | $10,363 | $10,932 | $11,534 | $12,168 | $12,533 |
| CD’s and Music | 0% | $9,000 | $10,350 | $11,903 | $13,688 | $14,441 | $15,235 | $16,073 | $16,957 | $17,890 | $18,873 | $19,911 | $20,509 |
| Other | 0% | $10,000 | $11,500 | $13,225 | $15,209 | $16,045 | $16,928 | $17,859 | $18,841 | $19,877 | $20,970 | $22,124 | $22,788 |
| Total Sales | $63,500 | $73,025 | $83,979 | $96,576 | $101,887 | $107,491 | $113,403 | $119,640 | $126,220 | $133,163 | $140,486 | $144,701 | |
| 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 | |
| Fiction Books | $6,160 | $7,084 | $8,147 | $9,369 | $9,884 | $10,427 | $11,001 | $11,606 | $12,244 | $12,918 | $13,628 | $14,037 | |
| Sci-Fi Books | $6,930 | $7,970 | $9,165 | $10,540 | $11,119 | $11,731 | $12,376 | $13,057 | $13,775 | $14,533 | $15,332 | $15,792 | |
| Magazines/newspapers | $5,390 | $6,199 | $7,128 | $8,198 | $8,648 | $9,124 | $9,626 | $10,155 | $10,714 | $11,303 | $11,925 | $12,282 | |
| Children’s Books | $6,930 | $7,970 | $9,165 | $10,540 | $11,119 | $11,731 | $12,376 | $13,057 | $13,775 | $14,533 | $15,332 | $15,792 | |
| Biography Books | $4,620 | $5,313 | $6,110 | $7,026 | $7,413 | $7,821 | $8,251 | $8,705 | $9,183 | $9,688 | $10,221 | $10,528 | |
| Business Books | $4,235 | $4,870 | $5,601 | $6,441 | $6,795 | $7,169 | $7,563 | $7,979 | $8,418 | $8,881 | $9,369 | $9,651 | |
| CD’s and Music | $6,930 | $7,970 | $9,165 | $10,540 | $11,119 | $11,731 | $12,376 | $13,057 | $13,775 | $14,533 | $15,332 | $15,792 | |
| Other | $7,700 | $8,855 | $10,183 | $11,711 | $12,355 | $13,034 | $13,751 | $14,508 | $15,305 | $16,147 | $17,035 | $17,546 | |
| Subtotal Direct Cost of Sales | $48,895 | $56,229 | $64,664 | $74,363 | $78,453 | $82,768 | $87,320 | $92,123 | $97,190 | $102,535 | $108,175 | $111,420 | |
| 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 | ||
| Mr. James Vinck | 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 |
| Mr. Todd Vinck | 0% | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 |
| Salesperson | 0% | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 |
| Salesperson | 0% | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 |
| Salesperson | 0% | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 |
| Salesperson | 0% | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 |
| Salesperson | 0% | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 | $850 |
| Total People | 7 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | |
| Total Payroll | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | |
| 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 | $63,500 | $73,025 | $83,979 | $96,576 | $101,887 | $107,491 | $113,403 | $119,640 | $126,220 | $133,163 | $140,486 | $144,701 | |
| Direct Cost of Sales | $48,895 | $56,229 | $64,664 | $74,363 | $78,453 | $82,768 | $87,320 | $92,123 | $97,190 | $102,535 | $108,175 | $111,420 | |
| Other Costs of Goods | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $48,895 | $56,229 | $64,664 | $74,363 | $78,453 | $82,768 | $87,320 | $92,123 | $97,190 | $102,535 | $108,175 | $111,420 | |
| Gross Margin | $14,605 | $16,796 | $19,315 | $22,212 | $23,434 | $24,723 | $26,083 | $27,517 | $29,031 | $30,627 | $32,312 | $33,281 | |
| Gross Margin % | 23.00% | 23.00% | 23.00% | 23.00% | 23.00% | 23.00% | 23.00% | 23.00% | 23.00% | 23.00% | 23.00% | 23.00% | |
| Expenses | |||||||||||||
| Payroll | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | |
| Sales and Marketing and Other Expenses | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | |
| Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Leased equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Rent | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | |
| Utilities | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
| Insurance | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | |
| Payroll Taxes | 15% | $1,830 | $1,388 | $1,388 | $1,388 | $1,388 | $1,388 | $1,388 | $1,388 | $1,388 | $1,388 | $1,388 | $1,388 |
| Other | $2,000 | $2,000 | $2,000 | $0 | $2,000 | $0 | $2,000 | $0 | $3,000 | $0 | $2,000 | $0 | |
| Total Operating Expenses | $21,980 | $21,538 | $21,538 | $19,538 | $21,538 | $19,538 | $21,538 | $19,538 | $22,538 | $19,538 | $21,538 | $19,538 | |
| Profit Before Interest and Taxes | ($7,375) | ($4,742) | ($2,222) | $2,675 | $1,897 | $5,185 | $4,545 | $7,980 | $6,493 | $11,090 | $10,774 | $13,744 | |
| EBITDA | ($7,375) | ($4,742) | ($2,222) | $2,675 | $1,897 | $5,185 | $4,545 | $7,980 | $6,493 | $11,090 | $10,774 | $13,744 | |
| Interest Expense | $750 | $1,167 | $1,167 | $1,167 | $1,167 | $1,167 | $1,167 | $1,167 | $1,208 | $1,208 | $1,208 | $1,208 | |
| Taxes Incurred | ($2,438) | ($1,773) | ($1,017) | $452 | $219 | $1,206 | $1,014 | $2,044 | $1,585 | $2,964 | $2,870 | $3,761 | |
| Net Profit | ($5,688) | ($4,136) | ($2,372) | $1,056 | $511 | $2,813 | $2,365 | $4,769 | $3,699 | $6,917 | $6,696 | $8,775 | |
| Net Profit/Sales | -8.96% | -5.66% | -2.82% | 1.09% | 0.50% | 2.62% | 2.09% | 3.99% | 2.93% | 5.19% | 4.77% | 6.06% | |
| 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 | $63,500 | $73,025 | $83,979 | $96,576 | $101,887 | $107,491 | $113,403 | $119,640 | $126,220 | $133,163 | $140,486 | $144,701 | |
| Subtotal Cash from Operations | $63,500 | $73,025 | $83,979 | $96,576 | $101,887 | $107,491 | $113,403 | $119,640 | $126,220 | $133,163 | $140,486 | $144,701 | |
| 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 | $5,000 | $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 | $50,000 | $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 | $50,000 | $0 | $0 | $0 | $0 | $0 | $0 | $4,000 | |
| Subtotal Cash Received | $63,500 | $123,025 | $83,979 | $96,576 | $151,887 | $107,491 | $113,403 | $119,640 | $131,220 | $133,163 | $140,486 | $148,701 | |
| 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 | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | $9,250 | |
| Bill Payments | $11,257 | $96,997 | $76,325 | $86,731 | $96,929 | $96,744 | $100,395 | $106,932 | $111,169 | $118,979 | $123,138 | $130,727 | |
| Subtotal Spent on Operations | $20,507 | $106,247 | $85,575 | $95,981 | $106,179 | $105,994 | $109,645 | $116,182 | $120,419 | $128,229 | $132,388 | $139,977 | |
| 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 | $20,507 | $106,247 | $85,575 | $95,981 | $106,179 | $105,994 | $109,645 | $116,182 | $120,419 | $128,229 | $132,388 | $139,977 | |
| Net Cash Flow | $42,993 | $16,778 | ($1,596) | $595 | $45,708 | $1,497 | $3,758 | $3,458 | $10,802 | $4,934 | $8,099 | $8,724 | |
| Cash Balance | $76,813 | $93,590 | $91,994 | $92,589 | $138,297 | $139,794 | $143,552 | $147,010 | $157,812 | $162,746 | $170,844 | $179,568 | |
| 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 | $33,820 | $76,813 | $93,590 | $91,994 | $92,589 | $138,297 | $139,794 | $143,552 | $147,010 | $157,812 | $162,746 | $170,844 | $179,568 |
| Inventory | $16,000 | $53,785 | $61,852 | $71,130 | $81,800 | $86,298 | $91,045 | $96,052 | $101,335 | $106,909 | $112,789 | $118,992 | $122,562 |
| Other Current Assets | $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 |
| Total Current Assets | $57,820 | $138,597 | $163,443 | $171,124 | $182,388 | $232,595 | $238,839 | $247,605 | $256,345 | $272,721 | $283,534 | $297,836 | $310,130 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $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 |
| Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Long-term Assets | $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 |
| Total Assets | $65,820 | $146,597 | $171,443 | $179,124 | $190,388 | $240,595 | $246,839 | $255,605 | $264,345 | $280,721 | $291,534 | $305,836 | $318,130 |
| 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 | $8,000 | $94,465 | $73,446 | $83,500 | $93,708 | $93,404 | $96,835 | $103,236 | $107,207 | $114,883 | $118,780 | $126,385 | $125,904 |
| Current Borrowing | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $20,000 | $20,000 | $20,000 | $20,000 |
| Other Current Liabilities | $10,000 | $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 Current Liabilities | $33,000 | $119,465 | $98,446 | $108,500 | $118,708 | $118,404 | $121,835 | $128,236 | $132,207 | $144,883 | $148,780 | $156,385 | $155,904 |
| Long-term Liabilities | $75,000 | $75,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 |
| Total Liabilities | $108,000 | $194,465 | $223,446 | $233,500 | $243,708 | $243,404 | $246,835 | $253,236 | $257,207 | $269,883 | $273,780 | $281,385 | $280,904 |
| Paid-in Capital | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $120,000 | $120,000 | $120,000 | $120,000 | $120,000 | $120,000 | $120,000 | $124,000 |
| Retained Earnings | ($112,180) | ($112,180) | ($112,180) | ($112,180) | ($112,180) | ($112,180) | ($112,180) | ($112,180) | ($112,180) | ($112,180) | ($112,180) | ($112,180) | ($112,180) |
| Earnings | $0 | ($5,688) | ($9,823) | ($12,196) | ($11,140) | ($10,629) | ($7,816) | ($5,451) | ($682) | $3,018 | $9,935 | $16,631 | $25,406 |
| Total Capital | ($42,180) | ($47,868) | ($52,003) | ($54,376) | ($53,320) | ($2,809) | $4 | $2,369 | $7,138 | $10,838 | $17,755 | $24,451 | $37,226 |
| Total Liabilities and Capital | $65,820 | $146,597 | $171,443 | $179,124 | $190,388 | $240,595 | $246,839 | $255,605 | $264,345 | $280,721 | $291,534 | $305,836 | $318,130 |
| Net Worth | ($42,180) | ($47,868) | ($52,003) | ($54,376) | ($53,320) | ($2,809) | $4 | $2,369 | $7,138 | $10,838 | $17,755 | $24,451 | $37,226 |
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