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Southwest Veterinary Clinic
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 | |||||||||||||
| Services | 0% | $15,000 | $20,000 | $23,000 | $26,000 | $30,000 | $34,000 | $36,000 | $40,000 | $44,000 | $46,000 | $50,000 | $53,000 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Sales | $15,000 | $20,000 | $23,000 | $26,000 | $30,000 | $34,000 | $36,000 | $40,000 | $44,000 | $46,000 | $50,000 | $53,000 | |
| 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 | |
| Services | $4,000 | $5,000 | $5,300 | $6,000 | $7,000 | $8,000 | $8,400 | $9,000 | $10,000 | $11,000 | $12,000 | $13,000 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $4,000 | $5,000 | $5,300 | $6,000 | $7,000 | $8,000 | $8,400 | $9,000 | $10,000 | $11,000 | $12,000 | $13,000 | |
| 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 | ||
| Edward Anderson | 0% | $3,800 | $3,800 | $3,800 | $3,800 | $3,800 | $3,800 | $3,800 | $3,800 | $3,800 | $3,800 | $3,800 | $3,800 |
| Michelle Johnson | 0% | $3,800 | $3,800 | $3,800 | $3,800 | $3,800 | $3,800 | $3,800 | $3,800 | $3,800 | $3,800 | $3,800 | $3,800 |
| Receptionist/Clerical | 0% | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
| Veterinary Assistants (2) | 0% | $4,400 | $4,400 | $4,400 | $4,400 | $4,400 | $4,400 | $4,400 | $4,400 | $4,400 | $4,400 | $4,400 | $4,400 |
| Total People | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | |
| Total Payroll | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | |
| 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 | $15,000 | $20,000 | $23,000 | $26,000 | $30,000 | $34,000 | $36,000 | $40,000 | $44,000 | $46,000 | $50,000 | $53,000 | |
| Direct Cost of Sales | $4,000 | $5,000 | $5,300 | $6,000 | $7,000 | $8,000 | $8,400 | $9,000 | $10,000 | $11,000 | $12,000 | $13,000 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $4,000 | $5,000 | $5,300 | $6,000 | $7,000 | $8,000 | $8,400 | $9,000 | $10,000 | $11,000 | $12,000 | $13,000 | |
| Gross Margin | $11,000 | $15,000 | $17,700 | $20,000 | $23,000 | $26,000 | $27,600 | $31,000 | $34,000 | $35,000 | $38,000 | $40,000 | |
| Gross Margin % | 73.33% | 75.00% | 76.96% | 76.92% | 76.67% | 76.47% | 76.67% | 77.50% | 77.27% | 76.09% | 76.00% | 75.47% | |
| Expenses | |||||||||||||
| Payroll | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | |
| Sales and Marketing and Other Expenses | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Depreciation | $952 | $952 | $952 | $952 | $952 | $952 | $952 | $952 | $952 | $952 | $952 | $952 | |
| Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| 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 | |
| Rent | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | |
| Payroll Taxes | 15% | $2,220 | $2,295 | $2,295 | $2,295 | $2,295 | $2,295 | $2,295 | $2,295 | $2,295 | $2,295 | $2,295 | $2,295 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $21,572 | $21,647 | $21,647 | $21,647 | $21,647 | $21,647 | $21,647 | $21,647 | $21,647 | $21,647 | $21,647 | $21,647 | |
| Profit Before Interest and Taxes | ($10,572) | ($6,647) | ($3,947) | ($1,647) | $1,353 | $4,353 | $5,953 | $9,353 | $12,353 | $13,353 | $16,353 | $18,353 | |
| EBITDA | ($9,620) | ($5,695) | ($2,995) | ($695) | $2,305 | $5,305 | $6,905 | $10,305 | $13,305 | $14,305 | $17,305 | $19,305 | |
| Interest Expense | $1,240 | $1,231 | $1,221 | $1,211 | $1,201 | $1,192 | $1,182 | $1,172 | $1,163 | $1,153 | $1,143 | $1,133 | |
| Taxes Incurred | ($3,544) | ($2,363) | ($1,550) | ($857) | $45 | $948 | $1,431 | $2,454 | $3,357 | $3,660 | $4,563 | $5,166 | |
| Net Profit | ($8,269) | ($5,514) | ($3,617) | ($2,001) | $106 | $2,213 | $3,340 | $5,727 | $7,833 | $8,540 | $10,647 | $12,054 | |
| Net Profit/Sales | -55.12% | -27.57% | -15.73% | -7.69% | 0.35% | 6.51% | 9.28% | 14.32% | 17.80% | 18.57% | 21.29% | 22.74% | |
| 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 | $15,000 | $20,000 | $23,000 | $26,000 | $30,000 | $34,000 | $36,000 | $40,000 | $44,000 | $46,000 | $50,000 | $53,000 | |
| Subtotal Cash from Operations | $15,000 | $20,000 | $23,000 | $26,000 | $30,000 | $34,000 | $36,000 | $40,000 | $44,000 | $46,000 | $50,000 | $53,000 | |
| 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 | $15,000 | $20,000 | $23,000 | $26,000 | $30,000 | $34,000 | $36,000 | $40,000 | $44,000 | $46,000 | $50,000 | $53,000 | |
| 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 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | |
| Bill Payments | $277 | $8,391 | $10,599 | $11,712 | $13,112 | $15,005 | $16,864 | $17,762 | $19,385 | $21,258 | $22,571 | $24,454 | |
| Subtotal Spent on Operations | $14,277 | $22,391 | $24,599 | $25,712 | $27,112 | $29,005 | $30,864 | $31,762 | $33,385 | $35,258 | $36,571 | $38,454 | |
| 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 | $1,166 | $1,166 | $1,166 | $1,166 | $1,166 | $1,166 | $1,166 | $1,166 | $1,166 | $1,166 | $1,166 | $1,166 | |
| 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 | $15,443 | $23,557 | $25,765 | $26,878 | $28,278 | $30,171 | $32,030 | $32,928 | $34,551 | $36,424 | $37,737 | $39,620 | |
| Net Cash Flow | ($443) | ($3,557) | ($2,765) | ($878) | $1,722 | $3,829 | $3,970 | $7,072 | $9,449 | $9,576 | $12,263 | $13,380 | |
| Cash Balance | $24,557 | $20,999 | $18,234 | $17,357 | $19,079 | $22,908 | $26,878 | $33,950 | $43,399 | $52,975 | $65,238 | $78,618 | |
| 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 | $25,000 | $24,557 | $20,999 | $18,234 | $17,357 | $19,079 | $22,908 | $26,878 | $33,950 | $43,399 | $52,975 | $65,238 | $78,618 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $25,000 | $24,557 | $20,999 | $18,234 | $17,357 | $19,079 | $22,908 | $26,878 | $33,950 | $43,399 | $52,975 | $65,238 | $78,618 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $110,000 | $110,000 | $110,000 | $110,000 | $110,000 | $110,000 | $110,000 | $110,000 | $110,000 | $110,000 | $110,000 | $110,000 | $110,000 |
| Accumulated Depreciation | $0 | $952 | $1,904 | $2,856 | $3,808 | $4,760 | $5,712 | $6,664 | $7,616 | $8,568 | $9,520 | $10,472 | $11,424 |
| Total Long-term Assets | $110,000 | $109,048 | $108,096 | $107,144 | $106,192 | $105,240 | $104,288 | $103,336 | $102,384 | $101,432 | $100,480 | $99,528 | $98,576 |
| Total Assets | $135,000 | $133,605 | $129,095 | $125,378 | $123,549 | $124,319 | $127,196 | $130,214 | $136,334 | $144,831 | $153,455 | $164,766 | $177,194 |
| 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 | $8,039 | $10,210 | $11,277 | $12,614 | $14,444 | $16,274 | $17,118 | $18,677 | $20,508 | $21,758 | $23,588 | $25,128 |
| 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 | $8,039 | $10,210 | $11,277 | $12,614 | $14,444 | $16,274 | $17,118 | $18,677 | $20,508 | $21,758 | $23,588 | $25,128 |
| Long-term Liabilities | $150,000 | $148,834 | $147,668 | $146,502 | $145,336 | $144,170 | $143,004 | $141,838 | $140,672 | $139,506 | $138,340 | $137,174 | $136,008 |
| Total Liabilities | $150,000 | $156,873 | $157,878 | $157,779 | $157,950 | $158,614 | $159,278 | $158,956 | $159,349 | $160,014 | $160,098 | $160,762 | $161,136 |
| Paid-in Capital | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 |
| Retained Earnings | ($95,000) | ($95,000) | ($95,000) | ($95,000) | ($95,000) | ($95,000) | ($95,000) | ($95,000) | ($95,000) | ($95,000) | ($95,000) | ($95,000) | ($95,000) |
| Earnings | $0 | ($8,269) | ($13,783) | ($17,400) | ($19,401) | ($19,295) | ($17,082) | ($13,742) | ($8,016) | ($183) | $8,358 | $19,005 | $31,058 |
| Total Capital | ($15,000) | ($23,269) | ($28,783) | ($32,400) | ($34,401) | ($34,295) | ($32,082) | ($28,742) | ($23,016) | ($15,183) | ($6,642) | $4,005 | $16,058 |
| Total Liabilities and Capital | $135,000 | $133,605 | $129,095 | $125,378 | $123,549 | $124,319 | $127,196 | $130,214 | $136,334 | $144,831 | $153,455 | $164,766 | $177,194 |
| Net Worth | ($15,000) | ($23,269) | ($28,783) | ($32,400) | ($34,401) | ($34,295) | ($32,082) | ($28,742) | ($23,016) | ($15,183) | ($6,642) | $4,005 | $16,058 |