Passion Soles
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 | |||||||||||||
| Professionals | 0% | $0 | $3,245 | $4,114 | $5,678 | $6,545 | $6,985 | $7,454 | $7,945 | $8,569 | $9,956 | $11,454 | $12,457 |
| Housewives | 0% | $0 | $2,109 | $2,674 | $3,691 | $4,254 | $4,540 | $4,845 | $5,164 | $5,570 | $6,471 | $7,445 | $8,097 |
| Total Sales | $0 | $5,354 | $6,788 | $9,369 | $10,799 | $11,525 | $12,299 | $13,109 | $14,139 | $16,427 | $18,899 | $20,554 | |
| 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 | |
| Professionals | $0 | $1,298 | $1,646 | $2,271 | $2,618 | $2,794 | $2,982 | $3,178 | $3,428 | $3,982 | $4,582 | $4,983 | |
| Housewives | $0 | $844 | $1,070 | $1,476 | $1,702 | $1,816 | $1,938 | $2,066 | $2,228 | $2,589 | $2,978 | $3,239 | |
| Subtotal Direct Cost of Sales | $0 | $2,142 | $2,715 | $3,747 | $4,320 | $4,610 | $4,920 | $5,244 | $5,656 | $6,571 | $7,560 | $8,222 | |
| 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 | ||
| Holly | 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 |
| Full-time employee | 0% | $0 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 |
| Full-time employee | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,600 |
| Total People | 1 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 3 | |
| Total Payroll | $3,000 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $6,200 | |
| 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 | $0 | $5,354 | $6,788 | $9,369 | $10,799 | $11,525 | $12,299 | $13,109 | $14,139 | $16,427 | $18,899 | $20,554 | |
| Direct Cost of Sales | $0 | $2,142 | $2,715 | $3,747 | $4,320 | $4,610 | $4,920 | $5,244 | $5,656 | $6,571 | $7,560 | $8,222 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $0 | $2,142 | $2,715 | $3,747 | $4,320 | $4,610 | $4,920 | $5,244 | $5,656 | $6,571 | $7,560 | $8,222 | |
| Gross Margin | $0 | $3,213 | $4,073 | $5,621 | $6,480 | $6,915 | $7,379 | $7,866 | $8,483 | $9,856 | $11,339 | $12,332 | |
| Gross Margin % | 0.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | |
| Expenses | |||||||||||||
| Payroll | $3,000 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $6,200 | |
| Sales and Marketing and Other Expenses | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
| Depreciation | $88 | $88 | $88 | $88 | $88 | $88 | $88 | $88 | $88 | $88 | $88 | $88 | |
| Shoe Display Inventory | $5,000 | $0 | $0 | $0 | $2,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Utilities | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
| Insurance | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
| Rent | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | |
| Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $10,238 | $6,838 | $6,838 | $6,838 | $8,838 | $6,838 | $6,838 | $6,838 | $6,838 | $6,838 | $6,838 | $8,438 | |
| Profit Before Interest and Taxes | ($10,238) | ($3,625) | ($2,765) | ($1,217) | ($2,358) | $77 | $541 | $1,028 | $1,645 | $3,018 | $4,501 | $3,894 | |
| EBITDA | ($10,150) | ($3,537) | ($2,677) | ($1,129) | ($2,270) | $165 | $629 | $1,116 | $1,733 | $3,106 | $4,589 | $3,982 | |
| Interest Expense | $0 | $0 | $0 | $0 | $0 | $42 | $40 | $38 | $36 | $35 | $33 | $31 | |
| Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Net Profit | ($10,238) | ($3,625) | ($2,765) | ($1,217) | ($2,358) | $35 | $502 | $989 | $1,609 | $2,984 | $4,469 | $3,863 | |
| Net Profit/Sales | 0.00% | -67.71% | -40.74% | -12.99% | -21.84% | 0.31% | 4.08% | 7.55% | 11.38% | 18.16% | 23.64% | 18.80% | |
| 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 | $0 | $5,354 | $6,788 | $9,369 | $10,799 | $11,525 | $12,299 | $13,109 | $14,139 | $16,427 | $18,899 | $20,554 | |
| Subtotal Cash from Operations | $0 | $5,354 | $6,788 | $9,369 | $10,799 | $11,525 | $12,299 | $13,109 | $14,139 | $16,427 | $18,899 | $20,554 | |
| 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 | $5,000 | $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 | $0 | $5,354 | $6,788 | $9,369 | $10,799 | $16,525 | $12,299 | $13,109 | $14,139 | $16,427 | $18,899 | $20,554 | |
| 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 | $3,000 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $6,200 | |
| Bill Payments | $238 | $7,055 | $4,311 | $4,900 | $5,983 | $8,414 | $6,812 | $7,120 | $7,446 | $7,872 | $8,789 | $9,765 | |
| Subtotal Spent on Operations | $3,238 | $11,655 | $8,911 | $9,500 | $10,583 | $13,014 | $11,412 | $11,720 | $12,046 | $12,472 | $13,389 | $15,965 | |
| 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 | $210 | $210 | $210 | $210 | $210 | $210 | |
| 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 | $3,238 | $11,655 | $8,911 | $9,500 | $10,583 | $13,014 | $11,622 | $11,930 | $12,256 | $12,682 | $13,599 | $16,175 | |
| Net Cash Flow | ($3,238) | ($6,300) | ($2,123) | ($131) | $216 | $3,511 | $677 | $1,179 | $1,883 | $3,745 | $5,301 | $4,379 | |
| Cash Balance | $16,794 | $10,493 | $8,370 | $8,240 | $8,456 | $11,967 | $12,644 | $13,823 | $15,706 | $19,451 | $24,752 | $29,131 | |
| 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 | $20,032 | $16,794 | $10,493 | $8,370 | $8,240 | $8,456 | $11,967 | $12,644 | $13,823 | $15,706 | $19,451 | $24,752 | $29,131 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $20,032 | $16,794 | $10,493 | $8,370 | $8,240 | $8,456 | $11,967 | $12,644 | $13,823 | $15,706 | $19,451 | $24,752 | $29,131 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $9,368 | $9,368 | $9,368 | $9,368 | $9,368 | $9,368 | $9,368 | $9,368 | $9,368 | $9,368 | $9,368 | $9,368 | $9,368 |
| Accumulated Depreciation | $0 | $88 | $176 | $264 | $352 | $440 | $528 | $616 | $704 | $792 | $880 | $968 | $1,056 |
| Total Long-term Assets | $9,368 | $9,280 | $9,192 | $9,104 | $9,016 | $8,928 | $8,840 | $8,752 | $8,664 | $8,576 | $8,488 | $8,400 | $8,312 |
| Total Assets | $29,400 | $26,074 | $19,685 | $17,474 | $17,256 | $17,384 | $20,807 | $21,396 | $22,487 | $24,282 | $27,939 | $33,152 | $37,443 |
| 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 | $6,912 | $4,149 | $4,703 | $5,701 | $8,187 | $6,575 | $6,873 | $7,184 | $7,581 | $8,464 | $9,418 | $10,056 |
| Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $5,000 | $4,790 | $4,580 | $4,370 | $4,160 | $3,950 | $3,740 |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $0 | $6,912 | $4,149 | $4,703 | $5,701 | $8,187 | $11,575 | $11,663 | $11,764 | $11,951 | $12,624 | $13,368 | $13,796 |
| Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Liabilities | $0 | $6,912 | $4,149 | $4,703 | $5,701 | $8,187 | $11,575 | $11,663 | $11,764 | $11,951 | $12,624 | $13,368 | $13,796 |
| Paid-in Capital | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 |
| Retained Earnings | ($600) | ($600) | ($600) | ($600) | ($600) | ($600) | ($600) | ($600) | ($600) | ($600) | ($600) | ($600) | ($600) |
| Earnings | $0 | ($10,238) | ($13,863) | ($16,629) | ($17,845) | ($20,204) | ($20,168) | ($19,667) | ($18,677) | ($17,069) | ($14,085) | ($9,616) | ($5,753) |
| Total Capital | $29,400 | $19,162 | $15,537 | $12,771 | $11,555 | $9,196 | $9,232 | $9,733 | $10,723 | $12,331 | $15,315 | $19,784 | $23,647 |
| Total Liabilities and Capital | $29,400 | $26,074 | $19,685 | $17,474 | $17,256 | $17,384 | $20,807 | $21,396 | $22,487 | $24,282 | $27,939 | $33,152 | $37,443 |
| Net Worth | $29,400 | $19,162 | $15,537 | $12,771 | $11,555 | $9,196 | $9,232 | $9,733 | $10,723 | $12,331 | $15,315 | $19,784 | $23,647 |
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