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
|
||
Unit Sales
|
|||||||||||||
Sawdust collection services in hours
|
1,120
|
1,120
|
1,120
|
1,120
|
1,120
|
1,120
|
1,120
|
1,120
|
1,120
|
1,120
|
1,120
|
1,120
|
|
Waste acceptance in tons
|
200
|
400
|
600
|
800
|
1,080
|
1,080
|
1,080
|
1,080
|
1,080
|
1,080
|
1,080
|
1,080
|
|
Compost sales in tons
|
277
|
555
|
833
|
1,111
|
1,500
|
1,500
|
1,500
|
1,500
|
1,500
|
1,500
|
1,500
|
1,500
|
|
Total Unit Sales
|
1,597
|
2,075
|
2,553
|
3,031
|
3,700
|
3,700
|
3,700
|
3,700
|
3,700
|
3,700
|
3,700
|
3,700
|
|
Unit Prices
|
Month 1
|
Month 2
|
Month 3
|
Month 4
|
Month 5
|
Month 6
|
Month 7
|
Month 8
|
Month 9
|
Month 10
|
Month 11
|
Month 12
|
|
Sawdust collection services in hours
|
$14.20
|
$14.20
|
$14.20
|
$14.20
|
$14.20
|
$14.20
|
$14.20
|
$14.20
|
$14.20
|
$14.20
|
$14.20
|
$14.20
|
|
Waste acceptance in tons
|
$18.00
|
$18.00
|
$18.00
|
$18.00
|
$18.00
|
$18.00
|
$18.00
|
$18.00
|
$18.00
|
$18.00
|
$18.00
|
$18.00
|
|
Compost sales in tons
|
$50.00
|
$50.00
|
$50.00
|
$50.00
|
$50.00
|
$50.00
|
$50.00
|
$50.00
|
$50.00
|
$50.00
|
$50.00
|
$50.00
|
|
Sales
|
|||||||||||||
Sawdust collection services in hours
|
$15,904
|
$15,904
|
$15,904
|
$15,904
|
$15,904
|
$15,904
|
$15,904
|
$15,904
|
$15,904
|
$15,904
|
$15,904
|
$15,904
|
|
Waste acceptance in tons
|
$3,600
|
$7,200
|
$10,800
|
$14,400
|
$19,440
|
$19,440
|
$19,440
|
$19,440
|
$19,440
|
$19,440
|
$19,440
|
$19,440
|
|
Compost sales in tons
|
$13,850
|
$27,750
|
$41,650
|
$55,550
|
$75,000
|
$75,000
|
$75,000
|
$75,000
|
$75,000
|
$75,000
|
$75,000
|
$75,000
|
|
Total Sales
|
$33,354
|
$50,854
|
$68,354
|
$85,854
|
$110,344
|
$110,344
|
$110,344
|
$110,344
|
$110,344
|
$110,344
|
$110,344
|
$110,344
|
|
Direct Unit Costs
|
Month 1
|
Month 2
|
Month 3
|
Month 4
|
Month 5
|
Month 6
|
Month 7
|
Month 8
|
Month 9
|
Month 10
|
Month 11
|
Month 12
|
|
Sawdust collection services in hours
|
5.00%
|
$0.71
|
$0.71
|
$0.71
|
$0.71
|
$0.71
|
$0.71
|
$0.71
|
$0.71
|
$0.71
|
$0.71
|
$0.71
|
$0.71
|
Waste acceptance in tons
|
5.00%
|
$0.90
|
$0.90
|
$0.90
|
$0.90
|
$0.90
|
$0.90
|
$0.90
|
$0.90
|
$0.90
|
$0.90
|
$0.90
|
$0.90
|
Compost sales in tons
|
14.00%
|
$7.00
|
$7.00
|
$7.00
|
$7.00
|
$7.00
|
$7.00
|
$7.00
|
$7.00
|
$7.00
|
$7.00
|
$7.00
|
$7.00
|
Direct Cost of Sales
|
|||||||||||||
Sawdust collection services in hours
|
$795
|
$795
|
$795
|
$795
|
$795
|
$795
|
$795
|
$795
|
$795
|
$795
|
$795
|
$795
|
|
Waste acceptance in tons
|
$180
|
$360
|
$540
|
$720
|
$972
|
$972
|
$972
|
$972
|
$972
|
$972
|
$972
|
$972
|
|
Compost sales in tons
|
$1,939
|
$3,885
|
$5,831
|
$7,777
|
$10,500
|
$10,500
|
$10,500
|
$10,500
|
$10,500
|
$10,500
|
$10,500
|
$10,500
|
|
Subtotal Direct Cost of Sales
|
$2,914
|
$5,040
|
$7,166
|
$9,292
|
$12,267
|
$12,267
|
$12,267
|
$12,267
|
$12,267
|
$12,267
|
$12,267
|
$12,267
|
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
|
||
Management/supervisory
|
0%
|
$8,837
|
$8,837
|
$8,837
|
$8,837
|
$8,837
|
$8,837
|
$8,837
|
$8,837
|
$8,837
|
$8,837
|
$8,837
|
$8,837
|
Production labor
|
0%
|
$11,168
|
$13,401
|
$14,900
|
$16,380
|
$16,380
|
$16,380
|
$16,380
|
$16,380
|
$16,380
|
$16,380
|
$16,380
|
$16,380
|
Sawdust collection team
|
0%
|
$6,760
|
$6,760
|
$6,760
|
$6,760
|
$6,760
|
$6,760
|
$6,760
|
$6,760
|
$6,760
|
$6,760
|
$6,760
|
$6,760
|
Other
|
0%
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
Total People
|
15
|
18
|
20
|
22
|
22
|
22
|
22
|
22
|
22
|
22
|
22
|
22
|
|
Total Payroll
|
$26,765
|
$28,998
|
$30,497
|
$31,977
|
$31,977
|
$31,977
|
$31,977
|
$31,977
|
$31,977
|
$31,977
|
$31,977
|
$31,977
|
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
|
7.00%
|
7.00%
|
7.00%
|
7.00%
|
7.00%
|
7.00%
|
7.00%
|
7.00%
|
7.00%
|
7.00%
|
7.00%
|
7.00%
|
|
Long-term Interest Rate
|
7.00%
|
7.00%
|
7.00%
|
7.00%
|
7.00%
|
7.00%
|
7.00%
|
7.00%
|
7.00%
|
7.00%
|
7.00%
|
7.00%
|
|
Tax Rate
|
25.00%
|
25.00%
|
25.00%
|
25.00%
|
25.00%
|
25.00%
|
25.00%
|
25.00%
|
25.00%
|
25.00%
|
25.00%
|
25.00%
|
|
Other
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
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
|
$33,354
|
$50,854
|
$68,354
|
$85,854
|
$110,344
|
$110,344
|
$110,344
|
$110,344
|
$110,344
|
$110,344
|
$110,344
|
$110,344
|
|
Direct Cost of Sales
|
$2,914
|
$5,040
|
$7,166
|
$9,292
|
$12,267
|
$12,267
|
$12,267
|
$12,267
|
$12,267
|
$12,267
|
$12,267
|
$12,267
|
|
Other Costs of Goods
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
|
Total Cost of Sales
|
$2,914
|
$5,040
|
$7,166
|
$9,292
|
$12,267
|
$12,267
|
$12,267
|
$12,267
|
$12,267
|
$12,267
|
$12,267
|
$12,267
|
|
Gross Margin
|
$30,440
|
$45,814
|
$61,188
|
$76,562
|
$98,077
|
$98,077
|
$98,077
|
$98,077
|
$98,077
|
$98,077
|
$98,077
|
$98,077
|
|
Gross Margin %
|
91.26%
|
90.09%
|
89.52%
|
89.18%
|
88.88%
|
88.88%
|
88.88%
|
88.88%
|
88.88%
|
88.88%
|
88.88%
|
88.88%
|
|
Expenses
|
|||||||||||||
Payroll
|
$26,765
|
$28,998
|
$30,497
|
$31,977
|
$31,977
|
$31,977
|
$31,977
|
$31,977
|
$31,977
|
$31,977
|
$31,977
|
$31,977
|
|
Sales and Marketing and Other Expenses
|
$1,000
|
$1,000
|
$1,000
|
$1,000
|
$1,000
|
$1,000
|
$1,000
|
$1,000
|
$1,000
|
$1,000
|
$1,000
|
$1,000
|
|
Depreciation
|
$13,782
|
$13,782
|
$13,782
|
$13,782
|
$13,782
|
$13,782
|
$13,782
|
$13,782
|
$13,782
|
$13,782
|
$13,782
|
$13,782
|
|
Rent
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
|
Utilities
|
$1,500
|
$1,500
|
$1,500
|
$1,500
|
$1,500
|
$1,500
|
$1,500
|
$1,500
|
$1,500
|
$1,500
|
$1,500
|
$1,500
|
|
Insurance
|
$1,500
|
$1,500
|
$1,500
|
$1,500
|
$1,500
|
$1,500
|
$1,500
|
$1,500
|
$1,500
|
$1,500
|
$1,500
|
$1,500
|
|
Payroll Taxes
|
15%
|
$4,015
|
$4,350
|
$4,575
|
$4,797
|
$4,797
|
$4,797
|
$4,797
|
$4,797
|
$4,797
|
$4,797
|
$4,797
|
$4,797
|
Maintanence and Repair
|
15%
|
$400
|
$400
|
$400
|
$400
|
$400
|
$400
|
$400
|
$400
|
$400
|
$400
|
$400
|
$400
|
Other
|
$2,000
|
$2,000
|
$2,000
|
$2,000
|
$2,000
|
$2,000
|
$2,000
|
$2,000
|
$2,000
|
$2,000
|
$2,000
|
$2,000
|
|
Total Operating Expenses
|
$50,962
|
$53,530
|
$55,254
|
$56,956
|
$56,956
|
$56,956
|
$56,956
|
$56,956
|
$56,956
|
$56,956
|
$56,956
|
$56,956
|
|
Profit Before Interest and Taxes
|
($20,522)
|
($7,716)
|
$5,934
|
$19,606
|
$41,121
|
$41,121
|
$41,121
|
$41,121
|
$41,121
|
$41,121
|
$41,121
|
$41,121
|
|
EBITDA
|
($6,740)
|
$6,066
|
$19,716
|
$33,388
|
$54,903
|
$54,903
|
$54,903
|
$54,903
|
$54,903
|
$54,903
|
$54,903
|
$54,903
|
|
Interest Expense
|
$4,930
|
$4,901
|
$4,872
|
$4,843
|
$4,813
|
$4,784
|
$4,754
|
$4,724
|
$4,694
|
$4,664
|
$4,634
|
$4,603
|
|
Taxes Incurred
|
($6,363)
|
($3,154)
|
$266
|
$3,691
|
$9,077
|
$9,084
|
$9,092
|
$9,099
|
$9,107
|
$9,114
|
$9,122
|
$9,129
|
|
Net Profit
|
($19,089)
|
($9,463)
|
$797
|
$11,073
|
$27,231
|
$27,253
|
$27,275
|
$27,298
|
$27,320
|
$27,343
|
$27,366
|
$27,388
|
|
Net Profit/Sales
|
-57.23%
|
-18.61%
|
1.17%
|
12.90%
|
24.68%
|
24.70%
|
24.72%
|
24.74%
|
24.76%
|
24.78%
|
24.80%
|
24.82%
|
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
|
$13,342
|
$20,342
|
$27,342
|
$34,342
|
$44,138
|
$44,138
|
$44,138
|
$44,138
|
$44,138
|
$44,138
|
$44,138
|
$44,138
|
|
Cash from Receivables
|
$0
|
$667
|
$20,362
|
$30,862
|
$41,362
|
$52,002
|
$66,206
|
$66,206
|
$66,206
|
$66,206
|
$66,206
|
$66,206
|
|
Subtotal Cash from Operations
|
$13,342
|
$21,009
|
$47,704
|
$65,204
|
$85,500
|
$96,140
|
$110,344
|
$110,344
|
$110,344
|
$110,344
|
$110,344
|
$110,344
|
|
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
|
$13,342
|
$21,009
|
$47,704
|
$65,204
|
$85,500
|
$96,140
|
$110,344
|
$110,344
|
$110,344
|
$110,344
|
$110,344
|
$110,344
|
|
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
|
$26,765
|
$28,998
|
$30,497
|
$31,977
|
$31,977
|
$31,977
|
$31,977
|
$31,977
|
$31,977
|
$31,977
|
$31,977
|
$31,977
|
|
Bill Payments
|
$503
|
$15,260
|
$20,067
|
$25,808
|
$31,670
|
$40,517
|
$37,331
|
$37,309
|
$37,287
|
$37,264
|
$37,241
|
$37,219
|
|
Subtotal Spent on Operations
|
$27,268
|
$44,258
|
$50,564
|
$57,785
|
$63,647
|
$72,494
|
$69,308
|
$69,286
|
$69,264
|
$69,241
|
$69,218
|
$69,196
|
|
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
|
$4,911
|
$4,940
|
$4,968
|
$4,997
|
$5,026
|
$5,056
|
$5,085
|
$5,115
|
$5,145
|
$5,175
|
$5,205
|
$5,235
|
|
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
|
$20,000
|
|
Subtotal Cash Spent
|
$32,179
|
$49,198
|
$55,532
|
$62,783
|
$68,673
|
$77,550
|
$74,394
|
$74,401
|
$74,408
|
$74,416
|
$74,423
|
$94,431
|
|
Net Cash Flow
|
($18,838)
|
($28,189)
|
($7,828)
|
$2,421
|
$16,827
|
$18,590
|
$35,950
|
$35,943
|
$35,936
|
$35,928
|
$35,921
|
$15,913
|
|
Cash Balance
|
$62,062
|
$33,873
|
$26,045
|
$28,466
|
$45,293
|
$63,883
|
$99,834
|
$135,777
|
$171,712
|
$207,640
|
$243,561
|
$259,474
|
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
|
$80,900
|
$62,062
|
$33,873
|
$26,045
|
$28,466
|
$45,293
|
$63,883
|
$99,834
|
$135,777
|
$171,712
|
$207,640
|
$243,561
|
$259,474
|
Accounts Receivable
|
$0
|
$20,012
|
$49,858
|
$70,508
|
$91,158
|
$116,002
|
$130,206
|
$130,206
|
$130,206
|
$130,206
|
$130,206
|
$130,206
|
$130,206
|
Inventory
|
$0
|
$3,206
|
$5,544
|
$7,883
|
$10,221
|
$13,494
|
$13,494
|
$13,494
|
$13,494
|
$13,494
|
$13,494
|
$13,494
|
$13,494
|
Other Current Assets
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
Total Current Assets
|
$80,900
|
$85,280
|
$89,275
|
$104,436
|
$129,846
|
$174,789
|
$207,583
|
$243,534
|
$279,477
|
$315,412
|
$351,340
|
$387,261
|
$403,174
|
Long-term Assets
|
|||||||||||||
Long-term Assets
|
$826,920
|
$826,920
|
$826,920
|
$826,920
|
$826,920
|
$826,920
|
$826,920
|
$826,920
|
$826,920
|
$826,920
|
$826,920
|
$826,920
|
$826,920
|
Accumulated Depreciation
|
$0
|
$13,782
|
$27,564
|
$41,346
|
$55,128
|
$68,910
|
$82,692
|
$96,474
|
$110,256
|
$124,038
|
$137,820
|
$151,602
|
$165,384
|
Total Long-term Assets
|
$826,920
|
$813,138
|
$799,356
|
$785,574
|
$771,792
|
$758,010
|
$744,228
|
$730,446
|
$716,664
|
$702,882
|
$689,100
|
$675,318
|
$661,536
|
Total Assets
|
$907,820
|
$898,418
|
$888,631
|
$890,010
|
$901,638
|
$932,799
|
$951,811
|
$973,980
|
$996,141
|
$1,018,294
|
$1,040,440
|
$1,062,579
|
$1,064,710
|
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
|
$14,598
|
$19,213
|
$24,763
|
$30,316
|
$39,272
|
$36,088
|
$36,066
|
$36,044
|
$36,023
|
$36,001
|
$35,979
|
$35,957
|
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
|
$14,598
|
$19,213
|
$24,763
|
$30,316
|
$39,272
|
$36,088
|
$36,066
|
$36,044
|
$36,023
|
$36,001
|
$35,979
|
$35,957
|
Long-term Liabilities
|
$850,000
|
$845,089
|
$840,150
|
$835,181
|
$830,184
|
$825,157
|
$820,102
|
$815,016
|
$809,901
|
$804,757
|
$799,582
|
$794,377
|
$789,141
|
Total Liabilities
|
$850,000
|
$859,687
|
$859,362
|
$859,944
|
$860,500
|
$864,430
|
$856,189
|
$851,082
|
$845,946
|
$840,779
|
$835,583
|
$830,356
|
$825,098
|
Paid-in Capital
|
$150,000
|
$150,000
|
$150,000
|
$150,000
|
$150,000
|
$150,000
|
$150,000
|
$150,000
|
$150,000
|
$150,000
|
$150,000
|
$150,000
|
$150,000
|
Retained Earnings
|
($92,180)
|
($92,180)
|
($92,180)
|
($92,180)
|
($92,180)
|
($92,180)
|
($92,180)
|
($92,180)
|
($92,180)
|
($92,180)
|
($92,180)
|
($92,180)
|
($112,180)
|
Earnings
|
$0
|
($19,089)
|
($28,551)
|
($27,755)
|
($16,682)
|
$10,549
|
$37,802
|
$65,077
|
$92,375
|
$119,695
|
$147,038
|
$174,403
|
$201,792
|
Total Capital
|
$57,820
|
$38,731
|
$29,269
|
$30,065
|
$41,138
|
$68,369
|
$95,622
|
$122,897
|
$150,195
|
$177,515
|
$204,858
|
$232,223
|
$239,612
|
Total Liabilities and Capital
|
$907,820
|
$898,418
|
$888,631
|
$890,010
|
$901,638
|
$932,799
|
$951,811
|
$973,980
|
$996,141
|
$1,018,294
|
$1,040,440
|
$1,062,579
|
$1,064,710
|
Net Worth
|
$57,820
|
$38,731
|
$29,269
|
$30,065
|
$41,138
|
$68,369
|
$95,622
|
$122,897
|
$150,195
|
$177,515
|
$204,858
|
$232,223
|
$239,612
|
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