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Legal Page
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Table of Contents

1.0 Executive Summary...............................................................................................................................1

Chart: Highlights..................................................................................................................................1
1.1 Objectives..........................................................................................................................................1
1.2 Mission...............................................................................................................................................2
2.0 Company Summary...............................................................................................................................2
2.1 Company Ownership.........................................................................................................................2
2.2 Start-up Summary..............................................................................................................................2
Chart: Start-up......................................................................................................................................2
Table: Start-up Funding.......................................................................................................................3
Table: Start-up.....................................................................................................................................4
3.0 Products..................................................................................................................................................4
4.0 Market Analysis Summary....................................................................................................................4
4.1 Market Segmentation.........................................................................................................................5
Table: Market Analysis........................................................................................................................5
Chart: Market Analysis (Pie)...............................................................................................................5
5.0 Strategy and Implementation Summary.................................................................................................6
5.1 Competitive Edge...............................................................................................................................6
5.2 Sales Strategy.....................................................................................................................................6
5.2.1 Sales Forecast..............................................................................................................................6
Table: Sales Forecast.......................................................................................................................6
Chart: Sales Monthly.......................................................................................................................7
Chart: Sales by Year........................................................................................................................7
6.0 Management Summary..........................................................................................................................8
6.1 Management Team.............................................................................................................................8
6.2 Personnel Plan....................................................................................................................................8
Table: Personnel...................................................................................................................................8
7.0 Financial Plan.........................................................................................................................................8
7.1 Break-even Analysis..........................................................................................................................9
Table: Break-even Analysis.................................................................................................................9
Chart: Break-even Analysis.................................................................................................................9
7.2 Projected Profit and Loss.................................................................................................................10
Table: Profit and Loss........................................................................................................................10
Chart: Profit Monthly.........................................................................................................................11
Chart: Profit Yearly............................................................................................................................11
Chart: Gross Margin Monthly............................................................................................................12
Chart: Gross Margin Yearly...............................................................................................................12
7.3 Projected Cash Flow........................................................................................................................13
Table: Cash Flow...............................................................................................................................13
Chart: Cash.........................................................................................................................................14
7.4 Projected Balance Sheet...................................................................................................................15
Table: Balance Sheet..........................................................................................................................15
7.5 Business Ratios................................................................................................................................15
Table: Ratios......................................................................................................................................16
Table: Sales Forecast...................................................................................................................................1
Page 1

Table of Contents

......................................................................................................................................................................1
Table: Personnel...........................................................................................................................................2
......................................................................................................................................................................2
Table: General Assumptions........................................................................................................................3
......................................................................................................................................................................3
Table: Profit and Loss..................................................................................................................................4
......................................................................................................................................................................4
Table: Cash Flow.........................................................................................................................................5
Table: Balance Sheet....................................................................................................................................6

Page 2

Last Frontier Market

1.0 Executive Summary

Last Frontier Market will offer customers organic and locally grown produce, chemical- and
preservative-free groceries, cruelty-free body care and eco-household products. All of our
products are healthy alternatives to the products available at conventional grocery chains.
Located in the heart of the growing Willow Creek section of Richmond, the market will serve a
community of 25,000 residents. The creation of the market is in response to the growing
demand in the community for a local natural food store.
The Last Frontier Market will have the advantage of the foot traffic in the Willow Creek retail
area which is the home of the Willow Creek Arts and Craft Fair, as well as the home of
numerous art and craft shops. The area has a reputation of supporting progressive causes and
businesses. The market will be a comfortable place to meet and shop in the community.
In addition, the market will also be the most convenient in the area. The closest competing
natural food store to the Willow Creek area is a twenty minute drive.
The Last Frontier Market will give back to the community. We will participate in community
projects and host fund-raisers for local community services.

Chart: Highlights

1.1 Objectives

Provide our customers with the freshest, organically grown fruits and vegetables.
Offer foods without artificial colors, flavors, or additives.
Sell earth-friendly cleansers; pure, natural supplements; and gentle, cruelty-free body care
products.

Page 1

Last Frontier Market

Support organic farms that keep our earth and water pure.

1.2 Mission
The Last Frontier Market is committed to providing the highest quality, fresh and natural food,
health and wellness products. Our staff are friendly, eager to serve and ready to educate.
2.0 Company Summary
Last Frontier Market is a vegetarian health food store located in the heart of the Willow Creek
section of Richmond. The community of 25,000 residents is made up of students attending the
State University and families attracted to the new home construction in the area.
Co-owners, Josh Wingard and Mary Stevens, are opening the Last Frontier Market to capitalize
on the growing demand in the community for a local food store that offers organic and locally
grown produce, chemical and preservative free groceries, cruelty-free body care and ecohousehold products.
2.1 Company Ownership
Last Frontier Market is owned by Josh Wingard and Mary Stevens.
2.2 Start-up Summary
The start-up cost of the Last Frontier Market will consist primarily of inventory and display
equipment. Josh Wingard and Mary Stevens will invest $80,000. They will also secure a
$50,000 SBA loan.
Chart: Start-up

Page 2

Last Frontier Market

Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required

$77,800
$52,200
$130,000

Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

$10,000
$42,200
$0
$42,200
$52,200

Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities

$0
$50,000
$0
$0
$50,000

Capital
Planned Investment
Josh Wingard and Mary Stevens
Other
Additional Investment Requirement
Total Planned Investment
Loss at Start-up (Start-up Expenses)
Total Capital

Total Capital and Liabilities

Total Funding

$80,000
$0
$0
$80,000
($77,800)
$2,200

$52,200
$130,000

Page 3

Last Frontier Market

Table: Start-up

Start-up
Requirements
Start-up Expenses
Legal
Insurance
Rent
Start-Up Inventory
Display Set-Up
Cash Reserve for Hiring
Advertising
Other
Total Start-up Expenses

$1,000
$0
$1,800
$40,000
$5,000
$30,000
$0
$0
$77,800

Start-up Assets
Cash Required
Other Current Assets
Long-term Assets
Total Assets

$42,200
$0
$10,000
$52,200

Total Requirements

$130,000

3.0 Products
The Last Frontier Market will offer customers organic and locally grown produce, chemical- and
preservative-free groceries, cruelty-free body care and eco-household products. The products
are:

Free of artificial preservatives.

Free of artificial colors.
Free of chemical additives.
Organically grown, whenever possible.
The least processed or unadulterated version available.
Non-irradiated.
Cruelty free.

4.0 Market Analysis Summary

In the past ten years, the Willow Creek section of Richmond has grown tremendously. The
growing student community combined with the new families in the area are a perfect customer
support base for the Last Frontier Market.
Currently, the area is served by two major supermarkets that do not carry any of the product
lines available at the Last Frontier Market. The closest natural food store is a twenty minute
drive.
Josh Wingard and Mary Stevens believe that a local natural food store in the Willow Creek area
would be competitive and offer customers a product selection that will assure repeat business.

Page 4

Last Frontier Market

4.1 Market Segmentation

The Last Frontier Market will focus two significant customer groups:

Families: Many of the young families moving into the Willow Creek area are doing so
because of its unique community environment. The community is home to a number of
artists and craft people that operate the Willow Creek Craft Fair. This creates a festive
environment in the Willow Creek central commercial/retail area that attract shoppers each
weekend. Its close proximity to the university also attracts young families where one or
both parents are students or employees of the university. These families are a strong
customer base for the Last Frontier Market.

Students: A significant number of students prefer to shop at a natural food store. The Last
Frontier Market will be within walking distance for most area residents. Our location will
make our store a convenient place to shop on the way home from classes.

Table: Market Analysis

Market Analysis
Potential Customers
Family Members
Students
Other
Total

Year 1

Year 2

Year 3

Year 4

Year 5

9,000
16,000
0
25,000

10,350
17,600
0
27,950

11,903
19,360
0
31,263

13,688
21,296
0
34,984

15,741
23,426
0
39,167

Growth
15%
10%
0%
11.88%

CAGR
15.00%
10.00%
0.00%
11.88%

Chart: Market Analysis (Pie)

Page 5

Last Frontier Market

5.0 Strategy and Implementation Summary

The Last Frontier Market will promote the store opening. We will have live music and food in
the store's parking lot for the opening weekend. The Willow Creek Craft Fair is adjacent to our
store and we should have excellent foot traffic for our opening.
We will advertise in the university daily student newspaper as well as the local area advertising
flyer. In the advertisements for the market opening, we will have a 20% off coupon for
purchases over twenty dollars. We will continue this discount for the first month of operation.
The Last Frontier Market will give back to the community. We will participate in community
projects like the area's food bank and community programs for children. The Last Frontier
Market will also hosts a number of community events, such as charity pancake brunches, dog
washes benefiting local humane societies and benefit barbecues.
5.1 Competitive Edge
The Last Frontier Market's competitive edge is:

Location: The Last Frontier Market is located located in the heart of the Willow Creek
section of Richmond. The foot traffic in the Willow Creek retail area is very strong. The
closest natural food store to the Willow Creek area is a twenty minute drive.

Community Support: The Last Frontier Market is a community market that will give back
to the community. We will participate in community projects like the area's food bank and
community programs for children. The Last Frontier Market will also host a number of
community events, such as charity pancake brunches, dog washes benefiting local humane
societies and benefit barbecues.

5.2 Sales Strategy

The sales strategy of the Last Frontier Market is simple. The key to customer satisfaction is a
community-friendly store that is easy to navigate and has knowledgeable people to help
customers find what they want quickly. Customers will linger in the store, reading notices on
the community bulletin board or speaking with friends.
5.2.1 Sales Forecast
The following is the Last Frontier Market's sales forecast for three years.
Table: Sales Forecast
Sales Forecast
Year 1

Year 2

Year 3

Sales
Others
Total Sales

$423,000
$0
$423,000

$470,000
$0
$470,000

$520,000
$0
$520,000

Direct Cost of Sales

Sales
Others
Subtotal Direct Cost of Sales

Year 1
$128,220
$0
$128,220

Year 2
$150,000
$0
$150,000

Year 3
$175,000
$0
$175,000

Sales

Page 6

Last Frontier Market

Chart: Sales Monthly

Chart: Sales by Year

Page 7

Last Frontier Market

6.0 Management Summary

Co-owners, Josh Wingard and Mary Stevens, have fifteen years of experience working in natural
food stores.
Mary Stevens was one of the founding members of the Mason Peak Natural Grocery, 4th
and Tyler. The grocery was established in 1992 by the non-profit NEDCO, the Neighborhood
Economic Development Corporation, and a number of concerned neighbors who wished to
save the historic Mason Peak Market from destruction. Mary started as a cashier and advanced
to the position of store manager in 1996. The grocery has grown into a community fixture
under her management.
Josh Wingard ran the university's now defunct Natural Food Collective for three years before
the program was defunded. The small on-campus store provide natural food products to
student customers. Sales increased by 20% each year under his leadership. Unfortunately, the
state budget shortfall impacted the continued funding of the program. Prior to this position,
Josh worked at Sunburst Natural Foods for four years. His principle responsibilities were
product ordering and stocking.
6.1 Management Team
Josh Wingard and Mary Stevens were be the management team for the Last Frontier Market.
Mary will be responsible for staffing and daily operations. Josh will be responsible for product
ordering, stocking and bookkeeping.
6.2 Personnel Plan
Besides Josh Wingard and Mary Stevens, the last Frontier Market will have a staff of five:

Three cashiers.
Two produce staff.

Table: Personnel

Personnel Plan
Year 1

Year 2

Year 3

Mary Stevens
Josh Wingard
Cashiers
Produce Staff
Total People

$33,600
$33,600
$84,000
$48,000
7

$36,000
$36,000
$95,000
$51,000
7

$39,000
$39,000
$104,000
$54,000
7

Total Payroll

$199,200

$218,000

$236,000

7.0 Financial Plan

The following is the Financial Plan for the Last Frontier Market.

Page 8

Last Frontier Market

7.1 Break-even Analysis

The monthly break-even point is $32,277.
Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even

$32,277

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

30%
$22,493

Chart: Break-even Analysis

Page 9

Last Frontier Market

7.2 Projected Profit and Loss

The following table and charts highlight the projected profit and loss for three years.
Table: Profit and Loss

Pro Forma Profit and Loss

Year 1

Year 2

Year 3

Sales
Direct Cost of Sales
Other Production Expenses
Total Cost of Sales

$423,000
$128,220
$0
$128,220

$470,000
$150,000
$0
$150,000

$520,000
$175,000
$0
$175,000

Gross Margin
Gross Margin %

$294,780
69.69%

$320,000
68.09%

$345,000
66.35%

Payroll
Sales and Marketing and Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other

$199,200
$7,000
$1,440
$0
$4,800
$6,000
$21,600
$29,880
$0

$218,000
$10,000
$1,440
$0
$4,800
$6,000
$21,600
$32,700
$0

$236,000
$13,000
$1,440
$0
$4,800
$6,000
$21,600
$35,400
$0

Total Operating Expenses

$269,920

$294,540

$318,240

Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred

$24,860
$26,300
$4,459
$6,120

$25,460
$26,900
$3,501
$6,588

$26,760
$28,200
$2,501
$7,278

Net Profit
Net Profit/Sales

$14,281
3.38%

$15,372
3.27%

$16,981
3.27%

Expenses

Page 10

Last Frontier Market

Chart: Profit Monthly

Chart: Profit Yearly

Page 11

Last Frontier Market

Chart: Gross Margin Monthly

Chart: Gross Margin Yearly

Page 12

Last Frontier Market

7.3 Projected Cash Flow

The following table and chart highlight the projected cash flow for three years.
Table: Cash Flow

Pro Forma Cash Flow

Year 1

Year 2

Year 3

$105,750
$251,575
$357,325

$117,500
$345,203
$462,703

$130,000
$382,237
$512,237

$0
$0
$0
$0
$0
$0
$4,000
$361,325

$0
$0
$0
$0
$0
$0
$0
$462,703

$0
$0
$0
$0
$0
$0
$0
$512,237

Year 1

Year 2

Year 3

$199,200
$186,715
$385,915

$218,000
$237,222
$455,222

$236,000
$263,081
$499,081

Sales Tax, VAT, HST/GST Paid Out

Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent

$0
$0
$0
$9,996
$0
$0
$0
$395,911

$0
$0
$0
$9,996
$0
$0
$0
$465,218

$0
$0
$0
$9,996
$0
$0
$0
$509,077

Net Cash Flow

Cash Balance

($34,586)
$7,614

($2,515)
$5,099

$3,160
$8,259

Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent

Page 13

Last Frontier Market

Chart: Cash

Page 14

Last Frontier Market

7.4 Projected Balance Sheet

The following table highlights the projected balance sheet for three years.
Table: Balance Sheet

Pro Forma Balance Sheet

Year 1

Year 2

Year 3

$7,614
$65,675
$0
$73,289

$5,099
$72,972
$0
$78,071

$8,259
$80,735
$0
$88,994

$10,000
$1,440
$8,560
$81,849

$10,000
$2,880
$7,120
$85,191

$10,000
$4,320
$5,680
$94,674

Year 1

Year 2

Year 3

Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$21,364
$0
$0
$21,364

$19,331
$0
$0
$19,331

$21,828
$0
$0
$21,828

Long-term Liabilities
Total Liabilities

$40,004
$61,368

$30,008
$49,339

$20,012
$41,840

$84,000
($77,800)
$14,281
$20,481
$81,849

$84,000
($63,519)
$15,372
$35,853
$85,191

$84,000
($48,147)
$16,981
$52,834
$94,674

$20,481

$35,853

$52,834

Assets
Current Assets
Cash
Accounts Receivable
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) code 5149, Groceries and Related Products, are shown
for comparison.

Page 15

Last Frontier Market

Table: Ratios

Ratio Analysis
Year 1

Year 2

Year 3

Industry Profile

n.a.

11.11%

10.64%

4.60%

Accounts Receivable
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets

80.24%
0.00%
89.54%
10.46%
100.00%

85.66%
0.00%
91.64%
8.36%
100.00%

85.28%
0.00%
94.00%
6.00%
100.00%

33.30%
20.90%
80.20%
19.80%
100.00%

Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth

26.10%
48.88%
74.98%
25.02%

22.69%
35.22%
57.92%
42.08%

23.06%
21.14%
44.19%
55.81%

45.20%
10.00%
55.20%
44.80%

100.00%
69.69%
66.31%
1.65%
5.88%

100.00%
68.09%
64.81%
2.13%
5.42%

100.00%
66.35%
63.08%
2.50%
5.15%

100.00%
44.10%
26.70%
0.70%
0.80%

3.43
3.43
74.98%
99.61%
24.93%

4.04
4.04
57.92%
61.25%
25.78%

4.08
4.08
44.19%
45.92%
25.62%

1.69
1.01
55.20%
3.60%
8.00%

Sales Growth
Percent of Total Assets

Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Additional Ratios

Year 1

Year 2

Year 3

Net Profit Margin

Return on Equity

3.38%
69.73%

3.27%
42.87%

3.27%
32.14%

n.a
n.a

4.83
57
9.74
27
5.17

4.83
72
12.17
32
5.52

4.83
72
12.17
28
5.49

n.a
n.a
n.a
n.a
n.a

3.00
0.35

1.38
0.39

0.79
0.52

n.a
n.a

$51,925
5.58

$58,741
7.27

$67,166
10.70

n.a
n.a

0.19
26%
0.36
20.65
0.00

0.18
23%
0.26
13.11
0.00

0.18
23%
0.38
9.84
0.00

n.a
n.a
n.a
n.a
n.a

Activity Ratios
Accounts Receivable Turnover
Collection Days
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout

Page 16

Appendix
Table: Sales Forecast

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

$26,000
$0
$26,000

$29,000
$0
$29,000

$30,000
$0
$30,000

$34,000
$0
$34,000

$36,000
$0
$36,000

$38,000
$0
$38,000

$34,000
$0
$34,000

$33,000
$0
$33,000

$35,000
$0
$35,000

$39,000
$0
$39,000

$43,000
$0
$43,000

$46,000
$0
$46,000

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

Sales

$9,000

$9,500

$9,600

$10,200

$10,500

$11,300

$10,000

$10,000

$11,000

$12,000

$12,120

$13,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$9,000

$9,500

$9,600

$10,200

$10,500

$11,300

$10,000

$10,000

$11,000

$12,000

$12,120

$13,000

Sales
Sales
Others
Total Sales

Others
Subtotal Direct Cost of Sales

0%
0%

Page 1

Appendix
Table: Personnel

Personnel Plan
Mary Stevens
Josh Wingard
Cashiers
Produce Staff
Total People
Total Payroll

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

$2,800
$2,800
$7,000
$4,000
7

$2,800
$2,800
$7,000
$4,000
7

$2,800
$2,800
$7,000
$4,000
7

$2,800
$2,800
$7,000
$4,000
7

$2,800
$2,800
$7,000
$4,000
7

$2,800
$2,800
$7,000
$4,000
7

$2,800
$2,800
$7,000
$4,000
7

$2,800
$2,800
$7,000
$4,000
7

$2,800
$2,800
$7,000
$4,000
7

$2,800
$2,800
$7,000
$4,000
7

$2,800
$2,800
$7,000
$4,000
7

$2,800
$2,800
$7,000
$4,000
7

$16,600

$16,600

$16,600

$16,600

$16,600

$16,600

$16,600

$16,600

$16,600

$16,600

$16,600

$16,600

Page 2

Appendix
Table: General Assumptions

General Assumptions
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

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%

Plan Month

Other

Month 12

Page 3

Appendix
Table: Profit and Loss

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

$26,000

$29,000

$30,000

$34,000

$36,000

$38,000

$34,000

$33,000

$35,000

$39,000

$43,000

$46,000

$9,000

$9,500

$9,600

$10,200

$10,500

$11,300

$10,000

$10,000

$11,000

$12,000

$12,120

$13,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$9,000

$9,500

$9,600

$10,200

$10,500

$11,300

$10,000

$10,000

$11,000

$12,000

$12,120

$13,000

Gross Margin

$17,000

$19,500

$20,400

$23,800

$25,500

$26,700

$24,000

$23,000

$24,000

$27,000

$30,880

$33,000

Gross Margin %

65.38%

67.24%

68.00%

70.00%

70.83%

70.26%

70.59%

69.70%

68.57%

69.23%

71.81%

71.74%

$16,600

$16,600

$16,600

$16,600

$16,600

$16,600

$16,600

$16,600

$16,600

$16,600

$16,600

$16,600

$1,000

$1,000

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$120

$120

$120

$120

$120

$120

$120

$120

$120

$120

$120

$120

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$400

$400

$400

$400

$400

$400

$400

$400

$400

$400

$400

$400

Sales
Direct Cost of Sales
Other Production Expenses
Total Cost of Sales

Expenses
Payroll
Sales and Marketing and Other
Expenses
Depreciation
Leased Equipment
Utilities
Insurance

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$1,800

$1,800

$1,800

$1,800

$1,800

$1,800

$1,800

$1,800

$1,800

$1,800

$1,800

$1,800

$2,490
$0

$2,490
$0

$2,490
$0

$2,490
$0

$2,490
$0

$2,490
$0

$2,490
$0

$2,490
$0

$2,490
$0

$2,490
$0

$2,490
$0

$2,490
$0

Total Operating Expenses

$22,910

$22,910

$22,410

$22,410

$22,410

$22,410

$22,410

$22,410

$22,410

$22,410

$22,410

$22,410

Profit Before Interest and Taxes

($5,910)

($3,410)

($2,010)

$1,390

$3,090

$4,290

$1,590

$590

$1,590

$4,590

$8,470

$10,590

EBITDA

($5,790)

($3,290)

($1,890)

$1,510

$3,210

$4,410

$1,710

$710

$1,710

$4,710

$8,590

$10,710

$410

$403

$396

$389

$382

$375

$368

$361

$354

$347

$340

$333

($1,896)

($1,144)

($722)

$300

$812

$1,174

$367

$69

$371

$1,273

$2,439

$3,077

Net Profit

($4,424)

($2,669)

($1,684)

$701

$1,896

$2,740

$855

$160

$865

$2,970

$5,691

$7,180

Net Profit/Sales

-17.01%

-9.20%

-5.61%

2.06%

5.27%

7.21%

2.52%

0.49%

2.47%

7.62%

13.23%

15.61%

Rent
Payroll Taxes
Other

Interest Expense
Taxes Incurred

15%

Page 4

Appendix
Table: Cash Flow

Pro Forma Cash Flow

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

$6,500

$7,250

$7,500

$8,500

$9,000

$9,500

$8,500

$8,250

$0

$650

$19,575

$21,775

$22,600

$25,550

$27,050

$28,400

$6,500

$7,900

$27,075

$30,275

$31,600

$35,050

$35,550

$36,650

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

New Other Liabilities (interest-free)

$0

$0

$0

$0

$0

$0

New Long-term Liabilities

$0

$0

$0

$0

$0

$0

Sales of Other Current Assets

$0

$0

$0

$0

$0

Sales of Long-term Assets

$0

$0

$0

$0

$0

New Investment Received

$0

$0

$0

$0

Subtotal Cash Received

$6,500

$7,900

$27,075

Expenditures

Month 1

Month 2

$16,600
$457

Month 9

Month 10

Month 11

Month 12

$8,750

$9,750

$10,750

$11,500

$25,475

$24,800

$26,350

$29,350

$34,225

$34,550

$37,100

$40,850

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$4,000

$0

$0

$0

$0

$0

$0

$0

$30,275

$35,600

$35,050

$35,550

$36,650

$34,225

$34,550

$37,100

$40,850

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$16,600

$16,600

$16,600

$16,600

$16,600

$16,600

$16,600

$16,600

$16,600

$16,600

$16,600

$13,745

$14,949

$15,018

$16,606

$17,423

$18,469

$16,414

$16,163

$17,478

$19,353

$20,640

$17,057

$30,345

$31,549

$31,618

$33,206

$34,023

$35,069

$33,014

$32,763

$34,078

$35,953

$37,240

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

$833

$833

$833

$833

$833

$833

$833

$833

$833

$833

$833

$833

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

$17,890

$31,178

$32,382

$32,451

$34,039

$34,856

$35,902

$33,847

$33,596

$34,911

$36,786

$38,073

($11,390)

($23,278)

($5,307)

($2,176)

$1,561

$194

($352)

$2,803

$629

($361)

$314

$2,777

Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing

0.00%

Expenditures from Operations

Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent

Long-term Liabilities Principal Repayment

Subtotal Cash Spent

Net Cash Flow

Page 5

Appendix
Cash Balance

$30,810

$7,532

$2,224

Month 1

Month 2

Month 3

$42,200
$0
$0
$42,200

$30,810
$19,500
$0
$50,310

$7,532
$40,600
$0
$48,132

$10,000
$0
$10,000
$52,200

$10,000
$120
$9,880
$60,190

$49

$1,609

$1,804

$1,452

$4,254

$4,883

$4,522

$4,836

$7,614

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$2,224
$43,525
$0
$45,749

$49
$47,250
$0
$47,299

$1,609
$51,650
$0
$53,259

$1,804
$54,600
$0
$56,404

$1,452
$53,050
$0
$54,502

$4,254
$49,400
$0
$53,654

$4,883
$50,175
$0
$55,058

$4,522
$54,625
$0
$59,147

$4,836
$60,525
$0
$65,361

$7,614
$65,675
$0
$73,289

$10,000
$240
$9,760
$57,892

$10,000
$360
$9,640
$55,389

$10,000
$480
$9,520
$56,819

$10,000
$600
$9,400
$62,659

$10,000
$720
$9,280
$65,684

$10,000
$840
$9,160
$63,662

$10,000
$960
$9,040
$62,694

$10,000
$1,080
$8,920
$63,978

$10,000
$1,200
$8,800
$67,947

$10,000
$1,320
$8,680
$74,041

$10,000
$1,440
$8,560
$81,849

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$0
$0
$0
$0

$13,247
$0
$0
$13,247

$14,451
$0
$0
$14,451

$14,465
$0
$0
$14,465

$16,027
$0
$0
$16,027

$16,805
$0
$0
$16,805

$17,922
$0
$0
$17,922

$15,877
$0
$0
$15,877

$15,582
$0
$0
$15,582

$16,834
$0
$0
$16,834

$18,666
$0
$0
$18,666

$19,903
$0
$0
$19,903

$21,364
$0
$0
$21,364

$50,000
$50,000

$49,167
$62,414

$48,334
$62,785

$47,501
$61,966

$46,668
$62,695

$45,835
$62,640

$45,002
$62,924

$44,169
$60,046

$43,336
$58,918

$42,503
$59,337

$41,670
$60,336

$40,837
$60,740

$40,004
$61,368

$80,000
($77,800)
$0
$2,200
$52,200

$80,000
($77,800)
($4,424)
($2,224)
$60,190

$80,000
($77,800)
($7,093)
($4,893)
$57,892

$80,000
($77,800)
($8,777)
($6,577)
$55,389

$80,000
($77,800)
($8,076)
($5,876)
$56,819

$84,000
($77,800)
($6,180)
$20
$62,659

$84,000
($77,800)
($3,440)
$2,760
$65,684

$84,000
($77,800)
($2,585)
$3,615
$63,662

$84,000
($77,800)
($2,424)
$3,776
$62,694

$84,000
($77,800)
($1,559)
$4,641
$63,978

$84,000
($77,800)
$1,411
$7,611
$67,947

$84,000
($77,800)
$7,101
$13,301
$74,041

$84,000
($77,800)
$14,281
$20,481
$81,849

$2,200

($2,224)

($4,893)

($6,577)

($5,876)

$20

$2,760

$3,615

$3,776

$4,641

$7,611

$13,301

$20,481

Table: Balance Sheet

Pro Forma Balance Sheet

Assets

Starting Balances

Current Assets
Cash
Accounts Receivable
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Long-term Liabilities
Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

Page 6