Executive Summary

The Year 1 season will be a great one for women looking for distinctive outdoor clothing online. Liquid
Culture will eliminate the middle man and offer creative outdoor clothing that is both functional and
beautiful. The savings are passed on to our customers who will be paying a fraction of what they
normally do for current retreated fashion in stores.
Liquid Culture's Year 1 line consists of the best fabric, designs and styling on the market. Larry Wilson
and Maggie Granger, co-owners of Liquid Culture, have fifteen years of experience between them in the
outdoor garment industry. Maggie has been a senior clothing designer for Manic Woman Clothing for
the past seven years. Larry has been the website administrator for South Face the past eight years.
Another strength of Liquid Culture is that it will not maintain any clothing inventory. Liquid Culture has
contracted with Magic Clothing Company, located in Los Angeles, California, to produce and ship all
Liquid Culture clothing. Our design team will work closely with the Magic's Indonesian-based
manufacturing facilities. The Magic Clothing Company will maintain the inventory and will produce
sufficient product to meet the planned demand.

1.1 Mission
Liquid Culture's mission is to present consumers with designs, styling and clothes that energizes any
outdoor activity. Whether it be snowboarding, running along the beach, or drifting down a river, Liquid
Culture has comfortable, durable clothing that will look and feel wonderful.
1.2 Keys to Success

Accessible website that is entertaining to surf. Like a trip to your favorite store where you
always find something new that you want.

Establishing a strong advertising campaign in a traditional media vehicle; i.e. magazines.

Excellent vendor relationship that will facilitate quality manufacturing of Liquid Culture's
clothing and quick shipment of orders.

Acquiring an excellent design staff.

Company Summary
Liquid Culture will offer creative women's outdoor clothing, online, that is both functional and
beautiful. Larry Wilson and Maggie Granger, co-owners of Liquid Culture, will create a cost-effective
operation that will eliminate the cost of inventory by having a third-party, Magic Clothing Company,
handle all manufacturing and shipping of clothing to the customer. Liquid Culture will process the order
and collect the payment online. The order will then be sent to Magic Clothing Company to be filled and
shipped. Liquid Culture will focus on clothing design and marketing of its products.
2.1 Start-up Summary
Liquid Culture's start-up costs consists mostly of design and marketing. Liquid Culture has 260,000 in
investments and 200,000 in a short-term loan.

Start-up Funding
Start-up Expenses to Fund

58,500

Start-up Assets to Fund

401,500

Total Funding Required

460,000

Assets
Non-cash Assets from Start-up 0
Cash Requirements from
Start-up

401,500

Additional Cash Raised

Cash Balance on Starting Date 401,500

Total Assets

401,500

Liabilities and Capital

Liabilities
Current Borrowing

Long-term Liabilities

200,000

Accounts Payable
(Outstanding Bills)

Other Current Liabilities

(interest-free)

Total Liabilities

200,000

Capital
Planned Investment
Investor 1

130,000

Investor 2

130,000

Other

Additional Investment
Requirement

Total Planned Investment

260,000

Loss at Start-up (Start-up

Expenses)

(58,500)

Total Capital

201,500

Total Capital and Liabilities

401,500

Total Funding

460,000

Start-up
Requirements
Start-up Expenses
Legal

1,000

Stationery etc.

500

Brochures

Consultants

5,000

Insurance

Rent

2,000

Leased Office
Equipment

10,000

Computer
Equipment/Software

30,000

Website

10,000

Other

Total Start-up Expenses 58,500

Start-up Assets
Cash Required

401,500

Start-up Inventory

Other Current Assets

Long-term Assets

Total Assets

401,500

Total Requirements

460,000

2.2 Company Ownership

Liquid Culture is owned by Larry Wilson and Maggie Granger.
Products
Liquid Culture will sell women's outdoor clothing online. We will offer outdoor clothing for almost every
type of active use. We will focus on the seasonal clothing demands of our customers including the
following:

Fleece outerwear.

Rain gear, waterproof breathables, as well as coated nylon.

Synthetic clothing for outdoor activities.

Hats.

Shorts.

Pants.

Shirts.

Market Analysis Summary

In the past 15 years, women's outdoor wear has grown into a billion dollar niche in the clothing industry.
The popularity of the Internet has launched a number of online stores for women's outdoor wear but no
company is exclusively selling their products online. There are a number of reasons for this but the
strongest is that the concept is new and untested. Will customers buy something that they wear that

can only be seen online? We believe they will, if the process is fun and the products are great and
cheap.
The key is marketing our target customers in the traditional advertising medium for fashion, i.e. women
fitness magazines.
The ads will focused on the eliminating the middle man in your clothing budget and stepping up to the
distinctive style of Liquid Culture. The company logo will also be an important marketing tool in bringing
customers to our website.
4.1 Market Segmentation
Liquid Culture will be focusing on two distinct groups of women that purchase outdoor clothing:

Women 17-25 years of age: Youth drives the market so this is the important group to attract to
the website. They have less money than the older group so we must give them what they want
for less. The key is to have inexpensive selections in each clothing group that have the popular
cut. The company's logo attractiveness to this group can not be stressed strongly enough. The
initial small purchases will grow larger over time.

Women 26-40 years of age: They are the core group that will drive Liquid Culture's success. This
target group is responsible for the growth of outdoor women's wear. They will be harder to pull
into the website. Once there, the key will be promoting the quality, attractiveness
and savings. In addition, we will have to assure that the purchase will fit the way the customer
wants it to. It will be crucial that the return policy is hassle-free and speedy.

Market Analysis
Year 1

Year 2

Year 3

Year 4

Year 5

Potential
Customers

Growth

CAGR

Women
20%
Ages 16-25

6,000,000 7,200,000 8,640,000 10,368,000 12,441,600 20.00%

Women
15%
Ages 26-40

5,000,000 5,750,000 6,612,500 7,604,375 8,745,031 15.00%

Other

0%

Total

17.81% 11,000,000 12,950,000 15,252,500 17,972,375 21,186,631 17.81%

0.00%

Strategy and Implementation Summary

Liquid Culture will win market share in the women's outdoor clothing niche by aggressively pursuing
visibility with its target customers.
5.1 Competitive Edge
Liquid Culture's competitive edge is its focus on the process than on product. The website is just the
endpoint of an entire marketing program to drive customers' interest in Liquid Culture. Though we have
confidence in the quality and attractiveness of our products, we know that building the road to the
website is our most important job.
Larry Wilson's experience with South Face is pivotal to the success of Liquid Culture's website. South
Face's website averaged five million hits a year and is considered one of the most accessible and
attractive websites in the clothing industry. His experience is invaluable in assuring customers'
satisfaction with the shopping experience online.
Larry will introduce a new clothing measurement feature that is fun to use and will reduce customers
confusion on how the clothing will fit. This will increase customer satisfaction and reduce returns.
Maggie Granger will be in charge of the clothing design team. As senior clothing designer for
Manic Woman Clothing, she watched the Manic Woman's sales grow by 20% for the past five
years. Her clothing designs have been praised in the industry and have spawned many imitators. With
Liquid Culture, Maggie is ready to change how quality women's outdoor clothing is sold.
Liquid Culture's agreement with Magic Clothing Company is another strong competitive advantage. Our
design team will work closely with the Magic's Indonesian-based manufacturing facilities. The Magic
Clothing Company will maintain the inventory and will produce sufficient product to meet the planned
demand. This will keep production costs low for products and put a cap on Liquid Culture's overhead.
5.2 Marketing Strategy
Liquid Culture's marketing strategy is a simple one. In women's fitness magazines like Self, Shape and
Strive, Liquid Culture will introduce customers to their products and website. We will also advertise in
CosmoGirl and Ellegirl magazines.

For the first two months, Liquid Culture will offer 10% off for all purchases under 100 and 15% off all
purchases over 100. We will offer the same discount strategy three more times during the year when
new seasonal clothing is introduced.
5.2.1 Pricing Strategy
Liquid Culture's pricing strategy is to pass on most of the store mark-up to the consumer in reduced
price for clothing. This advantage has no negative impact on our sales profit and will also absorb some
of the initial cost of offering discounts during our first three months of operation.
5.3 Sales Strategy
Liquid Culture will launch a 245,000 ad campaign targeted at our core customer groups. The focus of
the ads will be to "keep the money you give to the middleman" and use it to get outdoors and enjoy
life. Liquid Culture's attractive logo will be heavily displayed in these ads. We estimate it will take most
of the year to build our sales to the point where we begin to show a profit.
Liquid Culture will offer discounts at various times of the year to even out seasonality and build initial
awareness of the website.
5.3.1 Sales Forecast
We expect sales to increase at a steady rate for the first year. It will begin slow as we open, but will
quickly pick up as our customer base increases. Liquid Culture will see a sales increase of 38% between
the first and second year. We feel that we can accomplish this steady goal and maintain this amount of
sales.

Sales Forecast
Year 1

Year 2

Year 3

Sales
Clothing

2,170,000 3,000,000 4,300,000

Other

Total Sales

2,170,000 3,000,000 4,300,000

Direct Cost of Sales

Year 1

Clothing

1,249,000 1,800,000 2,580,000

Other

Subtotal Direct Cost of

Sales

1,249,000 1,800,000 2,580,000

Year 2

Year 3

Management Summary
Larry Wilson will manage the marketing team, as well as the development and administration of Liquid
Culture's website. Maggie Granger will be in charge of the clothing design team. She will also manage
the production of the designs by Magic Clothing Company.
6.1 Personnel Plan
Besides Larry and Maggie, Liquid Culture will have a staff of eight:

Three member clothing design team.

Web administrator.

Two member marketing team.

Office manager.

Accountant.

Personnel Plan
Year 1

Year 2

Year 3

Marketing/Website
Director

84,000 90,000 95,000

Design Director

84,000 90,000 95,000

Designers

144,000 156,000 166,000

Web Administrator

48,000 52,000 56,000

Office Manager

36,000 39,000 42,000

Marketing Staff

96,000 104,000 112,000

Accountant

39,600 44,000 48,000

Other

Total People

Total Payroll

531,600 575,000 614,000

Financial Plan
The following is the financial plan for Liquid Culture.
7.1 Break-even Analysis
Our break-even analysis is based on running costs, the costs we incur to keep the business running, not
on theoretical fixed costs that would be relevant only if we were closing. Fixed costs include payroll,
rent, utilities, and marketing costs.

Break-even Analysis
Monthly Revenue Break177,248
even
Assumptions:
Average Percent
Variable Cost

58%

Estimated Monthly Fixed

75,228
Cost
7.2 Projected Profit and Loss
The following table and chart are the projected profit and loss for three years.

Pro Forma Profit and Loss

Year 1

Year 2

Year 3

Sales

2,170,000

3,000,000

4,300,000

Direct Cost of Sales

1,249,000

1,800,000

2,580,000

Other Production Expenses

Total Cost of Sales

1,249,000

1,800,000

2,580,000

Gross Margin

921,000

1,200,000

1,720,000

Gross Margin %

42.44%

40.00%

40.00%

Expenses
Payroll

531,600

575,000

614,000

Sales and Marketing and Other

265,000
Expenses

340,000

440,000

Depreciation

Leased Equipment

Utilities

2,400

2,400

2,400

Insurance

Rent

24,000

24,000

24,000

Payroll Taxes

79,740

86,250

92,100

Other

Total Operating Expenses

902,740

1,027,650

1,172,500

Profit Before Interest and Taxes 18,260

172,350

547,500

EBITDA

18,260

172,350

547,500

Interest Expense

17,574

13,281

8,801

Taxes Incurred

206

47,721

161,610

Net Profit

481

111,349

377,089

Net Profit/Sales

0.02%

3.71%

8.77%

7.3 Projected Cash Flow

The following table and chart are the projected cash flow for three years.

Pro Forma Cash Flow

Year 1

Year 2

Year 3

Cash Received
Cash from Operations
Cash Sales

2,170,000 3,000,000 4,300,000

Subtotal Cash from Operations

2,170,000 3,000,000 4,300,000

Additional Cash Received

Sales Tax, VAT, HST/GST Received 0

New Current Borrowing

New Other Liabilities (interestfree)

New Long-term Liabilities

Sales of Other Current Assets

Sales of Long-term Assets

New Investment Received

Subtotal Cash Received

2,170,000 3,000,000 4,300,000

Expenditures

Year 1

Year 2

Year 3

Expenditures from Operations

Cash Spending

531,600

575,000

614,000

Bill Payments

1,590,840 2,541,460 3,387,998

Subtotal Spent on Operations

2,122,440 3,116,460 4,001,998

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out 0

Principal Repayment of Current

Borrowing

Other Liabilities Principal

Repayment

Long-term Liabilities Principal

Repayment

44,796

44,796

44,796

Purchase Other Current Assets

Purchase Long-term Assets

Dividends

Subtotal Cash Spent

2,167,236 3,161,256 4,046,794

Net Cash Flow

2,764

(161,256) 253,206

Cash Balance

404,264

243,008

496,214

7.4 Projected Balance Sheet

The following is the projected balance sheet for three years.

Pro Forma Balance Sheet

Year 1

Year 2

Year 3

Assets
Current Assets
Cash

404,264 243,008 496,214

Inventory

264,000 380,464 545,332

Other Current Assets 0

Total Current Assets

668,264 623,473 1,041,546

Long-term Assets
Long-term Assets

Accumulated
Depreciation

Total Long-term
Assets

Total Assets

668,264 623,473 1,041,546

Liabilities and Capital Year 1

Year 2

Year 3

Current Liabilities
Accounts Payable

311,080 199,736 285,516

Current Borrowing

Other Current
Liabilities

Subtotal Current
Liabilities

311,080 199,736 285,516

Long-term Liabilities

155,204 110,408 65,612

Total Liabilities

466,284 310,144 351,128

Paid-in Capital

260,000 260,000 260,000

Retained Earnings

(58,500) (58,019) 53,329

Earnings

481

Total Capital

201,981 313,329 690,418

Total Liabilities and

Capital

668,264 623,473 1,041,546

Net Worth

201,981 313,329 690,418

111,349 377,089

7.5 Business Ratios

The following table shows the projected businesses ratios. We expect to maintain healthy ratios for
profitability, risk, and return. These ratios have been determined by the 5137 industry, Women's and
Children's Clothing, as found in the Standard Industry Code (SIC) Index.

Ratio Analysis
Year 1

Year 2

Year 3

Industry
Profile

0.00%

38.25%

43.33%

10.40%

Inventory

39.51%

61.02%

52.36%

34.10%

Other Current Assets

0.00%

0.00%

0.00%

25.70%

Total Current Assets

100.00% 100.00% 100.00% 89.40%

Long-term Assets

0.00%

Total Assets

100.00% 100.00% 100.00% 100.00%

Current Liabilities

46.55%

32.04%

27.41%

40.70%

Long-term Liabilities

23.22%

17.71%

6.30%

9.00%

Total Liabilities

69.78%

49.74%

33.71%

49.70%

Net Worth

30.22%

50.26%

66.29%

50.30%

Sales Growth
Percent of Total Assets

0.00%

0.00%

10.60%

Percent of Sales
Sales

100.00% 100.00% 100.00% 100.00%

Gross Margin

42.44%

40.00%

40.00%

24.80%

Selling, General &

Administrative Expenses

42.42%

36.29%

31.23%

14.80%

Advertising Expenses

11.29%

10.00%

9.30%

0.90%

Profit Before Interest and

Taxes

0.84%

5.75%

12.73%

2.00%

Current

2.15

3.12

3.65

2.36

Quick

1.30

1.22

1.74

1.09

Total Debt to Total Assets

69.78%

49.74%

33.71%

49.70%

Main Ratios

Pre-tax Return on Net Worth 0.34%

50.77%

78.03%

4.90%

Pre-tax Return on Assets

0.10%

25.51%

51.72%

9.70%

Additional Ratios

Year 1

Year 2

Year 3

Net Profit Margin

0.02%

3.71%

8.77%

n.a

Return on Equity

0.24%

35.54%

54.62%

n.a

Inventory Turnover

10.91

5.59

5.57

n.a

Accounts Payable Turnover

6.11

12.17

12.17

n.a

Payment Days

27

38

25

n.a

Total Asset Turnover

3.25

4.81

4.13

n.a

Debt to Net Worth

2.31

0.99

0.51

n.a

Current Liab. to Liab.

0.67

0.64

0.81

n.a

Activity Ratios

Debt Ratios

Liquidity Ratios
Net Working Capital

357,185 423,737 756,030 n.a

Interest Coverage

1.04

12.98

62.21

n.a

Assets to Sales

0.31

0.21

0.24

n.a

Current Debt/Total Assets

47%

32%

27%

n.a

Acid Test

1.30

1.22

1.74

n.a

Sales/Net Worth

10.74

9.57

6.23

n.a

Dividend Payout

0.00

0.00

0.00

n.a

Additional Ratios

Appendix

Sales Forecast
Month Month Month Month Month Month Month Month Month Month Month Month

10

11

12

Sales
Clothi 0 40,0 40,0 60,0 80,0 110,0 140,0 180,0 220,0 250,0 300,0 350,0 400,0
ng
% 00
00
00
00
00
00
00
00
00
00
00
00
Other

0
0
%

Total
Sales

40,0 40,0 60,0 80,0 110,0 140,0 180,0 220,0 250,0 300,0 350,0 400,0
00
00
00
00
00
00
00
00
00
00
00
00

Direct
Cost of
Sales

Month Month Month Month Month Month Month Month Month Month Month Month
1
2
3
4
5
6
7
8
9
10
11
12

Clothi
ng

20,0 20,0 31,0 42,0 58,00 78,00 100,0 120,0 150,0 180,0 210,0 240,0
00
00
00
00
0
0
00
00
00
00
00
00

Other

Subtot
al
Direct
Cost of
Sales

20,0 20,0 31,0 42,0 58,00 78,00 100,0 120,0 150,0 180,0 210,0 240,0
00
00
00
00
0
0
00
00
00
00
00
00

Personnel Plan
Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont
h1
h2
h3
h4
h5
h6
h7
h8
h9
h 10 h 11 h 12
Marketing/Web 0 7,00 7,00 7,00 7,00 7,00 7,00 7,00 7,00 7,00 7,00 7,00 7,00
site Director
% 0
0
0
0
0
0
0
0
0
0
0
0
Design Director

0 7,00 7,00 7,00 7,00 7,00 7,00 7,00 7,00 7,00 7,00 7,00 7,00
% 0
0
0
0
0
0
0
0
0
0
0
0

Designers

0 12,0 12,0 12,0 12,0 12,0 12,0 12,0 12,0 12,0 12,0 12,0 12,0
% 00
00
00
00
00
00
00
00
00
00
00
00

Web
Administrator

0 4,00 4,00 4,00 4,00 4,00 4,00 4,00 4,00 4,00 4,00 4,00 4,00
% 0
0
0
0
0
0
0
0
0
0
0
0

Office Manager

0 3,00 3,00 3,00 3,00 3,00 3,00 3,00 3,00 3,00 3,00 3,00 3,00
% 0
0
0
0
0
0
0
0
0
0
0
0

Marketing Staff

0 8,00 8,00 8,00 8,00 8,00 8,00 8,00 8,00 8,00 8,00 8,00 8,00
% 0
0
0
0
0
0
0
0
0
0
0
0

Accountant

0 3,30 3,30 3,30 3,30 3,30 3,30 3,30 3,30 3,30 3,30 3,30 3,30
% 0
0
0
0
0
0
0
0
0
0
0
0

Other

0
0
%

Total People

Total Payroll

44,3 44,3 44,3 44,3 44,3 44,3 44,3 44,3 44,3 44,3 44,3 44,3
00
00
00
00
00
00
00
00
00
00
00
00

General Assumptions
Month Month Month Month Month Month Month Month Month Month Month Month
1
2
3
4
5
6
7
8
9
10
11
12
Plan
Month

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%

Longterm
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

10

11

12

Pro Forma Profit and Loss

Month Month Month Month Month Month Month Month Month Month Month Month
1
2
3
4
5
6
7
8
9
10
11
12
Sales

40,00 40,00 60,00 80,00 110,0 140,0 180,0 220,0 250,0 300,0 350,0 400,0
0
0
0
0
00
00
00
00
00
00
00
00

Direct
Cost of

20,00 20,00 31,00 42,00 58,00 78,00 100,0 120,0 150,0 180,0 210,0 240,0

Sales

00

00

00

00

00

00

Other
Productio
n
Expenses

Total
Cost of
Sales

20,00 20,00 31,00 42,00 58,00 78,00 100,0 120,0 150,0 180,0 210,0 240,0
0
0
0
0
0
0
00
00
00
00
00
00

Gross
Margin

20,00 20,00 29,00 38,00 52,00 62,00 80,00 100,0 100,0 120,0 140,0 160,0
0
0
0
0
0
0
0
00
00
00
00
00

Gross
Margin %

50.00 50.00 48.33 47.50 47.27 44.29 44.44 45.45 40.00 40.00 40.00 40.00
%
%
%
%
%
%
%
%
%
%
%
%

Expenses
Payroll

44,30 44,30 44,30 44,30 44,30 44,30 44,30 44,30 44,30 44,30 44,30 44,30
0
0
0
0
0
0
0
0
0
0
0
0

Sales and
Marketin
g and
Other
Expenses

30,00 20,00 10,00 40,00 15,00 45,00 15,00 15,00 25,00 10,00 30,00 10,00
0
0
0
0
0
0
0
0
0
0
0
0

Depreciat
ion

Leased
Equipme
nt

Utilities

200

200

200

200

200

200

200

200

200

200

200

200

Insurance

Rent

2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000

Payroll
Taxes

15
6,645 6,645 6,645 6,645 6,645 6,645 6,645 6,645 6,645 6,645 6,645 6,645
%

Other

Total
Operatin
g

83,14 73,14 63,14 93,14 68,14 98,14 68,14 68,14 78,14 63,14 83,14 63,14
5
5
5
5
5
5
5
5
5
5
5
5

Expenses
Profit
Before
Interest
and
Taxes

(63,1 (53,1 (34,1 (55,1 (16,1 (36,1 11,85 31,85 21,85 56,85 56,85 96,85
45)
45)
45)
45)
45)
45)
5
5
5
5
5
5

EBITDA

(63,1 (53,1 (34,1 (55,1 (16,1 (36,1 11,85 31,85 21,85 56,85 56,85 96,85
45)
45)
45)
45)
45)
45)
5
5
5
5
5
5

Interest
Expense

1,636 1,604 1,573 1,542 1,511 1,480 1,449 1,418 1,387 1,356 1,324 1,293

Taxes
Incurred

(19,4 (16,4 (10,7 (17,0 (5,29 (11,2

16,65 16,65 28,66
3,122 9,131 6,140
34)
25)
16)
06)
7)
88)
0
9
8

Net Profit

(45,3 (38,3 (25,0 (39,6 (12,3 (26,3

21,30 14,32 38,85 38,87 66,89
7,284
46)
25)
03)
81)
59)
38)
6
8
0
1
3

Net
Profit/Sal
es

12.95 11.11 16.72

113.37 95.81 41.67 49.60 11.24 18.81 4.05% 9.68% 5.73%
%
%
%
%
%
%
%
%
%

Pro Forma Cash Flow

Month Month Month Month Month Month Month Month Month Month Month Month
1
2
3
4
5
6
7
8
9
10
11
12
Cash
Received
Cash
from
Operatio
ns
Cash
Sales

40,00 40,00 60,00 80,00 110,0 140,0 180,0 220,0 250,0 300,0 350,0 400,0
0
0
0
0
00
00
00
00
00
00
00
00

Subtotal
Cash
from
Operatio
ns

40,00 40,00 60,00 80,00 110,0 140,0 180,0 220,0 250,0 300,0 350,0 400,0
0
0
0
0
00
00
00
00
00
00
00
00

Additiona

l Cash
Received
Sales Tax,
VAT,
0.00
0
HST/GST %
Received

New
Current
Borrowin
g

New
Other
Liabilities
(interestfree)

New
Longterm
Liabilities

Sales of
Other
Current
Assets

Sales of
Longterm
Assets

New
Investme
nt
Received

Subtotal
Cash
Received

40,00 40,00 60,00 80,00 110,0 140,0 180,0 220,0 250,0 300,0 350,0 400,0
0
0
0
0
00
00
00
00
00
00
00
00

Expendit
ures

Month Month Month Month Month Month Month Month Month Month Month Month
1
2
3
4
5
6
7
8
9
10
11
12

Expendit

ures from
Operatio
ns
Cash
Spending

44,30 44,30 44,30 44,30 44,30 44,30 44,30 44,30 44,30 44,30 44,30 44,30
0
0
0
0
0
0
0
0
0
0
0
0

Bill
Payments

2,102

Subtotal
Spent on
Operatio
ns

46,40 106,3 78,95 98,25 132,0 141,5 188,6 197,7 222,2 269,5 295,8 344,8
2
79
1
9
54
72
23
08
93
21
16
61

62,07 34,65 53,95 87,75 97,27 144,3 153,4 177,9 225,2 251,5 300,5
9
1
9
4
2
23
08
93
21
16
61

Additiona
l Cash
Spent
Sales Tax,
VAT,
HST/GST
Paid Out

Principal
Repayme
nt of
Current
Borrowin
g

Other
Liabilities
Principal
Repayme
nt

Longterm
Liabilities
Principal
Repayme
nt

3,733 3,733 3,733 3,733 3,733 3,733 3,733 3,733 3,733 3,733 3,733 3,733

Purchase
Other
Current

Assets
Purchase
Longterm
Assets

Dividends

Subtotal
Cash
Spent

50,13 110,1 82,68 101,9 135,7 145,3 192,3 201,4 226,0 273,2 299,5 348,5
5
12
4
92
87
05
56
41
26
54
49
94

Net Cash
Flow

(10,1 (70,1 (22,6 (21,9 (25,7 (5,30 (12,3 18,55 23,97 26,74 50,45 51,40
35)
12)
84)
92)
87)
5)
56)
9
4
6
1
6

Cash
Balance

391,3 321,2 298,5 276,5 250,7 245,4 233,1 251,6 275,6 302,4 352,8 404,2
65
53
70
78
91
87
30
89
63
08
59
64

Pro Forma Balance Sheet

Mont Mont Month Month Month Month Month Month Month Month Mont Mont
h1
h2
3
4
5
6
7
8
9
10
h 11 h 12

Assets

Starti
ng
Balan
ces

Current
Assets
Cash

401, 391, 321, 298,5 276,5 250,7 245,4 233,1 251,6 275,6 302,4 352, 404,
500 365 253 70
78
91
87
30
89
63
08
859 264

Inventor
0
y

22,0 22,0 34,10 46,20 63,80 85,80 110,0 132,0 165,0 198,0 231, 264,
00
00
0
0
0
0
00
00
00
00
000 000

Other
Current 0
Assets

Total
401, 413, 343, 332,6 322,7 314,5 331,2 343,1 383,6 440,6 500,4 583, 668,
Current
500 365 253 70
78
91
87
30
89
63
08
859 264
Assets
Long-

term
Assets
Longterm
Assets

Accumul
ated
0
Deprecia
tion

Total
Longterm
Assets

Total
Assets

401, 413, 343, 332,6 322,7 314,5 331,2 343,1 383,6 440,6 500,4 583, 668,
500 365 253 70
78
91
87
30
89
63
08
859 264

Liabilitie
s and
Capital

Mont Mont Month Month Month Month Month Month Month Month Mont Mont
h1
h2
3
4
5
6
7
8
9
10
h 11 h 12

Current
Liabilitie
s
Account
s
0
Payable

60,9 32,8 51,04 84,56 92,47 139,2 147,5 170,5 216,8 241,5 289, 311,
45
90
3
5
1
36
29
14
93
22
834 080

Current
Borrowi 0
ng

Other
Current
0
Liabilitie
s

Subtotal
Current
0
Liabilitie
s

60,9 32,8 51,04 84,56 92,47 139,2 147,5 170,5 216,8 241,5 289, 311,
45
90
3
5
1
36
29
14
93
22
834 080

Longterm

200, 196, 192, 188,8 185,0 181,3 177,6 173,8 170,1 166,4 162,6 158, 155,

Liabilitie 000
s

267

534

01

68

35

02

69

36

03

70

937

204

Total
200, 257, 225, 239,8 269,6 273,8 316,8 321,3 340,6 383,2 404,1 448, 466,
Liabilitie
000 212 424 44
33
06
38
98
50
96
92
771 284
s
Paid-in 260, 260, 260, 260,0 260,0 260,0 260,0 260,0 260,0 260,0 260,0 260, 260,
Capital 000 000 000 00
00
00
00
00
00
00
00
000 000
Retaine
(58,5 (58,5 (58,5 (58,5 (58,5 (58,5 (58,5 (58,5 (58,5 (58,5 (58,5 (58,5 (58,5
d
00) 00) 00) 00)
00)
00)
00)
00)
00)
00)
00)
00) 00)
Earnings
Earnings 0

(45,3 (83,6 (108, (148, (160, (187, (179, (158, (144, (105, (66,4
481
46) 71) 674) 355) 714) 052) 767) 461) 134) 284) 13)

Total
201, 156, 117, 92,82 53,14 40,78 14,44 21,73 43,03 57,36 96,21 135, 201,
Capital 500 154 829 6
5
6
8
3
9
6
6
087 981
Total
Liabilitie 401, 413, 343, 332,6 322,7 314,5 331,2 343,1 383,6 440,6 500,4 583, 668,
s and
500 365 253 70
78
91
87
30
89
63
08
859 264
Capital
Net
Worth

201, 156, 117, 92,82 53,14 40,78 14,44 21,73 43,03 57,36 96,21 135, 201,
500 154 829 6
5
6
8
3
9
6
6
087 981