Simone Luster International Business Dr. Zafar A. Bokhari Chicago State University December 7th !

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Intro$uction

It is the mission of Manisco Imports to provide complete import/export brokerage services including purchase contracts, shipping, warehousing, and delivery scheduling. The company will concentrate on special and cultural imports from Germany and candinavia to the uni!ue "avarian town of #eavenworth, $%. Manisco also plans to provide trade consultation services to newly started farms created under the &uget 'onsumers 'o(op)s *armland *und initiative. %he Com&any Manisco Imports will be a limited liability partnership registered in the state of +elaware for tax purposes. Its founder is Mr. *rank 'urtiss, a former master distributor with *isher(Mills. Mr. 'urtiss has brought together a highly respected group of individuals who are well versed in foreign trade processes. The company has a limited number of private investors and does not plan to go public. The company has its main offices in $enatchee, $ashington. The facilities include conference rooms and office spaces. The company expects to begin offering its services in ,une. %he Services Manisco offers complete import/export brokerage services plus inventory consulting services. %s mentioned previously, this includes the following upplier/buyer identification

&urchasing, contracting and consulting hipping

$arehousing

 +elivery It must be noted that Manisco does not posess any warehousing facilities and intends to outsource this particular service. $e expect to earn revenues by charging a commission based on the value of goods moved per order. %he 'arket Manisco will be concentrating on servicing .ust two types of clients, the gift shops of #eavenworth, $ashington, and the farmers of the &uget 'onsumers 'o(op /&''0. *or both market segments, we have secured exclusive contracts or endorsements putting us in a uni!ue position to service these niche firms and their needs. &rofitability in these two markets is expected to be excellent, especially in the import section as #eavenworth draws in over a million tourists each year. $e expect profitability in the co(op end to be much slower in the first five years of operation, but it too will increase steadily. (inancial Consi$erations tart(up assets re!uired include expenses and cash needed to support operations until revenues reach an acceptable level. Most of the company)s liabilities will come from outside private investors and management investment, however, we have obtained current borrowing from "ank of %merica 'ommercial Investments, the principal to be paid off in two years. % long(term loan through 'harter "ank of 1ieurich will be paid off in ten years. The company expects to reach profitability in year 2 and does not anticipate any serious cash flow problems. $e expect that about 3,455 units per month will guarantee a break( even point.

6.6 Mission It is the mission of Manisco Imports to provide complete import/export consultation and brokerage services including purchase contracts, shipping, warehousing, and delivery. The company will concentrate on special and cultural imports from Germany and candinavia to the uni!ue "avarian town of #eavenworth, $%. Manisco also plans to export apples and other produce by newly started farms created under the &uget 'onsumers 'o(op)s *armland *und initiative. It is our long(term goal to become the preferred import company for the uni!ue tourist town of #eavenworth. Manisco understands that the import shops and restaurants in #eavenworth have special needs of most uni!ue gifts for the million tourists that visit the town annually. Manisco Imports also understands that the newly launched farms of the &'' farmland fund initiative also have higher costs than most competitors and will need to export their produce at a cost that provides sufficient profit. Manisco Imports has a

combined 34 years of experience working in the import/export business. 7ur philosophy is in creating a long(term relationship with clients so that the delivery of their products becomes a seamless experience that promotes loyalty.

6.2 8eys to uccess Manisco Imports) keys to long(term and profitability are as follows +ifferentiate our services to our niche clients so that they reali9e that we are better able to serve their needs than a more generic competitor. 8eeping close contact with clients and establishing a well functioning long(term relationship with them to generate repeat business and create a top notch reputation. :stablish a comprehensive service experience for our clients that includes consultation, product/client search, purchasing contracts, warehousing, shipping, delivery, and follow up service analysis. 6.3 7b.ectives The three year goals for Manisco Imports are the following %chieve break(even by year 2. ;etain our long(term contracts with local import shops in #eavenworth, $%, through excellent customer service. "ecome the premier importer of German and candinavian specialty products in #eavenworth, and become the prime exporter of apples and other produce for the farmers of the &'' *armland *und initiative.

'ompany ummary Manisco Imports will be a limited liability partnership registered in the state of +elaware for tax purposes. Its founder is Mr. *rank 'urtiss, a former master distributor with *isher( Mills. Mr. 'urtiss has brought together a highly respected group of individuals who are well versed in the various aspects of foreign trade processes. The company has a limited number of private investors and does not plan to go public. The company has its main offices in $enatchee, $ashington. The facilities include conference rooms and office spaces. The company expects to begin offering its services in ,une. The company)s main clients will be small import shops in the #eavenworth area and start( up farms throughout the state. "y focusing on small niche market entrepreneurs, we believe we will be able to provide superior and more efficient service than other import/export firms. 2.6 'ompany 7wnership The company will have a number of outside private investors who will own 2<= of the company)s shares. The rest will be owned by the senior management including Mr. *rank 'urtiss, /24=0, Ms. >annah Mills /25=0, Mr. teve Iltheus /25=0, and Mr. &ierce "olm /?=0. %ll other financing will come from loans.

2.2 tart(up ummary tart(up assets re!uired include expenses and cash needed to support operations until revenues reach an acceptable level. Most of the company)s liabilities will come from outside private investors and management investment, however, we have obtained current

borrowing from "ank of %merica 'ommercial Investments, the principal to be paid off in two years. % long(term loan through 'harter "ank of 1ieurich will be paid off in ten years.

Start)u& *e+uirements
Start)u& ,-&enses #egal Insurance Atilities ;ent %ccounting and bookkeeping fees :xpensed e!uipment %dvertising 7ther %otal Start)u& ,-&enses Start)u& Assets 'ash ;e!uired 7ther 'urrent %ssets @3?,445 @64,555 @2,555 @6,555 @255 @2,555 @2,555 @2,555 @B,555 @?,555 . "/ !!

#ong(term %ssets %otal Assets %otal *e+uirements

@65,555 .0#/11! .23/71!

Start)u& (un$ing
tart(up :xpenses to *und tart(up %ssets to *und %otal (un$ing *e+uire$ Assets 1on(cash %ssets from tart(up 'ash ;e!uirements from tart(up %dditional 'ash ;aised 'ash "alance on tarting +ate %otal Assets Liabilities an$ Ca&ital #iabilities 'urrent "orrowing #ong(term #iabilities %ccounts &ayable /7utstanding "ills0 7ther 'urrent #iabilities /interest(free0 %otal Liabilities 'apital &lanned Investment Mr. *rank 'urtiss Ms. >annah Mills Mr. teve Iltheus Mr. &ierce "olm 7thers %dditional Investment ;e!uirement %otal 4lanne$ Investment #oss at tart(up / tart(up :xpenses0 %otal Ca&ital %otal Ca&ital an$ Liabilities %otal (un$ing @64,555 @63,555 @63,555 @4,555 @<,<45 @5 .1#/71! /@26,2550 .# /11! .0#/11! .23/71! @D,555 @62,555 @2,555 @?,555 .#"/!!! @24,555 @3?,445 @5 @3?,445 .0#/11! @26,255 @C3,445 .23/71!

Services

Manisco offers complete import/export brokerage services plus inventory consulting services. %s mentioned previously, this includes the following upplier/buyer identification

&urchasing process contracting and consulting hipping setup

$arehousing arrangements +elivery It must be noted that Manisco does not posess any warehousing facilities and intends to outsource this particular service.This means that we will have virtually no variable costs associated with unit sales. Manisco will be importing such things as steins, figurines, 'hristmas gifts, germanic foodstuffs, cuckoo clocks, and nutcrackers from Germany, where Mr. 'urtiss has had extensive experience. In addition Manisco will be importing candinavian wool products such as sweaters and other gift items. The company will be exporting produce, primarily apples, to :urope. 7ur revenue model is based on a commission rate charged to our clients scaled on the dollar value of goods moved per order. Market %nalysis ummary Manisco will be concentrating on servicing .ust two types of clients, the gift shops of #eavenworth, $ashington, and the farmers of the &uget 'onsumers 'o(op. *or both market segments, we have secured exclusive contracts or endorsements that put us in a uni!ue position to service these niche firms and their more demanding needs. &rofitability in these two markets is expected to be excellent, especially in the import

segment as #eavenworth draws in over a million tourists each year. $e expect profitability in the co(op end to be much slower in the first five years of operation, but will increase steadily. B.6 Market egmentation Manisco intends to be a small import/export company focused on clients serving a niche market. >aving secured a very advantageous contract with &'' and gained the endorsement of the #eavenworth city council, we plan to focus exclusively on these market segments. "oth have such high potential that we do not see a need to expand our market reach for the foreseeable future.

'arket Analysis
5ear " 4otential Customers #eavenworth businesses &ugent 'onsumer 'o(op farms %otal #.128 "!0 ""! ""3 ""2 " #.128 6ro7th 6= 4= 3B <2 3B <C 3B ?5 3B ?B 3B ?? 5ear 5ear # 5ear 3 5ear 1 CA6* 5.55= 4.6B=

B.2 ervice "usiness %nalysis Im&orts #eavenworth sits in one of the most beautiful areas of $ashington tate. The area was settled in the 6?C5)s, but it wasn)t until the end of the century that the town began to blossom with the arrival of the rail line. The Great 1orthern ;ailway 'ompany)s tracks through #eavenworth brought with them opportunities for work, commerce and a new economy. >owever, when the Great 1orthern ;ailway 'ompany pulled out of

#eavenworth, the town was converted from a bustling, thriving hub of commerce into a hollow, empty community. *or more than thirty years, #eavenworth lived on the brink of extinction. "ut in the early 6DC5)s, everything changed. In a last(chance effort to turn their precarious situation around, the leaders of the community decided to change #eavenworth)s appearance, hoping to bring tourism into the area. Asing the beautiful backdrop of the surrounding %lpine hills to their advantage, the town agreed to remodel their hamlet in the form of a "avarian village. The entire community rallied to create the illusion of "avaria in the middle of $ashington state. "esides the complete renovation of the downtown area, community members worked to begin a series of festivals. The %utumn #eaf *estival, Maifest and the extremely popular 'hristmas #ighting 'eremony were the first of many attractions #eavenworth offered to tourists. ince the change to a "avarian motif, #eavenworth has become a pillar of the tourism industry in the &acific 1orthwest. Today, more than a million tourists come to #eavenworth yearly, each visitor finding their own love affair with the community. The town brings in an average 2B million dollars in revenue each year, and since much of the town)s profits are based on the sale of alpine and candinavian gifts, the opportunity for a company such as Manisco is almost unmatched. In 2552 a town meeting of the principal shop owners in #eavenworth was held concerning the present contracts with the community)s main importer, +eutsche Gifts. The previously good relations between the community and the import firm had soured due to rising costs and unreliable service. The result of the meeting was to look for another importer better able to meet the local needs once the current contract expired. Mr. *rank 'urtiss successfully bid for the contract, and the idea of Manisco was born.

,-&orts Manisco has made arrangements to export produce from member farms established by the &uget 'onsumers 'o(op *armland *und. The *und works to secure and preserve threatened farmland in $ashington tate and move it into organic production. The *und)s primary focus is on large, functional landscapes of local, regional and statewide importance so protection can be extended to biodiversity and wildlife habitat as well as to farmers and farming communities. The *und is an independent, community(supported non(profit land trust founded in 6DDD. The *und has already rescued a half do9en farms within the state and plans to increase these pro.ects so that by 255< there will be at least 3C farms that come under the fund)s protection. In addition, approximately C5 farms belonging to the 'o(op have expressed interest in contracting with Manisco. B.2.6 'ompetition and "uying &atterns Com&etition 'ompetition includes all potential importing firms that serve small enterprises such as farms and specialty gift shops. &ractically speaking, this means the largest import/export firms such as *isher(Mills, :agle +istributing, and other large, nationwide companies will not compete with us. Most other companies tend to be regionally focused. The foreign trade industry is highly fragmented, with a large number of small companies that mainly cater to small firms and a few large companies that seek the largest contracts from companies such as Microsoft, GM, etc. This makes competition within the industry very intense. Through our niche strategy we intend to avoid competition and its drawbacks such as price wars, etc.

Buying &atterns an$ nee$s 'ompanies usually enter into contracts with import/export firms based on a firm)s reputation for professionalism and service. $ith no proven track record, a star(up import/export company obtains a Egood reputationE through its personnel, people who have experience in other businesses in the industry. &rice, reliability and scope are the driving factors for accepting contracts, especially if the import/export company is small. 7ur niche clients have different needs than most other firms. 7ur import clients need to have relatively small numbers of expensive and fragile products moved from :urope to local warehouses in $enatchee and #eavenworth. Most of these items are handmade so handling is a special issue. In addition, the small companies and shops in #eavenworth depend a great deal on their import agents to alert them to new and uni!ue product introductions overseas. 7n the other end, the farms belonging to the &'' need to keep export costs as low as possible since many of them are start(up ventures with initially high overhead. Fuite a few trade firms do not accept these types of contracts and leave it to the co(ops to create their own exporting ventures. This can lead to higher costs as most co(ops do not have the core competencies in import/export issues.

Strategy and Implementation Summary 7ur firm)s business strategy is to enter into a focused or niche market where it can offer a higher standard of service to its speciali9ed clients. This will allow us to charge a slightly higher fees to our clients for these differentiated services. 5.1 Sales Strategy

Manisco intends to develop sales by establishing close contact with potential clients. $e will begin by offering a free consultation in terms of overall cost, service, and delivery. In addition, we intend to promote our management team)s extensive experience both with German gift manufacturers and artisans, and our knowledge of the produce trade environment to draw in our target market segments.

5.1.1 Sales Forecast ales are based on the various contracts we anticipate ac!uiring in the two market segments. ;evenues consist of a commission rate charged to our clients based on the dollar amount of goods moved and include pro.ected average costs plus an undisclosed profit margin. ales are expected to vary somewhat month to month, but are only slightly cyclical on the import end. The exports are expected to be highly cyclical. The company does not have any significant direct costs of sales.

Sales (orecast
5ear " Sales #eavenworth imports &'' farm exports %otal Sales Direct Cost of Sales #eavenworth imports &'' farm exports Subtotal Direct Cost of Sales @62<,555 @33,555 ."0!/!!! 5ear " @5 @5 .! @6B4,555 @4C,555 . !"/!!! 5ear @5 @5 .! @6?D,555 @<<,555 . 00/!!! 5ear # @5 @5 .! 5ear 5ear #

4.2 Marketing trategy Manisco intends to leverage its contacts with the #eavenworth city council and the &uget 'onsumers 'o(op in order to draw in new clients. The city council works very closely with local businesses in facilitating all aspects of business management in order to keep tourism flowing. "ecause of this, Manisco has already signed contracts with nine #eavenworth businesses and we expect to gain a dominant market share within the town. The &'' will be recommending Manisco Imports, Inc. to its new farmers as long as we

can keep shipping costs within accepted limits. Therefore we expect to have a large proportion of member farmers use our services. Management ummary 'ompany officers include our &resident, Mr. *rank 'urtiss, our head of exports Ms. >annah Mills, and our head of imports, Mr. teve Iltheus. C.6 &ersonnel Manisco)s management brings to the company strong capabilities in all aspects of trade relations, logistics, contracting and selling. Mr. *rank 'urtiss is a former master distributor with *isher(Mills, one of the nation)s largest import/export firms. +uring his 65 years with *isher(Mills he worked exclusively on trade contracts with Germany. In 6DDC Mr. 'urtiss accepted a position with :agle +istributors as a department head. "y introducing %merican wines into eastern :urope and the former oviet republics he demonstrated his flair for opening new markets. Mr. 'urtiss has an M"% in finance and an " in International ;elations. Ms. >annah Mills graduated with honors from the Aniversity of 7regon, having earned a bachelors degree in marketing in 6D??. *rom 6D??(6DDB Ms. Mills worked for tanford +istributors working with canning companies in the midwest region. In 6DD4 she went to work for %nderson 'onsulting in their International Trade division. *our years later, Ms. Mills became vice president of %.G. Imports.

4ersonnel 4lan
5ear " Mr. *rank 'urtiss ( &resident @3C,555 5ear @3C,555 5ear # @B4,555

Mrs. >annah Mills Mr. teve Iltheus 7ther %otal 4eo&le %otal 4ayroll

@3C,555 @2B,555 @5 # .90/!!!

@3C,555 @3C,555 @5 # ."!2/!!!

@B4,555 @3C,555 @5 # ." 0/!!!

*inancial &lan 7ur financial plan anticipates one year of negative profits as we gain sales volume. $e have enough investment to cover these losses, and have an additional credit line available if sales do not match predictions. <.6 Important %ssumptions $e are assuming approximately 45= sales on credit and average interest rates of 65=. These are considered to be conservative in case our predictions are erroneous. ince Manisco is an import/export broker, the firm has no variable costs associated with it.

6eneral Assum&tions
5ear " &lan Month 'urrent Interest ;ate #ong(term Interest ;ate Tax ;ate :ther 6 65.55= 65.55= 35.55= ! 5ear 2 65.55= 65.55= 35.55= ! 5ear # 3 65.55= 65.55= 35.55= !

<.2 "reak(even %nalysis 7ur break(even analysis is based on the assumptions that our gross margin is 655=. In other words, we will have insignificant direct cost of sales. ince each market segment is so completely different, it is difficult to assign an average per unit revenue figure.

>owever, it is believed that during the first three years, average revenue per unit per month will be about @B.55, due to the fact that, initially, we may be working with smaller companies pro.ects. $e expect that about 3,455 units per month will guarantee break even.

Break)even Analysis
Monthly ;evenue "reak(even Assum&tions; %verage &ercent Gariable 'ost ,stimate$ 'onthly (i-e$ Cost 5= ."3/!07 @6B,5C<

<.3 &ro.ected &rofit and #oss The following table itemi9es our revenues and associated costs. $e expect to be paying higher costs in marketing and advertising than other companies as we attempt to build sales volume. $e expect monthly profits to begin in %pril 255B and yearly profits to occur in 2554.

4ro (orma 4rofit an$ Loss

5ear " Sales +irect 'ost of ales 7ther 'osts of ales %otal Cost of Sales ."0!/!!! @5 @5 .! 5ear . !"/!!! @5 @5 .! 5ear # . 00/!!! @5 @5 .!

Gross Margin Gross Margin = ,-&enses &ayroll ales and Marketing and 7ther :xpenses +epreciation ;ent Atilities Insurance &ayroll Taxes Travel 7ther %otal :&erating ,-&enses &rofit "efore Interest and Taxes :"IT+% Interest :xpense Taxes Incurred <et 4rofit <et 4rofit?Sales

@6C5,555 655.55= @DC,555 @?,B55 @5 @62,555 @3,C55 @3,555 @6B,B55 @2B,255 @<,255 ."02/2!! /@?,?550 /@?,?550 @2,534 @5 =."!/2#1> )0.778

@256,555 655.55= @65?,555 @?,555 @5 @62,555 @3,C55 @3,555 @6C,255 @62,555 @?,555 ."7!/2!! @35,255 @35,255 @6,?25 @?,46B ."9/200 9.228

@2CC,555 655.55= @62C,555 @?,555 @5 @63,555 @B,555 @3,555 @6?,D55 @65,555 @65,555 ."9 /9!! @<3,655 @<3,655 @6,C55 @26,B45 .1!/!1! "2.2 8

<.B &ro.ected 'ash *low The following is our cash flow table and chart. $e do not expect to have any short(term cash flow problems even though we will be operating at a loss for the first year. 7ur short(term loan will be repaid in three e!ual payments in 255B(255C. 7ur long(term loan will be paid off in ten years.

4ro (orma Cash (lo7

5ear " Cash *eceive$ 'ash from 7perations 'ash ales 'ash from ;eceivables Subtotal Cash from :&erations %dditional 'ash ;eceived ales Tax, G%T, > T/G T ;eceived 1ew 'urrent "orrowing 1ew 7ther #iabilities /interest(free0 1ew #ong(term #iabilities ales of 7ther 'urrent %ssets ales of #ong(term %ssets 1ew Investment ;eceived Subtotal Cash *eceive$ ,-&en$itures :xpenditures from 7perations 'ash pending "ill &ayments Subtotal S&ent on :&erations @DC,555 @<5,2B< ."00/ 37 @65?,555 @<3,<66 ."2"/7"" @62C,555 @??,4C? . "3/102 @5 @5 @5 @5 @5 @5 @5 ."3 /707 5ear " @5 @5 @5 @5 @5 @5 @5 ."90/123 5ear @5 @5 @5 @5 @5 @5 @5 . 12/999 5ear # @?5,555 @C2,<C< ."3 /707 @655,455 @DC,5?B ."90/123 @633,555 @624,DDD . 12/999 5ear 5ear #

%dditional 'ash pent ales Tax, G%T, > T/G T &aid 7ut &rincipal ;epayment of 'urrent "orrowing 7ther #iabilities &rincipal ;epayment #ong(term #iabilities &rincipal ;epayment &urchase 7ther 'urrent %ssets &urchase #ong(term %ssets +ividends Subtotal Cash S&ent <et Cash (lo7 Cash Balance @5 @5 @5 @6,255 @5 @5 @B,555 ."7"/337 =. 2/02!> .9/209 @5 @2,555 @6,555 @6,255 @5 @5 @65,555 ."91/9"" .07# ."!/13# @5 @5 @6,555 @6,255 @5 @5 @B2,555 . 12/702 . #" ."!/773

<.4 &ro.ected "alance heet The following table is the &ro.ect "alance heet for Manisco Imports.

4ro (orma Balance Sheet

5ear " Assets 'urrent %ssets 'ash %ccounts ;eceivable 7ther 'urrent %ssets %otal Current Assets #ong(term %ssets #ong(term %ssets %ccumulated +epreciation %otal Long)term Assets %otal Assets Liabilities an$ Ca&ital 'urrent #iabilities %ccounts &ayable 'urrent "orrowing 7ther 'urrent #iabilities Subtotal Current Liabilities #ong(term #iabilities %otal Liabilities &aid(in 'apital @C,4?? @D,555 @?,555 . #/122 @65,?55 .#3/#22 @43,<45 @C,566 @<,555 @<,555 . !/!"" @D,C55 . 9/0"" @43,<45 @<,3D3 @<,555 @C,555 . !/#9# @?,B55 . 2/79# @43,<45 @65,555 @5 ."!/!!! .1 /"!# 5ear " @65,555 @5 ."!/!!! .17/"9 5ear @65,555 @5 ."!/!!! .03/3 3 5ear # @D,?CD @6<,233 @64,555 .3 /"!# @65,4B3 @26,CBD @64,555 .37/"9 @65,<<B @2?,C45 @64,555 .13/3 3 5ear 5ear #

;etained :arnings :arnings %otal Ca&ital %otal Liabilities an$ Ca&ital <et @orth

/@24,2550 /@65,?340 ."7/7"1 .1 /"!# ."7/7"1

/@BC,5340 @6D,?CC . 7/12" .17/"9 . 7/12"

/@C?,6CD0 @45,545 .#1/0#" .03/3 3 .#1/0#"

<.C "usiness ;atios $e have included industry standard ratios from the trade consultant industry for comparison. 7ur 1%I' industry class is currently Miscellaneous 1ondurable Goods Merchant $holesale ( B2BDD5. 7ur pro.ections indicate a healthy company that will be able to obtain and retain long(term profitability.

*atio Analysis
5ear " ales Growth 4ercent of %otal Assets %ccounts ;eceivable 7ther 'urrent %ssets Total 'urrent %ssets #ong(term %ssets %otal Assets 'urrent #iabilities #ong(term #iabilities Total #iabilities <et @orth 4ercent of Sales ales Gross Margin elling, General H %dministrative :xpenses %dvertising :xpenses &rofit "efore Interest and Taxes 'ain *atios 'urrent Fuick Total +ebt to Total %ssets 6.<? 6.<? CC.55= 2.3C 2.3C 46.<<= 2.C< 2.C< BB.CD= 6.?? 6.B? 3.B6= 655.55= 655.55= 65C.<<= 5.55= (4.45= 655.55= 655.55= D5.62= 5.55= 64.52= 655.55= 655.55= ?6.6?= 5.55= 2<.B?= 655.55= 655.55= ?4.36= 6.52= 6.D5= 33.5?= 2?.<D= ?5.?6= 6D.6D= "!!.!!8 B4.2<= 25.<3= CC.55= #3.!!8 3<.?4= 2C.23= ?2.42= 6<.B?= "!!.!!8 3B.DD= 6C.<D= 46.<<= 32. #8 BB.B<= 23.2?= ?B.B?= 64.42= "!!.!!8 36.C4= 63.5B= BB.CD= 11.#"8 2C.?5= B3.D4= <4.<C= 2B.2B= "!!.!!8 36.<?= 6<.2C= BD.5B= 1!.908 5.55= 5ear 24.C3= 5ear # 32.3B= In$ustry 4rofile C.D?=

&re(tax ;eturn on 1et $orth &re(tax ;eturn on %ssets A$$itional *atios 1et &rofit Margin ;eturn on :!uity Activity *atios %ccounts ;eceivable Turnover 'ollection +ays %ccounts &ayable Turnover &ayment +ays Total %sset Turnover Debt *atios +ebt to 1et $orth 'urrent #iab. to #iab. Li+ui$ity *atios 1et $orking 'apital Interest 'overage A$$itional *atios %ssets to ales 'urrent +ebt/Total %ssets %cid Test ales/1et $orth Divi$en$ 4ayout

(C6.6C= (25.?5= 5ear " (C.<<= (C6.6C= B.CB 4C 66.3C 2? 3.5< 6.DB 5.CD @6?,464 (B.32 5.33 B4= 6.54 D.53 !.!!

652.D5= BD.C2= 5ear D.??= <2.53= B.CB <6 62.6< 36 3.46 6.5< 5.C? @2<,6?6 6C.4D 5.2? 34= 6.2? <.2D !.1!

255.C<= 665.D?= 5ear # 6?.?2= 6B5.B<= B.CB CD 62.6< 2< B.63 5.?6 5.<6 @3B,536 B4.CD 5.2B 32= 6.2C <.B< !.23

44.<?= <.<2= n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a

%ppendix
Sales (orecast
'ont h" Sales #eavenworth imports 5= @66,5 55 &'' farm exports 5= @5 @63,5 55 @5 @63,5 55 @5 @62,5 55 @5 @65,5 55 @5 @?,55 5 @2,55 5 %otal Sales .""/! !! Direct Cost of Sales 'ont h" #eavenworth imports &'' farm exports @5 @5 ."#/! !! 'ont h @5 @5 ."#/! !! 'ont h# @5 @5 ." /! !! 'ont h3 @5 @5 ."!/! !! 'ont h1 @5 @5 ."!/! !! 'ont h0 @5 @5 @62,5 55 @B,55 5 ."0/! !! 'ont h7 @5 @5 @D,55 5 @B,55 5 ."#/! !! 'ont h2 @5 @5 @?,55 5 @4,55 5 ."#/! !! 'ont h9 @5 @5 @D,55 5 @4,55 5 ."3/! !! 'ont h "! @5 @5 @65,5 55 @C,55 5 ."0/! !! 'ont h "" @5 @5 @5 @5 'onth " ."9/!!! @<,555 @62,555 'ont h 'ont h# 'ont h3 'ont h1 'ont h0 'ont h7 'ont h2 'ont h9 'ont h "! 'ont h "" 'onth "

Subtotal Direct Cost of Sales

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4ersonnel 4lan
'o nth " Mr. *rank 'urtiss ( &resident Mrs. >annah Mills 5= 5= @3,5 55 @3,5 55 Mr. teve Iltheus 5= @2,5 55 7ther %otal 4eo&le %otal 4ayroll 5= !8 @5 # .2/! !! @3,5 55 @3,5 55 @2,5 55 @5 # .2/! !! 'o nth 'o nth # @3,5 55 @3,5 55 @2,5 55 @5 # .2/! !! 'o nth 3 @3,5 55 @3,5 55 @2,5 55 @5 # .2/! !! 'o nth 1 @3,5 55 @3,5 55 @2,5 55 @5 # .2/! !! 'o nth 0 @3,5 55 @3,5 55 @2,5 55 @5 # .2/! !! 'o nth 7 @3,5 55 @3,5 55 @2,5 55 @5 # .2/! !! 'o nth 2 @3,5 55 @3,5 55 @2,5 55 @5 # .2/! !! 'o nth 9 @3,5 55 @3,5 55 @2,5 55 @5 # .2/! !! 'o nth "! @3,5 55 @3,5 55 @2,5 55 @5 # .2/! !! 'o nth "" @3,5 55 @3,5 55 @2,5 55 @5 # .2/! !! @5 # .2/!!! @2,555 @3,555 @3,555 'onth "

6eneral Assum&tions
'ont h" &lan Month 'urrent Interest ;ate #ong(term Interest ;ate Tax ;ate 6 65.55 = 65.55 = 35.55 = :ther ! 'ont h 2 65.55 = 65.55 = 35.55 = ! 'ont h# 3 65.55 = 65.55 = 35.55 = ! 'ont h3 B 65.55 = 65.55 = 35.55 = ! 'ont h1 4 65.55 = 65.55 = 35.55 = ! 'ont h0 C 65.55 = 65.55 = 35.55 = ! 'ont h7 < 65.55 = 65.55 = 35.55 = ! 'ont h2 ? 65.55 = 65.55 = 35.55 = ! 'ont h9 D 65.55 = 65.55 = 35.55 = ! 'ont h "! 65 65.55 = 65.55 = 35.55 = ! 'ont h "" 66 65.55 = 65.55 = 35.55 = ! ! 35.55= 65.55= 62 65.55= 'onth "

4ro (orma 4rofit an$ Loss

'ont h" Sales .""/!! ! +irect 'ost of ales @5 'ont h ."#/!! ! @5 'ont h# ."#/!! ! @5 'ont h3 ." /!! ! @5 'ont h1 ."!/!! ! @5 'ont h0 ."!/!! ! @5 'ont h7 ."0/!! ! @5 'ont h2 ."#/!! ! @5 'ont h9 ."#/!! ! @5 'ont h "! ."3/!! ! @5 'ont h "" ."0/!! ! @5 @5 ."9/!!! 'onth "

7ther 'osts of ales %otal Cost of Sales Gross Margin

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@66,55 5

@63,55 5 655.55 = @?,555 @6,555

@63,55 5 655.55 = @?,555 @6,555

@62,55 5 655.55 = @?,555 @6,555

@65,55 5 655.55 = @?,555 @6,555

@65,55 5 655.55 = @?,555 @6,555

@6C,55 5 655.55 = @?,555 @455

@63,55 5 655.55 = @?,555 @455

@63,55 5 655.55 = @?,555 @455

@6B,55 5 655.55 = @?,555 @355

@6C,55 5 655.55 = @?,555 @355

@6D,555

Gross Margin =

655.55 =

655.55=

,-&enses &ayroll ales and Marketing and 7ther :xpenses +epreciation ;ent Atilities Insurance &ayroll Taxes Travel 7ther %otal :&erating ,-&enses &rofit "efore Interest and Taxes :"IT+% 64= 64= @5 @6,555 @355 @245 @6,255 @6,255 @C55 ."#/11 ! /@2,44 50 /@2,44 50 Interest :xpense Taxes Incurred <et 4rofit @6<B @5 =. /7 3> <et 4rofit?Sales ) 3.77 8 @5 @6,555 @355 @245 @6,255 @3,555 @C55 ."1/#1 ! /@2,34 50 /@2,34 50 @6<3 @5 =. /1 #> ) "9.3" 8 ) 3.! 8 @6<3 @5 =.1 #> /@3450 @5 @6,555 @355 @245 @6,255 @6,555 @C55 ."#/#1 ! /@3450 @5 @6,555 @355 @245 @6,255 @2,555 @C55 ."3/#1 ! /@2,34 50 /@2,34 50 @6<2 @5 =. /1 > ) ".!" 8 @5 @6,555 @355 @245 @6,255 @2,555 @C55 ."3/#1 ! /@B,34 50 /@B,34 50 @6<6 @5 =.3/1 "> ) 31. " 8 @5 @6,555 @355 @245 @6,255 @3,555 @C55 ."1/#1 ! /@4,34 50 /@4,34 50 @6<5 @5 =.1/1 !> ) 11. ! 8 " .#2 8 ) !."38 @6CD @5 ."/92" @6C? @5 =."2> @6C? @5 =."/!" 2> ) 7.2#8 ) 1.2#8 "9.9! 8 .!#8 @6C< @5 =.2"7> @6CC @5 .#/"23 @6C4 @5 .3/"21 @2,645 @645 /@?450 /@C450 @3,345 @B,345 @5 @6,555 @355 @245 @6,255 @2,555 @C55 ."#/21 ! @2,645 @5 @6,555 @355 @245 @6,255 @6,555 @C55 ." /21 ! @645 @5 @6,555 @355 @245 @6,255 @2,555 @C55 ."#/21 ! /@?450 @5 @6,555 @355 @245 @6,255 @3,555 @C55 ."3/01 ! /@C450 @5 @6,555 @355 @245 @6,255 @6,555 @C55 ." /01 ! @3,345 @B,345 @5 @6,555 @355 @245 @6,255 @3,555 @C55 ."3/01! @?,555 @6,555 @?,555 @355

4ro (orma Cash (lo7

'on th " Cash *eceive$ 'ash from 7perations 'ash ales @4,45 5 'ash from ;eceivables @5 @C,45 5 @6?3 @C,45 5 @4,43 3 Subtotal Cash from :&erations %dditional 'ash ;eceived .1/1! ! .0/02 # ." /! ## @C,55 5 @C,45 5 ." /1 !! @4,55 5 @C,B? 3 .""/3 2# @4,55 5 @4,DC < ."!/9 07 @?,55 5 @4,55 5 ."#/! !! @C,45 5 @4,65 5 .""/0 !! @C,45 5 @<,D4 5 ."3/3 1! @<,55 5 @C,45 5 ."#/1 !! @?,55 5 @C,46 < ."3/1 "7 ."0/1## @<,533 @D,455 'ont h 'ont h# 'ont h3 'ont h1 'ont h0 'ont h7 'ont h2 'ont h9 'ont h "! 'ont h "" 'onth "

ales Tax, G%T, > T/G T ;eceived 1ew 'urrent "orrowing 1ew 7ther #iabilities /interest(free0 1ew #ong(term #iabilities ales of 7ther 'urrent %ssets ales of #ong(term %ssets 1ew Investment ;eceived Subtotal Cash *eceive$

5.55 =

@5

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@5

@5

@5

@5

@5

@5

@5

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@5 @5

@5 @5

@5 @5

@5 @5

@5 @5

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@5 @5

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@5 @5 @5 @5 .1/1! !

@5 @5 @5 @5 .0/02 # 'ont h @?,55 5 @4,<? B ."#/7 23 @5

@5 @5 @5 @5 ." /! ## 'ont h# @?,55 5 @<,B4 < ."1/3 17 @5

@5 @5 @5 @5 ." /1 !! 'ont h3 @?,55 5 @4,44 C ."#/1 10 @5

@5 @5 @5 @5 .""/3 2# 'ont h1 @?,55 5 @C,42 2 ."3/1

@5 @5 @5 @5 ."!/9 07 'ont h0 @?,55 5 @C,44 B ."3/1 13

@5 @5 @5 @5 ."#/! !! 'ont h7 @?,55 5 @<,B< 5 ."1/3 7! @5

@5 @5 @5 @5 .""/0 !! 'ont h2 @?,55 5 @4,D? C ."#/9 20 @5

@5 @5 @5 @5 ."3/3 1! 'ont h9 @?,55 5 @4,54 2 ."#/! 1 @5

@5 @5 @5 @5 ."#/1 !! 'ont h "! @?,55 5 @C,5B B ."3/! 33 @5

@5 @5 @5 @5 ."3/1 "7 'ont h "" @?,55 5 @C,<4 5 ."3/7 1! @5

@5 @5 @5 @5 ."0/1##

,-&en$itures

'on th "

'onth "

:xpenditures from 7perations 'ash pending @?,55 5 "ill &ayments @2,6D 6 Subtotal S&ent on :&erations %dditional 'ash pent ales Tax, G%T, > T/G T &aid 7ut &rincipal ;epayment of 'urrent "orrowing 7ther #iabilities &rincipal ;epayment #ong(term #iabilities &rincipal ;epayment &urchase 7ther 'urrent %ssets &urchase #ong(term %ssets +ividends @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @B,55 5 Subtotal Cash S&ent ."!/ 9" <et Cash (lo7 =.3/7 9"> Cash Balance .##/7 19 ."#/2 23 =.7/ !"> . 0/1 12 ."1/1 17 =.#/1 #> . #/! #1 ."#/0 10 =."/" 10> . "/2 79 =.#/" #2> ."2/7 3" ."3/0 ."3/0 13 =.#/0 27> ."1/! 1# ."1/1 7! =. /1 7!> ." /3 23 ."2/! 20 =.0/3 20> .1/99 2 ."#/" 1 ."/ 9 2 .7/ 9 0 ."3/" 33 =.033 > .0/01 ."3/2 1! =.### > .0/#" 9 .9/209 .#/11" ." /92 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @655 @655 @655 @655 @655 @655 @655 @655 @655 @655 @655 @655 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 @5 ."!/" 9" @?,555

@B,??2

." /22

4ro (orma Balance Sheet

'ont h" Assets Starting Balance 'ont h 'ont h# 'ont h3 'ont h1 'ont h0 'ont h7 'ont h2 'ont h9 'ont h "! 'ont h "" 'onth "

s 'urrent %ssets 'ash @3?,445 @33,< 4D %ccounts ;eceivable 7ther 'urrent %ssets %otal Current Assets #ong(term %ssets #ong(term %ssets @65,555 @65,5 55 %ccumulated +epreciation %otal Long)term Assets %otal Assets .0#/11! ."!/!!! ."!/! !! .03/ 19 Liabilities an$ Ca&ital 'urrent #iabilities %ccounts &ayable @2,555 @4,43 3 'urrent "orrowing @D,555 @D,55 5 7ther 'urrent #iabilities Subtotal Current Liabilities #ong(term #iabilities %otal Liabilities .#"/!!! @62,555 ."9/!!! . @?,555 @?,55 5 /1 ## @66,D 55 .#3/3 ## &aid(in 'apital @43,<45 @43,< 45 ;etained :arnings /@26,255 0 :arnings @5 /@26,2 550 /@2,<2 B0 %otal Ca&ital .# /11! . 9/2 0 %otal Liabilities an$ Ca&ital <et @orth .# /11! .0#/11! .03/ 19 . 9/2 0 . 3/ 7# @66,? 55 .#0/! 7# @43,< 45 /@26,2 550 /@4,2B ?0 . 7/# !# .0#/# 71 . 7/# !# @<,2< 3 @D,55 5 @?,55 5 . @4,33 ? @D,55 5 @?,55 5 /# #2 @66,< 55 .#3/! #2 @43,< 45 /@26,2 550 /@4,<< 50 . 0/7 2! .0!/2 "2 . 0/7 2! @C,35 B @D,55 5 @?,55 5 . #/# !3 @66,C 55 .#3/9 !3 @43,< 45 /@26,2 550 /@?,2D 20 . 3/ 12 .19/" 0# . 3/ 12 @C,35 3 @D,55 5 @?,55 5 . #/# !# @66,4 55 .#3/2 !# @43,< 45 /@26,2 550 /@62,? 630 ."9/7 #2 .13/1 3" ."9/7 #7 . 3/ 09 @66,B 55 .#1/0 09 @43,< 45 /@26,2 550 /@6?,3 330 ."3/ "2 .39/2 27 ."3/ "7 @<,2C D @D,55 5 @?,55 5 . @4,?6 D @D,55 5 @?,55 5 /2 "9 @66,3 55 .#3/" "9 @43,< 45 /@26,2 550 /@6C,3 420 ."0/" 92 .1!/# "7 ."0/" 92 @B,?4 6 @D,55 5 @?,55 5 . "/2 1" @66,2 55 .##/! 1" @43,< 45 /@24,2 550 /@6C,3 <50 ." /" 2! .31/ #" ." /" 2! . @4,?6 < @D,55 5 @?,55 5 /2 "7 @66,6 55 .##/9 "7 @43,< 45 /@24,2 550 /@6<,3 ??0 .""/" 0# .31/! 79 .""/" 0 @C,4? D @D,55 5 @?,55 5 . #/1 29 @66,5 55 .#3/1 29 @43,< 45 /@24,2 550 /@6?,2 5B0 ."!/# 30 .33/9 #1 ."!/# 30 @B,C4 4 @D,55 5 @?,55 5 . "/0 11 @65,D 55 .# /1 11 @43,< 45 /@24,2 550 /@64,5 250 ."#/1 #! .30/! 21 ."#/1 #! ."7/7"1 .1 /"!# ."7/7"1 /@65,?340 /@24,2550 @43,<45 .#3/#22 @65,?55 . #/122 @?,555 @D,555 @C,4?? 'ont h" ."!/! !! .0#/# 71 'ont h ."!/! !! .0!/2 "2 'ont h# ."!/! !! .19/" 0# 'ont h3 ."!/! !! .13/1 3" 'ont h1 ."!/! !! .39/2 27 'ont h0 ."!/! !! .1!/# "7 'ont h7 ."!/! !! .31/ #" 'ont h2 ."!/! !! .31/! 79 'ont h9 ."!/! !! .33/9 #1 'ont h "! ."!/! !! .30/! 21 'ont h "" 'onth " .1 /"!# ."!/!!! @5 @5 @65,5 55 @5 @65,5 55 @5 @65,5 55 @5 @65,5 55 @5 @65,5 55 @5 @65,5 55 @5 @65,5 55 @5 @65,5 55 @5 @65,5 55 @5 @65,5 55 @5 @5 @65,555 .1#/11! @64,555 @5 @4,45 5 @64,5 55 .13/ 19 @2C,4 4? @66,? 6< @64,5 55 .1#/# 71 @23,5 34 @62,< ?3 @64,5 55 .1!/2 "2 @26,? <D @62,2 ?3 @64,5 55 .39/" 0# @6?,< B6 @65,? 55 @64,5 55 .33/1 3" @64,5 43 @D,?3 3 @64,5 55 .#9/2 27 @62,B ?B @62,? 33 @64,5 55 .3!/# "7 @4,DD ? @6B,2 33 @64,5 55 .#1/ #" @<,2D C @62,< ?3 @64,5 55 .#1/! 79 @C,C4 2 @63,2 ?3 @64,5 55 .#3/9 #1 @C,36 D @6B,< C< @64,5 55 .#0/! 21 .3 /"!# @64,555 @6<,233 @D,?CD