Professional Documents
Culture Documents
MSN Real Estate Nathan Koach & Shawn Menashe May 21, 1998
MSN Real Estate Nathan Koach & Shawn Menashe May 21, 1998
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Signature
Date
This is a business plan. It does not imply an offering of securities.
_.
Table of Contents
1.0
Executive Summary.....................................................................................................1
1.1
Objectives........................................................................................................ 2
1.2
Mission............................................................................................................ 2
1.3
Keys to Success................................................................................................ 3
2.0
Company Summary.....................................................................................................3
2.1
Company Ownership......................................................................................... 3
2.2
Start-up Summary............................................................................................ 3
2.3
Company Locations and Facilities........................................................................ 5
3.0
Services.......................................................................................................................6
3.1
Competitive Comparison.................................................................................... 6
3.2
Sales Literature................................................................................................ 6
3.3
Fulfillment........................................................................................................ 6
3.4
Technology....................................................................................................... 7
3.5
Future Services................................................................................................ 7
4.0
5.0
6.0
Management Summary................................................................................................14
6.1
Organizational Structure.................................................................................... 14
6.2
Management Team............................................................................................ 14
6.3
Management Team Gaps.................................................................................... 15
6.4
Personnel Plan.................................................................................................. 15
7.0
Financial Plan..............................................................................................................15
7.1
Important Assumptions..................................................................................... 16
7.2
Key Financial Indicators..................................................................................... 17
7.3
Break-even Analysis.......................................................................................... 18
7.4
Projected Profit and Loss................................................................................... 19
7.5
Projected Cash Flow.......................................................................................... 20
7.6
Projected Balance Sheet.................................................................................... 22
7.7
Business Ratios................................................................................................. 22
Page 1
Highlights
$700,000
$600,000
$500,000
$400,000
Sales
$300,000
Gross Margin
$200,000
Net Profit
$100,000
$0
($100,000)
1999
2000
2001
1.2 Objectives
1.
2.
3.
4.
1.3 Mission
MSN Real Estate provides high-quality, comfortable rental units in Eugene and other areas of
Oregon. MSN's apartment units offer state-of-the-art living conditions reflective of the rapid
advancements in technology and a growing need for quality housing. Our company is
dedicated to a hassle free living environment in which our tenants can enjoy all of the benefits
of safe, attractive, and inviting units. Unlike many other realty companies that are solely
concerned with turning profits, our primary objective at MSN is to maintain the highest level of
customer satisfaction that is achievable. Tenant safety, happiness, and comfort are our main
goals. MSN maintains competitive market prices, while working toward expanding the number
of units owned, and increasing total profits earned. Within the company we will strive to work
as a cohesive, harmonious unit focused on exemplifying our mission. Just as customer
satisfaction is an intricate part of MSN's success, so is employee satisfaction. That is why the
founders of MSN Real Estate believe that employee satisfaction will make the company a
success and will be the key to their longevity.
Initial focus will be to buy and develop existing apartment complexes. We will modify and
remodel the acquired real estate so as to meet MSN standards and increase long-term assets
and income. Housing units will predominantly be located in the University neighborhood
targeting both students and professionals. MSN fosters the ideals of the importance of tenant
needs along with healthy and understanding relationships and a professional commitment to
satisfaction.
Page 2
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Architect Fees
Stationery etc.
Brochures
Consultants
Insurance
Rent
Construction
Expensed equipment
Other
Total Start-up Expenses
$6,400
$3,000
$270
$275
$2,550
$1,315
$1,400
$75,000
$600
$750
$91,560
$1,111,330
$12,000
$1,123,330
Long-term Assets
Total Assets
Total Requirements
$120,000
$1,243,330
$1,334,890
Funding
Investment
Menashe
Koach
Silent Partners
Total Investment
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Current Liabilities
$23,000
$23,000
$200,000
$246,000
$3,890
$5,000
$0
$8,890
Long-term Liabilities
Total Liabilities
$1,080,000
$1,088,890
Loss at Start-up
Total Capital
Total Capital and Liabilities
($91,560)
$154,440
$1,243,330
Start-up
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
Expenses
Assets
Investment
Loans
3.1 Services
MSN offers on-site security guards who patrol the grounds during evenings, nights, and early
mornings. We also offer an on-site repair service. There will always be an open line of
communication between the renters and the management via an MSN Web page and a 24hour, call-in answering service.
3.4 Fulfillment
1.
2.
3.5 Technology
MSN real estate will have the most up-to-date technology provided both to the customers and
to the subcontractors and other clients.
1. Ethernet ports and/or modem jacks will be installed in each unit developed by MSN.
2. Access to a 24-hour copy/fax center located on the premises.
3. Each unit will contain an emergency panic alert that will automatically go through to
the manager and the local police department.
20,000
Students
15,000
Professionals
Faculty/Staff
10,000
Other
5,000
0
1999
2000
2001
2002
2003
2.
3.
MSN's largest market segment in the Eugene area will be students of the local
universities. These students will be the most likely to desire the technological amenities
that our company offers. We expect this to be the largest growing segment with a
growth rate of about 7%.
Local professionals are another large segment. They will be attracted to the units
because of the same technological needs, but will also be attracted to the comfortable,
well maintained living environment. MSN offers units that provide a quality "hub"
between college graduation and home ownership. We expect this segment to grow at a
rate of about 4% with a more frequent turn over.
Local university faculty and staff represent the third and smallest identifiable segment,
but contain the second highest growth rate. Proximity and quality will entice this
segment which we expect to grow at a rate of 5%.
Students
Professionals
Faculty/Staff
Other
Growth
7%
4%
5%
3%
5.20%
1999
18,000
12,000
6,000
4,000
40,000
2000
19,170
12,480
6,300
4,120
42,070
2001
20,416
12,979
6,615
4,244
44,254
2002
21,743
13,498
6,946
4,371
46,558
2003
23,156
14,038
7,293
4,502
48,989
CAGR
6.50%
4.00%
5.00%
3.00%
5.20%
3.
The student segment needs a quiet safe atmosphere that fosters a quality learning
environment. They also need the convenience of location and on-site amenities.
The professional segment needs a living environment that separates them from the
noisy, dirty inconvenience of average apartment living. Most professionals are on their
way to home ownership or movement to a larger city, so they need housing that will let
them feel like they are getting the quality that they need.
The faculty/staff segment also has similar needs. They need to feel separation from the
noise and unkept conditions of most near-campus housing. Along with the students,
they also need a place to feel safe and one that fosters convenience.
Page 10
Page 11
1999
311
174
129
29
0
643
2000
350
212
154
54
0
770
2001
394
242
168
60
0
864
Unit Prices
Single Units
Double Units
Quad Units
Luxury Suite
Other
1999
$404.98
$806.78
$1,174.42
$674.14
$0.00
2000
$410.00
$816.00
$1,200.00
$689.00
$0.00
2001
$420.00
$828.00
$1,220.00
$699.00
$0.00
Sales
Single Units
Double Units
Quad Units
Luxury Suite
Other
Total Sales
$125,950
$140,380
$151,500
$19,550
$0
$437,380
$143,500
$172,992
$184,800
$37,206
$0
$538,498
$165,480
$200,376
$204,960
$41,940
$0
$612,756
1999
$260.00
$428.00
$511.00
$302.00
$0.00
2000
$225.00
$400.00
$498.00
$287.00
$0.00
2001
$214.00
$378.00
$478.00
$284.00
$0.00
1999
$80,860
$74,472
$65,919
$8,758
$0
$230,009
2000
$78,750
$84,800
$76,692
$15,498
$0
$255,740
2001
$84,316
$91,476
$80,304
$17,040
$0
$273,136
Page 12
Sales Monthly
$60,000
$50,000
$40,000
Single Units
Double Units
$30,000
Quad Units
Luxury Suite
$20,000
Other
$10,000
$0
Jan Feb Mar Apr May Jun
Jul
5.5 Milestones
The accompanying table lists our company's milestones, including dates, management
responsibility, and budgets. This table indicates our expectations from the company as well as
outlining our plan for start up. The table shows the anticipated divisions that are to occur
within the company as it grows, as well as an increase in units owned.
This is an initial assessment, and MSN will continually adjust in order to sustain our business in
all the different departments.
Page 13
Table: Milestones
Milestones
Milestone
Complete incorporation
Financially Organized
Institution
Brokerage Unified
Expansion (UNITS)
Earnings ($200,000)
Acquisition (Bought C&R
Reality)
Other
Totals
Start Date
1/30/98
End Date
7/30/98
Budget
$12,000
2/28/98
2/28/00
$2,500
4/1/99
8/24/98
1/31/99
7/30/98
4/00/00
4/24/99
12/31/99
7/30/99
$10,000
$150,000
$1,000
$500,000
1/1/98
1/1/98
$5,000
$680,500
Manager
Department
Shawn Admin/Managme
Menashe (CEO)
nt
Nathan Koach
Finance
(CFO)
Joe Nash
Brokerage
Shawn Menashe
Development
Nathan Koach
Finance
Shawn Menashe
Brokerage
MSN
Administration
Table: Personnel
Personnel Plan
Nathan Koach CFO
Shawn Menashe CEO
Denise Richards (Admin. Mgr.)
Joe Nash (Brokerage Manager)
Head Contractor (Develop. Mgr.)
Other
Total People
Total Payroll
1999
$15,600
$15,600
$9,600
$11,700
$14,100
$24,000
18
$90,600
2000
$20,000
$20,000
$10,000
$14,000
$15,000
$26,000
24
$105,000
2001
$25,000
$25,000
$12,000
$17,000
$17,000
$32,000
32
$128,000
1999
1
8.00%
6.00%
25.00%
0.00%
2000
2
8.00%
6.00%
25.00%
0.00%
2001
3
8.00%
6.00%
25.00%
0.00%
$90,600
$412,337
$105,000
$485,390
$128,000
$542,258
Benchmarks
1.4
1.2
1.0
0.8
1999
2000
0.6
2001
0.4
0.2
0.0
Sales
Gross Margin%
Operating Expenses
Break-even Analysis
$15,000
$10,000
$5,000
$0
($5,000)
($10,000)
($15,000)
0
10
20
30
29
$24,139
Assumptions:
Average Per-Unit Revenue
Average Per-Unit Variable Cost
Estimated Monthly Fixed Cost
$820.00
$375.00
$13,100
40
50
1999
$437,380
$230,009
$0
$0
-----------$230,009
$207,371
47.41%
2000
$538,498
$255,740
$0
$0
-----------$255,740
$282,758
52.51%
2001
$612,756
$273,136
$0
$0
-----------$273,136
$339,620
55.42%
$90,600
$105,000
$128,000
$13,800
$14,000
$17,700
$12,221
$13,000
$19,333
$2,400
$2,600
$2,800
$7,200
$8,200
$8,500
$14,400
$15,500
$1,600
$0
$12,000
$15,000
$3,000
$4,000
$5,000
$13,590
$15,750
$19,200
$0
$0
$0
---------------------------------$157,211
$190,050
$217,133
$50,160
$92,708
$122,487
$66,014
$83,294
$100,922
$0
$2,354
$5,391
($15,854)
$7,061
$16,174
-3.62%
1.31%
2.64%
FALSE
TRUE
TRUE
Cash
$200,000
$0
($200,000)
($400,000)
($600,000)
Cash Balance
($800,000)
($1,000,000)
($1,200,000)
Jan Feb Mar Apr May Jun
Jul
Page 20
1999
2000
2001
Cash Received
Cash from Operations:
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
$437,380
$0
$437,380
$538,498
$0
$538,498
$612,756
$0
$612,756
$0
$0
$8,400
$1,802
$4,500
$0
$0
$5,862
$457,944
$0
$0
$15,000
$2,500
$513,000
$0
$0
$6,000
$1,074,998
$0
$0
$12,000
$2,000
$2,500
$0
$0
$4,000
$633,256
1999
2000
2001
$28,677
$386,726
$415,403
$33,047
$480,894
$513,941
$34,991
$540,259
$575,250
$0
$0
$0
$650
($12,127)
$0
$1,080,000
$0
$1,483,926
$0
$0
$0
$0
($14,470)
$0
$570,000
$0
$1,069,471
$0
$0
$0
$0
($21,646)
$0
$0
$0
$553,604
($1,025,982)
$85,348
$5,527
$90,875
$79,652
$170,526
Expenditures
Expenditures from Operations:
Cash Spending
Payment of Accounts Payable
Subtotal Spent on Operations
Additional Cash Spent
Non Operating (Other) Expense
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
Net Cash Flow
Cash Balance
1999
$85,348
$12,000
$97,348
2000
$90,875
$12,000
$102,875
2001
$170,526
$12,000
$182,526
$1,200,000
$12,221
$1,187,779
$1,285,127
$1,770,000
$25,221
$1,744,779
$1,847,654
$1,770,000
$44,554
$1,725,446
$1,907,972
1999
$29,501
$13,400
$1,152
$44,053
2000
$33,997
$28,400
$3,652
$66,049
2001
$35,996
$40,400
$5,652
$82,048
Long-term Liabilities
Total Liabilities
$1,096,627
$1,140,679
$1,624,097
$1,690,145
$1,648,242
$1,730,290
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
$251,862
($91,560)
($15,854)
$144,448
$1,285,127
$144,448
$257,862
($107,414)
$7,061
$157,508
$1,847,654
$157,508
$261,862
($100,354)
$16,174
$177,682
$1,907,972
$177,682
Table: Ratios
Ratio Analysis
1999
0.00%
2000
23.12%
2001
13.79%
Industry Profile
3.60%
0.00%
0.00%
0.93%
7.57%
92.43%
100.00%
0.00%
0.00%
0.65%
5.57%
94.43%
100.00%
0.00%
0.00%
0.63%
9.57%
90.43%
100.00%
6.90%
0.50%
49.90%
57.30%
42.70%
100.00%
0.09%
85.33%
85.33%
14.67%
0.20%
87.90%
87.90%
12.10%
0.30%
86.39%
86.39%
13.61%
28.50%
27.20%
55.70%
44.30%
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
100.00%
47.41%
37.21%
0.00%
11.47%
100.00%
52.51%
36.81%
0.00%
17.22%
100.00%
55.42%
37.08%
0.00%
19.99%
100.00%
100.00%
67.40%
3.60%
3.90%
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
2.21
2.21
88.76%
-10.98%
-1.23%
1.56
1.56
91.48%
5.98%
0.51%
2.22
2.22
90.69%
12.14%
1.13%
1.87
1.11
55.70%
1.70%
3.80%
1999
$24,299
2000
$22,437
2001
$19,149
Industry
$105,908
68.50%
Additional Ratios
Net Profit Margin
Return on Equity
1999
-3.62%
-10.98%
2000
1.31%
4.48%
2001
2.64%
9.10%
0.00
0
0.00
13.98
17
0.34
0.00
0
0.00
14.28
286
0.29
0.00
0
0.00
15.06
283
0.32
n.a
n.a
n.a
n.a
7.90
0.04
10.73
0.04
9.74
0.05
n.a
n.a
$53,295
0.76
$36,826
1.11
$100,478
1.21
n.a
n.a
2.94
3%
2.21
3.03
0.00
3.43
4%
1.56
3.42
0.00
3.11
4%
2.22
3.45
0.00
n.a
n.a
n.a
n.a
n.a
Sales Growth
Percent of Total Assets
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
Activity Ratios
Accounts Receivable Turnover
Collection Days
Inventory Turnover
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
n.a
n.a
n.a
Appendix
Appendix Table: Sales Forecast
Sales Forecast
Unit Sales
Single Units
Double Units
Quad Units
Luxury Suite
Other
Total Unit Sales
Jan
24
10
8
2
0
44
Feb
24
10
8
2
0
44
Mar
24
10
8
2
0
44
Apr
24
10
8
2
0
44
May
24
10
8
2
0
44
Jun
24
10
8
2
0
44
Jul
24
16
12
2
0
54
Aug
24
16
12
2
0
54
Sep
29
20
14
3
0
66
Oct
29
20
14
3
0
66
Nov
29
20
14
3
0
66
Dec
32
22
15
4
0
73
Unit Prices
Single Units
Double Units
Quad Units
Luxury Suite
Other
Jan
$425.00
$820.00
$1,200.00
$675.00
$0.00
Feb
$425.00
$820.00
$1,200.00
$675.00
$0.00
Mar
$425.00
$820.00
$1,200.00
$675.00
$0.00
Apr
$425.00
$820.00
$1,200.00
$675.00
$0.00
May
$425.00
$820.00
$1,200.00
$675.00
$0.00
Jun
$350.00
$820.00
$1,200.00
$675.00
$0.00
Jul
$350.00
$740.00
$1,000.00
$600.00
$0.00
Aug
$350.00
$740.00
$1,000.00
$600.00
$0.00
Sep
$350.00
$740.00
$1,000.00
$600.00
$0.00
Oct
$440.00
$850.00
$1,300.00
$725.00
$0.00
Nov
$440.00
$850.00
$1,300.00
$725.00
$0.00
Dec
$440.00
$850.00
$1,300.00
$725.00
$0.00
Sales
Single Units
Double Units
Quad Units
Luxury Suite
Other
Total Sales
$10,200
$8,200
$9,600
$1,350
$0
$29,350
$10,200
$8,200
$9,600
$1,350
$0
$29,350
$10,200
$8,200
$9,600
$1,350
$0
$29,350
$10,200
$8,200
$9,600
$1,350
$0
$29,350
$10,200
$8,200
$9,600
$1,350
$0
$29,350
$8,400
$8,200
$9,600
$1,350
$0
$27,550
$8,400
$11,840
$12,000
$1,200
$0
$33,440
$8,400
$11,840
$12,000
$1,200
$0
$33,440
$10,150
$14,800
$14,000
$1,800
$0
$40,750
$12,760
$17,000
$18,200
$2,175
$0
$50,135
$12,760
$17,000
$18,200
$2,175
$0
$50,135
$14,080
$18,700
$19,500
$2,900
$0
$55,180
Jan
$260.00
$428.00
$511.00
$302.00
$0.00
Feb
$260.00
$428.00
$511.00
$302.00
$0.00
Mar
$260.00
$428.00
$511.00
$302.00
$0.00
Apr
$260.00
$428.00
$511.00
$302.00
$0.00
May
$260.00
$428.00
$511.00
$302.00
$0.00
Jun
$260.00
$428.00
$511.00
$302.00
$0.00
Jul
$260.00
$428.00
$511.00
$302.00
$0.00
Aug
$260.00
$428.00
$511.00
$302.00
$0.00
Sep
$260.00
$428.00
$511.00
$302.00
$0.00
Oct
$260.00
$428.00
$511.00
$302.00
$0.00
Nov
$260.00
$428.00
$511.00
$302.00
$0.00
Dec
$260.00
$428.00
$511.00
$302.00
$0.00
Jan
$6,240
$4,280
$4,088
$604
$0
$15,212
Feb
$6,240
$4,280
$4,088
$604
$0
$15,212
Mar
$6,240
$4,280
$4,088
$604
$0
$15,212
Apr
$6,240
$4,280
$4,088
$604
$0
$15,212
May
$6,240
$4,280
$4,088
$604
$0
$15,212
Jun
$6,240
$4,280
$4,088
$604
$0
$15,212
Jul
$6,240
$6,848
$6,132
$604
$0
$19,824
Aug
$6,240
$6,848
$6,132
$604
$0
$19,824
Sep
$7,540
$8,560
$7,154
$906
$0
$24,160
Oct
$7,540
$8,560
$7,154
$906
$0
$24,160
Nov
$7,540
$8,560
$7,154
$906
$0
$24,160
Dec
$8,320
$9,416
$7,665
$1,208
$0
$26,609
Page 1
Appendix
Appendix Table: Personnel
Personnel Plan
Nathan Koach CFO
Shawn Menashe CEO
Denise Richards (Admin. Mgr.)
Joe Nash (Brokerage Manager)
Head Contractor (Develop. Mgr.)
Other
Total People
Total Payroll
Jan
$1,200
$1,200
$800
$950
$1,150
$2,000
18
$7,300
Feb
$1,200
$1,200
$800
$950
$1,150
$2,000
18
$7,300
Mar
$1,200
$1,200
$800
$950
$1,150
$2,000
18
$7,300
Apr
$1,200
$1,200
$800
$950
$1,150
$2,000
18
$7,300
May
$1,200
$1,200
$800
$950
$1,150
$2,000
18
$7,300
Jun
$1,200
$1,200
$800
$950
$1,150
$2,000
18
$7,300
Jul
$1,400
$1,400
$800
$1,000
$1,200
$2,000
18
$7,800
Aug
$1,400
$1,400
$800
$1,000
$1,200
$2,000
18
$7,800
Sep
$1,400
$1,400
$800
$1,000
$1,200
$2,000
18
$7,800
Oct
$1,400
$1,400
$800
$1,000
$1,200
$2,000
18
$7,800
Nov
$1,400
$1,400
$800
$1,000
$1,200
$2,000
18
$7,800
Dec
$1,400
$1,400
$800
$1,000
$1,200
$2,000
18
$7,800
Page 2
Appendix
Appendix Table: General Assumptions
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other
Calculated Totals
Payroll Expense
New Accounts Payable
Jan
1
8.00%
6.00%
25.00%
0.00%
Feb
2
8.00%
6.00%
25.00%
0.00%
Mar
3
8.00%
6.00%
25.00%
0.00%
Apr
4
8.00%
6.00%
25.00%
0.00%
May
5
8.00%
6.00%
25.00%
0.00%
Jun
6
8.00%
6.00%
25.00%
0.00%
Jul
7
8.00%
6.00%
25.00%
0.00%
Aug
8
8.00%
6.00%
25.00%
0.00%
Sep
9
8.00%
6.00%
25.00%
0.00%
Oct
10
8.00%
6.00%
25.00%
0.00%
Nov
11
8.00%
6.00%
25.00%
0.00%
Dec
12
8.00%
6.00%
25.00%
0.00%
$7,300
$30,712
$7,300
$30,722
$7,300
$30,733
$7,300
$30,743
$7,300
$30,753
$7,300
$30,811
$7,800
$35,343
$7,800
$35,120
$7,800
$39,003
$7,800
$38,783
$7,800
$38,752
$7,800
$40,861
Page 3
Appendix
Appendix Table: Profit and Loss
Pro Forma Profit and Loss
Sales
Direct Cost of Sales
Production Payroll
Other
Total Cost of Sales
Gross Margin
Gross Margin %
Expenses:
Payroll
Sales and Marketing and Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Maintenance
Rent
Payroll Taxes
Other
Total Operating Expenses
Profit Before Interest and Taxes
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales
Include Negative Taxes
15%
Jan
$29,350
$15,212
$0
$0
-----------$15,212
$14,138
48.17%
Feb
$29,350
$15,212
$0
$0
-----------$15,212
$14,138
48.17%
Mar
$29,350
$15,212
$0
$0
-----------$15,212
$14,138
48.17%
Apr
$29,350
$15,212
$0
$0
-----------$15,212
$14,138
48.17%
May
$29,350
$15,212
$0
$0
-----------$15,212
$14,138
48.17%
Jun
$27,550
$15,212
$0
$0
-----------$15,212
$12,338
44.78%
Jul
$33,440
$19,824
$0
$0
-----------$19,824
$13,616
40.72%
Aug
$33,440
$19,824
$0
$0
-----------$19,824
$13,616
40.72%
Sep
$40,750
$24,160
$0
$0
-----------$24,160
$16,590
40.71%
Oct
$50,135
$24,160
$0
$0
-----------$24,160
$25,975
51.81%
Nov
$50,135
$24,160
$0
$0
-----------$24,160
$25,975
51.81%
Dec
$55,180
$26,609
$0
$0
-----------$26,609
$28,571
51.78%
$7,300
$1,350
$0
$200
$600
$1,200
$0
$250
$1,095
$0
-----------$11,995
$2,143
$5,440
$0
($3,297)
-11.23%
$7,300
$1,350
$1,111
$200
$600
$1,200
$0
$250
$1,095
$0
-----------$13,106
$1,032
$5,451
$0
($4,419)
-15.06%
$7,300
$1,350
$1,111
$200
$600
$1,200
$0
$250
$1,095
$0
-----------$13,106
$1,032
$5,461
$0
($4,429)
-15.09%
$7,300
$1,350
$1,111
$200
$600
$1,200
$0
$250
$1,095
$0
-----------$13,106
$1,032
$5,472
$0
($4,440)
-15.13%
$7,300
$1,350
$1,111
$200
$600
$1,200
$0
$250
$1,095
$0
-----------$13,106
$1,032
$5,483
$0
($4,451)
-15.17%
$7,300
$1,350
$1,111
$200
$600
$1,200
$0
$250
$1,095
$0
-----------$13,106
($768)
$5,496
$0
($6,264)
-22.74%
$7,800
$1,150
$1,111
$200
$600
$1,200
$0
$250
$1,170
$0
-----------$13,481
$135
$5,505
$0
($5,370)
-16.06%
$7,800
$900
$1,111
$200
$600
$1,200
$0
$250
$1,170
$0
-----------$13,231
$385
$5,514
$0
($5,129)
-15.34%
$7,800
$950
$1,111
$200
$600
$1,200
$0
$250
$1,170
$0
-----------$13,281
$3,309
$5,523
$0
($2,214)
-5.43%
$7,800
$950
$1,111
$200
$600
$1,200
$0
$250
$1,170
$0
-----------$13,281
$12,694
$5,540
$0
$7,154
14.27%
$7,800
$900
$1,111
$200
$600
$1,200
$0
$250
$1,170
$0
-----------$13,231
$12,744
$5,556
$0
$7,188
14.34%
$7,800
$850
$1,111
$200
$600
$1,200
$0
$250
$1,170
$0
-----------$13,181
$15,390
$5,572
$0
$9,818
17.79%
Page 4
Appendix
Appendix Table: Cash Flow
Pro Forma Cash Flow
Cash Received
Cash from Operations:
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
Non Operating (Other) Income
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
Payment of Accounts Payable
Subtotal Spent on Operations
Additional Cash Spent
Non Operating (Other) Expense
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
Net Cash Flow
Cash Balance
0.00%
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
$29,350
$0
$29,350
$29,350
$0
$29,350
$29,350
$0
$29,350
$29,350
$0
$29,350
$29,350
$0
$29,350
$27,550
$0
$27,550
$33,440
$0
$33,440
$33,440
$0
$33,440
$40,750
$0
$40,750
$50,135
$0
$50,135
$50,135
$0
$50,135
$55,180
$0
$55,180
$0
$0
$1,000
$200
$0
$0
$0
$100
$30,650
$0
$0
$800
$0
$0
$0
$0
$150
$30,300
$0
$0
$800
$0
$0
$0
$0
$150
$30,300
$0
$0
$800
$200
$0
$0
$0
$150
$30,500
$0
$0
$800
$200
$0
$0
$0
$1,000
$31,350
$0
$0
$1,200
$200
$0
$0
$0
$1,000
$29,950
$0
$0
$500
$200
$0
$0
$0
$1,011
$35,151
$0
$0
$500
$200
$0
$0
$0
$1,001
$35,141
$0
$0
$500
$200
$0
$0
$0
$100
$41,550
$0
$0
$500
$202
$1,500
$0
$0
$100
$52,437
$0
$0
$500
$0
$1,500
$0
$0
$1,000
$53,135
$0
$0
$500
$200
$1,500
$0
$0
$100
$57,480
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
$1,935
$17,770
$19,704
$1,935
$30,718
$32,653
$1,936
$30,728
$32,664
$1,936
$30,739
$32,675
$1,937
$30,749
$32,686
$1,893
$31,196
$33,088
$2,357
$31,305
$33,662
$2,338
$35,280
$37,619
$2,850
$34,548
$37,399
$3,086
$36,731
$39,817
$3,084
$38,774
$41,858
$3,391
$38,187
$41,578
$0
$0
$0
$0
$0
$0
$1,080,000
$0
$1,099,704
$0
$0
$0
$200
($1,075)
$0
$0
$0
$31,778
$0
$0
$0
$200
($1,081)
$0
$0
$0
$31,784
$0
$0
$0
$0
($1,086)
$0
$0
$0
$31,589
$0
$0
$0
$0
($1,091)
$0
$0
$0
$31,594
$0
$0
$0
$0
($1,097)
$0
$0
$0
$31,992
$0
$0
$0
$0
($1,102)
$0
$0
$0
$32,559
$0
$0
$0
$0
($1,108)
$0
$0
$0
$36,511
$0
$0
$0
$0
($1,113)
$0
$0
$0
$36,285
$0
$0
$0
$0
($1,119)
$0
$0
$0
$38,699
$0
$0
$0
$250
($1,125)
$0
$0
$0
$40,983
$0
$0
$0
$0
($1,130)
$0
$0
$0
$40,448
($1,069,05
4)
$42,276
($1,478)
($1,484)
($1,089)
($244)
($2,042)
$2,592
($1,370)
$5,265
$13,738
$12,152
$17,032
$40,797
$39,314
$38,225
$37,981
$35,939
$38,530
$37,161
$42,425
$56,164
$68,316
$85,348
Page 5
Appendix
Appendix Table: Balance Sheet
Pro Forma Balance Sheet
Assets
Current Assets
Cash
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Starting Balances
$1,111,330
$12,000
$1,123,330
Jan
$42,276
$12,000
$54,276
Feb
$40,797
$12,000
$52,797
Mar
$39,314
$12,000
$51,314
Apr
$38,225
$12,000
$50,225
May
$37,981
$12,000
$49,981
Jun
$35,939
$12,000
$47,939
Jul
$38,530
$12,000
$50,530
Aug
$37,161
$12,000
$49,161
Sep
$42,425
$12,000
$54,425
Oct
$56,164
$12,000
$68,164
Nov
$68,316
$12,000
$80,316
Dec
$85,348
$12,000
$97,348
$120,000
$0
$120,000
$1,243,330
$1,200,000
$0
$1,200,000
$1,254,276
$1,200,000
$1,111
$1,198,889
$1,251,686
$1,200,000
$2,222
$1,197,778
$1,249,092
$1,200,000
$3,333
$1,196,667
$1,246,892
$1,200,000
$4,444
$1,195,556
$1,245,537
$1,200,000
$5,555
$1,194,445
$1,242,384
$1,200,000
$6,666
$1,193,334
$1,243,864
$1,200,000
$7,777
$1,192,223
$1,241,384
$1,200,000
$8,888
$1,191,112
$1,245,537
$1,200,000
$9,999
$1,190,001
$1,258,165
$1,200,000
$11,110
$1,188,890
$1,269,206
$1,200,000
$12,221
$1,187,779
$1,285,127
$3,890
$5,000
$0
$8,890
Jan
$16,833
$6,000
$200
$23,033
Feb
$16,837
$6,800
$0
$23,637
Mar
$16,841
$7,600
($200)
$24,241
Apr
$16,846
$8,400
$0
$25,246
May
$16,850
$9,200
$200
$26,250
Jun
$16,465
$10,400
$400
$27,265
Jul
$20,503
$10,900
$600
$32,003
Aug
$20,342
$11,400
$800
$32,542
Sep
$24,797
$11,900
$1,000
$37,697
Oct
$26,849
$12,400
$1,202
$40,451
Nov
$26,827
$12,900
$952
$40,679
Dec
$29,501
$13,400
$1,152
$44,053
Long-term Liabilities
Total Liabilities
$1,080,000
$1,088,890
$1,080,000
$1,103,033
$1,081,075
$1,104,712
$1,082,156
$1,106,397
$1,083,242
$1,108,487
$1,084,333
$1,110,583
$1,085,430
$1,112,695
$1,086,532
$1,118,535
$1,087,640
$1,120,182
$1,088,753
$1,126,450
$1,091,372
$1,131,823
$1,093,997
$1,134,676
$1,096,627
$1,140,679
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
$246,000
($91,560)
$0
$154,440
$1,243,330
$154,440
$246,100
($91,560)
($3,297)
$151,243
$1,254,276
$151,243
$246,250
($91,560)
($7,716)
$146,974
$1,251,686
$146,974
$246,400
($91,560)
($12,145)
$142,695
$1,249,092
$142,695
$246,550
($91,560)
($16,585)
$138,405
$1,246,892
$138,405
$247,550
($91,560)
($21,036)
$134,954
$1,245,537
$134,954
$248,550
($91,560)
($27,301)
$129,689
$1,242,384
$129,689
$249,561
($91,560)
($32,671)
$125,330
$1,243,864
$125,330
$250,562
($91,560)
($37,800)
$121,202
$1,241,384
$121,202
$250,662
($91,560)
($40,014)
$119,088
$1,245,537
$119,088
$250,762
($91,560)
($32,860)
$126,342
$1,258,165
$126,342
$251,762
($91,560)
($25,672)
$134,530
$1,269,206
$134,530
$251,862
($91,560)
($15,854)
$144,448
$1,285,127
$144,448
Page 6