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JT B Technologies
JT B Technologies
JT B Technologies
This sample business plan has been made available to users of Business Plan Pro, business planning
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Confidentiality Agreement
Table of Contents
1.0 Executive Summary.............................................................................................................................1
Chart: Highlights ......................................................................................................................2
1.1 Mission........................................................................................................................................2
1.2 Keys to Success ........................................................................................................................3
1.3 Objectives ...................................................................................................................................3
2.0 Company Summary.............................................................................................................................3
2.1 Start-up Summary ......................................................................................................................4
Chart: Start-up .........................................................................................................................5
Table: Start-up .........................................................................................................................6
Table: Start-up Funding ..........................................................................................................7
2.2 Company Locations and Facilities ..........................................................................................7
2.3 Company Ownership .................................................................................................................8
3.0 Products and Services........................................................................................................................8
3.1 Product and Service Description...........................................................................................10
3.2 Competitive Comparison........................................................................................................10
3.3 Fulfillment ..................................................................................................................................11
3.4 Technology ...............................................................................................................................11
3.5 Future Products and Services ................................................................................................12
4.0 Market Analysis Summary................................................................................................................12
4.1 Market Segmentation..............................................................................................................13
Table: Market Analysis .........................................................................................................13
Chart: Market Analysis (Pie)................................................................................................14
4.2 Target Market Segment Strategy...........................................................................................14
4.2.1 Market Trends .............................................................................................................14
4.2.2 Market Needs ..............................................................................................................15
4.3 Service Business Analysis .....................................................................................................15
4.3.1 Distributing a Service .................................................................................................16
4.3.2 Competition and Buying Patterns .............................................................................16
4.3.3 Main Competitors .......................................................................................................17
5.0 Strategy and Implementation Summary..........................................................................................17
5.1 Value Proposition ....................................................................................................................17
5.2 Competitive Edge....................................................................................................................18
5.3 Marketing Strategy ..................................................................................................................18
5.3.1 Pricing Strategy...........................................................................................................18
5.3.2 Promotion Strategy.....................................................................................................19
5.3.3 Distribution Strategy ...................................................................................................19
5.3.4 Marketing Programs ...................................................................................................19
5.3.5 Positioning Statement ................................................................................................20
5.4 Strategic Alliances...................................................................................................................20
5.5 Sales Strategy..........................................................................................................................20
5.5.1 Sales Forecast ............................................................................................................22
Table: Sales Forecast.................................................................................................23
Chart: Sales Monthly ...................................................................................................23
Chart: Sales by Year ...................................................................................................24
5.6 Milestones ................................................................................................................................24
Table: Milestones..................................................................................................................26
Chart: Milestones ..................................................................................................................26
Page 1
Table of Contents
6.0 Web Plan Summary ..........................................................................................................................26
6.1 Website Marketing Strategy...................................................................................................27
7.0 Management Summary ....................................................................................................................28
7.1 Middle Management Team.....................................................................................................28
7.2 Personnel Plan.........................................................................................................................29
Table: Personnel ...................................................................................................................30
8.0 Financial Plan ....................................................................................................................................31
8.1 Important Assumptions............................................................................................................32
Table: General Assumptions ...............................................................................................32
8.1.1 Assumptions Notation ................................................................................................32
8.2 Key Financial Indicators ..........................................................................................................33
Chart: Benchmarks ...............................................................................................................34
8.3 Break-even Analysis................................................................................................................35
Chart: Break-even Analysis .................................................................................................35
Table: Break-even Analysis .................................................................................................35
8.4 Projected Profit and Loss .......................................................................................................36
Table: Profit and Loss ..........................................................................................................37
Chart: Profit Monthly .............................................................................................................38
Chart: Profit Yearly................................................................................................................38
Chart: Gross Margin Monthly ...............................................................................................39
Chart: Gross Margin Yearly..................................................................................................39
8.5 Projected Cash Flow...............................................................................................................40
Table: Cash Flow..................................................................................................................41
Chart: Cash ...........................................................................................................................42
8.6 Projected Balance Sheet ........................................................................................................43
Table: Balance Sheet ...........................................................................................................44
8.7 Business Ratios .......................................................................................................................45
Table: Ratios .........................................................................................................................46
8.8 Long-term Plan.........................................................................................................................48
Chart: Long-term ...................................................................................................................48
Table: Sales Forecast ...............................................................................................................................1
Table: Personnel ........................................................................................................................................2
Table: General Assumptions ....................................................................................................................3
Table: Profit and Loss ...............................................................................................................................4
Table: Cash Flow .......................................................................................................................................6
Table: Balance Sheet ................................................................................................................................7
Table: Long-term ........................................................................................................................................8
Page 2
High percentage of minority ownership will allow the business to participate in spec ialinterest contrac t bids, special employee-training grant proc urement, and state offered
business development bond offerings.
The ability of management to work towards developing other avenues of business,
including Military and other governmental proc urement fulfillment.
Based on the current prices in the Industrial Products and Services market, JTB Technologies,
Inc has the potential of making sales of $1,008,798 by year two of the plan. With good
management, a revenue growth of 29% annually is expec ted.
The equity for eac h investor will be based on his or her investment.
Page 1
1.1 Mission
JTB will develop and offer only the highest quality products and services.
Our products will reduce customers' c osts, and have a longer life than the competitors'
products.
Our re-manufacturing services will also offer the client a solid, value-based purchase
bac ked by a 100% quality commitment and effort by our employees and management.
Using JTB's own manufacturing fac ility as a model and test bed for our products, JTB will
provide the mid-sized corporate market with new and exciting ways to cost effectively manage
all external vendor and customer transactions, yielding continual savings for the users of our
products and services. Our manufacturing partners will also add value to our offering of services,
further allowing JTB to grow into a high-quality, long-term growth c orporation.
Page 2
2.
Foc used and well-defined long-range goals for longevity. Our plan has been developed
to allow flexibility and growth.
3.
4.
Strong marketing goals with niche products and services; targeted services and
products delivered with unique marketing approaches.
5.
6.
Previous base of high-quality external support vendors available to build on, with over
twenty years of industry contac ts to work with, in both the purchasing of quality
products, and also in the marketing of our own products.
7.
1.3 Objectives
Our primary objectives are to:
1.
2.
3.
4.
Integrate our products and services into the desired marketplac es.
Utilize our technology products to gain market share.
Resell this technology and its required support services.
Provide our clients with high-quality products and services while maintaining high
profitability.
JTB Technologies, Inc. will be loc ated in Richfield, Louisiana. This loc ation is very close to the IPage 3
In addition to providing these clients with industrial products, JTB's sub-divisions will also provide
technical expertise, engineering assistance and all types of outsourced industrial services.
JTB's services division will be utilized for these services in many cases.
Page 5
$5,400
$1,600
$11,500
$2,000
$9,000
Insurance
Rent
Research and Development
Patent Process
Computers, Office Equipment, Software
Accounting System
Demo Models
Office Supplies
Total Start-up Expenses
$2,250
$2,250
$18,000
$18,000
$18,700
$3,500
$1,200
$2,500
$95,900
Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets
$496,250
$22,000
$17,000
$79,500
$614,750
Total Requirements
$710,650
Page 6
$95,900
$614,750
$710,650
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$118,500
$496,250
$0
$496,250
$614,750
$0
$253,150
$2,500
$0
$255,650
Capital
Planned Investment
Investment- Industrial Sales Div
Investment- Ind Products and Services Div
Investment- Integrated Tech Div
Additional Investment Requirement
Total Planned Investment
$0
$230,000
$225,000
$0
$455,000
($95,900)
$359,100
$614,750
Total Funding
$710,650
Page 7
Specialty Engineering to reduce the clients production costs through new Tool
Applications.
Reselling quality Industrial products to fulfill clients engineered production needs.
Contrac t Bid services, and Contrac t Servicing.
Manufac turing patented products from the JTB line of Automotive Tool products.
JTB's - Max-Drill line of specialty hole producing cutting tools.
JTB's - Max-Kut Commercial waterline hole cutting tools.
JTB's - Maxi-Kut Insert style drill system for the Sports service Industry.
Page 8
Page 9
Manufac turing of patented products from the JTB line of Automotive Tool products.
Manufac turing of patented JTB - Max-Drill commercial waterline hole cutting tools.
Manufac turing of patented JTB - Max-Kut Insert style drill system for the Sports
service Industry.
Providing reconditioning for the Max-Kut Commercial hole cutter line.
Providing reconditioning for the Max-Kut drill system for the Sports service Industry.
Providing reconditioning of industrial tools sold by JTB's Industrial Sales Division.
Web Content
Industra - Industrial and commercial website system.
Industrial search engine technology.
Industrial and Commercial Web development.
Industrial and Commercial Hosting and Marketing support.
Data management applications.
3.3 Fulfillment
In addition to direct reselling of products from affiliated manufacturers, our mix of nearly 300,000
industrial and safety products available through our catalog will allow us to compete against
the much larger catalog suppliers.
JTB Products and Services fulfillment proc ess includes developing our own product offering
combined with well-managed secondary services which c ompliment our products, and postsales services for the industrial sales division's clientele as well.
JTB's Integrated Technologies Division will fulfill its clients' needs by developing its own media
to support our Web-based products. This media will handle customer support and download
capabilities for clients to ac cess our products. Boxed CD versions of our products will be
available in our inventory, and shipped as needed. Further fulfillment comes when our staff, or an
outsourced engineer, travels to a client to make a hardware or software installation.
3.4 Technology
Computer-Controlled Equipment
With the proper mix of equipment, JTB can work as both a manufacturer and a service provider,
repairing its own products, and it's competitors products as well. Additionally, the equipment
gives the business an opportunity to sell itself at the production managers level, as well as at
the shop level, forging solid ties with production and engineering managers.
P.C.-based business applications
JTB will develop its own P.C.- based sales and marketing help systems for its employees to use
during the sales proc ess. Our applications will have extensions to our Internet sites to aid the
customer relations and sales proc ess. Our goal is to have extensive in-house Web development
capabilities via our Integrated Technologies Division. Additional plans include multiple industrial
portals for our advertising needs, and custom sales applications for licensing.
3-D Prototype Technology
Page 11
The Louisiana market consists of 4,553 potential clients in the same categories.
These industries represent our intended target market. Our sales goal is to integrate our
Industrial Products and Services into the above markets. Our sales approach is simple, utilizing
a well-trained, inside sales staff to approach new clients, and to respond to well-plac ed ads in
industrial publications. Our P.C.- based server applications will make it possible for these
businesses to interac t closely with JTB and its distributor partners.
Page 12
Our customers are seeking cost reduction in their daily operations. As JTB will function
as a distributor and a service provider, we can deliver custom specialty products
faster, with fair, competitive prices.
All of the above markets are seeking longer product life, resulting in higher profitability.
Our overall experience in mac hining, grinding, and production management can provide our
clients with actual measurable results.
All market segments purchase similar products and services, consolidating our internal
purchasing and marketing costs, maximizing long range profitability, while reducing
external costs as we gradually implement our order plac ement systems.
All market segments can be serviced via existing modes of transportation (UPS, Fedex,
DHL).
Year 1
Year 2
Year 3
Year 4
Year 5
Growth
3%
25,587
26,355
27,146
27,960
28,799
CAGR
3.00%
9%
61,228
66,739
72,746
79,293
86,429
9.00%
2%
7%
4,000
210,000
4,080
224,700
4,162
240,429
4,245
257,259
4,330
275,267
2.00%
7.00%
7%
6,058
6,482
6,936
7,422
7,942
7.00%
9%
6.97%
3,149
310,022
3,149
331,505
3,149
354,568
3,149
379,328
3,149
405,916
0.00%
6.97%
Page 13
The above client numbers are based on data available from Hugo Dunhill Mailing Lists, Inc., our
preferred database provider. Larger firms like Peoplesoftware, Profit2100, Dimasystems, and
Net2soft have developed very expensive software and netware pac kages starting at $10,000 $50,000 and up. Our cost analysis has shown that there are many cost competitive options
available for businesses to choose from, in many cases they are simply unaware they are
available. As a service business that will utilize our own products, we can market and demo our
products simultaneously, further reducing our costs per solicitation.
JTB's integrated technologies services business consists of developing customized business
Page 15
Page 17
Develop a high-profile sales environment, to bring our products to new and existing
clients.
Develop new ways to market our products to potential clients via our branded
applications and credibility.
Develop manufacturing partnerships utilizing our Web-based applications.
Develop and maintain a high-quality customer service and follow-up program for all of
the JTB divisions.
Develop and utilize an ongoing automated marketing system to contac t potential clients.
Carefully target marketing expenditures to maximize returns on the campaigns.
2.
3.
4.
5.
Internet based industrial website banner Ads. As we develop our industrial Internet
marketplac es, we will plac e ads into our sites and many other industrial products' sites as
well.
Promotional, e-mail-based product e-flyers. As we collect users at our sites, we will
build a sales proc ess of delivering e-mail-based promotions to our visitors, highlighting our
products and services.
Catalog supplemental flyer programs delivered with all shipments. Our shipping department
will include inventory specials with all boxed shipments to our clients, saving much of
the mailing costs.
Fax-based spec ial promotions. When allowed, we hope to target purchasing agents and
buyers with our spec ials. In all cases and methods of delivery, we can build a promotional
special to target our clients' purchasing history.
Direct telephone solicitation while taking orders. Our sales staff will close all order calls
with a quick overview of our sales specials.
Page 19
Page 21
Page 22
Year 2
Year 3
Year 4
Year 5
Sales
Industrial Sales Division
$206,525
$347,300
$433,420
$542,963
$674,518
$354,705
$23,204
$584,434
$461,550
$199,948
$1,008,798
$601,569
$268,330
$1,303,319
$729,944
$331,797
$1,604,704
$902,842
$443,411
$2,020,771
Year 1
$128,259
Year 2
$212,185
Year 3
$263,461
Year 4
$315,420
Year 5
$407,383
$199,051
$8,448
$335,758
$229,974
$35,795
$477,954
$279,739
$55,219
$598,419
$342,839
$66,051
$724,310
$419,700
$90,527
$917,610
Page 23
5.6 Milestones
Secure Leasing, Banking, and Attorney Arrangements - Long term arrangements to secure
the equipment financing, banking relations, and general and patent attorney needs.
Setup JTB's Industrial Services Location - Prepare working area for incoming equipment,
wiring, shipping and receiving areas, networked ac counting systems, and develop a work flow
methodology for the entire shop.
Complete the equipment selections and installation - Equipment will be selected from
various mac hine tool dealers throughout the U.S. These mac hine tools will be inspec ted closely
for quality, selecting the best possible pieces while working within our budget.
Contractor selection for outsourced manufacturing - Competing contrac t manufacturers
will be providing sample parts and quotations for our products. In particular, contrac tors will be
quoting on the Automotive and Sporting Goods lines, as they have the highest potential
volume and will require substantially more manufacturing capacity than we will have available.
Contracted Application Developer selection - JTB will contrac t for a long-term relationship
partner seeking a progressive, well-established multi-talented individual to create the desired P.
C.- based business applications we plan to develop as part of our product offering. This individual
will work closely with management in a hands- on fashion to custom-develop the base code
needed for our application.
Re-establishment of Business Contacts - Our sales manager will personally work to reestablish all of his previous business relationships in the industry, working to build both c lient and
vendor relationships.
JTB Service associate selection and training - Service Associates will be from a production
Page 24
Page 25
Start Date
2/1/2005
End Date
2/15/2005
Budget
$1,500
Manager
M.Jeremy
Department
Management
2/1/2005
2/1/2005
3/1/2005
6/15/2005
$6,500
$125,000
M.Jeremy
M.Jeremy
Management
P&S Div
2/15/2005
3/15/2005
$3,500
M.Jeremy
P&S Div
2/15/2005
2/15/2005
3/1/2005
3/15/2005
3/1/2006
1/30/2006
$3,500
$2,000
$3,500
M.Jeremy
M.Jeremy
R.Jeremy
IT Div
IS Div
P&S Div
3/1/2005
3/1/2006
$2,500
M.Jeremy
IS Division
3/10/2005
4/14/2005
10/1/2005
12/15/2006
$15,000
$9,000
R.Jeremy
M.Jeremy
P&S Div
IT Div
4/15/2005
4/15/2005
4/15/2005
8/15/2005
9/15/2005
12/15/2006
$12,000
$7,500
$4,500
M.Jeremy
M.Jeremy
M.Jeremy
IT Div
IT Div
IS Division
6/1/2005
5/30/2007
$5,000
M.Jeremy
IT Div
$201,000
Page 27
Page 29
Year 2
Year 3
Year 4
Year 5
$9,600
$48,000
$10,800
$36,000
$35,200
$8,800
$148,400
$9,600
$50,000
$14,000
$10,800
$24,000
$21,000
$129,400
$14,400
$50,000
$14,000
$10,800
$28,000
$23,000
$140,200
$18,800
$50,000
$14,000
$10,800
$29,500
$25,000
$148,100
$22,500
$50,000
$14,000
$10,800
$31,500
$28,000
$156,800
$30,000
$9,000
$7,800
$3,600
$4,450
$54,850
$30,000
$14,000
$33,000
$14,000
$7,000
$98,000
$31,000
$16,500
$34,000
$16,000
$21,000
$118,500
$31,000
$19,000
$34,000
$18,000
$27,000
$129,000
$31,000
$22,500
$34,000
$20,000
$31,000
$138,500
$43,200
$15,800
$59,000
$43,500
$19,000
$62,500
$44,000
$20,000
$64,000
$45,000
$22,000
$67,000
$45,000
$24,000
$69,000
Name or Title
Name or Title
Name or Title
Subtotal
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total People
13
13
13
13
13
Total Payroll
$262,250
$289,900
$322,700
$344,100
$364,300
Production Personnel
Shipping and Receiving
Application Developer
Part-time App Dev/QA
Web Developer
Service Team Manager
Service Team Member
Subtotal
Other Personnel
Page 30
To develop the Industrial Sales Division of the corporation, JTB's financial plan is
based on receiving $181,000 (USD) in long-term loans. To maintain Gross Margins of
36% or better, the Industrial Sales Division will also help develop and create Internetbased industrial sales applications and portals in c onjunction with our Integrated
Technologies Division.
2.
To develop the Products and Services Division of the corporation, JTB's financial plan
is based on raising $230,000 (USD) by way of private equity to set up the products and
services division of the corporation. An additional $45,000 for equipment will be
obtained as a long-term loan. These operational costs are shown in the operating
statements projected in this plan. Management expec ts to ac hieve a small but stable
net profit on sales in just over two years.
3.
The consolidated financial plan combines all divisional operating costs, including personnel,
equipment, loc ation costs, depreciation etc. For ac curac y and organizational reasons, we
have developed three related sub-plans, as eac h provides exac t details of eac h sub-division
goals and position within the corporation. JTB Technologies, Inc. will behave more like a holding
company. For this overall plan, the industry profile selected for comparison purposes was an
automotive parts and supplies manufacturer, since our combined companies are very similar to
this in terms of developing, manufacturing, servicing, and marketing tangible mac hinery
products for end-users. After year five of the plan, management hopes to develop or purchase
other divisions.
By the end of FY 2 of this plan, JTB will have developed sales revenue of $1,008,798 (USD) with
a Gross Margin on sales of 39.35%. By the end of FY 3 of this plan JTB will have developed
sales growth of 29% over year one, and sales of $1,303,319 (USD), while the Gross Margin on
sales has increased as the corporation improves on overall performance.
The exit for this plan has been left open; this can be disc ussed in detail after the plans' review. I
would provide a full recalculated version based on the investors' requirements. Further disc ussion
on the patented products' ac tual values, and expec ted percentages of the investors'
ownership are left open as well.
Page 31
The General Assumptions table below is utilized by the business plan to perform calculations on
the expec ted conditions in the business plan. These fac tors also play heavily into the business'
long-term plan, assuming the business can be developed in its entirety in one loc ation. This
greatly reduces operating costs, and provides a more flexible staff situation for cross- training
and other issues.
Upon reviewing the plan, you may have noticed management has mentioned expansion through
use of its online marketing system via numerous channel partners throughout the U.S. The
possible revenues from this have not been added into any projections. Management's position on
the plan's assumptions is that we can make better long-term arrangements, which should
better the projected cash position shown.
Year 1
1
10.00%
10.00%
0.00%
0
Year 2
2
10.00%
10.00%
30.00%
0
Year 3
3
10.00%
10.00%
0.00%
0
Year 4
4
10.00%
10.00%
30.00%
0
Year 5
5
10.00%
10.00%
0.00%
0
2.
3.
4.
5.
Sales growth in this plan does extremely well, as the business offers a broad range of
products and services. Growth of approximately 37% per year can also be attributed to
the unique marketing products that we will develop and use in our marketing proc ess to
reac h c ustomers all over the U.S.
Gross Margins in this plan average 38% annually, and are attributed to our products
and services selections and how they apply to their individual markets. Our intranetbased inside sales and marketing products provide our sales staff with the ability to
calculate the margins per order plac ed while proc essing orders. Product and Vendor
selections play a key role in profitability as well.
Operating Expenses in this plan remain stable as the projected personnel plan, and
operating expenses are essentially fixed during the first five years of the plan.
Inventory Turnover in the business plan shows good control over the planned
inventory, and short and JIT ordering is not a problem. In many cases, we will
implement vendor drop shipments, further lessening the need for additional inventory.
Some inventory lag could oc cur if a client wants inventory on hand for special
products; we would then be required to stoc k these products.
Collection Days are set to average 45 days. One key goal will be for the business to
target financially healthy businesses. We also anticipate a very large market of small
order purchases plac ed with c redit card or e-chec k via the internet.
Page 33
Page 34
$49,492
Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost
57%
$21,059
Page 35
Page 36
Year 2
$1,008,798
$477,954
$129,400
$4,500
$611,854
Year 3
$1,303,319
$598,419
$140,200
$4,500
$743,119
Year 4
$1,604,704
$724,310
$148,100
$4,500
$876,910
Year 5
$2,020,771
$917,610
$156,800
$4,500
$1,078,910
$95,776
16.39%
$396,944
39.35%
$560,200
42.98%
$727,794
45.35%
$941,861
46.61%
$54,850
$13,800
$0
$0
$68,650
$98,000
$18,000
$0
$0
$116,000
$118,500
$24,300
$0
$0
$142,800
$129,000
$25,300
$0
$0
$154,300
$138,500
$26,300
$0
$0
$164,800
11.75%
11.50%
10.96%
9.62%
8.16%
$59,000
$8,400
$10,696
$62,500
$14,700
$10,700
$64,000
$23,500
$10,700
$67,000
$25,000
$10,700
$69,000
$30,200
$10,700
Rent (consolidated)
Utilities (consolidated)
Equipment lease Ind Prod Div
Prototype and Printing Equipment
Insurance (consolidated)
Payroll Taxes (consolidated)
$26,400
$14,300
$35,988
$10,710
$12,000
$0
$26,400
$15,000
$35,988
$12,852
$18,000
$0
$26,400
$15,800
$35,988
$12,852
$20,000
$0
$26,400
$16,200
$35,988
$12,852
$22,000
$0
$26,400
$16,700
$35,988
$12,852
$24,000
$0
$4,200
$360
$2,000
$4,400
$400
$3,000
$4,600
$400
$4,000
$4,600
$400
$5,000
$4,600
$400
$6,000
$184,054
$203,940
$218,240
$226,140
$236,840
31.49%
20.22%
16.74%
14.09%
11.72%
$0
$0
$0
$6,000
$0
$6,000
$0
$6,000
$0
$6,000
$0
$0
0.00%
$0
$6,000
0.59%
$0
$6,000
0.46%
$0
$6,000
0.37%
$0
$6,000
0.30%
$252,704
$325,940
$367,040
$386,440
$407,640
($156,928)
($146,232)
$24,425
$71,004
$81,704
$22,849
$193,160
$203,860
$21,202
$341,354
$352,054
$19,556
$534,221
$544,921
$17,909
Taxes Incurred
$0
$14,447
$0
$96,539
$0
Net Profit
Net Profit/Sales
($181,353)
-31.03%
$33,709
3.34%
$171,958
13.19%
$225,259
14.04%
$516,312
25.55%
Sales
Direct Cost of Sales
Production Payroll
Contracted Graphics Development
Total Cost of Sales
Gross Margin
Gross Margin %
Operating Expenses
Page 37
Page 38
Page 39
Page 40
Year 2
Year 3
Year 4
Year 5
$146,109
$329,424
$475,532
$252,200
$677,524
$929,723
$325,830
$922,609
$1,248,439
$401,176
$1,147,369
$1,548,545
$505,193
$1,438,049
$1,943,242
$0
$0
$0
$0
$0
$0
$0
$475,532
$0
$0
$0
$0
$0
$0
$0
$929,723
$0
$0
$0
$0
$0
$0
$350,000
$1,598,439
$0
$0
$0
$0
$0
$0
$0
$1,548,545
$0
$0
$0
$0
$0
$0
$0
$1,943,242
Year 1
Year 2
Year 3
Year 4
Year 5
$262,250
$449,376
$711,626
$289,900
$701,593
$991,493
$322,700
$792,628
$1,115,328
$344,100
$1,015,100
$1,359,200
$364,300
$1,146,492
$1,510,792
$0
$0
$0
$16,428
$0
$0
$0
$16,466
$0
$0
$0
$16,466
$0
$0
$0
$16,466
$0
$0
$0
$16,466
$0
$0
$0
$0
$0
$0
$0
$0
$320,000
$0
$0
$70,000
$0
$0
$160,000
$728,054
$1,007,959
$1,451,794
$1,445,666
$1,687,258
($252,522)
$243,728
($78,236)
$165,492
$146,644
$312,137
$102,879
$415,015
$255,984
$670,999
Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
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
Page 41
Page 42
Page 43
Year 2
Year 3
Year 4
Year 5
Current Assets
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
$243,728
$108,902
$65,223
$17,000
$434,854
$165,492
$187,977
$68,090
$17,000
$438,559
$312,137
$242,857
$74,983
$17,000
$646,977
$415,015
$299,017
$87,737
$17,000
$818,769
$670,999
$376,546
$116,340
$17,000
$1,180,885
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
$79,500
$10,696
$68,804
$503,658
$79,500
$21,396
$58,104
$496,663
$79,500
$32,096
$47,404
$694,381
$79,500
$42,796
$36,704
$855,473
$79,500
$53,496
$26,004
$1,206,889
Year 1
Year 2
Year 3
Year 4
Year 5
$89,189
$0
$0
$89,189
$64,952
$0
$0
$64,952
$77,178
$0
$0
$77,178
$99,477
$0
$0
$99,477
$111,047
$0
$0
$111,047
$236,722
$325,911
$220,256
$285,208
$203,790
$280,968
$187,324
$286,801
$170,858
$281,905
$455,000
($95,900)
($181,353)
$455,000
($277,253)
$33,709
$805,000
($563,545)
$171,958
$805,000
($461,587)
$225,259
$805,000
($396,328)
$516,312
Total Capital
Total Liabilities and Capital
$177,747
$503,658
$211,455
$496,663
$413,413
$694,381
$568,672
$855,473
$924,984
$1,206,889
Net Worth
$177,747
$211,455
$413,413
$568,672
$924,984
Assets
Page 44
Page 45
Year 2
72.61%
Year 3
29.20%
Year 4
23.12%
21.62%
12.95%
3.38%
86.34%
13.66%
100.00%
37.85%
13.71%
3.42%
88.30%
11.70%
100.00%
34.97%
10.80%
2.45%
93.17%
6.83%
100.00%
34.95%
10.26%
1.99%
95.71%
4.29%
100.00%
31.20%
9.64%
1.41%
97.85%
2.15%
100.00%
24.07%
46.47%
15.56%
86.10%
13.90%
100.00%
17.71%
47.00%
64.71%
35.29%
13.08%
44.35%
57.42%
42.58%
11.11%
29.35%
40.46%
59.54%
11.63%
21.90%
33.53%
66.47%
9.20%
14.16%
23.36%
76.64%
45.21%
15.13%
60.34%
39.66%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
16.39%
47.42%
2.36%
-26.85%
39.35%
36.01%
1.78%
7.04%
42.98%
29.79%
1.86%
14.82%
45.35%
31.32%
1.58%
21.27%
46.61%
21.06%
1.30%
26.44%
19.32%
11.47%
0.31%
0.58%
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
4.88
4.14
64.71%
-102.03%
-36.01%
6.75
5.70
57.42%
22.77%
9.70%
8.38
7.41
40.46%
41.59%
24.76%
8.23
7.35
33.53%
56.59%
37.62%
10.63
9.59
23.36%
55.82%
42.78%
1.76
0.67
64.48%
1.69%
4.75%
Additional Ratios
Net Profit Margin
Return on Equity
Year 1
-31.03%
-102.03%
Year 2
3.34%
15.94%
Year 3
13.19%
41.59%
Year 4
14.04%
39.61%
Year 5
25.55%
55.82%
n.a
n.a
Activity Ratios
Accounts Receivable Turnover
Collection Days
Inventory Turnover
Accounts Payable Turnover
4.02
42
9.99
6.01
4.02
72
7.17
10.43
4.02
80
8.37
10.43
4.02
82
8.90
10.43
4.02
81
8.99
10.43
n.a
n.a
n.a
n.a
Payment Days
Total Asset Turnover
31
1.16
42
2.03
32
1.88
31
1.88
33
1.67
n.a
n.a
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
1.83
0.27
1.35
0.23
0.68
0.27
0.50
0.35
0.30
0.39
n.a
n.a
$345,665
$373,607
$569,799
$719,292
$1,069,838
n.a
-6.42
3.11
9.11
17.46
29.83
n.a
0.86
18%
2.92
3.29
0.49
13%
2.81
4.77
0.53
11%
4.26
3.15
0.53
12%
4.34
2.82
0.60
9%
6.20
2.18
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
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Page 46
0.00
0.00
1.86
0.31
0.31
n.a
Page 47
Page 48
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
0%
$2,100
$3,740
$5,600
$10,255
$12,895
$15,375
$19,375
$22,725
$24,975
$27,545
$29,865
$32,075
0%
$1,000
$1,915
$6,220
$12,270
$18,500
$26,920
$34,300
$39,320
$45,400
$51,520
$55,520
$61,820
0%
$0
$3,100
$0
$5,655
$0
$11,820
$0
$22,525
$0
$31,395
$600
$42,895
$600
$54,275
$1,200
$63,245
$1,800
$72,175
$4,444
$83,509
$5,810
$91,195
$8,750
$102,645
Month 1
$1,295
Month 2
$2,314
Month 3
$3,500
Month 4
$6,389
Month 5
$8,023
Month 6
$9,546
Month 7
$12,046
Month 8
$14,121
Month 9
$15,501
Month 10
$17,098
Month 11
$18,525
Month 12
$19,901
$490
$0
$1,050
$0
$3,340
$0
$6,066
$0
$9,587
$0
$14,537
$384
$18,654
$384
$21,262
$768
$24,573
$1,152
$29,723
$1,577
$32,721
$1,838
$37,048
$2,345
$1,785
$3,364
$6,840
$12,455
$17,610
$24,467
$31,084
$36,151
$41,226
$48,398
$53,084
$59,294
Sales
Industrial Sales Division
Products and Services Div
Integrated Technologies Div
Total Sales
Direct Cost of Sales
Industrial Sales Division
Page 1
Appendix
Table: Personnel
Personnel Plan
Month 1
Production Personnel
Shipping and Receiving
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$800
$800
$800
$800
$800
$800
$800
$800
$800
$800
$800
$800
Application Developer
Part-time App Dev/QA
Web Developer
$4,000
$0
$3,000
$4,000
$0
$3,000
$4,000
$0
$3,000
$4,000
$1,200
$3,000
$4,000
$1,200
$3,000
$4,000
$1,200
$3,000
$4,000
$1,200
$3,000
$4,000
$1,200
$3,000
$4,000
$1,200
$3,000
$4,000
$1,200
$3,000
$4,000
$1,200
$3,000
$4,000
$1,200
$3,000
$0
$0
$7,800
$3,200
$0
$11,000
$3,200
$0
$11,000
$3,200
$0
$12,200
$3,200
$1,100
$13,300
$3,200
$1,100
$13,300
$3,200
$1,100
$13,300
$3,200
$1,100
$13,300
$3,200
$1,100
$13,300
$3,200
$1,100
$13,300
$3,200
$1,100
$13,300
$3,200
$1,100
$13,300
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
Sales Associate
Customer Support Manager
$0
$0
$0
$0
$900
$0
$900
$0
$900
$0
$900
$0
$900
$0
$900
$0
$900
$0
$900
$2,600
$900
$2,600
$900
$2,600
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,200
$1,200
$1,200
$0
$2,500
$250
$2,750
$250
$3,650
$250
$3,650
$250
$3,650
$250
$3,650
$250
$3,650
$250
$3,650
$250
$3,650
$500
$7,700
$500
$7,700
$1,450
$8,650
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$0
$1,200
$1,200
$1,200
$1,400
$1,400
$1,400
$1,600
$1,600
$1,600
$1,600
$1,600
$3,600
$4,800
$4,800
$4,800
$5,000
$5,000
$5,000
$5,200
$5,200
$5,200
$5,200
$5,200
Name or Title
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Name or Title
Name or Title
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Subtotal
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total People
10
11
11
11
11
11
13
13
13
Total Payroll
$13,900
$18,550
$19,450
$20,650
$21,950
$21,950
$21,950
$22,150
$22,150
$26,200
$26,200
$27,150
Subtotal
Other Personnel
Page 2
Appendix
Table: General Assumptions
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other
Tax Rate
Month 1
1
10.00%
Month 2
2
10.00%
Month 3
3
10.00%
Month 4
4
10.00%
Month 5
5
10.00%
Month 6
6
10.00%
Month 7
7
10.00%
Month 8
8
10.00%
Month 9
9
10.00%
Month 10
10
10.00%
Month 11
11
10.00%
Month 12
12
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
Page 3
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Sales
Direct Cost of Sales
Month 1
$3,100
$1,785
Month 2
$5,655
$3,364
Month 3
$11,820
$6,840
Month 4
$22,525
$12,455
Month 5
$31,395
$17,610
Month 6
$42,895
$24,467
Month 7
$54,275
$31,084
Month 8
$63,245
$36,151
Month 9
$72,175
$41,226
Month 10
$83,509
$48,398
Month 11
$91,195
$53,084
Month 12
$102,645
$59,294
Production Payroll
Contracted Graphics Development
Total Cost of Sales
$7,800
$375
$9,960
$11,000
$375
$14,739
$11,000
$375
$18,215
$12,200
$375
$25,030
$13,300
$375
$31,285
$13,300
$375
$38,142
$13,300
$375
$44,759
$13,300
$375
$49,826
$13,300
$375
$54,901
$13,300
$375
$62,073
$13,300
$375
$66,759
$13,300
$375
$72,969
($6,860)
-221.29%
($9,084)
-160.64%
($6,395)
-54.10%
($2,505)
-11.12%
$110
0.35%
$4,753
11.08%
$9,516
17.53%
$13,419
21.22%
$17,274
23.93%
$21,436
25.67%
$24,436
26.80%
$29,676
28.91%
$2,500
$2,750
$3,650
$3,650
$3,650
$3,650
$3,650
$3,650
$3,650
$7,700
$7,700
$8,650
$450
$1,100
$1,100
$1,150
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,950
$0
$3,850
$0
$4,750
$0
$4,800
$0
$4,900
$0
$4,900
$0
$4,900
$0
$4,900
$0
$4,900
$0
$8,950
$0
$8,950
$0
$9,900
95.16%
68.08%
40.19%
21.31%
15.61%
11.42%
9.03%
7.75%
6.79%
10.72%
9.81%
9.64%
$3,600
$4,800
$4,800
$4,800
$5,000
$5,000
$5,000
$5,200
$5,200
$5,200
$5,200
$5,200
$450
$450
$450
$450
$450
$450
$950
$950
$950
$950
$950
$950
Gross Margin
Gross Margin %
Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll
Advertising/Promotion
Other Sales and Marketing
Expenses
.
Total Sales and Marketing
Expenses
Sales and Marketing %
General and Administrative Expenses
General and Administrative Payroll
Sales and Marketing and Other
Expenses
Depreciation
$891
$891
$891
$891
$891
$891
$891
$891
$891
$891
$891
$891
Rent (consolidated)
$2,200
$2,200
$2,200
$2,200
$2,200
$2,200
$2,200
$2,200
$2,200
$2,200
$2,200
$2,200
Utilities (consolidated)
Equipment lease Ind Prod Div
$1,150
$2,999
$1,150
$2,999
$1,150
$2,999
$1,150
$2,999
$1,150
$2,999
$1,150
$2,999
$1,150
$2,999
$1,250
$2,999
$1,250
$2,999
$1,250
$2,999
$1,250
$2,999
$1,250
$2,999
$0
$950
$0
$950
$1,071
$950
$1,071
$950
$1,071
$950
$1,071
$950
$1,071
$1,050
$1,071
$1,050
$1,071
$1,050
$1,071
$1,050
$1,071
$1,050
$1,071
$1,050
15%
15%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$30
$0
$30
$0
$30
$0
$30
$0
$30
$0
$30
$2,000
$30
$0
$30
$0
$30
$0
$30
$0
$30
$0
$30
$0
$12,620
$13,820
$14,891
$14,891
$15,091
$17,091
$15,691
$15,991
$15,991
$15,991
$15,991
$15,991
Page 4
Appendix
General and Administrative %
407.11%
244.39%
125.98%
66.11%
48.07%
39.84%
28.91%
25.28%
22.16%
19.15%
17.54%
15.58%
Other Expenses:
Other Payroll
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Consultants
Other Other Expenses
Total Other Expenses
$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
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
$15,570
$17,670
$19,641
$19,691
$19,991
$21,991
$20,591
$20,891
$20,891
$24,941
$24,941
$25,891
($22,430)
($21,539)
($26,754)
($25,863)
($26,036)
($25,145)
($22,196)
($21,305)
($19,881)
($18,990)
($17,238)
($16,347)
($11,075)
($10,184)
($7,472)
($6,581)
($3,617)
($2,726)
($3,505)
($2,614)
($505)
$386
$3,785
$4,676
$2,098
$0
$2,087
$0
$2,075
$0
$2,064
$0
$2,053
$0
$2,041
$0
$2,030
$0
$2,018
$0
$2,007
$0
$1,996
$0
$1,984
$0
$1,973
$0
($24,529)
-791.24%
($28,841)
-510.01%
($28,112)
-237.83%
($24,260)
-107.70%
($21,934)
-69.86%
($19,279)
-44.95%
($13,105)
-24.15%
($9,491)
-15.01%
($5,624)
-7.79%
($5,501)
-6.59%
($2,489)
-2.73%
$1,812
1.77%
Other %
Total Operating Expenses
Profit Before Interest and Taxes
EBITDA
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales
Page 5
Appendix
Table: Cash Flow
Pro Forma Cash Flow
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$775
$0
$1,414
$1,240
$2,955
$3,347
$5,631
$6,707
$7,849
$13,147
$10,724
$20,442
$13,569
$28,146
$15,811
$36,723
$18,044
$44,294
$20,877
$51,006
$22,799
$58,665
$25,661
$65,706
$775
$2,654
$6,302
$12,339
$20,996
$31,166
$41,715
$52,535
$62,338
$71,883
$81,464
$91,367
Cash Received
$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
$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
$0
$775
$0
$2,654
$0
$6,302
$0
$12,339
$0
$20,996
$0
$31,166
$0
$41,715
$0
$52,535
$0
$62,338
$0
$71,883
$0
$81,464
$0
$91,367
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Cash Spending
Bill Payments
$13,900
$2,143
$18,550
$9,885
$19,450
$11,657
$20,650
$12,609
$21,950
$26,776
$21,950
$35,195
$21,950
$45,447
$22,150
$51,159
$22,150
$54,808
$26,200
$59,664
$26,200
$68,545
$27,150
$71,489
$16,043
$28,435
$31,107
$33,259
$48,726
$57,145
$67,397
$73,309
$76,958
$85,864
$94,745
$98,639
$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
Expenditures
0.00%
$1,369
$1,369
$1,369
$1,369
$1,369
$1,369
$1,369
$1,369
$1,369
$1,369
$1,369
$1,369
$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
$17,412
$29,804
$32,476
$34,628
$50,095
$58,514
$68,766
$74,678
$78,327
$87,233
$96,114
$100,008
($16,637)
($27,150)
($26,174)
($22,290)
($29,099)
($27,348)
($27,051)
($22,143)
($15,989)
($15,350)
($14,651)
($8,641)
Cash Balance
$479,613
$452,463
$426,290
$404,000
$374,901
$347,553
$320,502
$298,359
$282,370
$267,020
$252,369
$243,728
Page 6
Appendix
Table: Balance Sheet
Pro Forma Balance Sheet
Assets
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Starting Balances
Current Assets
Cash
Accounts Receivable
$496,250
$0
$479,613
$2,325
$452,463
$5,326
$426,290
$10,844
$404,000
$21,031
$374,901
$31,430
$347,553
$43,160
$320,502
$55,720
$298,359
$66,430
$282,370
$76,267
$267,020
$87,893
$252,369
$97,624
$243,728
$108,902
Inventory
Other Current Assets
Total Current Assets
$22,000
$17,000
$535,250
$20,215
$17,000
$519,153
$16,851
$17,000
$491,640
$10,011
$17,000
$464,145
$13,701
$17,000
$455,731
$19,371
$17,000
$442,702
$26,914
$17,000
$434,626
$34,192
$17,000
$427,414
$39,766
$17,000
$421,555
$45,349
$17,000
$420,986
$53,238
$17,000
$425,151
$58,392
$17,000
$425,386
$65,223
$17,000
$434,854
Long-term Assets
Long-term Assets
$79,500
$79,500
$79,500
$79,500
$79,500
$79,500
$79,500
$79,500
$79,500
$79,500
$79,500
$79,500
$79,500
Accumulated Depreciation
Total Long-term Assets
$0
$79,500
$891
$78,609
$1,783
$77,717
$2,674
$76,826
$3,565
$75,935
$4,457
$75,043
$5,348
$74,152
$6,239
$73,261
$7,131
$72,369
$8,022
$71,478
$8,913
$70,587
$9,805
$69,695
$10,696
$68,804
$614,750
$597,762
$569,358
$540,971
$531,666
$517,745
$508,778
$500,675
$493,924
$492,464
$495,737
$495,081
$503,658
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
$2,500
$0
$11,409
$0
$13,215
$0
$14,309
$0
$30,633
$0
$40,016
$0
$51,697
$0
$58,068
$0
$62,177
$0
$67,709
$0
$77,853
$0
$81,055
$0
$89,189
$0
$0
$2,500
$0
$11,409
$0
$13,215
$0
$14,309
$0
$30,633
$0
$40,016
$0
$51,697
$0
$58,068
$0
$62,177
$0
$67,709
$0
$77,853
$0
$81,055
$0
$89,189
Long-term Liabilities
$253,150
$251,781
$250,412
$249,043
$247,674
$246,305
$244,936
$243,567
$242,198
$240,829
$239,460
$238,091
$236,722
Total Liabilities
$255,650
$263,190
$263,627
$263,352
$278,307
$286,321
$296,633
$301,635
$304,375
$308,538
$317,313
$319,146
$325,911
Paid-in Capital
Retained Earnings
$455,000
($95,900)
$455,000
($95,900)
$455,000
($95,900)
$455,000
($95,900)
$455,000
($95,900)
$455,000
($95,900)
$455,000
($95,900)
$455,000
($95,900)
$455,000
($95,900)
$455,000
($95,900)
$455,000
($95,900)
$455,000
($95,900)
$455,000
($95,900)
Earnings
$0
($24,529)
($53,370)
($81,481)
($105,742)
($127,675)
($146,955)
($160,060)
($169,551)
($175,175)
($180,676)
($183,165)
($181,353)
Total Capital
$359,100
$334,571
$305,730
$277,619
$253,358
$231,425
$212,145
$199,040
$189,549
$183,925
$178,424
$175,935
$177,747
$614,750
$597,762
$569,358
$540,971
$531,666
$517,745
$508,778
$500,675
$493,924
$492,464
$495,737
$495,081
$503,658
Net Worth
$359,100
$334,571
$305,730
$277,619
$253,358
$231,425
$212,145
$199,040
$189,549
$183,925
$178,424
$175,935
$177,747
Page 7
Appendix
Table: Long-term
Long-term
Sales
Cost of Sales
Year 1
$584,434
$488,658
Year 2
$1,008,798
$611,854
Year 3
$1,303,319
$743,119
Year 4
$1,604,704
$876,910
Year 5
$2,020,771
$1,078,910
Year 6
$2,166,942
$1,146,672
Year 7
$2,318,189
$1,232,935
Year 8
$2,411,867
$1,283,395
Year 9
$2,550,497
$1,364,157
Year 10
$2,662,957
$1,431,032
Gross Margin
Gross Margin %
Operating Expenses
$95,776
16.39%
$252,704
$396,944
39.35%
$325,940
$560,200
42.98%
$367,040
$727,794
45.35%
$386,440
$941,861
46.61%
$407,640
$1,020,270
47.08%
$476,693
$1,085,254
46.81%
$478,899
$1,128,472
46.79%
$490,721
$1,186,340
46.51%
$507,339
$1,231,925
46.26%
$517,599
Operating Income
Net Income
Current Assets
($156,928)
($181,353)
$434,854
$71,004
$33,709
$438,559
$193,160
$171,958
$646,977
$341,354
$225,259
$818,769
$534,221
$516,312
$1,180,885
$543,577
$365,827
$1,348,152
$606,355
$408,077
$1,543,406
$637,751
$429,206
$1,734,009
$679,001
$456,968
$1,949,112
$714,326
$480,741
$2,144,024
Long-term Assets
$68,804
$58,104
$47,404
$36,704
$26,004
$15,304
$4,604
$0
$0
$0
$89,189
$236,722
$177,747
$64,952
$220,256
$211,455
$77,178
$203,790
$413,413
$99,477
$187,324
$568,672
$111,047
$170,858
$924,984
$205,573
$145,230
$1,012,653
$223,916
$119,602
$1,204,492
$229,108
$106,460
$1,398,441
$250,160
$93,744
$1,605,208
$275,017
$81,028
$1,787,979
Current Liabilities
Long-term Liabilities
Equity
Page 8