BEFORE STARTING MAKE A COPY OF THE EXCEL PROGRAM

Past Financial Information
Historic Model
1 Fifteen room lakefront fishing lodge - 35 years old, good repair.
2 Modified American Plan - seasonal family operation
3 Management Fee & Reserve for Replacement
4 No outstanding mortgage, renewable line of credit.
5 Business has been declining slightly.

Financial Projections 1 In the forecasted year-end statements for 2002 - 2004 the occupancy is declining due to
Three Year Forecast general economic conditions and a reflection of increased market competition.
Without Diversification 2 The average rate begins to show increase rate resistance starting in 2002.

Diversification Model 1 Includes Assumptions & Summary for revenue & expense base,
for New Business 2 Prepares monthly and two year forecast

Consolidated Model 1 A summary of the next three years of operations with a diversification
With Added Diversification program in place. Both revenue & expenses have been adjusted
to reflect the diversification project.
2 Income & expense projections with Balance Sheet details.

Balance Sheet 1 Integrated summary from the Consolidated Model with inclusions.

Break-even Analysis 1 Break-even chart for proposed three years of operations.

Financial Analysis 1 Summary of financial and banking ratios.

See Section 4.10 For Instructions on Excel Program

 Acme Wilderness Motel Historic Model
Income Expense Statement
Prior Year-End Current Year
1999 2000 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
Revenue
Rooms Available 3,210 3,210 - - - 450 465 450 465 465 450 465 - - 3,210
Rooms Sold 1,713 1,699 - - - 61 154 186 356 356 293 246 - - 1,652
Occupancy 53.4% 52.9% 0.0% 0.0% 0.0% 13.6% 33.1% 41.3% 76.6% 76.6% 65.1% 52.9% 0.0% 0.0% 51.5%
Average Rate $71.68 $76.25 $0.00 $0.00 $0.00 $65.57 $64.94 $69.89 $89.89 $84.27 $64.85 $56.91 $0.00 $0.00 $73.85

Accommodations 122,788 129,550 - - - 4,000 10,000 13,000 32,000 30,000 19,000 14,000 - - 122,000
Food 33,810 36,408 - - - - 2,000 4,000 9,000 9,000 7,000 5,000 - - 36,000
Liquor Sales 22,540 24,272 - - - 500 3,000 3,000 5,000 5,000 4,000 3,000 - - 23,500
Merchandise Sales 14,812 16,100 - - - 4,000 2,000 4,000 2,000 5,000 500 250 - - 17,750
Miscellaneous - - - - - - - - - - - - - - -
Gross Revenue 193950 206330 0 0 0 8500 17000 24000 48000 49000 30500 22250 0 0 199250

Direct Expenses
Food cost of goods - - - - - 970 1,150 2,150 5,050 5,050 3,250 2,850 - - 20,470
Liquor cost of goods - - - - - 150 300 300 900 900 600 300 - - 3,450
Supplies - - - - - 1,100 1,170 1,250 1,530 1,560 1,335 1,250 - - 9,195
Merchandise cost of goods sold - - - - - 1,000 500 1,000 500 1,250 200 - - - 4,450
Wages & Benefits - - - - - 2,700 4,590 6,750 14,310 15,120 6,750 545 - - 50,765
Total Direct Expenses 91,150 94,910 - - - 5,920 7,710 11,450 22,290 23,880 12,135 4,945 - - 88,330
% of Revenue 47.0% 46.0% 0.0% 0.0% 0.0% 69.6% 45.4% 47.7% 46.4% 48.7% 39.8% 22.2% 0.0% 0.0% 44.3%

Gross Profit 102,800 111,420 - - - 2,580 9,290 12,550 25,710 25,120 18,365 17,305 - - 110,920
% of Revenue 53.0% 54.0% 0.0% 0.0% 0.0% 30.4% 54.6% 52.3% 53.6% 51.3% 60.2% 77.8% 0.0% 0.0% 55.7%

General Expenses
Administrative - - - 1,090 1,350 1,645 2,680 2,792 1,960 1,645 - - 13,162
Utilities - - - 410 697 1,025 2,175 2,295 1,375 1,025 - - 9,002
Marketing - - - 300 510 750 1,590 1,680 1,005 750 - - 6,585
Repairs & Maintenance - - - 460 782 1,150 2,438 2,575 1,540 1,150 - - 10,095
Total General Expense 32,978 35,075 - - - 2,260 3,339 4,570 8,883 9,342 5,880 4,570 - - 38,844

Income before Fixed Expenses 69,822 76,345 - - - 320 5,951 7,980 16,827 15,778 12,485 12,735 - - 72,076
% of Revenue 36.0% 37.0% 0.0% 0.0% 0.0% 3.8% 35.0% 33.3% 35.1% 32.2% 40.9% 57.2% 0.0% 0.0% 36.2%

Fixed Expenses
Salaries & benefits 7,758 8,253 - - - 200 340 500 1,060 1,120 670 500 - - 4,390
Reserve for Replacement - - - - - 200 340 500 1,060 1,120 670 500 - - 4,390
Insurance 950 950 - - - 860 860 860 860 860 860 860 - - 6,020
Property Taxes 16,700 17,825 - - - 800 1,380 2,085 4,555 5,018 2,975 2,205 - - 19,018
Miscellaneous - - - - - - - - - - - - - - -
Total Fixed Expenses 25,408 27,028 - - - 2,060 2,920 3,945 7,535 8,118 5,175 4,065 - - 33,818

Net Operating Income 44,414 49,317 - - - ( 1,740) 3,031 4,035 9,292 7,660 7,310 8,670 - - 38,258
% of Revenue 22.9% 23.9% 0.0% 0.0% 0.0% (20.5%) 17.8% 16.8% 19.4% 15.6% 24.0% 39.0% 0.0% 0.0% 19.2%

Total Interest Costs 10,500 10,500 - - - 1,500 1,500 1,500 1,500 1,500 1,500 1,500 - - 10,500

Pretax Income 33,914 38,817 - - - ( 3,240) 1,531 2,535 7,792 6,160 5,810 7,170 - - 27,758
% of Revenue 17.5% 18.8% 0.0% 0.0% 0.0% (38.1%) 9.0% 10.6% 16.2% 12.6% 19.0% 32.2% 0.0% 0.0% 13.9%

Cash Flow available for Debt Service 33,914 38,817 - - - - 1,531 2,535 7,792 6,160 5,810 7,170 - - 27,758

2
 Acme Wilderness Motel 3 Year Forecast
Income Expense Statement

GROWTH RATE
0.0% 0.0% 0.0% 1.0% 3.0% 5.0% 7.0% 7.0% 3.0% 2.0% 0.0% 0.0% 2.3% 3.00% 3.00%

INCOME FORSECAST
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 Year 2 Year 3
Revenue
Rooms Available - - - 450 465 450 465 465 450 465 - - 3,210 3,210 3,210
Rooms Sold - - - 62 159 195 381 381 302 251 - - 1,730 1,782 1,835
Occupancy 0.0% 0.0% 0.0% 13.7% 34.1% 43.4% 81.9% 81.9% 67.1% 54.0% 0.0% 0.0% 53.9% 55.5% 57.2%
Average Rate $65.00 $68.00 $68.00 $68.00 $72.00 $77.00 $95.00 $95.00 $77.00 $68.00 $68.00 $68.00 $82.84 $85.23 $86.95

Accommodations - - - 4,189 11,421 15,038 36,187 36,187 23,238 17,063 - - 143,323 151,878 159,592
Food - - - - 2,060 4,200 9,630 9,630 7,210 5,100 - - 37,830 38,965 40,134
Liquor Sales - - - 505 3,090 3,150 5,350 5,350 4,120 3,060 - - 24,625 25,364 26,125
Merchandise Sales - - - 4,040 2,060 4,200 2,140 5,350 515 255 - - 18,560 19,117 19,690
Miscellaneous - - - - - - - - - - - - - - -
Gross Revenue 0 0 0 8734.48 18630.64 26588.1 53307.4 56517.4 35082.83 25477.56 0 0 224338.41 235,324 245,540

Direct Expenses
Food cost of goods - - - - 1,185 2,258 5,404 5,404 3,348 2,907 - - 20,504 21,119 21,752
Liquor cost of goods - - - 152 309 315 963 963 618 306 - - 3,626 3,734 3,846
Supplies - - - 1,130 1,282 1,385 1,699 1,799 1,536 1,431 - - 10,263 10,571 11,030
Merchandise cost of goods sold - - - 1,010 515 1,050 535 1,338 206 - - - 4,654 4,793 4,937
Wages & Benefits - - - 2,727 4,728 7,088 15,312 16,178 6,953 556 - - 53,541 56,162 58,601
Total Direct Expenses - - - 5,019 8,018 12,095 23,912 25,682 12,660 5,200 - - 92,586 96,379 100,166
% of Revenue 0.0% 0.0% 0.0% 57.5% 43.0% 45.5% 44.9% 45.4% 36.1% 20.4% 0.0% 0.0% 41.3% 41.0% 40.8%

Gross Profit - - - 3,716 10,612 14,493 29,395 30,836 22,423 20,277 - - 131,752 138,945 145,375
% of Revenue 0.0% 0.0% 0.0% 42.5% 57.0% 54.5% 55.1% 54.6% 63.9% 79.6% 0.0% 0.0% 58.7% 59.04% 59.21%

General Expenses
Administrative - - - 1,101 1,391 1,727 2,868 2,987 2,019 1,678 - - 13,770 14,184 14,609
Utilities - - - 414 718 1,076 2,327 2,456 1,416 1,046 - - 9,453 9,736 10,029
Marketing - - - 303 525 788 1,701 1,798 1,035 765 - - 6,915 7,122 7,336
Repairs & Maintenance - - - 465 805 1,208 2,609 2,755 1,586 1,173 - - 10,601 10,919 11,246
Total General Expenses - - - 2,283 3,439 4,799 9,505 9,996 6,056 4,661 - - 40,739 41,961 43,220

Income before Fixed Expenses - - - 1,433 7,173 9,695 19,890 20,840 16,367 15,616 - - 91,014 96,984 102,155
% of Revenue 0.0% 0.0% 0.0% 16.4% 38.5% 36.5% 37.3% 36.9% 46.7% 61.3% 0.0% 0.0% 40.6% 41.2% 41.6%

Fixed Expenses
Salaries & benefits - - - 202 350 525 1,134 1,198 690 510 - - 4,610 4,748 4,891
Reserve for Replacement - - - 202 350 525 1,134 1,198 690 510 - - 4,610 4,748 4,891
Insurance - - - 869 886 903 920 920 886 877 - - 6,261 6,449 6,642
Property Taxes - - - 808 1,421 2,189 4,874 5,369 3,064 2,249 - - 19,975 20,574 21,192
Miscellaneous - - - - - - - - - - - - - - -
Total Fixed Expenses - - - 2,081 3,008 4,142 8,062 8,686 5,330 4,146 - - 35,456 36,519 37,615

Net Operating Income - - - ( 648) 4,165 5,553 11,828 12,153 11,037 11,470 - - 55,558 60,464 64,540
% of Revenue 0.0% 0.0% 0.0% (7.4%) 22.4% 20.9% 22.2% 21.5% 31.5% 45.0% 0.0% 0.0% 24.8% 25.7% 26.3%

Bank Interest-Line - - - 1,515 1,545 1,575 1,605 1,605 1,545 1,530 - - 10,920 11,248 11,585

Pretax Income - - - ( 2,163) 2,620 3,978 10,223 10,548 9,492 9,940 - - 44,638 49,217 52,955
% of Revenue 0.0% 0.0% 0.0% (24.8%) 14.1% 15.0% 19.2% 18.7% 27.1% 39.0% 0.0% 0.0% 19.9% 20.9% 21.6%

Cash Flow available for Debt Service - - - - 2,620 3,978 10,223 10,548 9,492 9,940 - - 44,638 49,217 52,955
 Acme Wilderness Adventures Diversification Model
Income Expense Statement
Income Statement 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 Year 1 Year 2 Year 3
Revenue
Kayak Trips - Huron - - - 4,340 8,680 9,920 12,400 13,020 8,060 5,580 - - 62,000 64,480 66,414
Kayak Trips - Superior - - - 1,470 2,940 3,360 4,200 4,410 2,730 1,890 - - 21,000 21,840 22,495
Instruction programs - - - 910 1,820 2,080 2,600 2,730 1,690 1,170 - - 13,000 13,520 13,926
Merchandise Sales - - - 1,225 2,450 2,800 3,500 3,675 2,275 1,575 - - 17,500 18,200 18,746
Miscellaneous - - - - - - - - - - - - - - -
Gross Revenue - - - 7,945 15,890 18,160 22,700 23,835 14,755 10,215 - - 113,500 118,040 121,581

Direct Expenses
Food cost of goods - - - 72 144 165 206 216 134 93 - - 1,030 1,071 1,114
Supplies - - - 240 480 549 686 720 446 309 - - 3,430 3,567 3,710
Clothing & equipment - - - 363 726 829 1,037 1,089 674 467 - - 5,184 5,391 5,607
Merchandise cost of goods sold - - - 363 726 829 1,037 1,089 674 467 - - 5,184 5,391 5,607
Kayaks & canoes - - - 630 1,260 1,440 1,800 1,890 1,170 810 - - 9,001 9,361 9,735
Wages & Benefits - - - 1,443 2,886 3,298 4,123 4,329 2,680 1,855 - - 20,615 21,440 22,297
Total Direct Expenses - - - 3,111 6,222 7,111 8,889 9,333 5,778 4,000 - - 44,444 46,222 48,071
% of Revenue 0.0% 0.0% 0.0% 39.2% 39.2% 39.2% 39.2% 39.2% 39.2% 39.2% 0.0% 0.0% 39.2% 39.2% 39.5%

Gross Profit - - - 4,834 9,668 11,049 13,811 14,502 8,977 6,215 - - 69,056 71,818 73,511
% of Revenue 0.0% 0.0% 0.0% 60.8% 60.8% 60.8% 60.8% 60.8% 60.8% 60.8% 0.0% 0.0% 60.8% 60.8% 60.5%

General Expenses
Administrative - - - 972 1,943 2,221 2,776 2,915 1,804 1,249 - - 13,880 14,435 14,868
Marketing - - - 1,370 2,741 3,132 3,915 4,111 2,545 1,762 - - 19,577 20,360 20,971
Repairs & Maintenance - - - 321 641 733 916 962 595 412 - - 4,580 4,763 4,906
Total General Expense - - - 2,663 5,325 6,086 7,607 7,988 4,945 3,423 - - 38,037 39,558 40,745

Income before Fixed Expenses - - - 2,171 4,343 4,963 6,204 6,514 4,032 2,792 - - 31,019 32,260 32,765
% of Revenue 0.0% 0.0% 0.0% 27.3% 27.3% 27.3% 27.3% 27.3% 27.3% 27.3% 0.0% 0.0% 27.3% 27.3% 26.9%

Fixed Expenses
Salaries & benefits - - - - - - - - - - - - - - -
Insurance - - - 65 129 148 184 194 120 83 - - 922 959 988
Miscellaneous - - - - - - - - - - - - - - -
Total Fixed Expenses - - - 65 129 148 184 194 120 83 - - 922 959 988

Net Operating Income - - - 2,107 4,214 4,816 6,019 6,320 3,913 2,709 - - 30,097 31,301 31,778
% of Revenue 0.0% 0.0% 0.0% 26.5% 26.5% 26.5% 26.5% 26.5% 26.5% 26.5% 0.0% 0.0% 26.5% 26.5% 26.1%

Bank Interest- Credit - - -

Bank Interest- Term - - - 100 100 100 100 100 100 100 - - 700 728 750
Bank Interest- Loan - - - 2,150 2,150 2,150 2,150 2,150 2,150 2,150 - - 15,050 15,652 16,122
Total Interest Costs - - - 2,250 2,250 2,250 2,250 2,250 2,250 2,250 - - 15,750 16,380 16,871

Pretax Income - - - ( 143) 1,964 2,566 3,769 4,070 1,663 459 - - 14,347 14,921 14,906
% of Revenue 0.0% 0.0% 0.0% (1.8%) 12.4% 14.1% 16.6% 17.1% 11.3% 4.5% 0.0% 0.0% 12.6% 12.6% 12.3%

Cash flow available for Debt Service - - - - 1,964 2,566 3,769 4,070 1,663 459 - - 14,347 14,921 14,906
 Acme Wilderness Adventures Diversification Model
Income Expense Statement

Assumptions 1. Revenue base derived from guided kayak excursions, instruction programs, local area Certification programs, and day trippers SEE SUMMARY.
2. Merchandise sales from kayak's and related equipment.
3. Direct expense - Food expense for Kayak trips, instructors cost - wages, new kayaks. SEE SUMMARY
4. General & Fixed Expenses SEE SUMMARY
5. New diversified business capital expenditure $150,000.00 SEE CAPITAL EXPENDITURE SUMMARY
6. Debt Service $150,000.00 @10% over 10 year amortization. 7 monthly interest payments @ $2,150.00

Acme Wilderness Adventures - Diversification #1

Revenue Base Summary Expense Base Summary

Kayak Trips Revenue Cost of Goods Sold Marketing

Advertising 7,050
Lake Huron trips Outtrip Food 1,030 Travel & Entertainment 4,800
Overnight trip 5,000 Telephone 3,500
4 day trips 7,000 Supplies 3,430 Print Media 4,227
5 day trips 6,000 Total Marketing 19,577
6 day trips Clothing 1,114
Day trips 7,500 Equipment 4,070
Weekend upgrades 12,500 5,184 Insurance 922
Symposium 24,000
Lake Huron Total 62,000 Merchandise Freight Expense 2,593
Repairs & Maintenance
Lake Superior trips Kayaks & canoes 5,390 Facility Improvements 1,150
6 day trips 15,000 Equipment Rental 3,611 Repair Supplies 445
8 day trips 6,000 9,001 Vehicle Fuel 2,125
Lake Superior trips Total 21,000 Vehicle Leasing & Rental 860
Total Cost of Goods Sold 21,238 Total Repairs & Maintenance 4,580
Instruction Program
Skills course 0 Salary 4 guides @ $4,535 18,140
Special Services 5,000 Benefits 2,475
Sirius wilderness training 8,000 Wages & Benefits 20,615
Instruction Total 13,000
General Expenses
Merchandise Sales Revenue Courier & Postage 1,100
Clothing 4,300 Accounting & legal 1,200
Supplies 1,000 Credit Card Charges 3,400
Equipment 4,200 Office Supplies 2,100
Kayaks & Canoes. 8,000 Staff Training/computer 1,500
Total Merchandise Sales 17,500 Memberships/travel 4,580
Total Administration 13,880
Total Revenue 114,500
 Acme Wilderness Adventures Diversification Model
Income Expense Statement
Income Statement 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 Year 1 Year 2 Year 3
Revenue
Billy's ATV Rental 1 - - - - - - - - - - - - - - -
Billy's ATV Rental 2 - - - - - - - - - - - - - - -
Instruction programs - - - - - - - - - - - - - - -
Merchandise Sales - - - - - - - - - - - - - - -
Miscellaneous - - - - - - - - - - - - - - -
Gross Revenue - - - - - - - - - - - - - - -

Direct Expenses
Gas & Oil - - - - - - - - - - - - - - -
Supplies - - - - - - - - - - - - - - -
Clothing & equipment - - - - - - - - - - - - - - -
Merchandise freight expense - - - - - - - - - - - - - - -
Souvenirs - - - - - - - - - - - - - - -
Wages & Benefits - - - - - - - - - - - - - - -
Total Direct Expenses - - - - - - - - - - - - - - -
% of Revenue 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%

Gross Profit - - - - - - - - - - - - - - -
% of Revenue 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%

General Expenses
Administrative - - - - - - - - - - - - - - -
Marketing - - - - - - - - - - - - - - -
Repairs & Maintenance - - - - - - - - - - - - - - -
Total General Expense - - - - - - - - - - - - - - -

Income before Fixed Expenses - - - - - - - - - - - - - - -

% of Revenue 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%

Fixed Expenses
Salaries & benefits - - - - - - - - - - - - - - -
Insurance - - - - - - - - - - - - - - -
Miscellaneous - - - - - - - - - - - - - - -
Total Fixed Expenses - - - - - - - - - - - - - - -

Net Operating Income - - - - - - - - - - - - - - -

% of Revenue 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%

Bank Interest- Credit - - -

Bank Interest- Term - - - - - - - - - - - - - - -
Bank Interest- Loan - - - - - - - - - - - - - - -
Total Interest Costs - - - - - - - - - - - - - - -

Pretax Income - - - - - - - - - - - - - - -
% of Revenue 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%

Cash flow available for Debt Service - - - - - - - - - - - - - - -

 Acme Wilderness Adventures Diversification Model
Income Expense Statement

Assumptions 1
2
3
4
5
6

Billy's Rentals - Diversification #2

Revenue Base Summary Expense Base Summary

Billy's ATV Rental Cost of Goods Sold Marketing

Advertising 0
Rental 1 Gas & oil 0 Travel & Entertainment 0
A 0 Telephone 0
B 0 Supplies 0 Print Media 0
C 0 Total Marketing 0
D 0 Clothing 0
E 0 Equipment 0
F 0 0 Insurance 0
G 0
Rental 1 total 0 Merchandise Freight Expense 0
Repairs & Maintenance
Rental 2 Souvenirs 0 Facility Improvements 0
A 0 Equipment Rental 0 Repair Supplies 0
B 0 0 Vehicle Fuel 0
Rental 2 total 0 Vehicle Leasing & Rental 0
Total Cost of Goods Sold 0 Total Repairs & Maintenance 0
Instruction
Mechanics course 0 Wages 0
Special Services 0 Benefits 0
Sirius wilderness training 0 Wages & Benefits 0
Instruction Total 0
General Expenses
Merchandise Courier & Postage 0
Clothing 0 Accounting & legal 0
Supplies 0 Credit Card Charges 0
Equipment 0 Office Supplies 0
Souvenirs 0 Staff Training/computer 0
Total Merchandise Sales 0 Memberships/travel 0
Total Administration 0
Total Revenue 0
 Acme Wilderness Resort
Diversified Forecast Statement Consolidated Model

Income Statement 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 Year 1 Year 2 Year 3
Revenue
Rooms Available - - - 450 465 450 465 465 450 465 - - 3,210 3,210 3,210
Rooms Sold - - - 62 159 195 381 381 302 251 - - 1,730 1,782 1,835
Occupancy 0% 0% 0% 14% 34% 43% 82% 82% 67% 54% 0% 0% 53.9% 55.5% 57%
Average Rate $65.00 $68.00 $68.00 $68.00 $72.00 $77.00 $95.00 $95.00 $77.00 $68.00 $68.00 $68.00 $82.84 $85.23 $86.95

Accommodations - - - 4,189 11,421 15,038 36,187 36,187 23,238 17,063 - - 143,323 151,878 159,592
Food - - - - 2,060 4,200 9,630 9,630 7,210 5,100 - - 37,830 38,965 40,134
Liquor Sales - - - 505 3,090 3,150 5,350 5,350 4,120 3,060 - - 24,625 25,364 26,125
Merchandise Sales - - - 4,040 2,060 4,200 2,140 5,350 515 255 - - 18,560 19,117 19,690
Miscellaneous - - - - - - - - - - - - - - -
New Venture 1 - - - 7,945 15,890 18,160 22,700 23,835 14,755 10,215 - - 113,500 118,040 121,581
New Venture 2 - - - - - - - - - - - - - - -
Gross Revenue - - - 16,679 34,521 44,748 76,007 80,352 49,838 35,693 - - 337,838 353,364 367,122

Direct Expenses
Food cost of goods - - - - 1,185 2,258 5,404 5,404 3,348 2,907 - - 20,504 21,119 21,752
Liquor cost of goods - - - 152 309 315 963 963 618 306 - - 3,626 3,734 3,846
Supplies - - - 1,130 1,282 1,385 1,699 1,799 1,536 1,431 - - 10,263 10,571 11,030
Merchandise cost of goods sold - - - 1,010 515 1,050 535 1,338 206 - - - 4,654 4,793 4,937
Wages & Benefits - - - 2,727 4,728 7,088 15,312 16,178 6,953 556 - - 53,541 56,162 58,601
New Venture 1 - - - 3,111 6,222 7,111 8,889 9,333 5,778 4,000 - - 44,444 46,222 48,071
New Venture 2 - - - - - - - - - - - - - - -
Total Direct Expenses - - - 8,130 14,241 19,206 32,801 35,015 18,437 9,200 - - 137,030 142,601 148,236
% of Revenue 0.0% 0.0% 0.0% 48.7% 41.3% 42.9% 43.2% 43.6% 37.0% 25.8% 0.0% 0.0% 40.6% 40.4% 40.4%

Gross Profit - - - 8,550 20,280 25,542 43,206 45,337 31,401 26,492 - - 200,808 210,763 218,885
% of Revenue 0.0% 0.0% 0.0% 51.3% 58.7% 57.1% 56.8% 56.4% 63.0% 74.2% 0.0% 0.0% 59.4% 59.6% 59.6%

General Expenses
Administrative - - - 1,101 1,391 1,727 2,868 2,987 2,019 1,678 - - 13,770 14,184 14,609
Utilities - - - 414 718 1,076 2,327 2,456 1,416 1,046 - - 9,453 9,736 10,029
Marketing - - - 303 525 788 1,701 1,798 1,035 765 - - 6,915 7,122 7,336
Repairs & Maintenance - - - 465 805 1,208 2,609 2,755 1,586 1,173 - - 10,601 10,919 11,246
New Venture 1 - - - 2,663 5,325 6,086 7,607 7,988 4,945 3,423 - - 38,037 39,558 40,745
New Venture 2 - - - - - - - - - - - - - - -
Total General Expense - - - 4,945 8,764 10,884 17,112 17,984 11,001 8,085 - - 78,776 81,519 83,965

Income before Fixed Expenses - - - 3,604 11,516 14,658 26,094 27,354 20,399 18,408 - - 122,033 129,243 134,920
% of Revenue 0.0% 0.0% 0.0% 21.6% 33.4% 32.8% 34.3% 34.0% 40.9% 51.6% 0.0% 0.0% 36.1% 36.6% 36.8%

Fixed Expenses
Management Fees - - - 202 350 525 1,134 1,198 690 510 - - 4,610 4,748 4,891
Reserve for Replacement - - - 202 350 525 1,134 1,198 690 510 - - 4,610 4,748 4,891
Insurance - - - 869 886 903 920 920 886 877 - - 6,261 6,449 6,642
Property Taxes - - - 808 1,421 2,189 4,874 5,369 3,064 2,249 - - 19,975 20,574 21,192
Miscellaneous - - - - - - - - - - - - - - -
New Venture 1 - - - 65 129 148 184 194 120 83 - - 922 959 988
New Venture 2 - - - - - - - - - - - - - - -
Total Fixed Expenses - - - 2,145 3,137 4,290 8,247 8,880 5,450 4,229 - - 36,378 37,478 38,603

Net Operating Income 0 0 0 1,459 8,379 10,368 17,847 18,474 14,949 14,178 0 0 85,655 91,765 96,318
% of Revenue 0.0% 0.0% 0.0% 8.7% 24.3% 23.2% 23.5% 23.0% 30.0% 39.7% 0.0% 0.0% 25.4% 26.0% 26.2%

Bank Interest-Line - - - 1,515 1,545 1,575 1,605 1,605 1,545 1,530 - - 10,920 11,248 11,585
New Venture 1 - - - 2,250 2,250 2,250 2,250 2,250 2,250 2,250 - - 15,750 16,380 16,871
New Venture 2 - - - - - - - - - - - - - - -
Total Interest Costs - - - 3,765 3,795 3,825 3,855 3,855 3,795 3,780 - - 26,670 27,628 28,456

Pretax Income 0 0 0 (2,306) 4,584 6,543 13,992 14,619 11,154 10,398 0 0 58,985 64,138 67,861
% of Revenue 0.0% 0.0% 0.0% (13.8%) 13.3% 14.6% 18.4% 18.2% 22.4% 29.1% 0.0% 0.0% 17.5% 18.2% 18.5%

Cash Flow available for Debt Service - - - - 4,584 6,543 13,992 14,619 11,154 10,398 - - 58,985 64,138 67,861

8
 Acme Wilderness Resort
Diversified Forecast Balance Sheet

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

Current Assets
Cash 100 100 100 0 0
Accounts Receivable 100 100 100 0 0
Inventory 100 100 100 0 0
Prepaids 100 100 100 0 0
Total Current Assets 400 400 400 0 0 0 0 0 0 0 0 0 0 0

Fixed Assets 10,000 10,000 10,000 0 0

less Depreciation 0 0
Net Fixed Assets 10,000 10,000 10,000 0 0 0 0 0 0 0 0 0 0 0

Other 0 0
Total Assets 10,400 10,400 10,400 0 0 0 0 0 0 0 0 0 0 0

Liabilities & Equity

Current Liabilities
Accounts Payable 0 0
Bank Overdraft 100 100 100 0 0
Bank Loans 100 100 100 0 0
Loan Payable 100 100 100 0 0
Total Current Liabilities 300 300 300 0 0 0 0 0 0 0 0 0 0 0

Long Term Liabilities

Bank loans 100 100 100 0 0
Diversification Loan 1,000 1,000 1,000 0 0
Shareholder Loans 100 100 100 0 0
Total Long Term Liabilities 1,200 1,200 1,200 0 0 0 0 0 0 0 0 0 0 0

Total Liabilities 1,500 1,500 1,500 0 0 0 0 0 0 0 0 0 0 0

Shareholders' Equity
Capital Stock 0 0 0
Current Earnings (loss) 0 0 0 (2,306) 4,584 6,543 13,992 14,619 11,154 10,398 0 0 64,138 67,861
Retained Earnings 0 0 0 (2,306) 2,278 8,821 22,813 37,432 48,587 58,985 58,985 58,985 123,122 190,984
Total Shareholders' Equity 0 0 0 (4,612) 6,862 15,364 36,806 52,051 59,741 69,383 58,985 58,985 187,260 258,845

Total Liabilities & Equity 1,500 1,500 1,500 (4,612) 6,862 15,364 36,806 52,051 59,741 69,383 58,985 58,985 187,260 258,845
 BREAK-EVEN ANALYSIS YEAR 1
ASSUMPTIONS
Fixed expenses & debt servicing costs: $141,824
Contribution margin: 59.44%
Revenue increments in table: $15,000
BREAK EVEN POINT CALCULATION

Fixed Variable Total Profit

Revenue Expenses Expenses Expenses or Loss
$238,603 $141,824 $96,779 $238,603 $0

BREAK EVEN TABLE

Expense - Expense - Expense -

Revenue Fixed Variable Total Profit (loss)
$58,603 $141,824 $23,770 $165,593 ($106,991)
$73,603 $141,824 $29,854 $171,677 ($98,075)
$88,603 $141,824 $35,938 $177,762 ($89,159)
$103,603 $141,824 $42,022 $183,846 ($80,243)
$118,603 $141,824 $48,106 $189,930 ($71,327)
$133,603 $141,824 $54,190 $196,014 ($62,411)
$148,603 $141,824 $60,274 $202,098 ($53,495)
$163,603 $141,824 $66,359 $208,182 ($44,579)
$178,603 $141,824 $72,443 $214,266 ($35,664)
$193,603 $141,824 $78,527 $220,350 ($26,748)
$208,603 $141,824 $84,611 $226,434 ($17,832)
$223,603 $141,824 $90,695 $232,519 ($8,916)
$238,603 $141,824 $96,779 $238,603 $0
$253,603 $141,824 $102,863 $244,687 $8,916
$268,603 $141,824 $108,947 $250,771 $17,832
$283,603 $141,824 $115,032 $256,855 $26,748
$298,603 $141,824 $121,116 $262,939 $35,664
$313,603 $141,824 $127,200 $269,023 $44,579
$328,603 $141,824 $133,284 $275,107 $53,495
$343,603 $141,824 $139,368 $281,192 $62,411
$358,603 $141,824 $145,452 $287,276 $71,327
$373,603 $141,824 $151,536 $293,360 $80,243
$388,603 $141,824 $157,620 $299,444 $89,159
$403,603 $141,824 $163,705 $305,528 $98,075
$418,603 $141,824 $169,789 $311,612 $106,991
 BREAK-EVEN ANALYSIS YEAR 2
ASSUMPTIONS
Fixed expenses & debt servicing costs: $146,625
Contribution margin: 59.64%
Revenue increments in table: $15,000
BREAK EVEN POINT CALCULATION

Fixed Variable Total Profit

Revenue Expenses Expenses Expenses or Loss
$245,831 $146,625 $99,206 $245,831 $0

BREAK EVEN TABLE

Expense - Expense - Expense -

Revenue Fixed Variable Total Profit (loss)
$65,831 $146,625 $26,566 $173,192 ($107,361)
$80,831 $146,625 $32,620 $179,245 ($98,414)
$95,831 $146,625 $38,673 $185,298 ($89,467)
$110,831 $146,625 $44,726 $191,352 ($80,520)
$125,831 $146,625 $50,779 $197,405 ($71,574)
$140,831 $146,625 $56,833 $203,458 ($62,627)
$155,831 $146,625 $62,886 $209,511 ($53,680)
$170,831 $146,625 $68,939 $215,565 ($44,734)
$185,831 $146,625 $74,993 $221,618 ($35,787)
$200,831 $146,625 $81,046 $227,671 ($26,840)
$215,831 $146,625 $87,099 $233,725 ($17,893)
$230,831 $146,625 $93,152 $239,778 ($8,947)
$245,831 $146,625 $99,206 $245,831 $0
$260,831 $146,625 $105,259 $251,884 $8,947
$275,831 $146,625 $111,312 $257,938 $17,893
$290,831 $146,625 $117,366 $263,991 $26,840
$305,831 $146,625 $123,419 $270,044 $35,787
$320,831 $146,625 $129,472 $276,098 $44,734
$335,831 $146,625 $135,526 $282,151 $53,680
$350,831 $146,625 $141,579 $288,204 $62,627
$365,831 $146,625 $147,632 $294,257 $71,574
$380,831 $146,625 $153,685 $300,311 $80,520
$395,831 $146,625 $159,739 $306,364 $89,467
$410,831 $146,625 $165,792 $312,417 $98,414
$425,831 $146,625 $171,845 $318,471 $107,361
 Acme Wilderness Resort Financial Analysis

Actual Actual Projected Projected Projected

2000 2001 2002 2003 2004

Current Assets
Current Liabilities
Current Ratio #DIV/0! #DIV/0!
### #DIV/0! #DIV/0! #DIV/0!

Total Debt
Total Assets
Tt.Debt/Tl.Assets #DIV/0! #DIV/0!
### #DIV/0! #DIV/0! #DIV/0!

Total Debt
Owner's Equity
Total Debt to Equity #DIV/0! #DIV/0!
### #DIV/0! #DIV/0! #DIV/0!

Earnings before tax

& interest
Interest
Interest Coverage #DIV/0! #DIV/0!
### #DIV/0! #DIV/0! #DIV/0!

Earnings before tax

Sales
Profitability #DIV/0! #DIV/0!
### #DIV/0! #DIV/0! #DIV/0!

Earnings before tax

Owner's Equity
Return on Invest. #DIV/0! #DIV/0!
### #DIV/0! #DIV/0! #DIV/0!
 BREAK-EVEN ANALYSIS YEAR 3
ASSUMPTIONS
Fixed expenses & debt servicing costs: $151,024
Contribution margin: 59.62%
Revenue increments in table: $15,000
BREAK EVEN POINT CALCULATION

Fixed Variable Total Profit

Revenue Expenses Expenses Expenses or Loss
$253,303 $151,024 $102,279 $253,303 $0

BREAK EVEN TABLE

Expense - Expense - Expense -

Revenue Fixed Variable Total Profit (loss)
$73,303 $151,024 $29,598 $180,622 ($107,320)
$88,303 $151,024 $35,655 $186,679 ($98,376)
$103,303 $151,024 $41,712 $192,736 ($89,433)
$118,303 $151,024 $47,768 $198,792 ($80,490)
$133,303 $151,024 $53,825 $204,849 ($71,546)
$148,303 $151,024 $59,882 $210,906 ($62,603)
$163,303 $151,024 $65,938 $216,962 ($53,660)
$178,303 $151,024 $71,995 $223,019 ($44,717)
$193,303 $151,024 $78,052 $229,076 ($35,773)
$208,303 $151,024 $84,108 $235,133 ($26,830)
$223,303 $151,024 $90,165 $241,189 ($17,887)
$238,303 $151,024 $96,222 $247,246 ($8,943)
$253,303 $151,024 $102,279 $253,303 $0
$268,303 $151,024 $108,335 $259,359 $8,943
$283,303 $151,024 $114,392 $265,416 $17,887
$298,303 $151,024 $120,449 $271,473 $26,830
$313,303 $151,024 $126,505 $277,529 $35,773
$328,303 $151,024 $132,562 $283,586 $44,717
$343,303 $151,024 $138,619 $289,643 $53,660
$358,303 $151,024 $144,675 $295,699 $62,603
$373,303 $151,024 $150,732 $301,756 $71,546
$388,303 $151,024 $156,789 $307,813 $80,490
$403,303 $151,024 $162,846 $313,870 $89,433
$418,303 $151,024 $168,902 $319,926 $98,376
$433,303 $151,024 $174,959 $325,983 $107,320