DEVC Instawash Laundry Services

A Business Plan for Laundry Shop

Presented to SAN DIONISIO CREDIT COOPERATIVE AND TRIAS

Presented by:

CARIAGA, DENZEL EDWARD V.

September 20, 2019

 INTRODUCTION

Entrepreneurial activities are substantially different depending on the type of

organization that is being started. Getting into business is not as easy as what they
think; it has a lot of pre-requisites to do before getting into the actual business. At the
start of the firm’s life cycle, the entrepreneurial spirit of a classic entrepreneur
produces innovations to change the rule of the game. They have known very well that
they can never win a game where the rules were set by the current big players.

At the set-up stage of the firm’s life cycle, the classic entrepreneur can start
from any three starting points. These are passion, market opportunity or capability.
But all three, much like a tripod, must exist to prevent the business from falling down.
Passion is something an individual love to do and does not get tired of doing. Passion,
relentlessly, drives the spirit towards perfection and excellence. But this passion must
find a market and the entrepreneur must have the ability to consistently deliver the
market needs.

Our business offers laundry services; we basically introduce to the market our
new conceptualized laundry services. Though you may see some of it nowadays in
some areas, DEVC Instawash Laundry Services make it more innovative than others
to be more competitive.

Becoming the best that one can be is the object of the entrepreneurial spirit.
The spirit does not compete with others. It uses the innovation process of idea
generation, incubation, and implementation, to be better than yesterday. The
entrepreneurial spirit competes with itself and not others. It’s about making oneself
obsolete every day.
 EXECUTIVE SUMMARY

DEVC Instawash Laundry Services is a concept of Laundry Services available

to individuals and families, including dry cleaning and ironing. The company intends to
offer affordable "luxury" cleaning to all. Quality is made available to everybody. DEVC
Instawash Laundry Services is the best service provider in your area. Our main objective
is to position DEVC Instawash as the premier Laundromat serving the residents of
Barangay San Dionisio. The company shall emerge as a premiere company that shall
provide a commodity of innovation. Specifically, the company is seen as the most
creative company which brought out a new idea of Laundry Business, and later adds
another to the market. It foresees the Filipino people adapting and enjoying fruits of
creativity as the next generation comes. Its Primary markets are those people who are
living or working within the area such as Household, Employees and Business Owners.
The business expects to generate annual service revenue of Php 2,025,000.00 for the
first three years of operation.

The steps in the laundry process are as follows: 1.) Receiving of Garments; 2)
Sorting; 3.) Tagging; 4.) Spotting; 5.) Soaking; 6.) Washing; 7.) Drying / Segregating;
8.) Folding / Packing; and 9.) Claiming.

The company shall serve 27,000 clients every year for the next three years.

The owner decided to register as a Sole Proprietorship because Sole

proprietorship is the easiest, least expensive and most frequently formed business.

The Company expects a net income after taxes of Php 411,655.00, Php
459,115.00 and Php 486,550.00 for the 1st, 2nd, and 3rd year, respectively.
MARKETING
PLAN
 MARKETING PLAN

1. Description of the Project

DEVC Instawash Laundry Services is a concept of Laundry Services available to

individuals and families, including dry cleaning and ironing. DEVC Instawash
Laundry Services intends to offer affordable "luxury" cleaning to all. Quality is
made available to everybody. DEVC Instawash Laundry Services is the best
service provider in your area.

2. Comparison of the product with its competitor

The core business is the cleaning of clothes. Our team is taking care of each item
with a great respect. Removal of the spots, small repairs, high quality finishing are
some of the features that make DEVC Instawash Laundry Services different.

3. Location

Our business is located at the heart of Barangay San Dionisio, Paranaque City.

4. Market Area

Resident of Barangay San Dionisio, Paranaque City.

• Household – Most of the household composed of many members that have
no time washing their clothes would resort to the service of a laundry shop
especially if it is a well-off family.
• Employees – Employees in different government agencies and business
establishments that are busy with their work sometimes need a service from a
laundry shop.
• Business Owners – Owners of the business establishments could be potential
market of the laundry shop in that there is need for them to wash their linens.
5. Target Customer

The geographic target is Barangay San Dionisio’s 63,506 residents as of 2015

including Household, Employees and Business Owners.

Source: https://en.wikipedia.org/wiki/San_Dionisio,_Para%C3%B1aque

6. Total Demand

Daily: 75 Customers / minimum of 3 kilos @ Php 25.00

Monthly: 2,250 Customers

7. Market Share

We expect 100% of target customers will avail the service we provide.

8. Selling Price

Php 25.00 / kilo. Minimum of 3 Kilos per transaction

9. Sales Forecast

Daily: 225 kilos x Php 25.00 = Php 5,625.00

Monthly: 6,750 kilos x Php 25.00 = Php 168,750.00

10. How do you introduce the customer to your product or service?

The main objective is to position DEVC Instawash as the premier Laundromat

serving the residents of Barangay San Dionisio. The marketing strategy will first
 seek to build customer awareness regarding the services provided, and then
develop the customer base. The message that DEVC Instawash seeks to
communicate is that its clean, quiet and innovative facility is oriented toward people.
This message will be communicated by various methods. The first method will be
advertisements placed in the Social Media such Facebook, Instagram, Twitter, etc.
The second method will be a promotional effort based primarily on brochures and
leaflets. The third method of communication will be networking. Networking will be
used to generate the word-of-mouth referrals.

11. Four MARKETING STRATEGY

a. Product Strategy

We are going to provide dry clean services for ladies and gents clothes,
curtains, carpets, blankets etc. DEVC Instawash, as name implies, it will
provide high quality laundry services to the residents of Barangay San
Dionisio. We will introduce new and fast technology in this sector to capture
the market. DEVC Instawash will provide a club type services in which a
loyal member can enjoy the discount and can participate in the different
events sponsored or arranged by the company.

b. Pricing Strategy

Since we are new in the laundry business and our target segment is also
cost sensitive, we will set the initial prices lower than their competitors. The
pricing scheme is based on per kilogram basis. We will offer the quality and
convenience of our service at a price lower than other players in the market.
Loyal Customers of DEVC Instawash are the most important part of the
business. We will be issuing a Loyalty Card that will give 10% to 15%
discounts to our loyal members depending on the service they take from us.
c. Promotion Strategy

Promotion is the activity done in order to increase the sales of an

organization’s product or services. This is the technique that we are using
for the awareness and fame of the product in the market. The main function
of promotion includes to inform, persuade and to remind about the services.
By using these techniques, we can create awareness and earn high profit.

It is the life blood of any service or product. That’s why we have given
special intention on the promotion of our services. We will use different ways
to introduce our services in the market. Advertisement is an important part
of promotion.

In this context we shall use following advertisement platforms;

1. Social Media such as Facebook, Instagram, Twitters, etc.

2. Print media includes Newspapers, magazines, pamphlets etc
3. Sign Boards and Tarpaulin
Flyers Tarpaulin Leaflets

Signage
 d. Distribution Strategy

Our personnel will go to member’s home and collect the washable cloths
and brought to our service station and these cloths put into washing
process. The washed and pressed cloths deliver back within agreed
number of days to member’s home with splendid packing in safely manners.
The minimum kilos to avail this value-added service is 10 kilos.

12. Cost Allocation

Promotion/Packaging:
Packing Materials with Print Php 11,250.00
Flyers, Tarpaulin, Facebooks Ads 2,000.00
Loyalty Cards 3,000.00
Logistics:
Gasoline for the Delivery Vehicle 2,000.00
Manpower:
1 Staff 2,000.00
Total Php 20,250.00

13. Marketing Cost

Formula:
MC = Total MC Budget
Total no. of kilos output

MC = Php 20,250.00
6,750 kilos

MC = Php 3.00
PRODUCTION
PLAN
 PRODUCTION PLAN

1. Production Process

The laundry process is as follows:

Receiving Sorting Tagging

Spotting Soaking Washing

Drying / Folding /
Claiming
Segregating Packing

2. Fixed Assets

Speed Queen Top Load Washing Machine

Speed Queen Stacked Wash / Dryers

 Chairs

Tables

3. Depreciation of Fixed Asset

Purchase Depreciation
Fixed Asset Quantity Total Cost Life
Price Cost
Speed Queen Top Load Washing Machine 60,000.00 3 180,000.00 120 1,500.00
Speed Queen Stacked Wash / Dryers 150,000.00 3 450,000.00 120 3,750.00
Leasehold Improvement 150,000.00 1 150,000.00 120 1,250.00
Weighing Scale 1,000.00 1 1,000.00 24 41.67
Iron 2,000.00 1 2,000.00 24 83.33
Steam Presser 3,000.00 1 3,000.00 36 83.33
Chairs 500.00 1 500.00 36 13.89
Tables 1,700.00 1 1,700.00 36 47.22
Hanging Stand System 700.00 1 700.00 36 19.44
Laundry Cart 1,000.00 3 3,000.00 12 250.00
Basin 100.00 5 500.00 12 41.67
* - converted into Months
 Laundry Supplies

Laundry Supplies Purchase Price Quantity Total Cost

Laundry Basket 100.00 5 500.00
Hanger 5.00 100 500.00
Iron Board 800.00 1 800.00
Laundry Bags 100.00 75 7,500.00
Laundry Boards 100.00 2 200.00
Laundry Brush 100.00 2 200.00
Trigger Sprayer 200.00 3 600.00

4. Store Location and Lay-out

DEVC Instawash will rent a space located at Brgy. San Dionisio, Paranaque. The
location is very viable to conduct business because it is near the residential area,
school, church, and public market. The location and site can introduce the
business itself and the product and services it renders.
5. Raw Materials Needed

Raw Materials Quantity

Detergent 1.5 sacks / 50 kilos
Fabric Conditioner 20 Liters x 3
LPG 4 tanks / 50 kilos
Bleach 20 Liters x 1
Laundry Plastics 250 pieces
Scotch Tape 20 rolls
Pentel Pen 2 pieces

6. Cost of Raw Materials

Raw Materials Computation Total

Detergent 1.5 sack x Php 1,600 2,400.00
Fabric Conditioner 3 bottles (20 liters) x Php 1,800 5,400.00
LPG 4 tanks (50 Kilos) x Php 2,500 10,000.00
Bleach 1 bottle (20 liters) x Php 1,800 1,800.00
Laundry Plastics 250 pieces x Php 10 2,500.00
Scotch Tape 20 x Php 20.00 400.00
Pentel Pen 2 x Php 45.00 90.00

7. Raw Materials Availability

- The Detergent, Bleach, Fabric Conditioner is available at Oxychem Corporation,

a known distributor of quality products.
- LPG is available at any petroleum company.
- Scotch Tape and Pentel Pen is available at any office supplies’ store.
8. Labor
Only 1 Staff

9. Cost of Labor
Php 2,000 per month

10. Factory Overhead Expenses

Overhead Expenses Amount
Electricity 8,000.00
Water 15,000.00
Rent 20,000.00
Depreciation Cost 7,938.89
Total 50,938.89

11. Total Production Cost

a. Raw Materials Cost
Detergent Php 2,400.00
Fabric Conditioner 5,400.00
Bleach 1,800.00
LPG 10,000.00
Laundry Plastics 2,500.00
Scotch Tape 400.00
Pentel pen 90.00

b. Labor Cost
1 Staff 2,000.00

c. Overhead Cost
Electricity 8,000.00
Water 15,000.00
Rent 20,000.00
Depreciation Cost 7,938.89
TOTAL Php 75,528.89
Formula:
PC = Total Production Cost
No. Of kilos x number of days

PC = Php 75,528.89
225 kilos x 30 days = 6,750 kilos

PC = Php 11.19
ORGANIZATION
/ MANAGEMENT
PLAN
 ORGANIZATION AND MANAGEMENT PLAN

1. Name of Business

The name of the Business is DEVC Instawash Laundry Services. It is located at

Barangay San Dionisio, Paranaque City.

The logo represents the business which is laundry. DEVC means Denzel Edward
Viardo Cariaga who is the owner of the business. Instawash was used to enable
the public to easily remember the name and nature of the business. The objective
of DEVC Instawash Laundry Services is to provide best and quality laundry
services with affordable price.

2. Brief History

Today’s society is giving much of attention on creating things which will bring
convenience and benefits to human being. The modern lifestyle demands for
things beyond our basic needs.

The use of laundry service be it for personal or home use has become a
necessity than an extravagance. This is because of dependence of health on
hygienic practices.

The owner believes that a good enterprise provides best products with the
greatest service possible by refining and expanding the standard excellence in
this new industry. This is a commitment to our customer satisfaction.

The company shall emerge as a premiere company that shall provide a

commodity of innovation. Specifically, the company is seen as the most
creative company which brought out a new idea of Laundry Business, and later
adds another to the market. It foresees the Filipino people adapting and
enjoying fruits of creativity as the next generation comes.
 This business is an outcome of a collective encouragement, help, and
inspiration from several sources.

One of the inspirations of the owner is his client who owns a laundry business.
They started a small laundry business way back 1996. As of this date, the said
client had 2 laundry plants, 8 branches in different locations and a whopping
75 Million Pesos Annual Gross Revenue.

The friends and family of the owner who had also given him their constant
support and motivation. They inspire him to give his best in setting up this
business.

3. Seminars and Trainings

The following seminar/training was attended by the owner:

• Production and Operation Management, 54 hours, UE Manila

• CEFE Seminar, July 20, 27, August 10, 17, 24, 2019, San Dionisio
Credit Cooperative

The owner will attend the seminar on How to set up a Laundry Business
from reputable seminar organizer such as Business Coach Philippines.

The owner also attended various management trainings and seminars such as:

• Philippine Employment and Industrial Relations Summit, October 25,

2017, AIM Conference Center, Makati City
• 4th Philippine Tax and Accounting Congress, September 14-15, 2017,
Crowne Plaza Galleria
• Tax Accounting Seminar Workshop, July 22-24, 2015 University Hotel,
University of the Philippines
• Seminar on Labor Laws and Rules of Philippine Courts, December 5,
2014, Max’s Restaurant, Scout Tuazon St., Quezon City
• Business Ethics, 54 hours, UE Manila

4. The business is registered with the Department of Trade and Industry as a Sole
Proprietorship. The owner decided to register as a Sole Proprietorship because
Sole proprietorship is the easiest, least expensive and most frequently formed
business. One person owns and controls the business and startup costs are small,
since legal fees are limited to getting required permits and licenses. The owner
makes all decisions pertaining to the business without obligation to anyone else.
A sole proprietorship’s tax rates are the lowest among all business structures. Tax
 preparation is not complicated, and the business is not taxed separately, since all
business income is the owner’s income.

5. Brief Profile of the Owner

Denzel Edward V. Cariaga

79 Lim Compound, Brgy. San Dionisio, Paranaque City

Educational Background:

High School: Novaliches High School, 2006

College: Bachelor of Science in Business Administration, University of the East –

Manila, 2011

Post-Graduate: Juris Doctor (In Progress), Arellano University – Pasay

Work Experience:

• Consultant, Evergrande Group Real Estate Development Company Limited

Inc, March 2019 – Present
• Consultant, DBMC Corporation, November 2014 – Present
• Consultant, Megakarte Smartcard Corporation, June 2015 – May 2019, 4
years
• Owner, DEVC Accounting and Management Consultancy Services, 2015 -
Present
6. Organization Chart

7. Compensation Structure

POSITION NUMBER MONTHLY

General Manager 1 7,500.00

Laundry Staff 1 2,000.00

8. List of Fixed Assets and Office Equipment

Office Fixed Asset Quantity Total Cost

Computer 1 15,000.00
Printer 1 5,000.00
CCTV 3 9,000.00
Fire Extinguishers 3 5,400.00
Chairs 1 500.00
Tables 1 2,500.00
Aircon 1 15,000.00
Electric Fan 1 3,500.00
Vault 1 5,000.00
9. Pre-operating Activities

Responsible
Activities Cost 1 2 3 4 5
Person

Preparation of Business Plan Owner -

Registration with Department of

Owner
Trade and Industry 2,030.00

Registration with Barangay and

Owner
Local Government Unit 15,000.00

Registration with Bureau of Internal

Owner
Revenue 4,000.00

Soft Opening of Business

Total Pre-Operating Expense

21,030.00

10. Administrative Expenses

Admin Expense Monthly Annual Cost

Salaries and Wages 9,500.00 114,000.00

Office Supplies 3,000.00 36,000.00

Taxes and Licenses - 21,030.00

Depreciation Expenses 1,986.11 23,833.33

Percentage Taxes 5,062.50 60,750.00

Uniform - 10,000.00

Communication 3,500.00 42,000.00

Seminar and Training - 6,000.00

FINANCIAL
PLAN
 FINANCIAL PLAN

1. TOTAL PROJECT COST

Particulars Equity Loan Total

FIXED ASSETS
Speed Queen Top Load Washing Machine 180,000.00 180,000.00
Speed Queen Stacked Wash / Dryers 450,000.00 450,000.00
Leasehold Improvement 150,000.00 150,000.00
Weighing Scale 1,000.00 1,000.00
Iron 2,000.00 2,000.00
Steam Presser 3,000.00 3,000.00
Chairs 500.00 500.00
Tables 1,700.00 1,700.00
Hanging Stand System 700.00 700.00
Laundry Cart 3,000.00 3,000.00
Basin 500.00 500.00
Computer 15,000.00 15,000.00
Printer 5,000.00 5,000.00
CCTV 9,000.00 9,000.00
Fire Extinguishers 5,400.00 5,400.00
Chairs 500.00 500.00
Tables 2,500.00 2,500.00
Aircon 15,000.00 15,000.00
Electric Fan 3,500.00 3,500.00
Vault 5,000.00 5,000.00

LAUNDRY SUPPLIES
Laundry Basket 500.00 500.00
Hanger 500.00 500.00
Iron Board 800.00 800.00
Laundry Bags 7,500.00 7,500.00
Laundry Boards 200.00 200.00
Laundry Brush 200.00 200.00
Trigger Sprayer 600.00 600.00

WORKING CAPITAL
RAW MATERIALS
Detergent 2,400.00 2,400.00
Fabric Conditioner 5,400.00 5,400.00
 LPG 10,000.00 10,000.00
Bleach 1,800.00 1,800.00
Laundry Plastics 2,500.00 2,500.00
Scotch Tape 400.00 400.00
Pentel Pen 90.00 90.00
-
LABOR 2,000.00 2,000.00
-
OVERHEAD COST -
Electricity 8,000.00 8,000.00
Water 15,000.00 15,000.00
Rent 20,000.00 20,000.00
-
MARKETING EXPENSES 20,250.00 20,250.00
-
ADMINISTRATIVE EXPENSES 92,000.00 92,000.00
-
PRE-OPERATING EXPENSES 21,030.00 21,030.00

TOTAL PROJECT COST 284,470.00 780,000.00 1,064,470.00

2. LOAN AMORTIZATION SCHEDULE

Applicable Monthly
Principal Interest Balance
Month Amortization
780,000.00
31-Oct-19 13,000.00 11,700.00 24,700.00 767,000.00
30-Nov-19 13,000.00 11,505.00 24,505.00 754,000.00
31-Dec-19 13,000.00 11,310.00 24,310.00 741,000.00
31-Jan-20 13,000.00 11,115.00 24,115.00 728,000.00
29-Feb-20 13,000.00 10,920.00 23,920.00 715,000.00
31-Mar-20 13,000.00 10,725.00 23,725.00 702,000.00
30-Apr-20 13,000.00 10,530.00 23,530.00 689,000.00
31-May-20 13,000.00 10,335.00 23,335.00 676,000.00
30-Jun-20 13,000.00 10,140.00 23,140.00 663,000.00
31-Jul-20 13,000.00 9,945.00 22,945.00 650,000.00
31-Aug-20 13,000.00 9,750.00 22,750.00 637,000.00
30-Sep-20 13,000.00 9,555.00 22,555.00 624,000.00
31-Oct-20 13,000.00 9,360.00 22,360.00 611,000.00
30-Nov-20 13,000.00 9,165.00 22,165.00 598,000.00
31-Dec-20 13,000.00 8,970.00 21,970.00 585,000.00
31-Jan-21 13,000.00 8,775.00 21,775.00 572,000.00
28-Feb-21 13,000.00 8,580.00 21,580.00 559,000.00
31-Mar-21 13,000.00 8,385.00 21,385.00 546,000.00
30-Apr-21 13,000.00 8,190.00 21,190.00 533,000.00
31-May-21 13,000.00 7,995.00 20,995.00 520,000.00
30-Jun-21 13,000.00 7,800.00 20,800.00 507,000.00
31-Jul-21 13,000.00 7,605.00 20,605.00 494,000.00
31-Aug-21 13,000.00 7,410.00 20,410.00 481,000.00
30-Sep-21 13,000.00 7,215.00 20,215.00 468,000.00
31-Oct-21 13,000.00 7,020.00 20,020.00 455,000.00
30-Nov-21 13,000.00 6,825.00 19,825.00 442,000.00
31-Dec-21 13,000.00 6,630.00 19,630.00 429,000.00
31-Jan-22 13,000.00 6,435.00 19,435.00 416,000.00
28-Feb-22 13,000.00 6,240.00 19,240.00 403,000.00
31-Mar-22 13,000.00 6,045.00 19,045.00 390,000.00
30-Apr-22 13,000.00 5,850.00 18,850.00 377,000.00
31-May-22 13,000.00 5,655.00 18,655.00 364,000.00
30-Jun-22 13,000.00 5,460.00 18,460.00 351,000.00
31-Jul-22 13,000.00 5,265.00 18,265.00 338,000.00
31-Aug-22 13,000.00 5,070.00 18,070.00 325,000.00
30-Sep-22 13,000.00 4,875.00 17,875.00 312,000.00
31-Oct-22 13,000.00 4,680.00 17,680.00 299,000.00
30-Nov-22 13,000.00 4,485.00 17,485.00 286,000.00
31-Dec-22 13,000.00 4,290.00 17,290.00 273,000.00
31-Jan-23 13,000.00 4,095.00 17,095.00 260,000.00
28-Feb-23 13,000.00 3,900.00 16,900.00 247,000.00
31-Mar-23 13,000.00 3,705.00 16,705.00 234,000.00
30-Apr-23 13,000.00 3,510.00 16,510.00 221,000.00
31-May-23 13,000.00 3,315.00 16,315.00 208,000.00
30-Jun-23 13,000.00 3,120.00 16,120.00 195,000.00
31-Jul-23 13,000.00 2,925.00 15,925.00 182,000.00
31-Aug-23 13,000.00 2,730.00 15,730.00 169,000.00
30-Sep-23 13,000.00 2,535.00 15,535.00 156,000.00
31-Oct-23 13,000.00 2,340.00 15,340.00 143,000.00
30-Nov-23 13,000.00 2,145.00 15,145.00 130,000.00
31-Dec-23 13,000.00 1,950.00 14,950.00 117,000.00
31-Jan-24 13,000.00 1,755.00 14,755.00 104,000.00
29-Feb-24 13,000.00 1,560.00 14,560.00 91,000.00
31-Mar-24 13,000.00 1,365.00 14,365.00 78,000.00
30-Apr-24 13,000.00 1,170.00 14,170.00 65,000.00
31-May-24 13,000.00 975.00 13,975.00 52,000.00
30-Jun-24 13,000.00 780.00 13,780.00 39,000.00
31-Jul-24 13,000.00 585.00 13,585.00 26,000.00
31-Aug-24 13,000.00 390.00 13,390.00 13,000.00
30-Sep-24 13,000.00 195.00 13,195.00 -
780,000.00 356,850.00 1,136,850.00
3. PROFIT AND LOSS STATEMENT

Year 1 Year 2 Year 3

Service Income 2,025,000.00 2,025,000.00 2,025,000.00
Less: Cost of Services
Raw Materials 271,080.00 271,080.00 271,080.00
Direct Labor 24,000.00 24,000.00 24,000.00
Factory Overhead 611,266.67 597,466.67 595,966.67
Cost of Services 906,346.67 892,546.67 891,046.67
Gross Income 1,118,653.33 1,132,453.33 1,133,953.33
Less: Operating Expenses
Marketing Expenses 243,000.00 243,000.00 243,000.00
Admin and Pre-Operating Expenses 292,583.33 271,183.33 264,183.33
Total Operating Expenses 535,583.33 514,183.33 507,183.33
Net Operating Income 583,070.00 618,270.00 626,770.00
Less: Interest Expense 127,530.00 99,450.00 71,370.00
Net Income before Tax 455,540.00 518,820.00 555,400.00
Less: Income Tax 43,885.00 59,705.00 68,850.00
Net Income after Tax 411,655.00 459,115.00 486,550.00
4. BALANCE SHEET

Year 1 Year 2 Year 3

ASSETS
Cash 1,295,625.00 1,718,640.00 2,140,590.00
Prepaid Rent 20,000.00 - -
Rent Deposit 40,000.00 40,000.00 40,000.00
Production Equipment 572,433.33 505,966.67 441,000.00
Office Equipment 37,066.67 18,633.33 7,200.00
Leasehold Improvement 135,000.00 120,000.00 105,000.00
Total Assets 2,100,125.00 2,403,240.00 2,733,790.00

LIABILITIES AND OWNER'S EQUITY

LIABILITIES
Loans Payable 624,000.00 468,000.00 312,000.00
Total Liabilities 624,000.00 468,000.00 312,000.00

OWNER'S EQUITY
Capital 1,064,470.00 1,476,125.00 1,935,240.00
Net Income 411,655.00 459,115.00 486,550.00
Total Owner's Equity 1,476,125.00 1,935,240.00 2,421,790.00

Total Liabilities and Owners Equity 2,100,125.00 2,403,240.00 2,733,790.00

5. CASH FLOW STATEMENT

Year 1 Year 2 Year 3

Net Income 411,655.00 459,115.00 486,550.00
Adjustments to Reconcile net income to net cash
Prepaid Rent 20,000.00 20,000.00 -
Rent Deposit 40,000.00 - -
Net Cash Provided by Operating Activities 351,655.00 479,115.00 486,550.00

CASH FLOWS FROM INVESTING ACTIVITIES

Capital 1,064,470.00 - -
Property & Equipment 744,500.00 99,900.00 91,400.00
Net Cash Provided from Investing Activities 319,970.00 99,900.00 91,400.00

CASH FLOWS FROM FINANCING ACTIVITIES

Loan 624,000.00 156,000.00 156,000.00
Net Cash Provided from Financing Activities 624,000.00 156,000.00 156,000.00

CASH, Beginning 1,295,625.00 1,718,640.00

CASH, Ending 1,295,625.00 1,718,640.00 2,140,590.00