YEAR ONE

Break-even
Rent $ 310,600.00
Utilities $ 38,644.00
Labor $ 594,750.00
COGS (50% of Gross Sales) $ 944,620.00
Total Cost $ 1,888,614.00
Gross Sales $ 1,889,240.00
Average Retail per Cake $ 80.00
Cakes Sold per year 23,616
Cakes Sold per day 64.7
Net Income $ 626.00
Margin 0.03% Growth Rate 13.2%

Year One Year Two Year Three Year Four Year Five
Rent (3% escalation) $ 310,600.00 $ 319,918.00 $ 329,515.54 $ 339,401.01 $ 349,583.04
Utilities (3% escalation) $ 38,644.00 $ 39,803.32 $ 40,997.42 $ 42,227.34 $ 43,494.16
Labor (5% escalation) $ 594,750.00 $ 624,487.50 $ 655,711.88 $ 688,497.47 $ 722,922.34
COGS (50% of Gross Sales) $ 944,620.00 $ 1,069,309.84 $ 1,210,458.74 $ 1,370,239.29 $ 1,551,110.88
Total Cost $ 1,888,614.00 $ 2,053,518.66 $ 2,236,683.57 $ 2,440,365.11 $ 2,667,110.42
Gross Sales $ 1,889,240.00 $ 2,138,619.68 $ 2,420,917.48 $ 2,740,478.58 $ 3,102,221.76
Average Retail per Cake $ 80.00 $ 80.00 $ 80.00 $ 80.00 $ 80.00
Cakes Sold per year 23,616 26,733 30,261 34,256 38,778
Cakes Sold per day 64.7 73.2 82.9 93.9 106.2

Net Income $ 626.00 $ 85,101.02 $ 184,233.90 $ 300,113.48 $ 435,111.34

Margin 0.03% 3.98% 7.61% 10.95% 14.03%
Start-up Cost Left $ 999,374.00 $ 914,272.98 $ 730,039.08 $ 429,925.60 $ (5,185.74)
 Historical period Forecasting Period
2012 2013 2014 2015 2016 2017
Sales $4,132.5 $7,491.2 $11,000.0 13200 18480 23100
COGS (excluding depr.) $1,303.4 $1,632.7 $2,397.48 2876.97135313803 4027.76 5034.7
Gross Profit $2,829.1 $5,858.5 $8,602.5 10323.028646862 14452.24 18065.3

SG&A $2,449.2 $4,342.5 $6,376.49 7519.79136497327 10342.91 12697.63

R&D Exp. $0.0 $0.0 $0.0 13.2 18.48 23.1
EBITDA $379.9 $1,516.0 $2,226.0 2790.0372818887 4090.852 5344.565
Depreciation $41.8 $149.0 $0.00 800 47.124 62.37
Amortization $0.0 $0.0 $0.0
EBIT $338.1 $1,367.0 $2,226.0 $1,990 $4,044 $5,282
Taxes (35.0%) $4.4 $74.2 $0.00 $697 $1,415 $1,849
Tax-effected EBIT $333.7 $1,292.8 $2,226.0 $1,294 $2,628 $3,433
Capital Expenditures $142.2 $1,194.4 $33.0 1000 55.44 69.3
Change in working capital $10.8 $271.2 $68.0 $41.80 $100.32 $87.78
FCFF 1,051.7 2,519.8 3,338.7
Sales Growth NA 81.3% 46.8% 20% 40% 25%
COGS (% of sales) 31.54% 21.80% 21.80% 21.80% 21.80% 21.80%
SG&A (% of sales) 59% 58% 58% 57.0% 56.0% 55.0%
R&D Exp. (% of sales) 0% 0% 0% 0.10% 0.10% 0.10%
CapEx (% of sales) 3.44% 15.94% 0.30% 0.075757575757576 0.30% 0.30%
Depreciation (% of CapEx) 29.4% 12.5% 75% 80.0% 85.0% 90.0%
Amortization (amount) 0% 0% 0% 0% 0% 0%
Additions to Intangibles (amount) 0% 0% 0% 0% 0% 0%
Change in Working Capital (% of ∆ sales) 1.9% 1.9% 1.9% 1.9%
Tax rate 35%
WAAC
Perpetuity growth
TV CF
PV of FCFE
ng Period
2018 2019
28875 36093.75
6293.375 7866.719
22581.63 28227.03

15583.29 19118.18
28.875 36.09375
6969.457 9072.758
82.29375 108.2813

$6,887 $8,964 WACC 12%

$2,411 $3,138 g% 4%
$4,477 $5,827 Pertuity Multiple 13.00
86.625 108.2813 1 2 3 4 5
$109.73 $137.16 2015 2016 2017 2018 2019
4,362.6 5,689.8 FCFF 1051.7242332 2519.787 3338.717 4362.6 5689.754
25% 25% TV CFs
21.80% 21.80% PV of FCFF 939.03949395 2008.759 2376.433 2772.511 3228.519
54.0% 53.0% Total PV of all cash fl 53296.009393
0.10% 0.10% Chinese investor's in 10000.00
0.30% 0.30% 0.1876313089
95.0% 100.0% Value of lady M china 21318.403757
0% 0% Total lady m value inc 74614.41315
0% 0% 0.1340223635
1.9% 1.9%

#DIV/0!
 5
2019

73966.8
41970.75
 Assumptions 2015 2016 2017 2018
Rent 3% 310600 319918 329515.5 339401
Utilities 3% 38644 39803.32 40997.42 42227.34
labour cost 5% 594750 624487.5 655711.9 688497.5
CGS of sales 50% 949000 1071730 1210333 1366860
Total cost 1892994 2055939 2236557 2436986
total revenue 1898000 2143460 2420665 2733720
price per cake 80.00 80.00 80.00 80.00
no. of days in a year 365 365 365 365
No. of cakes to be sold in a day 65 73.40618 82.89949 93.62054
No. of cakes to be sold in a year 23725 26793.26 30258.31 34171.5
net Income 5006 87521.39 184107.8 296734
margin 0.26% 4.08% 7.61% 10.85%
start up cost left -1000000 -994994 -907473 -723365 -426631
Growth rate beyond 2015 12.93%
 2019
349583
43494.16
722922.3
1543630
2659630
3087260
80.00
365
105.7281
38590.75
427630.6
13.85%
999.7786