FOLEY’S END INC.

Projected Statement of
Earnings
As at September 30
Account Titles Assumptions 2012 2013
Revenues
Sales Food sales grow to $335,455 $368,528
$145,000 in 2012 and $155,000
in 2013; Beverage sales grow by
15% in 2012 and 25% in 2013.
COGS
Beginning Inventory Last Year’s Ending $5,882 $4,282
Inventory
Purchases COGS+EI-BI $154,689 $172,119
Ending Inventroy Return to 10 days $4,282 $4,704
COGS 46.59% of Sales $156,289 $171,697
Gross Profits $179,166 $196,831
Operating
Expenses
Expenses
Advertising Same%(1.64%) $5,502 $6,044
Amortization Same%(3.58%) $12,009 $13,193
Bank charges and $1,879 $2,064
Same%(0.56%)
interest
General and Same%(4.14%) + 2% to the $20,597 $22,628
administrative credit card companies
Insurance Same%(2.41%) $8,085 $8,882
Office supplies Same%(0.66%) $2,214 $2,432
Rent Same%(12.25%) $41,093 $45,145
Repairs and $6,273 $6,892
Same%(1.87%)
maintenance
Utilities 3% of total gross sales $10,064 $11,056
Wages and salaries Same%(23.80%) + $87,118 $87,118
$140/week*52 weeks
Total Operating $194,834 $205,454
Expenses
 Operating Income $(15,668) $(8,623)
Other Expense $600+6% $20,727 $22,712
Net Income Before $(36,395) $(31,335)
Taxes
Taxes Owner’s Estimate (5% on $16,773 $73,706
the first year and 20% for the
next year)
Net Income (Loss) $(53,168) $(105,041)

FOLEY’S END INC.

Projected Statement of
Retained Earnings
As at September 30
Assumption 2012 2013
Beginning Retained $(38,447) $(91,615)
Previous Year’s SRE
Earnings
Add: Net Income PSOE $(53,168) $(105,041)
Less: Dividends Same $Amounts $0 $0
Ending Retained $(91,615) $(196,656)
Earnings

FOLEY’S END INC.

Projected Balance Sheet
As at September 30
Assets: Assumption 2012 2013
Current Assets:
Cash Same$ $605 $605
Account Receivable Same Days (11.7days) $10,753 $11,813
Inventory PSOE $4282 $4704
Total Current Assets $15,640 $17,122
Fixed Assets:
Equipment Same$ $39,500 $39,500
Restaurant fixtures Same$+$3,500 $32,950 $32,950
Computer Same$ $3,200 $3,200
New expansion A $6,000 long-term loan $6,000 $6,000
Subtotal $81,650 $81,650
Less: Acc.Deprec Prev+Exp $41,169 $54,362
 Net fixed assets $40,481 $27,288

TOTAL ASSETS $56,121 $44,410

Liabilities
Current Liabilities
Working Capital $35,190 $127,312
Plug
Loan
Accounts Payable 25.3days $10,722 $11,930
Wages payable Same$ + $140/week*52 $9,956 $9,956
weeks
Line of credit $36,618 $36,618
Same$
($40,000 limit)
Current portion of $6,250 $6,250
Same$
bank loan
Total current $98,736 $192,066
liabilities
Long-term
Liabilities
Bank Loan Same$ + $6,000 $31,000 $31,000
Total long-term $31,000 $31,000
liabilities
Equity:
Capital stock Same$ $18,000 $18,000
Retained earnings PSORE $(91,615) $(196,656)
Total equity $(73,615) $(178,656)

Total liabilities and $56,121 $44,410

equity

EXHIBIT 2 – PLUG ADJUSTMENTS

Seasonality (if applies)

2012 2013
Plug $35,190 $127,312
+ Seasonal $5,000 $5,000
adjustment
New Plug $40,190 $132,312
 Sensitivity Analysis
Difference New
New Value
(absolute value) Plug
Days Calculation $ Calculation $ Calculation $
Days*(Purcha $4,238 New Inventory- $6,353 Base Plug $33,8
Low 10
ses/365) base case change 37
$10,591 $0 $40.1
Base Case
90
25

$16,952 $6,952 $47,1

High 40 42

EXHIBIT 3 – RISK ASSESSMENT

2013 2012 2011 2010 2009

Calculation Projected Projected Historical Historical Historical
Current
CA/CL 0.09:1 0.16:1 0.29:1 0.37:1 0.56:1
Ratio
[Cash+ms+
Acid Test 0.12:1 0.07:1 0.18:1 0.27:1 0.45:1
AR]/CL
Interest EBIT/int.ex
4.25x 5.43x N/A N/A N/A
Coverage p