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Table: Start-up

Start-up

Requirements

Start-up Expenses
Legal $2,000
Stationery etc. $500
Insurance $2,500
Other $5,000
Total Start-up Expenses $10,000

Start-up Assets
Cash Required $200,000
Other Current Assets $0
Long-term Assets $275,000
Total Assets $475,000

Total Requirements $485,000

Table: Sales Forecast

Sales Forecast
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Sales
Financial Services $708,000 $1,600,000 $3,000,000 $5,000,000 $10,000,000
$0 $0 $0 $0 $0
Total Sales $708,000 $1,600,000 $3,000,000 $5,000,000 $10,000,000

Direct Cost of Sales FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Personnel Expense $0 $0 $0 $0 $0
$0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0 $0 $0

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Table: Personnel

Personnel Plan
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Personnel Expenses Personnel
Personnel $780,900 $1,385,100 $2,220,000 $2,871,300 $4,314,000
$0 $0 $0 $0 $0
Subtotal $780,900 $1,385,100 $2,220,000 $2,871,300 $4,314,000

Personnel
Name or Title or Group $0 $0 $0 $0 $0
Name or Title or Group $0 $0 $0 $0 $0
Name or Title or Group $0 $0 $0 $0 $0
Subtotal $0 $0 $0 $0 $0

Personnel
Name or Title or Group $0 $0 $0 $0 $0
Name or Title or Group $0 $0 $0 $0 $0
Name or Title or Group $0 $0 $0 $0 $0
Subtotal $0 $0 $0 $0 $0

Personnel
Name or Title or Group $0 $0 $0 $0 $0
Name or Title or Group $0 $0 $0 $0 $0
Name or Title or Group $0 $0 $0 $0 $0
Subtotal $0 $0 $0 $0 $0

Total Payroll $780,900 $1,385,100 $2,220,000 $2,871,300 $4,314,000

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Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund $10,000
Start-up Assets to Fund $475,000
Total Funding Required $485,000

Assets
Non-cash Assets from Start-up $275,000
Cash Requirements from Start-up $200,000
Additional Cash Raised $15,000
Cash Balance on Starting Date $215,000
Total Assets $490,000

Liabilities and Capital

Liabilities
Current Borrowing $0
Long-term Liabilities $350,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $350,000

Capital

Planned Investment
Promoters $50,000
Investor $100,000
Additional Investment Requirement $0
Total Planned Investment $150,000

Loss at Start-up (Start-up Expenses) ($10,000)

Total Capital $140,000

Total Capital and Liabilities $490,000

Total Funding $500,000

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $7,542

Assumptions:
Average Percent Variable Cost 0%
Estimated Monthly Fixed Cost $7,542

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Table: Profit and Loss

Pro Forma Profit and Loss

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Sales $708,000 $1,600,000 $3,000,000 $5,000,000 $10,000,000
Direct Cost of Sales $0 $0 $0 $0 $0
Personnel Expenses Payroll $780,900 $1,385,100 $2,220,000 $2,871,300 $4,314,000
Other Costs of Sales $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------
Total Cost of Sales $780,900 $1,385,100 $2,220,000 $2,871,300 $4,314,000

Gross Margin ($72,900) $214,900 $780,000 $2,128,700 $5,686,000

Gross Margin % -10.30% 13.43% 26.00% 42.57% 56.86%

Operating Expenses

Expenses
Payroll $0 $0 $0 $0 $0
Advertising $30,000 $30,000 $80,000 $100,000 $120,000
Travelling $20,000 $20,000 $41,000 $51,000 $61,000
------------ ------------ ------------ ------------ ------------
Total Expenses $50,000 $50,000 $121,000 $151,000 $181,000
% 7.06% 3.13% 4.03% 3.02% 1.81%

Expenses
Payroll $0 $0 $0 $0 $0
Marketing/Promotion $0 $0 $0 $0 $0
Depreciation $30,000 $30,000 $30,000 $30,000 $30,000
Utilities $5,000 $5,500 $6,000 $6,500 $7,000
Insurance $2,500 $2,500 $2,500 $2,500 $2,500
Other $3,000 $3,000 $3,000 $3,000 $3,000
------------ ------------ ------------ ------------ ------------
Total Expenses $40,500 $41,000 $41,500 $42,000 $42,500
% 5.72% 2.56% 1.38% 0.84% 0.43%

Expenses:
Payroll $0 $0 $0 $0 $0
$0 $0 $0 $0 $0
$0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------
Total Expenses $0 $0 $0 $0 $0
% 0.00% 0.00% 0.00% 0.00% 0.00%
------------ ------------ ------------ ------------ ------------
Total Operating Expenses $90,500 $91,000 $162,500 $193,000 $223,500

Profit Before Interest and Taxes ($163,400) $123,900 $617,500 $1,935,700 $5,462,500
EBITDA ($133,400) $153,900 $647,500 $1,965,700 $5,492,500
Interest Expense $29,750 $30,750 $29,263 $25,288 $22,313
Taxes Incurred $0 $18,630 $117,648 $382,083 $1,088,038

Net Profit ($193,150) $74,520 $470,590 $1,528,330 $4,352,150

Net Profit/Sales -27.28% 4.66% 15.69% 30.57% 43.52%

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Table: Cash Flow

Pro Forma Cash Flow

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Cash Received

Cash from Operations

Cash Sales $177,000 $400,000 $750,000 $1,250,000 $2,500,000
Cash from Receivables $488,225 $1,146,108 $2,165,417 $3,629,167 $7,197,917
Subtotal Cash from Operations $665,225 $1,546,108 $2,915,417 $4,879,167 $9,697,917

Additional Cash Received

Sales Tax, VAT, HST/GST
$0 $0 $0 $0 $0
Received
New Current Borrowing $0 $20,000 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $50,000
New Investment Received $0 $0 $0 $0 $0
Subtotal Cash Received $665,225 $1,566,108 $2,915,417 $4,879,167 $9,747,917

Expenditures FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Expenditures from Operations

Cash Spending $780,900 $1,385,100 $2,220,000 $2,871,300 $4,314,000
Bill Payments $82,980 $108,578 $265,517 $546,455 $1,243,564
Subtotal Spent on Operations $863,880 $1,493,678 $2,485,517 $3,417,755 $5,557,564

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0
Principal Repayment of Current
$0 $0 $20,000 $0 $0
Borrowing
Other Liabilities Principal
$0 $0 $0 $0 $0
Repayment
Long-term Liabilities Principal
$0 $0 $35,000 $35,000 $35,000
Repayment
Purchase Other Current Assets $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $75,000 $80,000 $100,000 $300,000
Dividends $0 $0 $0 $0 $0
Subtotal Cash Spent $863,880 $1,568,678 $2,620,517 $3,552,755 $5,892,564

Net Cash Flow ($198,655) ($2,569) $294,900 $1,326,411 $3,855,353

Cash Balance $16,345 $13,776 $308,675 $1,635,086 $5,490,439

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Table: Balance Sheet

Pro Forma Balance Sheet

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Assets

Current Assets
Cash $16,345 $13,776 $308,675 $1,635,086 $5,490,439
Accounts Receivable $42,775 $96,667 $181,250 $302,083 $604,167
Other Current Assets $0 $0 $0 $0 $0
Total Current Assets $59,120 $110,442 $489,925 $1,937,170 $6,094,606

Long-term Assets
Long-term Assets $275,000 $350,000 $430,000 $530,000 $780,000
Accumulated Depreciation $30,000 $60,000 $90,000 $120,000 $150,000
Total Long-term Assets $245,000 $290,000 $340,000 $410,000 $630,000
Total Assets $304,120 $400,442 $829,925 $2,347,170 $6,724,606

Liabilities and Capital FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Current Liabilities
Accounts Payable $7,270 $9,072 $22,965 $46,880 $107,166
Current Borrowing $0 $20,000 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0
Subtotal Current Liabilities $7,270 $29,072 $22,965 $46,880 $107,166

Long-term Liabilities $350,000 $350,000 $315,000 $280,000 $245,000

Total Liabilities $357,270 $379,072 $337,965 $326,880 $352,166

Paid-in Capital $150,000 $150,000 $150,000 $150,000 $150,000

Retained Earnings ($10,000) ($203,150) ($128,630) $341,960 $1,870,290
Earnings ($193,150) $74,520 $470,590 $1,528,330 $4,352,150
Total Capital ($53,150) $21,370 $491,960 $2,020,290 $6,372,440
Total Liabilities and Capital $304,120 $400,442 $829,925 $2,347,170 $6,724,606

Net Worth ($53,150) $21,370 $491,960 $2,020,290 $6,372,440

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Table: Ratios

Ratio Analysis
Industry
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Profile
Sales Growth 0.00% 125.99% 87.50% 66.67% 100.00% 6.99%

Percent of Total Assets

Accounts Receivable 14.07% 24.14% 21.84% 12.87% 8.98% 18.01%
Other Current Assets 0.00% 0.00% 0.00% 0.00% 0.00% 52.28%
Total Current Assets 19.44% 27.58% 59.03% 82.53% 90.63% 74.45%
Long-term Assets 80.56% 72.42% 40.97% 17.47% 9.37% 25.55%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Current Liabilities 2.39% 7.26% 2.77% 2.00% 1.59% 32.67%

Long-term Liabilities 115.09% 87.40% 37.96% 11.93% 3.64% 17.17%
Total Liabilities 117.48% 94.66% 40.72% 13.93% 5.24% 49.84%
Net Worth -17.48% 5.34% 59.28% 86.07% 94.76% 50.16%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Gross Margin -10.30% 13.43% 26.00% 42.57% 56.86% 100.00%
Selling, General & Administrative
16.98% 8.77% 10.31% 12.01% 13.34% 78.70%
Expenses
Advertising Expenses 4.24% 1.88% 2.67% 2.00% 1.20% 1.17%
Profit Before Interest and Taxes -23.08% 7.74% 20.58% 38.71% 54.63% 3.28%

Main Ratios
Current 8.13 3.80 21.33 41.32 56.87 1.68
Quick 8.13 3.80 21.33 41.32 56.87 1.36
Total Debt to Total Assets 117.48% 94.66% 40.72% 13.93% 5.24% 59.49%
Pre-tax Return on Net Worth 363.41% 435.89% 119.57% 94.56% 85.37% 7.66%
Pre-tax Return on Assets -63.51% 23.26% 70.88% 81.39% 80.90% 18.91%

Additional Ratios FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Net Profit Margin -27.28% 4.66% 15.69% 30.57% 43.52% n.a
Return on Equity 0.00% 348.71% 95.66% 75.65% 68.30% n.a

Activity Ratios
Accounts Receivable Turnover 12.41 12.41 12.41 12.41 12.41 n.a
Collection Days 29 21 23 24 22 n.a
Accounts Payable Turnover 12.41 12.17 12.17 12.17 12.17 n.a
Payment Days 27 27 21 22 22 n.a
Total Asset Turnover 2.33 4.00 3.61 2.13 1.49 n.a

Debt Ratios
Debt to Net Worth 0.00 17.74 0.69 0.16 0.06 n.a
Current Liab. to Liab. 0.02 0.08 0.07 0.14 0.30 n.a

Liquidity Ratios
Net Working Capital $51,850 $81,370 $466,960 $1,890,290 $5,987,440 n.a
Interest Coverage -5.49 4.03 21.10 76.55 244.82 n.a

Additional Ratios
Assets to Sales 0.43 0.25 0.28 0.47 0.67 n.a
Current Debt/Total Assets 2% 7% 3% 2% 2% n.a
Acid Test 2.25 0.47 13.44 34.88 51.23 n.a
Sales/Net Worth 0.00 74.87 6.10 2.47 1.57 n.a
Dividend Payout 0.00 0.00 0.00 0.00 0.00 n.a

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Table: General Assumptions

General Assumptions
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Plan Month 1 2 3 4 5
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 8.50% 8.50% 8.50% 8.50% 8.50%
Tax Rate 20.00% 20.00% 20.00% 20.00% 20.00%
Other 0 0 0 0 0

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Table: Sales Forecast

Sales Forecast
Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12
Sales
Financial Services 0% $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000
0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000

Direct Cost of Sales Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12
Personnel Expense $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 Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

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Table: Personnel

Personnel Plan
Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12
Personnel Expenses Personnel
Personnel $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075

Personnel
Name or Title or Group $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Name or Title or Group $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Name or Title or Group $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

Personnel
Name or Title or Group $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Name or Title or Group $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Name or Title or Group $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

Personnel
Name or Title or Group $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Name or Title or Group $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Name or Title or Group $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 Payroll $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075

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Table: Profit and Loss

Pro Forma Profit and Loss

Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12
Sales $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000
Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Personnel Expenses Payroll $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Cost of Sales $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075

Gross Margin ($6,075) ($6,075) ($6,075) ($6,075) ($6,075) ($6,075) ($6,075) ($6,075) ($6,075) ($6,075) ($6,075) ($6,075)
Gross Margin % -10.30% -10.30% -10.30% -10.30% -10.30% -10.30% -10.30% -10.30% -10.30% -10.30% -10.30% -10.30%

Operating Expenses

Expenses
Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Advertising $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Travelling $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Expenses $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167
% 7.06% 7.06% 7.06% 7.06% 7.06% 7.06% 7.06% 7.06% 7.06% 7.06% 7.06% 7.06%

Expenses
Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Marketing/Promotion $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Utilities $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417
Insurance $208 $208 $208 $208 $208 $208 $208 $208 $208 $208 $208 $208
Other $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Expenses $3,375 $3,375 $3,375 $3,375 $3,375 $3,375 $3,375 $3,375 $3,375 $3,375 $3,375 $3,375
% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72%

Expenses:
Payroll $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
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Expenses $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%
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Operating Expenses $7,542 $7,542 $7,542 $7,542 $7,542 $7,542 $7,542 $7,542 $7,542 $7,542 $7,542 $7,542

Profit Before Interest and Taxes ($13,617) ($13,617) ($13,617) ($13,617) ($13,617) ($13,617) ($13,617) ($13,617) ($13,617) ($13,617) ($13,617) ($13,617)
EBITDA ($11,117) ($11,117) ($11,117) ($11,117) ($11,117) ($11,117) ($11,117) ($11,117) ($11,117) ($11,117) ($11,117) ($11,117)
Interest Expense $2,479 $2,479 $2,479 $2,479 $2,479 $2,479 $2,479 $2,479 $2,479 $2,479 $2,479 $2,479
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit ($16,096) ($16,096) ($16,096) ($16,096) ($16,096) ($16,096) ($16,096) ($16,096) ($16,096) ($16,096) ($16,096) ($16,096)
Net Profit/Sales -27.28% -27.28% -27.28% -27.28% -27.28% -27.28% -27.28% -27.28% -27.28% -27.28% -27.28% -27.28%

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Table: Cash Flow

Pro Forma Cash Flow

Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12
Cash Received

Cash from Operations

Cash Sales $14,750 $14,750 $14,750 $14,750 $14,750 $14,750 $14,750 $14,750 $14,750 $14,750 $14,750 $14,750
Cash from Receivables $1,475 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250
Subtotal Cash from Operations $16,225 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000

Additional Cash Received

Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $16,225 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000 $59,000

Expenditures Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12

Expenditures from Operations

Cash Spending $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075 $65,075
Bill Payments $251 $7,521 $7,521 $7,521 $7,521 $7,521 $7,521 $7,521 $7,521 $7,521 $7,521 $7,521
Subtotal Spent on Operations $65,326 $72,596 $72,596 $72,596 $72,596 $72,596 $72,596 $72,596 $72,596 $72,596 $72,596 $72,596

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $65,326 $72,596 $72,596 $72,596 $72,596 $72,596 $72,596 $72,596 $72,596 $72,596 $72,596 $72,596

Net Cash Flow ($49,101) ($13,596) ($13,596) ($13,596) ($13,596) ($13,596) ($13,596) ($13,596) ($13,596) ($13,596) ($13,596) ($13,596)
Cash Balance $165,899 $152,303 $138,708 $125,112 $111,516 $97,920 $84,324 $70,728 $57,133 $43,537 $29,941 $16,345

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Table: Balance Sheet

Pro Forma Balance Sheet

Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12
Assets Starting Balances

Current Assets
Cash $215,000 $165,899 $152,303 $138,708 $125,112 $111,516 $97,920 $84,324 $70,728 $57,133 $43,537 $29,941 $16,345
Accounts Receivable $0 $42,775 $42,775 $42,775 $42,775 $42,775 $42,775 $42,775 $42,775 $42,775 $42,775 $42,775 $42,775
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $215,000 $208,674 $195,078 $181,483 $167,887 $154,291 $140,695 $127,099 $113,503 $99,908 $86,312 $72,716 $59,120

Long-term Assets
Long-term Assets $275,000 $275,000 $275,000 $275,000 $275,000 $275,000 $275,000 $275,000 $275,000 $275,000 $275,000 $275,000 $275,000
Accumulated Depreciation $0 $2,500 $5,000 $7,500 $10,000 $12,500 $15,000 $17,500 $20,000 $22,500 $25,000 $27,500 $30,000
Total Long-term Assets $275,000 $272,500 $270,000 $267,500 $265,000 $262,500 $260,000 $257,500 $255,000 $252,500 $250,000 $247,500 $245,000
Total Assets $490,000 $481,174 $465,078 $448,983 $432,887 $416,791 $400,695 $384,599 $368,503 $352,408 $336,312 $320,216 $304,120

Liabilities and Capital Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12

Current Liabilities
Accounts Payable $0 $7,270 $7,270 $7,270 $7,270 $7,270 $7,270 $7,270 $7,270 $7,270 $7,270 $7,270 $7,270
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $7,270 $7,270 $7,270 $7,270 $7,270 $7,270 $7,270 $7,270 $7,270 $7,270 $7,270 $7,270

Long-term Liabilities $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000
Total Liabilities $350,000 $357,270 $357,270 $357,270 $357,270 $357,270 $357,270 $357,270 $357,270 $357,270 $357,270 $357,270 $357,270

Paid-in Capital $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000
Retained Earnings ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000)
Earnings $0 ($16,096) ($32,192) ($48,288) ($64,383) ($80,479) ($96,575) ($112,671) ($128,767) ($144,863) ($160,958) ($177,054) ($193,150)
Total Capital $140,000 $123,904 $107,808 $91,713 $75,617 $59,521 $43,425 $27,329 $11,233 ($4,863) ($20,958) ($37,054) ($53,150)
Total Liabilities and Capital $490,000 $481,174 $465,078 $448,983 $432,887 $416,791 $400,695 $384,599 $368,503 $352,408 $336,312 $320,216 $304,120

Net Worth $140,000 $123,904 $107,808 $91,713 $75,617 $59,521 $43,425 $27,329 $11,233 ($4,863) ($20,958) ($37,054) ($53,150)

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 Appendix
Table: General Assumptions

General Assumptions
Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50%
Tax Rate 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0

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