Section 4

Team 9

Fall 2022

Business Plan

Business Name: Screen GenieⓇ

Business Idea: Our product is a liquid glass screen protector with blue light filtration that

can be applied to a multitude of screens including cellular devices, tablets, and computers.

The Screen Genie comes in a brightly labeled cardboard box with our logo on the front and

directions on how to apply the solution on the back. Inside the box comes a plastic bottle

with a dropper and a microfiber cloth. The product is applied with 4 drops of the solution to

your phone screen(varies for larger screens), then using the provided microfiber cloth,

evenly spread the solution onto the user's screen. Within 2 minutes, the solution has set

into an invisible, glass protective screen with blue light filtration!

Team Members:
Email Address:

Jordan Devine Jordan Devine devin2ja@dukes.jmu.edu

Tina Huynh Tina Huynh huynh4tx@dukes.jmu.edu

Sean Landicho Sean Landicho landicst@dukes.jmu.edu

Joseph Merhi Joseph Merhi merhija@dukes.jmu.edu

Nuha Nagim Nuha Nagim nagim2nb@dukes.jmu.edu

Ryan Negola Ryan Negola negolard@dukes.jmu.edu

Ben Nethery Ben Nethery netherbt@dukes.jmu.edu

 1

Executive Summary
Screen Genie
Contact name: John Jones
Address: 6995 NW 82nd Ave, Miami FL
Phone Number: 305-912-3824
E-mail: bluelightscreen@screengenie.com
—————————————————————————————————————————
Management: Business Description: Our product is a liquid glass screen
Chief Executive Officer protector with blue light filtration that applies to cellular devices,
Marketing Manager tablets, and computers.
Operating Manager
Accountant Products/Services: Screen Genie comes in a cardboard box with
Social Media Manager our logo on the front and directions on the back. The box comes
Sales Representative with a plastic dropper bottle and a microfiber cloth. Variable unit
Foreman cost is $0.55 and we are selling it for $20 through our website and for
Line Technician $15 in B2B transactions. We get all of our materials delivered through
Alibaba suppliers in China and India.
Industry: Glass product manufacturing from
purchased glass, NAICS: 32721 Competitive Advantage:
The formula that we used to create the blue light-blocking solution
Number of Employees: 11 will be the only thing we will patent starting in year two. Our
one-of-a-kind, inexpensive, easy to apply, liquid formula consists of
Amount of Financing Sought: $700,000 ($466,666 1.5 milliliters of liquid glass, 0.25 millimeters of benzene, and 0.25
in straightline debt depreciation, $233,333 is in equity milliliters of thiophene. We plan to obtain a dominant share of this
depreciation market by utilizing a cost oriented strategy that is hard to replicate
due to the low unit variable cost in our manufacturing process.
Investment Sources: $466,666 is an installment loan
from the bank over 5 years at a 7% interest rate. Markets:
$233,333 is a investment from investors for the equity Our three target markets are families, businesses, and schools (K-12).
of 35%. For families, there are about 3-5 people per family and the growth
projection is 5% annually. For businesses, the potential market size is
Use of Funds: 22.44 million people and the estimated growth projection rate is
To fund the first three months of necessary business 21.25% in EPS over the next 5 years. For our last target market,
practices before operations begin. (Warehouse rent, schools, the potential market size is about 50 million students (in the
hiring costs, supply costs) K-12 education system) and the growth rate is 6% due to the volume
Product/service selling price: $20 (direct of schools in the U.S. We will be selling to families through our
retail)/$15 (B2B) website and other e-commerce websites at the price of $20. Selling to
schools and businesses will be done on a wholesale level with a price
point of $15.
—————————————————————————————————————————
Distribution Channels: Alibaba will ship supplies to Port Everglades where MC Intl. Transportation INC.
will then deliver the supplies to our facility. We will then have mail distributors send the finished products
directly to customers through orders both on our company site, Amazon, or bulk sales generated from our
internal sales representatives.
—————————————————————————————————————————
Competition: Among pre-existing screen protectors business, some of our prominent competitors are Zagg
and Eyejust. It is a competitive market due to other established companies, but we differentiate ourselves
through the unique application of our product in addition to the blue light technology offered as well.
—————————————————————————————————————————
Financial Projections (Unaudited):
2022 2023 2024 2025 2026
Revenue: $1,074,600 $1,547,424 $1,678,284 $1,829,322 $2,003,112
EBIT: ($22,715) $332,026 $410,506 $533,654 $647,058
 2

Narrative

Hello, we’re the executive creators behind a liquid screen protector with a

concentration on blue light filtration, better known as ScreenGenie. Our seamless

application of liquid glass provides an innovative way to protect screens that have become a

necessity in the workplace and day-to-day life. While 319 million Americans (Pew Research

Center, 2022) use their devices for multiple hours a day, it can cause a variety of health

issues. Our goal is to affordably protect consumers' beloved devices, as well as offer

benefits toward neurological health.

This new product is a liquid glass screen protector that applies to cellular devices,

tablets, and computer screens. The liquid glass comes in a disposable, plastic bottle that

holds 2mL of our soon-to-be patented solution. Screen Genie is applied to cellular devices

by putting 4 drops of our solution on your screen and using our provided microfiber cloth to

wipe the solution evenly on the screen. After 2 minutes of air drying, Screen Genie becomes

100 nanometres thick (9-h) and offers blue light filtration, scratch resistance, and is

shatterproof. In addition, it eliminates a pesky feature of conventional screen protectors, air

bubbles. Customers will be attracted to our product if they routinely utilize an electronic

device for long periods of time, which may cause blurred vision, headaches, and eye strain.

Our competitive advantages include a 98% profit margin that is substantially larger

than any competitor in the market and a 2-ml bottle holding enough solution to protect up

to 4 cellular devices. Screen protectors that currently exist in the market with blue light

filtration range from $35-$105 dollars (Person, 2021) and only serve a one-time use. They

also come in a solid glass or plastic form which can be an inconvenience for some customers

to apply for devices of different sizes.

Our product is a good investment due to the market cap potential and considerable

demand it draws within the smartphone market. 210 million people in the United States use

screen protectors (Walker, 2021) on their phones, and the market value for screen
 3

protectors at $49 billion is projected to grow at a CAPG of 10.48% over the next 4 years

(Technavio, 2021). With the recent attention in regards to blue light technology, our product

is ideal for capturing the growing value of both markets.

The focus of Screen Genie is to provide a quality-assured product, backed up by

reliable suppliers in order to provide a precise marketing and operations strategy. Our

marketing strategies consist of online advertisements (such as social media), potential

sponsorships, utilizing penetration pricing, and incorporating new technology. Our product

offers the ability to be used multiple times on different device screens, unlike current

products in the market, making it ideal for families, businesses, and schools.

Our business is located in Miami, Florida, one of the best cities for startups due to

the stable economy, affordable commercial warehouses, and no individual state income tax

(K, 2022). Its geographic location is on the east coast, which is conveniently close to Port

Everglades, creating low transportation costs en route to our warehouse. In addition, its

growing economy makes it a great area to introduce our product to the public.

We plan to outsource and purchase all of our materials in bulk, due to the reduced

prices compared to inflated local costs. Our anticipated savings from outsourcing these

materials will allow us to offer our product at a 50% discount rate compared to the domestic

market, while also matching demand.

Our first-year sales were allocated to start-up costs and initial debt repayment. The

second year marked the beginning of a profitable 4 year run yielding a $1,762,977 return in

net income. At the core of our business, production costs of $0.55/unit allows us to control

a large cash position to protect against financial instability and resolve any debt obligations

obtained early in our company's life. While holding a low debt-to-equity ratio is typically

worrisome for organizations, we firmly believe in the strength of our product and its future

growth prospects in a market where the compounded annual growth rate is projected at

10.48% over the next 4 years.

 4

Exhibit 1: Organizational Chart, title the chart and note the year (year 2). Describe

in a caption changes to staffing each year 2

 5

Exhibit 2: Pay, mandatory deductions, benefits, knowledge, skills, abilities and

motivation table. Use year 2.


Exhibit #3: Market Segmentation and Targeting
Target Size (# of People or
Name Households in Segment)
22.44 Million
https://www.statista.com/s
Target #1 -
tatistics/978479/number-e
Companies
mployees-united-states-ind
ustry/
123.6 million with an
average of 3 members per
family.
https://www.statista.com/s
tatistics/183657/average-siz
e-of-a-family-in-the-us/#:~:t
Target #2 -
ext=As%20of%202021%2C
Families
%20the%20U.S.,from%203.
7%20in%20the%201960s
https://datacommons.org/p
lace/country/USA?utm_me
dium=explore&mprop=cou
nt&popt=Household&hl=en
6% due to the volume
Almost 50 Million students
Target #3 - of schools in the U.S.
in K-12 education system
Schools https://nces.ed.gov/fa
https://nces.ed.gov/fastfact
(K-12) stfacts/display.asp?id=
s/display.asp?id=372
372
Growth Projection Description
targeting
This target market consists of
companies that utilize technology
such as smartphones, tablets,
21.25% growth in EPS
computers, etc. to perform and
over the next 5 years
complete daily tasks, activities,
https://pages.stern.ny
and duties. This is a growing
u.edu/~adamodar/Ne
market, since new companies are
w_Home_Page/datafil
created all the time, and as
e/histgr.html
technology continues to advance,
the more it will be used to help
these businesses be successful.
Families of 3 or more people
within the household are on a
phone plan. They are concerned
about health such as blue light
5% : 40% of U.S. effects with their excessive use of
families are young technology. It is common for
(Duffin, 2022) parents to contact their children,
https://www.statista.c whether it is through text or call,
om/statistics/242074/ to check up on how they're
percentages-of-us-fam doing. In addition, the typical
ily-households-with-c media habit of children would be
hildren-by-type/ to play games on their phones
whenever they're bored or to
have fun. Parents will fall back on
using devices to occupy their
children whenever they're busy.
Schools across the U.S. take
advantage of technological
improvements. Schools would
help protect students eyes while
working on computers and
tablets
6
Priority
level for Justification for Targeting
Employees sit at there desk top
computer for an average of 6.5
hours a day, straining their eyes, and
have regular headaches. As a result,
we wanted to provide our product
2 to offices.
https://studyfinds.org/office-worker
-1700-hours-computer-screen/#:~:t
ext=According%20to%20a%20surve
y%20of,about%206.5%20hours%20
per%20day.
Parents of young children want to
occupy their kids with technology.
With that, they would be interested
in having a a screen protector for
the various devices they use. As
children under 12 have an average
screen time of 4-6 hour, young
parents are typically concerned in
1
managing how long their kids are in
front of a device screens.
https://www.aacap.org/AACAP/Fam
ilies_and_Youth/Facts_for_Families/
FFF-Guide/Children-And-Watching-T
V-054.aspx#:~:text=On%20average%
2C%20children%20ages%208,spend
%20up%20to%209%20hours.
Computer labs and Ipads are
implemented heavily in K-12
education as technnology becomes
a bigger part of our lives. There's
been an increasing trend of teachers
implementing technology and
3
education together with a growth of
90% from 2020-2021. Safer use of
technology time in classes can be
extended with this product.
https://sourcetoad.com/trends/202
2-trends-in-education-technology/
 7

Exhibit 4: Market Quantification

Tot Mkt
Mkt Growth Market Annual Unit Unit Price or Annual $
Year Potential (# Product
Projection** Share*** Sales Weighted ASP Revenue
Customers)*
Year 1 210,405,000 7.46% 0.000032 Screen Genie® 59,700 $20.00 $1,074,600 *9 mo of sales
**All annual revenues are
calculated accordingly: 60% of
Annual Unit Sales are sold
through our website at $20/unit,
the other 40% are sold at our
discounted bulk price to
Year 2 226,101,213 8.00% 0.000035 Screen Genie® 85,968 $20.00 $1,547,424 businesses at$15/unit
Year 3 244,189,310 8.50% 0.000037 Screen Genie® 93,238 $20.00 $1,678,284
Year 4 264,945,401 9.00% 0.000041 Screen Genie® 101,629 $20.00 $1,829,322
Year 5 288,790,488 9.50% 0.000045 Screen Genie® 111,284 $20.00 $2,003,112
* How did you determine your market potential? ⇨ We determined our market potential by retrieving data from our market size and multiplied
it by our unit price. Market potential was estimated based of the research that 75% of smartphone users in the US use screen protectors (280.54
million smartphone users in US*75%=210.405 million for market potential)
https://www.androidauthority.com/screen-protector-smartphone-poll-results-3044965/
** Actual market or market potential. How did you determine the growth projection(s)? ⇨ We determined the growth projection based on
our competitors compounded annual growth rate over the next 4 years. Based of the smartphone screen protector market growing at a CAGR of
10.39% (2022-2026), we came up with justifiable annual growth projections.
https://www.prnewswire.com/news-releases/smartphone-screen-protector-market-to-grow-by-usd-778-91-mn--increased-smartphone-usage-to-dri
ve-growth--technavio-301447099.html
*** How did you determine your market share? ⇨ We took our expected revenue from year 1 (annual unit sales*unit price) and divided it by the
total smartphone screen protector market size value(indicating all competitors revenue).
https://www.grandviewresearch.com/industry-analysis/smartphone-screen-protector-market
**** How did you determine your unit forecast? Indicate key sources and assumptions …show calculations! ⇨ We determined our unit
forecast by researching when screen protector sales spiked such as new phones are released, holidays, and back-to-school season to determine our
busiest months. How many units you're going to sell each month? Annual unit sales are based off of ZAGG Inc.'s (one of the leading screen
protector companies) sales in their second year of operations(2007) off the SEC website. (Form 10-K)
Fcst by month Units Revenue ($)
April 2023 4776 $85,968 59700
*this unit total is derived from the 2022 annual sales (just 9 months of revenue,
May 2023 2985 $53,730 aligned with Start-up schedule)
June 2023 3582 $64,476
July 2023 4776 $85,968
August 2023 8955 $161,190
September 2023 9552 $171,936
October 2023 8955 $161,190
November 2023 7761 $139,698
December 2023 8358 $150,444
January 2024 6877 $123,794 85,968
*this unit total is derived from the 2023 annual sales (just 3 months of weighted
February 2024 8597 $154,742 revenue adjusting for seasonality of phone releases, back-to-school, and holidays)
March 2024 5158 $92,845
 8

Exhibit 5: Positioning/Competitive Analysis

Note: Map may be expanded for

greater clarity as long as total Exhibit
fits on one page

Positioning Statement: Our Screen Genie

product, when compared to competitors, is
more accessible and easier to apply, while
also being a more affordable option. The
products being in liquid form cuts cost on
glass and sizing options, while also making
the application process much easier than our
glass screen competitors. This makes the
product appeal, especially to families,
schools, and businesses looking to protect
their children, students, and employees from
the harmful effects of blue light.

Our company strengths come in the form of

affordability, and applicable and new
technologies in the form of liquid glass that
offers blue light blocking technology. Our
weaknesses come from the fact we are
entering a highly competitive market with
some already well-established companies.
However, many opportunities exist for our
business because we are using a technology
that is very new in liquid glass, while also
adding in blue light blocking technology,
which in this form doesn't exist in the
market, making us a brand new product
(class). Some threats that exist for us
include companies trying to replicate our
product, however, we could patent our
formula so that it would make it extremely
difficult to be copied, especially in a form
that offers blue light-blocking technology.
 9

Exhibit #6: Marketing Mix

Product/Service Branding
Explain briefly your plan to create value through your branding (brand promise, brand name, logo, slogan, etc.) Identify the branding strategies. Within the
market, what stage of the PLC is present? We will create value by branding our product as a family-friendly item used to protect the integrity of people's
eyes. Our branding strategy is a friendly genie, trapped in a phone screen that is covered in ScreenGenie products. Our slogan is “Trapping the blue light
one drop at a time”. The product is still in the growth part of the PLC as technology is still being used more and more in day-to-day life.
Pricing
2022 2023 2024 2025 2026
Unit Variable Cost: $0.55 $0.55 $0.55 $0.55 $0.55
Wholesale Price: $15 $15 $15 $15 $15
Retail Price: $20 $20 $20 $20 $20
The competition in our industry has an average price point of $40. Our conservative price point, backed by our low unit variable costs,
opens up an opportunity to undercut most of our competitors while still generating considerable profits in the process. Variable costs were
calculated by a mixture of prices given by our suppliers, and a price point derived from the number of raw materials used in the production
of each process.
Distribution/Location
Strategy
Product Teams: Describe and defend your distribution strategy; determine the wholesalers/distributors/retailers (online or offline) through
which you would distribute your products. Our distribution strategy is to primarily depend on online commerce both through our own
website and outsourcing to Amazon. We will also engage in discussions with technology retailers such as BestBuy, Wal-Mart, Target, and
other popular phone service providers, to get our product in their stores. We will also deliver directly to businesses, schools, and other
entities that purchase large amounts of products to protect their company-wide technology.
Promotional Strategy (in thousands of $)
2022 2023 2024 2025 2026
Total IMC Budget: $139,698 $201,165 $218,177 $237,812 $260,405
Advertising Exp: $75,222 $108,320 $117,480 $128,053 $140,218
Sales Promo Exp: $64,476 $92,845 $100,697 $109,759 $120,187
PR Exp: 0 0 0 0 0
Other Promo Exp: 0 0 0 0 0
Describe and defend the promotional strategy you will execute with your promotion budget. Include key elements such as: the key theme
or message you intend to communicate; the frequency you seek to achieve with your advertising and promotional tactics; key promo timing
elements; the rationale for your promotional choices, etc.
# of Salespeople: 2 2 2 2 2
$15/hr plus 3%
commission on 20%
Compensation Method: of sales
We are looking to spend 13% total of our gross revenue on Marketing expenses which is split between advertising expenses and sales promotion expenses.
In our first year, we are spending more on advertising and sales promotion in things such as website startup and initial promotions, so we can create
awareness and education around our product but then in the next years, we will spend 7% of that to be used on advertising expenses which are directly
related to our social media posts and other forms of advertising directly to our customers. The other 6% will go towards sales promotion expenses which
will also target customers, in addition to other businesses that use
technology with screens that would look to obtain our product.
 10

Exhibit 7: Process Map

For each major quality step:

Quality Step What is measured? How often? How will you ensure quality?
Q1 amount of each every new batch (45 We will combine an exact percentage of each material
chemical units)
Q2 amount of solution in each unit Measure precisely 2 mL per bottle
each bottle

For each critical resource:

Critical Resource Brief Description Unit Cost (in appropriate unit) How many?
CR1 Mixing Equipment 60 units 1
CR2 Liquid Dispensing Equipment 50 units 1

Briefly describe your main facility - provide information about layout and dimensions.

Our large facility combines the manufacturing and inventory components of our business. It
will consist of one story and the layout of the first floor consists of stations. The first station
will be where our raw materials are processed. The second station will be where the mixing
equipment will be located. The third station consists of the packaging and labeling of the
final product. Once everything is precisely labeled and packaged, the product is distributed
to the back of the warehouse for inventory to be processed for orders. The dimensions of
our facility are 10,000 square feet- 3,000 of which is the inventory section.
 11

Exhibit 8: Quality Assurance

Indicate the Why is this dimension important, given your industry & Identify the Quality Step(s)
Dimensions of target market? on the Process Flowchart /
Quality on Service Blueprint to which
which you will this corresponds.
focus.
Performance To ensure the product works every time and keep our customers Q1
satisfied and continue to purchase this item.

Durability Ensure the product’s life cycle can last up to the warranty, to keep Q1
customers from switching brands.
Special Feature Ensure the product includes the anti-blue light feature, which Q1
separates us from our competition.

Consistency Ensure product chemicals all are the same percentage and the Q2
protection of each device is consistent.

Use the space below to describe any additional Proactive Quality Assurance Plans that are not connected to a
specific activity on your Process Flowchart / Service Blueprint.
Employees would go through a 3 day training period and take periodic quizzes to test and ensure their
understanding of the job content. Work environment will be cleaned daily at the end of shifts to ensure the
work environment stays safe, and the product stays uncontaminated. Workers will also wear gloves and aprons
to keep from coming in direct contact with the product. Maintenance checks will also be run bimonthly to
ensure quality of machinery, standard line workers will carry out this task.
Describe any reactive quality assurance plans. Include a recovery plan should a customer receive poor-quality
goods and/or services.
Externally, if a customer should have a bad experience or purchase a defective product, a full refund or new product will
be issued to the consumer. Internally, if a worker comes in contact with too much of the solution, there will be a wash off
station to maintain the safety of compromised workers.

If you will utilize a quality/process improvement methodology, indicate which:

☐ NA ☐ TQM ☐ Six Sigma ☐ ISO ☐✓ Benchmarking
☐ Other (specify what):
Note: You will not use all of them; only those with highest relevance.
Provide a specific explanation of how your chosen quality methodology relates to your business and how it will
be applied: Since our product’s growth is estimated to grow at a CAGR of 10.49% over the next 5 years, our
company needs to adopt a business process for improving the quality and reducing the costs to benefit profit
margins and product reliability. Improving process effectiveness and efficiency is critical because annual sales
will expand at a fast rate, being able to condense the production process to insure quality in our products could
yield opportunities to expand our product options.
 12

Exhibit 9A: Inventory, Suppliers and Distribution

 13

Exhibit 10: Capacity and Resources

Demand Capacity Utilization Hours of Bottleneck How will you manage

(per hour) (per (%) Operation name and /adjust the bottleneck to
hour) description ensure you can
appropriately serve or
supply your customers?
At the end of Year 1 38 45 84.44% 8 hrs/day Package and add one worker to packaging
Label solution
At the end of Year 2 42 50 84% 8 hrs/day Dispensing NA
Station
At the end of Year 3 45 50 90.00 8 hrs/day Dispensing add 1 dispensing and add 1
Station shipping worker
At the end of Year 4 49 60 81.66% 8 hrs/day Combine Raw NA
Material
At the end of Year 5 54 60 90% 8 hrs/day Combine Raw NA
Material

Show your calculations for the following parameters at the end of Year 1.
Hours of Demand/month Demand/hour Capacity/month Capacity/hour Utilization
operation/month
8 hour workday*5 38 demand/hr*5 38 7,200 capacity/ 45 capacity/ 38 demand/45
days/week*4 days/week*4 demand/hour month hour capacity=
weeks= 160 weeks= 6,080 84.44%
hours/month demand/month

Additional resources (beyond your bottleneck) must be allocated appropriately to support operations. Identify which
resources have a significant impact on capacity at start-up and describe why these are appropriate amounts of
resources at start-up.
The resources that have a significant impact on capacity at start-up are the raw materials and the mixing equipment.

Describe adjustments you will make as resource requirements vary with time. Be specific regarding which key
resources (beyond your bottleneck) will be adjusted, when, and how. If you will make multiple adjustments, explain
each.
We will have to purchase our raw materials two months before opening and store them in our inventory because it takes one
month for our suppliers to deliver our shipment. We will also have to purchase two months' worth of raw materials every other
month when we place orders.

How will you manage seasonality? We will mandate overtime for our lineworker employees (during holiday
months, back-to-school season, and phone releases) which would shift 8 hours of operations per day to 10
hours per day.
 14

Exhibit 11: Income Statement

 15

Exhibit 12: Balance Sheet

 16

Exhibit 13: Cash Flow Statement

 17

Exhibit 14: Financial Statement Notes

Income statement-
● Sales Revenue: (annual sale x 60% x $20) + (annual sales x 40% x $15)
● COGS: 0.55⊄ x annual sales
● salaries + wages: base salaries + line tech (4) + sales associates (40% of sales at 3% commission)
● payroll expense: 7.89% x salaries + wages
● commission expensive: 40% of sales at 3% commission
● general insurance expense: $58 x 12 months
● depreciation expense: 1717 machine, 447 rest equipment (straight) + 399 (patent)
● rent expense:Miami warehouse
● website expense: domain name (50) + maintenance (500)
● Advertising and promotion: ads (7% of revenue) + sales (6% of revenue)
● tax/License expense: 25 + 138.75 (LLC fees)
● supplies expense: cleaning, office decorations, gloves and aprons for workers
● utilities expense: water, electric, internet ($2.12 per square feet x 9600 sq ft)
● credit card expense: 80% of sales x 2% processing fee
● training expense: 250 per employee
● income tax expense: EBT x 5.5%
● interest expense payment for $466,666 debt financing over 5 years at 7% interest
Balance Sheet-
Assets
● Cash- (Annual sales-1 month of credit sales outstanding)+Equity and Debt financing. Then, +
depreciation and amortization, and - (exp on income statement+left over inventory and
supplies+investments made in assets+payments made on long term debt)
● Accounts Receivable-(((Annual sales*.6)20)+((annual sales*.2)15))/12. 60% of sales are on account
through online sales and another 20% are on account to businesses. The final 20% is cash sales and the
formula is divided by 12 because only one month should be outstanding at the end of the year.
● Inventory- Average inventory level on site(9a)* 0.55
● Supplies- Estimate of cleaning and decorations, aprons and gloves for workers.
● Machinery- $25,000 Forklift, $5350 Mixing Vat, $3250 Filling Machine.
● Equipment- Estimate for adding desks, computers, reception desk, couch and other furniture, and a wifi
router.
● Accumulated Depreciation- Depreciated the forklift, mixing vat, and filling machine over a 10 year
average life span. Depreciated equipment over an average of 10 years.
● ScreenGenie patent- Amortized over a 20 year life span with a 10 dollar salvage value.
Liabilities
● Accrued Salaries and Wages- one week of accrued wages owed to part time workers at the end of each
year.
● Payroll Taxes and Benefits- Taxes and Benefits accrued at the end of the year.
● Notes Payable- Borrowed debt from banks representing 2:1 ratio to our equity financing.
● Maturity of LT debt- Principal payments on a $466,666 loan at a 7% int rate over 5 years.
● Common Stock- Equity financing, $233,333 in exchange for a 35% stake in the company.
 18

Exhibit 15: Financial Ratios

 19

Exhibit 16: Financial Analysis

Liquidity Ratio:

ScreenGenie® LLC starts with a current ratio lower than the industry average in the first year but quickly
recovers in year two. From then on, the ratio exceeds each prior year’s and climbs to 3.19. The quick ratio
is also comfortably above the industry average, while not being too far from our internal current ratio.
This proves we do not rely heavily on our inventories to produce future cash flow, and we are incredibly
liquid. Our operating cycle is extremely high in year one but takes a large dip in year two, then slowly
declines towards the industry average in the following years.

Leverage Ratio:

Our debt-to-equity ratio starts much higher than the industry average at 2.15 but then dips below the 1.08
industry average reaching 0.74 by the end of year two. From there it slowly drops to about .1 every year
showing less and less reliance on debt financing compared to the industry average. Our time's interest
earned ratio begins above the industry average and continues to move well over the industry average of
(2.07) over the five years eventually scaling to 158.11 by the end of year 5.

Asset Management Ratio:

Our inventory turnover ratio is well above the industry average due to a low-standing inventory. With a
ratio of 9.82 that ascends to 12.96 by the end of year four and then settles at a respectable 12.88 at the end
of year 5, it shows that our margins are impactful when concerning our rolling annual inventory. The
industry average is a mere 3.6. Our receivables turnover is quite low compared to the 21 point industry
average as ours is 7.5, and slowly climbs to 11.8 over 5 years. This is due to a one-month credit line that
accumulates for 80% of sales. Our fixed asset turnover is close to the industry average in year one before
nearly doubling by year 5. This is due to our incredible return on our low-cost initial investments in the
company.

Profitability Ratio:

The company’s gross profit margin ratio is nearly triple the industry average and holds stable during the
5-year introduction to the market. This ratio speaks for itself, as profit margins for our product are
substantially above competitors. The operating profit margin ratio begins below the industry average but
quickly hikes up to more than 5 times the industry average. This hike is due to a large jump in net income
from year 1 to year 2 and continues to grow in the following years.

DuPont Ratio:

Our net profit margin started negative and below the industry average at (2.11) while the industry sports a
.02 average. However, in the second year, our margin jumped to more than 21, then slowly climbed to
over 32 by the end of year 5. This shows a great return on costs incurred to generate revenue. Over the
five years, our total asset turnover is consistently above the industry average. Similar distribution
channels create asset turnovers that are similar throughout the industry in the long run. Our equity
multiplier at the end of the first year begins above the industry average before steadily declining to 1.44 at
the end of year 5. This illustrates steady growth in retained earnings throughout our first five years. Our
return on equity shows a negative first year after incurring large startup costs. However, the following
years see a fluctuation scaling up to a 0.5 ratio, which is large in comparison to the industry average of
0.21. This proves our ability to generate consistent returns through the equity financing that we received
in our first year of operations.
 20

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 23

Meet the Team - Section 4, Team 9

Hello! My name is Nuha Nagim and I’m a Computer Information Systems major
from Harrisonburg, Virginia. I transferred this semester from Blue Ridge Community
College where I graduated with a specialization in Business Administration. Outside
of class, you can find me spending time with my big family, cooking up a storm, or
even tending to my backyard chickens!

Hi! My name is Jordan Devine and I am from Mahwah, New Jersey. I am a Marketing
Major with a concentration in Digital Marketing and a minor in Communications.
Here at JMU, I am part of multiple organizations. I am the VP of Marketing for The
Professional Sales Club, a Scratch Pad Agency Scribbler for the Scratch Pad Club, and
a member of Alpha Sigma Alpha here on campus. Outside of class, I like to hang out
with my friends and family, go out to eat, and go on walks/runs.

Hello, my name is Sean Landicho. I am originally from Howard County, Maryland but
just recently moved to Ocean City. I am a Marketing major with a concentration in
digital marketing. I hope to use the skills I learn in college and in the workplace to
eventually start my own digital marketing company. At JMU, I am a member of the
Alpha Sigma Phi Fraternity where I help with the recruitment of new members and
philanthropy events. Outside of school, I enjoy working out and studying philosophy.

Hello, my name is Ben Nethery and I am an accounting major from Alexandria,

Virginia. I am currently pursuing a minor in Data Analytics and hope to graduate in 5
years with an MSA in accounting. After college, I hope to work at an accounting firm
in either the tax or audit departments of the firm. At JMU, I am an active brother of
the Alpha Sigma Phi fraternity and also work at O’Charleys as a server to produce
income while I attend school. I also enjoy watching sports and working out with
friends.
Hello! My name is Tina Huynh and I am from Richmond, Virginia. I am currently a
Computer Information Systems major. I currently work at the Department of
Mathematics and Statistics on campus as a student assistant. Outside of class, I like to
explore new cultures and visit historical sites and museums.

Hello, my name is Joseph Merhi and I am a Finance major from Boca Raton, Florida.
At JMU, I am the Treasurer of the Middle Eastern Student Association, and I’m also
involved in the Financial Management Association and DECA. Outside of school, I
like to play football and basketball with friends and hang out with my two younger
brothers.
Hello, my name is Ryan Negola and I am a Marketing major with a concentration in
Digital Marketing from Duncansville, Pennsylvania. At JMU, I am a member of the
Honors College and a former employee at the University Recreation Center. After I
graduate, I hope to pursue an MBA in Marketing and further my education to create
more opportunities for a career I enjoy. Outside of school, I enjoy hanging out with
my friends, golfing, and watching sports.