Dream Dinners

Balance Sheet

30 - 11 - 2008
Assets

Cash $ 34,970
Other Current Assets 3,907
Total Current Assets 38,877

Fixed Assets
Leasehold improvements 126,877
Furniture and Equipment 63,076
Accumulated Depreciation (20,040)
Total Long-Term Assets 169,913

Other Assets
Intangible Assets 45,140
Accumulated Amortization (6,995)
Total Other Assets 38,145

Total Assets $ 246,935

Liabilities
Accounts Payable $ 39,096
SBA Loan 243,371
Total Liabilities 282,467

Equity
Paid in Capital 80,000
Retained Earnings (115,532)
Total Equity (35,532)
Total Liabilities and Equity $ 246,935
 Jan 08 Feb 08 Mar 08 Apr 08 May 08

Total Revenue $ 10,878 $ 15,711 $ 9,619 $ 16,096 $ 13,974

Operating Costs
COGS - Containers 166.59 - 56.93 182.70 74.58
COGS - Food 6,254.79 3,993.11 3,425.91 7,734.59 6,774.55
Royalty Fee 621.05 0.00 896.47 662.12 808.17
Payroll - Direct Labor 1,976.83 1,111.86 1,862.74 1,881.57 1,219.40
Temporary Labor 70.00 - 411.72 383.50 92.50
Marketing Fee 1,800.00 1,800.00 1,800.00 1,800.00 1,800.00
General Liability Insurance 581.32 581.32 581.32 581.32 581.32
Rent Expense 4,828.89 4,828.89 4,828.89 4,828.89 4,828.89
Repairs and Maintenance - - - - -
Advertising 350.85 436.49 7.88 94.22 -
Bank Charges 258.41 285.60 404.72 297.44 438.93
Internet/Software/Subscriptions 81.75 - - - -
Interest/Finance Charges - - 22.41 28.16 38.68
Miscellaneous Expense 64.58 593.14 4,383.19 598.26 430.96
Office Supplies 118.22 (26.74) 21.19 - -
Postage and Delivery - 26.00 16.81 4.80 42.00
Supplies 29.98 23.81 - 93.94 34.94
Taxes - Property - - - 300.00 -
Travel & Ent 32.41 - - 26.26 757.00
Utilities 721.78 695.75 762.45 742.27 871.53
Depreciation and Amortization 2,053.00 2,053.00 2,053.00 2,053.00 2,053.00
Total Operating Costs 20,010.45 16,402.23 21,535.63 22,293.04 20,846.45

Operating Profit (Loss) $ (9,132) $ (691) $ (11,916) $ (6,197) $ (6,873)

 Jun 08 Jul 08 Aug 08 Sep 08 Oct 08 Nov 08

$ 12,682 $ 14,746 $ 22,400 $ 19,946 $ 20,467 $ 17,442 189,777.58 $ 173,963

-
-
-
65.51 - - - - - 595.97 $ 546
6,076.93 3,395.21 6,460.50 12,511.31 376.98 419.98 62,644.21 $ 57,424
838.09 715.57 703.25 1,259.50 0.00 1,040.34 8,230.43 $ 7,545
1,682.77 2,077.20 1,343.73 2,393.24 2,082.59 1,377.88 20,737.97 $ 19,010
137.50 32.50 26.00 489.50 510.00 45.00 2,398.06 $ 2,198
1,800.00 1,800.00 1,800.00 1,800.00 1,800.00 1,800.00 21,600.00 $ 19,800
2,879.32 581.32 581.32 581.32 581.32 581.32 9,482.75 $ 8,693
4,828.89 4,828.89 4,828.89 4,828.89 4,828.89 4,828.89 57,946.68 $ 53,118
- - - - 1,179.83 16.38 1,304.96 $ 1,196
39.67 - 29.62 88.35 15.85 - 1,159.56 $ 1,063
457.47 403.15 446.90 551.44 487.90 493.76 4,937.15 $ 4,526
- 239.00 - - - - 349.91 $ 321
60.13 71.18 82.42 293.06 379.49 363.94 1,461.24 $ 1,339
279.42 3,150.14 954.08 29.61 30.60 220.42 11,710.25 $ 10,734
4.23 - - 5.28 - - 133.29 $ 122
- - - - 42.00 - 143.57 $ 132
- - - - 12.70 - 213.13 $ 195
- - - - - - 327.27 $ 300
- - - - - - 889.82 $ 816
136.89 - 1,219.23 1,204.66 142.58 - 7,087.79 $ 6,497
2,053.00 2,053.00 2,053.00 2,053.00 2,053.00 2,053.00 24,636.00 $ 22,583
21,339.82 19,347.16 20,528.94 28,089.16 14,523.73 13,240.91 237,990.02 $ 218,158
- $ -
$ (8,658) $ (4,601) $ 1,871 $ (8,143) $ 5,944 $ 4,201 (48,212.44) $ (44,195)
 $ 160,187 SG&A

FIXED $ 138,979
VARIABLE $ 79,178
No-SGA $ 79,178 86,376.22
218158
SG&a $ 138,980

COGS 63,240.19
SG&A 151,613.80
variable 95,870.09
fixed 142,119.93
 Exhibit I
Income and Expense Forecast Proforma
Dream Dinners Proforma Statement

Number of customers per month 187

Sales Per Customer $ 178
Cost of Goods Sold Per Customer $ 80

Gross Sales $ 399,432

Cost of Goods 179,520
Gross Profit 219,912

Labor - Direct expense of running sessions ($12 hourly) 40,000

Repairs and Maintenance 1,200
Supplies - Paper 2,400
Supplies - Cleaning 2,800
Electric/Water 6,000
Bank Fees 900
Credit Card Discounts 12,000
Insurance 2,000
Licenses 200
Office Supplies 2,400
Professional Fees 2,000
Taxes - B&O 2,000
Taxes - Payroll (May vary from state to state) 9,000
Telephone 2,700
Royalty (6% of Revenues) 23,966
Marketing - 2% or $800 minimum 9,600
Rent 14,400
CAM - Common Area Maintenance 3,600
Laundry - Optional 2,400
Depreciation 22,583
Media - Optional Additional Advertising 5,000
Total Expenses 167,149

Store Level Operating Profit $ 52,763

taxes 18,467
After-tax operating profit 34,296
Add back depreciation 22,583
FCFF 56,879
Terminal value
NPV

WAAC Equity
Debt

WAAC
cast Proforma
a Statement

234 281 328

$ 499,824 $ 600,216 $ 700,608

224,640 269,760 314,880
275,184 330,456 385,728

50,000 60,000 70,000

1,200 1,200 1,200
2,600 2,800 3,000
2,900 3,000 3,100
6,000 6,000 6,000
1,100 1,300 1,500
15,000 18,000 21,000
2,500 3,000 3,500
200 200 200
3,200 4,000 4,800
2,000 3,000 3,000
2,400 2,800 3,500
12,000 14,000 16,000
2,900 3,200 3,500
29,989 36,013 42,036
9,996 12,004 14,012
14,400 14,400 14,400
3,600 3,600 3,600
2,400 2,400 2,400
22,583 22,583 22,583
5,000 5,000 5,000
191,969 218,500 244,332 $ -

$ 83,215 $ 111,956 $ 141,396

29,125 39,185 49,489
54,090 72,771 91,908
22,583 22,583 22,583
76,673 95,354 114,491
686,943.80
Amt Propot. Cost
80000 0.24 20%
253000 0.76 6.50%
333000

8.01%
Sales $ 189,777.58 Sales $ 189,777.58
COGS 63,240.19 Variable Expenses 95,870.09
Gross Profit 126,537.39 Contribution margin 93,907.48
SG&A 151,613.00 Fixed Expenses 142,119.93
EBIT $ (25,075.61) EBIT $ (48,212.44)

Variable expenses % of Sales 50.52%

Contribution Margin Ratio 49.48%

Breakeven point $ 287,210.08

 BEP
$ 287,210.08
145,090.15
142,119.93
142,119.93
$ -
 Year 1 Year 2 Year 3

Revenue 399432 499824 600216

Cost of Goods Sold 179,520 224,640 269,760

Gross Margin 219,912 275,184 330,456

Operating Expenses 144565.9 169385.9 195917.3

Net Cash Flow

Year 4

700608

314,880

385,728

221748.6
Comparison of Ex-1 with Ex-2 & talk about Dream Dinners Performance BEP
Critical expenses Pro forma statement leave out MC CF/CB/ST
Calculate BEP (is it reasonable to expect this level of sales)
From EX-1 prepare discounted cash flow analysis (NPV)
MC

BEP