Professional Documents
Culture Documents
May 2005
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Table of Contents
1.0 Executive Summary.............................................................................................................................1
1.1 Objectives ...................................................................................................................................1
1.2 Mission........................................................................................................................................2
1.3 Keys to Success ........................................................................................................................2
2.0 Company Summary.............................................................................................................................2
2.1 Company Ownership .................................................................................................................2
2.2 Start-up Summary ......................................................................................................................3
3.0 Services................................................................................................................................................4
4.0 Market Analysis Summary..................................................................................................................4
4.1 Market Segmentation ................................................................................................................5
4.2 Target Market Segment Strategy.............................................................................................6
4.3 Service Business Analysis........................................................................................................6
4.3.1 Competition and Buying Patterns .........................................................................................6
5.0 Strategy and Implementation Summary ............................................................................................6
5.1 Competitive Edge ......................................................................................................................7
5.2 Marketing Strategy.....................................................................................................................7
5.3 Sales Strategy............................................................................................................................7
5.3.1 Sales Forecast........................................................................................................................8
6.0 Management Summary.......................................................................................................................9
6.1 Personnel Plan ...........................................................................................................................9
7.0 Financial Plan ....................................................................................................................................11
7.1 Start-up Funding ......................................................................................................................11
7.2 Important Assumptions............................................................................................................12
7.3 Break-even Analysis................................................................................................................13
7.4 Projected Profit and Loss .......................................................................................................14
7.5 Projected Cash Flow ...............................................................................................................17
7.6 Projected Balance Sheet ........................................................................................................19
7.7 Business Ratios .......................................................................................................................20
Page 1
4 Moons Pizzeria
1.0 Executive Summary
The following plan is based on years of experience, is highly foc used and promises to follow a
path of prosperity. It is based on conservative sales figures, and ac tual sales may be higher.
The projec tions contained herein are authentic and will be used as the budget for the business.
4 Moons Pizzeria will show a profit almost immediately, and will increase sales and profits eac h
year thereafter.
1.1 Objectives
The objec tive is to lease a site at 555 West Blue Plum Lane. We will need to remodel the interior
ac cording to the Franchisor's design. We plan to duplicate and massage the successful formula
used by Franchisor. We will use our own personal strategies and skills to create our own success
in our 4 Moons Pizzeria. We plan to train our crew to ensure outstanding results in quality food
and customer service. Our objec tives are as follows.
Page 1
4 Moons Pizzeria
1.2 Mission
4 Moons Pizzeria exists for the purpose of generating sales and profit. Bec ause we are a service
business, we will also exist to serve our customers. These two reasons for our existence are
inextricable. If one aspec t does not exist, the other will cease to exist.
We will always offer a fresh product and welcoming environment
We will remain c heerful, courteous, well trained, and foc used on pleasing our guests
We will strive to bec ome the first destination of choice for those in our neighborhood and
community
Our staff will be offered a workplac e where they can prosper and grow in a dignified, fun, and
rewarding manner
We will give support to and contribute to our community sc hools, churches, groups, and
businesses
Page 2
4 Moons Pizzeria
2.2 Start-up Summary
We hope to take advantage of an existing structure loc ated at 555 West Blue Plum Lane, at
Lakeside Center. It is 2,828 square feet. We will remodel ac cording to the Franchisor's designs to
make our concept both visually and functionally suitable.
Construction is estimated at $214,630 - see attac hed "Franchisor's Construction Cost Sheet" for
item breakdown.*
Start-up cash on hand is estimated for 3 months working capital, inventory, labor and rent.
Short-term assets include phone equipment, smallwares, booths, chairs, tables, pendants,
sc onces, and lighting.
Long-term assets include all kitchen equipment, POS system, and signage.
*Confidential and proprietary information omitted from this sample plan.
Table: Start-up
Start-up
Requirements
Start-up Expenses
Remodel Costs
Proscreen/Wallpaper-Menu Boards
Insurance
Franchise Fee
1st month rent
Drafting/Engineering
City fees/Misc costs
Beer and wine license
Training/travel
Utility start-up costs
Design
Total Start-up Expenses
$214,630
$3,644
$1,500
$25,000
$4,242
$3,000
$2,491
$500
$2,000
$5,000
$4,200
$266,207
Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets
$87,286
$10,000
$41,775
$99,732
$238,793
Total Requirements
$505,000
Page 3
4 Moons Pizzeria
3.0 Services
4 Moons Pizzerias are comfortable and inviting. We are a fast-casual operation with dine in,
take-out, and delivery. The dec or and theme are centered around the cutting edge open kitchen
with brick arches and distinctive lighting. Our energy and atmosphere will appeal to families,
groups, and sc hools.
The real power and energy of the pizzeria will come from the attentive and courteous service
provided by our managers and staff. Our fresh menu will be prepared by our motivated kitchen
team, and carefully orchestrated to provide the best service to our customers who are our
priority. We will have at least one manager on duty at all times.
Our hours are Sunday thru Thursday 11 am. to 10 pm. Friday and Saturday 11 am. to 11 pm.
Take out available during store hours. Delivery hours are 4 pm to closing everyday we are open.
We will offer delivery all day on Saturday and Sunday and some holidays.
Page 4
4 Moons Pizzeria
4.1 Market Segmentation
4 Moons target market is a three mile radius of site loc ation. Within the three mile operating
radius is a population of 121,705. The total number of households in this area is 48,839 with an
average income of $58,197.
This area is densely populated, and a desirable part of town in which to live. It is an underserved portion of town, espec ially to the west up to the Caughlin Ranch area. It is on one of the
most traveled corridors in Ohno, Blue Plum Lane. Located near two of Ohno's most popular malls,
Parklane and Shopper's Square.
Our target market includes adults 20 to 54 years old who socialize and have families. Children are
a big part of our market, at a third of the population is this area. Ages 4 to 19 prefer pizza over
any fast food and often influence family dining dec isions. Ac cording to one study, 93% of the
U.S. population eats pizza. If we sold one pizza per month with an average of $17.00 per
household, we would generate $721,141 in one month. This illustrates that with effec tive
marketing, superior product, and proper management we will reach and exceed our projec ted
sales goals.
In this area we have some of the best sc hools. 4 Moons Pizzerias provides support for loc al area
sc hool groups and sports teams, as well as loc al church groups. We will be involved through
providing sponsorships, disc ounts, and donations.
Growth
4%
4%
3%
3.87%
2006
30,426
61,583
26,775
118,784
2007
31,643
64,046
27,685
123,374
2008
32,909
66,608
28,626
128,143
2009
34,225
69,272
29,599
133,096
35,594
72,043
30,605
138,242
CAGR
4.00%
4.00%
3.40%
3.87%
Page 5
4 Moons Pizzeria
4.2 Target Market Segment Strategy
We haven't ruled any one group or class out in our target market area. Just about everyone eats
pizza. Most residents in this area have busy sc hedules, and find value in exceptional and timely
service, as well as mouth watering, delightful food. We believe most everyone will apprec iate our
value based menu and family atmosphere. We have a strong c ommitment to community
involvement including sponsorship for sc hool/group teams.
We strongly believe we will overcome any competition in our area. The loc al competition includes
Sticky Paws Pizza, Damynos, Gridlow's Pizza, Hoopla Take-and-Bake, Clodhopper's, and Little
Sayzar. Most of these are at least two miles from our loc ation and are no competition to our
concepts, ideals, fresh products, and welcoming service.
Page 6
4 Moons Pizzeria
5.1 Competitive Edge
Clearly our competitive edge will be our customer service experience and management approach.
Our smiling, unassuming, and good natured approach to all of our customers will be evident, and
highly apprec iated.
We will constantly monitor our product to ensure quality food and beverage at all times. Our
rec ipes are delicious, made fresh daily, and our toppings go all the way to the edge of the pizza
crust.
Page 7
4 Moons Pizzeria
5.3.1 Sales Forecast
We are forec asting sales of approximately $677,000 in our first fisc al year (May 2005 to April
2006) with an opening date of mid-May 2005. We foresee sales increasing at .5% monthly, an
overall yearly rate of 6% per year. Our forec ast is conservative and is based on an average of
$17.00 average per order.
We are convinced that our business will increase with time. We have a strong management team
who will be on property daily to monitor daily operations. We will constantly watch food quality,
customer service, and costs.
FY 2007
FY 2008
Sales
Total Restaurant Sales
Other
Total Sales
$677,297
$0
$677,297
$717,935
$0
$717,935
$761,011
$0
$761,011
FY 2006
$135,461
$0
$135,461
FY 2007
$143,590
$0
$143,590
FY 2008
$152,206
$0
$152,206
Page 8
4 Moons Pizzeria
Page 9
4 Moons Pizzeria
Table: Personnel
Personnel Plan
Wages
Other
Total People
FY 2006
$126,738
$0
14
FY 2007
$129,228
$0
14
FY 2008
$136,982
$0
14
Total Payroll
$126,738
$129,228
$136,982
Page 10
4 Moons Pizzeria
7.0 Financial Plan
Our main c oncerns will be aggressive time management to keep labor costs under control. Proper
purchasing, food preparation and handling, and control of cheese consumption to keep food
costs down. Growth will be sustained through increased sales.
$266,207
$238,793
$505,000
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$151,507
$87,286
$0
$87,286
$238,793
$0
$345,000
$0
$0
$345,000
Capital
Planned Investment
Solutrian, Steve and Diane
Mittani, Rikard and Carol
Additional Investment Requirement
Total Planned Investment
$75,000
$75,000
$10,000
$160,000
($266,207)
($106,207)
$238,793
Total Funding
$505,000
Page 11
4 Moons Pizzeria
7.2 Important Assumptions
We are projec ting profit based on the performance of other franchises and our own judgement
based on the following:
We assume by using marketing strategies, sales strategies, good customer relationships,
fresh food, and good management prac tices, we will succeed.
In order to meet the sales goal in the first year, open for at least 360 days, we would have
to sell 111 checks each day with a $17 per check average.
Our sales each day should reach an minimum average of $1,881.43.
Our forec ast is based on an average. Some months will increase and others dec rease. We do
not predict any major dec reases in sales, as Ohno area restaurants are busy all year round.
FY 2007
2
0.00%
7.00%
30.00%
0
FY 2008
3
0.00%
7.00%
30.00%
0
0.00%
7.00%
30.00%
0
Page 12
4 Moons Pizzeria
7.3 Break-even Analysis
Break-even based on fixed costs including rent, insurance, maintenance, investor note, and preopening amortization. Additionally, controllables such as service labor, kitchen labor,
management labor, excess rent, advertising, royalty, and legal/professional fees are included.
$22,254
Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost
20%
$17,804
Page 13
4 Moons Pizzeria
7.4 Projected Profit and Loss
As the Profit and Loss table shows, the company expec ts to continue its steady growth in
profitability over the next three years. We predicted a conservative 6% per year increase in
sales.
The first month may have higher payroll due to employee training and restaurant set up.
Our operating expenses include rent at $4,242 estimate per month, royalty fees of 5% of gross
sales, equipment rental and repair, utilities projec ted at 11% of gross sales, administrative
charges including PC charges, cleaning supplies, payroll charges, and office supplies.
Marketing fees are 4% of gross sales per month.
Page 14
4 Moons Pizzeria
Page 15
4 Moons Pizzeria
FY 2006
$677,297
$135,461
$0
$135,461
FY 2007
$717,935
$143,590
$0
$143,590
FY 2008
$761,011
$152,206
$0
$152,206
Gross Margin
Gross Margin %
$541,836
80.00%
$574,345
80.00%
$608,805
80.00%
Expenses
Payroll
Marketing/Promotion
Depreciation
Rent
Royalty fees
Equip rent/repair
Utilities
Admin charges
$126,738
$0
$30,000
$50,904
$0
$3,000
$0
$3,000
$129,228
$0
$30,000
$50,904
$0
$5,400
$0
$3,000
$136,982
$0
$30,000
$52,431
$0
$5,400
$0
$3,000
$213,642
$218,532
$227,813
$328,194
$358,194
$23,367
$91,448
$355,813
$385,813
$21,648
$100,249
$380,992
$410,992
$19,738
$108,376
Net Profit
Net Profit/Sales
$213,378
31.50%
$233,915
32.58%
$252,878
33.23%
Page 16
4 Moons Pizzeria
7.5 Projected Cash Flow
The cash flow depends on assumptions for good daily operational management, good traffic
counts in the restaurant, inventory turnover, payment days, and ac counts rec eivable
management. We do not predict any new financing until we open our second franchise.
Principal amounts are based on a loan of $345,000 with a 10 year SBA Loan at 7% interest.
FY 2007
FY 2008
$677,297
$677,297
$717,935
$717,935
$761,011
$761,011
$0
$0
$0
$0
$0
$0
$0
$677,297
$0
$0
$0
$0
$0
$0
$0
$717,935
$0
$0
$0
$0
$0
$0
$0
$761,011
FY 2006
FY 2007
FY 2008
$126,738
$276,887
$403,625
$129,228
$324,767
$453,995
$136,982
$340,189
$477,171
$0
$0
$0
$22,576
$0
$0
$0
$426,201
$0
$0
$0
$26,332
$0
$0
$0
$480,327
$0
$0
$0
$28,237
$0
$0
$0
$505,408
$251,096
$338,382
$237,608
$575,990
$255,603
$831,592
Cash Received
Expenditures
Page 17
4 Moons Pizzeria
Page 18
4 Moons Pizzeria
7.6 Projected Balance Sheet
The balance sheet is quite solid. We do not projec t any real trouble meeting our debt
obligations--as long as we can ac hieve our specific sales objec tives.
FY 2007
FY 2008
Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
$338,382
$6,044
$41,775
$386,201
$575,990
$6,407
$41,775
$624,171
$831,592
$6,791
$41,775
$880,159
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
$99,732
$30,000
$69,732
$455,933
$99,732
$60,000
$39,732
$663,903
$99,732
$90,000
$9,732
$889,891
FY 2006
FY 2007
FY 2008
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$26,338
$0
$0
$26,338
$26,725
$0
$0
$26,725
$28,071
$0
$0
$28,071
Long-term Liabilities
$322,424
$296,092
$267,855
Total Liabilities
$348,762
$322,817
$295,926
$160,000
($266,207)
$213,378
$107,171
$455,933
$160,000
($52,829)
$233,915
$341,086
$663,903
$160,000
$181,086
$252,878
$593,964
$889,891
$107,171
$341,086
$593,964
Assets
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
Page 19
4 Moons Pizzeria
7.7 Business Ratios
The company's projec ted business ratios are provided in the following table. The final column,
Industry Profile, shows ratios for the "Pizza Restaurant Industry", as determined by the Standard
Industry Classification 5812.0600 with annual sales of $500,000 to $999,000.
Page 20
4 Moons Pizzeria
Table: Ratios
Ratio Analysis
Sales Growth
FY 2006
0.00%
FY 2007
6.00%
FY 2008
6.00%
Industry Profile
5.24%
1.33%
9.16%
84.71%
15.29%
100.00%
0.97%
6.29%
94.02%
5.98%
100.00%
0.76%
4.69%
98.91%
1.09%
100.00%
4.34%
35.11%
43.74%
56.26%
100.00%
5.78%
70.72%
76.49%
23.51%
4.03%
44.60%
48.62%
51.38%
3.15%
30.10%
33.25%
66.75%
18.93%
25.48%
44.41%
55.59%
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
100.00%
80.00%
48.50%
4.43%
48.46%
100.00%
80.00%
47.42%
0.00%
49.56%
100.00%
80.00%
46.77%
0.00%
50.06%
100.00%
61.91%
39.08%
2.55%
1.38%
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
14.66
14.43
76.49%
284.43%
66.86%
23.36
23.12
48.62%
97.97%
50.33%
31.35
31.11
33.25%
60.82%
40.60%
1.14
0.79
49.97%
3.97%
7.93%
Additional Ratios
FY 2006
FY 2007
FY 2008
31.50%
199.10%
32.58%
68.58%
33.23%
42.57%
n.a
n.a
23.52
11.51
27
1.49
23.07
12.17
30
1.08
23.07
12.17
29
0.86
n.a
n.a
n.a
n.a
3.25
0.08
0.95
0.08
0.50
0.09
n.a
n.a
$359,863
14.04
$597,446
16.44
$852,087
19.30
n.a
n.a
0.67
6%
14.43
6.32
0.00
0.92
4%
23.12
2.10
0.00
1.17
3%
31.11
1.28
0.00
n.a
n.a
n.a
n.a
n.a
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
Activity Ratios
Inventory Turnover
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout
Page 21
Appendix
Table: Sales Forecast
Sales Forecast
Sales
Total Restaurant Sales
Other
Total Sales
Direct Cost of Sales
Cost of Sales
Other
Subtotal Direct Cost of Sales
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
0%
$28,750
$57,500
$57,788
$58,076
$58,366
$58,658
$58,952
$59,246
$59,542
$59,840
$60,139
$60,440
0%
$0
$28,750
$0
$57,500
$0
$57,788
$0
$58,076
$0
$58,366
$0
$58,658
$0
$58,952
$0
$59,246
$0
$59,542
$0
$59,840
$0
$60,139
$0
$60,440
May
$5,750
$0
$5,750
Jun
$11,500
$0
$11,500
Jul
$11,557
$0
$11,557
Aug
$11,616
$0
$11,616
Sep
$11,673
$0
$11,673
Oct
$11,732
$0
$11,732
Nov
$11,791
$0
$11,791
Dec
$11,849
$0
$11,849
Jan
$11,909
$0
$11,909
Feb
$11,968
$0
$11,968
Mar
$12,028
$0
$12,028
Apr
$12,088
$0
$12,088
Page 1
Appendix
Table: Personnel
Personnel Plan
May
$10,000
$0
Jun
$10,350
$0
Jul
$10,402
$0
Aug
$10,454
$0
Sep
$10,506
$0
Oct
$10,558
$0
Nov
$10,611
$0
Dec
$10,664
$0
Jan
$10,718
$0
Feb
$10,771
$0
Mar
$10,825
$0
Apr
$10,879
$0
Total People
14
14
14
14
14
14
14
14
14
14
14
14
Total Payroll
$10,000
$10,350
$10,402
$10,454
$10,506
$10,558
$10,611
$10,664
$10,718
$10,771
$10,825
$10,879
Wages
Other
18%
0%
Page 2
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Sales
Direct Cost of Sales
May
$28,750
$5,750
Jun
$57,500
$11,500
Jul
$57,788
$11,557
Aug
$58,076
$11,616
Sep
$58,366
$11,673
Oct
$58,658
$11,732
Nov
$58,952
$11,791
Dec
$59,246
$11,849
Jan
$59,542
$11,909
Feb
$59,840
$11,968
Mar
$60,139
$12,028
Apr
$60,440
$12,088
$0
$5,750
$0
$11,500
$0
$11,557
$0
$11,616
$0
$11,673
$0
$11,732
$0
$11,791
$0
$11,849
$0
$11,909
$0
$11,968
$0
$12,028
$0
$12,088
$23,000
80.00%
$46,000
80.00%
$46,231
80.00%
$46,460
80.00%
$46,693
80.00%
$46,926
80.00%
$47,161
80.00%
$47,397
80.00%
$47,633
80.00%
$47,872
80.00%
$48,111
80.00%
$48,352
80.00%
Gross Margin
Gross Margin %
Expenses
Payroll
$10,000
$10,350
$10,402
$10,454
$10,506
$10,558
$10,611
$10,664
$10,718
$10,771
$10,825
$10,879
Marketing/Promotion
Depreciation
Rent
4%
$0
$2,500
$4,242
$0
$2,500
$4,242
$0
$2,500
$4,242
$0
$2,500
$4,242
$0
$2,500
$4,242
$0
$2,500
$4,242
$0
$2,500
$4,242
$0
$2,500
$4,242
$0
$2,500
$4,242
$0
$2,500
$4,242
$0
$2,500
$4,242
$0
$2,500
$4,242
Royalty fees
Equip rent/repair
Utilities
5%
$0
$250
$0
$0
$250
$0
$0
$250
$0
$0
$250
$0
$0
$250
$0
$0
$250
$0
$0
$250
$0
$0
$250
$0
$0
$250
$0
$0
$250
$0
$0
$250
$0
$0
$250
$0
$250
$250
$250
$250
$250
$250
$250
$250
$250
$250
$250
$250
$17,242
$17,592
$17,644
$17,696
$17,748
$17,800
$17,853
$17,906
$17,960
$18,013
$18,067
$18,121
$5,758
$8,258
$28,408
$30,908
$28,587
$31,087
$28,764
$31,264
$28,945
$31,445
$29,126
$31,626
$29,308
$31,808
$29,491
$31,991
$29,673
$32,173
$29,859
$32,359
$30,044
$32,544
$30,231
$32,731
$2,013
$1,124
$2,001
$7,922
$1,989
$7,979
$1,977
$8,036
$1,966
$8,094
$1,954
$8,152
$1,942
$8,210
$1,930
$8,268
$1,918
$8,327
$1,905
$8,386
$1,893
$8,445
$1,881
$8,505
$2,622
9.12%
$18,485
32.15%
$18,619
32.22%
$18,751
32.29%
$18,886
32.36%
$19,020
32.43%
$19,156
32.49%
$19,293
32.56%
$19,429
32.63%
$19,567
32.70%
$19,706
32.77%
$19,845
32.83%
Admin charges
Total Operating Expenses
Profit Before Interest and Taxes
EBITDA
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales
11%
Page 3
Appendix
Table: Cash Flow
Pro Forma Cash Flow
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
$28,750
$28,750
$57,500
$57,500
$57,788
$57,788
$58,076
$58,076
$58,366
$58,366
$58,658
$58,658
$58,952
$58,952
$59,246
$59,246
$59,542
$59,542
$59,840
$59,840
$60,139
$60,139
$60,440
$60,440
Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
$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
$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
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$28,750
$57,500
$57,788
$58,076
$58,366
$58,658
$58,952
$59,246
$59,542
$59,840
$60,139
$60,440
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
$10,000
$10,350
$10,402
$10,454
$10,506
$10,558
$10,611
$10,664
$10,718
$10,771
$10,825
$10,879
$263
$8,538
$27,619
$26,300
$26,404
$26,506
$26,612
$26,717
$26,822
$26,929
$27,034
$27,142
$10,263
$18,888
$38,021
$36,753
$36,910
$37,065
$37,224
$37,382
$37,539
$37,700
$37,860
$38,021
$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
$1,993
$0
$0
$2,005
$0
$0
$2,017
$0
$0
$2,028
$0
$0
$2,040
$0
$0
$2,052
$0
$0
$2,064
$0
$0
$2,076
$0
$0
$2,088
$0
$0
$2,100
$0
$0
$2,113
$0
$0
$0
$10,263
$0
$0
$20,881
$0
$0
$40,026
$0
$0
$38,770
$0
$0
$38,938
$0
$0
$39,105
$0
$0
$39,276
$0
$0
$39,446
$0
$0
$39,615
$0
$0
$39,788
$0
$0
$39,960
$0
$0
$40,134
$18,487
$105,773
$36,619
$142,393
$17,762
$160,154
$19,306
$179,460
$19,428
$198,888
$19,553
$218,441
$19,676
$238,117
$19,800
$257,918
$19,927
$277,845
$20,052
$297,897
$20,179
$318,076
$20,306
$338,382
0.00%
Page 4
Appendix
Table: Balance Sheet
Pro Forma Balance Sheet
Assets
Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
$87,286
$10,000
$105,773
$4,250
$142,393
$5,750
$160,154
$5,779
$179,460
$5,808
$198,888
$5,837
$218,441
$5,866
$238,117
$5,896
$257,918
$5,925
$277,845
$5,955
$297,897
$5,984
$318,076
$6,014
$338,382
$6,044
$41,775
$139,061
$41,775
$151,798
$41,775
$189,918
$41,775
$207,708
$41,775
$227,043
$41,775
$246,499
$41,775
$266,082
$41,775
$285,788
$41,775
$305,617
$41,775
$325,574
$41,775
$345,656
$41,775
$365,865
$41,775
$386,201
$99,732
$0
$99,732
$2,500
$99,732
$5,000
$99,732
$7,500
$99,732
$10,000
$99,732
$12,500
$99,732
$15,000
$99,732
$17,500
$99,732
$20,000
$99,732
$22,500
$99,732
$25,000
$99,732
$27,500
$99,732
$30,000
$99,732
$238,793
$97,232
$249,030
$94,732
$284,650
$92,232
$299,940
$89,732
$316,775
$87,232
$333,731
$84,732
$350,814
$82,232
$368,020
$79,732
$385,349
$77,232
$402,806
$74,732
$420,388
$72,232
$438,097
$69,732
$455,933
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
Starting Balances
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
$0
$0
$0
$7,616
$0
$0
$26,743
$0
$0
$25,420
$0
$0
$25,521
$0
$0
$25,620
$0
$0
$25,722
$0
$0
$25,824
$0
$0
$25,924
$0
$0
$26,028
$0
$0
$26,130
$0
$0
$26,234
$0
$0
$26,338
$0
$0
$0
$7,616
$26,743
$25,420
$25,521
$25,620
$25,722
$25,824
$25,924
$26,028
$26,130
$26,234
$26,338
Long-term Liabilities
$345,000
$345,000
$343,007
$341,002
$338,985
$336,957
$334,917
$332,865
$330,801
$328,725
$326,637
$324,537
$322,424
Total Liabilities
$345,000
$352,616
$369,750
$366,422
$364,506
$362,577
$360,639
$358,689
$356,725
$354,753
$352,767
$350,771
$348,762
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
$160,000
$160,000
$160,000
$160,000
$160,000
$160,000
$160,000
$160,000
$160,000
$160,000
$160,000
$160,000
$160,000
($266,207)
$0
($106,207)
($266,207)
$2,622
($103,585)
($266,207)
$21,107
($85,100)
($266,207)
$39,725
($66,482)
($266,207)
$58,476
($47,731)
($266,207)
$77,362
($28,845)
($266,207)
$96,382
($9,825)
($266,207)
$115,538
$9,331
($266,207)
$134,831
$28,624
($266,207)
$154,260
$48,053
($266,207)
$173,828
$67,621
($266,207)
$193,533
$87,326
($266,207)
$213,378
$107,171
$238,793
$249,030
$284,650
$299,940
$316,775
$333,731
$350,814
$368,020
$385,349
$402,806
$420,388
$438,097
$455,933
($106,207)
($103,585)
($85,100)
($66,482)
($47,731)
($28,845)
($9,825)
$9,331
$28,624
$48,053
$67,621
$87,326
$107,171
Page 5
Appendix
Table: General Assumptions
General Assumptions
May
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other
Tax Rate
Jun
2
Jul
3
Aug
4
Sep
5
Oct
6
Nov
7
Dec
8
Jan
9
Feb
10
Mar
11
Apr
12
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
7.00%
30.00%
0
7.00%
30.00%
0
7.00%
30.00%
0
7.00%
30.00%
0
7.00%
30.00%
0
7.00%
30.00%
0
7.00%
30.00%
0
7.00%
30.00%
0
7.00%
30.00%
0
7.00%
30.00%
0
7.00%
30.00%
0
7.00%
30.00%
0
Page 6