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Table of Contents
1.0 Executive Summary.............................................................................................................................1
1.1 Objectives ...................................................................................................................................1
1.2 Mission........................................................................................................................................1
Chart: Highlights ......................................................................................................................2
2.0 Company Summary.............................................................................................................................2
2.1 Company Ownership .................................................................................................................2
2.2 Company History........................................................................................................................3
Table: Past Performance .......................................................................................................4
Chart: Past Performance .......................................................................................................5
2.3 Company Locations and Facilities ..........................................................................................5
3.0 Products ...............................................................................................................................................5
4.0 Market Analysis Summary..................................................................................................................5
4.1 Market Segmentation ................................................................................................................6
Table: Market Analysis ...........................................................................................................6
Chart: Market Analysis (Pie) ..................................................................................................6
5.0 Strategy and Implementation Summary ............................................................................................7
5.1 Marketing Strategy.....................................................................................................................7
5.2 Sales Strategy............................................................................................................................7
5.2.1 Sales Forecast ..............................................................................................................7
Table: Sales Forecast ...................................................................................................7
Chart: Sales Monthly......................................................................................................8
Chart: Sales by Year......................................................................................................8
6.0 Management Summary.......................................................................................................................8
6.1 Personnel Plan ...........................................................................................................................9
Table: Personnel .....................................................................................................................9
7.0 Financial Plan ....................................................................................................................................10
7.1 Break-even Analysis................................................................................................................10
Chart: Break-even Analysis .................................................................................................10
Table: Break-even Analysis .................................................................................................10
7.2 Projected Profit and Loss .......................................................................................................11
Table: Profit and Loss ..........................................................................................................11
Chart: Profit Monthly .............................................................................................................12
Chart: Profit Yearly................................................................................................................12
7.3 Projected Cash Flow...............................................................................................................12
Table: Cash Flow..................................................................................................................13
Chart: Cash ...........................................................................................................................14
7.4 Projected Balance Sheet ........................................................................................................14
Table: Balance Sheet ...........................................................................................................15
7.5 Business Ratios .......................................................................................................................15
Table: Ratios .........................................................................................................................16
Table: Sales Forecast ...............................................................................................................................1
Table: Personnel ........................................................................................................................................2
Table: General Assumptions ....................................................................................................................3
Table: Profit and Loss ...............................................................................................................................4
Table: Cash Flow .......................................................................................................................................5
Table: Balance Sheet ................................................................................................................................6
Page 1

Oasis Juice
1.0 Executive Summary
Oasis Juice has been a successful product brand in the city of Richmond for three years. The
company's natural, 100% fruit juices has grown in sales by 15% eac h year and is now available
in over 100 store outlets in the greater Richmond area. Oasis Juice will gross $580,000 in sales
this year. This was generated from a initial investment of $180,000.
Oasis Juice is planning to expand its operation to include distribution to stores within the entire
state. Owner funding and internally generated cash flow will enable most the expansion plan.
The company will also secure a $100,000 short-term loan. Sales projections for the next three
years are based on current sales success with the target customer base in Richmond. Initial
contac ts have been c ompleted with retail outlets throughout the state and the potential
target markets have been identified.
This plan will result in sales revenues growing to $1.2 million by Year 2.

1.1 Objectives
The objectives of Oasis Juice are the following:

Create a state-wide sales staff.

Establish strong sales in the state's five metro areas by Year 2.
Maintain tight control of cost and operation during expansion.

1.2 Mission
Oasis Juice's mission is as follows:

Quality: Our fruit juices are the highest quality, most nutritious food products...
bec ause we will ac cept nothing less.

Innovative: Our products have always been in the forefront of the health and nutrition
wave. Innovative products, state of the art manufacturing, quality assurance and
industry expertise are the bases for our past and future successes.

Integrity: Our customers depend on the quality of our juice products. Our commitment
to the highest standard is the foundation of our customer's trust in Oasis Juice. Delivering
freshly made juice to consumers depends on extensive cooperation and mutual reliance
between supplier and retailer. We stand behind our product, our service and our word.

Page 1

Oasis Juice

2.0 Company Summary

Oasis Juice has built a reputation on offering the most delicious, nutritious, 100% natural
juices with no artificial flavors, colors or preservatives.

2.1 Company Ownership

Oasis Juice is owned by Tama Gardner and William Harris.

Page 2

Oasis Juice
2.2 Company History
Oasis Juice had its humble beginnings in the kitchen of Tama Gardner. It was in her
kitchen that she and William Harris first created the fruit drinks that would soon bec ome the
basis for Oasis Juice.
Initially, the fruit drinks were sold at Richmond's weekend craft fair. They proved to be so
popular that the partnership pooled their resources and began Oasis Juice. Over the next three
years, Oasis Juice's drinks, shakes, and smoothies have bec ome one of the city's most visible
signs of a healthy life style.
Oasis Juice's operations have expanded dramatically over the past three years. Currently, the
company has a staff of ten in production, delivery, and sales.
The following table and chart illustrate the rapid sales success of Oasis Juice.

Page 3

Oasis Juice
Table: Past Performance
Past Performance
Sales
Gross Margin

1999
$450,000
$120,000

2000
$520,000
$143,000

2001
$580,000
$160,000

Gross Margin %
Operating Expenses
Collection Period (days)
Inventory Turnover

26.67%
$200,000
0
15.00

27.50%
$240,000
0
15.00

27.59%
$280,000
76
15.00

1999

2000

2001

Current Assets
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets

$20,000
$49,000
$10,000
$5,000
$84,000

$30,000
$58,000
$10,000
$5,000
$103,000

$40,000
$80,000
$10,000
$5,000
$135,000

Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets

$70,000
$4,000
$66,000

$50,000
$8,000
$42,000

$50,000
$12,000
$38,000

$150,000

$145,000

$173,000

Current Liabilities
Accounts Payable

$30,000

$20,000

$20,000

Current Borrowing
Other Current Liabilities (interest free)
Total Current Liabilities

$0
$0
$30,000

$0
$0
$20,000

$0
$0
$20,000

Long-term Liabilities
Total Liabilities

$60,000
$90,000

$40,000
$60,000

$40,000
$60,000

Paid-in Capital
Retained Earnings

$30,000
$30,000

$40,000
$45,000

$80,000
$9,000

Earnings
Total Capital

$0
$60,000

$0
$85,000

$24,000
$113,000

$150,000

$145,000

$173,000

0
$0
0.00

0
$0
0.00

12
$330,000
4.13

Balance Sheet

Total Assets

Total Capital and Liabilities

Other Inputs
Payment Days
Sales on Credit
Receivables Turnover

Page 4

Oasis Juice

2.3 Company Locations and Facilities

Oasis Juice is loc ated on 1234 Main St.

3.0 Products
Oasis Juice offers the following products:

Fruit and vegetable juices;

Smoothies;
Super food drinks;
Fruit and vegetable shakes.

4.0 Market Analysis Summary

The demographics of Oasis Juice customers are as follows:

Young professional, ages 25 - 45;

Average income of $40,000+ a year;
Involved in athletic ac tivity;
Shop in upsc ale health/natural food stores.

Page 5

Oasis Juice
4.1 Market Segmentation
Oasis Juice has identified seven metro loc ations within the state where we can reac h our
target customers:

Montclair;
Riley;
Ashford;
Trac y;
Wilmington;
Langsford;
Willard.

Table: Market Analysis

Market Analysis
2002

2003

2004

2005

2006

Potential Customers
Montclair

Growth
10%

60,000

66,000

72,600

79,860

87,846

CAGR
10.00%

Riley
Ashford
Tracy
Wilmington
Langsford
Willard
Total

10%
10%
10%
10%
10%
10%
10.00%

75,000
85,000
75,000
62,000
90,000
48,000
495,000

82,500
93,500
82,500
68,200
99,000
52,800
544,500

90,750
102,850
90,750
75,020
108,900
58,080
598,950

99,825
113,135
99,825
82,522
119,790
63,888
658,845

109,808
124,449
109,808
90,774
131,769
70,277
724,731

10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%

Page 6

Oasis Juice
5.0 Strategy and Implementation Summary
The strategy of Oasis Juice is to foc us on our niche market which is health/natural food stores
that serve the young ac tive professional.

5.1 Marketing Strategy

Oasis Juice will introduce its products at 20% off regular price during the first month. In addition,
Oasis Juice will co-sponsor loc al athletic charitable events to raise the visibility of the brand
name.

5.2 Sales Strategy

The sales strategy is to build customer loyalty in the new markets. Oasis Juice will increase its
sales force to foc us on the new markets.

5.2.1 Sales Forecast

The following table and charts shows the rapid ramp-up of sales during the first twelve months
of operation.

Table: Sales Forecast

Sales Forecast
Sales
Products
Other
Total Sales
Direct Cost of Sales
Products
Other
Subtotal Direct Cost of Sales

2002

2003

2004

$1,020,000
$0
$1,020,000

$1,200,000
$0
$1,200,000

$1,300,000
$0
$1,300,000

2002
$278,000
$0
$278,000

2003
$310,000
$0
$310,000

2004
$360,000
$0
$360,000

Page 7

Oasis Juice

6.0 Management Summary

Co-owners, Tama Gardner and William Harris, currently manage the daily operation of Oasis Juice.
Tama and William have fifteen years of experience working in natural food stores. Tama is
responsible for production and distribution. William is the Sales Manager for Oasis Juice.

Page 8

Oasis Juice
Tama Gardner was one of the founding members of the Mason Peak Natural Groc ery, 4th and
Tyler. The groc ery was established in 1992 by the non-profit NEDCO, the Neighborhood Economic
Development Corporation, and a number of concerned neighbors who wished to save the
historic Mason Peak Market from destruction. Tama started as a cashier and advanced to the
position of Store Manager in 1996. The groc ery has grown into a community fixture under her
management.
William Harris ran the University's now defunct Natural Food Collective for three years before
the program was defunded. The small on-campus store provided natural food products to
student customers. Sales increased by 20% eac h year under his leadership. Unfortunately, the
state budget shortfall impac ted the continued funding of the program. Prior to this position,
William worked as Buyer for Sunburst Natural Foods for four years.

6.1 Personnel Plan

The following table shows the project personnel plan for Oasis Juice.

Table: Personnel
Personnel Plan
2002
$36,000
$36,000

2003
$40,000
$40,000

2004
$44,000
$44,000

$120,000
$120,000
$72,000

$130,000
$130,000
$76,000

$140,000
$140,000
$80,000

Total People

13

13

13

Total Payroll

$384,000

$416,000

$448,000

Tama Gardner
William Harris
Production Staff
Distribution Staff
Sales Staff

Page 9

Oasis Juice
7.0 Financial Plan
The following is the financial plan for Oasis Juice.

7.1 Break-even Analysis

The monthly break-even point is $66,534.

Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even

$66,534

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

27%
$48,400

Page 10

Oasis Juice
7.2 Projected Profit and Loss
The following table and charts are the projected profit and loss for three years.

Table: Profit and Loss

Pro Forma Profit and Loss
2002
$1,020,000
$278,000
$0
$278,000

2003
$1,200,000
$310,000
$0
$310,000

2004
$1,300,000
$360,000
$0
$360,000

Gross Margin
Gross Margin %

$742,000
72.75%

$890,000
74.17%

$940,000
72.31%

Expenses
Payroll
Sales and Marketing and Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Rent

$384,000
$72,000
$9,600
$0
$12,000
$9,600
$36,000

$416,000
$132,000
$9,600
$0
$12,000
$9,600
$36,000

$448,000
$132,000
$9,600
$0
$12,000
$9,600
$36,000

$57,600
$0

$62,400
$0

$67,200
$0

Total Operating Expenses

$580,800

$677,600

$714,400

Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred

$161,200
$170,800
$9,310
$45,567

$212,400
$222,000
$13,703
$59,609

$225,600
$235,200
$14,203
$63,419

Net Profit
Net Profit/Sales

$106,323
10.42%

$139,088
11.59%

$147,978
11.38%

Sales
Direct Cost of Sales
Other Production Expenses
Total Cost of Sales

Payroll Taxes
Other

Page 11

Oasis Juice

7.3 Projected Cash Flow

The following table and chart are the projected cash flow for three years.

Page 12

Oasis Juice
Table: Cash Flow
Pro Forma Cash Flow
2002

2003

2004

$255,000
$697,500
$952,500

$300,000
$873,971
$1,173,971

$325,000
$960,539
$1,285,539

$0
$100,163
$36,000
$36,000
$0
$0
$0
$1,124,663

$0
$0
$36,000
$36,000
$0
$0
$0
$1,245,971

$0
$0
$36,000
$36,000
$0
$0
$0
$1,357,539

2002

2003

2004

$384,000
$511,954
$895,954

$416,000
$633,013
$1,049,013

$448,000
$695,546
$1,143,546

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment

$0
$19,992
$0
$18,000

$0
$19,992
$0
$18,300

$0
$19,992
$0
$3,700

Purchase Other Current Assets

Purchase Long-term Assets
Dividends

$24,000
$24,000
$0

$30,000
$30,000
$0

$40,000
$30,000
$0

Subtotal Cash Spent

$981,946

$1,147,305

$1,237,238

Net Cash Flow

Cash Balance

$142,717
$182,717

$98,666
$281,383

$120,302
$401,684

Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations

Page 13

Oasis Juice

7.4 Projected Balance Sheet

The following table is the projected balance sheet for three years.

Page 14

Oasis Juice
Table: Balance Sheet
Pro Forma Balance Sheet
2002

2003

2004

Current Assets
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets

$182,717
$147,500
$33,000
$29,000
$392,217

$281,383
$173,529
$31,688
$59,000
$545,600

$401,684
$187,990
$38,323
$99,000
$726,997

Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets

$74,000
$21,600
$52,400
$444,617

$104,000
$31,200
$72,800
$618,400

$134,000
$40,800
$93,200
$820,197

2002

2003

2004

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$51,123
$80,171
$36,000
$167,294

$52,110
$60,179
$72,000
$184,289

$57,621
$40,187
$108,000
$205,808

Long-term Liabilities
Total Liabilities

$58,000
$225,294

$75,700
$259,989

$108,000
$313,808

Paid-in Capital
Retained Earnings
Earnings

$80,000
$33,000
$106,323

$80,000
$139,323
$139,088

$80,000
$278,411
$147,978

Total Capital
Total Liabilities and Capital

$219,323
$444,617

$358,411
$618,400

$506,389
$820,197

Net Worth

$219,323

$358,411

$506,389

Assets

Liabilities and Capital

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) code 5149, Groc eries and related products, are shown for
comparison.

Page 15

Oasis Juice
Table: Ratios
Ratio Analysis
2002
75.86%

2003
17.65%

2004
8.33%

Industry Profile
4.60%

33.17%
7.42%
6.52%
88.21%
11.79%
100.00%

28.06%
5.12%
9.54%
88.23%
11.77%
100.00%

22.92%
4.67%
12.07%
88.64%
11.36%
100.00%

33.30%
26.00%
20.90%
80.20%
19.80%
100.00%

37.63%
13.04%
50.67%
49.33%

29.80%
12.24%
42.04%
57.96%

25.09%
13.17%
38.26%
61.74%

45.20%
10.00%
55.20%
44.80%

100.00%

100.00%

100.00%

100.00%

72.75%
62.32%
5.88%
15.80%

74.17%
62.58%
10.00%
17.70%

72.31%
60.92%
9.23%
17.35%

44.10%
26.70%
0.70%
0.80%

Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets

2.34
2.15
50.67%
69.25%
34.16%

2.96
2.79
42.04%
55.44%
32.13%

3.53
3.35
38.26%
41.75%
25.77%

1.69
1.01
55.20%
3.60%
8.00%

Additional Ratios
Net Profit Margin
Return on Equity

2002
10.42%
48.48%

2003
11.59%
38.81%

2004
11.38%
29.22%

n.a
n.a

5.19
59
10.91
10.62

5.19
65
9.58
12.17

5.19
68
10.28
12.17

n.a
n.a
n.a
n.a

Payment Days
Total Asset Turnover

28
2.29

30
1.94

29
1.58

n.a
n.a

Debt Ratios
Debt to Net Worth
Current Liab. to Liab.

1.03
0.74

0.73
0.71

0.62
0.66

n.a
n.a

$224,923

$361,311

$521,189

n.a

17.31

15.50

15.88

n.a

0.44
38%
1.27
4.65

0.52
30%
1.85
3.35

0.63
25%
2.43
2.57

n.a
n.a
n.a
n.a

Sales Growth
Percent of Total Assets
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios

Activity Ratios
Accounts Receivable Turnover
Collection Days
Inventory Turnover
Accounts Payable Turnover

Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth

Page 16

Oasis Juice
Dividend Payout

0.00

0.00

0.00

n.a

Page 17

Appendix
Table: Sales Forecast
Sales Forecast
Sales
Products
Other
Total Sales
Direct Cost of Sales
Products
Other
Subtotal Direct Cost of Sales

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

0%

$60,000

$60,000

$70,000

$80,000

$80,000

$90,000

$90,000

$90,000

$100,000

$100,000

$100,000

$100,000

0%

$0
$60,000

$0
$60,000

$0
$70,000

$0
$80,000

$0
$80,000

$0
$90,000

$0
$90,000

$0
$90,000

$0
$100,000

$0
$100,000

$0
$100,000

$0
$100,000

Jan
$13,000
$0
$13,000

Feb
$13,000
$0
$13,000

Mar
$17,000
$0
$17,000

Apr
$20,000
$0
$20,000

May
$20,000
$0
$20,000

Jun
$25,000
$0
$25,000

Jul
$25,000
$0
$25,000

Aug
$25,000
$0
$25,000

Sep
$30,000
$0
$30,000

Oct
$30,000
$0
$30,000

Nov
$30,000
$0
$30,000

Dec
$30,000
$0
$30,000

Page 1

Appendix
Table: Personnel
Personnel Plan
Tama Gardner
William Harris

0%
0%

Jan
$3,000
$3,000

Feb
$3,000
$3,000

Mar
$3,000
$3,000

Apr
$3,000
$3,000

May
$3,000
$3,000

Jun
$3,000
$3,000

Jul
$3,000
$3,000

Aug
$3,000
$3,000

Sep
$3,000
$3,000

Oct
$3,000
$3,000

Nov
$3,000
$3,000

Dec
$3,000
$3,000

Production Staff

0%

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

Distribution Staff
Sales Staff

0%
0%

$10,000
$6,000

$10,000
$6,000

$10,000
$6,000

$10,000
$6,000

$10,000
$6,000

$10,000
$6,000

$10,000
$6,000

$10,000
$6,000

$10,000
$6,000

$10,000
$6,000

$10,000
$6,000

$10,000
$6,000

Total People

13

13

13

13

13

13

13

13

13

13

13

13

Total Payroll

$32,000

$32,000

$32,000

$32,000

$32,000

$32,000

$32,000

$32,000

$32,000

$32,000

$32,000

$32,000

Page 2

Appendix
Table: General Assumptions
General Assumptions
Plan Month
Current Interest Rate

Jan
1
10.00%

Feb
2
10.00%

Mar
3
10.00%

Apr
4
10.00%

May
5
10.00%

Jun
6
10.00%

Jul
7
10.00%

Aug
8
10.00%

Sep
9
10.00%

Oct
10
10.00%

Nov
11
10.00%

Dec
12
10.00%

Long-term 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%

Tax Rate
Other

30.00%
0

30.00%
0

30.00%
0

30.00%
0

30.00%
0

30.00%
0

30.00%
0

30.00%
0

30.00%
0

30.00%
0

30.00%
0

30.00%
0

Page 3

Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Jan
$60,000
$13,000

Sales
Direct Cost of Sales
Other Production Expenses

Feb
$60,000
$13,000

Mar
$70,000
$17,000

Apr
$80,000
$20,000

May
$80,000
$20,000

Jun
$90,000
$25,000

Jul
$90,000
$25,000

Aug
$90,000
$25,000

Sep
$100,000
$30,000

Oct
$100,000
$30,000

Nov
$100,000
$30,000

Dec
$100,000
$30,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Cost of Sales

$13,000

$13,000

$17,000

$20,000

$20,000

$25,000

$25,000

$25,000

$30,000

$30,000

$30,000

$30,000

Gross Margin
Gross Margin %

$47,000
78.33%

$47,000
78.33%

$53,000
75.71%

$60,000
75.00%

$60,000
75.00%

$65,000
72.22%

$65,000
72.22%

$65,000
72.22%

$70,000
70.00%

$70,000
70.00%

$70,000
70.00%

$70,000
70.00%

Expenses
Payroll

$32,000

$32,000

$32,000

$32,000

$32,000

$32,000

$32,000

$32,000

$32,000

$32,000

$32,000

$32,000

Sales and Marketing and Other

Expenses
Depreciation
Leased Equipment

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

$800
$0

$800
$0

$800
$0

$800
$0

$800
$0

$800
$0

$800
$0

$800
$0

$800
$0

$800
$0

$800
$0

$800
$0

Utilities
Insurance
Rent

$1,000
$800
$3,000

$1,000
$800
$3,000

$1,000
$800
$3,000

$1,000
$800
$3,000

$1,000
$800
$3,000

$1,000
$800
$3,000

$1,000
$800
$3,000

$1,000
$800
$3,000

$1,000
$800
$3,000

$1,000
$800
$3,000

$1,000
$800
$3,000

$1,000
$800
$3,000

$4,800

$4,800

$4,800

$4,800

$4,800

$4,800

$4,800

$4,800

$4,800

$4,800

$4,800

$4,800

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Operating Expenses

$48,400

$48,400

$48,400

$48,400

$48,400

$48,400

$48,400

$48,400

$48,400

$48,400

$48,400

$48,400

Profit Before Interest and Taxes

Payroll Taxes
Other

15%

($1,400)

($1,400)

$4,600

$11,600

$11,600

$16,600

$16,600

$16,600

$21,600

$21,600

$21,600

$21,600

EBITDA
Interest Expense

($600)
$401

($600)
$469

$5,400
$538

$12,400
$606

$12,400
$674

$17,400
$742

$17,400
$810

$17,400
$878

$22,400
$946

$22,400
$1,014

$22,400
$1,082

$22,400
$1,151

Taxes Incurred

($540)

($561)

$1,219

$3,298

$3,278

$4,757

$4,737

$4,717

$6,196

$6,176

$6,155

$6,135

($1,261)
-2.10%

($1,309)
-2.18%

$2,844
4.06%

$7,696
9.62%

$7,648
9.56%

$11,101
12.33%

$11,053
12.28%

$11,006
12.23%

$14,458
14.46%

$14,410
14.41%

$14,363
14.36%

$14,314
14.31%

Net Profit
Net Profit/Sales

Page 4

Appendix
Table: Cash Flow
Pro Forma Cash Flow
Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Cash from Operations

Cash Sales
Cash from Receivables

$15,000
$40,000

$15,000
$41,500

$17,500
$45,000

$20,000
$45,250

$20,000
$52,750

$22,500
$60,000

$22,500
$60,250

$22,500
$67,500

$25,000
$67,500

$25,000
$67,750

$25,000
$75,000

$25,000
$75,000

Subtotal Cash from Operations

$55,000

$56,500

$62,500

$65,250

$72,750

$82,500

$82,750

$90,000

$92,500

$92,750

$100,000

$100,000

Cash Received

Additional Cash Received

Sales Tax, VAT, HST/GST Received

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Current Borrowing

New Other Liabilities (interest-free)

$8,333
$3,000

$8,333
$3,000

$8,333
$3,000

$8,333
$3,000

$8,333
$3,000

$8,333
$3,000

$8,333
$3,000

$8,333
$3,000

$8,333
$3,000

$8,333
$3,000

$8,333
$3,000

$8,500
$3,000

New Long-term Liabilities

Sales of Other Current Assets

$3,000
$0

$3,000
$0

$3,000
$0

$3,000
$0

$3,000
$0

$3,000
$0

$3,000
$0

$3,000
$0

$3,000
$0

$3,000
$0

$3,000
$0

$3,000
$0

Sales of Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Investment Received

Subtotal Cash Received

$0
$69,333

$0
$70,833

$0
$76,833

$0
$79,583

$0
$87,083

$0
$96,833

$0
$97,083

$0
$104,333

$0
$106,833

$0
$107,083

$0
$114,333

$0
$114,500

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Cash Spending
Bill Payments

$32,000
$21,092

$32,000
$32,619

$32,000
$28,850

$32,000
$38,891

$32,000
$42,695

$32,000
$39,953

$32,000
$51,417

$32,000
$46,148

$32,000
$46,596

$32,000
$58,060

$32,000
$52,791

$32,000
$52,839

Subtotal Spent on Operations

$53,092

$64,619

$60,850

$70,891

$74,695

$71,953

$83,417

$78,148

$78,596

$90,060

$84,791

$84,839

Expenditures

0.00%

Expenditures from Operations

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

Other Liabilities Principal Repayment

$1,666
$0

$1,666
$0

$1,666
$0

$1,666
$0

$1,666
$0

$1,666
$0

$1,666
$0

$1,666
$0

$1,666
$0

$1,666
$0

$1,666
$0

$1,666
$0

Long-term Liabilities Principal Repayment

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

Purchase Other Current Assets

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

Purchase Long-term Assets

Dividends

$2,000
$0

$2,000
$0

$2,000
$0

$2,000
$0

$2,000
$0

$2,000
$0

$2,000
$0

$2,000
$0

$2,000
$0

$2,000
$0

$2,000
$0

$2,000
$0

$60,258

$71,785

$68,016

$78,057

$81,861

$79,119

$90,583

$85,314

$85,762

$97,226

$91,957

$92,005

Subtotal Cash Spent

Net Cash Flow

$9,075

($952)

$8,817

$1,526

$5,222

$17,714

$6,500

$19,019

$21,071

$9,857

$22,376

$22,495

Cash Balance

$49,075

$48,123

$56,940

$58,465

$63,687

$81,401

$87,900

$106,919

$127,990

$137,847

$160,222

$182,717

Page 5

Appendix
Table: Balance Sheet
Pro Forma Balance Sheet
Assets

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Starting Balances

Current Assets
Cash
Accounts Receivable

$40,000
$80,000

$49,075
$85,000

$48,123
$88,500

$56,940
$96,000

$58,465
$110,750

$63,687
$118,000

$81,401
$125,500

$87,900
$132,750

$106,919
$132,750

$127,990
$140,250

$137,847
$147,500

$160,222
$147,500

$182,717
$147,500

Inventory
Other Current Assets
Total Current Assets

$10,000
$5,000
$135,000

$14,300
$7,000
$155,375

$14,300
$9,000
$159,923

$18,700
$11,000
$182,640

$22,000
$13,000
$204,215

$22,000
$15,000
$218,687

$27,500
$17,000
$251,401

$27,500
$19,000
$267,150

$27,500
$21,000
$288,169

$33,000
$23,000
$324,240

$33,000
$25,000
$343,347

$33,000
$27,000
$367,722

$33,000
$29,000
$392,217

Long-term Assets
Long-term Assets

$50,000

$52,000

$54,000

$56,000

$58,000

$60,000

$62,000

$64,000

$66,000

$68,000

$70,000

$72,000

$74,000

Accumulated Depreciation
Total Long-term Assets

$12,000
$38,000

$12,800
$39,200

$13,600
$40,400

$14,400
$41,600

$15,200
$42,800

$16,000
$44,000

$16,800
$45,200

$17,600
$46,400

$18,400
$47,600

$19,200
$48,800

$20,000
$50,000

$20,800
$51,200

$21,600
$52,400

$173,000

$194,575

$200,323

$224,240

$247,015

$262,687

$296,601

$313,550

$335,769

$373,040

$393,347

$418,922

$444,617

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing

$20,000
$0

$31,669
$6,667

$27,558
$13,334

$37,464
$20,001

$41,377
$26,668

$38,233
$33,335

$49,879
$40,002

$44,609
$46,669

$44,655
$53,336

$56,301
$60,003

$51,030
$66,670

$51,076
$73,337

$51,123
$80,171

Other Current Liabilities

Subtotal Current Liabilities

$0
$20,000

$3,000
$41,336

$6,000
$46,892

$9,000
$66,465

$12,000
$80,045

$15,000
$86,568

$18,000
$107,881

$21,000
$112,278

$24,000
$121,991

$27,000
$143,304

$30,000
$147,700

$33,000
$157,413

$36,000
$167,294

Long-term Liabilities

$40,000

$41,500

$43,000

$44,500

$46,000

$47,500

$49,000

$50,500

$52,000

$53,500

$55,000

$56,500

$58,000

Total Liabilities

$60,000

$82,836

$89,892

$110,965

$126,045

$134,068

$156,881

$162,778

$173,991

$196,804

$202,700

$213,913

$225,294

Paid-in Capital
Retained Earnings

$80,000
$9,000

$80,000
$33,000

$80,000
$33,000

$80,000
$33,000

$80,000
$33,000

$80,000
$33,000

$80,000
$33,000

$80,000
$33,000

$80,000
$33,000

$80,000
$33,000

$80,000
$33,000

$80,000
$33,000

$80,000
$33,000

Earnings

$24,000

($1,261)

($2,570)

$274

$7,970

$15,619

$26,720

$37,773

$48,778

$63,236

$77,646

$92,009

$106,323

Total Capital

$113,000

$111,739

$110,430

$113,274

$120,970

$128,619

$139,720

$150,773

$161,778

$176,236

$190,646

$205,009

$219,323

Total Liabilities and Capital

$173,000

$194,575

$200,323

$224,240

$247,015

$262,687

$296,601

$313,550

$335,769

$373,040

$393,347

$418,922

$444,617

Net Worth

$113,000

$111,739

$110,430

$113,274

$120,970

$128,619

$139,720

$150,773

$161,778

$176,236

$190,646

$205,009

$219,323

Page 6