Cosmopolitan Caf and Lounge

Projected Balance Sheets

2011
Assets:
Current:
Cash & short-term investments
Prepaid expenses
Inventory

2012

399,700
31,000
27,000
457,700

588,400
31,000
27,000
646,400

79,000
52,000
(13,100)
117,900

79,000
52,000
(26,200)
104,800

575,600

751,200

150,000
100,000
250,000

100,000
100,000

Retained earnings (deficit)

Opening
Current net income
Closing

325,600
325,600

325,600
325,600
651,200

Total shareholders' equity

325,600

651,200

Liabilities & equity

575,600

751,200

Capital:
Equipment
Leaseholds
Less: Accumulated Amortiz'n (10 year SL)

Total assets
Liabilities:
Bank loan
Accrued liabilities & A/P
Shareholder's loan

Shareholders' equity:

Cosmopolitan Caf and Lounge

Projected Income Statements
Notes

2011

2012

1&2

3,026,036
1,133,028
1,893,008

3,782,545
1,416,285
2,366,260

13,100
692,406
208,000

13,100
865,508
260,000

913,506

1,138,608

979,502

1,227,653

579,502

827,653

400,000

400,000

74,400

74,400

325,600

325,600

Revenues:
Gross revenues
Direct expenses
Net revenues

Less: Expenses
Amortization
Variable
Fixed

Pre-tax Income (loss)

Management bonus*
Taxable income
Income taxes (18.6%)
Net Income

Notes:
1)
See detail of 2011projected income per attached worksheet
2)
2012 revenues and expenses assume a 25% increase of 2011 projections
3)
The company intends to bonus out income > $400,000 to active shareholders.

COSMOPOLITAN LOUNGE PROJECTED INCOME - 2011

MONDAY

PROJECTED NIGHTS

TUESDAY

WEDNESDAY THURSDAY

FRIDAY

SATURDAY

TOTAL
(weekly)

SUNDAY

OF OPERATION

TOTAL
(annually)

TOTAL
as % of revenue

Industry
Average **

Variance

# OF TOTAL GUESTS

80.00
300.00
-

###
###
60.00

100.00
150.00
50.00

150.00
150.00
100.00

150.00
150.00
100.00

150.00
150.00

10pm-3am

80.00
120.00
-

Total

200.00

380.00

440.00

300.00

400.00

400.00

300.00

11am-4 pm (lunch menu)

4pm-10pm (dinner)

Gross Revenues

$/patron

Food
Beverages

$ 15.00 $
$ 8.00 $

Cover charge (>10pm)

$ 10.00

3,000
1,600

$
$

5,700
3,040

$
$

6,600 $
3,520 $

4,500 $
2,400 $

6,000 $
3,200 $

6,000 $
3,200 $

500 $

1,000 $

1,000

4,500 $
2,400 $

Total Gross Revenue

36,315 $
19,368 $

1,888,380
1,007,136

2,510 $

130,520

58,193 $

3,026,036

100.0%

100.0%

100.0%

Direct costs

$/patron

Head chef
Line cooks

$
$

1.00 $
1.00 $

200
200

$
$

380
380

$
$

440 $
440 $

300 $
300 $

400 $
400 $

400 $
400 $

300 $
300 $

2,421 $
2,421 $

125,892
125,892

8.3%

8.3%

0.0%

Food
Beverages

$
$

5.00 $
2.00 $

1,000
400

$
$

1,900
760

$
$

2,200 $
880 $

1,500 $
600 $

2,000 $
800 $

2,000 $
800 $

1,500 $
600 $
$

12,105 $
4,842 $
21,789 $

629,460
251,784
1,133,028

29.1%

38.3%

-9.2%

36,404 $

1,893,008

$
$
$
$
$
$
$
$

1,211 $
1,211 $
2,421 $
2,421 $
1,211 $
1,211 $
1,211 $
2,421 $

62,946
62,946
125,892
125,892
62,946
62,946
62,946
125,892

2.1%
2.1%
4.2%
4.2%
2.1%
2.1%
2.1%
4.2%

22.1%
2.9%
2.2%
2.5%
9.2%

-9.6%
-0.8%
-0.1%
-0.4%
-5.0%

13,316 $

692,406

Gross income
Variable costs
Staff:
Bar
Servers
Security & hosting
Manager
Utilities & telecom
Repairs & maintenance
Advertsing & promo
Other expenses

$/patron
$
$
$
$
$
$
$
$

0.50
0.50
1.00
1.00
0.50
0.50
0.50
1.00

$
$
$
$
$
$
$
$

100
100
200
200
100
100
100
200

$
$
$
$
$
$
$
$

190
190
380
380
190
190
190
380

$
$
$
$
$
$
$
$

220
220
440
440
220
220
220
440

$
$
$
$
$
$
$
$

150
150
300
300
150
150
150
300

$
$
$
$
$
$
$
$

200
200
400
400
200
200
200
400

$
$
$
$
$
$
$
$

200
200
400
400
200
200
200
400

$
$
$
$
$
$
$
$

150
150
300
300
150
150
150
300

Fixed costs
Insurance

Rent

Professional fees

300

Amortization & depletion

Interest & bank charges

Net income

15,600

0.5%

0.7%

-0.2%

2,500 $

300

130,000

4.3%

6.9%

-2.6%

15,600

0.5%

1.8%

-1.3%

600

31,200

1.0%

2.6%

-1.6%

300

15,600

0.5%

0.8%

-0.3%

4,000 $

208,000

19,089 $

992,602

32.8%

1.7%

-31.1%

Cosmopolitan Caf and Lounge

Projected Statement of cash flows

2011

Opening cash balance

I) Operating activities
Net income
Addback: Amortization

II) Financing activities

Bank loan
Advances from shareholder

III) Investment activities

Leaseholds
Equipment

Closing cash balance

2012

364,700

325,600
13,100
338,700

325,600
13,100
338,700

150,000
100,000
250,000

(50,000)
(118,000)
(168,000)

(52,000)
(74,000)
(126,000)

364,700

585,400

Intended capital investment

Price

Total

Working capital
Inventory - alcohol
Inventory - food
Rent (first & last)
Utlility deposits
Website & initial advertising
Cash reserve

$
$
$
$
$
$

15,000
12,000
23,000
3,000
5,000
10,000 $

68,000

Equipment
Bars
replace / update
Pictures / engraved glass
Camera & Security System
Furniture
Computer (Hardware)
Computer (Software)
Signage
Glass washer
new
Dishes/glasses/utensils (200)
Lighting & electrical
Video

$ 12,000
$ 5,000
$ 3,000
$ 3,000
$ 12,000
$ 8,000
$ 8,000
$ 10,000
$ 5,000
$ 5,000
$ 8,000 $

79,000

Renovations
Front Entrance
Dcor
Painting
Floor restoration
Kitchen
VIP bars / chef stations
Seating - leather upholstery
Washrooms
General Restorations (drywall)

$ 2,000
$ 3,000
$ 3,000
$ 2,000
$ 12,000
$ 7,000
$ 3,000
$ 15,000
$ 5,000 $

52,000

199,000

Total

restore

Notes
1

COGS assumes a 40% profit margin