Garrett's Bikeshop Updated

CONFIDENTIAL
GARRETT'S BIKE
SHOP
WE OFFER HIGH-QUALITY BIKING GEAR FOR FAMILIES AND REGULAR PEOPLE, NOT JUST
GEARHEADS.
BUSINESS PLAN
Prepared April 2016
CONTACT INFORMATION
Alyssa Windell
alyssa@paloalto.com
www.liveplan.com
44 W Broadway #500
Eugene, OR 97401, United States
888-498-6136
GARRETT'S BIKE SHOP
Table of Contents
Executive Summary .........................................................................1
Opportunity ...................................................................................................................................................................1
Expectations ..................................................................................................................................................................3
Opportunity .....................................................................................5
Problem & Solution.......................................................................................................................................................5
Target Market ...............................................................................................................................................................5
Competition...................................................................................................................................................................6
Execution.........................................................................................8
Marketing & Sales.........................................................................................................................................................8
Operations...................................................................................................................................................................10
Milestones & Metrics..................................................................................................................................................11
Company .......................................................................................12
Overview .....................................................................................................................................................................12
Team ............................................................................................................................................................................13
Financial Plan.................................................................................14
Forecast .......................................................................................................................................................................14
Financing .....................................................................................................................................................................16
Statements ...................................................................................................................................................................17
Appendix .......................................................................................20
Profit and Loss Statement...........................................................................................................................................20
Balance Sheet..............................................................................................................................................................27
Cash Flow Statement..................................................................................................................................................34
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the
understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
GARRETT'S BIKE SHOP
Executive Summary
Opportunity
Problem
It's hard to buy a good bike in this town without being an "insider" cycling expert.
Solution
Garrett's is a snob free zone where regular people can get top notch gear and expert advice.
What We Sell
Bicycles. We sell new bicycles, predominantly in the mountain bike style, retro-cruiser is a close second,
and sport/touring/racing road bikes a distant third. We also sell some used bikes which we take in on
trade as a service to our customers who are buying new bikes.
Accessories. We offer a wide variety of accessories. Locks, computer speedometers, fenders, cargo racks,
comfortable seats, headlights, helmets, water bottles, panniers/back packs/messenger bags, child seats
and trailers, bike storage racks, and auto roof rack systems all fall in this category.
Clothing. We rotate our clothing based on the season. For example, in Autumn, we stock jackets and GoreTex. In Winter, we offer helmet covers and liners, insulated jerseys and pants, gloves, and shoe covers. In
the Spring, we start displaying summer jerseys, and racing shorts
Parts. Parts generally refers to pieces or materials necessary to the basic functioning of the bicycle.
Generally, parts are installed during service and are an additional charge beyond the service fees.
Service
Garrett's Bike Shop is a full-service specialized bicycle shop. Our service offering includes, but is not
limited to:
Free 30-day/100-mile tune up with every new bike sold.
Quick repairs for flat tires, broken chains, brake cables, etc.
GARRETT'S BIKE SHOP
Scheduled tune-ups, replacement of all bearing surfaces, repacking of lubricants, and adjustments
of derailleurs and brake systems.
Installation of all accessories.
Authorized warranty repairs on the bikes.
Custom wheel building.
Frameset repairs by outsourcing to Via Porco custom frame builders.
Market
Who We Sell To
The primary market for Garrett's Bike Shop is the university student population, which normally has a
turnover/growth of approximately 25% each year. The secondary market is the university faculty and staff,
and the tertiary market is the greater Metroburg
community.
The university students are our main target

market.
1.
They are mostly undergraduates, so

there is a 25% annual turnover.
2.
The lack of parking in the university area

and the general ease of bike mobility
throughout Metroburg motivates them to
use bicycles as inexpensive transport. Athletic pursuits draw them, and the nearby areas for use of
mountain and trail bikes provides a great place to ride.
3.
There is a new enthusiasm for retro Cruiser bikes, and higher tech cruiser-style bikes with
multiple gears, good brakes, etc. among the college age population.
4.
Also, main market for racks, locks, throughout, pannier/bags, fenders, rainwear, etc.
5.
They want convenience for sales and service.
Competition
Big-box retailers
GARRETT'S BIKE SHOP
Local bike shops
Online retailers
Why Us?
We offer a welcoming, family-friendly bike shop space with higher quality gear and services.
Expectations
Forecast
This financial plan was developed based upon previous years' data for the existing store, tracking trends in
revenues and expenses. A five-month track of sales, accounts receivables and payables, and inventory
from a year-end benchmark was made. The current owner, Han Delbar, has sold the business to Hubert
Wheeler for $140,000. The seller, buyer, and the accountant worked together on the plan to balance
optimism with reality. An attorney was consulted on specifics of the sale contract.
Sales for the first year of new ownership are projected above $500,000, with a gross margin of almost 65%.
Profitability is expected at the mid-way point of the fiscal year, in March.
Financial Highlights by Year
GARRETT'S BIKE SHOP
Financing Needed
We plan on bootstrapping the business to start, but may consider loans for future expansion.
GARRETT'S BIKE SHOP
Opportunity
Problem & Solution
Problem Worth Solving
No full-service bike shop offers a snob-free zone focused on servicing the university market.
Our Solution
Our market niche has several needs which we strive to meet:
Quality bikes at several price points.
Various styles and sizes of bikes, leaning heavily toward the styles most popular with the student
population.
Range of accessories most practical in the local setting, such as locks, fenders, lights, tires, seats,
rainwear, etc.
Plenty of replacement components and service parts.
Friendly personal relationships between cyclists and shop staff.
Prompt and convenient service from on-the-spot flat tire fix, to drop in repairs, to scheduled major
maintenance, where the rider can drop their bike off, head to class or work, and be assured that
their bike will be ready for the ride home.
Target Market
The bulk of Garrett's Bike Shop's market growth is the regular matriculation of students from the State
University in Metroburg. While the overall market numbers change in small increments, usually less than
10%, the market has a turnover of 22-26% yearly. In a longer time frame the number of students and the
number of university employees grows and shrinks with economic changes, and with population
demographics.
For the next three years we foresee a steady growth in the overall university population as well as
continued growth of Metroburg as a desirable place to live.
GARRETT'S BIKE SHOP
Competition
Current Alternatives
One local multi-sport store at the local megamall
One statewide chain of bicycle shops which started out as Schwinn-only shops, but has had to take
on other brands and products.
One used bike store that has made a fine business reputation for itself, dealing strictly in used
bikes.
Three local, including the oldest shop in town.
One local multi-location chain, that has specialized in opening shops in small local malls in areas of
new housing development.
Several garage mechanics offering service only.
The two strongest competitors are the Oldest Shop in Town which carries the cache of being the most
stable, and most well known -- a Metroburg institution. The Mountain Bike Specialist targets the same
athletic, young, performance and image conscious rider that we target in the university student population.
These cyclists are particular about their bike and will go where the name brand they want is sold, or will try
every bike and then buy the one that fits best, regardless of store loyalty.
Our Advantages
The foremost competitive advantage of Garrett's Bike Shop is our university location. The university is over
100 years old and as it has grown, Metroburg has grown around it. Parking is almost nonexistent, with all
campus parking permit or meter controlled, and local streets filled to capacity with the vehicles of
residents. Bicycles are an obvious and popular transportation solution.
The negotiations of the past two years also brings the advantage of continued financial agreements with
major suppliers. This is an advantage over a start-up bicycle shop, but, is more a leveling of the bike path
when compared to other established shop in Metroburg. Traditionally a start-up store will be placed on a
Cash On Delivery (COD) status by bicycle manufacturers and parts/accessories suppliers. The COD status
stays in effect until the new shop demonstrates its ability to manage its orders and cash flow. This also
means the new shop must have more funding to be able to write checks on a moments notice, for large
amounts.
Strategic Alliances
GARRETT'S BIKE SHOP
Bicycle manufacturers - continuation of dating programs and financial agreements.
Accessory suppliers - continuation of financial agreements.
Metroburg Parks Dept. - we sponsor printed map of city bike paths to publish on our website.
University Security Office - maintenance, supply service contract for cycle security.
HooDaThunkIt - website design and maintenance, search engine placement.
GARRETT'S BIKE SHOP
Execution
Marketing & Sales
Marketing Plan
Overview
Our marketing strategy seeks to optimize our advantage of prime location. We want the university
population to see us as their bike shop, even our name says so, Garrett's Bike Shop. We want them to see
us as part of their daily experience, and a shop they can depend on for quick repair and maintenance
service.
Positioning
We are Garrett's Bike Shop, and we are passionate about bicycles.
Promotion
Our marketing programs are locally focused, where we can effect our main target market.
Back to school specials. At the beginning of each term, including perhaps a free Kryptonite lock with a new
bike purchase. We will try to have a special purchase of an economy value bike for each term.
Spring special. This coincides with the beginning of spring term, but we will direct some of our advertising
at the wider population as people hang up their skis and tune up their bikes.
Coupons. Once every other month we will run a coupon for a service special in the university newspaper,
the Daily Hyperbole. We also run this coupon as a banner ad in the Daily Hyperbole Online.
Website. Our content site will also serve as a marketing medium. We offer downloadable maps of the city
bike routes, maps of rides outside the city area, give information about the store, and announce sales. We
believe that cyclists will regularly access our site for the valuable information we will provide, and this will
reinforce their of awareness of Garrett's Bike Shop, and we will become their bike shop of choice.
Print advertising. In addition to our coupons, we will keep a small 3 column inch ad appearing on a
recurring schedule in the Daily Hyperbole. To boost citywide awareness of our sales specials we will also
run slightly larger ads in the Metroburg Bombast-Obfuscator during the weekends prior to the sale.
GARRETT'S BIKE SHOP
Sales Plan
Our sales channels include:
Selling bicycles and accessories directly to customers through our bike shop. We also sell through our
online store and at special bike enthusiast events.
Retail Pricing
Pricing of bicycles is very tight with a markup of between 30% and 40% depending upon the brand
and model. Many people believe that bicycles are priced like automobiles and are open for negotiation,
and make almost insulting offers. The shops have little leeway here.
Parts and accessories are generally keystone priced. Some small items cost more in handling and sales
than they do to buy from suppliers. These can be double and triple keystoned, because customers won't
buy them if they don't have a minimum perceived value. On the plus side, these are great "throw-in" items
used to close the sale of a bike. When new technology arrives in bicycles, and if the supply is limited,
almost any price can be demanded.
Other accessories, such as step-in pedals, pannier racks, helmets, or headlights are sometimes heavily
marketed by the manufacturers. While this drives demand and brings people into the shop to get these
items, the suggested manufacturer's retail price may limit markup.
The markup on clothes, shoes, jackets, gloves can vary from keystone to triple keystone, depending
upon product, manufacturer, country of origin, and customer perception of value. Pearl Izumi and Burley
Design rainwear can demand premium prices as top-of-the-line garments, but many budget-conscious
students can only afford a $35 nylon windbreaker. It has been and always will be a demanding job for us
to adequately stock garments at the various price points.
Service
We try to maintain a basic "Hourly shop rate" at $45/hour. Standard repairs are then priced based upon an
average time for completion. Some repairs, such as a flat tire, are limited by customer perception of
difficulty. Examples:
Flat Tire -- $7.50
Install Fenders -- $10.00
Brake Adjustment -- $25.00
GARRETT'S BIKE SHOP
Tune-up -- $65.00
Overhaul -- $100.00
10
All parts used in repairs are priced at keystone, and added to the labor service charge.
With several other bicycle shops in the city, there are some price constraints based on competition.
Coupons and specials can balance price ceilings by drawing in customers.
Operations
Locations & Facilities
Garrett's Bike Shop is 1,500 square foot store of interior space located on the university campus in
Metroburg. Our location, in the first block off campus in a commercial area featuring the university
bookstore, a private bookstore, bank, cafes, coffee shops and popular watering holes is ideal. We get
constant, daily visual exposure. Students and staff throng the sidewalk outside our door, and we reap the
benefits. Our nearest competitor is almost a mile away. For the student customer, on foot, in a hurry,
Garrett's Bike Shop is the immediate solution to their needs.
Technology
Our bike shop is equipped with the latest technology to help maintain your bicycle needs. Whether older
bike parts, or newer technologies, we stock inventory of whichever parts you seek to maintain your bike is
in peak condition.
With our customized online tracking system, we can keep record of what we took care of on your bike
from the last visit and maintain an ongoing record for future visits. This allows us to specialize your visits
each time you visit our shop.
Equipment & Tools
We recognize that all bikes require basic tune-ups, to complex maintenance. With an array of bikes in
mind, we have the right equipment and tools to cater to your biking needs.
11
GARRETT'S BIKE SHOP
Milestones & Metrics

Milestones Table
Milestone
Due Date
Create New Inventory Plan
April 29, 2016
Open Social Media Accounts
May 02, 2016
Sign Lease for Downtown Showroom
May 06, 2016
Grand Opening!
June 06, 2016
Key Metrics
Customer retention is one of our main focal points for Garrett's Bike Shop. Although, ideal that our shop is
located in a university focused town, there is a consistent turnover of students after they graduate from the
university. Also, during the summer when sales may be lower due to seasonality of university attendance it
is important to focus on retention of key customers in Metroburg. With focus on customer retention, we can
become the specialty bike shop that customers intend to have repeat business for themselves, and their
families.
GARRETT'S BIKE SHOP
12
Company
Overview
Ownership & Structure
Garrett's Bike Shop is a subchapter S corporation, and is currently owned by Han Delbar. Hubert
Wheeler, current assistant manager of Garrett's Bike Shop, is purchasing Garrett's Bike Shop from Delbar,
acquiring existing inventory, and assuming outstanding accounts payable and dating program debts to
suppliers, location lease, customer base and information, and Garrett's Bike Shop's business name and
goodwill. The business will continue to be a subchapter S corporation. Exchange of ownership will occur
on July 1st.
To establish an accurate accounting of existing inventory and outstanding debts, the prior year's closing
inventory and year end financial statement as reviewed by the business' CPA were used as
benchmarks. The sales, orders placed, deliveries received, and accounts payable payments made have
been tracked each month, and a trial balance of these will be run June 15 to establish the final purchase
price for inventory on hand, and the amount of Accounts Payable assumed. The figures presented here are
conservative, realistic estimates used for planning purposes.
Company History
The current assistant manager, Hubert Wheeler, is buying Garrett's Bike Shop, and will manage the
business. He has a B.S. degree in Economics and an M.A. in Comparative Literature. His passion however
has always been cycling. He originally worked at his local bike shop when he was in college. After several
years trying to find suitable work in his degree field, he gave up chasing the chimera of these fields and
decided to work with something substantial, and returned to his youthful enjoyment of bicycles.
He attended two of the major bicycle mechanic training programs, at New England Bicycle Academy
and the United Bicycle Institute. These courses covered mechanical service and maintenance, frame
building and repair, wheel building, and shop organization, sales, and management. He has 12 years of
progressively responsible experience in bicycle shops with the last five at Garrett's Bike Shop.
One of the other full-time employees, Valerie Pede has expressed interest in learning more about the bike
industry and she will be promoted to be the new assistant manager. Val has been with us for three years.
She graduated from State University at Metroburg with tandem B.S. degrees in Exercise Physiology and
Recreation Management. She loves to cycle, and has kept her contacts at the university active. Her
GARRETT'S BIKE SHOP
13
knowledge and expertise draws many women bicyclists to our store where they know they will get the
care and attention which is usually missing from traditionally male staffed shops.
Team
Management Team
Garrett McKenzie Founder/Owner
After a successful run as a mortgage broker, Garrett will apply his business acumen to leading a company
he is passionate about.
Jill Bloom Shop Manager
After a decade of bike-shop experience and five completed triathlons, Jill will anchor the services side of
the business.
Heather Gibson Investor
Heather is an avid cyclist and small business investor. Her expertise is in small business expansion.
Advisors, Partners and Resources
Tom McKey, Advisor
Han Delbar, Current Owner
Order Out of Chaos, our full-cycle bookkeeping service
Continental Shelf Bank
Newt Ria, a partner at Weasel, Stoat, Muskrat who advised on the sale/purchase arrangements
The Great Outdoors
Travel Northwest
Cycle Parts R Us
GARRETT'S BIKE SHOP
14
Financial Plan
Forecast
Key Assumptions
Sales vary season to season and with the academic school year. Surprisingly, summer is the slowest
season because there are fewer students in town. Business picks up in August with the return of the
students and staff, and flourishes in September. Accessories and rainwear sales increase in the autumn and
early winter. Repairs and maintenance are steady. Holiday sales are brisk, though generally leaning again
to accessories, parts, rainwear, gloves, helmets, headlights, etc. Winter sales are moderate, and then pick
up in springtime as people put away their skies and look forward to local outdoor activities, longer daylight
hours, and drier weather.
We have three large sales promotions each year.
1.
Back to school in August/September. This is our biggest sale of the year. New bicycles, locks,
helmets, racks, fenders, backpacks. We always search for a special purchase of good quality, but
value priced bikes for this sale such as year end models, slow sellers, new line looks to break into
the market. These bikes will almost always sell out to students seeking great values.
2.
Year-end holidays. This also overlaps the beginning of Winter term. The retail market demands
some participation in this annual buying frenzy, yet, this sale produces lower revenue than our
other two events. We sell fewer bikes, and more accessories and clothing.
3.
Spring. This coincides with both the return of nice weather, and beginning of Spring term. We
feature new bicycles, and repair/maintenance/tune-up specials. It is important to us to have a good
selection on hand at this time. When people decide they want that new bike, they want it now. If we
don't have the bike then, and make the sale immediately, many riders will decide that they really
can get another season out of their old bike, and will spend their discretionary income on some
other purchase.
Additionally, we have some special buys available for June graduation.

We get some small monthly revenue from these sources:
Sale of used bicycles taken in on trade.
Repair classes taught at the University Outdoor Center, once a term.
GARRETT'S BIKE SHOP
Monthly service contract for repairs and parts with the University Security Office.
Revenue by Month
Expenses by Month
15
GARRETT'S BIKE SHOP
16
Net Profit (or Loss) by Year
Financing
Use of Funds
We currently have a $100,000 loan. With this money, we will complete construction on our brick and
mortar store and supplement revenue for the first month.
Sources of Funds
Heather Gibson, an avid cyclist and investor of small businesses has invested in Garrett's Bike Shop. She is
a proponent of small business expansion in the Metroburg area.
17
GARRETT'S BIKE SHOP
Statements
Projected Profit & Loss
FY2016
FY2017
FY2018
Revenue
$924,900
$1,094,600
$1,248,705
Direct Costs
$349,261
$421,830
$495,024
Gross Margin
$575,639
$672,770
$753,681
62%
61%
60%
$155,400
$160,210
$165,182
$38,850
$40,053
$41,296
Insurance
$4,260
$4,260
$4,260
Leased Equipment
$1,800
$1,800
$1,800
Marketing
$92,490
$109,460
$124,871
Lease
$56,400
$56,400
$56,400
Utilities
$3,600
$3,600
$3,600
Office Expenses
$46,245
$54,730
$62,435
Expense from Other Current Assets
$10,000
Gross Margin %
Operating Expenses
Salary
Employee Related Expenses
Total Operating Expenses
$409,045
$430,513
$459,844
Operating Income
$166,594
$242,257
$293,837
Interest Incurred
$8,941
$7,963
$5,961
Depreciation and Amortization
$1,131
$1,907
$1,906
$23,478
$34,857
$42,896
Total Expenses
$791,856
$897,070
$1,005,631
Net Profit
$133,044
$197,530
$243,074
14%
18%
19%
Income Taxes
Net Profit / Sales
18
GARRETT'S BIKE SHOP
Projected Balance Sheet

FY2016
FY2017
FY2018
$146,696
$297,438
$508,550
$20,442
$25,002
$27,386
$160,945
$199,820
$213,470
$0
$0
$0
$328,083
$522,260
$749,406
Long-Term Assets
$26,200
$26,200
$26,200
Accumulated Depreciation
($1,131)
($3,038)
($4,944)
Total Long-Term Assets
$25,069
$23,162
$21,256
$353,152
$545,422
$770,662
Accounts Payable
$62,458
$73,775
$77,144
Income Taxes Payable
$23,478
$34,857
$42,896
$7,903
$7,630
$8,068
$27,677
$29,679
$31,824
$121,516
$145,941
$159,932
Long-Term Debt
$98,594
$68,915
$37,091
Total Liabilities
$220,110
$214,856
$197,023
$133,042
$330,566
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Total Assets
Sales Taxes Payable

Short-Term Debt
Prepaid Revenue
Total Current Liabilities
Paid-in Capital
Retained Earnings
Earnings
$133,042
$197,524
$243,073
Total Owner's Equity
$133,042
$330,566
$573,639
Total Liabilities & Equity
$353,152
$545,422
$770,662
19
GARRETT'S BIKE SHOP
Projected Cash Flow Statement

FY2016
FY2017
FY2018
$133,044
$197,530
$243,074
$11,131
$1,907
$1,906
($20,440)
($4,559)
($2,382)
($160,945)
($38,875)
($13,650)
Change in Accounts Payable
$62,459
$11,319
$3,372
Change in Income Tax Payable
$23,478
$11,379
$8,039
$7,903
($273)
$438
$56,630
$178,428
$240,797
Net Cash Flow from Operations

Net Profit
Change in Accounts Receivable
Change in Inventory
Change in Sales Tax Payable

Change in Prepaid Revenue
Investing & Financing
Assets Purchased or Sold
($36,200)
Investments Received
Change in Long-Term Debt
$98,594
($29,679)
($31,824)
Change in Short-Term Debt
$27,677
$2,002
$2,145
$90,071
($27,677)
($29,679)
($5)
$146,687
$297,432
Net Change in Cash
$146,701
$150,751
$211,118
Cash at End of Period
$146,696
$297,438
$508,550
Dividends & Distributions

Net Cash Flow from Investing &
Financing
Cash at Beginning of Period
20
GARRETT'S BIKE SHOP
Appendix
Profit and Loss Statement
Profit and Loss Statement (With Monthly Detail)
FY2016
Oct '15
Nov '15
Dec '15
Jan '16
Feb '16
Mar '16
Apr '16
May '16
Jun '16
Jul '16
Aug '16
Sep '16
Revenue
$69,800
$72,900
$75,000
$74,500
$79,400
$78,200
$82,000
$79,200
$77,000
$78,300
$79,500
$79,100
Direct Costs
$26,845
$27,524
$28,199
$27,988
$30,050
$29,838
$30,900
$30,086
$28,930
$29,521
$29,801
$29,579
$42,955
$45,376
$46,801
$46,512
$49,350
$48,362
$51,100
$49,114
$48,070
$48,779
$49,699
$49,521
62%
62%
62%
62%
62%
62%
62%
62%
62%
62%
63%
63%
Gross Margin
Gross
Margin %
Operating
Expenses
Salary
$12,948
$12,948
$12,948
$12,948
$12,951
$12,951
$12,951
$12,951
$12,951
$12,951
$12,951
$12,951
Employee
Related
Expenses
$3,237
$3,237
$3,237
$3,237
$3,238
$3,238
$3,238
$3,238
$3,238
$3,238
$3,238
$3,238
Insurance
$355
$355
$355
$355
$355
$355
$355
$355
$355
$355
$355
$355
Leased
Equipment
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
Marketing
$6,980
$7,290
$7,500
$7,450
$7,940
$7,820
$8,200
$7,920
$7,700
$7,830
$7,950
$7,910
Lease
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
Utilities
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
Office
Expenses
$3,490
$3,645
$3,750
$3,725
$3,970
$3,910
$4,100
$3,960
$3,850
$3,915
$3,975
$3,955
Expense from
Other Current
Assets
$1,667
$1,666
$1,667
$1,667
$1,666
$1,667
$33,827
$34,291
$34,607
$34,532
$35,270
$35,091
$33,994
$33,574
$33,244
$33,439
$33,619
$33,559
Total
Operating
Expenses
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with
third parties without the express written consent of the plan author.
21
GARRETT'S BIKE SHOP
Operating
Income
$9,128
Interest Incurred
$11,085
$12,194
$11,980
$14,080
$13,271
$17,106
$15,540
$14,826
$15,340
$16,080
$15,962
$875
$863
$850
$838
$826
$813
$801
$788
$775
$762
$750
$139
$139
$139
$139
$138
$139
$139
$159
Depreciation
and
Amortization
Income Taxes
$1,369
$1,532
$1,699
$1,670
$1,965
$1,846
$2,423
$2,190
$2,085
$2,164
$2,277
$2,258
Total
Expenses
$62,041
$64,222
$65,368
$65,040
$68,262
$67,740
$68,269
$66,790
$65,185
$66,038
$66,598
$66,305
Net Profit
$7,759
$8,678
$9,632
$9,460
$11,138
$10,460
$13,731
$12,410
$11,815
$12,262
$12,902
$12,795
11%
12%
13%
13%
14%
13%
17%
16%
15%
16%
16%
16%
Net Profit /
Sales
22
GARRETT'S BIKE SHOP
FY2017
Oct '16
Nov '16
Dec '16
Jan '17
Feb '17
Mar '17
Apr '17
May '17
Jun '17
Jul '17
Aug '17
Sep '17
Revenue
$80,724
$79,424
$85,324
$88,324
$91,225
$94,025
$95,525
$95,025
$96,026
$95,726
$95,726
$97,526
Direct Costs
$30,649
$29,249
$32,199
$33,699
$35,149
$36,549
$36,649
$37,049
$37,549
$37,399
$37,399
$38,299
$50,075
$50,175
$53,125
$54,625
$56,076
$57,476
$58,876
$57,976
$58,477
$58,327
$58,327
$59,227
62%
63%
62%
62%
61%
61%
62%
61%
61%
61%
61%
61%
$13,349
$13,349
$13,349
$13,349
$13,351
$13,351
$13,352
$13,352
$13,352
$13,352
$13,352
$13,352
Employee
Related
Expenses
$3,337
$3,337
$3,337
$3,337
$3,338
$3,338
$3,338
$3,338
$3,338
$3,338
$3,338
$3,338
Insurance
$355
$355
$355
$355
$355
$355
$355
$355
$355
$355
$355
$355
Leased
Equipment
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
Marketing
$8,072
$7,942
$8,532
$8,832
$9,123
$9,403
$9,553
$9,503
$9,603
$9,573
$9,573
$9,753
Lease
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$4,036
$3,971
$4,266
$4,416
$4,561
$4,701
$4,776
$4,751
$4,801
$4,786
$4,786
$4,876
Total
Operating
Expenses
$34,299
$34,104
$34,989
$35,439
$35,878
$36,298
$36,524
$36,449
$36,599
$36,554
$36,554
$36,824
Operating
Income
$15,776
$16,071
$18,136
$19,186
$20,198
$21,178
$22,352
$21,527
$21,878
$21,773
$21,773
$22,403
Interest Incurred
$737
$724
$710
$697
$684
$671
$657
$644
$630
$617
$603
$589
Depreciation
and
Amortization
$159
$159
$159
$159
$159
$158
$159
$159
$159
$159
$159
$159
$2,232
$2,278
$2,590
$2,750
$2,903
$3,052
$3,231
$3,108
$3,164
$3,149
$3,152
$3,248
$68,076
$66,514
$70,647
$72,744
$74,773
$76,728
$77,220
$77,409
$78,101
$77,878
$77,867
$79,119
Gross Margin
Gross
Margin %
Operating
Expenses
Salary
Utilities
Office
Expenses
Expense from
Other Current
Assets
Income Taxes
Total
Expenses
23
GARRETT'S BIKE SHOP
Net Profit
Net Profit /
Sales
$12,648
$12,910
$14,677
$15,580
$16,452
$17,297
$18,305
$17,616
$17,925
$17,848
$17,859
$18,407
16%
16%
17%
18%
18%
18%
19%
19%
19%
19%
19%
19%
24
GARRETT'S BIKE SHOP
FY2018
Oct '17
Nov '17
Dec '17
Jan '18
Feb '18
Mar '18
Apr '18
May '18
Jun '18
Jul '18
Aug '18
Sep '18
$102,641
$94,141
$101,241
$105,441
$103,942
$103,342
$103,542
$105,442
$105,442
$108,543
$108,044
$106,944
$40,544
$36,294
$39,844
$41,944
$41,194
$40,894
$40,994
$41,944
$41,944
$43,494
$43,244
$42,694
$62,097
$57,847
$61,397
$63,497
$62,748
$62,448
$62,548
$63,498
$63,498
$65,049
$64,800
$64,250
60%
61%
61%
60%
60%
60%
60%
60%
60%
60%
60%
60%
$13,763
$13,764
$13,764
$13,764
$13,764
$13,764
$13,764
$13,767
$13,767
$13,767
$13,767
$13,767
Employee
Related
Expenses
$3,441
$3,441
$3,441
$3,441
$3,441
$3,441
$3,441
$3,442
$3,442
$3,442
$3,442
$3,442
Insurance
$355
$355
$355
$355
$355
$355
$355
$355
$355
$355
$355
$355
Leased
Equipment
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$10,264
$9,414
$10,124
$10,544
$10,394
$10,334
$10,354
$10,544
$10,544
$10,854
$10,804
$10,694
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$5,132
$4,707
$5,062
$5,272
$5,197
$5,167
$5,177
$5,272
$5,272
$5,427
$5,402
$5,347
Total
Operating
Expenses
$38,105
$36,831
$37,896
$38,526
$38,301
$38,211
$38,241
$38,530
$38,530
$38,995
$38,920
$38,755
Operating
Income
$23,992
$21,016
$23,501
$24,971
$24,447
$24,237
$24,307
$24,968
$24,968
$26,054
$25,880
$25,495
Interest Incurred
$575
$561
$547
$533
$519
$504
$490
$476
$461
$446
$432
$417
Depreciation
and
Amortization
$159
$159
$158
$159
$159
$159
$159
$159
$159
$159
$159
$158
$3,489
$3,044
$3,420
$3,642
$3,565
$3,536
$3,549
$3,650
$3,652
$3,817
$3,794
$3,738
$82,872
$76,889
$81,865
$84,804
$83,738
$83,304
$83,433
$84,759
$84,746
$86,911
$86,549
$85,762
Revenue
Direct Costs
Gross Margin
Gross
Margin %
Operating
Expenses
Salary
Marketing
Lease
Utilities
Office
Expenses
Expense from
Other Current
Assets
Income Taxes
Total
Expenses
25
GARRETT'S BIKE SHOP
Net Profit
Net Profit /
Sales
$19,769
$17,252
$19,376
$20,637
$20,204
$20,038
$20,109
$20,683
$20,696
$21,632
$21,495
$21,182
19%
18%
19%
20%
19%
19%
19%
20%
20%
20%
20%
20%
26
GARRETT'S BIKE SHOP
FY2016
FY2017
FY2018
Revenue
$924,900
$1,094,600
$1,248,705
Direct Costs
$349,261
$421,830
$495,024
$575,639
$672,770
$753,681
62%
61%
60%
$155,400
$160,210
$165,182
Gross Margin
Gross Margin %
Operating Expenses
Salary
Employee Related Expenses
$38,850
$40,053
$41,296
Insurance
$4,260
$4,260
$4,260
Leased Equipment
$1,800
$1,800
$1,800
Marketing
$92,490
$109,460
$124,871
Lease
$56,400
$56,400
$56,400
Utilities
$3,600
$3,600
$3,600
Office Expenses
$46,245
$54,730
$62,435
Expense from Other Current Assets
$10,000
Total Operating Expenses
$409,045
$430,513
$459,844
Operating Income
$166,594
$242,257
$293,837
$8,941
$7,963
$5,961
Interest Incurred
$1,131
$1,907
$1,906
$23,478
$34,857
$42,896
Total Expenses
$791,856
$897,070
$1,005,631
Net Profit
$133,044
$197,530
$243,074
14%
18%
19%
Income Taxes
Net Profit / Sales
27
GARRETT'S BIKE SHOP
Balance Sheet
Balance Sheet (With Monthly Detail)
FY2016
Cash
Accounts
Receivable
Inventory
Other Current
Assets
Total
Current
Assets
Oct '15
Nov '15
Dec '15
Jan '16
Feb '16
Mar '16
Apr '16
May '16
Jun '16
Jul '16
Aug '16
Sep '16
$140,508
$111,703
$66,598
$70,736
$60,883
$76,259
$86,403
$102,460
$115,843
$121,781
$135,908
$146,696
$17,993
$18,796
$19,373
$19,221
$20,481
$20,156
$21,187
$20,462
$19,829
$20,212
$20,523
$20,442
$143,599
$146,975
$148,862
$149,804
$149,275
$149,238
$147,917
$148,480
$148,799
$151,477
$155,375
$160,945
$8,333
$6,667
$5,000
$3,333
$1,667
$0
$0
$0
$0
$0
$0
$0
$310,433
$284,141
$239,833
$243,094
$232,306
$245,653
$255,507
$271,402
$284,471
$293,470
$311,806
$328,083
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$26,200
($139)
($278)
($417)
($556)
($694)
($833)
($972)
($1,131)
$24,861
$24,722
$24,583
$24,444
$24,306
$24,167
$24,028
$25,069
Long-Term
Assets
Accumulated
Depreciation
Total LongTerm Assets

Total Assets
$310,433
$284,141
$239,833
$243,094
$257,167
$270,375
$280,090
$295,846
$308,777
$317,637
$335,834
$353,152
$149,135
$112,439
$56,408
$55,223
$55,791
$56,401
$56,718
$57,376
$56,251
$58,074
$60,675
$62,458
Income Taxes
Payable
$1,369
$2,901
$4,600
$6,270
$8,235
$10,081
$12,504
$14,694
$16,779
$18,943
$21,220
$23,478
Sales Taxes
Payable
$2,170
$4,459
$6,958
$2,394
$4,928
$7,364
$2,765
$5,432
$7,770
$2,576
$5,201
$7,903
Short-Term
Debt
$25,962
$26,113
$26,266
$26,419
$26,573
$26,728
$26,884
$27,041
$27,199
$27,357
$27,516
$27,677
$178,636
$145,912
$94,232
$90,306
$95,527
$100,574
$98,871
$104,543
$107,999
$106,950
$114,612
$121,516
$124,038
$121,792
$119,532
$117,259
$114,973
$112,674
$110,361
$108,035
$105,695
$103,342
$100,975
$98,594
Accounts
Payable
Prepaid
Revenue
Total
Current
Liabilities
Long-Term Debt
28
GARRETT'S BIKE SHOP
Total
Liabilities
$302,674
$267,704
$213,764
$207,565
$210,500
$213,248
$209,232
$212,578
$213,694
$210,292
$215,587
$220,110
$7,759
$16,437
$26,069
$35,529
$46,667
$57,127
$70,858
$83,268
$95,083
$107,345
$120,247
$133,042
$7,759
$16,437
$26,069
$35,529
$46,667
$57,127
$70,858
$83,268
$95,083
$107,345
$120,247
$133,042
$310,433
$284,141
$239,833
$243,094
$257,167
$270,375
$280,090
$295,846
$308,777
$317,637
$335,834
$353,152
Paid-in Capital
Retained
Earnings
Earnings
Total
Owner's
Equity
Total
Liabilities &
Equity
29
GARRETT'S BIKE SHOP
FY2017
Oct '16
Nov '16
Dec '16
Jan '17
Feb '17
Mar '17
Apr '17
May '17
Jun '17
Jul '17
Aug '17
Sep '17
$149,668
$158,794
$147,690
$155,599
$173,005
$192,656
$206,062
$226,001
$246,045
$258,466
$278,350
$297,438
$20,781
$20,481
$21,956
$22,705
$23,429
$24,129
$24,527
$24,379
$24,630
$24,553
$24,553
$25,002
$166,845
$174,245
$179,095
$182,945
$185,195
$186,045
$187,695
$191,190
$189,935
$192,380
$196,925
$199,820
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$337,294
$353,520
$348,741
$361,249
$381,629
$402,830
$418,284
$441,570
$460,610
$475,399
$499,828
$522,260
Long-Term
Assets
$26,200
$26,200
$26,200
$26,200
$26,200
$26,200
$26,200
$26,200
$26,200
$26,200
$26,200
$26,200
Accumulated
Depreciation
($1,290)
($1,449)
($1,608)
($1,767)
($1,926)
($2,084)
($2,243)
($2,402)
($2,561)
($2,720)
($2,879)
($3,038)
$24,910
$24,751
$24,592
$24,433
$24,274
$24,116
$23,957
$23,798
$23,639
$23,480
$23,321
$23,162
Total Assets
$362,204
$378,271
$373,333
$385,682
$405,903
$426,946
$442,241
$465,368
$484,249
$498,879
$523,149
$545,422
Accounts
Payable
$64,328
$64,909
$65,899
$67,173
$67,781
$68,231
$69,299
$71,485
$69,073
$70,237
$73,319
$73,775
Income Taxes
Payable
$25,710
$27,988
$7,100
$9,850
$12,753
$15,805
$19,036
$22,144
$25,308
$28,457
$31,609
$34,857
Sales Taxes
Payable
$2,438
$4,982
$7,525
$2,543
$5,087
$7,630
$2,634
$5,177
$7,721
$2,543
$5,087
$7,630
Short-Term
Debt
$27,839
$28,002
$28,165
$28,329
$28,494
$28,661
$28,828
$28,996
$29,165
$29,336
$29,507
$29,679
$120,315
$125,881
$108,689
$107,895
$114,115
$120,327
$119,797
$127,802
$131,267
$130,573
$139,522
$145,941
$96,199
$93,790
$91,367
$88,930
$86,479
$84,013
$81,533
$79,039
$76,530
$74,006
$71,468
$68,915
$216,514
$219,671
$200,056
$196,825
$200,594
$204,340
$201,330
$206,841
$207,797
$204,579
$210,990
$214,856
$133,042
$133,042
$133,042
$133,042
$133,042
$133,042
$133,042
$133,042
$133,042
$133,042
$133,042
$133,042
Cash
Accounts
Receivable
Inventory
Other Current
Assets
Total
Current
Assets
Prepaid
Revenue
Total
Current
Liabilities
Long-Term Debt
Total
Liabilities
Paid-in Capital
Retained
Earnings
30
GARRETT'S BIKE SHOP
Earnings
$12,648
$25,558
$40,235
$55,815
$72,267
$89,564
$107,869
$125,485
$143,410
$161,258
$179,117
$197,524
Total
Owner's
Equity
$145,690
$158,600
$173,277
$188,857
$205,309
$222,606
$240,911
$258,527
$276,452
$294,300
$312,159
$330,566
Total
Liabilities &
Equity
$362,204
$378,271
$373,333
$385,682
$405,903
$426,946
$442,241
$465,368
$484,249
$498,879
$523,149
$545,422
31
GARRETT'S BIKE SHOP
FY2018
Oct '17
Nov '17
Dec '17
Jan '18
Feb '18
Mar '18
Apr '18
May '18
Jun '18
Jul '18
Aug '18
Sep '18
$312,036
$329,444
$315,074
$331,958
$355,513
$377,527
$391,183
$414,665
$438,717
$456,822
$483,222
$508,550
$26,317
$24,191
$25,966
$27,015
$26,639
$26,489
$26,539
$27,014
$27,013
$27,787
$27,662
$27,386
$200,170
$204,870
$206,970
$206,970
$209,270
$211,620
$213,320
$214,070
$214,820
$214,020
$213,470
$213,470
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$538,523
$558,505
$548,010
$565,943
$591,422
$615,636
$631,042
$655,749
$680,550
$698,629
$724,354
$749,406
Long-Term
Assets
$26,200
$26,200
$26,200
$26,200
$26,200
$26,200
$26,200
$26,200
$26,200
$26,200
$26,200
$26,200
Accumulated
Depreciation
($3,197)
($3,356)
($3,514)
($3,673)
($3,832)
($3,991)
($4,150)
($4,309)
($4,468)
($4,627)
($4,786)
($4,944)
$23,003
$22,844
$22,686
$22,527
$22,368
$22,209
$22,050
$21,891
$21,732
$21,573
$21,414
$21,256
Total Assets
$561,526
$581,349
$570,696
$588,470
$613,790
$637,845
$653,092
$677,640
$702,282
$720,202
$745,768
$770,662
Accounts
Payable
$73,957
$73,204
$74,346
$75,656
$76,968
$77,226
$76,674
$76,694
$76,808
$77,180
$77,306
$77,144
Income Taxes
Payable
$38,346
$41,390
$9,953
$13,595
$17,160
$20,696
$24,245
$27,895
$31,547
$35,364
$39,158
$42,896
Sales Taxes
Payable
$2,689
$5,378
$8,067
$2,689
$5,379
$8,068
$2,689
$5,378
$8,067
$2,690
$5,379
$8,068
Short-Term
Debt
$29,852
$30,026
$30,201
$30,377
$30,554
$30,732
$30,911
$31,092
$31,273
$31,455
$31,639
$31,824
$144,844
$149,998
$122,567
$122,317
$130,061
$136,722
$134,519
$141,059
$147,695
$146,689
$153,482
$159,932
$66,347
$63,764
$61,166
$58,553
$55,925
$53,281
$50,622
$47,947
$45,257
$42,551
$39,829
$37,091
$211,191
$213,762
$183,733
$180,870
$185,986
$190,003
$185,141
$189,006
$192,952
$189,240
$193,311
$197,023
$330,566
$330,566
$330,566
$330,566
$330,566
$330,566
$330,566
$330,566
$330,566
$330,566
$330,566
$330,566
Cash
Accounts
Receivable
Inventory
Other Current
Assets
Total
Current
Assets
Prepaid
Revenue
Total
Current
Liabilities
Long-Term Debt
Total
Liabilities
Paid-in Capital
Retained
Earnings
32
GARRETT'S BIKE SHOP
Earnings
$19,769
$37,021
$56,397
$77,034
$97,238
$117,276
$137,385
$158,068
$178,764
$200,396
$221,891
$243,073
Total
Owner's
Equity
$350,335
$367,587
$386,963
$407,600
$427,804
$447,842
$467,951
$488,634
$509,330
$530,962
$552,457
$573,639
Total
Liabilities &
Equity
$561,526
$581,349
$570,696
$588,470
$613,790
$637,845
$653,092
$677,640
$702,282
$720,202
$745,768
$770,662
33
GARRETT'S BIKE SHOP
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets

Long-Term Assets
Accumulated Depreciation
FY2016
FY2017
FY2018
$146,696
$297,438
$508,550
$20,442
$25,002
$27,386
$160,945
$199,820
$213,470
$0
$0
$0
$328,083
$522,260
$749,406
$26,200
$26,200
$26,200
($1,131)
($3,038)
($4,944)
$25,069
$23,162
$21,256
$353,152
$545,422
$770,662
Accounts Payable
$62,458
$73,775
$77,144
Income Taxes Payable
$23,478
$34,857
$42,896
$7,903
$7,630
$8,068
$27,677
$29,679
$31,824
$121,516
$145,941
$159,932
$98,594
$68,915
$37,091
$220,110
$214,856
$197,023
$133,042
$330,566
Total Long-Term Assets

Total Assets
Sales Taxes Payable

Short-Term Debt
Prepaid Revenue
Total Current Liabilities

Long-Term Debt
Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
$133,042
$197,524
$243,073
Total Owner's Equity
$133,042
$330,566
$573,639
Total Liabilities & Equity
$353,152
$545,422
$770,662
34
GARRETT'S BIKE SHOP
Cash Flow Statement

Cash Flow Statement (With Monthly Detail)
FY2016
Oct '15
Nov '15
Dec '15
Jan '16
Feb '16
Mar '16
Apr '16
May '16
Jun '16
Jul '16
Aug '16
Sep '16
Net Profit
$7,759
$8,678
$9,632
$9,460
$11,138
$10,460
$13,731
$12,410
$11,815
$12,262
$12,902
$12,795
Depreciation
and
Amortization
$1,667
$1,666
$1,667
$1,667
$1,805
$1,806
$139
$139
$138
$139
$139
$159
Change in
Accounts
Receivable
($17,993)
($803)
($577)
$152
($1,260)
$325
($1,031)
$725
$633
($383)
($311)
$81
Change in
Inventory
($143,599)
($3,376)
($1,887)
($942)
$529
$37
$1,321
($563)
($319)
($2,678)
($3,898)
($5,570)
Change in
Accounts
Payable
$149,135
($36,696)
($56,031)
($1,185)
$568
$610
$317
$658
($1,125)
$1,823
$2,601
$1,783
Change in
Income Tax
Payable
$1,369
$1,532
$1,699
$1,670
$1,965
$1,846
$2,423
$2,190
$2,085
$2,164
$2,277
$2,258
Change in
Sales Tax
Payable
$2,170
$2,289
$2,499
($4,564)
$2,534
$2,436
($4,599)
$2,667
$2,338
($5,194)
$2,625
$2,702
$508
($26,710)
($42,998)
$6,258
$17,279
$17,520
$12,301
$18,226
$15,565
$8,133
$16,335
$14,208
Net Cash
Flow from
Operations
Change in
Prepaid
Revenue
Net Cash
Flow from
Operations
Investing &
Financing
Assets
Purchased or
Sold
($10,000)
($25,000)
($1,200)
Investments
Received
35
GARRETT'S BIKE SHOP
Change in
Long-Term
Debt
$124,038
($2,246)
($2,260)
($2,273)
($2,286)
($2,299)
($2,313)
($2,326)
($2,340)
($2,353)
($2,367)
($2,381)
Change in
Short-Term
Debt
$25,962
$151
$153
$153
$154
$155
$156
$157
$158
$158
$159
$161
$140,000
($2,095)
($2,107)
($2,120)
($27,132)
($2,144)
($2,157)
($2,169)
($2,182)
($2,195)
($2,208)
($3,420)
$0
$140,508
$111,703
$66,598
$70,736
$60,883
$76,259
$86,403
$102,460
$115,843
$121,781
$135,908
$140,508
($28,805)
($45,105)
$4,138
($9,853)
$15,376
$10,144
$16,057
$13,383
$5,938
$14,127
$10,788
$140,508
$111,703
$66,598
$70,736
$60,883
$76,259
$86,403
$102,460
$115,843
$121,781
$135,908
$146,696
Dividends &
Distributions
Net Cash
Flow from
Investing &
Financing
Cash at
Beginning of
Period
Net Change in
Cash
Cash at End
of Period
36
GARRETT'S BIKE SHOP
FY2017
Oct '16
Nov '16
Dec '16
Jan '17
Feb '17
Mar '17
Apr '17
May '17
Jun '17
Jul '17
Aug '17
Sep '17
$12,648
$12,910
$14,677
$15,580
$16,452
$17,297
$18,305
$17,616
$17,925
$17,848
$17,859
$18,407
$159
$159
$159
$159
$159
$158
$159
$159
$159
$159
$159
$159
($339)
$300
($1,475)
($749)
($724)
($700)
($398)
$148
($251)
$77
$0
($449)
Change in
Inventory
($5,900)
($7,400)
($4,850)
($3,850)
($2,250)
($850)
($1,650)
($3,495)
$1,255
($2,445)
($4,545)
($2,895)
Change in
Accounts
Payable
$1,870
$581
$990
$1,274
$608
$450
$1,068
$2,186
($2,412)
$1,164
$3,082
$456
Change in
Income Tax
Payable
$2,232
$2,278
($20,888)
$2,750
$2,903
$3,052
$3,231
$3,108
$3,164
$3,149
$3,152
$3,248
($5,465)
$2,544
$2,543
($4,982)
$2,544
$2,543
($4,996)
$2,543
$2,544
($5,178)
$2,544
$2,543
$5,205
$11,372
($8,844)
$10,182
$19,692
$21,950
$15,719
$22,265
$22,384
$14,774
$22,251
$21,469
Change in
Long-Term
Debt
($2,395)
($2,409)
($2,423)
($2,437)
($2,451)
($2,466)
($2,480)
($2,494)
($2,509)
($2,524)
($2,538)
($2,553)
Change in
Short-Term
Debt
$162
$163
$163
$164
$165
$167
$167
$168
$169
$171
$171
$172
Net Cash
Flow from
Operations
Net Profit
Depreciation
and
Amortization
Change in
Accounts
Receivable
Change in
Sales Tax
Payable
Change in
Prepaid
Revenue
Net Cash
Flow from
Operations
Investing &
Financing
Assets
Purchased or
Sold
Investments
Received
Dividends &
Distributions
37
GARRETT'S BIKE SHOP
Net Cash
Flow from
Investing &
Financing
($2,233)
($2,246)
($2,260)
($2,273)
($2,286)
($2,299)
($2,313)
($2,326)
($2,340)
($2,353)
($2,367)
($2,381)
Cash at
Beginning of
Period
$146,696
$149,668
$158,794
$147,690
$155,599
$173,005
$192,656
$206,062
$226,001
$246,045
$258,466
$278,350
$2,972
$9,126
($11,104)
$7,909
$17,406
$19,651
$13,406
$19,939
$20,044
$12,421
$19,884
$19,088
$149,668
$158,794
$147,690
$155,599
$173,005
$192,656
$206,062
$226,001
$246,045
$258,466
$278,350
$297,438
Net Change in
Cash
Cash at End
of Period
38
GARRETT'S BIKE SHOP
FY2018
Oct '17
Nov '17
Dec '17
Jan '18
Feb '18
Mar '18
Apr '18
May '18
Jun '18
Jul '18
Aug '18
Sep '18
$19,769
$17,252
$19,376
$20,637
$20,204
$20,038
$20,109
$20,683
$20,696
$21,632
$21,495
$21,182
$159
$159
$158
$159
$159
$159
$159
$159
$159
$159
$159
$158
($1,315)
$2,126
($1,775)
($1,049)
$376
$150
($50)
($475)
$1
($774)
$125
$276
Change in
Inventory
($350)
($4,700)
($2,100)
$0
($2,300)
($2,350)
($1,700)
($750)
($750)
$800
$550
$0
Change in
Accounts
Payable
$182
($753)
$1,142
$1,310
$1,312
$258
($552)
$20
$114
$372
$126
($162)
$3,489
$3,044
($31,437)
$3,642
$3,565
$3,536
$3,549
$3,650
$3,652
$3,817
$3,794
$3,738
($4,941)
$2,689
$2,689
($5,378)
$2,690
$2,689
($5,379)
$2,689
$2,689
($5,377)
$2,689
$2,689
$16,993
$19,817
($11,947)
$19,321
$26,006
$24,480
$16,136
$25,976
$26,561
$20,629
$28,938
$27,881
Change in
Long-Term
Debt
($2,568)
($2,583)
($2,598)
($2,613)
($2,628)
($2,644)
($2,659)
($2,675)
($2,690)
($2,706)
($2,722)
($2,738)
Change in
Short-Term
Debt
$173
$174
$175
$176
$177
$178
$179
$181
$181
$182
$184
$185
Net Cash
Flow from
Operations
Net Profit
Depreciation
and
Amortization
Change in
Accounts
Receivable
Change in
Income Tax
Payable
Change in
Sales Tax
Payable
Change in
Prepaid
Revenue
Net Cash
Flow from
Operations
Investing &
Financing
Assets
Purchased or
Sold
Investments
Received
Dividends &
Distributions
39
GARRETT'S BIKE SHOP
Net Cash
Flow from
Investing &
Financing
($2,395)
($2,409)
($2,423)
($2,437)
($2,451)
($2,466)
($2,480)
($2,494)
($2,509)
($2,524)
($2,538)
($2,553)
Cash at
Beginning of
Period
$297,438
$312,036
$329,444
$315,074
$331,958
$355,513
$377,527
$391,183
$414,665
$438,717
$456,822
$483,222
$14,598
$17,408
($14,370)
$16,884
$23,555
$22,014
$13,656
$23,482
$24,052
$18,105
$26,400
$25,328
$312,036
$329,444
$315,074
$331,958
$355,513
$377,527
$391,183
$414,665
$438,717
$456,822
$483,222
$508,550
Net Change in
Cash
Cash at End
of Period
40
GARRETT'S BIKE SHOP
FY2016
FY2017
FY2018
$133,044
$197,530
$243,074
$11,131
$1,907
$1,906
($20,440)
($4,559)
($2,382)

Net Profit
Change in Accounts Receivable
Change in Inventory
($160,945)
($38,875)
($13,650)
Change in Accounts Payable
$62,459
$11,319
$3,372
Change in Income Tax Payable
$23,478
$11,379
$8,039
$7,903
($273)
$438
$56,630
$178,428
$240,797
Change in Sales Tax Payable

Change in Prepaid Revenue

Investing & Financing
Assets Purchased or Sold
($36,200)
Investments Received
Change in Long-Term Debt
$98,594
($29,679)
($31,824)
Change in Short-Term Debt
$27,677
$2,002
$2,145
$90,071
($27,677)
($29,679)
($5)
$146,687
$297,432
$146,701
$150,751
$211,118
$146,696
$297,438
$508,550
Dividends & Distributions
Net Cash Flow from Investing & Financing

Cash at Beginning of Period
Net Change in Cash
Cash at End of Period

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CONFIDENTIAL

GARRETT'S BIKE SHOP

GARRETT'S BIKE SHOP

Free 30-day/100-mile tune up with every new bike sold.

GARRETT'S BIKE SHOP

Installation of all accessories.

Authorized warranty repairs on the bikes.

Custom wheel building.

Frameset repairs by outsourcing to Via Porco custom frame builders.

The university students are our main target

They are mostly undergraduates, so

The lack of parking in the university area

They want convenience for sales and service.

GARRETT'S BIKE SHOP

Local bike shops

GARRETT'S BIKE SHOP

GARRETT'S BIKE SHOP

Quality bikes at several price points.

Plenty of replacement components and service parts.

Friendly personal relationships between cyclists and shop staff.

GARRETT'S BIKE SHOP

One local multi-sport store at the local megamall

Three local, including the oldest shop in town.

Several garage mechanics offering service only.

GARRETT'S BIKE SHOP

Bicycle manufacturers - continuation of dating programs and financial agreements.

Accessory suppliers - continuation of financial agreements.

HooDaThunkIt - website design and maintenance, search engine placement.

GARRETT'S BIKE SHOP

GARRETT'S BIKE SHOP

Flat Tire -- $7.50

Install Fenders -- $10.00

Brake Adjustment -- $25.00

GARRETT'S BIKE SHOP

GARRETT'S BIKE SHOP

Milestones & Metrics

Create New Inventory Plan

April 29, 2016

Open Social Media Accounts

May 02, 2016

Sign Lease for Downtown Showroom

May 06, 2016

June 06, 2016

GARRETT'S BIKE SHOP

GARRETT'S BIKE SHOP

Tom McKey, Advisor

Han Delbar, Current Owner

Order Out of Chaos, our full-cycle bookkeeping service

Continental Shelf Bank

The Great Outdoors

GARRETT'S BIKE SHOP

Additionally, we have some special buys available for June graduation.

Sale of used bicycles taken in on trade.

Repair classes taught at the University Outdoor Center, once a term.

GARRETT'S BIKE SHOP

GARRETT'S BIKE SHOP

Net Profit (or Loss) by Year

GARRETT'S BIKE SHOP

Expense from Other Current Assets

Total Operating Expenses

Depreciation and Amortization

Net Profit / Sales

GARRETT'S BIKE SHOP

Projected Balance Sheet

Garrett's Bikeshop Updated

Garrett's Bikeshop Updated