You are on page 1of 36

Thanks for downloading a sample plan

from Bplans.com
A sample plan is a great way to get started, but you can’t just print
this plan out and turn it into the bank. You’re still going to have to put
in all your own information and do all of your own financial forecasts.
With LivePlan, you can easily use this sample as inspiration and create
your own plan, complete with financial tables and graphs. You’ll also
be able to:



Save time with linked financial tables (the formulas are built in,
so you don’t have to do the calculations!)
Benefit from tons of help, advice, and resources.
Present your plan with confidence, with automatic charts and
graphs corresponding to your financial data.
Work on your plan anywhere, on any computer.

“For 20 dollars I ended up getting a quarter of a million dollars of
funding. That’s worth it!”
– Todd C. Tablegate
Click here to save 50% off the first month of LivePlan!

Cover Page

This sample business plan has been made available to users of Business Plan Pro®, business
planning software published by Palo Alto Software. Names, locations and numbers may have been
changed, and substantial portions of the original plan text may have been omitted to preserve
confidentiality and proprietary information.
You are welcome to use this plan as a starting point to create your own, but you do not have
permission to resell, reproduce, publish, distribute or even copy this plan as it exists here.
Requests for reprints, academic use, and other dissemination of this sample plan should be emailed
to the marketing department of Palo Alto Software at marketing@paloalto.com. For product
information visit our Website: www.paloalto.com or call: 1-800-229-7526.

Copyright © Palo Alto Software, Inc., 1995-2009 All rights reserved.

Legal Page
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by
_________________________ in this business plan is confidential; therefore, reader agrees not to
disclose it without the express written permission of _________________________.
It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means
and that any disclosure or use of same by reader, may cause serious harm or damage to
_________________________.
Upon request, this document is to be immediately returned to _________________________.
___________________
Signature
___________________
Name (typed or printed)
___________________
Date

This is a business plan. It does not imply an offering of securities.

....................................................0 Executive Summary..............................................................14 7.............8 5.........................................................................6 4...............................................................Table of Contents 1......................................................................18 Page 1 ..........................................................................0 Company Summary...............................................................................1 1..................................................10 Table: Sales Forecast.......................................................................................................................................................................0 Financial Plan...................17 Chart: Profit Monthly......................................................................................................................................3 Projected Profit and Loss............................................................................................................................................16 Chart: Break-even Analysis.............................................................................................................................................................2 Keys to Success........................................................3 Service Business Analysis............................................................................12 Chart: Milestones.............................................................2 Break-even Analysis................................................................2 1.....................................................................................................................................................7 4.....................................4 Milestones...............................................................................................7 4..............................................................................8 5...................3........................................................................15 Table: General Assumptions..............6 Table: Market Analysis................0 Management Summary........................................................4 Table: Start-up Funding..........................................................................................................................................................................................................................................................................................3 Mission...........................11 Chart: Sales by Year......................................................................................7 4.........................................................................1 Competitive Edge.........................................8 5.................................................................................................................0 Services...................................3 Table: Start-up.................................................................................5 Chart: Start-up......................1 Market Segmentation.................................................2 Chart: Highlights..............................................................................................................................13 6...............................................................................................................................0 Strategy and Implementation Summary......................................................................................................................13 6......................................................................................................................................6 4......................................................................................................................................................10 Chart: Sales Monthly...........................................................................................................................15 7.1 Sales Forecast................................................................................................................1 Personnel Plan..................................0 Market Analysis Summary............................................................2 Target Market Segment Strategy.................................................................................................................................................................................................................................................................................................................................1 Competition and Buying Patterns..1 Company Ownership..................1 Important Assumptions............................3 Sales Strategy................................................................3 2...................................................................................................9 5..............................................................................................................12 Table: Milestones..................................15 .......................11 5.................................................................................................9 5......................................................................................................6 3.....................................................................................................................3...............................16 Table: Break-even Analysis............................4 ....................................................................................................................................3 2.........................................................................16 7........1 Objectives............................7 Chart: Market Analysis (Pie)...............................................15 7..................................................................................................................................................13 Table: Personnel.....................................................................................................................................................................2 1....................17 Table: Profit and Loss.......................................................................2 Marketing Strategy.............................2 Start-up Summary..................................................................................................................................................................2 2..........

.................................................19 7.....................................1 .....22 Table: Balance Sheet...........................................................................................................................................................................................................................................................2 Table: General Assumptions........................................................23 Table: Ratios.................................6 Table: Balance Sheet..........................................................................................................................................................................................................................2 ......................................................................................................................................................................................................................................................................................................................................................................................................................3 Table: Profit and Loss.....................................................................................................22 ................................................5 Projected Balance Sheet..........................................................................................................3 .......................................22 7..............................................................................................................23 Table: Sales Forecast..................6 Business Ratios...........................................4 Projected Cash Flow...................................................................................................5 Table: Cash Flow..................19 Chart: Gross Margin Yearly........................................................................................................................................................................21 .........................................................................................................................................................................................................1 Table: Personnel..........................................................................................................20 Chart: Cash......................................................18 Chart: Gross Margin Monthly..................4 ...........................................................................................................................................................................................................................................................................................................................21 7.......20 Table: Cash Flow................................................................................................................................................................................................................................................................................................Table of Contents Chart: Profit Yearly........................................................................................................7 Page 2 ......................................................................................................................................................................................................................

Medicaid and other private insurance carriers. The initial office will be established in quality office space on Main Street in Neodesha. non-managing partner. The partnership will include a second. Kellene Walker currently manages this agency's operation there. which is the heart of Southeastern Kansas.Wheatland Health Services 1. The company plans on taking on debt in the form of a five-year loan. Wheatland Health Services will be managed by Beth Patzer and Kellene Walker. is a social worker and public administrator with prior experience in operating a social service agency. The other home health care agencies currently operating in our area do not offer services to all four of our target Counties. and due to the lack of interest the parent organization has demonstrated in this satellite agency. The primary founder. Elizabeth Patzer. owned by its principal investors and principal operators. MSW/PA. our Clinical Director.0 Executive Summary Wheatland Health Services offers a unique combination of premier home health care and community-based social services to Southeastern Kansas. WHS is incorporated as a partnership. we can become the home health care/social service agency of choice in Southeastern Kansas. Our plan includes Page 1 . Oklahoma. attorneys. who has been providing home health care services through another agency for the past three years. Sales estimates project healthy revenues in the first year and modest increases through year three. Neodesha is also home to a hospital facility and a renowned Wound Center. One is a satellite operation based out of a larger regional hospital in Bartlesville. Kansas. These patients are usually referred by other health care professionals such as physicians. Wheatland Health Services will be created as a Kansas Limited Liability Company based in Wilson County. The process for licensure and insurance certification has already been initiated and we are well on our way to meeting the regulations and guidelines for providing home health care and social services to patients in Southeastern Kansas. insurance companies and health care facilities. and has no plans for additional debt as growth will be financed mainly through cash flow. through the work of our Clinical Director. we believe that upon her transfer to Wheatland Health Services that agency will close its Wilson County operation. which will serve as referral bases for our agency. There are currently only three other home health care agencies that serve Southeastern Kansas. Market research indicates that there is a significant need for quality home health care and social services within this region and we believe that by employing competent and well-educated staff and providing them with organized and responsive management. Our agency has already developed an excellent reputation with many of these professionals. M. Medicaid and other insurance regulation so pricing is not a major factor of consideration. they also do not offer the unique blend of home health care and social services which Wheatland Health Services will be providing. Consumers of our services will be those individuals and families in need of home health care and/or social services. Our agency must be licensed by the State of Kansas and our services reimbursed by Medicare. Brad Patzer. All pricing will be set according to Medicare. who will help with initial start-up funding and retain a minority equity stake. and through the presentations we have made to the community via marketing tools and personal interactions.

000 $150. Wheatland Health Services strives to offer excellent and affordable home health care and community-based social services to individuals and families of Southeastern Kansas. hospitals.000 $0 Year 1 Year 2 Year 3 1. and adequate staffing Effective collaboration with other community professionals (physicians.000 $100.2 Keys to Success • • • Professional quality of services offered Reliability -. We encourage and support continued education of each service provider.1 Objectives • • • • 125 Home Health Care patients served by the end of first year.000 Gross Margin $250.000 $50. caring.000 $450.000 $400. and sufficient cash on-hand at start-up to prevent any problems with cash flow. Each staff member will meet the State of Kansas educational and training requirements for the services they provide.Wheatland Health Services assumptions of 100% sales on credit. and the communities we serve.being available through on-call. In turn. and other organizations) 1. Chart: Highlights Highlights $500. 12 Personal Injury Case Management Clients served by the end of first year.000 Sales $300. their families. 80% of Customer Satisfaction Surveys returned indicating satisfaction with services. our agency Page 2 . It is our goal to employ competent. Respectable gross sales by the end of first year. and well-trained individuals who are responsive to the needs of our patients. 1.3 Mission Our values are simple.000 Net Profit $200.000 $350.

as well as a five-year 8% loan which will be needed in order to cover start-up costs. trustworthy management and direction. Montgomery and Labette Counties . The Start-Up Table.Ed. M. Page 3 . an inviting work environment. indicates in detail those costs which include the following: • • • • • BUSINESS DEVELOPMENT RENTAL EXPENSE OFFICE EQUIPMENT OFFICE SUPPLIES NURSING SUPPLIES The table also demonstrates Assets needed for start-up and addresses potential funding sources which are to include cash investments made by each Owner.2 Start-up Summary Wheatland Health Services is in its start-up stage.S.all within a ninety mile radius of our offices: • • • • • Skilled Nursing Nursing Aide Social Work Occupational. Patzer. MSW/MPA and Marlon B. below.Wheatland Health Services will provide staff with competitive compensation. 2. Physical.0 Company Summary Wheatland Health Services is a new Home Health and Social Service agency in its start-up stages. and Speech Therapy Personal Injury Case Management 2. and knowledgeable. Wilson.1 Company Ownership Wheatland Health Services is a limited liability company owned and operated by Elizabeth G. Patzer. Our agency will be located in the heart of Southeastern Kansas and will provide the following services to patients and clients from Neodesha./M. 2. and consequently there are start-up costs and funding issues to address.

000.000 Page 4 .000 $0 $500 $300 $0 $500 $0 $0 $3.000 $400 $0 $250 $150 $26 $0 $0 $3.00 Workman's Comp Insurance Deposit Premises and Content Insurance Deposit *Assuming 25% down of $1200.500 $0 $48.Wheatland Health Services Table: Start-up Start-up Requirements Start-up Expenses BUSINESS DEVELOPMENT Attorney Fees .901 Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets $44.00 Contract Retainer with PT/OT/ST Inserted Row RENTAL EXPENSE Office Upgrades (Carpet and Paint) Deposit plus First *Assuming $200.599 $3.099 Total Requirements $70.00/Month Phone Set Up (Excluding Phones) Utilities Deposit Post Office Box Inserted Row OFFICE EQUIPMENT 2 Computers (Fully Loaded) 4-in-1 Printer/Fax/Copier/Scanner QuickBooks Pro Phones Pager Inserted Row OFFICE SUPPLIES Stationary Business Cards Brochures Other Misc. Office Supplies Computer NURSING SUPPLIES Total Start-up Expenses $0 $875 $100 $5.500 $21.000 $750 $300 $200 $50 $0 $0 $200 $150 $200 $450 $0 $2.Setting Up Limited Liability Company State of Kansas Home Health Agency License Medisoft Billing Program plus Support Professional Liability Insurance *Assuming 25% down of $12.000 $3.

599 $0 $44.000 $0 $0 $50.Wheatland Health Services Table: Start-up Funding Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required $21.099 Total Funding $70.000 Capital Planned Investment Elizabeth Patzer Investor Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital $20.500 $44.099 $70.901 $48.099 Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities $0 $50.000 $0 $0 $20.000 Page 5 .901) Total Capital and Liabilities $48.599 $48.901) ($1.000 ($21.000 Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets $3.

We also provide personal injury case management services which include assessment.typically in an older age bracket -. and physical therapy. rather than proceeding to a nursing home.0 Market Analysis Summary The consumer base for Wheatland Health Services (Home Health Care Services) will be patients referred by physicians. nursing aide.000 $35.000 $25. 4. in order to access needed community resources. The majority of these patients will be covered by Medicare with a smaller portion being insured by Kansas Medicaid or other private insurance carriers.0 Services Wheatland Health Services offers premier home health care that includes skilled nursing. planning.000 $0 Expenses Assets Investment Loans 3.000 $30. Page 6 . health care facilities and other health care professionals.000 $20.000 $40. social work. reporting and professional services (court testimony.000 $5. The consumer base for the Personal Injury Case Management component of our business will be those individuals who have been injured either on the job or in another type of accident. Our primary market segment includes those patients -.000 $10. 4. These referrals will come from attorneys seeking case management services for their clients or from insurance companies who are requesting assistance in mitigating the injuries and loss the client suffers.000 $45. speech therapy. These patients may also require other home health services. resource linkage.1 Market Segmentation The population base in Southeastern Kansas is aging. occupational therapy.Wheatland Health Services Chart: Start-up Start-up $50. and more individuals are opting to stay in their own homes longer and return home following hospitalization.who require health care services by home health nursing staff.). such as social work.000 $15. etc.

31% 12 137 16 154 21 173 27 194 35 218 30.e. Home health care and social services are typically utilized by individuals and families. with service referrals coming most often from other professionals (i.30% 30% 12.Medicaid and Private Insurance Patients PICM Patients Total CAGR Chart: Market Analysis (Pie) Market Analysis (Pie) HHC . etc. hospitals. attorneys.Medicare Patients HHC . Page 7 .Wheatland Health Services Our secondary market will be those individuals who have suffered a personal injury and require case management services to assist them in addressing medical. we will focus on those market segments where we know our services are most needed. 4.31% Growth HHC . Focusing on those market segments that require only home-based services will greatly decrease overhead.Medicaid and Private Insurance Patients PICM Patients 4. since additional office space will not be required.3 Service Business Analysis Wheatland Health Services is a combined Home Health Care and Social Service Agency serving a four-county region in Southeastern Kansas.). and employment issues. Table: Market Analysis Market Analysis Potential Customers Year 1 Year 2 Year 3 Year 4 Year 5 10% 10% 100 25 110 28 121 31 133 34 146 37 9. physicians.68% 12.Medicare Patients HHC . financial.2 Target Market Segment Strategy Because our agency specializes in home health care and community-based social services.92% 10.

Wheatland Health Services There are currently three other Home Health Agencies serving the same area. When pricing personal injury case management services. our Clinical Director. As our agency demonstrates outstanding patient care.0 Strategy and Implementation Summary Wheatland Health Services will focus on four counties within southeastern Kansas. attorneys and insurance companies who refer them to our services. with our more traditional home health care. Wheatland Health Services will also stand out in integrating community-based social services. especially when those recommendations come from their physicians. as most home health services are reimbursed by Medicare. This broader base will allow us to access additional clientele and payor bases. Pricing of personal injury case management services is a more important factor. and the regional physicians. Ms. rather than bidding low and then exceeding the anticipated total bid price for services. such as Personal Injury Case Management. reliability and quality of services provided by the home health Agency. adding to our financial stability. and it is our belief that her reputation will help to build a strong client base even before our start-up date. and professional organization and business management. we have two target markets: the actual client. we will explain to the client that we estimate the total number of hours needed to complete services liberally. Consumers of both home health care services and personal injury case management services rarely compare service providers directly. but we are unique in that we plan to offer community-based social services as well as home health care. 5. Within this geographical area we will target two specific programs: • • home health care personal injury case management Within each area. Medicaid. Kellene Walker. and private insurance companies. 5. This integration also leaves room in the long-term for the addition of other social Page 8 .1 Competition and Buying Patterns The key factor considered by both consumers and referring professionals when purchasing home health care is trust in the professional reputation. 4.3. Pricing of home health services does not usually influence consumers' choices. and reimbursement rates are set by those entities. has been employed with one of them for three years and has learned many of the day-to-day administrative functions that make a home health care agency successful. Usually they follow word-of-mouth recommendations.1 Competitive Edge We start with a competitive edge: There are currently only three home health care agencies serving southeastern Kansas. as these services are paid for as negotiated on a case-bycase basis at an hourly rate. health care facilities. Walker has built a reputation for outstanding customer service. Perhaps the most important element for assessing competition in the Home Health and Social Service fields is how to persuade other professionals to repeatedly refer their clients to our agency for services. current and pertinent qualification of service providers. we believe that we will be able to capture the majority of the home health care and personal injury case management market in our designated region.

availability. 5.Wheatland Health Services services. other nurses and hospital facilities in our market area. which in turn leads to client dissatisfaction. One doesn't sell home health care and personal injury case management. She will then join Ms. such as Family Counseling. Page 9 . Walker is already wellknown to physicians. We will therefore avoid the temptation to broaden the scope of our services too quickly. We will develop and maintain a database of our contacts in the field. business cards. The services we provide should always reflect the mission and oversight of management. and advertisements. private insurance companies and local attorneys. and Mental Health Case Management.3 Sales Strategy Sales in our business means quality patient service and utmost satisfaction from referring physicians and health care facilities. and effective interpersonal relationships. Ms. We want our clients to know that the quality of service they receive will be excellent. Ms. rather one sells excellent care. Rather. It is perpetual business. as will our marketing tools such as brochures.2 Marketing Strategy Marketing our service-oriented business requires establishing a reputation for expertise and excellence. 5. Psycho-Educational Services. growth can mean loss of quality control. Patzer will make initial contacts in the community as she establishes the business entity and provider status with Medicare. Our communications will be professional. and will work to maintain those relationships throughout our start-up process. In a service industry. regardless of the individual service provider performing the service. Only when those services are well-established and grounded in excellence will we consider expanding our service base. It starts with our known contacts who are in positions to recommend us and make referrals to us. and continues with long-term efforts to develop recognition among other professionals within the health care and social service fields. we will focus our immediate attentions on making the services we offer of the highest possible quality. Medicaid. Walker in an effort to introduce Wheatland Health Services to area professionals who are potential referral sources.

as this portion of the business will initially be secondary to the Home Health Care Services. As the Home Health Care portion of the business stabilizes management will focus growth efforts on the Personal Injury Case Management program.520 $24.156 $2. Table: Sales Forecast Sales Forecast Year 1 Year 2 Year 3 Home Health Care Sales Personal Injury Case Management Sales Total Sales $413. Research indicates that this agency is a satellite office of a larger regional organization and investment in the satellite office has been minimal.121 Year 2 $22. we project a jumped up annual growth after the first year. This figure is based on the number of patients currently being seen by an existing home health care agency in Southeastern Kansas.625 $32. We believe that with a greater investment in marketing. However.646 $25.3.400 $24.960 $480.448 $533.074 $500.721 $2.114 $24. employee relations.Wheatland Health Services 5. The projected annual figures for Personal Injury Case Management sales are relatively low. and customer service this client base can grow significantly.599 $2.200 $432.676 Year 3 $22.1 Sales Forecast Annual sales reflect a conservative average of 125 new Home Health Care patients for the first year with a modest increase per year thereafter.073 Direct Cost of Sales Home Health Care Sales Personal Injury Case Management Sales Subtotal Direct Cost of Sales Year 1 $21.740 $19. as market analysis indicates there is a significant need for these services.940 $455.245 Sales Page 10 .

000 Month 12 Month 11 Month 10 Month 9 Month 8 Month 7 Month 6 Month 5 Month 4 Month 3 Month 2 Month 1 $0 Chart: Sales by Year Sales by Year $500.000 $30.000 $40.000 $45.000 $10.000 Home Health Care Sales $300.000 Personal Injury Case Management Sales $20.000 $100.000 $35.Wheatland Health Services Chart: Sales Monthly Sales Monthly $50.000 $350.000 Home Health Care Sales $25.000 $400.000 $450.000 $15.000 $150.000 $0 Year 1 Year 2 Year 3 Page 11 .000 Personal Injury Case Management Sales $250.000 $50.000 $5.000 $200.

4 Milestones The accompanying table lists important program milestones. and we will hold monthly follow-up meetings to discuss the variance and course corrections. employment contracts Apply for all Provider Numbers Hold First All Staff Meeting Totals Start Date 1/1/2004 8/1/2003 1/7/2004 End Date 1/31/2003 9/15/2003 1/15/2004 Budget $875 $0 $0 Manager Beth Beth Beth Department Administrator Administrator Administrator 1/2/2004 12/15/2003 1/15/2004 1/31/2004 $0 $4.000 Beth Beth & Brad Beth Beth Administrator Administrator Administrator Administrator 3/19/2004 3/15/2003 3/29/2004 4/1/2004 $0 $350 Beth Beth & Kellene Administrator Administrator 4/15/2004 6/15/2004 6/1/2004 6/15/2004 $0 $50 $16. Table: Milestones Milestones Milestone Attorney Draws Up LLC Verify Numbers For Budget Meeting with CPA for tax advise and request for Tax ID Identify Office Location Finalize Application for Insurance Coverages Apply for State Licensure Apply for Bank Loan Finalize Lease Agreement Move Into Offices and Prepare for Site Survey Site Survey Develop/Finalize all forms. with dates and managers in charge.Wheatland Health Services 5. and budgets for each. What the table doesn't show is the commitment behind it. The milestone schedule indicates our emphasis on planning for implementation.-actual analysis.975 Beth Beth & Kellene Administrator Administrator Page 12 . Our business plan includes complete provisions for plan-vs. procedures.800 Beth Beth Administrator Administrator 2/1/2004 1/2/2004 2/1/2004 12/13/2004 2/1/2004 2/1/2004 2/1/2004 2/20/2004 $100 $0 $800 $10.

6. both managers will also provide direct service. The projections for the next three years are based on minimal growth in client base and therefore no resulting impact on payroll due to increased hours of service. three employees and a contracted agency to fulfill the need for Physical Therapists. She will also provide all administrative direction and will perform most of the administrative functions with assistance from an Administrative Assistant. Job descriptions have been written for each position and we will develop an employee handbook prior to our Start Date. Initially. and benefits as listed in the Personnel table. As the need for service providers grows. our plan provides for hiring service providers only as growth demands. A cost of living increase is noted for all employees but does not impact the Administrative Director as she is the owner of the business and will realize increase through profit gains. • Administrative Director -. Occupational Therapists.This position will be held by the agency owner. It is assumed that as need for Social Work hours increases a second Social Worker will be hired. Elizabeth Patzer is a licensed social worker and will provide all social work services during the start-up stage of the business. Wheatland Health Services has no current management or personnel gaps.0 Management Summary Wheatland Health Services' initial team will consist of one Administrative Director. as well as supervising the nursing staff. *Owner's Page 13 . The Administrative Director will also assume all Social Work hours of service during the initial stages of the venture as those hours are projected to be minimal. one Clinical Director. Kellene Walker is a registered nurse and has experience as a Skilled Nurse and Director of Nursing for a Home Health Agency. costs. She will also provide direct nursing services during the initial stages of the business.Wheatland Health Services Chart: Milestones Milestones Verify Numbers For Budget Identify Office Location Apply for State Licensure Finalize Lease Agreement Site Survey Apply for all Provider Numbers Q2 Q3 Q4 Q1 `04 Q2 Q3 Q4 6. and Speech Therapists. both managers will assume primary roles in management and will delegate direct service to employees.1 Personnel Plan The following is an explanation of personnel needs.

the Skilled Nurse will be paid $408 per month for On-Call Hours served.75/hr x 24 hours x 2 days x 2 weeks/month. The total reimbursement is based on 650 hours per year.50 per hour for direct service hours. retirement or other fringe benefits. x 16 hrs x 5 days + $1. • Physical Therapist/Occupational Therapist/Speech Therapist -. We will also contract for other therapeutical services. as these costs will be assumed by the owner. but benefits will not include medical insurance. additional Skilled Nurses will be hired. as described below. cost of insurance.These positions will be contracted at a rate of $30. Walker shall be entitled to a TBA percent of the company's net profits (less taxes and interest expense). Table: Personnel Personnel Plan Year 1 Year 2 Year 3 Page 14 . as they are contracted on a feefor-service reimbursement basis only. as this is a part-time position. as this is a part-time position. It has been agreed that at the end of each calendar year Ms. There will be no benefits attached to these positions. • Skilled Nurse -. Walker's compensation will be in the form of a salary. • Nurse's Aide -. • Social Worker -.5 paid holidays per year.00 per hour for direct service hours.This position will be paid $18. The total reimbursement as shown in the Personnel Table is calculated on 1040 hours per full year. On-Call Hours are figured at $1. The total reimbursement as shown on the Personnel Table is calculated on 1040 hours per year. etc.This position will be paid $10.5 paid holidays per year. Ms. There will be no benefits attached to this position other than 2 weeks of paid personal leave and 5. The company will pay employer portion of payroll taxes for Ms. Initially there will be no benefits attached to this position except for four weeks of paid personal leave and 11 paid holidays to be used at the discretion of the employee with prior notification to the Administrator..This position will be paid $18. • Administrative Assistant -.Wheatland Health Services compensation will be made in the form of a draw and will not include payroll taxes. These contracted expenses can be found in the Profit and Loss table. The total reimbursement as shown in the Personnel Table is calculated on 520 hours per year.50/hr.50 per hour for direct service hours. There will be no benefits attached to this position initially until the need for more hours of service is realized. There will be no benefits attached to this position other than 2 weeks of paid personal leave and 5. based for the first year on $1000/week.This position will be held by Kellene Walker.00 per hour. who has prior experience as Clinical Director for a home health care agency in Southeastern Kansas. Walker and will allow for 4 weeks of paid personal leave per year and 11 paid holidays. at $12. these after-tax expenses can be found in the detailed Profit and Loss table. As the need for additional Skilled Nursing hours increases. • Clinical Director -.This position is based on 30 hours per week reimbursed.00 per hour. In addition. The Clinical Director will also assume the majority of Skilled Nursing hours of service during the initial stages of the venture as that will be her primary role.

343 $118.Wheatland Health Services Administrative Director .00% 30.00% 8. tax rates. and personnel burden.Elizabeth Patzer.00% 0 Page 15 .856 $10.712 $9. MSW/MPA Clinical Director . We recognize that this means we will have to grow more slowly than we might like.322 $121.912 7 $0 $55. that there are no significant unforeseen changes in the federal policy that dictates Medicare and Medicaid reimbursement of Home Health Care Services.100 7 $0 $53. 7. We assume a strong economy. RN Administrative Assistant Skilled Nurse Nurses Aide Social Worker Total People Total Payroll $0 $52.720 $20.601 $11.00% 30.00% 8.282 $24.000 $18. of course. In addition: 1.1 Important Assumptions The General Assumptions table. without major recession.00% 0 2 10. Table: General Assumptions General Assumptions Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other Year 1 Year 2 Year 3 1 10.110 $10.0 Financial Plan We want to finance growth mainly through cash flow.209 7 $109. these lags in collection of receivables will have less impact on cash flow.00% 0 3 10. Our figures are based on start-up capital as shown in the Start-up and Start-up Funding tables.870 7. Medicaid. and other private insurances. The most important factor for our financial plan is collection of receivables. As we broaden our scope of services to include a larger payor base.00% 30. below. Our home health care services will be reimbursed primarily by Medicare. we will consider an additional loan if needed.00% 8. shows our important (and conservative) annual assumptions concerning interest rates.Kellene Walker. 2.167 $19.560 $19.413 $8. We assume.033 $10.860 $25. History indicates that these payors are sometimes slow to reimburse and receivables can get hung up in the automated payment system if not tracked closely.

000 $15.000 $9.000 Page 16 . so the variable costs relate to the only other cost of service provided: mileage to and from service locations.000 $9. Table: Break-even Analysis Break-even Analysis Monthly Revenue Break-even $17.000 $12. We don't really expect to reach break-even until a few months into the business operation. but in our servicebased business.000) ($9.000 $0 ($3.000 $30.000 $3.000) ($12.532 Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost 6% $16.000 $24.000) $0 $6.000 $18.000 $12.000 $3. we need to bill and collect the amount shown below per month to cover our per month costs.000 $6.555 Chart: Break-even Analysis Break-even Analysis $15. payroll is included with other operating expenses in our fixed monthly amounts.000 $33.2 Break-even Analysis The Break-even Analysis below is based on monthly fixed costs and an Average Per Unit Variable Cost.000 $27. This assumption about cost of sales may at first look low.000 $21.Wheatland Health Services 7.000) ($15. At these levels.000) ($6.

309 33.800 $19.500 $12.156 $210.074 $24.800 $19.200 $4.000 $1.156 $4.121 $0 $24.800 $3.403 $291.800 $3.500 $12.870 $30.000 $61. per month We are projecting growth and total annual sales very conservatively.847 $243. with sales increasing throughout the three years of the plan.663 $212.000 $121.000 $600 $600 $1.500 $12.800 $19.600 $1.000 $1.425 Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred $210. Table: Profit and Loss Pro Forma Profit and Loss Year 1 Year 2 Year 3 Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales $432.and community-based and require travel to and from service locations.423 $0 $3.86% $507.200 $4. and profits are notable even for the start-up phase of this business.86% $201.956 $0 $3.343 $29. as this is a service agency and the primary costs involved in providing the services are those related to payroll.182 37.800 $600 $300 $9. Our cost of sales is relatively low.74% Expenses Page 17 .200 $600 $1.000 $86.600 $1. The costs of sales reflects the cost of mileage reimbursement to employees.053 $4.920 $0 $2.676 $0 $24.400 $1. occupational and speech therapists.245 Gross Margin Gross Margin % $408. because the services we provide are home.322 $30.000 $600 $600 $1.398 94.Wheatland Health Services 7.000 $118.245 $0 $25.33% $167.716 $291.221 Net Profit Net Profit/Sales $144.3 Projected Profit and Loss Our projected profit and loss is shown in the following table.819 94.800 $600 $300 $12.000 $1.829 95.073 $25.403 $4.000 $600 $600 $1.346 $216.940 $24.000 $71.26% Payroll Payroll Taxes Depreciation Rent Heat and Lights Phone Cell Phones Water and Garbage Internet Access Professional Liability Insurance Workman's Comp Insurance Premises and Content Insurance Advertising and Marketing Meals and Entertainment Professional Development Office Equipment and Supplies Contracted Therapists: OT/PT/ST Nursing Supplies $109.43% $455. with high projected expenses.676 $533.053 $243.121 $480.200 $4.200 $600 $1.000 Total Operating Expenses $198. as well as the owner's and Clinical Director's after-tax draws.800 $600 $300 $12. The Profit and Loss table also contains our expenses for independently contracted physical.200 $600 $1.337 34.800 $3.

000 $16.000 $12.000 $30.000 $14.000 $8.Wheatland Health Services Chart: Profit Monthly Profit Monthly $20.000 $0 Year 1 Year 2 Year 3 Page 18 .000 $150.000 $180.000 $10.000 $4.000 $90.000 $2.000 $120.000 $60.000 $0 Month 1 Month 3 Month 5 Month 7 Month 9 Month 11 Month 2 Month 4 Month 6 Month 8 Month 10 Month 12 Chart: Profit Yearly Profit Yearly $210.000 $18.000 $6.

Wheatland Health Services Chart: Gross Margin Monthly Gross Margin Monthly $45.000 $40.000 $200.000 $25.000 $0 Month 1 Month 3 Month 5 Month 7 Month 9 Month 11 Month 2 Month 4 Month 6 Month 8 Month 10 Month 12 Chart: Gross Margin Yearly Gross Margin Yearly $500.000 $35.000 $5.000 $0 Year 1 Year 2 Year 3 Page 19 .000 $100.000 $15.000 $400.000 $30.000 $300.000 $10.000 $20.

000 $60. Chart: Cash Cash $120.000 Net Cash Flow $40. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendix. and the other the monthly cash balance. with one bar representing the cash flow per month.000 $100. Cash flow projections are critical to our success.000 Cash Balance $20.000 Month 12 Month 11 Month 10 Month 9 Month 8 Month 7 Month 6 Month 5 Month 4 Month 3 Month 2 Month 1 $0 Page 20 . The monthly cash flow is shown in the illustration.4 Projected Cash Flow The following cash flow projections show the annual amounts only.000 $80. Collection of accounts receivable from our sales on credit will greatly affect our cash flow.Wheatland Health Services 7.

608 Net Cash Flow Cash Balance $70. VAT. HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent $0 $0 $0 $0 $0 $0 $0 $270. 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 Additional Cash Spent Page 21 .509 $155.343 $161.854 $521.683 $315.293 $0 $0 $0 $0 $0 $0 $0 $470.608 Sales Tax.600 $191.006 $121.006 $0 $0 $0 $0 $0 $0 $0 $330.293 $341.096 $0 $0 $0 $0 $0 $0 $0 $521.854 Year 1 Year 2 Year 3 $109.383 $118.870 $208.096 $470.383 $0 $0 $0 $0 $0 $0 $0 $315.846 Cash Received Cash from Operations Cash Sales Cash from Receivables Subtotal Cash from Operations Additional Cash Received Sales Tax.910 $115.293 $0 $470.854 $0 $0 $0 $0 $0 $0 $0 $341.096 $0 $521.Wheatland Health Services Table: Cash Flow Pro Forma Cash Flow Year 1 Year 2 Year 3 $0 $341.040 $270. VAT.246 $461.322 $196.739 $330.091 $270.

262 Long-term Liabilities Total Liabilities $50.509 $91.901) $144.182 $510.846 $112.248 $50.248 $0 $0 $18.656 $0 $0 $0 $375.000 $68.745 $201.000 $122.500 $578.745 $375.000 $289.408 $210.408 $167.927 $578.656 $270.724 $461.724 $20.309 $142. The monthly estimates are included in the appendix.189 Net Worth $142.979 $17.189 Year 1 Year 2 Year 3 Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities $18.408 $309.337 $309.000 $65.262 Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital $20.000 $67.262 $0 $0 $17.000 ($21.500 $210.5 Projected Balance Sheet The balance sheet in the following table shows managed but sufficient growth of net worth. and a sufficiently healthy financial position.979 $50.500 $375. Table: Balance Sheet Pro Forma Balance Sheet Year 1 Year 2 Year 3 $115.656 $20.647 $3.927 Assets Current Assets Cash Accounts Receivable Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Page 22 .248 $15.189 $0 $0 $0 $210.600 $101.843 $3.624 $3.979 $0 $0 $15.724 $0 $0 $0 $578.745 $510.Wheatland Health Services 7.

000).52 3.52% 0.89% 43.6 Business Ratios The following table shows the projected businesses ratios. 10.51 23.a n.89% 11.92 n.52 1.a n.a.56% 82.58% 30.25% 13.21 0.60% 4.74% 39.49 11. Table: Ratios Ratio Analysis Year 1 Year 2 Year 3 Industry Profile n.71% Accounts Receivable Other Current Assets Total Current Assets Long-term Assets Total Assets 43.31% 17.66% 23.745 60.20 62.00% 27.a 0.27% 56.00% 95.00% 100.93% Sales Growth Percent of Total Assets Percent of Sales Sales Gross Margin Selling.a Activity Ratios Accounts Receivable Turnover Collection Days Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab.54% 100.71% 1.37% 35.48 0.00% 0.54 11.408 52.35% 11.65% 11.93% 100.63% 100. and a comparison of our ratios with standards for the home health care industry (SIC code 8082. We expect to maintain healthy ratios for profitability.02% 37.Wheatland Health Services 7.a n.00% 21.99% 8.62% 21.11% 100.a n.00% 100.42% 100.90% 45.63% 88.00% 94.76 $560.49 9% 6.26% 66.a n.00% 50.00% 48.05% 0.85 n.00% 85.a $192.15 1.87% 0.18% 63.00% Current Liabilities Long-term Liabilities Total Liabilities Net Worth 8.00% 100.00% 0.51% 1.13 0.04 0.54 32.17 29 0.33% 101.70% 0.49 33.86% 23.83 27 2.a n. Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Page 23 . and return.a 4.08 3% 26.04% 3.86% 54.72 73 12.34% 0.51 17.61% 100.00% 19.09% 2.17 32 1.00% 0.96 1.62% 33. risk.75% 0.56% 77.63% 56.a 0.a n.00% 100.00% 94.40% 144.a n.27 0.43% 63. to Liab.04 n.66% 100.54 $359.06 4.28 4.a n.26 n.00% 54.72 57 9.24 0.72 73 12.55 1.76% 97.38% n.48% 69.44% 2.86% 67.78 4% 17. General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Year 1 Year 2 Year 3 Net Profit Margin Return on Equity 33.a n.927 72.66% 100.84% 1.34% 0.25% 49.40% 67.33% 34.74% 32.

00 n.Wheatland Health Services Dividend Payout 0.00 0.00 0.a Page 24 .

900 $2.000 $1.000 $1.100 $30.000 $1.500 $25.000 $900 $27.100 $48.590 $32.500 $36.200 $45.838 $1.390 $1.628 $1.168 $2.920 $2.000 $1.943 $2.391 $113 $125 $150 $150 $175 $188 $200 $225 $238 $250 $275 $313 $1.285 $2.900 $41.050 Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Home Health Care Sales $1.Appendix Table: Sales Forecast Sales Forecast Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Sales Home Health Care Sales Personal Injury Case Management Sales Total Sales 0% 0% $25.800 $39.000 $1.400 $33.900 $1.038 $2.465 $1.900 $43.425 $1.500 $35.403 $2.527 $2.000 $45.418 $1.000 $1.000 $29.600 $37.400 $34.313 $1.550 $2.693 $1.900 $28.000 $42.153 $2.543 $1.600 $38.543 $1.000 $27.200 $29.615 $1.704 Personal Injury Case Management Sales Subtotal Direct Cost of Sales Page 1 .800 $40.733 $1.803 $1.200 $31.048 $2.252 $2.000 $2.

011 $867 $810 7 $4.560 $2. RN Administrative Assistant Skilled Nurse Nurses Aide Social Worker Total People Total Payroll Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0% 0% 0% 0% 0% $4.011 $867 $810 7 $6.333 $1.760 $9.333 $1.560 $2.560 $0 $867 $0 7 $4.Elizabeth Patzer.581 $9. MSW/MPA Clinical Director .560 $2.333 $1.011 $867 $810 7 $4.581 $9.560 $0 $867 $0 7 $4.333 $1.581 $9.011 $867 $810 7 $4.011 $867 $810 7 $4.333 $1.590 $9.560 $2.011 $867 $810 7 $4.333 $1.Appendix Table: Personnel Personnel Plan Month 1 Administrative Director .Kellene Walker.560 $2.581 $9.333 $1.560 $2.581 $9.581 $9.333 $1.333 $1.560 $2.333 $1.560 $2.581 Page 2 .333 $1.011 $867 $810 7 $4.560 $2.581 $9.560 $2.760 $6.333 $1.011 $867 $810 7 $4.581 $9.011 $867 $810 7 $4.011 $876 $810 7 $4.

00% 10.00% 10.00% 30.00% 8.00% 10.00% 8.00% 30.00% 10.00% 10.Appendix Table: General Assumptions General Assumptions Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 1 2 3 4 5 6 7 8 9 10 11 Month 12 12 10.00% 30.00% 30.00% 8.00% 30.00% 10.00% 8.00% 30.00% 30.00% 30.00% 30.00% 8.00% 10.00% 0 0 0 0 0 0 0 0 0 0 0 0 Page 3 .00% 8.00% 8.00% 8.00% 8.00% 8.00% 30.00% 30.00% 30.00% 8.00% 8.00% 10.00% 10.00% 10.00% 10.

038 $3.590 $23.254 $10.77% 36.80% 24.000 $1.493 $2.564 $5.872 $13.000 Month 3 $29.581 $9.957 $8.100 Month 4 $30.590 $23.800 Month 9 $40.321 $10.600 Month 8 $38.548 $28.49% 94.538 $19.000 Total Operating Expenses $14.077 $9.025 $17.548 $28.86% 29.485 $28.462 $3.872 $13.493 $2.321 $333 $333 $333 $333 $333 $333 $333 $333 $333 $333 $333 $333 $2.782 $6.900 Month 10 $43.41% 28.581 $2.40% 94.050 $1.271 $12.625 $1.693 $1.625 $1.543 $1.493 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Rent $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 Heat and Lights $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 Phone $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 Cell Phones $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 Water and Garbage $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 Internet Access $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll Payroll Taxes 15% Depreciation Professional Liability Insurance Workman's Comp Insurance Premises and Content Insurance Advertising and Marketing Meals and Entertainment Professional Development Office Equipment and Supplies Contracted Therapists: $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $1.650 $19.920 $2.493 $2.704 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1.493 $2.038 $2.573 $45.493 $2.025 $17.025 Profit Before Interest and Taxes EBITDA $10.760 $6.704 $24.527 $2.581 $9.000 Month 11 $45.000 $1.50% 94.543 $1.41% 94.425 $1.803 $1.000 $1.625 $1.598 $42.000 $1.475 $26.527 $2.573 $25.36% 26.000 $1.608 $21.615 $1.538 $19.461 $11.038 $2.346 94.920 $2.87% 32.493 $2.803 $1.493 $2.580 $34.168 $2.546 $17.581 $9.581 $9.760 $9.649 $12.576 $3.47% 94.268 $17.625 $1.90% 34.100 Month 12 $48.285 $2.000 $1.590 $9.38% 37.625 $1.025 $17.981 $3.693 $1.598 $32.458 $27.44% 94.625 $1.493 $2.034 $17.615 $40.461 $11.37% $6.400 Month 6 $34.615 $1.77% Page 4 .972 $4.493 $2.161 $5.592 26.000 $1.880 $16.089 $8.025 $17.564 $8.581 $9.625 $1.83% 39.344 $7.573 $25.625 $1.000 $1.025 $17.285 $2.41% 94.60% 30.204 $14.581 $9.625 $1.897 $30.271 $12.573 $15.14% 40.43% 94.268 $10.043 $13.573 $15.000 $1.563 $36.403 $2.625 $1.396 OT/PT/ST Nursing Supplies Interest Expense Taxes Incurred Net Profit Net Profit/Sales 15% $50 $100 15% $6.403 $2.Appendix Table: Profit and Loss Pro Forma Profit and Loss Month 1 $25.581 $9.204 $17.625 $1.581 $9.493 $2.025 $17.633 $38.025 $17.43% 94.025 $17.000 $1.377 $6.492 $14.608 $21.493 $2.900 Month 2 $28.45% 94.168 $2.590 Month 5 $32.546 $17.500 Month 7 $36.41% 94.425 $1.000 $1.625 $1.972 $7.254 $10.

Appendix Page 5 .

760 $6.581 $9.570 $36.870 $40.673 $38. HST/GST Received New Current Borrowing Expenditures 0.970 $28.037 $29.070 Month 10 Month 11 Month 12 Additional Cash Received Sales Tax.461 $22.570 $36.581 $9.037 $29.165 $23.582 $25.070 Subtotal Cash from Operations $0 $863 $25.970 $28.044 $26.00% Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Expenditures from Operations Cash Spending $6.028 $22.750 $16.207 $12. VAT.Appendix Table: Cash Flow Pro Forma Cash Flow Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Cash Received Cash from Operations Cash Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Cash from Receivables $0 $863 $25.070 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Cash Received $0 $863 $25.581 $9.166 $18.332 $26.570 $36.533 $23.650 $32.582 $25.001 $15.650 $32.870 $40.756 $27.581 $406 $12.461 $22.760 $9.673 $38.483 Bill Payments Subtotal Spent on Operations Additional Cash Spent Subtotal Cash Spent Page 6 .150 $30.970 $43.880 $12.332 $26.590 $9.673 $38.866 $24.284 $15.581 $9.037 $29.470 $34.470 $34.970 $28.575 $14.175 $17. 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 Long-term Liabilities Principal Repayment Purchase Other Current Assets $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 Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $7.902 $7.756 $27.970 $43.446 $12.165 $23.483 Sales Tax.150 $30.028 $22.581 $9.462 $17.967 $22.866 $24.581 $9.967 $22.870 $40.533 $23.650 $32.952 $13.970 $43.581 $9. VAT.044 $26.581 $9.150 $30.470 $34.166 $18.

541 $74.000 ($21.000 ($21.865 $22.656 $0 $0 $0 $48.709 $99.745 $0 $0 $0 $190.957 $5.970 $3.000 $68.000 ($21.891 $0 $0 $15.000 $66.Appendix Net Cash Flow ($7.476 $0 $0 $14.500 $13.433 $19.099 $37.901) $48.000 $65.847 $35.777 $12.248 $20.268 $51.000 $61.166 $122.817 $142.248 $50.180 $3.301 $13.489 $82.599 $0 $3.214 $15.309 $142.509 Month 10 Month 11 Table: Balance Sheet Pro Forma Balance Sheet Month 1 Assets Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 12 Starting Balances Current Assets Cash Accounts Receivable Other Current Assets Total Current Assets $44.579 $50.500 $112.000 $62.789 $85.427 $60.202 $15.202 $0 $0 $15.950 $3.000 ($21.476 $15.400 $20.273 $50.166 $171.604 $9.500 $66.777 $0 $0 $11.709 $82.504 $28.718 $122.900 $3.509 $91.099 $0 $0 $13.826 $14.817 $190.509 $6.400 $75.920 $74.003 $20.500 $75.467 $28.500 $100.891 $16.500 $139.000 $62.800 $88.000 $63.833 $19.720 $3.579 $17.099 $20.015 $0 $0 $12.485 $8.566 $37.667 $3.500 $82.166) ($18.003 $0 $0 $0 $139.500 $190.579 $0 $0 $16.000 $63.089 $0 $0 $0 $210.248 $0 $0 $18.789 $20.000 ($21.067 $0 $0 $0 $100.089 $115.009 $6.000 $50.587 $22.745 $99.933 $20.504 $20.834 $48.342 $12.500 $48.268 $20.273 $0 $0 $17.883 $85.000 ($21.273 $18.923 $115.407 $3.735 $37.000 ($21.883 $78.553 $69.089 $20.000 ($21.000 ($21.500 $125.099 $0 $0 $0 $66.785 $50.329 $3.865 $20.329 $53.465 $50.003 $61.901) $50.833 $0 $0 $0 $75.901) $30.901) $39.891 $50.500 $171.933 $0 $0 $0 $112.019 $139.000 ($21.865 $0 $0 $0 $82.465 $0 $0 $12.789 $0 $0 $0 $171.019 $88.000 ($21.901) $15.541 $72.901) $62.104) Cash Balance $37.483 $60.901) $75.408 $210.923 $86.384 $48.820 $3.526 $125.785 $14.838 $56.504 $0 $0 $0 $91.899 $105.901) $124.463 $61.988 $11.221 $20.221 $72.901) $144.901) $22.463 $42.500 $210.167 $3.500 $0 $0 $12.067 $20.847 $58.785 $0 $0 $13.933 $42.000 $50.000 $65.777 $50.838 $28.899 $154.500 $50.901) $90.526 $74.553 $61.476 $50.500 $91.901) $6.656 Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth $0 $0 $0 $0 $11.901) $5.948 $65.067 $105.833 $20.483 $112.067 $35.099 $50.390 $20.901) $107.566 $91.000 $64.745 $20.099 $13.500 $154.221 $0 $0 $0 $154.056 Page 7 .433 $25.465 $12.000 ($21.647 $3.000 $67.537 $3.834 $100.901) $0 ($1.015 $50.408 ($1.948 $51.489 $28.202 $50.000 ($21.268 $0 $0 $0 $125.015 $12.616 $7.656 $13.000 $62.037 $3.056 $66.