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Table of Contents
1.0 Executive Summary.............................................................................................................................1
Chart: Highlights ......................................................................................................................1
1.1 Objectives ...................................................................................................................................1
1.2 Mission........................................................................................................................................1
1.3 Keys to Success ........................................................................................................................2
2.0 Company Summary.............................................................................................................................2
2.1 Start-up Summary ......................................................................................................................2
Chart: Start-up .........................................................................................................................2
2.1.1 Company Ownership ....................................................................................................2
Table: Start-up .........................................................................................................................3
Table: Start-up Funding ..........................................................................................................4
2.2 Company Locations and Facilities ..........................................................................................4
3.0 Products ...............................................................................................................................................4
4.0 Market Analysis Summary..................................................................................................................4
5.0 Strategy and Implementation Summary ............................................................................................5
5.1 Competitive Edge ......................................................................................................................5
5.2 Sales Strategy............................................................................................................................5
5.2.1 Sales Forecast ..............................................................................................................5
Table: Sales Forecast ...................................................................................................6
Chart: Sales Monthly......................................................................................................6
Chart: Sales by Year......................................................................................................7
6.0 Management Summary.......................................................................................................................7
6.1 Personnel Plan ...........................................................................................................................7
Table: Personnel .....................................................................................................................7
7.0 Financial Plan ......................................................................................................................................8
7.1 Break-even Analysis ..................................................................................................................8
Table: Break-even Analysis ...................................................................................................8
Chart: Break-even Analysis ...................................................................................................8
7.2 Projected Profit and Loss .........................................................................................................9
Chart: Profit Monthly................................................................................................................9
Chart: Profit Yearly ..................................................................................................................9
Chart: Gross Margin Monthly ...............................................................................................10
Chart: Gross Margin Yearly..................................................................................................10
Table: Profit and Loss ..........................................................................................................11
7.3 Projected Cash Flow...............................................................................................................12
Chart: Cash ...........................................................................................................................12
Table: Cash Flow..................................................................................................................13
7.4 Projected Balance Sheet ........................................................................................................14
Table: Balance Sheet ...........................................................................................................14
7.5 Business Ratios .......................................................................................................................15
Table: Ratios .........................................................................................................................16
Table: Sales Forecast ...............................................................................................................................1
Table: Personnel ........................................................................................................................................2
Table: General Assumptions ....................................................................................................................3
Table: Profit and Loss ...............................................................................................................................4
Table: Cash Flow .......................................................................................................................................5
Table: Balance Sheet ................................................................................................................................6
Page 1

Tsunami Pizza
1.0 Executive Summary
The westside of South Gate has experienced explosive growth the past three years. Over
3,000 new residents live in the westside area. Area businesses are slowly catching up with this
new opportunity. Tsunami Pizza is opening a new pizza delivery service that will foc us on the
westside area.
Currently, the area's closest pizza restaurant takes up to 45 minutes to deliver a
pizza. Tsunami will cut the delivery time to no more than 20 minutes.
Tsunami will offer a better pizza, at a lower price, and will deliver it hot to the customer's door
faster than the closest competitor.

1.1 Objectives

Capture the majority of the pizza delivery business in the westside area.
Offer our customers a superior product, at a low price, and provide customer service that
is second to none.

1.2 Mission
Tsunami Pizza's mission is to offer residents of the westside the best pizza delivery service in the
city.

Page 1

Tsunami Pizza
1.3 Keys to Success

A superior product that will promote customer loyalty.

A business loc ation that will assure that the pizza will be delivered quickly.
Delivery people that have great customer skills.

2.0 Company Summary

Tsunami Pizza is a new pizza delivery service started in the city's westside area. John Lindsay,
owner of Tsunami Pizza, has seven years experience in the restaurant industry. His foc us is to
satisfy the customer's demand for a quality pizza that is delivered quickly with a smile.
Tsunami Pizza will serve a seven mile area with over 25,000 residents. Overhead will be kept
low so that Tsunami Pizza's prices will beat the competition. Delivery people will use their own
vehicles so the business will not have to purchase delivery vehicles.

2.1 Start-up Summary

The start-up cost of Tsunami Pizza will consist primarily of kitchen equipment. John Lindsay will
invest $50,000.

2.1.1 Company Ownership

Page 2

Tsunami Pizza
Tsunami Pizza is owned by John Lindsay.

Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Kitchen Inventory
Delivery Paper Products
Leased Kitchen Equipment
Insurance
Rent
Promotional Signs for Delivery Cars
Expensed Equipment
Business Sign
Other
Total Start-up Expenses

$1,000
$5,000
$3,000
$20,000
$1,000
$1,000
$2,000
$0
$4,000
$0
$37,000

Start-up Assets
Cash Required
Other Current Assets
Long-term Assets
Total Assets

$5,000
$0
$8,000
$13,000

Total Requirements

$50,000

Page 3

Tsunami Pizza
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

$37,000
$13,000
$50,000

$8,000
$5,000
$0
$5,000
$13,000

Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities

$0
$0
$0
$0
$0

Capital
Planned Investment
John Lindsey
Other
Additional Investment Requirement

$50,000
$0
$0

Total Planned Investment

$50,000

Loss at Start-up (Start-up Expenses)

($37,000)

Total Capital

$13,000

Total Capital and Liabilities

$13,000

Total Funding

$50,000

2.2 Company Locations and Facilities

Tsunami Pizza will be loc ated at the corner of 11th and Tyler. These two streets are the
area's busiest and provide easy ac cess to our service area.

3.0 Products
Tsunami Pizza will offer a wide variety of New York style pizzas, as well as sodas and fruit juices.

4.0 Market Analysis Summary

Page 4

Tsunami Pizza
The westside is a growing middle-class area with 25,000 residents. A majority of these residents
are families of four or more. The average income for the area is $38,000. The boom in the area
is primarily in response to new employment opportunities in the city's Westside Industrial Park.
Businesses that traditionally do well with this population have demonstrated the potential for
Tsunami Pizza. A neighbor of Tsunami Pizza, Magic Videos, has been in operation in the area
for a little over a year. Magic Videos is the closest video store serving the westside area.
Their sales have grown by 40% due to its loc ation and the absence of direct competition in
the westside.
With c ontinued growth in the area, opportunities to serve the westside residents will
increase. The company will sell predominantly to individuals, but it will also ac cept some
catering jobs to individual parties and company functions in the westside.

5.0 Strategy and Implementation Summary

Tsunami Pizza will use advertising to promote the business. We will use the loc al westside flyer
to advertise. In addition, we will hire people to hold signs at the corner of 11th and Tyler. We
will also use door handle flyer promotion throughout the westside neighborhoods.
Our most important promotion will done in c onjunction with Magic Video. We will offer a two
for price of one video coupon with eac h purchase at Tsunami Pizza that can be used at Magic
Video. Magic Video will offer its customers a $2 off coupon that can be used at Tsunami Pizza.

5.1 Competitive Edge

Tsunami Pizza's competitive edge is:

Location: Tsunami Pizza is loc ated in the heart of the westside area on the corners of
11th and Tyler. These two streets are the area's busiest. The closest pizza restaurant
to the westside area is a fifteen minute drive. Tsunami Pizza can deliver in half the time
of its competitors.

Low Overhead/Lower Prices: Since Tsunami Pizza only delivers pizza, its prices don't
reflect overhead demands of a traditional pizza restaurant.

5.2 Sales Strategy

The sales strategy of Tsunami Pizza is simple. First, offer the customer a superior pizza at a
low price. Second, make sure that pizza is delivered quickly. Third, the delivery people must work
to create customer loyalty.

5.2.1 Sales Forecast

The following is the sales forecast for three years.

Page 5

Tsunami Pizza
Table: Sales Forecast
Sales Forecast
Year 1

Year 2

Year 3

Sales
Pizza/Drinks

$162,500

$178,000

$195,000

Catering Income
Other
Total Sales

$14,000
$0
$176,500

$18,000
$0
$196,000

$24,000
$0
$219,000

Direct Cost of Sales

Pizza/Drinks

Year 1
$24,500

Year 2
$30,000

Year 3
$36,000

Catering Income
Other
Subtotal Direct Cost of Sales

$1,400
$0
$25,900

$1,800
$0
$31,800

$2,400
$0
$38,400

Page 6

Tsunami Pizza

6.0 Management Summary

John Lindsay will be the manager of Tsunami Pizza. John started as a waiter at the city's
famous Sweetwater restaurant. At the time, John was in his junior year at Robertson
University. He graduated in 1995 with a BA in history. Soon after graduation, John was offered
the position of shift manager at the Sweetwater. He has held that position for five years.

6.1 Personnel Plan

The Tsunami will have the following staff:

Manager.
One kitchen staff.
Two delivery staff.

Table: Personnel
Personnel Plan
Year 1
$30,000
$24,000
$36,000

Year 2
$34,000
$25,000
$37,000

Year 3
$38,000
$29,000
$38,000

Other
Total People

$0
4

$0
4

$0
4

Total Payroll

$90,000

$96,000

$105,000

Manager
Kitchen Staff Member
Delivery Staff (2)

Page 7

Tsunami Pizza
7.0 Financial Plan
The following is the financial plan for Tsunami Pizza.

7.1 Break-even Analysis

The following table and chart show the Break-even Analysis.

Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even

$12,803

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

15%
$10,925

Page 8

Tsunami Pizza
7.2 Projected Profit and Loss
The following table and charts show the projected profit and loss for three years.

Page 9

Tsunami Pizza

Page 10

Tsunami Pizza
Table: Profit and Loss
Pro Forma Profit and Loss
Year 1
$176,500
$25,900

Year 2
$196,000
$31,800

Year 3
$219,000
$38,400

$0
$25,900

$0
$31,800

$0
$38,400

$150,600
85.33%

$164,200
83.78%

$180,600
82.47%

$90,000
$8,000
$1,596
$0
$6,000
$0
$12,000
$13,500
$0

$96,000
$8,000
$1,600
$0
$6,000
$0
$12,000
$14,400
$0

$105,000
$8,000
$1,600
$0
$6,000
$0
$12,000
$15,750
$0

$131,096

$138,000

$148,350

Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred

$19,504
$21,100
$0
$5,851

$26,200
$27,800
$0
$7,860

$32,250
$33,850
$0
$9,675

Net Profit
Net Profit/Sales

$13,653
7.74%

$18,340
9.36%

$22,575
10.31%

Sales
Direct Cost of Sales
Other Production Expenses
Total Cost of Sales
Gross Margin
Gross Margin %

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

Page 11

Tsunami Pizza
7.3 Projected Cash Flow
The following table and chart is the projected cash flow for three years.

Page 12

Tsunami Pizza
Table: Cash Flow
Pro Forma Cash Flow
Year 1

Year 2

Year 3

$176,500
$176,500

$196,000
$196,000

$219,000
$219,000

$0

$0

$0

$0
$0
$0
$0
$0
$0
$176,500

$0
$0
$0
$0
$0
$0
$196,000

$0
$0
$0
$0
$0
$0
$219,000

Year 1

Year 2

Year 3

$90,000
$63,520
$153,520

$96,000
$81,211
$177,211

$105,000
$89,022
$194,022

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing

$0
$0

$0
$0

$0
$0

Other Liabilities Principal Repayment

Long-term Liabilities Principal Repayment
Purchase Other Current Assets

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$153,520

$0
$0
$177,211

$0
$0
$194,022

$22,980
$27,980

$18,789
$46,769

$24,978
$71,747

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

Purchase Long-term Assets

Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance

Page 13

Tsunami Pizza
7.4 Projected Balance Sheet
The following table is the projected balance sheet for three years.

Table: Balance Sheet

Pro Forma Balance Sheet
Year 1

Year 2

Year 3

Current Assets
Cash
Other Current Assets

$27,980
$0

$46,769
$0

$71,747
$0

Total Current Assets

$27,980

$46,769

$71,747

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

$8,000
$1,596
$6,404
$34,384

$8,000
$3,196
$4,804
$51,573

$8,000
$4,796
$3,204
$74,951

Liabilities and Capital

Year 1

Year 2

Year 3

Current Liabilities
Accounts Payable

$7,731

$6,580

$7,383

Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$0
$0
$7,731

$0
$0
$6,580

$0
$0
$7,383

Long-term Liabilities
Total Liabilities

$0
$7,731

$0
$6,580

$0
$7,383

$50,000
($37,000)
$13,653
$26,653
$34,384

$50,000
($23,347)
$18,340
$44,993
$51,573

$50,000
($5,007)
$22,575
$67,568
$74,951

$26,653

$44,993

$67,568

Assets

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

Page 14

Tsunami Pizza
7.5 Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) code 5812, Eating Plac es, are shown for comparison.

Page 15

Tsunami Pizza
Table: Ratios
Ratio Analysis
Year 1
n.a.

Year 2
11.05%

Year 3
11.73%

Industry Profile
7.60%

0.00%
81.37%
18.63%
100.00%

0.00%
90.69%
9.31%
100.00%

0.00%
95.73%
4.27%
100.00%

35.60%
43.70%
56.30%
100.00%

22.48%
0.00%
22.48%
77.52%

12.76%
0.00%
12.76%
87.24%

9.85%
0.00%
9.85%
90.15%

32.70%
28.50%
61.20%
38.80%

100.00%
85.33%
77.59%
4.53%
11.05%

100.00%
83.78%
74.42%
4.08%
13.37%

100.00%
82.47%
72.16%
3.65%
14.73%

100.00%
60.50%
39.80%
3.20%
0.70%

3.62
3.62
22.48%
73.18%
56.72%

7.11
7.11
12.76%
58.23%
50.80%

9.72
9.72
9.85%
47.73%
43.03%

0.98
0.65
61.20%
1.70%
4.30%

Additional Ratios
Net Profit Margin

Year 1
7.74%

Year 2
9.36%

Year 3
10.31%

n.a

Return on Equity

51.22%

40.76%

33.41%

n.a

Activity Ratios
Accounts Payable Turnover
Payment Days
Total Asset Turnover

9.22
27
5.13

12.17
33
3.80

12.17
28
2.92

n.a
n.a
n.a

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

0.29
1.00

0.15
1.00

0.11
1.00

n.a
n.a

$20,249
0.00

$40,189
0.00

$64,364
0.00

n.a
n.a

0.19
22%
3.62
6.62
0.00

0.26
13%
7.11
4.36
0.00

0.34
10%
9.72
3.24
0.00

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

Sales Growth
Percent of Total Assets
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets

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

Page 16

Appendix
Table: Sales Forecast
Sales Forecast
Sales
Pizza/Drinks
Catering Income
Other
Total Sales
Direct Cost of Sales
Pizza/Drinks
Catering Income
Other
Subtotal 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

0%

$9,500

$10,000

$10,000

$13,000

$13,000

$14,000

$14,000

$15,000

$15,000

$16,000

$16,000

$17,000

0%

$0

$0

$200

$400

$600

$800

$1,000

$2,000

$2,000

$2,000

$2,000

$3,000

0%

$0
$9,500

$0
$10,000

$0
$10,200

$0
$13,400

$0
$13,600

$0
$14,800

$0
$15,000

$0
$17,000

$0
$17,000

$0
$18,000

$0
$18,000

$0
$20,000

Month 1
$1,000

Month 2
$1,100

Month 3
$1,100

Month 4
$2,000

Month 5
$2,000

Month 6
$2,200

Month 7
$2,200

Month 8
$2,400

Month 9
$2,400

Month 10
$2,700

Month 11
$2,700

Month 12
$2,700

$0
$0

$0
$0

$20
$0

$40
$0

$60
$0

$80
$0

$100
$0

$200
$0

$200
$0

$200
$0

$200
$0

$300
$0

$1,000

$1,100

$1,120

$2,040

$2,060

$2,280

$2,300

$2,600

$2,600

$2,900

$2,900

$3,000

Page 1

Appendix
Table: Personnel
Personnel Plan
Manager
Kitchen Staff Member
Delivery Staff (2)

0%
0%
0%

Other
Total People

0%

Total Payroll

Month 1
$2,500
$2,000
$3,000

Month 2
$2,500
$2,000
$3,000

Month 3
$2,500
$2,000
$3,000

Month 4
$2,500
$2,000
$3,000

Month 5
$2,500
$2,000
$3,000

Month 6
$2,500
$2,000
$3,000

Month 7
$2,500
$2,000
$3,000

Month 8
$2,500
$2,000
$3,000

Month 9
$2,500
$2,000
$3,000

Month 10
$2,500
$2,000
$3,000

Month 11
$2,500
$2,000
$3,000

Month 12
$2,500
$2,000
$3,000

$0
4

$0
4

$0
4

$0
4

$0
4

$0
4

$0
4

$0
4

$0
4

$0
4

$0
4

$0
4

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

Page 2

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

Month 1
1
10.00%

Month 2
2
10.00%

Month 3
3
10.00%

Month 4
4
10.00%

Month 5
5
10.00%

Month 6
6
10.00%

Month 7
7
10.00%

Month 8
8
10.00%

Month 9
9
10.00%

Month 10
10
10.00%

Month 11
11
10.00%

Month 12
12
10.00%

Long-term Interest Rate

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Tax Rate
Other

30.00%
0

30.00%
0

30.00%
0

30.00%
0

30.00%
0

30.00%
0

30.00%
0

30.00%
0

30.00%
0

30.00%
0

30.00%
0

30.00%
0

Page 3

Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Month 1
$9,500
$1,000

Sales
Direct Cost of Sales
Other Production Expenses

Month 2
$10,000
$1,100

Month 3
$10,200
$1,120

Month 4
$13,400
$2,040

Month 5
$13,600
$2,060

Month 6
$14,800
$2,280

Month 7
$15,000
$2,300

Month 8
$17,000
$2,600

Month 9
$17,000
$2,600

Month 10
$18,000
$2,900

Month 11
$18,000
$2,900

Month 12
$20,000
$3,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$1,000

$1,100

$1,120

$2,040

$2,060

$2,280

$2,300

$2,600

$2,600

$2,900

$2,900

$3,000

$8,500
89.47%

$8,900
89.00%

$9,080
89.02%

$11,360
84.78%

$11,540
84.85%

$12,520
84.59%

$12,700
84.67%

$14,400
84.71%

$14,400
84.71%

$15,100
83.89%

$15,100
83.89%

$17,000
85.00%

Payroll

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

Sales and Marketing and Other

Expenses
Depreciation
Leased Equipment

$1,000

$1,000

$1,000

$1,000

$500

$500

$500

$500

$500

$500

$500

$500

$133
$0

$133
$0

$133
$0

$133
$0

$133
$0

$133
$0

$133
$0

$133
$0

$133
$0

$133
$0

$133
$0

$133
$0

Utilities
Insurance
Rent

$500
$0
$1,000

$500
$0
$1,000

$500
$0
$1,000

$500
$0
$1,000

$500
$0
$1,000

$500
$0
$1,000

$500
$0
$1,000

$500
$0
$1,000

$500
$0
$1,000

$500
$0
$1,000

$500
$0
$1,000

$500
$0
$1,000

$1,125

$1,125

$1,125

$1,125

$1,125

$1,125

$1,125

$1,125

$1,125

$1,125

$1,125

$1,125

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Operating Expenses

$11,258

$11,258

$11,258

$11,258

$10,758

$10,758

$10,758

$10,758

$10,758

$10,758

$10,758

$10,758

Profit Before Interest and Taxes

($2,758)

($2,358)

($2,178)

$102

$782

$1,762

$1,942

$3,642

$3,642

$4,342

$4,342

$6,242

EBITDA
Interest Expense

($2,625)
$0

($2,225)
$0

($2,045)
$0

$235
$0

$915
$0

$1,895
$0

$2,075
$0

$3,775
$0

$3,775
$0

$4,475
$0

$4,475
$0

$6,375
$0

($827)

($707)

($653)

$31

$235

$529

$583

$1,093

$1,093

$1,303

$1,303

$1,873

($1,931)
-20.32%

($1,651)
-16.51%

($1,525)
-14.95%

$71
0.53%

$547
4.03%

$1,233
8.33%

$1,359
9.06%

$2,549
15.00%

$2,549
15.00%

$3,039
16.89%

$3,039
16.89%

$4,369
21.85%

Total Cost of Sales

Gross Margin
Gross Margin %

Expenses

Payroll Taxes
Other

Taxes Incurred
Net Profit
Net Profit/Sales

15%

Page 4

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

$9,500
$9,500

$10,000
$10,000

$10,200
$10,200

$13,400
$13,400

$13,600
$13,600

$14,800
$14,800

$15,000
$15,000

$17,000
$17,000

$17,000
$17,000

$18,000
$18,000

$18,000
$18,000

$20,000
$20,000

Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Current Borrowing

New Other Liabilities (interest-free)

0.00%

$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 Long-term Liabilities

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales of Other Current Assets

Sales of Long-term Assets
New Investment Received

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

Subtotal Cash Received

$9,500

$10,000

$10,200

$13,400

$13,600

$14,800

$15,000

$17,000

$17,000

$18,000

$18,000

$20,000

Expenditures

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Expenditures from Operations

Cash Spending

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

Bill Payments
Subtotal Spent on Operations

$127
$7,627

$3,805
$11,305

$4,020
$11,520

$4,145
$11,645

$5,686
$13,186

$5,437
$12,937

$5,936
$13,436

$6,035
$13,535

$6,818
$14,318

$6,835
$14,335

$7,328
$14,828

$7,350
$14,850

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Principal Repayment of Current Borrowing

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Other Liabilities Principal Repayment

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

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

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

Subtotal Cash Spent

$7,627

$11,305

$11,520

$11,645

$13,186

$12,937

$13,436

$13,535

$14,318

$14,335

$14,828

$14,850

Net Cash Flow

$1,873

($1,305)

($1,320)

$1,755

$414

$1,863

$1,564

$3,465

$2,682

$3,665

$3,172

$5,150

Cash Balance

$6,873

$5,568

$4,248

$6,003

$6,417

$8,280

$9,844

$13,310

$15,992

$19,657

$22,830

$27,980

Page 5

Appendix
Table: Balance Sheet
Pro Forma Balance Sheet
Assets

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Starting Balances

Current Assets
Cash
Other Current Assets

$5,000
$0

$6,873
$0

$5,568
$0

$4,248
$0

$6,003
$0

$6,417
$0

$8,280
$0

$9,844
$0

$13,310
$0

$15,992
$0

$19,657
$0

$22,830
$0

$27,980
$0

Total Current Assets

$5,000

$6,873

$5,568

$4,248

$6,003

$6,417

$8,280

$9,844

$13,310

$15,992

$19,657

$22,830

$27,980

Long-term Assets

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

Accumulated Depreciation
Total Long-term Assets

$0
$8,000

$133
$7,867

$266
$7,734

$399
$7,601

$532
$7,468

$665
$7,335

$798
$7,202

$931
$7,069

$1,064
$6,936

$1,197
$6,803

$1,330
$6,670

$1,463
$6,537

$1,596
$6,404

$13,000

$14,740

$13,302

$11,849

$13,471

$13,752

$15,482

$16,913

$20,246

$22,795

$26,327

$29,367

$34,384

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Long-term Assets

Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable

$0

$3,671

$3,884

$3,955

$5,506

$5,239

$5,736

$5,807

$6,590

$6,590

$7,083

$7,083

$7,731

Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$0
$0
$0

$0
$0
$3,671

$0
$0
$3,884

$0
$0
$3,955

$0
$0
$5,506

$0
$0
$5,239

$0
$0
$5,736

$0
$0
$5,807

$0
$0
$6,590

$0
$0
$6,590

$0
$0
$7,083

$0
$0
$7,083

$0
$0
$7,731

Long-term Liabilities

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Liabilities

$0

$3,671

$3,884

$3,955

$5,506

$5,239

$5,736

$5,807

$6,590

$6,590

$7,083

$7,083

$7,731

$50,000
($37,000)

$50,000
($37,000)

$50,000
($37,000)

$50,000
($37,000)

$50,000
($37,000)

$50,000
($37,000)

$50,000
($37,000)

$50,000
($37,000)

$50,000
($37,000)

$50,000
($37,000)

$50,000
($37,000)

$50,000
($37,000)

$50,000
($37,000)

Earnings
Total Capital

$0
$13,000

($1,931)
$11,069

($3,581)
$9,419

($5,106)
$7,894

($5,034)
$7,966

($4,487)
$8,513

($3,254)
$9,746

($1,894)
$11,106

$655
$13,655

$3,205
$16,205

$6,244
$19,244

$9,283
$22,283

$13,653
$26,653

Total Liabilities and Capital

$13,000

$14,740

$13,302

$11,849

$13,471

$13,752

$15,482

$16,913

$20,246

$22,795

$26,327

$29,367

$34,384

Net Worth

$13,000

$11,069

$9,419

$7,894

$7,966

$8,513

$9,746

$11,106

$13,655

$16,205

$19,244

$22,283

$26,653

Paid-in Capital
Retained Earnings

Page 6