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January 2000

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Table of Contents

1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2.0 The Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1


2.1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.2 Company History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.3 Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.3.1 Strategic Relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.4 Value Propositions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

3.0 Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
3.1 Research and Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
3.1.1 Future Product Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
3.2 Production and Delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

4.0 Market Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5


4.1 Target Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
4.2 The Internet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
4.3 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
4.3.1 Growth Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
4.4 Limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
4.5 Distribution Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

5.0 Competitive Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9


5.1 Competitive Advantages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

6.0 Marketing and Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10


6.1 Marketing Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

7.0 Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

8.0 Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12


8.1 Significant Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
8.2 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
8.3 Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
8.4 Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
8.5 Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
8.6 Business Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Web Services Provider

1.0 Executive Summary

Web Services Provider's key markets for DSL are small and medium businesses, nationwide.
Web Services Provider's key markets for Web hosting and resale accounts are Web design
firms, individuals, and small businesses with a need for space on a server. Web Services
Provider's key markets for dedicated servers are small to large companies where security and
speed are necessary. Web Services Provider's key market(s) for collocation include medium
and small businesses such as online trading, e-tailers, online information sites, and
entertainment Web companies.

Computer telephony integration (CTI) is the convergence of the telephone and computing
industries. Currently, the CTI market totals $4 billion and is growing at 30% a year, with many
segments growing at a rate of over 100% a year. The Washington-based MultiMedia
Telecommunications Association estimates that the CTI market will grow by nearly 70% in the
next year, and triple by the year 2000.

Highlights (Planned)

$8,000,000

$7,000,000

$6,000,000

$5,000,000
Sales
$4,000,000 Gross Margin

$3,000,000 Net Profit

$2,000,000

$1,000,000

$0
2000 2001 2002

2.0 The Company

Legal Business Description

Web Services Provider was founded in September 1993 in Richmond, Virginia as an Internet
Service Provider. The company is a Virginia Corporation with principal offices located in
Richmond.

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Web Services Provider

2.1 Mission

The mission of Web Services Provider is to provide quality Internet services, Web hosting, and
DSL service to both large and small clients.

2.2 Company History

Web Services Provider began as a Web hosting company. The company developed a highly-
skilled engineering team dedicated to developing a system to offer clients the greatest degree
of reliability and bandwidth at a more affordable price. Web Services Provider, with its in-depth
knowledge of Web hosting systems, is now evolving into a large, specialized, Web hosting
service provider.

Table: Past Performance

Past Performance
1997 1998 1999
Sales $0 $0 $900,000
Gross Margin $0 $0 $700,000
Gross Margin % 0.00% 0.00% 77.78%
Operating Expenses $0 $0 $700,000
Collection Period (Days) 0 0 3
Inventory Turnover 0.00 0.00 0.00

Balance Sheet
Short-term Assets 1997 1998 1999
Cash $0 $0 $2,450
Accounts Receivable $0 $0 $14,200
Inventory $0 $0 $24,450
Other Short-term Assets $0 $0 $1,050
Total Short-term Assets $0 $0 $42,150
Long-term Assets
Capital Assets $0 $0 $5,250
Accumulated Depreciation $0 $0 $1,000
Total Long-term Assets $0 $0 $4,250
Total Assets $0 $0 $46,400

Capital and Liabilities


1997 1998 1999
Accounts Payable $0 $0 $10,000
Current Borrowing $0 $0 $500
Other Short-term Liabilities $0 $0 $10,900
Subtotal Short-term Liabilities $0 $0 $21,400

Long-term Liabilities $0 $0 $3,550


Total Liabilities $0 $0 $24,950
Paid-in Capital $0 $0 $100,000
Retained Earnings $0 $0 ($78,550)
Earnings $0 $0 $0
Total Capital $0 $0 $21,450
Total Capital and Liabilities $0 $0 $46,400

Other Inputs 1997 1998 1999


Payment Days 0 0 30
Sales on Credit $0 $0 $900,000
Receivables Turnover 0.00 0.00 63.38

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Web Services Provider

Past Performance

$900,000

$800,000

$700,000

$600,000
Sales
$500,000
Gross
$400,000
Net
$300,000

$200,000

$100,000

$0
1997 1998 1999

2.3 Strategy

The Web Services Provider strategy is to advertise key competitive advantages in an effective
advertising campaign. The company plans to develop a larger clientele and maintain a price
advantage through rapid growth. The company's goal in the next year is to grow its core
customer base quickly and efficiently while focusing on the most profitable sector of the
market. The company's goal in the 2-5 years is to grow through acquisitions of smaller
companies and separate itself from the competition by price and services.

2.3.1 Strategic Relationships

The company has strategic alliances with VISP. This alliance is valuable because it provides a
direct connection to an AB-299 Internet connection with unlimited bandwidth. This relationship
is explored more in the Competitive Advantages section.

2.4 Value Propositions

Web Services Provider's products and services offer the following advantages to customers.

Bandwidth.
Reliability.
Service.
Flexibility.

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Web Services Provider

3.0 Services

Main services provided by Web Services Provider are outlined below.

1. DSL. A Digital Subscriber Line (DSL) is high-speed Internet access that is an "on all the
time" connection and ranges in speed from 144k to 6Gb transfer rate.

2. Hosting. Web hosting clients generally have the company place a single, or several,
website on a server in our facility and pay for the amount of disk space that they need
to operate their site.

3. Dedicated Server. Clients seeking to maximize the speed of their site due to high
traffic or download will lease a dedicated server from Web Services Provider, leaving
the maximum capability of the server all to their own site.

4. Collocation. Collocation customers provide the hardware themselves and administer


their site or sites via the Internet.

3.1 Research and Development

Having already established the relationships and infrastructure, Web Services Provider will
continue to search for emerging and existing technologies to improve and expand lines of
business. As advances in technology continue, Web Services Provider will upgrade to meet
specific objectives of present and future clientele.

3.1.1 Future Product Plans

Web Services Provider plans to respond to market needs by keeping abreast of all new
technologies and updates to be first to market using its already established lines of business as
a market vehicle. Web Services Provider will move quickly on plans for next generation
products/services.

3.2 Production and Delivery

When hosting and dedicated server clients are secured, orders will be processed immediately
and the customer can be up and running within a few minutes. Dedicated server clients can be
online within 1-2 hours unless a special server must be built.

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Web Services Provider

4.0 Market Analysis

Web Services Provider's key markets for DSL are small and medium businesses, nationwide.
Web Services Provider's key markets for Web hosting and resale accounts are Web design
firms, individuals, and small businesses with a need for space on a server. Web Services
Provider's key markets for dedicated servers are small to large companies where security and
speed are necessary. Web Services Provider's key markets for collocation include medium and
small businesses such as online trading, e-tailers, online information sites, and entertainment
companies.

Within these markets, Web Services Provider focuses on the more lucrative dedicated server
and collocation clientele because they create less overhead and more profit than equal
revenue generating, smaller clients. Additionally, these markets require less service-intensive
efforts and create more profit. Its' margins are 40%-80% on larger and medium size clients.

Computer telephony integration (CTI) is the convergence of the telephone and computing
industries. Currently, the CTI market totals $4 billion and is growing at 30% a year, with many
segments growing at a rate of over 100% a year. The Washington-based MultiMedia
Telecommunications Association estimates that the CTI market will grow by nearly 70% in the
next year, and triple by the year 2000.

Consumers improve their shopping experiences

In a relatively short period of time, the Internet has provided the savvy consumer with a
number of benefits, particularly convenience and information. Obviously, consumers who shop
online face a much different experience than they would in "real-world" retail. First and
foremost, a shopper need not leave the comfort of home or office in order to make a
purchase. The convenience of online shopping has proven to be a big attraction for many
consumers, particularly for goods that are not needed immediately, like books, CDs, or apparel.

The information that is currently available online is another boon to consumers. It is relatively
easy to conduct research on various products over the Internet, giving consumers all the
information they need to help make an informed decision regarding a major purchase.
Consumers can thoroughly research big-ticket items like cars, electronics, or computers for
desired features, product performance, or price. The cost of a product has become simple to
research through many search engines. A consumer need only specify a product, type it in the
appropriate place on a comparison-oriented website, and then examine the resulting list of
prices, which contains links to the selling websites. While consumers do not always purchase
the lowest-priced item, the nature of the Internet makes comparison shopping so easy that
prices in many categories of goods will undoubtedly decline over time.

Table: Market Analysis

Market Analysis
Potential Customers Growth 2000 2001 2002 2003 2004 CAGR
Online E-trading 15% 200,000 230,000 264,500 304,175 349,801 15.00%
Entertainment 10% 160,000 176,000 193,600 212,960 234,256 10.00%
Global Corporations 15% 95,000 109,250 125,638 144,484 166,157 15.00%
Corporations 10% 100,000 110,000 121,000 133,100 146,410 10.00%
Total 12.74% 555,000 625,250 704,738 794,719 896,624 12.74%

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Web Services Provider

Market Analysis (Pie)

Online E-trading
Entertainment
Global Corporations
Corporations

4.1 Target Market

Web Services Provider is aiming to establish itself in markets that it believes will define the
future of Web hosting. The company is pursuing dedicated server and collocation accounts,
online trading companies, and e-entertainment companies because they need bandwidth, 24-
hour access for their customers, faster connections, and other services for their clients which
the company able to provide.

The company's target customers are as follows.

Online E-trading.
Entertainment.
Global Corporations.
Corporations.

4.2 The Internet

As of year-end 1998, almost 160 million users accessed the Internet regularly, up from
approximately 101 million at the end of 1997, according to IDC, an industry analysis and
research company. Clearly, the Internet is in an exceptional growth phase. This growth has
pushed the capacity of existing networking infrastructure to its limits, resulting in frustration
by Internet users.

Still, consumers have found the Internet to be a useful tool in the research and purchase of
goods and services. Corporations have found that, while the Internet is challenging traditional
business models, it also offers significant advantages to companies that fully embrace the
medium.

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Web Services Provider

4.3 Market Trends

Exceptional growth

By any measure, the Internet is one of the fastest-growing commercial phenomena ever
witnessed by society. Host computers, or servers, have exploded from 3.2 million in 1994 to
roughly 56.2 million as of July 1999. During the same time period, the number of websites
roared to more than 5 million from only 3,000.

A key factor in the recent growth of the Internet is the popularity of the sub-$1,000 PC.
Rapidly falling component prices have allowed PC manufacturers to pass cost savings on to
their customers, resulting in a more attractively priced product. Computers sold at or below
the $1,000 level have appealed to first-time PC users and lower income families. Because of
the more affordable prices, PC penetration in the United States is now approximately 50%,
according to Dataquest, a market research firm based in San Jose, California.

As a result of the Internet's historical roots in the U.S. Department of Defense, as well as the
rising penetration of PCs, the United States accounts for more than half of the world's total
Internet users. The European market, by contrast, has been held back by the high cost of
Internet access. Consumers are typically billed twice in these markets, once by the ISP and
once by the phone company. However, the forces of telecommunications deregulation in
Europe finally appear to be having an effect, as several phone companies have recently
eliminated access fees and now bill only on a per-minute basis. Such moves should eventually
increase the penetration of the Internet in Europe.

In the United States, less than one-third of the population is connected, leaving plenty of room
for growth. In 1996, people asked colleagues and friends if they had an electronic mail
address. In 1997, people were asked what their electronic mail address was. When consumers
today are asked why they purchased a personal computer, the most common answer is to
connect to the Internet to get their email.

4.3.1 Growth Trends

Bandwidth bottlenecks frustrate consumers

Today's telecommunications network infrastructure was not designed for the booming traffic
created by Internet use. Ordinary telephone lines are optimized for short conversations,
whereas Internet users typically stay online for ours at a time. Growing corporate use of the
Internet to communicate with suppliers and customers has put additional strains on the
system.

Adding to the capacity problem are the use of multimedia attachments to email, more complex
multimedia websites, larger files being downloaded by users, and other bandwidth-hungry
applications. Although the predicted global meltdown of the Internet has not come to pass,
delays in navigating the Web and in receiving email continue to plague the industry and
frustrate users.

But solutions are on the way

The vast majority of Internet users use dial-up modems to access the Internet through their
ISPs. As a result of the capacity constraints inherent in using analog modem technology over
copper wires, 56 kilobits per second is the maximum capacity available today for most
residential customers.

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Web Services Provider
New technologies, such as cable modems and digital subscriber line (DSL) systems, promise a
quantum leap in bandwidth: up to 30 megabites per second (Mbps) and 12 Mbps, respectively.
Both technologies also offer an added advantage in that they are always "on": a consumer
need not physically dial into an ISP to access the Internet.

Cable modems. The nascent market for cable modems is beginning to exhibit strong
growth. The number of cable Internet service subscribers numbered more than 1
million as of July 1999, up from 500,000 in 1998.

The current leaders in this burgeoning market are Excite@Home and RoadRunner,
North America's No. 1 and No. 2 cable modem services, respectively. RoadRunner is
provided by ServiceCo LLC-a joint venture, led by time Warner Inc. that includes
MediaOne Group, Inc., Microsoft Corporation, Compaq Corporation, and
Advance/Newhouse Partnership, a private firm.

Digital subscriber lines. These systems allow telephone companies to offer faster
service over copper wires by reducing signal distortion. The number of DSL subscribers
was approximately 20,000 in 1998.

The fastest form of DSL is asymmetric digital subscriber line, or ADSL, includes
Ameritech Corporation, SBC Communications Inc., Bell Atlantic Corporation, U S. WEST
Inc., Sprint Corporation, MCI World Com Inc., and GTE Corporation.

In contrast to cable modems, which have been deployed in select regions for a few years,
consumer-oriented DSL service is only now being rolled out more aggressively. Cable
companies have also resolved their standardization issues and have come further in preparing
their networks for broadband than have the telcos.

While the number of DSL subscribers should exhibit strong growth in 1999, it appears that
cable modems will still command the bulk of the broadband market. One reason is that cable
modems have an inherent speed advantage. The consumer friendly version of ADSL, known as
G.Lite, offers speeds of up to 1.5 Mbps, compared with top speeds of 30 Mbps for cable
modems.

4.4 Limitations

Aside from bandwidth constraints, another more serious problem has recently been brought to
light, which threatens to forestall the previously explosive growth of the Internet. According to
a study conducted by the Department of Commerce, significant disparities continue to exist
between certain demographic groups and regions with regard to Internet access. For example,
those households with incomes of $75,000 or higher are more than twenty times as likely to
have Internet access than those at the lowest income level.

The presence of such disparities would seem to limit the potential growth of the Internet, and
would likely impact many of the market forecasts discussed in the "Industry Profile" section of
this report. However, both government and businesses are aware of the problem and are
currently taking steps to close this so-called "digital divide." The U.S. government plans to use
community centers to increase access to the Internet for all Americans. Meanwhile, many
businesses also plan to help educate and train individuals who may otherwise be at a
disadvantage in today's increasingly technological workplace.

Far-reaching benefits

Although the Internet is still evolving as a medium for communications and commerce, it has
already had a substantial impact on both consumers and businesses. For consumers, the

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Web Services Provider
advent of online shopping has brought greater convenience, while businesses have enjoyed
productivity gains.

4.5 Distribution Strategy

Web Services Provider uses a direct sales force, relationship selling, and sales/support lines to
reach its markets. These channels are most appropriate because each customer has special
demands and needs to be treated differently. After the initial contact, by magazine, referral, or
email, the customer is assessed and assigned a sales rep and tech support person to help
them and to familiarize themselves with each individual company's needs and history.

5.0 Competitive Analysis

Competitive threats come from the more established hosting companies with large amounts of
operating capital. Their weaknesses are, however, even with strong brand awareness, they
cannot afford to move their facilities. This ties them to their current locations, which lack
adequate bandwidth, speed, and reliability due to their connections through local telco
connectivity.

DSL. Web Services Provider's competitors include other XDSL resellers.

Hosting. Web Services Provider's competitors include online Web hosting companies.

Dedicated Server. Web Services Provider's competitors include companies providing single
site Web servers for increased speed and reliability.

Colocation. Web Services Provider's competitors include Web hosting companies offering
customer or vendor provided large server or servers housed in their facilities and usually
managed over the Internet by the customer.

5.1 Competitive Advantages

Strategic alliance with VISP - VISP is opening up two new facilities in the next three months,
one in Atlanta and the other in Seattle. Web Services Provider will have access space on both
sites, and with special load-balancing software, will enable the company to guarantee 100%
uptime for any dedicated server and collocation client where uptime is critical to their business.

AB 299 Internet Connection--more beneficial than tier system; a tier 1 connection means that
you are actually directly connected to the Internet.

Downtime-Dynamic load balancing--a large part of the problem and downtime with an Internet
connection for hosting companies is due to local phone company.

Price--due to the tier 1 connection, Web Services Provider does not have to pay local phone
companies connection fees and, as such, its' prices are lower than those of competitors.

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Web Services Provider

6.0 Marketing and Sales

Marketing

Web Services Provider markets its products as solutions to high traffic and bandwidth-
intensive Web companies whose online reliability and speed are critical to daily business.
Target companies include online stock trading companies, e-tailers, and corporations with
graphics and/or streaming video.

Sales are made through Web Services Providers' national advertising campaign. The sales
process involves several steps which include: 1) The first contact when the perspective
customers first impression is made while viewing one the magazines in which we advertise. 2)
At this point, the customer will call our sales line or go to our website. 3) The customer can
then call the sales line where a trained representative will answer questions and proceed with
initiating service and billing. This approach will be used because each customers concerns and
needs will be met immediately to capture the customer at this point of contact. The average
sales cycle from first contact to closing the sale is between one and seven days.

Sales Monthly (Planned)

$140,000

$120,000

$100,000

$80,000
All Services
$60,000 Other

$40,000

$20,000

$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Table: Sales Forecast (Planned)

Sales Forecast
Sales 2000 2001 2002
All Services $1,500,000 $4,500,000 $7,500,000
Other $0 $0 $0
Total Sales $1,500,000 $4,500,000 $7,500,000

Direct Cost of Sales 2000 2001 2002


All Services $100,000 $150,000 $200,000
Other $0 $0 $0
Subtotal Direct Cost of Sales $100,000 $150,000 $200,000

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Web Services Provider

6.1 Marketing Communication

The key message associated with the company's products and services is better reliability,
speed, and bandwidth for the same price. The company's promotional plan is diverse and
includes a range of marketing communications:

1. Public relations. Press releases are issued to both technical trade journals and major
business publications such as Wall Street Journal, Business Week, and others.
2. Trade shows. Company representatives attend and participate in several trade shows
such as Apex and Comdex.
3. Industry conferences and seminars, research publishing, and print media.
Web Services Provider presents its key advantages at conferences and publishes
articles about its work in publications such as e-business Advisor, Wired, Microsoft
Internet Developer, Web Techniques, Business 2.0, and PC Computing. Local and
national public relations will be handled by Creative Garage II's marketing firm.
4. Print advertising and article publishing. The company's print advertising program
includes advertisements in technical trade publications such as E-business Journal,
Wired, Web Techniques, Microsoft Internet Developer, Business 2.0, PC Computing,
direct mail pieces, brochures, and other print media.
5. Internet. The company currently has plans to redevelop its current website because
that is a primary marketing channel.

7.0 Management Summary

The company's management philosophy is based on responsibility and mutual respect. Web
Services Provider has an environment and structure that encourages productivity and respect
for customers and fellow employees.

Officers and Key Employees


Web Services Provider's management is highly experienced and qualified. Key members of the
management team, their backgrounds, and responsibilities are as follows.

Mr. Michael Smith, President and CEO.


Mr. James Boyd, Vice President.

Note: Backgrounds have been removed for confidentiality.

Table: Personnel (Planned)

Personnel Plan
2000 2001 2002
Marketing and Sales $150,000 $198,000 $254,000
Technical Services $150,000 $198,000 $254,000
Accounting $60,000 $99,000 $136,000
Administrative and HR $120,000 $132,000 $194,000
Total Payroll $480,000 $627,000 $838,000

Total People 15 18 22
Payroll Burden $72,000 $94,050 $125,700
Total Payroll Expenditures $552,000 $721,050 $963,700

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Web Services Provider

8.0 Financial Plan

Funding Requirements and Uses

The company is raising $1.25 million for the purpose of growth and operations. This funding
will cover operating expenses and product development during this period.

8.1 Significant Assumptions

The company operates as a Virginia Corporation. The following financial projection is based on
sales volume at the levels described in the revenue section and presents, to the best of
management's knowledge and belief, the company's expected assets, liabilities, capital,
revenues, and expenses. The projections reflect management's judgement of the expected
conditions and its expected course of action given the hypothetical assumptions.

The table below provides significant assumptions that drive the company's financial projections.

Table: General Assumptions

General Assumptions
2000 2001 2002
Short-term Interest Rate % 10.00% 10.00% 10.00%
Long-term Interest Rate % 10.00% 10.00% 10.00%
Tax Rate % 25.00% 25.00% 25.00%
Expenses in Cash % 10.00% 10.00% 10.00%
Sales on Credit % 100.00 100.00 100.00
% % %
Personnel Burden % 15.00% 15.00% 15.00%

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Web Services Provider

8.2 Break-even Analysis

The following chart and table provide the Break-even Assumptions for Web Services Provider.

Break-even Analysis

$100,000

$50,000

$0

($50,000)

($100,000)
$0 $40,000 $80,000 $120,000 $160,000 $200,000

Monthly break-even point

Break-even point = where line intersects with 0

Table: Break-even Analysis

Break-even Analysis:
Monthly Units Break-even 111,111
Monthly Sales Break-even $111,111

Assumptions:
Average Per-Unit Revenue $1.00
Average Per-Unit Variable Cost $0.10
Estimated Monthly Fixed Cost $100,000

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Web Services Provider

8.3 Projected Profit and Loss

Web Services Provider is in the early stage of development, thus initial projections have only
been made on accounts that are believed to most drive the income statement.

Table: Profit and Loss (Planned)

Pro Forma Profit and Loss


2000 2001 2002
Sales $1,500,000 $4,500,000 $7,500,000
Direct Cost of Sales $100,000 $150,000 $200,000
Other $50,000 $50,000 $50,000
------------ ------------ ------------
Total Cost of Sales $150,000 $200,000 $250,000
Gross Margin $1,350,000 $4,300,000 $7,250,000
Gross Margin % 90.00% 95.56% 96.67%
Operating Expenses:
Advertising/Promotion $212,000 $400,000 $600,000
Website $10,000 $18,000 $25,000
Miscellaneous $0 $0 $0
Payroll Expense $480,000 $627,000 $838,000
Payroll Burden $72,000 $94,050 $125,700
Depreciation $4,200 $4,500 $5,000
Depreciation $12,000 $18,000 $30,000
Depreciation $2,000 $2,000 $2,000
Depreciation $6,000 $7,000 $8,000
Rent $40,000 $45,000 $48,000
Depreciation $14,400 $20,000 $20,000
Software $12,000 $15,000 $24,000
Product Development $300,000 $300,000 $400,000
Legal & Professional Expense $15,500 $20,000 $25,000
Contractor Labor $12,000 $15,000 $25,000
------------ ------------ ------------
Total Operating Expenses $1,192,100 $1,585,550 $2,175,700
Profit Before Interest and Taxes $157,900 $2,714,450 $5,074,300
Interest Expense Short-term $0 $0 $0
Interest Expense Long-term $0 $0 $0
Taxes Incurred $39,475 $678,613 $1,268,575
Extraordinary Items $0 $0 $0
Net Profit $118,425 $2,035,838 $3,805,725
Net Profit/Sales 7.90% 45.24% 50.74%

8.4 Projected Cash Flow

The chart and table below depict the projected cash flow for the company.

Page 14
Web Services Provider

Cash (Planned)

$1,200,000

$1,000,000

$800,000

$600,000
Net Cash Flow
$400,000 Cash Balance

$200,000

$0

($200,000)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Table: Cash Flow (Planned)

Pro Forma Cash Flow 2000 2001 2002

Cash Received
Cash from Operations:
Cash Sales $0 $0 $0
From Receivables $1,330,867 $4,133,333 $7,133,333
Subtotal Cash from Operations $1,330,867 $4,133,333 $7,133,333

Additional Cash Received


Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of other Short-term Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $1,250,000 $0 $0
Subtotal Cash Received $2,580,867 $4,133,333 $7,133,333

Expenditures 2000 2001 2002


Expenditures from Operations:
Cash Spent on Costs and Expenses $142,538 $203,861 $302,558
Wages, Salaries, Payroll Taxes, etc. $552,000 $721,050 $963,700
Payment of Accounts Payable $1,207,140 $1,797,882 $2,663,679
Subtotal Spent on Operations $1,901,678 $2,722,793 $3,929,936

Additional Cash Spent


Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $500 $0 $0
Other Liabilities Principal Repayment $10,900 $0 $0
Long-term Liabilities Principal Repayment $3,550 $0 $0
Purchase Other Short-term Assets $0 $0 $0
Purchase Long-term Assets $600,000 $300,000 $300,000
Adjustment for Assets Purchased on Credit ($600,000) ($300,000) ($300,000)
Subtotal Cash Spent $1,916,628 $2,722,793 $3,929,936

Net Cash Flow $664,239 $1,410,540 $3,203,397


Cash Balance $666,689 $2,077,229 $5,280,627

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Web Services Provider

8.5 Projected Balance Sheet

Projected Balance Sheets for 2000 - 2002 can be found in the table below.

Table: Balance Sheet (Planned)

Pro Forma Balance Sheet

Assets
Short-term Assets 2000 2001 2002
Cash $666,689 $2,077,229 $5,280,627
Accounts Receivable $183,333 $550,000 $916,667
Other Short-term Assets $1,050 $1,050 $1,050
Total Short-term Assets $851,072 $2,628,279 $6,198,343
Long-term Assets
Long-term Assets $605,250 $905,250 $1,205,250
Accumulated Depreciation $5,200 $9,700 $14,700
Total Long-term Assets $600,050 $895,550 $1,190,550
Total Assets $1,451,122 $3,523,829 $7,388,893

Liabilities and Capital


2000 2001 2002
Accounts Payable $85,697 $122,567 $181,906
Current Borrowing $0 $0 $0
Other Short-term Liabilities $0 $0 $0
Subtotal Short-term Liabilities $85,697 $122,567 $181,906

Long-term Liabilities $0 $0 $0
Total Liabilities $85,697 $122,567 $181,906

Paid-in Capital $1,350,000 $1,350,000 $1,350,000


Retained Earnings ($103,000) $15,425 $2,051,263
Earnings $118,425 $2,035,838 $3,805,725
Total Capital $1,365,425 $3,401,263 $7,206,988
Total Liabilities and Capital $1,451,122 $3,523,829 $7,388,893
Net Worth $1,365,425 $3,401,263 $7,206,988

8.6 Business Ratios

The following table outlines some of the more important ratios from the information retrieval
industry. The final column, Industry Profile, details specific ratios based on the industry as it is
classified by the Standard Industry Classification (SIC) code, 7375.

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Web Services Provider

Table: Ratios (Planned)

Ratio Analysis
2000 2001 2002 Industry Profile
Sales Growth 66.67% 200.00% 66.67% 9.70%

Percent of Total Assets


Accounts Receivable 12.63% 15.61% 12.41% 25.00%
Inventory 0.00% 0.00% 0.00% 5.30%
Other Short-term Assets 0.07% 0.03% 0.01% 46.30%
Total Short-term Assets 58.65% 74.59% 83.89% 76.60%
Long-term Assets 41.35% 25.41% 16.11% 23.40%
Total Assets 100.00% 100.00% 100.00% 100.00%

Other Short-term Liabilities 0.00% 0.00% 0.00% 49.40%


Subtotal Short-term Liabilities 5.91% 3.48% 2.46% 36.20%
Long-term Liabilities 0.00% 0.00% 0.00% 21.20%
Total Liabilities 5.91% 3.48% 2.46% 57.40%
Net Worth 94.09% 96.52% 97.54% 42.60%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 90.00% 95.56% 96.67% 0.00%
Selling, General & Administrative Expenses 82.11% 50.31% 45.92% 78.10%
Advertising Expenses 14.13% 8.89% 8.00% 0.90%
Profit Before Interest and Taxes 10.53% 60.32% 67.66% 1.90%

Main Ratios
Current 9.93 21.44 34.07 1.57
Quick 9.93 21.44 34.07 1.19
Total Debt to Total Assets 5.91% 3.48% 2.46% 70.60%
Pre-tax Return on Net Worth 11.56% 79.81% 70.41% 4.10%
Pre-tax Return on Assets 10.88% 77.03% 68.67% 13.80%

Business Vitality Profile 2000 2001 2002 Industry


Sales per Employee $100,000 $250,000 $340,909 $0
Survival Rate 0.00%

Additional Ratios 2000 2001 2002


Net Profit Margin 7.90% 45.24% 50.74% n.a
Return on Equity 8.67% 59.86% 52.81% n.a

Activity Ratios
Accounts Receivable Turnover 8.18 8.18 8.18 n.a
Collection Days 24 30 36 n.a
Inventory Turnover 0.00 0.00 0.00 n.a
Accounts Payable Turnover 14.97 14.97 14.97 n.a
Total Asset Turnover 1.03 1.28 1.02 n.a

Debt Ratios
Debt to Net Worth 0.06 0.04 0.03 n.a
Short-term Liab. to Liab. 1.00 1.00 1.00 n.a

Liquidity Ratios
Net Working Capital $765,375 $2,505,713 $6,016,438 n.a
Interest Coverage 0.00 0.00 0.00 n.a

Additional Ratios
Assets to Sales 0.97 0.78 0.99 n.a
Current Debt/Total Assets 6% 3% 2% n.a
Acid Test 7.79 16.96 29.04 n.a
Sales/Net Worth 1.10 1.32 1.04 n.a
Dividend Payout $0 0.00 0.00 n.a

Page 17
Appendix

Appendix Table: Sales Forecast (Planned)

Sales Forecast
Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
All Services $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
All Services $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,337
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,337

Page 1
Appendix

Appendix Table: Personnel (Planned)

Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Marketing and Sales $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500
Technical Services $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500
Accounting $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Administrative and HR $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Total Payroll $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000

Total People 15 15 15 15 15 15 15 15 15 15 15 15
Payroll Burden $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000
Total Payroll Expenditures $46,000 $46,000 $46,000 $46,000 $46,000 $46,000 $46,000 $46,000 $46,000 $46,000 $46,000 $46,000

Page 2
Appendix

Appendix Table: General Assumptions

General Assumptions
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Short-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%
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 % 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
Expenses in Cash % 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Sales on Credit % 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Personnel Burden % 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00%

Page 3
Appendix

Appendix Table: Profit and Loss (Planned)

Pro Forma Profit and Loss


Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000
Direct Cost of Sales $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,337
Other $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Cost of Sales $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,504
Gross Margin $112,500 $112,500 $112,500 $112,500 $112,500 $112,500 $112,500 $112,500 $112,500 $112,500 $112,500 $112,496
Gross Margin % 90.00% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00%
Operating Expenses:
Advertising/Promotion $17,667 $17,667 $17,667 $17,667 $17,667 $17,667 $17,667 $17,667 $17,667 $17,667 $17,667 $17,667
Website $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833
Miscellaneous $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Payroll Expense $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000
Payroll Burden $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000
Depreciation $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350
Depreciation $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Depreciation $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167
Depreciation $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Rent $1,250 $2,500 $2,500 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750
Depreciation $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Software $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Product Development $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Legal & Professional Expense $10,000 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Contractor Labor $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Operating Expenses $105,967 $97,717 $97,717 $98,967 $98,967 $98,967 $98,967 $98,967 $98,967 $98,967 $98,967 $98,967
Profit Before Interest and Taxes $6,534 $14,784 $14,784 $13,534 $13,534 $13,534 $13,534 $13,534 $13,534 $13,534 $13,534 $13,530
Interest Expense Short-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Interest Expense Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $1,633 $3,696 $3,696 $3,383 $3,383 $3,383 $3,383 $3,383 $3,383 $3,383 $3,383 $3,382
Extraordinary Items $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit $4,900 $11,088 $11,088 $10,150 $10,150 $10,150 $10,150 $10,150 $10,150 $10,150 $10,150 $10,147
Net Profit/Sales 3.92% 8.87% 8.87% 8.12% 8.12% 8.12% 8.12% 8.12% 8.12% 8.12% 8.12% 8.12%

Page 4
Appendix

Appendix Table: Cash Flow (Planned)

Pro Forma Cash Flow Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Cash Received
Cash from Operations:
Cash Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
From Receivables $9,467 $69,822 $126,578 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000
Subtotal Cash from Operations $9,467 $69,822 $126,578 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000

Additional Cash Received


Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $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 Short-term 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 $1,250,00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
0
Subtotal Cash Received $1,259,46 $69,822 $126,578 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000
7

Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Expenditures from Operations:
Cash Spent on Costs and Expenses $22,375 $9,756 $9,756 $21,850 $9,850 $9,850 $9,850 $9,850 $9,850 $9,850 $9,850 $9,850
Wages, Salaries, Payroll Taxes, etc. $46,000 $46,000 $46,000 $46,000 $46,000 $46,000 $46,000 $46,000 $46,000 $46,000 $46,000 $46,000
Payment of Accounts Payable $16,712 $197,589 $87,806 $91,434 $193,050 $88,650 $88,650 $88,650 $88,650 $88,650 $88,650 $88,650
Subtotal Spent on Operations $85,087 $253,345 $143,562 $159,284 $248,900 $144,500 $144,500 $144,500 $144,500 $144,500 $144,500 $144,500

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 $500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $10,900 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $3,550 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Short-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $150,000 $30,000 $30,000 $150,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000
Adjustment for Assets Purchased on Credit ($150,000) ($30,000) ($30,000) ($150,000) ($30,000) ($30,000) ($30,000) ($30,000) ($30,000) ($30,000) ($30,000) ($30,000)
Subtotal Cash Spent $100,037 $253,345 $143,562 $159,284 $248,900 $144,500 $144,500 $144,500 $144,500 $144,500 $144,500 $144,500

Net Cash Flow $1,159,42 ($183,523) ($16,984) ($34,284) ($123,900) ($19,500) ($19,500) ($19,500) ($19,500) ($19,500) ($19,500) ($19,500)
9
Cash Balance $1,161,87 $978,356 $961,372 $927,087 $803,188 $783,688 $764,188 $744,688 $725,189 $705,689 $686,189 $666,689
9

Page 5
Appendix

Appendix Table: Balance Sheet (Planned)

Pro Forma Balance Sheet

Assets
Short-term Assets Starting Balances Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash $2,450 $1,161,879 $978,356 $961,372 $927,087 $803,188 $783,688 $764,188 $744,688 $725,189 $705,689 $686,189 $666,689
Accounts Receivable $14,200 $129,733 $184,911 $183,333 $183,333 $183,333 $183,333 $183,333 $183,333 $183,333 $183,333 $183,333 $183,333
Other Short-term Assets $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050
Total Short-term Assets $17,700 $1,292,663 $1,164,317 $1,145,755 $1,111,471 $987,571 $968,071 $948,572 $929,072 $909,572 $890,072 $870,573 $851,072
Long-term Assets
Long-term Assets $5,250 $155,250 $185,250 $215,250 $365,250 $395,250 $425,250 $455,250 $485,250 $515,250 $545,250 $575,250 $605,250
Accumulated Depreciation $1,000 $1,350 $1,700 $2,050 $2,400 $2,750 $3,100 $3,450 $3,800 $4,150 $4,500 $4,850 $5,200
Total Long-term Assets $4,250 $153,900 $183,550 $213,200 $362,850 $392,500 $422,150 $451,800 $481,450 $511,100 $540,750 $570,400 $600,050
Total Assets $21,950 $1,446,563 $1,347,867 $1,358,955 $1,474,321 $1,380,071 $1,390,221 $1,400,372 $1,410,522 $1,420,672 $1,430,822 $1,440,973 $1,451,122

Liabilities and Capital


Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Accounts Payable $10,000 $194,662 $84,879 $84,879 $190,095 $85,695 $85,695 $85,695 $85,695 $85,695 $85,695 $85,695 $85,697
Current Borrowing $500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Short-term Liabilities $10,900 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Short-term Liabilities $21,400 $194,662 $84,879 $84,879 $190,095 $85,695 $85,695 $85,695 $85,695 $85,695 $85,695 $85,695 $85,697

Long-term Liabilities $3,550 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0


Total Liabilities $24,950 $194,662 $84,879 $84,879 $190,095 $85,695 $85,695 $85,695 $85,695 $85,695 $85,695 $85,695 $85,697

Paid-in Capital $100,000 $1,350,000 $1,350,000 $1,350,000 $1,350,000 $1,350,000 $1,350,000 $1,350,000 $1,350,000 $1,350,000 $1,350,000 $1,350,000 $1,350,000
Retained Earnings ($103,000) ($103,000) ($103,000) ($103,000) ($103,000) ($103,000) ($103,000) ($103,000) ($103,000) ($103,000) ($103,000) ($103,000) ($103,000)
Earnings $0 $4,900 $15,988 $27,076 $37,226 $47,376 $57,527 $67,677 $77,827 $87,977 $98,127 $108,278 $118,425
Total Capital ($3,000) $1,251,900 $1,262,988 $1,274,076 $1,284,226 $1,294,376 $1,304,527 $1,314,677 $1,324,827 $1,334,977 $1,345,128 $1,355,278 $1,365,425
Total Liabilities and Capital $21,950 $1,446,563 $1,347,867 $1,358,955 $1,474,321 $1,380,071 $1,390,221 $1,400,372 $1,410,522 $1,420,672 $1,430,822 $1,440,973 $1,451,122
Net Worth ($3,000) $1,251,900 $1,262,988 $1,274,076 $1,284,226 $1,294,376 $1,304,527 $1,314,677 $1,324,827 $1,334,977 $1,345,128 $1,355,278 $1,365,425

Page 6