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 Confidentiality Agreement

The undersigned reader ac knowledges that the information provided by Austin Kinetic in this
business plan is confidential; therefore, reader agrees not to disc lose it without the express
written permission of an Austin Kinetic officer.

It is ac knowledged 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 disc losure or use of same by reader, may cause serious harm or damage to Austin
Kinetic.

Upon request, this doc ument is to be immediately returned to any Austin Kinetic officer.

___________________
Signature

___________________
Name (typed or printed)

___________________
Date

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

 Table of Contents

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

Chart: Highlights ......................................................................................................................2
1.1 Objectives ...................................................................................................................................2
1.2 Mission........................................................................................................................................2
1.3 Keys to Success ........................................................................................................................2
2.0 Company Summary.............................................................................................................................3
2.1 Company Ownership .................................................................................................................3
2.2 Start-up Summary ......................................................................................................................3
Table: Start-up Funding ..........................................................................................................4
Chart: Start-up .........................................................................................................................5
Table: Start-up .........................................................................................................................5
3.0 Services................................................................................................................................................5
4.0 Market Analysis Summary..................................................................................................................8
4.1 Market Segmentation ................................................................................................................9
Table: Market Analysis ...........................................................................................................9
Chart: Market Analysis (Pie) ..................................................................................................9
4.2 Target Market Segment Strategy.............................................................................................9
4.3 Service Business Analysis........................................................................................................9
4.3.1 Competition and Buying Patterns .............................................................................10
5.0 Strategy and Implementation Summary..........................................................................................10
5.1 Competitive Edge....................................................................................................................10
5.2 Marketing Strategy ..................................................................................................................10
5.3 Sales Strategy..........................................................................................................................10
5.3.1 Sales Forecast ............................................................................................................10
Table: Sales Forecast.................................................................................................11
Chart: Sales Monthly ...................................................................................................11
Chart: Sales by Year ...................................................................................................12
5.4 Milestones ................................................................................................................................12
Table: Milestones..................................................................................................................12
Chart: Milestones ..................................................................................................................13
6.0 Web Plan Summary ..........................................................................................................................13
6.1 Website Marketing Strategy...................................................................................................13
6.2 Development Requirements ...................................................................................................13
7.0 Management Summary ....................................................................................................................13
7.1 Personnel Plan.........................................................................................................................14
Table: Personnel ...................................................................................................................14
8.0 Financial Plan ....................................................................................................................................14
8.1 Important Assumptions............................................................................................................15
Table: General Assumptions ...............................................................................................15
8.2 Break-even Analysis................................................................................................................15
Chart: Break-even Analysis .................................................................................................16
Table: Break-even Analysis .................................................................................................16
8.3 Projected Profit and Loss .......................................................................................................16
Chart: Profit Monthly .............................................................................................................17
Chart: Profit Yearly................................................................................................................17
Chart: Gross Margin Monthly ...............................................................................................18
Chart: Gross Margin Yearly..................................................................................................18
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 Table of Contents
Table: Profit and Loss ..........................................................................................................19
8.4 Projected Cash Flow...............................................................................................................19
Chart: Cash ...........................................................................................................................20
Table: Cash Flow..................................................................................................................21
8.5 Projected Balance Sheet ........................................................................................................22
Table: Balance Sheet ...........................................................................................................22
8.6 Business Ratios .......................................................................................................................23
Table: Ratios .........................................................................................................................24
8.7 Long-term Plan.........................................................................................................................24
Table: Sales Forecast ...............................................................................................................................1
Table: Personnel ........................................................................................................................................2
Table: General Assumptions ....................................................................................................................3
Table: Profit and Loss ...............................................................................................................................4
Table: Cash Flow .......................................................................................................................................5
Table: Balance Sheet ................................................................................................................................6

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 Austin Kinetic

1.0 Executive Summary

Austin Kinetic is an information technology consulting firm serving the Austin Metro area with top
quality engineers who have a keen interest in c ustomer satisfac tion. The time is right for
consulting companies to flourish. With the recent gains in the stoc k market, capital is again
bec oming available for IT infrastructure improvements. Austin Kinetic will position itself to win
a good deal of that emerging business. The company has been incorporated in Nevada and
has ac quired an operating permit for Texas. Austin Kinetic anticipates an enviable cumulative
net profit by the end of year three.

The Market

Austin is known as "little Silicon valley" due to its high percentage of technology companies.
With its relatively low cost of living and ample space for expansion, Austin promises to be a
strong market into the foreseeable future. There are currently over 7,000 c ompanies that fit
the aim of Austin Kinetic in the Austin Metro area, with only four major competitors. This
combination provides a rich opportunity, bolstered by the current up-turn in the area and
national economy.

The Business Model

Austin Kinetic will leverage the industry knowledge of its founding members to provide
outstanding service to its customers. The company will initially have as little overhead as
possible with its founders working out of their own homes, using their own transportation
means to reac h c lients. The company will be developed with a "customer service and
satisfac tion first" mentality in an effort to build ac ceptance and a positive reputation in the loc al
industry.

The Management Team

In order for the company to be successful, Austin Kinetic must fully leverage the experience
and insight of its management team, which includes Adam Authortisement, Bob Borgware, Cary
Curry, Dean Dri, and Edgar Extension. The team has over forty-eight cumulative years
of experience in service operations management and information technology support. They
currently hold multiple technology industry vendor certifications crossing several disc iplines
including both logical and physical network structure and management. Over the course of
their careers, the team has served in various technical roles with Fortune 500 c ompanies and
has been successful in both large and small environments.

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1.1 Objectives
Austin Kinetic's objectives for the first five years:

1. Establish and maintain at least twenty-four full time service contrac t customers.
2. Establish an office in Austin, TX.
3. Break the Big M revenue mark.

1.2 Mission
Austin Kinetic is an innovative business technology company that was founded on the belief that
one company can make more than a difference, it can change the whole fac e of business as
we know it.

1.3 Keys to Success

· Depth of knowledge.
· Breadth of ability.
· Development of a strong business relationship with c ustomers to gain an understanding of
their business and business needs.
· Ability to network in the industry.

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2.0 Company Summary

Austin Kinetic is incorporated in Nevada with an operating office in Austin, Texas. Initial staff will
consist of a small group of experienced computer engineers who's skills and
experience collectively cover a very broad segment of the open systems' distributed client/
server field. The company's initial foc us will be installation and configuration projects which will
be developed into ongoing support contrac ts.

2.1 Company Ownership

Austin Kinetic is incorporated. The major share holders are Adam Authortisement, Bob
Borgware, Cary Curry, Dean Dri, and Edgar Extension.

2.2 Start-up Summary

The start-up costs for the company are detailed in the table below, and will be funded by the
founder's personal funds. There will be only small initial equipment cost as the company will be
greatly dependent upon its founders' resources. It is expec ted that eac h employee will initially
cover the cost of transportation, cell phone, and incidentals that arise in the course of due
business. The company will begin c overing those costs as revenue streams are
generated. Specific guidelines and policies will be developed prior to the sixth operating month.

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Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund $7,550
Start-up Assets to Fund $4,550
Total Funding Required $12,100

Assets
Non-cash Assets from Start-up $0
Cash Requirements from Start-up $4,550
Additional Cash Raised $0
Cash Balance on Starting Date $4,550
Total Assets $4,550

Liabilities and Capital

Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0

Capital

Planned Investment
John Butler $2,500
Eddie Hodges $2,400
Sidney Johnson $2,400
Darren Galatas $2,400
Johnathan & Grace Panepinto $2,400
Additional Investment Requirement $0
Total Planned Investment $12,100

Loss at Start-up (Start-up Expenses) ($7,550)

Total Capital $4,550

Total Capital and Liabilities $4,550

Total Funding $12,100

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 Austin Kinetic

Table: Start-up
Start-up

Requirements

Start-up Expenses
Legal $800
Stationery etc. $100
Voice Mail Service $150
Website development $1,000
Computers $5,000
Cell Phones $500
Total Start-up Expenses $7,550

Start-up Assets
Cash Required $4,550
Other Current Assets $0
Long-term Assets $0
Total Assets $4,550

Total Requirements $12,100

3.0 Services
Austin Kinetic will offer several support options, including hourly support services, with the option
to buy in bloc ks of 40 hours at a disc ounted rate. Bloc ks purchased will be valid for 180 days
from date of purchase. Additionally, semi-annual service contrac ts will be available. Contrac t
pricing will be negotiated on a per-contrac t basis.

· Project work will be billed and estimated on a per-project basis.

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 Austin Kinetic
· Web and ASP hosting will be billed on a per-system basis.

Operating systems supported (limited to current and three previous revisions):

· Windows
· Novell NetWare
· Solaris
· Red Hat Linux

Hardware supported (hardware configurations must be validated by OEM):

· All open desktop, server, storage, and network systems.

· Dell, ADIC, Storagetech, and HP tape drives and libraries.
· Additional hardware will have to be reviewed on a per-case basis.

Software pac kages supported (Restricted to implementation and initial configuration):

· Microsoft Exchange
· Lotus Notes/Domino
· SUS Messaging Center
· Microsoft SQL server
· Orac le DBS
· Veritas Bac kup Exec / Net Bac kup
· Legato Networker
· Arcserve
· Site Sc ope
· SMS
· Additional pac kages will have to be reviewed on a per-cases basis.

Service offerings:

Austin Kinetic has several pre-set pac kages available for general monitoring of a
customer's network equipment and applications. The pac kages are categorized by the type
and use of equipment to be monitored. An initial one- time setup fee of $500 will be required
per physical site at the onset of any service agreement. This amount is not affected by the
number of systems to be monitored at the designated physical site. The customer will be
required to provide Internet ac cess to the monitoring server. Out-of-band notification can be
added for an additional $50 per month plus a one- time, per-physical-site, $150 initial setup fee.

Basic Server Management* $350 per month

Austin Kinetic provides professional management of operating systems, including Windows,
NetWare, Red Hat Linux, and Solaris. This service is perfect for companies that want to
manage their own applications, but not deal with the ongoing hassle of tuning, securing, and
maintaining the operating system. We will take the burden of ensuring you get the proper
services for your specific server and operating system.

· A system audit to document your architecture and suggest improvements

· 24/7 technical support of the server and operating system from experienced engineers
· Security and bug patch notification for the operating system, and when approved, a
service call will be sc heduled for installation.*
· Monitoring the network availability of one IP.
· Monitoring the server's disk usage, proc essor usage and load average
· Visibility into Austin Kinetic's trouble ticket system via a secure portal

* Except for the initial system audit, service time to repair or otherwise service the
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monitored system is not included in this monitoring agreement.

Application Server Management Services* $450 per month.

Ensuring your applications are available and running at peak efficiency is a 24/7 responsibility.
Austin Kinetic offers comprehensive application monitoring and management so your customers
and employees will be able to use your applications without significant unsc heduled
interruption. We offer a complete range of management services tailored to remove the burden
of ensuring your applications are up and getting the proper maintenance.

· A system audit to document your architecture and suggest improvements

· 24/7 technical support of the server, operating system and applications from
experienced engineers
· Security and bug patch notification for the operating system and applications, and
when approved, installation
· Monitoring application and network availability
· Monitoring application response time
· Monitoring the server's disk usage, proc essor usage, and load average
· Visibility into Austin Kinetic's trouble ticket system via a secure portal
· Periodic ac tivity reports

* Except for the initial system audit, service time to repair or otherwise service the
monitored system is not included in this monitoring agreement.

Database Server Management Services* $500 per month.

Ensuring your Orac le, MySQL, and MS SQL 2000 databases are configured and maintained
properly is a time-consuming task for IT departments. Austin Kinetic can augment your internal
skill set with c omprehensive database server management. We offer a broad range of
management services and will take the burden of ensuring you get the proper services for your
specific server and databases. Typical database services offered by Austin Kinetic include:

· A system audit to document your architecture and suggest improvements

· 24/7 technical support of the server, operating system and database from experienced
engineers
· Security and bug patch notification for the operating system and database, and when
approved, installation
· Monitoring database and network availability
· Monitoring database response time
· Monitoring the server's disk usage, proc essor usage and load average
· Visibility into Austin Kinetic's trouble ticket system via a secure portal
· Periodic ac tivity reports

* Except for the initial system audit, service time to repair or otherwise service the
monitored system is not included in this monitoring agreement.

Network Device Management Services* $450 per month.

Network devices - firewalls, load balancer, routers, switches and hubs - must be properly
configured and maintained to ensure network security and reliable operation. Austin Kinetic offers
a broad range of network management services and will take the burden of ensuring you get
the proper services for your specific network.

· A network audit to doc ument your topology and addressing sc heme

· 24/7 technical support of the network devices from experienced engineers
· Security and bug patch notification, and when approved, installation
· Maintaining the security of firewalls

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 Austin Kinetic
· Monitoring bandwidth usage
· Monitoring network device availability and performance
· Visibility into Austin Kinetic's trouble ticket system via a secure portal

* Except for the initial system audit, service time to repair or otherwise service the
monitored system is not included in this monitoring agreement.

Benefits of Security Management Services (Priced determined on a per-site basis.)

Maintaining the security of your Internet-based systems is more important and more time
consuming that ever. Austin Kinetic removes the burden of protecting your systems by offering
24/7 security management that combines intrusion detection and vulnerability scanning. We
also will not burden your existing hardware as a pre-configured 1U server is installed in your
network to handle the intrusion detection and vulnerability task.

· Identify misc onfigured firewalls

· Catch attac ks that firewalls legitimately allow through (such as attac ks against Web
servers)
· Doc ument hacker attempts that fail
· Watch for insider hacking
· Identify users installing unsecured software on their mac hines
· Recognize unauthorized mac hines using the network
· See incorrect IP spac e utilization

Austin Kinetic will ensure your intrusion detection and vulnerability sc anning system is properly
installed and maintained. This includes configuring the system, testing the pattern matching,
updating sc anning profiles, monitoring 24/7, reporting suspicious ac tivities or vulnerability, and
providing a monthly report.

Data Backup* $50 plus a one- time setup fee of $150 per bac kup server. There will be an
additional $100 per-site, per-month c harge if tapes are required to be kept off-site.

Protecting your organization's data is critical. Austin Kinetic will manage your data protection
system to ensure that your data is protected by tape bac kup. While Austin Kinetic cannot be
held responsible for lost data, we will ensure that validated and tested bac kups oc cur on a
regularly sc heduled basis. The customer will be responsible for proc uring and installing the
nec essary hardware. Austin Kinetic will configure and monitor the bac kup software, monitor and
test bac kup jobs, and perform needed file restoration.

* This service does not require the $500 site setup fee.

4.0 Market Analysis Summary

The Information and Technology Service industry is expec ted to grow at 8.58% per year through
2010.
--U.S. Department of Labor (2003) http://www.bls.gov/iag/iag.services.htm

We will be primarily foc using on mid-sized companies with 500 or fewer employers. These
companies typically do not have large internal IT departments and could benefit the greatest
from our offerings.

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 Austin Kinetic

4.1 Market Segmentation

The information in the market analysis table gained from the U.S. Census Bureau, http://
fac tfinder.census.gov/servlet/GQRGeoSearchByListServlet?ds_name=E9700A1. Though the
data is based upon 1997 data, it is representative of the loc al market's potential.

Table: Market Analysis

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Retail trade 8% 2,925 3,159 3,412 3,685 3,980 8.00%
Professional, scientific, & 8% 3,128 3,378 3,648 3,940 4,255 8.00%
technical services
Health care & social assistance 8% 1,705 1,841 1,988 2,147 2,319 7.99%
Total 8.00% 7,758 8,378 9,048 9,772 10,554 8.00%

4.2 Target Market Segment Strategy

Austin Kinetic is interested in servicing companies that are large enough to show direct P&L
benefit from information technology investment, but not large enough to maintain their own
permanent IT staff. The business groups targeted in the market analysis table represent the
largest groups in our target area that fit our interests.

4.3 Service Business Analysis

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 Austin Kinetic
Austin Kinetic is in the business of satisfying companies' information technology infrastructure
needs. We will provide service at various levels from consulting to installation. Services will be
sold on a per-customer/c ase basis with heavy personal interac tion between Austin Kinetic sales
representatives and prospec tive customers.

4.3.1 Competition and Buying Patterns

In this industry that Austin Kinetic, word of mouth and reputation are king. While a limited
amount of highly foc used marketing will be effective, most contrac ts are gleaned from social
contac ts and networking.

5.0 Strategy and Implementation Summary

Austin Kinetic's initial funding will be from its founders' personal funds. Word-of-mouth and
industry networking will be Austin Kinetic's key source of clients. The company's success will
be based upon the service and satisfac tion of customers to the point that they willingly refer
new business.

5.1 Competitive Edge

From the onset, Austin Kinetic will have over 20 years of cumulative experience in the
information technology field with a very broad range of hands- on experience. This, combined
with a keen sense of customer service and satisfac tion, will differentiate Austin Kinetic from its
competitors.

5.2 Marketing Strategy

Austin Kinetic's initial marketing strategy will be largely word-of-mouth and industry group
networking. Our biggest initial challenge will be to get our name known in the loc al
market. We will bec ome involved in several industry specific organizations in the loc al
community which will give us direct ac cess to potential customers.

5.3 Sales Strategy

Sales will foc us a bit less on building relationships and more on solidifying confidence in Austin
Kinetic's competencies and skills. Our primary foc us will be to answer the question, "how can
Austin Kinetic best meet a customer's information technology needs?" Delivering this answer in
a clear, concise proposal allied with c ompetitive pricing will be the key to closing deals.

5.3.1 Sales Forecast

Sales are forecast with an emphasis on project work at the onset. In the first few months,
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 Austin Kinetic
we will be primarily oc cupied in c onducting short-term one- day to one- week projects while
building Austin Kinetic's reputation and brand name. Within the first six months, Austin Kinetic will
have signed three annual service contrac ts, doubling that by the end of the year and eac h
semi-annual period thereafter. Sales contrac ts will be set period contrac ts paid by monthly
installments.

As a service business, our only direct costs would relate to the time spent by employees in
responding to customers' needs. Our employees are all paid a set salary, and not by hourly
billing, so we have no direct costs of sales; these salaries can be found in the Personnel Plan.

Table: Sales Forecast

Sales Forecast
Year 1 Year 2 Year 3 Year 4 Year 5
Sales
Project related $309,600 $705,600 $1,051,200 $1,396,800 $1,742,400
Service contract $30,000 $108,000 $180,000 $252,000 $324,000
Total Sales $339,600 $813,600 $1,231,200 $1,648,800 $2,066,400

Direct Cost of Sales Year 1 Year 2 Year 3 Year 4 Year 5

Technician Salary $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0 $0 $0

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 Austin Kinetic

5.4 Milestones
Austin Kinetic will have very simple marketing milestones geared toward industry networking
and beginning to build name recognition.

Table: Milestones
Milestones

Milestone Start Date End Date Budget Manager Department

Join Austin's chamber of 2/1/2004 3/1/2004 $0 Adam Marketing
commerce
Register with Austin Business 2/1/2004 3/1/2004 $0 Adam Marketing
Journal
Obtain first service contract 5/30/2004 6/5/2004 $0 Bob and Dean All
Open Office 2/1/2004 2/1/2005 $3,500 Edgar Operations
Totals $3,500

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 Austin Kinetic

6.0 Web Plan Summary

Austin Kinetic's Web presence will not only serve as a medium for the company's marketing
message, but also will serve as an important tool for our customers. Customers will be
provided with the ability to manage and monitor their ac counts from anywhere that has ac cess
to the Internet. Additionally, consultants in the field will be able to trac k time and work journals
through the site as well as develop and print immediate job estimates.

6.1 Website Marketing Strategy

Austin Kinetic's Web presence will be utilized as a tool to assist the company's overall
marketing strategy. It will serve as a point of reference for information about the company and
its services, and in a small part, lend credibility to the marketing message.

6.2 Development Requirements

Austin Kinetic's site will reside in a two-tier environment. A bac k-end database will be utilized
to manage customer data. The site will be developed with the assistance of a contrac ted
professional developer.

7.0 Management Summary

At the outset, Austin Kinetic will maintain five part-time employees, its founders. These
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 Austin Kinetic
employees will be responsible for all aspec ts of the business and serve in both managerial as well
as technical roles. As the business grows, additional engineers will be hired. We anticipate
that during the fourth year of operation, the original five employees will be free from any
technical duties and concentrate solely on their management responsibilities. At this time, Austin
Kinetic will look to add a full-time sales and marketing manager as well.

7.1 Personnel Plan

Business permitting, Austin Kinetic will maintain a staff of five engineers through most of FY
2007. A secretary will be hired at the start of FY 2006 to assist with telephone and office
management. At the end of FY 2007, an additional engineer will be brought on board as workload
dictates. Beginning FY 2008, the original founding members will be transitioned from field work
and into management, replac ed by additional engineers. Additionally, a full time marketing/
sales representative will be hired.

Compensation projections were made with annual merit increases of 5% for staff and 15% for
the founders. The table also shows a profit sharing plan starting in the second year, based on
5% of the previous year's net profits. These bonuses will be divided equally among staff
members, including owners.

Table: Personnel
Personnel Plan
Year 1 Year 2 Year 3 Year 4 Year 5
Profit Sharing - 5% net profits $0 $0 $0 $0 $0
Adam Authortisement (CEO) $14,400 $55,000 $63,000 $73,000 $83,600
Edgar Extension (COO) $14,400 $55,000 $63,000 $73,000 $83,600
Cary Curry (CIO) $14,400 $55,000 $63,000 $73,000 $83,600
Dean Dri (CFO) $14,400 $55,000 $63,000 $73,000 $83,600
Bob Borgware (CTO) $14,400 $55,000 $63,000 $73,000 $83,600
Secretary $0 $30,000 $31,500 $33,000 $34,700
Sales/Marketing $0 $0 $0 $70,000 $73,500
Technician-1 $0 $0 $13,750 $55,688 $58,472
Technician-2 $0 $0 $0 $55,000 $57,750
Technician-3 $0 $0 $0 $55,000 $57,750
Technician-4 $0 $0 $0 $55,000 $57,750
Technician-5 $0 $0 $0 $55,000 $57,750
Technician-6 $0 $0 $0 $55,000 $57,750
Technician-7 $0 $0 $0 $45,833 $57,292
Technician-8 $0 $0 $0 $9,167 $55,458
Technician-9 $0 $0 $0 $0 $36,667
Total People 5 6 7 15 16

Total Payroll $72,000 $305,000 $360,250 $853,688 $1,022,839

8.0 Financial Plan

Austin Kinetic will initially grow with project work, beginning to build service contrac ts from the
six month point forward. The company will increase its project work to 2,560 man hours per
month and increase its service contrac ts count by six eac h year. The initial growth will be
financed primarily out of the pockets of its founders. The company will fund all growth from the

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 Austin Kinetic
cash flow of the business, remaining debt-free.

8.1 Important Assumptions

At the onset, the founding members of Austin Kinetic will take on much of the financial burden of
running the company. There will be no need for dedicated office spac e until FY 2006 when we
expec t to open an office in Austin. Until then, Austin Kinetic will compensate travel-related
expenses, if any, incurred in the course of business. The only foreseen recurring expenses will
be voice mail services, marketing, insurance, Internet ac cess, and Web presence. The lion's
share of funds will be held by Austin Kinetic to develop cash reserves for future expansion and
a business climate buffer.

Customers will be billed on an hourly basis of $120. Engineers will be paid a salary, plus $25 per
hour for on-call and overtime. Employees who establish the new project/c ontrac t will be paid a
5% bonus of the total project / contrac t price. Business call time of cell phones will be
reimbursed.

Table: General Assumptions

General Assumptions
Year 1 Year 2 Year 3 Year 4 Year 5
Plan Month 1 2 3 4 5
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0

8.2 Break-even Analysis

The table and chart below show our break-even analysis. As a service business, we have no
direct cost of sales. Our break-even point ni the first year is therefore equal to the amount
needed to cover our operating expenses, including payroll. We will reac h break even, in the
third month.

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 Austin Kinetic

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $7,325

Assumptions:
Average Percent Variable Cost 0%
Estimated Monthly Fixed Cost $7,325

8.3 Projected Profit and Loss

In the first year, we will be based out of the founders' homes. Adam Authortisement has
renovated his garage for use as a meeting space and general office, when we need to get
together as a group. Utilities in the first year represent the cost of home high-speed Internet
ac cess for all five employees ($45 eac h per month). This ac cess is nec essary for
communications between personnel and for file transmission for all project and service work.

After the first year, it will be more cost-effective and attuned to our growth to rent a space in
downtown Austin, where we can consolidate equipment, combine utilities, and have a central
loc ation for our work and our secretary. Office space rented beginning FY 2006 is forecast to
be $2,500 per month.

The Profit and Loss also includes a provision for charity donations, which we have deemed
important to our mission, as well as to marketing and outreac h in the community. Starting in
the second year, 5% of net profits eac h will be set aside for charity on an annual basis based
upon the previous year's performance.

After the first month, Marketing and Promotion expenses are set at 5% of the previous month's

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and year's sales.

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 Austin Kinetic

Table: Profit and Loss

Pro Forma Profit and Loss
Year 1 Year 2 Year 3 Year 4 Year 5
Sales $339,600 $813,600 $1,231,200 $1,648,800 $2,066,400
Direct Cost of Sales $0 $0 $0 $0 $0
Other Costs of Sales $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $0 $0 $0

Gross Margin $339,600 $813,600 $1,231,200 $1,648,800 $2,066,400

Gross Margin % 100.00% 100.00% 100.00% 100.00% 100.00%

Expenses
Payroll $72,000 $305,000 $360,250 $853,688 $1,022,839
Marketing/Promotion $200 $0 $0 $0 $0
Depreciation $0 $714 $2,038 $2,464 $3,540
Rent $0 $45,000 $45,000 $50,000 $50,000
Moving Expenses $5,000 $0 $0 $0 $0
Utilities $2,700 $2,000 $2,500 $2,500 $3,000
Insurance $3,000 $10,000 $10,000 $10,000 $10,000
Payroll Taxes $0 $0 $0 $0 $0
Expensed Computer Equipment $5,000 $15,000 $15,000 $15,000 $15,000
Charity (5% of previous year net profit) $0 $0 $0 $0 $0

Total Operating Expenses $87,900 $377,714 $434,788 $933,652 $1,104,379

Profit Before Interest and Taxes $251,700 $435,886 $796,412 $715,148 $962,021
EBITDA $251,700 $436,600 $798,450 $717,612 $965,561
Interest Expense $0 $0 $0 $0 $0
Taxes Incurred $75,510 $130,766 $238,924 $214,544 $288,606

Net Profit $176,190 $305,120 $557,488 $500,604 $673,415

Net Profit/Sales 51.88% 37.50% 45.28% 30.36% 32.59%

8.4 Projected Cash Flow

We have no sales on credit; all service ac counts and projects are paid in advance, in
installments. We anticipate no problems with our cash flow. By staying debt free and keeping
expenses down, we expec t a significant positive cash balance by the end of the first year.

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Austin Kinetic

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Table: Cash Flow

Pro Forma Cash Flow
Year 1 Year 2 Year 3 Year 4 Year 5
Cash Received

Cash from Operations

Cash Sales $339,600 $813,600 $1,231,200 $1,648,800 $2,066,400
Subtotal Cash from Operations $339,600 $813,600 $1,231,200 $1,648,800 $2,066,400

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0
Subtotal Cash Received $339,600 $813,600 $1,231,200 $1,648,800 $2,066,400

Expenditures Year 1 Year 2 Year 3 Year 4 Year 5

Expenditures from Operations

Cash Spending $72,000 $305,000 $360,250 $853,688 $1,022,839
Bill Payments $76,482 $201,028 $302,493 $293,637 $360,478
Subtotal Spent on Operations $148,482 $506,028 $662,743 $1,147,325 $1,383,317

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $5,000 $10,000 $5,000 $10,000
Dividends $0 $0 $0 $0 $0
Subtotal Cash Spent $148,482 $511,028 $672,743 $1,152,325 $1,393,317

Net Cash Flow $191,118 $302,572 $558,457 $496,475 $673,083

Cash Balance $195,668 $498,240 $1,056,697 $1,553,172 $2,226,255

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 Austin Kinetic

8.5 Projected Balance Sheet

Our Balance Sheet is quite solid. We will build our asset base slowly over the first five years,
expensing most of our computer and hardware equipment to offset taxes, since they will need
replac ing every two to three years.

Table: Balance Sheet

Pro Forma Balance Sheet
Year 1 Year 2 Year 3 Year 4 Year 5
Assets

Current Assets
Cash $195,668 $498,240 $1,056,697 $1,553,172 $2,226,255
Other Current Assets $0 $0 $0 $0 $0
Total Current Assets $195,668 $498,240 $1,056,697 $1,553,172 $2,226,255

Long-term Assets
Long-term Assets $0 $5,000 $15,000 $20,000 $30,000
Accumulated Depreciation $0 $714 $2,752 $5,216 $8,756
Total Long-term Assets $0 $4,286 $12,248 $14,784 $21,244
Total Assets $195,668 $502,526 $1,068,945 $1,567,956 $2,247,499

Liabilities and Capital Year 1 Year 2 Year 3 Year 4 Year 5

Current Liabilities
Accounts Payable $14,928 $16,666 $25,596 $24,004 $30,132
Current Borrowing $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0
Subtotal Current Liabilities $14,928 $16,666 $25,596 $24,004 $30,132

Long-term Liabilities $0 $0 $0 $0 $0
Total Liabilities $14,928 $16,666 $25,596 $24,004 $30,132

Paid-in Capital $12,100 $12,100 $12,100 $12,100 $12,100

Retained Earnings ($7,550) $168,640 $473,760 $1,031,249 $1,531,852
Earnings $176,190 $305,120 $557,488 $500,604 $673,415
Total Capital $180,740 $485,860 $1,043,349 $1,543,952 $2,217,367
Total Liabilities and Capital $195,668 $502,526 $1,068,945 $1,567,956 $2,247,499

Net Worth $180,740 $485,860 $1,043,349 $1,543,952 $2,217,367

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 Austin Kinetic

8.6 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) code 7379.02, Computer Related Consulting Services, are
shown for comparison.

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 Austin Kinetic

Table: Ratios
Ratio Analysis
Year 1 Year 2 Year 3 Year 4 Year 5 Industry Profile
Sales Growth n.a. 139.58% 51.33% 33.92% 25.33% 16.45%

Percent of Total Assets

Other Current Assets 0.00% 0.00% 0.00% 0.00% 0.00% 61.43%
Total Current Assets 100.00% 99.15% 98.85% 99.06% 99.05% 87.72%
Long-term Assets 0.00% 0.85% 1.15% 0.94% 0.95% 12.28%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Current Liabilities 7.63% 3.32% 2.39% 1.53% 1.34% 34.35%

Long-term Liabilities 0.00% 0.00% 0.00% 0.00% 0.00% 20.47%
Total Liabilities 7.63% 3.32% 2.39% 1.53% 1.34% 54.82%
Net Worth 92.37% 96.68% 97.61% 98.47% 98.66% 45.18%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Gross Margin 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Selling, General & Administrative Expenses 47.42% 59.67% 73.67% 70.43% 69.19% 76.51%
Advertising Expenses 0.21% 0.09% 0.17% 0.15% 0.17% 1.17%
Profit Before Interest and Taxes 74.12% 53.57% 64.69% 43.37% 46.56% 1.40%

Main Ratios
Current 13.11 29.90 41.28 64.71 73.88 1.85
Quick 13.11 29.90 41.28 64.71 73.88 1.53
Total Debt to Total Assets 7.63% 3.32% 2.39% 1.53% 1.34% 61.46%
Pre-tax Return on Net Worth 139.26% 89.71% 76.33% 46.32% 43.39% 2.74%
Pre-tax Return on Assets 128.64% 86.74% 74.50% 45.61% 42.80% 7.10%

Additional Ratios Year 1 Year 2 Year 3 Year 4 Year 5

Net Profit Margin 51.88% 37.50% 45.28% 30.36% 32.59% n.a
Return on Equity 97.48% 62.80% 53.43% 32.42% 30.37% n.a

Activity Ratios
Accounts Payable Turnover 6.12 12.17 12.17 12.17 12.17 n.a
Payment Days 27 28 25 31 27 n.a
Total Asset Turnover 1.74 1.62 1.15 1.05 0.92 n.a

Debt Ratios
Debt to Net Worth 0.08 0.03 0.02 0.02 0.01 n.a
Current Liab. to Liab. 1.00 1.00 1.00 1.00 1.00 n.a

Liquidity Ratios
Net Working Capital $180,740 $481,574 $1,031,101 $1,529,168 $2,196,123 n.a
Interest Coverage 0.00 0.00 0.00 0.00 0.00 n.a

Additional Ratios
Assets to Sales 0.58 0.62 0.87 0.95 1.09 n.a
Current Debt/Total Assets 8% 3% 2% 2% 1% n.a
Acid Test 13.11 29.90 41.28 64.71 73.88 n.a
Sales/Net Worth 1.88 1.67 1.18 1.07 0.93 n.a
Dividend Payout 0.00 0.00 0.00 0.00 0.00 n.a

8.7 Long-term Plan

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 Austin Kinetic
Austin Kinetic anticipates maintaining a steady profit percentage and plans to build cash
reserves to an amount which would cover operating expenses for twelve months should any
catastrophic event oc cur. This will be a moving target and be recalculated on an annual basis
as the business cash flow changes. There has been no pre-set limit plac ed upon Austin
Kinetic. Its founders see the possibility of expanding the company into a global force ranked
equal to today's top Fortune 500 c ompanies.

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 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
Project related 0% $2,400 $4,800 $9,600 $19,200 $24,000 $26,400 $31,200 $33,600 $36,000 $38,400 $40,800 $43,200
Service contract 0% $0 $0 $0 $0 $0 $3,000 $3,000 $4,000 $4,000 $5,000 $5,000 $6,000
Total Sales $2,400 $4,800 $9,600 $19,200 $24,000 $29,400 $34,200 $37,600 $40,000 $43,400 $45,800 $49,200

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
Technician Salary $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Page 1
 Appendix
Table: Personnel

Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Profit Sharing - 5% net profits 5% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Adam Authortisement (CEO) 0% $100 $200 $400 $800 $1,000 $1,250 $1,450 $1,600 $1,700 $1,850 $1,950 $2,100
Edgar Extension (COO) 0% $100 $200 $400 $800 $1,000 $1,250 $1,450 $1,600 $1,700 $1,850 $1,950 $2,100
Cary Curry (CIO) 0% $100 $200 $400 $800 $1,000 $1,250 $1,450 $1,600 $1,700 $1,850 $1,950 $2,100
Dean Dri (CFO) 0% $100 $200 $400 $800 $1,000 $1,250 $1,450 $1,600 $1,700 $1,850 $1,950 $2,100
Bob Borgware (CTO) 0% $100 $200 $400 $800 $1,000 $1,250 $1,450 $1,600 $1,700 $1,850 $1,950 $2,100
Secretary 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales/Marketing 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Technician-1 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Technician-2 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Technician-3 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Technician-4 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Technician-5 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Technician-6 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Technician-7 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Technician-8 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Technician-9 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 5 5 5 5 5 5 5 5 5 5 5 5

Total Payroll $500 $1,000 $2,000 $4,000 $5,000 $6,250 $7,250 $8,000 $8,500 $9,250 $9,750 $10,500

Page 2
 Appendix
Table: General Assumptions

General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current 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 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0

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 Appendix
Table: Profit and Loss

Pro Forma Profit and Loss

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 $2,400 $4,800 $9,600 $19,200 $24,000 $29,400 $34,200 $37,600 $40,000 $43,400 $45,800 $49,200
Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Gross Margin $2,400 $4,800 $9,600 $19,200 $24,000 $29,400 $34,200 $37,600 $40,000 $43,400 $45,800 $49,200
Gross Margin % 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Expenses
Payroll $500 $1,000 $2,000 $4,000 $5,000 $6,250 $7,250 $8,000 $8,500 $9,250 $9,750 $10,500
Marketing/Promotion 5% $200 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Moving Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $5,000
Utilities $225 $225 $225 $225 $225 $225 $225 $225 $225 $225 $225 $225
Insurance $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Expensed Computer Equipment 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $5,000 $0 $0
Charity (5% of previous year net 5% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
profit)

Total Operating Expenses $1,175 $1,475 $2,475 $4,475 $5,475 $6,725 $7,725 $8,475 $8,975 $14,725 $10,225 $15,975

Profit Before Interest and Taxes $1,225 $3,325 $7,125 $14,725 $18,525 $22,675 $26,475 $29,125 $31,025 $28,675 $35,575 $33,225
EBITDA $1,225 $3,325 $7,125 $14,725 $18,525 $22,675 $26,475 $29,125 $31,025 $28,675 $35,575 $33,225
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $368 $998 $2,138 $4,418 $5,558 $6,803 $7,943 $8,738 $9,308 $8,603 $10,673 $9,968

Net Profit $858 $2,328 $4,988 $10,308 $12,968 $15,873 $18,533 $20,388 $21,718 $20,073 $24,903 $23,258
Net Profit/Sales 35.73% 48.49% 51.95% 53.68% 54.03% 53.99% 54.19% 54.22% 54.29% 46.25% 54.37% 47.27%

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
Cash Received

Cash from Operations

Cash Sales $2,400 $4,800 $9,600 $19,200 $24,000 $29,400 $34,200 $37,600 $40,000 $43,400 $45,800 $49,200
Subtotal Cash from Operations $2,400 $4,800 $9,600 $19,200 $24,000 $29,400 $34,200 $37,600 $40,000 $43,400 $45,800 $49,200

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 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 $2,400 $4,800 $9,600 $19,200 $24,000 $29,400 $34,200 $37,600 $40,000 $43,400 $45,800 $49,200

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 $500 $1,000 $2,000 $4,000 $5,000 $6,250 $7,250 $8,000 $8,500 $9,250 $9,750 $10,500
Bill Payments $35 $1,057 $1,511 $2,689 $4,931 $6,074 $7,316 $8,444 $9,232 $9,926 $13,980 $11,291
Subtotal Spent on Operations $535 $2,057 $3,511 $6,689 $9,931 $12,324 $14,566 $16,444 $17,732 $19,176 $23,730 $21,791

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 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $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 $535 $2,057 $3,511 $6,689 $9,931 $12,324 $14,566 $16,444 $17,732 $19,176 $23,730 $21,791

Net Cash Flow $1,865 $2,743 $6,090 $12,512 $14,070 $17,076 $19,635 $21,156 $22,269 $24,224 $22,070 $27,409
Cash Balance $6,415 $9,158 $15,248 $27,759 $41,829 $58,905 $78,539 $99,695 $121,964 $146,188 $168,258 $195,668

Page 5
 Appendix
Table: Balance Sheet

Pro Forma Balance Sheet

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances

Current Assets
Cash $4,550 $6,415 $9,158 $15,248 $27,759 $41,829 $58,905 $78,539 $99,695 $121,964 $146,188 $168,258 $195,668
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $4,550 $6,415 $9,158 $15,248 $27,759 $41,829 $58,905 $78,539 $99,695 $121,964 $146,188 $168,258 $195,668

Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Assets $4,550 $6,415 $9,158 $15,248 $27,759 $41,829 $58,905 $78,539 $99,695 $121,964 $146,188 $168,258 $195,668

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 $0 $1,008 $1,423 $2,525 $4,729 $5,831 $7,035 $8,137 $8,905 $9,456 $13,608 $10,776 $14,928
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $1,008 $1,423 $2,525 $4,729 $5,831 $7,035 $8,137 $8,905 $9,456 $13,608 $10,776 $14,928

Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $1,008 $1,423 $2,525 $4,729 $5,831 $7,035 $8,137 $8,905 $9,456 $13,608 $10,776 $14,928

Paid-in Capital $12,100 $12,100 $12,100 $12,100 $12,100 $12,100 $12,100 $12,100 $12,100 $12,100 $12,100 $12,100 $12,100
Retained Earnings ($7,550) ($7,550) ($7,550) ($7,550) ($7,550) ($7,550) ($7,550) ($7,550) ($7,550) ($7,550) ($7,550) ($7,550) ($7,550)
Earnings $0 $858 $3,185 $8,173 $18,480 $31,448 $47,320 $65,853 $86,240 $107,958 $128,030 $152,933 $176,190
Total Capital $4,550 $5,408 $7,735 $12,723 $23,030 $35,998 $51,870 $70,403 $90,790 $112,508 $132,580 $157,483 $180,740
Total Liabilities and Capital $4,550 $6,415 $9,158 $15,248 $27,759 $41,829 $58,905 $78,539 $99,695 $121,964 $146,188 $168,258 $195,668

Net Worth $4,550 $5,408 $7,735 $12,723 $23,030 $35,998 $51,870 $70,403 $90,790 $112,508 $132,580 $157,483 $180,740

Page 6