Revenue Stream

Year 1 Year 2 Year 3 Year 4 Year 5

Commission $672,800 $727,650 $793,800 $865,100 $997,750
Partners $50,000 $64,750 $72,540 $84,421 $95,250
Startup
$175,000 … … … …
Contributions
Total Revenue $8978,800 $792,400 $866,340 $949,521 $1,093,000
9% 9% 13%

Expenses Table
Year 1 Year 2 Year 3 Year 4 Year 5
Cost of Services $155,000 $185,400 $205,930 $259,120 $291,430
Operating Expense –
$37,500 $51,750 $70,300 $84,520 $105,150
Sales
Operating Expense -
$119,500 $142,100 $167,626 $169,100 $206,125
Operations
Interest Expense $7,650 $8,500 $12,750 $17,000 $21,000
Startup Expense $210,000 … … … …
Total Expenses $529,650 $387,750 $456,606 $529,740 $623,705

Net Surplus Table

Year 1 Year 2 Year 3 Year 4 Year 5
Total Revenue $897,800 $792,400 $866,340 $949,521 $1,093,000
Less:
Operating Expenses $157,000 $193,850 $237,926 $253,620 $311,275
State Tax $23,010 $25,291 $25,609 $26,264 $29,331
Federal Tax $18,592 $20,435 $20,692 $21,199 $23,700
Net Surplus $699,198 $552,824 $582,114 $648,465 $728,694
5.03% 10.23% 11%
 Income Statement
Year 1 Year 2 Year 3 Year 4 Year 5
Total Revenue $897,800 $792,400 $866,340 $949,521 $1,093,000
Total Expenses $529,650 $387,750 $456,606 $529,740 $623,705
Gross Net income $368,150 $404,650 $409,734 $419,781 $469,295
State Tax $23,010 $25,291 $25,609 $26,264 $29,331
Federal Tax $18,592 $20,435 $20,692 $21,199 $23,700
Net Income $326,548 $358,924 $363,434 $372,345 $416,264
9% 1% 2% 11%

Statement of Cash Flows

Operating Activities Year 1 Year 3 Year 5
Net Income $326,548 $363,434 $416,264
Cash Paid For Salaries ($155,000) ($205,930) ($291,430)
Cash Paid For Advertising ($75,000) ($97,500) ($112,000)
Contract Partnerships $75,000 $125,000 $205,000
Investing Activities
Purchase of Plant, Property & Equipment ($55,000) ($110,000) ($200,000)
Financing Activities
Equity ($100) ($700) ($1,200)
Increase/Decrease in Cash $41,448 ($50,696) ($188,366)
Beginning Cash Balance $150,000 $250,000 $350,000
Ending Cash Balance $191,448 $199,304 $161,634
ASSETS Year 1 Year 5
Current Assets
Cash $150,000 $350,000
Accounts Receivable $32,000 $86,500
Inventory $25,000 $55,450
Other Current Assets $7,000 $15,000
Fixed Assets
property, Plant, Equip. $55,000 $200,000
Long-term Investments $20,000 $90,000
Other Fixed Assets $9,500 $20,000
Intangible Assets
Goodwill … $100,000
Contracts $500 $9,000
TOTAL ASSETS $299,000 $925,950

LIABILITIES & STOCKHOLDERS EQUITY

Current Liabilities
Accounts Payable $25,500 $99,800
Accrued Expenses $10,000 $55,500
Current Portion of Long-Term Debt $5,500 $15,700
Long-term Liabilities
Long Term Debt $250,000 $715,550
Stockholders' Equity
Common Stock $100 $1,200
Retained Earnings $7,000 $32,500
Additional Paid in Capital $900 $5,700
TOTAL LIABILITIES & OWNERS' EQUITY $299,000 $925,950