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Executive Summary.

faísca Consulting is a Johannesburg, Gauteng. based public relations


firm that specializes in Showbiz PR. faísca Consulting' areas of
specialty are management crisis, image creation, management of
publicity events, and media liaison. All of these activities ensure the
proper management of sensitive aspects concerning celebrities who
want to spark in their carreer.

Typical clients will include socialites, celebrities, and upcoming


personalities. These clients seek a professional firm to assist in their
perceived showbiz image. faisca consulting will rapidly gain market
share through the use of specialized, innovative customer attention.

By leveraging it's competitive advantages, Faisca consulting will


quickly grow it's customer base. Having a specialized skill set with
experience in showbiz PR work will provide Faisca with valuable insight
that other PR firms and Showbiz Agencies are unable to offer.
Additionally, faisca consulting prides themselves on offering
unmatched flexibility which will allow Faisca consulting to seamlessly
meet any need a client may have.

Faisca consulting is 100% percent owned black firm with international


exposures, experiences and insight. Faisca consulting will leverage its
skills, experience, and innovative approach to reach profitability by
month 10, generating noteworthy revenues by year three.

1.1 Mission
faisca consulting' mission is to provide the customer with the highest
quality of showbiz PR consultancy. We exist to attract and maintain
customers. When we adhere to this maxim, everything else will fall into
place. Our services will exceed the expectations of our customers.

1.2 Keys to Success


The keys to success are:

• Attention to detail.

• Thinking outside the box.

• Professionalism.

• Results.
1.3 Objectives
The objectives for the first three years include:

To create a start-up company whose primary goal is to exceed


customer's expectations.

To increase the number of clients served by at least 20% per year


through superior performance and referrals.

To develop a sustainable business that is able to survive off its own


cash flow.

Company Summary
Faisca consulting is a showbiz public relations consultancy firm that
specializes in working with individuals that are pursuing showbiz
carreers and seek sparkling results.

Faisca consulting is 100% black owned firm with international


exposures, experiences and insights.

Faisca consulting will provide PR services to local, as well as regional


individuals, that are in need of immediate reactionary help, as well as
long-term management.

2.1 Company Ownership


Faisca consulting is a private entity owned by Johnny Makombo.

2.2 Start-up Summary


The following equipment will be needed. Please note that those items
which are considered assets to be used for more than a year will be
labeled long-term assets and will be depreciated using G.A.A.P.
approved straight-line depreciation method.

• Two desks and chairs.

• Two file cabinets.

• Two computer systems including two licenses of Microsoft Office,


a CD-RW, printer, digital camera and a DSL connection.

• South african's media directory.

• Subscription to Showbiz researching tools.


• Website development.

Start-up

Requirements

Start-up Expenses
Legal
Stationery etc.
Brochures
Website development
Showbiz subscription
Total Start-up Expenses

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

Total Requirements

Start-up Funding

Start-up Expenses to Fund


Start-up Assets to Fund
Total Funding Required

Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

Liabilities and Capital

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

Planned Investment
Johnny

Additional Investment Requirement


Total Planned Investment

Loss at Start-up (Start-up Expenses)


Total Capital

Total Capital and Liabilities

Total Funding

Services
faisca consulting offers a wide range of showbiz PR services. These
services will typically be used by actors/actresses, artists and models
who are looking to spark their showbiz image or manage a crisis. The
main services offered are:

• Crisis management. This is a reactionary/proactive service that


helps the customer manage a crisis or situation that if left
unattended could create significant amounts of bad press and
tarnish the public image of individuals that are considered public
figures by virtue of the fact that they operate in the showbiz
industry.

• Image creation. This service designs and implements a certain


public image, typically an image that is pro-showbiz for an
individual that is in the public eye and media magnet.
• Management of publicity events. These services develop and
manage client sponsored publicity events which are designed to
strengthen the clients perceived social commitment.

• Media Liaison. These services are establish to bring more spark


in the carreer of clients. The better exposed an individual is in
the media, the greater the rewards in his carreer.

Market Analysis Summary


Faisca consulting will primarily serve three different target segments
within the showbiz PR space: celebrities, socialites, and upcoming
personalities. These different segments will be targeted because they
represent a large amount of business activity in this country and
because they have struggled in the past to maintain an
ideal/reasonable public image.

These segments will be targeted through an advertising campaign and


networking activities tailored to each industry customer.

4.1 Market Segmentation


Faisca consulting has three distinct groups of customers:

• Celebrities. These personalities are performing in the public


industry. They might utilize Faisca consulting to help strengthen
their image as artists providing entertainment needs to their fans
and showing their full potential within the showbiz industry.
Additionally they may need Faisca consulting for crisis
management services or promotional activities.

• Socialites. The Business moguls have a negative public image


due to the general perception of their behaviours and attitudes
toward the public. Even though They deserve all the glamour,
The public is very spectical when they are involved in social
projects. Therefore, A very good public management through
media will be rewarding these moguls and create even more
benefits and recognition for their line of business.

• Upcoming personalities. There are a lot of new talents in the


country. Every single minute, there is someone who has
ambitions to start somewhere in the showbiz industry. Our
services are perfectly designed for these personalities, and the
spark they require to make it to the top through international
exposures and management.
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Celebrities % %
Socialites % %
Upcoming personalities % %
Total % %

4.2 Target Market Segment Strategy


The selected customer segments will be targeted in a specific
advertising and networking campaign.

• Advertising. This campaign will target each of the prospective


customers. The advertisements will generally be placed within
the appropriate showbiz magazines. The advertisements will be
used to communicate the message that Faisca consulting is a
specialized showbiz PR firm that can work hand and hand with
celebrities, socialites, and upcoming personalities, providing
them with both proactive, as well as reactive PR services. The
advertisements will detail the different services Faisca consulting
provides as well as the experience the founder have in this
niche.

• Networking. Since the founder has a long history in this market


space, he has a long list of contacts that he has developed over
the years. Faisca consulting will leverage these contacts to raise
visibility regarding faisca consulting and establish relationships
so Faisca consulting can began to serve them. Because this
market niche is fairly small and specific, people in the space tend
to know each other and a lot of business is transacted among
acquaintances. This nature of the industry will make networking
activities all the more effective.

4.3 Service Business Analysis


The PR industry in Johannesburg has many different competitors,
however few have the specialized skills for showbiz PR work. The
competitors generally take the form of small local PR firms, large
national firms, celebrities management agencies, and Independent
agents.

Faisca consulting will rapidly gain market share in their specific space
by leveraging their competitive edges. These edges consist of a
specialized skill set honed for the demands of showbiz PR and the high
degree of flexibility. As a small specialized firm, Faisca consulting is
able to address any need generated by a client.

4.3.1 Competition and Buying Patterns


Competition takes many forms:

• Small, local PR firms. These companies are small, typically one


principal, and their clients are not celebrities, socialites and
upcoming personalities. These companies are more retail PR,
Industrial PR and Environmental PR based.

• Large national firms. These firms are quite large and they
serve national clients. The clients are usually very large
companies and these national firms travel to wherever to
support the account.

• Celebrities Management agencies. These agencies have


been around for decades. But These agencies lack public
relations approach to the showbiz industry. Agencies are more
concerned in getting jobs for the clients, and not creating a
brand out of the clients for long-term benefits.

• Independent Agents. These agents are not professionally


skilled to create, manage and maintain the image of a celebrity
in a long-term basis. many celebrities come up and vanish within
the next two years due to the lack of good image building, crisis
management and long-term relationship with the showbiz
industry.
Buying patterns for companies typically take the form of RFP's for the
larger companies, and informal referrals/networking for the smaller
clients.

Strategy and Implementation Summary


Faisca consulting' marketing and sales strategies will be based on
developing visibility for Faisca consulting and communicating the
message that Faisca consulting is able to provide an unmatched
service offering due to the special skill set and flexibility in serving the
client.

5.1 Competitive Edge


Faisca consulting has two complementary competitive edges:

• Specialized skill set. While this will be detailed further in the


management section, this competitive edge allows Faisca
consulting to provide keen insight into the showbiz industry and
how that applies to public relations.

• Flexibility. As a small firm, Faisca consulting is able to meet the


customer's special needs by offering a very flexible service. This
flexibility allows Faisca consulting to work hand in hand with
client and the public to support their customer. While many
competitors will have an initial interview with the customer on
their site, most of the work is completed on the PR firms terms,
typically at the home office. Faisca consulting' flexibility allows
them to work with the client in any capacity required to serve the
customer in the most effective way. Often this means working
closely with the customer and the various hierarchical levels
within the showbiz industry. This will sometimes mean extended
time spent on the client's work, a service that Faisca consulting
is more than happy to offer.

5.2 Marketing Strategy


As stated before in the target market segment strategy, Faisca
consulting will use a combination of targeted advertising and
networking to generate visibility and communicate Faisca consulting'
message that they are the premier showbiz PR firm in the area that
possesses the ability to offer unprecedented specialized services and
flexibility to help the customer manage their public image and deal
with any unfortunate crisis.

The advertising will be done in specific showbiz magazines. These will


be chosen because the magazines readership is a very specific
demographic that Faisca consulting is trying to reach.

The networking activities will be quite effective in leveraging the


already existing relationships that Johnny have established through
years working in the different industries.

5.3 Sales Strategy


The sale strategy will be based on turning prospective customers into
long-term clients. The primary way this will be accomplished is through
a dog and pony show performed for the decision maker. This
presentation will outline all of the different services and value that
Faisca consulting offers: their rich specialized experience and very
personalized attention that their clients receive. They will emphasize
the smallness of Faisca consulting that allows it to serve every client
with individual attention that one would expect from an in-house staff.

The dog and pony show will also highlight Faisca consulting' portfolio of
past clients served and the creative "out of the box" thinking that
prevails at Faisca consulting. The portfolio itself will be quite creative,
not just a standard display of past projects, but a representation in
itself of Faisca consulting' creativity and competence.

5.3.1 Sales Forecast


The first month of operation will not have any sales activity. The office
will be set up and the marketing campaign will be devised. The second
month will see a small amount of activity, primarily small projects of
limited duration.

By month three and four, visibility of Faisca consulting will have begun
to take root and there will be an increasing number of inquiries that
will be turned into projects.

Sales will steadily ramp from month four on with profitability being
reached by month 10 and sales steadily increasing through the end of
year three.
Sales Forecast
Year 1 Year 2 Year 3
Sales
Crisis management
Image management
Event management
Total Sales

Direct Cost of Sales Year 1 Year 2 Year 3


Crisis management
Image management
Event management
Subtotal Direct Cost of Sales

5.4 Milestones
faisca consulting will have several milestones early on:

Business plan completion. While business plans are typically


created on requirement to secure capital, Faisca consulting will
use the plan as a way to develop a strategic focus as well as a
gauge to track adherence to the plan at multiple intervals in the
coming quarters and years.

Office set up.

Establishment of the first major project.

Near full service capacity.

Milestones

Budg Departme
Milestone Start Date End Date Manager
et nt
Business plan completion 11/11/10 Johnny Marketing
Office set up
Establishment of the first major project
Near full service capacity
Totals

Web Plan Summary


The website will be used as a resource for developing visibility,
disseminating information such as a portfolio of past projects and case
studies, as well as a way that prospective customers can contact
Faisca consulting.

6.1 Website Marketing Strategy


The marketing of the website will incorporate the following actions:

• Search engine submission. For all prospective customers that are


unaware of Faisca consulting and are using the Internet to
research the possible service solutions to their problem, Faisca
consulting will professionally submit their site individually to all
of the popular search engines so that Faisca consulting' site
appears at the top of the search list.

Advertising of the site through the various written materials that


Faisca consulting will disseminate to prospective customers.

• Establish a profile of faisca consulting on different online


networks such twitter, facebook, myspace and so on. which will
outline the existence of Faisca consulting, and provide a link to
direct clients to our website, also give us feed back from the
public.

6.2 Development Requirements


The website development will be the product of Bradley Botha at
inverted commas, Johannesburg. The utilization of Bradley will be used
because of his past experiences with the founder.

Management Summary
Johnny Makombo
johnny received a diploma in public relations from the public relations
institute of South africa. Beyond school, Johnny went to start a
company named saalena management in his native country in 2007.
After 2 years, Johnny decided to open a South african branch of
Saalena Management. It was his responsibility to manage, organise,
and create events for clients . After 4 years at this position Johnny
began looking for an opportunity that would give him more flexibility
and autonomy.

7.1 Personnel Plan


Johnny is the only principal of the firm. He will hire a part-time
administrative assistant by month four.

Personnel Plan
Year 1 Year 2 Year 3
Johnny

Administrative assistant
Total People

Total Payroll

Financial Plan
The following sections will outline important financial information.

8.1 Important Assumptions


The following table details important financial assumptions.

General Assumptions
Year 1 Year 2 Year 3
Plan Month
Current Interest Rate % % %
Long-term Interest Rate % % %
Tax Rate % % %
Other

8.2 Key Financial Indicators


The following table outlines the key financial indictors.

8.3 Break-even Analysis


The Break-even Analysis indicates what will be needed in monthly
revenue to reach the break-even point.
Break-even Analysis

Monthly Revenue Break-even

Assumptions:
Average Percent Variable Cost %
Estimated Monthly Fixed Cost

8.4 Projected Profit and Loss


The following table will indicate projected profit and loss.
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales
Direct Cost of Sales
Other Production Expenses
Total Cost of Sales

Gross Margin
Gross Margin % % % %
Expenses
Payroll
Sales and Marketing and Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other

Total Operating Expenses

Profit Before Interest and Taxes


EBITDA
Interest Expense
Taxes Incurred

Net Profit
Net Profit/Sales % % %

8.5 Projected Cash Flow


The following chart and table will indicate projected cash flow.
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received

Cash from Operations


Cash Sales
Cash from Receivables
Subtotal Cash from Operations

Additional Cash Received


Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations


Cash Spending
Bill Payments
Subtotal Spent on Operations

Additional Cash Spent


Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent

Net Cash Flow


Cash Balance

8.6 Projected Balance Sheet


The following table will indicate the projected balance sheet.

Pro Forma Balance Sheet


Year 1 Year 2 Year 3
Assets
Current Assets
Cash
Accounts Receivable
Other Current Assets
Total Current Assets

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

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

Long-term Liabilities
Total Liabilities

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

Net Worth

8.7 Business Ratios


Business ratios for the years of this plan are shown below. Industry
profile ratios based on the Standard Industrial Classification (SIC) code
8743, Public Relations Service, are shown for comparison.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth % % % %

Percent of Total Assets


Accounts Receivable % % % %
Other Current Assets % % % %
Total Current Assets % % % %
Long-term Assets % % % %
Total Assets % % % %

Current Liabilities % % % %
Long-term Liabilities % % % %
Total Liabilities % % % %
Net Worth % % % %

Percent of Sales
Sales % % % %
Gross Margin % % % %
Selling, General & Administrative Expenses % % % %
Advertising Expenses % % % %
Profit Before Interest and Taxes % % % %

Main Ratios
Current
Quick
Total Debt to Total Assets % % % %
Pre-tax Return on Net Worth % % % %
Pre-tax Return on Assets % % % %

Additional Ratios Year 1 Year 2 Year 3


Net Profit Margin % % % n.a
Return on Equity % % % n.a

Activity Ratios
Accounts Receivable Turnover n.a
Collection Days n.a
Accounts Payable Turnover n.a
Payment Days n.a
Total Asset Turnover n.a

Debt Ratios
Debt to Net Worth n.a
Current Liab. to Liab. n.a
Liquidity Ratios
Net Working Capital n.a
Interest Coverage n.a

Additional Ratios
Assets to Sales n.a
Current Debt/Total Assets % % % n.a
Acid Test n.a
Sales/Net Worth n.a
Dividend Payout n.a

Appendix

Sales Forecast
Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont
h 1 h 2 h 3 h 4 h 5 h 6 h 7 h 8 h 9 h 10 h 11 h 12
Sales
0
Crisis management
%
0
Image management
%
0
Event management
%
Total Sales

Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont
Direct Cost of Sales
h 1 h 2 h 3 h 4 h 5 h 6 h 7 h 8 h 9 h 10 h 11 h 12
Crisis management
Image management
Event management
Subtotal Direct Cost of
Sales

Personnel Plan
Mont Mont Mont Mont Mont Mont Mont Mont Mont Month Month Month
h 1 h 2 h 3 h 4 h 5 h 6 h 7 h 8 h 9 10 11 12
0
Arbor
%
0
Birk
%
Administrative 0
assistant %
Total People

Total Payroll

General
Assumptions
Mont Mont Mont Mont Mont Mont Mont Mont Mont Month Month Month
h 1 h 2 h 3 h 4 h 5 h 6 h 7 h 8 h 9 10 11 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest
% % % % % % % % % % % %
Rate
Long-term Interest
% % % % % % % % % % % %
Rate
Tax Rate % % % % % % % % % % % %
Other 0 0 0 0 0 0 0 0 0 0 0 0
Pro Forma Profit and
Loss
Mont Mont Mont Mont Mont Mon Mon Mon Mon Mon Mon Mon
h 1 h 2 h 3 h 4 h 5 th 6 th 7 th 8 th 9 th 10 th 11 th 12
Sales
Direct Cost of Sales
Other Production
Expenses
Total Cost of Sales

Gross Margin
Gross Margin % % % % % % % % % % % % %

Expenses
$8,00 $8,00 $8,00 $8,96 $8,96 $8,9 $8,9 $8,9 $8,9 $8,9 $8,9 $8,9
Payroll
0 0 0 0 0 60 60 60 60 60 60 60
Sales and Marketing and
$350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350
Other Expenses
Depreciation $61 $61 $61 $61 $61 $61 $61 $61 $61 $61 $61 $61
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Insurance $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Rent $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
15 $1,20 $1,20 $1,20 $1,34 $1,34 $1,3 $1,3 $1,3 $1,3 $1,3 $1,3 $1,3
Payroll Taxes
%0 0 0 4 4 44 44 44 44 44 44 44
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Operating $10,3 $10,3 $10,3 $11,4 $11,4 $11, $11, $11, $11, $11, $11, $11,
Expenses 11 11 11 15 15 415 415 415 415 415 415 415
Profit Before Interest and ($10, ($8,5 ($7,3 ($6,9 ($6,1 ($2,4 ($3,3 ($3,4 ($26 $1,2 $3,3
$531
Taxes 311) 87) 36) 04) 72) 86) 70) 10) 7) 69 53
($10, ($8,5 ($7,2 ($6,8 ($6,1 ($2,4 ($3,3 ($3,3 ($20 $1,3 $3,4
EBITDA $592
250) 26) 75) 43) 11) 25) 09) 49) 6) 30 14
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

($10, ($8,5 ($7,3 ($6,9 ($6,1 ($2,4 ($3,3 ($3,4 ($26 $1,2 $3,3
Net Profit $531
311) 87) 36) 04) 72) 86) 70) 10) 7) 69 53
- - - - - - - -
0.00 4.22 9.50 21.5
Net Profit/Sales 473.1 234.2 145.3 111.8 26.4 39.8 40.4 2.27
% % % 7%
0% 5% 8% 2% 5% 0% 6% %

Pro Forma Cash Flow


Mon Mon Mon Mon Mon Mon Mon Mon Mon Mon Mon Mon
th 1 th 2 th 3 th 4 th 5 th 6 th 7 th 8 th 9 th 10 th 11 th 12
Cash Received

Cash from Operations


$1,0 $1,6 $1,9 $3,2 $2,9 $2,9 $4,1 $4,4 $4,6 $5,4
Cash Sales $0 $635
96 62 32 90 64 49 07 01 73 41
$1,2 $2,0 $3,1 $3,6 $6,0 $5,5 $5,5 $7,6 $8,1
Cash from Receivables $0 $0 $39
08 71 03 72 89 03 49 46 91
Subtotal Cash from $1,1 $2,8 $4,0 $6,3 $6,6 $9,0 $9,6 $9,9 $12, $13,
$0 $635
Operations 35 70 02 93 35 38 10 50 319 631

Additional Cash Received


Sales Tax, VAT, HST/GST 0.0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received 0%
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
(interest-free)
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
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
$1,1 $2,8 $4,0 $6,3 $6,6 $9,0 $9,6 $9,9 $12, $13,
Subtotal Cash Received $0 $635
35 70 02 93 35 38 10 50 319 631

Mon Mon Mon Mon Mon Mon Mon Mon Mon Mon Mon Mon
Expenditures
th 1 th 2 th 3 th 4 th 5 th 6 th 7 th 8 th 9 th 10 th 11 th 12

Expenditures from
Operations
$8,0 $8,0 $8,0 $8,9 $8,9 $8,9 $8,9 $8,9 $8,9 $8,9 $8,9 $8,9
Cash Spending
00 00 00 60 60 60 60 60 60 60 60 60
$2,2 $2,3 $2,4 $2,6 $2,6 $2,8 $2,8 $2,8 $2,9 $3,0 $3,0
Bill Payments $75
53 43 14 33 76 62 17 21 82 24 65
Subtotal Spent on $8,0 $10, $10, $11, $11, $11, $11, $11, $11, $11, $11, $12,
Operations 75 253 343 374 593 636 822 777 781 942 984 025

Additional Cash Spent


Sales Tax, VAT, HST/GST
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Paid Out
Principal Repayment of
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Borrowing
Other Liabilities Principal
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
Long-term Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment
Purchase Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
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
$8,0 $10, $10, $11, $11, $11, $11, $11, $11, $11, $11, $12,
Subtotal Cash Spent
75 253 343 374 593 636 822 777 781 942 984 025

($8,0 ($9,6 ($9,2 ($8,5 ($7,5 ($5,2 ($5,1 ($2,7 ($2,1 ($1,9 $1,6
Net Cash Flow $335
75) 18) 08) 04) 90) 44) 87) 39) 70) 92) 06
$51, $42, $32, $24, $16, $11, $6,4 $3,6 $1,5 ($47 ($14 $1,4
Cash Balance
775 157 950 446 856 612 25 86 16 6) 2) 65

Pro Forma
Balance Sheet
Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont
h 1 h 2 h 3 h 4 h 5 h 6 h 7 h 8 h 9 h 10 h 11 h 12
Starting
Assets
Balances

Current Assets
$51, $42, $32, $24, $16, $11, $6,4 $3,6 $1,5 ($47 ($14 $1,4
Cash $59,850
775 157 950 446 856 612 25 86 16 6) 2) 65
Accounts $1,1 $3,1 $5,0 $6,5 $9,5 $11, $10, $12, $15, $16, $18,
$0 $0
Receivable 80 76 54 71 77 410 798 922 547 580 493
Other Current
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Total Current $51, $43, $36, $29, $23, $21, $17, $14, $14, $15, $16, $19,
$59,850
Assets 775 337 126 500 427 189 835 484 438 071 438 958

Long-term Assets
$3,7 $3,7 $3,7 $3,7 $3,7 $3,7 $3,7 $3,7 $3,7 $3,7 $3,7 $3,7
Long-term Assets $3,700
00 00 00 00 00 00 00 00 00 00 00 00
Accumulated $0 $61 $122 $183 $244 $305 $366 $427 $488 $549 $610 $671 $732
Depreciation
Total Long-term $3,6 $3,5 $3,5 $3,4 $3,3 $3,3 $3,2 $3,2 $3,1 $3,0 $3,0 $2,9
$3,700
Assets 39 78 17 56 95 34 73 12 51 90 29 68
$55, $46, $39, $32, $26, $24, $21, $17, $17, $18, $19, $22,
Total Assets $63,550
414 915 643 956 822 523 108 696 589 161 467 926

Liabilities and Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont
Capital h 1 h 2 h 3 h 4 h 5 h 6 h 7 h 8 h 9 h 10 h 11 h 12

Current
Liabilities
$2,1 $2,2 $2,3 $2,5 $2,5 $2,7 $2,7 $2,7 $2,8 $2,9 $2,9 $3,0
Accounts Payable $0
75 63 26 44 81 68 23 21 81 22 60 66
Current
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
Other Current
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Subtotal Current $2,1 $2,2 $2,3 $2,5 $2,5 $2,7 $2,7 $2,7 $2,8 $2,9 $2,9 $3,0
$0
Liabilities 75 63 26 44 81 68 23 21 81 22 60 66

Long-term
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
$2,1 $2,2 $2,3 $2,5 $2,5 $2,7 $2,7 $2,7 $2,8 $2,9 $2,9 $3,0
Total Liabilities $0
75 63 26 44 81 68 23 21 81 22 60 66

$66, $66, $66, $66, $66, $66, $66, $66, $66, $66, $66, $66,
Paid-in Capital $66,000
000 000 000 000 000 000 000 000 000 000 000 000
Retained ($2,4 ($2,4 ($2,4 ($2,4 ($2,4 ($2,4 ($2,4 ($2,4 ($2,4 ($2,4 ($2,4 ($2,4
($2,450)
Earnings 50) 50) 50) 50) 50) 50) 50) 50) 50) 50) 50) 50)
($10, ($18, ($26, ($33, ($39, ($41, ($45, ($48, ($48, ($48, ($47, ($43,
Earnings $0
311) 898) 234) 137) 309) 795) 166) 575) 842) 311) 043) 690)
$53, $44, $37, $30, $24, $21, $18, $14, $14, $15, $16, $19,
Total Capital $63,550
239 652 316 413 241 755 384 975 708 239 507 860
Total Liabilities $55, $46, $39, $32, $26, $24, $21, $17, $17, $18, $19, $22,
$63,550
and Capital 414 915 643 956 822 523 108 696 589 161 467 926

$53, $44, $37, $30, $24, $21, $18, $14, $14, $15, $16, $19,
Net Worth $63,550
239 652 316 413 241 755 384 975 708 239 507 860