Executive Summary

The demographics of home ownership has changed radically in the South Gate section of
Gilmore.  Today, over 40% of the area's homes are owned by women.  In addition, 60% of the
area's rentals are owned by women.  More often than not, it's a woman who will now head to the
hardware store for repair parts and advice. Today's hardware store, which more and more are
dominated by the mega-store chains, are cold, uninviting and usually involve more driving time. 
Clara's Hardware is uniquely positioned to take advantage of this new fact of life.  Conveniently
located to serve the South Gate area, Clara's Hardware offers parts, material, and advice to tackle
any home repair, as well as lawn care. The focus is on helping the customer identify what they
want as soon as they enter the store. 

Through the use of a selection of hardware goods, superior personal customer attention, and
reasonable prices, Clara's Hardware will capitalize on this incredible opportunity. A location has
been secured that offers very good foot traffic and easy accessibility. The store will efficiently
lay out the store to increase sales and give the customers the upmost in attention. The projected
growth rate for Clara's Hardware is quite steady. The store will reach profitability by month six
and will have revenue of approximately $100,000 by year three.

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1.1 Mission
The mission of Clara's Hardware is to offer quality hardware products in a customer-friendly
shopping environment. Our customers will get assistance quickly and will leave the store
prepared to get the job done right the first time. Clara's Hardware will also focus on anticipating
the seasonal needs of its customers and providing the best products at competitive prices.  Most
importantly, Clara's Hardware will make the additional 15 minute drive to a mega-hardware
store, too far to go and too expensive to entertain.

1.2 Keys to Success

 Location:  Clara's Hardware is located in South Gate Plaza.  The foot traffic in the plaza
is very strong.  The plaza's primary tenants are the area's successful supermarket, drug
store, and appliance store.  South Gate Plaza has easy access points on both of the area's
major cross streets and is the biggest shopping center in South Gate's  residental area. The
closest hardware store to the South Gate area is a twenty minute drive.

 Seasonal Products: Each season has it own unique demand on a homeowner.  Clara's
Hardware will focus on this pattern and bring in local customers by marketing these items
at competitive prices.

 Repair/Project Resource Area: The first section customers will find when they enter is
a repair/project resource area that they can use to plan repairs or projects.  There will be a
repair/project resource person to answer questions and direct them to the section of store
where the needed products are. 

 In-Store Expertise: Store employees will be knowledgeable in home repairs/projects.  In

addition, the repair/project resource area will be used to conduct short trainings and
demonstrations in home repair and home projects.

ompany Summary
Clara's Hardware offers the parts, material, and advice to tackle any home repair, as well as lawn
care.  The store's owner, Clara Johnson, has worked in the hardware industry for over ten years. 
Most recently, she was the shift manager at Home Depot located in Waterfront Shopping
Center.  Her area of expertise was home repairs. She conducted four presentations a week on all
manner of home repair. 

The business will make a profit in month six, and will grow steadily each consecutive month.

2.1 Start-up Summary

The start-up cost of Clara's Hardware will consist primarily of inventory and display equipment.
Clara Johnson will invest $80,000.  She will also secure a $150,000 SBA loan.
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Start-up
Requirements
Start-up Expenses
Legal $1,000
Stationery etc. $0
Brochures $0
Consultants $0
Insurance $0
Rent $3,000
Start-Up Inventory $50,000
Display Set-Up $5,000
Cash Reserve for Hiring $20,000
Advertising $0
Other $0
Total Start-up Expenses $79,000
Start-up Assets
Cash Required $121,000
Start-up Inventory $0
Other Current Assets $0
Long-term Assets $30,000
Total Assets $151,000
Total Requirements $230,000

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Start-up Funding
Start-up Expenses to Fund $79,000
Start-up Assets to Fund $151,000
Total Funding Required $230,000
Assets
Non-cash Assets from Start-up $30,000
Cash Requirements from Start-up $121,000
Additional Cash Raised $0
Cash Balance on Starting Date $121,000
Total Assets $151,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $150,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $150,000
Capital
Planned Investment
Clara Johnson $80,000
Silent Partner $0
Other $0
Additional Investment Requirement $0
Total Planned Investment $80,000
Loss at Start-up (Start-up Expenses) ($79,000)
Total Capital $1,000
Total Capital and Liabilities $151,000
Total Funding $230,000

2.2 Company Ownership

Clara's Hardware is owned by Clara Johnson.

Products
Clara's Hardware offers the parts, material, and advice to tackle any home repair, as well as lawn
care. The primary focus will be to satisfy the seasonal needs of the area's customers.

 Fall/Winter: Weatherization projects.

 Spring: Garden/lawn projects/home improvement projects.
 Summer: Outdoor building projects.

Market Analysis Summary

In the past ten years, most local hardware stores have closed due to the success of large hardware
mega-stores drawing away local customers. The attraction of the larger stores has always been
price and and a large inventory. Customers would rather drive 20 minutes and make sure they
will find what they want rather than drive five minutes and hope the local store will have it at a
low price. Yet these same hardware mega-stores are sterile and not customer-friendly. 
Customers can wander the aisles, aimlessly lost, looking for a two dollar item.  And when they
do find the right section, they will most likely select the most popular brand no matter how large
the selection is. What these store offer in price and selection, they lose in creating a confusing,
frustrating maze for their  customers.

Clara believes that a local hardware store can provide a reasonable selection in the most
important product areas, be competitive in pricing, and offer the customer a shopping
environment that will assure repeat business.

4.1 Market Segmentation

Clara's Hardware will focus on three significant customer groups:

 Women home owners:  Many women home owners perform their own home repairs and
home improvement projects.  Clara knows this first hand since she has helped many of
these women in mastering the skills needed to do the work successfully. Clara's
Hardware will be uniquely designed to be responsive to the shopping environment that
will attract and retain this important customer group.

 Customers who need assistance in planning a project/repair: This customer group can
have the most frustrating experience in the hardware mega-stores. If they can't make the
scheduled demos or trainings, they are left to sort thing out with whoever they can flag
down in the store help them. Clara's Hardware will be set-up to provide resources and
assistance as soon as they walk into the store.

 Local repair and home improvement professionals: The South Gate area supports a
good number of repair and home improvement professionals. Currently, the hardware
mega-stores have their business but Clara's Hardware can win a increasing share of this
customer group through aggressive marketing.  Time is money and if Clara's Hardware
can save them a trip outside the area, they will buy there.
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Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Women Home Owners 10% 15,000 16,500 18,150 19,965 21,962 10.00%
New Repair/Project Customers 20% 40,000 48,000 57,600 69,120 82,944 20.00%
Repair/Home Improvement
5% 42 44 46 48 50 4.46%
Professionals
Total 17.51% 55,042 64,544 75,796 89,133 104,956 17.51%

Strategy and Implementation Summary

Clara's Hardware will be heavily promoting the store.  We will use the local paper, The Gilmore
Sun, to advertise.  In addition, we will have a drawing for five $1,000 home improvement gift
certificates that can be redeemed at selected home improvement professionals.  We will have
new drawings each week for the first eight weeks of the store's operation. Clara's Hardware will
use the drawings to make connections with the local home improvement professionals.  It is our
plan to recoup some of the gift certificate money in material purchases that will be made by the
home improvement professionals the winners select.

5.1 Competitive Edge

Clara's Hardware's competitive edge is:

 Location:  Clara's Hardware is located in South Gate Plaza.  The foot traffic in the plaza
is very strong. The closest hardware store to the South Gate area is a twenty minute drive.

 Seasonal Products: Each season has it own unique demand on a homeowner.  Clara's
Hardware will focus on this pattern and bring in local customers by marketing these items
at competitive prices.

 Repair/Project Resource Area: The first section customers will find when they enter the
store is a repair/project resource area that they can use to plan repairs or projects.  There
will be a repair/project resource person there to answer their questions and direct them to
the section of store where the needed products are. 

 In-Store Expertise: Store employees will be knowledgeable in home repairs/projects.  In

addition, the repair/project resource area will be used to conduct short trainings and
demonstrations in home repair and home projects.

5.2 Sales Strategy

The sales strategy of Clara's Hardware is simple. First, create a shopping environment that will
create confidence in the customer that he or she will get the needed material, part, or instructions
to get the job done right the first time. Second, make the store easy to navigate, so customer can
get in and out as quickly as possible. Third, know your customer's seasonal hardware needs and
offer it at competitive prices.

5.2.1 Sales Forecast

Clara's Hardware will hit the ground running in April.

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Sales Forecast
Year 1 Year 2 Year 3
Sales
Hardware $964,000 $1,090,000 $1,240,000
Other $0 $0 $0
Total Sales $964,000 $1,090,000 $1,240,000
Direct Cost of Sales Year 1 Year 2 Year 3
Hardware $474,000 $500,000 $612,000
Other $0 $0 $0
Subtotal Direct Cost of Sales $474,000 $500,000 $612,000

Management Summary
Clara Johnson is a excellent staff supervisor and will do very well in managing the staff of
Clara's Hardware.

6.1 Personnel Plan

Clara's Hardware will have the following staff members:

 Manager.
 Assistant Manager.
  Office Manager/Accountant.
 Checkers (full time and part time).
 Two Customer Assistants.
 Stockers (full time and part time).

Personnel Plan
Year 1 Year 2 Year 3
Manager $36,000 $40,000 $45,000
Assistant Manager $36,000 $39,000 $43,000
Office Manager/Bookkeeper $36,000 $39,000 $42,000
Checkers $32,400 $35,500 $40,000
Customer Assistants $60,000 $68,000 $74,000
Stockers $39,600 $44,000 $48,000
Other $0 $0 $0
Total People 9 9 9
Total Payroll $240,000 $265,500 $292,000

Financial Plan
The following is the financial plan for Clara's Hardware.

7.1 Projected Cash Flow

The following table and chart highlight the projected cash flow for three years.

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Pro Forma Cash Flow

Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $964,000 $1,090,000 $1,240,000
Subtotal Cash from Operations $964,000 $1,090,000 $1,240,000
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 Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $964,000 $1,090,000 $1,240,000
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $240,000 $265,500 $292,000
Bill Payments $648,662 $734,676 $847,507
Subtotal Spent on Operations $888,662 $1,000,176 $1,139,507
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $30,000 $30,000 $30,000
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $918,662 $1,030,176 $1,169,507
Net Cash Flow $45,338 $59,824 $70,493
Cash Balance $166,338 $226,162 $296,655

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7.2 Break-even Analysis

The monthly sales break-even point is $65,133.

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Break-even Analysis
Monthly Revenue Break-even $65,133
Assumptions:
Average Percent Variable Cost 49%
Estimated Monthly Fixed Cost $33,107

7.3 Projected Profit and Loss

The following table and chart highlight the projected profit and loss for three years.
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Pro Forma Profit and Loss

Year 1 Year 2 Year 3
Sales $964,000 $1,090,000 $1,240,000
Direct Cost of Sales $474,000 $500,000 $612,000
Other Production Expenses $0 $0 $0
Total Cost of Sales $474,000 $500,000 $612,000
Gross Margin $490,000 $590,000 $628,000
Gross Margin % 50.83% 54.13% 50.65%
Expenses
Payroll $240,000 $265,500 $292,000
Sales and Marketing and Other Expenses $75,000 $100,000 $100,000
Depreciation $4,284 $4,285 $4,285
Leased Equipment $0 $0 $0
Utilities $6,000 $6,000 $6,000
Insurance $0 $0 $0
Rent $36,000 $36,000 $36,000
Payroll Taxes $36,000 $39,825 $43,800
Other $0 $0 $0
Total Operating Expenses $397,284 $451,610 $482,085
Profit Before Interest and Taxes $92,716 $138,390 $145,915
EBITDA $97,000 $142,675 $150,200
Interest Expense $13,375 $10,500 $7,500
Taxes Incurred $23,802 $38,367 $41,525
Net Profit $55,539 $89,523 $96,891
Net Profit/Sales 5.76% 8.21% 7.81%

7.4 Projected Balance Sheet

The following table highlights the projected balance sheet for three years.

Pro Forma Balance Sheet

Year 1 Year 2 Year 3
Assets
Current Assets
Cash $166,338 $226,162 $296,655
Inventory $46,200 $48,734 $59,651
Other Current Assets $0 $0 $0
Total Current Assets $212,538 $274,896 $356,305
Long-term Assets
Long-term Assets $30,000 $30,000 $30,000
Accumulated Depreciation $4,284 $8,569 $12,854
Total Long-term Assets $25,716 $21,431 $17,146
Total Assets $238,254 $296,327 $373,451
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $61,715 $60,265 $70,499
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $61,715 $60,265 $70,499
Long-term Liabilities $120,000 $90,000 $60,000
Total Liabilities $181,715 $150,265 $130,499
Paid-in Capital $80,000 $80,000 $80,000
Retained Earnings ($79,000) ($23,461) $66,062
Earnings $55,539 $89,523 $96,891
Total Capital $56,539 $146,062 $242,952
Total Liabilities and Capital $238,254 $296,327 $373,451
Net Worth $56,539 $146,062 $242,952

7.5 Ratios

Business ratios for the years of this plan are shown below.  Industry profile ratios based on the
Standard Industrial Classification (SIC) code 5251, Hardware Stores, are shown for comparison.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 13.07% 13.76% 6.00%
Percent of Total Assets
Inventory 19.39% 16.45% 15.97% 48.50%
Other Current Assets 0.00% 0.00% 0.00% 20.20%
Total Current Assets 89.21% 92.77% 95.41% 79.70%
Long-term Assets 10.79% 7.23% 4.59% 20.30%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 25.90% 20.34% 18.88% 37.60%
Long-term Liabilities 50.37% 30.37% 16.07% 19.70%
Total Liabilities 76.27% 50.71% 34.94% 57.30%
Net Worth 23.73% 49.29% 65.06% 42.70%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 50.83% 54.13% 50.65% 33.80%
Selling, General & Administrative Expenses 45.07% 45.92% 42.83% 21.10%
Advertising Expenses 7.78% 9.17% 8.06% 1.90%
Profit Before Interest and Taxes 9.62% 12.70% 11.77% 1.10%
Main Ratios
Current 3.44 4.56 5.05 2.24
Quick 2.70 3.75 4.21 0.58
Total Debt to Total Assets 76.27% 50.71% 34.94% 57.30%
Pre-tax Return on Net Worth 140.33% 87.56% 56.97% 2.20%
Pre-tax Return on Assets 33.30% 43.16% 37.06% 5.30%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 5.76% 8.21% 7.81% n.a
Return on Equity 98.23% 61.29% 39.88% n.a
Activity Ratios
Inventory Turnover 10.91 10.53 11.29 n.a
Accounts Payable Turnover 11.51 12.17 12.17 n.a
Payment Days 27 30 28 n.a
Total Asset Turnover 4.05 3.68 3.32 n.a
Debt Ratios
Debt to Net Worth 3.21 1.03 0.54 n.a
Current Liab. to Liab. 0.34 0.40 0.54 n.a
Liquidity Ratios
Net Working Capital $150,823 $214,631 $285,806 n.a
Interest Coverage 6.93 13.18 19.46 n.a
Additional Ratios
Assets to Sales 0.25 0.27 0.30 n.a
Current Debt/Total Assets 26% 20% 19% n.a
Acid Test 2.70 3.75 4.21 n.a
Sales/Net Worth 17.05 7.46 5.10 n.a
Dividend Payout 0.00 0.00 0.00 n.a

Appendix

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
Hardware 0% $50,000 $60,000 $70,000 $75,000 $85,000 $90,000 $100,000 $85,000 $90,000 $85,000 $79,000 $95,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $50,000 $60,000 $70,000 $75,000 $85,000 $90,000 $100,000 $85,000 $90,000 $85,000 $79,000 $95,000
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
Hardware $25,000 $30,000 $35,000 $37,000 $42,000 $45,000 $50,000 $42,000 $45,000 $42,000 $39,000 $42,000
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $25,000 $30,000 $35,000 $37,000 $42,000 $45,000 $50,000 $42,000 $45,000 $42,000 $39,000 $42,000

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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
Manager 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Assistant Manager 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Office Manager/Bookkeeper 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Checkers 0% $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700
Customer Assistants 0% $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Stockers 0% $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 9 9 9 9 9 9 9 9 9 9 9 9
Total Payroll $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000

General Assumptions
Month
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11
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

Pro Forma Profit and Loss

Month
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11
12
Sales $50,000 $60,000 $70,000 $75,000 $85,000 $90,000 $100,000 $85,000 $90,000 $85,000 $79,000 $95,000
Direct Cost of Sales $25,000 $30,000 $35,000 $37,000 $42,000 $45,000 $50,000 $42,000 $45,000 $42,000 $39,000 $42,000
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $25,000 $30,000 $35,000 $37,000 $42,000 $45,000 $50,000 $42,000 $45,000 $42,000 $39,000 $42,000
Gross Margin $25,000 $30,000 $35,000 $38,000 $43,000 $45,000 $50,000 $43,000 $45,000 $43,000 $40,000 $53,000
Gross Margin % 50.00% 50.00% 50.00% 50.67% 50.59% 50.00% 50.00% 50.59% 50.00% 50.59% 50.63% 55.79%
Expenses
Payroll $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
Sales and Marketing and
$20,000 $25,000 $5,000 $0 $5,000 $5,000 $0 $5,000 $0 $0 $5,000 $5,000
Other Expenses
Depreciation $357 $357 $357 $357 $357 $357 $357 $357 $357 $357 $357 $357
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Payroll Taxes 15% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $46,857 $51,857 $31,857 $26,857 $31,857 $31,857 $26,857 $31,857 $26,857 $26,857 $31,857 $31,857
Profit Before Interest and
($21,857) ($21,857) $3,143 $11,143 $11,143 $13,143 $23,143 $11,143 $18,143 $16,143 $8,143 $21,143
Taxes
EBITDA ($21,500) ($21,500) $3,500 $11,500 $11,500 $13,500 $23,500 $11,500 $18,500 $16,500 $8,500 $21,500
Interest Expense $1,229 $1,208 $1,188 $1,167 $1,146 $1,125 $1,104 $1,083 $1,063 $1,042 $1,021 $1,000
Taxes Incurred ($6,926) ($6,920) $587 $2,993 $2,999 $3,605 $6,612 $3,018 $5,124 $4,530 $2,137 $6,043
Net Profit ($16,160) ($16,146) $1,369 $6,983 $6,998 $8,413 $15,427 $7,042 $11,956 $10,571 $4,986 $14,100
Net Profit/Sales -32.32% -26.91% 1.96% 9.31% 8.23% 9.35% 15.43% 8.28% 13.28% 12.44% 6.31% 14.84%

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 $50,000 $60,000 $70,000 $75,000 $85,000 $90,000 $100,000 $85,000 $90,000 $85,000 $79,000 $95,000
Subtotal Cash from Operations $50,000 $60,000 $70,000 $75,000 $85,000 $90,000 $100,000 $85,000 $90,000 $85,000 $79,000 $95,000
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 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 $50,000 $60,000 $70,000 $75,000 $85,000 $90,000 $100,000 $85,000 $90,000 $85,000 $79,000 $95,000
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
Bill Payments $2,443 $72,903 $61,038 $53,644 $50,302 $63,191 $64,703 $69,019 $49,207 $60,646 $50,758 $50,807
Subtotal Spent on Operations $22,443 $92,903 $81,038 $73,644 $70,302 $83,191 $84,703 $89,019 $69,207 $80,646 $70,758 $70,807
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
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal
$2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Repayment
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 $24,943 $95,403 $83,538 $76,144 $72,802 $85,691 $87,203 $91,519 $71,707 $83,146 $73,258 $73,307
Net Cash Flow $25,057 ($35,403) ($13,538) ($1,144) $12,198 $4,309 $12,797 ($6,519) $18,293 $1,854 $5,742 $21,693
Cash Balance $146,057 $110,654 $97,115 $95,972 $108,169 $112,478 $125,275 $118,756 $137,049 $138,903 $144,645 $166,338

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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

Startin
g
Assets
Balanc
es
Current
Assets
$121,0 $146,0 $110,6 $97,11 $95,97 $108,1 $112,4 $125,2 $118,7 $137,0 $138,9 $144,6 $166,3
Cash
00 57 54 5 2 69 78 75 56 49 03 45 38
$27,50 $33,00 $38,50 $40,70 $46,20 $49,50 $55,00 $46,20 $49,50 $46,20 $42,90 $46,20
Inventory $0
0 0 0 0 0 0 0 0 0 0 0 0
Other
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Total
$121,0 $173,5 $143,6 $135,6 $136,6 $154,3 $161,9 $180,2 $164,9 $186,5 $185,1 $187,5 $212,5
Current
00 57 54 15 72 69 78 75 56 49 03 45 38
Assets
Long-
term
Assets
Long-
$30,00 $30,00 $30,00 $30,00 $30,00 $30,00 $30,00 $30,00 $30,00 $30,00 $30,00 $30,00 $30,00
term
0 0 0 0 0 0 0 0 0 0 0 0 0
Assets
Accumul
ated
$0 $357 $714 $1,071 $1,428 $1,785 $2,142 $2,499 $2,856 $3,213 $3,570 $3,927 $4,284
Depreciat
ion
Total
Long- $30,00 $29,64 $29,28 $28,92 $28,57 $28,21 $27,85 $27,50 $27,14 $26,78 $26,43 $26,07 $25,71
term 0 3 6 9 2 5 8 1 4 7 0 3 6
Assets
Total $151,0 $203,2 $172,9 $164,5 $165,2 $182,5 $189,8 $207,7 $192,1 $213,3 $211,5 $213,6 $238,2
Assets 00 00 40 44 44 84 36 76 00 36 33 18 54
Liabilitie
Month Month Month Month Month Month Month Month Month Month Month Month
s and
1 2 3 4 5 6 7 8 9 10 11 12
Capital
Current
Liabilitie
s
Accounts $70,86 $59,24 $51,98 $48,19 $61,04 $62,37 $67,39 $47,17 $58,95 $49,08 $48,67 $61,71
$0
Payable 0 6 2 8 0 9 2 5 4 0 9 5
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowin
g
Other
Current
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilitie
s
Subtotal
Current $70,86 $59,24 $51,98 $48,19 $61,04 $62,37 $67,39 $47,17 $58,95 $49,08 $48,67 $61,71
$0
Liabilitie 0 6 2 8 0 9 2 5 4 0 9 5
s
Long-
term $150,0 $147,5 $145,0 $142,5 $140,0 $137,5 $135,0 $132,5 $130,0 $127,5 $125,0 $122,5 $120,0
Liabilitie 00 00 00 00 00 00 00 00 00 00 00 00 00
s
Total
$150,0 $218,3 $204,2 $194,4 $188,1 $198,5 $197,3 $199,8 $177,1 $186,4 $174,0 $171,1 $181,7
Liabilitie
00 60 46 82 98 40 79 92 75 54 80 79 15
s
Paid-in $80,00 $80,00 $80,00 $80,00 $80,00 $80,00 $80,00 $80,00 $80,00 $80,00 $80,00 $80,00 $80,00
Capital 0 0 0 0 0 0 0 0 0 0 0 0 0
Retained ($79,0 ($79,0 ($79,0 ($79,0 ($79,0 ($79,0 ($79,0 ($79,0 ($79,0 ($79,0 ($79,0 ($79,0 ($79,0
Earnings 00) 00) 00) 00) 00) 00) 00) 00) 00) 00) 00) 00) 00)
($16,1 ($32,3 ($30,9 ($23,9 ($16,9 ($8,54 $13,92 $25,88 $36,45 $41,43 $55,53
Earnings $0 $6,884
60) 06) 37) 54) 56) 3) 6 2 3 9 9
Total ($15,1 ($31,3 ($29,9 ($22,9 ($15,9 ($7,54 $14,92 $26,88 $37,45 $42,43 $56,53
$1,000 $7,884
Capital 60) 06) 37) 54) 56) 3) 6 2 3 9 9
Total
Liabilitie $151,0 $203,2 $172,9 $164,5 $165,2 $182,5 $189,8 $207,7 $192,1 $213,3 $211,5 $213,6 $238,2
s and 00 00 40 44 44 84 36 76 00 36 33 18 54
Capital
Net ($15,1 ($31,3 ($29,9 ($22,9 ($15,9 ($7,54 $14,92 $26,88 $37,45 $42,43 $56,53
$1,000 $7,884
Worth 60) 06) 37) 54) 56) 3) 6 2 3 9 9

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