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

1
Chart: Highlights................................................................................................................................... 2
1.1 Objectives........................................................................................................................................ 2
1.2 Mission...............................................................................................................................................2
1.3 Highlights......................................................................................................................................... 3
2.0 Company Summary......................................................................................................................3
2.1 Company Strategy........................................................................................................................3
2.2 Company History...........................................................................................................................3
Table: Past Performance....................................................................................................................3
Chart: Past Performance....................................................................................................................5
2.3 Risks...................................................................................................................................................5
2.4 Value Proposition...........................................................................................................................5
3.0 Services.............................................................................................................................................6
3.1 Service Description.......................................................................................................................6
3.2 Technology.......................................................................................................................................6
3.3 Future Services..............................................................................................................................7
4.0 Market Analysis Summary.........................................................................................................7
4.1 Market Segmentation..................................................................................................................7
Chart: Market Analysis (Pie).............................................................................................................8
Table: Market Analysis........................................................................................................................8
4.2 Service Business Analysis..........................................................................................................8
4.2.1 Competition and Buying Patterns.....................................................................................10
5.0 Strategy and Implementation Summary...........................................................................11
Table: Sales Forecast........................................................................................................................ 11
Chart: Sales Monthly......................................................................................................................... 12
5.1 Marketing Strategy.....................................................................................................................12
5.1.1 Marketing Programs...............................................................................................................12
5.2 Strategic Alliances...................................................................................................................... 13
6.0 Management Summary.............................................................................................................14
Table: Personnel..................................................................................................................................14
7.0 Financial Plan................................................................................................................................15
7.1 Important Assumptions............................................................................................................ 15
Table: General Assumptions...........................................................................................................15
7.2 Break-even Analysis...................................................................................................................16
7.2 Break-even Analysis...................................................................................................................16
Chart: Break-even Analysis............................................................................................................16
Table: Break-even Analysis............................................................................................................ 16
7.3 Projected Profit and Loss......................................................................................................... 17
7.3 Projected Profit and Loss......................................................................................................... 17
Table: Profit and Loss........................................................................................................................17
7.4 Projected Cash Flow...................................................................................................................18
7.4 Projected Cash Flow...................................................................................................................18
Table: Cash Flow.................................................................................................................................18
Chart: Cash........................................................................................................................................... 19
7.5 Projected Balance Sheet.......................................................................................................... 20
Table: Balance Sheet.........................................................................................................................20
7.6 Business Ratios............................................................................................................................20
Table: Ratios.........................................................................................................................................20
Table: Sales Forecast.......................................................................................................................... 1
Table: Personnel....................................................................................................................................2
Table: Personnel....................................................................................................................................2
Table: General Assumptions.............................................................................................................3
Table: General Assumptions.............................................................................................................3
Table: Profit and Loss..........................................................................................................................4
Table: Profit and Loss..........................................................................................................................4
Table: Cash Flow...................................................................................................................................5
Table: Cash Flow...................................................................................................................................5
Table: Balance Sheet...........................................................................................................................7
Table: Balance Sheet...........................................................................................................................7
1.0 Executive Summary

City Taxi is a San Francisco, CA based company, whose mission is to provide reliable, timely, and
safe cab services by using complete, in-car credit and debit card access, along with computer-aided
dispatch. The company will establish its presence in the industry by acquiring an existing taxi cab
association, Mighty Cab, a family-owned business that was formed 12 years ago.

City Taxi will provide complete taxi cab services using the latest equipment and technology to
facilitate the travel of individuals in and around the San Francisco area. The company's products
and services show that we are an innovative, forward thinking company that recognizes the need
to move with ever-changing customer needs. At City Taxi, our philosophy is one that emphasizes
service, and a realization that effective communication is a key component in our business. The
company also realizes that, in a competitive environment, flexibility and professionalism maintain
that leading edge.

The company has drivers and employees that are helpful, courteous, and fully trained on the use of
the computer dispatch system. As an added safety measure for both drivers and passengers, City
Taxi cabs are fitted with Global Positioning Systems (GPS), which enable the cabs to be tracked or
located in an emergency. All City Taxi cabs will be clean, well maintained, and inspected regularly
for safety and comfort.

The company's strategy is to build reputation and market share by establishing our business
offering as a viable alternative to existing taxi cab services in the area. The company's goal in the
next year is pursue an aggressive marketing campaign and from that, penetrate at least 65% of
the market share. The company's long-term goal is be the top rated ground transportation
company in San Francisco.

The company's emphasis is on the dispatch, mobile data, and credit/debit card markets of the taxi
industry. In aggregate, these markets are believed to represent potential sales in excess of $119
million as of March 1999.  Within these markets, City Taxi will focus on the more lucrative credit
card/debit card segment.  This segment, when introduced into any area, has started out slow but
over a three-year period has increased by 20% each year in Maryland and Virginia, and by 25-
35% in New York each year.

Companies with whom City Taxi competes are Transportation, Inc., Capital Cab, Yellow Cab, and
Diamond Cab. Their weaknesses are that they do not have the credit/debit card payment option,
and some still use the radio dispatch system. The company has a competitive advantage, however,
because our technology is unique to the taxi industry in San Francisco. The GPS will enable the
company to provide timely service by giving an accurate estimated time of arrival (ETA). The
credit/debit card feature will give customers convenience and privacy during the transaction period.

Reliable communications are essential under all circumstances in this business. As such, City Taxi
will use the KDT 5000 system.  The KDT 5000 system design provides multiple levels of reliability
to assure communications will be maintained under the most rigorous condition. The company will
also run a state of the art call center that will be established by Rockwell International.

The company is seeking $2.5 million of financing to fund the acquisition of Mighty Cab Association
and its initial operations. This funding will cover the purchase of Mighty Cab, marketing, purchase
of extra vehicles, software, and hardware. Projected revenues for 1999 to 2001 are $200,000, $1.5
million, and $2.2 million, respectively.
Chart: Highlights

Highlights

$2,100,000

$1,800,000

$1,500,000
Sales
$1,200,000
Gross Margin
$900,000
Net Profit
$600,000

$300,000

$0

1999 2000 2001

1.1 Objectives

The company's goal in the next year is to pursue an aggressive marketing campaign and from that,
penetrate at least 65% of the market share. The company's goal in the next two to five years is be
the top rated ground transportation company in the San Francisco Metro Area by continuously
monitoring, evaluating, and following up on customer call-ins.

Key components of City Taxi's initial strategy can be summarized as follows.

Establish Relationship with Rockwell International. The company is currently working to establish
and develop a working relationship with Rockwell International. This will enable City Taxi to lock
into the many services that they offer including, but not limited to:

 Managerial
 Call center and customer service efficiency
 Management consulting
 Technology consulting
 Product management
 Continuous improvement

1.2 Mission

The mission of City Taxi is to provide reliable, timely, and safe cab services by using complete in-
car credit/debit card access, along with computer aided dispatch.

1.3 Highlights

Highlights of City Taxi

 Technology. City Taxi has a unique Global Positioning System (GPS) that pinpoints the
nearest driver, thus allowing the driver to give an accurate ETA.
  Credit/debit card system. This system is the first of its kind in San Francisco and is
convenient for both the passenger and driver because approval is given instantly. The swipe
machine is located in the back seat, giving the passenger privacy.
 Trademarks. The company is in the process of registering the name Patriot as a
trademark.
 Advertising. City Taxi is already in advanced discussions with TCI Media Services to
provide advertising services and market research.
 Seasoned management. The company's management is highly experienced and qualified
and has extensive experience in the industry.
 Strategic relationships. The company has, and will continue to establish, relationships
with organizations that will enhance professional growth. These alliances are valuable to
City Taxi because they allow us to get updates on technology, added tech support, and a
strong presence in the market.
 Exclusive rights to software. City Taxi has the exclusive rights to the latest taxi cab
software in San Francisco.

2.0 Company Summary

Legal Business Description:

City Taxi was founded in 1997 in San Francisco, California, by Mr. Johnson Taylor. The company is
a California C-Corporation under the name Patriot, Inc. d.b.a. City Taxi.

2.1 Company Strategy

The City Taxi's strategy is to saturate the market with television ads depicting the company as a
premier taxi service. The company will leverage the newest in car technology to dominate the
credit card segment of the market. City Taxi will dominate the market because no other company
has this unique feature.

The company's strategy is to build reputation and market share in our target market by
establishing our business offering as a viable alternative to existing taxi cab services. City Taxi
intends to get the confidence of customers and establish itself as a company that provides superior
customer service by using up to date technology to provide timely and reliable services.

2.2 Company History

As can be seen in the chart and table below, the company performed well its first year, but sales
have not been fully actualized. That is the intent of this plan: to increase sales by utilizing our
competitive advantages and by the acquisition of a rival taxi company.

Table: Past Performance

Past Performance
1996 1997 1998
Sales $0 $0 $100,000
Gross Margin $0 $0 $60,000
Gross Margin % 0.00% 0.00% 60.00%
Operating Expenses $0 $0 $20,000

Balance Sheet
1996 1997 1998

Current Assets
 Cash $0 $0 $45,000
Other Current Assets $0 $0 $13,400
Total Current Assets $0 $0 $58,400

Long-term Assets
Long-term Assets $0 $0 $75,000
Accumulated Depreciation $0 $0 $10,000
Total Long-term Assets $0 $0 $65,000

Total Assets $0 $0 $123,400

Current Liabilities
Accounts Payable $0 $0 $23,600
Current Borrowing $0 $0 $10,000
Other Current Liabilities (interest free) $0 $0 $25,400
Total Current Liabilities $0 $0 $59,000

Long-term Liabilities $0 $0 $25,000

Total Liabilities $0 $0 $84,000

Paid-in Capital $0 $0 $37,000

Retained Earnings $0 $0 $2,400
Earnings $0 $0 $0
Total Capital $0 $0 $39,400

Total Capital and Liabilities $0 $0 $123,400

Other Inputs
Payment Days 0 0 30

Chart: Past Performance

Past Performance

$100,000

$90,000

$80,000

$70,000
Sales
$60,000
Gross
$50,000
Net
$40,000

$30,000

$20,000

$10,000

$0
1996 1997 1998

2.3 Risks

The company recognizes that it is subject to both market and technological risks. The company's
view of its risks, as well as how each is being addressed, is as follows:
  Lock out in industry for new cab companies. City Taxi is aware that this is an extremely
difficult industry to get into. To mitigate this risk, City Taxi has established an alliance with
the leading cab company in the San Francisco area, Transportation, Inc. The alliance will
allow City Taxi to run under their color scheme. Another way in which the company plans to
mitigate this risk is by acquiring an existing cab company, Mighty Cab.
 Acquiring insurance. City Taxi will have to acquire extensive insurance to cover all
aspects of operations, but will be faced with high rates. To lessen this risk, City Taxi plans to
use the relationship with Transportation, Inc. to run under their insurance companies, First
Insurance of San Francisco and Columbia Insurance. Alternatively, the company plans to
purchase insurance from Newark Insurance and Amalgamated Insurance, which offer lower
rates. This will also bring leverage in negotiating with Transportation, Inc.  
 Adequate facility. City Taxi realizes that it is difficult to locate a facility with the space
required for all operations. City Taxi has found a facility with ample space for all operations.
There is enough room to set up repair facilities, and there is adjacent space to store
vehicles.

2.4 Value Proposition

City Taxi's products and services offer the following advantages to customers:

 Convenience. City Taxi's products and services provide the driver and the customer with
the convenience of a credit/debit card system that gives instant approval.
 State-of-the-art Call Center. City Taxi's call center allows us to provide a timely service
by picking up the closest vehicle when a call comes in. When a call comes in, it is put into
the system, the system sends a message to dispatcher, the system then tags the closest
vehicle in the zone, neighboring zone, on the way to the zone, or the dispatcher can call.

3.0 Services

City Taxi provides taxi services utilizing computer dispatch to help with timely pick up and quality
customer care. The software and hardware systems used by City Taxi give customers convenience
by allowing them to use credit and debit cards in the taxi.

3.1 Service Description

Taxi Cab Services

The taxi driver is often the first contact that a visitor has with San Francisco and as such, City Taxi
realizes the importance of first impressions and customer care. The company's customer-oriented
philosophy and its commitment to service are reflected in the careful selection of drivers and the
comprehensive training program. Customers can expect the following high standards when they
travel with City Taxi:

 Clean and tidy taxis

 Friendly and polite drivers
 Careful driving
 Most practical route taken

Maintenance/Repair Services

This division of City Taxi deals with the pure maintenance of vehicles. Drivers will be charged at
discounted rates for tune-ups, wheel alignments, and other repairs.
3.2 Technology

GLOBAL POSITIONING SYSTEMS. City Taxi has a unique Global Positioning System (GPS) that
pinpoints the nearing driver thus allowing the driver to give an accurate estimated time of arrival.

RADIO SYSTEM. Reliable communications are essential under all circumstances. City Taxi will use
the KDT 5000 system design because it provides multiple levels of reliability to assure
communications will be maintained under the most rigorous condition.

CREDIT/DEBIT CARD SYSTEM. City Taxi will use the in-car credit/debit card system, which is a
new market segment for the taxi industry in San Francisco. This involves customers using
their debit cards in any City Taxi cab with approval being given instantly, eliminating the need to
dial in to head office for approval numbers. By using this system, the company will be addressing
the need for convenience and reliability. City Taxi also features a computer-aided dispatch system
which will be represented under the Patriot name. The company is currently in the process of
making Patriot a trademark. The company has also applied for a license to run a 490 narrow band
frequency and voice data transmission. From the perspective of customers, the advantage of City
Taxi's products and services is the high level of technology, which leads to superior customer
service. In contrast to competitors, City Taxi's products and services offer convenience. The key
pad and swipe machine are built into the back seat, thus giving the customer privacy. Whereas
competitors have to call in a credit/debit card transaction for approval, our customers will be able
to get on-the-spot approval before the driver even pulls over.

3.3 Future Services

City Taxi plans to respond to market needs by following up with taxi plus (wheelchair accessible
taxi vans with credit card access inside) with the next 5 years. City Taxi believes it can capture this
niche and a gain in overall market share. Additional plans for next generation products and services
include rent to own options for our drivers. Introduction of the company's next generation product
and services is expected to be within 12 months.

4.0 Market Analysis Summary

The company's emphasis is on the dispatch, mobile data, and credit/debit card markets of the taxi
industry. In aggregate, these markets are believed to represent potential sales in excess of $119
million as of March 1999. Within these markets, City Taxi will focus on the more lucrative
credit/debit card segment. This segment, when introduced into any area has started out slow, but
over a three-year period has increased by 20% each year in Maryland and Virginia, and by 25-35%
in New York each year.

The company believes that the major future trend in the industry will be complete credit card
access for consumers. The International Taxi Livery Association (ITLA) forecasts a very steady
growth for the taxi industry in the next four years.

Market Size Statistics:

Estimated number of U.S. establishments 6,431

Number of people employed in this industry 49,005
Total annual sales in this industry $1.34 million
Average employees per establishment 12
Average sales per establishment $.3 million
4.1 Market Segmentation

Customers and Target Markets

City Taxi's focus will be on the credit card market with target customers in the low to mid income
range in the Metropolitan San Francisco area. The target customers are motivated to use our
services over that of competitors because of the convenience and quality associated with our
services.

Customer Buying Criteria

We believe our customers choose our cab service based on the following criteria:

 Performance. We work with one goal in mind: to get customers where they want to go,
when they want to go, promptly, efficiently, comfortably, and safely.
 Superior Service. Timely pick up, private usage, and customer care.
 Quality. This involves providing courteous service in clean, well-maintained cars.
 Convenience. This involves the credit/debit card feature.

Chart: Market Analysis (Pie)

Market Analysis (Pie)

Credit Card Market

Cash Customers

Other

Table: Market Analysis

Market Analysis
1999 2000 2001 2002 2003
Potential Customers Growth CAGR
Credit Card Market 25% 200,000 250,000 312,500 390,625 488,281 25.00%
Cash Customers 10% 100,000 110,000 121,000 133,100 146,410 10.00%
Other 0% 0 0 0 0 0 0.00%
Total 20.60% 300,000 360,000 433,500 523,725 634,691 20.60%
4.2 Service Business Analysis

Market 1-Taxi Cabs

This category covers establishments engaged primarily in furnishing passenger transportation by

automobiles not operated on regular schedules or between fixed terminals. Taxi cab fleet owners
and organizations are included, regardless of whether drivers are hired, rent their cabs, or are
otherwise compensated.

Industry Snapshot

In 1990, U.S. consumers spent an estimated $3.17 billion on taxis. That year, approximately
32,600 were employed in the industry as owners, managers, drivers, dispatchers, or mechanics.
Since the mid- 1970's, when a trend toward independent contracting among drivers developed,
three out of every four drivers became independent contractors licensed through, and renting their
vehicles from, the taxi companies. Overall, the U.S. taxi industry consisted of 205,300 vehicles in
1993. Of these, 170,800 were licensed taxis and 16,600 were hired cars, also referred to as
executive sedans or liveries. The remainder was minibuses or vans, many of which were
wheelchair-accessible for transporting the elderly and disabled.

Organization and Structure

Most taxi companies followed a similar organizational pattern. Managers, sometimes the company
owners' ran the business, hired drivers, and performed other administrative duties. Dispatchers
took calls and assigned cabs to passenger locations. The position of dispatcher once represented a
promotion awarded to experienced cab drivers, whose familiarity with the city best qualified them
for the job. However, the increase in computer-based dispatching in the early 1990's prompted cab
companies to favor computer skills over specialized knowledge of local geography when filing the
dispatcher position.

Regulation of the U.S. taxi industry varied from city to city. While almost all cities had some form
of licensing requirements, larger urban areas had the strictest regulations. San Francisco
regulations focused on fares charged to customers, with rates assigned to designated zones of the
city.

Current Conditions

In 1998, 6,342 taxi fleets, consisting of 144,000 cars, were operating in the United States. On a
national level, in the early 1990's, taxi's made approximately 2 billion passenger trips a year. Most
taxi fleets were small, family-owned businesses or individual partnerships; only 5% were
corporations. Almost all operated within a single municipality, and more than half of all taxi
companies had fewer than 10 vehicles. In rural areas, companies tended to be extremely small,
with 1 to 3 cars available for customers. In cities of 100,000 people, the average fleet size was 20
cars. In urban centers of 200,000 or more people, cab companies retained hundreds of cars and
carried more passengers than the multitude of smaller companies combined.

Research and Technology

Although the taxi cab industry was not regarded as demanding in a high degree of technology,
several innovations have changed the way businesses operate. Computerized dispatching--in which
cabs were tracked by computer and dispatch instructions appeared only to the cab assigned to a
call--allowed more efficient assignment of cabs to passengers. Computerization also helped remedy
the problem of "fare stealing," in which one driver intercepts a message meant for another and
picks up the first driver's fare.

Another development likely to change the industry's focus involved its use of certain radio
frequencies. In the late 1980's and early 1990's, with investment in cellular and digital
communications skyrocketing, taxi cab companies found themselves in possession of a valuable
asset in the form of the broadcast frequencies granted them by the Federal Communications
Commission. During this time, the FCC, allowing them only two frequencies in any one area,
heavily restricted the cellular telephone industry's use of the airwaves. By the mid-1990's, some
cab-related services, such as New Jersey's dispatcher Fleet Call, were in a strong position to
become players in the burgeoning telecommunications industry.

Industry Leaders

Due to increasing decentralization in the industry, few national taxi corporations were in operation
in the early 1990's. A few companies, however, many of which were owned by larger holding
corporations, had operations that reached beyond the local. Figure 1 shows the industry leaders in
the San Francisco area and their share of the market.

Figure 1  Breakdown of Market Share in San Francisco.

Company Market Share

Transportation, Inc. 38%
Capital Cab 23%
Yellow Cab 13%
Diamond Cab 8%
Others 18%
Total 100%

Market 2- Taxi top Display

Taxi top display is a market from which City Taxi can gain a substantial amount of revenue.  This
has been shown to be a viable means of advertising for a number of companies and it is used
widely.  Figure 2 shows the growth in the taxi top display market segment from 1993.

1994 1995 1996 1997 3/1998

600 1,670 2,000 3,500 5,000

4.2.1 Competition and Buying Patterns

Competitive threats come from existing taxi cab companies in the San Francisco area. Their
weaknesses are, however, that they do not have the credit/debit card payment option, and some
still use the radio dispatch system. Transportation, Inc. has computer-aided dispatch but no credit
card processing capabilities. Capital Cab, Yellow Cab, and Diamond Cab all have radio dispatch with
selected drivers accepting credit cards. However, these drivers do not offer in-car processing,
approval must be given at the home office.

Taxi Cabs. City Taxi's competitors include existing taxi cab companies that have been operating in
the San Francisco area. Specifically, competitors include:
  Transportation, Inc. is a family owned company that has been in business for 20 years. The
company, run by Mr. John Brown, is considered an industry leader in the field of taxi cab
services. The company also owns a real estate agency, and 2 insurance companies which
work hand in hand with the taxi business. They lease facilities to other cab companies as
well. The company has a fleet of 1,200 cars, with half under the driver-owner program and
the other half company owned.
 Yellow Cab was founded 25 years ago, its president is Mr. Michael White. Yellow Cab has a
fleet of 2,200 cabs, most of which are driver-owned. The company still uses the radio
dispatch system and one third of their fleet is equipped with the credit/debit card feature.
The drawback to their system is that approval for any transaction takes place in their home
office.
 Diamond Cab is owned and operated by Mr. Jay Newman. The company uses the radio
dispatch system and has a fleet of approximately 800 cabs.
 Town Cab is an organization run by Mr. Pete Whitehead. The company uses the radio
dispatch system and has a fleet of 800 cabs.

City Taxi's competitive advantage is our cutting edge technology which is unique to the taxi
industry in San Francisco. The GPS will enable City Taxi to provide timely service by giving an
accurate ETA. The credit/debit card feature will give our customers convenience and privacy during
the transaction period.

Maintenance and Repair Services. City Taxi's competitors include the above mentioned
companies and general maintenance and repair shops in the area. Some of these operations do not
have the capacity to handle a large amount of vehicles. While others may have the capacity, their
operations are run in a primitive manner, and City Taxi intends to capitalize on that.

City Taxi's competitive advantages include the availability of space, operations management, and
skilled employees.

5.0 Strategy and Implementation Summary

Sales Strategy

At City Taxi, the sales process is the same for each of City Taxi's two areas: taxi cab services and
maintenance and repair services. The company intends to establish its presence online by
developing a website from which sales will be generated. The District of Columbia Cab Commission
regulates pricing for taxi cab services.

Table: Sales Forecast

Sales Forecast
1999 2000 2001
Sales
All services $200,000 $1,500,000 $2,200,000
Other $0 $0 $0
Total Sales $200,000 $1,500,000 $2,200,000

Direct Cost of Sales 1999 2000 2001

All services $65,000 $125,000 $100,000
Other $0 $0 $0
Subtotal Direct Cost of Sales $65,000 $125,000 $100,000
Chart: Sales Monthly

Sales Monthly

$16,000

$14,000

$12,000

$10,000 All services

$8,000 Other

$6,000

$4,000

$2,000

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

5.1 Marketing Strategy

Marketing Strategy

City Taxi markets its products and services as solutions to transportation needs in the city of San
Francisco. Other target markets include customers in the low to mid income range. Direct mailings
and television advertising will be the company's main marketing channels.  These channels ensure
that target customers are reached repeatedly and effectively. The company will monitor its market
position through constant tracking by Value Pack and TCI Media, Inc.

TCI Media Services - The proposed advertising package, titled "The Championship," will yield:

 One commercial in every regular season NBA game on TNT for the 1999-2000 season
 One commercial in 2000; 1999-2000 regular season Wizard games on HTS
 900 6 a.m. - 12 a.m. commercials on a minimum of 4 networks
 Ads on the TV guide channel

5.1.1 Marketing Programs

City Taxi plans to communicate through direct mail and television advertising to generate sales.
TCI MEDIA Services and Val-Pak Direct Marketing will spearhead the marketing campaign. The key
message associated with our products and services is cleaner, efficient, flexible, and convenient
taxi cabs.

Additional Plans--The company also has additional promotional plans which are diverse and include
a range of marketing communications described below:

 Trade shows: company representatives will attend and participate in several trade shows
to keep up with changes in the industry.
  Print advertising and article publishing : the company's print advertising program will
include advertisements in local newspapers and local journal publications like the San
Francisco Magazine. City Taxi will feature articles on services provided in the above
mentioned publications.
 Val-Pak Direct Marketing: the challenge of any direct marketer is to take a massive
amount of amorphous data and create tailored messages to targeted market segments.
Perhaps no company is more familiar with that challenge than Florida-based Val-Pak Direct
Marketing, a leader in local, cooperative direct mail advertising. More than 53 million
households in the United States receive Val-Pak coupons in their mailbox. In 1997, Val-Pak
designed, printed and distributed more than 11 billion incentive coupons promoting various
products and services. Val-Pak targets as few as 10,000 households or as many as 53
million with any given mailing.

5.2 Strategic Alliances

The company has strategic alliances with King Communications, Surfside Systems, and Commercial
Electronic Services. These alliances are valuable to City Taxi because they allow the company to
get updates on technology and added tech support, and they are valuable to the ally firms because
City Taxi is a growing customer. All agreements come with a stipulation that if new technology
becomes available, City Taxi will be notified and provided with the technology to expand on current
technology, helping us maintain a competitive edge. Details of the strategic relationships that City
Taxi has are given below.

 International Taxi cab and Livery Association (ITLA). ITLA is a non-profit association
that represents the private, for-profit ground transpiration industry. City Taxi will use the
resources made available by ITLA to get the latest industry trends and trade show
information. ITLA conducts a variety of research projects on industry issues and the results
of these studies are summarized in ITLA publications and made available to association
members at a reduced fee.
 Rockwell International. Rockwell International has been brought in to help develop the
call center and aid with the development of superior customer service techniques. City Taxi
will work with Rockwell International in the setup of a cost efficient but productive call
center.
 TCI Media, Inc. Currently, City Taxi is under a verbal agreement with TCI Media, Inc. to
market its product and services through various cable networks.
 Surfside Systems. Surfside Systems will be the company's supplier of dispatch software
and CAD software.
 King Communications. King Communications will be the company's supplier of mobile
data and in-car credit/debit card processing equipment hardware. King Communications has
made a commitment and guarantee that they will provide interface to Surfside Systems.
 Transportation, Inc. This alliance is a business relationship between Jerry Schafer
(Transportation, Inc.) and Johnson Taylor (City Taxi). Transportation, Inc. is a competitor,
but the relationship allows City Taxi to learn from their 20-year experience in the business
and to overcome the shortfalls they have experienced.
 Barwood, Inc. Barwood will be the company's source of used taxis when the need to add
to our fleet arises.
 Val-Pak Direct Marketing. Val-Pak is a full-service marketing company that offers a
simple, cost-effective way of increasing business. Val-Pak pioneered local cooperative direct
mail in 1968, and has been the industry leader for over 30 years. The relationship gives us
access to their powerful, cost effective variety of advertising formats allowing us to develop
a direct mail program that is right for our business.
 Commercial Electronics Services (CES). CES is a supplier of advanced technology
systems used in taxi cabs. The relationship will allow City Taxi to get the latest technology
and the benefit of their excellent tech support. All systems are connected to their offices
 and given a serial number, that way, they are able to locate the system, evaluate the
problem, and fix it right away.
 Mighty Cab Body Shop. The owner of Mighty Cab also owns a body shop. City Taxi will
seek to establish a relationship with it for body work and towing services.

6.0 Management Summary

Organization

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

The City Taxi team is organized into two groups:

Taxi Cabs. The taxi cabs division will consist of the fleet of taxis, driver owned and company
owned, the call center, and administration.  Overall, City Taxi will have approximately 20
employees in this division. The management of all daily operations within City Taxi will be handled
in this division.  Mr. Taylor, the CEO, will be responsible for the purchase of vehicles and dealing
with vendors and suppliers. There will be 10 to 20 employees in the call center, three supervisors,
three dispatchers, an office manager, a data entry clerk, and an employee responsible for accounts
receivables/payables.

1. Maintenance and Repair Services.  This division will deal with the maintenance of
vehicles.  Drivers will be charged at discounted rates for tune-ups, wheel alignments, and
other repairs.  This division will be staffed with seven employees to begin with.

Officers and Key Employees

City Taxi's management is highly experienced and qualified.  Key members of City Taxi's
management teams, their backgrounds, and responsibilities are as follows.

 Mr. Johnson Taylor, President and CEO.

 Mr. Peter Jackson, Senior Vice President - Operations.
 Ms. Glenda Jones, Call Center Supervisor.

Table: Personnel

Personnel Plan
1999 2000 2001
Taxi Cabs & Administrative $108,696 $365,217 $395,652
Maintenance & Repair $108,695 $156,522 $169,565
Total People 8 17 20

Total Payroll $217,391 $521,739 $565,217

7.0 Financial Plan

The company is seeking $2.5 million of financing to fund the acquisition of Mighty Cab Association
and its initial operations. This funding will cover the purchase of Mighty Cab, marketing, purchase
of extra vehicles, software, and hardware.
7.1 Important Assumptions

The table below shows the key assumptions for City Taxi.

Table: General Assumptions

General Assumptions
1999 2000 2001
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 25.42% 25.00% 25.42%
Other 0 0 0
7.2 Break-even Analysis

City Taxi's Break-even Analysis indicates that the firm has a strong balance of costs and sales. The
company estimates a monthly break-even sales volume of approximately $43,000, which will be
reached by Fiscal Year (FY) 2000.

Chart: Break-even Analysis

Break-even Analysis

$20,000

$15,000

$10,000

$5,000

$0

($5,000)

($10,000)

($15,000)

($20,000)

($25,000)

$0 $14,000 $28,000 $42,000 $56,000 $70,000

$7,000 $21,000 $35,000 $49,000 $63,000 $77,000

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $43,333

Assumptions:
Average Percent Variable Cost 32%
Estimated Monthly Fixed Cost $29,250
7.3 Projected Profit and Loss

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

Table: Profit and Loss

Pro Forma Profit and Loss

1999 2000 2001
Sales $200,000 $1,500,000 $2,200,000
Direct Cost of Sales $65,000 $125,000 $100,000
Other $5,000 $10,000 $15,000
Total Cost of Sales $70,000 $135,000 $115,000

Gross Margin $130,000 $1,365,000 $2,085,000

Gross Margin % 65.00% 91.00% 94.77%

Expenses
Payroll $217,391 $521,739 $565,217
Sales and Marketing and Other Expenses $64,000 $164,000 $214,000
Depreciation $14,997 $17,500 $17,500
Research & Development $15,000 $25,000 $40,000
Utilities $2,000 $2,000 $2,000
Insurance $5,000 $5,000 $5,000
Payroll Taxes $32,609 $78,261 $84,783
Other $0 $0 $0

Total Operating Expenses $350,997 $813,500 $928,500

Profit Before Interest and Taxes ($220,997) $551,500 $1,156,500

EBITDA ($206,000) $569,000 $1,174,000
Interest Expense $3,337 $2,841 $2,084
Taxes Incurred $0 $137,165 $293,414

Net Profit ($224,334) $411,494 $861,002

Net Profit/Sales -112.17% 27.43% 39.14%
7.4 Projected Cash Flow

The table below outlines the company's cash flows for FY 1999-2001. The required $2.5 million will
be spent to acquire Mighty Cab's operations ($1.25 million), as well as to purchase additional
property ($250,000) and equipment ($200,000). An additional $500,000 will be spent on other
short-term assets.

Table: Cash Flow

Pro Forma Cash Flow

1999 2000 2001
Cash Received

Cash from Operations

Cash Sales $200,000 $1,500,000 $2,200,000
Subtotal Cash from Operations $200,000 $1,500,000 $2,200,000

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 $2,500,000 $0 $0
Subtotal Cash Received $2,700,000 $1,500,000 $2,200,000

Expenditures 1999 2000 2001

Expenditures from Operations

Cash Spending $217,391 $521,739 $565,217
Bill Payments $200,095 $519,573 $739,266
Subtotal Spent on Operations $417,486 $1,041,312 $1,304,483

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $3,000 $3,000 $3,000
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $4,181 $4,951
Purchase Other Current Assets $500,000 $0 $0
Purchase Long-term Assets $1,700,000 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $2,620,486 $1,048,493 $1,312,434

Net Cash Flow $79,514 $451,507 $887,566

Cash Balance $124,514 $576,021 $1,463,587
 Feb Ma
Jan
Chart: Cash

Cash
$300,000

$270,000

$240,000

$210,000

$180,000
Net Cash Flow
$150,000
Cash Balance
$120,000

$90,000

$60,000

$30,000

$0
7.5 Projected Balance Sheet

The table below provides City Taxi's actual and projected balance sheets for 1999-2001.

Table: Balance Sheet

Pro Forma Balance Sheet

1999 2000 2001
Assets

Current Assets
Cash $124,514 $576,021 $1,463,587
Other Current Assets $513,400 $513,400 $513,400
Total Current Assets $637,914 $1,089,421 $1,976,987

Long-term Assets
Long-term Assets $1,775,000 $1,775,000 $1,775,000
Accumulated Depreciation $24,997 $42,497 $59,997
Total Long-term Assets $1,750,003 $1,732,503 $1,715,003
Total Assets $2,387,917 $2,821,924 $3,691,990

Liabilities and Capital 1999 2000 2001

Current Liabilities
Accounts Payable $15,451 $45,145 $62,160
Current Borrowing $7,000 $4,000 $1,000
Other Current Liabilities $25,400 $25,400 $25,400
Subtotal Current Liabilities $47,851 $74,545 $88,560

Long-term Liabilities $25,000 $20,819 $15,868

Total Liabilities $72,851 $95,364 $104,428

Paid-in Capital $2,537,000 $2,537,000 $2,537,000

Retained Earnings $2,400 ($221,934) $189,560
Earnings ($224,334) $411,494 $861,002
Total Capital $2,315,066 $2,726,560 $3,587,562
Total Liabilities and Capital $2,387,917 $2,821,924 $3,691,990

Net Worth $2,315,066 $2,726,560 $3,587,562

7.6 Business RatiosThe following table contains important business ratios from the taxi cab
industry, as determined by the Standard Industry Classification (SIC) Index #4121, Taxi
Cabs.Table: Ratios
Ratio Analysis
1999 2000 2001 Industry Profile
Sales Growth 100.00% 650.00% 46.67% 0.50%

Percent of Total Assets

Other Current Assets 21.50% 18.19% 13.91% 45.90%
Total Current Assets 26.71% 38.61% 53.55% 63.00%
Long-term Assets 73.29% 61.39% 46.45% 37.00%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 2.00% 2.64% 2.40% 29.10%

Long-term Liabilities 1.05% 0.74% 0.43% 27.00%
Total Liabilities 3.05% 3.38% 2.83% 56.10%
Net Worth 96.95% 96.62% 97.17% 43.90%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 65.00% 91.00% 94.77% 82.50%
Selling, General & Administrative Expenses 177.25% 63.59% 55.44% 58.00%
Advertising Expenses 25.00% 10.00% 9.09% 1.00%
Profit Before Interest and Taxes -110.50% 36.77% 52.57% 2.60%

Main Ratios
Current 13.33 14.61 22.32 1.58
Quick 13.33 14.61 22.32 1.22
Total Debt to Total Assets 3.05% 3.38% 2.83% 56.10%
Pre-tax Return on Net Worth -9.69% 20.12% 32.18% 3.60%
Pre-tax Return on Assets -9.39% 19.44% 31.27% 8.10%

Additional Ratios 1999 2000 2001

Net Profit Margin -112.17% 27.43% 39.14% n.a
Return on Equity -9.69% 15.09% 24.00% n.a

Activity Ratios
Accounts Payable Turnover 12.42 12.17 12.17 n.a
Payment Days 31 20 26 n.a
Total Asset Turnover 0.08 0.53 0.60 n.a

Debt Ratios
Debt to Net Worth 0.03 0.03 0.03 n.a
Current Liab. to Liab. 0.66 0.78 0.85 n.a

Liquidity Ratios
Net Working Capital $590,063 $1,014,876 $1,888,427 n.a
Interest Coverage -66.22 194.13 554.85 n.a

Additional Ratios
Assets to Sales 11.94 1.88 1.68 n.a
Current Debt/Total Assets 2% 3% 2% n.a
Acid Test 13.33 14.61 22.32 n.a
Sales/Net Worth 0.09 0.55 0.61 n.a
Dividend Payout 0.00 0.00 0.00 n.a
 Table: Sales Forecast

Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
All services 0% $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
All services $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of
$5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417
Sales

Table: Personnel

Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Taxi Cabs & Administrative 0% $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058
Maintenance & Repair 0% $9,057 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058
Total People 8 8 8 8 8 8 8 8 8 8 8 8

Total Payroll $18,115 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116

Table: General Assumptions

General Assumptions
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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
10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Rate
Tax Rate 30.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%

Other 0 0 0 0 0 0 0 0 0 0 0 0
 Table: Profit and Loss

Pro Forma Profit

and Loss
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667
Direct Cost of Sales $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417
Other $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417
Total Cost of Sales $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833

Gross Margin $10,833 $10,833 $10,833 $10,833 $10,833 $10,833 $10,833 $10,833 $10,833 $10,833 $10,833 $10,833
Gross Margin % 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00%

Expenses
Payroll $18,115 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116
Sales and Marketing
$5,333 $5,333 $5,333 $5,333 $5,333 $5,333 $5,333 $5,333 $5,333 $5,333 $5,333 $5,333
and Other Expenses
Depreciation $625 $625 $625 $1,458 $1,458 $1,458 $1,458 $1,458 $1,458 $1,458 $1,458 $1,458
Research &
$1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Development
Utilities $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167
Insurance $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417
Payroll Taxes 15% $2,717 $2,717 $2,717 $2,717 $2,717 $2,717 $2,717 $2,717 $2,717 $2,717 $2,717 $2,717
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Operating
$28,624 $28,625 $28,625 $29,458 $29,458 $29,458 $29,458 $29,458 $29,458 $29,458 $29,458 $29,458
Expenses

Profit Before Interest

($17,791) ($17,792) ($17,792) ($18,625) ($18,625) ($18,625) ($18,625) ($18,625) ($18,625) ($18,625) ($18,625) ($18,625)
and Taxes
EBITDA ($17,166) ($17,167) ($17,167) ($17,167) ($17,167) ($17,167) ($17,167) ($17,167) ($17,167) ($17,167) ($17,167) ($17,167)
Interest Expense $290 $288 $285 $283 $281 $279 $277 $275 $273 $271 $269 $267
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit ($18,080) ($18,079) ($18,077) ($18,908) ($18,906) ($18,904) ($18,902) ($18,900) ($18,898) ($18,896) ($18,893) ($18,891)

Net Profit/Sales -108.48% -108.48% -108.46% -113.45% -113.44% -113.42% -113.41% -113.40% -113.39% -113.37% -113.36% -113.35%
 Table: Cash Flow

Pro Forma Cash Flow

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash Received

Cash from Operations

Cash Sales $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667
Subtotal Cash from
$16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667
Operations

Additional Cash
Received
Sales Tax, VAT,
0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
HST/GST Received
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
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Sales of Other Current
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Sales of Long-term
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
New Investment
$0 $0 $2,500,000 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received
Subtotal Cash
$16,667 $16,667 $2,516,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667
Received

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

Expenditures from
Operations
Cash Spending $18,115 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116
Bill Payments $24,134 $16,007 $16,005 $16,003 $16,001 $15,999 $15,996 $15,994 $15,992 $15,990 $15,988 $15,986
Subtotal Spent on
$42,249 $34,123 $34,121 $34,119 $34,117 $34,115 $34,112 $34,110 $34,108 $34,106 $34,104 $34,102
Operations

Additional Cash Spent

Sales Tax, VAT,
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
HST/GST Paid Out
Principal Repayment of
$250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Current Borrowing
Other Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment
Long-term Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment
Purchase Other
$0 $0 $500,000 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Assets
Purchase Long-term
$0 $0 $1,700,000 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $42,499 $34,373 $2,234,371 $34,369 $34,367 $34,365 $34,362 $34,360 $34,358 $34,356 $34,354 $34,352

Net Cash Flow ($25,832) ($17,706) $282,296 ($17,702) ($17,700) ($17,698) ($17,696) ($17,694) ($17,692) ($17,690) ($17,687) ($17,685)

Cash Balance $19,168 $1,462 $283,758 $266,056 $248,356 $230,658 $212,962 $195,268 $177,577 $159,887 $142,200 $124,514
 Table: Balance Sheet

Pro Forma
Balance Sheet
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Starting
Assets
Balances

Current Assets
Cash $45,000 $19,168 $1,462 $283,758 $266,056 $248,356 $230,658 $212,962 $195,268 $177,577 $159,887 $142,200 $124,514
Other Current
$13,400 $13,400 $13,400 $513,400 $513,400 $513,400 $513,400 $513,400 $513,400 $513,400 $513,400 $513,400 $513,400
Assets
Total Current
$58,400 $32,568 $14,862 $797,158 $779,456 $761,756 $744,058 $726,362 $708,668 $690,977 $673,287 $655,600 $637,914
Assets

Long-term Assets
Long-term Assets $75,000 $75,000 $75,000 $1,775,000 $1,775,000 $1,775,000 $1,775,000 $1,775,000 $1,775,000 $1,775,000 $1,775,000 $1,775,000 $1,775,000
Accumulated
$10,000 $10,625 $11,250 $11,875 $13,333 $14,791 $16,249 $17,707 $19,165 $20,623 $22,081 $23,539 $24,997
Depreciation
Total Long-term
$65,000 $64,375 $63,750 $1,763,125 $1,761,667 $1,760,209 $1,758,751 $1,757,293 $1,755,835 $1,754,377 $1,752,919 $1,751,461 $1,750,003
Assets
Total Assets $123,400 $96,943 $78,612 $2,560,283 $2,541,123 $2,521,965 $2,502,809 $2,483,655 $2,464,503 $2,445,354 $2,426,206 $2,407,061 $2,387,917

Liabilities and
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Capital

Current Liabilities
Accounts Payable $23,600 $15,473 $15,471 $15,469 $15,467 $15,465 $15,463 $15,461 $15,459 $15,457 $15,455 $15,453 $15,451
Current Borrowing $10,000 $9,750 $9,500 $9,250 $9,000 $8,750 $8,500 $8,250 $8,000 $7,750 $7,500 $7,250 $7,000
Other Current
$25,400 $25,400 $25,400 $25,400 $25,400 $25,400 $25,400 $25,400 $25,400 $25,400 $25,400 $25,400 $25,400
Liabilities
Subtotal Current
$59,000 $50,623 $50,371 $50,119 $49,867 $49,615 $49,363 $49,111 $48,859 $48,607 $48,355 $48,103 $47,851
Liabilities

Long-term
$25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Liabilities
Total Liabilities $84,000 $75,623 $75,371 $75,119 $74,867 $74,615 $74,363 $74,111 $73,859 $73,607 $73,355 $73,103 $72,851

Paid-in Capital $37,000 $37,000 $37,000 $2,537,000 $2,537,000 $2,537,000 $2,537,000 $2,537,000 $2,537,000 $2,537,000 $2,537,000 $2,537,000 $2,537,000
Retained Earnings $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400
Earnings $0 ($18,080) ($36,159) ($54,237) ($73,145) ($92,051) ($110,954) ($129,856) ($148,756) ($167,654) ($186,549) ($205,443) ($224,334)
Total Capital $39,400 $21,320 $3,241 $2,485,163 $2,466,255 $2,447,349 $2,428,446 $2,409,544 $2,390,644 $2,371,746 $2,352,851 $2,333,957 $2,315,066
Total Liabilities
$123,400 $96,943 $78,612 $2,560,283 $2,541,123 $2,521,965 $2,502,809 $2,483,655 $2,464,503 $2,445,354 $2,426,206 $2,407,061 $2,387,917
and Capital

Net Worth $39,400 $21,320 $3,241 $2,485,163 $2,466,255 $2,447,349 $2,428,446 $2,409,544 $2,390,644 $2,371,746 $2,352,851 $2,333,957 $2,315,066