Legal Page

Confidentiality Agreement

The undersigned reader acknowledges that the information provided by

_________________________ in this business plan is confidential; therefore, reader agrees not to
disclose it without the express written permission of _________________________.

It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means
and that any disclosure or use of same by reader, may cause serious harm or damage to
_________________________.

Upon request, this document is to be immediately returned to _________________________.

___________________
Signature

___________________
Name (typed or printed)

___________________
Date

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

 Table of Contents

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

Chart: Highlights .......................................................................................................................... 1
1.1 Mission .......................................................................................................................................... 1
1.2 Keys to Success ........................................................................................................................ 2
2.0 Company Summary ..................................................................................................................... 2
2.1 Company Ownership ............................................................................................................... 2
2.2 Company History ...................................................................................................................... 2
Table: Past Performance ........................................................................................................... 3
Chart: Past Performance ........................................................................................................... 4
3.0 Services ............................................................................................................................................ 4
4.0 Market Analysis Summary ........................................................................................................ 5
4.1 Market Segmentation ............................................................................................................. 5
Table: Market Analysis ............................................................................................................... 5
Chart: Market Analysis (Pie) .................................................................................................... 6
5.0 Strategy and Implementation Summary ............................................................................ 6
5.1 Sales Forecast ........................................................................................................................... 7
Table: Sales Forecast ................................................................................................................. 7
Chart: Sales Monthly .................................................................................................................. 7
Chart: Sales by Year ................................................................................................................... 8
6.0 Management Summary .............................................................................................................. 8
6.1 Personnel Plan ........................................................................................................................... 8
Table: Personnel ........................................................................................................................... 8
7.0 Financial Plan ................................................................................................................................. 9
7.1 Break-even Analysis ................................................................................................................ 9
Chart: Break-even Analysis ..................................................................................................... 9
Table: Break-even Analysis...................................................................................................... 9
7.2 Projected Profit and Loss ..................................................................................................... 10
Table: Profit and Loss ............................................................................................................... 10
Chart: Profit Monthly ................................................................................................................ 11
Chart: Profit Yearly .................................................................................................................... 11
Chart: Gross Margin Monthly................................................................................................. 12
Chart: Gross Margin Yearly .................................................................................................... 12
7.3 Projected Cash Flow .............................................................................................................. 13
Chart: Cash .................................................................................................................................. 13
Table: Cash Flow ........................................................................................................................ 14
7.4 Projected Balance Sheet ...................................................................................................... 15
7.4 Projected Balance Sheet ...................................................................................................... 15
Table: Balance Sheet ................................................................................................................ 15
7.5 Business Ratios ....................................................................................................................... 15
7.5 Business Ratios ....................................................................................................................... 15
Table: Ratios ................................................................................................................................ 16
Table: Sales Forecast ......................................................................................................................... 1
Table: Personnel ................................................................................................................................... 2
Table: Personnel ................................................................................................................................... 2

Page 1
 Table of Contents

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 .......................................................................................................................... 6
Table: Balance Sheet .......................................................................................................................... 6

Page 2
 Valley Airporter

1.0 Executive Summary

This year Valley Airporter plans to transport over 20,000 passengers. To accommodate those
passengers, we plan to purchase three brand new 20-passenger buses to replace older 14-
passenger buses.

The new buses are needed because of the expansion of airport service. The schedule has
continually expanded over the years from three times a day, Monday through Friday only,
to ten trips each weekday and nine trips on Saturday and Sunday, 365 days per year.

Valley Airporter operates out of Corvallis which is home to Oregon State University. Over
18,000 thousand students attend the university. In addition, there are over 120 high-tech
businesses in Corvallis. Though there is a small airport in Corvallis and a regional airport in
Eugene (50 miles south of Corvallis), most travelers prefer to use the Portland International
Airport, which is 70 miles north of Corvallis.

Bob and Mary Wilson, co-owners of Valley Airporter, will invest in the purchase of the new
vans. The owners will also secure a long-term commercial loan.

Chart: Highlights

1.1 Mission

The mission of Valley Airporter has been to assure safety, convenience and comfort to every
customer.

Page 1
 Valley Airporter

1.2 Keys to Success

• Valley Airporter's chauffeurs are experienced, professional, commercially certified drivers.

• The office staff is professional, friendly and helpful going above the call of duty for
customers.

• Valley Airporter is a caring company that continually donates time and services to
community schools and other organizations.

2.0 Company Summary

Valley Airporter is a successful airport shuttle service that transports passengers between the
Portland International Airport and Corvallis. Valley Airporter has office space in the Clairmont
Inn, as well as long-term parking for customers.

2.1 Company Ownership

Bob and Mary Wilson are co-owners of Valley Airporter.

2.2 Company History

In April 1998, three 14-passenger vans were converted to 11-passenger vans with rear luggage
area and Valley Airporter began. Valley Airporter plans to travel over 2,000 miles per day,
transporting over 20,000 passengers.

To accommodate those passengers, we plan to purchase three brand new 20-passenger

replacement buses. All buses are equipped with seat belts and high back reclinable seats for
comfort and safety. The schedule has continually expanded over the years from three times a
day weekdays only, to ten trips each weekday and nine trips on Saturday and Sunday, 365
days per year.

Page 2
 Valley Airporter

Table: Past Performance

Past Performance
1999 2000 2001
Sales $138,600 $200,000 $290,000
Gross Margin $30,000 $40,000 $60,000
Gross Margin % 21.65% 20.00% 20.69%
Operating Expenses $75,000 $90,000 $120,000

Balance Sheet
1999 2000 2001

Current Assets
Cash $20,000 $30,000 $50,000
Other Current Assets $0 $0 $0
Total Current Assets $20,000 $30,000 $50,000

Long-term Assets
Long-term Assets $60,000 $60,000 $130,000
Accumulated Depreciation $8,000 $16,000 $24,000
Total Long-term Assets $52,000 $44,000 $106,000

Total Assets $72,000 $74,000 $156,000

Current Liabilities
Accounts Payable $10,000 $14,000 $16,000
Current Borrowing $0 $0 $0
Other Current Liabilities (interest free) $0 $0 $0
Total Current Liabilities $10,000 $14,000 $16,000

Long-term Liabilities $20,000 $10,000 $80,000

Total Liabilities $30,000 $24,000 $96,000

Paid-in Capital $0 $0 $0
Retained Earnings $33,000 $38,400 $45,500
Earnings $9,000 $11,600 $14,500
Total Capital $42,000 $50,000 $60,000

Total Capital and Liabilities $72,000 $74,000 $156,000

Other Inputs
Payment Days 0 0 0

Page 3
 Valley Airporter

Chart: Past Performance

3.0 Services

Valley Airporter provides airport shuttle between Corvallis and Portland International Airport.
The shuttle makes ten trips Monday through Friday and nine trips on Saturday and Sunday, 365
days per year.

Departure Times To Portland International Airport:

• 3:00 a.m. (Monday to Friday only)

• 4:30 a.m.
• 6:30 a.m.
• 8:30 a.m.
• 10:30 a.m.
• 12:30 p.m.
• 2:30 p.m.
• 4:30 p.m.
• 6:30 p.m.
• 8:30 p.m.

Departure Times To Corvallis from the Portland International Airport:

• 5:05 a.m.
• 9:00 a.m.
• 11:00 a.m.
• 1:00 p.m.
• 3:00 p.m.
• 5:00 p.m.
• 7:00 p.m.
• 9:00 p.m.
• 11:10 p.m.
Page 4
 Valley Airporter

Fares: One way Round trip

Adult (17-54) $40 $70
Senior (55+) $36 $70
Youth 13-16 without adult $36 $70
Youth 13-16 (limit 2 per adult) $10 $20
Child 12 and under (limit 2 per adult) Free Free
2 or more round trips n/a $66 per round trip

4.0 Market Analysis Summary

There are a number of environmental factors that create an increasing demand for shuttle
services between Corvallis and Portland International Airport.

• The city of Portland has the states only international airport. The regional airport in Eugene
(50 miles south of Corvallis) has flights to Portland but those flights cost more than the
shuttle service from Corvallis.

• The city of Corvallis has experienced tremendous growth during the past three years.
Enrollment at Oregon State University is up 20%. More importantly, the city is home to a
number of high-tech businesses that serve an international market.

• The cost of long-term parking has gone up 20% at Portland International Airport. The cost
is now 10$ a day.

4.1 Market Segmentation

Valley Airporter will focus on two significant customer groups:

• University students, staff, faculty, and university visitors.

• Employees of high-tech companies.

Table: Market Analysis

Market Analysis
2002 2003 2004 2005 2006
Potential Customers Growth CAGR
University 15% 18,000 20,700 23,805 27,376 31,482 15.00%
High Tech 10% 10,000 11,000 12,100 13,310 14,641 10.00%
Total 13.29% 28,000 31,700 35,905 40,686 46,123 13.29%

Page 5
 Valley Airporter

Chart: Market Analysis (Pie)

5.0 Strategy and Implementation Summary

Valley Airporter has developed a strong customer support base at Oregon State University and
numerous high-tech companies in Corvallis. The expansion of services is in response to the
growing demand by these repeat customers for additional shuttle times and greater capacity of
buses.

To facilitate increased sales at Oregon State University, the shuttle will pick up and deliver
customers in front of the university's bookstore on campus.

To increase ridership with high-tech companies, Valley Airporter will offer the round-trip fare
package of $60 when a company purchases 10 or more round-trip tickets in advance.

Page 6
 Valley Airporter

5.1 Sales Forecast

The following is the sales forecast for three years.

Table: Sales Forecast

Sales Forecast
2002 2003 2004
Sales
Shuttle Tickets $550,000 $595,000 $650,000
Other $0 $0 $0
Total Sales $550,000 $595,000 $650,000

Direct Cost of Sales 2002 2003 2004

Shuttle Tickets $67,000 $73,000 $78,000
Other $0 $0 $0
Subtotal Direct Cost of Sales $67,000 $73,000 $78,000

Chart: Sales Monthly

Page 7
 Valley Airporter

Chart: Sales by Year

6.0 Management Summary

Bob and Mary Wilson, co-owners of Valley Airporter, both perform management duties. Mary is
the office manager and bookkeeper. She supervises the office staff and oversees the customer
service. Bob supervises and schedules the shuttle drivers and is responsible for vehicle repair
and maintenance.

6.1 Personnel Plan

The staff for Valley Airporter is as follows:

• Office manager
• Shuttle manager
• Full-time drivers (3)
• Part-time drivers (2)
• Office staff (2)

Table: Personnel

Personnel Plan
2002 2003 2004
Bob Wilson $30,000 $32,000 $34,000
Mary Wilson $30,000 $32,000 $34,000
Drivers $192,000 $200,000 $210,000
Office Staff/Sales $36,000 $38,000 $40,000
Total People 9 9 9

Total Payroll $288,000 $302,000 $318,000

Page 8
 Valley Airporter

7.0 Financial Plan

The following is the Financial Plan for Valley Airporter.

7.1 Break-even Analysis

The following table and chart show the break-even analysis for Valley Airporter.

Chart: Break-even Analysis

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $41,161

Assumptions:
Average Percent Variable Cost 12%
Estimated Monthly Fixed Cost $36,147

Page 9
 Valley Airporter

7.2 Projected Profit and Loss

The following table and charts are the projected profit and loss for three years.

Table: Profit and Loss

Pro Forma Profit and Loss

2002 2003 2004
Sales $550,000 $595,000 $650,000
Direct Cost of Sales $67,000 $73,000 $78,000
Other Production Expenses $0 $0 $0
Total Cost of Sales $67,000 $73,000 $78,000

Gross Margin $483,000 $522,000 $572,000

Gross Margin % 87.82% 87.73% 88.00%

Expenses
Payroll $288,000 $302,000 $318,000
Sales and Marketing and Other Expenses $24,000 $27,000 $30,000
Depreciation $18,564 $18,564 $18,564
Leased Equipment $0 $0 $0
Utilities $0 $0 $0
Insurance $12,000 $12,000 $12,000
Rent $48,000 $48,000 $48,000
Payroll Taxes $43,200 $45,300 $47,700
Other $0 $0 $0

Total Operating Expenses $433,764 $452,864 $474,264

Profit Before Interest and Taxes $49,236 $69,136 $97,736

EBITDA $67,800 $87,700 $116,300
Interest Expense $7,090 $6,680 $7,400
Taxes Incurred $12,644 $18,737 $27,101

Net Profit $29,502 $43,719 $63,235

Net Profit/Sales 5.36% 7.35% 9.73%

Page 10
 Valley Airporter

Chart: Profit Monthly

Chart: Profit Yearly

Page 11
 Valley Airporter

Chart: Gross Margin Monthly

Chart: Gross Margin Yearly

Page 12
 Valley Airporter

7.3 Projected Cash Flow

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

Chart: Cash

Page 13
 Valley Airporter

Table: Cash Flow

Pro Forma Cash Flow

2002 2003 2004
Cash Received

Cash from Operations

Cash Sales $550,000 $595,000 $650,000
Subtotal Cash from Operations $550,000 $595,000 $650,000

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $24,000 $24,000 $24,000
New Long-term Liabilities $0 $24,000 $24,000
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 $574,000 $643,000 $698,000

Expenditures 2002 2003 2004

Expenditures from Operations

Cash Spending $288,000 $302,000 $318,000
Bill Payments $211,253 $230,434 $248,599
Subtotal Spent on Operations $499,253 $532,434 $566,599

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 $16,800 $16,800 $16,800
Purchase Other Current Assets $24,000 $24,000 $24,000
Purchase Long-term Assets $24,000 $24,000 $24,000
Dividends $0 $0 $0
Subtotal Cash Spent $564,053 $597,234 $631,399

Net Cash Flow $9,947 $45,766 $66,601

Cash Balance $59,947 $105,712 $172,313

Page 14
 Valley Airporter

7.4 Projected Balance Sheet

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

Table: Balance Sheet

Pro Forma Balance Sheet

2002 2003 2004
Assets

Current Assets
Cash $59,947 $105,712 $172,313
Other Current Assets $24,000 $48,000 $72,000
Total Current Assets $83,947 $153,712 $244,313

Long-term Assets
Long-term Assets $154,000 $178,000 $202,000
Accumulated Depreciation $42,564 $61,128 $79,692
Total Long-term Assets $111,436 $116,872 $122,308
Total Assets $195,383 $270,584 $366,621

Liabilities and Capital 2002 2003 2004

Current Liabilities
Accounts Payable $18,680 $18,963 $20,564
Current Borrowing $0 $0 $0
Other Current Liabilities $24,000 $48,000 $72,000
Subtotal Current Liabilities $42,680 $66,963 $92,564

Long-term Liabilities $63,200 $70,400 $77,600

Total Liabilities $105,880 $137,363 $170,164

Paid-in Capital $0 $0 $0
Retained Earnings $60,000 $89,502 $133,221
Earnings $29,502 $43,719 $63,235
Total Capital $89,502 $133,221 $196,457
Total Liabilities and Capital $195,383 $270,584 $366,621

Net Worth $89,502 $133,221 $196,457

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) code 4119, Local Passenger Transportation, are shown
for comparison.

Page 15
 Valley Airporter

Table: Ratios

Ratio Analysis
2002 2003 2004 Industry Profile
Sales Growth 89.66% 8.18% 9.24% 3.70%

Percent of Total Assets

Other Current Assets 12.28% 17.74% 19.64% 47.00%
Total Current Assets 42.97% 56.81% 66.64% 64.90%
Long-term Assets 57.03% 43.19% 33.36% 35.10%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 21.84% 24.75% 25.25% 30.00%

Long-term Liabilities 32.35% 26.02% 21.17% 26.20%
Total Liabilities 54.19% 50.77% 46.41% 56.20%
Net Worth 45.81% 49.23% 53.59% 43.80%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 87.82% 87.73% 88.00% 78.20%
Selling, General & Administrative Expenses 82.45% 80.38% 78.27% 55.40%
Advertising Expenses 1.09% 1.34% 1.54% 0.70%
Profit Before Interest and Taxes 8.95% 11.62% 15.04% 2.10%

Main Ratios
Current 1.97 2.30 2.64 1.96
Quick 1.97 2.30 2.64 1.51
Total Debt to Total Assets 54.19% 50.77% 46.41% 56.20%
Pre-tax Return on Net Worth 47.09% 46.88% 45.98% 3.50%
Pre-tax Return on Assets 21.57% 23.08% 24.64% 8.10%

Additional Ratios 2002 2003 2004

Net Profit Margin 5.36% 7.35% 9.73% n.a
Return on Equity 32.96% 32.82% 32.19% n.a

Activity Ratios
Accounts Payable Turnover 11.45 12.17 12.17 n.a
Payment Days 29 30 29 n.a
Total Asset Turnover 2.81 2.20 1.77 n.a

Debt Ratios
Debt to Net Worth 1.18 1.03 0.87 n.a
Current Liab. to Liab. 0.40 0.49 0.54 n.a

Liquidity Ratios
Net Working Capital $41,266 $86,749 $151,749 n.a
Interest Coverage 6.94 10.35 13.21 n.a

Additional Ratios
Assets to Sales 0.36 0.45 0.56 n.a
Current Debt/Total Assets 22% 25% 25% n.a
Acid Test 1.97 2.30 2.64 n.a
Sales/Net Worth 6.15 4.47 3.31 n.a
Dividend Payout 0.00 0.00 0.00 n.a

Page 16
 Appendix

Table: Sales Forecast

Sales Forecast

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Shuttle Tickets 0% $40,000 $40,000 $45,000 $45,000 $50,000 $50,000 $50,000 $40,000 $50,000 $40,000 $50,000 $50,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $40,000 $40,000 $45,000 $45,000 $50,000 $50,000 $50,000 $40,000 $50,000 $40,000 $50,000 $50,000

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Shuttle Tickets $0 $5,000 $6,000 $6,000 $7,000 $7,000 $7,000 $6,000 $6,000 $5,000 $6,000 $6,000
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Direct Cost of Sales $0 $5,000 $6,000 $6,000 $7,000 $7,000 $7,000 $6,000 $6,000 $5,000 $6,000 $6,000

Page 1
 Appendix

Table: Personnel

Personnel Plan

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Bob Wilson 0% $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Mary Wilson 0% $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Drivers 0% $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 $16,000
Office Staff/Sales 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
Total People 9 9 9 9 9 9 9 9 9 9 9 9

Total Payroll $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000

Page 2
 Appendix

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 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

Page 3
 Appendix

Table: Profit and Loss

Pro Forma Profit and Loss

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $40,000 $40,000 $45,000 $45,000 $50,000 $50,000 $50,000 $40,000 $50,000 $40,000 $50,000 $50,000
Direct Cost of Sales $0 $5,000 $6,000 $6,000 $7,000 $7,000 $7,000 $6,000 $6,000 $5,000 $6,000 $6,000
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $5,000 $6,000 $6,000 $7,000 $7,000 $7,000 $6,000 $6,000 $5,000 $6,000 $6,000

Gross Margin $40,000 $35,000 $39,000 $39,000 $43,000 $43,000 $43,000 $34,000 $44,000 $35,000 $44,000 $44,000
Gross Margin % 100.00% 87.50% 86.67% 86.67% 86.00% 86.00% 86.00% 85.00% 88.00% 87.50% 88.00% 88.00%

Expenses
Payroll $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000
Sales and Marketing and Other
$2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Expenses
Depreciation $1,547 $1,547 $1,547 $1,547 $1,547 $1,547 $1,547 $1,547 $1,547 $1,547 $1,547 $1,547
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Insurance $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Rent $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Payroll Taxes 15% $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Operating Expenses $36,147 $36,147 $36,147 $36,147 $36,147 $36,147 $36,147 $36,147 $36,147 $36,147 $36,147 $36,147

Profit Before Interest and Taxes $3,853 ($1,147) $2,853 $2,853 $6,853 $6,853 $6,853 ($2,147) $7,853 ($1,147) $7,853 $7,853
EBITDA $5,400 $400 $4,400 $4,400 $8,400 $8,400 $8,400 ($600) $9,400 $400 $9,400 $9,400
Interest Expense $655 $643 $632 $620 $608 $597 $585 $573 $562 $550 $538 $527
Taxes Incurred $959 ($537) $666 $670 $1,873 $1,877 $1,880 ($816) $2,187 ($509) $2,194 $2,198

Net Profit $2,239 ($1,253) $1,555 $1,563 $4,371 $4,379 $4,388 ($1,904) $5,104 ($1,188) $5,120 $5,128

Net Profit/Sales 5.60% -3.13% 3.46% 3.47% 8.74% 8.76% 8.78% -4.76% 10.21% -2.97% 10.24% 10.26%

Page 4
 Appendix

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 $40,000 $40,000 $45,000 $45,000 $50,000 $50,000 $50,000 $40,000 $50,000 $40,000 $50,000 $50,000
Subtotal Cash from Operations $40,000 $40,000 $45,000 $45,000 $50,000 $50,000 $50,000 $40,000 $50,000 $40,000 $50,000 $50,000

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) $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
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 $42,000 $42,000 $47,000 $47,000 $52,000 $52,000 $52,000 $42,000 $52,000 $42,000 $52,000 $52,000

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

Expenditures from Operations

Cash Spending $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000
Bill Payments $16,407 $12,331 $15,779 $17,898 $17,963 $20,081 $20,073 $19,942 $16,457 $19,225 $15,764 $19,332
Subtotal Spent on Operations $40,407 $36,331 $39,779 $41,898 $41,963 $44,081 $44,073 $43,942 $40,457 $43,225 $39,764 $43,332

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400
Purchase Other Current Assets $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Purchase Long-term Assets $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $45,807 $41,731 $45,179 $47,298 $47,363 $49,481 $49,473 $49,342 $45,857 $48,625 $45,164 $48,732

Net Cash Flow ($3,807) $269 $1,821 ($298) $4,637 $2,519 $2,527 ($7,342) $6,143 ($6,625) $6,836 $3,268
Cash Balance $46,193 $46,462 $48,283 $47,985 $52,622 $55,141 $57,667 $50,325 $56,468 $49,843 $56,679 $59,947

Page 5
 Appendix

Table: Balance Sheet

Pro Forma Balance Sheet

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets Starting Balances

Current Assets
Cash $50,000 $46,193 $46,462 $48,283 $47,985 $52,622 $55,141 $57,667 $50,325 $56,468 $49,843 $56,679 $59,947
Other Current Assets $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 $24,000
Total Current Assets $50,000 $48,193 $50,462 $54,283 $55,985 $62,622 $67,141 $71,667 $66,325 $74,468 $69,843 $78,679 $83,947

Long-term Assets
Long-term Assets $130,000 $132,000 $134,000 $136,000 $138,000 $140,000 $142,000 $144,000 $146,000 $148,000 $150,000 $152,000 $154,000
Accumulated Depreciation $24,000 $25,547 $27,094 $28,641 $30,188 $31,735 $33,282 $34,829 $36,376 $37,923 $39,470 $41,017 $42,564
Total Long-term Assets $106,000 $106,453 $106,906 $107,359 $107,812 $108,265 $108,718 $109,171 $109,624 $110,077 $110,530 $110,983 $111,436
Total Assets $156,000 $154,646 $157,368 $161,642 $163,797 $170,887 $175,859 $180,838 $175,949 $184,545 $180,373 $189,662 $195,383

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

Current Liabilities
Accounts Payable $16,000 $11,807 $15,183 $17,301 $17,294 $19,412 $19,404 $19,397 $15,812 $18,704 $15,120 $18,688 $18,680
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 $24,000
Subtotal Current Liabilities $16,000 $13,807 $19,183 $23,301 $25,294 $29,412 $31,404 $33,397 $31,812 $36,704 $35,120 $40,688 $42,680

Long-term Liabilities $80,000 $78,600 $77,200 $75,800 $74,400 $73,000 $71,600 $70,200 $68,800 $67,400 $66,000 $64,600 $63,200
Total Liabilities $96,000 $92,407 $96,383 $99,101 $99,694 $102,412 $103,004 $103,597 $100,612 $104,104 $101,120 $105,288 $105,880

Paid-in Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Retained Earnings $45,500 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000
Earnings $14,500 $2,239 $985 $2,540 $4,103 $8,475 $12,854 $17,242 $15,337 $20,441 $19,253 $24,374 $29,502
Total Capital $60,000 $62,239 $60,985 $62,540 $64,103 $68,475 $72,854 $77,242 $75,337 $80,441 $79,254 $84,374 $89,502
Total Liabilities and Capital $156,000 $154,646 $157,368 $161,642 $163,797 $170,887 $175,859 $180,838 $175,949 $184,545 $180,373 $189,662 $195,383

Net Worth $60,000 $62,239 $60,985 $62,540 $64,103 $68,475 $72,854 $77,242 $75,337 $80,441 $79,254 $84,374 $89,502

Page 6