Sources of Funds:

 Equity financing: $500,000 from the founder's personal savings

 Bank loan: $1,000,000 from a local bank

Total sources of funds: $1,500,000

Uses of Funds:

 Vehicle purchases: $1,000,000 to purchase 50 vehicles at an average cost of $20,000 per vehicle

 Technology and software development: $300,000 to develop and maintain a mobile app and
other software platforms

 Marketing and advertising: $100,000 for launch and ongoing marketing efforts

 Administrative expenses: $50,000 for legal, accounting, and other administrative costs

 Working capital: $50,000 to cover initial operating expenses

Total uses of funds: $1,500,000

Assumption Sheet:

1. Market size: We assume that the market size for ride-sharing services will continue to grow at a
rate of 10% per year for the next five years.

2. Pricing: We assume that our pricing will be competitive with other ride-sharing services in the
market, and that we will charge an average fare of $10 per ride.

3. Number of drivers: We assume that we will be able to recruit and retain 500 drivers over the
next three years, and that each driver will complete an average of 25 rides per week.

4. Vehicle costs: We assume that the cost of acquiring and maintaining vehicles will be $20,000 per
vehicle, and that each vehicle will be used for an average of 200 rides per month.

5. Driver costs: We assume that driver salaries and incentives will amount to an average of $5 per
ride, and that we will offer bonuses to drivers who complete a certain number of rides per week
or month.

6. Operating expenses: We assume that operating expenses will amount to 50% of total revenue,
and that this includes marketing, technology, and administrative costs.
 7. Financing: We assume that we will secure a $1,000,000 loan from a local bank, with an interest
rate of 8% per year and a term of five years.

8. Regulatory requirements: We assume that we will comply with all local and national regulations
for ride-sharing services, including licensing, insurance, and taxation requirements

Pro Forma Income Statement

For the Years Ending December 31, 20XX, 20XX+1, and 20XX+2

Year 1 Year 2 Year 3

Revenue $500,000 $750,000 $1,000,000

Cost of Sales ($200,000) ($300,000) ($400,000)

Gross Profit $300,000 $450,000 $600,000

Operating Expenses ($150,000) ($200,000) ($250,000)

Depreciation and Amortization ($30,000) ($30,000) ($30,000)

Operating clash flow $120,000 $220,000 $320,000

Interest Expense ($10,000) ($10,000) ($10,000)

Operating income $110,000 $210,000 $310,000

Taxes ($33,000) ($63,000) ($93,000)

Net Income $77,000 $147,000 $217,000

Pro Forma Balance Sheet

For the Years Ending December 31, 20XX, 20XX+1, and 20XX+2

Year 1 Year 2 Year 3

Assets

Cash $400,000 $1,000,000 $1,800,000

Vehicles $1,000,000 $1,000,000 $1,000,000

Accum. Depreciation ($50,000) ($100,000) ($150,000)

Total Assets $1,350,000 $1,900,000 $2,650,000

Liabilities

Bank Loan $1,000,000 $750,000 $500,000

Accounts Payable $60,000 $80,000 $100,000

Total Liabilities $1,060,000 $830,000 $600,000

Equity

Founder's Equity $250,000 $950,000 $2,050,000

Total Equity $250,000 $950,000 $2,050,000

Total Liabilities & Equity $1,350,000 $1,900,000 $2,650,000

Pro Forma Cash flows

For the Years Ending December 31, 20XX, 20XX+1, and 20XX+2

Year 1 Year 2 Year 3

Operating Activities

Net Income ($130,000) ($130,000) ($130,000)

Depreciation and Amortization $50,000 $50,000 $50,000

Changes in Working Capital $0 $20,000 $20,000

Cash Flow from Operating Activities ($80,000) ($60,000) ($60,000)

Investing Activities

Purchase of Vehicles ($1,000,000) $0 $0

Financial activities

Cash Flow from Investing Activities ($1,000,000) $0 $0

Proceeds from Loans $100,000 $0 $0

Payment of Dividends ($10,000) ($20,000) ($30,000)

Net Cash from Financing

Activities

Net Increase/(Decrease) in Cash $80,000 $46,000 $62,000

Cash at Beginning of Year $20,000 $100,000 $146,000

Cash at End of Year $100,000 $146,000 $208,000

Projections and Risks for a Ride Sharing Business

 The ride sharing business is expected to generate solid revenue growth over the next three
years, with projected revenue of $300,000 in year 1, $500,000 in year 2, and $750,000 in year 3.
  However, the business is also expected to experience significant expenses, particularly in the
areas of vehicle maintenance and fuel costs. This could lead to negative cash flow in year 1,
although cash flow is expected to improve in years 2 and 3 as the business expands and
becomes more profitable.

 The business has a high debt-to-equity ratio, with $100,000 in loans expected to be taken out in
year 1. This could pose a risk if the business is unable to generate sufficient cash flow to repay
the loans.

 Compared to competitors in the ride sharing industry, the business's financial performance
appears to be relatively strong, with projected revenue growth that exceeds the industry
average.

 There may be opportunities for growth and expansion, particularly in the areas of marketing and
customer acquisition. The business could also explore partnerships or collaborations with other
companies in the transportation industry to increase its reach and revenue potential.

 It is important to note that the pro forma financial statements are based on certain
assumptions, including projected demand for the ride sharing service and the cost of fuel and
vehicle maintenance. These assumptions may not hold true in reality, so it is important to
monitor actual financial performance closely and make adjustments as needed.

1. The Creator of everything (see verse 39:62, 40:62 and 6:102).

3. The Sustainer of everything (see verse 7:54, 10:31 and 2:225).
3. The Everlasting; He has always existed and will always exist (see verse 112:3 and
28:88).
4. The Omniscient (see verse 2:225, 6:59, 34:3, 35:38, 42:12, 49:16, 49:18 and
49:60).
5. The Omnipotent (see verse 2:148).
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7. The Entity which is one/singular and has no partners (see verse 9:31, 10:66, 21:22,
23:91 and 34:22).
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10. The Unseen (see verse 6:103).
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