1.

0 Executive Summary

Josh Juice has been a successful product brand in the city of Richmond for three years.
The company's natural, 100% fruit juices has grown in sales by 15% each year and is
now available in over 100 store outlets in the greater Richmond area. Josh Juice will
gross $580,000 in sales this year. This was generated from a initial investment of
$180,000.

Josh Juice is planning to expand its operation to include distribution to stores within
the entire state. Owner funding and internally generated cash flow will enable most
the expansion plan. The company will also secure a $100,000 short-term loan. Sales
projections for the next three years are based on current sales success with the target
customer base in Richmond. Initial contacts have been completed with retail outlets
throughout the state and the potential target markets have been identified.

This plan will result in sales revenues growing to $1.2 million by Year 2.

1.1 Objectives

The objectives of Josh Juice are the following:

● Create a state-wide sales staff.

● Establish strong sales in the state's five metro areas by Year 2.

● Maintain tight control of cost and operation during expansion.

1.2 Mission

Josh Juice's mission is as follows:

● Quality: Our fruit juices are the highest quality, most nutritious food
products...because we will accept nothing less.

● Innovative: Our products have always been in the forefront of the health and
nutrition wave. Innovative products, state of the art manufacturing, quality
assurance and industry expertise are the bases for our past and future successes.

● Integrity: Our customers depend on the quality of our juice products. Our
commitment to the highest standard is the foundation of our customer's trust in
Josh Juice. Delivering freshly made juice to consumers depends on extensive
cooperation and mutual reliance between supplier and retailer. We stand behind our
product, our service and our word.
 Chart: Highlights

2.0 Company Summary

Josh Juice has built a reputation on offering the most delicious, nutritious, 100%
natural juices with no artificial flavors, colors or preservatives.

2.1 Company Ownership

Josh Juice is owned by Tama Gardner and William Harris.

2.2 Company History

Josh Juice had its humble beginnings in the kitchen of Tama Gardner. It was in her
kitchen that she and William Harris first created the fruit drinks that would soon
become the basis for Josh Juice.

Initially, the fruit drinks were sold at Richmond's weekend craft fair. They proved to be
so popular that the partnership pooled their resources and began Josh Juice. Over the
next three years, Josh Juice's drinks, shakes, and smoothies have become one of the
city's most visible signs of a healthy life style.

Josh Juice's operations have expanded dramatically over the past three years.
Currently, the company has a staff of ten in production, delivery, and sales.

The following table and chart illustrate the rapid sales success of Josh Juice.
Table: Past Performance

Past Performance
1999 2000 2001
Sales $450,000 $520,000 $580,000
Gross Margin $120,000 $143,000 $160,000
Gross Margin % 26.67% 27.50% 27.59%
Operating Expenses $200,000 $240,000 $280,000
Collection Period (days) 0 0 76
Inventory Turnover 15.00 15.00 15.00

Balance Sheet
1999 2000 2001

Current Assets
Cash $20,000 $30,000 $40,000
Accounts Receivable $49,000 $58,000 $80,000
Inventory $10,000 $10,000 $10,000
Other Current Assets $5,000 $5,000 $5,000
Total Current Assets $84,000 $103,000 $135,000

Long-term Assets
Long-term Assets $70,000 $50,000 $50,000
Accumulated Depreciation $4,000 $8,000 $12,000
Total Long-term Assets $66,000 $42,000 $38,000

Total Assets $150,000 $145,000 $173,000

Current Liabilities
Accounts Payable $30,000 $20,000 $20,000
Current Borrowing $0 $0 $0
Other Current Liabilities (interest free) $0 $0 $0
Total Current Liabilities $30,000 $20,000 $20,000

Long-term Liabilities $60,000 $40,000 $40,000

Total Liabilities $90,000 $60,000 $60,000

Paid-in Capital $30,000 $40,000 $80,000

Retained Earnings $30,000 $45,000 $9,000
Earnings $0 $0 $24,000
Total Capital $60,000 $85,000 $113,000

Total Capital and Liabilities $150,000 $145,000 $173,000

Other Inputs
Payment Days 0 0 12
Sales on Credit $0 $0 $330,000
Receivables Turnover 0.00 0.00 4.13
 Chart: Past Performance

2.3 Company Locations and Facilities

Josh Juice is located on 1234 Main St.

3.0 Products

Josh Juice offers the following products:

● Fruit and vegetable juices;

● Smoothies;

● Super food drinks;

● Fruit and vegetable shakes.

4.0 Market Analysis Summary

The demographics of Josh Juice customers are as follows:

● Young professional, ages 25 - 45;

● Average income of $40,000+ a year;

● Involved in athletic activity;

● Shop in upscale health/natural food stores.

4.1 Market Segmentation

Josh Juice has identified seven metro locations within the state where we can reach
our target customers:

● Montclair;

● Riley;

● Ashford;

● Tracy;

● Wilmington;

● Langsford;

● Willard.

Table: Market Analysis

Market Analysis
2002 2003 2004 2005 2006
Potential Growth CAGR
Customers
Montclair 10% 60,000 66,000 72,600 79,860 87,846 10.00%
Riley 10% 75,000 82,500 90,750 99,825 109,808 10.00%
Ashford 10% 85,000 93,500 102,850 113,135 124,449 10.00%
Tracy 10% 75,000 82,500 90,750 99,825 109,808 10.00%
Wilmington 10% 62,000 68,200 75,020 82,522 90,774 10.00%
Langsford 10% 90,000 99,000 108,900 119,790 131,769 10.00%
Willard 10% 48,000 52,800 58,080 63,888 70,277 10.00%
Total 10.00% 495,000 544,500 598,950 658,845 724,731 10.00%
 Chart: Market Analysis (Pie)

5.0 Strategy and Implementation Summary

The strategy of Josh Juice is to focus on our niche market which is health/natural food
stores that serve the young active professional.

5.1 Marketing Strategy

Josh Juice will introduce its products at 20% off regular price during the first month. In
addition, Josh Juice will co-sponsor local athletic charitable events to raise the visibility
of the brand name.

5.2 Sales Strategy

The sales strategy is to build customer loyalty in the new markets. Josh Juice will
increase its sales force to focus on the new markets.

5.2.1 Sales Forecast

The following table and charts shows the rapid ramp-up of sales during the first twelve
months of operation.

Table: Sales Forecast

Sales Forecast
2002 2003 2004
Sales
Products $1,020,000 $1,200,000 $1,300,000
Other $0 $0 $0
Total Sales $1,020,000 $1,200,000 $1,300,000

Direct Cost of Sales 2002 2003 2004

Products $278,000 $310,000 $360,000
Other $0 $0 $0
Subtotal Direct Cost of Sales $278,000 $310,000 $360,000

Chart: Sales Monthly

Chart: Sales by Year
6.0 Management Summary

Co-owners, Tama Gardner and William Harris, currently manage the daily operation of
Josh Juice. Tama and William have fifteen years of experience working in natural food
stores. Tama is responsible for production and distribution. William is the Sales
Manager for Josh Juice.

Tama Gardner was one of the founding members of the Mason Peak Natural Grocery,
4th and Tyler. The grocery was established in 1992 by the non-profit NEDCO, the
Neighborhood Economic Development Corporation, and a number of concerned
neighbors who wished to save the historic Mason Peak Market from destruction. Tama
started as a cashier and advanced to the position of Store Manager in 1996. The
grocery has grown into a community fixture under her management.

William Harris ran the University's now defunct Natural Food Collective for three years
before the program was defunded. The small on-campus store provided natural food
products to student customers. Sales increased by 20% each year under his
leadership. Unfortunately, the state budget shortfall impacted the continued funding of
the program. Prior to this position, William worked as Buyer for Sunburst Natural
Foods for four years.

6.1 Personnel Plan

The following table shows the project personnel plan for Josh Juice.

Table: Personnel

Personnel Plan
2002 2003 2004
Tama Gardner $36,000 $40,000 $44,000
William Harris $36,000 $40,000 $44,000
Production Staff $120,000 $130,000 $140,000
Distribution Staff $120,000 $130,000 $140,000
Sales Staff $72,000 $76,000 $80,000
Total People 13 13 13

Total Payroll $384,000 $416,000 $448,000

7.0 Financial Plan

The following is the financial plan for Josh Juice.

7.1 Break-even Analysis

The monthly break-even point is $66,534.

Chart: Break-even Analysis

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $66,534

Assumptions:
Average Percent Variable Cost 27%
Estimated Monthly Fixed Cost $48,400
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 $1,020,000 $1,200,000 $1,300,000
Direct Cost of Sales $278,000 $310,000 $360,000
Other Production Expenses $0 $0 $0
Total Cost of Sales $278,000 $310,000 $360,000

Gross Margin $742,000 $890,000 $940,000

Gross Margin % 72.75% 74.17% 72.31%

Expenses
Payroll $384,000 $416,000 $448,000
Sales and Marketing and Other $72,000 $132,000 $132,000
Expenses
Depreciation $9,600 $9,600 $9,600
Leased Equipment $0 $0 $0
Utilities $12,000 $12,000 $12,000
Insurance $9,600 $9,600 $9,600
Rent $36,000 $36,000 $36,000
Payroll Taxes $57,600 $62,400 $67,200
Other $0 $0 $0

Total Operating Expenses $580,800 $677,600 $714,400

Profit Before Interest and Taxes $161,200 $212,400 $225,600

EBITDA $170,800 $222,000 $235,200
Interest Expense $9,310 $13,703 $14,203
Taxes Incurred $45,567 $59,609 $63,419

Net Profit $106,323 $139,088 $147,978

Net Profit/Sales 10.42% 11.59% 11.38%
Chart: Profit Monthly

Chart: Profit Yearly

7.3 Projected Cash Flow

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

Table: Cash Flow

Pro Forma Cash Flow

2002 2003 2004
Cash Received

Cash from Operations

Cash Sales $255,000 $300,000 $325,000
Cash from Receivables $697,500 $873,971 $960,539
Subtotal Cash from Operations $952,500 $1,173,971 $1,285,539

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $100,163 $0 $0
New Other Liabilities (interest-free) $36,000 $36,000 $36,000
New Long-term Liabilities $36,000 $36,000 $36,000
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 $1,124,663 $1,245,971 $1,357,539

Expenditures 2002 2003 2004

Expenditures from Operations

Cash Spending $384,000 $416,000 $448,000
Bill Payments $511,954 $633,013 $695,546
Subtotal Spent on Operations $895,954 $1,049,013 $1,143,546

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $19,992 $19,992 $19,992
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $18,000 $18,300 $3,700
Purchase Other Current Assets $24,000 $30,000 $40,000
Purchase Long-term Assets $24,000 $30,000 $30,000
Dividends $0 $0 $0
Subtotal Cash Spent $981,946 $1,147,305 $1,237,238

Net Cash Flow $142,717 $98,666 $120,302

Cash Balance $182,717 $281,383 $401,684
Chart: Cash
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 $182,717 $281,383 $401,684
Accounts Receivable $147,500 $173,529 $187,990
Inventory $33,000 $31,688 $38,323
Other Current Assets $29,000 $59,000 $99,000
Total Current Assets $392,217 $545,600 $726,997

Long-term Assets
Long-term Assets $74,000 $104,000 $134,000
Accumulated Depreciation $21,600 $31,200 $40,800
Total Long-term Assets $52,400 $72,800 $93,200
Total Assets $444,617 $618,400 $820,197

Liabilities and Capital 2002 2003 2004

Current Liabilities
Accounts Payable $51,123 $52,110 $57,621
Current Borrowing $80,171 $60,179 $40,187
Other Current Liabilities $36,000 $72,000 $108,000
Subtotal Current Liabilities $167,294 $184,289 $205,808

Long-term Liabilities $58,000 $75,700 $108,000

Total Liabilities $225,294 $259,989 $313,808

Paid-in Capital $80,000 $80,000 $80,000

Retained Earnings $33,000 $139,323 $278,411
Earnings $106,323 $139,088 $147,978
Total Capital $219,323 $358,411 $506,389
Total Liabilities and Capital $444,617 $618,400 $820,197

Net Worth $219,323 $358,411 $506,389

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 5149, Groceries and related
products, are shown for comparison.

Table: Ratios

Ratio Analysis
2002 2003 2004 Industry
Profile
Sales Growth 75.86% 17.65% 8.33% 4.60%

Percent of Total Assets

Accounts Receivable 33.17% 28.06% 22.92% 33.30%
Inventory 7.42% 5.12% 4.67% 26.00%
Other Current Assets 6.52% 9.54% 12.07% 20.90%
Total Current Assets 88.21% 88.23% 88.64% 80.20%
Long-term Assets 11.79% 11.77% 11.36% 19.80%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 37.63% 29.80% 25.09% 45.20%

Long-term Liabilities 13.04% 12.24% 13.17% 10.00%
Total Liabilities 50.67% 42.04% 38.26% 55.20%
Net Worth 49.33% 57.96% 61.74% 44.80%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 72.75% 74.17% 72.31% 44.10%
Selling, General & Administrative 62.32% 62.58% 60.92% 26.70%
Expenses
Advertising Expenses 5.88% 10.00% 9.23% 0.70%
Profit Before Interest and Taxes 15.80% 17.70% 17.35% 0.80%

Main Ratios
Current 2.34 2.96 3.53 1.69
Quick 2.15 2.79 3.35 1.01
Total Debt to Total Assets 50.67% 42.04% 38.26% 55.20%
Pre-tax Return on Net Worth 69.25% 55.44% 41.75% 3.60%
Pre-tax Return on Assets 34.16% 32.13% 25.77% 8.00%

Additional Ratios 2002 2003 2004

Net Profit Margin 10.42% 11.59% 11.38% n.a
Return on Equity 48.48% 38.81% 29.22% n.a

Activity Ratios
Accounts Receivable Turnover 5.19 5.19 5.19 n.a
Collection Days 59 65 68 n.a
Inventory Turnover 10.91 9.58 10.28 n.a
Accounts Payable Turnover 10.62 12.17 12.17 n.a
Payment Days 28 30 29 n.a
Total Asset Turnover 2.29 1.94 1.58 n.a
Debt Ratios
Debt to Net Worth 1.03 0.73 0.62 n.a
Current Liab. to Liab. 0.74 0.71 0.66 n.a

Liquidity Ratios
Net Working Capital $224,923 $361,311 $521,189 n.a
Interest Coverage 17.31 15.50 15.88 n.a

Additional Ratios
Assets to Sales 0.44 0.52 0.63 n.a
Current Debt/Total Assets 38% 30% 25% n.a
Acid Test 1.27 1.85 2.43 n.a
Sales/Net Worth 4.65 3.35 2.57 n.a
Dividend Payout 0.00 0.00 0.00 n.a
 Appendix

Table: Sales Forecast

Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Products 0% $60,000 $60,000 $70,000 $80,000 $80,000 $90,000 $90,000 $90,000 $100,00 $100,00 $100,00 $100,00
0 0 0 0
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $60,000 $60,000 $70,000 $80,000 $80,000 $90,000 $90,000 $90,000 $100,00 $100,00 $100,00 $100,00
0 0 0 0

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Products $13,000 $13,000 $17,000 $20,000 $20,000 $25,000 $25,000 $25,000 $30,000 $30,000 $30,000 $30,000
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of $13,000 $13,000 $17,000 $20,000 $20,000 $25,000 $25,000 $25,000 $30,000 $30,000 $30,000 $30,000
Sales

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 Appendix

Table: Personnel

Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Tama Gardner 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
William Harris 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
Production Staff 0% $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Distribution Staff 0% $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Sales Staff 0% $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000
Total People 13 13 13 13 13 13 13 13 13 13 13 13

Total Payroll $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000

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 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
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% 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 $60,000 $60,000 $70,000 $80,000 $80,000 $90,000 $90,000 $90,000 $100,000 $100,000 $100,000 $100,000
Direct Cost of Sales $13,000 $13,000 $17,000 $20,000 $20,000 $25,000 $25,000 $25,000 $30,000 $30,000 $30,000 $30,000
Other Production $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Expenses
Total Cost of Sales $13,000 $13,000 $17,000 $20,000 $20,000 $25,000 $25,000 $25,000 $30,000 $30,000 $30,000 $30,000

Gross Margin $47,000 $47,000 $53,000 $60,000 $60,000 $65,000 $65,000 $65,000 $70,000 $70,000 $70,000 $70,000
Gross Margin % 78.33% 78.33% 75.71% 75.00% 75.00% 72.22% 72.22% 72.22% 70.00% 70.00% 70.00% 70.00%

Expenses
Payroll $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000
Sales and Marketing $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000
and Other Expenses
Depreciation $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Insurance $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Rent $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Payroll Taxes 15% $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Operating $48,400 $48,400 $48,400 $48,400 $48,400 $48,400 $48,400 $48,400 $48,400 $48,400 $48,400 $48,400
Expenses

Profit Before Interest ($1,400) ($1,400) $4,600 $11,600 $11,600 $16,600 $16,600 $16,600 $21,600 $21,600 $21,600 $21,600
and Taxes
EBITDA ($600) ($600) $5,400 $12,400 $12,400 $17,400 $17,400 $17,400 $22,400 $22,400 $22,400 $22,400
Interest Expense $401 $469 $538 $606 $674 $742 $810 $878 $946 $1,014 $1,082 $1,151
Taxes Incurred ($540) ($561) $1,219 $3,298 $3,278 $4,757 $4,737 $4,717 $6,196 $6,176 $6,155 $6,135
Page 4
 Appendix

Net Profit ($1,261) ($1,309) $2,844 $7,696 $7,648 $11,101 $11,053 $11,006 $14,458 $14,410 $14,363 $14,314
Net Profit/Sales -2.10% -2.18% 4.06% 9.62% 9.56% 12.33% 12.28% 12.23% 14.46% 14.41% 14.36% 14.31%

Page 5
 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 $15,000 $15,000 $17,500 $20,000 $20,000 $22,500 $22,500 $22,500 $25,000 $25,000 $25,000 $25,000
Cash from Receivables $40,000 $41,500 $45,000 $45,250 $52,750 $60,000 $60,250 $67,500 $67,500 $67,750 $75,000 $75,000
Subtotal Cash from $55,000 $56,500 $62,500 $65,250 $72,750 $82,500 $82,750 $90,000 $92,500 $92,750 $100,00 $100,00
Operations 0 0

Additional Cash Received

Sales Tax, VAT, HST/GST 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received
New Current Borrowing $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,500
New Other Liabilities $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
(interest-free)
New Long-term Liabilities $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Sales of Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $69,333 $70,833 $76,833 $79,583 $87,083 $96,833 $97,083 $104,33 $106,83 $107,08 $114,33 $114,50
3 3 3 3 0

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

Expenditures from
Operations
Cash Spending $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000
Bill Payments $21,092 $32,619 $28,850 $38,891 $42,695 $39,953 $51,417 $46,148 $46,596 $58,060 $52,791 $52,839
Subtotal Spent on $53,092 $64,619 $60,850 $70,891 $74,695 $71,953 $83,417 $78,148 $78,596 $90,060 $84,791 $84,839
Operations

Page 6
 Appendix

Additional Cash Spent

Sales Tax, VAT, HST/GST $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Paid Out
Principal Repayment of $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666
Current Borrowing
Other Liabilities Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
Long-term Liabilities Principal $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Repayment
Purchase Other Current $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Assets
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 $60,258 $71,785 $68,016 $78,057 $81,861 $79,119 $90,583 $85,314 $85,762 $97,226 $91,957 $92,005

Net Cash Flow $9,075 ($952) $8,817 $1,526 $5,222 $17,714 $6,500 $19,019 $21,071 $9,857 $22,376 $22,495
Cash Balance $49,075 $48,123 $56,940 $58,465 $63,687 $81,401 $87,900 $106,91 $127,99 $137,84 $160,22 $182,71
9 0 7 2 7

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 $40,000 $49,075 $48,123 $56,940 $58,465 $63,687 $81,401 $87,900 $106,91 $127,99 $137,84 $160,22 $182,71
9 0 7 2 7
Accounts Receivable $80,000 $85,000 $88,500 $96,000 $110,75 $118,00 $125,50 $132,75 $132,75 $140,25 $147,50 $147,50 $147,50
0 0 0 0 0 0 0 0 0
Inventory $10,000 $14,300 $14,300 $18,700 $22,000 $22,000 $27,500 $27,500 $27,500 $33,000 $33,000 $33,000 $33,000
Other Current Assets $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 $19,000 $21,000 $23,000 $25,000 $27,000 $29,000
Total Current Assets $135,000 $155,37 $159,92 $182,64 $204,21 $218,68 $251,40 $267,15 $288,16 $324,24 $343,34 $367,72 $392,21
5 3 0 5 7 1 0 9 0 7 2 7
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Long-term Assets
Long-term Assets $50,000 $52,000 $54,000 $56,000 $58,000 $60,000 $62,000 $64,000 $66,000 $68,000 $70,000 $72,000 $74,000
Accumulated $12,000 $12,800 $13,600 $14,400 $15,200 $16,000 $16,800 $17,600 $18,400 $19,200 $20,000 $20,800 $21,600
Depreciation
Total Long-term Assets $38,000 $39,200 $40,400 $41,600 $42,800 $44,000 $45,200 $46,400 $47,600 $48,800 $50,000 $51,200 $52,400
Total Assets $173,000 $194,57 $200,32 $224,24 $247,01 $262,68 $296,60 $313,55 $335,76 $373,04 $393,34 $418,92 $444,61
5 3 0 5 7 1 0 9 0 7 2 7

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

Current Liabilities
Accounts Payable $20,000 $31,669 $27,558 $37,464 $41,377 $38,233 $49,879 $44,609 $44,655 $56,301 $51,030 $51,076 $51,123
Current Borrowing $0 $6,667 $13,334 $20,001 $26,668 $33,335 $40,002 $46,669 $53,336 $60,003 $66,670 $73,337 $80,171
Other Current Liabilities $0 $3,000 $6,000 $9,000 $12,000 $15,000 $18,000 $21,000 $24,000 $27,000 $30,000 $33,000 $36,000
Subtotal Current $20,000 $41,336 $46,892 $66,465 $80,045 $86,568 $107,88 $112,27 $121,99 $143,30 $147,70 $157,41 $167,29
Liabilities 1 8 1 4 0 3 4

Long-term Liabilities $40,000 $41,500 $43,000 $44,500 $46,000 $47,500 $49,000 $50,500 $52,000 $53,500 $55,000 $56,500 $58,000
Total Liabilities $60,000 $82,836 $89,892 $110,96 $126,04 $134,06 $156,88 $162,77 $173,99 $196,80 $202,70 $213,91 $225,29
5 5 8 1 8 1 4 0 3 4

Paid-in Capital $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000
Retained Earnings $9,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000
Earnings $24,000 ($1,261) ($2,570) $274 $7,970 $15,619 $26,720 $37,773 $48,778 $63,236 $77,646 $92,009 $106,32
3
Total Capital $113,000 $111,73 $110,43 $113,27 $120,97 $128,61 $139,72 $150,77 $161,77 $176,23 $190,64 $205,00 $219,32
9 0 4 0 9 0 3 8 6 6 9 3
Total Liabilities and $173,000 $194,57 $200,32 $224,24 $247,01 $262,68 $296,60 $313,55 $335,76 $373,04 $393,34 $418,92 $444,61
Capital 5 3 0 5 7 1 0 9 0 7 2 7

Net Worth $113,000 $111,73 $110,43 $113,27 $120,97 $128,61 $139,72 $150,77 $161,77 $176,23 $190,64 $205,00 $219,32
9 0 4 0 9 0 3 8 6 6 9 3

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