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AIRCRAFT RENTAL

INSTRUCTION
(BUSINESS PLAN)

Table of Contents

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


Chart: Highlights.......................................................................................................................................2
1.1 Objectives................................................................................................................................................2
1.2 Keys to Success.......................................................................................................................................2
1.3 Mission....................................................................................................................................................3
2.0 Company Summary.....................................................................................................................................3
2.1 Company Ownership..............................................................................................................................3
2.2 Start-up Summary...................................................................................................................................3
Table: Start-up...........................................................................................................................................4
...................................................................................................................................................................4
Chart: Start-up...........................................................................................................................................6
2.3 Company Locations and Facilities..........................................................................................................6
3.0 Services.......................................................................................................................................................6
3.1 Service Description.................................................................................................................................6
3.2 Competitive Comparison........................................................................................................................7
3.3 Sales Literature.......................................................................................................................................7
3.4 Technology..............................................................................................................................................7
3.5 Future Services........................................................................................................................................7
4.0 Market Analysis Summary.........................................................................................................................7
4.1 Market Segmentation..............................................................................................................................8
Table: Market Analysis.............................................................................................................................8
Chart: Market Analysis (Pie)....................................................................................................................9
4.2 Target Market Segment Strategy............................................................................................................9
4.2.1 Market Trends..................................................................................................................................9
4.2.2 Market Needs...................................................................................................................................9
4.2.3 Market Growth...............................................................................................................................10
4.3 Service Business Analysis....................................................................................................................10
4.3.1 Competition and Buying Patterns..................................................................................................11
4.3.2 Main Competitors..........................................................................................................................11
4.3.3 Business Participants.....................................................................................................................11
5.0 Strategy and Implementation Summary...................................................................................................12
5.1 Sales Forecast........................................................................................................................................12
Chart: Sales Monthly..............................................................................................................................12
Table: Sales Forecast..............................................................................................................................13
Chart: Sales by Year...............................................................................................................................13
5.2 Milestones.............................................................................................................................................14
Table: Milestones....................................................................................................................................14
Chart: Milestones....................................................................................................................................14
6.0 Management Summary.............................................................................................................................15
6.1 Management Team................................................................................................................................15
6.2 Personnel Plan.......................................................................................................................................15
Table: Personnel......................................................................................................................................15
.........................................................................................................................................................................15
7.1 Important Assumptions.........................................................................................................................16
Table: General Assumptions...................................................................................................................16
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Table of Contents

.....................................................................................................................................................................16
Chart: Break-even Analysis....................................................................................................................17
Table: Break-even Analysis....................................................................................................................17
7.3 Projected Profit and Loss......................................................................................................................18
Table: Profit and Loss.............................................................................................................................18
Chart: Profit Monthly..............................................................................................................................19
Chart: Profit Yearly.................................................................................................................................19
Chart: Gross Margin Monthly................................................................................................................20
Chart: Gross Margin Yearly...................................................................................................................20
7.4 Projected Cash Flow.............................................................................................................................21
Chart: Cash..............................................................................................................................................21
Table: Cash Flow....................................................................................................................................22
.....................................................................................................................................................................22
7.5 Projected Balance Sheet........................................................................................................................23
Table: Balance Sheet...............................................................................................................................23
.....................................................................................................................................................................23
7.6 Business Ratios.....................................................................................................................................24
Table: Ratios...........................................................................................................................................24
7.7 Long-term Plan.....................................................................................................................................25
Table: Sales Forecast.........................................................................................................................................1
...........................................................................................................................................................................1
Table: Personnel................................................................................................................................................2
...........................................................................................................................................................................2
Table: General Assumptions.............................................................................................................................3
...........................................................................................................................................................................3
Table: Profit and Loss.......................................................................................................................................4
...........................................................................................................................................................................4
Table: Cash Flow..............................................................................................................................................5
Table: Balance Sheet.........................................................................................................................................6

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Lansing Aviation, LLC

1.0 Executive Summary


Introduction
Lansing Aviation is being formed as a private company offering services to student pilots.
Lansing Aviation will offer well-maintained aircraft for individual rental and for flight training.
Lansing Aviation will also provide primary and advanced flight instruction through the use of
independent flight instructors possessing corporate and airline backgrounds. Lansing Aviation
will offer professional aviation consulting for corporate, airline, and individual aviation needs.
The Company
Lansing Aviation, LLC has been created and legally organized as a Michigan Limited Liability
Company based in Lansing, Michigan. The principle investors and operators will be responsible
for all airplane acquisitions and company decisions.
Lansing Aviation will operate its aircraft out of Capital City Airport (LAN) in Lansing, Michigan.
The aircraft records, scheduling, and office will be located at an off-airport location 15 miles
north of Capital City Airport.
Services
Lansing Aviation offers services in three primary areas; aircraft rental, flight instruction, and
aviation consulting. In order to do so, Lansing Aviation will maintain a Cessna 172 Skyhawk
updated with the latest avionics.
Our competitive differences include professionally maintained aircraft, renter/instructor
insurance, and our 24-hour scheduling service that will allow greater flexibility of our aircraft
flight times.
In the future, Lansing Aviation plans to enhance their aircraft rental position by acquiring
complex, high-performance, single and multi-engine aircraft for commercial and airline
transport pilot training and rental. We also plan to conduct up-to-the-minute aircraft scheduling
through the use of the Internet and an online business website.
The Market
The airline pilot shortage has created an immense demand for increased pilot training. The
previous aircraft rental company in Lansing ended up needing additional aircraft to meet the
increased demands of new students in the area. Mackinac-Great Lakes Airlines Systems is the
largest employer in Lansing, with 19,000 employees, and we feel that these employees are
aware of the excellent careers held by M-GLAS pilots. We hope this awareness will generate
interest in flying. Additionally, many M-GLAS pilots and M-GLAS mechanics fly small airplanes
for fun and to transport their families to vacation spots.
There are several students currently flying at Capital City Airport that are unhappy with either
the quality of their current instruction or the poorly maintained aircraft they are renting. A flight
with our instructors in our well-equipped Cessna 172 Skyhawk will confirm their displeasure
with our competition and generate new business for us.

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Lansing Aviation, LLC

Lansing Aviation will be focusing initially on students interested in obtaining their private pilot
certificate. These students will primarily come from word-of-mouth-advertising from our
instructors, students, and other contacts at Mackinac-Great Lakes Airlines System (M-GLAS).
We will attempt to continue teaching these students through their instrument rating course with
us, upon completion of their private pilot package.

Chart: Highlights

Highlights
$60,000

$50,000

$40,000

Sales
Gross Margin

$30,000

Net Profit
$20,000

$10,000

$0
Year 1

Year 2

Year 3

Year 4

Year 5

1.1 Objectives
1. Form a Limited Liability Corporation (LLC) for liability protection of personal and company
assets.
2. Acquire a Cessna 172 Skyhawk aircraft for rental and flight instruction.
3. Operate the aircraft for at least 50 revenue flight hours per month.
4. Aircraft revenue to exceed hangar, insurance, fuel, maintenance upkeep and loan expenses
resulting in a net income/profit.
1.2 Keys to Success
1. A 24-hour aircraft schedule will provide students and renters with better schedule planning.
2. Marketing the aircraft to the 2,100 Mackinac-Great Lakes Airlines System airline pilots, their
familes, friends, and neighbors in Lansing to generate more exposure and word-of-mouth
advertising resulting in more revenue flights.
3. Preventative aircraft maintenance to eliminate aircraft downtime.
4. Thorough and safe training of students and selective aircraft checkouts for rental customers
to insure the aircraft is operated carefully, safely, and respectfully.

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Lansing Aviation, LLC

1.3 Mission
Lansing Aviation offers an affordable, professionally-maintained aircraft for rental and flight
instruction. We will provide a safe and effective learning situation for our students while
adhering to safe practice and to applicable federal and state aviation regulations. Lansing
Aviation will provide students with an excellent aircraft for flight training and an aircraft to fly
upon successful completion of their training.
2.0 Company Summary
Lansing Aviation is a new company that provides aircraft rental for general aviation enthusiasts,
flight instruction, and a dependable aircraft to build flight hours. We will focus on aircraft rental
for registered pilots and rental for beginning and advanced flight training. Initially we will be
marketing our new business with aircraft specifications which include:

Clean, safe, and nice-looking aircraft readily available.


Professionally maintained by certified aviation technicians.
Continuously updated with leading-edge avionics.

2.1 Company Ownership


Lansing Aviation, LLC has been created and legally organized as a Michigan Limited Liability
Company based in Lansing, Michigan. The principle investors and operators will be responsible
for all airplane acquisitions and company decisions.
2.2 Start-up Summary
The start-up costs of Lansing Aviation, LLC include:

An aircraft down payment.


Office expenses.
Down payment on aircraft renter's and flight instructor's insurance.
Hangar deposit and first month's rent.
Aircraft loan application fees.
ADF radio purchase.
A small cash reserve.
Legal costs.

These are detailed on the following chart and table.

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Lansing Aviation, LLC

Table: Start-up

Start-up
Requirements
Start-up Expenses
Legal -- Attorney Fees
Office Supplies / Expenses
Consultants
Aircraft Insurance Down Payment
Expensed Equipment
Hanger Down Payment + 1st Mo. Rent
New ADF Radio
Aircraft 10% Down Payment
MBNA Loan Origination Fee
Total Start-up Expenses

$400
$200
$0
$925
$0
$600
$575
$3,600
$250
$6,550

Start-up Assets
Cash Required
Other Current Assets
Long-term Assets
Total Assets

$300
$0
$36,000
$36,300

Total Requirements

$42,850

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Lansing Aviation, LLC

Table: Start-up Funding


Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required

$6,550
$36,300
$42,850

Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

$36,000
$300
$0
$300
$36,300

Liabilities and Capital


Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities

$0
$32,400
$0
$0
$32,400

Capital
Planned Investment
Michael J. Zorn - president
Investor
Other
Additional Investment Requirement
Total Planned Investment

$10,450
$0
$0
$0
$10,450

Loss at Start-up (Start-up Expenses)


Total Capital

($6,550)
$3,900

Total Capital and Liabilities

$36,300

Total Funding

$42,850

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Lansing Aviation, LLC

Chart: Start-up

Start-up

$36,000
$32,000
$28,000
$24,000
$20,000
$16,000
$12,000
$8,000
$4,000
$0
Expenses

Assets

Investment

Loans

2.3 Company Locations and Facilities


Lansing Aviation will operate its aircraft out of Capital City Airport (LAN) in Lansing, Michigan.
The aircraft will be hangared on the airport located just north of the I-96 Expressway and
Airport Road exit. Students, renters, and instructors will be given full access to the hangar
facilities. The aircraft records, scheduling, and office will be located at an off-airport location 15
miles north of Capital City Airport.
3.0 Services
Lansing Aviation will provide students, instructors, and pilots with a well-maintained aircraft for
individual rental and instruction. Additionally, we will provide professional and accurate aviation
consulting.
3.1 Service Description

1. Aircraft Rental: We will offer a rental aircraft clear of maintenance discrepancies to


students, instructors, and individual renters.

2. Flight Instruction: We will provide prospective students with a qualified and professional
3.

selection of independent, certified flight instructors capable of helping students obtain their
desired flight ratings.
Aviation Consulting: We will offer individual advice in the aviation industry including
airline, corporate, and military recommendations. Additionally, we will attempt to aid our
customers with job leads and references in their desired fields.

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Lansing Aviation, LLC

3.2 Competitive Comparison


The competitive differences are:
1. Our aircraft will be professionally maintained to the highest standards and regulations.
Flying the aircraft with broken, deferred, or damaged components will not be acceptable.
Our students, renters, and instructors will not have to fly aircraft that aren't properly
maintained.
2. We will provide renter and instructor insurance for our clients.
3. Our 24-hour paging service will be used for aircraft scheduling and will give us a competitive
edge over other aircraft rental and instruction operators that open and close according to a
fixed schedule.
3.3 Sales Literature
The company will advertise its rental aircraft and flight instruction position in the MackinacGreat Lakes Airlines System airlines pilot union newspaper, the "ALPA Times." Additionally,
brochures describing the aircraft and rental charges will also be positioned in the M-GLAS
airlines' union headquarters in Lansing, Michigan. All other initial advertising will be through
word of mouth from current instructors, renters, and students.
3.4 Technology
Lansing Aviation will maintain an updated Cessna 172 Skyhawk.
1. The aircraft will have at least two 720-channel radios for legal and practical navigation and
communication purposes.
2. The aircraft will have the required equipment and certification necessary to conduct
instrument training and actual instrument flight.
3. The aircraft will be continuously upgraded with M-GLAS Aviation Technology (M-GLAS-AT)
avionics.
3.5 Future Services
In the future, Lansing Aviation will enhance their aircraft rental position by acquiring complex,
high-performance, single and multi-engine aircraft for commercial and airline transport pilot
training and rental.
We also hope to conduct up-to-the-minute aircraft scheduling through the use of the Internet
and an online business website.
4.0 Market Analysis Summary
Lansing Aviation will be focusing initially on students interested in obtaining their private pilot
certificate. These students will primarily come from word-of-mouth-advertising from our
instructors, students, and other contacts at Mackinac-Great Lakes Airlines System. We will
attempt to continue teaching these students through their instrument rating course with us,
upon completion of their private pilot package.

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Lansing Aviation, LLC

We feel that our well-maintained aircraft, combined with our personable and enthusiastic flight
instructors, will generate repeat business from our private pilot students returning for their
instrument ratings.
4.1 Market Segmentation

1. Unsatisfied Students: We hope to obtain students and renters that are dissatisfied with
2.

3.
4.

their current instructors or aircraft from our competition before they become so frustrated
that they cease flying.
M-GLAS Employees: Our largest group of new students will hopefully come from MackinacGreat Lakes Airlines System employees looking to start an aviation career. However, the MGLAS pilots, M-GLAS mechanics with pilots licenses, and their children will also serve as a
strong target market for us.
Curious Flyers: The unrealized group of students that have "always wanted to learn to fly"
is another market segment that we intend to develop.
Other Flights/Miscellaneous Rental: Sight-seeing flights, color tours, real-estate
surveying, Air Force training, and traffic watch will also be targeted.

Table: Market Analysis

Market Analysis
Potential Customers
Curious / Interested Future
Pilots
M-GLAS Pilots, Friends,
Neighbors
Other Schools Unhappy
Students
Other Flights / Misc. Rentals
Total

Year 1

Year 2

Year 3

Year 4

Year 5

20%

15

18

22

26

31

19.90%

30%

10

13

17

22

29

30.50%

1%

0.00%

15%
22.58%

5
31

6
38

7
47

8
57

9
70

15.83%
22.58%

Growth

CAGR

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Lansing Aviation, LLC

Chart: Market Analysis (Pie)

Market Analysis (Pie)

Curious / Interested Future Pilots


M-GLAS Pilots, Friends, Neighbors
Other Schools Unhappy Students
Other Flights / Misc. Rentals

4.2 Target Market Segment Strategy


We will focus our marketing to prospective students that are looking for fun, qualified
instructors and a well-maintained and well-equipped aircraft. The aircraft must fly several hours
each month, so we will continuously urge interested students to call our list of qualified
instructors. Each prospective pilot that contacts Lansing Aviation for information will be sent a
private pilot price sheet with approximate costs and a free 6-month subscription to AOPA Flight
Training magazine.
4.2.1 Market Trends
The airline shortage has created an immense demand for increased pilot training. The previous
aircraft rental company in Lansing ended up needing additional aircraft to meet the increased
demands of new students in the area.
There are rising numbers of students and renters that are looking for a professionallymaintained and well-equipped aircraft for training and renting.
4.2.2 Market Needs
There are several students currently flying at Capital City Airport that are unhappy with either
the quality of their current instruction or the poorly maintained aircraft they are renting. A flight
with our instructors in our well-equipped Cessna 172 Skyhawk will confirm their displeasure
with our competition and generate new business for us.
Mackinac-Great Lakes Airlines Systems is the largest employer in Lansing, with 19,000
employees, and we feel that these employees are aware of the excellent careers held by MGLAS pilots. We hope this awareness will generate interest in flying. Additionally, many M-GLAS
pilots and M-GLAS mechanics fly small airplanes for fun and to transport their families to
vacation spots.

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Lansing Aviation, LLC

4.2.3 Market Growth


The rental aircraft in the Lansing area are averaging over 50 hours of revenue flying per month.
This indicates a very solid number of new students, additional ratings for current students, and
more disposable income being used to obtain the long-time personal dream of obtaining a
pilot's license. Lugnut Flying Aviation, a flight school that ceased operation, was averaging over
70 hours of revenue flying per month and produced a net profit in the first year of operation.
4.3 Service Business Analysis
Our consulting will be a very valuable asset to people of the community who are interested in
flying or choosing flying as a career. Many parents have questions regarding the "correct" path
for their children with regard to a career as a pilot in the airline industry. These would include
flight training, colleges and college curricula, and most importantly, costs. Our goal is to advise
them of the best possible options to their questions, using our own personal experience.

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Lansing Aviation, LLC

4.3.1 Competition and Buying Patterns


In the flight instruction business, word-of-mouth advertising and personal marketing are the
main reason that students choose one flight school over another. Many students begin flying
after coincidentally meeting a certified flight instructor and discussing their dream of flying.
Through these discussions, students participate in an introductory flight and decide whether or
not they enjoyed the experience and whether or not the training will be affordable.
Occassionally, a student will have a personality conflict with his or her instructor and may
choose to try a new instructor. We intend to capitalize on some of these unfortunate conflicts at
Capital City Airport and attract their business with our professional, enthusiastic, and qualified
instructor group.
Our reputation of maintaining a nice-looking and well-maintained aircraft at an affordable price
will be our final and most respected selling medium.
4.3.2 Main Competitors
Spartan Wings:
Strengths: They have several different rental aircraft from which to choose, and excellent
marketing in the field. Because of an all-female management team and ownership, their
exposure to women in aviation is enormous.
Weaknesses: Their flight instructors are only instructing to build flight time in order to obtain an
airline or corporate job. Male students have complained of special treatment and training for
female students. Aircraft are not well-maintained, and the pilot-product of their school has not
been strong.
Wolverine Aviation:
Strengths: They provide competition to Spartan Wings, which gives an alternative for unhappy
students at Spartan Wings. They have several rental airplanes to choose from for instruction,
and ample room for teaching.
Weaknesses: They have poor community exposure and advertising, poor reputation of flight
instructors, and high aircraft rental rates.
4.3.3 Business Participants
There are currently two flight schools operating at Capital City Airport. These schools will be our
competition; however, we will not be a "formal" flight school. Lansing Aviation will have several
independent flight instructors that will bring in their own students and will work independently
from Lansing Aviation, while renting our aircraft. All instructors from the defunct Lugnut Flying
Aviation have verbally committed to bringing all of their business to Lansing Aviation upon its
acquisition of an aircraft.

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Lansing Aviation, LLC

5.0 Strategy and Implementation Summary


Lansing Aviation will be focusing initially on students interested in obtaining their private pilot
certificate. These students will primarily come from word-of-mouth-advertising from our
instructors, students, and other contacts at Mackinac-Great Lakes Airlines System (M-GLAS).
We will attempt to continue teaching these students through their instrument rating course with
us, upon completion of their private pilot package.
In order to attract larger sums of money, we will offer a 10-hour block of aircraft rental for
$730 ($73/hour) which is reduced from our normal rental rate of $75 per hour. Additionally, we
will offer M-GLAS employees the same $73 per hour rate for block or non-block rentals.
5.1 Sales Forecast
Our Sales Forecast tables shows our estimated aircraft rental revenue. This monthly breakdown
can be seen in the appendix. Estimated operating expenses and other charges are listed in the
Profit and Loss table.

Chart: Sales Monthly

Sales Monthly
$6,000

$5,000

$4,000

Aircraft Rental
$3,000

Other

$2,000

$1,000

$0
Month 1
Month 3
Month 5
Month 7
Month 9
Month 11
Month 2
Month 4
Month 6
Month 8
Month 10 Month 12

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Lansing Aviation, LLC

Table: Sales Forecast

Sales Forecast
Year 1

Year 2

Year 3

Year 4

Year 5

$49,068
$0
$49,068

$54,007
$0
$54,007

$55,392
$0
$55,392

$50,776
$0
$50,776

$60,931
$0
$60,931

Year 1
$0
$0
$0

Year 2
$0
$0
$0

Year 3
$0
$0
$0

Year 4
$0
$0
$0

Year 5
$0
$0
$0

Sales
Aircraft Rental
Other
Total Sales
Direct Cost of Sales
Aircraft Rental
Other
Subtotal Direct Cost of Sales

Chart: Sales by Year

Sales by Year
$60,000
$50,000
$40,000

Aircraft Rental
$30,000

Other

$20,000
$10,000
$0
Year 1

Year 2

Year 3

Year 4

Year 5

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Lansing Aviation, LLC

5.2 Milestones
Sample Milestones topic text.
The milestones table and chart show the specific detail about actual program activities that
should be taking place during the year. Each one has its manager, starting date, ending date,
and budget. During the year we will be keeping track of implementation against plan, with
reports on the timely completion of these activities as planned.
Table: Milestones

Milestones
Milestone
Sample Milestones
Finish Business Plan
Acquire Financing
Ah HA! Event
Ah Merde Alors! Event
Grande Opening
Marketing Program Starts
Plan vs. Actual Review
First Break-even Month
Hire Employees
Upgrade Business Plan Pro
Totals

Start Date
1/4/2008
9/13/2010
9/23/2010
10/3/2010
11/2/2010
11/12/2010
10/13/2010
3/10/2011
7/12/2011
6/10/2011
8/29/2011

End Date
1/4/2008
10/13/2010
11/12/2010
10/8/2010
11/7/2010
11/17/2010
11/7/2010
3/17/2011
8/11/2011
7/10/2011
8/31/2011

Budget
$0
$100
$200
$60
$250
$500
$1,000
$0
$0
$150
$100
$2,360

Manager
ABC
Dude
Dudette
Marianne
Marionette
Gloworm
Glower
Galore
Bouys
Gulls
Brass

Department
Department
Boss
Legumers
Bosses
Bouc missaire
Nobs
Marketeers
Alles
Salers
HRM
Bossies

Chart: Milestones

Milestones
Sample Milestones
Finish Business Plan
Acquire Financing
Ah HA! Event
Ah Merde Alors! Event
Grande Opening
Marketing Program Starts
Plan vs. Actual Review
First Break-even Month
Hire Employees
Upgrade Business Plan Pro
1/31/2008 7/31/20081/31/2009 7/31/2009 1/31/2010 7/31/2010 1/31/20117/31/2011

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Lansing Aviation, LLC

6.0 Management Summary


The initial organizer of Lansing Aviation, LLC is Michael J. Zorn. In order to maintain legal
requirements of an LLC, there is one other member of the company. At the current time, there
is only the need for two members in the organizational structure.
Lansing Aviation will rely on the member(s) of the LLC for decision making and financial
investing when needed. The ultimate responsibilities of the entire LLC will be given to the
member(s).
6.1 Management Team
Lansing Aviation is not departmentalized. The owner and organizer, Michael J. Zorn, is also the
CEO, CFO, and planner. All decisions will be based upon the company mission statement.
The collegiate advertising and marketing background, combined with the current airline pilot
experience of the CEO, will provide for timely, accurate, and professional decisions.
6.2 Personnel Plan
Lansing Aviation will employ no one. All flight instructors will be independent contractors
responsible for their own payroll. The company will not collect any funds from the instructors
for their time, but solely from the rental of the company's aircraft. The owner will be paid a
nominal stipend.
Table: Personnel

Personnel Plan
Year 1

Year 2

Year 3

Year 4

Year 5

Owner
Name or title
Name or title
Other
Total People

$7,833
$0
$0
$0
0

$12,000
$0
$0
$0
0

$0
$0
$0
$0
0

$0
$0
$0
$0
0

$0
$0
$0
$0
0

Total Payroll

$7,833

$12,000

$0

$0

$0

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Lansing Aviation, LLC

7.0 Financial Plan

We want to finance our aircraft loan through cash flow from our aircraft rental.
We want to pay for our engine overhaul at the recommended TBO through cash savings
acquired during our aircraft rental.
In order to attract larger sums of money, we will offer a 10-hour block of aircraft rental for
$730 ($73/hour) which is reduced from our normal rental rate of $75 per hour. Additionally,
we will offer M-GLAS employees the same $73 per hour rate for block or non-block rentals.

7.1 Important Assumptions


The financial plan depends on the number of revenue hours flown each month in our aircraft.
The most important assumptions crucial to our success are:

The aircraft will maintain flying status other than routine, required inspections lasting a day
or two.
We will not have any major aircraft accidents or incidents that will result in major downtime.
We also assume that student pilot starts will continue to increase and the demand for pilots
will continue.

Table: General Assumptions

General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other

Year 1

Year 2

Year 3

Year 4

Year 5

1
10.00%
10.00%
28.17%
0

2
10.00%
10.00%
28.00%
0

3
10.00%
10.00%
28.17%
0

4
10.00%
10.00%
28.00%
0

5
10.00%
10.00%
28.17%
0

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Lansing Aviation, LLC

7.2 Break-even Analysis


Breaking down our monthly fixed costs enables us to calculate how much the aircraft needs to
be flown each month to maintain profitability. Our monthly fixed costs include:

Hangar rental.
Aircraft insurance.
Engine overhaul fund.
Aircraft loan payments.
Routine aircraft maintenance and inspection costs.
Estimated monthly fuel costs.

The following chart and table summarizes our break-even analysis.

Chart: Break-even Analysis

Break-even Analysis
$3,000
$2,000
$1,000
$0
($1,000)
($2,000)
($3,000)
$0

$1,200
$600

$2,400
$1,800

$3,600
$3,000

$4,800
$4,200

$6,000
$5,400

$6,600

Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even

$3,447

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

0%
$3,447

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Lansing Aviation, LLC

7.3 Projected Profit and Loss


With monthly fixed costs of hangar rent, renter and instructor insurance, an engine overhaul
fund, aircraft loan, planned maintenance and inspections, and fuel, we can actively market our
aircraft to obtain the correct number of students to exceed our expenses while making the
aircraft convenient for the students to schedule for training and rental.
A loss is expected for the first few months while a student base is carefully chosen and
constructed. We hope to increase our number of flight hours flown each month by 25% until
the break-even point is reached. At that time, we will assess the number of students and the
number of hours being flown to determine how many more students and renters we want to
increase our profits and maintain good aircraft availability.
NOTE: You will notice in the year 2003 that the company is showing a net loss for the year.
This is the year that we estimate the aircraft engine will require a factory overhaul. This
expense ranges from $13,000 to $20,000, depending on several variables. Therefore, we have
chosen to show an overhaul expense of $15,000 for that year. However, this was only shown to
demonstrate the effect of not properly saving for the overhaul expense. We have allocated a
certain percentage of each flight hour toward the engine overhaul savings fund which will cover
all of our expenses, thus, hopefully returning Lansing Aviation to a net profit for 2003.
Table: Profit and Loss

Pro Forma Profit and Loss


Year 1

Year 2

Year 3

Year 4

Year 5

$49,068
$0
$0
$0

$54,007
$0
$0
$0

$55,392
$0
$0
$0

$50,776
$0
$0
$0

$60,931
$0
$0
$0

$49,068
100.00%

$54,007
100.00%

$55,392
100.00%

$50,776
100.00%

$60,931
100.00%

Payroll
Sales and Marketing and Other Expenses
Depreciation
Fixed Operations Costs
Leased Equipment
Utilities
Insurance
Payroll Taxes
Aircraft Upgrades
Mainenance and Repairs

$7,833
$0
$3,300
$27,530
$0
$0
$0
$0
$1,500
$1,200

$12,000
$0
$3,600
$27,530
$0
$0
$0
$0
$0
$0

$0
$0
$3,600
$27,530
$0
$0
$0
$0
$0
$0

$0
$0
$3,600
$27,530
$0
$0
$0
$0
$0
$15,000

$0
$0
$3,600
$27,530
$0
$0
$0
$0
$0
$0

Total Operating Expenses

$41,363

$43,130

$31,130

$46,130

$31,130

Profit Before Interest and Taxes


EBITDA
Interest Expense
Taxes Incurred

$7,705
$11,005
$3,188
$1,273

$10,877
$14,477
$2,791
$2,264

$24,262
$27,862
$2,413
$6,154

$4,646
$8,246
$2,035
$731

$29,801
$33,401
$1,657
$7,927

$3,244
6.61%

$5,822
10.78%

$15,695
28.33%

$1,880
3.70%

$20,217
33.18%

Sales
Direct Cost of Sales
Other
Total Cost of Sales
Gross Margin
Gross Margin %

Expenses

Net Profit
Net Profit/Sales

Page 18

Lansing Aviation, LLC

Chart: Profit Monthly

Profit Monthly
$1,000
$800
$600
$400
$200
$0
($200)
Month 1

Month 3
Month 2

Month 5
Month 4

Month 7
Month 6

Month 8

Month 9
Month 11
Month 10
Month 12

Chart: Profit Yearly

Profit Yearly
$20,000
$18,000
$16,000
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
Year 1

Year 2

Year 3

Year 4

Year 5

Page 19

Lansing Aviation, LLC

Chart: Gross Margin Monthly

Gross Margin Monthly


$6,000
$5,000

$4,000
$3,000
$2,000

$1,000
$0
Month 1

Month 3
Month 2

Month 5
Month 4

Month 7
Month 6

Month 8

Month 9
Month 11
Month 10
Month 12

Chart: Gross Margin Yearly

Gross Margin Yearly


$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
Year 1

Year 2

Year 3

Year 4

Year 5

Page 20

Lansing Aviation, LLC

7.4 Projected Cash Flow


The following cash flow projections show the amounts anticipated from the first few months
during the student accumulation period through the company's rental saturation.
Cash flow is critical to our success, for payment of the insurance and aircraft loan payments as
well as the fuel costs required to operate and the hangar to house the airplane.

Chart: Cash

Cash
$8,000
$7,000
$6,000
$5,000

Net Cash Flow

$4,000

Cash Balance

$3,000
$2,000
$1,000
$0
Month 1
Month 3
Month 5
Month 7
Month 9
Month 11
Month 2
Month 4
Month 6
Month 8
Month 10 Month 12

Page 21

Lansing Aviation, LLC

Table: Cash Flow

Pro Forma Cash Flow


Year 1

Year 2

Year 3

Year 4

Year 5

$49,068
$49,068

$54,007
$54,007

$55,392
$55,392

$50,776
$50,776

$60,931
$60,931

$0
$0
$0
$0
$0
$0
$0
$49,068

$0
$0
$0
$0
$0
$0
$0
$54,007

$0
$0
$0
$0
$0
$0
$0
$55,392

$0
$0
$0
$0
$0
$0
$0
$50,776

$0
$0
$0
$0
$0
$0
$0
$60,931

Year 1

Year 2

Year 3

Year 4

Year 5

$7,833
$31,725
$39,558

$12,000
$32,873
$44,873

$0
$35,808
$35,808

$0
$44,540
$44,540

$0
$37,787
$37,787

$0
$0
$0
$2,600
$0
$0
$0
$42,158

$0
$0
$0
$3,780
$0
$0
$0
$48,653

$0
$0
$0
$3,780
$0
$0
$0
$39,588

$0
$0
$0
$3,780
$0
$0
$0
$48,320

$0
$0
$0
$3,780
$0
$0
$0
$41,567

$6,910
$7,210

$5,354
$12,564

$15,804
$28,367

$2,456
$30,823

$19,364
$50,188

Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance

Page 22

Lansing Aviation, LLC

7.5 Projected Balance Sheet


The balance sheet in the following table shows some very important information regarding our
short-term and long-term financial goals.
Table: Balance Sheet

Pro Forma Balance Sheet


Year 1

Year 2

Year 3

Year 4

Year 5

$7,210
$0
$7,210

$12,564
$0
$12,564

$28,367
$0
$28,367

$30,823
$0
$30,823

$50,188
$0
$50,188

$36,000
$3,300
$32,700
$39,910

$36,000
$6,900
$29,100
$41,664

$36,000
$10,500
$25,500
$53,867

$36,000
$14,100
$21,900
$52,723

$36,000
$17,700
$18,300
$68,488

Year 1

Year 2

Year 3

Year 4

Year 5

$2,966
$0
$0
$2,966

$2,678
$0
$0
$2,678

$2,967
$0
$0
$2,967

$3,723
$0
$0
$3,723

$3,050
$0
$0
$3,050

Long-term Liabilities
Total Liabilities

$29,800
$32,766

$26,020
$28,698

$22,240
$25,207

$18,460
$22,183

$14,680
$17,730

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital

$10,450
($6,550)
$3,244
$7,144
$39,910

$10,450
($3,306)
$5,822
$12,965
$41,664

$10,450
$2,515
$15,695
$28,660
$53,867

$10,450
$18,210
$1,880
$30,540
$52,723

$10,450
$20,090
$20,217
$50,757
$68,488

$7,144

$12,965

$28,660

$30,540

$50,757

Assets
Current Assets
Cash
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

Net Worth

Page 23

Lansing Aviation, LLC

7.6 Business Ratios


We expect to see flat ratios of profitability during the first year while we build our customer
base. We expect these ratios to improve in the second and succeeding years. The following
table shows the projected ratios for Lansing Aviation. The Industry Profile comes from Standard
Industry Code #8299, Schools and Educational Services.
Table: Ratios

Ratio Analysis
Year 1

Year 2

Year 3

Year 4

Year 5

Industry Profile

n.a.

10.07%

2.56%

-8.33%

20.00%

9.50%

Other Current Assets


Total Current Assets
Long-term Assets
Total Assets

0.00%
18.06%
81.94%
100.00%

0.00%
30.16%
69.84%
100.00%

0.00%
52.66%
47.34%
100.00%

0.00%
58.46%
41.54%
100.00%

0.00%
73.28%
26.72%
100.00%

45.60%
62.40%
37.60%
100.00%

Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth

7.43%
74.67%
82.10%
17.90%

6.43%
62.45%
68.88%
31.12%

5.51%
41.29%
46.79%
53.21%

7.06%
35.01%
42.07%
57.93%

4.45%
21.43%
25.89%
74.11%

43.30%
17.30%
60.60%
39.40%

100.00%
100.00%
81.12%

100.00%
100.00%
75.41%

100.00%
100.00%
73.39%

100.00%
100.00%
102.00%

100.00%
100.00%
72.25%

100.00%
0.00%
73.80%

60.14%
15.70%

58.82%
20.14%

57.35%
43.80%

62.57%
9.15%

57.35%
48.91%

5.00%
3.20%

2.43
2.43
82.10%
63.23%
11.32%

4.69
4.69
68.88%
62.37%
19.41%

9.56
9.56
46.79%
76.23%
40.56%

8.28
8.28
42.07%
8.55%
4.95%

16.45
16.45
25.89%
55.45%
41.09%

1.33
1.11
60.60%
5.50%
14.00%

Sales Growth
Percent of Total Assets

Percent of Sales
Sales
Gross Margin
Selling, General & Administrative
Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Additional Ratios

Year 1

Year 2

Year 3

Year 4

Year 5

Net Profit Margin


Return on Equity

6.61%
45.41%

10.78%
44.90%

28.33%
54.76%

3.70%
6.16%

33.18%
39.83%

n.a
n.a

11.70
27
1.23

12.17
32
1.30

12.17
29
1.03

12.17
27
0.96

12.17
33
0.89

n.a
n.a
n.a

4.59
0.09

2.21
0.09

0.88
0.12

0.73
0.17

0.35
0.17

n.a
n.a

$4,244
2.42

$9,885
3.90

$25,400
10.05

$27,100
2.28

$47,137
17.98

n.a
n.a

0.81
7%
2.43

0.77
6%
4.69

0.97
6%
9.56

1.04
7%
8.28

1.12
4%
16.45

n.a
n.a
n.a

Activity Ratios
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test

Page 24

Lansing Aviation, LLC

Sales/Net Worth
Dividend Payout

6.87
0.00

4.17
0.00

1.93
0.00

1.66
0.00

1.20
0.00

n.a
n.a

7.7 Long-term Plan


Our long-term plan is based primarily on the short-term future of the business. If the aircraft is
able to support its expenses, then the future of Lansing Aviation and our long-term goal plan
can be successfully accomplished.
Our long-term plan contains the following elements:

Paying off the entire aircraft loan in the first three years of operation.
Acquiring partial ownership of a twin-engine aircraft for training and travel needs.
Avoiding accident, incident, and lawsuit through our entire longevity.
Providing present and future students and renters with a superlative aircraft for all of their
flying needs.

Page 25

Appendix
Table: Sales Forecast

Sales Forecast
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$1,500
$0
$1,500

$3,000
$0
$3,000

$3,750
$0
$3,750

$4,500
$0
$4,500

$5,625
$0
$5,625

$5,625
$0
$5,625

$4,875
$0
$4,875

$4,875
$0
$4,875

$4,875
$0
$4,875

$4,875
$0
$4,875

$4,875
$0
$4,875

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Sales
Aircraft Rental
Other
Total Sales
Direct Cost of Sales

0%
0%

$693
$0
$693
Month 1

Aircraft Rental

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Other

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Subtotal Direct Cost of Sales

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Page 1

Appendix
Table: Personnel

Personnel Plan
Month 1
Owner
Name or title
Name or title
Other
Total People
Total Payroll

0%
0%
0%
0%

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$0
$0
$0
$0
0

Month 2
$0
$0
$0
$0
0

Month 3
$0
$0
$0
$0
0

Month 4
$0
$0
$0
$0
0

Month 5
$833
$0
$0
$0
0

$1,000
$0
$0
$0
0

$1,000
$0
$0
$0
0

$1,000
$0
$0
$0
0

$1,000
$0
$0
$0
0

$1,000
$0
$0
$0
0

$1,000
$0
$0
$0
0

$1,000
$0
$0
$0
0

$0

$0

$0

$0

$833

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

Page 2

Appendix
Table: General Assumptions

General Assumptions
Plan Month

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

10

11

Month 12
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
Tax 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%

30.00%

28.00%

28.00%

28.00%

28.00%

28.00%

28.00%

28.00%

28.00%

28.00%

28.00%

28.00%

Other

Page 3

Appendix
Table: Profit and Loss

Pro Forma Profit and


Loss
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$693

$1,500

$3,000

$3,750

$4,500

$5,625

$5,625

$4,875

$4,875

$4,875

$4,875

$4,875

Direct Cost of Sales

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Other

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Cost of Sales

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales

Gross Margin

$693

$1,500

$3,000

$3,750

$4,500

$5,625

$5,625

$4,875

$4,875

$4,875

$4,875

$4,875

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

Payroll

$0

$0

$0

$0

$833

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

Sales and Marketing and


Other Expenses
Depreciation

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

Fixed Operations Costs

$0

$1,300

$2,623

$2,623

$2,623

$2,623

$2,623

$2,623

$2,623

$2,623

$2,623

$2,623

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

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$200

$0
$0
$0

$0
$0
$500

$0
$0
$0

$0
$0
$500

$0
$500
$0

$0
$0
$0

$0
$1,000
$0

$0
$0
$0

$0

$1,600

$2,923

$3,123

$3,756

$4,423

$3,923

$4,423

$4,423

$3,923

$4,923

$3,923

$77

$627

$744

$1,202

$1,702

$452

$452

$952

Gross Margin %

Expenses

Payroll Taxes
Aircraft Upgrades
Mainenance and Repairs
Total Operating
Expenses
Profit Before Interest and
Taxes
EBITDA

0%
15%

$693

($100)

($48)

$952

$693

$200

$377

$927

$1,044

$1,502

$2,002

$752

$752

$1,252

$252

$1,252

Interest Expense

$270

$270

$270

$270

$270

$270

$270

$270

$265

$260

$255

$248

Taxes Incurred

$127

($104)

($54)

$100

$133

$261

$401

$51

$52

$194

($85)

$197

Net Profit
Net Profit/Sales

$296

($266)

42.73%

-17.76%

($139)
-4.63%

$257

$341

$671

$1,031

$131

$135

$498

6.85%

7.58%

11.93%

18.33%

2.69%

2.76%

10.22%

($218)
-4.48%

$507
10.39%

Page 4

Appendix
Table: Cash Flow

Pro Forma Cash Flow


Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Cash Received
Cash from Operations
Cash Sales

$693

$1,500

$3,000

$3,750

$4,500

$5,625

$5,625

$4,875

$4,875

$4,875

$4,875

$4,875

Subtotal Cash from Operations

$693

$1,500

$3,000

$3,750

$4,500

$5,625

$5,625

$4,875

$4,875

$4,875

$4,875

$4,875

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

New Other Liabilities (interest-free)

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Long-term Liabilities

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales of Other Current Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales of Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Investment Received

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$693

$1,500

$3,000

$3,750

$4,500

$5,625

$5,625

$4,875

$4,875

$4,875

$4,875

$4,875

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Additional Cash Received


Sales Tax, VAT, HST/GST Received
New Current Borrowing

Subtotal Cash Received


Expenditures

0.00%

Month 1

Expenditures from Operations


Cash Spending

$0

$0

$0

$0

$833

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

Bill Payments

$13

$433

$1,512

$2,851

$3,187

$3,047

$3,642

$3,299

$3,444

$3,428

$3,101

$3,769

Subtotal Spent on Operations

$13

$433

$1,512

$2,851

$4,020

$4,047

$4,642

$4,299

$4,444

$4,428

$4,101

$4,769

Sales Tax, VAT, HST/GST Paid Out

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Principal Repayment of Current


Borrowing
Other Liabilities Principal
Repayment
Long-term Liabilities Principal
Repayment
Purchase Other Current Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$600

$600

$600

$800

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Purchase Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Dividends

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$13

$433

$1,512

$2,851

$4,020

$4,047

$4,642

$4,299

$5,044

$5,028

$4,701

$5,569

$680

$1,067

$1,488

$899

$480

$1,578

$983

$576

($153)

$174

Additional Cash Spent

Subtotal Cash Spent


Net Cash Flow

($169)

($694)

Page 5

Appendix
Cash Balance

$980

$2,047

$3,535

$4,434

$4,914

$6,492

$7,475

$8,051

$7,883

$7,729

$7,904

$7,210

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Table: Balance Sheet

Pro Forma Balance Sheet


Month 1
Assets

Starting
Balances

Current Assets
Cash
Other Current Assets
Total Current Assets

$300
$0
$300

$980
$0
$980

$2,047
$0
$2,047

$3,535
$0
$3,535

$4,434
$0
$4,434

$4,914
$0
$4,914

$6,492
$0
$6,492

$7,475
$0
$7,475

$8,051
$0
$8,051

$7,883
$0
$7,883

$7,729
$0
$7,729

$7,904
$0
$7,904

$7,210
$0
$7,210

$36,000
$0
$36,000
$36,300

$36,000
$0
$36,000
$36,980

$36,000
$300
$35,700
$37,747

$36,000
$600
$35,400
$38,935

$36,000
$900
$35,100
$39,534

$36,000
$1,200
$34,800
$39,714

$36,000
$1,500
$34,500
$40,992

$36,000
$1,800
$34,200
$41,675

$36,000
$2,100
$33,900
$41,951

$36,000
$2,400
$33,600
$41,483

$36,000
$2,700
$33,300
$41,029

$36,000
$3,000
$33,000
$40,904

$36,000
$3,300
$32,700
$39,910

Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$0
$0
$0
$0

$384
$0
$0
$384

$1,418
$0
$0
$1,418

$2,744
$0
$0
$2,744

$3,087
$0
$0
$3,087

$2,925
$0
$0
$2,925

$3,532
$0
$0
$3,532

$3,184
$0
$0
$3,184

$3,329
$0
$0
$3,329

$3,326
$0
$0
$3,326

$2,974
$0
$0
$2,974

$3,667
$0
$0
$3,667

$2,966
$0
$0
$2,966

Long-term Liabilities
Total Liabilities

$32,400
$32,400

$32,400
$32,784

$32,400
$33,818

$32,400
$35,144

$32,400
$35,487

$32,400
$35,325

$32,400
$35,932

$32,400
$35,584

$32,400
$35,729

$31,800
$35,126

$31,200
$34,174

$30,600
$34,267

$29,800
$32,766

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital

$10,450
($6,550)
$0
$3,900
$36,300

$10,450
($6,550)
$296
$4,196
$36,980

$10,450
($6,550)
$30
$3,930
$37,747

$10,450
($6,550)
($109)
$3,791
$38,935

$10,450
($6,550)
$148
$4,048
$39,534

$10,450
($6,550)
$489
$4,389
$39,714

$10,450
($6,550)
$1,160
$5,060
$40,992

$10,450
($6,550)
$2,191
$6,091
$41,675

$10,450
($6,550)
$2,322
$6,222
$41,951

$10,450
($6,550)
$2,457
$6,357
$41,483

$10,450
($6,550)
$2,955
$6,855
$41,029

$10,450
($6,550)
$2,737
$6,637
$40,904

$10,450
($6,550)
$3,244
$7,144
$39,910

$3,900

$4,196

$3,930

$3,791

$4,048

$4,389

$5,060

$6,091

$6,222

$6,357

$6,855

$6,637

$7,144

Net Worth

Page 6