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FINANCIAL PLAN

OF GOLDEN SPOON
ICECREAM

The Golden Spoon ICECRE expects to raise


of its own capital, and
to borrow
guaranteed by the AWAKE as a ten-year loan. This
provides the bulk of the current financing required.

BREAK EVEN ANALYSIS


The Golden Spoon Ice-cream Break-even Analysis is based on the average
of the first-year figures for total sales by units, and by operating expenses.
These are presented as per-unit revenue, per-unit cost, and fixed
costs. These conservative assumptions make for a more accurate estimate of
real risk. Golden Spoon Ice-cream should break even by the fourth month of
its operation as it steadily increases its sales.

PROJECTED PROFIT
AND LOSS

Particulars

Year 1

Year 2

Year 3

Sales

491,000

567,105

655,006

Direct Cost of Sales

76,750

88,646

102,386

Other

Total Cost of Sales

76,750

88,646

102,386

Gross Margin

414,250

478,459

552,620

Gross Margin %

84.37%

84.37%

84.37%

Payroll

260,800

273,840

287,532

Sales and Marketing and Other Expenses

27,000

35,200

71,460

Expenses

Depreciation

60,000

69,000

79,350

Utilities

1,200

1,260

1,323

Payroll Taxes

39,120

41,076

43,130

Other

Total Operating Expenses

388,120

420,376

482,795

Profit Before Interest and Taxes

26,130

58,083

69,825

EBITDA

86,130

127,083

149,175

Interest Expense

10,000

9,500

8,250

Taxes Incurred

3,111

12,146

15,650

Net Profit

13,019

36,437

45,925

PROJECTED CASH FLOW


The cash flow projection shows that provisions for ongoing expenses
are adequate to meet Golden Spoon Icecream needs as the
business generates cash flow sufficient to support operations.

CASH FLOW STATEMENT


Particulars

Year 1

Year 2

Year 3

Cash Received

Cash from Operations


Cash Sales

491,000

567,105

655,006

Subtotal Cash from Operations

491,000

567,105

655,006

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

491,000

567,105

655,006

Additional Cash Received

Expenditures

Year 1

Year 2

Year 3

Expenditures from Operations

Cash Spending

260,800

273,840

287,532

Bill Payments

143,607

186,964

237,731

Subtotal Spent on Operations

404,407

460,804

525,263

Sales Tax, VAT, HST/GST Paid Out

Principal Repayment of Current Borrowing

Other Liabilities Principal Repayment

Long-term Liabilities Principal Repayment

10,000

15,000

Purchase Other Current Assets

Purchase Long-term Assets

20,000

20,000

Dividends

Subtotal Cash Spent

404,407

490,804

560,263

Net Cash Flow

86,593

76,301

94,744

Cash Balance

156,593

232,894

327,637

Additional Cash Spent

PROJECTED BALANCE
SHEET
Particulars

Year 1

Year 2

Year 3

Assets
Current Assets
Cash

156,593

232,894

327,637

Other Current Assets

12,000

12,000

12,000

Total Current Assets

168,593

244,894

339,637

Long-term Assets

65,000

85,000

105,000

Accumulated Depreciation

60,000

129,000

208,350

Total Long-term Assets

5,000

(44,000)

(103,350)

Total Assets

173,593

200,894

236,287

Long-term Assets

Liabilities and Capital

Year 1

Year 2

Year 3

Current Liabilities
Accounts Payable

14,574

15,438

19,907

Current Borrowing

Other Current Liabilities

Subtotal Current Liabilities

14,574

15,438

19,907

Long-term Liabilities

100,000

90,000

75,000

Total Liabilities

114,574

105,438

94,907

Paid-in Capital

110,000

110,000

110,000

Retained Earnings

(64,000)

(50,981)

(14,544)

Earnings

13,019

36,437

45,925

Total Capital

59,019

95,456

141,381

Total Liabilities and Capital

173,593

200,894

236,287

Net Worth

59,019

95,456

141,381