Cakes Tell Stories

Business Plan
Cakes Tell Stories
www.cakes-tell-stories.com
8687 Midland Pkwy

Jamaica Estates, NY 11432
1 718 690 6392
cakes.tell.stories@gmail.com
Legal Page
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by Cakes Tell Stories in this business
plan is confidential; therefore, reader agrees not to disclose it without the express written permission of
Cakes Tell Stories.
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 Cakes Tell Stories.
Upon request, this document is to be immediately returned to Cakes Tell Stories.
___________________
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 ...............................................................................................................2
1.1 Objectives.........................................................................................................................2
1.2 Mission ...............................................................................................................................2
1.3 Keys to Success .............................................................................................................2
2.0 Company Summary ..........................................................................................................2
2.1 Company Ownership ....................................................................................................3
2.2 Start-up Summary ........................................................................................................3
Table: Start-up...................................................................................................................3
Chart: Start-up ..................................................................................................................4
3.0 Products ................................................................................................................................4
4.0 Market Analysis Summary .............................................................................................5
4.1 Market Segmentation ..................................................................................................5
Table: Market Analysis ....................................................................................................6
Chart: Market Analysis (Pie) .........................................................................................6
4.2 Target Market Segment Strategy ...........................................................................6
4.3 Industry Analysis ...........................................................................................................7
4.3.1 Competition and Buying Patterns ...................................................................7
5.0 Web Plan Summary ..........................................................................................................8
5.1 Website Marketing Strategy ......................................................................................8
5.2 Development Requirements ......................................................................................9
6.0 Strategy and Implementation Summary .................................................................9
6.1 SWOT Analysis ...............................................................................................................9
6.1.1 Strengths ..................................................................................................................9
6.1.2 Weaknesses .............................................................................................................9
6.1.3 Opportunities ........................................................................................................10
6.1.4 Threats ....................................................................................................................10
6.2 Competitive Edge ........................................................................................................10
6.3 Marketing Strategy .....................................................................................................10
6.4 Sales Strategy ..............................................................................................................10
6.4.1 Sales Forecast.......................................................................................................11
Table: Sales Forecast ................................................................................................12
Chart: Sales Monthly .................................................................................................13
Page 1
Table of Contents
Chart: Sales by Year ..................................................................................................13

6.5 Milestones.......................................................................................................................14
Table: Milestones ............................................................................................................14
Chart: Milestones ............................................................................................................14
7.0 Management Summary .................................................................................................14
7.1 Personnel Plan ..............................................................................................................15
Table: Personnel ..............................................................................................................15
8.0 Financial Plan ....................................................................................................................15
8.1 Start-up Funding .........................................................................................................15
Table: Start-up Funding ...............................................................................................16
8.2 Important Assumptions ............................................................................................16
8.3 Break-even Analysis ...................................................................................................17
Table: Break-even Analysis.........................................................................................17
8.4 Projected Profit and Loss ..........................................................................................17
Table: Profit and Loss ....................................................................................................18
Chart: Profit Monthly .....................................................................................................19
Chart: Profit Yearly .........................................................................................................19
Chart: Gross Margin Monthly......................................................................................20
Chart: Gross Margin Yearly .........................................................................................20
8.5 Projected Cash Flow ...................................................................................................21
Table: Cash Flow .............................................................................................................22
Chart: Cash .......................................................................................................................23
8.6 Projected Balance Sheet ...........................................................................................23
Table: Balance Sheet .....................................................................................................23
8.7 Business Ratios ............................................................................................................24
Table: Ratios .....................................................................................................................24
8.8 Long-term Plan .............................................................................................................25
Table: Sales Forecast ..............................................................................................................1
Table: Personnel ........................................................................................................................2
Table: Profit and Loss ..............................................................................................................3
Table: Cash Flow .......................................................................................................................4
Table: Balance Sheet ...............................................................................................................6
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Cakes Tell Stories
1.0 Executive Summary

Cakes Tell Stories aims to give cakes a whole new dimension. Located at the heart of New
York, the financial and marketing capital of the world, it will be a unique bakery for its
creative custom-made cakes and its relationship with its customers. Whether it's an
extravagant wedding, or a fun birthday cake, we like to talk to our customers and get a feel
for what they want. Our mission is to be a cornerstone in creating a unique bakery
where customers tell their stories and watch their stories turn into cakes. We are sensitive
to each and every persons stories, empathize with them and portray that story in a cake.
Our cakes not only change their looks with every customer but also tastes delicious and are
inexpensive. We seek fair and responsible profit, enough to keep the company financially
healthy.
Owner and founder of Cakes Tell Stories is starting the business with only $20,000 in their
pocket. But the company has a start-up requirement of about $130k, which will be spent in
leasing a store-front, registering the business, acquiring insurance, purchasing equipment
for set-up, for e.g., convention oven, microwave oven, fridge, computer etc., which are the
long term assets of the company. Other assets include electronics like mixers, blenders etc.,
and utensils like pans, spatula etc., while inventory includes flour, sugar, fondant, gum
paste etc. A major portion of the start-up expense also goes into marketing and advertising.
The major source of the fund will come from the investors, with an equity investment of
$100,000. Other sources include short and long term loans, a short term liability or bank
loan of $25k and a long term liability of $50k.
In the projections for Cakes Tell Stories, the company starts off with yearly sales of about
$228.55 thousand in its first year of operation. With the growth in business and expansion
into other lines, Cakes Tell Stories manages to earn revenue of about $455 thousand in the
fifth year. The company will have a high gross margin of about 85% almost throughout
its five years of projections, which seems to leaves enough room for its fixed expenses and
other administrative or operating expenses. In the first year, Cakes Tell Stories is projected
to have a loss after paying its operating expenses, taxes and interest payments. But, it is
projected to turn a net profit of almost 10% in the second year, which increases to almost
20% by the end of fifth year.
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Cakes Tell Stories
Chart: Highlights
1.1 Objectives
1. To establish a strong presence in the market as a unique bakery.
2. To specialize in cakes those are different from any other cakes available in the
market.
3. To establish a storefront by the end of summer 2011
1.2 Mission
Cakes Tell Stories aims to be a cornerstone in creating a unique bakery
where customers tell their stories and watch their stories turn into cakes. We are
sensitive to each and every customer's stories, empathize with them and portray that
story in a cake. Our cakes not only change their looks with every customer but also
tastes delicious and are inexpensive. We seek fair and responsible profit, enough to keep
the company financially healthy.
1.3 Keys to Success
1. Creativity
2. Low price and
3. Relationship with customers
2.0 Company Summary
Cakes Tell Stories will be located in the heart of New York City, delivering cakes though
out New York Metro area every day of the week. It will be unique for its creative
custom-made cakes and its relationship with its customers. Whether it's an extravagant
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Cakes Tell Stories
wedding, or a fun birthday cake, we like to talk to our customers and get a feel for what
they want. We make sure the cake reflects their personal style, the event and the story
behind it. We emphasize on presentation, detail and taste.
2.1 Company Ownership

Cakes Tell Stories will be a one-member Limited Liability Corporation. Ms. Sumaiya
Zaman will be the only founding member at the time of its formation.
2.2 Start-up Summary
Like any other start-up, Cakes Tell Stories have the usual start-up costs of registering
the company, attaining the license, and since it is registered as an LLC, there is also the
cost of publishing the legal notice in the newspapers. In addition, a store front along
with work space will be leased. The place will be refurbished and equipped with modern
convention ovens, microwave ovens, fridge etc. Other initial costs will include electronics
like mixers, beaters, along with cake pans, utensils etc. Inventory mainly comprises of
flour, baking powder, oil, butter, eggs, sugar, salt, fondant, gum paste and many more.
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Insurance
Lease
Computer
Marketing
Other
Total Start-up Expenses
$5,000
$5,000
$25,000
$2,000
$14,000
$5,000
$56,000
Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets
$20,000
$25,000
$5,000
$25,000
$75,000
Total Requirements
$131,000
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Cakes Tell Stories
Chart: Start-up
3.0 Products
As the name suggests, Cakes Tell Stories sells cakes, but not just any cake, it sells
cakes that are unique and creative in their own ways. The cakes are custom-made and
are made after listening to the tale of each customer. Whether it's a wedding, baby
shower, anniversary or a birthday party, every occasion has a theme, and stories behind
them. We listen to them, relate to them, form a relationship with them and try to make
the cake from their point of view. We make sure the cake reflects their personal style,
the event and the story behind it. Presentation is key for us, we pay close attention to
details and last but not the least, and we make the cakes taste delicious too.
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Cakes Tell Stories
4.0 Market Analysis Summary

The target market for Cakes Tell Stories are the middle-class population and highincome professionals in New York metropolitan area, who appreciate the finer things in
life, and are willing to pay for them. They value relationships, art, great food and wine,
organic fruits and vegetables, delicious desserts made from scratch. The company will
not chase the $15-cake market; the same group that prefers convenience and low
prices. But it would be wrong to say that those who buy cakes from the grocery store
will not order cakes to Cakes Tell Stories. We sell cakes for special occasions, and those
who buy cakes from mom and pop bakeries or groceries on a daily basis will also order
cakes to Cakes Tell Stories once in a while.
Customers who appreciate a homemade treat made from scratch, using only fresh, high
quality ingredients will also fall in the target market. When considering the social
ladder, this target market will be members of the middle class and upper middle class
group, white collar workers. Price is not an issue for them. They would be willing to
pay a decent amount for a unique, creative and impressive as well as
delicious homemade cake. And since many of them are health-conscious, when they do
have the occasional sweet treat, they want it to be heavenly.
The target market has no age limit; it could be moms ordering cakes for their toddlers,
husbands surprising their wives on their birthdays, couples celebrating their 50th
anniversary, friends preparing for a baby-shower or a bridal-shower. But, one thing is
common in all of them, they all value relationships, they all have a story to tell, they all
want their cakes to represent that story.
4.1 Market Segmentation

The market segmentation for Cakes Tell Stories is a little different from the usual
segmentation by demographics. It is not a direct behavioral pattern either. We decided
to segment our target market based on the different occasions they will order cakes on.
Of coarse, first in the list comes birthdays and anniversaries. For birthdays, we targeted
a portion of the households in New York City with children less than 18 years
(1,026,091), who have income more than $45,000 per annum. While for anniversaries,
we targeted the same portion of married couple in New York City (1,124,305), who
have above average income. We rounded all our numbers for ease of calculations. The
bridal shower, baby shower, wedding, graduation etc. are the other smaller but
important sectors.
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Cakes Tell Stories
Table: Market Analysis
Market Analysis
2011
Potential
Customers
Anniversary
Birthdays
Bridal shower/
baby shower
Wedding
Mother's day
Graduation
Holiday/ Seasonal
Total
2012
2013
2014
2015
Growth
CAGR
1%
3%
2%
100,000
500,000
50,000
101,000
512,500
51,000
102,010
525,313
52,020
103,030
538,446
53,060
104,060
551,907
54,121
1.00%
2.50%
2.00%
2%
3%
2%
1%
2.20%
80,000
25,000
75,000
10,000
840,000
81,600
25,750
76,500
10,100
858,450
83,232
26,523
78,030
10,201
877,329
84,897
27,319
79,591
10,303
896,646
86,595
28,139
81,183
10,406
916,411
2.00%
3.00%
2.00%
1.00%
2.20%
Chart: Market Analysis (Pie)
4.2 Target Market Segment Strategy

Initially Cakes Tell Stories will target the Anniversary and Birthday target markets,
followed by the Bridal Shower, Baby Shower and Graduation cakes in the second year
and finally in the 4th year it will start making wedding cakes as well. The reason Cakes
Tell Stories decided to target only the Anniversary and Birthday cakes for the first couple
of years, is because these are the largest sectors and are expected to have repeat
purchases each year by the same customers. This will help them create brand loyalty as
well as a brand image for the company resulting in a higher growth rate.
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Cakes Tell Stories
The bridal or baby shower sectors will grow from the image already built through the
birthday and anniversary segments. These sectors are less likely to have repeat
purchases but will grow through word-of-mouth. Even though a very important sector
for any bakery is the wedding segment, Cakes Tell Stories does not plan to target this
market segment until its fourth year into the business. The reasoning behind that is the
fact that by the fourth year Cakes Tell Stories plan to establish a reputable brand name
in the market as well as become an expert in the area. It will have all the necessary
tools to stand out as an outstanding bakery to serve the all important wedding-cake
market.
4.3 Industry Analysis
The US bakery industry includes about 2,800 commercial bakeries with combined annual
revenue of about $30 billion, along with about 6,000 retail bakeries with combined
annual revenue of about $3 billion. Major companies include Hostess Brands and Flowers
Foods, plus the US operations of Mexico's Grupo Bimbo. The commercial side of the
industry is concentrated: the 50 largest companies generate 75 percent of revenue. The
retail side of the industry is highly fragmented: the 50 largest companies generate about
15 percent of revenue, and the typical company operates just one facility. (Source:
hoovers.com)
4.3.1 Competition and Buying Patterns
The US bakery industry includes about 2,800 commercial bakeries with combined annual
revenue of about $30 billion, along with about 6,000 retail bakeries with combined
annual revenue of about $3 billion. Major companies include Hostess Brands and Flowers
Foods, plus the US operations of Mexico's Group Bimbo. The commercial side of the
industry is concentrated: the 50 largest companies generate 75 percent of revenue. The
retail side of the industry is highly fragmented: the 50 largest companies generate about
15 percent of revenue, and the typical company operates just one facility.
Porters Five Forces analysis is useful when trying to understand the competitive
environment facing a given industry. It involves looking at internal competition, barriers
to entry, the profit-appropriating power of both buyers and sellers, as well as substitutes
to the goods produced. Applied to the bakery industry it shows an average net profit
that typically does not cover the cost of capital due to low barriers to entry, ease of
production and ease of access to ingredients.
Internal Rivalry: There are many players in the bakery industry. The top four companies
are estimated to account for 11.7 percent of the market. The industry is characterized
by many small bakeries, but there has been a recent trend towards consolidation and
economies of scale. Businesses compete on price, quality, differentiation and
relationships with key suppliers.
Barriers to Entry: Barriers to entry in this industry are low. Economies of scale are
beneficial, but are not required for industry success. As a result, small businesses can
enter the industry with a relatively small amount of capital. The two main determinants
of a new company's success is the leaders' ability to acquire sufficient distribution
channels to cover operating costs and their ability to build up brand recognition and
loyalty. Distribution channels typically involve retail outlets, such as supermarkets and
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Cakes Tell Stories
grocery stores, and they can be more easily acquired if the bakery has an established
brand or the marketing resources to create one.
Buyers: Buyers of the bakery industry's products, such as supermarkets, grocery stores,
hotel chains and convenience stores, are able to appropriate much of the industry's
profit due to the large number of small bakeries that are all vying to find outlets for their
products. As a result, buyers are able to command low prices and volume discounts.
Only large players, such as Kraft, Kellogg, Yamazaki Baking and Grupo Bimbo, have the
power to level the playing field and achieve a more balanced share of the profits.
Suppliers: Suppliers do not have much negotiating power in the bakery business due to
the well developed markets for their products and the commoditized nature of what they
are selling. Bakeries can be affected by price swings of the raw inputs, but the changes
are a result of global supply and demand determinants rather than suppliers' negotiating
power.
Substitutes: Many substitutes exist for bakery products. Breakfast cereals, rice and
potatoes are all viable alternatives and individuals can also make all of the baked goods
they want at home. Bakeries rely upon price and convenience to keep individuals
switching to a substitute or baking what they need at home.
Source: http://www.ehow.com/about_5234246_bakery-industry-analysis.html#ixzz1ODsazdx1
5.0 Web Plan Summary

Cakes Tell Stories has already launched a website at www.cakes-tell-stories.com. This
website will play a major role in the business and will be a dynamic marketing tool for
the company. Along with marketing, it will also serve as the business development tool,
sales, catalogue, hiring and recruiting, and later expanding to other areas. It will provide
sufficient information about the company's products, pricing and other services for
target customers and potential business partners, such as affiliate programs, marketing
collateral, technical white papers, and new product updates. As the company grows, its
reach to other states or even overseas and even its recruiting needs can be addressed
by posting career opportunities and FAQs about the company. The website, cakes-tellstories.com will also communicate company news to create and maintain positive public
relations with the community and investors. The goal will be to implement a functional
and professionally designed website that can be adapted to meet the company's growing
needs.
5.1 Website Marketing Strategy
A significant amount of marketing budget will be spent on internet marketing, SEOs and
other search marketing tools to make sure Cakes Tell Stories site appears on the first
page of Google, yahoo or Bing when anyone looking for creative cakes in NY metro area.
Internet has become the major tool to search any product. Even if there is a bakery next
door to consumers, they will first look into internet whether it is through their computer,
their phone or a tablet. The company will also link the website to Facebook and LinkedIn
pages to increase traffic flow. Blogs will be added to the site as well. Last but not the
least, it will be registered in many business pages.
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5.2 Development Requirements

The website has been created through intuit.com. Any future updates or additions will
also be done through them. Intuit also offers marketing tools to help spread the
company name faster.
6.0 Strategy and Implementation Summary

Cakes Tell Stories will succeed through making high quality, unique, creative custommade cakes. It will focus on a niche market and will attempt to achieve the best
reputation in that segment.
6.1 SWOT Analysis
The SWOT analysis for Cakes Tell Stories provided us with the opportunity to analyze its
internal strengths and weaknesses against the external opportunities and threats. It
gives the company a chance to build on its strengths and work on its weaknesses by
taking advantage of the opportunities and protecting itself from the threats.
Cakes Tell Stories unique strengths of creativity and custom made cakes at lower prices
than its competitors protects its from its potential threats of new entrants. While
targeting its niche market, it also works on its weaknesses by overcoming its
dependence on the distribution system.
6.1.1 Strengths
1. Uniqueness: Cakes Tell Stories have made cakes and will continue to make cakes
that are one of a kind. , because each cake represents a person or a relationship or a
celebration by them. So, like each individual or his/her relationship with others, the
cakes are unique.
2. Creative and custom-made: The cakes are creative, and each is a piece of art.
There maybe thousands of bakeries out there, but there are only a handful of bakeries
that make as creative cakes like Cakes Tell Stories.
3. Inexpensive: Usually cakes that are unique, creative and especially custom-made
are not affordable by most people. But, Cakes Tell Stories make them inexpensive and
within the reach of middle class customers.
6.1.2 Weaknesses
1. Short-staffed: When dealing with art, a single problem lies in every field, there are
not many artists available out there. This causes the company to be short-staffed, which
eventually limits its growth and potential to higher earnings.
2. Transportation: Cakes Tell Stories only serves a limited area due to the difficulty of
transporting a cake. Cakes Tell Stories does not have an established distribution system,
which affects its reach to different clients and limits its income.
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Cakes Tell Stories
6.1.3 Opportunities
1. Changing Consumer Tastes: Changing consumer tastes have given rise to "artisan"
or gourmet cakes. Smaller bakers like Cakes Tell Stories with flexible production
facilities can capitalize on such.
2. Home-made high quality products: In the recent years, customers are becoming
more and more health conscious and prefer home-made goods made with quality
ingredients and customers are also willing to pay a high price for that. Cakes Tell Stories
produces just that.
6.1.4 Threats
1. Raw-material and energy costs volatile: The costs of major raw materials, such
as wheat, vegetable oils, fuel for delivery fleets, and natural gas for ovens, can change
rapidly. The volatility in prices of raw-materials cannot affect the end-product price, thus
shrinking the profit.
2. Competitors: Current and potential competitors are major threats for Cakes Tell
Stories. The creativity and the uniqueness of its cakes cannot be patented and can easily
be copied.
6.2 Competitive Edge
The US bakery industry is highly fragmented and is very competitive. Cakes Tell Stories'
competitive advantage comes from its uniqueness, differentiation, high quality at
a lower price, all of which are key desires for all consumers of the industry.
6.3 Marketing Strategy
Cakes Tell Stories marketing strategy will include a lot of advertising online and in the
targeted print media. We believe in target marketing and it will be aimed at getting the
right information at the right place. We will make sure that those who will appreciate the
product will know about it. To do that, it is necessary that we target the correct
psychographic segmentation.
The marketing of Cakes Tell Stories will have to very clearly convey the difference of this
bakery from others. The home-made quality, pure ingredients, great taste, unique and
beautiful design, and above-all, its capability of telling a story, representing an individual
in its designs.
6.4 Sales Strategy
Cakes Tell Stories focuses first on the increased demand of unique and creative cakes
for birthdays and anniversaries. People are so tired of having the store bought square or
round cakes for these occasions, they want something different and something that
represents them, talks about them. First of all, usually cakes which are that custommade are outrageously priced and are meant for rich people only. Cakes Tell Stories will
make the same quality cakes which are also custom-made but will give a fresh new look
to cakes. One of a kind designs and mouth-watering cakes will be affordable to the
middle-class. After establishing a brand name for its cakes through anniversary and
birthday cakes, Cakes Tell Stories will later move to more challenging bridal shower,
baby shower and graduation cakes, and when that has been attained, it will focus to the
ultimate wedding cakes in its 4th year of inception.
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Cakes Tell Stories
6.4.1 Sales Forecast

The following chart and table show our sales forecast for the first 4 years of Cakes Tell
Stories in operation. We have projected a slower growth rate initially given the fact that
it takes time to achieve recognition. The growth rate increases in the third and fourth
year of operation.
Along with the growth of its initial lines of Anniversary and Birthday cakes, in the second
year the company also expands to Bridal shower, Baby shower, Graduation and other
miscellaneous cakes. From the fourth year, it introduces its most expensive line of
Wedding cakes.
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Cakes Tell Stories
Table: Sales Forecast
Sales Forecast
Unit Sales
Birthday Cakes
Anniversary Cakes
Bridal Shower, Baby
Shower etc.
Wedding Cakes
Total Unit Sales
Unit Prices
Birthday Cakes
Anniversary Cakes
Bridal Shower, Baby
Shower etc.
Wedding Cakes
Sales
Birthday Cakes
Anniversary Cakes
Bridal Shower, Baby
Shower etc.
Wedding Cakes
Total Sales
Direct Unit Costs
Birthday Cakes
Anniversary Cakes
Bridal Shower, Baby
Shower etc.
Wedding Cakes
Direct Cost of Sales
Birthday Cakes
Anniversary Cakes
Bridal Shower, Baby
Shower etc.
Wedding Cakes
Subtotal Direct Cost of
Sales
FY 2012
FY 2013
FY 2014
FY 2015
FY 2016
350
353
0
400
400
100
450
450
150
500
500
200
500
500
200
0
703
0
900
0
1,050
50
1,250
100
1,300
FY 2012
$300.00
$350.00
$0.00
FY 2013
$300.00
$350.00
$350.00
FY 2014
$300.00
$350.00
$350.00
FY 2015
$300.00
$350.00
$350.00
FY 2016
$300.00
$350.00
$350.00
$0.00
$600.00
$600.00
$600.00
$600.00
$105,000
$123,550
$0
$120,000
$140,000
$35,000
$135,000
$157,500
$52,500
$150,000
$175,000
$70,000
$150,000
$175,000
$70,000
$0
$228,550
$0
$295,000
$0
$345,000
$30,000
$425,000
$60,000
$455,000
FY 2012
$45.00
$52.50
$0.00
FY 2013
$45.00
$52.50
$52.50
FY 2014
$45.00
$52.50
$52.50
FY 2015
$45.00
$52.50
$52.50
FY 2016
$45.00
$52.50
$52.50
$0.00
$120.00
$120.00
$120.00
$120.00
$15,750
$18,533
$0
$18,000
$21,000
$5,250
$20,250
$23,625
$7,875
$22,500
$26,250
$10,500
$22,500
$26,250
$10,500
$0
$34,283
$0
$44,250
$0
$51,750
$6,000
$65,250
$12,000
$71,250
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Chart: Sales Monthly
Chart: Sales by Year
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Cakes Tell Stories
6.5 Milestones
The accompanying table shows specific milestones, with responsibilities assigned, dates,
and budgets. The milestones represented in this plan are those which we have
determined to be the most important.
Table: Milestones
Milestones
Milestone
Start Date
End Date
Budget
Manager
Department
Initial Setup
Marketing, print
Marketing, web
Totals
6/4/2011
6/30/2011
6/30/2011
8/4/2011
9/30/2011
9/30/2011
$30,000
$5,000
$9,000
$44,000
Sumaiya
Pamela
Pamela
Planning
Marketing
Marketing
Chart: Milestones
7.0 Management Summary

At the moment, Cakes Tell Stories has only three full-time employees, including the
founder herself. She will take charge of the initial set-up and later over-all management
of the company as well as designing the cakes. A full-time employee will look over the
marketing and additional part-time employees will be hired for both marketing and
production.
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7.1 Personnel Plan

The personnel plan only shows the salary information and forecast of the current
employees. The company also plans to hire part-time employees as the company grows.
Table: Personnel
Personnel Plan
Sumaiya
Pamela
John
Total People
FY 2012
$48,000
$36,000
$36,000
3
FY 2013
$50,000
$38,000
$38,000
3
FY 2014
$55,000
$40,000
$40,000
3
FY 2015
$60,000
$43,000
$43,000
3
FY 2016
$65,000
$45,000
$45,000
3
Total Payroll
$120,000
$126,000
$135,000
$146,000
$155,000
8.0 Financial Plan

We want to finance growth in terms of increased demand through a combination of
short-term debt and cash inflow. Larger purchases of more equipment like oven, fridge,
computer etc. after full depreciation will require approximately eighty percent debt
financing (long term debt). Additional investments will be primarily financed with cashflow. Inventory turnover must remain at or above one or we run the risk of backing up
orders and jeopardizing our freshness guarantees. We have had no problems with
accounts receivable and we expect to maintain our collection days at 3 to 5 with minimal
sales on credit.
In addition, we must achieve gross margins of eighty-five percent and hold operating
costs no more than seventy-five percent of sales.
8.1 Start-up Funding
Owner and founder of Cakes Tell Stories started the business with $20,000 in their
pocket. It requires another $100k from investors to get the business on its foot. It has a
start-up expense of $56k, which will spent in leasing a place, registering the business,
acquiring insurance, purchasing equipment for set-up, for e.g., convention oven,
microwave oven, computer etc. These also fall under the long term assets of the
company. Other assets include electronics like mixers, blenders etc., and other utensils
like pans, spatula etc., while inventory includes flour, sugar, fondant, gum paste etc. A
major portion of the start-up expense goes into marketing and advertising.
The major source of the fund is the investor, with an equity investment of $100,000.
Other sources include short and long term loan, a short term liability or bank loan of
$25k and a long term liability of $50k.
Page 15
Cakes Tell Stories
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
$56,000
$75,000
$131,000
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$55,000
$20,000
$64,000
$84,000
$139,000
Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities
$25,000
$50,000
$0
$0
$75,000
Capital
Planned Investment
Owner
Investor
Additional Investment Requirement
Total Planned Investment
$20,000
$100,000
$0
$120,000
Loss at Start-up (Start-up Expenses)

Total Capital
($56,000)
$64,000
Total Capital and Liabilities
$139,000
Total Funding
$195,000
8.2 Important Assumptions

We have assumed that Cakes Tell Stories will be able to receive short term loans at the
interest rate of 8% in the current year, which will increase to 9% and 10% in year 2 and
year 3 respectively. The long term interest rate is assumed to be higher with 10% in
year 1 and 11% and 12% in the following 2 years.
The tax rate of 30% remains unchanged throughout the 3 years.
Page 16
Cakes Tell Stories
8.3 Break-even Analysis

The break-even analysis shows that Cakes Tell Stories has sufficient sales strength to
remain viable. Our break-even point is close to 60 cakes per month, which amounts to
less than $20,000 in revenue per month.
Cakes Tell Stories has high average cost of almost $16,500. Although its average
variable cost per unit is very low, the high fixed costs delay its break-even time.
Projections are detailed in the following table.
Table: Break-even Analysis
Break-even Analysis
Monthly Units Break-even
Monthly Revenue Break-even
59
$19,314
Assumptions:
Average Per-Unit Revenue
Average Per-Unit Variable Cost
Estimated Monthly Fixed Cost
$325.11
$48.77
$16,417
8.4 Projected Profit and Loss

In the projections for Cakes Tell Stories, the company starts off with yearly sales of
about $228.55 thousands in its first year of operation. With the growth in business and
expansion into other lines, Cakes Tell Stories manages to earn revenue of about $455
thousand.
Cakes Tell Stories have a high gross margin of about 85% almost throughout its five
years of projections, which seems to leave a lot of room for its fixed expenses and other
administrative or operating expenses.
In the first year, Cakes Tell Stories is projected to have a loss after paying its operating
expenses, taxes and interest payments. But, it is projected to turn a net profit of almost
10%, which increases to almost 20% by the end of fifth year.
Page 17
Cakes Tell Stories
Table: Profit and Loss
Pro Forma Profit and Loss

Sales
Other Costs of Sales
Total Cost of Sales
FY 2012
$228,550
$34,283
$0
$34,283
FY 2013
$295,000
$44,250
$0
$44,250
FY 2014
$345,000
$51,750
$0
$51,750
FY 2015
$425,000
$65,250
$0
$65,250
FY 2016
$455,000
$71,250
$0
$71,250
Gross Margin
Gross Margin %
$194,268
85.00%
$250,750
85.00%
$293,250
85.00%
$359,750
84.65%
$383,750
84.34%
Expenses
Payroll
Marketing/Promotion
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Other
$120,000
$18,000
$5,000
$24,000
$6,000
$6,000
$18,000
$0
$126,000
$15,000
$5,000
$24,000
$6,000
$6,000
$18,900
$0
$135,000
$15,000
$5,000
$24,000
$6,000
$6,000
$20,250
$0
$146,000
$20,000
$5,000
$24,000
$6,000
$6,000
$21,900
$0
$155,000
$20,000
$5,000
$24,000
$6,000
$6,000
$23,250
$0
Total Operating Expenses
$197,000
$200,900
$211,250
$228,900
$239,250
Profit Before Interest and

Taxes
EBITDA
Interest Expense
Taxes Incurred
($2,733)
$49,850
$82,000
$130,850
$144,500
$2,268
$5,375
$0
$54,850
$4,500
$13,605
$87,000
$5,500
$22,950
$135,850
$7,275
$37,073
$149,500
$12,350
$39,645
Net Profit
Net Profit/Sales
($8,107)
-3.55%
$31,745
10.76%
$53,550
15.52%
$86,503
20.35%
$92,505
20.33%
Page 18
Cakes Tell Stories
Chart: Profit Monthly
Chart: Profit Yearly
Page 19
Cakes Tell Stories
Chart: Gross Margin Monthly
Chart: Gross Margin Yearly
Page 20
Cakes Tell Stories
8.5 Projected Cash Flow

Cakes Tell Stories expects to have all its transactions through online payments, credit
cards, checks or cash, none of which have a transaction time more than a couple of days
and thus is almost as liquid as cash.
The company also expects to manage cash flow for the first year with the assistance of a
roll-over loan supported by the Astoria Federal Bank for $25,000. This financing
assistance is required to keep the flow of the working capital even throughout the year
and not being too dependent on the cash earned from the revenue. It will help meet the
current needs of running the store front smoothly, purchase inventory, pay personnel
salary, distribution costs, and other related expenses, even if the cash inflow from
revenue is not constant.
Cakes Tell Stories will borrow $50k in Long Term Loans for purchase of long term assets
like convention oven, microwave oven, fridge etc. The company will repay the loan in 5
years with equal amounts of payment each month.
Page 21
Cakes Tell Stories
Table: Cash Flow
Pro Forma Cash Flow

FY 2012
FY 2013
FY 2014
FY 2015
FY 2016
$228,550
$228,550
$295,000
$295,000
$345,000
$345,000
$425,000
$425,000
$455,000
$455,000
$19,998
$25,813
$30,187
$37,188
$39,813
$0
$0
$25,000
$0
$25,000
$0
$25,000
$0
$25,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$50,000
$0
$0
$0
$248,548
$0
$0
$345,813
$0
$0
$400,188
$0
$0
$487,188
$1,000
$0
$570,813
FY 2012
FY 2013
FY 2014
FY 2015
FY 2016
$120,000
$81,144
$201,144
$126,000
$141,458
$267,458
$135,000
$151,722
$286,722
$146,000
$190,049
$336,049
$155,000
$200,632
$355,632
$19,998
$25,813
$30,187
$37,188
$39,813
$25,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$10,000
$10,000
$10,000
$10,000
$10,000
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
Paid Out
Principal Repayment of
Current Borrowing
Other Liabilities Principal
Repayment
Principal Repayment
Purchase Other Current
Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
$25,000
$0
$0
$0
$0
$50,000
$0
$331,143
$0
$0
$303,271
$0
$0
$326,910
$0
$0
$383,236
$6,000
$0
$411,444
Net Cash Flow

Cash Balance
($82,594)
$1,406
$42,542
$43,947
$73,278
$117,225
$103,951
$221,176
$159,368
$380,545
Page 22
Cakes Tell Stories
Chart: Cash
8.6 Projected Balance Sheet

As shown in the balance sheet in the following table, our net will grow from
approximately $56,000 in 2012 to more than $320,000 by the end of 2016. The monthly
projections are in the appendix.
Table: Balance Sheet
Pro Forma Balance Sheet

FY 2012
FY 2013
FY 2014
FY 2015
FY 2016
$1,406
$3,413
$30,000
$34,818
$43,947
$15,559
$30,000
$89,506
$117,225
$16,486
$30,000
$163,712
$221,176
$22,411
$30,000
$273,588
$380,545
$21,194
$30,000
$431,738
$75,000
$5,000
$70,000
$104,818
$75,000
$10,000
$65,000
$154,506
$75,000
$15,000
$60,000
$223,712
$75,000
$20,000
$55,000
$328,588
$80,000
$25,000
$55,000
$486,738
FY 2012
FY 2013
FY 2014
FY 2015
FY 2016
$8,926
$0
$0
$11,869
$25,000
$0
$12,524
$50,000
$0
$15,898
$75,000
$0
$16,543
$100,000
$0
Assets
Current Assets
Cash
Inventory
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Page 23
Cakes Tell Stories
Subtotal Current Liabilities

Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
$8,926
$36,869
$62,524
$90,898
$116,543
$40,000
$48,926
$30,000
$66,869
$20,000
$82,524
$10,000
$100,898
$50,000
$166,543
$120,000
($56,000)
($8,107)
$55,893
$104,818
$120,000
($64,107)
$31,745
$87,638
$154,506
$120,000
($32,362)
$53,550
$141,188
$223,712
$120,000
$21,188
$86,503
$227,690
$328,588
$120,000
$107,690
$92,505
$320,195
$486,738
$55,893
$87,638
$141,188
$227,690
$320,195
8.7 Business Ratios

Standard business ratios are included in the following table. The ratios show a solid plan
for growth in order to reach maximum production within the first few years. Asset to
sales ratio doubles from the time of inception to the end of fifth year. Current debt to
total asset ratio is low in the first year, but maintains almost 25% from the next. Last
but not the least the Acid Test maintains an average of 2.5 times throughout the 5 year
period.
Table: Ratios
Ratio Analysis
Sales Growth
Percent of Total Assets
Inventory
Long-term Assets
Total Assets
Current Liabilities
Total Liabilities
Net Worth
Percent of Sales
Sales
Gross Margin
Selling, General &
Administrative
Expenses
Advertising Expenses
Profit Before Interest
and Taxes
FY 2012
FY 2013
FY 2014
FY 2015
FY 2016
n.a.
29.07%
16.95%
23.19%
7.06%
Industry
Profile
-1.00%
3.26%
28.62%
33.22%
66.78%
100.00%
10.07%
19.42%
57.93%
42.07%
100.00%
7.37%
13.41%
73.18%
26.82%
100.00%
6.82%
9.13%
83.26%
16.74%
100.00%
4.35%
6.16%
88.70%
11.30%
100.00%
6.34%
43.25%
53.12%
46.88%
100.00%
8.52%
38.16%
46.68%
53.32%
23.86%
19.42%
43.28%
56.72%
27.95%
8.94%
36.89%
63.11%
27.66%
3.04%
30.71%
69.29%
23.94%
10.27%
34.22%
65.78%
25.40%
73.91%
99.31%
0.69%
100.00%
85.00%
88.55%
100.00%
85.00%
74.24%
100.00%
85.00%
69.48%
100.00%
84.65%
64.29%
100.00%
84.34%
64.01%
100.00%
58.06%
23.02%
7.88%
-1.20%
5.08%
16.90%
4.35%
23.77%
4.71%
30.79%
4.40%
31.76%
1.74%
6.52%
Page 24
Cakes Tell Stories
Main Ratios
Current
Quick
Total Debt to Total
Assets
Pre-tax Return on Net
Worth
Pre-tax Return on
Assets
3.90
3.52
46.68%
2.43
2.01
43.28%
2.62
2.35
36.89%
3.01
2.76
30.71%
3.70
3.52
34.22%
1.25
1.00
99.31%
-14.51%
51.75%
54.18%
54.27%
41.27%
4325.10%
-7.73%
29.35%
34.20%
37.61%
27.15%
29.65%
Additional Ratios
FY 2012
FY 2013
FY 2014
FY 2015
FY 2016
Net Profit Margin

Return on Equity
-3.55%
-14.51%
10.76%
36.22%
15.52%
37.93%
20.35%
37.99%
20.33%
28.89%
n.a
n.a
3.67
10.09
4.66
12.17
3.23
12.17
3.35
12.17
3.27
12.17
n.a
n.a
27
2.18
26
1.91
29
1.54
27
1.29
29
0.93
n.a
n.a
0.88
0.18
0.76
0.55
0.58
0.76
0.44
0.90
0.52
0.70
n.a
n.a
$25,893
-0.51
$52,638
11.08
$101,188
14.91
$182,690
17.99
$315,195
11.70
n.a
n.a
0.46
9%
0.52
24%
0.65
28%
0.77
28%
1.07
24%
n.a
n.a
3.52
4.09
0.00
2.01
3.37
0.00
2.35
2.44
0.00
2.76
1.87
0.00
3.52
1.42
0.00
n.a
n.a
n.a
Activity Ratios
Inventory Turnover
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
Sales/Net Worth
Dividend Payout
8.8 Long-term Plan

In addition to the enclosed financial information contained in this Business Plan, Cakes
Tell Stories would like to make the following observations that were not emphasized in
this Business Plan:
The Business Plan covers five years of activities. We consider the financial projections in
the Business Plan as conservative. The sales figures are the minimum amount we wish
to sell. The compay also plans to expand to other locations and open up stores in several
other locations in the 6th year, which are not reflected in this business plan. At the end
of fifth year, all large equipment like the ovens, fridge etc. will be sold for salvage value
and new equipment will be purchased for better efficiency.
Page 25
Appendix
Table: Sales Forecast
Sales Forecast
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
20
20
0
25
35
0
30
35
0
30
35
0
30
35
0
30
28
0
30
25
0
30
25
0
30
25
0
30
25
0
30
30
0
35
35
0
0
40
0
60
0
65
0
65
0
65
0
58
0
55
0
55
0
55
0
55
0
60
0
70
May
$300.00
$350.00
$350.00
Jun
$300.00
$350.00
$350.00
Jul
$300.00
$350.00
$350.00
Aug
$300.00
$350.00
$350.00
Sep
$300.00
$350.00
$350.00
Oct
$300.00
$350.00
$350.00
Nov
$300.00
$350.00
$350.00
Dec
$300.00
$350.00
$350.00
Jan
$300.00
$350.00
$350.00
Feb
$300.00
$350.00
$350.00
Mar
$300.00
$350.00
$350.00
Apr
$300.00
$350.00
$350.00
$600.00
$600.00
$600.00
$600.00
$600.00
$600.00
$600.00
$600.00
$600.00
$600.00
$600.00
$600.00
$6,000
$7,000
$0
$7,500
$12,250
$0
$9,000
$12,250
$0
$9,000
$12,250
$0
$9,000
$12,250
$0
$9,000
$9,800
$0
$9,000
$8,750
$0
$9,000
$8,750
$0
$9,000
$8,750
$0
$9,000
$8,750
$0
$9,000
$10,500
$0
$10,500
$12,250
$0
$0
$13,000
$0
$19,750
$0
$21,250
$0
$21,250
$0
$21,250
$0
$18,800
$0
$17,750
$0
$17,750
$0
$17,750
$0
$17,750
$0
$19,500
$0
$22,750
15.00%
15.00%
15.00%
May
$45.00
$52.50
$52.50
Jun
$45.00
$52.50
$52.50
Jul
$45.00
$52.50
$52.50
Aug
$45.00
$52.50
$52.50
Sep
$45.00
$52.50
$52.50
Oct
$45.00
$52.50
$52.50
Nov
$45.00
$52.50
$52.50
Dec
$45.00
$52.50
$52.50
Jan
$45.00
$52.50
$52.50
Feb
$45.00
$52.50
$52.50
Mar
$45.00
$52.50
$52.50
Apr
$45.00
$52.50
$52.50
20.00%
$120.00
$120.00
$120.00
$120.00
$120.00
$120.00
$120.00
$120.00
$120.00
$120.00
$120.00
$120.00
$900
$1,050
$0
$1,125
$1,838
$0
$1,350
$1,838
$0
$1,350
$1,838
$0
$1,350
$1,838
$0
$1,350
$1,470
$0
$1,350
$1,313
$0
$1,350
$1,313
$0
$1,350
$1,313
$0
$1,350
$1,313
$0
$1,350
$1,575
$0
$1,575
$1,838
$0
$0
$1,950
$0
$2,963
$0
$3,188
$0
$3,188
$0
$3,188
$0
$2,820
$0
$2,663
$0
$2,663
$0
$2,663
$0
$2,663
$0
$2,925
$0
$3,413
Unit Sales
Birthday Cakes
Anniversary Cakes
Bridal Shower, Baby Shower
etc.
Wedding Cakes
Total Unit Sales
Unit Prices
Birthday Cakes
Anniversary Cakes
etc.
Wedding Cakes
Sales
Birthday Cakes
Anniversary Cakes
etc.
Wedding Cakes
Total Sales
Direct Unit Costs
Birthday Cakes
Anniversary Cakes
etc.
Wedding Cakes
Birthday Cakes
Anniversary Cakes
etc.
Wedding Cakes
Subtotal Direct Cost of Sales
Page 1
Appendix
Table: Personnel
Personnel Plan
Sumaiya
Pamela
John
Total People
May
$4,000
$3,000
$3,000
3
Jun
$4,000
$3,000
$3,000
3
Jul
$4,000
$3,000
$3,000
3
Aug
$4,000
$3,000
$3,000
3
Sep
$4,000
$3,000
$3,000
3
Oct
$4,000
$3,000
$3,000
3
Nov
$4,000
$3,000
$3,000
3
Dec
$4,000
$3,000
$3,000
3
Jan
$4,000
$3,000
$3,000
3
Feb
$4,000
$3,000
$3,000
3
Mar
$4,000
$3,000
$3,000
3
Apr
$4,000
$3,000
$3,000
3
Total Payroll
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
Page 2
Appendix
Table: Profit and Loss
Pro Forma Profit and

Loss
Sales
Other Costs of Sales
Total Cost of Sales
May
$13,000
$1,950
$0
$1,950
Jun
$19,750
$2,963
$0
$2,963
Jul
$21,250
$3,188
$0
$3,188
Aug
$21,250
$3,188
$0
$3,188
Sep
$21,250
$3,188
$0
$3,188
Oct
$18,800
$2,820
$0
$2,820
Nov
$17,750
$2,663
$0
$2,663
Dec
$17,750
$2,663
$0
$2,663
Jan
$17,750
$2,663
$0
$2,663
Feb
$17,750
$2,663
$0
$2,663
Mar
$19,500
$2,925
$0
$2,925
Apr
$22,750
$3,413
$0
$3,413
Gross Margin
Gross Margin %
$11,050
85.00%
$16,788
85.00%
$18,063
85.00%
$18,063
85.00%
$18,063
85.00%
$15,980
85.00%
$15,088
85.00%
$15,088
85.00%
$15,088
85.00%
$15,088
85.00%
$16,575
85.00%
$19,338
85.00%
Expenses
Payroll
Marketing/Promotion
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Other
$10,000
$5,000
$417
$2,000
$500
$500
$1,500
$0
$10,000
$4,000
$417
$2,000
$500
$500
$1,500
$0
$10,000
$4,000
$417
$2,000
$500
$500
$1,500
$0
$10,000
$1,000
$417
$2,000
$500
$500
$1,500
$0
$10,000
$500
$417
$2,000
$500
$500
$1,500
$0
$10,000
$500
$417
$2,000
$500
$500
$1,500
$0
$10,000
$500
$417
$2,000
$500
$500
$1,500
$0
$10,000
$500
$417
$2,000
$500
$500
$1,500
$0
$10,000
$500
$417
$2,000
$500
$500
$1,500
$0
$10,000
$500
$417
$2,000
$500
$500
$1,500
$0
$10,000
$500
$417
$2,000
$500
$500
$1,500
$0
$10,000
$500
$417
$2,000
$500
$500
$1,500
$0
Total Operating
Expenses
$19,917
$18,917
$18,917
$15,917
$15,417
$15,417
$15,417
$15,417
$15,417
$15,417
$15,417
$15,417
Profit Before Interest and

Taxes
EBITDA
Interest Expense
Taxes Incurred
($8,867)
($2,129)
($854)
$2,146
$2,646
$563
($329)
($329)
($329)
($329)
$1,158
$3,921
($8,450)
$563
$0
($1,712)
$542
$0
($437)
$521
$0
$2,563
$500
$0
$3,063
$479
$0
$980
$458
$0
$88
$437
$0
$88
$417
$0
$88
$396
$0
$88
$375
$0
$1,575
$354
$0
$4,338
$333
$0
Net Profit
Net Profit/Sales
($9,429)
-72.53%
($2,671)
-13.52%
($1,375)
-6.47%
$1,646
7.75%
$2,167
10.20%
$105
0.56%
($767)
-4.32%
($746)
-4.20%
($725)
-4.08%
($704)
-3.97%
$804
4.12%
$3,588
15.77%
15%
Page 3
Appendix
Table: Cash Flow
Pro Forma Cash Flow
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
$13,000
$13,000
$19,750
$19,750
$21,250
$21,250
$21,250
$21,250
$21,250
$21,250
$18,800
$18,800
$17,750
$17,750
$17,750
$17,750
$17,750
$17,750
$17,750
$17,750
$19,500
$19,500
$22,750
$22,750
$1,138
$1,728
$1,859
$1,859
$1,859
$1,645
$1,553
$1,553
$1,553
$1,553
$1,706
$1,991
$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
$14,138
$0
$0
$0
$0
$21,478
$0
$0
$0
$0
$23,109
$0
$0
$0
$0
$23,109
$0
$0
$0
$0
$23,109
$0
$0
$0
$0
$20,445
$0
$0
$0
$0
$19,303
$0
$0
$0
$0
$19,303
$0
$0
$0
$0
$19,303
$0
$0
$0
$0
$19,303
$0
$0
$0
$0
$21,206
$0
$0
$0
$0
$24,741
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
$10,000
$335
$10,335
$10,000
$10,028
$20,028
$10,000
$9,041
$19,041
$10,000
$8,920
$18,920
$10,000
$5,983
$15,983
$10,000
$5,478
$15,478
$10,000
$5,458
$15,458
$10,000
$5,470
$15,470
$10,000
$6,447
$16,447
$10,000
$7,364
$17,364
$10,000
$8,054
$18,054
$10,000
$8,565
$18,565
$1,138
$1,728
$1,859
$1,859
$1,859
$1,645
$1,553
$1,553
$1,553
$1,553
$1,706
$1,991
$2,083
$2,083
$2,083
$2,083
$2,083
$2,083
$2,083
$2,083
$2,083
$2,083
$2,083
$2,083
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$833
$833
$833
$833
$833
$833
$833
$833
$833
$833
$833
$833
$10,000
$20,000
$10,000
$20,000
$5,000
$10,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Received
New Current Borrowing
New Other Liabilities (interestfree)
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
8.75%
Page 4
Appendix
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance
$0
$44,390
$0
$54,673
$0
$38,817
$0
$23,696
$0
$20,759
$0
$20,040
$0
$19,927
$0
$19,940
$0
$20,917
$0
$21,834
$0
$22,677
$0
$23,472
($30,252)
$53,748
($33,195)
$20,553
($15,708)
$4,845
($587)
$4,258
$2,351
$6,609
$405
$7,014
($624)
$6,390
($637)
$5,753
($1,614)
$4,139
($2,531)
$1,608
($1,471)
$137
$1,269
$1,406
Page 5
Appendix
Table: Balance Sheet
Pro Forma Balance

Sheet
Assets
Current Assets
Cash
Inventory
Long-term Assets
Long-term Assets
Accumulated
Depreciation
Total Long-term Assets
Total Assets
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
$84,000
$25,000
$5,000
$114,000
$53,748
$23,050
$15,000
$91,798
$20,553
$20,088
$25,000
$65,640
$4,845
$16,900
$30,000
$51,745
$4,258
$13,713
$30,000
$47,971
$6,609
$10,525
$30,000
$47,134
$7,014
$7,705
$30,000
$44,719
$6,390
$5,043
$30,000
$41,432
$5,753
$3,380
$30,000
$39,133
$4,139
$2,663
$30,000
$36,801
$1,608
$2,663
$30,000
$34,270
$137
$2,925
$30,000
$33,062
$1,406
$3,413
$30,000
$34,818
$25,000
$0
$45,000
$417
$65,000
$833
$75,000
$1,250
$75,000
$1,667
$75,000
$2,083
$75,000
$2,500
$75,000
$2,917
$75,000
$3,333
$75,000
$3,750
$75,000
$4,167
$75,000
$4,583
$75,000
$5,000
$25,000
$139,000
$44,583
$136,381
$64,167
$129,807
$73,750
$125,495
$73,333
$121,304
$72,917
$120,051
$72,500
$117,219
$72,083
$113,515
$71,667
$110,799
$71,250
$108,051
$70,833
$105,104
$70,417
$103,479
$70,000
$104,818
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
Starting
Balances

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current
Liabilities
$0
$25,000
$0
$25,000
$9,727
$22,917
$0
$32,644
$8,740
$20,833
$0
$29,574
$8,720
$18,750
$0
$27,470
$5,800
$16,667
$0
$22,467
$5,297
$14,583
$0
$19,880
$5,276
$12,500
$0
$17,776
$5,256
$10,417
$0
$15,673
$6,203
$8,333
$0
$14,536
$7,096
$6,250
$0
$13,346
$7,770
$4,167
$0
$11,936
$8,257
$2,083
$0
$10,340
$8,926
$0
$0
$8,926
Total Liabilities
$50,000
$75,000
$49,167
$81,810
$48,333
$77,907
$47,500
$74,970
$46,667
$69,133
$45,833
$65,713
$45,000
$62,776
$44,167
$59,840
$43,333
$57,869
$42,500
$55,846
$41,667
$53,603
$40,833
$51,174
$40,000
$48,926
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and
Capital
$120,000
($56,000)
$0
$64,000
$139,000
$120,000
($56,000)
($9,429)
$54,571
$136,381
$120,000
($56,000)
($12,100)
$51,900
$129,807
$120,000
($56,000)
($13,475)
$50,525
$125,495
$120,000
($56,000)
($11,829)
$52,171
$121,304
$120,000
($56,000)
($9,662)
$54,338
$120,051
$120,000
($56,000)
($9,557)
$54,443
$117,219
$120,000
($56,000)
($10,324)
$53,676
$113,515
$120,000
($56,000)
($11,070)
$52,930
$110,799
$120,000
($56,000)
($11,795)
$52,205
$108,051
$120,000
($56,000)
($12,499)
$51,501
$105,104
$120,000
($56,000)
($11,695)
$52,305
$103,479
$120,000
($56,000)
($8,107)
$55,893
$104,818
$64,000
$54,571
$51,900
$50,525
$52,171
$54,338
$54,443
$53,676
$52,930
$52,205
$51,501
$52,305
$55,893
Net Worth
Page 6
Appendix
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