Ultimate Cell, Ultimate Green, Ultimate Save

I. Executive Summary
Ultimate Cell Company offers a new type of technology, called Ultimate
Cell, used in any kinds of vehicle to reduce their fuel consumption. It is
estimated that reduction of fuel consumption ranges from18% to 30%.
While cutting down fuel consumption, the Ultimate Cell, instead of
decreasing performance of the engine, increase the efficiency of the
engine, guaranteeing longer life-time performance of the engine itself.
Moreover, in term of environment the Ultimate Cell is a green product
helping the engine to reduce exhaust emission up to 80%.

Cambodias economy life line is almost entirely addicted to fuel. Lacking access to rail road
and air transportation has made Cambodia rely on using vehicle for mean of travelling and
transporting goods to every part of the country. According to the Ministry of Public Works
and Transportation, it has indicated that there are 2.36 million vehicles registered, including
1.98 million motorbikes and 377,660 four-wheel vehicles. These figures do not include
thousand other unregistered vehicles. Cambodia also has thousand machines used in
agriculture sector. The opportunity that Ultimate Cell Company has found is that there is no
alternative source of energy, other than fuel, putting Cambodians in a great need for a product
to save their money on fuel.

Ultimate Cell is imported from the original supplying company, called Ultimate Power. The
company is located in Ireland. The company here in Cambodia has made contract with the
supplying company to claim the right to be exclusive distributor in the region.

Sale Forcast
500

400

300

200 Sale Forcast

100

0
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12

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II. Mission
Ultimate Cell Company is the first company which offers a cutting edge technology in fuel-
reducing product. The company imports Ultimate Cell which is a type of equipment installed
in any type of vehicle to reduce fuel from 18% to 30%. Cutting down fuel also means
reducing exhaust emission of the engine, making the Ultimate Cell an environmental friendly
product. The company intends to sell two types of cells which are UCCE and UCCT.

III. Industry, Market, & Competitor Analysis

A. Industry Analysis
Mainly relying on fuel to
run its economy shows a
great need for fuel saving
method.
After stabilizing the country politics in 1998, Cambodia has
experienced a steady increase in energy consumption
accompanied with rapid economic growth and lifestyle change.
Having limited alternative resource for energy consumption,
Cambodia has been relying heavily on oil to sustaining its main
economic infrastructure, electricity, as well as transportation.
Power stations in Cambodia are generated by using diesel fuel,
and mean of transportation available for Cambodian people is
cars, trucks, and buses which utilize petroleum.

In 2012, Cambodia spent more than $1.6 billion importing fuel oil and petrol, which is 14.3
per cent higher than for 2011. This huge amount of money spent on fuel was caused by the
improvement of the industrial and production sectors, especially with the increase in
agricultural mechanization. Another reason is the increase in domestic transport, especially in
the service sector. A study by ADB bank has indicated that among industry, service, and
transportation sector, the later is the most consumed energy in Cambodia.

Source: http://www.phnompenhpost.com/business/cambodias-fuel-needs-increased-2012

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B. Market Analysis
Due to limited access to railway and air-plane, the most popular
means of transportation in Cambodia is vehicles. With rapid economic
The mean of development, more infrastructures have been built, leading to steady
transportation in
Cambodia is entirely increase in number of vehicles. In 2012, Ministry of Public Works and
dominated by fuel-
consuming vehicles Transport of Cambodia showed that there were increases in car
licenses by 15.96 per cent, in heavy goods vehicles by 63.05 per cent,
and in light goods vehicle and large passenger vehicle by 24 per cent.
In 2013, Cambodia had 2.36 million registered automobiles and
motorcycles. The figure does not include thousands of other vehicles
which are not registered.

Percentage Increase in 4 Wheel Vehicles

70.00%

60.00%

50.00%

40.00%

30.00% Percentage Increase in 4

Wheel Vehicles
20.00%

10.00%

0.00%
Car Heavy Goods Light Goods
Vehicles Vehicles

Source: http://www.phnompenhpost.com/business/vehicle-registration-cambodia-grows

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C. Competitor Analysis
Competitors of Ultimate Cell are those whose value proposition is the
Ultimate Cell does same or similar to the ones offered by our company. The competitors
not have both direct
product should help reduce fuel consumption for vehicles and improve
and indirect
competitiors. efficiency of the engine. Based on this definition of competition,
Ultimate Cell does not have direct competition in Cambodia market
since the company has exclusive distribution right from the oversea
company. However, there are a few indirect competitors whose
products help reduce fuel consumption. Those indirect competitors are
electric vehicles and biogas (Ethanol) vehicle. Fortunately, they
apparently are not a threat to the company since both electric and
biogas vehicles in Cambodia are not popular in the market due to high
price and poor performance. Almost every car in Cambodia consumes
petroleum.

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IV. Company and Product Development

A. Company Description
We are an exclusive distributor of ULTIMATE POWER located in Cambodia. Our main
activities are to sell, promote, install and maintain the wide range of ULTIMATE POWER
products in Cambodia. The ULTIMATE CELL product range represents an energy efficiency
technology aimed at internal combustion engines optimization. The technological principal of
this technology is the injection of hydrogen in the air intake of the internal combustion
engines in order to optimize its combustion cycle. Our products have the following offering
and are based on the latest technology of ULTIMATE POWER.

Ability to generate hydrogen on demand for energy systems with internal

combustion engines up to 40.000 cm3 of engine displacement per cell
Control of the hydrogen injection based on the engine load
Ease of installation
Ease of maintenance
Greater autonomy of the electrolyte in order to augment the time between
maintenance periods
Self-management control and diagnostics and capability to communicate with
external control systems
Able to withstand temperatures varying from -40 to +125C and harsh environment
conditions

The new cell is sized to cope with the systems requirements guarantying safe operation,
higher energy efficiency and a longer life cycle. The cell is molded in high density
polyethylene plastic and fused to the container in the fabrication process in order to guarantee
a leak free operation, toughness and improved mechanical characteristics.

The container is the holder for all the systems and accessories. It is made from high density
polyethylene plastic with a thick wall, able to withstand mechanical and thermal stresses, like
high temperatures, high pressures and also low and high frequency vibrations. The container
is also fitted with several metal inserts to couple with to the various sensors and mounting
accessories. This guarantees a faster production and no leakage of both electrolyte and
hydrogen during operation.

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The hardware and software for the electronics systems were developed and designed to
control the operation of the UCBEX10 system, to optimize the hydrogen injection to the
engines demand and improve the fuel consumption continuously and also to guarantee the
safety of its operation. For this, sensors were fitted into the cell to measure its pressure,
temperature, ambient temperature, cell current and voltage and electrolyte level. All this
information is available to the user through an LCD touch screen. The LCD touch screen
serves also as a user input device to configure the cell and adapt it to the engine being
optimized.

Also theres an external output port to control the cells shutdown relay from an external
control system. Two additional sensors were developed in order to further improve its
functionality and continuously improve the fuel consumption reduction. These sensors are
fitted in the air intake and engine exhaust and measure the engine load and fuel consumption.
They continuously collect data from the engine and the software developed interpolates this
data and outputs a signal to regulate the hydrogen injection. With this system it is possible to
evaluate the fuel consumption reduction and further optimize its value improving the fuel
consumption through time.

B. Opportunity
Fuel is a very important commodity that drives the economy of a given country and any rise
in the price fuel automatically lead to a rise in the prices of other commodities in the economy.
With the constant rise in fuel prices there is the need to
Gasoline price is raising, No alternative
energy source is available. switch to other sources of energy like solar or wind
energy. There is also the need to switch to hybrid cars
which are fuel efficient and environmentally friendly. But these new sources of energy and
hybrid cars are very costly and not affordable to the average Cambodian citizen. Thats the
reason why we came up with Ultimate cell battery as a solution to this problem because of the
following reasons:
- It is cheaper and easier to install than alternate sources of energy like solar panels.
- It is adapted to a wide range of engines (Cars, trucks, boats, generators tractors)
and also petrol and diesel engines.
- It is environmentally friendly and optimizes engine performance.

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C. Strategy
Since we are a distributor of ultimate power equipment our strategy is to meet up with the
following objectives:
- Establishing and maintaining appropriate, attractive and accessible premises and
facilities for the display and demonstration of Equipment
- Provide an adequate, trained sales and technical staff to promote the sale and
support of the Equipment
- Develop a cost effective distribution channel of our product from our main
supplier to the final consumer

D. Product description
On the pictures below are found some of our products pictures speak louder than words.

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V. Marketing Plan
A. SWOT Analysis
Strength: Ultimate Cell is the brand new technology existing never before in Cambodia. Its
strength lays on its two main features: 30 per cent cut in fuel consumption and engine
performance improvement. These unique value propositions are fulfilling the need of
transportation service enterprises and individuals who are vulnerable to constantly raising of
fuel price; on top of that, these values could not be offered by any companies in Cambodia.
Moreover, the money saved by Ultimate Cell is much greater than the price of each unit of the
Ultimate Cell, making the product worth spending.

Weakness: It requires some time for the Ultimate Cell to establish its recognition in
Cambodia market. The Ultimate Cell was just created in 2009 by a small Portuguese company.
The technology is quite new in the market. Therefore, the company needs to put more effort
and time on building product existence in Cambodia market.

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Opportunity: Heavily relying on fuel for transportation is a great advantage for Ultimate Cell
in Cambodia market. Limited access to rail road and other alternative fuel such as bio-fuel,
petroleum consuming vehicles are dominating the Cambodia market transportation. Another
opportunity favored Ultimate Cell is the increasing price of petroleum. The figure below is
showing how fuel price has been going up for the last decade.

1.6
Diesel and Gasoline Price (US$ Per Liter)
1.4

1.2

0.8
Diesel
0.6
Gasoline
0.4

0.2

0
1998 2000 2002 2004 2006 2008 2010 2012

Source: http://data.worldbank.org/country/cambodia

Threat: There is only one supplier in the international market. Ultimate Cell in Cambodia is
just a distributor which has received exclusive right to sell the product in the region.
Therefore, the company has less power to bargain the price with the supplier. Moreover,
getting the product from the supplier whose location is in Ireland takes one month. This factor
might be another difficulty in terms of managing the inventory.

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Summary of SWOT Analysis

- Brand new technology - More time and effort on raising

- Product values meet the need company awareness
of customers
- Huge save over the cost of the
product

- Fuel consuming vehicles are - Less bargaining power due to

dominating Cambodia's market only one supplier
- Highly increasing in fuel price - 30 days shipment

B. Customer Analysis
1. Market Segmentation
Ultimate Cell will divide the market into three customer groups:
- Individuals: this group consists of people who are working or studying and have
their own car or motorbike for their transportation. Normally, they use their own
vehicles only in the city. Going outside the city to the other province would require
bus or long-distance taxi.
- Transportation Business Enterprise: this group refers to any company whose core
business activity is transportation. They are Bus companies, private long-distance
taxi (individuals who use their own vehicle to take people from city to other
provinces), and food & beverage companies which requires truck to take food from
other place to supermarket or store.
- Machinery industry: this group of customers is the one who use machine for their
production. They include farmers who use tractors, fishery boat, and electricity
generators.

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2. Targeting Customer:
i. Primary Customer: Ultimate Cells target customers are the second group
of the segments, Transportation Business Enterprise. They are the most
vulnerable group to price of petroleum, making them in need of our

Our primary target

products to reduce their fuel consumption. In Cambodia, there are more
customer is Travel Agency than 25 Bus companies, serving as the most dominant mean of
Enterprises.
transportation for Cambodian people to get from one province to the next.
Furthermore, there are also more than 300 logistics companies in
Cambodia, for transporting all kind of products all over the country.
ii. Secondary Customer: the secondary customer group for Ultimate Cell in
Cambodia is Machinery Industry. This group is heavily relying on fuel-
consuming machine for their business operation, making it ideal for our
product. Cambodias main industry is agriculture and as the economy is
growing so is the food production. There is an increase of machinery in
agricultural industry in recently year.1

C. Product Mix
Ultimate Cell Company in Cambodia offers two types of battery as shown in the table below.

NR. PRODUCT DESCRIPTION

1 ULTIMATE CELL CAR ENGINE (UCCE) Specific for light cars
V2.0
2 ULTIMATE CELL TRUCK ENGINE (UCTE Specific for heavy equipments and trucks
V2.0) and power generators

The company also provides refilling service after the battery runs out of power.

1
Cambodias Fuel Needs Increased in 2012, http://www.phnompenhpost.com/business/cambodias-fuel-needs-
increased-2012
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D. Price
The company has three products variations for the customers as the following:

1.

Price: $385

2.

Price: $500

3. Refilling the battery $20 per unit

E. Promotion
Since our target customers are business enterprises, our company has decided to communicate
with them through the following approaches:
1. Direct Marketing: the company will send our sales person directly to the bus
companies and other logistic companies to explain about our products and
make sales.
2. Radio Advertising: we will hire radio station to promote our products on
special hours such as lunch time.
3. Try-Out Campaign: we allow the customers to try our products for 30 days to
see the benefits of our products before deciding to purchase.
4. Car Poster and Flyers: for the customers who agree to let our company poster
on will receive some discount from the company.

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Car Poster Sample

Sample for Flyer

VI. Operation
A. Overview
Ultimate Cell Cambodia is an Exclusive Distributor of Portuguese Ultimate Cell Company.
The main task of the company is to provide the ultimate cell to the customers and refuel it.
For this purpose company is established in Cambodia. The primary customers of this
company are the service sectors such as travel agency, supplier companies, which have their
own vehicles.

B. Location
As the most of the transport companies headquarters are in the capital city of Cambodia,
Phnom Penh, the companys head office will be established in Phnom Penh. Refilling centre

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also will be in the head office where the transportation facility is in abundance and the
electricity facility is proper.

C. Facilities and Equipment

Companys main task is to provide the ultimate cell to its customers. That is why the
company will own some 600 cells in the beginning. Extra ultimate cell and other cells will be
brought as per the demand. The company will own refilling station one in head office. The
ultimate cell allows to drive up to 70,000 km without top-up (on a vehicle less than 2000
cc).As the users can use maximum up to 5 years, one refilling centre would be sufficient in
the beginning. Production Company supplies all necessary data for the proper installation,
test, operation and maintenance of Equipment. So the distributor company will do at its best
to serve the customers with its staffs. The company will four Tuk-Tuk tricycles, which are
common and popular in Cambodia for collection and delivery of the Ultimate cells.

D. Employees
In the beginning company will have 14 staffs working in the head office. Among them there
will be three founding directors, one office assistant, 3 refilling technician, and 7 sale
personnel. The installation time for the Ultimate cell is just the 30 minutes. The technicians
and sale personnel will be trained by the supplier company through online video conference.
Three founding Directors will be working as a flat managers working all in all sectors. Office
assistant will be assisting in the day to day official work.
Personnel Plan

Marketing Manager $300.00

Financial Manager $300.00
Technical Manager $300.00
Office Assistant $150.00
Technician (3) $600.00
Saleperson (7) $1,260.00

Total Monthly Salary Expense $2,910.00

E. Supplier
The main supplier of this company is The Ultimate Cell Company, located in Ireland, from
where Ultimate Cell Cambodia will receive the Cells for sale. As per need the company will
appoint the regional distributor within Cambodia in a long run.

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VII. Development Plan

A. Development Timeline

Activity 1 1 1 9 8 7 6 5 4 3 2 1 Opening
2 1 0
Month
10-12 Months Prior to Opening
1. Finalize business plan and financials
2. Review plans
3. Determine exact location possibilities
7-9 Months Prior to Opening
4. Register the company at the ministry
5. Request for license and patent
6. Update business plan per feedback from
consultants
7. Make initial contact with supplier
4-6 Months Prior to Opening
8. Determine exact office design
9. Finalize contract with supplier
10. Signing contract
3 Months Prior to Opening
11. Finalize office design
12. Open bank accounts
13. Finalize marketing plan and implement to
announce company opening events
14. Receive products from suppliers
1 Months Prior to Opening
15. Contact local radio media
16. Code merchandise category data in
inventory management system
17. Recruit and train staff
Grand Opening of Ultimate Cell

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B. Growth Plan
Ultimate Cell Company is currently opening in Phnom Penh, the Capital City of Cambodia. It
is the central business activities of the nation, which the company believes we could capture
the primary and secondary customers. In the next three years after the operation in Capital
city, the company plans to expand our branches in two other Busy Travelling Activity
provinces, Siem Reap and Sihanouk Ville.

Siep Reap: it is famous for its Tourism Industry. Almost two millions tourists visit the
province to see ancient temples every year, indicating there are great need in transportation
within the province. Means of transportation for those tourists are usually Tok Tok, cars, and
buses. Such demand in transportation has indicated that there are markets for Ultimate Cell
for saving the cost of fuels.

Sihanouk Ville: Sihanouk Ville is the second most attractive province of Cambodia.
Thousands of tourists, both domestic and foreign, flee to visit the region every years for
relaxing on beautiful view of the white sand beach. Sihanouk Ville is not only the place for
people to visit but also the home place for national ports, gateway to foreign products. Every
product which is imported to Cambodia has to go through Sihanouk. All of these facts, tourist
sites and national ports, about the province have made transportation as the number one
demand, which in turn indicates market for Ultimate Cell.

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VIII. Team

Por Meng Hong was born in Phnom Penh, Cambodia. He is a holder of a Bachelor degree in
business economics from National University of Management (NUM) and a Bachelor
degree in English for business communication from Passtra University of Cambodia
(PUC). He is proficient in English language and Cambodian. Though very young, the
business world is no strange place to Mr. Hong as he taken part in a lot of business oriented
activities such as engage in marketing research and management to lunch an online
advertising business, receiving a certificate of participating in a workshop on Capacity
Building for Small and Medium Enterprise,, complete one week Green Eco-Preneurship
Accelerated Program organized by Handong Global University, intern at ASEM Eco-
Innovation Center (ASEIC) as Business Plan Guide Book compiler and Eco-Technology
researcher, project Leader of Aquaponics Project in Green Ajou Club and very active member
and initiator of Ultimate cell Cambodia. All along Mr Hong have been involved in many
green projects which is no surprise he suggested the idea of Ultimate cell Cambodia for our
business plan. Mr. Hong is very passionate and hardworking. He is a very good public
speaker and has won an award on public speaking which is a great asset for our marketing
communication. He is a rising star and a great asset to our company.

Aryal TikaRam was born in Pakawadi-4, Syangja, Nepal. He is holder of a Bachelors

Degree in Humanities and Social Sciences majoring English Literature and Sociology from
Tribhuvan University, a Masters in English Literature From Tribhuvan University , Nepal and
a one year Bachelor Degree in Education. He worked as a project consultant and Report
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Writer for Journalists Alliance For Disaster Risk Reduction Nepal, worked as a Lecturer for
English at Kathmandu Education Campus, Executive member of Society of Nepalese
Students in South Korea. He is a Founding Director of Amadablum National School,
Kathmandu, Nepal. He is also proficient in Nepali, English and Hindi. Though relatively new
in the business world, Mr Aryals experience in various aspects of human resource
management will be an asset in our company. He will hold the position of Technical manager
overseeing all the technical operations.

Mbiankouan Tem ValeryMbatkam was born in Bamenda Cameroon. He is holder of a

Bachelor Degree in Economic Sciences from the University Of Yaounde II Sao. After
graduation he started a small documentary business beside the University with a friend. Then
two years later he traveled to China to work as an Esl teacher for 3 years. During his spare
time while in China he bought relatively cheaper goods and exported them home where they
could be sold and generate some profits. He is proficient in English French and Mandarin
Chinese and also holder of an HSK (hanyu shiping Kaoshi) certificate level three. His
extensive understanding of business management and wide range of cultures is an asset to our
company. His good negotiation skills earn the company the right to be the exclusive
distributor of Ultimate cell Cambodia. He will hold the position of financial manager. We will
also hire an office assistant and 3 supporting technicians, the office assistant will be assisting
in most of the office duties while the support technician will be doing most of the technical
work.

Our partners from the mother company will be guiding and provide us with technical support
on marketing and advertisement as well as operation of the ultimate cell. The mother
company will also provide us with training. This will ease our task and we will constantly
keep in touch with the mother company in case we need any help.

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IX. Critical Risk

Shipment Risk: Ultimate Cell is not produced in Cambodia. The product is imported by sea
from Ireland, which takes almost 30 days to arrive at the port of Cambodia. Such long
travelling time of product put the product in the risk of damaging on the way. To avoid such
risk, our Ultimate Cell Company in Cambodia plans to use either one of the two actions
which are to work with high logistic companies which guarantee product safety or to buy
insurance for the product imported.

X. Financial Plan
A. Start-Up Plan
Start-Up Expense

License and Business Registration $2,200.00

Rent (for one year) $8,400.00
Expense Equipment for installing battery $500.00
Office Supplies $200.00
Shipment $2,469.00
Other expense $300.00
Total Start-Up Expense $14,069.00
Start-Up Asset

Start-Up Inventory $121,631.00

Cash $161,394.00
Computer $300.00
Tuk Tuk (4) $3,200.00
Telephone $25.00
Printer $50.00
Furniture $1,000.00
Equipment $800.00

Total Start-Up Asset $288,400.00

Total Start-Up $302,469.00

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B. Sales Forecast
Never having been introduced before in Cambodia market, our company projects a small
progress in sales for the first year of operation. We position ourselves in medium risk
environment.

Sale Forcast
500

400

300

200 Sale Forcast

100

0
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12

C. Break-even Analysis
A Break-even Analysis chart has been completed on the basis of average costs/prices. With
fixed costs, average sales, and average variable costs, the chart shows what we need to make
sale of 32.73 units per month to break-even.

Break-even Analysis
$5,000.00
$4,000.00
$3,000.00
$2,000.00
$1,000.00
$0.00 Profit
($1,000.00) 8 12 18 20 30 32.73 40 50 60
($2,000.00)
($3,000.00)
($4,000.00)
($5,000.00)

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D. Projected Cash Flow

We are positioning ourselves in the market as a medium risk concern with steady cash flows.
Account receivable is given at the beginning of new month, while account payable is paid at
the end of each month.

Cash Flow
Year 1 Year 2
Cash Received
Cash Sales $770,835.00 $1,106,250.00
Cash from Receivables $0.00 $38,541.75
SUBTOTAL CASH FROM OPERATIONS $770,835.00 $1,144,791.75
Additional Cash Received
New Current Borrowing $0.00 $0.00
New Other Liabilities (interest-free) $0.00 $0.00
New Long-term Liabilities $0.00 $0.00
Sales of Other Current Assets $0.00 $0.00
Sales of Long-term Assets $0.00 $0.00
New Investment Received $0.00 $0.00
SUBTOTAL CASH RECEIVED $770,835.00 $1,144,791.75
Expenditure Year 1 Year 2
Expenditures from Operations
Cash Spending $653,727.00 $798,258.00
SUBTOTAL SPENT ON OPERATIONS
Additional Cash Spent $0.00 $0.00
Principal Repayments of Current Borrowing $0.00 $0.00
Other Liabilities Principal Repayment $0.00 $0.00
Long-term Liabilities Principal Repayment $0.00 $0.00
Purchase Other Current Assets $0.00 $0.00
Purchase Long-term Assets $0.00 $0.00
Dividends $0.00 $0.00
SUBTOTAL CASH SPENT $653,727.00 $798,258.00
Net Cash Flow $117,108.00 $346,533.75
Cash Balance $416,814.75 $763,348.50

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E. Projected Profit and Loss

Since we position ourselves in a medium risk environment, the first three months of heavy
marketing campaign yield no profit for the company. Moreover, due to shipment policy of the
company (twice per year), Month 5 and Month 10 have been set as the time to import more
products for sale, resulting in cut in profit on these two months.

Projected Profit and Loss (Monthly)

60,000.00

50,000.00

40,000.00

30,000.00 Projected Profit and Loss

(Monthly)
20,000.00

10,000.00

0.00
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12
-10,000.00

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F. Projected Balance Sheet

The table below is made based on regional industry strength and future cash flow possibilities.
Moreover, the company has set 5% Account Receivable Policy.
Projected Balance Sheet
Year 1 Year 2
Cash $416,814.75 $477,450.00
Inventory $428,652.00 $659,148.00
Account Receivable $38,541.75 $66,375.00

Total Current Asset $884,008.50 $1,202,973.00

Computer $240.00 $180.00

Tuk Tuk $2,560.00 $1,920.00
Telephone $20.00 $15.00
Printer $40.00 $30.00
Furniture $800.00 $600.00
Equipment $640.00 $480.00
Accruel Depreciation $1,075.00 $2,150.00

Total Non-current Asset $5,375.00 $5,375.00

Total Asset $889,383.50 $1,206,198.00
Liability

Current Liability $0.00 $0.00

Account Payable $588,000.00 $735,000.00

Equity

Capital $100,823.00 $100,823.00

Retained Earning $200,560.50 $370,375.00

Total Liability and Equity $889,383.50 $1,206,198.00

Note: Assume that Account Receivable is 5 % of sales

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XI. Appendix

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