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 Table of Contents

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

Chart: Highlights ......................................................................................................................1
1.1 Objectives ...................................................................................................................................1
1.2 Mission........................................................................................................................................1
1.3 Keys to Success ........................................................................................................................2
2.0 Company Summary.............................................................................................................................2
2.1 Start-up Summary ......................................................................................................................2
Chart: Start-up .........................................................................................................................2
2.1.1 Company Ownership ....................................................................................................2
Table: Start-up .........................................................................................................................3
Table: Start-up Funding ..........................................................................................................4
2.2 Company Locations and Facilities ..........................................................................................4
3.0 Products ...............................................................................................................................................4
4.0 Market Analysis Summary..................................................................................................................4
5.0 Strategy and Implementation Summary ............................................................................................5
5.1 Competitive Edge ......................................................................................................................5
5.2 Sales Strategy............................................................................................................................5
5.2.1 Sales Forecast ..............................................................................................................5
Table: Sales Forecast ...................................................................................................6
Chart: Sales Monthly......................................................................................................6
Chart: Sales by Year......................................................................................................7
6.0 Management Summary.......................................................................................................................7
6.1 Personnel Plan ...........................................................................................................................7
Table: Personnel .....................................................................................................................7
7.0 Financial Plan ......................................................................................................................................8
7.1 Break-even Analysis ..................................................................................................................8
Table: Break-even Analysis ...................................................................................................8
Chart: Break-even Analysis ...................................................................................................8
7.2 Projected Profit and Loss .........................................................................................................9
Chart: Profit Monthly................................................................................................................9
Chart: Profit Yearly ..................................................................................................................9
Chart: Gross Margin Monthly ...............................................................................................10
Chart: Gross Margin Yearly..................................................................................................10
Table: Profit and Loss ..........................................................................................................11
7.3 Projected Cash Flow...............................................................................................................12
Chart: Cash ...........................................................................................................................12
Table: Cash Flow..................................................................................................................13
7.4 Projected Balance Sheet ........................................................................................................14
Table: Balance Sheet ...........................................................................................................14
7.5 Business Ratios .......................................................................................................................15
Table: Ratios .........................................................................................................................16
Table: Sales Forecast ...............................................................................................................................1
Table: Personnel ........................................................................................................................................2
Table: General Assumptions ....................................................................................................................3
Table: Profit and Loss ...............................................................................................................................4
Table: Cash Flow .......................................................................................................................................5
Table: Balance Sheet ................................................................................................................................6
Page 1
 Tsunami Pizza

1.0 Executive Summary

The westside of South Gate has experienced explosive growth the past three years. Over
3,000 new residents live in the westside area. Area businesses are slowly catching up with this
new opportunity. Tsunami Pizza is opening a new pizza delivery service that will foc us on the
westside area.

Currently, the area's closest pizza restaurant takes up to 45 minutes to deliver a

pizza. Tsunami will cut the delivery time to no more than 20 minutes.

Tsunami will offer a better pizza, at a lower price, and will deliver it hot to the customer's door
faster than the closest competitor.

1.1 Objectives
· Capture the majority of the pizza delivery business in the westside area.
· Offer our customers a superior product, at a low price, and provide customer service that
is second to none.

1.2 Mission
Tsunami Pizza's mission is to offer residents of the westside the best pizza delivery service in the
city.

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 Tsunami Pizza

1.3 Keys to Success

· A superior product that will promote customer loyalty.
· A business loc ation that will assure that the pizza will be delivered quickly.
· Delivery people that have great customer skills.

2.0 Company Summary

Tsunami Pizza is a new pizza delivery service started in the city's westside area. John Lindsay,
owner of Tsunami Pizza, has seven years experience in the restaurant industry. His foc us is to
satisfy the customer's demand for a quality pizza that is delivered quickly with a smile.
Tsunami Pizza will serve a seven mile area with over 25,000 residents. Overhead will be kept
low so that Tsunami Pizza's prices will beat the competition. Delivery people will use their own
vehicles so the business will not have to purchase delivery vehicles.

2.1 Start-up Summary

The start-up cost of Tsunami Pizza will consist primarily of kitchen equipment. John Lindsay will
invest $50,000.

2.1.1 Company Ownership

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 Tsunami Pizza
Tsunami Pizza is owned by John Lindsay.

Table: Start-up
Start-up

Requirements

Start-up Expenses
Legal $1,000
Kitchen Inventory $5,000
Delivery Paper Products $3,000
Leased Kitchen Equipment $20,000
Insurance $1,000
Rent $1,000
Promotional Signs for Delivery Cars $2,000
Expensed Equipment $0
Business Sign $4,000
Other $0
Total Start-up Expenses $37,000

Start-up Assets
Cash Required $5,000
Other Current Assets $0
Long-term Assets $8,000
Total Assets $13,000

Total Requirements $50,000

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 Tsunami Pizza

Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund $37,000
Start-up Assets to Fund $13,000
Total Funding Required $50,000

Assets
Non-cash Assets from Start-up $8,000
Cash Requirements from Start-up $5,000
Additional Cash Raised $0
Cash Balance on Starting Date $5,000
Total Assets $13,000

Liabilities and Capital

Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0

Capital

Planned Investment
John Lindsey $50,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $50,000

Loss at Start-up (Start-up Expenses) ($37,000)

Total Capital $13,000

Total Capital and Liabilities $13,000

Total Funding $50,000

2.2 Company Locations and Facilities

Tsunami Pizza will be loc ated at the corner of 11th and Tyler. These two streets are the
area's busiest and provide easy ac cess to our service area.

3.0 Products
Tsunami Pizza will offer a wide variety of New York style pizzas, as well as sodas and fruit juices.

4.0 Market Analysis Summary

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 Tsunami Pizza
The westside is a growing middle-class area with 25,000 residents. A majority of these residents
are families of four or more. The average income for the area is $38,000. The boom in the area
is primarily in response to new employment opportunities in the city's Westside Industrial Park.
Businesses that traditionally do well with this population have demonstrated the potential for
Tsunami Pizza. A neighbor of Tsunami Pizza, Magic Videos, has been in operation in the area
for a little over a year. Magic Videos is the closest video store serving the westside area.
Their sales have grown by 40% due to its loc ation and the absence of direct competition in
the westside.

With c ontinued growth in the area, opportunities to serve the westside residents will
increase. The company will sell predominantly to individuals, but it will also ac cept some
catering jobs to individual parties and company functions in the westside.

5.0 Strategy and Implementation Summary

Tsunami Pizza will use advertising to promote the business. We will use the loc al westside flyer
to advertise. In addition, we will hire people to hold signs at the corner of 11th and Tyler. We
will also use door handle flyer promotion throughout the westside neighborhoods.

Our most important promotion will done in c onjunction with Magic Video. We will offer a two
for price of one video coupon with eac h purchase at Tsunami Pizza that can be used at Magic
Video. Magic Video will offer its customers a $2 off coupon that can be used at Tsunami Pizza.

5.1 Competitive Edge

Tsunami Pizza's competitive edge is:

· Location: Tsunami Pizza is loc ated in the heart of the westside area on the corners of
11th and Tyler. These two streets are the area's busiest. The closest pizza restaurant
to the westside area is a fifteen minute drive. Tsunami Pizza can deliver in half the time
of its competitors.

· Low Overhead/Lower Prices: Since Tsunami Pizza only delivers pizza, its prices don't
reflect overhead demands of a traditional pizza restaurant.

5.2 Sales Strategy

The sales strategy of Tsunami Pizza is simple. First, offer the customer a superior pizza at a
low price. Second, make sure that pizza is delivered quickly. Third, the delivery people must work
to create customer loyalty.

5.2.1 Sales Forecast

The following is the sales forecast for three years.

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 Tsunami Pizza

Table: Sales Forecast

Sales Forecast
Year 1 Year 2 Year 3
Sales
Pizza/Drinks $162,500 $178,000 $195,000
Catering Income $14,000 $18,000 $24,000
Other $0 $0 $0
Total Sales $176,500 $196,000 $219,000

Direct Cost of Sales Year 1 Year 2 Year 3

Pizza/Drinks $24,500 $30,000 $36,000
Catering Income $1,400 $1,800 $2,400
Other $0 $0 $0
Subtotal Direct Cost of Sales $25,900 $31,800 $38,400

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 Tsunami Pizza

6.0 Management Summary

John Lindsay will be the manager of Tsunami Pizza. John started as a waiter at the city's
famous Sweetwater restaurant. At the time, John was in his junior year at Robertson
University. He graduated in 1995 with a BA in history. Soon after graduation, John was offered
the position of shift manager at the Sweetwater. He has held that position for five years.

6.1 Personnel Plan

The Tsunami will have the following staff:

· Manager.
· One kitchen staff.
· Two delivery staff.

Table: Personnel
Personnel Plan
Year 1 Year 2 Year 3
Manager $30,000 $34,000 $38,000
Kitchen Staff Member $24,000 $25,000 $29,000
Delivery Staff (2) $36,000 $37,000 $38,000
Other $0 $0 $0
Total People 4 4 4

Total Payroll $90,000 $96,000 $105,000

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 Tsunami Pizza

7.0 Financial Plan

The following is the financial plan for Tsunami Pizza.

7.1 Break-even Analysis

The following table and chart show the Break-even Analysis.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $12,803

Assumptions:
Average Percent Variable Cost 15%
Estimated Monthly Fixed Cost $10,925

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 Tsunami Pizza

7.2 Projected Profit and Loss

The following table and charts show the projected profit and loss for three years.

Page 9
Tsunami Pizza

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 Tsunami Pizza

Table: Profit and Loss

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $176,500 $196,000 $219,000
Direct Cost of Sales $25,900 $31,800 $38,400
Other Production Expenses $0 $0 $0
Total Cost of Sales $25,900 $31,800 $38,400

Gross Margin $150,600 $164,200 $180,600

Gross Margin % 85.33% 83.78% 82.47%

Expenses
Payroll $90,000 $96,000 $105,000
Sales and Marketing and Other Expenses $8,000 $8,000 $8,000
Depreciation $1,596 $1,600 $1,600
Leased Equipment $0 $0 $0
Utilities $6,000 $6,000 $6,000
Insurance $0 $0 $0
Rent $12,000 $12,000 $12,000
Payroll Taxes $13,500 $14,400 $15,750
Other $0 $0 $0

Total Operating Expenses $131,096 $138,000 $148,350

Profit Before Interest and Taxes $19,504 $26,200 $32,250

EBITDA $21,100 $27,800 $33,850
Interest Expense $0 $0 $0
Taxes Incurred $5,851 $7,860 $9,675

Net Profit $13,653 $18,340 $22,575

Net Profit/Sales 7.74% 9.36% 10.31%

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 Tsunami Pizza

7.3 Projected Cash Flow

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

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 Tsunami Pizza

Table: Cash Flow

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received

Cash from Operations

Cash Sales $176,500 $196,000 $219,000
Subtotal Cash from Operations $176,500 $196,000 $219,000

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $176,500 $196,000 $219,000

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $90,000 $96,000 $105,000
Bill Payments $63,520 $81,211 $89,022
Subtotal Spent on Operations $153,520 $177,211 $194,022

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $153,520 $177,211 $194,022

Net Cash Flow $22,980 $18,789 $24,978

Cash Balance $27,980 $46,769 $71,747

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 Tsunami Pizza

7.4 Projected Balance Sheet

The following table is the projected balance sheet for three years.

Table: Balance Sheet

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets

Current Assets
Cash $27,980 $46,769 $71,747
Other Current Assets $0 $0 $0
Total Current Assets $27,980 $46,769 $71,747

Long-term Assets
Long-term Assets $8,000 $8,000 $8,000
Accumulated Depreciation $1,596 $3,196 $4,796
Total Long-term Assets $6,404 $4,804 $3,204
Total Assets $34,384 $51,573 $74,951

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Accounts Payable $7,731 $6,580 $7,383
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $7,731 $6,580 $7,383

Long-term Liabilities $0 $0 $0
Total Liabilities $7,731 $6,580 $7,383

Paid-in Capital $50,000 $50,000 $50,000

Retained Earnings ($37,000) ($23,347) ($5,007)
Earnings $13,653 $18,340 $22,575
Total Capital $26,653 $44,993 $67,568
Total Liabilities and Capital $34,384 $51,573 $74,951

Net Worth $26,653 $44,993 $67,568

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 Tsunami Pizza

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) code 5812, Eating Plac es, are shown for comparison.

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 Tsunami Pizza

Table: Ratios
Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 11.05% 11.73% 7.60%

Percent of Total Assets

Other Current Assets 0.00% 0.00% 0.00% 35.60%
Total Current Assets 81.37% 90.69% 95.73% 43.70%
Long-term Assets 18.63% 9.31% 4.27% 56.30%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 22.48% 12.76% 9.85% 32.70%

Long-term Liabilities 0.00% 0.00% 0.00% 28.50%
Total Liabilities 22.48% 12.76% 9.85% 61.20%
Net Worth 77.52% 87.24% 90.15% 38.80%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 85.33% 83.78% 82.47% 60.50%
Selling, General & Administrative Expenses 77.59% 74.42% 72.16% 39.80%
Advertising Expenses 4.53% 4.08% 3.65% 3.20%
Profit Before Interest and Taxes 11.05% 13.37% 14.73% 0.70%

Main Ratios
Current 3.62 7.11 9.72 0.98
Quick 3.62 7.11 9.72 0.65
Total Debt to Total Assets 22.48% 12.76% 9.85% 61.20%
Pre-tax Return on Net Worth 73.18% 58.23% 47.73% 1.70%
Pre-tax Return on Assets 56.72% 50.80% 43.03% 4.30%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 7.74% 9.36% 10.31% n.a
Return on Equity 51.22% 40.76% 33.41% n.a

Activity Ratios
Accounts Payable Turnover 9.22 12.17 12.17 n.a
Payment Days 27 33 28 n.a
Total Asset Turnover 5.13 3.80 2.92 n.a

Debt Ratios
Debt to Net Worth 0.29 0.15 0.11 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a

Liquidity Ratios
Net Working Capital $20,249 $40,189 $64,364 n.a
Interest Coverage 0.00 0.00 0.00 n.a

Additional Ratios
Assets to Sales 0.19 0.26 0.34 n.a
Current Debt/Total Assets 22% 13% 10% n.a
Acid Test 3.62 7.11 9.72 n.a
Sales/Net Worth 6.62 4.36 3.24 n.a
Dividend Payout 0.00 0.00 0.00 n.a

Page 16
 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
Sales
Pizza/Drinks 0% $9,500 $10,000 $10,000 $13,000 $13,000 $14,000 $14,000 $15,000 $15,000 $16,000 $16,000 $17,000
Catering Income 0% $0 $0 $200 $400 $600 $800 $1,000 $2,000 $2,000 $2,000 $2,000 $3,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $9,500 $10,000 $10,200 $13,400 $13,600 $14,800 $15,000 $17,000 $17,000 $18,000 $18,000 $20,000

Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Pizza/Drinks $1,000 $1,100 $1,100 $2,000 $2,000 $2,200 $2,200 $2,400 $2,400 $2,700 $2,700 $2,700
Catering Income $0 $0 $20 $40 $60 $80 $100 $200 $200 $200 $200 $300
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $1,000 $1,100 $1,120 $2,040 $2,060 $2,280 $2,300 $2,600 $2,600 $2,900 $2,900 $3,000

Page 1
 Appendix
Table: Personnel

Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Manager 0% $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Kitchen Staff Member 0% $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Delivery Staff (2) 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 4 4 4 4 4 4 4 4 4 4 4 4

Total Payroll $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500

Page 2
 Appendix
Table: General Assumptions

General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 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 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0

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 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
Sales $9,500 $10,000 $10,200 $13,400 $13,600 $14,800 $15,000 $17,000 $17,000 $18,000 $18,000 $20,000
Direct Cost of Sales $1,000 $1,100 $1,120 $2,040 $2,060 $2,280 $2,300 $2,600 $2,600 $2,900 $2,900 $3,000
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $1,000 $1,100 $1,120 $2,040 $2,060 $2,280 $2,300 $2,600 $2,600 $2,900 $2,900 $3,000

Gross Margin $8,500 $8,900 $9,080 $11,360 $11,540 $12,520 $12,700 $14,400 $14,400 $15,100 $15,100 $17,000
Gross Margin % 89.47% 89.00% 89.02% 84.78% 84.85% 84.59% 84.67% 84.71% 84.71% 83.89% 83.89% 85.00%

Expenses
Payroll $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500
Sales and Marketing and Other $1,000 $1,000 $1,000 $1,000 $500 $500 $500 $500 $500 $500 $500 $500
Expenses
Depreciation $133 $133 $133 $133 $133 $133 $133 $133 $133 $133 $133 $133
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Payroll Taxes 15% $1,125 $1,125 $1,125 $1,125 $1,125 $1,125 $1,125 $1,125 $1,125 $1,125 $1,125 $1,125
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Operating Expenses $11,258 $11,258 $11,258 $11,258 $10,758 $10,758 $10,758 $10,758 $10,758 $10,758 $10,758 $10,758

Profit Before Interest and Taxes ($2,758) ($2,358) ($2,178) $102 $782 $1,762 $1,942 $3,642 $3,642 $4,342 $4,342 $6,242
EBITDA ($2,625) ($2,225) ($2,045) $235 $915 $1,895 $2,075 $3,775 $3,775 $4,475 $4,475 $6,375
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred ($827) ($707) ($653) $31 $235 $529 $583 $1,093 $1,093 $1,303 $1,303 $1,873

Net Profit ($1,931) ($1,651) ($1,525) $71 $547 $1,233 $1,359 $2,549 $2,549 $3,039 $3,039 $4,369
Net Profit/Sales -20.32% -16.51% -14.95% 0.53% 4.03% 8.33% 9.06% 15.00% 15.00% 16.89% 16.89% 21.85%

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 $9,500 $10,000 $10,200 $13,400 $13,600 $14,800 $15,000 $17,000 $17,000 $18,000 $18,000 $20,000
Subtotal Cash from Operations $9,500 $10,000 $10,200 $13,400 $13,600 $14,800 $15,000 $17,000 $17,000 $18,000 $18,000 $20,000

Additional Cash Received

Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $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
Subtotal Cash Received $9,500 $10,000 $10,200 $13,400 $13,600 $14,800 $15,000 $17,000 $17,000 $18,000 $18,000 $20,000

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

Expenditures from Operations

Cash Spending $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500
Bill Payments $127 $3,805 $4,020 $4,145 $5,686 $5,437 $5,936 $6,035 $6,818 $6,835 $7,328 $7,350
Subtotal Spent on Operations $7,627 $11,305 $11,520 $11,645 $13,186 $12,937 $13,436 $13,535 $14,318 $14,335 $14,828 $14,850

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $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
Subtotal Cash Spent $7,627 $11,305 $11,520 $11,645 $13,186 $12,937 $13,436 $13,535 $14,318 $14,335 $14,828 $14,850

Net Cash Flow $1,873 ($1,305) ($1,320) $1,755 $414 $1,863 $1,564 $3,465 $2,682 $3,665 $3,172 $5,150
Cash Balance $6,873 $5,568 $4,248 $6,003 $6,417 $8,280 $9,844 $13,310 $15,992 $19,657 $22,830 $27,980

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 Appendix
Table: Balance Sheet

Pro Forma Balance Sheet

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances

Current Assets
Cash $5,000 $6,873 $5,568 $4,248 $6,003 $6,417 $8,280 $9,844 $13,310 $15,992 $19,657 $22,830 $27,980
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $5,000 $6,873 $5,568 $4,248 $6,003 $6,417 $8,280 $9,844 $13,310 $15,992 $19,657 $22,830 $27,980

Long-term Assets
Long-term Assets $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000
Accumulated Depreciation $0 $133 $266 $399 $532 $665 $798 $931 $1,064 $1,197 $1,330 $1,463 $1,596
Total Long-term Assets $8,000 $7,867 $7,734 $7,601 $7,468 $7,335 $7,202 $7,069 $6,936 $6,803 $6,670 $6,537 $6,404
Total Assets $13,000 $14,740 $13,302 $11,849 $13,471 $13,752 $15,482 $16,913 $20,246 $22,795 $26,327 $29,367 $34,384

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 $0 $3,671 $3,884 $3,955 $5,506 $5,239 $5,736 $5,807 $6,590 $6,590 $7,083 $7,083 $7,731
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $3,671 $3,884 $3,955 $5,506 $5,239 $5,736 $5,807 $6,590 $6,590 $7,083 $7,083 $7,731

Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $3,671 $3,884 $3,955 $5,506 $5,239 $5,736 $5,807 $6,590 $6,590 $7,083 $7,083 $7,731

Paid-in Capital $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Retained Earnings ($37,000) ($37,000) ($37,000) ($37,000) ($37,000) ($37,000) ($37,000) ($37,000) ($37,000) ($37,000) ($37,000) ($37,000) ($37,000)
Earnings $0 ($1,931) ($3,581) ($5,106) ($5,034) ($4,487) ($3,254) ($1,894) $655 $3,205 $6,244 $9,283 $13,653
Total Capital $13,000 $11,069 $9,419 $7,894 $7,966 $8,513 $9,746 $11,106 $13,655 $16,205 $19,244 $22,283 $26,653
Total Liabilities and Capital $13,000 $14,740 $13,302 $11,849 $13,471 $13,752 $15,482 $16,913 $20,246 $22,795 $26,327 $29,367 $34,384

Net Worth $13,000 $11,069 $9,419 $7,894 $7,966 $8,513 $9,746 $11,106 $13,655 $16,205 $19,244 $22,283 $26,653

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