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Transcript of Oasis Juice
This sample business plan has been made available to users of Business Plan Pro®, business planningsoftware published by Palo Alto Software, Inc. Names, locations and numbers may have beenchanged, and substantial portions of the original plan text may have been omitted to preserveconfidentiality and proprietary information.
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Table of Contents
Page 1
1.0 Executive Summary.............................................................................................................................11.1 Objectives ...................................................................................................................................11.2 Mission ........................................................................................................................................1
Chart: Highlights ......................................................................................................................22.0 Company Summary.............................................................................................................................2
2.1 Company Ownership .................................................................................................................22.2 Company History........................................................................................................................3
Table: Past Performance .......................................................................................................4Chart: Past Performance .......................................................................................................5
2.3 Company Locations and Facilities ..........................................................................................53.0 Products ...............................................................................................................................................54.0 Market Analysis Summary ..................................................................................................................5
4.1 Market Segmentation ................................................................................................................6Table: Market Analysis ...........................................................................................................6Chart: Market Analysis (Pie) ..................................................................................................6
5.0 Strategy and Implementation Summary ............................................................................................75.1 Marketing Strategy.....................................................................................................................75.2 Sales Strategy ............................................................................................................................7
5.2.1 Sales Forecast ..............................................................................................................7Table: Sales Forecast ...................................................................................................7Chart: Sales Monthly......................................................................................................8Chart: Sales by Year......................................................................................................8
6.0 Management Summary.......................................................................................................................86.1 Personnel Plan ...........................................................................................................................9
Table: Personnel .....................................................................................................................97.0 Financial Plan ....................................................................................................................................10
7.1 Break-even Analysis................................................................................................................10Chart: Break-even Analysis .................................................................................................10Table: Break-even Analysis .................................................................................................10
7.2 Projected Profit and Loss .......................................................................................................11Table: Profit and Loss ..........................................................................................................11Chart: Profit Monthly .............................................................................................................12Chart: Profit Yearly ................................................................................................................12
7.3 Projected Cash Flow ...............................................................................................................12Table: Cash Flow ..................................................................................................................13Chart: Cash ...........................................................................................................................14
7.4 Projected Balance Sheet ........................................................................................................14Table: Balance Sheet ...........................................................................................................15
7.5 Business Ratios .......................................................................................................................15Table: Ratios .........................................................................................................................16
Table: Sales Forecast ...............................................................................................................................1Table: Personnel ........................................................................................................................................2Table: General Assumptions ....................................................................................................................3Table: Profit and Loss ...............................................................................................................................4Table: Cash Flow .......................................................................................................................................5Table: Balance Sheet ................................................................................................................................6
Oasis Juice
Page 1
1.0 Executive Summary
Oasis Juice has been a successful product brand in the city of Richmond for three years. Thecompany's natural, 100% fruit juices has grown in sales by 15% each year and is now availablein over 100 store outlets in the greater Richmond area. Oasis Juice will gross $580,000 in salesthis year. This was generated from a initial investment of $180,000.
Oasis Juice is planning to expand its operation to include distribution to stores within the entirestate. Owner funding and internally generated cash flow will enable most the expansion plan. The company will also secure a $100,000 short-term loan. Sales projections for the next threeyears are based on current sales success with the target customer base in Richmond. Initialcontacts have been completed with retail outlets throughout the state and the potentialtarget markets have been identified.
This plan will result in sales revenues growing to $1.2 million by Year 2.
1.1 Objectives
The objectives of Oasis Juice are the following:
· Create a state-wide sales staff.· Establish strong sales in the state's five metro areas by Year 2.· Maintain tight control of cost and operation during expansion.
1.2 Mission
Oasis Juice's mission is as follows:
· Quality: Our fruit juices are the highest quality, most nutritious food products...because we will accept nothing less.
· Innovative: Our products have always been in the forefront of the health and nutritionwave. Innovative products, state of the art manufacturing, quality assurance andindustry expertise are the bases for our past and future successes.
· Integrity: Our customers depend on the quality of our juice products. Our commitmentto the highest standard is the foundation of our customer's trust in Oasis Juice. Deliveringfreshly made juice to consumers depends on extensive cooperation and mutual reliancebetween supplier and retailer. We stand behind our product, our service and our word.
Oasis Juice
Page 2
2.0 Company Summary
Oasis Juice has built a reputation on offering the most delicious, nutritious, 100% naturaljuices with no artificial flavors, colors or preservatives.
2.1 Company Ownership
Oasis Juice is owned by Tama Gardner and William Harris.
Oasis Juice
Page 3
2.2 Company History
Oasis Juice had its humble beginnings in the kitchen of Tama Gardner. It was in herkitchen that she and William Harris first created the fruit drinks that would soon become thebasis for Oasis Juice.
Initially, the fruit drinks were sold at Richmond's weekend craft fair. They proved to be sopopular that the partnership pooled their resources and began Oasis Juice. Over the next threeyears, Oasis Juice's drinks, shakes, and smoothies have become one of the city's most visiblesigns of a healthy life style.
Oasis Juice's operations have expanded dramatically over the past three years. Currently, thecompany has a staff of ten in production, delivery, and sales.
The following table and chart illustrate the rapid sales success of Oasis Juice.
Oasis Juice
Page 4
Table: Past Performance
Past Performance
1999 2000 2001
Sales $450,000 $520,000 $580,000
Gross Margin $120,000 $143,000 $160,000
Gross Margin % 26.67% 27.50% 27.59%
Operating Expenses $200,000 $240,000 $280,000
Collection Period (days) 0 0 76
Inventory Turnover 15.00 15.00 15.00
Balance Sheet
1999 2000 2001
Current Assets
Cash $20,000 $30,000 $40,000
Accounts Receivable $49,000 $58,000 $80,000
Inventory $10,000 $10,000 $10,000
Other Current Assets $5,000 $5,000 $5,000
Total Current Assets $84,000 $103,000 $135,000
Long-term Assets
Long-term Assets $70,000 $50,000 $50,000
Accumulated Depreciation $4,000 $8,000 $12,000
Total Long-term Assets $66,000 $42,000 $38,000
Total Assets $150,000 $145,000 $173,000
Current Liabil ities
Accounts Payable $30,000 $20,000 $20,000
Current Borrowing $0 $0 $0
Other Current Liabil ities (interest free) $0 $0 $0
Total Current Liabil ities $30,000 $20,000 $20,000
Long-term Liabil ities $60,000 $40,000 $40,000
Total Liabil ities $90,000 $60,000 $60,000
Paid-in Capital $30,000 $40,000 $80,000
Retained Earnings $30,000 $45,000 $9,000
Earnings $0 $0 $24,000
Total Capital $60,000 $85,000 $113,000
Total Capital and Liabil ities $150,000 $145,000 $173,000
Other Inputs
Payment Days 0 0 12
Sales on Credit $0 $0 $330,000
Receivables Turnover 0.00 0.00 4.13
Oasis Juice
Page 5
2.3 Company Locations and Facilities
Oasis Juice is located on 1234 Main St.
3.0 Products
Oasis Juice offers the following products:
· Fruit and vegetable juices;· Smoothies;· Super food drinks;· Fruit and vegetable shakes.
4.0 Market Analysis Summary
The demographics of Oasis Juice customers are as follows:
· Young professional, ages 25 - 45;· Average income of $40,000+ a year;· Involved in athletic activity;· Shop in upscale health/natural food stores.
Oasis Juice
Page 6
4.1 Market Segmentation
Oasis Juice has identified seven metro locations within the state where we can reach ourtarget customers:
· Montclair;· Riley;· Ashford;· Tracy;· Wilmington;· Langsford;· Willard.
Table: Market Analysis
Market Analysis
2002 2003 2004 2005 2006
Potential Customers Growth CAGR
Montclair 10% 60,000 66,000 72,600 79,860 87,846 10.00%
Riley 10% 75,000 82,500 90,750 99,825 109,808 10.00%
Ashford 10% 85,000 93,500 102,850 113,135 124,449 10.00%
Tracy 10% 75,000 82,500 90,750 99,825 109,808 10.00%
Wilmington 10% 62,000 68,200 75,020 82,522 90,774 10.00%
Langsford 10% 90,000 99,000 108,900 119,790 131,769 10.00%
Willard 10% 48,000 52,800 58,080 63,888 70,277 10.00%
Total 10.00% 495,000 544,500 598,950 658,845 724,731 10.00%
Oasis Juice
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5.0 Strategy and Implementation Summary
The strategy of Oasis Juice is to focus on our niche market which is health/natural food storesthat serve the young active professional.
5.1 Marketing Strategy
Oasis Juice will introduce its products at 20% off regular price during the first month. In addition,Oasis Juice will co-sponsor local athletic charitable events to raise the visibility of the brandname.
5.2 Sales Strategy
The sales strategy is to build customer loyalty in the new markets. Oasis Juice will increase itssales force to focus on the new markets.
5.2.1 Sales Forecast
The following table and charts shows the rapid ramp-up of sales during the first twelve monthsof operation.
Table: Sales Forecast
Sales Forecast
2002 2003 2004
Sales
Products $1,020,000 $1,200,000 $1,300,000
Other $0 $0 $0
Total Sales $1,020,000 $1,200,000 $1,300,000
Direct Cost of Sales 2002 2003 2004
Products $278,000 $310,000 $360,000
Other $0 $0 $0
Subtotal Direct Cost of Sales $278,000 $310,000 $360,000
Oasis Juice
Page 8
6.0 Management Summary
Co-owners, Tama Gardner and William Harris, currently manage the daily operation of Oasis Juice.Tama and William have fifteen years of experience working in natural food stores. Tama isresponsible for production and distribution. William is the Sales Manager for Oasis Juice.
Oasis Juice
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Tama Gardner was one of the founding members of the Mason Peak Natural Grocery, 4th andTyler. The grocery was established in 1992 by the non-profit NEDCO, the Neighborhood EconomicDevelopment Corporation, and a number of concerned neighbors who wished to save thehistoric Mason Peak Market from destruction. Tama started as a cashier and advanced to theposition of Store Manager in 1996. The grocery has grown into a community fixture under hermanagement.
William Harris ran the University's now defunct Natural Food Collective for three years beforethe program was defunded. The small on-campus store provided natural food products tostudent customers. Sales increased by 20% each year under his leadership. Unfortunately, thestate budget shortfall impacted the continued funding of the program. Prior to this position,William worked as Buyer for Sunburst Natural Foods for four years.
6.1 Personnel Plan
The following table shows the project personnel plan for Oasis Juice.
Table: Personnel
Personnel Plan
2002 2003 2004
Tama Gardner $36,000 $40,000 $44,000
Will iam Harris $36,000 $40,000 $44,000
Production Staff $120,000 $130,000 $140,000
Distribution Staff $120,000 $130,000 $140,000
Sales Staff $72,000 $76,000 $80,000
Total People 13 13 13
Total Payroll $384,000 $416,000 $448,000
Oasis Juice
Page 10
7.0 Financial Plan
The following is the financial plan for Oasis Juice.
7.1 Break-even Analysis
The monthly break-even point is $66,534.
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $66,534
Assumptions:
Average Percent Variable Cost 27%
Estimated Monthly Fixed Cost $48,400
Oasis Juice
Page 11
7.2 Projected Profit and Loss
The following table and charts are the projected profit and loss for three years.
Table: Profit and Loss
Pro Forma Profit and Loss
2002 2003 2004
Sales $1,020,000 $1,200,000 $1,300,000
Direct Cost of Sales $278,000 $310,000 $360,000
Other Production Expenses $0 $0 $0
Total Cost of Sales $278,000 $310,000 $360,000
Gross Margin $742,000 $890,000 $940,000
Gross Margin % 72.75% 74.17% 72.31%
Expenses
Payroll $384,000 $416,000 $448,000
Sales and Marketing and Other Expenses $72,000 $132,000 $132,000
Depreciation $9,600 $9,600 $9,600
Leased Equipment $0 $0 $0
Util ities $12,000 $12,000 $12,000
Insurance $9,600 $9,600 $9,600
Rent $36,000 $36,000 $36,000
Payroll Taxes $57,600 $62,400 $67,200
Other $0 $0 $0
Total Operating Expenses $580,800 $677,600 $714,400
Profit Before Interest and Taxes $161,200 $212,400 $225,600
EBITDA $170,800 $222,000 $235,200
Interest Expense $9,310 $13,703 $14,203
Taxes Incurred $45,567 $59,609 $63,419
Net Profit $106,323 $139,088 $147,978
Net Profit/Sales 10.42% 11.59% 11.38%
Oasis Juice
Page 12
7.3 Projected Cash Flow
The following table and chart are the projected cash flow for three years.
Oasis Juice
Page 13
Table: Cash Flow
Pro Forma Cash Flow
2002 2003 2004
Cash Received
Cash from Operations
Cash Sales $255,000 $300,000 $325,000
Cash from Receivables $697,500 $873,971 $960,539
Subtotal Cash from Operations $952,500 $1,173,971 $1,285,539
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $100,163 $0 $0
New Other Liabil ities (interest-free) $36,000 $36,000 $36,000
New Long-term Liabil ities $36,000 $36,000 $36,000
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 $1,124,663 $1,245,971 $1,357,539
Expenditures 2002 2003 2004
Expenditures from Operations
Cash Spending $384,000 $416,000 $448,000
Bill Payments $511,954 $633,013 $695,546
Subtotal Spent on Operations $895,954 $1,049,013 $1,143,546
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $19,992 $19,992 $19,992
Other Liabil ities Principal Repayment $0 $0 $0
Long-term Liabil ities Principal Repayment $18,000 $18,300 $3,700
Purchase Other Current Assets $24,000 $30,000 $40,000
Purchase Long-term Assets $24,000 $30,000 $30,000
Dividends $0 $0 $0
Subtotal Cash Spent $981,946 $1,147,305 $1,237,238
Net Cash Flow $142,717 $98,666 $120,302
Cash Balance $182,717 $281,383 $401,684
Oasis Juice
Page 14
7.4 Projected Balance Sheet
The following table is the projected balance sheet for three years.
Oasis Juice
Page 15
Table: Balance Sheet
Pro Forma Balance Sheet
2002 2003 2004
Assets
Current Assets
Cash $182,717 $281,383 $401,684
Accounts Receivable $147,500 $173,529 $187,990
Inventory $33,000 $31,688 $38,323
Other Current Assets $29,000 $59,000 $99,000
Total Current Assets $392,217 $545,600 $726,997
Long-term Assets
Long-term Assets $74,000 $104,000 $134,000
Accumulated Depreciation $21,600 $31,200 $40,800
Total Long-term Assets $52,400 $72,800 $93,200
Total Assets $444,617 $618,400 $820,197
Liabil ities and Capital 2002 2003 2004
Current Liabil ities
Accounts Payable $51,123 $52,110 $57,621
Current Borrowing $80,171 $60,179 $40,187
Other Current Liabil ities $36,000 $72,000 $108,000
Subtotal Current Liabil ities $167,294 $184,289 $205,808
Long-term Liabil ities $58,000 $75,700 $108,000
Total Liabil ities $225,294 $259,989 $313,808
Paid-in Capital $80,000 $80,000 $80,000
Retained Earnings $33,000 $139,323 $278,411
Earnings $106,323 $139,088 $147,978
Total Capital $219,323 $358,411 $506,389
Total Liabil ities and Capital $444,617 $618,400 $820,197
Net Worth $219,323 $358,411 $506,389
7.5 Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on theStandard Industrial Classification (SIC) code 5149, Groceries and related products, are shown forcomparison.
Oasis Juice
Page 16
Table: Ratios
Ratio Analysis
2002 2003 2004 Industry Profi le
Sales Growth 75.86% 17.65% 8.33% 4.60%
Percent of Total Assets
Accounts Receivable 33.17% 28.06% 22.92% 33.30%
Inventory 7.42% 5.12% 4.67% 26.00%
Other Current Assets 6.52% 9.54% 12.07% 20.90%
Total Current Assets 88.21% 88.23% 88.64% 80.20%
Long-term Assets 11.79% 11.77% 11.36% 19.80%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabil ities 37.63% 29.80% 25.09% 45.20%
Long-term Liabil ities 13.04% 12.24% 13.17% 10.00%
Total Liabil ities 50.67% 42.04% 38.26% 55.20%
Net Worth 49.33% 57.96% 61.74% 44.80%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 72.75% 74.17% 72.31% 44.10%
Selling, General & Administrative Expenses 62.32% 62.58% 60.92% 26.70%
Advertising Expenses 5.88% 10.00% 9.23% 0.70%
Profit Before Interest and Taxes 15.80% 17.70% 17.35% 0.80%
Main Ratios
Current 2.34 2.96 3.53 1.69
Quick 2.15 2.79 3.35 1.01
Total Debt to Total Assets 50.67% 42.04% 38.26% 55.20%
Pre-tax Return on Net Worth 69.25% 55.44% 41.75% 3.60%
Pre-tax Return on Assets 34.16% 32.13% 25.77% 8.00%
Additional Ratios 2002 2003 2004
Net Profit Margin 10.42% 11.59% 11.38% n.a
Return on Equity 48.48% 38.81% 29.22% n.a
Activity Ratios
Accounts Receivable Turnover 5.19 5.19 5.19 n.a
Collection Days 59 65 68 n.a
Inventory Turnover 10.91 9.58 10.28 n.a
Accounts Payable Turnover 10.62 12.17 12.17 n.a
Payment Days 28 30 29 n.a
Total Asset Turnover 2.29 1.94 1.58 n.a
Debt Ratios
Debt to Net Worth 1.03 0.73 0.62 n.a
Current Liab. to Liab. 0.74 0.71 0.66 n.a
Liquidity Ratios
Net Working Capital $224,923 $361,311 $521,189 n.a
Interest Coverage 17.31 15.50 15.88 n.a
Additional Ratios
Assets to Sales 0.44 0.52 0.63 n.a
Current Debt/Total Assets 38% 30% 25% n.a
Acid Test 1.27 1.85 2.43 n.a
Sales/Net Worth 4.65 3.35 2.57 n.a
Oasis Juice
Page 17
Dividend Payout 0.00 0.00 0.00 n.a
Appendix
Page 1
Table: Sales Forecast
Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Products 0% $60,000 $60,000 $70,000 $80,000 $80,000 $90,000 $90,000 $90,000 $100,000 $100,000 $100,000 $100,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $60,000 $60,000 $70,000 $80,000 $80,000 $90,000 $90,000 $90,000 $100,000 $100,000 $100,000 $100,000
Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Products $13,000 $13,000 $17,000 $20,000 $20,000 $25,000 $25,000 $25,000 $30,000 $30,000 $30,000 $30,000
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $13,000 $13,000 $17,000 $20,000 $20,000 $25,000 $25,000 $25,000 $30,000 $30,000 $30,000 $30,000
Appendix
Page 2
Table: Personnel
Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Tama Gardner 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
William Harris 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
Production Staff 0% $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Distribution Staff 0% $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Sales Staff 0% $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000
Total People 13 13 13 13 13 13 13 13 13 13 13 13
Total Payroll $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000
Appendix
Page 3
Table: General Assumptions
General Assumptions
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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
Appendix
Page 4
Table: Profit and Loss
Pro Forma Profit and Loss
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $60,000 $60,000 $70,000 $80,000 $80,000 $90,000 $90,000 $90,000 $100,000 $100,000 $100,000 $100,000
Direct Cost of Sales $13,000 $13,000 $17,000 $20,000 $20,000 $25,000 $25,000 $25,000 $30,000 $30,000 $30,000 $30,000
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $13,000 $13,000 $17,000 $20,000 $20,000 $25,000 $25,000 $25,000 $30,000 $30,000 $30,000 $30,000
Gross Margin $47,000 $47,000 $53,000 $60,000 $60,000 $65,000 $65,000 $65,000 $70,000 $70,000 $70,000 $70,000
Gross Margin % 78.33% 78.33% 75.71% 75.00% 75.00% 72.22% 72.22% 72.22% 70.00% 70.00% 70.00% 70.00%
Expenses
Payroll $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000
Sales and Marketing and Other
Expenses
$6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000
Depreciation $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Insurance $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Rent $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Payroll Taxes 15% $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $48,400 $48,400 $48,400 $48,400 $48,400 $48,400 $48,400 $48,400 $48,400 $48,400 $48,400 $48,400
Profit Before Interest and Taxes ($1,400) ($1,400) $4,600 $11,600 $11,600 $16,600 $16,600 $16,600 $21,600 $21,600 $21,600 $21,600
EBITDA ($600) ($600) $5,400 $12,400 $12,400 $17,400 $17,400 $17,400 $22,400 $22,400 $22,400 $22,400
Interest Expense $401 $469 $538 $606 $674 $742 $810 $878 $946 $1,014 $1,082 $1,151
Taxes Incurred ($540) ($561) $1,219 $3,298 $3,278 $4,757 $4,737 $4,717 $6,196 $6,176 $6,155 $6,135
Net Profit ($1,261) ($1,309) $2,844 $7,696 $7,648 $11,101 $11,053 $11,006 $14,458 $14,410 $14,363 $14,314
Net Profit/Sales -2.10% -2.18% 4.06% 9.62% 9.56% 12.33% 12.28% 12.23% 14.46% 14.41% 14.36% 14.31%
Appendix
Page 5
Table: Cash Flow
Pro Forma Cash Flow
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash Received
Cash from Operations
Cash Sales $15,000 $15,000 $17,500 $20,000 $20,000 $22,500 $22,500 $22,500 $25,000 $25,000 $25,000 $25,000
Cash from Receivables $40,000 $41,500 $45,000 $45,250 $52,750 $60,000 $60,250 $67,500 $67,500 $67,750 $75,000 $75,000
Subtotal Cash from Operations $55,000 $56,500 $62,500 $65,250 $72,750 $82,500 $82,750 $90,000 $92,500 $92,750 $100,000 $100,000
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 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,500
New Other Liabilities (interest-free) $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
New Long-term Liabilities $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
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 $69,333 $70,833 $76,833 $79,583 $87,083 $96,833 $97,083 $104,333 $106,833 $107,083 $114,333 $114,500
Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Expenditures from Operations
Cash Spending $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000
Bill Payments $21,092 $32,619 $28,850 $38,891 $42,695 $39,953 $51,417 $46,148 $46,596 $58,060 $52,791 $52,839
Subtotal Spent on Operations $53,092 $64,619 $60,850 $70,891 $74,695 $71,953 $83,417 $78,148 $78,596 $90,060 $84,791 $84,839
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 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Purchase Other Current Assets $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Purchase Long-term Assets $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $60,258 $71,785 $68,016 $78,057 $81,861 $79,119 $90,583 $85,314 $85,762 $97,226 $91,957 $92,005
Net Cash Flow $9,075 ($952) $8,817 $1,526 $5,222 $17,714 $6,500 $19,019 $21,071 $9,857 $22,376 $22,495
Cash Balance $49,075 $48,123 $56,940 $58,465 $63,687 $81,401 $87,900 $106,919 $127,990 $137,847 $160,222 $182,717
Appendix
Page 6
Table: Balance Sheet
Pro Forma Balance Sheet
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets Starting Balances
Current Assets
Cash $40,000 $49,075 $48,123 $56,940 $58,465 $63,687 $81,401 $87,900 $106,919 $127,990 $137,847 $160,222 $182,717
Accounts Receivable $80,000 $85,000 $88,500 $96,000 $110,750 $118,000 $125,500 $132,750 $132,750 $140,250 $147,500 $147,500 $147,500
Inventory $10,000 $14,300 $14,300 $18,700 $22,000 $22,000 $27,500 $27,500 $27,500 $33,000 $33,000 $33,000 $33,000
Other Current Assets $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 $19,000 $21,000 $23,000 $25,000 $27,000 $29,000
Total Current Assets $135,000 $155,375 $159,923 $182,640 $204,215 $218,687 $251,401 $267,150 $288,169 $324,240 $343,347 $367,722 $392,217
Long-term Assets
Long-term Assets $50,000 $52,000 $54,000 $56,000 $58,000 $60,000 $62,000 $64,000 $66,000 $68,000 $70,000 $72,000 $74,000
Accumulated Depreciation $12,000 $12,800 $13,600 $14,400 $15,200 $16,000 $16,800 $17,600 $18,400 $19,200 $20,000 $20,800 $21,600
Total Long-term Assets $38,000 $39,200 $40,400 $41,600 $42,800 $44,000 $45,200 $46,400 $47,600 $48,800 $50,000 $51,200 $52,400
Total Assets $173,000 $194,575 $200,323 $224,240 $247,015 $262,687 $296,601 $313,550 $335,769 $373,040 $393,347 $418,922 $444,617
Liabilities and Capital Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Current Liabilities
Accounts Payable $20,000 $31,669 $27,558 $37,464 $41,377 $38,233 $49,879 $44,609 $44,655 $56,301 $51,030 $51,076 $51,123
Current Borrowing $0 $6,667 $13,334 $20,001 $26,668 $33,335 $40,002 $46,669 $53,336 $60,003 $66,670 $73,337 $80,171
Other Current Liabilities $0 $3,000 $6,000 $9,000 $12,000 $15,000 $18,000 $21,000 $24,000 $27,000 $30,000 $33,000 $36,000
Subtotal Current Liabilities $20,000 $41,336 $46,892 $66,465 $80,045 $86,568 $107,881 $112,278 $121,991 $143,304 $147,700 $157,413 $167,294
Long-term Liabilities $40,000 $41,500 $43,000 $44,500 $46,000 $47,500 $49,000 $50,500 $52,000 $53,500 $55,000 $56,500 $58,000
Total Liabilities $60,000 $82,836 $89,892 $110,965 $126,045 $134,068 $156,881 $162,778 $173,991 $196,804 $202,700 $213,913 $225,294
Paid-in Capital $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000
Retained Earnings $9,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000
Earnings $24,000 ($1,261) ($2,570) $274 $7,970 $15,619 $26,720 $37,773 $48,778 $63,236 $77,646 $92,009 $106,323
Total Capital $113,000 $111,739 $110,430 $113,274 $120,970 $128,619 $139,720 $150,773 $161,778 $176,236 $190,646 $205,009 $219,323
Total Liabilities and Capital $173,000 $194,575 $200,323 $224,240 $247,015 $262,687 $296,601 $313,550 $335,769 $373,040 $393,347 $418,922 $444,617
Net Worth $113,000 $111,739 $110,430 $113,274 $120,970 $128,619 $139,720 $150,773 $161,778 $176,236 $190,646 $205,009 $219,323