mid atlantic recycling

8/2/2019 Mid Atlantic Recycling

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March 2004

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Table of Contents

1.0 Executive Summary.............................................................................................................................11.1 Mission........................................................................................................................................21.2 Keys to Success ........................................................................................................................31.3 Objectives ...................................................................................................................................3

2.0 Company Summary.............................................................................................................................32.1 Start-up Summar ......................................................................................................................32.2 Company Locations and Faci lities ..........................................................................................52.2.1 Government Regulation..........................................................................................................5

2.3 Company Ownership .................................................................................................................53.0 Products and Services........................................................................................................................5

3.1 Product and Service Description.............................................................................................63.2 Competitive Comparison..........................................................................................................73.3 Sales Literature..........................................................................................................................83.4 Technolog ..................................................................................................................................93.5 Future Products and Services ..................................................................................................9

4.0 Market Analysis Summar ................................................................................................................10

4.1 Market Segmentation..............................................................................................................104.2 Target Market Segment Strategy...........................................................................................124.2.1 Market Growth.......................................................................................................................124.2.2 Market Needs .......................................................................................................................134.2.3 Market Trends.......................................................................................................................134.3 Service Business Analysis .....................................................................................................134.3.1 Business Participants ..........................................................................................................134.3.2 Distributing a Service...........................................................................................................14

4.3.3 Competition and Buying Patterns.......................................................................................144.3.4 Main Competitors.................................................................................................................14

5.0 Strategy and Implementation Summar ..........................................................................................145 1 Value Proposition 15


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Table of Contents8.5 Projected Profit and Loss .......................................................................................................25

8.6 Projected Cash Flow...............................................................................................................288.7 Projected Balance Sheet........................................................................................................318.8 Business Ratios.......................................................................................................................32


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Mid-Atlantic Recycling

1.0 Executive Summary

Mid-Atlantic Recycling, LLC's area of business will be to collect, recycle/compost, and marketwaste from municipality waste processing plants for use use as a consumer good. This recycled

product will meet two critical needs:

1. It will give municipalities a feasible and cost effective alternative to landfilling the waste,

and2. It will help meet the growing demand for organic soil enhancers and fertilizers. The material

that will be recycled is human waste sludge.

Our recycled waste will be targeted toward fertilizer manufacturers, nurseries, landscapers,farmers, government agencies, golf courses, and others. All of these potential customers willbenefit from the compost's numerous soil enhancing characteristics.

Additionally, we will offer a service to waste processing plants owned by municipalities. Currently

these plants face several issues regarding the disposal of human waste sludge. Landfills are fillingup and costs of disposal are rising. Also, due to recent legislation, as of 2008 many landfills will

no longer be able to accept human waste sludge. Mid-Atlantic Recycling will solve this problemby accepting this waste at a nominal charge and recycling it into a useful product.

Mid-Atlantic Recycling is entering a niche market in that human waste sludge has not beenrecycled on any sizeable scale in West Virginia or the Mid-Atlantic region. This is a unique and

viable concept that addresses the needs of various customers and reaches an untapped marketwith tremendous growth potential.

One of the most attractive aspects is that the business is projected to attain a strong cashposition and achieve profitability in the first year of operation. Due to a large need for these

products and services, and a lack of direct competition, our projection of quick profitability isattainable.


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1.1 Mission

Mid-Atlantic Recycling's mission is threefold. Our first responsibility is to ensure the financial well

being of the business. Second, is to provide municipalities with an economical, alternative for the

disposal of human waste sludge. Third, is to provide a top quality, recycled material to theconsumer so that they may benefit from compost's many good properties and organic elements.In addition, we hope to build in the consumer a positive feeling about the feasibility of using

recycled human sludge as a fertilizer.


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1.2 Keys to Success

The keys to success in our business are:

Overcome perception issues that may exist with using compost made from human wastesludge.

Establish and build relationships and trust with customers to help shield from future

competition. Expand rapidly to control the market.

Offer reasonable prices. Get investment.

1.3 Objectives

1. Flush sales for the first twelve months of operations and growing each year thereafter.2. Establish the recycling facility in Monroe County, WV; to include six composting units in

2004.3. Open additional facilities in 2005 and 2006 to serve other areas of the state and the Mid-

Atlantic region.4. Continue to market Mid-Atlantic Recycling by contacting and soliciting business from

additional municipalities and compost using customers.

2.0 Company Summary

The legal name of the company will be Mid-Atlantic Recycling, LLC. Mid-Atlantic Recycling will be

formed as a Limited Liability Company in West Virginia. Due to its tax benefits, a LLC will beadvantageous.

2.1 Start-up Summar


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Table: Start-up

Start-up

Requirement

Start-up Expense

Legal $500

Phone/uti li ties deposit $500


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2.2 Company Locations and Faci lities

Mid-Atlantic Recycling will operate in Monroe County, WV, near the community of Lindside, WV.The Lindside location is approximately 10 miles from Peterstown, WV. The recycling facilities will

be located on a 58+ acre property owned by company president, Oliver Pyne; 5 acres will be setaside for the recycling facility set up and operation. This site is ideal as it provides access tolocal municipalities and to Interstates 77 and 81. Also there is room for expansion as the

business grows.

Additionally, Mid-Atlantic Recycling's business location is located in a federally designated"historically underutilized business zone" or HUBZone. As discussed under the Competitive

Comparison section below, this designation gives Mid-Atlantic Recycling certain advantages inselling to the government.

As the business expands to additional counties in subsequent years, we will need to leaseproperty on which to site our facilities.

2.2.1 Government Regulation

Because Mid-Atlantic Recycling recycles a waste product and incorporates it into anenvironmental product, the company is under the potential jurisdiction of the EnvironmentalProtection Agency. The recycling and sale of human waste may be regulated by federal or state

authorities. Mid-Atlantic Recycling will obtain all required federal and state permits and licensesto operate its facilities.

2.3 Company Ownership

Mid-Atlantic Recycling is owned by its founder and president, Oliver Pyne. Mr. Pyne will be anactive participant in management decisions.

3 0 Products and Services


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3.1 Product and Service Description

Nationwide, many landfills are closing or exhausting their remaining capacity. However, due toenvironmental restrictions, zoning laws, and other regulatory and bureaucratic delays, very few

new landfills are opening to offset the looming space crisis. Meanwhile municipal waste, includinghuman waste sludge, continues to flow in greater volume. Handling their waste streams hasbecome a major problem for most municipalities. With more waste created daily, landfills

nationwide are rapidly facing a capacity crisis.

In West Virginia this situation has been made even more critical due to recent passage oflegislation requiring that by 2008 only landfills lined with a very heavy duty liner will be able to

accept human waste sludge. Thus, in the not too distant future, most landfills now acceptingthe sludge will no longer be able to accept it. Additionally, it will be very impractical, and costprohibitive, to install the required liner in working landfills. Therefore, options for disposing of

human waste sludge are about to become very, very limited, which means disposal will becomemuch, much more costly.

Considering this environment, we will offer municipalities an extremely valuable service -- an

alternative means for disposal of their human waste sludge. Municipalities currently pay landfills a"tipping" fee to dispose of their waste. The tipping fee is typically $15 to $50 per ton; theaverage tipping fee in West Virginia is $32 per ton. As noted above, in the near future many

landfills will stop receiving human waste sludge and prices are expected to increase dramaticallydue to simple supply and demand. Not only will tipping fees increase, but as municipalities have

to go farther and farther afield to find accommodating landfills, transportation costs for thewaste will also increase. We will help them solve this problem, and ultimately save them, and

their tax payers, money. We will place skid boxes at their waste treatment plants and removethe sludge for them. The tipping fee, a fee for skid box rental, and a fee for picking up andreturning the skid boxes will be paid to Mid-Atlantic Recycling by the municipalities. This will be

done at a price competitive with or lower than what they are now paying.

Mid-Atlantic Recycling will receive the sludge and recycle it using an organic composter. This will


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3.2 Competitive Comparison

The Mid-Atlantic Recycling business model adds great value through both our service and ourproduct.

Our service, accepting human waste sludge from municipalities, partially relieves the burden onrapidly filling landfills, and provides an alternative disposal channel to municipalities facing a

legislative deadline which threatens to cut off their traditional means of disposing of the waste.

As noted earlier, there is a trend in the market away from chemical fertilizers toward morenatural organic soil enhancements. Our product, composted human sludge, responds to this

market trend. Compost has many advantages over traditional fertilizer. Traditional chemicalfertilizer sells for approximately $250 per ton while our compost will be priced at around $50-$100per ton. Our compost is similar to fertilizers; however, it reacts differently from most fertilizers.

Compost releases nutrients over a long period of time, on average two to three months. Thechemical reaction in present fertilizers takes place immediately and usually lasts no longer than

three to four weeks. After three to four weeks, the customer may have to buy more fertilizer,costing both time and money. On golf courses, when chemical fertilizer is applied, golf must

cease for the day; however, when compost is applied, golf can continue uninterrupted. Asdemonstrated, compost has many advantages over traditional fertilizers.

Our human sludge compost also has distinct advantages over other types of composts as well.To be a viable, lucrative, growing business, we must be a reliable source of compost supply to

our customers. To serve the market and grow in it availability of our product cannot beintermittent or "hit and miss." We must be able to meet the demand every time within a

reasonable delivery time. By the inherent nature of the business, human waste sludge will alwaysbe available for composting in large, dependable quantities, at one or a few locations, at aconstant/stable quality and at a stable cost. Other composts cannot compete with this in that

similar quantities are not available from so few locations which increases their labor andtransportation costs related to collection. Additionally, if collection is from farms, they may use

horse manure, poultry manure, cow manure, hog manure, etc. in varying quantities over time.


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Mid-Atlantic RecyclingSmall Disadvantaged Business (SDB) program: This program offers several important

incentives:

1. Price evaluation adjustment: qualified SDBs receive a price evaluation adjustment of up to

10 percent on procurements where mandated by regulation. The price evaluation adjustmentfor SDBs bidding as primes became effective October 1, 1998. Regulations mandate thisapproach in competitive acquisitions over the simplified acquisition threshold (usually

$100,000) where the SIC Code for the prime contract is authorized by U.S. Department ofCommerce benchmarks. The price evaluation adjustment does not apply to 8(a) acquisitions

and small business set-asides.

2. Evaluation factor: qualified prime contractors can receive a credit when using SDBs assubcontractors. This evaluation factor for SDB participation became effective January 1,1999. The incentive applies only to competitive negotiated acquisitions over $500,000, or$1,000,000 in construction. Firms certified by the SBA as SDBs remain on the list of SDB-

certified firms for a period of three years.

The 8(a) Program: SBA s 8(a) program, named for a section of the Small Business Act, is abusiness development initiative that helps socially and economically disadvantaged Americans

gain access to economic opportunity.

1. Participants can receive sole-source contracts, up to a ceiling of $3 million for services.

While SBA helps 8(a) firms build their competitive and institutional know-how, the agencyalso encourages them to participate in competitive acquisitions.

2. Federal acquisition policies encourage federal agencies to award a certain percentage oftheir contracts to SDBs. To speed up the award process, the SBA has signed Memoranda of

Understanding (MOUs) with 25 federal agencies allowing them to contract directly withcertified 8(a) firms.

3. Recent changes permit 8(a) firms to form joint ventures and teams to bid on contracts. This

enhances the ability of 8(a) firms to perform larger prime contracts and overcome theeffects of contract bundling, the combining of two or more contracts together into one large

contract.


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3.4 Technology

Composting is biological decomposition of organic materials. Bacteria, fungi, protozoans, insects,worms and other organisms typically play a part in the decomposition process. Composting is

nature s means of recyc ling. It will turn grass clipping, leaves, vegetables, fruit and otherorganic materials into a very beneficial soil amendment. Composting is also an effective means ofreducing the amount of solid wastes going into our nation s landfills. Mid-Atlantic Recycling's

process will greatly speed up the natural composting process.

As briefly described above, the human waste sludge used in Mid-Atlantic Recycling's process willbe picked up from municipalities in skid boxes provided by Mid-Atlantic Recycling. Accepting the

waste, rental of the boxes, and transportation will all be sold as a service to the municipalities.

Upon arrival at our recycling facility, the sludge will be placed into one of six organic in-vessel

digesters. These vessels are proven for composting various types of animal manure. In addition,Mid-Atlantic Recycling's president, Oliver Pyne, has tested the unit' ability to successfully

compost human waste. The material compost produced was tested by the equipmentmanufacturer (CV Organics, Inc. of White Springs, TN) and found to be a high quality compost.

Additionally, the compost material was recently tested by West Virginia University AgriculturalService Laboratory and found to be an exceptional soil amendment.

These recycling/composting units work as follows. The unit is 50 feet long. The sludge is placedinto one end of the unit. To make compost, additional dry fibrous material such as sawdust,

wood chips, or bark must be added. We will acquire a steady supply of these from InternationalPaper Company.

The unit turns slowly, making four revolutions per hour, to ensure that adequate oxygen gets to

all of the composting material. Also, the unit is set on a very slight, 2 degree, angle so that asthe unit turns, the material slowly migrates toward the opposite end of the unit. During thecomposting process, the material heats up (due to the natural reaction) to temperatures of

approximately 140 degrees Farenheit; this kills any harmful bacteria in the composting material.


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4.0 Market Analysis Summar

There are customers at both ends of our supply chain that will benefit from our services andproducts. Municipalities will benefit from our service by having an alternative means of waste

disposal. Other potential customers who will benefit from our compost product include turf farms,fertilizer manufacturers, nurseries, landscapers, golf courses, homeowners, and even the federalgovernment for use in highway construct ion reseeding. Therefore, we have two basic market

segments; those waste treatment facilities which will benefit from our services and consumerswho will benefit from our product.

The Worldwatch Institute reports that landfills are overflowing and the costs of disposing of

sewage and garbage is rising. City leaders can relieve over extended municipal budgets, preventthe contamination of drinking water, and help farmers build healthier soils by recycling garbageand human waste back to farms. At least 13 U.S. states have 6 years or less before all of their

landfills are completely full. (Paper 135: Recycling Organic Waste: From Urban Pollutant to FarmResource.) We offer a service by which municipalities can dispose of their waste without it

having to be land filled anywhere. This is of great value to this customer.

At the other end of our process are the users of our compost. According to Cornell University(www.cals.cornell.edu/dept/compost.feas.study.html) composting is experiencing a resurgenceof activity which is driven by increased understanding of the agronomic benefits of compost

utilization, and rising disposal costs for municipal wastes. Also, according to Purdue University(www.ctic.purdue.edu/Core4/Nutrient/ManureMgt/Paper35.html) consumption of compost in the

commercial market is growing due to people looking for a more organic or natural substitute fortraditional chemical fertilizers. Recycling is at the forefront of responding to this growth trend in

the Mid-Atlantic USA. We will initially focus on selling compost to fertilizer manufacturers,nurseries, and landscapers. We already have commitments from a fertilizer manufacturer and a

landscaper to purchase 600 tons per year or more of our compost material.

Five major market segments for compost have been identified:


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Table: Market Analysis

Market Anal ysi

2004 2005 2006 2007 2008

Potential Customer Growth CAGR

Municipalities with treatment

plant

1% 34 34 34 34 34 0.00%

Compost user 5% 1,779 1,868 1,961 2,059 2,162 5.00%

Othe 0% 0 0 0 0 0 0.00%

Total 4.91% 1,813 1,902 1,995 2,093 2,196 4.91%


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4.2 Target Market Segment Strategy

To target our customers, we examined the market trends. Mid-Atlantic Recycling's productstarget buyers of organic fertilizers and soil enhancers. This market has grown significantly in

recent years and we expect to capture a quarter of this multi billion-dollar market.

This market growth is fueled by a more health conscious consumer. People are better informed

about the potential side effects associated with chemical fertilizer products both to their healthand to the environment.

The growth of a more organic approach to gardening comes at a time when chemical options are

diminishing. In 2000, the federal Environmental Protection Agency reached agreement with themakers of two widely used pesticides Diazinon and Chlorpyrifos to phase them out becauseof health problems associated with overexposure. Popular brands of Diazinon include Ortho and

Spectracide; Chlorpyrifos is marketed under the trade name Dursban and is included in numerousfamiliar products, including Ortho Lawn Insect Spray (Washington Post, Thursday, May 10,

2001).

According to an executive with the Scotts Co. in Marysville, Ohio, the pace of research intoorganic products continues feverishly, and their use is bound to increase.

Sales of organic foods have risen sharply. Organic food sales at the retail level totaled $10.4billion, according to Katherine DiMatteo, executive director of the Organic Trade Association.

This year, retail sales of organic foods are expected to exceed $15 billion with more than $32billion projected by 2009 (CNBC, Dec. 3, 2004).

Findings from a 15-year study at the Kamlath Institute, Newton, Pa., might lead to a solution

that could help reduce emissions of greenhouse gases. The researchers suggest thatregenerative agricultural management systems based on organic fertilizer can preserve carbonand nitrogen in the soil, thus reducing emissions. Moreover, they maintain that organic methods

can produce the same yields as conventional systems that use synthetic fertilizer. If the major


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4.2.2 Market Needs

Several companies compete in the fertilizer market. Their major selling points are performanceand price. However, health conscious consumers have created growing competition between

chemical and organic products. Mid-Atlantic Recycling's competition can be divided into twoforms: direct and indirect.

Our direct competitors would include other compost producers capable of producing sufficientproduct to supply the growing compost demand. There is no other compost producer in West

Virginia that meets this need. Therefore, we have no direct competition in the state.Additionally, there are only a handful in the entire Mid-Atlantic USA; therefore, our direct

competition on a regional basis is extremely limited.

Our indirect competitors are fertilizer manufacturers (who also are a part of our target market).

As noted elsewhere in this business plan, the trend is away from chemical fertilizers, towardnatural organic soil enhancers. Thus the market for chemical fertilizer is decreasing while our

market is increasing.

4.2.3 Market Trends

Current trends in the market greatly favor the start-up of our recycling business.

Laws have been passed in West Virginia placing greater restrictions of the types of landfillswhich can receive human waste sludge. These laws take effect in 2008. Municipalities are

already seeking alternative means of disposal as disposal prices are expected to skyrocket aslandfill space decreases dramatically. Our recycling service solves this problem for municipalities.

The organic industry now boasts sales in excess of $9 billion at retail, with growth forecast tocontinue at 25% per year (http://lists.ibiblio.org/pipermail/marketfarming/2002-

October/000063.html). The demand for compost to use in organic farming and other applicationsis growing rapidly


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4.3.2 Distributing a Service

Indirect competitors are those companies that offer only chemical soil enhancers and plantfoods. Mid-Atlantic Recycling feels that these companies are an indirect form of competition

because though the products they promote attempt to give the same results as our directcompetition, they fall far short of current market expectations, and it will only be a matter oftime until these companies' products will be out-dated. Even so, Mid-Atlantic Recycling does

acknowledge that as these companies' products become outdated, many companies will becertain to phase-in their own organic substitutes in place of the chemicals. This, in itself,

presents a potential market for our compost.

4.3.3 Competition and Buying Patterns

To be a player in the organic fertilizer and soil produce market, Mid-Atlantic Recycling identifiedmarket needs to gain an overall competitive advantage. The following explains our product 's

competitive advantages. Our product is:

Organic: Our organic product allows us to be responsive to the dominant market trend. We

offer all of the advantages that organic products have over chemical competitors. Comparable application times: Based on the West Virginia University laboratory analysis,

our product is comparable in potency to chemical fertilizer. Thus the application time is alsocomparable, which saves money and labor since there is no need to purchase and apply

additional products. Recycled: This part of our product has to do with marketing. We are a company that cares

about the consumer and the environment. We offer a valuable product, at low cost, thatsaves landfill space.

4.3.4 Main Competitors

As noted earlier, direct competitors are essentially non-existent in the Mid-Atlantic region. Ourmajor indirect competitors are chemical fertilizer manufacturers However their products are


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5.1 Value Proposition

Our value proposition is two- fold.

Value proposition for municipalities: We offer a service that is a cost effective, budgetsaving means to addressing a growing waste disposal problem.

Value proposition for end users of compost material: Compost is a valuable soil

amendment that improves many soil properties, such as porosity, structural and thermalstability, water retention, resistance to wind and water erosion, and tillage. Compost also

decreases soil crusting, regulates storage and release of nutrients, enhances thedevelopment of beneficial microorganisms, builds up plant resistance to parasites and

disease, and promotes faster root development. Plants and crops treated properly withcompost may produce higher yields and have less weed growth. Chemical fertilizers do notoffer this value.

5.2 Competitive Edge

The competitive edges we have are summarized as follows.

Cost: The price of our compost product is much less than chemical fertilizers. Organic product: We offer an organic product which is responsive to current market trends.

This includes all of the advantages organics offer over chemicals.

Recycled: Recycled products characterize a "caring company" and are more appealing to thecustomer's changing att itude toward organic fertilizer as opposed to chemical fertilizer.

Elimination of disposal issues: Municipalities now have a waste that takes up landfillspace. Our service recycles the waste which saves valuable landfill space.

More effective between application times: Normal times between applications can range

from two to four weeks. Our product lasts for many months, thereby saving the customertime and money (no additional expenditure for more product).

HUBZone location: Provides advantage in selling to the government. SDB and 8(a) certifications: Provide additional advantages in selling to the government


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5.3.1 Sales Forecast

The table below outlines the sales forecast and cost of goods sold. The forecast is based onreasonable sales projections within this very large market.

An additional revenue stream will be the collection and removal of sawdust, wood chip, and barkfrom the International Paper Company on a full time basis; the contract for this work has been

won. The sawdust materials collected will be used in the composting process.

The high growth is based on our plans to expand by increasing operations in Monroe County andplacing similar facilities in other areas of the West Virginia. We anticipate that by 2005 we will

have two such facilities and by 2006 we anticipate having four. Thus our sales forecast doublesin each of those years.

Table: Sales Forecast

Sales Forecast

FY 2005 FY 2006 FY 2007

Unit SaleSawdust collection services in hour 13,440 13,440 13,440

Waste acceptance in ton 10,640 25,920 51,840

Compost sales in ton 14,776 36,000 72,000

Total Unit Sale 38,856 75,360 137,280

Unit Prices FY 2005 FY 2006 FY 2007

Sawdust collection services in hour $14.20 $14.77 $15.36

Waste acceptance in ton $18.00 $18.00 $18.00

Compost sales in ton $50.00 $52.50 $55.13

Sale

Sawdust collection services in hour $190,848 $198,509 $206,438

Waste acceptance in ton $191,520 $466,560 $933,120

C t l i t $738 800 $1 890 000 $3 969 360


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5.4 Marketing Strategy

The marketing strategy is the core of the main strategy:

1. Emphasize high value, high quality products and services.2. Build a relationship oriented business.3. Focus on municipalities, fertilizer manufacturers, landscapers, nurseries, and the federal

government as key initial markets.

5.4.1 Promotion Strategy

Our promotional strategy will be two-fold: first phase promotion will focus on before, during, and

six months following our opening; the second phase of promotion will deal with the long term.The purpose of the first phase is to assist with rapid market entry to ensure early and sustainedprofitability. The purpose of the second phase is to ensure long-term growth and help propel us

toward achieving our goal of expanding state wide and across the Mid-Atlantic region.

First Phase Promotions

Publicity: We will send news releases to all of the major newspapers in West Virginia.Publication of news articles about Mid-Atlantic Recycling will lend great credibility and be anexcellent way to let all target markets know about this new, innovative business and the

solutions it provides for municipalities and users of compost or fertilizers. We will similarlyseek publicity in the form of news stories from local (eastern West Virginia) radio and

television stations. Advertising: We will utilize direct mail and face-to-face promotional strategies to raise

awareness about our products and services in the target markets. Newspaper advertising

may also be used. Radio and television ads are not certain, we will evaluate theireffectiveness before further implementat ion.

Internet: We will have a content heavy website geared toward educating potentialcustomers about the benefits of our products and services All literature business cards


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5.4.2 Positioning Statement

For municipalities seeking an answer to their waste disposal problems, Mid-Atlantic Recycling isthe service of choice and trusted strategic ally who gives them a cost effective solution.

For users of fertilizer and soil amendment products, Mid-Atlantic Recycling is a dependableprovider of low cost and consistent high quality compost products.

5.4.3 Pricing Strategy

The going rate per ton for compost is $50 and up. This price is low enough to ensure rapidgrowth in the market yet still provide a very healthy profit, given that we have no direct

competition and chemical fertilizer is much more expensive. This is possible because we are onthe front end of the industry growth in this region.

However, according to the West Virginia University Cooperative Extension Service, we may beable to analyze and register our material as a fertilizer. In that case the price per ton will be in

the $100 per ton range still well below the rate of $250 per ton charged for manufactured

chemical fertilizers; given this scenario, the sales figures below are very conservative.

Additionally, we will be priced at market rates for the waste disposal service we offer tomunicipalities. Tipping fees are generally $15 and up per ton. Additionally, we will charge

competitive skid box rental fees and transportation costs.

5.5 Milestones

The following table lists important program milestones, with dates and managers in charge, and

budgets for each. The milestone schedule indicates our emphasis on planning for implementation.

Table: Milestones


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6.0 Web Plan Summary

Our website will be the virtual business card and portfolio for the company, as well as its online

"home." The website needs to be a simple, well designed, website that stays current with the

latest trends and provides information to the customers and information on our products andservices. A site that is too flashy, or tries to use too much of the latest Shockwave or Flashtechnology can be overdone, and cause potential clients to look elsewhere for products or

information. Our website will be an important means by which we can educate potential


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7.0 Management Summar

Mr. Oliver Pyne is the mind behind Mid-Atlantic Recycling. He saw the need for human wastesludge to be recycled and used in several different and environmentally beneficial ways. With the

development, determination, motivation, and persistence of everyone involved, Mid-AtlanticRecycling will be the leading producer of composted human waste sludge in West Virginia and aleader in the Mid-Atlantic region.

The management team of Mid-Atlantic Recycling will be comprised of the following executive

positions:

President: Oliver Pyne. Mr. Pyne has a degree in Agriculture from West Virginia Universityand has spent 30 years in the farming and agriculture industry. He has extensivelyresearched and tested this composting process to ensure that it works with human waste

sludge, and is thoroughly familiar with the process from start to finish. Mr. Pyne hasexperience in the operation, fabrication and maintenance of heavy equipment. This ability will

be critical to the success of the business. Operations Manager: Sam Cole. Mr. Cole has operated a landscaping firm for 7 years and is

intimately familiar with the uses of compost materials as well as the markets. Controller: Alexander Main. Mr. Main has a background in business and management and will

handle administrative details such as taxes, check writing and bookkeeping.

At Mid-Atlantic Recycling, the management team believes that this unique way of recycling will

change the way consumers look at fertilize and compost products. As with any company, theresponsibilities and duties of the management team are very important and cannot be taken

lightly. Mid-Atlantic Recycling's management will work together as a team to create a successfulcompany.

7.1 Management Team

The responsibilities involved in the company Mid-Atlantic Recycling are great and abundant Mid-


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7.2 Management Team Gaps

To assist in sales and marketing, Mid-Atlantic Recycling plans to utilize the services of BlevinsConsulting, LLC, a management consultant firm based in West Virginia. Blevins Consulting

specializes in business planning, marketing planning, training, website design and marketing, andmarketing to the federal government.

Marketing and sales will play an important role in convincing consumers to switch from their oldproducts to Mid-Atlantic Recycling's products. Blevins will help create the need for our products

and services while at the same time capturing the attention of the consumers' targeted. Some ofBlevins duties will include writing press releases, coordinating print and radio press, monitoring

the competition, making presentations to potential clients, and studying the markets to identifycustomers' needs and determine how to best appeal to those needs.

7.3 Personnel Plan

The Personnel Plan reflects the staffing levels required to manage and achieve the anticipated

levels of production, and establish the customer base needed to achieve the revenues projected

and reach profitability.

We have projected a staff of 22 employees in 2004. This includes the owner, 2 managers, 3truck drivers, 4 equipment operators, 2 laborers, 2 metal workers, and 1 secretary; this staff of

15 will operate the recycling facility. In addition, a staff of seven, including one supervisor and 6laborers, will provide sawdust, wood chip, and bark removal at the International Paper Company

on a full time basis; the contract for this work has been won. The sawdust materials collectedwill be used in the composting process.

In addition to the above, Mid-Atlantic Recycling plans to hire a local trucking firm to delivercompost materials to customers. This is expected to result in the creation of two additional jobs.

Therefore the total employment impact of this venture is expected to be the creation of 24 jobs


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8.1 Start-up Funding

The start-up funding will be provided as follows: Owner equity investment of in the form of aloan from the Regional Council of Governments Revolving Loan Fund; this loan is secured by the

owner's real estate assets. The Regional Revolving Loan Fund is an economic development fundsponsored by three West Virginia counties: Mercer, Greenbrier, and Monroe.

The balance of funding will be provided through an SBA guaranteed loan. Details of funding areshown in the table below.

Table: Start-up Funding

Start-up Funding

Start-up Expenses to Fund $92,180

Start-up Assets to Fund $907,820

Total Funding Required $1,000,000

Asset

Non-cash Assets from Start-up $826,920

Cash Requirements from Start-up $80,900

Additional Cash Raised $0

Cash Balance on Starting Date $80,900

Total Asset $907,820

Liabilities and Capital

Liabilitie

Current Borrowing $0

Long-term Liabili ties $850,000

Accounts Payable (Outstanding Bills) $0

Other Current Liabili ties (interest-free) $0

Total Liabili tie $850,000


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Table: Use of Funds

Use of Funds

Use Amount

Processing P lants 2 x $190,460 $380,920

Processing Plants bui lt in-hou se 2 x

$40,000

$80,000

Skid Truck 2 x $73,000 (avg price) $146,000

Sheds 48'x72' 4 x $18,500 $74,000

Backhoe $40,000

Front-end Loader 2 x $50 ,000 $1 00,0 00

Tandem Dump Traile $6,000

Total $826,920

8.3 Important Assumptions

The table below presents some assumptions used in the financial calculations of this business

plan.

Table: General Assumptions

General Assumptions

FY 2005 FY 2006 FY 2007

Plan Month 1 2 3

Current Interest Rate 7.00% 7.00% 7.00%

Long-term Interest Rate 7.00% 7.00% 7.00%

Tax Rate 25.00% 25.00% 25.00%

Othe 0 0 0

8.4 Break-even Analysis

The chart and table below contain the break even analysis for Mid Atlantic Recycling


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8.5 Projected Profit and Loss

The following table summarizes our anticipated profit and loss for the first three years. A monthly

profit and loss projection for the first year of operations is included in the appendices.


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Table: Profit and Loss

Pro Forma Profit a nd Los

FY 2005 FY 2006 FY 2007

Sale $1,121,168 $2,555,069 $5,108,918

Direct Cost of Sale $122,550 $297,853 $612,688

Other Costs of Goods $0 $0 $0

Total Cost of Sales $122,550 $297,853 $612,688

Gross Margin $998,618 $2,257,215 $4,496,230

Gross Margin % 89.07% 88.34% 88.01%

Expense

Payroll $374,053 $766,326 $1,422,040

Sal es and Marketi ng and Other Expenses $12,000 $24,000 $48,000

Depreciation $165,384 $325,384 $645,384

Rent $0 $40,000 $100,000

Util itie $18,000 $36,000 $72,000

Insurance $18,000 $36,000 $72,000

Payroll Taxe $56,108 $114,949 $213,306

Maintanence and Repair $4,800 $9,600 $20,000

Othe $24,000 $48,000 $96,000

Total Operating Expense $672,345 $1,400,259 $2,688,730

Profi t Before Interest and Taxe $326,273 $856,956 $1,807,500

EBITDA $491,657 $1,182,340 $2,452,884

Interest Expense $57,217 $52,956 $48,223

Taxes Incurred $67,264 $201,000 $439,819

Net Profit $201,792 $603,000 $1,319,458

Net Profit/Sale 18.00% 23.60% 25.83%


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8.6 Projected Cash Flow

The chart and table below project increasing cash flow throughout the first three years of plan

implementat ion. The second and third years of operation reflect large long-term asset purchases

which reflects our intent to expand the business by opening additional facilities in those years.This expansion will be funded by business revenue with no antic ipated need for outside financing.

The row labelled "Long-term Liabilities Principal Repayment" reflects repayment of the SBA


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Table: Cash Flow

Pro Forma Cash Flow

FY 2005 FY 2006 FY 2007

Cash Received

Cash from Operation

Cash Sale $448,467 $1,022,028 $2,043,567

Cash from Receivables $542,495 $1,366,516 $2,768,762

Subtotal Cash from Operations $990,962 $2,388,544 $4,812,329

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0

New Current Borrowing $0 $0 $0

New Other Liabil ities (interest-free) $0 $0 $0

New Long-term Liabil itie $0 $0 $0

Sales of Other Current Assets $0 $0 $0

Sales of Long-term Asset $0 $0 $0

New Investment Received $0 $0 $0

Subtotal Cash Received $990,962 $2,388,544 $4,812,329

Expenditures FY 2005 FY 2006 FY 2007

Expenditures from Operation

Cash Spending $374,053 $766,326 $1,422,040

Bill Payment $357,477 $843,317 $1,684,617

Subtotal Spent on Operation $731,530 $1,609,643 $3,106,657

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0

Principal Repayment of Current Borrowing $0 $0 $0

Other Liabil ities Principal Repayment $0 $0 $0

Long-term Li abi li ties Pri ncipal Repayment $60,859 $65,258 $69,976

Purchase Other Current Asset $0 $0 $0


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8.7 Projected Balance Sheet

The following table projects healthy growth in sales and net worth.

Table: Balance Sheet

Pro Forma Bal ance Sheet

FY 2005 FY 2006 FY 2007

Asset

Current Asset

Cash $259,474 $143,117 $138,814

Accounts Receivable $130,206 $296,731 $593,320

Inventory $13,494 $32,796 $67,463

Other Current Asset $0 $0 $0

Total Current Asset $403,174 $472,644 $799,597

Long-term Assets

Long-term Assets $826,920 $1,626,920 $3,226,920

Accumulated Depreciation $165,384 $490,768 $1,136,152Total Long-term Assets $661,536 $1,136,152 $2,090,768

Total Asset $1,064,710 $1,608,796 $2,890,365

Liabili ties and Capital FY 2005 FY 2006 FY 2007

Current Liabilitie

Accounts Payable $35,957 $72,301 $144,387

Current Borrowing $0 $0 $0

Other Current Liabili tie $0 $0 $0

Subtotal Current Liabil ities $35,957 $72,301 $144,387

Long-term Liabili ties $789,141 $723,883 $653,908

Total Liabili tie $825,098 $796,184 $798,294


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8.8 Business Ratios

The following table outlines some of the more important ratios from the Recycling, wastematerials industry. The final column, Industry Profile, details spec ific ratios based on the industry

as it is classified by the Standard Industry Classification (SIC) code, 4953.9905.


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Table: Ratios

Ratio Analysi

FY 2005 FY 2006 FY 2007 Industry Profi le

Sales Growth 0.00% 127.89% 99.95% 7.24%

Percent of Total Assets

Accounts Receivable 12.23% 18.44% 20.53% 4.89%

Inventory 1.27% 2.04% 2.33% 0.35%

Other Current Asset 0.00% 0.00% 0.00% 31.71%

Total Current Asset 37.87% 29.38% 27.66% 36.95%Long-term Assets 62.13% 70.62% 72.34% 63.05%

Total Asset 100.00% 100.00% 100.00% 100.00%

Current Liabil i tie 3.38% 4.49% 5.00% 18.58%

Long-term Liabili ties 74.12% 45.00% 22.62% 26.10%

Total Liabili tie 77.50% 49.49% 27.62% 44.68%

Net Worth 22.50% 50.51% 72.38% 55.32%

Percent of Sale

Sale 100.00% 100.00% 100.00% 100.00%

Gross Margin 89.07% 88.34% 88.01% 34.70%

Selling, General & Administrative Expense 72.77% 64.88% 61.97% 14.39%

Advertising Expenses 0.00% 0.00% 0.00% 0.25%

Profit Before Interest and Taxe 29.10% 33.54% 35.38% 1.59%

Main Ratio

Current 11.21 6.54 5.54 1.10

Quic 10.84 6.08 5.07 0.89

Total Debt to Total Asset 77.50% 49.49% 27.62% 63.47%

Pre-tax Return on Net Worth 112.29% 98.94% 84.09% 1.16%

Pre-tax Return on Asset 25.27% 49.98% 60.87% 3.16%

Additional Ratio FY 2005 FY 2006 FY 2007


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Mid-Atlantic RecyclingDividend Payout 0.10 0.05 0.03 n.a


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Appendix

Page 1

Table: Sales Forecast

Sales Forecast

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

Unit Sales

Sawdust collection services in hours 1,120 1,120 1,120 1,120 1,120 1,120 1,120 1,120 1,120 1,120 1,120 1,120

Waste acceptance in tons 200 400 600 800 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080

Compost sales in tons 277 555 833 1,111 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500

Total Unit Sales 1,597 2,075 2,553 3,031 3,700 3,700 3,700 3,700 3,700 3,700 3,700 3,700

Unit Prices Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

Sawdust collection services in hours $14.20 $14.20 $14.20 $14.20 $14.20 $14.20 $14.20 $14.20 $14.20 $14.20 $14.20 $14.20

Waste acceptance in tons $18.00 $18.00 $18.00 $18.00 $18.00 $18.00 $18.00 $18.00 $18.00 $18.00 $18.00 $18.00

Compost sales in tons $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00

Sales

Sawdust collection services in hours $15,904 $15,904 $15,904 $15,904 $15,904 $15,904 $15,904 $15,904 $15,904 $15,904 $15,904 $15,904

Waste acceptance in tons $3,600 $7,200 $10,800 $14,400 $19,440 $19,440 $19,440 $19,440 $19,440 $19,440 $19,440 $19,440

Compost sales in tons $13,850 $27,750 $41,650 $55,550 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000

Total Sales $33,354 $50,854 $68,354 $85,854 $110,344 $110,344 $110,344 $110,344 $110,344 $110,344 $110,344 $110,344

Direct Unit Costs Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

Sawdust collection services in hours 5.00% $0.71 $0.71 $0.71 $0.71 $0.71 $0.71 $0.71 $0.71 $0.71 $0.71 $0.71 $0.71

Waste acceptance in tons 5.00% $0.90 $0.90 $0.90 $0.90 $0.90 $0.90 $0.90 $0.90 $0.90 $0.90 $0.90 $0.90

Compost sales in tons 14.00% $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00

Direct Cost of Sales

Sawdust collection services in hours $795 $795 $795 $795 $795 $795 $795 $795 $795 $795 $795 $795

Waste acceptance in tons $180 $360 $540 $720 $972 $972 $972 $972 $972 $972 $972 $972

Compost sales in tons $1,939 $3,885 $5,831 $7,777 $10,500 $10,500 $10,500 $10,500 $10,500 $10,500 $10,500 $10,500

Subtotal Direct Cost of Sales $2,914 $5,040 $7,166 $9,292 $12,267 $12,267 $12,267 $12,267 $12,267 $12,267 $12,267 $12,267


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Appendix

Page 2

Table: Personnel

Personnel Plan


Management/supervisory 0% $8,837 $8,837 $8,837 $8,837 $8,837 $8,837 $8,837 $8,837 $8,837 $8,837 $8,837 $8,837

Production labor 0% $11,168 $13,401 $14,900 $16,380 $16,380 $16,380 $16,380 $16,380 $16,380 $16,380 $16,380 $16,380

Sawdust collection team 0% $6,760 $6,760 $6,760 $6,760 $6,760 $6,760 $6,760 $6,760 $6,760 $6,760 $6,760 $6,760

Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total People 15 18 20 22 22 22 22 22 22 22 22 22

Total Payroll $26,765 $28,998 $30,497 $31,977 $31,977 $31,977 $31,977 $31,977 $31,977 $31,977 $31,977 $31,977


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Appendix

Page 3

Table: General Assumptions

General Assumptions


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

Current Interest Rate 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%

Long-term Interest Rate 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%

Tax Rate 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%

Other 0 0 0 0 0 0 0 0 0 0 0 0


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Appendix

Page 4

Table: Profit and Loss

Pro Forma Profit and Loss

Mar Apr May Jun Jul Aug Sep Oc Nov Dec Jan Feb

Sales $33,354 $50,854 $68,354 $85,854 $110,344 $110,344 $110,344 $110,344 $110,344 $110,344 $110,344 $110,344

Direct Cost of Sales $2,914 $5,040 $7,166 $9,292 $12,267 $12,267 $12,267 $12,267 $12,267 $12,267 $12,267 $12,267

Other Costs of Goods $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Cost of Sales $2,914 $5,040 $7,166 $9,292 $12,267 $12,267 $12,267 $12,267 $12,267 $12,267 $12,267 $12,267

Gross Margin $30,440 $45,814 $61,188 $76,562 $98,077 $98,077 $98,077 $98,077 $98,077 $98,077 $98,077 $98,077

Gross Margin % 91.26% 90.09% 89.52% 89.18% 88.88% 88.88% 88.88% 88.88% 88.88% 88.88% 88.88% 88.88%

Expenses

Payroll $26,765 $28,998 $30,497 $31,977 $31,977 $31,977 $31,977 $31,977 $31,977 $31,977 $31,977 $31,977

Sales and Marketing and Other

Expenses

$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Depreciation $13,782 $13,782 $13,782 $13,782 $13,782 $13,782 $13,782 $13,782 $13,782 $13,782 $13,782 $13,782

Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Utilities $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500

Insurance $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500

Payroll Taxes 15% $4,015 $4,350 $4,575 $4,797 $4,797 $4,797 $4,797 $4,797 $4,797 $4,797 $4,797 $4,797

Maintanence and Repair 15% $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400

Other $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

Total Operating Expenses $50,962 $53,530 $55,254 $56,956 $56,956 $56,956 $56,956 $56,956 $56,956 $56,956 $56,956 $56,956

Profit Before Interest and Taxes ($20,522) ($7,716) $5,934 $19,606 $41,121 $41,121 $41,121 $41,121 $41,121 $41,121 $41,121 $41,121

EBITDA ($6,740) $6,066 $19,716 $33,388 $54,903 $54,903 $54,903 $54,903 $54,903 $54,903 $54,903 $54,903

Interest Expense $4,930 $4,901 $4,872 $4,843 $4,813 $4,784 $4,754 $4,724 $4,694 $4,664 $4,634 $4,603

Taxes Incurred ($6,363) ($3,154) $266 $3,691 $9,077 $9,084 $9,092 $9,099 $9,107 $9,114 $9,122 $9,129

Net Profit ($19,089) ($9,463) $797 $11,073 $27,231 $27,253 $27,275 $27,298 $27,320 $27,343 $27,366 $27,388

Net Profit/Sales -57.23% -18.61% 1.17% 12.90% 24.68% 24.70% 24.72% 24.74% 24.76% 24.78% 24.80% 24.82%


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Appendix

Page 5

Table: Cash Flow

Pro Forma Cash Flow


Cash Received

Cash from Operations

Cash Sales $13,342 $20,342 $27,342 $34,342 $44,138 $44,138 $44,138 $44,138 $44,138 $44,138 $44,138 $44,138

Cash from Receivables $0 $667 $20,362 $30,862 $41,362 $52,002 $66,206 $66,206 $66,206 $66,206 $66,206 $66,206

Subtotal Cash from Operations $13,342 $21,009 $47,704 $65,204 $85,500 $96,140 $110,344 $110,344 $110,344 $110,344 $110,344 $110,344

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 $13,342 $21,009 $47,704 $65,204 $85,500 $96,140 $110,344 $110,344 $110,344 $110,344 $110,344 $110,344

Expenditures Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

Expenditures from Operations

Cash Spending $26,765 $28,998 $30,497 $31,977 $31,977 $31,977 $31,977 $31,977 $31,977 $31,977 $31,977 $31,977

Bill Payments $503 $15,260 $20,067 $25,808 $31,670 $40,517 $37,331 $37,309 $37,287 $37,264 $37,241 $37,219

Subtotal Spent on Operations $27,268 $44,258 $50,564 $57,785 $63,647 $72,494 $69,308 $69,286 $69,264 $69,241 $69,218 $69,196

Additional Cash Spent

Sales Tax , VAT, HST/GST Paid Ou $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 $4,911 $4,940 $4,968 $4,997 $5,026 $5,056 $5,085 $5,115 $5,145 $5,175 $5,205 $5,235

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 $20,000

Subtotal Cash Spent $32,179 $49,198 $55,532 $62,783 $68,673 $77,550 $74,394 $74,401 $74,408 $74,416 $74,423 $94,431

Net Cash Flow ($18,838) ($28,189) ($7,828) $2,421 $16,827 $18,590 $35,950 $35,943 $35,936 $35,928 $35,921 $15,913

Cash Balance $62,062 $33,873 $26,045 $28,466 $45,293 $63,883 $99,834 $135,777 $171,712 $207,640 $243,561 $259,474


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Appendix

Page 6

Table: Balance Sheet

Pro Forma Balance Sheet


Assets Starting Balances

Curren t Assets

Cash $80,900 $62,062 $33,873 $26,045 $28,466 $45,293 $63,883 $99,834 $135,777 $171,712 $207,640 $243,561 $259,474

Accounts Receivable $0 $20,012 $49,858 $70,508 $91,158 $116,002 $130,206 $130,206 $130,206 $130,206 $130,206 $130,206 $130,206

Inventory $0 $3,206 $5,544 $7,883 $10,221 $13,494 $13,494 $13,494 $13,494 $13,494 $13,494 $13,494 $13,494

Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Current Assets $80,900 $85,280 $89,275 $104,436 $129,846 $174,789 $207,583 $243,534 $279,477 $315,412 $351,340 $387,261 $403,174

Long -term Assets

Long-term Assets $826,920 $826,920 $826,920 $826,920 $826,920 $826,920 $826,920 $826,920 $826,920 $826,920 $826,920 $826,920 $826,920

Accumulated Depreciation $0 $13,782 $27,564 $41,346 $55,128 $68,910 $82,692 $96,474 $110,256 $124,038 $137,820 $151,602 $165,384

Total Lo ng-term Assets $82 6,920 $8 13,13 8 $7 99,35 6 $7 85 ,57 4 $7 71 ,79 2 $ 758 ,0 10 $ 744 ,2 28 $73 0,446 $71 6,664 $70 2,882 $68 9,1 00 $67 5,3 18 $ 66 1,5 36

Total Assets $90 7,820 $8 98,41 8 $8 88,63 1 $8 90 ,01 0 $9 01 ,63 8 $ 932 ,7 99 $ 951 ,8 11 $97 3,980 $99 6,141 $1,01 8,294 $1,04 0,4 40 $1,06 2,5 79 $1,06 4,7 10

Liabilities and Capital Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

Current Liabilities

Accounts Payable $0 $14,598 $19,213 $24,763 $30,316 $39,272 $36,088 $36,066 $36,044 $36,023 $36,001 $35,979 $35,957

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 $14,598 $19,213 $24,763 $30,316 $39,272 $36,088 $36,066 $36,044 $36,023 $36,001 $35,979 $35,957

L ong -term L ia bilitie s $85 0,000 $8 45,08 9 $8 40,15 0 $8 35 ,18 1 $8 30 ,18 4 $ 825 ,1 57 $ 820 ,1 02 $81 5,016 $80 9,901 $80 4,757 $79 9,5 82 $79 4,3 77 $ 78 9,1 41

Total Liabilities $850,000 $859,687 $859,362 $859,944 $860,500 $864,430 $856,189 $851,082 $845,946 $840,779 $835,583 $830,356 $825,098

Paid-in Capital $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000

Retain ed Earnin gs ($ 92,180 ) ($ 92,18 0) ($ 92,18 0) ($92 ,1 80) ($92 ,1 80) ($9 2,180 ) ($9 2,180 ) ($9 2,180 ) ($9 2,180 ) ($9 2,180 ) ($9 2,180 ) ($9 2,180 ) ($11 2,180 )

Earnings $0 ($19,089) ($28,551) ($27,755) ($16,682) $10,549 $37,802 $65,077 $92,375 $119,695 $147,038 $174,403 $201,792

Total Capital $57,820 $38,731 $29,269 $30,065 $41,138 $68,369 $95,622 $122,897 $150,195 $177,515 $204,858 $232,223 $239,612

To ta l L ia bil itie s a nd Ca pita l $ 90 7,8 20 $ 89 8,4 18 $ 88 8,6 31 $ 89 0,0 10 $ 90 1,6 38 $ 93 2,7 99 $ 95 1,8 11 $ 97 3,9 80 $ 99 6,1 41 $ 1,0 18 ,2 94 $ 1,0 40 ,4 40 $ 1,0 62 ,5 79 $ 1,0 64 ,7 10

Net Worth $57,820 $38,731 $29,269 $30,065 $41,138 $68,369 $95,622 $122,897 $150,195 $177,515 $204,858 $232,223 $239,612

mid atlantic recycling

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