tier 2 business plan sample
TRANSCRIPT
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ABC AccountingABC AccountingABC AccountingABC Accounting
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Table of Contents
1.0 Executive Summary................................................................................... ..............................................1Chart: Highlights........................................................................... ..............................................1
1.1 Objectives........................................................................................ ..............................................11.2 Mission ............................................................................................ ..............................................21.3 Keys to Success .............................................................................. ..............................................2
2.0 Company Summary................................................................................... ..............................................22.1 Company Ownership ....................................................................... ..............................................32.2 Start-up Summary............................................................................ ..............................................3
Table: Start-up............................................................................. ..............................................3
Chart: Start-up ............................................................................. ..............................................43.0 Services .................................................................................................... ..............................................44.0 Market Analysis Summary ......................................................................... ..............................................5
4.1 Market Segmentation....................................................................... ..............................................6Table: Market Analysis...............................................................................................................6Chart: Market Analysis (Pie)......................................................... ..............................................7
4.2 Target Market Segment Strategy...................................................................................................74.3 Service Business Analysis ............................................................... ..............................................7
5.0 Strategy and Implementation Summary...................................................................................................7
5.1 Competitive Edge ............................................................................ ..............................................85.2 Marketing Strategy .......................................................................... ..............................................85.3 Sales Strategy ................................................................................. ..............................................8
5.3.1 Sales Forecast.................................................................... ..............................................8Table: Sales Forecast......................................................... ..............................................9Chart: Sales Monthly.........................................................................................................9Chart: Sales by Year.......................................................................................................10
5.4 Milestones ....................................................................................... ............................................10Table: Milestones......................................................................... ............................................10
Chart: Milestones ......................................................................... ............................................116.0 Management Summary ............................................................................. ............................................11
6.1 Personnel Plan ................................................................................ ............................................12Table: Personnel.......................................................................... ............................................12
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Table of ContentsTable: Profit and Loss ...................................................................................................................................3
Table: Cash Flow..........................................................................................................................................4Table: Balance Sheet....................................................................................................................................5
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Sample Plan
1.0 Executive Summary
ABC Accounting is a small, one-person accounting and web consulting service owned and run by
Katie Jones, in Florida. The firm will offer tax return preperation, accounting, accounts receivableand accounts payable post ing and management. QuickBooks set-up and training for smallbusiness clients will be handled by the company as well. To move beyond the singular focus of
accounting, the business will also offer web design and consulting. Providing these services toa broad base of clients will require Ms. Jones to run the company full time.
The goal of Ms. Jones's is being able to earn a living from this accounting and web consulting
business; this will be accomplished by executing on this business plan. An investment in thehardware, software and infrastructure of approximately $150,000 is needed. This businessplan organizes the strategy and tactics for the business to succeed and sets objectives for
growth over the next three years.
The business will offer clients accounting services with the oversight of Ms. Jones at a pricethey can afford. To do this the business will operate as a remote consulting firm keeping
overhead down to a bare minimum. The effect will be sales more than doubling over threeyears as Ms. Jones relizes her goals of running the business full time and providing all the
income for her needs
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Sample Plan
-To launch the bookkeeping/accounting services rapidly, beginning with Ms. Jones solicitingexisting businesses that have expressed interest
-To achieve bookkeeping service annual revenues equal or greater to the current totalrevenues within three years (effectively doubling revenue)
-To achieve gross revenue of $64,00 in the first year.-To ramp up the web design and consulting area of the firm within the first month of 2010.
1.2 Mission
ABC Accounting seeks to provide a full suite of accounting, tax preperation, and web
design services for small businesses in Florida area, allowing business owners to not only savemoney over inhouse accounting and ensure their compliance with tax laws, but to makevaluable management decisions from their numbers.
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Sample Planthe Florida area, the company has no specific industry specialization. ABC Accounting plans to
operate nimble to service other needs that clients may have as well.Florida
2.1 Company Ownership
ABC Accounting will be created as a sole proprietorship based in Florida, owned by Katie Jones,
its principal investor and principal operator. As of this writing, it has not been chartered yet andis still considering alternatives of legal formation.
2.2 Start-up Summary
Total start-up expense (Paper, Personalized Paper Work, Business Cards Advertising
newspaper, web Rewiring for multiline phone usage phone, fax, internet) comes to $37,000.Start-up assets required include $3,000 in short-term assets (Office Equipment desk, filing
cabinet, chair, office accessories), $20,000 in long term assets (Equipment (Computers,Software, Multifunctional Printer) and $90,000 in initial cash to handle the first few months of
consulting operations as sales and accounts receivable play through the cash flow. The detailsare included in Table 2-2.
Table: Start-up
Start-up
Requirements
Start-up ExpensesPaper, Personalized Paper Work, Business Cards $10,000
Advertising (newspaper, web) $2,000
Rewiring for mul tili ne phone usage (phone, fax,
internet)
$25,000
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Sample Plan
3.0 Services
The current services ABC Accounting can be engaged for include:
Tax Services:
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Tax return preparationT l i f f t ti i
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Sample Plan
4.0 Market Analysis Summary
The small business accounting market consists of virtually every small business in the UnitedStates. As businesses grow larger than one person sole proprietorships, they generally require
expert help with at least their tax preparation, and often with additional bookkeeping and
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Sample Plan
4.1 Market Segmentation
The market of small businesses in Florida represents approximately406,766 businesses in 2009. It has been divided into three groups:Non-employer firms:
Without employees, these firms do not have many of the concerns oflarger businesses. However, the owners must be vigilant to protect their own tax liability and
sortout how their personal and business tax returns intersect. These firms are generally buyers of
QuickBooks services and tax preparation services. As they grow, this group becomes ripe foroutsourced bookkeeping services before they can hire an full-time in-house bookkeeper.Very small businesses:
Made up of businesses that are designed to stay small and those whichare growing through a phase, these businesses require payroll services, bookkeeping, and tax
preparation. They are concerned about losing control, but can generally be convinced of usingoutsourced accounting and bookkeeping with cost analysis. With the stakes higher, these
businesses can make greater use of management accounting services, especially as most cannotafford a dedicated CFO. Many do not need a full-time bookkeeper, but can make do with
parttimehelp, which limits their hiring options.Other small businesses:
Many of these businesses will have some in-house financialmanagement and bookkeeping help. However, they may be able to save money by outsourcing
these services, as they are not generally core to what the business seeks to do. Thesebusinesses may be comfortable with their situation as a cash producer for their owners or
intent ongrowing or positioning themselves for sale.
Table: Market Analysis
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Sample Plan
4.2 Target Market Segment Strategy
ABC Accounting will focus on the "small business" clients for its target group for
accounting services as this group can make a high use of consultant accountants.Since these these businesses often do not have the resources to provide a full time C.F.O. thisis where our company will provide value added. We provide the solution for small businesses to
focus on what they do best, sales or manufacturing and leave the books to us.
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Sample Plan
5.1 Competitive Edge
ABC Accounting will achieve a competitive edge among Florida accounting and web designservices due to its high level of professionalizm, service, and cost. Clients will receivethe advantage of having an experiences accounting and quickbooks expert reconcile their
statement, post AR and AP transactions, and provide web design.
5.2 Marketing Strategy
ABC Accounting will use the following marketing tactics to execute on it's business plan whichfocuses on very small businesses (1 to 8 employees):
-Website marketing (detailed in the Web plan section)
-Utilizing Ms. Jones's contact who have expressed interest.
5.3 Sales Strategy
The sales strategy for ABC Accounting 's services is to attempt to sell the service predominantlyto existing contacts that the owner has, especially at first before marketing pays off with new
inquiries. This will require Katie Jones to inform all potential clients that expressed interest byphone and or email about the opening of her frim.
Ms. Jones will then ask clients directly for referrals to other businesses and business owners
they know who may be right for the accounting and web design services being offered.
The result of this initiative of direct selling is expected to be at least five clients within the first
couple of months, and shortly to ramp up so that Ms. Jones can make a full time income from the
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Sample Plan
Table: Sales Forecast
Sales Forecast
2010 2011 2012
Sales
Accounting Services/ Hourly $9,600 $11,000 $14,000
Accounting Services/ Weekly $15,000 $18,750 $20,500
Accounting Services/ Monthly $24,000 $26,000 $29,000
Accounting Services/ Project $10,000 $13,000 $14,500
Web Design Services $5,400 $6,000 $7,500
Total Sales $64,000 $74,750 $85,500
Direct Cost of Sales 2010 2011 2012
Office Overhead $3,000 $4,000 $5,000
$0 $0 $0
Subtotal Direct Cost of Sales $3,000 $4,000 $5,000
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Sample Plan
5.4 Milestones
Our detailed milestones are shown in the following table and chart. The related budgets are
included with the expenses shown in the projected Profit and Loss statement.
Table: Milestones
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Sample Plan
6.0 Management Summary
The company will be run by the founder and president Ms. Katharine Jones, below is her
detailed resume:
Career Objective: To start-up a Small Business in Accounting and Website Making,
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Business Ethics Oral and Written Communication Business Law Business Financing and Budgeting Business Management Internship
Activities and Honors
Earned Employability Skills Certificate through the Department of Workforce Development.
First high school student to complete Health Apprenticeship program offered throughRhinelander High School and Petersen's Health Care.
Secretary for Business Professionals of America.Volunteered at benefits for local families.
6.1 Personnel Plan
The current owner Ms. Jones will be the only employee on the payroll, she will take a $2,500 a
month salary and have any profits left from the company available as bonuses.
Table: Personnel
Personnel Plan
2010 2011 2012
Owner Kati e will take monthly draw as shown in P&L $0 $40,000 $45,000
$0 $0 $0
Total People 0 0 0
Total Payroll $0 $40,000 $45,000
7 0 Financial Plan
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Sample Plan
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund $37,000
Start-up Assets to Fund $113,000
Total Funding Required $150,000
Assets
Non-cash Assets from Start-up $23,000
Cash Requirements from Start-up $90,000
Additional Cash Raised $0
Cash Balance on Starting Date $90,000
Total Assets $113,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabili ties $150,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabili ties (interest-free) $0
Total Liabili ties $150,000
Capital
Planned Investment
Owner $0
Investor $0
Additional Investment Requirement $0
Total Planned Investment $0
Loss at Start-up (Start-up Expenses) ($37,000)
Total Capital ($37,000)
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Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $3,471
Assumptions:
Average Percent Variable Cost 5%
Estimated Monthly Fixed Cost $3,308
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Sample Plan
Table: Profit and Loss
Pro Forma Profit and Loss
2010 2011 2012
Sales $64,000 $74,750 $85,500
Direct Cost of Sales $3,000 $4,000 $5,000
Other Costs of Sales $0 $0 $0
Total Cost of Sales $3,000 $4,000 $5,000
Gross Margin $61,000 $70,750 $80,500
Gross Margin % 95.31% 94.65% 94.15%
Expenses
Payroll $0 $40,000 $45,000
Marketing/Promotion $1,200 $3,000 $4,000
Depreciation $3,996 $3,996 $3,996
Payroll Taxes $0 $0 $0
Owner Draw $34,500 $37,000 $40,000
Total Operating Expenses $39,696 $83,996 $92,996
Profit Before Interest and Taxes $21,304 ($13,246) ($12,496)
EBITDA $25,300 ($9,250) ($8,500)
Interest Expense $10,500 $10,500 $10,500
Taxes Incurred $0 $0 $0
Net Profit $10,804 ($23,746) ($22,996)
Net Profit/Sales 16.88% -31.77% -26.90%
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7.5 Projected Cash Flow
The cash flow projection shows that provisions for ongoing expenses are adequate to meet the
needs of the company as the business generates sufficient cash flow to support operations.
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Sample Plan
Table: Cash Flow
Pro Forma Cash Flow
2010 2011 2012
Cash Received
Cash from Operations
Cash Sales $16,000 $18,688 $21,375
Cash from Receivables $44,675 $55,504 $63,567
Subtotal Cash from Operations $60,675 $74,192 $84,942
Additiona l 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 Liabili ties $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 $60,675 $74,192 $84,942
Expenditures 2010 2011 2012
Expenditures from Operations
Cash Spending $0 $40,000 $45,000
Bill Payments $48,380 $54,275 $59,404
Subtotal Spent on Operations $48,380 $94,275 $104,404
Additiona l 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 Liabili ties Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
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Sample Plan
7.6 Projected Balance Sheet
The balance sheet shows healthy growth of net worth, and strong financial position. The
monthly estimates are included in the appendix.
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Sample Plan
Table: Balance Sheet
Pro Forma Bal ance Sheet
2010 2011 2012
Assets
Current Assets
Cash $102,295 $82,212 $62,749
Accounts Receivable $3,325 $3,883 $4,442
Other Current Assets $3,000 $3,000 $3,000
Total Current Assets $108,620 $89,095 $70,191
Long-term Assets
Long-term Assets $20,000 $20,000 $20,000
Accumulated Depreciation $3,996 $7,992 $11,988
Total Long-term Assets $16,004 $12,008 $8,012
Total Assets $124,624 $101,103 $78,203
Liabil ities and Capital 2010 2011 2012
Current Liabilities
Accounts Payable $820 $1,045 $1,141
Current Borrowing $0 $0 $0
Other Current Liabili ties $0 $0 $0
Subtotal Current Liabil ities $820 $1,045 $1,141
Long-term Liabili ties $150,000 $150,000 $150,000
Total Liabili ties $150,820 $151,045 $151,141
Paid-in Capital $0 $0 $0
Retained Earnings ($37,000) ($26,196) ($49,942)
Earnings $10,804 ($23,746) ($22,996)
Total Capital ($26,196) ($49,942) ($72,938)
Total Liabili ties and Capital $124,624 $101,103 $78,203
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Sample Plan
Table: Ratios
Ratio Anal ysis
2010 2011 2012 Industry Profile
Sales Growth n.a. 16.80% 14.38% 0.00%
Percent of Total Assets
Accounts Receivable 2.67% 3.84% 5.68% 0.00%
Other Current Assets 2.41% 2.97% 3.84% 100.00%
Total Current Assets 87.16% 88.12% 89.75% 100.00%
Long-term Assets 12.84% 11.88% 10.25% 0.00%Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabil i ties 0.66% 1.03% 1.46% 0.00%
Long-term Liabili ties 120.36% 148.36% 191.81% 0.00%
Total Liabili ties 121.02% 149.40% 193.27% 0.00%
Net Worth -21.02% -49.40% -93.27% 100.00%
Percent of Sal es
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 95.31% 94.65% 94.15% 0.00%
Selling, General & Administrative Expenses 78.43% 126.42% 121.05% 0.00%
Advertising Expenses 1.88% 4.01% 4.68% 0.00%
Profit Before Interest and Taxes 33.29% -17.72% -14.62% 0.00%
Main Ratios
Current 132.46 85.24 61.51 0.00
Quick 132.46 85.24 61.51 0.00
Total Debt to Total Assets 121.02% 149.40% 193.27% 0.00%
Pre-tax Return on Net Worth -41.24% 47.55% 31.53% 0.00%
Pre-tax Return on Assets 8.67% -23.49% -29.41% 0.00%
Additional Ratios 2010 2011 2012
Net Profit Margin 16.88% -31.77% -26.90% n.a
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Appendix
Page 1
Table: Sales Forecast
Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Accounting Services/ Hourly $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Accounting Services/ Weekly $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Accounting Services/ Monthly $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Accounting Services/ Project $0 $2,500 $0 $0 $0 $2,500 $0 $2,500 $0 $0 $0 $2,500
Web Design Services $450 $450 $450 $450 $450 $450 $450 $450 $450 $450 $450 $450
Total Sales $4,500 $7,000 $4,500 $4,500 $4,500 $7,000 $4,500 $7,000 $4,500 $4,500 $4,500 $7,000
Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Office Overhead $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
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Appendix
Page 2
Table: Personnel
Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Owner Katie will take monthly draw as shown in
P&L
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 0% 0 0 0 0 0 0 0 0 0 0 0 0
Total Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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Appendix
Page 3
Table: Profit and Loss
Pro Forma Profit and Loss
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $4,500 $7,000 $4,500 $4,500 $4,500 $7,000 $4,500 $7,000 $4,500 $4,500 $4,500 $7,000
Direct Cost of Sales $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Gross Margin $4,250 $6,750 $4,250 $4,250 $4,250 $6,750 $4,250 $6,750 $4,250 $4,250 $4,250 $6,750
Gross Margin % 94.44% 96.43% 94.44% 94.44% 94.44% 96.43% 94.44% 96.43% 94.44% 94.44% 94.44% 96.43%
Expenses
Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Marketing/Promotion $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Depreciation $333 $333 $333 $333 $333 $333 $333 $333 $333 $333 $333 $333
Payroll Taxes 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Owner Draw $2,875 $2,875 $2,875 $2,875 $2,875 $2,875 $2,875 $2,875 $2,875 $2,875 $2,875 $2,875
Total Operating Expenses $3,308 $3,308 $3,308 $3,308 $3,308 $3,308 $3,308 $3,308 $3,308 $3,308 $3,308 $3,308
Profit Before Interest and Taxes $942 $3,442 $942 $942 $942 $3,442 $942 $3,442 $942 $942 $942 $3,442
EBITDA $1,275 $3,775 $1,275 $1,275 $1,275 $3,775 $1,275 $3,775 $1,275 $1,275 $1,275 $3,775
Interest Expense $875 $875 $875 $875 $875 $875 $875 $875 $875 $875 $875 $875
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit $67 $2,567 $67 $67 $67 $2,567 $67 $2,567 $67 $67 $67 $2,567
Net Profit/Sales 1.49% 36.67% 1.49% 1.49% 1.49% 36.67% 1.49% 36.67% 1.49% 1.49% 1.49% 36.67%
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Appendix
Page 4
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 $1,125 $1,750 $1,125 $1,125 $1,125 $1,750 $1,125 $1,750 $1,125 $1,125 $1,125 $1,750
Cash from Receivables $1,238 $4,063 $4,563 $3,375 $3,375 $4,063 $4,563 $4,063 $4,563 $3,375 $3,375 $4,063
Subtotal Cash from Operations $2,363 $5,813 $5,688 $4,500 $4,500 $5,813 $5,688 $5,813 $5,688 $4,500 $4,500 $5,813
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 $2,363 $5,813 $5,688 $4,500 $4,500 $5,813 $5,688 $5,813 $5,688 $4,500 $4,500 $5,813
Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Expenditures from Operations
Cash Spending $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Bill Payments $3,280 $4,100 $4,100 $4,100 $4,100 $4,100 $4,100 $4,100 $4,100 $4,100 $4,100 $4,100
Subtotal Spent on Operations $3,280 $4,100 $4,100 $4,100 $4,100 $4,100 $4,100 $4,100 $4,100 $4,100 $4,100 $4,100
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 $3,280 $4,100 $4,100 $4,100 $4,100 $4,100 $4,100 $4,100 $4,100 $4,100 $4,100 $4,100
Net Cash Flow ($918) $1,713 $1,588 $400 $400 $1,713 $1,588 $1,713 $1,588 $400 $400 $1,713
Cash Balance $89,083 $90,795 $92,383 $92,783 $93,183 $94,895 $96,483 $98,195 $99,783 $100,183 $100,583 $102,295
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Appendix
Page 5
Table: Balance Sheet
Pro Forma Balance Sheet
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets Starting Balances
Curren t Assets
Cash $90,000 $89,083 $90,795 $92,383 $92,783 $93,183 $94,895 $96,483 $98,195 $99,783 $100,183 $100,583 $102,295
Accounts Receivable $0 $2,138 $3,325 $2,138 $2,138 $2,138 $3,325 $2,138 $3,325 $2,138 $2,138 $2,138 $3,325
Other Current Assets $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Total Current Assets $93,000 $94,220 $97,120 $97,520 $97,920 $98,320 $101,220 $101,620 $104,520 $104,920 $105,320 $105,720 $108,620
Long -term Assets
Long-term Assets $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
Accumulated Depreciation $0 $333 $666 $999 $1,332 $1,665 $1,998 $2,331 $2,664 $2,997 $3,330 $3,663 $3,996
Total Long-term Assets $20,000 $19,667 $19,334 $19,001 $18,668 $18,335 $18,002 $17,669 $17,336 $17,003 $16,670 $16,337 $16,004
Total Assets $113,000 $113,887 $116,454 $116,521 $116,588 $116,655 $119,222 $119,289 $121,856 $121,923 $121,990 $122,057 $124,624
Liabilities and Capital Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Current Liabilities
Accounts Payable $0 $820 $820 $820 $820 $820 $820 $820 $820 $820 $820 $820 $820
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 $820 $820 $820 $820 $820 $820 $820 $820 $820 $820 $820 $820
L ong -term L ia bilitie s $ 150 ,0 00 $15 0,000 $1 50,00 0 $1 50,000 $1 50,00 0 $1 50,00 0 $ 150 ,0 00 $ 150 ,0 00 $15 0,000 $15 0,000 $15 0,0 00 $15 0,0 00 $ 15 0,0 00
Total Liabilities $150,000 $150,820 $150,820 $150,820 $150,820 $150,820 $150,820 $150,820 $150,820 $150,820 $150,820 $150,820 $150,820
Paid-in Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Retain ed Earnin gs ($3 7,000 ) ($ 37,000 ) ($ 37,00 0) ($ 37,00 0) ($37 ,0 00) ($37 ,0 00) ($3 7,000 ) ($3 7,0 00 ) ($3 7,000 ) ($3 7,000 ) ($3 7,000 ) ($3 7,000 ) ($3 7,000 )
Earnings $0 $67 $2,634 $2,701 $2,768 $2,835 $5,402 $5,469 $8,036 $8,103 $8,170 $8,237 $10,804
Total Capital ($3 7,000 ) ($ 36,933 ) ($ 34,36 6) ($ 34,29 9) ($34 ,2 32) ($34 ,1 65) ($3 1,598 ) ($3 1,5 31 ) ($2 8,964 ) ($2 8,897 ) ($2 8,830 ) ($2 8,763 ) ($2 6,196 )
To ta l L ia bil itie s a nd Ca pita l $ 11 3,0 00 $ 11 3,8 87 $ 11 6,4 54 $ 11 6,5 21 $ 11 6,5 88 $ 11 6,6 55 $ 11 9,2 22 $ 11 9,2 89 $ 12 1,8 56 $ 12 1,9 23 $ 12 1,9 90 $ 12 2,0 57 $ 12 4,6 24
Net Worth ($37,000) ($36,933) ($34,366) ($34,299) ($34,232) ($34,165) ($31,598) ($31,531) ($28,964) ($28,897) ($28,830) ($28,763) ($26,196)