business plan advanced

Name: Henok Kifle

ID:

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The undersigned reader acknowledges that the information provided by _______________ in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _______________.

It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to _______________.

Upon request, this document is to be immediately returned to _______________.

___________________ Signature

___________________Name (typed or printed)

___________________Date

This is a business plan. It does not imply an offering of securities.

Table of Contents

1.0 Executive Summary......................................................................................................................11.1 Mission...........................................................................................................................................1

Chart: Highlights............................................................................................................................22.0 Company Summary......................................................................................................................2

2.1 Company Ownership................................................................................................................22.2 Locations and Facilities...........................................................................................................22.3 Past Performance......................................................................................................................3

Table: Past Performance............................................................................................................32.4 Future Facilities..........................................................................................................................3

3.0 Products............................................................................................................................................43.1 Product Summary......................................................................................................................4

3.1.1 Future Products..................................................................................................................53.1.2 Product Support.................................................................................................................5

4.0 Market Analysis Summary.........................................................................................................54.1 Target Market Segment Strategy........................................................................................5

Table: Market Analysis................................................................................................................6Chart: Market Analysis (Pie)......................................................................................................6

4.2 Market Growth............................................................................................................................64.3 Marketing......................................................................................................................................7

4.3.1 Pricing....................................................................................................................................74.3.2 Marketing Communications...........................................................................................8

4.4 Industry Analysis........................................................................................................................94.4.1 Market Statistics................................................................................................................94.4.2 Competition and Buying Patterns..............................................................................12

5.0 Strategy and Implementation Summary............................................................................125.1 Competitive Edge....................................................................................................................125.2 Marketing Strategy.................................................................................................................13

6.0 Sales Forecast...............................................................................................................................14Table: Sales Forecast.................................................................................................................14Chart: Sales Monthly..................................................................................................................14Chart: Sales by Year...................................................................................................................15

7.0 Management Summary.............................................................................................................157.1 Personnel Plan..........................................................................................................................15

Table: Personnel..........................................................................................................................168.0 Financial Plan................................................................................................................................16

8.1 General Assumptions.............................................................................................................17Table: General Assumptions...................................................................................................17

8.2 Key Financial Indicators........................................................................................................188.2 Key Financial Indicators........................................................................................................18

Chart: Benchmarks.....................................................................................................................188.3 Break-even Analysis...............................................................................................................19

Table: Break-even Analysis.....................................................................................................19Chart: Break-even Analysis.....................................................................................................19

8.4 Projected Profit and Loss......................................................................................................20Table: Profit and Loss................................................................................................................20Chart: Gross Margin Yearly......................................................................................................21

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Table of Contents

Chart: Profit Yearly.....................................................................................................................218.5 Cash Flow...................................................................................................................................21

Table: Cash Flow.........................................................................................................................22Chart: Cash....................................................................................................................................23

8.6 Projected Balance Sheet.......................................................................................................24Table: Balance Sheet.................................................................................................................24

8.7 Business Ratios........................................................................................................................24Table: Ratios.................................................................................................................................25

Table: Sales Forecast...........................................................................................................................1Table: Personnel....................................................................................................................................2Table: Personnel....................................................................................................................................2Table: Profit and Loss..........................................................................................................................3Table: Profit and Loss..........................................................................................................................3Table: Cash Flow...................................................................................................................................5Table: Cash Flow...................................................................................................................................5Table: General Assumptions.............................................................................................................7Table: General Assumptions.............................................................................................................7Table: Balance Sheet...........................................................................................................................8Table: Balance Sheet...........................................................................................................................8

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Equipment Rental

1.0 Executive Summary

CompanyName is a promising, Ethiopian company that sells and rents heavy equipment such as dozers, backhoes, excavators, and trenchers as well as small home use and construction equipment such as tillers, augers, and chain saws.

CompanyName has obtained the authorization to be a distributor for Hancor Pipe, Stone Equipment, Pro-Cut Diamond Products, Echo Lawn Care, Compact Excavators, and Skid Steer Loaders. The company is the only authorized distributor for the South East from Addis Ababa at Debrezeyit area for Ramrod Equipment and Komatsu Forklifts.

CompanyName has a perfect management team with direct knowledge of the industry, extensive research experience, and unique administrative skills. Its team includes Mr. Henok Kifle and Mr. xxxxxxxxxxx. Having lived in Debrezeyit Ethiopia for 16 years, and worked at the city, President/CEO, Mr. Henok has compiled an extensive list of customers/potential customers, vendors, and contacts for equipment consignment.

Loyal customers help to expand the company's business area by word-of-mouth, using the company’s website and social medias.

A key component of the company's strategy is to continue to add to its ever-increasing product line which currently includes homeowner equipment from Echo and Interstate Batteries, commercial, equipment from Ramrod, Compact S/I Technology, and industrial equipment from Komatsu.

The company is seeking a loan/credit line in the amount of $300,000 for the purpose of expanding the business. Expansion plans include the purchase of additional land and construction of a larger shop/service area, increase rental inventory, purchase of delivery truck, and the hiring of additional personnel including a mechanic and delivery driver. Projected revenues for Year 1 to Year 3 are $210,000, $420,000, and $840,000, respectively.

1.1 Mission

CompanyName mission is to become the exclusive full-service equipment rental, sales, and Service Company in all over the city with the ability to service the surrounding parishes of Addis Ababa & Adama. Therefore the company's strategy is to create a limited geographical niche for itself where there are no potential competitors.

CompanyName vision is to continue to expand its service to other areas. The company's coverage area is constantly increasing, as the areas are becoming aware of the company's presence.

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Chart: Highlights

2014 2015 2016$0.00

$100,000.00$200,000.00$300,000.00$400,000.00$500,000.00$600,000.00$700,000.00$800,000.00

Highlights

Net ProfitGross MarginSales

2.0 Company Summary

CompanyName began its operations on May 2, 2014 with little capital investment. The company combined 3 years of experience in the sales and rental field to generate a large customer base. After eight months of operations at the present facility, the company has increased its customer list by 100% and its vendor list by 75%. CompanyName takes pride in having brought several new items to this area that were otherwise unknown, such as the spreader/grader and Ramrod products.

2.1 Company Ownership

CompanyName was founded in Debrezeyit, Tennessee in May 2014 to sell and rent heavy equipment, small home use machines, and construction equipment. The company was formed by Mr. Henok Kifle and Mr. Xxxx Xxxx. CompanyName is a Debrezeyit Corporation, with principal offices located in Debrezeyit, Ethiopia.

2.2 Locations and Facilities

The company has one office currently in Debrezeyit, Ethiopia.

CompanyName is located 47 Km from the Capital of Ethiopia (Addis Ababa) with easy access and a large turnaround area for larger vehicles used in pickup and delivery of equipment. CompanyName is not inside any municipal jurisdiction which would restrict the type of business being conducted. The location also benefits from easy access to hotels (1/2 mile), banks (less than 1/4 mile), groceries (1/8 mile), repair shops (1/4 mile), service stations (1/8 mile), and a parts supply house (1/3 mile).

Currently, there are no environmental concerns, but the company hopes to be able to have a repair shop located on the premises at which time any environmental concerns will be seen to.

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CompanyName's current hours of operation are from 8:00 a.m. until 5:00 p.m. However, the company does receive after hours calls and provides assistance as needed. Work hours have sometimes extended from 5:00 a.m. to later than 6:00 p.m. as needed.

2.3 Past Performance

The following is the company's past three years of performance since start-up.

Table: Past Performance

Past Performance

2014 2015 2016Sales $49,000 $57,000 $100,000Gross Margin $32,830 $42,351 $86,500Gross Margin % 67.00% 74.30% 86.50%Operating Expenses $33,810 $39,330 $69,000Collection Period (days) 0 0 0Inventory Turnover 4.00 4.00 4.00

Balance Sheet2014 2015 2016

Current AssetsCash $3,500 $1,500 $2,500Accounts Receivable $6,000 $7,000 $9,000Inventory $8,000 $14,000 $19,000Other Current Assets $2,500 $5,000 $6,000Total Current Assets $20,000 $27,500 $36,500

Long-term AssetsLong-term Assets $5,200 $6,400 $8,000Accumulated Depreciation $0 $0 $0Total Long-term Assets $5,200 $6,400 $8,000

Total Assets $25,200 $33,900 $44,500

Current LiabilitiesAccounts Payable $5,500 $7,000 $9,000Current Borrowing $8,000 $9,000 $9,500Other Current Liabilities (interest free) $4,000 $3,400 $3,700Total Current Liabilities $17,500 $19,400 $22,200

Long-term Liabilities $10,000 $12,000 $10,000Total Liabilities $27,500 $31,400 $32,200

Paid-in Capital $0 $0 $0Retained Earnings ($2,300) $2,500 $12,300Earnings $0 $0 $0Total Capital ($2,300) $2,500 $12,300

Total Capital and Liabilities $25,200 $33,900 $44,500

Other InputsPayment Days 60 45 45Sales on Credit $0 $0 $0Receivables Turnover 0.00 0.00 0.00

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2.4 Future Facilities

There is 1/2 - 1 acre of additional property directly to the north side and is available for the construction of a storage/equipment yard if necessary. Mr. Henok has worked with a steel building construction company and is able to purchase items to construct a building at cost or at a sufficient discount that it would not be necessary to use the greater portion of the loan for building needs. The estimated cost of building is expected to be between $10,000 and $13,500. CompanyName has access to a main highway with concrete entrances to and from the property.

3.0 Products

CompanyName sells and rents heavy equipment such as dozers, backhoes, excavators, and trenchers, as well as small home use, and construction equipment such as tillers, augers, and chain saws. CompanyName takes pride in having brought several new items to this area that were otherwise unknown, such as the spreader/grader and Ramrod products.

CompanyName has obtained the authorization to be a distributor for Hancor Pipe, Stone Equipment, Pro-Cut Diamond Products, Echo Lawn Care, Compact Excavators, and Skid Steer Loaders. The company is the only authorized distributor for the South East Addis Ababa -Debrezeyit area for Ramrod Equipment and Komatsu Forklifts.

3.1 Product Summary

Interstate CompanyName carries a range of Interstate equipment including:

Megatron Plus - 72 month; Megatron - 60 month; Light truck and van (LTV); Interstate - 50 month; Extreme performance; Interstate - 50 month (imported cars); Special use - lawn and garden, etc.; Marine/RV - 12 volt; Commercial - Very HD 12 volt; Commercial - 6 volt; Commercial - 8 volt special duty.

Komatsu CompanyName carries gasoline, diesel, LPG, and electric forklifts from Komatsu. The benefits of Komatsu products include:

Low noise designs reduce operator fatigue; Non-asbestos brakes; Open mast designs for excellent visibility; Heavy-duty air filtration systems with high air intake for extended engine life; Easy access to mechanical components.

Ramrod CompanyName carries a series of Ramrod Taskmaster products that are designed for any task. They include:

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Equipment Rental

The post hole auger (9" and 12") - can dig up to 60 holes in one hour; 32" forks - mini fork lift; Leveler - for back landscaping; The trencher - the attachment of choice for digging trenches; Hay and mower fork - horse and cattle stall cleanup; Scat track. CompanyName carries a series of mini excavators and skid steer loaders with

various attachments; Hydraulic breakers - for breaking concrete, rock, or other hard surfaces; Trenchers - for installing electric lines and underground cables; Pallet fork - for handling heavy palletized material; Grapples - for cleanup of loose, bulky, or baled materials; Augers - for digging holes and wide trenches in tight areas; Angle blade - for grading; Mini excavator - for construction, landscaping, and utility applications; Trimmers and bush cutters and accessories; Tiller/Cultivator; Power blowers and accessories; Hedge clippers; Power pruners and accessories; Chain saws; Safety accessories.

3.1.1 Future Products

CompanyName plans to increase its current inventory and suppliers while adding new product lines available on the market. CompanyName also plans to be able to offer specials such as manufacturer's discounts that would entice potential customers to CompanyName, while at the same time retaining a good working capital within the company.

StoneCompanyName anticipates carrying a series of Stone products including:

Stomper; WolfPac asphalt rollers; Rhino ride-on vibratory dirt rollers; Bulldog trench rollers; Hydroblend continuous mixers.

3.1.2 Product Support

CompanyName is also listed on the bidder list for several states and receive bid packages by mail, fax, and email which is checked daily.

4.0 Market Analysis Summary

The company expects to participate in a variety of different industries, including commercial and residential construction and farm machinery. The following sections will describe the industries in which CompanyName hopes to compete.

4.1 Target Market Segment Strategy

CompanyName currently has customers in the industrial and commercial fields, petro-chemical plants, contractors, sub-contractors, oil fields, and municipalities, with expansion potential in

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other areas. The Market Analysis table below gives the total potential number of businesses that could rent or buy our equipment in the local area.

Table: Market Analysis

Market Analysis

2017 2018 2019 2020 2021Potential Customers Growth CAGRPetro-chemical clients 1% 5 5 5 5 5 0.00%Contractors and subcontractors 10% 160 176 194 213 234 9.97%Municipalities 1% 8 8 8 8 8 0.00%Farmers 3% 127 131 135 139 143 3.01%Industrial clients 4% 86 89 93 97 101 4.10%Other 2% 40 41 42 43 44 2.41%Total 5.86% 426 450 477 505 535 5.86%

Chart: Market Analysis (Pie)

Petro-chemical clients

Contractors and subcontractors

Municipalities

Farmers

Industrial clients

Other

Market Analysis (Pie)

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4.2 Market Growth

Most of CompanyName's client industries such as the petro-chemical and farm industries have flat or very slow growth because these are mature or declining industries. However, often times there are other factors that make them attractive in the long run. The farming industry is heavily subsidized by the government and many of the farms in the local area are small plots with less than 100 acres. This means that most are poorly capitalized and seasonally require heavy equipment for planting and harvesting. This makes for an excellent cash-cow type client.

The one industry that can be counted on to grow significantly for the short-term is the contractor/commercial construction industry. The housing boom of the past five years has produced annual growth rates ranging from 5-10%. In evaluating our total market we plan to concentrate on this industry as our primary target market.

4.3 Marketing

The overall marketing plan for CompanyName's products and services is based on the following fundamentals:

The segment of the market(s) planned to reach. Distribution channels planned to be used to reach market segments: television, radio, sales

associates, and mailings. Share of the market expected to capture over a fixed period of time.

Market ResponsibilitiesCompanyName is committed to an extensive promotional campaign. This will be done aggressively and on a broad scale. To accomplish initial sales goals, the company will require an extremely effective promotional campaign to accomplish two primary objectives:

1. Attract quality sales/service personnel that have a desire to be successful.2. Attract customers that will constantly look to CompanyName for their projects.

In addition, CompanyName plans to advertise in magazines, newspapers, television, radio, and on billboards throughout the City.

PromotionIn addition to standard advertisement practices, CompanyName will gain considerable recognition through these additional promotional mediums:

Press releases sent to major radio stations, newspapers, and magazines.

Radio advertising on secondary stations.

Incentives. As an extra incentive for customers and potential customers to CompanyName's name, the company plans to distribute coffee mugs, T-shirts, pens, and other advertising specialties with the company logo. This will be an ongoing program for the company, when appropriate and where it is identified as beneficial.

Brochures. The objective of brochures is to portray CompanyNames' goals and products as an attractive functionality. It is also to show customers how to use the latest in technology as it relates to construction and building services. CompanyName will develop three

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brochures: one to be used to promote sales, one to use to announce the product in a new market, and the other to recruit sales associates.

Investment in Advertising and PromotionFor the first year of operation, advertising, and promotion is budgeted at a combined total of $14,000. A fixed amount of sales revenues will go toward the state CompanyName advertisement campaign. On an ongoing basis, CompanyName feels that it can budget advertising expenses at less than 10% of revenues to CompanyName.

4.3.1 Pricing

Currently, CompanyName maintains a commercial credit department for business customers with a 1% net 30-day limit. This loan will enable the company to establish its lending ability but will be structured so as not to hamper its ability to assist other customers (due on receipt with approved credit references). Most of CompanyName's customers choose to deal with their own financial sources, however CompanyName does have several financial sources to choose from, thereby giving them references should it become necessary to do so.

The company offers competitive prices, which are subject to review when necessary. CompanyName has done sufficient work in this area to know that it can place a markup on merchandise and still retain sufficient funds to be competitive. Knowledge of market and competitor prices gives CompanyName the advantage of pricing in-line with competitors. CompanyName suppliers have and will continue to supply products that enable the company to meet the customers’ price range.

At CompanyName, pricing is derived from an Ethiopian Customs Authority formula used to price sales and rental items in relation to cost and resale/use value.

4.3.2 Marketing Communications

The company's promotional plan is diverse and includes a range of marketing communications:

Trade shows. Company representatives will attend and participate in several trade shows. Print advertising. The company's print advertising program includes advertisements in the

Addis Zemen and Reporter newspapers. Festivals. The company plans to take part in various local shows. Additional methods include:

o Yard signs - changed on a two week rotating schedule.o Magnetic signs - for trucks.o Business cards.o Sponsoring TV shows, sport events and sitcom dramas.

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4.4 Industry Analysis

Industry Description (information provided by imarketinc.com)

Market size statistics - Industrial trucks and tractorsEstablishments primarily engaged in manufacturing industrial trucks, tractors, trailers, stackers (truck type), and related equipment used for handling materials on floors and paved surfaces in and around industrial and commercial plants, depots, docks, airports, and terminals.

Estimated number of Ethiopian establishments 1,004Total people employed in this industry 37,854Total annual sales in this industry $13,004 millionAverage employees per establishment 38Average sales per establishment $16 million

Market size statistics - Farm machinery and equipmentEstablishments primarily engaged in manufacturing farm machinery and equipment including soil preparation machinery, for use in the preparation and maintenance of the soil, planting and harvesting of the crop, preparing crops for market on the farm, or for use in performing other farm operations and processes.

Estimated number of Ethiopian establishments 2,594Total people employed in this industry 79,978Total annual sales in this industry $30,474 millionAverage employees per establishment 31Average sales per establishment $13.3 million

Market size statistics - Construction machineryEstablishments primarily engaged in manufacturing heavy machinery and equipment, such as bulldozers, concrete mixers, cranes.


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4.4.1 Market StatisticsMarket Description (information provided by S&P and imarketinc.com)

The market in CompanyName's area is very large with new construction being at an all-time high. CompanyName is in need of inventory to be able to supply the local area and neighboring communities. The company has been able to sub-rent some equipment but would like to obtain certain items to put into its fleet thereby increasing profit margins. CompanyName plans on offering a substantial line of equipment for rental and sales to meet customer needs as well as service for the equipment and those owned by others in the area.

The housing industry has proceeded at a red-hot pace for several years running. An all-time record was set in 2015, when 886,000 new-site single family homes were sold. That represented a 10% gain from the robust total of 804,000 homes sold in 2014, and an 8.1% rise from the prior record of 819,000 units in 2002. Single-family housing construction accounted for $47,539 million of the total $124,953 million generated in the industry.

Home sales were strengthened even further during most of 2016’s first 10 months. In that period, new single-family home sales increased by 4.8% on a year-to-year basis, to 791,000 units, according to the Ethiopian Department of Commerce. Through October 2016, seasonally adjusted sales had exceeded 800,000 on an annualized basis in every month since the start of 2015.

The record setting string of home sales since the second half of 2014 has forced builders to pick up the pace of their construction activity. During 2015, total starts increased by 9.7% to 1.62 million units. Starts for single family units moved up 12% for the year, and those of multi-family units were ahead by 1.5%. As an indication of building activity at year-end 2015, housing starts in November 2015 came in at a seasonally adjusted annual rate of 1.6 million units.

Market size statistics - Single-family housing constructionGeneral contractors primarily engaged in construction of single-family houses.

Estimated number of Ethiopian establishments 218,276Average people employed in this industry 831,158Total annual sales in this industry $124,953 millionAverage employees per establishment 4Average sales per establishment $.6 million

Market size statistics - Residential construction, necGeneral contractors primarily engaged in construction (including new work additions, alterations, remodeling, and repair) of residential buildings other than single-family houses. This includes hotels, motels, apartments, and multi-family homes.


Market size statistics - Heavy construction, necGeneral and special trade contractors primarily engaged in the construction of heavy projects not elsewhere classified. This includes canal, drainage system, athletic and recreation facilities, land preparation, rock removal, waste water and sewage treatment plant, and trenching construction.

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Market size statistics - Bridge, tunnel, and elevated highway constructionGeneral contractors primarily engaged in the construction of bridges, viaducts, elevated highways, and pedestrian and railway tunnels.


Market size statistics - Highway and street constructionGeneral and special trade contractors primarily engaged in the construction of roads, streets, alleys, public sidewalks, guardrails, parkways, and airports.


Market size statistics - Nonresidential construction, necGeneral contractors primarily engaged in the construction (including new work additions, alterations, remodeling, and repair) of nonresidential buildings other than industrial buildings and warehouses. This includes commercial, institutional, religious, and amusement and recreational buildings.


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4.4.2 Competition and Buying Patterns

CompanyName's closest competitors are located in Addis Ababa. They include the following three companies:

Company 1; Company 2; Company 3;

Being located in or near Addis Ababa, they charge a drop off and/or pick up fee. CompanyName can, in most cases, wave this fee which will allow the customer more funds to purchase/rent additional equipment.

5.0 Strategy and Implementation Summary

The company plans to rapidly develop marketing alliances with industry leaders and pursue new sales of homeowner, commercial, and industrial equipment. The market strategy is to capitalize on CompanyName's ever-increasing customer base and contacts by offering the latest products and personalized service.

The company's goal in the next year is to obtain financing which will allow for expanding the shop/service area with up-to-date servicing equipment, hiring additional employees, and obtaining a delivery truck as well as rental and sales inventory for all aspects of the company's customer base.

The company's goal in the next two to five years is to hire additional employees, concentrate on customer service, and promote the company and the environment that has allowed for this increase in service by way of discounts and promotional specials that will benefit the company and the customer.

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5.1 Competitive Edge

Obtain financing. The company is currently working to obtain financing that will enable it to carry out its operations.

Expansion. CompanyName is currently in need of property for expansion and display, rental and sale, and to increase its product line. Storage is a constant problem without a building and additional land to meet E CompanyName's current needs.

Purchase additional equipment. Most previous equipment purchases have been for resale/consignment, and the markup has not allowed for a great increase in supplies.

Hire more employees. The company plans to employ two people from the area, in positions within the shop. They will be responsible for maintenance, repair, and delivery. This will enable Mr. Henok and Mr. Xxxx to focus on the core of the business.

Increase advertising. The company is currently working to expand its advertising campaigns. The company has designed a tri-fold brochure that will make people in the area aware of its product offering and how it can meet their needs.

Establish more alliances. CompanyName has contacts with several companies with floor plans, which will enable the company to stock several of their items for resale. The company plans to purchase some of their products, leaving them to furnish the display equipment.

5.2 Marketing Strategy

The company has strategic alliances with the EBC. This alliance is valuable to CompanyName because the company gets to air television ads, and they are valuable to the ally firms because they are promoting a local company and this helps in community development. CompanyName plans to also form strategic alliances with Internet sites, area publications, and other equipment dealers.

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6.0 Sales Forecast

The following table and charts show the Projected Sales Forecast for Equipment Rental.

Table: Sales Forecast

Sales Forecast

2017 2018 2019

SalesSales and Rentals $210,000 $420,000 $840,000Other $0 $0 $0Total Sales $210,000 $420,000 $840,000

Direct Cost of Sales 2000 2001 2002Sales and Rentals $31,500 $60,000 $150,000Other $3,000 $6,000 $12,000Subtotal Direct Cost of Sales $34,500 $66,000 $162,000

Chart: Sales Monthly

Sales and Rentals

Other

$0

$3,000

$6,000

$9,000

$12,000

$15,000

$18,000

$21,000

$24,000

$27,000

$30,000

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Sales Monthly

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Chart: Sales by Year

2017 2018 20190

100000200000300000400000500000600000700000800000900000

1000000

Sales & RentalsOther

7.0 Management Summary

The company's management philosophy is based on responsibility and mutual respect. CompanyName maintains an environment and structure that encourages productivity and respect for customers and fellow employees.

7.1 Personnel Plan

CompanyName's management is highly experienced and qualified. Its key management team includes Mr. Henok and Mr. Xxxx.

Jointly, they are responsible for processing quotes, arranging financing, as needed, scheduling invoices for pickup and delivery, and contract sales/rentals.

Descriptions of the management team and responsibilities are as follows.

Mr. Henok makes all decisions concerning equipment purchases, as this is his area of expertise. Mr. Henok is in charge of obtaining all equipment for sales and rentals, completing contracts, working up quotes, setting up delivery of merchandise, arranging financing as needed, contacting customers, and verifying pickup and delivery.

Mr. Xxxx answers the phone, faxes, does all the computer work, files any monthly or quarterly tax forms, compiles correspondence as needed, accounts receivable, accounts payable, meets with a bookkeeper for end of year tax return, keeps all office needs running smoothly, filing, typing, copies, and is majority stock holder in the company (45%).

Future plans call for the hiring of a mechanic and shop man with hopes of adding a truck and delivery driver shortly thereafter from the area, with additional office/shop personnel to be added as needed.

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On occasion part-time personnel will be used and job training provided through the area schools for those interested in this area of the job market.

Table: Personnel

Personnel Plan

2017 2018 2019Sales/Rental Associate $19,200 $19,200 $19,200Sales/Rental Associate $19,200 $19,200 $19,200Sales/Rental Associate $19,200 $19,200 $19,200Maintenance/Technician $0 $5,010 $9,500Maintenance Technician $0 $0 $6,000Total People 5 6 7

Total Payroll $57,600 $62,610 $73,100

8.0 Financial Plan

CompanyName was capitalized with $5,000 when it was formed in May 2014. A strong knowledge of the area and supply and demand needs led to the formation of the company. Most items purchased to this date (truck, trailer, computer, office supplies, envelopes, and stationery) have been financed through personal funds, and a $4,000 line of credit with Hibernia Bank.

CompanyName's first sales placed $5,145 into the business account, most of which was used to pay off initial purchases with the balance being used for office and truck expenses such as telephone bill, postage, and fuel. As of April 1, 2016, the truck has been paid in full along with several of the smaller home use items. The company has generated sales in the amount of $52,490 with cost being $38,870 and a profit of $13,620 (97-98 Income Tax Return).

Funding Requirements and UsesThe company is seeking a loan/credit line in the amount of $300,000 for the purpose of expanding the business. Expansion plans include the purchase of additional land and construction of a larger shop/service area, increase rental inventory, and hiring of additional personnel including a mechanic and delivery driver. The table below provides a breakdown of the use of funds.

Use of Funds

Purchase land 25' X 175' on the north side of existing building $7,000Erect shop area 25' X 32' on land w/concrete slab, office area $10,000Shop equipment $14,000Rental inventory $60,000Consolidate regions loan, Hibernia L. O. C., current equipment purchases Bosch electric breaker, 3.0 KW generator, shop items $50,000Advertising $7,000Balance for working capital, employee training, office equipment modernization, maintenance inventory (i.e.: oil, air, and hydraulic filters), unforeseen building/maintenance expense

$152,000

Shop equipment to include: air compressor, air tools and accessories, blow torch, welding machine and accessories, 1 1/2 ton chain hoist, oil/water separator, holding tank, assorted hand tools, washing vat, chain saw sharpener and repair accessories.

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Rental inventory to include: Trash and diaphragm pumps 2 ea. 2" and 3", 3/4" submersible pump and accessories, 3 hp. concrete vibrator, 2-48" concrete power trowels, Case 580L or JD 310 Backhoe, small trailer and larger trailer, 1-ton Ford F350 or F450 Diesel delivery truck, air compressor, 90 lb. air hammer and accessories, rotovator for tractor, 1 push mower, 1 lawn tractor.

8.1 General Assumptions

The following table lists the general assumptions.

Table: General Assumptions

General Assumptions

2017 2018 2019Plan Month 1 2 3Current Interest Rate 10.00% 10.00% 10.00%Long-term Interest Rate 10.00% 10.00% 10.00%Tax Rate 30.00% 30.00% 30.00%Other 0 0 0

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8.2 Key Financial Indicators

The following chart shows the important benchmarks for Equipment Rental.

Chart: Benchmarks

Sales Gross Margin%

Operating Expenses

Collection Adys

Inventory Turnover

0123456789

201420152016201720182019

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8.3 Break-even Analysis

The table and chart below contain the Break-even Analysis for Equipment Rental.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $13,981

Assumptions:Average Percent Variable Cost 16%Estimated Monthly Fixed Cost $11,684

Chart: Break-even Analysis

$0

$2,000

$4,000

$6,000

($2,000)

($4,000)

($6,000)

($8,000)

($10,000)

$0$2,000

$4,000$6,000

$8,000$10,000

$12,000$14,000

$16,000$18,000

$20,000$22,000

Break-even Analysis

Page 19

Equipment Rental

8.4 Projected Profit and Loss

The Projected Profit and Loss can be seen in the following table and charts.

Table: Profit and Loss

Pro Forma Profit and Loss

2000 2001 2002Sales $210,000 $420,000 $840,000Direct Cost of Sales $34,500 $66,000 $162,000Other Production Expenses $3,000 $42,000 $126,000Total Cost of Sales $37,500 $108,000 $288,000

Gross Margin $172,500 $312,000 $552,000Gross Margin % 82.14% 74.29% 65.71%

ExpensesPayroll $57,600 $62,610 $73,100Sales and Marketing and Other Expenses $14,000 $31,000 $82,598Depreciation $0 $0 $0Supplies and equipment $9,924 $19,851 $39,702Utilities $1,602 $2,403 $3,604Telephone $7,812 $7,810 $7,810Insurance $14,448 $21,688 $32,533Repairs and Maintenance $10,932 $20,397 $30,596Services $2,832 $2,833 $2,833Rent $12,420 $12,420 $12,420Payroll Taxes $8,640 $9,392 $10,965Other $0 $0 $0

Total Operating Expenses $140,210 $190,404 $296,161

Profit Before Interest and Taxes $32,290 $121,597 $255,839EBITDA $32,290 $121,597 $255,839 Interest Expense $29,938 $23,065 $18,365 Taxes Incurred $706 $29,559 $71,242

Net Profit $1,646 $68,972 $166,232Net Profit/Sales 0.78% 16.42% 19.79%

Page 20

Equipment Rental

Chart: Gross Margin Yearly

Gross Margin Yearly

2017 2018 20190

100000

200000

300000

400000

500000

600000

700000

201720182019

Chart: Profit Yearly

Profit Yearly

2017 2018 20190

20000400006000080000

100000120000140000160000180000

201720182019

Page 21

Equipment Rental

8.5 Cash Flow

The following table and chart are the Projected Cash Flow figures for CompanyName.

Table: Cash Flow

Pro Forma Cash Flow

2017 2018 2019

Cash Received

Cash from OperationsCash Sales $42,000 $84,000 $168,000Cash from Receivables $157,400 $316,400 $632,800Subtotal Cash from Operations $199,400 $400,400 $800,800

Additional Cash ReceivedSales Tax, VAT, HST/GST Received $0 $0 $0New Current Borrowing $149,000 $20,000 $20,000New Other Liabilities (interest-free) $0 $0 $0New Long-term Liabilities $151,000 $0 $0Sales of Other Current Assets $0 $0 $0Sales of Long-term Assets $0 $0 $0New Investment Received $0 $0 $0Subtotal Cash Received $499,400 $420,400 $820,800

Expenditures 2000 2001 2002

Expenditures from OperationsCash Spending $57,600 $62,610 $73,100Bill Payments $134,408 $274,735 $580,262Subtotal Spent on Operations $192,008 $337,345 $653,362

Additional Cash SpentSales Tax, VAT, HST/GST Paid Out $0 $0 $0Principal Repayment of Current Borrowing $45,248 $30,000 $60,000Other Liabilities Principal Repayment $0 $0 $0Long-term Liabilities Principal Repayment $29,100 $19,000 $25,000Purchase Other Current Assets $58,000 $2,000 $22,000Purchase Long-term Assets $91,000 $4,000 $9,000Dividends $65,000 $10,000 $20,000Subtotal Cash Spent $480,356 $402,345 $789,362

Net Cash Flow $19,044 $18,055 $31,438Cash Balance $21,544 $39,600 $71,038

Page 22

Equipment Rental

Chart: Cash

Net Cash Flow

Cash Balance

$0

$40,000

$80,000

$120,000

$160,000

$200,000

$240,000

$280,000

($40,000)Ja

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Cash

8.6 Projected Balance Sheet

CompanyName's projected balance sheets for 2017-2019.

Table: Balance Sheet

Pro Forma Balance Sheet

2017 2018 2019

Assets

Current AssetsCash $21,544 $39,600 $71,038Accounts Receivable $19,600 $39,200 $78,400Inventory $2,000 $3,826 $9,391Other Current Assets $64,000 $66,000 $88,000Total Current Assets $107,144 $148,626 $246,829

Long-term AssetsLong-term Assets $99,000 $103,000 $112,000Accumulated Depreciation $0 $0 $0Total Long-term Assets $99,000 $103,000 $112,000Total Assets $206,144 $251,626 $358,829

Liabilities and Capital 2000 2001 2002

Current LiabilitiesAccounts Payable $8,346 $23,856 $49,827Current Borrowing $113,252 $103,252 $63,252Other Current Liabilities $3,700 $3,700 $3,700Subtotal Current Liabilities $125,298 $130,808 $116,779

Page 23

Equipment Rental

Long-term Liabilities $131,900 $112,900 $87,900Total Liabilities $257,198 $243,708 $204,679

Paid-in Capital $0 $0 $0Retained Earnings ($52,700) ($61,054) ($12,082)Earnings $1,646 $68,972 $166,232Total Capital ($51,054) $7,918 $154,150Total Liabilities and Capital $206,144 $251,626 $358,829

Net Worth ($51,054) $7,918 $154,150

8.7 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7359, [Equipment Rental and Leasing, nec], are shown for comparison.

Table: Ratios

Ratio Analysis

2017 2018 2019 Industry ProfileSales Growth 110.00% 100.00% 100.00% 7.07%

Percent of Total AssetsAccounts Receivable 9.51% 15.58% 21.85% 27.61%Inventory 0.97% 1.52% 2.62% 3.96%Other Current Assets 31.05% 26.23% 24.52% 44.65%Total Current Assets 51.98% 59.07% 68.79% 76.22%Long-term Assets 48.02% 40.93% 31.21% 23.78%Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 60.78% 51.98% 32.54% 33.47%Long-term Liabilities 63.98% 44.87% 24.50% 16.23%Total Liabilities 124.77% 96.85% 57.04% 49.70%Net Worth -24.77% 3.15% 42.96% 50.30%

Percent of SalesSales 100.00% 100.00% 100.00% 100.00%Gross Margin 82.14% 74.29% 65.71% 100.00%Selling, General & Administrative Expenses 81.36% 57.86% 45.92% 84.88%Advertising Expenses 3.33% 5.71% 6.90% 1.01%Profit Before Interest and Taxes 15.38% 28.95% 30.46% 1.94%

Main RatiosCurrent 0.86 1.14 2.11 1.73Quick 0.84 1.11 2.03 1.33Total Debt to Total Assets 124.77% 96.85% 57.04% 57.72%Pre-tax Return on Net Worth -4.61% 1244.37% 154.05% 3.77%Pre-tax Return on Assets 1.14% 39.16% 66.18% 8.92%

Additional Ratios 2000 2001 2002Net Profit Margin 0.78% 16.42% 19.79% n.aReturn on Equity 0.00% 871.06% 107.84% n.a

Activity Ratios

Page 24

Equipment Rental

Accounts Receivable Turnover 8.57 8.57 8.57 n.aCollection Days 59 32 32 n.aInventory Turnover 4.44 22.66 24.51 n.aAccounts Payable Turnover 16.03 12.17 12.17 n.aPayment Days 29 20 22 n.aTotal Asset Turnover 1.02 1.67 2.34 n.a

Debt RatiosDebt to Net Worth 0.00 30.78 1.33 n.aCurrent Liab. to Liab. 0.49 0.54 0.57 n.a

Liquidity RatiosNet Working Capital ($18,154) $17,818 $130,050 n.aInterest Coverage 1.08 5.27 13.93 n.a

Additional RatiosAssets to Sales 0.98 0.60 0.43 n.aCurrent Debt/Total Assets 61% 52% 33% n.aAcid Test 0.68 0.81 1.36 n.aSales/Net Worth 0.00 53.04 5.45 n.aDividend Payout 39.49 0.14 0.12 n.a

Page 25

Appendix

Table: Sales Forecast

Sales Forecast

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

Sales

Sales and Rentals 0% $10,000 $10,000 $11,200 $14,400 $17,500 $20,400 $28,000 $29,000 $26,000 $18,500 $15,000 $10,000Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Sales $10,000 $10,000 $11,200 $14,400 $17,500 $20,400 $28,000 $29,000 $26,000 $18,500 $15,000 $10,000

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Sales and Rentals $1,500 $1,500 $1,680 $2,160 $2,625 $3,060 $4,200 $4,350 $3,900 $2,775 $2,250 $1,500

Other $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250

Subtotal Direct Cost of Sales $1,750 $1,750 $1,930 $2,410 $2,875 $3,310 $4,450 $4,600 $4,150 $3,025 $2,500 $1,750

Page 1

Appendix

Table: Personnel

Personnel Plan


Sales/Rental Associate 0% $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600Sales/Rental Associate 0% $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600Sales/Rental Associate 0% $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600Maintenance/Technician 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Maintenance Technician 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total People 5 5 5 5 5 5 5 5 5 5 5 5

Total Payroll $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800

Page 2

Appendix

Table: Profit and Loss

Pro Forma Profit and Loss


Sales $10,000 $10,000 $11,200 $14,400 $17,500 $20,400 $28,000 $29,000 $26,000 $18,500 $15,000 $10,000

Direct Cost of Sales $1,750 $1,750 $1,930 $2,410 $2,875 $3,310 $4,450 $4,600 $4,150 $3,025 $2,500 $1,750

Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $1,000 $750 $500 $750

Total Cost of Sales $1,750 $1,750 $1,930 $2,410 $2,875 $3,310 $4,450 $4,600 $5,150 $3,775 $3,000 $2,500

Gross Margin $8,250 $8,250 $9,270 $11,990 $14,625 $17,090 $23,550 $24,400 $20,850 $14,725 $12,000 $7,500

Gross Margin % 82.50% 82.50% 82.77% 83.26% 83.57% 83.77% 84.11% 84.14% 80.19% 79.59% 80.00% 75.00%

Expenses

Payroll $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800

Sales and Marketing and Other Expenses $917 $917 $917 $2,417 $2,417 $917 $917 $917 $917 $917 $917 $917

Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Supplies and equipment $827 $827 $827 $827 $827 $827 $827 $827 $827 $827 $827 $827

Utilities $134 $134 $134 $134 $134 $134 $134 $134 $134 $134 $134 $134

Telephone $651 $651 $651 $651 $651 $651 $651 $651 $651 $651 $651 $651

Insurance $1,204 $1,204 $1,204 $1,204 $1,204 $1,204 $1,204 $1,204 $1,204 $1,204 $1,204 $1,204

Repairs and Maintenance $911 $911 $911 $911 $911 $911 $911 $911 $911 $911 $911 $911

Services $236 $236 $236 $236 $236 $236 $236 $236 $236 $236 $236 $236

Rent $1,035 $1,035 $1,035 $1,035 $1,035 $1,035 $1,035 $1,035 $1,035 $1,035 $1,035 $1,035

Payroll Taxes 15% $720 $720 $720 $720 $720 $720 $720 $720 $720 $720 $720 $720

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Operating Expenses $11,434 $11,434 $11,434 $12,934 $12,934 $11,434 $11,434 $11,434 $11,434 $11,434 $11,434 $11,434

Profit Before Interest and Taxes ($3,184) ($3,184) ($2,164) ($944) $1,691 $5,656 $12,116 $12,966 $9,416 $3,291 $566 ($3,934)

EBITDA ($3,184) ($3,184) ($2,164) ($944) $1,691 $5,656 $12,116 $12,966 $9,416 $3,291 $566 ($3,934)

Interest Expense $2,663 $2,663 $2,663 $2,643 $2,623 $2,604 $2,584 $2,565 $2,442 $2,296 $2,151 $2,043

Taxes Incurred ($1,754) ($1,754) ($1,448) ($1,076) ($280) $916 $2,860 $3,120 $2,092 $298 ($476) ($1,793)

Net Profit ($4,093) ($4,093) ($3,379) ($2,511) ($653) $2,136 $6,672 $7,281 $4,882 $696 ($1,110) ($4,184)

Page 3

Appendix

Net Profit/Sales -40.93% -40.93% -30.17% -17.44% -3.73% 10.47% 23.83% 25.11% 18.78% 3.76% -7.40% -41.84%

Page 4

Appendix

Table: Cash Flow

Pro Forma Cash Flow


Cash Received

Cash from Operations

Cash Sales $2,000 $2,000 $2,240 $2,880 $3,500 $4,080 $5,600 $5,800 $5,200 $3,700 $3,000 $2,000

Cash from Receivables $4,500 $4,767 $8,000 $8,032 $9,045 $11,603 $14,077 $16,523 $22,427 $23,120 $20,600 $14,707

Subtotal Cash from Operations $6,500 $6,767 $10,240 $10,912 $12,545 $15,683 $19,677 $22,323 $27,627 $26,820 $23,600 $16,707

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 $149,000 $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 $151,000 $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 $306,500 $6,767 $10,240 $10,912 $12,545 $15,683 $19,677 $22,323 $27,627 $26,820 $23,600 $16,707

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

Expenditures from Operations

Cash Spending $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800

Bill Payments $9,251 $7,543 $7,553 $7,910 $9,727 $10,467 $10,363 $16,469 $17,042 $15,688 $11,732 $10,662

Subtotal Spent on Operations $14,051 $12,343 $12,353 $12,710 $14,527 $15,267 $15,163 $21,269 $21,842 $20,488 $16,532 $15,462

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 $12,416 $12,416 $12,416 $8,000

Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Long-term Liabilities Principal Repayment $0 $0 $0 $2,350 $2,350 $2,350 $2,350 $2,350 $2,350 $5,000 $5,000 $5,000

Purchase Other Current Assets $10,000 $12,000 $25,000 $4,000 $7,000 $0 $0 $0 $0 $0 $0 $0

Purchase Long-term Assets $0 $30,000 $27,000 $34,000 $0 $0 $0 $0 $0 $0 $0 $0

Page 5

Appendix

Dividends $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417

Subtotal Cash Spent $29,468 $59,759 $69,770 $58,477 $29,294 $23,034 $22,930 $29,036 $42,025 $43,320 $39,365 $33,879

Net Cash Flow $277,032 ($52,993) ($59,530) ($47,565) ($16,748) ($7,351) ($3,253) ($6,713) ($14,398) ($16,500) ($15,765) ($17,172)

Cash Balance $279,532 $226,539 $167,010 $119,445 $102,697 $95,346 $92,093 $85,380 $70,982 $54,481 $38,717 $21,544

Page 6

Appendix

Table: General Assumptions

General Assumptions


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

Page 7

Appendix

Table: Balance Sheet

Pro Forma Balance Sheet


Assets Starting Balances

Current Assets

Cash $2,500 $279,532 $226,539 $167,010 $119,445 $102,697 $95,346 $92,093 $85,380 $70,982 $54,481 $38,717 $21,544Accounts Receivable $9,000 $12,500 $15,733 $16,693 $20,181 $25,136 $29,853 $38,176 $44,853 $43,227 $34,907 $26,307 $19,600Inventory $19,000 $17,250 $15,500 $13,570 $11,160 $8,285 $4,975 $4,895 $5,060 $4,565 $3,328 $2,750 $2,000Other Current Assets $6,000 $16,000 $28,000 $53,000 $57,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000Total Current Assets $36,500 $325,282 $285,773 $250,273 $207,786 $200,118 $194,174 $199,164 $199,293 $182,773 $156,716 $131,773 $107,144

Long-term Assets

Long-term Assets $8,000 $8,000 $38,000 $65,000 $99,000 $99,000 $99,000 $99,000 $99,000 $99,000 $99,000 $99,000 $99,000Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Long-term Assets $8,000 $8,000 $38,000 $65,000 $99,000 $99,000 $99,000 $99,000 $99,000 $99,000 $99,000 $99,000 $99,000Total Assets $44,500 $333,282 $323,773 $315,273 $306,786 $299,118 $293,174 $298,164 $298,293 $281,773 $255,716 $230,773 $206,144

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

Current Liabilities

Accounts Payable $9,000 $7,291 $7,291 $7,587 $9,378 $10,128 $9,815 $15,900 $16,515 $15,296 $11,374 $10,375 $8,346Current Borrowing $9,500 $158,500 $158,500 $158,500 $158,500 $158,500 $158,500 $158,500 $158,500 $146,084 $133,668 $121,252 $113,252Other Current Liabilities $3,700 $3,700 $3,700 $3,700 $3,700 $3,700 $3,700 $3,700 $3,700 $3,700 $3,700 $3,700 $3,700Subtotal Current Liabilities $22,200 $169,491 $169,491 $169,787 $171,578 $172,328 $172,015 $178,100 $178,715 $165,080 $148,742 $135,327 $125,298

Long-term Liabilities $10,000 $161,000 $161,000 $161,000 $158,650 $156,300 $153,950 $151,600 $149,250 $146,900 $141,900 $136,900 $131,900Total Liabilities $32,200 $330,491 $330,491 $330,787 $330,228 $328,628 $325,965 $329,700 $327,965 $311,980 $290,642 $272,227 $257,198

Paid-in Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Retained Earnings $12,300 $6,883 $1,467 ($3,950) ($9,367) ($14,783) ($20,200) ($25,617) ($31,033) ($36,450) ($41,867) ($47,283) ($52,700)Earnings $0 ($4,093) ($8,185) ($11,564) ($14,075) ($14,728) ($12,591) ($5,919) $1,362 $6,244 $6,940 $5,830 $1,646Total Capital $12,300 $2,791 ($6,719) ($15,514) ($23,442) ($29,511) ($32,791) ($31,536) ($29,671) ($30,206) ($34,927) ($41,453) ($51,054)Total Liabilities and Capital $44,500 $333,282 $323,773 $315,273 $306,786 $299,118 $293,174 $298,164 $298,293 $281,773 $255,716 $230,773 $206,144

Net Worth $12,300 $2,791 ($6,719) ($15,514) ($23,442) ($29,511) ($32,791) ($31,536) ($29,671) ($30,206) ($34,927) ($41,453) ($51,054)

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business plan advanced

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