oasis juice

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This sample business plan has been made available to users of Business Plan Pro®, business planning software published by Palo Alto Software, Inc. Names, locations and numbers may have been changed, and substantial portions of the original plan text may have been omitted to preserve confidentiality and proprietary information. You are welcome to use this plan as a starting point to create your own, but you do not have permission to resell, reproduce, publish, distribute or even copy this plan as it exists here. Requests for reprints, academic use, and other dissemination of this sample plan should be emailed to the marketing department of Palo Alto Software at [email protected]. For product information visit our website: www.paloalto.com or call: 1-800-229-7526. Copyright © Palo Alto Software, Inc., 1995-2009 All rights reserved.

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Page 1: Oasis Juice

This sample business plan has been made available to users of Business Plan Pro®, business planningsoftware published by Palo Alto Software, Inc. Names, locations and numbers may have beenchanged, and substantial portions of the original plan text may have been omitted to preserveconfidentiality and proprietary information.

You are welcome to use this plan as a starting point to create your own, but you do not havepermission to resell, reproduce, publish, distribute or even copy this plan as it exists here.

Requests for reprints, academic use, and other dissemination of this sample plan should be emailedto the marketing department of Palo Alto Software at [email protected]. For productinformation visit our website: www.paloalto.com or call: 1-800-229-7526.

Copyright © Palo Alto Software, Inc., 1995-2009 All rights reserved.

Page 2: Oasis Juice

Confidentiality Agreement

The undersigned reader acknowledges that the information provided by_________________________ in this business plan is confidential; therefore, reader agrees not todisclose it without the express written permission of _________________________.

It is acknowledged by reader that information to be furnished in this business plan is in all respectsconfidential in nature, other than information which is in the public domain through other meansand that any disc losure 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.

Page 3: Oasis Juice

Table of Contents

Page 1

1.0 Executive Summary.............................................................................................................................11.1 Objectives ...................................................................................................................................11.2 Mission ........................................................................................................................................1

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

2.1 Company Ownership .................................................................................................................22.2 Company History........................................................................................................................3

Table: Past Performance .......................................................................................................4Chart: Past Performance .......................................................................................................5

2.3 Company Locations and Facilities ..........................................................................................53.0 Products ...............................................................................................................................................54.0 Market Analysis Summary ..................................................................................................................5

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

5.0 Strategy and Implementation Summary ............................................................................................75.1 Marketing Strategy.....................................................................................................................75.2 Sales Strategy ............................................................................................................................7

5.2.1 Sales Forecast ..............................................................................................................7Table: Sales Forecast ...................................................................................................7Chart: Sales Monthly......................................................................................................8Chart: Sales by Year......................................................................................................8

6.0 Management Summary.......................................................................................................................86.1 Personnel Plan ...........................................................................................................................9

Table: Personnel .....................................................................................................................97.0 Financial Plan ....................................................................................................................................10

7.1 Break-even Analysis................................................................................................................10Chart: Break-even Analysis .................................................................................................10Table: Break-even Analysis .................................................................................................10

7.2 Projected Profit and Loss .......................................................................................................11Table: Profit and Loss ..........................................................................................................11Chart: Profit Monthly .............................................................................................................12Chart: Profit Yearly ................................................................................................................12

7.3 Projected Cash Flow ...............................................................................................................12Table: Cash Flow ..................................................................................................................13Chart: Cash ...........................................................................................................................14

7.4 Projected Balance Sheet ........................................................................................................14Table: Balance Sheet ...........................................................................................................15

7.5 Business Ratios .......................................................................................................................15Table: Ratios .........................................................................................................................16

Table: Sales Forecast ...............................................................................................................................1Table: Personnel ........................................................................................................................................2Table: General Assumptions ....................................................................................................................3Table: Profit and Loss ...............................................................................................................................4Table: Cash Flow .......................................................................................................................................5Table: Balance Sheet ................................................................................................................................6

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Oasis Juice

Page 1

1.0 Executive Summary

Oasis Juice has been a successful product brand in the city of Richmond for three years. Thecompany's natural, 100% fruit juices has grown in sales by 15% each year and is now availablein over 100 store outlets in the greater Richmond area. Oasis Juice will gross $580,000 in salesthis year. This was generated from a initial investment of $180,000.

Oasis Juice is planning to expand its operation to include distribution to stores within the entirestate. Owner funding and internally generated cash flow will enable most the expansion plan. The company will also secure a $100,000 short-term loan. Sales projections for the next threeyears are based on current sales success with the target customer base in Richmond. Initialcontacts have been completed with retail outlets throughout the state and the potentialtarget markets have been identified.

This plan will result in sales revenues growing to $1.2 million by Year 2.

1.1 Objectives

The objectives of Oasis Juice are the following:

· Create a state-wide sales staff.· Establish strong sales in the state's five metro areas by Year 2.· Maintain tight control of cost and operation during expansion.

1.2 Mission

Oasis Juice's mission is as follows:

· Quality: Our fruit juices are the highest quality, most nutritious food products...because we will accept nothing less.

· Innovative: Our products have always been in the forefront of the health and nutritionwave. Innovative products, state of the art manufacturing, quality assurance andindustry expertise are the bases for our past and future successes.

· Integrity: Our customers depend on the quality of our juice products. Our commitmentto the highest standard is the foundation of our customer's trust in Oasis Juice. Deliveringfreshly made juice to consumers depends on extensive cooperation and mutual reliancebetween supplier and retailer. We stand behind our product, our service and our word.

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Oasis Juice

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2.0 Company Summary

Oasis Juice has built a reputation on offering the most delicious, nutritious, 100% naturaljuices with no artificial flavors, colors or preservatives.

2.1 Company Ownership

Oasis Juice is owned by Tama Gardner and William Harris.

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Oasis Juice

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2.2 Company History

Oasis Juice had its humble beginnings in the kitchen of Tama Gardner. It was in herkitchen that she and William Harris first created the fruit drinks that would soon become thebasis for Oasis Juice.

Initially, the fruit drinks were sold at Richmond's weekend craft fair. They proved to be sopopular that the partnership pooled their resources and began Oasis Juice. Over the next threeyears, Oasis Juice's drinks, shakes, and smoothies have become one of the city's most visiblesigns of a healthy life style.

Oasis Juice's operations have expanded dramatically over the past three years. Currently, thecompany has a staff of ten in production, delivery, and sales.

The following table and chart illustrate the rapid sales success of Oasis Juice.

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Oasis Juice

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Table: Past Performance

Past Performance

1999 2000 2001

Sales $450,000 $520,000 $580,000

Gross Margin $120,000 $143,000 $160,000

Gross Margin % 26.67% 27.50% 27.59%

Operating Expenses $200,000 $240,000 $280,000

Collection Period (days) 0 0 76

Inventory Turnover 15.00 15.00 15.00

Balance Sheet

1999 2000 2001

Current Assets

Cash $20,000 $30,000 $40,000

Accounts Receivable $49,000 $58,000 $80,000

Inventory $10,000 $10,000 $10,000

Other Current Assets $5,000 $5,000 $5,000

Total Current Assets $84,000 $103,000 $135,000

Long-term Assets

Long-term Assets $70,000 $50,000 $50,000

Accumulated Depreciation $4,000 $8,000 $12,000

Total Long-term Assets $66,000 $42,000 $38,000

Total Assets $150,000 $145,000 $173,000

Current Liabil ities

Accounts Payable $30,000 $20,000 $20,000

Current Borrowing $0 $0 $0

Other Current Liabil ities (interest free) $0 $0 $0

Total Current Liabil ities $30,000 $20,000 $20,000

Long-term Liabil ities $60,000 $40,000 $40,000

Total Liabil ities $90,000 $60,000 $60,000

Paid-in Capital $30,000 $40,000 $80,000

Retained Earnings $30,000 $45,000 $9,000

Earnings $0 $0 $24,000

Total Capital $60,000 $85,000 $113,000

Total Capital and Liabil ities $150,000 $145,000 $173,000

Other Inputs

Payment Days 0 0 12

Sales on Credit $0 $0 $330,000

Receivables Turnover 0.00 0.00 4.13

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Oasis Juice

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2.3 Company Locations and Facilities

Oasis Juice is located on 1234 Main St.

3.0 Products

Oasis Juice offers the following products:

· Fruit and vegetable juices;· Smoothies;· Super food drinks;· Fruit and vegetable shakes.

4.0 Market Analysis Summary

The demographics of Oasis Juice customers are as follows:

· Young professional, ages 25 - 45;· Average income of $40,000+ a year;· Involved in athletic activity;· Shop in upscale health/natural food stores.

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Oasis Juice

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4.1 Market Segmentation

Oasis Juice has identified seven metro locations within the state where we can reach ourtarget customers:

· Montclair;· Riley;· Ashford;· Tracy;· Wilmington;· Langsford;· Willard.

Table: Market Analysis

Market Analysis

2002 2003 2004 2005 2006

Potential Customers Growth CAGR

Montclair 10% 60,000 66,000 72,600 79,860 87,846 10.00%

Riley 10% 75,000 82,500 90,750 99,825 109,808 10.00%

Ashford 10% 85,000 93,500 102,850 113,135 124,449 10.00%

Tracy 10% 75,000 82,500 90,750 99,825 109,808 10.00%

Wilmington 10% 62,000 68,200 75,020 82,522 90,774 10.00%

Langsford 10% 90,000 99,000 108,900 119,790 131,769 10.00%

Willard 10% 48,000 52,800 58,080 63,888 70,277 10.00%

Total 10.00% 495,000 544,500 598,950 658,845 724,731 10.00%

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5.0 Strategy and Implementation Summary

The strategy of Oasis Juice is to focus on our niche market which is health/natural food storesthat serve the young active professional.

5.1 Marketing Strategy

Oasis Juice will introduce its products at 20% off regular price during the first month. In addition,Oasis Juice will co-sponsor local athletic charitable events to raise the visibility of the brandname.

5.2 Sales Strategy

The sales strategy is to build customer loyalty in the new markets. Oasis Juice will increase itssales force to focus on the new markets.

5.2.1 Sales Forecast

The following table and charts shows the rapid ramp-up of sales during the first twelve monthsof operation.

Table: Sales Forecast

Sales Forecast

2002 2003 2004

Sales

Products $1,020,000 $1,200,000 $1,300,000

Other $0 $0 $0

Total Sales $1,020,000 $1,200,000 $1,300,000

Direct Cost of Sales 2002 2003 2004

Products $278,000 $310,000 $360,000

Other $0 $0 $0

Subtotal Direct Cost of Sales $278,000 $310,000 $360,000

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6.0 Management Summary

Co-owners, Tama Gardner and William Harris, currently manage the daily operation of Oasis Juice.Tama and William have fifteen years of experience working in natural food stores. Tama isresponsible for production and distribution. William is the Sales Manager for Oasis Juice.

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Tama Gardner was one of the founding members of the Mason Peak Natural Grocery, 4th andTyler. The grocery was established in 1992 by the non-profit NEDCO, the Neighborhood EconomicDevelopment Corporation, and a number of concerned neighbors who wished to save thehistoric Mason Peak Market from destruction. Tama started as a cashier and advanced to theposition of Store Manager in 1996. The grocery has grown into a community fixture under hermanagement.

William Harris ran the University's now defunct Natural Food Collective for three years beforethe program was defunded. The small on-campus store provided natural food products tostudent customers. Sales increased by 20% each year under his leadership. Unfortunately, thestate budget shortfall impacted the continued funding of the program. Prior to this position,William worked as Buyer for Sunburst Natural Foods for four years.

6.1 Personnel Plan

The following table shows the project personnel plan for Oasis Juice.

Table: Personnel

Personnel Plan

2002 2003 2004

Tama Gardner $36,000 $40,000 $44,000

Will iam Harris $36,000 $40,000 $44,000

Production Staff $120,000 $130,000 $140,000

Distribution Staff $120,000 $130,000 $140,000

Sales Staff $72,000 $76,000 $80,000

Total People 13 13 13

Total Payroll $384,000 $416,000 $448,000

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7.0 Financial Plan

The following is the financial plan for Oasis Juice.

7.1 Break-even Analysis

The monthly break-even point is $66,534.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $66,534

Assumptions:

Average Percent Variable Cost 27%

Estimated Monthly Fixed Cost $48,400

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7.2 Projected Profit and Loss

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

Table: Profit and Loss

Pro Forma Profit and Loss

2002 2003 2004

Sales $1,020,000 $1,200,000 $1,300,000

Direct Cost of Sales $278,000 $310,000 $360,000

Other Production Expenses $0 $0 $0

Total Cost of Sales $278,000 $310,000 $360,000

Gross Margin $742,000 $890,000 $940,000

Gross Margin % 72.75% 74.17% 72.31%

Expenses

Payroll $384,000 $416,000 $448,000

Sales and Marketing and Other Expenses $72,000 $132,000 $132,000

Depreciation $9,600 $9,600 $9,600

Leased Equipment $0 $0 $0

Util ities $12,000 $12,000 $12,000

Insurance $9,600 $9,600 $9,600

Rent $36,000 $36,000 $36,000

Payroll Taxes $57,600 $62,400 $67,200

Other $0 $0 $0

Total Operating Expenses $580,800 $677,600 $714,400

Profit Before Interest and Taxes $161,200 $212,400 $225,600

EBITDA $170,800 $222,000 $235,200

Interest Expense $9,310 $13,703 $14,203

Taxes Incurred $45,567 $59,609 $63,419

Net Profit $106,323 $139,088 $147,978

Net Profit/Sales 10.42% 11.59% 11.38%

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7.3 Projected Cash Flow

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

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Table: Cash Flow

Pro Forma Cash Flow

2002 2003 2004

Cash Received

Cash from Operations

Cash Sales $255,000 $300,000 $325,000

Cash from Receivables $697,500 $873,971 $960,539

Subtotal Cash from Operations $952,500 $1,173,971 $1,285,539

Additional Cash Received

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

New Current Borrowing $100,163 $0 $0

New Other Liabil ities (interest-free) $36,000 $36,000 $36,000

New Long-term Liabil ities $36,000 $36,000 $36,000

Sales of Other Current Assets $0 $0 $0

Sales of Long-term Assets $0 $0 $0

New Investment Received $0 $0 $0

Subtotal Cash Received $1,124,663 $1,245,971 $1,357,539

Expenditures 2002 2003 2004

Expenditures from Operations

Cash Spending $384,000 $416,000 $448,000

Bill Payments $511,954 $633,013 $695,546

Subtotal Spent on Operations $895,954 $1,049,013 $1,143,546

Additional Cash Spent

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

Principal Repayment of Current Borrowing $19,992 $19,992 $19,992

Other Liabil ities Principal Repayment $0 $0 $0

Long-term Liabil ities Principal Repayment $18,000 $18,300 $3,700

Purchase Other Current Assets $24,000 $30,000 $40,000

Purchase Long-term Assets $24,000 $30,000 $30,000

Dividends $0 $0 $0

Subtotal Cash Spent $981,946 $1,147,305 $1,237,238

Net Cash Flow $142,717 $98,666 $120,302

Cash Balance $182,717 $281,383 $401,684

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7.4 Projected Balance Sheet

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

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Table: Balance Sheet

Pro Forma Balance Sheet

2002 2003 2004

Assets

Current Assets

Cash $182,717 $281,383 $401,684

Accounts Receivable $147,500 $173,529 $187,990

Inventory $33,000 $31,688 $38,323

Other Current Assets $29,000 $59,000 $99,000

Total Current Assets $392,217 $545,600 $726,997

Long-term Assets

Long-term Assets $74,000 $104,000 $134,000

Accumulated Depreciation $21,600 $31,200 $40,800

Total Long-term Assets $52,400 $72,800 $93,200

Total Assets $444,617 $618,400 $820,197

Liabil ities and Capital 2002 2003 2004

Current Liabil ities

Accounts Payable $51,123 $52,110 $57,621

Current Borrowing $80,171 $60,179 $40,187

Other Current Liabil ities $36,000 $72,000 $108,000

Subtotal Current Liabil ities $167,294 $184,289 $205,808

Long-term Liabil ities $58,000 $75,700 $108,000

Total Liabil ities $225,294 $259,989 $313,808

Paid-in Capital $80,000 $80,000 $80,000

Retained Earnings $33,000 $139,323 $278,411

Earnings $106,323 $139,088 $147,978

Total Capital $219,323 $358,411 $506,389

Total Liabil ities and Capital $444,617 $618,400 $820,197

Net Worth $219,323 $358,411 $506,389

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on theStandard Industrial Classification (SIC) code 5149, Groceries and related products, are shown forcomparison.

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Table: Ratios

Ratio Analysis

2002 2003 2004 Industry Profi le

Sales Growth 75.86% 17.65% 8.33% 4.60%

Percent of Total Assets

Accounts Receivable 33.17% 28.06% 22.92% 33.30%

Inventory 7.42% 5.12% 4.67% 26.00%

Other Current Assets 6.52% 9.54% 12.07% 20.90%

Total Current Assets 88.21% 88.23% 88.64% 80.20%

Long-term Assets 11.79% 11.77% 11.36% 19.80%

Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabil ities 37.63% 29.80% 25.09% 45.20%

Long-term Liabil ities 13.04% 12.24% 13.17% 10.00%

Total Liabil ities 50.67% 42.04% 38.26% 55.20%

Net Worth 49.33% 57.96% 61.74% 44.80%

Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00%

Gross Margin 72.75% 74.17% 72.31% 44.10%

Selling, General & Administrative Expenses 62.32% 62.58% 60.92% 26.70%

Advertising Expenses 5.88% 10.00% 9.23% 0.70%

Profit Before Interest and Taxes 15.80% 17.70% 17.35% 0.80%

Main Ratios

Current 2.34 2.96 3.53 1.69

Quick 2.15 2.79 3.35 1.01

Total Debt to Total Assets 50.67% 42.04% 38.26% 55.20%

Pre-tax Return on Net Worth 69.25% 55.44% 41.75% 3.60%

Pre-tax Return on Assets 34.16% 32.13% 25.77% 8.00%

Additional Ratios 2002 2003 2004

Net Profit Margin 10.42% 11.59% 11.38% n.a

Return on Equity 48.48% 38.81% 29.22% n.a

Activity Ratios

Accounts Receivable Turnover 5.19 5.19 5.19 n.a

Collection Days 59 65 68 n.a

Inventory Turnover 10.91 9.58 10.28 n.a

Accounts Payable Turnover 10.62 12.17 12.17 n.a

Payment Days 28 30 29 n.a

Total Asset Turnover 2.29 1.94 1.58 n.a

Debt Ratios

Debt to Net Worth 1.03 0.73 0.62 n.a

Current Liab. to Liab. 0.74 0.71 0.66 n.a

Liquidity Ratios

Net Working Capital $224,923 $361,311 $521,189 n.a

Interest Coverage 17.31 15.50 15.88 n.a

Additional Ratios

Assets to Sales 0.44 0.52 0.63 n.a

Current Debt/Total Assets 38% 30% 25% n.a

Acid Test 1.27 1.85 2.43 n.a

Sales/Net Worth 4.65 3.35 2.57 n.a

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Dividend Payout 0.00 0.00 0.00 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

Products 0% $60,000 $60,000 $70,000 $80,000 $80,000 $90,000 $90,000 $90,000 $100,000 $100,000 $100,000 $100,000

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

Total Sales $60,000 $60,000 $70,000 $80,000 $80,000 $90,000 $90,000 $90,000 $100,000 $100,000 $100,000 $100,000

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

Products $13,000 $13,000 $17,000 $20,000 $20,000 $25,000 $25,000 $25,000 $30,000 $30,000 $30,000 $30,000

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

Subtotal Direct Cost of Sales $13,000 $13,000 $17,000 $20,000 $20,000 $25,000 $25,000 $25,000 $30,000 $30,000 $30,000 $30,000

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Appendix

Page 2

Table: Personnel

Personnel Plan

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

Tama Gardner 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000

William Harris 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000

Production Staff 0% $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000

Distribution Staff 0% $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000

Sales Staff 0% $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000

Total People 13 13 13 13 13 13 13 13 13 13 13 13

Total Payroll $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000

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Appendix

Page 3

Table: General Assumptions

General Assumptions

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

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

Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%

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

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Appendix

Page 4

Table: Profit and Loss

Pro Forma Profit and Loss

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

Sales $60,000 $60,000 $70,000 $80,000 $80,000 $90,000 $90,000 $90,000 $100,000 $100,000 $100,000 $100,000

Direct Cost of Sales $13,000 $13,000 $17,000 $20,000 $20,000 $25,000 $25,000 $25,000 $30,000 $30,000 $30,000 $30,000

Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Cost of Sales $13,000 $13,000 $17,000 $20,000 $20,000 $25,000 $25,000 $25,000 $30,000 $30,000 $30,000 $30,000

Gross Margin $47,000 $47,000 $53,000 $60,000 $60,000 $65,000 $65,000 $65,000 $70,000 $70,000 $70,000 $70,000

Gross Margin % 78.33% 78.33% 75.71% 75.00% 75.00% 72.22% 72.22% 72.22% 70.00% 70.00% 70.00% 70.00%

Expenses

Payroll $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000

Sales and Marketing and Other

Expenses

$6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000

Depreciation $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800

Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

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

Insurance $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800

Rent $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000

Payroll Taxes 15% $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800

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

Total Operating Expenses $48,400 $48,400 $48,400 $48,400 $48,400 $48,400 $48,400 $48,400 $48,400 $48,400 $48,400 $48,400

Profit Before Interest and Taxes ($1,400) ($1,400) $4,600 $11,600 $11,600 $16,600 $16,600 $16,600 $21,600 $21,600 $21,600 $21,600

EBITDA ($600) ($600) $5,400 $12,400 $12,400 $17,400 $17,400 $17,400 $22,400 $22,400 $22,400 $22,400

Interest Expense $401 $469 $538 $606 $674 $742 $810 $878 $946 $1,014 $1,082 $1,151

Taxes Incurred ($540) ($561) $1,219 $3,298 $3,278 $4,757 $4,737 $4,717 $6,196 $6,176 $6,155 $6,135

Net Profit ($1,261) ($1,309) $2,844 $7,696 $7,648 $11,101 $11,053 $11,006 $14,458 $14,410 $14,363 $14,314

Net Profit/Sales -2.10% -2.18% 4.06% 9.62% 9.56% 12.33% 12.28% 12.23% 14.46% 14.41% 14.36% 14.31%

Page 25: Oasis Juice

Appendix

Page 5

Table: Cash Flow

Pro Forma Cash Flow

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

Cash Received

Cash from Operations

Cash Sales $15,000 $15,000 $17,500 $20,000 $20,000 $22,500 $22,500 $22,500 $25,000 $25,000 $25,000 $25,000

Cash from Receivables $40,000 $41,500 $45,000 $45,250 $52,750 $60,000 $60,250 $67,500 $67,500 $67,750 $75,000 $75,000

Subtotal Cash from Operations $55,000 $56,500 $62,500 $65,250 $72,750 $82,500 $82,750 $90,000 $92,500 $92,750 $100,000 $100,000

Additional Cash Received

Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Current Borrowing $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,500

New Other Liabilities (interest-free) $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000

New Long-term Liabilities $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000

Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Cash Received $69,333 $70,833 $76,833 $79,583 $87,083 $96,833 $97,083 $104,333 $106,833 $107,083 $114,333 $114,500

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

Expenditures from Operations

Cash Spending $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000

Bill Payments $21,092 $32,619 $28,850 $38,891 $42,695 $39,953 $51,417 $46,148 $46,596 $58,060 $52,791 $52,839

Subtotal Spent on Operations $53,092 $64,619 $60,850 $70,891 $74,695 $71,953 $83,417 $78,148 $78,596 $90,060 $84,791 $84,839

Additional Cash Spent

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

Principal Repayment of Current Borrowing $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666

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

Long-term Liabilities Principal Repayment $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500

Purchase Other Current Assets $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

Purchase Long-term Assets $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Cash Spent $60,258 $71,785 $68,016 $78,057 $81,861 $79,119 $90,583 $85,314 $85,762 $97,226 $91,957 $92,005

Net Cash Flow $9,075 ($952) $8,817 $1,526 $5,222 $17,714 $6,500 $19,019 $21,071 $9,857 $22,376 $22,495

Cash Balance $49,075 $48,123 $56,940 $58,465 $63,687 $81,401 $87,900 $106,919 $127,990 $137,847 $160,222 $182,717

Page 26: Oasis Juice

Appendix

Page 6

Table: Balance Sheet

Pro Forma Balance Sheet

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

Assets Starting Balances

Current Assets

Cash $40,000 $49,075 $48,123 $56,940 $58,465 $63,687 $81,401 $87,900 $106,919 $127,990 $137,847 $160,222 $182,717

Accounts Receivable $80,000 $85,000 $88,500 $96,000 $110,750 $118,000 $125,500 $132,750 $132,750 $140,250 $147,500 $147,500 $147,500

Inventory $10,000 $14,300 $14,300 $18,700 $22,000 $22,000 $27,500 $27,500 $27,500 $33,000 $33,000 $33,000 $33,000

Other Current Assets $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 $19,000 $21,000 $23,000 $25,000 $27,000 $29,000

Total Current Assets $135,000 $155,375 $159,923 $182,640 $204,215 $218,687 $251,401 $267,150 $288,169 $324,240 $343,347 $367,722 $392,217

Long-term Assets

Long-term Assets $50,000 $52,000 $54,000 $56,000 $58,000 $60,000 $62,000 $64,000 $66,000 $68,000 $70,000 $72,000 $74,000

Accumulated Depreciation $12,000 $12,800 $13,600 $14,400 $15,200 $16,000 $16,800 $17,600 $18,400 $19,200 $20,000 $20,800 $21,600

Total Long-term Assets $38,000 $39,200 $40,400 $41,600 $42,800 $44,000 $45,200 $46,400 $47,600 $48,800 $50,000 $51,200 $52,400

Total Assets $173,000 $194,575 $200,323 $224,240 $247,015 $262,687 $296,601 $313,550 $335,769 $373,040 $393,347 $418,922 $444,617

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

Current Liabilities

Accounts Payable $20,000 $31,669 $27,558 $37,464 $41,377 $38,233 $49,879 $44,609 $44,655 $56,301 $51,030 $51,076 $51,123

Current Borrowing $0 $6,667 $13,334 $20,001 $26,668 $33,335 $40,002 $46,669 $53,336 $60,003 $66,670 $73,337 $80,171

Other Current Liabilities $0 $3,000 $6,000 $9,000 $12,000 $15,000 $18,000 $21,000 $24,000 $27,000 $30,000 $33,000 $36,000

Subtotal Current Liabilities $20,000 $41,336 $46,892 $66,465 $80,045 $86,568 $107,881 $112,278 $121,991 $143,304 $147,700 $157,413 $167,294

Long-term Liabilities $40,000 $41,500 $43,000 $44,500 $46,000 $47,500 $49,000 $50,500 $52,000 $53,500 $55,000 $56,500 $58,000

Total Liabilities $60,000 $82,836 $89,892 $110,965 $126,045 $134,068 $156,881 $162,778 $173,991 $196,804 $202,700 $213,913 $225,294

Paid-in Capital $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000

Retained Earnings $9,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000

Earnings $24,000 ($1,261) ($2,570) $274 $7,970 $15,619 $26,720 $37,773 $48,778 $63,236 $77,646 $92,009 $106,323

Total Capital $113,000 $111,739 $110,430 $113,274 $120,970 $128,619 $139,720 $150,773 $161,778 $176,236 $190,646 $205,009 $219,323

Total Liabilities and Capital $173,000 $194,575 $200,323 $224,240 $247,015 $262,687 $296,601 $313,550 $335,769 $373,040 $393,347 $418,922 $444,617

Net Worth $113,000 $111,739 $110,430 $113,274 $120,970 $128,619 $139,720 $150,773 $161,778 $176,236 $190,646 $205,009 $219,323