sample 1.docx

Executive Summary

Crest Systems is a new Value Added Reseller (VAR). The company is focused on marketing speciality inventory software products to over 1,200 VARs that sell in vertical markets. Each market is distinct and serves a particular speciality industry. In addition to the software, Crest will sell the inventory data collection hardware that will operate the software. Traditionally, VARs who sell to these vertical markets focus solely on the industry's unique product line or service. Though their customers have inventory controls needs, these VARs have not had a product they could offer until now.

Critical to the product's success is the ability to sell the customer an inventory management solution that costs less than $5,000. Crest Systems has signed a strategic alliance agreement with Promerit Engineering to sell its software products through these VARs. The first product is Promerit Inventory Basic and will be released in May. Crest Systems projects sales of 20,000 units in 36 months. The product will sell for $850.

The VAR will receive $400 from the sale. Crest Systems will receive $250 on the sale of each unit. Crest Systems will also sell hardware that will use the software. Crest Systems will sell portable data collection units from Symbol and PSC. The cost of the hardware will be between $2,000 to $3,200 per unit. Crest Systems receives between $600 - $900 on each unit. The total package of software and hardware will be less than $5,000.

Though the company is focused on the vertical markets, VARs who sell warehouse are also interested in a low-end data collection solution. Crest Systems will assemble 1,000 plus warehouse management VARs to sell Promerit Inventory Basic.

Crest Systems will also develop specialty software modules that can be integrated with Promerit Inventory Basic software. These modules will sell for $800 to $1,000. Crest Systems plans to solidify a strong business relationship with its VARs customers that will lead to providing additional software and hardware products.

Richard Torres, owner of Crest System, has over twelve years of experience selling to vertical markets. Last year, he was Cycon Systems top salesperson with over $3 million in sales.

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1.1 Objectives

The objectives of Crest Systems are to:

Sell 8,000 units during the first year. Establish strong relationships with the VARs critical to sales. Build the software module business by 15% each year. Maintain effective communication with Promerit Systems in order to improve product

quality and customer satisfaction.

1.2 Keys to Success

The keys to success in Crest Systems are:

1. Offering inexpensive inventory control solutions that cost less than $5,000 to implement. 2. Reliable and timely response to VARs' questions and requests. 3. A reliable administration that is ready to serve VARs, prepare accurate billing, follow-up

on orders and other documentation, and maintain a close watch on expenses and collection of accounts receivable.

4. Company Summary5. Crest Systems is a Value Added Reseller (VAR) that is focused on selling low-end

inventory software and hardware products. The company markets Promerit Engineering software products to over 1,200 VARs that sell products in vertical markets. In addition,

Crest Systems will market the software product to warehouse systems VARs who are looking for a low-end inventory software product.

6. 2.1 Company Ownership7. Richard Torres is the owner of Crest Systems. The company will be set up as a C

Corporation. It is expected that this form of incorporation will allow room for growth and be an effective vehicle for acquiring additional capital in five to seven years.

8. 2.2 Start-up Summary9. The start-up cost of Crest Systems will consist primarily establishing an account

receivable system and communication system for salespeople. Richard Torres will invest $50,000. He will also secure a $100,000 loan.

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Start-upRequirementsStart-up ExpensesLegal $1,000 Stationery etc. $300 Brochures $2,000 Office Equipment $6,000 Insurance $3,000 Rent $2,000 Phone System $2,000 Total Start-up Expenses $16,300 Start-up Assets

Cash Required $133,700 Other Current Assets $0 Long-term Assets $0 Total Assets $133,700 Total Requirements $150,000

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Start-up FundingStart-up Expenses to Fund $16,300 Start-up Assets to Fund $133,700 Total Funding Required $150,000 Assets Non-cash Assets from Start-up $0 Cash Requirements from Start-up $133,700 Additional Cash Raised $0 Cash Balance on Starting Date $133,700 Total Assets $133,700 Liabilities and CapitalLiabilitiesCurrent Borrowing $0 Long-term Liabilities $100,000 Accounts Payable (Outstanding Bills) $0 Other Current Liabilities (interest-free)

$0

Total Liabilities $100,000 CapitalPlanned InvestmentInvestor 1 $50,000 Other $0 Additional Investment Requirement $0 Total Planned Investment $50,000 Loss at Start-up (Start-up Expenses) ($16,300)Total Capital $33,700 Total Capital and Liabilities $133,700 Total Funding $150,000

Products

Crest Systems' products are as follows:

Promerit Inventory Basic. Software modules that integrate Promerit Inventory Basic. Data Collection Hardware.

We have a team of experienced and proven salespeople in marketing a company's products to VARs that serve vertical markets.

Market Analysis Summary

There are thousands of small businesses that are dissatisfied with the choice of inventory control products that are available to them. Most of these businesses exist below the water line for software companies. Selling to a market that can only spend $5,000 on an inventory control solution is considered too small a return for the sales activity.

If a salesperson can spend a day winning a $50,000 contract rather than a $5,000 contact, she will disregard the smaller opportunity. Many sales organizations have overlooked this opportunity. If a cost effective method can be established to attack this market, the sales can be enormous.

It is Crest Systems plan to sell to the VARs that serve the vertical markets as well as the VARs that sell warehouse products and services. Crest Systems will sell the hardware directly to customers when the software is purchased by the vertical VARs' customer. The company will use this opportunity to build purchasing relationships with businesses with growing inventories.

4.1 Market Segmentation

Crest Systems will focus on two customer groups:

Warehouse Products and Services VARs: These VARs offer warehouse management hardware and software. Though their primary focus is on larger contracts, an inexpensive product focused on the low end of the market will be attractive if the payoff is large enough. The VARs retain $500 on each product sold. There is no other software product that is focused on our target customers that rewards better for the sale.

Vertical Market VARs: These VARs traditional don't sell inventory management products to their customers. Inventory control products are not their focus, rather it is whatever item or product particular to that industry that is used in manufacturing or assembly of their final product. Yet they have thousands of customers. If the payoff is large enough, their access to the market would lead to enormous sales. Like the warehouse product VARs, the vertical market VARs would retain $500 on each product sold.

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Market AnalysisYear 1 Year 2 Year 3 Year 4 Year 5

Potential Customers Growth CAGRWarehouse Products VARs

15% 1,400 1,610 1,852 2,130 2,450 15.02%

Vertical Market VARs

15% 1,100 1,265 1,455 1,673 1,924 15.00%

Total 15.01% 2,500 2,875 3,307 3,803 4,374 15.01%

Strategy and Implementation Summary

Crest Systems will aggressively market Promerit Inventory Basic to VARs. It is our belief that the payoff to the VARs on each sale will make the product attractive. We will train their salespeople so that they will be successful in demonstrating the products to customers. This will be especially important with vertical market VARs that will not normally offer software products to their customers.

5.1 Competitive Edge

Richard Torres is the competitive edge of Crest Systems. Richard has worked for Cycon Systems for the past ten years. He served as the company's manager of sales to vertical market VARs.

During the past five years Richard was responsible for over $15 million dollars worth of sales to vertical market VARs. His strength is his customer relation skills and he has been successful in expanding the number of vertical market VARs that bought Cycon System products.

Another competitive edge for Crest Systems is the ability to create specialized software modules for customers that will customize the software. he company believes that one fourth of all software customers will request a customized module to be added to the software after purchase.

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5.2 Sales Strategy

Crest Systems' sales strategy is to take the first 60 days of operation to train VARs and put the resources in place to facilitate sales. We anticipate that sales will begin during our third month of operation.

5.2.1 Sales Forecast

The following is the sales forecast for the next three years.

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Sales ForecastYear 1 Year 2 Year 3

SalesPromerit Inventory Basic $1,450,000 $1,700,000 $2,000,000 Hardware $909,000 $1,200,000 $1,500,000 Software Modules $129,000 $180,000 $220,000 Other $0 $0 $0 Total Sales $2,488,000 $3,080,000 $3,720,000 Direct Cost of Sales Year 1 Year 2 Year 3Promerit Inventory Basic $1,087,000 $1,200,000 $1,400,000 Hardware $580,000 $770,000 $930,000 Software Modules $0 $0 $0 Other $0 $0 $0 Subtotal Direct Cost of Sales

$1,667,000 $1,970,000 $2,330,000

Management Summary

Richard Torres will manage the day to day operations of Crest Systems.

6.1 Personnel Plan

The personnel plan for Crest Systems is as follows:

Manager; Accounts Manager; Sales Staff (3); Software Engineer (1).

Crest Systems anticipates that another software engineer will be hired in September of this year.

Personnel PlanYear 1 Year 2 Year 3

Manager $60,000 $70,000 $80,000 Accounting Manager $42,000 $44,000 $46,000 Sales Staff $180,000 $200,000 $230,000 Software Engineers $85,000 $100,000 $104,000 Other $0 $0 $0 Total People 0 0 0 Total Payroll $367,000 $414,000 $460,000

Financial Plan

The following is the financial plan for Crest Systems.

7.1 Break-even Analysis

The monthly break-even point is shown below.

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Break-even AnalysisMonthly Revenue Break-even $143,373 Assumptions:Average Percent Variable Cost 67% Estimated Monthly Fixed Cost $47,311

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7.2 Projected Profit and Loss

The following table and charts will highlight projected profit and loss for the next three years.

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Pro Forma Profit and LossYear 1 Year 2 Year 3

Sales $2,488,000 $3,080,000 $3,720,000 Direct Cost of Sales $1,667,000 $1,970,000 $2,330,000 Other Production Expenses $0 $0 $0 Total Cost of Sales $1,667,000 $1,970,000 $2,330,000 Gross Margin $821,000 $1,110,000 $1,390,000 Gross Margin % 33.00% 36.04% 37.37% ExpensesPayroll $367,000 $414,000 $460,000 Sales and Marketing and Other Expenses $120,000 $160,000 $200,000 Depreciation $0 $0 $0 Leased Equipment $0 $0 $0 Utilities $1,680 $1,680 $1,680 Insurance $0 $0 $0 Rent $24,000 $24,000 $24,000 Payroll Taxes $55,050 $62,100 $69,000 Other $0 $0 $0 Total Operating Expenses $567,730 $661,780 $754,680 Profit Before Interest and Taxes $253,270 $448,220 $635,320 EBITDA $253,270 $448,220 $635,320 Interest Expense $8,903 $6,962 $4,936 Taxes Incurred $73,310 $132,378 $189,115 Net Profit $171,057 $308,881 $441,269 Net Profit/Sales 6.88% 10.03% 11.86%

7.3 Projected Cash Flow

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

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Pro Forma Cash FlowYear 1 Year 2 Year 3

Cash ReceivedCash from OperationsCash Sales $622,000 $770,000 $930,000 Cash from Receivables $1,330,125 $2,182,493 $2,652,154 Subtotal Cash from Operations $1,952,125 $2,952,493 $3,582,154 Additional Cash ReceivedSales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $66,000 $0 $0 Subtotal Cash Received $2,018,125 $2,952,493 $3,582,154 Expenditures Year 1 Year 2 Year 3Expenditures from OperationsCash Spending $367,000 $414,000 $460,000

Bill Payments $1,632,460 $2,480,866 $2,780,790 Subtotal Spent on Operations $1,999,460 $2,894,866 $3,240,790 Additional Cash SpentSales Tax, VAT, HST/GST Paid Out $0 $0 $0 Principal Repayment of Current Borrowing $0 $0 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $20,256 $20,256 $20,256 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 Subtotal Cash Spent $2,019,716 $2,915,122 $3,261,046 Net Cash Flow ($1,591) $37,370 $321,108 Cash Balance $132,109 $169,480 $490,587

7.4 Projected Balance Sheet

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

Pro Forma Balance SheetYear 1 Year 2 Year 3

AssetsCurrent AssetsCash $132,109 $169,480 $490,587 Accounts Receivable $535,875 $663,382 $801,228 Other Current Assets $0 $0 $0 Total Current Assets $667,984 $832,862 $1,291,815 Long-term AssetsLong-term Assets $0 $0 $0 Accumulated Depreciation $0 $0 $0 Total Long-term Assets $0 $0 $0 Total Assets $667,984 $832,862 $1,291,815 Liabilities and Capital Year 1 Year 2 Year 3Current LiabilitiesAccounts Payable $317,483 $193,736 $231,677 Current Borrowing $0 $0 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $317,483 $193,736 $231,677 Long-term Liabilities $79,744 $59,488 $39,232 Total Liabilities $397,227 $253,224 $270,909 Paid-in Capital $116,000 $116,000 $116,000 Retained Earnings ($16,300) $154,757 $463,638

Earnings $171,057 $308,881 $441,269 Total Capital $270,757 $579,638 $1,020,907 Total Liabilities and Capital $667,984 $832,862 $1,291,815 Net Worth $270,757 $579,638 $1,020,907

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5045, Computers, peripherals and software, are shown for comparison.

Ratio AnalysisYear 1 Year 2 Year 3 Industry Profile

Sales Growth 0.00% 23.79% 20.78% 5.80% Percent of Total AssetsAccounts Receivable 80.22% 79.65% 62.02% 29.30% Other Current Assets 0.00% 0.00% 0.00% 21.50% Total Current Assets 100.00% 100.00% 100.00% 86.80% Long-term Assets 0.00% 0.00% 0.00% 13.20% Total Assets 100.00% 100.00% 100.00% 100.00% Current Liabilities 47.53% 23.26% 17.93% 43.70% Long-term Liabilities 11.94% 7.14% 3.04% 11.20% Total Liabilities 59.47% 30.40% 20.97% 54.90% Net Worth 40.53% 69.60% 79.03% 45.10% Percent of SalesSales 100.00% 100.00% 100.00% 100.00% Gross Margin 33.00% 36.04% 37.37% 24.80% Selling, General & Administrative Expenses

26.12% 26.01% 25.50% 15.60%

Advertising Expenses 2.41% 2.60% 2.69% 0.50% Profit Before Interest and Taxes 10.18% 14.55% 17.08% 2.70% Main RatiosCurrent 2.10 4.30 5.58 1.93 Quick 2.10 4.30 5.58 0.92 Total Debt to Total Assets 59.47% 30.40% 20.97% 54.90% Pre-tax Return on Net Worth 90.25% 76.13% 61.75% 5.50% Pre-tax Return on Assets 36.58% 52.98% 48.80% 12.20% Additional Ratios Year 1 Year 2 Year 3Net Profit Margin 6.88% 10.03% 11.86% n.aReturn on Equity 63.18% 53.29% 43.22% n.aActivity RatiosAccounts Receivable Turnover 3.48 3.48 3.48 n.a

Collection Days 55 95 96 n.aAccounts Payable Turnover 6.14 12.17 12.17 n.aPayment Days 27 40 28 n.aTotal Asset Turnover 3.72 3.70 2.88 n.aDebt RatiosDebt to Net Worth 1.47 0.44 0.27 n.aCurrent Liab. to Liab. 0.80 0.77 0.86 n.aLiquidity RatiosNet Working Capital $350,501 $639,126 $1,060,139 n.aInterest Coverage 28.45 64.38 128.71 n.aAdditional RatiosAssets to Sales 0.27 0.27 0.35 n.aCurrent Debt/Total Assets 48% 23% 18% n.aAcid Test 0.42 0.87 2.12 n.aSales/Net Worth 9.19 5.31 3.64 n.aDividend Payout 0.00 0.00 0.00 n.a

Appendix

Sales ForecastMonth 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

SalesPromerit Inventory Basic

0%

$0 $0 $70,000

$80,000

$120,000

$120,000

$160,000

$160,000

$160,000

$140,000

$200,000

$240,000

Hardware

0%

$0 $0 $54,000

$60,000

$75,000

$75,000

$105,000

$105,000

$105,000

$80,000

$100,000

$150,000

Software Modules

0%

$0 $0 $0 $11,000

$13,000

$15,000

$15,000

$15,000

$15,000

$10,000

$15,000

$20,000

Other0%

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Sales

$0 $0 $124,000

$151,000

$208,000

$210,000

$280,000

$280,000

$280,000

$230,000

$315,000

$410,000

Direct Cost of Sales

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Promer $0 $0 $57,00 $60,00 $90,00 $90,00 $120,0 $120,0 $120,0 $90,00 $150,0 $190,0

it Inventory Basic

0 0 0 0 00 00 00 0 00 00

Hardware

$0 $0 $36,000

$40,000

$50,000

$50,000

$63,000

$63,000

$63,000

$50,000

$65,000

$100,000

Software Modules

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Direct Cost of Sales

$0 $0 $93,000

$100,000

$140,000

$140,000

$183,000

$183,000

$183,000

$140,000

$215,000

$290,000




Personnel PlanMonth

1Month

2Month

3Month

4Month

5Month

6Month

7Month

8Month

9Month

10Month

11Month

12

Manager0%

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

Accounting Manager

0%

$3,500

$3,500

$3,500

$3,500

$3,500

$3,500

$3,500

$3,500

$3,500

$3,500

$3,500

$3,500

Sales Staff

0%

$15,000

$15,000

$15,000

$15,000

$15,000

$15,000

$15,000

$15,000

$15,000

$15,000

$15,000

$15,000

Software Engineers

0%

$5,000

$5,000

$5,000

$5,000

$5,000

$0 $10,000

$10,000

$10,000

$10,000

$10,000

$10,000

Other0%

$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

Total Payroll

$28,500

$28,500

$28,500

$28,500

$28,500

$23,500

$33,500

$33,500

$33,500

$33,500

$33,500

$33,500

General Assumptions

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

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

Pro Forma Profit and LossMonth

1Month

2Month

3Month

4Month

5Month

6Month

7Month

8Month

9Month

10Month

11Month

12

Sales $0 $0 $124,000

$151,000

$208,000

$210,000

$280,000

$280,000

$280,000

$230,000

$315,000

$410,000

Direct Cost of Sales

$0 $0 $93,000

$100,000

$140,000

$140,000

$183,000

$183,000

$183,000

$140,000

$215,000

$290,000

Other Production Expenses

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Cost of Sales

$0 $0 $93,000

$100,000

$140,000

$140,000

$183,000

$183,000

$183,000

$140,000

$215,000

$290,000

Gross Margin

$0 $0 $31,000

$51,000

$68,000

$70,000

$97,000

$97,000

$97,000

$90,000

$100,000

$120,000

Gross Margin %

0.00% 0.00% 25.00%

33.77%

32.69%

33.33%

34.64%

34.64%

34.64%

39.13%

31.75%

29.27%

Expenses

Payroll$28,500

$28,500

$28,500

$28,500

$28,500

$23,500

$33,500

$33,500

$33,500

$33,500

$33,500

$33,500

Sales and Marketing and

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

Other ExpensesDepreciation

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Leased Equipment

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Utilities $140 $140 $140 $140 $140 $140 $140 $140 $140 $140 $140 $140 Insurance

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Rent $2,000 $2,000 $2,000 $2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

Payroll Taxes

15%

$4,275 $4,275 $4,275 $4,275

$4,275

$3,525

$5,025

$5,025

$5,025

$5,025

$5,025

$5,025

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Operating Expenses

$44,915

$44,915

$44,915

$44,915

$44,915

$39,165

$50,665

$50,665

$50,665

$50,665

$50,665

$50,665

Profit Before Interest and Taxes

($44,915)

($44,915)

($13,915)

$6,085

$23,085

$30,835

$46,335

$46,335

$46,335

$39,335

$49,335

$69,335

EBITDA($44,915)

($44,915)

($13,915)

$6,085

$23,085

$30,835

$46,335

$46,335

$46,335

$39,335

$49,335

$69,335

Interest Expense

$819 $805 $791 $777 $763 $749 $735 $721 $707 $693 $679 $665

Taxes Incurred

($13,720)

($13,716)

($4,412)

$1,592

$6,697

$9,026

$13,680

$13,684

$13,688

$11,593

$14,597

$20,601

Net Profit

($32,014)

($32,004)

($10,294)

$3,716

$15,625

$21,060

$31,920

$31,930

$31,940

$27,050

$34,059

$48,069

Net Profit/Sales

0.00% 0.00% -8.30%

2.46% 7.51% 10.03%

11.40%

11.40%

11.41%

11.76%

10.81%

11.72%

Pro Forma Cash FlowMonth

1Month

2Mont

h 3Month

4Mont

h 5Month

6Mont

h 7Month

8Mont

h 9Month 10

Month 11

Month 12

Cash ReceivedCash

from OperationsCash Sales

$0 $0 $31,000

$37,750

$52,000

$52,500

$70,000

$70,000

$70,000

$57,500

$78,750

$102,500

Cash from Receivables

$0 $0 $0 $3,100 $93,675

$114,675

$156,050

$159,250

$210,000

$210,000

$208,750

$174,625

Subtotal Cash from Operations

$0 $0 $31,000

$40,850

$145,675

$167,175

$226,050

$229,250

$280,000

$267,500

$287,500

$277,125

Additional Cash ReceivedSales 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

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

AssetsNew Investment Received

$0 $0 $0 $66,000

$0 $0 $0 $0 $0 $0 $0 $0

Subtotal Cash Received

$0 $0 $31,000

$106,850

$145,675

$167,175

$226,050

$229,250

$280,000

$267,500

$287,500

$277,125

Expenditures

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Expenditures from OperationsCash Spending

$28,500

$28,500

$28,500

$28,500

$28,500

$23,500

$33,500

$33,500

$33,500

$33,500

$33,500

$33,500

Bill Payments

$117 $3,514 $6,914

$106,227

$120,287

$163,927

$167,078

$214,580

$214,570

$213,057

$172,050

$250,140

Subtotal Spent on Operations

$28,617

$32,014

$35,414

$134,727

$148,787

$187,427

$200,578

$248,080

$248,070

$246,557

$205,550

$283,640

Additional Cash SpentSales 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 Repaym

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

entLong-term Liabilities Principal Repayment

$1,688 $1,688 $1,688

$1,688 $1,688

$1,688

$1,688

$1,688 $1,688

$1,688

$1,688

$1,688

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

$30,305

$33,702

$37,102

$136,415

$150,475

$189,115

$202,266

$249,768

$249,758

$248,245

$207,238

$285,328

Net Cash Flow

($30,305)

($33,702)

($6,102)

($29,565)

($4,800)

($21,940)

$23,784

($20,518)

$30,242

$19,255

$80,262

($8,203)

Cash Balance

$103,395

$69,693

$63,591

$34,026

$29,226

$7,286

$31,070

$10,553

$40,795

$60,050

$140,312

$132,109




Pro Forma Balance SheetMont

h 1Mont

h 2Mont

h 3Mont

h 4Mont

h 5Mont

h 6Mont

h 7Mont

h 8Mont

h 9Month 10

Month 11

Month 12

Assets

Starting Balances

Current Assets

Cash$133,700

$103,395

$69,693

$63,591

$34,026

$29,226

$7,286

$31,070

$10,553

$40,795

$60,050

$140,312

$132,109

Accounts Receivable

$0 $0 $0 $93,000

$203,150

$265,475

$308,300

$362,250

$413,000

$413,000

$375,500

$403,000

$535,875

Other Current Assets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Current Assets

$133,700

$103,395

$69,693

$156,591

$237,176

$294,701

$315,586

$393,320

$423,553

$453,795

$435,550

$543,312

$667,984

Long-term AssetsLong-term Assets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Accumulated Depreciation

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Long-term Assets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Assets

$133,700

$103,395

$69,693

$156,591

$237,176

$294,701

$315,586

$393,320

$423,553

$453,795

$435,550

$543,312

$667,984

Liabilities and Capital

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Current LiabilitiesAccounts Payable

$0 $3,397

$3,387

$102,268

$114,825

$158,412

$159,925

$207,427

$207,418

$207,408

$163,802

$239,193

$317,483

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 Liabiliti

$0 $3,397

$3,387

$102,268

$114,825

$158,412

$159,925

$207,427

$207,418

$207,408

$163,802

$239,193

$317,483

esLong-term Liabilities

$100,000

$98,312

$96,624

$94,936

$93,248

$91,560

$89,872

$88,184

$86,496

$84,808

$83,120

$81,432

$79,744

Total Liabilities

$100,000

$101,709

$100,011

$197,204

$208,073

$249,972

$249,797

$295,611

$293,914

$292,216

$246,922

$320,625

$397,227

Paid-in Capital

$50,000

$50,000

$50,000

$50,000

$116,000

$116,000

$116,000

$116,000

$116,000

$116,000

$116,000

$116,000

$116,000

Retained Earnings

($16,300)

($16,300)

($16,300)

($16,300)

($16,300)

($16,300)

($16,300)

($16,300)

($16,300)

($16,300)

($16,300)

($16,300)

($16,300)

Earnings $0 ($32,014)

($64,018)

($74,312)

($70,597)

($54,971)

($33,911)

($1,991)

$29,939

$61,879

$88,928

$122,988

$171,057

Total Capital

$33,700

$1,686

($30,318)

($40,612)

$29,103

$44,729

$65,789

$97,709

$129,639

$161,579

$188,628

$222,688

$270,757

Total Liabilities and Capital

$133,700

$103,395

$69,693

$156,591

$237,176

$294,701

$315,586

$393,320

$423,553

$453,795

$435,550

$543,312

$667,984

Net Worth

$33,700

$1,686

($30,318)

($40,612)

$29,103

$44,729

$65,789

$97,709

Documents

sample 1.docx