Sweet Fantasy – Delicatessen and Bakery

I. Executive Summary
Customers can expect to find New York City deli bakery goods and sandwiches at Sweet Fantasy. It
functions as a restaurant, bakery, and coffeehouse all in one. Sweet Fantasy, which will open in the
centre of Richmond's expanding Willow Creek neighbourhood, will serve a community of 25,000
people, including students at State University and families drawn to the area's new house building.

Sweet Fantasy will benefit from the foot traffic in the Willow Creek retail district, which hosts the
Willow Creek Arts and Craft Fair as well as numerous art and craft stores.
Highlights

$500,000

$450,000

$400,000

$350,000
Sales
$300,000
Gross Margin
$250,000
Net Profit
$200,000

$150,000

$100,000

$50,000

$0
Year 1 Year 2 Year 3

1.1 Mission

Sweet Fantasy is dedicated to bringing a taste of New York to Richmond's Willow Creek
neighbourhood. We will provide the greatest sandwiches and bakery items at reasonable pricing to our
consumers.

II. Company Summary

Sweet Fantasy is in the heart of Richmond's Willow Creek neighbourhood. Sweet Fantasy is being
opened by Aaron Domingo in response to the scarcity of dining options in the Willow Creek
neighbourhood. The bakery will provide deli bakery goods and sandwiches from New York City. We'll
concentrate on attracting customers who frequent art and craft stores and are searching for a warm and
inviting location to unwind and eat excellent food.

2.1 Company Ownership

Sweet Fantasy is owned by Aaron Domingo.

Page | 1
2.2 Start-up Summary

Sweet Fantasy's startup costs will mostly consist of cooking equipment and dining set-up. Aaron
Domingo will invest $80,000. He'll also get a $50,000 SBA loan.
Start-up

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

$0
Expenses Assets Investment Loans

START-UP

REQUIREMENTS

START-UP EXPENSES
LEGAL $1,000
INSURANCE $1,000
RENT $1,800
DINING SET-UP $8,000
TOTAL START-UP EXPENSES $11,800

START-UP ASSETS
CASH REQUIRED $63,200
START-UP INVENTORY $5,000
OTHER CURRENT ASSETS $0
LONG-TERM ASSETS $50,000
TOTAL ASSETS $118,200

TOTAL REQUIREMENTS $130,000

Start-up Funding
Start-up Expenses to Fund $11,800
Start-up Assets to Fund $118,200
Total Funding Required $130,000

Assets
Non-cash Assets from Start-up $55,000
Cash Requirements from Start-up $63,200
Additional Cash Raised $0
Page | 2
 Cash Balance on Starting Date $63,200
Total Assets $118,200

Liabilities and Capital

Liabilities
Current Borrowing $0
Long-term Liabilities $50,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $50,000

Capital

Planned Investment
Aaron Domingo $80,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $80,000

Loss at Start-up (Start-up Expenses) ($11,800)

Total Capital $68,200

Total Capital and Liabilities $118,200

Total Funding $130,000

III. Products
Customers can expect to find New York City deli bakery goods and sandwiches at Sweet Fantasy. On
the menu will be:
 Pastry/desserts;
 Sandwiches;
 Soups;
 Quiches;
 Espresso;
 Drinks.

IV. Market Analysis Summary

The Willow Creek neighbourhood of Richmond has seen remarkable growth in the last ten years. Sweet
Fantasy has an ideal support base in the rising student community as well as the customers of the area's
arts and craft stores.

Page | 3
Three modest restaurants and two coffee shops currently serve the region. Sweet Fantasy's menu items
are not available at any of these restaurants or businesses. Furthermore, the bakery is located on Steward
Street, which is the main street in the region. Steward Street is bustling with arts and crafts shoppers as
well as State University students.

4.1 Market Segmentation

Sweet Fantasy will concentrate on two key customer groups:

 Arts and Craft Shoppers: The Willow Creek Craft Fair is operated by a community of local artists and crafters. This
generates a joyful atmosphere in Willow Creek's major commercial/retail sector, attracting weekend consumers.
Sweet Fantasy is one block south of Steward Street, next to the Craft Fair. Sweet Fantasy is directly in the path of
traffic from the fair to the Steward Street stores.

 Students: Sweet Fantasy will be located half a block from the university. In the Willow Creek neighbourhood, a
large proportion of students spend money on food and drink. Last year, it was anticipated that students in the Willow
Creek area spent $20 million on goods, services, and leisure. The bakery will be a convenient stop on the way to or
from lessons for a bite to eat or a sweet treat.
Market Analysis (Pie)

Arts and Craft Shoppers

Students

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Arts and Craft 15% 9,000 10,350 11,903 13,688 15,741 15.00%
Shoppers
Students 10% 12,000 13,200 14,520 15,972 17,569 10.00%
Total 12.22% 21,000 23,550 26,423 29,660 33,310 12.22%

Page | 4
V. Strategy and Implementation Summary
The store's opening will be promoted by Sweet Fantasy. Opening weekend will feature live music and
cuisine in front of the bakery. The Willow Creek Craft Fair will bring a lot of people to our grand
opening.

We'll place ads in both the university's daily student newspaper and a neighbourhood advertising flyer.
We will offer 2 for 1 specials on pastry and sandwiches advertised in the advertisements for the market
opening. This discount will be extended for the first month of operation.

5.1 Competitive Edge

The Bronx Bakery's competitive edge is:

 Location: Sweet Fantasy is in the heart of Richmond's Willow Creek neighbourhood. The
Willow Creek shopping district has a lot of foot traffic. The weekend arts and craft fair will
attract a lot of people. Stewart Street is also an important thoroughfare for students travelling to
and from State University.

 New York Focus of Menu: Sweet Fantasy's menu complements the area's arts and craft focus
perfectly. We give customers the opportunity to leave Richmond and enter a New York City deli,
replete with sights and sounds. Lunch becomes an event, and even purchasing a bakery item to
go makes people happy.

5.2 Sales Strategy

Sweet Fantasy's sales technique is straightforward. Customer satisfaction is achieved by offering a

superior product at an accessible price in an environment that is as enjoyable as the cuisine.

Page | 5
5.2.1 Sales Forecast

Our sales forecast places a high priority on cost control. For menu items, we'll adhere to the following
gross margin percentage:

 Coffee drinks: 14%

 Lunch items: 30%
 Bakery goods: 26%

The following is Sweet Fantasy's sales forecast for three years.

Sales Forecast
Year 1 Year 2 Year 3
Sales
Bakery $127,000 $145,000 $165,000
Sandwiches $247,000 $272,000 $302,000
Drinks $48,500 $52,000 $55,000
Total Sales $422,500 $469,000 $522,000

Direct Cost of Sales Year 1 Year 2 Year 3

Bakery $32,400 $38,000 $42,000
Sandwiches $82,900 $86,000 $96,000
Drinks $6,060 $6,400 $7,000
Subtotal Direct Cost of Sales $121,360 $130,400 $145,000

Sales Monthly
$50,000

$45,000

$40,000

$35,000
Bakery
$30,000

$25,000 Sandwiches

$20,000 Drinks

$15,000

$10,000

$5,000

$0
Month 1 Month 3 Month 5 Month 7 Month 9 Month 11
Month 2 Month 4 Month 6 Month 8 Month 10 Month 12

Page | 6
 Sales by Year

$500,000

$400,000
Bakery

$300,000 Sandwiches

Drinks
$200,000

$100,000

$0
Year 1 Year 2 Year 3

VI. Management Summary

Aaron will oversee Sweet Fantasy's everyday operations. He has ten years of restaurant experience
under his belt. Aaron was the manager of two deli/bakeries in New York City before migrating to
Richmond. Aaron worked for Maitre Choux for six years as the Bakery Manager, overseeing a staff of
five. During that time, the company grew at a rate of 15% every year.

Aaron was promoted to Manager of Conditori La Glace in 2019, where he oversaw a ten-person team.
During Aaron's four years as manager, he was able to reduce production costs by 16%.

Page | 7
6.1 Personnel Plan

Besides Aaron Domingo, Sweet Fantasy will have a staff of seven:

 Kitchen staff (3);

 Baker (2);
 Waiters/waitresses (2).

Personnel Plan
Year 1 Year 2 Year 3
Aaron Domingo $33,600 $36,000 $39,000
Kitchen Staff $84,000 $89,000 $94,000
Waiters/Waitresses $39,600 $41,000 $43,000
Baking Staff $48,000 $51,000 $54,000
Total People 9 9 9

Total Payroll $205,200 $217,000 $230,000

Page | 8
VII. Financial Plan

The following is the Financial plan for Sweet Fantasy.

7.1 Break-even Analysis

The following table and chart shows our Break-even Analysis.

Break-even Analysis

Monthly Revenue Break-even $32,365

Assumptions:
Average Percent Variable Cost 29%
Estimated Monthly Fixed Cost $23,068

Break-even Analysis
$20,000

$16,000

$12,000

$8,000

$4,000

$0

($4,000)

($8,000)

($12,000)

($16,000)

($20,000)

$0 $10,000 $20,000 $30,000 $40,000 $50,000

$5,000 $15,000 $25,000 $35,000 $45,000 $55,000

Page | 9
7.2 Projected Profit and Loss

The following table and charts highlight the projected profit and loss for three years.
Profit Monthly
$7,000

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

$0

($1,000)

($2,000)

($3,000)

Month 1 Month 3 Month 5 Month 7 Month 9 Month 11

Month 2 Month 4 Month 6 Month 8 Month 10 Month 12

Profit Yearly

$45,000

$40,000

$35,000

$30,000

$25,000

$20,000

$15,000

$10,000

$5,000

$0
Year 1 Year 2 Year 3

Page | 10
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $422,500 $469,000 $522,000
Direct Cost of Sales $121,360 $130,400 $145,000
Other Production Expenses $0 $0 $0
Total Cost of Sales $121,360 $130,400 $145,000

Gross Margin $301,140 $338,600 $377,000

Gross Margin % 71.28% 72.20% 72.22%

Expenses
Payroll $205,200 $217,000 $230,000
Sales and Marketing and Other Expenses $7,000 $10,000 $13,000
Depreciation $1,440 $1,440 $1,440
Leased Equipment $0 $0 $0
Utilities $4,800 $4,800 $4,800
Insurance $6,000 $6,000 $6,000
Rent $21,600 $21,600 $21,600
Payroll Taxes $30,780 $32,550 $34,500
Other $0 $0 $0

Total Operating Expenses $276,820 $293,390 $311,340

Profit Before Interest and Taxes $24,320 $45,210 $65,660

EBITDA $25,760 $46,650 $67,100
Interest Expense $4,459 $3,501 $2,501
Taxes Incurred $5,958 $12,513 $18,948

Net Profit $13,903 $29,197 $44,211

Net Profit/Sales 3.29% 6.23% 8.47%

Page | 11
7.3 Projected Cash Flow

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

Cash
$80,000

$70,000

$60,000

$50,000
Net Cash Flow
$40,000
Cash Balance
$30,000

$20,000

$10,000

$0

Month 1 Month 3 Month 5 Month 7 Month 9 Month 11

Month 2 Month 4 Month 6 Month 8 Month 10 Month 12

Page | 12
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received

Cash from Operations

Cash Sales $422,500 $469,000 $522,000
Subtotal Cash from Operations $422,500 $469,000 $522,000

Additional Cash Received

Sales 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 $0 $0 $0
Subtotal Cash Received $422,500 $469,000 $522,000

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $205,200 $217,000 $230,000
Bill Payments $189,370 $223,746 $245,925
Subtotal Spent on Operations $394,570 $440,746 $475,925

Additional Cash Spent

Sales 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 $9,996 $9,996 $9,996
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $404,566 $450,742 $485,921

Net Cash Flow $17,934 $18,258 $36,079

Cash Balance $81,134 $99,391 $135,470

Page | 13
7.4 Projected Balance Sheet

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

Pro Forma Balance Sheet

Year 1 Year 2 Year 3
Assets

Current Assets
Cash $81,134 $99,391 $135,470
Inventory $14,630 $12,844 $14,780
Other Current Assets $0 $0 $0
Total Current Assets $95,764 $112,235 $150,250

Long-term Assets
Long-term Assets $50,000 $50,000 $50,000
Accumulated Depreciation $1,440 $2,880 $4,320
Total Long-term Assets $48,560 $47,120 $45,680
Total Assets $144,324 $159,355 $195,930

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Accounts Payable $22,217 $18,047 $20,407
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $22,217 $18,047 $20,407

Long-term Liabilities $40,004 $30,008 $20,012

Total Liabilities $62,221 $48,055 $40,419

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

Retained Earnings ($11,800) $2,103 $31,300
Earnings $13,903 $29,197 $44,211
Total Capital $82,103 $111,300 $155,511
Total Liabilities and Capital $144,324 $159,355 $195,930

Net Worth $82,103 $111,300 $155,511

Page | 14
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 5812, Eating Places, are shown for comparison.

Ratio Analysis
Year 1 Year 2 Year 3 Industry
Profile
Sales Growth n.a. 11.01% 11.30% 7.60%

Percent of Total Assets

Inventory 10.14% 8.06% 7.54% 3.60%
Other Current Assets 0.00% 0.00% 0.00% 35.60%
Total Current Assets 66.35% 70.43% 76.69% 43.70%
Long-term Assets 33.65% 29.57% 23.31% 56.30%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 15.39% 11.33% 10.42% 32.70%

Long-term Liabilities 27.72% 18.83% 10.21% 28.50%
Total Liabilities 43.11% 30.16% 20.63% 61.20%
Net Worth 56.89% 69.84% 79.37% 38.80%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 71.28% 72.20% 72.22% 60.50%
Selling, General & Administrative 67.99% 65.97% 63.75% 39.80%
Expenses
Advertising Expenses 1.66% 2.13% 2.49% 3.20%
Profit Before Interest and Taxes 5.76% 9.64% 12.58% 0.70%

Main Ratios
Current 4.31 6.22 7.36 0.98
Quick 3.65 5.51 6.64 0.65
Total Debt to Total Assets 43.11% 30.16% 20.63% 61.20%
Pre-tax Return on Net Worth 24.19% 37.47% 40.61% 1.70%
Pre-tax Return on Assets 13.76% 26.17% 32.24% 4.30%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 3.29% 6.23% 8.47% n.a
Return on Equity 16.93% 26.23% 28.43% n.a

Activity Ratios
Inventory Turnover 10.91 9.49 10.50 n.a
Accounts Payable Turnover 9.52 12.17 12.17 n.a
Payment Days 27 33 28 n.a
Total Asset Turnover 2.93 2.94 2.66 n.a

Debt Ratios
Debt to Net Worth 0.76 0.43 0.26 n.a
Current Liab. to Liab. 0.36 0.38 0.50 n.a
Page | 15
Liquidity Ratios
Net Working Capital $73,547 $94,188 $129,843 n.a
Interest Coverage 5.45 12.91 26.25 n.a

Additional Ratios
Assets to Sales 0.34 0.34 0.38 n.a
Current Debt/Total Assets 15% 11% 10% n.a
Acid Test 3.65 5.51 6.64 n.a
Sales/Net Worth 5.15 4.21 3.36 n.a
Dividend Payout 0.00 0.00 0.00 n.a

Page | 16
VIII. Appendix

Sales
Forecast
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Sales
Bakery 0% $8,000 $9,000 $9,000 $11,000 $11,000 $11,000 $10,000 $9,000 $10,000 $12,000 $13,000 $14,000
Sandwiches 0% $15,000 $16,000 $17,000 $19,000 $20,000 $22,000 $20,000 $19,000 $22,000 $24,000 $26,000 $27,000
Drinks 0% $3,000 $3,500 $4,000 $4,000 $5,000 $5,000 $4,000 $3,000 $3,000 $4,000 $5,000 $5,000
Total Sales $26,000 $28,500 $30,000 $34,000 $36,000 $38,000 $34,000 $31,000 $35,000 $40,000 $44,000 $46,000

Direct Cost of Month Month Month Month Month Month Month Month Month Month Month Month
Sales 1 2 3 4 5 6 7 8 9 10 11 12
Bakery $2,000 $2,200 $2,200 $2,800 $2,800 $2,800 $2,500 $2,400 $2,500 $3,000 $3,500 $3,700
Sandwiches $5,000 $5,400 $5,600 $6,500 $6,800 $7,400 $6,800 $6,500 $7,400 $8,000 $8,500 $9,000
Drinks $400 $460 $500 $500 $600 $600 $500 $400 $400 $500 $600 $600
Subtotal $7,400 $8,060 $8,300 $9,800 $10,200 $10,800 $9,800 $9,300 $10,300 $11,500 $12,600 $13,300
Direct Cost
of Sales

Personnel Plan
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Aaron Domingo 0% $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800
Kitchen Staff 0% $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000
Waiters/ 0% $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300
Waitresses
Baking Staff 0% $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Total People 9 9 9 9 9 9 9 9 9 9 9 9

Total Payroll $17,10 $17,10 $17,10 $17,10 $17,10 $17,10 $17,10 $17,10 $17,10 $17,10 $17,10 $17,10
0 0 0 0 0 0 0 0 0 0 0 0

General
Assumption
s
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Interest Rate
Long-term 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Interest Rate
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
Loss

Page | 17
 Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Sales $26,000 $28,500 $30,000 $34,000 $36,000 $38,000 $34,000 $31,000 $35,000 $40,000 $44,000 $46,000
Direct Cost $7,400 $8,060 $8,300 $9,800 $10,200 $10,800 $9,800 $9,300 $10,300 $11,500 $12,600 $13,300
of Sales
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Production
Expenses
Total Cost of $7,400 $8,060 $8,300 $9,800 $10,200 $10,800 $9,800 $9,300 $10,300 $11,500 $12,600 $13,300
Sales

Gross $18,600 $20,440 $21,700 $24,200 $25,800 $27,200 $24,200 $21,700 $24,700 $28,500 $31,400 $32,700
Margin
Gross 71.54% 71.72% 72.33% 71.18% 71.67% 71.58% 71.18% 70.00% 70.57% 71.25% 71.36% 71.09%
Margin %

Expenses
Payroll $17,100 $17,100 $17,100 $17,100 $17,100 $17,100 $17,100 $17,100 $17,100 $17,100 $17,100 $17,100
Sales and $1,000 $1,000 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Marketing
and Other
Expenses
Depreciation $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120
Leased $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Equipment
Utilities $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Insurance $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Rent $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800
Payroll 15% $2,565 $2,565 $2,565 $2,565 $2,565 $2,565 $2,565 $2,565 $2,565 $2,565 $2,565 $2,565
Taxes
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total $23,485 $23,485 $22,985 $22,985 $22,985 $22,985 $22,985 $22,985 $22,985 $22,985 $22,985 $22,985
Operating
Expenses

Profit Before ($4,885) ($3,045) ($1,285) $1,215 $2,815 $4,215 $1,215 ($1,285) $1,715 $5,515 $8,415 $9,715
Interest and
Taxes
EBITDA ($4,765) ($2,925) ($1,165) $1,335 $2,935 $4,335 $1,335 ($1,165) $1,835 $5,635 $8,535 $9,835
Interest $410 $403 $396 $389 $382 $375 $368 $361 $354 $347 $340 $333
Expense
Taxes ($1,588) ($1,034) ($504) $248 $730 $1,152 $254 ($494) $408 $1,550 $2,422 $2,814
Incurred

Net Profit ($3,706) ($2,413) ($1,177) $578 $1,703 $2,688 $593 ($1,152) $953 $3,617 $5,652 $6,567
Net -14.26% -8.47% -3.92% 1.70% 4.73% 7.07% 1.74% -3.72% 2.72% 9.04% 12.85% 14.28%
Profit/Sales

Pro Forma
Cash Flow
Month Month Month Month Month Month Month Month Month Month Month Month
 1 2 3 4 5 6 7 8 9 10 11 12
Cash Received

Cash from
Operations
Cash Sales $26,000 $28,500 $30,000 $34,000 $36,000 $38,000 $34,000 $31,000 $35,000 $40,000 $44,000 $46,000
Subtotal Cash $26,000 $28,500 $30,000 $34,000 $36,000 $38,000 $34,000 $31,000 $35,000 $40,000 $44,000 $46,000
from
Operations

Additional
Cash Received
Sales Tax, 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
VAT,
HST/GST
Received
New Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
New Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
(interest-free)
New Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Sales of Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Assets
Sales of Long- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
term Assets
New $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Investment
Received
Subtotal Cash $26,000 $28,500 $30,000 $34,000 $36,000 $38,000 $34,000 $31,000 $35,000 $40,000 $44,000 $46,000
Received

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

Expenditures
from
Operations
Cash Spending $17,100 $17,100 $17,100 $17,100 $17,100 $17,100 $17,100 $17,100 $17,100 $17,100 $17,100 $17,100
Bill Payments $521 $15,586 $14,413 $14,342 $17,841 $17,558 $18,630 $15,064 $14,500 $18,013 $20,544 $22,359
Subtotal Spent $17,621 $32,686 $31,513 $31,442 $34,941 $34,658 $35,730 $32,164 $31,600 $35,113 $37,644 $39,459
on Operations

Additional
Cash Spent
Sales Tax, $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
VAT,
HST/GST Paid
Out
Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment of
Current
Borrowing
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Principal
Repayment
Long-term $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833
Liabilities
Principal
Repayment
Purchase Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Assets
Purchase Long- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
term Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash $18,454 $33,519 $32,346 $32,275 $35,774 $35,491 $36,563 $32,997 $32,433 $35,946 $38,477 $40,292
Spent

Net Cash Flow $7,546 ($5,019) ($2,346) $1,725 $226 $2,509 ($2,563) ($1,997) $2,567 $4,054 $5,523 $5,708
Cash Balance $70,746 $65,727 $63,381 $65,107 $65,333 $67,842 $65,279 $63,282 $65,849 $69,903 $75,426 $81,134
Pro
Forma
Balance
Sheet
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Assets Starting
Balance
s

Current
Assets
Cash $63,200 $70,746 $65,727 $63,381 $65,107 $65,333 $67,842 $65,279 $63,282 $65,849 $69,903 $75,426 $81,134
Inventory $5,000 $8,140 $8,866 $9,130 $10,780 $11,220 $11,880 $10,780 $10,230 $11,330 $12,650 $13,860 $14,630
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Assets
Total $68,200 $78,886 $74,593 $72,511 $75,887 $76,553 $79,722 $76,059 $73,512 $77,179 $82,553 $89,286 $95,764
Current
Assets

Long-term
Assets
Long-term $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Assets
Accumulat $0 $120 $240 $360 $480 $600 $720 $840 $960 $1,080 $1,200 $1,320 $1,440
ed
Depreciati
on
Total $50,000 $49,880 $49,760 $49,640 $49,520 $49,400 $49,280 $49,160 $49,040 $48,920 $48,800 $48,680 $48,560
Long-term
Assets
Total $118,20 $128,76 $124,35 $122,15 $125,40 $125,95 $129,00 $125,21 $122,55 $126,09 $131,35 $137,96 $144,32
Assets 0 6 3 1 7 3 2 9 2 9 3 6 4

Liabilities Month Month Month Month Month Month Month Month Month Month Month Month
and 1 2 3 4 5 6 7 8 9 10 11 12
Capital

Current
Liabilities
Accounts $0 $15,105 $13,939 $13,747 $17,257 $16,933 $18,127 $14,584 $13,903 $17,330 $19,800 $21,593 $22,217
Payable
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Liabilities
Subtotal $0 $15,105 $13,939 $13,747 $17,257 $16,933 $18,127 $14,584 $13,903 $17,330 $19,800 $21,593 $22,217
Current
Liabilities

Long-term $50,000 $49,167 $48,334 $47,501 $46,668 $45,835 $45,002 $44,169 $43,336 $42,503 $41,670 $40,837 $40,004
Liabilities
Total $50,000 $64,272 $62,273 $61,248 $63,925 $62,768 $63,129 $58,753 $57,239 $59,833 $61,470 $62,430 $62,221
Liabilities

Paid-in $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
Capital
Retained ($11,80 ($11,80 ($11,80 ($11,80 ($11,80 ($11,80 ($11,80 ($11,80 ($11,80 ($11,80 ($11,80 ($11,80 ($11,80
Earnings 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0)
Earnings $0 ($3,706 ($6,120 ($7,296 ($6,718 ($5,015 ($2,327 ($1,734 ($2,886 ($1,934 $1,684 $7,336 $13,903
) ) ) ) ) ) ) ) )
Total $68,200 $64,494 $62,080 $60,904 $61,482 $63,185 $65,873 $66,466 $65,314 $66,266 $69,884 $75,536 $82,103
Capital
Total $118,20 $128,76 $124,35 $122,15 $125,40 $125,95 $129,00 $125,21 $122,55 $126,09 $131,35 $137,96 $144,32
Liabilities 0 6 3 1 7 3 2 9 2 9 3 6 4
and
Capital

Net $68,200 $64,494 $62,080 $60,904 $61,482 $63,185 $65,873 $66,466 $65,314 $66,266 $69,884 $75,536 $82,103
Worth