Aztec Food Imports will import Mexican food products to serve the growing Hispanic/Latino population in the Richmond, VA area. The company is owned equally by Raymond Garcia and Jose Arroyo and will focus on becoming the leading provider of imported Mexican foods to supermarkets and neighborhood markets. Aztec forecasts sales to increase from $333,500 in 2002 to $510,000 in 2004 as it utilizes the owners' experience and connections to offer competitive prices and a wide selection of products.

1. December 2001
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3. Table of Contents
1.0 Executive Summary.............................................................................................................................1
1.1 Objectives ...................................................................................................................................1
1.2 Mission........................................................................................................................................1
1.3 Keys to Success ........................................................................................................................1
2.0 Company Summary.............................................................................................................................2
2.1 Company Ownership .................................................................................................................2
2.2 Start-up Summary ......................................................................................................................3
2.3 Company Locations and Facilities ..........................................................................................4
3.0 Products ...............................................................................................................................................5
4.0 Market Analysis Summary..................................................................................................................5
4.1 Market Segmentation ................................................................................................................5
4.2 Target Market Segment Strategy.............................................................................................6
4.3 Main Competitors ......................................................................................................................7
5.0 Strategy and Implementation Summary ............................................................................................7
5.1 Competitive Edge ......................................................................................................................7
5.2 Sales Strategy............................................................................................................................7
5.2.1 Sales Forecast........................................................................................................................7
6.0 Management Summary.......................................................................................................................9
6.1 Personnel Plan ...........................................................................................................................9
7.0 Financial Plan ......................................................................................................................................9
7.1 Break-even Analysis................................................................................................................10
7.2 Projected Profit and Loss .......................................................................................................11
7.3 Projected Cash Flow ...............................................................................................................14
7.4 Projected Balance Sheet ........................................................................................................16
7.5 Business Ratios .......................................................................................................................16
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4. Aztec Food Imports
1.0 Executive Summary
Aztec Food Imports (Aztec) will offer food product imports from Mexico to meet increased
demand for these product by the city's growing Hispanic/Latino community in the greater
Richmond area. Over the last five years, this community has grown by 70%, and represents half
of the Richmond Metro population (250,000). Aztec has been successful over the competition in
supplying imported mexican food products to the area's two PriceRight supermarkets. From this
base, Aztec will build a successful business serving the area's large and small markets.
1.1 Objectives
• Establish Aztec Food Imports as the number one importer of mexican food products in
Richmond.
• Increase the number of mexican food products being carried in loc al markets by 20% over the
next two years.
• Build solid working relationships with the purchasing agents of the loc al stores serving
Richmond's growing Hispanic/Latino population.
1.2 Mission
Aztec's mission is to supply Mexican food imports to Richmond stores which are currently being
poorly served by importers loc ated over 150 miles away. Raymond Garcia, co-owner of Aztec,
will utilize his importing bac kground, his experience in the food retail market, as well as his
contac ts in Mexico to bring in products that area customers demand.
1.3 Keys to Success
The keys to success in Aztec's business are:
1. Offering items of a high quality-value relationship which are not available everywhere. This is
essential for maintaining the niche market sectors mentioned in the mission statement.
2. Reliable and timely deliveries. Aztec must make good on its delivery promises. Bec ause of the
nature of doing business in Mexico, this requires long-range planning in scheduling orders,
taking into ac count Mexican business prac tices.
3. A reliable administration that is ready to serve customers, prepare ac curate billing, follow-up
on orders and other documentation, and maintain a close watch on expenses and collec tion
of ac counts rec eivable.
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5. Aztec Food Imports
2.0 Company Summary
Aztec Food Imports will import Mexican food products to the loc al markets of the Richmond
Metro area.
2.1 Company Ownership
Aztec's ownership is shared equally between Raymond Garcia and Jose Arroyo. Raymond has
eight years of importing experience. Jose Arroya has 10 years experience in managing imports
from Mexico and shipping to the U.S. market. Raymond Garcia is responsible for the daily
management, sales, and store deliveries. Jose Arroya is responsible for the quality control and
shipping of the goods from Mexico to the U.S.
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6. Aztec Food Imports
2.2 Start-up Summary
The start-up cost of Aztec Food Imports will consist primarily of inventory. Raymond Garcia and
Jose Arroya will eac h invest $50,000. They will also secure a $100,000 SBA loan.
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund $15,300
Start-up Assets to Fund $184,700
Total Funding Required $200,000
Assets
Non-cash Assets from Start-up $80,000
Cash Requirements from Start-up $104,700
Additional Cash Raised $0
Cash Balance on Starting Date $104,700
Total Assets $184,700
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $100,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $100,000
Capital
Planned Investment
Raymond Garcia $50,000
IJose Arroya $50,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $100,000
Loss at Start-up (Start-up Expenses) ($15,300)
Total Capital $84,700
Total Capital and Liabilities $184,700
Total Funding $200,000
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7. Aztec Food Imports
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal $5,000
Stationery etc. $800
Brochures $2,000
Consultants $0
Insurance $0
Rent $3,000
Expensed Equipment $4,000
Utilities $500
Other $0
Total Start-up Expenses $15,300
Start-up Assets
Cash Required $104,700
Start-up Inventory $60,000
Other Current Assets $0
Long-term Assets $20,000
Total Assets $184,700
Total Requirements $200,000
2.3 Company Locations and Facilities
Aztec Food Imports will have warehouse space loc ated in the Fillmore industrial district.
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8. Aztec Food Imports
3.0 Products
Aztec's product line is rather extensive amounting to over 200 items:
• Beverages.
• Canned foods.
• Chile peppers.
• Desserts.
• Packaged foods.
• Salsas.
• Snacks.
• Spices and herbs.
Aztec also carries the popular brands:
• Ducal.
• Herdez.
• Juanita's.
• La Costeña.
• La Joya.
• La Lechonera.
• La Sierra.
• Pico Pica.
4.0 Market Analysis Summary
The Hispanic/Latino population in the Richmond Metro area has grown by 10% over the past five
years. The current population stands at over 100,000. It is projec ted that the population will
continue its growth pattern for the next five years and will eventually reach over 160,000. A
majority of these inner-city residents live in family groups of six or more members. The average
household income for the area is $32,000.
There are four major supermarkets that operate in the area and over 50 smaller food stores that
serve the metro communities. Last year, the four major supermarkets grossed over $150,000,000
in sales. There are plans to build additional supermarkets in the Richmond Metro area in 2003 and
2004. Two of the current supermarkets in the Richmond Metro area are part the loc al PriceRight
chain. PriceRight is planning a new store in the area in 2004.
Though it is difficult to know the exac t sales figures for the small markets in the area,
traditionally, the community residents have been supportive of the smaller store if their prices
are competitive. Last year, Wilson Foods Imports grossed $1.5 million in sales with smaller
markets in the Richmond Metro area.
4.1 Market Segmentation
Aztec Food Imports will serve all retail food outlets in the Richmond Metro area. These include
neighborhood markets and supermarkets.
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9. Aztec Food Imports
Table: Market Analysis
Market Analysis
2002 2003 2004 2005 2006
Potential Customers Growth CAGR
Supermarkets 20% 4 5 6 7 8 18.92%
Neighborhood Markets 20% 50 60 72 86 103 19.80%
Other 0% 0 0 0 0 0 0.00%
Total 19.74% 54 65 78 93 111 19.74%
4.2 Target Market Segment Strategy
Aztec Food Imports will have two distinct marketing approaches:
• For Neighborhood Markets: Raymond will promote a small group of popular mexican food
products that are likely to move fast in smaller stores. These products will be priced to be
attrac tive to the small store owner. Once successful, Raymond will expand the product
group.
• For Supermarkets: Raymond will promote the complete line of products that Aztec can
provide. Aztec prices will reflec t a stronger import connec tion in Mexico that will results in
lower prices and more product.
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10. Aztec Food Imports
4.3 Main Competitors
Currently, Ac me Food Importers loc ated in Wilsonville supplies the Richmond area food stores
with imported mexican food products. Wilsonville is 150 miles north of Richmond. Only in the past
two years has the demand for these products grown sufficiently to impact Ac me's ability to
satisfy demand. Besides the distance, Ac me is plagued with weak import connec tions in Mexico.
These fac tors contribute to the high wholesale price of Ac me's imported products.
5.0 Strategy and Implementation Summary
Aztec Food Imports will foc us on bec oming the leading provider of wholesale imported mexican
food product in the Richmond Metro area.
5.1 Competitive Edge
Raymond Garcia and Jose Arroyo are the competitive edge of Aztec Food Imports. Raymond has
worked for both Acme Food Imports and Wilson Food Imports over the past eight years. In his
last position with Wilson, Raymond imported mexican food products to numerous markets in the
southwest. He generated sales in excess of $2 million annually. His strength is his customer
relations and he has been successful in expanding the range of imported mexican food purchased
by the markets in his sales region.
Jose has been a shipping agent for M. Zegarra Exporting loc ated in Mexico City for the past ten
years. The company exported $20 million of products to the U.S last year. Jose's responsibility
was to eliminate the shipping obstac les and oversee the timely delivery of product to the U.S.
5.2 Sales Strategy
Aztec Food Imports will have two distinct sales approaches:
• For Neighborhood Markets: Raymond will promote a small group of popular mexican food
products that are likely to move fast in smaller stores. These items will be pac kaged as a
group at an attrac tive price. Raymond will make frequent visits to these stores to build a
strong working relationship that will lead to more purchases.
• For Supermarkets: Raymond will promote the complete line of products that Aztec can
provide. Aztec prices will reflec t a stronger import connec tion in Mexico that will results in
lower prices and more product. Raymond will promote new seasonal products and provide
assistance on marketing the products to the Hispanic/Latino community.
5.2.1 Sales Forecast
The following is the sales forec ast for three years.
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11. Aztec Food Imports
Table: Sales Forecast
Sales Forecast
2002 2003 2004
Sales
Supermarkets $209,500 $260,000 $310,000
Neighborhood Markets $124,000 $160,000 $200,000
Total Sales $333,500 $420,000 $510,000
Direct Cost of Sales 2002 2003 2004
Supermarkets $85,900 $110,000 $130,000
Neighborhood Markets $18,300 $23,000 $24,000
Subtotal Direct Cost of Sales $104,200 $133,000 $154,000
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12. Aztec Food Imports
6.0 Management Summary
The two owners will co-manage the business. Raymond Garcia is responsible for the daily
management, sales, and store deliveries. Jose Arroyo is responsible for the quality control and
shipping of the goods from Mexico to the U.S.
6.1 Personnel Plan
Aztec Food Imports will have two additional delivery employees and an office manager supervised
by Raymond.
Table: Personnel
Personnel Plan
2002 2003 2004
Raymond Garcia $36,000 $45,000 $50,000
Jose Arroyo $36,000 $45,000 $50,000
Delivery Persons $48,000 $54,000 $60,000
Office Manager $31,200 $34,000 $38,000
Other $0 $0 $0
Total People 5 5 5
Total Payroll $151,200 $178,000 $198,000
7.0 Financial Plan
The following sections outline conservative estimates of the financial performance of Aztec Food
Imports.
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13. Aztec Food Imports
7.1 Break-even Analysis
The monthly break-even point is $26,514.
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $26,514
Assumptions:
Average Percent Variable Cost 31%
Estimated Monthly Fixed Cost $18,230
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14. Aztec Food Imports
7.2 Projected Profit and Loss
The following table and charts will highlight the next three years.
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15. Aztec Food Imports
Page 12

16. Aztec Food Imports
Table: Profit and Loss
Pro Forma Profit and Loss
2002 2003 2004
Sales $333,500 $420,000 $510,000
Direct Cost of Sales $104,200 $133,000 $154,000
Other Production Expenses $0 $0 $0
Total Cost of Sales $104,200 $133,000 $154,000
Gross Margin $229,300 $287,000 $356,000
Gross Margin % 68.76% 68.33% 69.80%
Expenses
Payroll $151,200 $178,000 $198,000
Sales and Marketing and Other Expenses $0 $0 $0
Depreciation $2,880 $2,880 $2,880
Leased Equipment $0 $0 $0
Utilities $6,000 $6,000 $6,000
Insurance $0 $0 $0
Rent $36,000 $36,000 $36,000
Payroll Taxes $22,680 $26,700 $29,700
Other $0 $0 $0
Total Operating Expenses $218,760 $249,580 $272,580
Profit Before Interest and Taxes $10,540 $37,420 $83,420
EBITDA $13,420 $40,300 $86,300
Interest Expense $9,233 $7,876 $6,460
Taxes Incurred $392 $8,863 $23,088
Net Profit $915 $20,681 $53,872
Net Profit/Sales 0.27% 4.92% 10.56%
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17. Aztec Food Imports
7.3 Projected Cash Flow
The following table and chart highlight the projec ted cash flow for three years.
Table: Cash Flow
Pro Forma Cash Flow
2002 2003 2004
Cash Received
Cash from Operations
Cash Sales $83,375 $105,000 $127,500
Cash from Receivables $194,775 $300,644 $367,563
Subtotal Cash from Operations $278,150 $405,644 $495,063
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 $278,150 $405,644 $495,063
Expenditures 2002 2003 2004
Expenditures from Operations
Cash Spending $151,200 $178,000 $198,000
Bill Payments $110,267 $228,719 $255,535
Subtotal Spent on Operations $261,467 $406,719 $453,535
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 $14,160 $14,160 $14,160
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $275,627 $420,879 $467,695
Net Cash Flow $2,523 ($15,235) $27,368
Cash Balance $107,223 $91,987 $119,355
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18. Aztec Food Imports
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19. Aztec Food Imports
7.4 Projected Balance Sheet
The following table highlights the projec ted balance sheet for three years.
Table: Balance Sheet
Pro Forma Balance Sheet
2002 2003 2004
Assets
Current Assets
Cash $107,223 $91,987 $119,355
Accounts Receivable $55,350 $69,706 $84,643
Inventory $15,950 $20,358 $23,573
Other Current Assets $0 $0 $0
Total Current Assets $178,523 $182,052 $227,571
Long-term Assets
Long-term Assets $20,000 $20,000 $20,000
Accumulated Depreciation $2,880 $5,760 $8,640
Total Long-term Assets $17,120 $14,240 $11,360
Total Assets $195,643 $196,292 $238,931
Liabilities and Capital 2002 2003 2004
Current Liabilities
Accounts Payable $24,188 $18,316 $21,243
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $24,188 $18,316 $21,243
Long-term Liabilities $85,840 $71,680 $57,520
Total Liabilities $110,028 $89,996 $78,763
Paid-in Capital $100,000 $100,000 $100,000
Retained Earnings ($15,300) ($14,385) $6,296
Earnings $915 $20,681 $53,872
Total Capital $85,615 $106,296 $160,168
Total Liabilities and Capital $195,643 $196,292 $238,931
Net Worth $85,615 $106,296 $160,168
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 5149, Groc eries and Related Products, are shown
for comparison.
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20. Aztec Food Imports
Table: Ratios
Ratio Analysis
2002 2003 2004 Industry Profile
Sales Growth 0.00% 25.94% 21.43% 4.60%
Percent of Total Assets
Accounts Receivable 28.29% 35.51% 35.43% 33.30%
Inventory 8.15% 10.37% 9.87% 26.00%
Other Current Assets 0.00% 0.00% 0.00% 20.90%
Total Current Assets 91.25% 92.75% 95.25% 80.20%
Long-term Assets 8.75% 7.25% 4.75% 19.80%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 12.36% 9.33% 8.89% 45.20%
Long-term Liabilities 43.88% 36.52% 24.07% 10.00%
Total Liabilities 56.24% 45.85% 32.96% 55.20%
Net Worth 43.76% 54.15% 67.04% 44.80%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 68.76% 68.33% 69.80% 44.10%
Selling, General & Administrative Expenses 68.48% 63.41% 59.24% 26.70%
Advertising Expenses 0.00% 0.00% 0.00% 0.70%
Profit Before Interest and Taxes 3.16% 8.91% 16.36% 0.80%
Main Ratios
Current 7.38 9.94 10.71 1.69
Quick 6.72 8.83 9.60 1.01
Total Debt to Total Assets 56.24% 45.85% 32.96% 55.20%
Pre-tax Return on Net Worth 1.53% 27.79% 48.05% 3.60%
Pre-tax Return on Assets 0.67% 15.05% 32.21% 8.00%
Additional Ratios 2002 2003 2004
Net Profit Margin 0.27% 4.92% 10.56% n.a
Return on Equity 1.07% 19.46% 33.63% n.a
Activity Ratios
Accounts Receivable Turnover 4.52 4.52 4.52 n.a
Collection Days 56 72 74 n.a
Inventory Turnover 3.83 7.33 7.01 n.a
Accounts Payable Turnover 5.56 12.17 12.17 n.a
Payment Days 27 35 28 n.a
Total Asset Turnover 1.70 2.14 2.13 n.a
Debt Ratios
Debt to Net Worth 1.29 0.85 0.49 n.a
Current Liab. to Liab. 0.22 0.20 0.27 n.a
Liquidity Ratios
Net Working Capital $154,335 $163,736 $206,328 n.a
Interest Coverage 1.14 4.75 12.91 n.a
Additional Ratios
Assets to Sales 0.59 0.47 0.47 n.a
Current Debt/Total Assets 12% 9% 9% n.a
Acid Test 4.43 5.02 5.62 n.a
Sales/Net Worth 3.90 3.95 3.18 n.a
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21. Aztec Food Imports
Dividend Payout 0.00 0.00 0.00 n.a
Page 18

22. Appendix
Table: Sales Forecast
Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Supermarkets 0% $14,000 $14,000 $14,000 $16,000 $16,000 $17,500 $18,000 $18,000 $20,000 $20,000 $20,000 $22,000
Neighborhood Markets 0% $5,000 $5,000 $6,000 $6,000 $8,000 $10,000 $12,000 $12,000 $13,000 $14,000 $16,000 $17,000
Total Sales $19,000 $19,000 $20,000 $22,000 $24,000 $27,500 $30,000 $30,000 $33,000 $34,000 $36,000 $39,000
Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Supermarkets $4,000 $4,000 $4,000 $4,400 $6,000 $6,300 $8,000 $8,200 $9,000 $10,000 $10,000 $12,000
Neighborhood Markets $1,000 $1,000 $1,000 $1,080 $1,200 $1,280 $1,700 $1,740 $1,800 $2,000 $2,000 $2,500
Subtotal Direct Cost of Sales $5,000 $5,000 $5,000 $5,480 $7,200 $7,580 $9,700 $9,940 $10,800 $12,000 $12,000 $14,500
Page 1

23. Appendix
Table: Personnel
Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Raymond Garcia 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
Jose Arroyo 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
Delivery Persons 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
Office Manager 0% $2,600 $2,600 $2,600 $2,600 $2,600 $2,600 $2,600 $2,600 $2,600 $2,600 $2,600 $2,600
Other 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 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600
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24. Appendix
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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25. Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $19,000 $19,000 $20,000 $22,000 $24,000 $27,500 $30,000 $30,000 $33,000 $34,000 $36,000 $39,000
Direct Cost of Sales $5,000 $5,000 $5,000 $5,480 $7,200 $7,580 $9,700 $9,940 $10,800 $12,000 $12,000 $14,500
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $5,000 $5,000 $5,000 $5,480 $7,200 $7,580 $9,700 $9,940 $10,800 $12,000 $12,000 $14,500
Gross Margin $14,000 $14,000 $15,000 $16,520 $16,800 $19,920 $20,300 $20,060 $22,200 $22,000 $24,000 $24,500
Gross Margin % 73.68% 73.68% 75.00% 75.09% 70.00% 72.44% 67.67% 66.87% 67.27% 64.71% 66.67% 62.82%
Expenses
Payroll $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600
Sales and Marketing and Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Expenses
Depreciation $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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% $1,890 $1,890 $1,890 $1,890 $1,890 $1,890 $1,890 $1,890 $1,890 $1,890 $1,890 $1,890
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $18,230 $18,230 $18,230 $18,230 $18,230 $18,230 $18,230 $18,230 $18,230 $18,230 $18,230 $18,230
Profit Before Interest and Taxes ($4,230) ($4,230) ($3,230) ($1,710) ($1,430) $1,690 $2,070 $1,830 $3,970 $3,770 $5,770 $6,270
EBITDA ($3,990) ($3,990) ($2,990) ($1,470) ($1,190) $1,930 $2,310 $2,070 $4,210 $4,010 $6,010 $6,510
Interest Expense $824 $814 $804 $794 $784 $774 $765 $755 $745 $735 $725 $715
Taxes Incurred ($1,516) ($1,513) ($1,210) ($751) ($664) $275 $392 $323 $968 $911 $1,513 $1,666
Net Profit ($3,537) ($3,531) ($2,824) ($1,753) ($1,550) $641 $914 $753 $2,258 $2,125 $3,531 $3,888
Net Profit/Sales -18.62% -18.58% -14.12% -7.97% -6.46% 2.33% 3.05% 2.51% 6.84% 6.25% 9.81% 9.97%
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26. Appendix
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 $4,750 $4,750 $5,000 $5,500 $6,000 $6,875 $7,500 $7,500 $8,250 $8,500 $9,000 $9,750
Cash from Receivables $0 $475 $14,250 $14,275 $15,050 $16,550 $18,088 $20,688 $22,500 $22,575 $24,775 $25,550
Subtotal Cash from Operations $4,750 $5,225 $19,250 $19,775 $21,050 $23,425 $25,588 $28,188 $30,750 $31,075 $33,775 $35,300
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $4,750 $5,225 $19,250 $19,775 $21,050 $23,425 $25,588 $28,188 $30,750 $31,075 $33,775 $35,300
Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Expenditures from Operations
Cash Spending $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600
Bill Payments $157 $4,697 $4,700 $4,999 $5,435 $5,541 $6,443 $6,738 $12,520 $18,899 $20,331 $19,808
Subtotal Spent on Operations $12,757 $17,297 $17,300 $17,599 $18,035 $18,141 $19,043 $19,338 $25,120 $31,499 $32,931 $32,408
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $1,180 $1,180 $1,180 $1,180 $1,180 $1,180 $1,180 $1,180 $1,180 $1,180 $1,180 $1,180
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 $13,937 $18,477 $18,480 $18,779 $19,215 $19,321 $20,223 $20,518 $26,300 $32,679 $34,111 $33,588
Net Cash Flow ($9,187) ($13,252) $770 $996 $1,835 $4,104 $5,365 $7,670 $4,450 ($1,604) ($336) $1,712
Cash Balance $95,513 $82,261 $83,031 $84,027 $85,862 $89,966 $95,331 $103,000 $107,451 $105,847 $105,511 $107,223
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27. Appendix
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 $104,700 $95,513 $82,261 $83,031 $84,027 $85,862 $89,966 $95,331 $103,000 $107,451 $105,847 $105,511 $107,223
Accounts Receivable $0 $14,250 $28,025 $28,775 $31,000 $33,950 $38,025 $42,438 $44,250 $46,500 $49,425 $51,650 $55,350
Inventory $60,000 $55,000 $50,000 $45,000 $39,520 $32,320 $24,740 $15,040 $10,934 $11,880 $13,200 $13,200 $15,950
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $164,700 $164,763 $160,286 $156,806 $154,547 $152,132 $152,731 $152,808 $158,184 $165,831 $168,472 $170,361 $178,523
Long-term Assets
Long-term Assets $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
Accumulated Depreciation $0 $240 $480 $720 $960 $1,200 $1,440 $1,680 $1,920 $2,160 $2,400 $2,640 $2,880
Total Long-term Assets $20,000 $19,760 $19,520 $19,280 $19,040 $18,800 $18,560 $18,320 $18,080 $17,840 $17,600 $17,360 $17,120
Total Assets $184,700 $184,523 $179,806 $176,086 $173,587 $170,932 $171,291 $171,128 $176,264 $183,671 $186,072 $187,721 $195,643
Liabilities and Capital Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Current Liabilities
Accounts Payable $0 $4,541 $4,534 $4,818 $5,252 $5,326 $6,224 $6,328 $11,891 $18,220 $19,677 $18,974 $24,188
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $4,541 $4,534 $4,818 $5,252 $5,326 $6,224 $6,328 $11,891 $18,220 $19,677 $18,974 $24,188
Long-term Liabilities $100,000 $98,820 $97,640 $96,460 $95,280 $94,100 $92,920 $91,740 $90,560 $89,380 $88,200 $87,020 $85,840
Total Liabilities $100,000 $103,361 $102,174 $101,278 $100,532 $99,426 $99,144 $98,068 $102,451 $107,600 $107,877 $105,994 $110,028
Paid-in Capital $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000
Retained Earnings ($15,300) ($15,300) ($15,300) ($15,300) ($15,300) ($15,300) ($15,300) ($15,300) ($15,300) ($15,300) ($15,300) ($15,300) ($15,300)
Earnings $0 ($3,537) ($7,068) ($9,892) ($11,645) ($13,194) ($12,553) ($11,640) ($10,887) ($8,629) ($6,505) ($2,973) $915
Total Capital $84,700 $81,163 $77,632 $74,808 $73,056 $71,506 $72,147 $73,060 $73,813 $76,071 $78,195 $81,727 $85,615
Total Liabilities and Capital $184,700 $184,523 $179,806 $176,086 $173,587 $170,932 $171,291 $171,128 $176,264 $183,671 $186,072 $187,721 $195,643
Net Worth $84,700 $81,163 $77,632 $74,808 $73,056 $71,506 $72,147 $73,060 $73,813 $76,071 $78,195 $81,727 $85,615
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