MosaiM

c a ll

Encounter The Total Beauty Experience

Business Plan
Prepared By: Penelope Daniels, CEO
2007 Panasci Business Plan Competition
Entrepreneurial Spirit Award Recipient
www.mosaicmall.net
315-443-3474 (W)
315-289-7346 (H)
pdaniels@mosaicmall.net
 Confidentiality Agreement

The undersigned reader acknowledges that the information provided by Penelope

Daniels in this business plan is confidential; therefore, reader agrees not to disclose
it without the express written permission of Penelope Daniels.

It is acknowledged by reader that information to be furnished in this business plan is

in all respects confidential in nature, other than information which is in the public
domain through other means and that any disclosure or use of same by reader may
cause serious harm or damage to Penelope Daniels.

Upon request, this document is to be immediately returned to Penelope Daniels.

April 22, 2009

Date

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

 Table of Contents

1. Executive Summary ................................................................ 2

1.1. Objectives .......................................................................... 3
1.2. Mission............................................................................... 3
1.3. Keys to Success .................................................................. 4
1.4. Services ............................................................................. 4
1.5. Distinguishing Aspects.......................................................... 4
1.6. Service Business Analysis ..................................................... 4
1.7. Target Market Segmentation ................................................. 5
1.8. Competitive Edge ................................................................ 6
2. Company Summary................................................................. 6
3. Start-up Summary .................................................................. 6
4. Market Analysis Summary ...................................................... 9
4.1. Target Market Segment Strategy ........................................... 9
4.2. Competition and Buying Patterns ........................................ 10
4.3. Syracuse Hair Care Statistics............................................... 10
5. Strategy and Implementation Summary ................................10
5.1. SWOT Analysis .................................................................. 11
5.1.1. Strengths.................................................................... 11
5.1.2. Weaknesses ................................................................ 11
5.1.3. Opportunities .............................................................. 11
5.1.4. Threats....................................................................... 11
6. Marketing Strategy ................................................................11
6.1. Tenants............................................................................ 11
6.2. Customers ........................................................................ 12
7. Sales Strategy .......................................................................12
7.1. Sales Forecast................................................................... 12
8. Operations .............................................................................14
8.1. Reception ......................................................................... 14
8.2. Shortcuts Salon & Spa Software .......................................... 14
9. Management Summary ..........................................................14
9.1. Management Team ............................................................ 15
9.2. Personnel Plan................................................................... 16
10. Milestones .............................................................................19
11. Financial Plan ........................................................................19
11.1. Important Assumptions ................................................... 19
11.2. Break-even Analysis ........................................................ 20
11.3. Projected Profit and Loss.................................................. 21
11.4. Projected Cash Flow ........................................................ 23
11.5. Projected Balance Sheet .................................................. 25
11.6. Business Ratios .............................................................. 26
12. Exit Strategy..........................................................................28
12.1. The 1031 Exchange......................................................... 28
12.2. The Tenancy-In-Common Investment ................................ 28
12.3. An Installment Sale......................................................... 28
12.4. The Private Annuity Trust (PAT) ........................................ 29
13. Conclusion ......................................................................... 29

1
 Mosaic Mall

1. Executive Summary

Mosaic Mall is best described as a mall of beauty professionals. Mosaic Mall

will lease fully equipped units to state licensed beauty professionals.

Owners of traditional salons face many challenges when starting a new

business. Purchasing equipment and finding a location in a high traffic area
with reasonable rent is often difficult. Although 40% of beauty professionals
own their own business, 60% are employed in a privately owned shop.

In a traditional salon environment employees are paid 50% commission.

These employees are often charged for supplies and products utilized. These
issues sometimes lead to high turnover in the industry. Because of these
challenges, salon owners have resorted to booth rental in those states in
which it is legal. Although booth rentals are attractive to many; there are
some drawbacks. To be considered a booth renter and not an employee by
the IRS and the state, a signed lease is required. If an audit is performed and
there is no signed lease, this could involve significant liability, including back
taxes, interest and penalty.

A long-term loan or an additional investment will be sought to

supplement owner investment. This will help Mosaic Mall make the required
leasehold improvements to the selected site. Leasehold improvements
include installation of equipment, electrical, plumbing and carpentry required
to construct 25 suites.

First year profit is estimated at $212,953 growing to $297,969 in Year 3.

2
 Mosaic Mall

Highlights

$900,000

$800,000

$700,000

$600,000

$500,000 Sales
Gross Margin
$400,000
Net Profit
$300,000

$200,000

$100,000

$0
Year 1 Year 2 Year 3 Year 4 Year 5

1.1. Objectives

Mosaic Mall has the objective of becoming the only existing multi-tenant
location for beauty care in the Greater Syracuse area.

• Mosaic Mall is an alternative for salon professionals who have the

goal of salon ownership.
• Mosaic Mall will provide hairstylists, nail technicians and massage
therapists the opportunity to operate a mini-salon with minimal
start-up capital expenditures.

1.2. Mission

Mosaic Mall's mission is to provide Syracuse with a diverse selection of

beauty and hair care professionals in one convenient location for all family
members.

• Establish Central NY's first salon mall

• Provide high quality suites
• Maintain long-term financial stability
• Provide access to a spectrum of beauty and personal
care professionals
• Maintain the highest levels of professional ethics
• Foster a progressive environment, which attracts talented
entrepreneurs
• Stay true to community commitment

3
 Mosaic Mall

1.3. Keys to Success

• Mosaic Mall will be located on the heavily traveled corridor of

Downtown Syracuse. Average daily traffic exceeds 20,000
vehicles.
• Mosaic Mall is attractive to salon professionals because the
professional pays a set monthly expense. The salon professional is
no longer required to work as a commissioned employee.
• Mosaic Mall gives salon professionals the opportunity to rent fully
equipped units. Rent includes the locked unit, utilities, and
insurance. Each salon professional will set his/her hours, set
his/her pricing, schedule appointments and purchase supplies.
• Salon malls have been established in several other states (i.e.
Maryland, Virginia, Ohio and Nevada). Central New York and
those immediately adjacent do not, as yet, have any salon malls.

1.4. Services

Mosaic Mall will lease fully equipped units to state

licensed beauty professionals. The standard
beauty salon lease will include private locking units
with telephone jacks, shampoo bowl, styling
station, hair dryer and styling chair. The benefits
of doing business at Mosaic Mall are: the
maintenance service of the common area, utilities
included in unit lease, professional liability
insurance, and on-site washer and dryer.

1.5. Distinguishing Aspects

• Upscale salon for women of color

• Partnership initiative for licensed professionals
• Community building for young women of Greater Syracuse area
• Provide internship with local beauty schools (OCM Boces, Phillips
Cosmetology Schools)

1.6. Service Business Analysis

Although Central New York has many barber shops, beauty shops, spas
and nail salons; the concept of a salon mall is new to New York
State. The advantage of Mosaic Mall is the privacy of secure, individual
leased unit mini-salon versus 'booth' rental.

4
 Mosaic Mall

1.7. Target Market Segmentation

Mosaic Mall is making suites available by the following segmentation. The

suites are segmented by potential use. Because there are approximately
3,000 licensed cosmetologists in Onondaga and surrounding counties, 35
suites will be devoted to hairstylists. With nail technicians growing at a
faster rate, we will look to devote more salons to nail technicians in the
future.

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Hair Stylist 5% 2,300 2,415 2,536 2,663 2,796 5.00%
Manicurist 12% 237 265 297 333 373 12.01%
Aestheticians 10% 123 135 149 164 180 9.99%
Massage Therapist 5% 390 410 431 453 476 5.11%
Barbers 1% 202 204 206 208 210 0.98%
Total 5.54% 3,252 3,429 3,619 3,821 4,035 5.54%

Target Market Analysis (Pie)

Hair Stylist
Manicurist
Aestheticians
Massage Therapist
Barbers

5
 Mosaic Mall

1.8. Competitive Edge

Mosaic Mall's competitive edge is that we are the first enterprise of this
kind in Central NY. All other salons are owned and operated by a few
individuals that either are sole proprietors or pay employees 50% to 60%
commission. Some owners prefer not to have employees, but rent out
remaining booths.

2. Company Summary

Mosaic Mall will establish the growing need of an upscale multicultural beauty
salon variety of qualified tenants in one convenient location. Mosaic Mall
offers independent beauty professionals the opportunity of Salon Ownership
without the expensive cost of overhead. Mosaic Mall is best described as a
mall of beauty salon professionals. The standard Mosaic Mall lease will include
private locking units with telephone jacks, shampoo bowl, styling station, hair
dryer, and styling chair. The benefits of doing business at Mosaic Mall are as
follows:

• Maintenance service of the common area

• Utilities included in the lease payment
• On-site coin operated washers and dryers.

The relationship between Mosaic Mall and potential applicants will be that of
landlord and tenant. The tenant will be responsible for registering their 'salon'
with the Division of Professional Regulation Board of Cosmetology and
Barbering and acquiring business licensure.

3. Start-up Summary

Equipment will be purchased to furnish each unit. The average cost of

equipment to furnish a unit is approximately $1,800. It is estimated that
we will have 50 units for rent; thus equipment cost is $90,000.
Construction of 50individual units and the common areas (including
restrooms and laundry facilities) has been estimated at $500,000. Other
expenses such as incorporation, legal and advertising come to $2,400.
The first month's rent and security totaled $8,000. Office and common
areas equipment and furnishings come to $6,000 in expensed equipment
and current assets. Total start-up requirements including cash on-
hand are estimated at $1,006,365.

6
 Mosaic Mall

Start-up Requirements

Start-up Expenses
Legal/Insurance/Consultants $2,365
Rent/Mortgage $8,000
Leasehold Improvements – $500,000
25Units Construction costs
Expensed Equipment $90,000
Interior Design $300,000
Other $20,000
Total Start-up Expenses $920,365

Start-up Assets
Cash Required $40,000
Other Current Assets $2,000
Long-term Assets $44,000
Total Assets $86,000

Total Requirements $1,006,365

7
 Mosaic Mall

Start-up Funding
Start-up Expenses to Fund $920,365
Start-up Assets to Fund $86,000
Total Funding Required $1,006,365

Assets
Non-cash Assets from Start-up $46,000
Cash Requirements from Start-up $40,000
Additional Cash Raised $0
Cash Balance on Starting Date $40,000
Total Assets $86,000

Liabilities and Capital

Liabilities
Current Borrowing $100,000
Long-term Liabilities $100,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $200,000

Capital

Planned Investment
Owner $5,000
Other $40,000
Additional Investment Requirement $761,365
Total Planned Investment $806,365

Loss at Start-up (Start-up Expenses) ($920,365)

Total Capital ($114,000)

Total Capital and Liabilities $86,000

Total Funding $1,006,365

8
 Mosaic Mall

Start-up

$1,000,000

$900,000

$800,000

$700,000

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

$0
Expenses Assets Investment Loans

4. Market Analysis Summary

Central New York has approximately 3,000 licensed cosmetologists, barbers,

nail technicians, and aestheticians.

Per the Encyclopedia of American Industries, Third Edition, Volume Two:

Service and Non-Manufacturing Industries, p110: "Hairdressing services have
proven to be virtually recession proof, as consumers traditionally cut back
on other discretionary expenses before decreasing their spending on personal
grooming."

According to the 1998-1999 Occupational Outlook Handbook, approximately

586,000 hairdressers, hair stylists and cosmetologists were employed in the
U.S. in 1996, with 43,000 jobs held by manicurists. The Occupational Outlook
Handbook expects employment in the cosmetology industry to increase as
fast as the national average for all professions through 2006. Manicurists are
expected to experience the fastest growth, as are other such specialists as
aestheticians and electrologists.

4.1. Target Market Segment Strategy

Based on the growth rate of potential customers, Mosaic Mall will need to
investigate the opportunity to open a second location to service potential
customers by year 2008. One proposed site of interest is Destiny USA.

9
 Mosaic Mall

4.2. Competition and Buying Patterns

The driving factor in choosing one type of arrangement over the other will
undoubtedly be cost. Owners of traditional salons face many challenges
when starting a new business. Purchasing equipment and finding a
location in a high traffic area with reasonable rent is often difficult.
Although 40% of beauty professionals own their own business, 60% are
employed in a privately owned shop.

The Solution is Mosaic Mall

We can offer an alternative to the commission environment. The qualities

of salon ownership with less paperwork will be appealing.

4.3. Syracuse Hair Care Statistics

Total Sales 2002

$5,869,000
NYS Census Bureau

Total Number of Salons 31

Total Payroll $2,353,000

Avg. Employees/location 5

Sales/location $189,000

Salary per employee $15,585

5. Strategy and Implementation Summary

The funding strategy as it relates to Mosaic Mall is as follows:

• Once contact is made with the various funding sources Management

will determine which opportunities would best fit our needs. The main
point of concern is the long-term interest rate. Management has
determined that interest rates 7% or less would best fit our financial
plan.

• Once funding issues have been resolved Management will turn its
attention to leasing the suites. Identifying potential tenants to sign a
one year lease is management's priority. The goal is to have
approximately 25 tenants committed by the grand opening; thus
placing Mosaic Mall in the position to break even within the 2nd quarter
of operation.

10
 Mosaic Mall

5.1. SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses
within the company, and describes the opportunities and threats facing
Mosaic Mall.

5.1.1. Strengths

• Extremely strong relationships with tenants.

• Professional and licensed tenants who are well trained and
customer attentive.
• An efficient, stylish facility.

5.1.2. Weaknesses

• The struggle to build brand equity.

• The inability to provide instant gratification.

5.1.3. Opportunities

• A growing segment of the market that is increasingly

dissatisfied by current hair care providers.
• Providing alternatives for small business owners.
• The ability to operate on lean overhead relative to
competitors.

5.1.4. Threats

• The introduction of a competitor to the Syracuse market

with an existing client base.
• Maintaining tenants within the facility.

6. Marketing Strategy

6.1. Tenants

o The initial marketing strategy requires creating a database of

licensed beauty professionals in the state. The list of individuals is
of public record. Once we have gathered addresses and phone
numbers, we will send out direct mail advertisements. We will
continue to update our database as information is made available.
o The second strategy, which will be ongoing, is to acquire tenants by
placing advertisements in Syracuse Herald Journal, Community
News, and on Mosaic Mall's Web page. In the Business
Opportunities section of the classifieds, Mosaic Mall will advertise
for licensed beauty professionals (i.e. cosmetologists nail
technicians and massage therapists).

11
 Mosaic Mall

o Finally an incentive program will be initiated with the area

cosmetology schools. We will offer on-site entrepreneur training,
as well as internships to recent graduates. It is believed that this
approach will introduce an alternative option for new professionals.

6.2. Customers

o Create website highlighting services and professionals

o Email marketing
o Direct Mail Advertising
o Yellow Page Advertising
o Radio/TV Advertising
o Customer incentive system – friend and family referral discounts
o Gift certificates/Coupons to charity organizations

7. Sales Strategy

The sales strategy of Mosaic Mall for Year 1 is upon opening to have
signed leases for 25 units. Each subsequent quarter increase signed
leases by five.

7.1. Sales Forecast

The sales forecast for Mosaic Mall is based on a steady increase in

sales in the first year. Sales increase by approximately 8% on the
Salon Suites. Because we have more units we expect to sign
approximately 1 lease per month after the start up. We anticipate
lease renewals for subsequent years thus resulting in 100%
occupancy.

Sales Forecast
Year 1 Year 2 Year 3 Year 4 Year 5
Sales
Total Sales $648,700 $700,596 $756,643 $817,174 $882,548

Direct Cost of Sales Year 1 Year 2 Year 3 Year 4 Year 5

Subtotal Direct Cost of Sales $149,595 $285,524 $94,533 $149,840 $66,283

12
 Mosaic Mall

Sales Monthly

$80,000

$70,000

$60,000

$50,000

$40,000 Salon Suites

Spa (Massage Therapy)
$30,000
Retail Stores
$20,000
Other (Nail/Facial Treatement)
$10,000

$0

Sales by Year

$900,000
$800,000
$700,000
$600,000 Salon Suites
$500,000 Spa (Massage Therapy)
$400,000
Retail Stores
$300,000
Other (Nail/Facial Treatement)
$200,000
$100,000
$0
Year 1 Year 2 Year 3 Year 4 Year 5

13
 Mosaic Mall

8. Operations

8.1. Reception

• Each client is greeted by a trained administrator

• Tenant notified of appointment arrival
• Scheduled clients directed to their Tenant
• Walk-in clients are referred to tenants scheduled for servicing for that day

8.2. Shortcuts Salon & Spa Software

• Walk-In Management & Employee Roster

• Appointment Book
• Stock & Service Management

9. Management Summary

Mosaic Mall will not require a full staff. In addition to the two principals noted
above, Mosaic Mall will recruit senior executives with specific functional skills
required of future operations. Candidates meeting qualifications will be added
as the business's operations merit.

Maintenance: Maintenance of common areas and snow removal will be

a contracted expense. The contract will explain in detail the services required
(i.e. mopping, cleaning bathrooms and trash removal).

Administrative duties will be shared by the partners. The partners will meet
regularly to assign new duties or reassign duties as needed. It has been
14
 Mosaic Mall

stated in partnership agreement that accounting duties will be rotated

quarterly between the partners.

Accounts Payable/Receivable: Collection and posting of rent. Disbursement of

loan, rent, maintenance and advertising payments. Penelope Daniels/Sharron
Pearson

Property Manager: Application process, lease agreement, first and security

deposit. Meet tenants monthly to address customer service issues.
Renegotiate agreements. Walk through site before closing to ensure site is
secure. Penelope Daniels/Sharron Pearson.

9.1. Management Team

The Mosaic Mall management is a key asset necessary to propel this

project forward. Combined, the two founders have over 50 years of
direct experience in general management, finance, marketing,
fundraising, and operations. The strength of the team stems from three
major factors:

Each team member commands substantial knowledge and skill In

addition to the theoretical knowledge each team member has a history of
achievements in her previous field.

The management team works well together: The management team was
borne of friendship and mutual respect. A strong ethic of teamwork
manifests itself in an open and cooperative work style.

Each team member is committed to baring the project to fruition: Each

team member will sacrifice more certain opportunities in order to
complete this project. Foregoing their positions-each at the respective
industry’s leading firms-shows the depth of the team’s commitment.

Penelope Daniels (President) and Sharron Pearson (Vice President),

management team of this future establishment, and authors of its
business plan, are members of a very prestigious group.

THERE IS A QUIET, YET POWERFUL REVOLUTION happening right now in

the small business world. Right before your eyes, African-American
women are making more strides and gains than ever before. According to
a recent survey, minority women-owned business composes one of the
fastest-growing segments of the U.S. economy. In 1996, 13% of the
nearly 8 million women-owned businesses in the nation were owned by
minority women (Asian, black, Hispanic, Native American/Alaska Native).
The number of firms increased 153% between 1987 and 1996, twice the
rate of all women-owned firms and three times faster than all U.S.
companies. They employed nearly 1.7 million people and generated some
$184.2 billion in sales annually.

In today's volatile and unpredictable workplace, no one expects to be with

the same company ten years from now. But with industries changing
15
 Mosaic Mall

radically before our eyes, it's unlikely that anyone will even have the
luxury of remaining in one industry throughout their career. Having a set
of transferable skills not only makes you more flexible in an age of
downsizing, but more marketable. Start-up companies are the
universities that prepare people. Many people seek out environments to
develop the skills and creativity they will need throughout their careers in
any industry. It is no longer practical to give up the idea of advancement
just waiting for someone to retire or move on. This opens the door for
entrepreneurship. Entrepreneurship is nothing new to African-American
Women. We are usually independent, priority set, mentally prepared, and
filled with the self-confidence that is needed.

One startling finding was that black women-owned firms lagged in

employment and sales growth behind businesses owned by Hispanic and
Asian women. "A significant reason for this may be because black women
business owners are far more likely to have started their businesses on a
part-time basis while holding down another job, and far more likely to
have started their business alone rather than with others," says NFWBO
Chair Lois E. Haber.

9.2. Personnel Plan

Because tenants will be responsible for their individual suites,

management will make periodic visits throughout the day to ensure
maintenance issues and tenants' concerns are being addressed. The front
door will be locked at 6:00 p.m. Maintenance will be contracted. The
contract will require cleaning restrooms and maintaining common areas.
Tenants are responsible for maintenance within the suites. We will
require approximately 16 hours per week @ approximately $7.00/hour.

The partners have over 20 years combined experience in accounting.

Bookkeeping will be handled by partners with periodic review by an
Accountant.

Personnel Plan
Year 1 Year 2 Year 3 Year 4 Year 5
Penelope Daniels/President, CEO $45,000 $48,600 $52,488 $56,687 $61,222
Sharron Pearson/Vice President $40,000 $43,200 $46,656 $50,388 $54,419
Total People 2 4 4 6 6

Total Payroll $85,000 $91,800 $99,144 $107,076 $115,641

President/CEO

Penelope Daniels is currently the Budget Analyst at Syracuse University; within

the Department of Student Support and Retention. Ms. Daniels reports directly to
the Vice President on all matters regarding the budget management of
approximately $10 million in allocations and expenses for the division with over
50 accounts. Ms. Daniels is also a member of the Finance Team with reports

16
 Mosaic Mall

directly to the Office of the Provost at Syracuse University. Additionally, she is

responsible for managing human resource functions, recruitment, and hires as
well as records management, and guides and directs staff in processing expenses
for programming. Ms. Daniels’ experience the following:

Interpret New York State tax law to

Utilize critical thinking and problem-
determine what should and should
solving skills to mediate conflict
not be taxed and communicate this
between and within student
information to staff members and
organizations, specifically conflicts
student organizations.
related to student organization
budgets and programs.
Process all New York State sale tax
forms and licensing agreements (BMI
Exercise sound judgment in
and ASCAP).
responding to the highly complex
budgetary and purchasing needs of
The second daughter of two small
student organizations.
business owners. Being introduced
to entrepreneurship at a young age,
Develop monthly budget reports for
I was privy to many ups and downs
approximately 30 accounts to be
in the world of small business.
submitted to the Associate Dean of
Students.

17
 Mosaic Mall

Vice President

Sharron Pearson is currently P.E.A.C.E. Inc.’s (a community action agency)

Public Relations and Marketing Director. The public relations department is
responsible for the promotion of agency programs and services throughout the
local community and Onondaga County. Promotion of the agency is done through
many avenues including community, business and school presentations,
marketing materials (newsletters, brochures, flyers and billboards), press
releases, community awareness programs, media relations, family friendly trade
shows and much more. Ms. Pearson develops marketing campaigns, public
relations avenues, damage abatement, internal and external correspondence, and
fund development. In addition, she has 20 years experience in advertising,
publishing, and fund development. Furthermore she has served as a creative
consultant for several agencies and organizations. Ms. Pearson is a suburb
planner and organizer with endless contacts and expertise within Onondaga
County. Ms Pearson’s experience includes the following:

Assumes all advertising, promotions, Utilizes every available

marketing, and public relations
responsibilities.
Coordinates market research,
marketing strategy, advertising,
promotion, product development,
and public relations activities.
Designs, organizes and coordinates
conferences, conventions, meetings,
seminars, exhibitions, and other
events.
Developed efficient and detailed
marketing strategy.
communication medium in an effort
to maintain the support of the
specific group upon whom the
organization’s success depends, such
as consumers, stockholders, or the
general public.
Evaluate advertising and promotion
programs for compatibility with
public relations efforts. Observes
social, economic, and political trends.
Handle special events such as
sponsorship of races, parties
introducing new products, or other
activities the organization supports in
order to gain public attention
through the press without
advertising directly.

18
 Mosaic Mall

10. Milestones

Obtain Financing
Secure Site
Obtain
Licenses/Permits
Complete
Architectural Design
Secure contractor
Finalize Construction
Complete Ad
Campaign
Interview Tenants
Salon Equipment Set
Up
Secure 25 Tenants
Opening Day
Mo. 1

Mo. 2

Mo. 3

Mo. 4

Mo. 5

Mo. 6

Mo. 7

Mo. 8

Mo. 9

Mo. 10

Mo. 11

Mo. 12
11. Financial Plan

The cash flow projections show a steady growth. The pace and rate is
consistent. At this rate this gives the Management the time needed to research
other locations, establish a strong position when researching financing related to
purchase the next location.

11.1. Important Assumptions

The General Assumptions assumes current interest rates are 5%, long term
interest rates are 7% and the tax rate is 30%.

19
 Mosaic Mall

General Assumptions
Year 1 Year 2 Year 3 Year 4 Year 5

Current Interest Rate 5.00% 5.00% 5.00% 5.00% 5.00%

Long-term Interest Rate 7.00% 7.00% 7.00% 7.00% 7.00%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0

11.2. Break-even Analysis

The break-even analysis of Mosaic Mall is an illustration of the number of

units which are required to be leased at an average rent of $1000/month.
With 25 units leased this will cover the fixed costs (i.e. rent, insurance,
security, maintenance), variable cost related, water and electricity and the
owners' salaries of $7,083.33/month total.

Break-even Analysis

Monthly Revenue Break-even $19,858

Assumptions:
Average Percent Variable Cost 23%
Estimated Monthly Fixed Cost $15,279

Break-even Analysis

$15,000

$10,000

$5,000

$0

($5,000)

($10,000)

($15,000)

($20,000)

$0 $6,000 $12,000 $18,000 $24,000 $30,000

Monthly break-even point

Break-even point = where line intersects with 0

20
 Mosaic Mall

11.3. Projected Profit and Loss

Projected profit and loss assumes long-term interest expense at 7%, it also
includes owners' salaries and taxes. Net profit is calculated after tax. After
several months of operation net profit growth from month to month ranges
from approximately 10%-20%. After Year 1 net profits continue growth in
the range of 10%-15%.

Pro Forma Profit and Loss

Year 1 Year 2 Year 3 Year 4 Year 5
Sales $648,700 $700,596 $756,643 $817,174 $882,548
Direct Cost of Sales $149,595 $285,524 $94,533 $149,840 $66,283
Other Costs of Sales $0
------------ ------------ ------------ ------------ ------------
Total Cost of Sales $149,595 $285,524 $94,533 $149,840 $66,283

Gross Margin $499,105 $415,072 $662,110 $667,334 $816,265

Gross Margin % 76.94% 59.25% 87.51% 81.66% 92.49%

Expenses
Payroll $85,000 $91,800 $99,144 $107,076 $115,641
Sales and Marketing and Other $3,600 $3,600 $3,600 $3,600 $3,600
Expenses
Depreciation $9,600 $9,600 $9,600 $9,600 $9,600
Mortgage $37,392 $52,701 $55,096 $57,452 $62,098
Utilities $29,450 $32,000 $35,000 $38,000 $41,000
Insurance $1,500 $2,000 $2,500 $3,000 $3,500
Maintenance Contract $6,000 $6,000 $6,000 $6,000 $6,000
Payroll Taxes $8,100 $11,700 $12,900 $13,200 $14,500
Other $2,700 $2,700 $2,700 $2,700 $2,700
------------ ------------ ------------ ------------ ------------
Total Operating Expenses $183,342 $212,101 $226,540 $240,628 $258,639

Profit Before Interest and Taxes $315,763 $202,971 $435,570 $426,706 $557,626
EBITDA $325,363 $212,571 $445,170 $436,306 $567,226
Interest Expense $11,545 $10,740 $9,900 $9,480 $9,480
Taxes Incurred $91,265 $57,669 $127,701 $125,168 $164,444

Net Profit $212,953 $134,562 $297,969 $292,059 $383,702

Net Profit/Sales 32.83% 19.21% 39.38% 35.74% 43.48%

21
 Mosaic Mall

Profit Monthly

$35,000

$30,000

$25,000

$20,000

$15,000

$10,000

$5,000

$0

Profit Yearly

$400,000

$350,000

$300,000

$250,000

$200,000

$150,000

$100,000

$50,000

$0
Year 1 Year 2 Year 3 Year 4 Year 5

22
 Mosaic Mall

Gross Margin Monthly

$70,000

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0

Gross Margin Yearly

$900,000

$800,000

$700,000

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

$0
Year 1 Year 2 Year 3 Year 4 Year 5

11.4. Projected Cash Flow

Cash flow begins with an adequate cash balance; is negative for four months,
then becomes positive. The owners will receive year-end dividend payouts
beginning in the second fiscal year. The long-term debt of will be repaid over

23
 Mosaic Mall

the course of eight years at an interest rate of 7%. The net cash flow is
listed before interest and taxes.

Pro Forma Cash Flow

Year 1 Year 2 Year 3 Year 4 Year 5
Cash Received

Cash from Operations

Cash Sales $648,700 $700,596 $756,643 $817,174 $882,548
Subtotal Cash from Operations $648,700 $700,596 $756,643 $817,174 $882,548

Additional Cash Received

Sales Tax, VAT, HST/GST $53,518 $57,799 $62,423 $67,417 $72,810
Received
New Current Borrowing $0 $0 $0 $0 $0
New Other Liabilities (interest- $0 $0 $0 $0 $0
free)
New Long-term Liabilities $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0
Subtotal Cash Received $702,218 $758,395 $819,066 $884,591 $955,358

Expenditures Year 1 Year 2 Year 3 Year 4 Year 5

Expenditures from Operations

Cash Spending $85,000 $91,800 $99,144 $107,076 $115,641
Bill Payments $302,678 $464,914 $359,358 $403,631 $376,468
Subtotal Spent on Operations $387,678 $556,714 $458,502 $510,706 $492,109

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid $0 $0 $0 $0 $0
Out
Principal Repayment of Current $0 $0 $0 $0 $0
Borrowing
Other Liabilities Principal $0 $0 $0 $0 $0
Repayment
Long-term Liabilities Principal $12,000 $12,000 $12,000 $0 $0
Repayment
Purchase Other Current Assets $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0
Dividends $0 $8,000 $12,000 $0 $0
Subtotal Cash Spent $399,678 $576,714 $482,502 $510,706 $492,109

Net Cash Flow $302,539 $181,681 $336,564 $373,884 $463,249

Cash Balance $342,539 $524,220 $860,785 $1,234,669 $1,697,918

24
 Mosaic Mall

Cash

$350,000

$300,000

$250,000

$200,000

$150,000 Net Cash Flow

Cash Balance
$100,000

$50,000

$0

11.5. Projected Balance Sheet

The nature of Mosaic Mall's business is to carry no inventory; salon unit

leases are paid current; thus there are no accounts receivables; and
limited long-term assets in equipment on the books are depreciated over five
years. In the future we may purchase a building for a 2nd location if demand
requires.

25
 Mosaic Mall

Pro Forma Balance Sheet

Year 1 Year 2 Year 3 Year 4 Year 5
Assets

Current Assets
Cash $342,539 $524,220 $860,785 $1,234,669 $1,697,918
Other Current Assets $2,000 $2,000 $2,000 $2,000 $2,000
Total Current Assets $344,539 $526,220 $862,785 $1,236,669 $1,699,918

Long-term Assets
Long-term Assets $44,000 $44,000 $44,000 $44,000 $44,000
Accumulated Depreciation $9,600 $19,200 $28,800 $38,400 $48,000
Total Long-term Assets $34,400 $24,800 $15,200 $5,600 ($4,000)
Total Assets $378,939 $551,020 $877,985 $1,242,269 $1,695,918

Liabilities and Capital Year 1 Year 2 Year 3 Year 4 Year 5

Current Liabilities
Accounts Payable $38,469 $38,189 $28,761 $33,570 $30,707
Current Borrowing $100,000 $100,000 $100,000 $100,000 $100,000
Other Current Liabilities $53,518 $111,317 $173,740 $241,157 $313,967
Subtotal Current Liabilities $191,987 $249,506 $302,501 $374,727 $444,674

Long-term Liabilities $88,000 $76,000 $64,000 $64,000 $64,000

Total Liabilities $279,987 $325,506 $366,501 $438,727 $508,674

Paid-in Capital $806,365 $806,365 $806,365 $806,365 $806,365

Retained Earnings ($920,365) ($715,412) ($592,851) ($294,882) ($2,823)
Earnings $212,953 $134,562 $297,969 $292,059 $383,702
Total Capital $98,953 $225,514 $511,483 $803,542 $1,187,244
Total Liabilities and Capital $378,939 $551,020 $877,985 $1,242,269 $1,695,918

Net Worth $98,953 $225,514 $511,483 $803,542 $1,187,244

11.6. Business Ratios

The ratios are not relevant to Mosaic Mall for several reasons. Mosaic Mall
does not possess inventory to be evaluated in that fashion. Mosaic Mall
possesses limited equipment long-term assets, but does not carry accounts
receivables. Because salon malls are fairly new there are no industry
indicators for comparisons; therefore the ratio table is not a good indicator.
The Industry Profiles shown correspond to SIC code 6512.0200, Operators of
Nonresidential Buildings, chosen because our company is sub-leasing
business real estate space to independent business entrepreneurs.

26
 Mosaic Mall

Ratio Analysis
Year 1 Year 2 Year 3 Year 4 Year 5 Ind.Profile
Sales Growth 0.00% 8.00% 8.00% 8.00% 8.00% 3.46%

Percent of Total Assets

Other Current Assets 0.53% 0.36% 0.23% 0.16% 0.12% 19.37%
Total Current Assets 90.92% 95.50% 98.27% 99.55% 100.24% 22.19%
Long-term Assets 9.08% 4.50% 1.73% 0.45% -0.24% 77.81%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Current Liabilities 50.66% 45.28% 34.45% 30.16% 26.22% 6.80%

Long-term Liabilities 23.22% 13.79% 7.29% 5.15% 3.77% 51.69%
Total Liabilities 73.89% 59.07% 41.74% 35.32% 29.99% 58.49%
Net Worth 26.11% 40.93% 58.26% 64.68% 70.01% 41.51%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Gross Margin 76.94% 59.25% 87.51% 81.66% 92.49% 100.00%
Selling, General & 80.50% 76.48% 75.05% 29.10% 28.99% 63.74%
Administrative Expenses
Advertising Expenses 0.00% 0.00% 0.00% 0.00% 0.00% 0.37%
Profit Before Interest and 48.68% 28.97% 57.57% 52.22% 63.18% 3.52%
Taxes

Main Ratios
Current 1.79 2.11 2.85 3.30 3.82 1.84
Quick 1.79 2.11 2.85 3.30 3.82 1.44
Total Debt to Total Assets 73.89% 59.07% 41.74% 35.32% 29.99% 68.83%
Pre-tax Return on Net Worth 307.44% 85.24% 83.22% 51.92% 46.17% 1.15%
Pre-tax Return on Assets 80.28% 34.89% 48.48% 33.59% 32.32% 3.68%

Additional Ratios Year 1 Year 2 Year 3 Year 4 Year 5

Net Profit Margin 32.83% 19.21% 39.38% 35.74% 43.48% n.a
Return on Equity 215.21% 59.67% 58.26% 36.35% 32.32% n.a

Activity Ratios
Accounts Payable Turnover 8.87 12.17 12.17 12.17 12.17 n.a
Payment Days 27 30 35 28 31 n.a
Total Asset Turnover 1.71 1.27 0.86 0.66 0.52 n.a

Debt Ratios
Debt to Net Worth 2.83 1.44 0.72 0.55 0.43 n.a
Current Liab. to Liab. 0.69 0.77 0.83 0.85 0.87 n.a

Liquidity Ratios
Net Working Capital $152,553 $276,714 $560,283 $861,942 $1,255,244 n.a
Interest Coverage 27.35 18.90 44.00 45.01 58.82 n.a

Additional Ratios
Assets to Sales 0.58 0.79 1.16 1.52 1.92 n.a
Current Debt/Total Assets 51% 45% 34% 30% 26% n.a
Acid Test 1.79 2.11 2.85 3.30 3.82 n.a
Sales/Net Worth 6.56 3.11 1.48 1.02 0.74 n.a

27
 Mosaic Mall

12. Exit Strategy

When interest rates rise and the real estate market starts turning “softer,” you
may ask yourself the question “Do I want to continue owning real estate, or
should I sell and consider other investment alternatives?” There are many wise
investment alternatives, but the problem with selling real estate to get into them
is that the capital gain tax will be triggered, and you will have less equity to
reinvest. There are, however, a few options that offer the ability to exit the real
estate market while reducing or avoiding the capital gain tax. Each option will be
reviewed with investors, and their perspective financial planners/executives. A
viable decision for all parties will be reached upon review of all options and/or
scenarios.

12.1. The 1031 Exchange

Internal Revenue Code Section 1031 applies to “property held for productive
use in a trade or business or for investment,” and it allows for the deferral of
capital gain tax if such property is exchanged solely for property of “like-
kind.” The broad definition of like kind can help investors in many ways.
Many investors exchange real estate all of their lives and leverage their
unused tax dollars to purchase real estate that generates greater and greater
returns. Once investors retire, they can then sell real estate and take the
cash, paying the lowest capital gain tax possible due to their income tax
retirement bracket.

12.2. The Tenancy-In-Common Investment

The “Tenancy in Common” concept allows individuals to own a fractional

interest in high grade commercial properties, such as a shopping center or
office building, and thereby opens the door to higher-valued and better-
located properties than an individual could afford independently. For
example, if an investor has $500,000 in exchange equity, it might be difficult
to find a 1031 replacement property with this value which would generate a
good return. With the “TIC” program, the investor can take the same
$500,000 and purchase a 5% tenancy-in common interest in an up and
coming retail center with a value of $10 million, co-owned with 19 other
investors. The investor can then enjoy a triple net leased, professionally
managed property and a monthly cash flow without any of the hassles of
property management.

12.3. An Installment Sale

An installment sale aka seller carry back note or seller financing, works best
for real estate investors who want to sell their real estate but don’t need a
lump sum payment. Instead of receiving a lump sum of money at the time of
sale, buyers pay the seller monthly income at a rate and term to be decided
by the seller. Taxes are not actually avoided nor totally deferred with a note;
they are due yearly based upon the amount of payments the seller receives.
Both the Private Annuity Trust and Charitable Remainder Trust are also
based upon this “money over time” concept. The tax benefit of installment
reporting is that because taxes are not due on a lump sum at the time of
sale, interest is earned on the deferred dollars over the years.

28
 Mosaic Mall

12.4. The Private Annuity Trust (PAT)

Allows an investor (referred to as the “annuitant”) to sell appreciated assets

to a specially structured irrevocable trust (trustees/beneficiaries are often the
heirs/family members) in return for a Private Annuity contract, which
provides a fixed payment stream of income over the annuitant’s life. Taxes
would then be deferred over the lifetime of the annuitant instead of due all at
once at the time of sale, but Treasury Regulations have now been proposed
that will eliminate the deferral of capital gain taxes from the sale of property
over the annuitant’s lifetime for all PATS created after October 18, 2006. It is
anticipated that the elimination of the capital gain tax deferral will greatly
reduce the popularity of the PAT, though it does still provide the benefit of
removing the asset out of the person’s estate.

13. Conclusion

Mosaic Mall is a perfect match for aspiring and independent cosmetologists who
are presently renting a space within a conventional salon and are desirous of
furthering their careers. Mosaic Mall will provide that opportunity for careers to
achieve the next level - business ownership and operating within the most
upscale, desirous, full service beauty suites in the Greater Syracuse area.

Mosaic Mall will be an upscale beauty mall destination providing fully contained
independent lease salon suites to be operated by licensed cosmetology
professionals. Each is furnished and equipped ready for business. The suites
design will optimize and fulfill the functional needs of the salon professional.

Unlike typical salons, Mosaic Mall is genuinely committed to promoting and

providing opportunities for personal and professional development of all
operators within our Salon Suites. An underlying Monogram Business philosophy
is that to be successful, a business must surround itself with successful people
and must assist in promoting continuing development of its team.

Rapid new tenant expansion, combined with a growing consumer appeal creates
a healthy outlook for the retail sector. Plenty of expansion opportunities remain
for small-specialized format retailers. Given the number of small markets, rural
areas, and urban and suburban pockets currently untapped or under-penetrated,
market saturation is a long way off for many sectors.

29
 Mosaic Mall

Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month Month 8 Month 9 Month 10 Month 11 Month 12
7
Sales
Total Sales $29,800 $36,400 $39,800 $44,300 $48,300 $52,000 $54,900 $59,900 $62,700 $69,300 $72,900 $78,400

Direct Cost of Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
Subtotal $7,290 $8,640 $9,390 $10,515 $11,355 $12,030 $12,705 $13,695 $14,235 $15,675 $16,455 $17,610
Direct Cost of
Sales

Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Penelope 0% $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750
Daniels/President, CEO
Sharron Pearson/Vice 0% $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,337
President
Total People 2 2 2 2 2 2 2 2 2 2 2 2

Total Payroll $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,087

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

Current Interest 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
Rate
Long-term Interest 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
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

i
 Mosaic Mall

Pro Forma Profit and Loss

Mo. 1 Mo. 2 Mo. 3 Mo. 4 Mo. 5 Mo. 6 Mo. 7 Mo. 8 Mo. 9 Mo. 10 Mo. 11 Mo. 12
$29,800 $36,400 $39,800 $44,300 $48,300 $52,000 $54,900 $59,900 $62,700 $69,300 $72,900 $78,400
Sales
$7,290 $8,640 $9,390 $10,515 $11,355 $12,030 $12,705 $13,695 $14,235 $15,675 $16,455 $17,610
Direct Cost of Sales
$7,290 $8,640 $9,390 $10,515 $11,355 $12,030 $12,705 $13,695 $14,235 $15,675 $16,455 $17,610
Total Cost of Sales

$22,510 $27,760 $30,410 $33,785 $36,945 $39,970 $42,195 $46,205 $48,465 $53,625 $56,445 $60,790
Gross Margin
75.54% 76.26% 76.41% 76.26% 76.49% 76.87% 76.86% 77.14% 77.30% 77.38% 77.43% 77.54%
Gross Margin %
Expenses
$7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,087
Payroll
$300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Other Expenses
$800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Depreciation
$3,116 $3,116 $3,116 $3,116 $3,116 $3,116 $3,116 $3,116 $3,116 $3,116 $3,116 $3,116
Mortgage
$1,400 $1,400 $1,400 $1,800 $2,100 $2,800 $2,800 $3,150 $3,150 $3,150 $3,150 $3,150
Utilities
$125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125
Insurance
$500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Maintenance
$675 $675 $675 $675 $675 $675 $675 $675 $675 $675 $675 $675
Payroll Taxes 15%
$225 $225 $225 $225 $225 $225 $225 $225 $225 $225 $225 $225
Other
$14,224 $14,224 $14,224 $14,624 $14,924 $15,624 $15,624 $15,974 $15,974 $15,974 $15,974 $15,978
Total Operating
Expenses
$8,286 $13,536 $16,186 $19,161 $22,021 $24,346 $26,571 $30,231 $32,491 $37,651 $40,471 $44,812
Profit Before Interest
and Taxes
$9,086 $14,336 $16,986 $19,961 $22,821 $25,146 $27,371 $31,031 $33,291 $38,451 $41,271 $45,612
EBITDA
$994 $988 $983 $977 $971 $965 $959 $953 $948 $942 $936 $930
Interest Expense
$2,188 $3,764 $4,561 $5,455 $6,315 $7,014 $7,684 $8,783 $9,463 $11,013 $11,861 $13,165
Taxes Incurred
$5,104 $8,783 $10,642 $12,729 $14,735 $16,367 $17,928 $20,494 $22,080 $25,697 $27,675 $30,717
Net Profit
17.13% 24.13% 26.74% 28.73% 30.51% 31.47% 32.66% 34.21% 35.22% 37.08% 37.96% 39.18%
Net Profit/Sales

ii
 Mosaic Mall

Pro Forma Cash Flow

Mo. 1 Mo. 2 Mo. 3 Mo. 4 Mo. 5 Mo. 6 Mo. 7 Mo. 8 Mo. 9 Mo. 10 Mo. 11 Mo. 12
Cash Received

Cash from
Operations
Cash Sales $29,800 $36,400 $39,800 $44,300 $48,300 $52,000 $54,900 $59,900 $62,700 $69,300 $72,900 $78,400
Subtotal Cash $29,800 $36,400 $39,800 $44,300 $48,300 $52,000 $54,900 $59,900 $62,700 $69,300 $72,900 $78,400
from Operations

Additional Cash
Received
Sales Tax, VAT, 8.25% $2,459 $3,003 $3,284 $3,655 $3,985 $4,290 $4,529 $4,942 $5,173 $5,717 $6,014 $6,468
HST/GST
Received
Subtotal Cash $32,259 $39,403 $43,084 $47,955 $52,285 $56,290 $59,429 $64,842 $67,873 $75,017 $78,914 $84,868
Received

Expenditures

Expenditures
from Operations
Cash Spending $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,087
Bill Payments $560 $16,910 $19,785 $21,355 $23,754 $25,751 $27,795 $29,170 $31,563 $32,836 $35,775 $37,424
Subtotal Spent on $7,643 $23,993 $26,868 $28,438 $30,837 $32,834 $34,878 $36,253 $38,646 $39,919 $42,858 $44,511
Operations
Long-term $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Liabilities
Principal
Repayment
Subtotal Cash $8,643 $24,993 $27,868 $29,438 $31,837 $33,834 $35,878 $37,253 $39,646 $40,919 $43,858 $45,511
Spent

Net Cash Flow $23,615 $14,410 $15,216 $18,517 $20,447 $22,456 $23,551 $27,589 $28,227 $34,098 $35,057 $39,357
Cash Balance $63,615 $78,025 $93,240 $111,757 $132,205 $154,661 $178,212 $205,801 $234,028 $268,126 $303,183 $342,539

iii
 Mosaic Mall

Pro Forma Balance Sheet

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting
Balances

Current
Assets
Cash $40,000 $63,615 $78,025 $93,240 $111,757 $132,205 $154,661 $178,212 $205,801 $234,028 $268,126 $303,183 $342,539
Other $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Current
Assets
Total Current $42,000 $65,615 $80,025 $95,240 $113,757 $134,205 $156,661 $180,212 $207,801 $236,028 $270,126 $305,183 $344,539
Assets

Long-term
Assets
Long-term $44,000 $44,000 $44,000 $44,000 $44,000 $44,000 $44,000 $44,000 $44,000 $44,000 $44,000 $44,000 $44,000
Assets
Accumulated $0 $800 $1,600 $2,400 $3,200 $4,000 $4,800 $5,600 $6,400 $7,200 $8,000 $8,800 $9,600
Depreciation
Total Long- $44,000 $43,200 $42,400 $41,600 $40,800 $40,000 $39,200 $38,400 $37,600 $36,800 $36,000 $35,200 $34,400
term Assets
Total Assets $86,000 $108,815 $122,425 $136,840 $154,557 $174,205 $195,861 $218,612 $245,401 $272,828 $306,126 $340,383 $378,939

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

Current
Liabilities
Accounts $0 $16,252 $19,076 $20,565 $22,898 $24,826 $26,825 $28,119 $30,472 $31,645 $34,530 $36,098 $38,469
Payable
Current $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
Borrowing
Other $0 $2,459 $5,462 $8,745 $12,400 $16,385 $20,675 $25,204 $30,146 $35,318 $41,036 $47,050 $53,518

iv
 Mosaic Mall
Current
Liabilities
Subtotal $100,000 $118,711 $124,537 $129,310 $135,298 $141,210 $147,500 $153,323 $160,617 $166,964 $175,565 $183,147 $191,987
Current
Liabilities

Long-term $100,000 $99,000 $98,000 $97,000 $96,000 $95,000 $94,000 $93,000 $92,000 $91,000 $90,000 $89,000 $88,000
Liabilities
Total $200,000 $217,711 $222,537 $226,310 $231,298 $236,210 $241,500 $246,323 $252,617 $257,964 $265,565 $272,147 $279,987
Liabilities

Paid-in $186,540 $186,540 $186,540 $186,540 $186,540 $186,540 $186,540 $186,540 $186,540 $186,540 $186,540 $186,540 $186,540
Capital
Retained ($300,540) ($300,540) ($300,540) ($300,540) ($300,540) ($300,540) ($300,540) ($300,540) ($300,540) ($300,540) ($300,540) ($300,540) ($300,540)
Earnings
Earnings $0 $5,104 $13,888 $24,530 $37,259 $51,994 $68,361 $86,289 $106,784 $128,864 $154,561 $182,235 $212,953
Total Capital ($114,000) ($108,896) ($100,112) ($89,470) ($76,741) ($62,006) ($45,639) ($27,711) ($7,216) $14,864 $40,561 $68,235 $98,953
Total $86,000 $108,815 $122,425 $136,840 $154,557 $174,205 $195,861 $218,612 $245,401 $272,828 $306,126 $340,383 $378,939
Liabilities
and Capital

Net Worth ($114,000) ($108,896) ($100,112) ($89,470) ($76,741) ($62,006) ($45,639) ($27,711) ($7,216) $14,864 $40,561 $68,235 $98,953