Executive Summary

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

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

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

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

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

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

The objectives of Crest Systems are to:

• Sell 8,000 units during the first year.

• Establish strong relationships with the VARs critical to sales.
• Build the software module business by 15% each year.
• Maintain effective communication with Promerit Systems in order to improve
product quality and customer satisfaction.

1.2 Keys to Success

The keys to success in Crest Systems are:

1. Offering inexpensive inventory control solutions that cost less than $5,000 to
implement.
2. Reliable and timely response to VARs' questions and requests.
3. A reliable administration that is ready to serve VARs, prepare accurate billing,
follow-up on orders and other documentation, and maintain a close watch on
expenses and collection of accounts receivable.

Company Summary
Crest Systems is a Value Added Reseller (VAR) that is focused on selling low-end
inventory software and hardware products. The company markets Promerit Engineering
software products to over 1,200 VARs that sell products in vertical markets. In addition,
Crest Systems will market the software product to warehouse systems VARs who are
looking for a low-end inventory software product.
2.1 Company Ownership
Richard Torres is the owner of Crest Systems. The company will be set up as a C
Corporation. It is expected that this form of incorporation will allow room for growth and
be an effective vehicle for acquiring additional capital in five to seven years.
2.2 Start-up Summary
The start-up cost of Crest Systems will consist primarily establishing an account
receivable system and communication system for salespeople. Richard Torres will invest
$50,000. He will also secure a $100,000 loan.

Start-up

Requirements

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

Start-up Assets
Cash Required $133,700
Other Current Assets $0
Long-term Assets $0
Total Assets $133,700

Total Requirements $150,000

Start-up Funding
Start-up Expenses to Fund $16,300
Start-up Assets to Fund $133,700
Total Funding Required $150,000

Assets
Non-cash Assets from Start-up $0
Cash Requirements from Start-up $133,700
Additional Cash Raised $0
Cash Balance on Starting Date $133,700
Total Assets $133,700

Liabilities and 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
Investor 1 $50,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $50,000

Loss at Start-up (Start-up Expenses) ($16,300)

Total Capital $33,700

Total Capital and Liabilities $133,700

Total Funding $150,000

Products
Crest Systems' products are as follows:
 • Promerit Inventory Basic.
• Software modules that integrate Promerit Inventory Basic.
• Data Collection Hardware.

We have a team of experienced and proven salespeople in marketing a company's

products to VARs that serve vertical markets.

Market Analysis Summary

There are thousands of small businesses that are dissatisfied with the choice of inventory
control products that are available to them. Most of these businesses exist below the
water line for software companies. Selling to a market that can only spend $5,000 on
an inventory control solution is considered too small a return for the sales activity.
If a salesperson can spend a day winning a $50,000 contract rather than a $5,000 contact,
she will disregard the smaller opportunity. Many sales organizations have overlooked this
opportunity. If a cost effective method can be established to attack this market, the sales
can be enormous.
It is Crest Systems plan to sell to the VARs that serve the vertical markets as well as the
VARs that sell warehouse products and services. Crest Systems will sell the hardware
directly to customers when the software is purchased by the vertical VARs' customer.
The company will use this opportunity to build purchasing relationships with businesses
with growing inventories.
4.1 Market Segmentation
Crest Systems will focus on two customer groups:
• Warehouse Products and Services VARs: These VARs offer warehouse
management hardware and software. Though their primary focus is on larger
contracts, an inexpensive product focused on the low end of the market will be
attractive if the payoff is large enough. The VARs retain $500 on each product
sold. There is no other software product that is focused on our target customers
that rewards better for the sale.
• Vertical Market VARs: These VARs traditional don't sell inventory management
products to their customers. Inventory control products are not their focus, rather
it is whatever item or product particular to that industry that is used in
manufacturing or assembly of their final product. Yet they have thousands of
customers. If the payoff is large enough, their access to the market would lead to
enormous sales. Like the warehouse product VARs, the vertical market VARs
would retain $500 on each product sold.
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Warehouse Products
15% 1,400 1,610 1,852 2,130 2,450 15.02%
VARs
Vertical Market
15% 1,100 1,265 1,455 1,673 1,924 15.00%
VARs
Total 15.01% 2,500 2,875 3,307 3,803 4,374 15.01%

Strategy and Implementation Summary

Crest Systems will aggressively market Promerit Inventory Basic to VARs. It is our
belief that the payoff to the VARs on each sale will make the product attractive. We will
train their salespeople so that they will be successful in demonstrating the products to
customers. This will be especially important with vertical market VARs that will not
normally offer software products to their customers.
5.1 Competitive Edge
Richard Torres is the competitive edge of Crest Systems. Richard has worked for Cycon
Systems for the past ten years. He served as the company's manager of sales to vertical
market VARs.
During the past five years Richard was responsible for over $15 million dollars worth of
sales to vertical market VARs. His strength is his customer relation skills and he has been
successful in expanding the number of vertical market VARs that bought Cycon System
products.
Another competitive edge for Crest Systems is the ability to create specialized software
modules for customers that will customize the software. he company believes that one
fourth of all software customers will request a customized module to be added to the
software after purchase.
5.2 Sales Strategy
Crest Systems' sales strategy is to take the first 60 days of operation to train VARs and
put the resources in place to facilitate sales. We anticipate that sales will begin during our
third month of operation.
5.2.1 Sales Forecast
The following is the sales forecast for the next three years.

Sales Forecast
Year 1 Year 2 Year 3
Sales
Promerit Inventory Basic $1,450,000 $1,700,000 $2,000,000
Hardware $909,000 $1,200,000 $1,500,000
Software Modules $129,000 $180,000 $220,000
Other $0 $0 $0
Total Sales $2,488,000 $3,080,000 $3,720,000

Direct Cost of Sales Year 1 Year 2 Year 3

Promerit Inventory Basic $1,087,000 $1,200,000 $1,400,000
Hardware $580,000 $770,000 $930,000
Software Modules $0 $0 $0
Other $0 $0 $0
Subtotal Direct Cost of Sales $1,667,000 $1,970,000 $2,330,000

Management Summary
Richard Torres will manage the day to day operations of Crest Systems.
6.1 Personnel Plan
The personnel plan for Crest Systems is as follows:
• Manager;
• Accounts Manager;
• Sales Staff (3);
• Software Engineer (1).
Crest Systems anticipates that another software engineer will be hired in September of
this year.

Personnel Plan
Year 1 Year 2 Year 3
Manager $60,000 $70,000 $80,000
Accounting Manager $42,000 $44,000 $46,000
Sales Staff $180,000 $200,000 $230,000
Software Engineers $85,000 $100,000 $104,000
Other $0 $0 $0
Total People 0 0 0

Total Payroll $367,000 $414,000 $460,000

Financial Plan
The following is the financial plan for Crest Systems.
7.1 Break-even Analysis
The monthly break-even point is shown below.
Break-even Analysis

Monthly Revenue Break-even $143,373

Assumptions:
Average Percent Variable Cost 67%
Estimated Monthly Fixed Cost $47,311
7.2 Projected Profit and Loss
The following table and charts will highlight projected profit and loss for the next three
years.
Pro Forma Profit and Loss
 Year 1 Year 2 Year 3
Sales $2,488,000 $3,080,000 $3,720,000
Direct Cost of Sales $1,667,000 $1,970,000 $2,330,000
Other Production Expenses $0 $0 $0
Total Cost of Sales $1,667,000 $1,970,000 $2,330,000

Gross Margin $821,000 $1,110,000 $1,390,000

Gross Margin % 33.00% 36.04% 37.37%

Expenses
Payroll $367,000 $414,000 $460,000
Sales and Marketing and Other
$120,000 $160,000 $200,000
Expenses
Depreciation $0 $0 $0
Leased Equipment $0 $0 $0
Utilities $1,680 $1,680 $1,680
Insurance $0 $0 $0
Rent $24,000 $24,000 $24,000
Payroll Taxes $55,050 $62,100 $69,000
Other $0 $0 $0

Total Operating Expenses $567,730 $661,780 $754,680

Profit Before Interest and Taxes $253,270 $448,220 $635,320

EBITDA $253,270 $448,220 $635,320
Interest Expense $8,903 $6,962 $4,936
Taxes Incurred $73,310 $132,378 $189,115

Net Profit $171,057 $308,881 $441,269

Net Profit/Sales 6.88% 10.03% 11.86%
7.3 Projected Cash Flow
The following table and chart highlight the projected cash flow for three years.
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received

Cash from Operations

Cash Sales $622,000 $770,000 $930,000
Cash from Receivables $1,330,125 $2,182,493 $2,652,154
Subtotal Cash from Operations $1,952,125 $2,952,493 $3,582,154

Additional Cash 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 $66,000 $0 $0
Subtotal Cash Received $2,018,125 $2,952,493 $3,582,154

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $367,000 $414,000 $460,000
Bill Payments $1,632,460 $2,480,866 $2,780,790
Subtotal Spent on Operations $1,999,460 $2,894,866 $3,240,790

Additional Cash 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 $20,256 $20,256 $20,256
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $2,019,716 $2,915,122 $3,261,046

Net Cash Flow ($1,591) $37,370 $321,108

Cash Balance $132,109 $169,480 $490,587
7.4 Projected Balance Sheet
The following table highlights the projected balance sheet for three years.

Pro Forma Balance Sheet

Year 1 Year 2 Year 3
Assets

Current Assets
Cash $132,109 $169,480 $490,587
Accounts Receivable $535,875 $663,382 $801,228
Other Current Assets $0 $0 $0
Total Current Assets $667,984 $832,862 $1,291,815

Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $667,984 $832,862 $1,291,815

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Accounts Payable $317,483 $193,736 $231,677
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $317,483 $193,736 $231,677

Long-term Liabilities $79,744 $59,488 $39,232

Total Liabilities $397,227 $253,224 $270,909

Paid-in Capital $116,000 $116,000 $116,000

Retained Earnings ($16,300) $154,757 $463,638
Earnings $171,057 $308,881 $441,269
Total Capital $270,757 $579,638 $1,020,907
Total Liabilities and Capital $667,984 $832,862 $1,291,815

Net Worth $270,757 $579,638 $1,020,907

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

Ratio Analysis
Industry
Year 1 Year 2 Year 3
Profile
Sales Growth 0.00% 23.79% 20.78% 5.80%

Percent of Total Assets

Accounts Receivable 80.22% 79.65% 62.02% 29.30%
Other Current Assets 0.00% 0.00% 0.00% 21.50%
Total Current Assets 100.00% 100.00% 100.00% 86.80%
Long-term Assets 0.00% 0.00% 0.00% 13.20%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 47.53% 23.26% 17.93% 43.70%

Long-term Liabilities 11.94% 7.14% 3.04% 11.20%
Total Liabilities 59.47% 30.40% 20.97% 54.90%
Net Worth 40.53% 69.60% 79.03% 45.10%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 33.00% 36.04% 37.37% 24.80%
Selling, General & Administrative
26.12% 26.01% 25.50% 15.60%
Expenses
Advertising Expenses 2.41% 2.60% 2.69% 0.50%
Profit Before Interest and Taxes 10.18% 14.55% 17.08% 2.70%

Main Ratios
Current 2.10 4.30 5.58 1.93
Quick 2.10 4.30 5.58 0.92
Total Debt to Total Assets 59.47% 30.40% 20.97% 54.90%
Pre-tax Return on Net Worth 90.25% 76.13% 61.75% 5.50%
Pre-tax Return on Assets 36.58% 52.98% 48.80% 12.20%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 6.88% 10.03% 11.86% n.a
Return on Equity 63.18% 53.29% 43.22% n.a

Activity Ratios
Accounts Receivable Turnover 3.48 3.48 3.48 n.a
Collection Days 55 95 96 n.a
Accounts Payable Turnover 6.14 12.17 12.17 n.a
Payment Days 27 40 28 n.a
Total Asset Turnover 3.72 3.70 2.88 n.a

Debt Ratios
Debt to Net Worth 1.47 0.44 0.27 n.a
Current Liab. to Liab. 0.80 0.77 0.86 n.a

Liquidity Ratios
Net Working Capital $350,501 $639,126 $1,060,139 n.a
Interest Coverage 28.45 64.38 128.71 n.a

Additional Ratios
Assets to Sales 0.27 0.27 0.35 n.a
Current Debt/Total Assets 48% 23% 18% n.a
Acid Test 0.42 0.87 2.12 n.a
Sales/Net Worth 9.19 5.31 3.64 n.a
Dividend Payout 0.00 0.00 0.00 n.a

Appendix
Sales Forecast
Month Month Month
Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
1 2 10
Sales
Promerit
Inventory 0% $0 $0 $70,000 $80,000 $120,000 $120,000 $160,000 $160,000 $160,000 $140,000
Basic
Hardware 0% $0 $0 $54,000 $60,000 $75,000 $75,000 $105,000 $105,000 $105,000 $80,000
Software
0% $0 $0 $0 $11,000 $13,000 $15,000 $15,000 $15,000 $15,000 $10,000
Modules
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total
$0 $0 $124,000 $151,000 $208,000 $210,000 $280,000 $280,000 $280,000 $230,000
Sales

Direct Month Month Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month
Cost of
1 2 10
Sales
Promerit
Inventory $0 $0 $57,000 $60,000 $90,000 $90,000 $120,000 $120,000 $120,000 $90,000
Basic
Hardware $0 $0 $36,000 $40,000 $50,000 $50,000 $63,000 $63,000 $63,000 $50,000
Software
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Modules
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal
Direct
$0 $0 $93,000 $100,000 $140,000 $140,000 $183,000 $183,000 $183,000 $140,000
Cost of
Sales

Personnel Plan
Month Month Month Month Month Month Month Month Month Month Mont
1 2 3 4 5 6 7 8 9 10 11
Manager 0% $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,00
Accounting
0% $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,50
Manager
Sales Staff 0% $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,0
Software
0% $5,000 $5,000 $5,000 $5,000 $5,000 $0 $10,000 $10,000 $10,000 $10,000 $10,0
Engineers
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total
0 0 0 0 0 0 0 0 0 0 0
People

Total
$28,500 $28,500 $28,500 $28,500 $28,500 $23,500 $33,500 $33,500 $33,500 $33,500 $33,5
Payroll

General Assumptions
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
1 2 3 4 5 6 7 8 9 10 11 12
Month
Current
Interest 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
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
30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Rate
Other 0 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Profit and Loss

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
Sales $0 $0 $124,000 $151,000 $208,000 $210,000 $280,000 $280,000 $280,000
Direct Cost
$0 $0 $93,000 $100,000 $140,000 $140,000 $183,000 $183,000 $183,000
of Sales
Other
Production $0 $0 $0 $0 $0 $0 $0 $0 $0
Expenses
Total Cost of
$0 $0 $93,000 $100,000 $140,000 $140,000 $183,000 $183,000 $183,000
Sales

Gross
$0 $0 $31,000 $51,000 $68,000 $70,000 $97,000 $97,000 $97,000
Margin
Gross
0.00% 0.00% 25.00% 33.77% 32.69% 33.33% 34.64% 34.64% 34.64%
Margin %

Expenses
Payroll $28,500 $28,500 $28,500 $28,500 $28,500 $23,500 $33,500 $33,500 $33,500
Sales and
Marketing
$10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
and Other
Expenses
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0
Leased
$0 $0 $0 $0 $0 $0 $0 $0 $0
Equipment
Utilities $140 $140 $140 $140 $140 $140 $140 $140 $140
Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Payroll
15% $4,275 $4,275 $4,275 $4,275 $4,275 $3,525 $5,025 $5,025 $5,025
Taxes
Other $0 $0 $0 $0 $0 $0 $0 $0 $0

Total
Operating $44,915 $44,915 $44,915 $44,915 $44,915 $39,165 $50,665 $50,665 $50,665
Expenses

Profit Before
Interest and ($44,915) ($44,915) ($13,915) $6,085 $23,085 $30,835 $46,335 $46,335 $46,335
Taxes
EBITDA ($44,915) ($44,915) ($13,915) $6,085 $23,085 $30,835 $46,335 $46,335 $46,335
Interest
$819 $805 $791 $777 $763 $749 $735 $721 $707
Expense
Taxes
($13,720) ($13,716) ($4,412) $1,592 $6,697 $9,026 $13,680 $13,684 $13,688
Incurred

Net Profit ($32,014) ($32,004) ($10,294) $3,716 $15,625 $21,060 $31,920 $31,930 $31,940
Net
0.00% 0.00% -8.30% 2.46% 7.51% 10.03% 11.40% 11.40% 11.41%
Profit/Sales

Pro Forma Cash Flow

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month
Cash
Received

Cash from
Operations
Cash Sales $0 $0 $31,000 $37,750 $52,000 $52,500 $70,000 $70,000 $70,00
Cash from
$0 $0 $0 $3,100 $93,675 $114,675 $156,050 $159,250 $210,0
Receivables
Subtotal
Cash from $0 $0 $31,000 $40,850 $145,675 $167,175 $226,050 $229,250 $280,0
Operations

Additional
Cash
Received
Sales Tax,
VAT,
0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0
HST/GST
Received
New Current
$0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
New Other
Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0
(interest-
free)
New Long-
term $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Sales of
Other
$0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Assets
Sales of
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
New
Investment $0 $0 $0 $66,000 $0 $0 $0 $0 $0
Received
Subtotal
Cash $0 $0 $31,000 $106,850 $145,675 $167,175 $226,050 $229,250 $280,0
Received

Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month

Expenditures
from
Operations
Cash
$28,500 $28,500 $28,500 $28,500 $28,500 $23,500 $33,500 $33,500 $33,50
Spending
Bill
$117 $3,514 $6,914 $106,227 $120,287 $163,927 $167,078 $214,580 $214,5
Payments
Subtotal
Spent on $28,617 $32,014 $35,414 $134,727 $148,787 $187,427 $200,578 $248,080 $248,0
Operations

Additional
Cash Spent
Sales Tax,
VAT,
$0 $0 $0 $0 $0 $0 $0 $0 $0
HST/GST
Paid Out
Principal
Repayment
$0 $0 $0 $0 $0 $0 $0 $0 $0
of Current
Borrowing
Other
Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0
Principal
Repayment
Long-term
Liabilities
$1,688 $1,688 $1,688 $1,688 $1,688 $1,688 $1,688 $1,688 $1,688
Principal
Repayment
Purchase $0 $0 $0 $0 $0 $0 $0 $0 $0
Other
Current
Assets
Purchase
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal
$30,305 $33,702 $37,102 $136,415 $150,475 $189,115 $202,266 $249,768 $249,7
Cash Spent

Net Cash
($30,305) ($33,702) ($6,102) ($29,565) ($4,800) ($21,940) $23,784 ($20,518) $30,24
Flow
Cash
$103,395 $69,693 $63,591 $34,026 $29,226 $7,286 $31,070 $10,553 $40,79
Balance

Pro Forma Balance Sheet

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 M
Starting
Assets
Balances

Current
Assets
Cash $133,700 $103,395 $69,693 $63,591 $34,026 $29,226 $7,286 $31,070 $10,553 $
Accounts
$0 $0 $0 $93,000 $203,150 $265,475 $308,300 $362,250 $413,000 $
Receivable
Other
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $
Assets
Total Current
$133,700 $103,395 $69,693 $156,591 $237,176 $294,701 $315,586 $393,320 $423,553 $
Assets

Long-term
Assets
Long-term
$0 $0 $0 $0 $0 $0 $0 $0 $0 $
Assets
Accumulated
$0 $0 $0 $0 $0 $0 $0 $0 $0 $
Depreciation
Total Long-
$0 $0 $0 $0 $0 $0 $0 $0 $0 $
term Assets
Total Assets $133,700 $103,395 $69,693 $156,591 $237,176 $294,701 $315,586 $393,320 $423,553 $

Liabilities
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 M
and Capital

Current
Liabilities
Accounts
$0 $3,397 $3,387 $102,268 $114,825 $158,412 $159,925 $207,427 $207,418 $
Payable
Current
$0 $0 $0 $0 $0 $0 $0 $0 $0 $
Borrowing
Other
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $
Liabilities
Subtotal
Current $0 $3,397 $3,387 $102,268 $114,825 $158,412 $159,925 $207,427 $207,418 $
Liabilities

Long-term
$100,000 $98,312 $96,624 $94,936 $93,248 $91,560 $89,872 $88,184 $86,496 $
Liabilities
Total
$100,000 $101,709 $100,011 $197,204 $208,073 $249,972 $249,797 $295,611 $293,914 $
Liabilities

Paid-in
$50,000 $50,000 $50,000 $50,000 $116,000 $116,000 $116,000 $116,000 $116,000 $
Capital
Retained
($16,300) ($16,300) ($16,300) ($16,300) ($16,300) ($16,300) ($16,300) ($16,300) ($16,300) ($
Earnings
Earnings $0 ($32,014) ($64,018) ($74,312) ($70,597) ($54,971) ($33,911) ($1,991) $29,939 $
Total Capital $33,700 $1,686 ($30,318) ($40,612) $29,103 $44,729 $65,789 $97,709 $129,639 $
Total
Liabilities $133,700 $103,395 $69,693 $156,591 $237,176 $294,701 $315,586 $393,320 $423,553 $
and Capital

Net Worth $33,700 $1,686 ($30,318) ($40,612) $29,103 $44,729 $65,789 $97,709 $129,639 $