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FlowChart of Data

Pro1 Pro2 Pro3


1 1 1

PL Detail
6 2

PL Summary
3 4

Cash Flow 5 Balance Sheet

1 Data is gathered from Assumptions Sheets for Product 1 (Pro1), Product 2 (Pro2)
and Product 3 (Pro3) in detailed summary sheet (PL Detail).
On PL Detail you will still be able to track all categories of expenses from Assumptions.
All Expenses/Revenues from different products are grouped by Years.
All Non-Allocated Fixed Costs (Operating Expenses) are added to the analysis.
2 Data from PL Detail is summarized in PL Summary. All major categories of
expenses are combined together into large groups. At this point we can make
a decision concerning the capital needed to finance the project.
3 As we use indirect method of the Cash Flow computation, it starts with Net Income.
Net Income for each year is the final result of PL Summary
4 Some information in the Balance Sheet (BalSheet) is based on our assumptions.
For example, the balance in Accounts Receivables will depend on the amount of
Sales that we forecasts for this year.
5 Because Cash is so crucial in business operations, we need to evaluate Cash Flow
Balance Sheet is one of the main sources of information.
6 We will have to reevaluate our assumptions if we see the shortage of cash in Cash Flow statement.
We might need some additional sources of cash to cover the shortages (if any).
w statement.
PAGE #
Business Plan Assumptions

Assumptions: Product/Service #1 - Aviation Fuel


Note: all raw data in the table below is marked with green color. All numbers in black are results of the formulas.

Secti Annual % of
on Growth YEAR 1 Sales
Sales
Product/Service #1: Aviation Fuel 1.1
Airline contract fuel @ 50,000 G/mo @ .10/g flowage fee 1.1.1 12.0% 1,068,000 48.5%
Avjet A based A/C @ 2000 g/mo @ 2.04; no price incr. 1.1.2 5.0% 48,960 2.2%
Avjet A transients @ 40,000 g/mo @ 2.04; no price incr. 1.1.3 10.0% 979,200 44.4%
Avgas @ 4500 g/mo @ 1.98; no price incr. 1.1.4 0.0% 106,920 4.9%
Total Sales Product #1 2,203,080 100.0%
Variable Costs (COGS): 1.2
Labor
Labor costs are fixed 1.2.1
Materials
Cost of fuel @ Avjet A $1.68 for Into-Plane Contracts 1.2.2 0.0% 1,008,000 45.8%
Cost of fuel @ Avjet A $1.68 (based A/C sales) 1.2.2 5.0% 40,320 1.8%
Cost of fuel @ Avjet A $1.68 (Transient A/C sales) 1.2.2 7.0% 806,400 36.6%
Cost of fuel @ Avgas $1.54 1.2.3 0.0% 83,160 3.8%
Total Materials 1,937,880
Credit Card/Bad debt charges on retail fuel sales 1.2.4 n/a 17,026 0.8%
Commissions/Direct sales Costs
A/C Commission Fuel Flowage fees @.02 1.2.5 10.0% 3,360 0.2%
Total Variable Costs 1,958,266 88.9%
Allocated Fixed Costs: 1.3
Production/Operations Salaries
Line Salaries= 6 FT linemen @ av7.35/hrX40hrX52 1.3.1 5.0% 91,728 4.2%
Line Salaries= 4 PT linemen @ av4.50/hrX15hrX52 1.3.1 5.0% 14,040 0.6%
Total Production/Operations Salaries 105,768
Insurance and benefits @ 15% for FT 1.3.1 5.0% 13,759 0.6%
Tools/Equipment Rental
Fuel truck rental and repair 4 trucks @$500/yr ea. 1.3.2 5.0% 2,000 0.1%
Production/Operations Supplies 1.3.3 5.0% 800 0.0%
R&D 1.3.4 0 0.0%
Other Product/Ops Expense 1.3.5 0 0.0%
Total Fixed Direct Costs 122,327 5.6%
Total Cost of Goods Sold 2,080,593 94.4%
Gross Profit Product/Service #1 122,487 5.6%

copyright Ralph A. Miller 12/08/2017 Page 3


PAGE #
Business Plan Assumptions

esults of the formulas.

% of % of % of % of
YEAR 2 Sales YEAR 3 Sales YEAR 4 Sales YEAR 5 Sales

1,196,160 49.2% 1,339,699 49.9% 1,500,463 50.6% 1,680,519 51.2%


51,408 2.1% 53,978 2.0% 56,677 1.9% 59,511 1.8%
1,077,120 44.3% 1,184,832 44.1% 1,303,315 43.9% 1,433,647 43.7%
106,920 4.4% 106,920 4.0% 106,920 3.6% 106,920 3.3%
2,431,608 100.0% 2,685,430 100.0% 2,967,376 100.0% 3,280,597 100.0%

0 0.0% 0 0.0% 0 0.0% 0 0.0%


42,336 1.7% 44,453 1.7% 46,675 1.6% 49,009 1.5%
862,848 35.5% 923,247 34.4% 987,875 33.3% 1,057,026 32.2%
83,160 3.4% 83,160 3.1% 83,160 2.8% 83,160 2.5%
988,344 1,050,860 1,117,710 1,189,195
18,532 0.8% 20,186 0.8% 22,004 0.7% 24,001 0.7%

3,696 0.2% 4,066 0.2% 4,472 0.2% 4,919 0.1%


1,010,572 41.6% 1,075,112 40.0% 1,144,186 38.6% 1,218,116 37.1%

96,314 4.0% 101,130 3.8% 106,187 3.6% 111,496 3.4%


14,742 0.6% 15,479 0.6% 16,253 0.5% 17,066 0.5%
111,056 116,609 122,440 128,562
14,447 0.6% 15,170 0.6% 15,928 0.5% 16,724 0.5%

2,100 0.1% 2,205 0.1% 2,315 0.1% 2,431 0.1%


840 0.0% 882 0.0% 926 0.0% 972 0.0%
0 0.0% 0 0.0% 0 0.0% 0 0.0%
0 0.0% 0 0.0% 0 0.0% 0 0.0%
128,444 5.3% 134,866 5.0% 141,609 4.8% 148,689 4.5%
1,139,015 46.8% 1,209,977 45.1% 1,285,795 43.3% 1,366,805 41.7%
1,292,593 53.2% 1,475,452 54.9% 1,681,581 56.7% 1,913,791 58.3%

copyright Ralph A. Miller 12/08/2017 Page 4


PAGE #
Business Plan Assumptions

Assumptions: Product/Service #2: Air Charter


Note: all raw data in the table below is marked with green color. All numbers in black are results of the formulas.

Secti Annual
on Growth YEAR 1
Sales
Product/Service #2: Air Charter 2.1
Contract Flying - NASA // C402 100days @ $375 + $275/hr (est 150hrs) 2.1.1 5.0% 78,750
Contract Flying - Navy // 3missions @ $7000 (est 60 Hrs 402) 2.1.2 5.0% 21,000
Contract Flying - Shipyard// 30 trips NGU-RIC@$260 (est 45 hrs Aztec) 2.1.3 5.0% 7,800
Contract Flying - Banks// 30 check runs@$400 (est 60hrs Aztec/402) 2.1.4 5.0% 12,000
Air Taxi on demand800hrs ME@$220, 850hrs SE@$90 2.1.5 5.0% 252,500
Total Sales Product #2 372,050
Variable Costs (COGS): 2.2
Labor
Labor= Pilot variable @ $15/hr ME, $10/hr SE 2.2.1 5.0% 15,725
Materials
402A/C operating costs @ $60 fuel; $50 maint; $30 Eng Res=$140X540hrs 2.2.2 5.0% 75,600
AztecA/C operating costs @ $50 fuel; $40 maint; $25 Eng Res=$115X575 2.2.3 5.0% 66,125
SEA/C operating costs @ $25 fuel; $20 maint; $15 Eng Res=$60X750 2.2.4 5.0% 51,000
Navy contract travel/perdiem costs// 3missions X 1000 2.2.5 5.0% 3,000
Landing fees; Tie Downs; Pilot Misc Charter Expenses@ 4%Xcharters 2.2.6 5.0% 10,100
Total Materials 205,825
Credit Card Charges/Bad debt charges on Air taxi 2.2.7 5.0% 3,788
Total Variable Costs 225,338
Allocated Fixed Costs: 2.3
Production/Operations Salaries

Charter Dept. Salaries= 3FT Pilots @$15,000 base, 2 dispatchers @$14,000ea. 2.3.1 5.0% 73,000
Insurance and benefits @ 15% for FT 2.3.1 5.0% 10,950
Production/Operations Supplies
Charts, Equipment, Supplies 2.3.2 5.0% 2,500
Advertising
Advertising, Charter Dept. @ 7% X Charter Gross 2.3.3 5.0% 9,000
Other Product/Ops Expense, Interest
Other Charter Dept Expense, Interest on Aircraft 2.3.4 42,000
Total Fixed Direct Costs 137,450
Total Cost of Goods Sold 362,788
Gross Profit Product/Service #2 9,263

copyright Ralph A. Miller 12/08/2017 Page 5


PAGE #
Business Plan Assumptions

ults of the formulas.

% of % of % of % of % of
Sales YEAR 2 Sales YEAR 3 Sales YEAR 4 Sales YEAR 5 Sales

21.2% 82,688 21.2% 86,822 21.2% 91,163 21.2% 95,721 21.2%


5.6% 22,050 5.6% 23,153 5.6% 24,310 5.6% 25,526 5.6%
2.1% 8,190 2.1% 8,600 2.1% 9,029 2.1% 9,481 2.1%
3.2% 12,600 3.2% 13,230 3.2% 13,892 3.2% 14,586 3.2%
67.9% 265,125 67.9% 278,381 67.9% 292,300 67.9% 306,915 67.9%
100.0% 390,653 100.0% 410,185 100.0% 430,694 100.0% 452,229 100.0%

4.2% 16,511 4.2% 17,337 4.2% 18,204 4.2% 19,114 4.2%

20.3% 79,380 20.3% 83,349 20.3% 87,516 20.3% 91,892 20.3%


17.8% 69,431 17.8% 72,903 17.8% 76,548 17.8% 80,375 17.8%
13.7% 53,550 13.7% 56,228 13.7% 59,039 13.7% 61,991 13.7%
0.8% 3,150 0.8% 3,308 0.8% 3,473 0.8% 3,647 0.8%
2.7% 10,605 2.7% 11,135 2.7% 11,692 2.7% 12,277 2.7%
55.3% 216,116 55.3% 226,922 55.3% 238,268 55.3% 250,182 55.3%
1.0% 3,977 1.0% 4,176 1.0% 4,385 1.0% 4,604 1.0%
60.6% 236,604 60.6% 248,435 60.6% 260,856 60.6% 273,899 60.6%

19.6% 76,650 19.6% 80,483 19.6% 84,507 19.6% 88,732 19.6%


2.9% 11,498 2.9% 12,072 2.9% 12,676 2.9% 13,310 2.9%

0.7% 2,625 0.7% 2,756 0.7% 2,894 0.7% 3,039 0.7%

2.4% 9,450 2.4% 9,923 2.4% 10,419 2.4% 10,940 2.4%

11.3% 25,200 6.5% 8,400 2.0% 0 0.0% 0 0.0%


36.9% 125,423 32.1% 113,634 27.7% 110,495 25.7% 116,020 25.7%
97.5% 362,027 92.7% 362,068 88.3% 371,352 86.2% 389,919 86.2%
2.5% 28,626 7.3% 48,117 11.7% 59,343 13.8% 62,310 13.8%

copyright Ralph A. Miller 12/08/2017 Page 6


PAGE #
Business Plan Assumptions

Assumptions: Product/Service #3: A/C Sales


Note: all raw data in the table below is marked with green color. All numbers in black are results of the formulas.

Secti Annual
on Growth YEAR 1
Sales
Product/Service #3: A/C Sales 3.1
New Twin engine Corporate 1 @ $500,000 (+ann. Incr. Of 1 up to 3/year) 3.1.1 500,000
New Single Engine HP 1 @ 200,000 (+ann. Incr. Of 1 up to 3/year) 3.1.2 200,000
Used A/C sales 4 @ 150,000 3.1.3 600,000
Brokerage Sales 4 @ 10,000 net 3.1.4 40,000
Total Sales Product #3 1,340,000
Variable Costs (COGS): 3.2
Labor
Materials
New Twin Engine @ .87XSales 3.2.1 435,000
New Single Engine HP @ .87XSales 3.2.2 174,000
Used A/C sales @ .83XSales 3.2.3 498,000
Total Materials 1,107,000
Commissions/Direct Sales Costs
Sales Commissions 3.2.4 23,300
Total Variable Costs 1,130,300
Allocated Fixed Costs: 3.3
Production/Operations Salaries
Sales Person Base salary 3.3.1 30,000
Insurance and benefits @ 15% for FT 3.3.1 4,500
Advertising
A/C Sales Dept Advertising 3.3.2 25,000
Other Product/Ops Expense
Interest on Inventory A/C 3.3.3 7,500
A/C Sales Dept Travel/Entertainment Expense 3.3.4 20,000
Trade shows 3.3.5 12,000
Total Other Product/Ops Expense 39,500
Production/Operations Supplies
Other Sales Dept Expenses 3.3.6 5,000
Total Fixed Direct Costs 104,000
Total Cost of Goods Sold 1,234,300
Gross Profit Product/Service #3 105,700

copyright Ralph A. Miller 12/08/2017 Page 7


PAGE #
Business Plan Assumptions

ults of the formulas.

% of % of % of % of % of
Sales YEAR 2 Sales YEAR 3 Sales YEAR 4 Sales YEAR 5 Sales

37.3% 1,000,000 49.0% 1,500,000 54.7% 1,500,000 54.7% 1,500,000 54.7%


14.9% 400,000 19.6% 600,000 21.9% 600,000 21.9% 600,000 21.9%
44.8% 600,000 29.4% 600,000 21.9% 600,000 21.9% 600,000 21.9%
3.0% 40,000 2.0% 40,000 1.5% 40,000 1.5% 40,000 1.5%
100.0% 2,040,000 100.0% 2,740,000 100.0% 2,740,000 100.0% 2,740,000 100.0%

32.5% 870,000 42.6% 1,305,000 47.6% 1,305,000 47.6% 1,305,000 47.6%


13.0% 348,000 17.1% 522,000 19.1% 522,000 19.1% 522,000 19.1%
37.2% 498,000 24.4% 498,000 18.2% 498,000 18.2% 498,000 18.2%
82.6% 1,716,000 84.1% 2,325,000 84.9% 2,325,000 84.9% 2,325,000 84.9%

1.7% 32,400 1.6% 41,500 1.5% 41,500 1.5% 41,500 1.5%


84.4% 1,748,400 85.7% 2,366,500 86.4% 2,366,500 86.4% 2,366,500 86.4%

2.2% 30,000 1.5% 30,000 1.1% 30,000 1.1% 30,000 1.1%


0.3% 4,500 0.2% 4,500 0.2% 4,500 0.2% 4,500 0.2%

1.9% 30,000 1.5% 30,000 1.1% 30,000 1.1% 30,000 1.1%

0.6% 7,875 0.4% 8,269 0.3% 8,682 0.3% 9,116 0.3%


1.5% 25,000 1.2% 25,000 0.9% 30,000 1.1% 30,000 1.1%
0.9% 15,000 0.7% 15,000 0.5% 15,000 0.5% 15,000 0.5%
47,875 48,269 53,682 54,116

0.4% 5,000 0.2% 5,000 0.2% 5,000 0.2% 5,000 0.2%


7.8% 117,375 5.8% 117,769 4.3% 123,182 4.5% 123,616 4.5%
92.1% 1,865,775 91.5% 2,484,269 90.7% 2,489,682 90.9% 2,490,116 90.9%
7.9% 174,225 8.5% 255,731 9.3% 250,318 9.1% 249,884 9.1%

copyright Ralph A. Miller 12/08/2017 Page 8


Business Plan Proforma P/L Detail PAGE #

Detailed Proforma P/L


Year 1 Details
Show Hide
Year 1 Details
Year 1 Details Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10
[seasonal factor] 6% 6% 6% 8% 9% 9% 11% 11% 9% 9%
+ Sales:
Product/Service #1 132,185 132,185 132,185 176,246 198,277 198,277 242,339 242,339 198,277 198,277
Product/Service #2 22,323 22,323 22,323 29,764 33,485 33,485 40,926 40,926 33,485 33,485
Product/Service #3
Total Sales 154,508 154,508 154,508 206,010 231,762 231,762 283,264 283,264 231,762 231,762
- Variable Costs (COGS):
Labor 944 944 944 1,258 1,415 1,415 1,730 1,730 1,415 1,415
Marterials/Cost of sales A/C
Materials/Cost of Sales Other 128,622 128,622 128,622 171,496 192,933 192,933 235,808 235,808 192,933 192,933
Commissions/Direct sales Costs 202 202 202 269 302 302 370 370 302 302
Commissions A/C Sales
Credit card/Bad Debt charges
Total Variable Costs 129,767 129,767 129,767 173,023 194,651 194,651 237,907 237,907 194,651 194,651
- Allocated Fixed Costs:
Production/Operations Salaries 17,397 17,397 17,397 17,397 17,397 17,397 17,397 17,397 17,397 17,397
Insurance and benefits 2,434 2,434 2,434 2,434 2,434 2,434 2,434 2,434 2,434 2,434
Tools/Equipment Rental 167 167 167 167 167 167 167 167 167 167
Production/Operations Supplies 692 692 692 692 692 692 692 692 692 692
Advertising 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833
Other Product/Ops ExpenseA/C Interest 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500
Other Product/Ops Expense 3,292 3,292 3,292 3,292 3,292 3,292 3,292 3,292 3,292 3,292
Total Fixed Direct Costs 30,315 30,315 30,315 30,315 30,315 30,315 30,315 30,315 30,315 30,315
Total Cost of Goods Sold 160,082 160,082 160,082 203,338 224,966 224,966 268,222 268,222 224,966 224,966
= Gross Profit -5,574 -5,574 -5,574 2,672 6,796 6,796 15,043 15,043 6,796 6,796

Operating Expenses:

copyright Ralph A. Miller 12/08/2017 Page 9


Business Plan Proforma P/L Detail PAGE #

Year 1 Details Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10
Corporate Marketing:
Salaries & benefits
Advertising (or departmental)
Trade Shows (or departmental)
Entertainment/PR (or departmental) 125 125 125 125 125 125 125 125 125 125
Design/Printing (or departmental) 100 100 100 100 100 100 100 100 100 100
Travel (or departmental) 0 0 0 0 0 0 0 0 0 0
Marketing Overhd/sales offices 0 0 0 0 0 0 0 0 0 0
Total Corp. Marketing Expenses 225 225 225 225 225 225 225 225 225 225
G & A:
Officers salaries/benefits 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Administrative salaries 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667
Rent/headquarters Overhead 600 600 600 600 600 600 600 600 600 600
Consultants/Professional Fees 208 208 208 208 208 208 208 208 208 208
Bad Debts @ 1% Prod #2 Rev 310 310 310 310 310 310 310 310 310 310
Bank Charges (in variable exp.) 0 0 0 0 0 0 0 0 0 0
Taxes (other than income) 583 583 583 583 583 583 583 583 583 583
Office expense +5%yr. 292 292 292 292 292 292 292 292 292 292
Licenses 100 100 100 100 100 100 100 100 100 100
Telephone +7%yr 200 200 200 200 200 200 200 200 200 200
Utilities +3%yr 533 533 533 533 533 533 533 533 533 533
Donations
Other G&A
Total G&A Expenses 9,493 9,493 9,493 9,493 9,493 9,493 9,493 9,493 9,493 9,493
Depreciation (A/C @5yr SL) 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000
- Total Operating Expenses: 16,718 16,718 16,718 16,718 16,718 16,718 16,718 16,718 16,718 16,718
= Operating Income ### ### ### ### -9,923 -9,923 -1,676 -1,676 -9,923 -9,923

- Non-Operating Income/Expense
Interest Income 0 0 0 0 0 0 0 0 0 0
Interest Expense 0 0 0 0 0 0 0 0 0 0
= Income Before Taxes ### ### ### ### -9,923 -9,923 -1,676 -1,676 -9,923 -9,923
- Taxes on Income

copyright Ralph A. Miller 12/08/2017 Page 10


Business Plan Proforma P/L Detail PAGE #

Year 1 Details Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10
= Net Income After Taxes ### ### ### ### -9,923 -9,923 -1,676 -1,676 -9,923 -9,923
Cumulative Profit from Operations ### ### ### ### ### ### ### ### ### ###

copyright Ralph A. Miller 12/08/2017 Page 11


Business Plan Proforma P/L Detail PAGE #

Detailed Proforma P/L


Year 1 Details
Show Hide
Year 1 Details
Year 1 Details Month Month Year 1 Year 2 Year 3 Year 4 Year 5
11 12 Total Total Total Total Total
[seasonal factor] 8% 8% 100%
+ Sales:
Product/Service #1 176,246 176,246 2,203,080 2,431,608 2,685,430 2,967,376 3,280,597
Product/Service #2 29,764 29,764 372,050 390,653 410,185 430,694 452,229
Product/Service #3 1,340,000 1,340,000 2,040,000 2,740,000 2,740,000 2,740,000
Total Sales 206,010 1,546,010 3,915,130 4,862,261 5,835,615 6,138,070 6,472,826
- Variable Costs (COGS):
Labor 1,258 1,258 15,725 16,511 17,337 18,204 19,114
Marterials/Cost of sales A/C 1,107,000 1,107,000 1,716,000 2,325,000 2,325,000 2,325,000
Materials/Cost of Sales Other 171,496 171,496 2,143,705 1,204,460 1,277,782 1,355,978 1,439,377
Commissions/Direct sales Costs 269 269 3,360 3,696 4,066 4,472 4,919
Commissions A/C Sales 23,300 23,300 32,400 41,500 41,500 41,500
Credit card/Bad Debt charges 20,814 20,814 22,509 24,362 26,388 28,605
Total Variable Costs 173,023 1,324,137 3,313,904 2,995,576 3,690,046 3,771,542 3,858,515
- Allocated Fixed Costs:
Production/Operations Salaries 17,397 17,397 208,768 217,706 227,092 236,946 247,294
Insurance and benefits 2,434 2,434 29,209 30,445 31,742 33,104 34,534
Tools/Equipment Rental 167 167 2,000 2,100 2,205 2,315 2,431
Production/Operations Supplies 692 692 8,300 8,465 8,638 8,820 9,011
Advertising 2,833 2,833 34,000 39,450 39,923 40,419 40,940
Other Product/Ops ExpenseA/C Interest 3,500 3,500 42,000 25,200 8,400 0 0
Other Product/Ops Expense 3,292 3,292 39,500 47,875 48,269 53,682 54,116
Total Fixed Direct Costs 30,315 30,315 363,777 371,241 366,268 375,287 388,326
Total Cost of Goods Sold 203,338 1,354,452 3,677,681 3,366,817 4,056,314 4,146,829 4,246,841
= Gross Profit 2,672 191,559 237,449 1,495,443 1,779,300 1,991,241 2,225,985

Operating Expenses:

copyright Ralph A. Miller 12/08/2017 Page 12


Business Plan Proforma P/L Detail PAGE #

Year 1 Details Month Month Year 1 Year 2 Year 3 Year 4 Year 5


11 12 Total Total Total Total Total
Corporate Marketing:
Salaries & benefits
Advertising (or departmental)
Trade Shows (or departmental)
Entertainment/PR (or departmental) 125 125 1,500 2000 2200 2500 3000
Design/Printing (or departmental) 100 100 1,200 2500 2500 2500 2500
Travel (or departmental) 0 0 0 2500 3000 3500 4000
Marketing Overhd/sales offices 0 0 0
Total Corp. Marketing Expenses 225 225 2,700 7,000 7,700 8,500 9,500
G & A:
Officers salaries/benefits 5,000 5,000 60,000 63,000 66,150 69,458 72,930
Administrative salaries 1,667 1,667 20,000 21,000 22,050 23,153 24,310
Rent/headquarters Overhead 600 600 7,200 7,200 7,200 7,200 7,200
Consultants/Professional Fees 208 208 2,500 2,000 2,100 2,205 2,315
Bad Debts @ 1% Prod #2 Rev 310 310 3,721 3,907 4,102 4,307 4,522
Bank Charges (in variable exp.) 0 0 0 0 0 0 0
Taxes (other than income) 583 583 7,000 7,000 7,000 7,000 7,000
Office expense +5%yr. 292 292 3,500 3,675 3,859 4,052 4,254
Licenses 100 100 1,200 1,200 1,200 1,200 1,200
Telephone +7%yr 200 200 2,400 2,568 2,748 2,940 3,146
Utilities +3%yr 533 533 6,400 6,592 6,790 6,993 7,203
Donations 0
Other G&A 0
Total G&A Expenses 9,493 9,493 113,921 118,142 123,198 128,507 134,081
Depreciation (A/C @5yr SL) 7,000 7,000 84,000 84,000 84,000 84,000 84,000
- Total Operating Expenses: 16,718 16,718 200,621 209,142 214,898 221,007 227,581
= Operating Income -14,046 174,840 36,829 1,286,302 1,564,402 1,770,234 1,998,404

- Non-Operating Income/Expense
Interest Income 0 0 0
Interest Expense 0 0 0
= Income Before Taxes -14,046 174,840 36,829 1,286,302 1,564,402 1,770,234 1,998,404
- Taxes on Income 5,524 450,206 547,541 619,582 699,441

copyright Ralph A. Miller 12/08/2017 Page 13


Business Plan Proforma P/L Detail PAGE #

Year 1 Details Month Month Year 1 Year 2 Year 3 Year 4 Year 5


11 12 Total Total Total Total Total
= Net Income After Taxes -14,046 174,840 31,304 836,096 1,016,861 1,150,652 1,298,962
Cumulative Profit from Operations ### 36,829 31,304 867,400 1,884,262 3,034,914 4,333,876

copyright Ralph A. Miller 12/08/2017 Page 14


Business Plan Proforma Financials PAGE #

Proforma P/L Summary


% of total % of total % of total
Year 1 Sales Year 2 Sales Year 3 Sales Year 4
Sales
Product/Service #1 2,203,080 56.3% 2,431,608 50.0% 2,685,430 46.0% 2,967,376
Product/Service #2 372,050 9.5% 390,653 8.0% 410,185 7.0% 430,694
Product/Service #3 1,340,000 34.2% 2,040,000 42.0% 2,740,000 47.0% 2,740,000
Total Sales 3,915,130 100.0% 4,862,261 100.0% 5,835,615 100.0% 6,138,070

Variable Costs (COGS):


Labor 15,725 0.4% 16,511 0.3% 17,337 0.3% 18,204
Materials 3,250,705 83.0% 2,920,460 60.1% 3,602,782 61.7% 3,680,978
Direct Overhead 0 0.0%
Commissions/Direct sales Costs 26,660 0.7% 36,096 0.7% 45,566 0.8% 45,972
Credit card/Bad Debt charges 20,814 0.5% 22,509 0.5% 24,362 0.4% 26,388
Total Variable Costs 3,313,904 84.6% 2,995,576 61.6% 3,690,046 63.2% 3,771,542
Allocated Fixed Costs 363,777 9.3% 371,241 7.6% 366,268 6.3% 375,287
Total Cost of Goods Sold 3,677,681 93.9% 3,366,817 69.2% 4,056,314 69.5% 4,146,829
Gross Profit 237,449 6.1% 1,495,443 30.8% 1,779,300 30.5% 1,991,241

Operating Expenses:
Marketing 2,700 0.1% 7,000 0.1% 7,700 0.1% 8,500
G&A 113,921 2.9% 118,142 2.4% 123,198 2.1% 128,507
Depreciation [A/C] 84,000 2.1% 84,000 1.7% 84,000 1.4% 84,000
Total Operating Expenses 200,621 5.1% 209,142 4.3% 214,898 3.7% 221,007

Non-Operating Income/Expense
Interest Income 0 0 0 0
Interest Expense 0 0 0 0
Income Before Taxes 36,829 0.9% 1,286,302 26.5% 1,564,402 26.8% 1,770,234
Taxes on Income 5,524 15.0% 450,206 35.0% 547,541 35.0% 619,582
Net Income After Taxes 31,304 0.8% 836,096 17.2% 1,016,861 17.4% 1,150,652

copyright Ralph A. Miller 12/08/2017 Page 15


Business Plan Proforma Financials PAGE #

1998 Ralph A. Miller

copyright Ralph A. Miller 12/08/2017 Page 16


Business Plan Proforma Financials PAGE #

% of total % of total
Sales Year 5 Sales

48.3% 3,280,597 50.7%


7.0% 452,229 7.0%
44.6% 2,740,000 42.3%
100.0% 6,472,826 100.0%

0.3% 19,114 0.3%


60.0% 3,764,377 58.2%

0.7% 46,419 0.7%


0.4% 28,605 0.4%
61.4% 3,858,515 59.6%
6.1% 388,326 6.0%
67.6% 4,246,841 65.6%
32.4% 2,225,985 34.4%

0.1% 9,500 0.1%


2.1% 134,081 2.1%
1.4% 84,000 1.3%
3.6% 227,581 3.5%

0
0
28.8% 1,998,404 30.9%
35.0% 699,441 35.0%
18.7% 1,298,962 20.1%

copyright Ralph A. Miller 12/08/2017 Page 17


Balance Sheet
Beginning of:
YEAR 1 YEAR 2 YEAR 3 YEAR 4
Assets
Cash 200,000 247,090 956,036 2,012,654
A/R 0 53,649 56,331 59,148
Notes Receivable 0 0 0 0
Aircraft (402@180K;Aztec@150K;Lance@90K) 420,000 420,000 420,000 420,000
Less Accum. Depr. 0 84,000 168,000 252,000
Net A/C 420,000 336,000 252,000 168,000
Tools & Test Equip 0 0 0 0
Less Accum. Depr. 0 0 0
Net Tools & Test Equip 0 0 0 0
Inventories
- Aircraft 75,000 78,750 82,688 86,822
- Maintenance Parts 0 0 0 0
- Gas & Oil 126,000 138,600 152,460 167,706
Total Inventory 201,000 217,350 235,148 254,528
Total Assets 821,000 854,088 1,499,515 2,494,330

Liabilities & Stockholder's Equity


A/P(60days fuel + 30days expenses) 126,000 292,034 265,427 323,246
Notes Payable (A/C Assets @ 10%int.+10% on prin/qtr.) 420,000 252,000 84,000 0
Notes Payable (A/C Inventory @ 10%int.+10% on prin/qtr.) 75,000 78,750 82,688 86,822
Common Stock (no par value) 200,000 200,000 200,000 200,000
Accumulated Earnings 0 31,304 867,400 1,884,262
Total Liabilities & Stockholder's Equity 821,000 854,088 1,499,515 2,494,330

Control Sum (Assets=Liabilities+Shareholder's Equity) Correct Correct Correct Correct


1998 Ralph A. Miller

Transactions on Jan 1 of Year 1


Debit Credit
1. Raised capital through Common Stock issue
Cash 108,000
Common Stock 108,000

2. Bought Aircrafts with Notes Payable


Aicraft 420,000
Notes Payable 420,000

3. Bought Gas and Oil: 25000gallons for $1.68 per gallon and
50000 gallons for $1.68. The purchase was made on account.
Gas and Oil 126,000
Accounts Payable 126,000

4. Bought Aicraft Inventory valued at $75,000 paying with Notes Payable


Inventory Aicraft 75,000
Notes Payable 75,000

copyright Ralph A. Miller 12/08/2017 Page 18


of:
YEAR 5

3,235,102
62,105
0
420,000
336,000
84,000
0
0
0

91,163
0
184,477
275,640
3,656,846

330,769
0
91,163
200,000
3,034,914
3,656,846

Correct

copyright Ralph A. Miller 12/08/2017 Page 19


Proforma Cash Flow
YEAR YEAR YEAR YEAR YEAR
OPERATIONS 1 2 3 4 5
Sources of Cash:
Net Income after Taxes 31,304 836,096 1,016,861 1,150,652 1,298,962
Depreciation (because it is a non-cash expence) 84,000 84,000 84,000 84,000 84,000
Increase in Accounts Payable 166,034 -26,607 57,819 7,523 -330,769
Uses in Cash:
Increase in Accounts Receivable 53,649 2,682 2,817 2,957 -62,105
Increase in Inventory 16,350 17,798 19,380 21,112 -275,640
Net Cash Flow From Operations 211,340 873,009 1,136,484 1,218,106 1,389,937

INVESTEMENT
Change in Long-Term Assets 0 0 0 0 0

FINANCING
Sources of Cash:
Sale of Stock/Increase in Equity 0 0 0 0 200,000
Sale of Bonds 0 0 0 0 0
Proceeds of Loans 3,750 3,938 4,134 4,341 4,558
Sale of Investments 0 0 0 0 0
Collection of Notes/Loans Receivable 0 0 0 0 0
Net Cash available from operations/financing 215,090 876,947 1,140,618 1,222,447 1,594,496
Uses of Cash:
Purchase of Assets/Investments 0 0 0 0 -420,000
Stockholder Dividends 0 0 0 0 0
Increase in Notes/Loans Receivable
Repayment of Debt 168,000 168,000 84,000 0 0
Total uses of cash 168,000 168,000 84,000 0 -420,000
Net Cash Flow From Operations/Financing 47,090 708,947 1,056,618 1,222,447 2,014,496

1998 Ralph A. Miller

copyright Ralph A. Miller 12/08/2017 Page 20