Soapy Rides Car Wash

May 2001
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Table of Contents
1.
Executive Summary....................................................Error! Bookmark not defined.

1.1. Objectives ............................................................Error! Bookmark not defined.
1.2. Mission ................................................................Error! Bookmark not defined.
2. Company Summary ....................................................Error! Bookmark not defined.
2.1. Company Ownership ...........................................Error! Bookmark not defined.
2.2. Start-up Summary ...............................................Error! Bookmark not defined.
3. Services .......................................................................Error! Bookmark not defined.
4. Market Analysis Summary .........................................Error! Bookmark not defined.
4.1. Market Segmentation ..........................................Error! Bookmark not defined.
4.2. Target Market Segment Strategy.........................Error! Bookmark not defined.
4.3. Service Business Analysis...................................Error! Bookmark not defined.
4.3.1. Competition and Buying Patterns ................Error! Bookmark not defined.
5. Strategy and Implementation Summary.....................Error! Bookmark not defined.
5.1. SWOT Analysis...................................................Error! Bookmark not defined.
5.1.1. Strengths ......................................................Error! Bookmark not defined.
5.1.2. Weaknesses ..................................................Error! Bookmark not defined.
5.1.3. Opportunities................................................Error! Bookmark not defined.
5.1.4. Threats..........................................................Error! Bookmark not defined.
5.2. Competitive Edge ................................................Error! Bookmark not defined.
5.3. Sales Strategy ......................................................Error! Bookmark not defined.
5.3.1. Sales Forecast...............................................Error! Bookmark not defined.
5.4. Milestones ...........................................................Error! Bookmark not defined.
6. Management Summary ..............................................Error! Bookmark not defined.
6.1. Personnel Plan .....................................................Error! Bookmark not defined.
7. Financial Plan.............................................................Error! Bookmark not defined.
7.1. Important Assumptions .......................................Error! Bookmark not defined.
7.2. Break-even Analysis ...........................................Error! Bookmark not defined.
7.3. Projected Profit and Loss ....................................Error! Bookmark not defined.
7.4. Projected Cash Flow............................................Error! Bookmark not defined.
7.5. Projected Balance Sheet ......................................Error! Bookmark not defined.
7.6. Business Ratios ...................................................Error! Bookmark not defined.
7.7. Payback ...............................................................Error! Bookmark not defined.
7.8. Valuation .............................................................Error! Bookmark not defined.
7.9. Use of Funds........................................................Error! Bookmark not defined.
Soapy Rides Car Wash
1. Executive Summary
Soapy Rides is a prominent hand car wash serving the East Meadow, Long Island, NY
community. Soapy Rides will be run by Mark Deshpande, of the prominent Deshpande family.
The Deshpande family has been serving the Long Island area with a car repair business and
property development /management for over 30 years. Mark will be leveraging the incredible
good will and brand recognition of the Deshpande family name to quickly gain market
penetration.
The Business
Soapy Rides will be providing customers with three services: exterior car washing, , interior
cleaning, and detailing. Soapy Rides has no true competitors that are trying to offer a high
quality service for a reasonable rate. Most are trying to compete on price alone. Soapy Rides'
ability to provide a high quality service, both in regards to the actual washing as well as
customer service is all based on their ability to find the best employees. Hiring the best
employees is cost effective because it decreases HR costs associated with turnover and other
employee costs. Hiring the best employees and making sure that they are well taken care of
ensures that they in turn take care of the customers. Study after study proves that a happy
employee is far more likely to provide the highest level of customer service compared to an
employee who is not happy and feels that they are being taken advantage of.
The Customers
Soapy Rides will target three main groups of customers: individual car owner and leasers, car
dealerships, and local businesses. The surrounding area is quite affluent, 40% of the residents
earn over $70,000 a year. Consequently, they have nice cars and want them to look nice. There
are five different car dealerships within a three-mile radius which will require car washing
services for the various fleets. Lastly, there are many different local businesses that have
company cars and that require clean appearances.
Management
The strength of Mark's experience and his family's name equity and assistance is Soapy
Rides' competitive edge as well as a significant asset. Mark has been involved in the family's car
repair business for the last ten years. He has worked his way through the organization and has
been the manager for the last five years overseeing operations of $1.2 million annually. Before
the family venture, Mark received his MBA from Cornell University. With 30 years invested in
the community, the Deshpande family name has generated significant value as a fair, active
member of the community. Lastly, Soapy Rides will be able to leverage several of the
Deshpande's for their business expertise.
Soapy Rides is positioning itself as the premier hand car wash serving the Long Island area.
Mark has forecasted a 20% market share. The business will generate a 95% gross margin and
an 11% net margin after year one and 20.79% after year three. By year three the business will
have developed a yearly net profit of $48,000 .
Page 1

Highlights
1.1.
Objectives
The objectives for Soapy Rides Car Wash and Detail Service are:
1.
2.
3.
4.
1.2.
To be viewed as a premium car wash and detail service in East Meadow.

Maintain a gross profit margin of over 95%.
Maintain a net profit margin of 10-15%.
Expand to two locations after third year of operation.
Mission
The mission of Soapy Ride is to provide top-quality washing and detail service for luxury
car owners in East Meadow, NY. Soapy Rides will work to keep employees satisfied in order
to maintain impeccable customer service.
Page 2

2. Company Summary
The company is solely owned by Mark Deshpande and will be funded by an initial investment of
$30,000. Soapy Rides is New York State registered C corporation.
2.1.
Company Ownership
The company will be solely owned by Mark Deshpande. Mark has been in the car industry
all his life, having grown up in the family car repair business. He came across the location
in East Meadow purely by accident and he felt it would be a perfect location for a car wash
service.
2.2.
Start-up Summary
The start-up expenses for Soapy Rides will be financed by Mark Deshpande, from the
profits he made in selling his part of the family car repair business. The property on
Hempstead Road will be leased in April 2001 for a minimum of three years, with the option
to extend the lease for another three years after that.
Mark is working with the family lawyer to set up incorporation and to discuss lease issues
before the business is launched. He is working with a local graphic designer to develop a
logo, letterhead, and company brochures. Although Mark has been in the car repair
business, he has not been in the wash and detailing business, which is a very different
service (quick turnaround per car is incredibly important). For this reason he is working
with an acquaintance to set up the system that will ensure efficient service even during
peak usage.
Rent on the location has been negotiated and will be $1,200 per month. In addition,
insurance for the business will be approximately $200 per month and will be paid by direct
debit on a monthly basis. Expensed equipment includes three high-power water pumps,
two industrial vacuum cleaners, two computer terminals, and one cash register. All of the
equipment will be depreciated over three years.
The location was previously used as a quick stop automobile service shop, so it is set up to
move vehicles quickly through the premises, but does not have all the necessary systems
in place to host a car wash and detail facility. The services of a contracting company will be
sought to convert the use of the facility and to improve the customer waiting room
facilities.
Page 3

Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Brochures
Consultants
Insurance
Rent
Research and Development
Expensed Equipment
Signs
Building Materials
Building Labor
Total Start-up Expenses
$500
$400
$450
$0
$200
$1,200
$300
$4,100
$700
$1,200
$1,000
$10,050
Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets
$8,700
$250
$1,000
$10,000
$19,950
Total Requirements
$30,000
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
$10,050
$19,950
$30,000
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$11,250
$8,700
$0
$8,700
$19,950
Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
$0
$0
Page 4

Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities
$0
$0
$0
Capital
Planned Investment
Investor 1
Investor 2
Other
Additional Investment Requirement
Total Planned Investment
$30,000
$0
$0
$0
$30,000
Loss at Start-up (Start-up Expenses)

Total Capital
($10,050)
$19,950
Total Capital and Liabilities
$19,950
Total Funding
$30,000
Start-up
Page 5
3. Services
Soapy Rides will provide three services to its customers:
Car washing (exterior)

Car cleaning (interior)
Car detailing.
4. Market Analysis Summary

The car wash will be based in East Meadow, New York. This area has a number of benefits in
terms of the market that it will provide for the business. Over 40% of households in the
immediate neighborhood earn over $70,000 annually. Many people in the neighborhood own
and/or lease new cars and place great value on their cars and how they look. There are a large
number of car dealerships in the area--five within three miles of the proposed location for
Soapy Rides.
Page 6
4.1.
Market Segmentation
Soapy Rides segments its customers by type of car ownership. We believe that the type of
car that a person owns says volumes about their driving, and, therefore their car washing
and detailing requirements.
1. New car owners: Owners of newer cars are most likely to use a hand car washing
service. These owners take great pride in their cars and will bring them often to the
wash and detail service. The goal with these customers is to promote regular use of
the wash and detail service. The aim is to inform these customers that Soapy Rides
will keep their car looking as good as it did the day they drove it off the lot.
2. Older luxury car owners: These people have either owned their high-end luxury
cars for several years or are unable to afford the expense of a new luxury car but
want the feel of relaxed driving. Both of these groups want to keep their cars in the
best shape possible. Those who have bought second-hand cars will often spend
many hours in their cars and will place high importance on keeping their cars
looking good. These owners will bring their cars in for regular washes and occasional
details.
3. Sports car owners: These people are often younger or middle-aged men and will
regard the look of their car as important. They will also pride themselves on the look
of their car and will have their car hand washed (at least) weekly. These drivers will
have an occasional detail, but will keep their cars so clean the detail will not be
necessary very often.
4. Lifetime owners: Many of these people have owned their cars for more than five or
six years, and are more likely to be women. They are attached to their cars as
friends and though it may be more sensible for them to purchase a new car, they
will bring their car in for a wash occassionally, just when the car is dirty. They like
their cars to look presentable, and want to keep it in good shape but are not tied up
in the look of their car. For this reason, they will not have a detail carried out on
their car unless they are selling it.
5. Dealerships: There are five new and used car dealerships within three miles of the
proposed location of Soapy Rides. These dealerships often use outside car wash
services to detail their vehicles before they are put up for sale. In addition, there are
fifteen other car dealerships within a seven mile radius of Soapy Rides.
6. Local businesses: Some local businesses have fleets of cars and small vans that
must be kept clean to maintain their company image. These businesses will
be looking for a cost effective, efficient car washing service to perform this service,
and will prefer to use a car wash service during the week rather than during
weekends, like the general public.
Page 7

Market Analysis (Pie)
Market Analysis
Potential Customers
New Car Owners
Older Luxury Car Owners
Sports Car Owners
Lifetime Owners
New and Used Car
Dealerships
Total
4.2.
Year 1
Year 2
Year 3
Year 4
Year 5
Growth
10%
15%
15%
10%
7%
7,200
12,500
6,500
17,000
9
7,920
14,375
7,475
18,700
10
8,712
16,531
8,596
20,570
11
9,583
19,011
9,885
22,627
12
10,541
21,863
11,368
24,890
13
CAGR
10.00%
15.00%
15.00%
10.00%
9.63%
12.28%
43,209
48,480
54,420
61,118
68,675
12.28%
Target Market Segment Strategy

The strategy behind Soapy Rides target segmentation is to attract customers who will be
repeat users and will frequent the business in the typically quiet times for a car wash
business. It will not be difficult to attract customers during the summer months and on the
Page 8

weekends, the weekdays however, especially in the winter, people will not think about
having their cars washed. For this reason, Soapy Rides will target people who will tend not
to be restricted to these busy times.
Business owners (new car owners) tend to be very busy people, but are often able to
make their own hours.
Retired people (older luxury car owners) are not restricted by typical work schedules
so will be able to frequent the car wash during the week.
Dealerships will need cars detailed and washed regardless of the time of the day and
week. This will supply a constant flow of traffic.
Businesses will need their fleet cars washed during the week during regular business
hours.
4.3.
Service Business Analysis

The hand car washing business in East Meadow consists of many small
competitors. Everything from local children raising money for their youth group on a
Saturday by cleaning cars, to the automatic car wash machines, are competition for Soapy
Rides. However, these two alternatives aim to meet the needs of the price-conscious
individuals who are choosing the service simply so they do not have to clean the car
themselves. Soapy Rides on the other hand, targets the quality-conscious individuals who
value their car enough to spend $10-$15 per week to make it look good.
4.3.1. Competition and Buying Patterns

There is one other hand car wash shop in East Meadow. It is quite new and is trying
to compete with automatic car washes by offering low prices. However, it is not
targeting the customers who seek quality cleaning.
The customers who Soapy Rides is targeting have their cars washed based on the
quality of the job. They do not mind spending a little more each week to have their
car washed and waxed in order to keep the paint work in excellent shape. The
businesses that Soapy Rides targets will be more cost conscious, so prices will be
approximately 30% less for these customers to promote volume usage.
5. Strategy and Implementation Summary

The key differentiator for Soapy Rides Car Wash is Mark Deshpande and his business and
personal connections within the East Meadow neighborhood. For this reason, the sales and
marketing focus will be on a one-to-one basis, with the emphasis on gaining loyal and repeat
customers as "friends" of the business. Soapy Rides, therefore, will depend on word-of-mouth
advertising for the immediate community.
5.1.
SWOT Analysis
Item body here
Page 9
5.1.1. Strengths
Item body here
5.1.2. Weaknesses
Item body here
5.1.3. Opportunities
Item body here
5.1.4. Threats
Item body here
5.2.
Competitive Edge
Soapy Rides' competitive edge will be Mark Deshpande and the quality of the family name
in the East Meadow area. As mentioned, the family has been in the car business for over 30
years, and has an excellent reputation and a myriad of both business and personal
contacts. In addition, Mark has put a great deal of emphasis on creating a system that is
both fast and efficient, which will keep costs, in terms of time spent per car, to a minimum.
5.3.
Sales Strategy
Sales strategy is on a one-to-one basis. All customers will feel they are a valued friend of
Soapy Rides, and that all employees care about the care and upkeep of each vehicle. We
must be aware that there are low switching costs in the car washing industry, so we have
to work hard to develop and keep repeat customers.
5.3.1. Sales Forecast

The following chart forecasts sales based upon the Market Segmentation Strategy.
Sales are seasonal in this industry, tending to be higher in the warmer summer
months, and to drop off in the winter. However, we will aim to flatten sales across
the sales cycle by targeting segments that will want to keep their cars clean and
looking good year round.
Page 10

Sales Monthly
Page 11

Sales Forecast
Year 1
Year 2
Year 3
Year 4
Year 5
Unit Sales
Full Wash
Exterior Wash
Interior Clean
End User Detail
Business Fleet Washes
Car Dealership Details
Total Unit Sales
1,760
2,050
770
129
615
494
5,818
2,288
2,665
1,001
193
923
642
7,712
2,974
3,465
1,301
290
1,384
963
10,376
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Unit Prices
Full Wash
Exterior Wash
Interior Clean
End User Detail
Year 1
$15.00
$9.00
$8.00
$140.00
$10.00
$70.00
Year 2
$15.00
$10.00
$9.00
$145.00
$10.00
$75.00
Year 3
$15.00
$12.00
$9.00
$150.00
$10.00
$80.00
Year 4
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Year 5
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Sales
Full Wash
Exterior Wash
Interior Clean
End User Detail
Total Sales
$26,400
$18,450
$6,160
$18,060
$6,150
$34,580
$109,800
$34,320
$26,650
$9,009
$27,985
$9,225
$48,150
$155,339
$44,616
$41,574
$11,712
$43,425
$13,838
$77,040
$232,204
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Direct Unit Costs

Full Wash
Exterior Wash
Interior Clean
End User Detail
Year 1
$0.70
$0.40
$0.30
$3.00
$0.70
$3.00
Year 2
$0.80
$0.45
$0.35
$3.50
$0.75
$3.50
Year 3
$0.90
$0.50
$0.40
$4.00
$0.80
$4.00
Year 4
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Year 5
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Direct Cost of Sales

Full Wash
Exterior Wash
Interior Clean
End User Detail
Subtotal Direct Cost of Sales
$1,232
$820
$231
$387
$431
$1,482
$4,583
$1,830
$1,199
$350
$676
$692
$2,247
$6,994
$2,677
$1,732
$521
$1,158
$1,107
$3,852
$11,047
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Page 12

5.4.
Milestones
The following table outlines the important milestones in the planning and implementation of
Soapy Rides.
Milestones
Milestone
Complete Business Plan
Sign Rental Contract
Convert Premises
Hire Car Wash Staff
Hire Admin Staff
Open for Business
Distribute Flyers
Press Release
Follow-up on Press Release
Totals
Start Date
2/1/2001
3/20/2001
4/1/2001
4/20/2001
4/20/2001
5/1/2001
4/28/2001
4/29/2001
4/30/2001
End Date
5/1/2001
3/20/2001
4/30/2001
4/20/2001
4/20/2001
5/1/2001
5/5/2001
4/29/2001
4/30/2001
Budget
Manager Department
$0
ABC Department
$475
Mark
Owner
$0 Contractors Contractors
$200
Mark
Owner
$200
Mark
Owner
$0
Staff
Staff
$75
Friends
Friends
$25
Mark
Owner
$0
Mark
Owner
$975
6. Management Summary
Mark Deshpande is the sole owner and manager of Soapy Rides. In addition, he will be helped
(on an unofficial basis) by his father, Barry Deshpande. Barry has over 30 years experience as
an entrepreneur, both in the car business and in property development and management.
Mark will also have the assistance of John Shine, the family accountant, in creating a long-term
strategic vision for the company. John is a family friend and has worked with the Deshpande
family for 23 years. He has worked with hundreds of small- and medium-sized businesses
during his career.
6.1.
Personnel Plan
Since car washing is a seasonal business, with business increasing in the warm summer
months, and being busier on the weekends than during the week, Soapy Rides will rely on
both temporary and part-time help. The company will hire one full-time car wash/detail
specialist and one full-time car wash specialist when it opens for business. Although it will
rely on temporary and part-time help, quality will not be compromised, since all washers
and detailers will receive thorough training. The company will also hire an administrative
assistant who will assist Mark with paperwork and act as a receptionist.
Page 13

Personnel Plan
Year 1
Year 2
Year 3
Year 4
Year 5
Production Personnel
Name or title
Name or title
Name or title
Other
Subtotal
$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
Sales and Marketing

Personnel
Name or title
Name or title
Name or title
Other
Subtotal
$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
General and Administrative

Personnel
Name or title
Name or title
Name or title
Other
Subtotal
$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
Other Personnel
Name or title
Name or title
Name or title
Other
Subtotal
$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
Total People
Total Payroll
$0
$0
$0
$0
$0
7. Financial Plan
The following plan outlines the financial development of Soapy Rides. The business will be
initially financed by a $30,000 investment by Mark Deshpande and will finance growth through
cash flow. This will mean that the company will grow more slowly than it could, but it will
ensure that Mark retains control over the direction of the company. In year three, it is hoped
that the company will be able to open a second location. It is envisioned that an outside loan or
equity funding will be sought at that time.
Page 14
7.1.
Important Assumptions
The financial projections for Soapy Rides are based on the following assumptions. These
assumptions are thought to be quite conservative, as are the financial forecasts.
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other
7.2.
Year 1
1
10.00%
10.00%
25.42%
0
Year 2
2
10.00%
10.00%
25.00%
0
Year 3
3
10.00%
10.00%
25.42%
0
Year 4
4
10.00%
10.00%
25.00%
0
Year 5
5
10.00%
10.00%
25.42%
0
Break-even Analysis
Fixed monthly costs for Soapy Rides are estimated to be approximately $7,500, and break
even monthly units are 203 units per month.
Page 15

Break-even Analysis
Break-even Analysis
Monthly Units Break-even
Monthly Revenue Break-even
150
$2,836
Assumptions:
Average Per-Unit Revenue
Average Per-Unit Variable Cost
Estimated Monthly Fixed Cost
$18.87
$0.79
$2,718
7.3.
Projected Profit and Loss

The following Profit and Loss table illustrates income and expenses monthly for the first
year, and annually for the next two years.
Page 16

Pro Forma Profit and Loss
Total Cost of Sales
Year 1
$109,800
$4,583
$0
$0
-----------$4,583
Year 2
$155,339
$6,994
$0
$0
-----------$6,994
Year 3
$232,204
$11,047
$0
$0
-----------$11,047
Year 4
$0
$0
$0
$0
-----------$0
Year 5
$0
$0
$0
$0
-----------$0
Gross Margin
Gross Margin %
$105,218
95.83%
$148,345
95.50%
$221,157
95.24%
$0
0.00%
$0
0.00%
$0
$1,000
$0
$1,200
-----------$2,200
$0
$1,150
$0
$0
-----------$1,150
$0
$1,300
$0
$0
-----------$1,300
$0
$0
$0
$0
-----------$0
$0
$0
$0
$0
-----------$0
2.00%
0.74%
0.56%
0.00%
0.00%
$0
$0
$0
$0
$0
$2,600
$1,550
$1,700
$0
$0
$2,070
$0
$3,325
$1,800
$4,800
$15,420
$0
-----------$30,015
$2,070
$0
$3,500
$1,800
$5,500
$22,078
$0
-----------$36,498
$2,070
$0
$3,750
$1,800
$6,000
$28,294
$0
-----------$43,614
$0
$0
$0
$0
$0
$0
$0
-----------$0
$0
$0
$0
$0
$0
$0
$0
-----------$0
27.34%
23.50%
18.78%
0.00%
0.00%
$0
$0
$400
$0
$0
$400
$0
$0
$400
$0
$0
$0
$0
$0
$0
Sales
Production Payroll
Other
Operating Expenses
Sales and Marketing
Expenses
Sales and Marketing Payroll
Advertising/Promotion
Travel
Miscellaneous
Total Sales and Marketing
Expenses
Sales and Marketing %
Expenses
Payroll
Sales and Marketing and
Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other
Total General and
Administrative Expenses
%
Other Expenses:
Other Payroll
Consultants
Contract/Consultants
Page 17

-----------$400
0.36%
-----------$32,615
-----------$400
0.26%
-----------$38,048
-----------$400
0.17%
-----------$45,314
-----------$0
0.00%
-----------$0
-----------$0
0.00%
-----------$0
$72,603
$110,297
$175,844
$0
$0
$74,673
$0
$18,192
$112,367
$0
$27,574
$177,914
$0
$44,694
$0
$0
$0
$0
$0
$0
Other Income
Interest Income
Extraordinary Items
Total Other Income
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Other Expense
Account Name
Extraordinary Items
Total Other Expense
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$54,410
49.55%
$0
$82,722
53.25%
$0
$131,150
56.48%
$0
$0
0.00%
$0
$0
0.00%
Total Other Expenses

Other %
Total Operating Expenses
Profit Before Interest and
Taxes
EBITDA
Interest Expense
Taxes Incurred
Net Other Income

Net Profit
Net Profit/Sales
7.4.
Projected Cash Flow

The following Cash Flow table illustrates that if Soapy Rides meets projected sales, it will
have positive cash flow after month three of operation.
Page 18

Cash
Page 19

Pro Forma Cash Flow
Year 1
Year 2
Year 3
Year 4
Year 5
$93,330
$15,636
$108,966
$132,038
$22,955
$154,993
$197,374
$34,247
$231,621
$0
$1,763
$1,763
$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
$0
$0
$0
$0
$0
$0
$0
$0
$0
$108,966
$0
$0
$154,993
$0
$0
$231,621
$0
$0
$1,763
$0
$0
$0
Year 1
Year 2
Year 3
Year 4
Year 5
$53,737
$0
$53,737
$70,898
$0
$70,898
$99,574
$0
$99,574
$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
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from
Operations
Additional Cash Received
Non Operating (Other)
Income
Sales Tax, VAT, HST/GST
Received
New Current Borrowing
New Other Liabilities
(interest-free)
New Long-term Liabilities
Sales of Other Current
Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from
Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Non Operating (Other)
Expense
Sales Tax, VAT, HST/GST
Paid Out
Principal Repayment of
Current Borrowing
Other Liabilities Principal
Repayment
Principal Repayment
Purchase Other Current
Assets
Purchase Long-term Assets
Dividends
Page 20

Subtotal Cash Spent
$53,737
$70,898
$99,574
$0
$0
Net Cash Flow

Cash Balance
$55,229
$63,929
$84,095
$148,025
$132,046
$280,071
$1,763
$281,834
$0
$281,834
7.5.
Projected Balance Sheet

Soapy Rides' balance sheet illustrates a healthy financial position for this new company.
The monthly estimates are included in the appendix.
Page 21

Pro Forma Balance Sheet
Year 1
Year 2
Year 3
Year 4
Year 5
Current Assets
Cash
Accounts Receivable
Inventory
Total Current Assets
$63,929
$834
$668
$1,000
$66,430
$148,025
$1,179
$1,019
$1,000
$151,223
$280,071
$1,763
$1,609
$1,000
$284,443
$281,834
$0
$1,609
$1,000
$284,443
$281,834
$0
$1,609
$1,000
$284,443
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
$10,000
$2,070
$7,930
$74,360
$10,000
$4,140
$5,860
$157,083
$10,000
$6,210
$3,790
$288,233
$10,000
$6,210
$3,790
$288,233
$10,000
$6,210
$3,790
$288,233
Year 1
Year 2
Year 3
Year 4
Year 5
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Liabilities
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$30,000
($10,050)
$54,410
$74,360
$74,360
$30,000
$44,360
$82,722
$157,083
$157,083
$30,000
$127,083
$131,150
$288,233
$288,233
$30,000
$258,233
$0
$288,233
$288,233
$30,000
$258,233
$0
$288,233
$288,233
$74,360
$157,083
$288,233
$288,233
$288,233
Assets
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
7.6.
Business Ratios
The following table contains important ratios for the car wash industry, as determined by
the Standard Industry Classification (SIC) code, 7542.
Page 22

Ratio Analysis
Year 1
Year 2
Year 3
Year 4
Year 5
0.00%
41.47%
49.48%
0.00%
0.00%
Percent of Total Assets

Accounts Receivable
Inventory
Long-term Assets
Total Assets
1.12%
0.90%
1.34%
89.34%
10.66%
100.00%
0.75%
0.65%
0.64%
96.27%
3.73%
100.00%
0.61%
0.56%
0.35%
98.69%
1.31%
100.00%
0.00%
0.56%
0.35%
98.69%
1.31%
100.00%
0.00%
8.70%
0.56%
9.50%
0.35% 26.40%
98.69% 44.60%
1.31% 55.40%
100.00% 100.00%
Current Liabilities
Total Liabilities
Net Worth
0.00%
0.00%
0.00%
100.00%
0.00%
0.00%
0.00%
100.00%
0.00%
0.00%
0.00%
100.00%
0.00%
0.00%
0.00%
100.00%
0.00%
0.00%
0.00%
100.00%
100.00%
95.83%
86.59%
100.00%
95.50%
84.13%
100.00%
95.24%
74.45%
100.00%
0.00%
0.00%
100.00% 100.00%
0.00%
0.00%
0.00% 68.20%
0.91%
66.12%
0.74%
71.00%
0.56%
75.73%
0.00%
0.00%
0.00%
0.00%
1.50%
2.70%
0.00
0.00
0.00%
97.64%
0.00
0.00
0.00%
70.22%
0.00
0.00
0.00%
61.01%
0.00
0.00
0.00%
0.00%
0.00
0.00
0.00%
0.00%
1.53
0.88
57.10%
3.40%
97.64%
70.22%
61.01%
0.00%
0.00%
8.00%
Year 1
49.55%
73.17%
Year 2
53.25%
52.66%
Year 3
56.48%
45.50%
Year 4
0.00%
0.00%
Year 5
0.00%
0.00%
n.a
n.a
19.76
19.76
19.76
0.00
0.00
n.a
14
5.45
0.00
0
1.48
16
8.30
0.00
0
0.99
15
8.41
0.00
0
0.81
0
0.00
0.00
0
0.00
0
0.00
0.00
0
0.00
n.a
n.a
n.a
n.a
n.a
Sales Growth
Percent of Sales
Sales
Gross Margin
Selling, General &
Administrative Expenses
Advertising Expenses
Profit Before Interest and
Taxes
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net
Worth
Pre-tax Return on Assets
Additional Ratios
Net Profit Margin
Return on Equity
Activity Ratios
Accounts Receivable
Turnover
Collection Days
Inventory Turnover
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Industry
Profile
3.00%
29.30%
27.80%
57.10%
42.90%
Page 23

Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout
7.7.
0.00
0.00
0.00
0.00
n.a
n.a
$66,430 $151,223 $284,443 $284,443 $284,443

0.00
0.00
0.00
0.00
0.00
n.a
n.a
0.68
0%
0.00
1.48
0.00
0.00
0.00
1.01
0%
0.00
0.99
0.00
0.00
0.00
1.24
0%
0.00
0.81
0.00
0.00
0.00
n.a.
0%
0.00
0.00
0.00
n.a.
0%
0.00
0.00
0.00
n.a
n.a
n.a
n.a
n.a
Payback
Item body here
Page 24
Payback
Projected Payback
Calculation
Investment
Cash Returns by
Year
Combination as
Income Stream
Cumulative Net
Cash Flow to
Investors
Payback Period
Investment
$500,000
($500,000)
Year 1
Year 2
Year 3
Year 4
$100,000
$100,000
$100,000
$100,000 $100,000
$100,000
$100,000
$100,000
$100,000 $100,000
($500,000) ($400,000) ($300,000) ($200,000) ($100,000)
Year 5
$0
5 years
Payback Period
Page 25
Page 26
7.8.
Valuation
Item body here
Investment Analysis
Initial Investment
Investment
Dividends
Ending Valuation
Combination as Income
Stream
Percent Equity Acquired
Net Present Value (NPV)
Internal Rate of Return
(IRR)
Assumptions
Discount Rate
Valuation Earnings
Multiple
Valuation Sales Multiple
Investment (calculated)
Dividends
Calculated Earnings-based
Valuation
Calculated Sales-based
Valuation
Calculated Average
Valuation
7.9.
Start
Year 1
Year 2
Year 3
Year 4
Year 5
$30,000
$0
$0
($30,000)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$480,000
$480,000
$0
$0
$0
$0
$0
$0
$0
$0
10
10
10
10
10
$0
$0
$0
$0
$0
$0
$540,000 $830,000 $1,310,000
$0
$0
$0
$0
$0
$0
$220,000 $310,000
$460,000
$0
$0
$380,000 $570,000
$885,000
$0
$0
0%
$300,574
152%
10.00%
$30,000
Use of Funds
Item body here
Page 27
Use of Funds
Use
Name
Name
Name
Name
Total
Amount
$0
$0
$0
$0
$0
Page 28
Appendix
Sales Forecast
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
90
90
40
3
25
15
263
130
130
50
5
40
17
372
170
185
50
7
55
20
487
190
220
55
10
60
26
561
190
230
60
12
60
32
584
185
220
65
12
55
40
577
135
180
70
14
55
56
510
135
170
80
9
55
45
494
120
150
80
11
55
56
472
120
150
85
14
50
60
479
140
160
75
15
50
60
500
155
165
60
17
55
67
519
Unit Prices
Full Wash
Exterior Wash
Interior Clean
End User Detail
Month 1
$15.00
$9.00
$8.00
$140.00
$10.00
$70.00
Month 2
$15.00
$9.00
$8.00
$140.00
$10.00
$70.00
Month 3
$15.00
$9.00
$8.00
$140.00
$10.00
$70.00
Month 4
$15.00
$9.00
$8.00
$140.00
$10.00
$70.00
Month 5
$15.00
$9.00
$8.00
$140.00
$10.00
$70.00
Month 6
$15.00
$9.00
$8.00
$140.00
$10.00
$70.00
Month 7
$15.00
$9.00
$8.00
$140.00
$10.00
$70.00
Month 8
$15.00
$9.00
$8.00
$140.00
$10.00
$70.00
Month 9
$15.00
$9.00
$8.00
$140.00
$10.00
$70.00
Month 10
$15.00
$9.00
$8.00
$140.00
$10.00
$70.00
Month 11
$15.00
$9.00
$8.00
$140.00
$10.00
$70.00
Month 12
$15.00
$9.00
$8.00
$140.00
$10.00
$70.00
Sales
Full Wash
Exterior Wash
Interior Clean
End User Detail
Total Sales
$1,350
$810
$320
$420
$250
$1,050
$4,200
$1,950
$1,170
$400
$700
$400
$1,190
$5,810
$2,550
$1,665
$400
$980
$550
$1,400
$7,545
$2,850
$1,980
$440
$1,400
$600
$1,820
$9,090
$2,850
$2,070
$480
$1,680
$600
$2,240
$9,920
$2,775
$1,980
$520
$1,680
$550
$2,800
$10,305
$2,025
$1,620
$560
$1,960
$550
$3,920
$10,635
$2,025
$1,530
$640
$1,260
$550
$3,150
$9,155
$1,800
$1,350
$640
$1,540
$550
$3,920
$9,800
$1,800
$1,350
$680
$1,960
$500
$4,200
$10,490
$2,100
$1,440
$600
$2,100
$500
$4,200
$10,940
$2,325
$1,485
$480
$2,380
$550
$4,690
$11,910
Month 1
$0.70
$0.40
$0.30
$3.00
$0.70
$3.00
Month 2
$0.70
$0.40
$0.30
$3.00
$0.70
$3.00
Month 3
$0.70
$0.40
$0.30
$3.00
$0.70
$3.00
Month 4
$0.70
$0.40
$0.30
$3.00
$0.70
$3.00
Month 5
$0.70
$0.40
$0.30
$3.00
$0.70
$3.00
Month 6
$0.70
$0.40
$0.30
$3.00
$0.70
$3.00
Month 7
$0.70
$0.40
$0.30
$3.00
$0.70
$3.00
Month 8
$0.70
$0.40
$0.30
$3.00
$0.70
$3.00
Month 9
$0.70
$0.40
$0.30
$3.00
$0.70
$3.00
Month 10
$0.70
$0.40
$0.30
$3.00
$0.70
$3.00
Month 11
$0.70
$0.40
$0.30
$3.00
$0.70
$3.00
Month 12
$0.70
$0.40
$0.30
$3.00
$0.70
$3.00
$63
$36
$12
$9
$18
$45
$183
$91
$52
$15
$15
$28
$51
$252
$119
$74
$15
$21
$39
$60
$328
$133
$88
$17
$30
$42
$78
$388
$133
$92
$18
$36
$42
$96
$417
$130
$88
$20
$36
$39
$120
$432
$95
$72
$21
$42
$39
$168
$436
$95
$68
$24
$27
$39
$135
$387
$84
$60
$24
$33
$39
$168
$408
$84
$60
$26
$42
$35
$180
$427
$98
$64
$23
$45
$35
$180
$445
$109
$66
$18
$51
$39
$201
$483
Unit Sales
Full Wash
Exterior Wash
Interior Clean
End User Detail
Total Unit Sales
Direct Unit Costs

Full Wash
Exterior Wash
Interior Clean
End User Detail
Full Wash
Exterior Wash
Interior Clean
End User Detail
Subtotal Direct Cost of Sales
0%
0%
0%
0%
0%
0%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Page 29
Appendix
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
Production Personnel
Name or title
Name or title
Name or title
Other
Subtotal
$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
$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
$0
$0
$0
$0
$0
$0
$0
$0
Sales and Marketing Personnel

Name or title
Name or title
Name or title
Other
Subtotal
$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
$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
$0
$0
$0
$0
$0
$0
$0
$0
General and Administrative Personnel

Name or title
Name or title
Name or title
Other
Subtotal
$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
$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
$0
$0
$0
$0
$0
$0
$0
$0
Other Personnel
Name or title
Name or title
Name or title
Other
Subtotal
$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
$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
$0
$0
$0
$0
$0
$0
$0
$0
Total People
Total Payroll
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Page 30
Appendix
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other
Month 1
1
10.00%
10.00%
30.00%
0
Month 2
2
10.00%
10.00%
25.00%
0
Month 3
3
10.00%
10.00%
25.00%
0
Month 4
4
10.00%
10.00%
25.00%
0
Month 5
5
10.00%
10.00%
25.00%
0
Month 6
6
10.00%
10.00%
25.00%
0
Month 7
7
10.00%
10.00%
25.00%
0
Month 8
8
10.00%
10.00%
25.00%
0
Month 9
9
10.00%
10.00%
25.00%
0
Month 10
10
10.00%
10.00%
25.00%
0
Month 11
11
10.00%
10.00%
25.00%
0
Month 12
12
10.00%
10.00%
25.00%
0
Page 31
Appendix
Pro Forma Profit and Loss

Sales
Production Payroll
Other
Total Cost of Sales
Gross Margin
Gross Margin %
Month 1
$4,200
$183
$0
$0
-----------$183
Month 2
$5,810
$252
$0
$0
-----------$252
Month 3
$7,545
$328
$0
$0
-----------$328
Month 4
$9,090
$388
$0
$0
-----------$388
Month 5
$9,920
$417
$0
$0
-----------$417
Month 6
$10,305
$432
$0
$0
-----------$432
Month 7
$10,635
$436
$0
$0
-----------$436
Month 8
$9,155
$387
$0
$0
-----------$387
Month 9
$9,800
$408
$0
$0
-----------$408
Month 10
$10,490
$427
$0
$0
-----------$427
Month 11
$10,940
$445
$0
$0
-----------$445
Month 12
$11,910
$483
$0
$0
-----------$483
$4,018
95.65%
$5,558
95.66%
$7,218
95.66%
$8,703
95.74%
$9,503
95.80%
$9,874
95.81%
$10,199
95.90%
$8,768
95.77%
$9,393
95.84%
$10,064
95.93%
$10,496
95.94%
$11,427
95.94%
$0
$200
$0
$100
-----------$300
7.14%
$0
$200
$0
$100
-----------$300
5.16%
$0
$200
$0
$100
-----------$300
3.98%
$0
$200
$0
$100
-----------$300
3.30%
$0
$200
$0
$100
-----------$300
3.02%
$0
$0
$0
$100
-----------$100
0.97%
$0
$0
$0
$100
-----------$100
0.94%
$0
$0
$0
$100
-----------$100
1.09%
$0
$0
$0
$100
-----------$100
1.02%
$0
$0
$0
$100
-----------$100
0.95%
$0
$0
$0
$100
-----------$100
0.91%
$0
$0
$0
$100
-----------$100
0.84%
$0
$500
$172
$0
$250
$150
$400
$1,215
$0
-----------$2,687
63.99%
$0
$300
$172
$0
$275
$150
$400
$1,215
$0
-----------$2,512
43.24%
$0
$300
$172
$0
$300
$150
$400
$1,495
$0
-----------$2,817
37.34%
$0
$300
$172
$0
$300
$150
$400
$1,495
$0
-----------$2,817
31.00%
$0
$300
$172
$0
$300
$150
$400
$1,495
$0
-----------$2,817
28.40%
$0
$100
$172
$0
$275
$150
$400
$1,215
$0
-----------$2,312
22.44%
$0
$100
$172
$0
$275
$150
$400
$1,215
$0
-----------$2,312
21.74%
$0
$100
$172
$0
$275
$150
$400
$1,215
$0
-----------$2,312
25.26%
$0
$300
$172
$0
$275
$150
$400
$1,215
$0
-----------$2,512
25.64%
$0
$100
$172
$0
$275
$150
$400
$1,215
$0
-----------$2,312
22.04%
$0
$100
$172
$0
$250
$150
$400
$1,215
$0
-----------$2,287
20.91%
$0
$100
$172
$0
$275
$150
$400
$1,215
$0
-----------$2,312
19.42%
$0
$0
$200
-----------$200
4.76%
-----------$3,187
$0
$0
$0
-----------$0
0.00%
-----------$2,812
$0
$0
$0
-----------$0
0.00%
-----------$3,117
$0
$0
$0
-----------$0
0.00%
-----------$3,117
$0
$0
$0
-----------$0
0.00%
-----------$3,117
$0
$0
$0
-----------$0
0.00%
-----------$2,412
$0
$0
$0
-----------$0
0.00%
-----------$2,412
$0
$0
$0
-----------$0
0.00%
-----------$2,412
$0
$0
$200
-----------$200
2.04%
-----------$2,812
$0
$0
$0
-----------$0
0.00%
-----------$2,412
$0
$0
$0
-----------$0
0.00%
-----------$2,387
$0
$0
$0
-----------$0
0.00%
-----------$2,412
$830
$1,003
$0
$249
$2,746
$2,918
$0
$686
$4,100
$4,273
$0
$1,025
$5,585
$5,758
$0
$1,396
$6,386
$6,558
$0
$1,596
$7,461
$7,634
$0
$1,865
$7,787
$7,959
$0
$1,947
$6,356
$6,528
$0
$1,589
$6,580
$6,753
$0
$1,645
$7,651
$7,824
$0
$1,913
$8,108
$8,281
$0
$2,027
$9,015
$9,187
$0
$2,254
$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
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll
Advertising/Promotion
Travel
Miscellaneous
Total Sales and Marketing Expenses
Sales and Marketing %
General and Administrative Expenses
General and Administrative Payroll
Sales and Marketing and Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other
Total General and Administrative Expenses
General and Administrative %
Other Expenses:
Other Payroll
Consultants
Contract/Consultants
Total Other Expenses
Other %
Total Operating Expenses
Profit Before Interest and Taxes
EBITDA
Interest Expense
Taxes Incurred
Other Income
Interest Income
Extraordinary Items
Total Other Income
25%
Page 32
Appendix
Other Expense
Account Name
Extraordinary Items
Total Other Expense
Net Other Income
Net Profit
Net Profit/Sales
$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
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$581
13.83%
$0
$2,059
35.44%
$0
$3,075
40.76%
$0
$4,189
46.08%
$0
$4,789
48.28%
$0
$5,596
54.30%
$0
$5,840
54.91%
$0
$4,767
52.07%
$0
$4,935
50.36%
$0
$5,738
54.70%
$0
$6,081
55.59%
$0
$6,761
56.77%
Page 33
Appendix
Pro Forma Cash Flow

Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$3,570
$336
$3,906
$4,939
$759
$5,697
$6,413
$1,010
$7,424
$7,727
$1,255
$8,982
$8,432
$1,430
$9,862
$8,759
$1,519
$10,278
$9,040
$1,572
$10,612
$7,782
$1,477
$9,259
$8,330
$1,425
$9,755
$8,917
$1,525
$10,442
$9,299
$1,610
$10,909
$10,124
$1,719
$11,842
$0
$0
$0
$0
$0
$0
$0
$0
$3,906
$0
$0
$0
$0
$0
$0
$0
$0
$5,697
$0
$0
$0
$0
$0
$0
$0
$0
$7,424
$0
$0
$0
$0
$0
$0
$0
$0
$8,982
$0
$0
$0
$0
$0
$0
$0
$0
$9,862
$0
$0
$0
$0
$0
$0
$0
$0
$10,278
$0
$0
$0
$0
$0
$0
$0
$0
$10,612
$0
$0
$0
$0
$0
$0
$0
$0
$9,259
$0
$0
$0
$0
$0
$0
$0
$0
$9,755
$0
$0
$0
$0
$0
$0
$0
$0
$10,442
$0
$0
$0
$0
$0
$0
$0
$0
$10,909
$0
$0
$0
$0
$0
$0
$0
$0
$11,842
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Expenditures from Operations

Cash Spending
Bill Payments
Subtotal Spent on Operations
$4,264
$0
$4,264
$3,326
$0
$3,326
$3,970
$0
$3,970
$5,341
$0
$5,341
$4,541
$0
$4,541
$5,105
$0
$5,105
$4,187
$0
$4,187
$3,829
$0
$3,829
$5,285
$0
$5,285
$4,153
$0
$4,153
$5,242
$0
$5,242
$4,494
$0
$4,494
Additional Cash Spent

Non Operating (Other) Expense
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
$0
$0
$0
$0
$0
$0
$0
$0
$4,264
$0
$0
$0
$0
$0
$0
$0
$0
$3,326
$0
$0
$0
$0
$0
$0
$0
$0
$3,970
$0
$0
$0
$0
$0
$0
$0
$0
$5,341
$0
$0
$0
$0
$0
$0
$0
$0
$4,541
$0
$0
$0
$0
$0
$0
$0
$0
$5,105
$0
$0
$0
$0
$0
$0
$0
$0
$4,187
$0
$0
$0
$0
$0
$0
$0
$0
$3,829
$0
$0
$0
$0
$0
$0
$0
$0
$5,285
$0
$0
$0
$0
$0
$0
$0
$0
$4,153
$0
$0
$0
$0
$0
$0
$0
$0
$5,242
$0
$0
$0
$0
$0
$0
$0
$0
$4,494
Net Cash Flow

Cash Balance
($358)
$8,342
$2,371
$10,713
$3,454
$14,166
$3,641
$17,807
$5,321
$23,128
$5,173
$28,300
$6,425
$34,726
$5,430
$40,155
$4,470
$44,625
$6,289
$50,914
$5,666
$56,581
$7,348
$63,929
Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
Non Operating (Other) Income
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
0.00%
Page 34
Appendix
Pro Forma Balance Sheet

Assets
Current Assets
Cash
Accounts Receivable
Inventory
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$8,700
$0
$250
$1,000
$9,950
$8,342
$294
$1,068
$1,000
$10,703
$10,713
$407
$816
$1,000
$12,935
$14,166
$528
$488
$1,000
$16,183
$17,807
$636
$1,101
$1,000
$20,544
$23,128
$694
$684
$1,000
$25,505
$28,300
$721
$1,252
$1,000
$31,274
$34,726
$744
$816
$1,000
$37,286
$40,155
$641
$429
$1,000
$42,225
$44,625
$686
$1,022
$1,000
$47,333
$50,914
$734
$595
$1,000
$53,243
$56,581
$766
$1,151
$1,000
$59,497
$63,929
$834
$668
$1,000
$66,430
$10,000
$0
$10,000
$19,950
$10,000
$172
$9,828
$20,531
$10,000
$345
$9,655
$22,590
$10,000
$517
$9,483
$25,665
$10,000
$690
$9,310
$29,854
$10,000
$862
$9,138
$34,643
$10,000
$1,035
$8,965
$40,239
$10,000
$1,207
$8,793
$46,079
$10,000
$1,380
$8,620
$50,845
$10,000
$1,552
$8,448
$55,780
$10,000
$1,725
$8,275
$61,519
$10,000
$1,897
$8,103
$67,600
$10,000
$2,070
$7,930
$74,360
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Starting
Balances

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$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
$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
Total Liabilities
$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
$30,000
($10,050)
$0
$19,950
$19,950
$30,000
($10,050)
$581
$20,531
$20,531
$30,000
($10,050)
$2,640
$22,590
$22,590
$30,000
($10,050)
$5,715
$25,665
$25,665
$30,000
($10,050)
$9,904
$29,854
$29,854
$30,000
($10,050)
$14,693
$34,643
$34,643
$30,000
($10,050)
$20,289
$40,239
$40,239
$30,000
($10,050)
$26,129
$46,079
$46,079
$30,000
($10,050)
$30,895
$50,845
$50,845
$30,000
($10,050)
$35,830
$55,780
$55,780
$30,000
($10,050)
$41,569
$61,519
$61,519
$30,000
($10,050)
$47,650
$67,600
$67,600
$30,000
($10,050)
$54,410
$74,360
$74,360
$19,950
$20,531
$22,590
$25,665
$29,854
$34,643
$40,239
$46,079
$50,845
$55,780
$61,519
$67,600
$74,360
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
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May 2001

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