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Table of Contents
Table of Contents
Page 2
Green Investments
Page 1
Green Investments
Chart: Highlights
Highlights
$240,000
$200,000
$160,000
Sales
$120,000
Gross Margin
$80,000
Net Profit
$40,000
$0
($40,000)
($80,000)
Year 1
Year 2
Year 3
1.1 Objectives
1.2 Mission
Green Investments' mission is to become the premier financial service organization that makes
investment in companies with outstanding environmental records and practices. Green
Investments, through comprehensive research and well thought out and verifiable marker
criteria will be able to identify sound environmental investments. By offering the highest level of
services, Green Investments will succeed as a company as well as have a positive impact on
our environment.
1.3 Keys to Success
Page 2
Green Investments
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Brochures
Licenses
Insurance
Research and Development
Other
Total Start-up Expenses
$5,000
$500
$500
$2,000
$500
$9,000
$2,500
$20,000
Start-up Assets
Cash Required
Other Current Assets
Long-term Assets
Total Assets
$79,000
$7,000
$19,000
$105,000
Total Requirements
$125,000
Page 3
Green Investments
$20,000
$105,000
$125,000
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$26,000
$79,000
$0
$79,000
$105,000
$0
$0
$0
$0
$0
Capital
Planned Investment
Investor 1
Investor 2
Additional Investment Requirement
Total Planned Investment
$75,000
$50,000
$0
$125,000
($20,000)
$105,000
$105,000
Total Funding
$125,000
Page 4
Green Investments
3.0 Services
Green Investments is a financial service company that offers investment advice specifically for
stocks. GI purchases fiscal performance research from Bear Stearns, one of the highest
respected firms in the market. In addition to solid financial performance criteria, GI has
developed a set of environmental markers by which it can analyze and grade the attractiveness
of the environmental impact that a company has.
As mentioned earlier, the economic performance of a company is rated by the financial firm
Bear Stearns. Green Investments purchases Bear Stearns research based on recognition that
there is no value added to do this research. The confidence of the research is quite high
because of the firm performing it. If Bear Stearns' research or another firm of comparable
quality was not available Green Investments would have to rethink the decision to farm out this
research.
Green Investments has developed a comprehensive set of environmental markers for which a
company and their environmental impact can be evaluated. The following areas are evaluated:
Energy usage
Water usage
Recycling program
Paper consumption and procurement
Chemical cleaning usage
Ground maintenance impact
Formal environmental policy
Recycling rate
All of the markers include current, next stage, and long run benchmarks.
Green Investments takes the list of recommended investments from Bear Stearns and then
applies environmental marker criteria to narrow the list down. The result is a list of possible
investments (stocks) that are recommended because of their fiscal and environmental
performance. Green Investments attempts to make evaluations of companies in a wide range of
sectors allowing the customer to make the choice as to what type of company/industry that
they would like to invest in.
Green Investments' service charge is similar to a typical brokerage fee system based on a
percentage. While Green Investments is a bit more expensive than other standard financial
services companies because of the additional research required, the variance is not that
material, particularly to customers that want good performing stocks but only want to invest
with environmentally sound companies.
Several recent well respected studies indicate that "green" stocks are not inherently under
performing. Actually it is just the reverse, companies that make decisions with environmental
considerations in mind generally perform better.
Page 5
Green Investments
<$1 million (household worth): These customers are middle class people who have a
concern for the environment and are taking personal action through their choosing of stock
investments based on companies with both strong economic and environmental
performance records. Because these people do not have an over abundance of money they
choose stocks that are of moderate risk. Generally, this group has 35%-45% of their
portfolio in stocks, the remaining percentages in other types of investments.
>$1 million (household worth): These customers are upper middle class to upper class.
They have amassed over $1 million in savings and are fairly savvy investors (themselves or
the people they hire). These people are generally concerned about the rate of return of their
investments but also have environmental concerns.
Vehicles are chosen with environmental concerns in mind. This means they are unlikely to
own a SUV, they may in fact be one of the first adopters of the new hybrids (gas/electric
vehicles).
Many of the people commute by bike, car pool or use public transportation when possible.
Active recyclers, both at work as well as at home.
Retail purchases are made with environmental concerns in mind.
A higher percentage of these people relative to the general population are vegetarians.
For recreational sports, particularly outdoor sports, the people are more likely to enjoy
hiking, XC skiing, and other human powered activities instead of golf, downhill skiing,
snowmobiling, and jet skiing, all sports that are destructive to the environment.
Market Analysis
Potential Customers
<$1 million worth customers
Year 1
Year 2
Year 3
Year 4
Year 5
1,232,000
1,330,560
1,437,005
1,551,965
1,676,122
Growth
8%
CAGR
8.00%
Page 6
Green Investments
7%
7.85%
223,090
1,455,090
238,706
1,569,266
255,415
1,692,420
273,294
1,825,259
292,425
1,968,547
7.00%
7.85%
Page 7
Green Investments
Bonds
Treasury bills
Stocks, mutual funds
Insurance policies
Annuities
IRAs
Within the industry, customers are served by a wide range of service providers including:
Buying decisions are often based on who you know or familiarity that the person may have with
a specific company. Most of the service providers can provide a similar menu of investment
options.
Fee structures vary from firm to firm. Many are percentage based on the amount of money the
client investments. Some firms charge hourly rates while other firms charge a quarterly
management fee. The fee structures are set in stone for some service providers while others
take a more flexible approach and are willing to work with the customer to set up special
arrangements.
4.3.1 Competition and Buying Patterns
Green Investments has no direct competitors that offer environmentally sound stock
investment services. All of the current environmental investment options are mutual fund
based. Examples of this type of mutual funds include Janus, Citizen Funds, Sierra Club
Environmental Fund, and Portfolio 21.
Other competitors that Green Investments faces are the typical range of financial advisors.
These indirect competitors provide customers with a wide range of different investment options.
They could always place an investment order for a specific company, but these specific
competitors do not do any independent research on the environmentalism of different
companies.
5.0 Strategy and Implementation Summary
Green Investments will leverage its sustainable competitive edge of independent environmental
research based on a custom set of criteria based markers for an objective measure of
a company's dedication to environmentalism. The competitive edge will be marketed by using
the mantra of "think globally, act locally." This marketing slogan will encourage people to do
their part in regards to helping the environment through responsible investing. The sales
Page 8
Green Investments
campaign will rely on metrics that indicate environmental investments can and do outperform
the S&P 500 Index.
5.1 Competitive Edge
Green Investments' competitive edge is the environmental marker criteria that when applied
indicates which economic performing companies with solid environmental commitments. The
markers are effective for extremely valuable for several reasons:
Meaningful: They are based on extensive research, providing a streamlined overview of the
environmental performance of the companies.
Context-based: Allows a high degree of comparability with similar businesses.
Convenient: Far easier to use than large scale internal audits.
The key here is the fact that an objective, easy to apply, and accurate measurement system
has been developed to provide environmental analysis for any company that has the markers
applied to them. No one else offers this type of service as an information source for the decision
making process of stock investments.
5.2 Marketing Strategy
"Think globally, act locally." This well known and concise mantra simply suggests everyone
should do their part. Green Investments services allows people to make investments based on
their conscience. So many people want to do good but are unsure how to. Green Investments'
services allows people to do the right thing, with no real cost relative to the other options.
Green Investments' returns are better than the S&P 500 Index.
The marketing effort will concentrate on Green Investments' ability to empower people to make
a substantial difference in this world while getting a great return on their money. Green
Investments will use magazine advertisements and community based marketing (networking,
sponsorship and participation in seminars) to increase visibility for Green Investments and the
services offered. The advertisements will be a steady way that people will become aware of the
investment options as well as some visibility for the company itself. The community
involvement implicitly accepts the premise that good business relies on networking (inter
relationships, both business and personal) to be a significant source of business and good will.
Green Investments will participate in numerous on-topic events and seminars that will display
them as experts as well as give them a podium to describe the different services.
5.3 Sales Strategy
The sales strategy will rely on using quantitative evidence the recommended companies
outperform the S&P 500 Index. In 1999-2001, Green Investments' chosen companies
outperformed the index by 2.4%. This is a significant amount. The sales strategy will
concentrate on that by making smart green investments, you can achieve better then average
returns on your money. A sales packet will be assembled and distributed to prospective
customers that shows the better than average historic returns that Green Investments
recommended companies enjoy.
Page 9
Green Investments
Sales Forecast
Year 1
Year 2
Year 3
$54,746
$22,889
$77,635
$156,665
$73,633
$230,298
$178,225
$83,766
$261,991
Year 1
$8,212
$3,433
$11,645
Year 2
$23,500
$11,045
$34,545
Year 3
$26,734
$12,565
$39,299
Sales
Sales Monthly
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
Month 12
Month 11
Month 10
Month 9
Month 8
Month 7
Month 6
Month 5
Month 4
Month 3
Month 2
Month 1
$0
Page 10
Green Investments
5.4 Milestones
Green Investments has identified several milestones which will act as ambitious yet achievable
goals for the organization. By establishing the goals, the need to reach them will develop an
implicit incentive for all organizational members to work hard to achieve the milestones.
Business plan completion: The business plan is the roadmap for the organization. There is
value in the process of the writing of the business plan, forcing the writers to analyze a
multitude of issues.
First account of over $1 million invested: This would be a significant amount of money
for an individual account and the organization will strive to achieve many of these
customers.
Revenue of $250,000: With the achievement of this milestone and the previous one, there
will be a clear reaffirmation that the business model is successful.
Table: Milestones
Milestones
Milestone
Business plan completion
First $ million account
Profitability
Revenue of $250K
Totals
Start Date
1/1/2003
1/1/2003
1/1/2003
1/1/2003
End Date
2/1/2003
4/15/2004
6/1/2005
9/15/2004
Budget
$0
$0
$0
$0
$0
Manager
Sarah & Steve
Sarah
Steve
Sarah
Department
Planning
Sales
Accounting
Sales
Page 11
Green Investments
Chart: Milestones
Milestones
Profitability
Revenue of $250K
Q1 `03
Q2
Q3
Q4
Q1 `04
Q2
Q3
Q4
Q1 `05 Q2
Page 12
Green Investments
The other member of Green Investments management team is Steve Burke. Steve hails from a
financial background. Steve has an undergraduate degree in Finance from Seattle University
and a MBA from the University of Washington. After school Steve went to work for Salomon
Smith Barney in their investment department for eight years.
Page 13
Green Investments
The positions will be phased in on an as needed basis. Please review the following chart for
personnel forecasts.
Table: Personnel
Personnel Plan
Sarah
Steve
Account Manager
Administrative Assistant
Bookkeeper
Research Assistant
Total People
Total Payroll
Year 1
Year 2
Year 3
$30,000
$30,000
$27,000
$15,000
$10,000
$8,250
6
$40,000
$40,000
$36,000
$15,000
$12,000
$9,000
6
$40,000
$40,000
$36,000
$15,000
$12,000
$9,000
6
$120,250
$152,000
$152,000
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other
Year 1
Year 2
Year 3
1
10.00%
10.00%
30.00%
0
2
10.00%
10.00%
30.00%
0
3
10.00%
10.00%
30.00%
0
Page 14
Green Investments
Break-even Analysis
$15,000
$12,000
$9,000
$6,000
$3,000
$0
($3,000)
($6,000)
($9,000)
($12,000)
$0
$6,000
$3,000
$9,000
$12,000
$18,000
$24,000
$30,000
$15,000
$21,000
$27,000
$33,000
Break-even Analysis
Monthly Revenue Break-even
$15,225
Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost
15%
$12,941
Page 15
Green Investments
Page 16
Green Investments
Profit Monthly
$0
($2,000)
($4,000)
($6,000)
($8,000)
($10,000)
($12,000)
Month 1
Month 3
Month 5
Month 7
Month 9
Month 11
Month 2
Month 4
Month 6
Month 8
Month 10
Month 12
Profit Yearly
$20,000
$0
($20,000)
($40,000)
($60,000)
($80,000)
Year 1
Year 2
Year 3
Year 1
Year 2
Year 3
$77,635
$230,298
$261,991
Page 17
Green Investments
$11,645
$0
$11,645
$34,545
$0
$34,545
$39,299
$0
$39,299
Gross Margin
Gross Margin %
$65,990
85.00%
$195,753
85.00%
$222,692
85.00%
Payroll
Sales and Marketing and Other Expenses
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Other
$120,250
$0
$3,804
$7,800
$1,800
$1,800
$18,038
$1,800
$152,000
$0
$317
$7,800
$1,800
$1,800
$22,800
$1,800
$152,000
$0
$317
$7,800
$1,800
$1,800
$22,800
$1,800
$155,292
$188,317
$188,317
($89,301)
($85,497)
$73
$0
$7,436
$7,753
$220
$2,165
$34,375
$34,692
$120
$10,277
Net Profit
Net Profit/Sales
($89,374)
-115.12%
$5,051
2.19%
$23,979
9.15%
Expenses
Year 2
Year 3
$77,635
$77,635
$230,298
$230,298
$261,991
$261,991
$0
$3,000
$0
$0
$0
$0
$0
$80,635
$0
$0
$0
$0
$0
$0
$0
$230,298
$0
$0
$0
$0
$0
$0
$0
$261,991
Year 1
Year 2
Year 3
$120,250
$38,394
$158,644
$152,000
$71,497
$223,497
$152,000
$84,646
$236,646
$0
$0
$0
Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
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
Sales Tax, VAT, HST/GST Paid Out
Page 18
Green Investments
$300
$0
$0
$0
$0
$0
$158,944
$1,000
$0
$0
$0
$0
$0
$224,497
$1,000
$0
$0
$0
$0
$0
$237,646
($78,308)
$692
$5,801
$6,492
$24,345
$30,837
Chart: Cash
Cash
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
Cash Balance
$20,000
$10,000
$0
Month 12
Month 11
Month 10
Month 9
Month 8
Month 7
Month 6
Month 5
Month 4
Month 3
Month 2
Month 1
($10,000)
Page 19
Green Investments
Year 2
Year 3
$692
$7,000
$7,692
$6,492
$7,000
$13,492
$30,837
$7,000
$37,837
$19,000
$3,804
$15,196
$22,888
$19,000
$4,121
$14,879
$28,371
$19,000
$4,438
$14,562
$52,399
Year 1
Year 2
Year 3
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$4,561
$2,700
$0
$7,261
$5,994
$1,700
$0
$7,694
$7,043
$700
$0
$7,743
Long-term Liabilities
Total Liabilities
$0
$7,261
$0
$7,694
$0
$7,743
$125,000
($20,000)
($89,374)
$15,626
$22,888
$125,000
($109,374)
$5,051
$20,677
$28,371
$125,000
($104,323)
$23,979
$44,656
$52,399
$15,626
$20,677
$44,656
Assets
Current Assets
Cash
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
Page 20
Green Investments
Ratio Analysis
Year 1
Year 2
Year 3
Industry Profile
n.a.
196.64%
13.76%
8.79%
30.58%
33.61%
66.39%
100.00%
24.67%
47.56%
52.44%
100.00%
13.36%
72.21%
27.79%
100.00%
44.18%
76.27%
23.73%
100.00%
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
31.73%
0.00%
31.73%
68.27%
27.12%
0.00%
27.12%
72.88%
14.78%
0.00%
14.78%
85.22%
38.61%
13.60%
52.21%
47.79%
100.00%
85.00%
200.12%
0.00%
-115.03%
100.00%
85.00%
82.81%
0.00%
3.23%
100.00%
85.00%
75.85%
0.00%
13.12%
100.00%
100.00%
82.68%
1.66%
1.37%
1.06
1.06
31.73%
-571.95%
-390.49%
1.75
1.75
27.12%
34.90%
25.43%
4.89
4.89
14.78%
76.71%
65.37%
1.59
1.22
3.09%
60.22%
7.76%
Sales Growth
Percent of Total Assets
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
Year 1
Year 2
Year 3
-115.12%
-571.95%
2.19%
24.43%
9.15%
53.70%
n.a
n.a
9.42
27
3.39
12.17
26
8.12
12.17
28
5.00
n.a
n.a
n.a
0.46
1.00
0.37
1.00
0.17
1.00
n.a
n.a
$430
-1,231.74
$5,798
33.80
$30,094
286.46
n.a
n.a
0.29
32%
1.06
4.97
0.12
27%
1.75
11.14
0.20
15%
4.89
5.87
n.a
n.a
n.a
n.a
Activity Ratios
Accounts Payable Turnover
Payment Days
Total Asset Turnover
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
Page 21
Green Investments
Dividend Payout
0.00
0.00
0.00
n.a
Page 22
Appendix
Table: Sales Forecast
Sales Forecast
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
$2,500
$0
$2,500
$3,545
$0
$3,545
$4,545
$2,136
$6,681
$5,878
$2,763
$8,641
$6,335
$2,977
$9,312
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$7,558
$3,552
$11,110
$8,255
$3,880
$12,135
$8,656
$4,068
$12,724
Sales
<$1 million worth customers
>$1 million worth customers
Total Sales
Direct Cost of Sales
0%
0%
$0
$0
$0
Month 1
$0
$0
$0
Month 2
$0
$0
$0
Month 3
$7,474
$3,513
$10,987
Month 9
Month 10
Month 11
Month 12
$0
$0
$0
$375
$532
$682
$882
$950
$1,121
$1,134
$1,238
$1,298
$0
$0
$0
$0
$0
$320
$414
$447
$527
$533
$582
$610
$0
$0
$0
$375
$532
$1,002
$1,296
$1,397
$1,648
$1,667
$1,820
$1,909
Page 1
Appendix
Table: Personnel
Personnel Plan
Sarah
Steve
Account Manager
Administrative Assistant
Bookkeeper
Research Assistant
Total People
Total Payroll
0%
0%
0%
0%
0%
0%
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$2,500
$2,500
$0
$0
$0
$0
2
$2,500
$2,500
$0
$0
$0
$750
3
$2,500
$2,500
$1,500
$1,500
$1,000
$750
6
$2,500
$2,500
$2,000
$1,500
$1,000
$750
6
$2,500
$2,500
$2,500
$1,500
$1,000
$750
6
$2,500
$2,500
$3,000
$1,500
$1,000
$750
6
$2,500
$2,500
$3,000
$1,500
$1,000
$750
6
$2,500
$2,500
$3,000
$1,500
$1,000
$750
6
$2,500
$2,500
$3,000
$1,500
$1,000
$750
6
$2,500
$2,500
$3,000
$1,500
$1,000
$750
6
$2,500
$2,500
$3,000
$1,500
$1,000
$750
6
$2,500
$2,500
$3,000
$1,500
$1,000
$750
6
$5,000
$5,750
$9,750
$10,250
$10,750
$11,250
$11,250
$11,250
$11,250
$11,250
$11,250
$11,250
Page 2
Appendix
Table: General Assumptions
General Assumptions
Plan Month
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
10
11
Month 12
12
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
Long-term Interest
Rate
Tax Rate
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
Other
Page 3
Appendix
Table: Profit and Loss
Month 5
Month 6
Month 7
Month 8
Month 10
Month 11
Month 12
Sales
Month 1
$0
$0
$0
$2,500
$3,545
$6,681
$8,641
$9,312
$10,987
$11,110
$12,135
$12,724
$0
$0
$0
$375
$532
$1,002
$1,296
$1,397
$1,648
$1,667
$1,820
$1,909
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$375
$532
$1,002
$1,296
$1,397
$1,648
$1,667
$1,820
$1,909
Gross Margin
Gross Margin %
Month 2
Month 3
Month 9
$0
$0
$0
$2,125
$3,013
$5,679
$7,345
$7,916
$9,339
$9,444
$10,315
$10,816
0.00%
0.00%
0.00%
85.00%
85.00%
85.00%
85.00%
85.00%
85.00%
85.00%
85.00%
85.00%
$5,000
Expenses
Payroll
$5,750
$9,750
$10,250
$10,750
$11,250
$11,250
$11,250
$11,250
$11,250
$11,250
$11,250
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$317
$317
$317
$317
$317
$317
$317
$317
$317
$317
$317
$317
Rent
$650
$650
$650
$650
$650
$650
$650
$650
$650
$650
$650
$650
Utilities
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
Insurance
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$750
$150
$863
$150
$1,463
$150
$1,538
$150
$1,613
$150
$1,688
$150
$1,688
$150
$1,688
$150
$1,688
$150
$1,688
$150
$1,688
$150
$1,688
$150
$7,167
$8,030
$12,630
$13,205
$13,780
$14,355
$14,355
$14,355
$14,355
$14,355
$14,355
$14,355
($7,167)
($8,030)
($12,630)
($11,080)
($10,766)
($8,676)
($7,010)
($6,439)
($5,016)
($4,911)
($4,040)
($3,539)
($6,122)
Payroll Taxes
Other
15%
($6,850)
($7,713)
($12,313)
($10,763)
($10,449)
($8,359)
($6,693)
($4,699)
($4,594)
($3,723)
($3,222)
Interest Expense
$0
$0
$0
$0
$0
$0
$0
$0
$0
$25
$25
$23
Taxes Incurred
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
($7,167)
($8,030)
($12,630)
0.00%
0.00%
0.00%
Net Profit
Net Profit/Sales
($11,080)
($10,766)
-443.18%
-303.70%
($8,676)
-129.85%
($7,010)
($6,439)
($5,016)
($4,936)
($4,065)
($3,561)
-81.13%
-69.14%
-45.65%
-44.43%
-33.50%
-27.99%
Page 4
Appendix
Table: Cash Flow
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Cash Received
Cash from Operations
Cash Sales
$0
$0
$0
$2,500
$3,545
$6,681
$8,641
$9,312
$10,987
$11,110
$12,135
$12,724
$0
$0
$0
$2,500
$3,545
$6,681
$8,641
$9,312
$10,987
$11,110
$12,135
$12,724
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$3,000
$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
$0
$0
$0
$0
$0
$0
$0
$2,500
$3,545
$6,681
$8,641
$9,312
$10,987
$14,110
$12,135
$12,724
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 10
Month 11
Month 12
$5,000
$5,750
$9,750
$10,250
$10,750
$11,250
$11,250
$11,250
$11,250
$11,250
$11,250
$11,250
$62
$1,854
$1,983
$2,578
$3,020
$3,262
$3,799
$4,087
$4,193
$4,437
$4,484
$4,636
$5,062
$7,604
$11,733
$12,828
$13,770
$14,512
$15,049
$15,337
$15,443
$15,687
$15,734
$15,886
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$300
$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
Dividends
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$5,062
$7,604
$11,733
$12,828
$13,770
$14,512
$15,049
$15,337
$15,443
$15,687
$15,734
$16,186
($5,062)
($7,604)
($11,733)
($10,328)
($10,225)
($7,831)
($6,409)
($6,025)
($4,456)
($1,577)
($3,599)
($3,461)
Expenditures
0.00%
Month 9
Page 5
Appendix
Cash Balance
$73,938
$66,335
$54,602
$44,275
$34,049
$26,218
$19,809
$13,785
$9,329
$7,752
$4,153
$692
Page 6
Appendix
Table: Balance Sheet
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 Assets
Cash
Other Current Assets
Total Current Assets
$79,000
$7,000
$86,000
$73,938
$7,000
$80,938
$66,335
$7,000
$73,335
$54,602
$7,000
$61,602
$44,275
$7,000
$51,275
$34,049
$7,000
$41,049
$26,218
$7,000
$33,218
$19,809
$7,000
$26,809
$13,785
$7,000
$20,785
$9,329
$7,000
$16,329
$7,752
$7,000
$14,752
$4,153
$7,000
$11,153
$692
$7,000
$7,692
$19,000
$0
$19,000
$105,000
$19,000
$317
$18,683
$99,621
$19,000
$634
$18,366
$91,701
$19,000
$951
$18,049
$79,651
$19,000
$1,268
$17,732
$69,007
$19,000
$1,585
$17,415
$58,464
$19,000
$1,902
$17,098
$50,316
$19,000
$2,219
$16,781
$43,590
$19,000
$2,536
$16,464
$37,249
$19,000
$2,853
$16,147
$32,476
$19,000
$3,170
$15,830
$30,582
$19,000
$3,487
$15,513
$26,666
$19,000
$3,804
$15,196
$22,888
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$0
$0
$0
$0
$1,788
$0
$0
$1,788
$1,897
$0
$0
$1,897
$2,477
$0
$0
$2,477
$2,912
$0
$0
$2,912
$3,136
$0
$0
$3,136
$3,663
$0
$0
$3,663
$3,947
$0
$0
$3,947
$4,045
$0
$0
$4,045
$4,288
$0
$0
$4,288
$4,330
$3,000
$0
$7,330
$4,478
$3,000
$0
$7,478
$4,561
$2,700
$0
$7,261
Long-term Liabilities
Total Liabilities
$0
$0
$0
$1,788
$0
$1,897
$0
$2,477
$0
$2,912
$0
$3,136
$0
$3,663
$0
$3,947
$0
$4,045
$0
$4,288
$0
$7,330
$0
$7,478
$0
$7,261
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$125,000
($20,000)
$0
$105,000
$105,000
$125,000
($20,000)
($7,167)
$97,833
$99,621
$125,000
($20,000)
($15,197)
$89,804
$91,701
$125,000
($20,000)
($27,826)
$77,174
$79,651
$125,000
($20,000)
($38,906)
$66,095
$69,007
$125,000
($20,000)
($49,672)
$55,328
$58,464
$125,000
($20,000)
($58,347)
$46,653
$50,316
$125,000
($20,000)
($65,357)
$39,643
$43,590
$125,000
($20,000)
($71,796)
$33,204
$37,249
$125,000
($20,000)
($76,812)
$28,188
$32,476
$125,000
($20,000)
($81,748)
$23,252
$30,582
$125,000
($20,000)
($85,813)
$19,187
$26,666
$125,000
($20,000)
($89,374)
$15,626
$22,888
Net Worth
$105,000
$97,833
$89,804
$77,174
$66,095
$55,328
$46,653
$39,643
$33,204
$28,188
$23,252
$19,187
$15,626
Page 7