ABE INTERNATIONAL COLLEGE OF BUSINESS & ACCOUNTANCY

TACLOBAN COLLEGE
TACLOBAN CITY

________________________________________________

In partial fulfillment of the Requirement in the subject Entrepreneurship and Business Plan

“R8 EXPRESS: COFFEE SHOP”

_______________________________

Submitted to

Ms. Grace Betanzor

Submitted by

Bryan Gacho
Merasol Gumapac
Mark Denver Marilla

S.Y 2010-2011

1
 TABLE OF CONTENTS

Acknowledgement

I. Introductory Page 5

A. Name and address of business 5

B. Nature of business 5

C. Statement of financial needed 5

D. Statement of confidentiality report 6

II. Executive Summary 6

III. Industry Analysis 7

A. Future outlook and trends 8

B. 1. Economic Condition 9

2. Socio-Cultural Condition 10

3. Demographic profile 10

C. Analysis of Competitors 10

IV. Description of Venture 11

A. Product

B. Service

C. Size of the Business

D. Office Equipment & Personnel 12

V.Production Plan

2
 A. Production Process 13

B. Physical Plant

C. Machinery and Equipment 15

VI. Marketing Plan

A. Pricing 16

B. Distribution

C. Production

D. Target Market Forecast 17

E. Controls 18

VII. Organizational Plan

A. Form of Ownership 19

B. Org. Structure

C. Roles and responsibilities and manners of organization 20

VIII. Assessment of Risk 22

IX. Financial Plan 23

A. Financial Object

B. Projected Income Statement 24-26

C. Projected Cash Flow 27-28

D. Projected Balance Sheet 27

3
4
I. Introductory Page

A. Name and Address of business

The group comes up to name the business “R8 EXPRESS: Coffee and T.” R8 stands for Region 8
or the Eastern Visayas Region, for our business is located at the heart of the region- Tacloban. The letter
T stands for tourism since our course THRM is related to Hospitality and Tourism Industry and also to
promote the region’s paradise and attractions through photo gallery concepts.

Downtown district of Tacloban is the proposed location of the business for it ideal source of our
potential target market. It is also that the downtown district is the commercial center of the region.

B. Names and Addresses of Principals

 Bryan M. Gacho Brgy. 4, Lawaan Eastern Samar

 Merasol R. Gumapac Blk11,L7,A7,P3,V & G Subd. Tac.City

 Mark Denver Marilla Sampagita,Sagkahan Tacloban City

C. Nature of Business

The business is a coffee shop that caters mostly to students, coffee shop goers, and individuals
that belongs in the average to above average earner group and has high disposable income.

Its unique concept will give a differential advantage among other coffee shop. “R Express: Coffee
and T.” will be adopting a mix of nature and tourism inspired photo gallery style with Earth color, green
and blue as accent as its concept. Partnership will be the form of this business venture, specifically
general partnership which means that all of the partners will be involved in management.

D. Statement of Financial Needed

Starting a business entails a certain amount of capital. The total investment requirement will be
P2, 500,000.00, 60% will be the partner’s equity and 40% from loan equity. The partnership will be
incurring a loan at the Development Bank of the Philippines; this loan will be worth P1,000,000.00 with
an interest of 10% annually and 7% discount rate. The partner’s equity will be divided equally among the
partners, thus, each partner’s contribution will be P250, 000.00.

5
E. Statement of Confidentiality Report

This business plan report is confidential and a property of the partners listed above. Any
reproduction of any of its contents without the prior consent of the group is prohibited.

II. Executive Summary

An innovative coffee business with nature inspired and a twist of nature and tourism
photo gallery concept will be launched as a new competition in the coffee shop market. With the brand
name “ R8 EXPRESS: Coffee and T. “ this will not only serve coffee and the usual cakes but will also
introduce high quality and nutritious region’s delicacies that adds twist to the coffee shop.

This business venture will be a partnership, specifically general partnership and will be located at
the downtown district of Tacloban. Finding of the business comes from two major sources; 60% partner’s
equity and 40% from loan equity.

The business venture will offer, costs less products and pricing scheme that is significantly lower
than that of competitor. We will offer different kinds of coffee, and other beverage, freshly baked cakes
and pastries and delicacies that will depend on the availability and demand.

Food and beverage are not only our main product but also the ambiance and business concept, the
souvenir items at affordable prices and the quality services that will offer recreation, comfort and
satisfaction.

The important values that will be associated with our venture is that, it will not only offer affordable
product but also the quality and health benefit of it specifically patterned to suit the local taste preference.
And we will also looking forward that our business will help in the tourism promotion of the region.

R8 EXPRESS target market are classified into students, middle and high class individuals, young
and middle age professionals, health conscious and travelers/tourists. The venture will cater to both the
informed and uninformed market segments and will also expect to attract a substantial number of 1st-time
coffee shop goers and adventurous coffee shop goers. “R8 EXPRESS” will ensure that customers will get

6
the best purchase and post-purchase experience and as well as memorable experience as our main service
so as to encourage repeat buyers.

The promotional strategies that will be employed would include signage, tarpaulins,
flyers/pamphlets, radio ad., sales promotion and internet advertising. The coffee shop itself; the interior
design, theme and the exterior as well are also set to attract customers.

An additional product variety and product innovation will be offered as part of the market
development strategy and after achieving sufficient product compliance from the target market. That will
be projected after the first 2 years of “R8 EXPRESS” operation.

Stiff competition is highly expected for coffee shop business is one of the fastest growing
ventures here in Tacloban. However, with a unique concept and marketing strategy with the positive
results from the market research, maximum profitability may be expected from this business venture, with
an annual growth rate of 10%.

BUSINESS OBJECTIVES AND GOALS:

 To meet the growing needs of the target market
 To create social responsibility as to promote the tourism of Eastern Visayas ad
environmental awareness.
 To establish an effective and profitable marketing mix of product, place, price and
promotion.
 To increase sales by 10 to 20 per cent annually for the first three years
 To evaluate the competitive environment and continue to establish a differential
advantage
 To make agreement with coffee and delicacies distributors and bakery ventures for high
quality and best choice of products
 To create a cozy and friendly environment
 To become the foremost coffeehouse in the area


III. Industry Analysis

A. Future Outlook and Trends

About the Coffee Drinking Trends

Each year, several different organizations publish reports on coffee drinking trends in the
United States and around the world. Those reports tell how much coffee is bought and
sold. They tell who buys and drinks coffee, how much coffee people drink in different

7
 parts of the country and the world, and what kind of coffee and coffee drinks are most
and least popular.
Significance
Understanding trends in coffee drinking can help coffee shop owners, roasters and other
coffee professionals make business decisions about what products to order and offer in
their shops. The information is also useful to other food retailers, those in the hospitality
industry and anyone who is considering a career in the coffee industry.
The Facts
 The most significant coffee drinking trends in the past 50 years include:
- A steady drop in daily coffee consumption from 1950 to 1993
- A steady upward trend in daily coffee consumption from 1993 onward
- A growing upward trend in specialty coffee consumption beginning in the early 1990s
- An increase in the number of people drinking coffee outside the home from 1950 to the
present
- An increase in the consumption of flavored coffees starting about 1992
- A growing awareness of ecological and economic issues surrounding coffee since 2002
- The growing number of people concerned with health effects of coffee
- An increase in coffee consumption in both young (18 to 24) and senior (60-plus) age
groups
Each of these trends has represented significant changes in the way that people view and
drink coffee. For instance, the coffee drinking trends from 2003 to 2008 clearly show an
increase n the number of people who are more likely to buy a coffee that is Fair Trade
certified, which suggests that consumers are growing more concerned with paying a fair
price for the coffee that they drink.
Benefits
 The NCDT shows that a growing number of people are concerned about the benefits
of drinking coffee, both personally and for the world at large. For instance, according to
the 2008 report on coffee drinking trends:
- 61 percent of coffee drinkers said that coffee improves their focus
- 46 percent listed the health benefits of drinking coffee as one of the reasons they drink
coffee
- Fair Trade certified and organic coffees are the fastest-growing segment of the specialty
coffee market

About Coffee Shop Trends

Coffee is the drink of choice for many people across the world. Every morning millions
of people rely on their morning fix to get going for the day. Coffee has become so
popular that there are a number of different flavors and combinations available. You can
fill up on anything from a white chocolate mocha to a double chocolate chip iced coffee,
or even vanilla bean treats. Coffee shops tend to do very well, especially the giant coffee
shop chain known as Starbucks. Back in the 1990s, Starbucks started to expand across the
entire world. It is now one of the largest coffee shop chains around.
History
A. Coffee has been around for thousands of years, but coffee shops have only become
popular over the last 100 years. As more people have relied on caffeine to wake them
up in the mornings, many small businesses have capitalized on this need. Coffee
shops in general provide a lot of business. Most people would rather get a cup of
coffee than enjoy a healthy breakfast. This is partly due to our fast-paced society.
Many people are busy, and they don't always have time to sit down for a full
breakfast, even if it would do them some good.
Benefits
8
 B. The benefits of these coffee shop trends are many. The proliferation of coffee shops
help the economy to flourish because they encourage spending and create jobs. With
coffee shops on every corner, it is not difficult to find a place to buy your morning
coffee. This provides consumers with the added convenience of saving time by being
able to pick up a quick cup of coffee regardless of where they are.
According to the Archives of Internal Medicine, coffee, especially decaffeinated
varieties, has been linked to a lower risk of type 2 diabetes. There are many other
health benefits of drinking coffee in moderation.
Features
C. Coffee is the most popular and widely used herb around, which is the reason why
coffee shops are so popular. People love coffee, so many small business people
capitalize on this by opening up coffee shops. Some coffee shops provide Internet
access so that people can use their laptops while they enjoy their coffee. This is
especially helpful for busy students on the go.
The coffee shop trend continues because there is a huge demand for it. If you took a
road trip across America, you would find coffee shops on just about every corner.
While the biggest and most well-known chain is Starbucks, you will also see many
mom-and-pop coffee shops or small coffee shop stands. Even gas stations sell coffee
to truckers and other travelers on the road.
Brazil has by far the most coffee drinkers worldwide, so you will certainly notice that
the coffee shop trends are very popular in Brazil. Some people even say that they can
smell the aroma of coffee in the air.
Coffee with no sugar or added creamers has no calories, and coffee shops have come
up with the trend of offering many coffee drinks and treats that are low-fat.

Read more: About Coffee Shop Trends | eHow.com

http://www.ehow.com/about_4567371_coffee-shop-trends.html#ixzz1FQBsIsJe
B.
1. Economic Condition:
• Philippine Economy
The Philippines is located in South East Asia and the Philippines economy has been
industrialized in the recent times. In terms of the purchasing power parity it ranked
24th according to the World Bank. The sectors that are of key importance in the
Philippines Economy are agriculture, industry and mining each of which can be
detailed under the following heads; Agricultural sector contributes about 17.1% of
the GDP, Industrial Sector contributes 18.1% in the GDP. “The Gross Domestic
product (GDP) for 2004 was $84.2 billion. The per capita gross domestic product was
$976. At constant 1985 prices and current prices in million PHP (Pesos).”
(http://www.economywatch.com/world_economy/philippines/) The Philippines is a
newly
• Tacloban City Economy

It is the regional center of commerce, tourism, education, culture, and government in

the region. It is one of the few first class cities in the Philippines (cities with an
annual income of more than PhP300 million) and is slated to be declared as a highly
urbanized city in 2008 (having exceeded the minimum qualfying standards in terms
of income and population). [2]
http://www.worldlingo.com/ma/enwiki/en/Tacloban_City#Official_Seal_of_The_Cit
y_of_Tacloban
• Philippine Agribusiness Report Q4 2010
9
 Coffee Production Growth to 2013/14: 13% to 7.8mn bags. Government and private
investment will help increase yields as new trees mature over the forecast period.
Despite the growth, the country will not reach the government's planed self-
sufficiency in the next few years.
http://www.pr-inside.com/philippines-agribusiness-report-q-r2111912.htm

2. Soocio-cultural Condition

The socio-cultural condition and urbanization affects the food and recreation
preference of individual as more people become preoccupied with their job that also leads
to a changing lifestyle. People nowadays are leading a fast paced life so they have lesser
time devoted to eating, food preparation and long out-of-town vacation so they tend to
find within the downtown establishments that offers recreation, relaxation and food and
beverage.
3. Demographic Profile
During the 2007 population census, Tacloban City has an actual total
populationcount of 217,199. With an average annual population growth rate of 2.73
percent, it is projected that for the year 2008, Tacloban’ City’s population would be
223,130 and based on this projected population, Tacloban City has a population density
of 1,106 persons per square kilometer or 11 persons per hectare. The disaggregated
population results of the 2007 census is yet to be released as of this documentation but
using ratio and proportion using the 2000 census as baseline data. Tacloban City has a
proportionate total household of 43,415 for 2008. Using the same method, Total Number
of Families counts at 47,014 with an Average Household Size of 5.1.
http://www.tacloban.gov.ph/

C. Analysis of Competitors
The current competitors of business venture in Tacloban City are classified into two: The
direct competitors which includes all coffee shop within the tacloban area that offers
unique concept and service. This includes, Jose Karlos, Libro: Books and coffee, Bo’s
Coffee, Starzrocks, and the LIKE. Indirect competitors includes food establishments that
offers coffee, Dunken Donuts and Mister Donuts.

10
IV. Description of Venture

A. Products

R8 Express: Coffee and T. will be offering high quality coffee, hot and cold beverages, teas and
other custom drinks at a very reasonable price. We will also sell fresh-baked pastries and other
confections like cookies, brownies, and cakes. In addition, the business venture will also offer same of
Region’s delicacies like “moron” and “binagol” just to add twist to the venture. Seasonally, the business
will add specialty and customized product during peal seasons. We will also market premium items and
souvenirs such as mugs and T-shirts with imprinted tourist attractions of Eastern Visayas and other
premium items like key chains, coin purse, etc.

B. Services

We will be having the following service:

 Opens 7 days a week (from 7:00am-9:00 pm)

 Casual dining atmosphere

 Internet connection/ WIFI

 Dine in and take out

 Free seating

 Guests or customers will feels at home

C. Size of Business

R8 Express: Coffee and T. will be renting a space within the downtown area feasible to our target
market. The desired size is 80 square meter, with a seating capacity of 30 pax.

11
D. Office Equipment and Personnel

OFFICE EQUIPMENT

Items Quantity Unit Cost Total

Computer 1 set 40000 40000
Fax/Printer 1 2500 2500
Telephone 1 3500 3500
File Cabinet 2 3000 6000
Tables 1 500 500
Chairs 3 100 300
Ceiling Fan 1 3000 3000
Office supplies 2000
P57,800

PERSONNEL

 General Manager –Owner

 Financial Manager – Owner

 Marketing Manager – Owner

 Store Attendant – Employee

 Barista – Employee

 Cashier – Employee

 Service Crew – Employee

12
V. Production Plan

A. Production Process

13
 Budgeting – is a list of all planned expenses and revenue. It is plan from saving and spending to
what is going to be purchased in working our product.

 Purchasing – getting the desired product of the right quality, at the right quantity, right price and
time from the right and reliable sources or suppliers.

 Receiving- is a print at which the purchaser inspects products and tasks legal possession of the
product ordered. A well designed receiving process is important to cost and quality control and
therefore warrants careful planning and implementation.

 Storing- proper storing of the purchased item maintains the quality of the product. In storing f &
b items required a certain degree of temperature and should be well ventilated.

 Production/Preparation- this should be done properly and accordingly to produce the desired
product that is high quality and satisfying to customers.

 Portioning- dividing the product into how many serving ensuring that each portion are consistent
and in quality.

 Serving- serving the finish product to our customers based on their orders.

 Controlling- concerned with the management measure with current performance.

14
C. Machinery and Equipment

Items Quantity Unit Cost TOTAL

Espresso Machine 1 65000 65000
Coffee Maker 1 25000 25000
Coffee Grinder 1 10000 8000
Coffee/Tea Pots 3 2000 6000
Blender 2 2500 5000
Refrigerator 1 21000 21000
Oven with Burner 1 30000 30000
Air conditioner 2 8000 16000
Cash Register 1 6000 6000
Microwave 2 5500 11000
Toaster 1 1000 1000
Mixer 1 2500 2500
P195,500.00

15
VI. Marketing Plan

A. Pricing

Pricing strategy is based on the quality and how much ingredients is being used per
product. The product will consistently be priced lower than the competitors so as to
improve its market share. Specialty products that are only unique in our venture will be
priced higher. Product price range from P20-P100 for coffee and other beverage. For
pastries and cakes the price range is P20-P50. Souvenirs and other items will depend
upon purchase from suppliers. Pricing will depend on the variable cost of each product,
and a 20% mark-up is utilized

B. Distribution

The customers can dine at the coffee shop or have a take out. Product will be displayed at
the counter section with their specific price (for pastries and souvenir items). For coffee and other
beverage product will be made upon order. The price , size and the picture of the product are on
the menu.

C. Promotion

We will develop an intensive marketing effort through promotions and advertising

strategies to attract attention and to create awareness. Among the strategies are signage,
tarpaulins, radio advertisement, online/internet advertisement, flyers and stickers.
Discount coupons and promos like offering a “Frequent drinkers club” discount to our
best customers.

16
D. Target Market Forecast

Potential Growth 2013 2014 2015 2016 2017

Custome
rs

Students 10% 35 39 43 47 51
(35%)

Young 10% 35 39 43 47 51
Professio
nals
(35%)

Travellers 10% 10 11 12 13 14
(10%)

First 10% 20 21 22 23 24
timers
(20%)

Total/year 10% 100*360 110*360 120*360 130*360 140*360

=36,000 =39,600 =43,200 =46,800 =50,400

17
E. Controls

a) Product Control – The making of the product will be monitored and the avoidance of use
of substitute ingredient will be implemented to assure that the product will maintain its
standard tasks, nutritional value and quality.

b) Price Control- The pricing of the product will be followed by the business aggressively.
Product’s price will not go lower than the average cost to ensure profitability.

c) Promotional Control- Once the product would be able to gain a market share,
advertisements would be lessened. Tarpaulins, flyers and discount coupon will be the
usual promotional activities for those plays major role in promotions.

18
VII. Organizational Plan

A. Form of Ownership

A type of business entity in which partners (owners) share with each other the profit or losses of
the business undertaking in which all have invested. Partnership’s are often favoured over corporations
for taxation purposes, as the partnership structured does not generally incur a tax on profit before it is
distributed to the partners.

B. Organizational Structure

Manager

Finance Store Supervisor Marketing

Manager Manager
Cashier

Barista Service Baker

Crew

19
C. Roles & Responsibilities of Members of Organization

a) Manager

 Manage the facilities, equipment, inventory, payroll and other basic operational
processes.

 Ensure that the coffee shop operate efficiently and profitably while maintaining their
reputation

 Responsible of maintain of high standards of food, beverage services and health safety

 Prepares the working schedule of all personnel including their shift and day off.

b) Marketing Manager

 Responsible in the research, planning/creating and execution of marketing and

promotional activities, monitoring sales and establish strategies for creating awareness of
the business.

 Responsible for the design and distribution of all direct marketing materials.

c) Financial Manager

 Responsible for finance, accountings, payroll, billing, taxes and any other matter related
to sales and revenue budgets.

d) Store Supervisor

 Makes decision regarding hiring, evaluation and termination of employees or makes

related recommendations.

 Monitors work methods, standards of performance, sanitation and safety standards

20
  Maintains proper security of units

 Ensure quality food preparation, presentation and service to the customers

e) Cashier

 Responsible on the billing of customers

 Coordinates activities of employees engaged in receiving money and keeping records of

transactions

 Works with financial manager to handle records and cash correctly

f) Barista

 Ensure the quality of the coffee and other complimentary and supplementary ingredients

 Prepares coffee orders from the customers –coordinates with the store supervisor

g) Baker

 Ensure the quality of pastries

 Maintains proper sanitation of the kitchen

h) Service Crew

 Attends/Welcome/Entertain customers and responsible in taking their orders

 Clears table and do dish washing ALSO.

Compensation:

Employees No. of Employees Salar/month Total

Store attendant 1 15,000 15,000

Barista 2 9,500 19,000

Baker 1 9,000 9,000

Service Crew 2 7,500 14,000

21
Cashier 1 9,000 9,000

MONTHLY: P66,000

Annual Salaries P798,000.00

Expense

VIII. Assessment of Risk

A. Evaluate the Weakness of Business

Although th business venture has a different concept among other coffee shop, stiff
competition still high. With the growing number of food and beverage establishments,
the emergence of more competitive brand may cause the decline of R8 Express: Coffee &
T.

B. New Technologies

New Technology can improve the business operations for most of the people are techno
savvy. It will add awareness to our business as well as help in our operation for this we
can be used for production and promotion.

22
IX. Financial Plan

A. Financial Objectives

• Increase earnings by 15% annually

• Stable earnings during recessionary periods

B. Start-up Expense/Pre-operating Expense

23
 Start-up Expense/ Pre-operating Expense

Legal Expense

Business Registration 5,000

Marketing Expenses

Signage 3,000

Tarpaulins 10,000

Stickers/Flyers 5,000

Radio Advertisements 15,000

OTHER 10,000

TOTAL 43,000

Prepaid Rent Expense

One month advance, one month 105,000

deposit(35,000/mos)

Premises Remodelling 150,000

Workers Compensation 19,000

Other Startup Expense 30,000

TOTAL P352,000

Required Start-up asset

• Operating Capital

-Payroll 66,500/month P133,000

(GOOD for 2 months)

-Cash Reserves 100,000/month P300,000

(Good for 3 months) P5,000

24
 TOTAL P438,000

• Start-up Inventory

-Coffee Beans P160,000

-Pastries and Confectionaries P150,000

-Beverages P150,000

--Souvenirs P50,000

-Office Supplies P3,000

TOTAL P453,000

• Machinery and Equipment P195,500

• Office Equipment P57,800

• China, Glass & Silverwares P50,000

• Furniture’s and Fixtures P130,000

• Employees Uniform & Linens P30,000

• Other Miscellaneous Expense P20,000

TOTAL P1,374,300

PROJECTED INCOME STATEMENT

R8 EXPRESS: COFFEE AND T.

Projected Income Statement

2013 2014 2015 2016 2017

Sales 3,600,000 3,960,000 4,356,000 4,878,720 5,464,166.4

Less: Cost of (1,980,000) (2,178,000) (2,395,800) (2,683,296) 3,905,291.5)

Sales

Gross: Profit 1,620,000 1,782,000 1,960,200 2,195,476 2,458,874.9

25
Less:
Operating
Expenses

Permit & (5,000) (3,000) (3,000) (5,000) (3,000)

Licenses

Salaries & (798,000) (798,000) (798,000) (821,940) (821,940)

Wages

Rent Expense (420,000) (420,000) (441,000) (463,050) (463,050)

Marketing (43,000) (50,000) (45,000) (30,000) (25,000)

Expense

Maintenance (12,000) (12,000) (15,000) (15,000) (15,000)

Depreciation (54,162.5) (47,392.2) (41,468.2) (36,284.64) (31,749.06)

Expense

Miscellaneous (30,000) (30,000) (35,000) (35,000) (20,000)

Expense

Remodelling (150,000)

Other Expense 30,000 10,000 (20,000) (25,000) (15,000)

P1,542,162.5 P1,370,392.2 P1,398,468.2 P1,431,274.6 P1,394,739

Operating 77,837.5 411,607.8 561,731.8 764,201.4 1,064,135.9

Profit/loss

Less: Interest (100,000) (90,000) (90,000) (90,000) (90,000)

Expense

Net 22,162.5 321,607.8 471,731.8 674,201.4 974,135.9

income/loss
before taxes

Less: Taxes (96,482.34) (141,519.54) (202,260.42) (292,240.77)

(30%)

Net P22,162.5 P225,125.46 P330,212.26 P471,940.98 P681,895.13

Income(loss)
after tax

26
 R8 Express: Coffee and T.

Projected Cash Flow

Pre- 2013 2014 2015 2016 2017

operating

Sales 3,600,000 3,960,000 4,356,000 4,878,720 5,464,166.4

Bank Loan 930,000

Partner’s 1,500,000
Equity

Total Inflow 2,430,000 3,600,000 3,960,000 4,356,000 4,878,720 5,464,166.4

Supplies 83,000 30,000 50,000 40,000 45,000

Merchandise 450,000 1,980,000 2,178,000 2,395,800 2,683,296 3,005,291.5

27
 Inventory

Furniture & 130,000

Fixtures

Machinery & 253,300

equipment

License and 5,000 3,000 3,000 5,000 3,000

permit

Salaries and 798,000 798,000 798,000 821,940 82,940

expense

Rent Expense 420,000 420,000 441,000 463,050 463,050

Mktg. Expense 43,000 50,000 45,000 30,000 25,000

Maintenance 12,000 12,000 15,000 15,000 15,000

Expense

Miscellaneous 30,000 30,000 35,000 35,000 20,000

expense

Interest 100,000 90,000 90,000 90,000 90,000

expense

Tax expense 96,482.34 141,519.54 202,260.42 292,240,77

Total Cash out 786,300 3,388,000 3,617,482.3 4,014,319.5 4,385,546.4 4,780,522.2

flow 4 4 2 7

Net In flow 1,643,700 212,000 342,517.66 341,680.46 493,173.58 683,644.13

Cash Beg. 1,643,70-0 1,431,700 1,774,217.6 2,088,898.1 2,582,071.7

6 2

Cash end 1,643,700s 1,431,700 1,774,217.6 2,088,898.1 2,582,071.7 3,265,715.8

6 2 3

28
 R8 Express: Coffee and T.

Projected Balance Sheet

2013

Assets

Current Assets

Cash 1,643,700

Inventories 355,297

Total 1,998,997

Non-current assets

Furniture and Fixtures 130,000

Machinery and Equipment 253,000 383,000

Less: Accumulated Depreciation (54,162.5) 328,837.5

29
China, Glass and Silverware 50,000

Uniforms and Licenses 30,000

Total 408,837.5

Total Assets P2, 407,834.5

Liabilities

Long Term Debt, Net 930,000

Capital

Owner’s Equity P1, 477,834.5

Total Liability and Capital P2, 407,834.5

X. Appendix

A. Letters

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 March 7,2011

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