Cleaning Service Business Plan
Cleaning Service Business Plan
Cleaning Service Business Plan
BUSINESS PLAN
Table of Contents
Table of Contents
Page 2
Chart: Highlights
Highlights
$200,000
$180,000
$160,000
$140,000
Sales
$120,000
Gross Margin
$100,000
Net Profit
$80,000
$60,000
$40,000
$20,000
$0
Year 1
Year 2
Year 3
Page 1
1.1 Objectives
Mother's House Cleaning Service's objectives for the first three years of operation include:
To increase our number of clients served by 20% per year through superior service.
To develop a sustainable home-based business, living off its own cash flow.
The utilization of Mother's House Cleaning Service on a regular basis by at least 30% of
the leads that contact us for more information.
1.2 Mission
Mother's House Cleaning Service's mission is to provide the customer with all residential cleaning
services in an environmentally sound, completely trustworthy, and professional manner. We exist to
attract and maintain customers. When we adhere to this maxim, everything else will fall into
place. Our services will exceed the expectations of our customers.
2.0 Company Summary
Mother's House Cleaning Service (MHCS), soon to be located in Cleanly, WA, will offer residential
home cleaning services. MHCS will offer a wide range of services to the residential client, from
general room cleaning to child/pet disasters. We will be going after the upper end of the market,
typically the affluent whose spouse does not have a full-time job but chooses to do other things with
his/her time, or the two income family who chooses not to clean the home themselves.
The business will be based out of Sarah Tookleen's home. Sarah will be responsible for scheduling,
estimates, training, inventory, ordering, payroll and customer care management. The business
organizational type will be a sole proprietorship, with six employees within the first 12 months.
According to sales forecasts, net profits within four months will be a respectable percentage of sales
and will grow steadily through year three.
2.1 Company Ownership
Mother's House Cleaning Service will be a sole proprietorship, owned by Sarah Tookleen.
Page 2
Page 3
Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Brochures
Insurance
Uniforms
Cleaning Equipment
Office Furniture
Communication Equipment
Computer Equipment
Magnetic Car Signs
Cleaning Supplies
Other
Total Start-up Expenses
$300
$50
$200
$500
$100
$800
$100
$100
$1,500
$75
$200
$0
$3,925
Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets
$9,075
$0
$0
$0
$9,075
Total Requirements
$13,000
Page 4
$3,925
$9,075
$13,000
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$0
$9,075
$0
$9,075
$9,075
$0
$0
$0
$0
$0
Capital
Planned Investment
Investor 1
Investor 2
Other
Additional Investment Requirement
Total Planned Investment
$13,000
$0
$0
$0
$13,000
($3,925)
$9,075
$9,075
Total Funding
$13,000
Page 5
Chart: Start-up
Start-up
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
Expenses
Assets
Investment
Loans
3.0 Services
Mother's House Cleaning Service will provide a residential house cleaning service for the upper end
of the market. We will have two target customers:
1. The affluent who has a spouse who does not work, but is not inclined to do housework. To many
a maid/house cleaner is a symbol of wealth, and this idea symbolizes this group of customers.
2. The two-income households whose opportunity costs are too great to spend time cleaning the
house.
MHCS offers house cleaning to these targeted customers. House cleaning ranges from cleaning of
standard rooms such as kitchen, bathrooms, bedrooms, as well as more unusual jobs like small
disasters from children and pets.
4.0 Market Analysis Summary
Mother's House Cleaning Service will target the upper end of the house cleaning market. It would
appear, at least if you opened the yellow pages, that there is not a need for another house cleaning
service. Make no mistake however, there is a need for a quality, honest service. MHCS is offering a
Page 6
high quality, totally trustworthy service for high income households. Our service will ooze
professionalism. We are perfectionists and this will be clear by our service.
Cleanly, WA currently has quite a range of different residential house cleaning services, from
independent companies to franchise services. No one else is specifically targeting the wealthy. We
will be targeting two wealthy populations:
1. Wealthy one-income households.
2. Affluent two-income households.
Both of these targeted groups appreciate a professional, reliable, trustworthy, cleaning service and
are willing to pay a premium to get this top shelf level of service. We will be marketing our service
to these people through word of mouth referrals as well as through membership lists from Cleanly's
exclusive membership clubs.
Cleanly, WA, like most cities, has lots of cleaning services. Although there are lots of competitors,
we are the only company to go after the upper socio/economic class exclusively. Demand for a
upper-end cleaning service will allow us to have steady growth.
4.1 Market Segmentation
Mother's House Cleaning Service will be focusing on two upper socio/economic groups. The first is
the affluent where only one spouse works. Although the other spouse is at home and has time to
clean, he/she chooses not to. This spouse would rather volunteer for a public interest organization,
play tennis and golf, or just spend time how he/she chooses to. They have no desire to clean the
house. To them that is not enjoyable and they have the money to pay someone to do that kind of
work. This market has annual incomes over $200,000 and live in expensive houses. While Cleanly,
WA only has 650 families that fall into this category, this group reliably uses cleaning services.
Our second segment of the market that we are targeting is the two income family. Over the last
couple of decades, the number of two-income households have increased, to a point where in parts of
the country they exceed one income families. Our target customer is two income families whose
combined annual income is over $125,000. These families don't really have the time to clean, can
afford a cleaning service, and choose to hire a service because the opportunity costs are too high to
Page 7
waste time cleaning their house. These households are typically age 32-55 and live in houses valued
over $250,000. Cleanly has approximately 10,000 families that fall into this demographic. It is this
segment which has tremendous potential for us. Nearly 80% of dual income households use an
outside cleaning service for some of their house cleaning according to the U.S. Department of
Commerce.
Additionally, there are some potential customers that MHCS has labeled as assorted "well-off"
households. These are families that have the money for our services that do not fit neatly into the
two previous categories.
Market Analysis
Potential Customers Growth
Wealthy
One- 11%
Year 1
Year 2
Year 3
Year 4
Year 5
10
11
CAGR
11.96%
income Households
Page 8
Affluent
Two- 13%
10
11
12
10.67%
income Households
Assorted "Well-off" 6%
0.00%
Households
Total
23
25
27
29
31
7.75%
7.75%
Page 9
Page 11
time therefore it is very important it is set up at the outset, ensuring that it is completed and done
properly when there are far less time constraints.
The second month will begin to see some activity. We will begin to field inquiries over the phone
and expect to turn some of those into contracts. The first week of jobs will be done as a team, with
Sarah and one employee. As the number of contracts begin to pick up at the end of the second month
an additional person will be hired to form the first employee team. By the end of month four we will
have built up enough demand that a new team of two will be trained and begin working. Having two
teams of two will be sufficient until month seven when two more people will be brought on. We
expect to remain with a six person head count into mid-year two when we expect to bring on one
more team.
The sales forecast is based on the assumption that increased demand will occur at a steady pace. This
is based on the assumption that a large part for our new clients after month two will be from word of
mouth referrals. The logic is that we will incrementally gain customers as we continue to serve
current customers. We will need a couple of visits before we can turn a new client into a referral
service. All this will happen steadily and incrementally. This forecast is on the conservative side, it
is possible that because we are superior to competing services that things really take off, however, it
would not be prudent to take that aggressive of a forecast. It is always better to err on the side of
caution.
Table: Sales Forecast
Sales Forecast
Year 1
Year 2
Year 3
Sales
Wealthy One-income Households
Affluent Two-income Households
Total Sales
$55,633
$123,337
$178,970
$56,014
$125,477
$181,491
$57,854
$128,744
$186,598
Year 1
$1,601
$3,907
$5,508
Year 2
$1,658
$4,245
$5,903
Year 3
$1,785
$4,365
$6,150
Page 13
$100,000
$80,000
$60,000
$40,000
$20,000
$0
Year 1
Year 2
Year 3
Page 14
$12,000
$9,000
$6,000
$3,000
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 15
5.3 Milestones
Mother's House Cleaning Service will have several milestones early on:
1. Business plan completion. This will be done as a roadmap for the organization. While we do not
need a business plan to raise capital, it will be an indispensable tool for the ongoing performance
and improvement of the company.
2. Set up the office. This will be done within the first month. This includes setting up the physical
office where business will be transacted.
3. Set up the supply room. This will be done in Sarah's garage. It will occur in the first month and
will be the place where all of the bulk, environmentally sound, chemicals will be mixed into the
proper concentrations.
4. Training program. This will be the development of a training program for the employees. The
employees will receive initial sessions of training up-front, but will undergo constant training,
part of our constant learning process.
5. Welcoming our sixth employee.
Table: Milestones
Milestones
Milestone
Business
Start Date
Plan 1/1/2001
Completion
Office Set-up
Set-up Supply Room
Training Program
Welcome
Sixth
Employee
Totals
1/1/2001
1/31/2001
1/1/2001
5/1/2001
End Date
2/1/2001
Budget
$0
Manager
Tookleen
Department
Management
2/28/2001
3/15/2001
2/1/2001
6/1/2001
$0
$0
$0
$0
Tookleen
Tookleen
Tookleen
Everyone
Management
Management
Management
Everyone
$0
Page 16
Chart: Milestones
Milestones
Office Set-up
Training Program
Feb
Mar
Apr
May
Page 18
Table: Personnel
Personnel Plan
Owner
Employees
Total People
Year 1
$24,000
$86,889
0
Year 2
$25,200
$93,000
0
Year 3
$26,460
$102,000
0
Total Payroll
$110,889
$118,200
$128,460
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other
Year 1
1
10.00%
10.00%
17.08%
0
Year 2
2
10.00%
10.00%
25.00%
0
Year 3
3
10.00%
10.00%
17.08%
0
Page 19
$4,000
$2,000
$8,000
$6,000
$12,000
$16,000
$20,000
$10,000
$14,000
$18,000
$22,000
Break-even Analysis
Monthly Revenue Break-even
$11,140
Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost
3%
$10,797
Page 20
Month 3
Month 5
Month 7
Month 9
Month 11
Month 2
Month 4
Month 6
Month 8
Month 10
Month 12
Page 21
$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
Year 1
Year 2
Year 3
Year 1
$178,970
$5,508
$0
$5,508
Year 2
$181,491
$5,903
$0
$5,903
Year 3
$186,598
$6,150
$0
$6,150
Gross Margin
Gross Margin %
$173,462
96.92%
$175,588
96.75%
$180,448
96.70%
$110,889
Other $6,013
$118,200
$5,968
$128,460
$5,968
$0
$10,841
$0
$1,200
$2,400
$0
$0
$10,942
$0
$1,200
$2,400
$0
Expenses
Payroll
Sales and
Marketing
Expenses
Depreciation
Additional Payroll Burden
Leased Equipment
Utilities
Insurance
Rent
and
$0
$9,058
$0
$1,200
$2,400
$0
Page 22
Payroll Taxes
Other
$0
$0
$0
$0
$0
$0
$129,560
$138,609
$148,970
$43,902
$43,902
$0
$12,108
$36,979
$36,979
$0
$9,245
$31,478
$31,478
$0
$5,378
Net Profit
Net Profit/Sales
$31,794
17.76%
$27,734
15.28%
$26,101
13.99%
Page 23
$32,000
$28,000
$24,000
$20,000
$16,000
$12,000
$8,000
$4,000
$0
Year 1
Year 2
Year 3
Page 24
Chart: Cash
Cash
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
Cash Balance
$15,000
$10,000
$5,000
$0
Month 1
Month 3
Month 5
Month 7
Month 9
Month 11
Month 2
Month 4
Month 6
Month 8
Month 10 Month 12
Page 25
Year 2
Year 3
$178,970
$178,970
$181,491
$181,491
$186,598
$186,598
$0
$0
$5,000
$0
$0
$0
$0
$183,970
$0
$0
$0
$0
$0
$0
$0
$181,491
$0
$0
$0
$0
$0
$0
$0
$186,598
Expenditures
Year 1
Year 2
Year 3
$110,889
$32,586
$143,475
$118,200
$37,444
$155,644
$128,460
$32,305
$160,765
$0
$0
$5,000
$0
$0
$0
$0
$148,475
$0
$0
$0
$0
$0
$0
$0
$155,644
$0
$0
$0
$0
$0
$0
$0
$160,765
$35,495
$44,570
$25,847
$70,417
$25,833
$96,250
Cash Received
Page 26
Year 2
Year 3
Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
$44,570
$1,492
$0
$46,062
$70,417
$1,074
$0
$71,491
$96,250
$1,088
$0
$97,338
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
$0
$0
$0
$46,062
$0
$0
$0
$71,491
$0
$0
$0
$97,338
Year 1
Year 2
Year 3
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$5,193
$0
$0
$5,193
$2,888
$0
$0
$2,888
$2,634
$0
$0
$2,634
Long-term Liabilities
Total Liabilities
$0
$5,193
$0
$2,888
$0
$2,634
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$13,000
($3,925)
$31,794
$40,869
$46,062
$13,000
$27,869
$27,734
$68,603
$71,491
$13,000
$55,603
$26,101
$94,704
$97,338
Net Worth
$40,869
$68,603
$94,704
Assets
Page 27
Ratio Analysis
Year 1
Year 2
Year 3
Industry
Sales Growth
n.a.
1.41%
2.81%
Profile
7.30%
3.24%
0.00%
100.00%
0.00%
100.00%
1.50%
0.00%
100.00%
0.00%
100.00%
1.12%
0.00%
100.00%
0.00%
100.00%
3.80%
44.90%
73.40%
26.60%
100.00%
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
11.27%
0.00%
11.27%
88.73%
4.04%
0.00%
4.04%
95.96%
2.71%
0.00%
2.71%
97.29%
44.40%
16.40%
60.80%
39.20%
Percent of Sales
Sales
100.00%
Gross Margin
96.92%
Selling, General & Administrative 94.22%
100.00%
96.75%
93.58%
100.00%
96.70%
91.63%
100.00%
0.00%
81.70%
Expenses
Advertising Expenses
Profit Before Interest and Taxes
0.93%
24.53%
1.06%
20.38%
1.03%
16.87%
1.30%
2.00%
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
8.87
8.58
11.27%
107.42%
95.31%
24.75
24.38
4.04%
53.90%
51.73%
36.95
36.54
2.71%
33.24%
32.34%
1.67
1.33
60.80%
3.50%
9.00%
Additional Ratios
Net Profit Margin
Return on Equity
Year 1
17.76%
77.79%
Year 2
15.28%
40.43%
Year 3
13.99%
27.56%
n.a
n.a
Page 28
Activity Ratios
Inventory Turnover
Accounts Payable Turnover
Payment Days
Total Asset Turnover
5.89
7.28
27
3.89
4.60
12.17
42
2.54
5.69
12.17
31
1.92
n.a
n.a
n.a
n.a
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
0.13
1.00
0.04
1.00
0.03
1.00
n.a
n.a
Liquidity Ratios
Net Working Capital
Interest Coverage
$40,869
0.00
$68,603
0.00
$94,704
0.00
n.a
n.a
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout
0.26
11%
8.58
4.38
0.00
0.39
4%
24.38
2.65
0.00
0.52
3%
36.54
1.97
0.00
n.a
n.a
n.a
n.a
n.a
Page 29
Appendix
Table: Sales Forecast
Sales Forecast
Month
Month
Month
Month
10
11
12
One- 0%
$1,200
$1,200
$2,245
$2,400
$4,808
$5,100
$5,312
$6,400
$6,454
$6,514
$6,600
$7,400
income Households
Affluent
Two- 0%
$3,850
$3,850
$4,445
$4,600
$8,897
$9,258
$10,10
$14,58
$15,00
$15,01
$16,74
$17,00
income Households
Total Sales
$5,050
$5,050
$6,690
$7,000
$13,70
$14,35
0
$15,41
0
$20,98
0
$21,45
1
$21,52
1
$23,34
5
$24,40
Sales
Wealthy
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Wealthy
1
$60
2
$60
3
$65
4
$68
5
$132
6
$145
7
$154
8
$165
9
$174
10
$181
11
$187
12
$210
income Households
Affluent
Two-
$151
$151
$160
$165
$354
$365
$371
$387
$412
$445
$457
$489
income Households
Subtotal
Direct
$211
$211
$225
$233
$486
$510
$525
$552
$586
$626
$644
$699
One-
Month
Month
Month
Cost of Sales
Page 1
Appendix
Table: Personnel
Personnel Plan
Owner
Employees
0%
0%
Month
Month
Month
Month
Month
Month
1
$2,000
$2,250
2
$2,000
$3,185
3
$2,000
$6,200
4
$2,000
$6,254
5
$2,000
$7,000
6
$2,000
$7,000
Month
7
$2,000
$8,000
Month
8
$2,000
$8,000
Month
Month
Month
Month
9
$2,000
$8,000
10
$2,000
$10,00
11
$2,000
$10,00
12
$2,000
$11,00
0
0
0
0
Total People
0
0
Total Payroll
$4,250
$5,185
$8,200
$8,254
$9,000
$9,000
$10,00
$10,00
$10,00
$12,00
$12,00
$13,00
Page 2
Appendix
Table: General Assumptions
General
Assumptions
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Plan Month
Current Interest
1
1
10.00%
2
2
10.00%
3
3
10.00%
4
4
10.00%
5
5
10.00%
6
6
10.00%
7
7
10.00%
8
8
10.00%
9
9
10.00%
10
10
10.00%
11
11
10.00%
12
12
10.00%
Rate
Long-term
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
Interest Rate
Tax Rate
Other
30.00%
0
0.00%
0
0.00%
0
0.00%
0
0.00%
0
25.00%
0
25.00%
0
25.00%
0
25.00%
0
25.00%
0
25.00%
0
25.00%
0
Page 3
Appendix
Table: Profit and Loss
Pro
Profit
Forma
and
Loss
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Sales
Direct Cost of
1
$5,050
$211
2
$5,050
$211
3
$6,690
$225
4
$7,000
$233
5
6
7
8
9
10
11
12
$13,705 $14,358 $15,412 $20,980 $21,454 $21,525 $23,341 $24,405
$486
$510
$525
$552
$586
$626
$644
$699
Sales
Other
Total Cost of
$0
$211
$0
$211
$0
$225
$0
$233
$0
$486
$4,839
95.82%
$4,839
95.82%
$6,465
96.64%
$6,767
96.67%
$4,250
$0
$5,185
$503
$8,200
$503
$8,254
$503
$9,000
$523
$9,000
$523
$0
$169
$0
$239
$0
$465
$0
$469
$0
$752
$0
$758
$0
$759
$0
$510
$0
$525
$0
$552
$0
$586
$0
$626
$0
$644
$0
$699
Sales
Gross Margin
Gross Margin
%
Expenses
Payroll
Sales
and
Marketing and
Other
Expenses
Depreciation
Additional
$0
$1,041
$0
$1,050
$0
$1,099
$0
$1,125
$0
$1,133
Payroll Burden
Page 4
Appendix
Leased
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other
$100
$200
$0
$0
$0
$100
$200
$0
$0
$0
$100
$200
$0
$0
$0
$100
$200
$0
$0
$0
$100
$200
$0
$0
$0
$100
$200
$0
$0
$0
$100
$200
$0
$0
$0
$100
$200
$0
$0
$0
$100
$200
$0
$0
$0
$100
$200
$0
$0
$0
$100
$200
$0
$0
$0
$100
$200
$0
$0
$0
$4,719
$6,227
$9,468
$9,526
$120
$3,267
$3,305
$8,564
$8,990
$6,972
$8,744
$8,445
$120
$0
$3,267
$0
$3,305
$0
$8,564
$0
$8,990
$0
$6,972
$0
$8,744
$0
$8,445
$0
$36
$0
$817
$826
$2,141
$2,247
$1,743
$2,186
$2,111
$84
1.67%
$2,450
17.06%
$2,479
16.09%
$6,423
30.62%
$6,742
31.43%
$5,229
24.29%
$6,558
28.10%
$6,334
25.95%
Total
15%
Operating
Expenses
Profit
Before
Interest
and
Taxes
EBITDA
Interest
Expense
Taxes
$0
$0
$0
Incurred
Net Profit
Net
Profit/Sales
Page 5
Appendix
Table: Cash Flow
Pro
Forma
Cash Flow
Mont
h1
Month
2
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
10
11
12
$6,690
$7,000
$13,70
$14,35
$15,41
$20,98
$21,45
$21,52
$23,34
$24,40
$7,000
5
$13,70
8
$14,35
2
$15,41
0
$20,98
4
$21,45
5
$21,52
1
$23,34
5
$24,40
Cash Received
Cash
from
Operations
Cash Sales
Subtotal
$5,050 $5,050
Cash
$5,050 $5,050
$6,690
from Operations
Additional Cash
Received
Sales
Tax, 0.00%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Received
New
Current
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Borrowing
New
Other
$0
$0
$0
$5,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
VAT, HST/GST
Liabilities
(interest-free)
New Long-term
Liabilities
Page 6
Appendix
Sales of Other
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Current Assets
Sales of Long-
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
term Assets
New Investment
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Received
Subtotal Cash
$5,050 $5,050
$6,690
$12,00
$13,70
$14,35
$15,41
$20,98
$21,45
$21,52
$23,34
$24,40
Received
Expenditures
Mont
h1
Month
2
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
10
11
12
Expenditures
from Operations
Cash Spending
$4,250 $5,185
$8,200
$8,254
$9,000
$9,000
$10,00
$10,00
$10,00
$12,00
$12,00
$13,00
Bill Payments
Subtotal Spent
$50
$1,489
$4,300 $6,674
$1,049
$9,249
$1,301
$9,555
$2,249
$11,24
$1,636
$10,63
0
$3,365
$13,36
0
$2,495
$12,49
0
$5,009
$15,00
0
$5,077
$17,07
0
$3,719
$15,71
0
$5,147
$18,14
on Operations
Additional Cash
Spent
Sales
Tax,
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
VAT, HST/GST
Paid Out
Principal
Repayment
of
Current
Borrowing
Page 7
Appendix
Other Liabilities
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$5,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Repayment
Purchase Other
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Current Assets
Purchase Long-
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
term Assets
Dividends
Subtotal Cash
$0
$0
$4,300 $6,674
$0
$9,249
$0
$9,555
$0
$11,24
$0
$10,63
$0
$13,36
$0
$12,49
$0
$15,00
$0
$17,07
$0
$15,71
$0
$23,14
Principal
Repayment
Long-term
Liabilities
Principal
Spent
Net Cash Flow
$750
($1,624
Cash Balance
)
$9,825 $8,200
($2,559
$2,445
$2,456
$3,722
$2,047
$8,485
$6,445
$4,448
$7,622
$1,258
)
$5,641
$8,086
$10,54
$14,26
$16,31
$24,79
$31,24
$35,69
$43,31
$44,57
Month
Month
Month
Pro
Forma
Balance
Sheet
Month
Month
Month
Month
Month
Month
Month
Month
Month
Page 8
Appendix
1
10
11
12
$9,075
$0
$0
$9,825
$789
$0
$8,200
$578
$0
$5,641
$353
$0
$8,086
$1,120
$0
$10,542
$634
$0
$14,264
$1,124
$0
$16,311
$599
$0
$24,796
$1,047
$0
$31,242
$1,461
$0
$35,690
$835
$0
$43,312
$1,191
$0
$44,570
$1,492
$0
$9,075
$10,614
$8,778
$5,994
$9,206
$11,176
$15,388
$16,910
$25,843
$32,703
$36,525
$44,503
$46,062
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Assets
Accumulated $0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Depreciation
Total Long- $0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
term Assets
Total Assets
$10,614
$8,778
$5,994
$9,206
$11,176
$15,388
$16,910
$25,843
$32,703
$36,525
$44,503
$46,062
Month
Month
Month
Month
Month
Month
Month
Month
Assets
Starting
Balances
Current
Assets
Cash
Inventory
Other
Current
Assets
Total
Current
Assets
Long-term
Assets
Long-term
$9,075
Liabilities
and Capital
Month
1
Month
2
Month
3
Month
4
10
11
12
Current
Liabilities
Page 9
Appendix
Accounts
$0
$1,455
$1,007
$1,226
$2,196
$1,523
$3,285
$2,328
$4,838
$4,955
$3,548
$4,968
$5,193
Payable
Current
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Borrowing
Other
$0
$0
$0
$0
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$0
$0
$1,455
$1,007
$1,226
$7,196
$6,523
$8,285
$7,328
$9,838
$9,955
$8,548
$9,968
$5,193
Long-term
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Liabilities
Total
$0
$1,455
$1,007
$1,226
$7,196
$6,523
$8,285
$7,328
$9,838
$9,955
$8,548
$9,968
$5,193
Paid-in
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
Capital
Retained
($3,925)
($3,925
($3,925
($3,925
($3,925
($3,925
($3,925
($3,925
($3,925
($3,925
($3,925
($3,925
($3,925
Earnings
Earnings
$0
)
$84
)
($1,304
)
($4,307
)
($7,066
)
($4,422
)
($1,972
)
$507
)
$6,930
)
$13,673
)
$18,902
)
$25,460
)
$31,794
$9,159
$10,614
)
$7,771
$8,778
)
$4,768
$5,994
)
$2,009
$9,206
)
$4,653
$11,176
)
$7,103
$15,388
$9,582
$16,910
$16,005
$25,843
$22,748
$32,703
$27,977
$36,525
$34,535
$44,503
$40,869
$46,062
$9,159
$7,771
$4,768
$2,009
$4,653
$7,103
$9,582
$16,005
$22,748
$27,977
$34,535
$40,869
Current
Liabilities
Subtotal
Current
Liabilities
Liabilities
$9,075
Page 10
Appendix
Page 11