BUSINESS PLAN REPORT

BUSINESS PLAN REPORT

• FROM : MUHAMMAD MUJAHID A

• BBA 4TH SEM
• TO HOD : PAVITHRA MAM AND ALL
THE SUPPORTING FACULTY

PROJECT REPORT ON REAL ESTATE BUSINESS

STARTUP

“THINK TODAY SO THAT YOU START TOMORROW”

 1.0 Executive Summary 1

1.1 Mission................................................................................................................................2
Chart: Highlights....................................................................................................................2
1.2 Keys to Success.................................................................................................................2
1.3 Objectives...........................................................................................................................3
2.0 Company Summary................................................................................................................3
2.1 Company Ownership..........................................................................................................3
2.2 Start-up Summary...............................................................................................................3
Table: Start-up.......................................................................................................................4
Table: Start-up Funding.........................................................................................................5
Chart: Start-up.......................................................................................................................6
3.0 Services..................................................................................................................................6
4.0 Market Analysis Summary......................................................................................................7
4.1 Market Segmentation..........................................................................................................8
Table: Market Analysis...........................................................................................................8
Chart: Market Analysis (Pie)..................................................................................................8
4.2 Service Business Analysis..................................................................................................9
4.2.1 Competition and Buying Patterns.................................................................................9
5.0 Strategy and Implementation Summary.................................................................................9
5.1 Sales Strategy...................................................................................................................10
5.1.1 Sales Forecast...........................................................................................................10
Chart: Sales Monthly.......................................................................................................10
Chart: Sales by Year........................................................................................................11
Table: Sales Forecast......................................................................................................11
5.2 Marketing Strategy............................................................................................................11
6.0 Management Summary........................................................................................................11
6.1 Personnel..........................................................................................................................12
Table: Personnel..................................................................................................................12
7.0 Financial Plan.......................................................................................................................12
7.1 Important Assumptions.....................................................................................................12
Table: General Assumptions...............................................................................................12
7.2 Break-even Analysis.........................................................................................................13
7.2 Break-even Analysis.........................................................................................................13
Table: Break-even Analysis.................................................................................................13
Chart: Break-even Analysis.................................................................................................13
 7.3 Projected Profit and Loss..................................................................................................14
Chart: Profit Monthly............................................................................................................14
Chart: Profit Yearly..............................................................................................................15
Chart: Gross Margin Monthly..............................................................................................15
Chart: Gross Margin Yearly.................................................................................................16
Table: Profit and Loss..........................................................................................................16
7.4 Projected Cash Flow.........................................................................................................17
Chart: Cash.........................................................................................................................17
Table: Cash Flow.................................................................................................................18
7.5 Projected Balance Sheet..................................................................................................19
7.5 Projected Balance Sheet..................................................................................................19
Table: Balance Sheet..........................................................................................................19
7.6 Business Ratios................................................................................................................19
Table: Ratios........................................................................................................................20
Table: Sales Forecast...................................................................................................................1
Table: Personnel...........................................................................................................................2
Table: Personnel...........................................................................................................................2
Table: General Assumptions.........................................................................................................3
Table: General Assumptions.........................................................................................................3
Table: Profit and Loss...................................................................................................................4
Table: Profit and Loss...................................................................................................................4
Table: Cash Flow..........................................................................................................................5
Table: Cash Flow..........................................................................................................................5
Table: Balance Sheet....................................................................................................................7
Table: Balance Sheet....................................................................................................................7
 Wall Street Real Estate India Limited

1.0 Executive Summary

Wall Street Real Estate, INIDA LIMITED (WSRE) is
a start-up company in the Karnataka Region. It is the
mission of WSRE to provide real estate services in the
newly established urban and town area, located to the
West of Bangalore, Karnataka. WSRE is a full service
real estate, mortgage, and title company.

WSRE will be a limited liability partnership registered

in the state of Karnataka for tax purposes. Its
founder is Mr. MD Mujahid, a former agent for
RE/MAX real estate Company, where he worked for 1
year.

The company plans to be leveraged through private

investment and a limited number of loans. The company
expects to begin offering its services in June, 2022.

The company's main clients will be middle and high

income level groups. Since Mr. Mujahid is within this
demographic group and knows and understands this
market's needs, he believes that he can appeal to such
clients far more than most other competitors.
1. Introduction
Wall Street Real Estate India Limited

The Services

WSRE offers comprehensive real estate, mortgage and title services to our
diverse clients. With Quadrant Homes, Inc. as our sponsor in the newly finished
Golden Valley Retirement Community, we will have a premier position as the
dominant seller of these new homes, condos, and retirement apartments. In
addition we will offer a full range of services to facilitate the purchasing and
selling of real estate including the following:

 Home search database.

 Moving consulting, quotes, planning, etc.
 Mortgage consulting and loan preapproval.
 Community information.
 Title transfer.
 Obtaining a comparative market analysis for potential sellers.
 Appraising.
 Property preparation.

The Market

The retirement industry has been steadily growing over the past twenty years.
The real estate construction at an all-time high of 21% and is growing at an
average rate of 3% each year. In certain parts of the state like Bangalore,
attibele, raghalli, silk board which has a high demand for residential and
commercial developments, the growth rate is about 8%. This percentage is also
expected to grow in future. It is estimated by the Real Estate India, that the
business is accounts for 4.8 billion rupees each year.

Financial Considerations

Start-up expenses and funding required are modest. They include expenses and
the rest in cash needed to support operations until revenues reach an acceptable
level. Most of the company's liabilities will come from outside private investors
and management investment; however, we have current borrowing from Bank of
India, the principal to be paid off in two years. A long-term loan through HDFC
Bankl will be paid off in ten years.

The company expects to reach profitability in the first year and does not
anticipate any serious cash flow problems. We conservatively believe that during
the first three years, average profitability per month per segment will be
adequate. We expect that about one sale per month will guarantee a break-even
point.

2. Mission

It is the mission of WSRE to provide real estate services in the Karnataka state
and later on in other states of India. WSRE is a full service real estate,
mortgage, and title company.
 Wall Street Real Estate India Limited

Chart: Highlights

2. Keys to Success

WSRE's keys to long-term survivability and profitability are as follows:

 Establish and maintain close contacts with residential real estate listing services,
and all other service organizations that WSRE uses, such as Artco mortgage
Service Company.
 Keeping close contact with clients and establishing a well-functioning long-term
relationship with them to generate repeat business and obtain a top notch
reputation.
 Establish a comprehensive service experience for our client that includes
consultation, appraisal, sale preparation, community information, moving
consultation, etc.

3. Objectives

The three year goals for Wall Street Real Estate (WSRE) are the following:

 Achieve break-even by year two.

 Finalize and then expand our contract with Quadrant Homes, Inc. to broker real
estate property in the Golden Valley area.
 Establish minimum 95% customer satisfaction rate to establish long-term
relationships with our clients and create word-of-mouth marketing.

4. Start-up Summary

Start-up expenses and funding required are shown in the table below. This includes
expenses and the rest in cash needed to support operations until revenues reach an
acceptable level. Most of the company's liabilities will come from outside private
investors and management investment, however, we have obtained current borrowing
from Karnataka Bank of Commercial Investments, the principal to be paid off in two
years. A long- term loan through HDFC Bank will be paid off in ten years.
 Wall Street Real Estate India Limited

Table: Start-up

Start-up Amount in
1000 figure

Requirements
Start-up Expenses
Legal 800
Insurance 1,500
utilities 200
Rent 3,000
Accounting and bookkeeping fees 2,000
Expensed equipment 8,000
Advertising 6,500
Other 8,000
Total Start-up Expenses 30,000
Start-up Assets
Cash Required 44,500
Other Current Assets 3,500
Long-term Assets 5,000
Total Assets 53,000
Total Requirements 83,000
 Wall Street Real Estate India Limited

Table: Start-up Funding

Start-up Funding Amount in

1000 figures
Start-up Expenses to Fund 30,000
Start-up Assets to Fund 53,000
Total Funding Required 83,000
Assets
Non-cash Assets from Start-up 8,500
Cash Requirements from Start-up 44,500
Additional Cash Raised 0
Cash Balance on Starting Date 44,500
Total Assets 53,000

Liabilities and Capital

Liabilities
Current Borrowing 15,000
Long-term Liabilities 45,000
Accounts Payable (Outstanding Bills) 3,000
Other Current Liabilities (interest-free) 0
Total Liabilities 63,000

Capital
Planned Investment
Mr. Mujahid 10,000
Mr. Maaz 10,000
Additional Investment Requirement 0
Total Planned Investment 20,000
Loss at Start-up (Start-up Expenses) (30,000)
Total Capital (10,000)

Total Capital and Liabilities 53,000

Total Funding 83,000
 Wall Street Real Estate India Limited

Chart: Start-
up

1. Services

WSRE offers comprehensive real estate, mortgage, and title services to our diverse
clients. With Quadrant Homes, Inc. as our sponsor in the newly developed urban and
town area, we will have a premier position as the dominant seller of these new homes,
condos, and retirement apartments. In addition we will offer a full range of services
to facilitate the purchasing and selling of real estate including the following:

 Home search database.

 Moving consulting, quotes, planning, etc.
 Mortgage consulting and loan preapproval.
 Community information.
 Title transfer.
 Obtaining a comparative market analysis for potential sellers.
 Appraising.
 Property preparation.

Much of the company's services will be outsourced. This includes title transfer, loan
approval, appraising and market analysis services. Title transfer will be handled by RA
Legal Services, loan approval by lcici Credit Co. and appraising and market analysis by
Templar Real Estate Services. Each of these companies encourage independent agents
to use their services and all have a proven track record in terms of affordability and
service. These companies have also been selected because they charge a flat monthly
rate. Management includes this rate in the profit and loss statement under other
expenses.

Our first priority is to help the seller set a realistic price on their property. But like
most of us who have invested untold hours of time and energy into our property it may
be difficult to remain objective when it's time to price it and put it up for resale.
There's a good reason for this. Usually property owners have much more than rupees
tied up in a home - an individual commitment that makes it a highly valued personal
statement.
 Wall Street Real Estate India Limited

But value becomes a reflection of the buyer's perspective as well when that
property is put up for sale...and pride of ownership may not translate to
market value.

When house hunting, the buyer will shop the market, compare available homes,
and try to find the very best value. Consequently, when the seller is ready to
list their home, they need to step back and sharpen their focus. Look at the
home objectively and price it competitively. This is where a real estate broker
such as Wall Street Real Estate can help.

Listing property at 5% above current market value gives it a sales advantage

that is ten times greater than if priced at 15-20% above. That's a statistic
that can't be overlooked. An overpriced home will suffer from lack of
exposure, and the longer it remains on the market the more difficult it will be
to sell. And it will remain so, even after price reductions are taken to attract
buyers.

That is why it is very important to determine an accurate and objective

market value for your property. We'll work with the buyers and sellers closely
to achieve that, and to maximize their opportunities to sell their home at the
best possible price within acceptable time frames.

4.0 Market Analysis Summary

WSRE will be concentrating on only one market segment. This will be the
retirement market consisting of those individuals and couples seeking to
retire to the peace area. As a owner, himself, Mr. Mujahid deals with the very
issues that his clients do, thus providing insight and opportunities to better his
clients.

WSRE believes that the greatest threat at the moment is in new entrants to
the market who will want to capitalize on this high growth industry. The most
likely entrants will be new, small real estate companies with fewer than ten
employees. However, the one major advantage WSRE has is its exclusive rights
to act as the agent for Urban and town areas. However, due to the high
number of competitors and the overall low profitability of each firm,
competition is quite intense.

Our most serious competitors are Bowditch Realty and RE/MAX. These
companies effect us most because of their higher capitalization or
geographical proximity.
 Wall Street Real Estate India Limited

4.1 Market Segmentation

WSRE will be concentrating exclusively on the retirement market segment. This means the
company will be focused on buying and selling real estate to those seeking to retire in the
peace and silent area. This market segment has special needs and is almost always looking to
find homes in specially constructed communities that serve those special needs such as
medical, dining, entertainment, shopping, and other such facilities. Being the dominant broker
for the new Quadrant Homes retirement community of Golden Valley will allow WSRE to fulfill
those needs.

The market analysis table and graph which follows shows the number of potential retirees
that move into the Tucson area each year. We have also included a small number of other
clients that may wish to use our services despite our strong market segment focus.

Table: Market Analysis

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Growth
Customers CAGR
Potential 8% 24,000 25,920 27,994 30,234
retirees 32,653 8.00%
relocating to
peace area
0% 1,000 1,000 1,000 1,000
1,000 0.00%
Other

Total 7.71% 25,000 26,920 28,994 31,234 33,653

7.71%

Chart: Market Analysis (Pie)

 Wall Street Real Estate India Limited

2. Service Business Analysis

The retirement industry has been steadily growing over the past twenty years. The
percentage of the U.S. population over the age of 55 is at an all-time high of 21% and
is growing at an average rate of 3% each year. In certain parts of the country like the
American Southwest, which has a high concentration of retirement communities, the
growth rate is about 8%. This percentage is also expected to grow as the first of the
"baby boomer" generation begins to reach retirement age in the next decade. It is
estimated by the U.S. Census Bureau that the retirement industry, which includes
homes, medical facilities, specialty equipment, retirement entertainment services,
etc., accounts for 4.8 billion dollars each year.

The retirement home industry consists of thousands of small housing communities.

These communities range from those owned by major name-brand firms to tens of
thousands of small, one-location firms.

WSRE believes that the greatest threat at the moment is in new entrants to the
market who will want to capitalize on this high growth industry. The most likely
entrants will be new, small real estate companies with fewer than ten employees.
However, the one major advantage WSRE has is its exclusive rights to act as the
agent for Golden Valley Retirement Community. However, due to the high number of
competitors and the overall low profitability of each firm, competition is quite
intense.

The power of potential clients is very great in this industry because most clients are
very concentrated in our geographical area. Furthermore, clients tend to "shop
around" for the best package of services and cost.

1. Competition and Buying Patterns

Competition
The real estate industry is highly fragmented, with a large number of potential rivals.
Our most serious competitors are National real estate and RE/MAX. National is an
established company that has been in operation for the past ten years, with a fine
track record of quality service. It currently employees twelve agents and has long-
term contracts with various home building companies. This company is slightly larger
than WSRE in size and market capitalization.

RE/MAX is one of the largest and best known real estate firms in the country. It has
hundreds of agents and very deep pockets that can be used to counter any sort of
competitive move.
 Page 10

Wall Street Real Estate India Limited

Buying patterns and needs

Clients usually deal with real estate companies based on their reputation of
professionalism and quality of services rendered in the past. This reputation is
difficult to obtain by new firms unless its personnel bring it with them from
previous companies, such as ours. Price and scope are also important reasons for
acceptance, especially if the company is small.

1. Strategy and Implementation Summary

Our firm's business strategy is to enter into a limited geographical area where it
can leverage its staffs' existing reputation into long-term contracts centered on
excellent service and cost effectiveness. We believe that we can service this
limited market better than larger firms and we have better service packages at a
more reasonable cost than existing competitors of equal size.

2. Sales Strategy

WSRE's management will be focusing on leveraging its extensive contacts with the
various construction companies such as Quadrant Homes, Inc. to generate sales.
Furthermore, we will be offering promotions of various free services such as
initial appraisals and information packets to generate sales once our ad
campaign starts.

5.1.1 Sales Forecast

Sales are based on the various clients we anticipate acquiring. Revenues are based on
an average commission rate of 10% per sale based on closing costs. The company does
not have any significant direct costs of sales.

Chart: Sales Monthly

 Wall Street Real Estate India Limited

Chart: Sales by Year

Table: Sales Forecast

Sales Forecast Amount in (1000)Thousand Rupees

Year 1 Year 2 Year 3

Sales
Retired couples relocating 109,800 150,000 185,000
Others 8,000 10,000 10,000
Total Sales 117,800 160,000 195,000

Direct Cost of Sales Year 1 Year 2 Year 3

Row 1 0 0 0
Other 0 0 0
Subtotal Direct Cost of Sales 0 0 0

5.2 Marketing Strategy

WSRE will be utilizing radio, newspaper, and phone directory advertising, and a small business
referral group to generate sales and establish a presence in the Tucson area. In addition,
Quadrant Homes, Inc. will be doing their own advertising, and all interested clients in the
Golden Valley Retirement Community will be referred to WSRE.

6.0 Management Summary

The company will have only one full-time employee, Mr. MD Mujahid. The company's office will be
in an office suite with four other businesses that will share the costs of a receptionist.
 Wall Street Real Estate India Limited

6.1 Personnel

Mr. MD Mujahid is a graduate of the CICMS university where he obtained his

B.B.A. Degree Since then, Mr. Mujahid has had intensive experience in the real
estate business, where I worked in national real estate ltd
From where I got a year’s experience. So now I have left te company and
started my own where there is no pressure of work where I can work with
free will and responsibility…

Personnel Plan Amount in thousand(1000) rupees

Year 1 Year 2 Year 3
Mr. MD Mujahid 36,000 36,000 45,000
Part-time receptionist 10,500 13,000 13,000
Total People 2 2 2

Total Payroll 46,500 49,000 58,000

1. Financial Plan

Since the firm has concluded our contract with Quadrant Homes, Inc., it is
management's opinion that initial profitability will be fairly high for a start-up
company. Our financial plan anticipates that we will achieve positive net income by the
end of the first year. We have budgeted enough investment to cover any potential
losses and have an additional personal financial resources available for equity
investment if sales do not match predictions.

2. Important Assumptions

We are assuming approximately 15% sales on credit and average interest

rates of 10%. These are considered to be conservative in case our
predictions are erroneous.

Table: General Assumptions

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0
 Wall Street Real Estate India Limited

7.2 Break-even Analysis

Our break-even analysis is based on the assumption that our gross margin
is 100%. In other words, we will have insignificant direct cost of sales.
It is conservatively believed that during the first three years, average
profitability per month per unit will be about an average 10% commission
rate. Management expects that about one home sold per month will
guarantee a break-even point.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even 8,198

Assumptions:

Average Percent Variable Cost 0%

Estimated Monthly Fixed Cost 8,198

Chart: Break-even Analysis

 Wall Street Real Estate India Limited

7.3 Projected Profit and Loss

The following table itemizes our revenues and

associated costs. We expect to be paying
higher costs in marketing and advertising than
other companies as we attempt to build sales
volume. As the reader can see in the
accompanying charts, we expect consistent
monthly profits to begin in May 2023.

Chart: Profit Monthly

 Wall Street Real Estate India Limited

Chart: Profit Yearly

Chart: Gross Margin Monthly

 Wall Street Real Estate India Limited

Chart: Gross Margin Yearly

Table: Profit and Loss

Pro Forma Profit and Loss Amount in Thousand Rupees

Year 1 Year 2 Year 3
Sales 117,800 160,000 195,000
Direct Cost of Sales 0 0 0
Other Costs of Sales 0 0 0
Total Cost of Sales 0 0 0
Gross Margin 117,800 160,000 195,000
Gross Margin % 100.00% 100.00% 100.00%

Expenses
Payroll 46,500 49,000 58,000
Sales and Marketing and Other 6,000 6,000 8,000
Expenses
Depreciation 0 2,500 2,500

Rent 18,000 18,000 20,000

Utilities 3,400 3,600 4,000

Insurance 1,100 2,000 2,000

Payroll Taxes 6,975 7,350 8,700

Travel 2,000 3,000 5,000

Other 14,400 16,000 17,000

Total Operating Expenses 98,375 107,450 125,200

Profit Before Interest and Taxes 19,425 52,550 69,800
EBITDA 19,425 55,050 72,300
Interest Expense 5,805 5,090 3,940
 Wall Street Real Estate India Limited

7.4 Projected Cash Flow

The following is our cash flow table and chart. We

do not expect to have any short-term cash flow
problems. Our short-term loan will be repaid in two
equal payments in 2023-2024. Our long-term loan
will be paid off in less than ten years.
Chart: Cash
 Wall Street Real Estate India Limited

Table: Cash Flow

Pro Forma Cash Flow Amount in Thousand Rupees

Year 1 Year 2 Year 3
Cash Received

Cash from Operations

Cash Sales 100,130 136,000 165,750
Cash from Receivables 14,899 23,007 28,427
Subtotal Cash from Operations 115,029 159,007 194,177

Additional Cash Received

Sales Tax, VAT, HST/GST Received 0 0 0
New Current Borrowing 0 2,000 2,000
New Other Liabilities (interest-free) 0 2,000 2,000
New Long-term Liabilities 0 0 0
Sales of Other Current Assets 0 0 0
Sales of Long-term Assets 0 0 0
New Investment Received 3,000 0 0
Subtotal Cash Received 118,029 163,007 198,177

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending 46,500 49,000 58,000
Bill Payments 60,318 73,539 87,320
Subtotal Spent on Operations 106,818 122,539 145,320

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out 0 0 0
Principal Repayment of Current Borrowing 0 8,000 7,000
Other Liabilities Principal Repayment 0 0 0
Long-term Liabilities Principal Repayment 3,600 5,000 7,000
Purchase Other Current Assets 5,000 0 0
Purchase Long-term Assets 7,500 5,000 5,000
Dividends 1,000 2,000 6,000
Subtotal Cash Spent 123,918 142,539 170,320

Net Cash Flow (5,889) 20,468 27,857

Cash Balance 38,611 59,080 86,937
 Wall Street Real Estate India Limited

7.5 Projected Balance Sheet

The following is the snapshot of our assets, liabilities, and equity.

Table: Balance Sheet

Pro Forma Balance Sheet Amount in Thousand Rupees
Year 1 Year 2 Year 3
Assets

Current Assets
Cash 38,611 59,080 86,937
Accounts Receivable 2,771 3,764 4,587
Other Current Assets 8,500 8,500 8,500
Total Current Assets 49,882 71,343 100,024

Long-term Assets
Long-term Assets 12,500 17,500 22,500
Accumulated Depreciation 0 2,500 5,000
Total Long-term Assets 12,500 15,000 17,500
Total Assets 62,382 86,343 117,524

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Accounts Payable 4,448 6,187 7,266
Current Borrowing 15,000 9,000 4,000
Other Current Liabilities 0 2,000 4,000
Subtotal Current Liabilities 19,448 17,187 15,266

Long-term Liabilities 41,400 36,400 29,400

Total Liabilities 60,848 53,587 44,666

Paid-in Capital 23,000 23,000 23,000

Retained Earnings (31,000) (23,466) 3,756
Earnings 9,534 33,222 46,102
Total Capital 1,534 32,756 72,858
Total Liabilities and Capital 62,382 86,343 117,524

Net Worth 1,534 32,756 72,858

7.6 Business Ratios

Our current Standard Industrial Classification (SIC) code is 6531.0105 -- Real estate
agent, residential. We have included industry standard ratios from the residential
real estate agent industry to compare with ours. These ratios are as closely matched
to our industry as management could find, however there are some significant
differences, especially in sales growth, financing ratios, long-term asset investments
and net worth. Most of these differences are because WSRE has a strong amount of
personal equity to back up the company, which leads to lower debt leverage. Also we
expect higher sales growth percentages in our initial years as we ramp up our sales.
However, our projections indicate a healthy company that will be able to obtain and
retain long-term profitability.
 Appendix

Table: Sales Forecast

 Appendix

Table: Personnel
 Appendix

Table: General Assumptions

 Appendix

Table: Profit and

Loss
 Appendix

Table: Cash Flow

Amount in 1000
Pro Forma Cash Flow
Month 1 Month Month Month Month Month Month Month Month Month Month Month
2 3 4 5 6 7 8 9 10 11 12
Cash Received

Cash from Operations

Cash Sales 4,250 8,500 4,250 10,200 5,950 10,200 6,800 12,750 12,750 8,500 8,330 7,650
Cash from Receivables 0 25 775 1,475 785 1,775 1,075 1,780 1,235 2,250 2,225 1,499
Subtotal Cash from 4,250 8,525 5,025 11,675 6,735 11,975 7,875 14,530 13,985 10,750 10,555 9,149
Operations
Additional Cash Received
Sales Tax, VAT, HST/GST 0.00 0 0 0 0 0 0 0 0 0 0 0 0
Received %
New Current Borrowing 0 0 0 0 0 0 0 0 0 0 0 0

New Other Liabilities 0 0 0 0 0 0 0 0 0 0 0 0

(interest-free)
New Long-term Liabilities 0 0 0 0 0 0 0 0 0 0 0 0
Sales of Other Current 0 0 0 0 0 0 0 0 0 0 0 0
Assets
Sales of Long-term Assets 0 0 0 0 0 0 0 0 0 0 0 0
New Investment Received 0 0 0 0 0 0 1,500 1,500 0 0 0 0
Subtotal Cash Received 4,250 8,525 5,025 11,675 6,735 11,975 9,375 16,030 13,985 10,750 10,555 9,149

Expenditures Month 1 Month Month Month Month Month Month Month Month Month Month Month
2 3 4 5 6 7 8 9 10 11 12

Expenditures from Operations

Cash Spending 3,000 3,000 3,000 3,000 3,000 4,500 4,500 4,500 4,500 4,500 4,500 4,500
Bill Payments 3,119 3,628 5,161 3,803 6,435 4,372 6,216 4,404 7,085 6,357 4,903 4,835
Subtotal Spent on Operations 6,119 6,628 8,161 6,803 9,435 8,872 10,716 8,904 11,585 10,857 9,403 9,335

Additional Cash Spent

Sales Tax, VAT, HST/GST 0 0 0 0 0 0 0 0 0 0 0 0
Paid Out
Principal Repayment of 0 0 0 0 0 0 0 0 0 0 0 0
Current
Borrowing
Other Liabilities Principal 0 0 0 0 0 0 0 0 0 0 0 0
Repayment
Long-term Liabilities Principal 300 300 300 300 300 300 300 300 300 300 300 300
Repayment
Purchase Other Current 0 0 0 2,000 0 1,000 0 2,000 0 0 0 0
Assets
Purchase Long-term Assets 0 1,500 0 2,000 0 2,000 0 2,000 0 0 0 0
Dividends 0 0 0 0 0 0 0 0 0 0 0 1,000
Subtotal Cash Spent 6,419 8,428 8,461 11,103 9,735 12,172 11,016 13,204 11,885 11,157 9,703 10,635

Net Cash Flow (2,169) 97 (3,436) 572 (3,000) (197) (1,641) 2,826 2,100 (407) 852 (1,486)
Cash Balance 42,331 42,428 38,992 39,564 36,564 36,367 34,726 37,552 39,652 39,245 40,097 38,611
 Appendix

Table: Balance Sheet

Pro Forma Balance
Sheet
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Assets Starting
Balances

Current Assets

Cash 44,500 42,331 42,428 38,992 39,564 36,564 36,367 34,726 37,552 39,652 39,245 40,097 38,611

Accounts Receivable 0 750 2,225 2,200 2,525 2,790 2,815 2,940 3,410 4,425 3,675 2,920 2,771

Other Current Assets 3,500 3,500 3,500 3,500 5,500 5,500 6,500 6,500 8,500 8,500 8,500 8,500 8,500

Total Current Assets 48,000 46,581 48,153 44,692 47,589 44,854 45,682 44,166 49,462 52,577 51,420 51,517 49,882

Long-term Assets

Long-term Assets 5,000 5,000 6,500 6,500 8,500 8,500 10,500 10,500 12,500 12,500 12,500 12,500 12,500

Accumulated 0 0 0 0 0 0 0 0 0 0 0 0 0
Depreciation
Total Long-term Assets 5,000 5,000 6,500 6,500 8,500 8,500 10,500 10,500 12,500 12,500 12,500 12,500 12,500

Total Assets 53,000 51,581 54,653 51,192 56,089 53,354 56,182 54,666 61,962 65,077 63,920 64,017 62,382

Liabilities and Capital Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12

Current Liabilities

Accounts Payable 3,000 3,454 5,038 3,586 6,291 4,163 6,073 4,167 6,872 6,193 4,741 4,682 4,448

Current Borrowing 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000

Other Current Liabilities 0 0 0 0 0 0 0 0 0 0 0 0 0

Subtotal Current 18,000 18,454 20,038 18,586 21,291 19,163 21,073 19,167 21,872 21,193 19,741 19,682 19,448
Liabilities

Long-term Liabilities 45,000 44,700 44,400 44,100 43,800 43,500 43,200 42,900 42,600 42,300 42,000 41,700 41,400

Total Liabilities 63,000 63,154 64,438 62,686 65,091 62,663 64,273 62,067 64,472 63,493 61,742 61,382 60,848

Paid-in Capital 20,000 20,000 20,000 20,000 20,000 20,000 20,000 21,500 23,000 23,000 23,000 23,000 23,000

Retained Earnings (30,000) (30,000 (30,000 (30,000 (30,000 (30,000 (30,000 (30,000 (30,000 (30,000 (30,000 (30,000 (31,000)
) ) ) ) ) ) ) ) ) ) )
Earnings 0 (1,573) 215 (1,495) 998 691 1,909 1,099 4,491 8,584 9,179 9,636 9,534

Total Capital (10,000) (11,57 (9,785) (11,49 (9,003) (9,309) (8,091) (7,401) (2,510) 1,584 2,179 2,636 1,534
3) 5)
Total Liabilities and 53,000 51,581 54,653 51,192 56,089 53,354 56,182 54,666 61,962 65,077 63,920 64,017 62,382
Capital

Net Worth (10,000) (11,57 (9,785) (11,49 (9,003) (9,309) (8,091) (7,401) (2,510) 1,584 2,179 2,635 1,534
3) 5)