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April 2002

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Table of Contents
1.0

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1
Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2
Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2.0

Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.1
Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.2
Start-up Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

3.0

Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

4.0

Market Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6


4.1
Market Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

5.0

Strategy and Implementation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7


5.1
Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
5.1.1
Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

6.0

Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
6.1
Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

7.0

Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.1
Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.2
Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.3
Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.4
Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.5
Business Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10
10
11
12
14
14

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Wright's Dental Lab


1.0 Executive Summary
Wright's Dental Laboratory is being established with the goal of providing dentists with
restorations of superior quality and value. We offer all the state-of-the-art esthetic
materials. Our product quality and services are excellent.
At Wright's Dental Laboratory, we recognize that every practice is different... and every
doctor is unique. We will take the time to listen to casework problems. Examine the
doctor's individual situation. In short, we reach a full understanding of their needs before
we recommend a solution. Then, working as their partner, we put our extensive resources
to work for them.
The result is creative and practical solutions to their casework needs on a consistent basis.
All backed by over twenty-five years of experience and an investment in the techniques
that enhance patient care quality like Procera, Targis, Vectris, Empress & Empress 2, as
well as all the premier implant systems. At Wright's Dental Laboratory, our products and
services are a valuable complement to well-established restorative treatment plans that
promote aesthetics, tooth reinforcement and conservative preparation techniques.

Highlights

$900,000
$800,000
$700,000
$600,000

Sales

$500,000

Gross Margin

$400,000

Net Profit

$300,000
$200,000
$100,000
$0
FY 2003

FY 2004

FY 2005

1.1 Objectives
The objectives of Wright's Dental Laboratory are as follows:
Increase sales by 15% each year.
Increase the number of dentists using lab services by 10% each year.
Expand service area to include the entire Monroe tri-county area.

Page 1

Wright's Dental Lab


1.2 Keys to Success
The keys to success for Wright's Dental Laboratory are:
1.
2.
3.

Our dental laboratory must continually adjust its methods to meet the constantly
evolving challenges of dentistry and aspirations of the dental professional.
Our dental laboratory must be deeply and loyally committed to maintaining
CONSISTENT product excellence.
Our dental laboratory's only dynamic resource is people. It must develop
opportunities for each person to use his/her abilities to the utmost of their
potential.

2.0 Company Summary


Wright's Dental Laboratory offers state-of-the-art dental restorations services to dental
professionals.
Charles Wright attended State University in Oregon and is a certified dental technician. He
entered the dental laboratory industry in 1994 and by 2000 he had established his own
small dental laboratory. Charles now joins his expertise with that of his brother, David, to
create Wright's Dental Laboratory. The synergy of their respective talents will allow the
precision restorative capabilities of Wright's Dental Laboratory to consistently provide
leading-edge technologies and a high index of progressive services to the profession in
Monroe.
As an advocate of continuing dental education, Mr. Wright's commitment to continuing
education is illustrated by his involvement with metal-free restorations. Charles has
successfully completed training in such state of the art techniques as Empress & Empress
2 and Targis/Vectris. He has also completed training for all the premier implant systems
including Paragon, Sulzer-Calcitek, Steri-Oss, Nobel BioCare, 3i, and ITI.
Among his accomplishments, Charles has held the posts of vice president, secretary and
treasurer of the Oregon State Dental Laboratory Association. Additionally, he is a member
of the National Association of Dental Laboratories (NADL), the Oregon State Dental
Laboratory Association and the American Academy of Cosmetic Dentistry (AACD).
David Wright attended State University and is a certified dental technician. He has spent
over ten years working with some of the region's most respected practitioners. David is
committed to continuing education and has successfully completed Productivity Training
Corporation's Advanced Crown & Bridge Dental Studies. He has also successfully
completed training in all the premier implant systems including Paragon, Sulzer-Calcitek,
Steri-Oss, Nobel Biocare, 3i and ITI.
David entered the dental laboratory industry in 1991. He began his training under the
tutelage of his father with various phases of fixed and removable techniques. Over the
years, David completed his training to become fully proficient in the design and fabrication
of precision attachment restorations, implants and full mouth rehabilitation cases.

Page 2

Wright's Dental Lab


2.1 Company Ownership
Wright's Dental Laboratory is owned by Charles and David Wright. The company will
operate as a general partnership with both Charles and David performing management
functions.

2.2 Start-up Summary


The start-up cost of Wright's Dental Laboratory will consist primarily of equipment.
Charles and David will invest $150,000. Charles and David will also secure a $100,000
loan.

Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Brochures
Insurance
Rent
Lab Setup
Office Setup
Expensed Equipment
Total Start-up Expenses

$1,000
$300
$1,000
$2,000
$2,000
$30,000
$20,000
$20,000
$76,300

Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets

$71,700
$10,000
$12,000
$80,000
$173,700

Total Requirements

$250,000

Page 3

Wright's Dental Lab


Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required

$76,300
$173,700
$250,000

Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

$102,000
$71,700
$0
$71,700
$173,700

Liabilities and Capital


Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities
Total Liabilities

$0
$100,000
$0
$0
$100,000

Capital
Planned Investment
Charles
David
Additional Investment Requirement
Total Planned Investment

$75,000
$75,000
$0
$150,000

Loss at Start-up (Start-up Expenses)


Total Capital

($76,300)
$73,700

Total Capital and Liabilities

$173,700

Total Funding

$250,000

Start-up

$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
Expenses

Assets

Investment

Loans

Page 4

Wright's Dental Lab


3.0 Products
Wright's Dental Laboratory offers the following products:
CROWN AND BRIDGE
Ceramics
Porcelain to metal
Porcelain veneers
Procera
Enamelux
Empress
In-Ceram
In-Ceram zirconia
Cristobal+
Cristobal+ inlay/onlay
Cristobal+ to metal
Targis
Targis inlay
Targis Vectris

REMOVABLES
Dentures & Partials
Full dentures
Partial dentures
Night guards
Relines
Laser welded repairs
Soft liners
Ivocap
Orthodontics
Splints/Stents
Thermo-Splint
Hard splint (nightguard)
Implant stent
Sports guard
Surgical template
Bleaching fluoride trays

Page 5

Wright's Dental Lab


4.0 Market Analysis Summary
The Monroe tri-county area has over 300 dentists. Next to salaries and benefits for
associates, assistants and hygienists, dental laboratory fees are a dentist's greatest
expense.
Currently, there are seven dental labs in Monroe. Of the seven, only four are full service.
Most importantly, a new lab has not opened in the Monroe area in the past six years.
Over the past six years, the area's population has grown tremendously. The current labs
have not invested in the newest technology. Wright's Dental Laboratory will set a new
standard for products and services.
No where is this more important than in the dental care for children and seniors. The new
materials and techniques creates more options for dentists to serve their young and
senior patients. Wright's Dental Laboratory is investing heavily in these new techniques
and materials.

Page 6

Wright's Dental Lab


4.1 Market Segmentation
Wright's Dental Laboratory will focus on dental professionals who work in the following
three areas:
Dental services for seniors;
Dental services for children;
General dental services.

Table: Market Analysis


Market Analysis
2002
Potential Customers
Dental Services for
Children
Dental Services for
Seniors
General Dental Services
Total

2003

2004

2005

2006

Growth
10%

CAGR
60

66

73

80

88

10.05%

15%

40

46

53

61

70

15.02%

13%
12.64%

200
300

226
338

255
381

288
429

325
483

12.91%
12.64%

Market Analysis (Pie)

Dental Services for Children


Dental Services for Seniors
General Dental Services

5.0 Strategy and Implementation Summary


Wright's Dental Laboratory will aggressively pursue dental professionals in the Monroe
area by offering discounted services to encourage them to try the new lab. Charles Wright
will manage the marketing campaign to promote the business. He has extensive contacts
in the dental community that will be critical to the building of the business.

Page 7

Wright's Dental Lab


5.1 Sales Strategy
The sales strategy will focus on offering dental professionals the new techniques and
equipment that will assist them in serving their speciality populations (i.e. children and
seniors).

5.1.1 Sales Forecast


For the first month there will be no sales, as the company will be establishing its
operations. We anticipate that sales will grow quickly during the second and third month
of operation.
The following is the sales forecast for three years.

Table: Sales Forecast


Sales Forecast
FY 2003

FY 2004

FY 2005

Sales
Dental Products
Other
Total Sales

$615,000
$0
$615,000

$750,000
$0
$750,000

$880,000
$0
$880,000

Direct Cost of Sales


Dental Products
Other
Subtotal Direct Cost of Sales

FY 2003
$221,000
$0
$221,000

FY 2004
$269,250
$0
$269,250

FY 2005
$315,920
$0
$315,920

Sales by Year

$900,000
$800,000
$700,000
$600,000
$500,000

Dental Products

$400,000

Other

$300,000
$200,000
$100,000
$0
FY 2003

FY 2004

FY 2005

Page 8

Wright's Dental Lab


6.0 Management Summary
The management team for Wright's Dental Laboratory will be Charles and David Wright.
Charles will be responsible for marketing, sales, customer relations. David will be
responsible for managing the dental lab operation.

6.1 Personnel Plan


The personnel plan for Wright's Dental Laboratory is as follows:

Marketing/sales manager;
Lab manager;
Lab techs (4);
Customer service (1).

Part way through the second year of operation it is estimated that the Lab will have to
hire an additional customer service operator.

Table: Personnel
Personnel Plan
Marketing/Sales Mgr
Lab Mgr
4 Lab Techs
Customer Service
Total People

FY 2003
$48,000
$48,000
$144,000
$24,000
7

FY 2004
$50,000
$50,000
$152,000
$38,000
7

FY 2005
$52,000
$52,000
$160,000
$60,000
7

Total Payroll

$264,000

$290,000

$324,000

Page 9

Wright's Dental Lab


7.0 Financial Plan
The following is the financial plan for Wright's Dental Laboratory.

7.1 Break-even Analysis


The monthly break-even point is $39,663.

Table: Break-even Analysis


Break-even Analysis
Monthly Revenue Break-even

$49,013

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

36%
$31,400

Break-even Analysis
$10,000
$0
($10,000)
($20,000)
($30,000)
($40,000)
$0

$10,000$20,000$30,000$40,000$50,000

Monthly break-even point


Break-even point = where line intersects with 0

Page 10

Wright's Dental Lab


7.2 Projected Profit and Loss
The following table and charts will highlight projected profit and loss for the next three
years.

Table: Profit and Loss


Pro Forma Profit and Loss

Cost of Goods Sold

FY 2003
$615,000
$221,000
$0
-----------$221,000

FY 2004
$750,000
$269,250
$0
-----------$269,250

FY 2005
$880,000
$315,920
$0
-----------$315,920

Gross Margin
Gross Margin %

$394,000
64.07%

$480,750
64.10%

$564,080
64.10%

$264,000

$290,000

$324,000

$24,000

$30,000

$35,000

$12,000
$0
$6,000
$7,200
$24,000
$39,600
$0
-----------$376,800

$12,000
$0
$6,000
$7,200
$24,000
$43,500
$0
-----------$412,700

$12,000
$0
$6,000
$7,200
$24,000
$48,600
$0
-----------$456,800

$17,200
$11,130
$1,821

$68,050
$10,520
$17,259

$107,280
$9,777
$29,251

Other Income
Interest Income
Extraordinary Items
Total Other Income

$0
$0
$0

$0
$0
$0

$0
$0
$0

Other Expense
Account Name
Extraordinary Items
Total Other Expense

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$4,249
0.69%

$0
$40,271
5.37%

$0
$68,252
7.76%

Sales
Direct Costs of Goods
Other Production Expenses

Expenses
Payroll
Sales and Marketing and Other
Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other
Total Operating Expenses
Profit Before Interest and Taxes
Interest Expense
Taxes Incurred

Net Other Income


Net Profit
Net Profit/Sales

Page 11

Wright's Dental Lab

Profit Monthly
$15,000
$10,000
$5,000
$0
($5,000)
($10,000)
($15,000)
($20,000)
($25,000)
Apr May Jun

Jul Aug Sep Oct Nov Dec Jan Feb Mar

Profit Yearly

$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
FY 2003

FY 2004

FY 2005

7.3 Projected Cash Flow


The following table and chart highlight the projected cash flow for three years.

Page 12

Wright's Dental Lab


Table: Cash Flow
Pro Forma Cash Flow
FY 2003

FY 2004

FY 2005

$153,750
$343,250
$497,000

$187,500
$536,598
$724,098

$220,000
$635,057
$855,057

$0

$0

$0

$0

$0

$0

$0
$0
$20,000
$0
$0
$21,000
$538,000

$0
$0
$0
$0
$0
$0
$724,098

$0
$0
$0
$0
$0
$0
$855,057

FY 2003

FY 2004

FY 2005

$264,000
$313,347
$577,347

$290,000
$407,462
$697,462

$324,000
$474,205
$798,205

$0
$0

$0
$0

$0
$0

$0

$0

$0

$0

$0

$0

Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
Non Operating (Other) Income
Sales Tax, VAT, HST/GST
Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Non Operating (Other) Expense
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current
Borrowing
Other Liabilities Principal
Repayment
Long-term Liabilities Principal
Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent

$9,864

$9,864

$5,000

$0
$0
$0
$587,211

$0
$0
$0
$707,326

$0
$0
$0
$803,205

Net Cash Flow


Cash Balance

($49,211)
$22,489

$16,772
$39,260

$51,852
$91,113

Cash
$60,000
$50,000
$40,000
$30,000
$20,000

Net Cash Flow

$10,000

Cash Balance

$0
($10,000)
($20,000)
($30,000)
($40,000)
Apr May Jun

Jul Aug Sep Oct Nov Dec Jan Feb Mar

Page 13

Wright's Dental Lab


7.4 Projected Balance Sheet
The following table highlights the projected balance sheet for three years.

Table: Balance Sheet


Pro Forma Balance Sheet
FY 2003

FY 2004

FY 2005

Current Assets
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets

$22,489
$118,000
$30,800
$12,000
$183,289

$39,260
$143,902
$37,524
$12,000
$232,687

$91,113
$168,846
$44,029
$12,000
$315,987

Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets

$80,000
$12,000
$68,000
$251,289

$80,000
$24,000
$56,000
$288,687

$80,000
$36,000
$44,000
$359,987

Liabilities and Capital

FY 2003

FY 2004

FY 2005

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$42,204
$0
$0
$42,204

$49,196
$0
$0
$49,196

$57,243
$0
$0
$57,243

Long-term Liabilities
Total Liabilities

$110,136
$152,340

$100,272
$149,468

$95,272
$152,515

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital

$171,000
($76,300)
$4,249
$98,949
$251,289

$171,000
($72,051)
$40,271
$139,220
$288,687

$171,000
($31,780)
$68,252
$207,472
$359,987

$98,949

$139,220

$207,472

Assets

Net Worth

7.5 Business Ratios


Business ratios for the years of this plan are shown below. Industry profile ratios based
on the Standard Industrial Classification (SIC) code 8072, Dental Laboratories, are shown
for comparison.

Page 14

Wright's Dental Lab


Table: Ratios
Ratio Analysis
Sales Growth

FY 2003
0.00%

FY 2004
21.95%

FY 2005
17.33%

Industry Profile
6.60%

Percent of Total Assets


Other Current Assets
Total Current Assets
Long-term Assets
Total Assets

4.78%
72.94%
27.06%
100.00%

4.16%
80.60%
19.40%
100.00%

3.33%
87.78%
12.22%
100.00%

56.00%
75.60%
24.40%
100.00%

16.79%
43.83%
60.62%
39.38%

17.04%
34.73%
51.77%
48.23%

15.90%
26.47%
42.37%
57.63%

34.20%
18.20%
52.40%
47.60%

100.00%
64.07%

100.00%
64.10%

100.00%
64.10%

100.00%
0.00%

63.37%

58.73%

56.34%

70.40%

3.90%
2.80%

4.00%
9.07%

3.98%
12.19%

0.20%
10.10%

4.34
3.61
60.62%
6.13%
2.42%

4.73
3.97
51.77%
41.32%
19.93%

5.52
4.75
42.37%
47.00%
27.09%

1.81
1.25
52.40%
18.10%
38.00%

FY 2003
0.69%
4.29%

FY 2004
5.37%
28.93%

FY 2005
7.76%
32.90%

n.a
n.a

Activity Ratios
Accounts Payable Turnover
Total Asset Turnover

8.42
2.45

8.42
2.60

8.42
2.44

n.a
n.a

Debt Ratios
Debt to Net Worth
Current Liab. to Liab.

1.54
0.28

1.07
0.33

0.74
0.38

n.a
n.a

$141,085
1.55

$183,492
6.47

$258,744
10.97

n.a
n.a

0.41
17%
0.82
6.22
0.00

0.38
17%
1.04
5.39
0.00

0.41
16%
1.80
4.24
0.00

n.a
n.a
n.a
n.a
n.a

Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative
Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Additional Ratios
Net Profit Margin
Return on Equity

Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout

Page 15

Appendix
Appendix Table: Sales Forecast
Sales Forecast
Sales
Dental Products
Other
Total Sales
Direct Cost of Sales
Dental Products
Other
Subtotal Direct Cost of Sales

0%
0%

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

$0
$0
$0

$30,000
$0
$30,000

$30,000
$0
$30,000

$40,000
$0
$40,000

$40,000
$0
$40,000

$50,000
$0
$50,000

$60,000
$0
$60,000

$65,000
$0
$65,000

$70,000
$0
$70,000

$70,000
$0
$70,000

$80,000
$0
$80,000

$80,000
$0
$80,000

Apr
$0
$0
$0

May
$12,000
$0
$12,000

Jun
$12,000
$0
$12,000

Jul
$15,000
$0
$15,000

Aug
$15,000
$0
$15,000

Sep
$18,000
$0
$18,000

Oct
$21,000
$0
$21,000

Nov
$22,000
$0
$22,000

Dec
$25,000
$0
$25,000

Jan
$25,000
$0
$25,000

Feb
$28,000
$0
$28,000

Mar
$28,000
$0
$28,000

Page 16

Appendix
Appendix Table: Personnel
Personnel Plan
Marketing/Sales Mgr
Lab Mgr
4 Lab Techs
Customer Service
Total People
Total Payroll

0%
0%
0%
0%

Apr
$4,000
$4,000
$12,000
$2,000
7

May
$4,000
$4,000
$12,000
$2,000
7

Jun
$4,000
$4,000
$12,000
$2,000
7

Jul
$4,000
$4,000
$12,000
$2,000
7

Aug
$4,000
$4,000
$12,000
$2,000
7

Sep
$4,000
$4,000
$12,000
$2,000
7

Oct
$4,000
$4,000
$12,000
$2,000
7

Nov
$4,000
$4,000
$12,000
$2,000
7

Dec
$4,000
$4,000
$12,000
$2,000
7

Jan
$4,000
$4,000
$12,000
$2,000
7

Feb
$4,000
$4,000
$12,000
$2,000
7

Mar
$4,000
$4,000
$12,000
$2,000
7

$22,000

$22,000

$22,000

$22,000

$22,000

$22,000

$22,000

$22,000

$22,000

$22,000

$22,000

$22,000

Page 17

Appendix
Appendix Table: General Assumptions
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other

Apr
1
10.00%
10.00%
30.00%
0

May
2
10.00%
10.00%
30.00%
0

Jun
3
10.00%
10.00%
30.00%
0

Jul
4
10.00%
10.00%
30.00%
0

Aug
5
10.00%
10.00%
30.00%
0

Sep
6
10.00%
10.00%
30.00%
0

Oct
7
10.00%
10.00%
30.00%
0

Nov
8
10.00%
10.00%
30.00%
0

Dec
9
10.00%
10.00%
30.00%
0

Jan
10
10.00%
10.00%
30.00%
0

Feb
11
10.00%
10.00%
30.00%
0

Mar
12
10.00%
10.00%
30.00%
0

Page 18

Appendix
Appendix Table: Profit and Loss
Pro Forma Profit and Loss
Apr
$0
$0
$0
-----------$0

May
$30,000
$12,000
$0
-----------$12,000

Jun
$30,000
$12,000
$0
-----------$12,000

Jul
$40,000
$15,000
$0
-----------$15,000

Aug
$40,000
$15,000
$0
-----------$15,000

Sep
$50,000
$18,000
$0
-----------$18,000

Oct
$60,000
$21,000
$0
-----------$21,000

Nov
$65,000
$22,000
$0
-----------$22,000

Dec
$70,000
$25,000
$0
-----------$25,000

Jan
$70,000
$25,000
$0
-----------$25,000

Feb
$80,000
$28,000
$0
-----------$28,000

Mar
$80,000
$28,000
$0
-----------$28,000

$0
0.00%

$18,000
60.00%

$18,000
60.00%

$25,000
62.50%

$25,000
62.50%

$32,000
64.00%

$39,000
65.00%

$43,000
66.15%

$45,000
64.29%

$45,000
64.29%

$52,000
65.00%

$52,000
65.00%

$22,000

$22,000

$22,000

$22,000

$22,000

$22,000

$22,000

$22,000

$22,000

$22,000

$22,000

$22,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

Total Operating Expenses

$1,000
$0
$500
$600
$2,000
$3,300
$0
-----------$31,400

$1,000
$0
$500
$600
$2,000
$3,300
$0
-----------$31,400

$1,000
$0
$500
$600
$2,000
$3,300
$0
-----------$31,400

$1,000
$0
$500
$600
$2,000
$3,300
$0
-----------$31,400

$1,000
$0
$500
$600
$2,000
$3,300
$0
-----------$31,400

$1,000
$0
$500
$600
$2,000
$3,300
$0
-----------$31,400

$1,000
$0
$500
$600
$2,000
$3,300
$0
-----------$31,400

$1,000
$0
$500
$600
$2,000
$3,300
$0
-----------$31,400

$1,000
$0
$500
$600
$2,000
$3,300
$0
-----------$31,400

$1,000
$0
$500
$600
$2,000
$3,300
$0
-----------$31,400

$1,000
$0
$500
$600
$2,000
$3,300
$0
-----------$31,400

$1,000
$0
$500
$600
$2,000
$3,300
$0
-----------$31,400

Profit Before Interest and Taxes


Interest Expense
Taxes Incurred

($31,400)
$833
($9,670)

($13,400)
$833
($4,270)

($13,400)
$833
($4,270)

($6,400)
$1,000
($2,220)

($6,400)
$990
($2,217)

$600
$979
($114)

$7,600
$969
$1,989

$11,600
$959
$3,192

$13,600
$949
$3,795

$13,600
$938
$3,798

$20,600
$928
$5,902

$20,600
$918
$5,905

Other Income
Interest Income
Extraordinary Items
Total Other Income

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

Other Expense
Account Name
Extraordinary Items
Total Other Expense

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
($22,563)
0.00%

$0
($9,963)
-33.21%

$0
($9,963)
-33.21%

$0
($5,180)
-12.95%

$0
($5,173)
-12.93%

$0
($266)
-0.53%

$0
$4,642
7.74%

$0
$7,449
11.46%

$0
$8,856
12.65%

$0
$8,863
12.66%

$0
$13,770
17.21%

$0
$13,778
17.22%

Sales
Direct Costs of Goods
Other Production Expenses
Cost of Goods Sold
Gross Margin
Gross Margin %

Expenses
Payroll
Sales and Marketing and Other
Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other

Net Other Income


Net Profit
Net Profit/Sales

15%

Page 19

Appendix
Appendix Table: Cash Flow
Pro Forma Cash Flow
Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

$0
$0
$0

$7,500
$0
$7,500

$7,500
$750
$8,250

$10,000
$22,500
$32,500

$10,000
$22,750
$32,750

$12,500
$30,000
$42,500

$15,000
$30,250
$45,250

$16,250
$37,750
$54,000

$17,500
$45,125
$62,625

$17,500
$48,875
$66,375

$20,000
$52,500
$72,500

$20,000
$52,750
$72,750

$0
$0
$0
$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0
$0
$0
$7,500

$0
$0
$0
$0
$0
$0
$0
$0
$8,250

$0
$0
$0
$0
$20,000
$0
$0
$0
$52,500

$0
$0
$0
$0
$0
$0
$0
$21,000
$53,750

$0
$0
$0
$0
$0
$0
$0
$0
$42,500

$0
$0
$0
$0
$0
$0
$0
$0
$45,250

$0
$0
$0
$0
$0
$0
$0
$0
$54,000

$0
$0
$0
$0
$0
$0
$0
$0
$62,625

$0
$0
$0
$0
$0
$0
$0
$0
$66,375

$0
$0
$0
$0
$0
$0
$0
$0
$72,500

$0
$0
$0
$0
$0
$0
$0
$0
$72,750

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

$22,000
($437)
$21,563

$22,000
$250
$22,250

$22,000
$20,057
$42,057

$22,000
$17,247
$39,247

$22,000
$25,370
$47,370

$22,000
$22,453
$44,453

$22,000
$30,735
$52,735

$22,000
$35,658
$57,658

$22,000
$35,844
$57,844

$22,000
$41,334
$63,334

$22,000
$38,417
$60,417

$22,000
$46,419
$68,419

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$1,233

$1,233

$1,233

$1,233

$1,233

$1,233

$1,233

$1,233

$0
$0
$0
$21,563

$0
$0
$0
$22,250

$0
$0
$0
$42,057

$0
$0
$0
$39,247

$0
$0
$0
$48,603

$0
$0
$0
$45,686

$0
$0
$0
$53,968

$0
$0
$0
$58,891

$0
$0
$0
$59,077

$0
$0
$0
$64,567

$0
$0
$0
$61,650

$0
$0
$0
$69,652

($21,563)
$50,137

($14,750)
$35,387

($33,807)
$1,580

$13,253
$14,833

$5,147
$19,980

($3,186)
$16,794

($8,718)
$8,076

($4,891)
$3,185

$3,548
$6,733

$1,808
$8,541

$10,850
$19,391

$3,098
$22,489

Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
Non Operating (Other) Income
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Non Operating (Other) Expense
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current
Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal
Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance

0.00%

Page 20

Appendix
Appendix Table: Balance Sheet
Pro Forma Balance Sheet
Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

$71,700
$0
$10,000
$12,000
$93,700

$50,137
$0
$10,000
$12,000
$72,137

$35,387
$22,500
$13,200
$12,000
$83,087

$1,580
$44,250
$13,200
$12,000
$71,030

$14,833
$51,750
$16,500
$12,000
$95,083

$19,980
$59,000
$16,500
$12,000
$107,480

$16,794
$66,500
$19,800
$12,000
$115,094

$8,076
$81,250
$23,100
$12,000
$124,426

$3,185
$92,250
$24,200
$12,000
$131,635

$6,733
$99,625
$27,500
$12,000
$145,858

$8,541
$103,250
$27,500
$12,000
$151,291

$19,391
$110,750
$30,800
$12,000
$172,941

$22,489
$118,000
$30,800
$12,000
$183,289

$80,000
$0
$80,000
$173,700

$80,000
$1,000
$79,000
$151,137

$80,000
$2,000
$78,000
$161,087

$80,000
$3,000
$77,000
$148,030

$80,000
$4,000
$76,000
$171,083

$80,000
$5,000
$75,000
$182,480

$80,000
$6,000
$74,000
$189,094

$80,000
$7,000
$73,000
$197,426

$80,000
$8,000
$72,000
$203,635

$80,000
$9,000
$71,000
$216,858

$80,000
$10,000
$70,000
$221,291

$80,000
$11,000
$69,000
$241,941

$80,000
$12,000
$68,000
$251,289

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

$0
$0
$0
$0

$0
$0
$0
$0

$19,913
$0
$0
$19,913

$16,820
$0
$0
$16,820

$25,053
$0
$0
$25,053

$21,856
$0
$0
$21,856

$29,969
$0
$0
$29,969

$34,892
$0
$0
$34,892

$34,885
$0
$0
$34,885

$40,485
$0
$0
$40,485

$37,288
$0
$0
$37,288

$45,401
$0
$0
$45,401

$42,204
$0
$0
$42,204

Long-term Liabilities
Total Liabilities

$100,000
$100,000

$100,000
$100,000

$100,000
$119,913

$100,000
$116,820

$120,000
$145,053

$118,767
$140,623

$117,534
$147,503

$116,301
$151,193

$115,068
$149,953

$113,835
$154,320

$112,602
$149,890

$111,369
$156,770

$110,136
$152,340

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital

$150,000
($76,300)
$0
$73,700
$173,700

$150,000
($76,300)
($22,563)
$51,137
$151,137

$150,000
($76,300)
($32,527)
$41,173
$161,087

$150,000
($76,300)
($42,490)
$31,210
$148,030

$150,000
($76,300)
($47,670)
$26,030
$171,083

$171,000
($76,300)
($52,843)
$41,857
$182,480

$171,000
($76,300)
($53,108)
$41,592
$189,094

$171,000
($76,300)
($48,467)
$46,233
$197,426

$171,000
($76,300)
($41,018)
$53,682
$203,635

$171,000
($76,300)
($32,162)
$62,538
$216,858

$171,000
($76,300)
($23,299)
$71,401
$221,291

$171,000
($76,300)
($9,529)
$85,171
$241,941

$171,000
($76,300)
$4,249
$98,949
$251,289

$73,700

$51,137

$41,173

$31,210

$26,030

$41,857

$41,592

$46,233

$53,682

$62,538

$71,401

$85,171

$98,949

Assets
Current Assets
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets

Starting Balances

Liabilities and Capital


Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

Net Worth

Page 21