Buy the Time

7/25/2019 Buy the Time

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Table of Contents

1.0 Executive Summary.............................................................................................................................1Chart: Highlights......................................................................................................................1

1.1 Mission........................................................................................................................................11.2 Objectives...................................................................................................................................11.3 Keys to Success........................................................................................................................2

2.0 Company Summary.............................................................................................................................22.1 Company Ownership.................................................................................................................22.2 Start-up Summary......................................................................................................................2

Table: Start-upFunding..........................................................................................................3Table: Start-up.........................................................................................................................4Chart: Start-up.........................................................................................................................4

3.0 Services................................................................................................................................................44.0 Market Analysis Summary..................................................................................................................5

4.1 Market Segmentation................................................................................................................5Chart: Market Analysis (Pie)..................................................................................................5Table: Market Analysis...........................................................................................................6

4.2 Market Needs.............................................................................................................................64.3 Target Market Segment Strategy.............................................................................................64.4 Service Business Analysis........................................................................................................64.5 Competition and Buying Patterns............................................................................................6

5.0 Strategy and Implementation Summary............................................................................................75.1 Competitive Edge......................................................................................................................75.2 Sales Strategy............................................................................................................................7

5.2.1 SalesForecast..............................................................................................................8

Chart: Sales Monthly......................................................................................................8Table: Sales Forecast...................................................................................................8

6.0 Management Summary.......................................................................................................................9Table: Personnel 9


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Table of ContentsTable: Cash Flow.......................................................................................................................................5

Table: Balance Sheet................................................................................................................................6


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Buy the Time

1.0 Executive Summary

Buy the Time will be a shopping service that allows customers to purchase gifts and

necessities of life at little inconvenience to their schedule and workday. We will do this with

the aid of a shopping consultant to provide each customer with quality solutions to their

shopping concerns at reasonable prices. The owner has had years of experience in the retail

market and is aware of trends and the shopping environment. In time, this service will evolve to

incorporate a larger market instead of a luxury for the more wealthy customers.


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Buy the Time Grow into a large franchise with a reputation for getting the desired item at a

reasonable cost.

1.3 Keys to Success

In order to ensure a healthy profit and low customer turnover, Buy the Time will have to:

Provide a significantly easier, more convenient, and customized shopping experience

than can be found in high-end stores. Ensure 100% customer satisfaction.

Establish close ties with the clients to ensure repeat business, encourage customer

feedback to enhance further customized service, and promote word-of-mouth marketing.

2.0 Company Summary

Buy the Time is a shopping service which allows the client to purchase custom items withoutstress. With our expert staff, we intend to grow into a larger market where we can still be

personable, yet offer greater choices.

Our ideal larger market will expand from the Seattle area to include New York, San Francisco, Los

Angeles, Chicago, and Miami.

2.1 Company Ownership

Buy the Time will be a Seattle, WA-based company. It will be formed as a simple sole

proprietorship. The company will operate as a home business until such time as expansion is


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Buy the Time

Table: Start-up Funding

Start-up Funding

Start-up Expenses to Fund $1,250

Start-up Assets to Fund $3,650

Total Funding Required $4,900

Assets

Non-cash Assets from Start-up $2,400

Cash Requirements from Start-up $1,250

Addit ional Cash Raised $0

Cash Balance on Starting Date $1,250

Total Assets $3,650

Liabilities and Capital

Liabilities

Current Borrowing $0

Long-term Liabili ties $0

Accounts Payab le (Outstanding Bi ll s) $0

Other Current Liabili ties (interest-free) $0

Total Liabili ties $0

Capital

Planned Investment

Owner $3,250

Private Investor $1,650

Other $0

Addit ional Investment Requi rement $0

Total Planned Investment $4,900

Loss at Start-up (Start-up Expenses) ($1,250)


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Buy the Time

Table: Start-up

Start-up

Requirements

Start-up Expenses

Legal $300

Stationery etc. $150

Brochures $200

Consultants $0

Insurance $0

Rent $0

Research and development $100

Expensed equipment $500

Other $0

Total Start-up Expenses $1,250

Start-up Assets

Cash Required $1,250

Other Current Assets $400

Long-term Assets $2,000

Total Assets $3,650

Total Requirements $4,900


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Buy the Timeand delivery in custom packaging. The focus of the company is the needs of the client. It is

the job of the consultant to translate those needs into low-cost solutions.

4.0 Market Analysis Summary

Buy the Time will target the middle-aged, busy executive. These individuals often have extremely

busy schedules, including a great deal of travel time. In addition, they possess a large proportion

of disposable income that allows them to afford custom services. This service will allow them

more concentration on work, while allowing them to obtain great products for personal andbusiness life.

4.1 Market Segmentation

The target market for Buy the Time is broken into three segments:

1. Busy executives desiring to keep pace with the trends, yet not having the time tofacilitate their needs.

2. Younger business persons who choose to have the luxury and convenience of a

personalized shopping service.

3. Those needing consultation in gifts and/or not wanting the pressures that are

associated with finding custom gifts for special occasions.


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Buy the Time

Table: Market Analysis

Market Analysis

Year 1 Year 2 Year 3 Year 4 Year 5

Potential Customers Growth CAGR

Executives 52% 500 900 1,300 4,000 6,400 89.15%

Business Persons 32% 260 500 800 2,010 3,900 96.80%

Other 15% 60 240 400 1,000 1,840 135.32%

Total 96.16% 820 1,640 2,500 7,010 12,140 96.16%

4.2 Market Needs

Buy the Time's primary market, the executive or high-end professional individual, has certain

needs that are outlined below.

They often find that their image is very important, both professionally and personally.

They need advice or information on what the latest trends and fashions are.

They keep busy schedules that often involve a lot of travel. This leaves little time for

shopping that is time consuming, such as gift buying. They have a desire to be pampered and willingly spend money as a symbol of status.

4.3 Target Market Segment Strategy

The best way to develop the company is to make our service necessary and accessible to the

public. By facilitating their needs easily, we offer a great service at little inconvenience to them

in a time where convenience matters the most.

In its broadest definition, the American shopping market consists of every American who needs

to buy goods and services for themselves and their families. Although it is the aim of Buy the


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Buy the Timeneeds constant. This requires being aware of economic changes, as well as alterations in trends.

At the moment, there are few services like this in the Seattle area. Therefore, there is a

tremendous opportunity to build and retain significant market share. Customers choose and

retain services like this often through word-of-mouth, when the company is able to achieve a

high level of customer satisfaction. Although it is the aim of Buy the Time to significantly lower

costs of this luxury service, at this time, cost does not play a significant factor in how

customers choose a shopping service. The bottom line is establishing a strong intimate

relationship with customers to capture the long-term profits through repeat business and

create the enthusiasm among customers that will spur on word-of-mouth marketing.

5.0 Strategy and Implementation Summary

Buy the Time will concentrate on expanding in metropolitan areas that have significant growth of

young business persons and executives. Starting in Seattle, it will grow down the west coast

to San Francisco and Los Angeles. From there we will target the east coast with locations in

New York City, Miami, and Chicago.

The target customer is a busy business person unable to find time for purchasing custom

goods. We will provide this tailored service to work around their schedules, while maintaining a

low cost.

5.1 Competitive Edge

Our competitive edge lies in our expert service at a reasonable price. We will transform thisservice from a luxury into a demand service. We will provide a database for remembering

occasions and dates, this will allow the client to remain stress-free. Buy the Time was created

by an expert shopper who knows trends, prices, and details, such as fabrics and colors.


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Buy the Time

5.2.1 Sales Forecast

The following chart and table document forecasted sales.

In both April and May we expect a two percent growth each month. From June to September,

each month should reflect a growth of five percent, since many activities occ ur during the

summer months. October will show approximately four percent, since this is usually a time of

transitions. November and December will show an increase to seven percent, with many people

buying for the holidays. January through April will be an increase of one percent each month,since this is a slow retail period.

This will result in a growth of 68% after the first year. From that, sales in 2002 will see a

growth of 57% as we develop our team of consultants. By 2003, sales will show a 78% growth.

By the end of the third year, we will be able to move into markets outside the Seattle area.


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Buy the Time

6.0 Management Summary

As Buy the Time grows, we will add consultants so that we may continue to offer personalized

service in a timely fashion. Originally, it will start with the owner as the sole employee. By the

end of the first year, another consultant will be added. From that point we will add a

consultant when we choose to grow into different markets. We will shape our team depending on

sales and growth.

Marketing and public relations will be handled mainly by the owner. If there is a greater need,a marketing consultant will be used.

Table: Personnel

Personnel Plan

Year 1 Year 2 Year 3

Owner $15,000 $30,000 $37,000

Other $0 $0 $0Total People 0 0 0

Total Payroll $15,000 $30,000 $37,000

7.0 Financial Plan

Growth will occur according to the number of clients and cash flow.

With approximately half of our services provided on credit, collection will be essential. With this

still being a service that is not essential to everyday living, we will show that payments are

necessary immediately. With a concrete system for cash flow, we will be able to keep debt to

a minimum while still providing a high level of sales


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Buy the Time

7.1 Important Assumptions

The following assumptions are made responding to growth, and are based on economic trends

from the preceding two years.

A strong economy is expected to continue in the future.

Many people have annual dates on which purchases are made.

It is assumed that people are willing to pay for a service if it is an agreeable and

convenient experience.

The table below outlines some business assumptions that are the basis for Buy The Time's

growth, including tax rate and payment days.

Table: General Assumptions

General Assumptions

Year 1 Year 2 Year 3Plan 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 25.42% 25.00% 25.42%

Other 0 0 0


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Buy the Time

7.2 Break-even Analysis

Our break-even analysis is shown in further detail in the following chart and table.

This is a conservative figure since contacts have been made, and have already generated

many orders for our services. Buy the Time's goal is to generate twice as much as the break-

even point for a monthly standard.


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Buy the Time

7.3 Projected Profit and Loss

Buy the Time's projected profit and loss is indicated in the following table. Gross margin should

remain between 50-70% the first year, with highest profits due near the end of the year. This

should prove to be accurate, since that is a time when many clients increase their spending.

Table: Profit and Loss

Pro Forma Profit and Loss


Sales $32,365 $66,000 $83,000

Direct Cost of Sales $11,250 $27,750 $37,500

Other $0 $0 $0

Total Cost of Sales $11,250 $27,750 $37,500

Gross Margin $21,115 $38,250 $45,500

Gross Margin % 65.24% 57.95% 54.82%

Expenses

Payroll $15,000 $30,000 $37,000

Sales and Marketing and Other Expenses $0 $0 $0

Depreciation $0 $0 $0

Leased Equipment $0 $0 $0

Util ities $0 $0 $0

Insurance $0 $0 $0

Rent $0 $0 $0

Payroll Taxes $0 $0 $0

Other $0 $0 $0

Total Operating Expenses $15,000 $30,000 $37,000


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Buy the Time

7.4 Projected Cash Flow

The following chart and table outline the cash flow for fiscal years 2002, 2003, and 2004. For

a monthly analysis, please see the attached appendix.


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Buy the Time

Table: Cash Flow

Pro Forma Cash Flow


Cash Received

Cash from Operations

Cash Sales $17,801 $36,300 $45,650

Cash from Receivables $11,759 $26,785 $35,877

Subtotal Cash from Operations $29,560 $63,085 $81,527

Addit ional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0

New Current Borrowing $0 $0 $0

New Other Liabil ities (interest-free) $0 $0 $0

New Long-term Liabil ities $0 $0 $0

Sales of Other Current Assets $0 $0 $0

Sales of Long-term Assets $0 $0 $0

New Investment Received $0 $0 $0

Subtotal Cash Received $29,560 $63,085 $81,527

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $15,000 $30,000 $37,000

Bill Payments $11,630 $28,509 $38,851

Subtotal Spent on Operations $26,630 $58,509 $75,851

Addit ional Cash Spen t

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0

Principal Repayment of Current Borrowing $0 $0 $0

Other Liabil ities Principal Repayment $0 $0 $0

Long-term Liabili ties Principal Repayment $0 $0 $0

Purchase Other Current Assets $0 $0 $0


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Buy the Time

7.5 Projected Balance Sheet

The Balance Sheet table for fiscal years 2002, 2003, and 2004 follows. For a monthly analysis,

please see the at tached appendix.

Table: Balance Sheet

Pro Forma Bal ance SheetYear 1 Year 2 Year 3

Assets

Current Assets

Cash $4,179 $8,755 $14,430

Accounts Receivabl e $2,805 $5,721 $7,194

Other Current Assets $400 $400 $400

Total Current Assets $7,385 $14,875 $22,024

Long-term AssetsLong-term Assets $2,000 $2,000 $2,000

Accumulated Deprecia tion $0 $0 $0

Total Long-term Assets $2,000 $2,000 $2,000

Total Assets $9,385 $16,875 $24,024

Liabil ities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payab le $1,147 $2,450 $3,260

Current Borrowing $0 $0 $0Other Current Liabili ties $0 $0 $0

Subtotal Current Liabil ities $1,147 $2,450 $3,260

L t Li bi li ti $0 $0 $0


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Buy the Time

7.6 Business Ratios

The following table provides significant ratios for the personal services industry. The final

column, Industry Profile, shows ratios for this industry as it is determined by the Standard

Industrial Classification (SIC) Index 7299, "miscellaneous personal services."


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Buy the Time

Table: Ratios

Ratio Anal ysis

Year 1 Year 2 Year 3 Industry Profile

Sales Growth n.a. 103.92% 25.76% -8.50%

Percent of Total Assets

Accounts Receivabl e 29.89% 33.90% 29.9 5% 6.70%

Other Current Assets 4.26% 2.37% 1.66% 26.40%

Total Current Assets 78.69% 88.15% 91.68% 43.50%

Long-term Assets 21.31% 11.85% 8.32% 56.50%

Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabil i ties 12.23% 14.52% 13.57% 19.50%

Long-term Liabili ties 0.00% 0.00% 0.00% 21.40%

Total Liabili ties 12.23% 14.52% 13.57% 40.90%

Net Worth 87.77% 85.48% 86.43% 59.10%

Percent of Sal es

Sales 100.00% 100.00% 100.00% 100.00%

Gross Margin 65.24% 57.95% 54.82% 50.80%

Selling, General & Administrative Expenses 51.07% 54.26% 47.14% 34.40%

Advertising Expenses 0.00% 0.00% 0.00% 0.20%

Profit Before Interest and Taxes 18.89% 12.50% 10.24% 1.50%

Main Ratios

Current 6.44 6.07 6.76 2.09

Quick 6.44 6.07 6.76 1.03

Total Debt to Total Assets 12.23% 14.52% 13.57% 40.90%

Pre-tax Return on Net Worth 74.24% 57.19% 40.94% 1.10%

Pre-tax Return on Assets 65.16% 48.89% 35.38% 1.90%

Addit ional Ratios Year 1 Year 2 Year 3

Net Profit Margin 14.17% 9.38% 7.64% n.a


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Appendix

Page 1

Table: Sales Forecast

Sales Forecast

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

Sales

Jade Kousky - Owner 0% $2,168 $2,181 $2,290 $2,404 $2,524 $2,650 $2,703 $2,891 $3,092 $3,123 $3,154 $3,185Retail Consultant 1 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Sales $2,168 $2,181 $2,290 $2,404 $2,524 $2,650 $2,703 $2,891 $3,092 $3,123 $3,154 $3,185

Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Jade Kousky - Owner $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938

Retail Consultant 1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Direct Cost of Sales $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938


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Appendix

Page 2

Table: Personnel

Personnel Plan


Owner 0% $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250

Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total People 0 0 0 0 0 0 0 0 0 0 0 0

Total Payroll $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250


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Appendix

Page 3

Table: General Assumptions

General Assumptions


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

Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

Tax Rate 30.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%

Other 0 0 0 0 0 0 0 0 0 0 0 0


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Appendix

Page 4

Table: Profit and Loss

Pro Forma Profit and Loss


Sales $2,168 $2,181 $2,290 $2,404 $2,524 $2,650 $2,703 $2,891 $3,092 $3,123 $3,154 $3,185

Direct Cost of Sales $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Cost of Sales $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938

Gross Margin $1,231 $1,244 $1,353 $1,467 $1,587 $1,713 $1,766 $1,954 $2,155 $2,186 $2,217 $2,248

Gross Margin % 56.76% 57.02% 59.06% 61.00% 62.86% 64.62% 65.32% 67.57% 69.68% 69.98% 70.28% 70.57%

Expenses

Payroll $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250

Sales and Marketing and Other

Expenses

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

Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Utilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Payroll Taxes 10% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Operating Expenses $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250

Profit Before Interest and Taxes ($20) ($7) $103 $217 $337 $463 $516 $704 $905 $936 $967 $998

EBITDA ($20) ($7) $103 $217 $337 $463 $516 $704 $905 $936 $967 $998

Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

T axes Incurred ($6) ($2) $26 $54 $84 $116 $129 $176 $226 $234 $242 $249

Net Profit ($14) ($5) $77 $162 $252 $347 $387 $528 $678 $702 $725 $748

Net Profit/Sales -0.63% -0.22% 3.36% 6.75% 10.00% 13.09% 14.30% 18.25% 21.94% 22.47% 22.98% 23.49%


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Appendix

Page 5

Table: Cash Flow

Pro Forma Cash Flow


Cash Received

Cash from Operations

Cash Sales $1,192 $1,200 $1,260 $1,322 $1,388 $1,458 $1,487 $1,590 $1,701 $1,718 $1,735 $1,752

Cash from Receivables $0 $33 $976 $983 $1,032 $1,084 $1,138 $1,193 $1,219 $1,304 $1,392 $1,406

Subtotal Cash from Operations $1,192 $1,232 $2,235 $2,305 $2,420 $2,541 $2,624 $2,783 $2,920 $3,022 $3,127 $3,158

Additional Cash Received

Sales Tax , VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

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

Subtotal Cash Received $1,192 $1,232 $2,235 $2,305 $2,420 $2,541 $2,624 $2,783 $2,920 $3,022 $3,127 $3,158

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

Expenditures from Operations

Cash Spending $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250

Bill Payments $31 $932 $937 $964 $993 $1,023 $1,054 $1,068 $1,115 $1,164 $1,172 $1,179

Subtotal Spent on Operations $1,281 $2,182 $2,187 $2,214 $2,243 $2,273 $2,304 $2,318 $2,365 $2,414 $2,422 $2,429

Additional Cash Spent

Sales Tax , VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Cash Spent $1,281 $2,182 $2,187 $2,214 $2,243 $2,273 $2,304 $2,318 $2,365 $2,414 $2,422 $2,429

Net Cash Flow ($89) ($950) $49 $91 $178 $268 $321 $465 $555 $608 $705 $728

Cash Balance $1,161 $212 $260 $351 $529 $798 $1,118 $1,584 $2,138 $2,746 $3,451 $4,179


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Appendix

Page 6

Table: Balance Sheet

Pro Forma Balance Sheet


Assets Starting Balances

Curren t Assets

Cash $1,250 $1,161 $212 $260 $351 $529 $798 $1,118 $1,584 $2,138 $2,746 $3,451 $4,179

Accounts Receivable $0 $976 $1,925 $1,979 $2,078 $2,182 $2,290 $2,369 $2,477 $2,649 $2,750 $2,778 $2,805

Other Current Assets $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400

Total Current Assets $1,650 $2,537 $2,536 $2,639 $2,829 $3,111 $3,488 $3,887 $4,460 $5,187 $5,897 $6,629 $7,385

Long -term Assets

Long-term Assets $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

Accumulated Depr eciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Long-term Assets $2,000 $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 Assets $3,650 $4,537 $4,536 $4,639 $4,829 $5,111 $5,488 $5,887 $6,460 $7,187 $7,897 $8,629 $9,385

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

Current Liabilities

Accounts Payable $0 $901 $905 $931 $959 $988 $1,018 $1,031 $1,076 $1,125 $1,132 $1,140 $1,147

Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

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

Subtotal Current Liabilities $0 $901 $905 $931 $959 $988 $1,018 $1,031 $1,076 $1,125 $1,132 $1,140 $1,147

Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Liabilities $0 $901 $905 $931 $959 $988 $1,018 $1,031 $1,076 $1,125 $1,132 $1,140 $1,147

Paid-in Capital $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900

Retained Earnings ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250)

Earnings $0 ($14) ($19) $58 $221 $473 $820 $1,207 $1,734 $2,413 $3,114 $3,839 $4,587

Total Capital $3,650 $3,636 $3,631 $3,708 $3,871 $4,123 $4,470 $4,857 $5,384 $6,063 $6,764 $7,489 $8,237

Total Liabilities and Capital $3,650 $4,537 $4,536 $4,639 $4,829 $5,111 $5,488 $5,887 $6,460 $7,187 $7,897 $8,629 $9,385

Net Worth $3,650 $3,636 $3,631 $3,708 $3,871 $4,123 $4,470 $4,857 $5,384 $6,063 $6,764 $7,489 $8,237

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