Furniture Store Sample Business Plan 6q302n

le mp

Sa

Willamette Furniture - Sample Plan

This sample business plan was created using Business Plan Pro®business planning software published by Palo Alto Software, Inc.

ro

This plan may be edited using Business Plan Pro and is one of 500+ sample plans available from within the software.

nP

To learn more about Business Plan Pro and other planning products for small and medium sized businesses, visit us at www.paloalto.com.

This is a sample business plan and the names, locations and numbers may have been changed, and substantial portions of the original plan text may have been omitted to preserve confidentiality and proprietary information.

Pla

You are welcome to use this plan as a starting point to create your own, but you do not have permission to resell, reproduce, publish, distribute or even copy this plan as it exists here.

sin

ess

Requests for reprints, academic use, and other dissemination of this sample plan should be emailed to the marketing department of Palo Alto Software at [email protected]. For product information visit our Website: www.paloalto.com or call: 1-800-229-7526.

All rights reserved.

Bu

Copyright © Palo Alto Software, Inc., 1995-2008.

Academic Edition

le

Confidentiality Agreement

mp

The undersigned reader acknowledges that the information provided by _________________________ in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _________________________.

Sa

It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to _________________________. Upon request, this document is to be immediately returned to _________________________. ___________________ Signature

ro

___________________ Name (typed or printed)

nP

___________________ Date

Bu

sin

ess

Pla

This is a business plan. It does not imply an offering of securities.

Academic Edition

Table of Contents Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.0

Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2.1 Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2.2 Company History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

3.0

Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

4.0

Market Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1 Market Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2 Target Market Segment Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3 Industry Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3.1 Competition and Buying Patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5 5 6 6 6

5.0

Strategy and Implementation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.1 Competitive Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3 Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3.1 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4 Milestones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7 7 7 8 9 11

6.0

Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 6.1 Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

7.0

Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.1 Important Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.2 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.3 Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.4 Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.5 Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.6 Business Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Pla

nP

ro

Sa

mp

le

1.0

1 1 2 2

13 13 14 15 18 20 21

Bu

sin

ess

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Academic Edition

Willamette Furniture Mfr. 1.0 Executive Summary

mp

le

Willamette Furniture Mfr. has been riding a growth spurt, having discovered the high-end direct mail channel that gave us a push to new potential volumes through channels. Bolstered by appearances in specialty catalogs, we were able to develop another additional channel through distributors of office equipment that sell directly to corporations. This annual business plan calls for another three years of accelerated growth. Because our sales growth has brought some working capital implications, we are carefully planning to manage growth and provide for steady cash flow.

Sa

We also expect to be profitable as never before. In all, this plan is a healthy company with good growth prospects, looking to manage its orderly growth in the near future.

ro

Highlights

$1,200,000

nP

$1,000,000 $800,000

$400,000 $200,000 $0

Pla

$600,000

1999

Gross Margin Net Profit

2000

ess

1998

Sales

1.1 Objectives

Focus on the new channels to increase sales beyond the $1 million mark by 2000. Maintain a gross margin close to 60%, despite the sales increase. Increase the net profit significantly by 2000.

Bu

sin

1. 2. 3.

Academic Edition

Page 1

Willamette Furniture Mfr. 1.2 Mission

Sa

mp

le

Willamette Furniture Mfr. helps create pleasant, productive office environments with welldesigned furniture that incorporates new technology into the classic office mode, in which real people can work happily. We are sensitive to the look and feel of good wood and fine furniture as well as to high-powered personal computing. We always provide the best possible value to our customers who care about quality office environments, and we want every dollar spent with us to be well spent. We also create and nurture a healthy, creative, respectful, and fun office and workshop environment, in which our employees are fairly compensated and encouraged to respect the customer and the quality of the product we produce. We seek fair and responsible profit, enough to keep the company financially healthy for the long term and to fairly compensate owners and investors for their money and risk.

1.3 Keys to Success

Pla

2.0 Company Summary

nP

ro

• Uncompromising commitment to the quality of the end product: quality wood, quality workmanship, quality design, quality of end result. • Successful niche marketing: we need to find the quality-conscious customer in the right channels, and we need to make sure that customer can find us. • Almost-automatic assembly: we can't afford to ship fully-assembled desks, but assembly must be so easy and automatic that it makes the customer feel better about the quality, not worse.

ess

Willamette Furniture Mfr. is a privately-owned specialty manufacturer of high-end office furniture for computer s who care about elegant office space. Our customers are in all levels of business that can afford very high quality office furniture, plus a growing portion of high-end home offices.

2.1 Company Ownership

Bu

sin

Willamette Furniture Mfr. is an Oregon corporation, subchapter S, owned entirely by Jim and Susan Graham. It was created in 1992. At that time the product line and industrial property rights (including trademarks) were purchased from the heirs to the Willamette Association, which was a 1970s commune in rural Oregon.

Academic Edition

Page 2

Willamette Furniture Mfr. 2.2 Company History

mp

le

Willamette Furniture Mfr. had actually existed since the 1970s as a "hippy commune," but its present existence began in 1992 when the furniture line was purchased by Jim and Susan Graham. The Grahams moved to Oregon from California and purchased the business as part of the move. Sales took a big jump in 1997, when we reached more effective channels of distribution. The key was winning a place in the Premier Executive office furniture catalog, which led to winning the interest of the Needham furniture distributors, and display space in several hundred stores.

Sa

Profitability and working capital were problems during our recent growth, but we believe we now have costs and cash flow under control.

ro

Past Performance

nP

$250,000

$200,000

$100,000

$50,000

$0

Sales Gross

Pla

$150,000

1996

1997

Bu

sin

ess

1995

Net

Academic Edition

Page 3

Willamette Furniture Mfr. Table: Past Performance 1996 $130,568 $72,374 55.43% $69,801 0 4.70

1997 $225,790 $105,245 46.61% $90,125 36 6.00

1995

1996

1997

Current Assets Cash s Receivable Inventory Other Current Assets Total Current Assets

$0 $0 $0 $0 $0

$0 $0 $0 $0 $0

$1,438 $27,605 $10,141 $2,375 $41,559

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

$0 $0 $0

$0 $0 $0

$3,210 $1,720 $1,490

Total Assets

$0

$0

$43,049

Paid-in Capital Retained Earnings Earnings Total Capital

ess

Total Capital and Liabilities Other Inputs Payment Days Sales on Credit Receivables Turnover

$0 $0

$11,191 $0

$0

$0

$1,803

$0

$0

$12,994

$0 $0

$0 $0

$0 $12,994

$0 $0 $0 $0

$0 $0 $0 $0

$4,500 $13,100 $12,455 $30,055

$0

$0

$43,049

0 $0 0.00

0 $0 0.00

35 $140,434 5.09

sin

3.0 Products

ro

nP

Long-term Liabilities Total Liabilities

$0 $0

Pla

Current Liabilities s Payable Current Borrowing Other Current Liabilities (interest free) Total Current Liabilities

Sa

Balance Sheet

mp

1995 $127,809 $58,381 45.68% $54,602 0 4.00

Sales Gross Margin Gross Margin % Operating Expenses Collection Period (days) Inventory Turnover

le

Past Performance

Bu

Willamette Furniture Mfr. offers very high quality office furniture designed to effectively incorporate computer machinery into the executive office or home office. The key to the line is an ergonomically effective desk that still looks like an executive desk, looks very good in a high-end home office, but is intended to accommodate the personal computer.

Academic Edition

Page 4

Willamette Furniture Mfr. 4.0 Market Analysis Summary

mp

le

Our target market is a person who wants to have very fine furniture with the latest in technology, combined with an old fashioned sense of fine woods and fine woodworking. This person can be in the corporate towers, small or medium business, or in a home office. The common bond is the appreciation of quality, and the lack of price constraints.

4.1 Market Segmentation

Sa

• Corporate executives: our market research indicates about 2.5 million potential customers who are managers in corporations of more than 100 employees. The target customer is going to be at a high executive level, in most cases, because the purchase price is relatively steep compared to standard office furniture.

ro

• Small business owners: our customer surveys indicate a strong market among the owners of businesses with fewer than 100 employees. There are 11 million such businesses in this country, most of them with concentrated ownership that makes the owners potential customers.

nP

• Home offices: the home office business has proliferated during the 1990s, and we also have home offices for people employed outside the home. This is a big market, some 36 million home offices, growing faster than other markets.

Corporate Executives Small business owners Home offices Other

Bu

sin

ess

Pla

Market Analysis (Pie)

Academic Edition

Page 5

Willamette Furniture Mfr. Table: Market Analysis Market Analysis 1998

1999

2000

2,500,000 11,000,000 36,000,000 1,000,000 50,500,000

2,525,000 11,440,000 39,600,000 1,030,000 54,595,000

2,550,250 11,897,600 43,560,000 1,060,900 59,068,750

4.2 Target Market Segment Strategy

2001

2002

2,575,753 12,373,504 47,916,000 1,092,727 63,957,984

2,601,511 12,868,444 52,707,600 1,125,509 69,303,064

le

Growth 1% 4% 10% 3% 8.23%

mp

Potential Customers Corporate Executives Small business owners Home offices Other Total

CAGR 1.00% 4.00% 10.00% 3.00% 8.23%

Sa

Our segment definition is of itself strategic. We are not intending to satisfy all s of office furniture intended for use with personal computers, but, rather, only those who are most demanding. We are definitely out to address the needs of the high-end buyer, who is willing to pay more for quality.

nP

ro

In our particular market, we also seek the buyer who appreciates two attributes: the quality of furniture workmanship and the excellence of design, with an understanding of technology and ergonomics built in.

4.3 Industry Analysis

Pla

The office furniture industry has undergone a great deal of change in this decade. The growth of the office superstores made a few large brands dominant. They produce relatively inexpensive furniture that makes compromises in order to stay at the low price level.

ess

Makers of higher quality furniture are in general shuffling for niches to hide in. Although Willamette Furniture Mfr. was essentially developed around a niche, many of the more traditional furniture makers are looking for niches, trying to deal with declining sales as the main volume goes elsewhere.

4.3.1 Competition and Buying Patterns

sin

In the mainstream business, channels are critical to volume. The manufacturers with impact in the national sales are going to win display space in the store, and most buyers seem content to pick their product off the store floor. Price is critical, because the channels take significant margins. Buyers are willing to settle for laminated quality and serviceable design. In direct sales to corporations, price and volume is critical. The corporate buyer wants troublefree buying in volume, at a great price. Reliable delivery is as important as reliable quality.

Bu

In the high-end specialty market, particularly in our niche, features are very important. Our target customer is not making selections based on price. The ergonomics, design, accommodation of the computer features within the high-quality feel of good wood, is much more important than mere price. We are also seeing that assembly is critical to shipping and packing, but our customer doesn't accept any assembly problems. We need to make sure that the piece comes together almost like magic, and as it does, it presents a greater feel of quality than if it hadn't required assembly at all.

Academic Edition

Page 6

Willamette Furniture Mfr. 5.0 Strategy and Implementation Summary

mp

le

We focus on a special kind of customer, the person who wants very high quality office furniture customized to work beautifully with modern technology including personal computers, scanners, internet connections, and other high-tech items. Our customer might be in larger corporations, small or medium business, or in a home office with or without a home-office business. What is important to the customer is elegance, fine workmanship, ease of use, ergonomics, and practicality.

Sa

Our marketing strategy assumes that we need to go into specialty channels to address our target customer's needs. The tie-in with the high-end quality catalogs like Sharper Image is perfect, because these catalogs cater to our kind of customers. We position as the highest quality, offering status and prestige levels of purchase.

ro

The product strategy is also based on quality, in this case the intersection of technical understanding with very high quality woodworking and professional materials, and workmanship.

nP

Our most important competitive edge is our assembly strategy, which is based on interlocking wood pieces of such high quality that assembly is not only a pleasure for our customers, it is actually a feature that enhances the sense of quality.

5.1 Competitive Edge

5.2 Marketing Strategy

Pla

Our competitive edge is our dominance of high-technology ergonomics and traditional highquality furniture workmanship. Although there are many computer furniture manufacturers, and many computer lovers, few have brought the two crafts together as we have.

ess

Our product is positioned very carefully: this is high-quality office furniture combining workmanship and ergonomics for the customer who understands quality, is a of high technology equipment, and is willing to spend money on the best. Unlike the mainstream products, we do not use laminates or cheap manufacturing technology.

sin

Our marketing strategy is based mainly on making the right information available to the right target customer. We can't afford to sell people on our expensive products, because most don't have the budget. What we really do is make sure that those who have the budget and appreciate the product know that it exists, and know where to find it.

Bu

The marketing has to convey the sense of quality in every picture, every promotion, and every publication. We can't afford to appear in second-rate catalogs with poor illustrations that make the product look less than it is. We also need to leverage our presence using highquality catalogs and specialty distributors.

Academic Edition

Page 7

Willamette Furniture Mfr. 5.3 Sales Strategy

mp

le

Our strategy focuses first on maintaining the identity with the high-end buyer who appreciates the best available quality, but is also very demanding regarding computer systems and technology. We've been able to find these customers using a combination of direct mail catalogs and direct sales to distributors. For the next year we continue to focus on growing presence in the high-end direct mail catalog that finds our specialty customer. We will work with Sharper Image and Broadview more than ever, and we expect to gain position in the major airline catalogs as well. Specialty retail is a new channel that could become important for us.

Bu

sin

ess

Pla

nP

ro

Sa

Our work with distributors has been promising. We hope to continue the relationship with distributors selling directly to larger corporations, even though this takes working capital to receivables.

Academic Edition

Page 8

Willamette Furniture Mfr. 5.3.1 Sales Forecast

le

Our sales forecast assumes no change in costs or prices, which is a reasonable assumption for the last few years.

mp

We are expecting to increase sales, growing from $225 thousand last year to $450 thousand in the next year, which is about doubling in size. The growth forecast is in line with our last year, and is relatively high for our industry because we are developing new channels. In 1999 and 2000 we expect growth closer to 50% per year, to a projected total of more than $1 million in 2000.

Sa

We are projecting significant change in the product line, or in the proportion between different lines. The key to our growth is the growth of the new channels, with the main desk.

ro

Our seasonality, as shown in the chart, is still a factor in the business. We tend to sell much better in Spring and Fall, and sales drop in the summer. Table: Sales Forecast

1998

Unit Prices Executive desk oak Executive desk cherry Other furniture oak Other furniture cherry Other

2000

ess

Sales Executive desk oak Executive desk cherry Other furniture oak Other furniture cherry Other Total Sales

1999

sin

Direct Unit Costs Executive desk oak Executive desk cherry Other furniture oak Other furniture cherry Other

Direct Cost of Sales Executive desk oak Executive desk cherry Other furniture oak Other furniture cherry Other Subtotal Direct Cost of Sales

Bu

209 31 45 7 6 298

350 30 50 10 10 450

600 30 50 10 10 700

1998 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00

1999 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00

2000 $1,600.00 $1,600.00 $900.00 $1,000.00 $1,600.00

$334,400 $54,250 $40,500 $7,000 $15,000 $451,150

$560,000 $52,500 $45,000 $10,000 $25,000 $692,500

$960,000 $48,000 $45,000 $10,000 $16,000 $1,079,000

1998 $400.00 $525.00 $180.00 $300.00 $625.00

1999 $400.00 $525.00 $180.00 $300.00 $625.00

2000 $400.00 $480.00 $180.00 $300.00 $400.00

$83,600 $16,275 $8,100 $2,100 $3,750 $113,825

$140,000 $15,750 $9,000 $3,000 $6,250 $174,000

$240,000 $14,400 $9,000 $3,000 $4,000 $270,400

Pla

Unit Sales Executive desk oak Executive desk cherry Other furniture oak Other furniture cherry Other Total Unit Sales

nP

Sales Forecast

Academic Edition

Page 9

Willamette Furniture Mfr.

le

Sales Monthly

mp

$60,000 $50,000 $40,000

Executive desk oak Executive desk cherry

Sa

$30,000 $20,000

$0

Other

Jul Aug Sep Oct Nov Dec

nP

Jan Feb Mar Apr May Jun

Other furniture cherry

ro

$10,000

Other furniture oak

$1,200,000 $1,000,000 $800,000

ess

$600,000

Pla

Sales by Year

Executive desk oak Executive desk cherry Other furniture oak Other furniture cherry

$400,000

Other

$200,000

1998

1999

2000

Bu

sin

$0

Academic Edition

Page 10

Willamette Furniture Mfr. 5.4 Milestones

Table: Milestones Milestones Budget $10,000 $20,000 $6,000

Manager Terry Terry Terry

Department PR Events Travel

1/31/1998

2/28/1998

$0

Terry

Other

3/1/1998 3/15/1998 3/15/1998 4/1/1998 4/1/1998 5/1/1998 5/15/1998 5/15/1998 5/15/1998 5/15/1998 6/15/1998 1/1/1998

4/15/1998 3/30/1998 4/30/1998 5/15/1998 5/1/1998 6/1/1998 6/15/1998 10/15/1998 10/15/1998 10/15/1998 6/20/1998 10/15/1998

$125,000 $5,000 $3,000 $85,000 $2,000 $5,000 $54,000 $8,000 $20,000 $6,000 $1,000 $15,000 $365,000

Jan Jan Jan Jan Terry Terry Jan Terry Terry Terry Jim Terry

Ads Travel Sales Ads Other Other Ads PR Events Travel Other PR

ro

Sa

End Date 5/15/1998 5/15/1998 5/15/1998

Pla

6.0 Management Summary

Start Date 1/1/1998 1/15/1998 1/15/1998

nP

Milestone Spring trade show Spring trade show Spring trade show Our in-house catalog plan First catalog New distributor New distributor Second cata-house catalog design In-house catalog mailing Third catalog placement Fall trade show Fall trade show Fall trade show Laptop product test Laptop product release Totals

mp

le

The accompanying table shows specific milestones, with responsibilities assigned, dates, and (in most cases) budgets. We are focusing in this plan on a few key milestones that should be accomplished.

We are a small company owned and operated by Jim and Susan Graham, husband and wife, as a Subchapter S corporation. Jim is the developer and designer of the products, and Susan manages the company as president.

ess

Management style reflects the participation of the owners. The company respects its community of co-workers and treats all workers well. We attempt to develop and nurture the company as community. We are not very hierarchical.

sin

6.1 Personnel Plan

The personnel table assumes slow growth in employees, and 10% per annum pay raises. We already have a strong benefits policy (with fully-paid medical, dental, and life insurance, plus a profit sharing and 401K plan) and very low turnover.

Bu

Salaries are generally in line with market pay for the Eugene area, although our benefits are above standard market level, so we ultimately pay a bit more for our people than what might be considered standard in our market. Eugene, however, is on average a lower wage location than most of the more developed industry areas. As we grow, we expect to see steady increases in our personnel to match the increases in sales.

Academic Edition

Page 11

Willamette Furniture Mfr. Table: Personnel Personnel Plan

le

2000 $0 $0 $0 0

$0

$0

$0

Bu

sin

ess

Pla

nP

ro

Sa

Total Payroll

1999 $0 $0 $0 0

mp

1998 $0 $0 $0 0

Name or Title or Group Name or Title or Group Name or Title or Group Total People

Academic Edition

Page 12

Willamette Furniture Mfr. 7.0 Financial Plan

le

The financial picture is quite encouraging. We have been slow to take on debt, but with our increase in sales we do expect to apply for a credit line with the bank, to a limit of $150,000. The credit line is easily ed by assets.

mp

We do expect to be able to take some money out as dividends. The owners don't take overly generous salaries, so some draw is appropriate.

Sa

7.1 Important Assumptions

ro

The accompanying table lists our main assumptions for developing our financial projections. The most sensitive assumption is the collection days. We would like to improve collection days to take pressure off of our working capital, but our increasing sales through channels makes the collection time a cost of doing business.

Table: General Assumptions

1998 1 10.00% 90.00% 25.42% 0

1999 2 10.00% 90.00% 25.00% 0

2000 3 10.00% 90.00% 25.00% 0

Bu

sin

ess

Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other

Pla

General Assumptions

nP

We also expect to see a decline in our inventory turnover ratio, another unfortunate side effect of increasing sales through channel. We find ourselves having to buy earlier and hold more finished goods in order to deal with sales through the channel.

Academic Edition

Page 13

Willamette Furniture Mfr. 7.2 Break-even Analysis

le

Our break-even analysis is based on running costs, the "burn-rate" costs we incur to keep the business running, not on theoretical fixed costs that would be relevant only if we were closing.

mp

Our assumptions on average unit sales and average per-unit costs depend on averaging. We don't really need to calculate an exact average, this is close enough to help us understand what a real break-even point might be.

Sa

The essential insight here is that our sales level seems to be running comfortably above break-even. Table: Break-even Analysis Break-even Analysis

$1,513.93 $381.96 $850

nP

Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost

1 $1,137

ro

Monthly Units Break-even Monthly Revenue Break-even

Break-even Analysis

$10,000 $8,000 $6,000 $4,000 $2,000

Pla

$12,000

ess

$0

($2,000)

2

4

6

8

10

Monthly break-even point

Break-even point = where line intersects with 0

Bu

sin

0

Academic Edition

Page 14

Willamette Furniture Mfr. 7.3 Projected Profit and Loss

mp

le

We do expect a significant increase in profitability this year, and in the future, because we have learned how to deal with the increasing sales levels of selling through channels. Despite the lower profitability levels of recent years, we expect to see very strong net profits in 1998, and remain at that level through 2000. Our higher sales volume has lowered our cost of goods and increased our gross margin. This increase in gross margin is important to profitability. Table: Profit and Loss

Sa

Pro Forma Profit and Loss

1998 $451,150 $113,825 $3,110 -----------$116,935

Sales Direct Costs of Goods Other Costs of Goods

$334,215 74.08%

$518,500 74.87%

$808,600 74.94%

Total Operating Expenses

$0 $0 $1,000 $1,500 $3,600 $2,400 $500 $0 $1,200 -----------$10,200

$0 $0 $1,100 $1,700 $4,000 $2,600 $600 $0 $1,300 -----------$11,300

$0 $0 $1,200 $1,900 $4,400 $2,900 $700 $0 $1,400 -----------$12,500

Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred

$324,015 $325,015 $6,094 $80,422

$507,200 $508,300 $5,875 $125,331

$796,100 $797,300 $4,875 $197,806

$237,500 52.64%

$375,994 54.30%

$593,419 55.00%

ess

Expenses Payroll Marketing/Promotion Depreciation Leased Equipment Rent Utilities Insurance Payroll Taxes Other

Pla

Gross Margin Gross Margin %

2000 $1,079,000 $270,400 $0 -----------$270,400

nP

ro

Cost of Goods Sold

1999 $692,500 $174,000 $0 -----------$174,000

Bu

sin

Net Profit Net Profit/Sales

Academic Edition

Page 15

Willamette Furniture Mfr.

le

Profit Monthly $35,000

mp

$30,000 $25,000 $20,000

Sa

$15,000 $10,000

ro

$5,000 $0

Jul Aug Sep Oct Nov Dec

nP

Jan Feb Mar Apr May Jun

Profit Yearly

Pla

$600,000 $500,000 $400,000

ess

$300,000 $200,000 $100,000

1998

1999

2000

Bu

sin

$0

Academic Edition

Page 16

Willamette Furniture Mfr.

le

Gross Margin Monthly $45,000

mp

$40,000 $35,000 $30,000 $25,000

Sa

$20,000 $15,000 $10,000

ro

$5,000 $0

Jul Aug Sep Oct Nov Dec

nP

Jan Feb Mar Apr May Jun

Gross Margin Yearly

Pla

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

ess

$400,000 $300,000 $200,000 $100,000

1998

1999

2000

Bu

sin

$0

Academic Edition

Page 17

Willamette Furniture Mfr. 7.4 Projected Cash Flow

mp

le

Although we expect to be more profitable in 1998, we still have drains on the cash flow. We need to invest $25,000 in new assembly and manufacturing equipment, plus $15,000 in new computer equipment, and another $10,000 in miscellaneous short-term assets, including office equipment. Because of our increased sales through channels, and necessary increase in inventory levels, we need to increase working capital. We plan to extend our credit line to cover as much as $150,000 in short-term credit, backed by receivables and inventory.

Pro Forma Cash Flow

Sa

Table: Cash Flow 1998

1999

2000

Cash from Operations Cash Sales Cash from Receivables Subtotal Cash from Operations

$112,788 $288,966 $401,754

$173,125 $478,182 $651,307

$269,750 $743,283 $1,013,033

Additional Cash Received 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

$0

$0

$0

$125,000 $0 $0 $0 $0 $50,000 $576,754

$50,000 $0 $0 $0 $0 $0 $701,307

$100,000 $0 $0 $0 $0 $0 $1,113,033

1998

1999

2000

$0 $206,453 $206,453

$0 $314,656 $314,656

$0 $480,399 $480,399

nP

Pla

Expenditures

ro

Cash Received

Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations

Net Cash Flow Cash Balance

$0

$0

$0

$66,250

$50,000

$120,000

$0

$0

$0

$0

$0

$0

$0 $50,000 $0 $322,703

$0 $20,000 $0 $384,656

$0 $30,000 $0 $630,399

$254,051 $255,489

$316,651 $572,139

$482,634 $1,054,773

Bu

sin

ess

Additional Cash Spent 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

Academic Edition

Page 18

Willamette Furniture Mfr.

le

Cash

mp

$300,000 $250,000 $200,000

Net Cash Flow

Sa

$150,000 $100,000

ro

$50,000

Cash Balance

$0

Jul Aug Sep Oct Nov Dec

Bu

sin

ess

Pla

nP

Jan Feb Mar Apr May Jun

Academic Edition

Page 19

Willamette Furniture Mfr. 7.5 Projected Balance Sheet

mp

le

Our projected balance sheet shows an increase in net worth to more than $400 thousand in 2000, at which point we expect to be making compelling profits on sales of $1.1 million. With the present financial projections we will be careful in ing our working capital credit line, and we are growing assets both because we want to -- new equipment -- and because we have to grow receivables and inventory to growth in sales through channels. Table: Balance Sheet Pro Forma Balance Sheet 1999

Current Assets Cash s Receivable Inventory Other Current Assets Total Current Assets

$255,489 $77,001 $12,070 $2,375 $346,935

$572,139 $118,194 $18,451 $2,375 $711,160

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

$53,210 $2,720 $50,490 $397,425

$73,210 $3,820 $69,390 $780,550

$103,210 $5,020 $98,190 $1,368,173

1998

1999

2000

Current Liabilities s Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities

$23,727 $58,750 $1,803 $84,280

$26,448 $58,750 $1,803 $87,001

$40,652 $38,750 $1,803 $81,205

Long-term Liabilities Total Liabilities

$0 $84,280

$0 $87,001

$0 $81,205

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

$54,500 $25,555 $237,500 $317,555 $401,835

$54,500 $263,055 $375,994 $693,548 $780,550

$54,500 $639,048 $593,419 $1,286,967 $1,368,173

Net Worth

$313,145

$693,548

$1,286,967

nP

ro

$1,054,773 $184,161 $28,673 $2,375 $1,269,983

Bu

sin

ess

Pla

Liabilities and Capital

2000

Sa

1998 Assets

Academic Edition

Page 20

Willamette Furniture Mfr. 7.6 Business Ratios

mp

le

Our ratios look healthy and solid. Gross margin is projected to decline slightly, return on assets will run well above industry standards, and return on equity is excellent. Debt and liquidity ratios also look good, with our Quick ratio increasing over the next three years. The standard comparisons are based on SIC code 2521, manufacturers of wood office furniture. Table: Ratios Ratio Analysis

Percent of Total Assets s Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets

23.80% 32.10% 19.00% 74.90% 25.10% 100.00%

21.21% 0.00% 21.21% 78.79%

11.15% 0.00% 11.15% 88.85%

5.94% 0.00% 5.94% 94.06%

38.40% 15.90% 54.30% 45.70%

100.00% 74.08%

100.00% 74.87%

100.00% 74.94%

100.00% 32.40%

21.44%

20.58%

19.94%

18.90%

0.00% 71.82%

0.00% 73.24%

0.00% 73.78%

1.40% 1.80%

4.12 3.97 21.21% 101.53% 80.00%

8.17 7.96 11.15% 72.28% 64.23%

15.64 15.29 5.94% 61.48% 57.83%

2.14 1.02 54.30% 5.10% 11.10%

1998 52.64% 75.84%

1999 54.30% 54.21%

2000 55.00% 46.11%

n.a n.a

4.39 58 12.00 9.04 30 1.14

4.39 69 11.40 12.17 28 0.89

4.39 68 11.48 12.17 25 0.79

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

0.27 1.00

0.13 1.00

0.06 1.00

n.a n.a

$262,655 53.17

$624,158 86.33

$1,188,777 163.30

n.a n.a

0.88 21% 3.06 1.44

1.13 11% 6.60 1.00

1.27 6% 13.02 0.84

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

Pla

Percent of Sales Sales Gross Margin Selling, General & istrative 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

ess

Additional Ratios Net Profit Margin Return on Equity

sin

Activity Ratios s Receivable Turnover Collection Days Inventory Turnover s Payable Turnover Payment Days Total Asset Turnover

Bu

Debt Ratios Debt to Net Worth Current Liab. to Liab. Liquidity Ratios Net Working Capital Interest Coverage

Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth

Industry Profile 4.60%

13.46% 2.10% 0.17% 92.82% 7.18% 100.00%

nP

Current Liabilities Long-term Liabilities Total Liabilities Net Worth

2000 55.81%

15.14% 2.36% 0.30% 91.11% 8.89% 100.00%

ro

19.38% 3.04% 0.60% 87.30% 12.70% 100.00%

1999 53.50%

Sa

1998 99.81%

Sales Growth

Academic Edition

Page 21

Appendix Table: Sales Forecast Sales Forecast Jan-98

Feb-98

Mar-98

Apr-98

May-98

Jun-98

Jul-98

Aug-98

Sep-98

14 2 3 0 1 20

16 3 4 1 0 24

16 3 4 0 0 23

16 3 4 0 1 24

15 2 3 0 1 21

12 2 3 1 0 18

12 2 3 0 1 18

15 2 4 1 0 22

15 3 4 1 0 23

Unit Prices Executive desk oak Executive desk cherry Other furniture oak Other furniture cherry Other

Jan-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00

Feb-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00

Mar-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00

Apr-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00

May-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00

Jun-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00

Jul-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00

Aug-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00

Sales Executive desk oak Executive desk cherry Other furniture oak Other furniture cherry Other Total Sales

$22,400 $3,500 $2,700 $0 $2,500 $31,100

$25,600 $5,250 $3,600 $1,000 $0 $35,450

$25,600 $5,250 $3,600 $0 $0 $34,450

$25,600 $5,250 $3,600 $0 $2,500 $36,950

$24,000 $3,500 $2,700 $0 $2,500 $32,700

$19,200 $3,500 $2,700 $0 $2,500 $27,900

Jan-98 $400.00 $525.00 $180.00 $300.00 $625.00

Feb-98 $400.00 $525.00 $180.00 $300.00 $625.00

Mar-98 $400.00 $525.00 $180.00 $300.00 $625.00

Apr-98 $400.00 $525.00 $180.00 $300.00 $625.00

May-98 $400.00 $525.00 $180.00 $300.00 $625.00

Jun-98 $400.00 $525.00 $180.00 $300.00 $625.00

$6,400 $1,575 $720 $0 $625 $9,320

$6,000 $1,050 $540 $0 $625 $8,215

$4,800 $1,050 $540 $300 $0 $6,690

Unit Sales Executive desk oak Executive desk cherry Other furniture oak Other furniture cherry Other Total Unit Sales

15% 5% 5% 5% 20%

Direct Unit Costs Executive desk oak Executive desk cherry Other furniture oak Other furniture cherry Other

25.00% 30.00% 20.00% 30.00% 25.00%

Direct Cost of Sales Executive desk oak Executive desk cherry Other furniture oak Other furniture cherry Other Subtotal Direct Cost of Sales

s e

$5,600 $1,050 $540 $0 $625 $7,815

u B

n i s

P s

$6,400 $1,575 $720 $300 $0 $8,995

$6,400 $1,575 $720 $0 $0 $8,695

n la

r P $19,200 $3,500 $2,700 $1,000 $0 $26,400

Nov-98

Dec-98

26 4 4 1 1 36

27 3 5 1 1 37

25 2 4 1 0 32

Sep-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00

Oct-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00

Nov-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00

Dec-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00

$24,000 $3,500 $3,600 $1,000 $0 $32,100

$24,000 $5,250 $3,600 $1,000 $0 $33,850

$41,600 $7,000 $3,600 $1,000 $2,500 $55,700

$43,200 $5,250 $4,500 $1,000 $2,500 $56,450

$40,000 $3,500 $3,600 $1,000 $0 $48,100

Jul-98 $400.00 $525.00 $180.00 $300.00 $625.00

Aug-98 $400.00 $525.00 $180.00 $300.00 $625.00

Sep-98 $400.00 $525.00 $180.00 $300.00 $625.00

Oct-98 $400.00 $525.00 $180.00 $300.00 $625.00

Nov-98 $400.00 $525.00 $180.00 $300.00 $625.00

Dec-98 $400.00 $525.00 $180.00 $300.00 $625.00

$4,800 $1,050 $540 $0 $625 $7,015

$6,000 $1,050 $720 $300 $0 $8,070

$6,000 $1,575 $720 $300 $0 $8,595

$10,400 $2,100 $720 $300 $625 $14,145

$10,800 $1,575 $900 $300 $625 $14,200

$10,000 $1,050 $720 $300 $0 $12,070

S o

Academic Edition

e l p Oct-98

m a

Page 22

Appendix Table: Personnel Personnel Plan Name or Title or Group Name or Title or Group Name or Title or Group Total People

0% 0% 0%

Total Payroll

u B

Jan-98 $0 $0 $0 0

Feb-98 $0 $0 $0 0

Mar-98 $0 $0 $0 0

Apr-98 $0 $0 $0 0

May-98 $0 $0 $0 0

Jun-98 $0 $0 $0 0

Jul-98 $0 $0 $0 0

Aug-98 $0 $0 $0 0

Sep-98 $0 $0 $0 0

$0

$0

$0

$0

$0

$0

$0

$0

$0

n i s

s e

P s

n la

r P

Academic Edition

S o

m a

e l p Oct-98 $0 $0 $0 0

Nov-98 $0 $0 $0 0

Dec-98 $0 $0 $0 0

$0

$0

$0

Page 23

Appendix Table: Profit and Loss Pro Forma Profit and Loss Jan-98 $31,100 $7,815 $3,110 -----------$10,925

Feb-98 $35,450 $8,995 $0 -----------$8,995

Mar-98 $34,450 $8,695 $0 -----------$8,695

Apr-98 $36,950 $9,320 $0 -----------$9,320

May-98 $32,700 $8,215 $0 -----------$8,215

Jun-98 $26,400 $6,690 $0 -----------$6,690

Jul-98 $27,900 $7,015 $0 -----------$7,015

$20,175 64.87%

$26,455 74.63%

$25,755 74.76%

$27,630 74.78%

$24,485 74.88%

$19,710 74.66%

$20,885 74.86%

$0 $0 $0 $125 $300 $200 $0 $0 $100 -----------$725

$0 $0 $0 $125 $300 $200 $0 $0 $100 -----------$725

$0 $0 $0 $125 $300 $200 $0 $0 $100 -----------$725

$0 $0 $0 $125 $300 $200 $0 $0 $100 -----------$725

$0 $0 $0 $125 $300 $200 $0 $0 $100 -----------$725

$0 $0 $0 $125 $300 $200 $0 $0 $100 -----------$725

$0 $0 $0 $125 $300 $200 $0 $0 $100 -----------$725

Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred

$19,450 $19,450 $625 $5,648

$25,730 $25,730 $615 $6,279

$25,030 $25,030 $563 $6,117

$26,905 $26,905 $552 $6,588

$23,760 $23,760 $510 $5,812

$18,985 $18,985 $469 $4,629

Net Profit Net Profit/Sales

$13,178 42.37%

$18,837 53.14%

$18,351 53.27%

$19,765 53.49%

$17,437 53.32%

$13,887 52.60%

Sales Direct Costs of Goods Other Costs of Goods Cost of Goods Sold Gross Margin Gross Margin % Expenses Payroll Marketing/Promotion Depreciation Leased Equipment Rent Utilities Insurance Payroll Taxes Other

15%

Total Operating Expenses

u B

n i s

s e

P s

n la

r P

Academic Edition

e l p

Aug-98 $32,100 $8,070 $0 -----------$8,070

Sep-98 $33,850 $8,595 $0 -----------$8,595

Oct-98 $55,700 $14,145 $0 -----------$14,145

Nov-98 $56,450 $14,200 $0 -----------$14,200

Dec-98 $48,100 $12,070 $0 -----------$12,070

$24,030 74.86%

$25,255 74.61%

$41,555 74.61%

$42,250 74.84%

$36,030 74.91%

$0 $0 $0 $125 $300 $200 $0 $0 $100 -----------$725

$0 $0 $0 $125 $300 $200 $0 $0 $100 -----------$725

$0 $0 $0 $125 $300 $200 $0 $0 $100 -----------$725

$0 $0 $0 $125 $300 $200 $0 $0 $100 -----------$725

$0 $0 $1,000 $125 $300 $200 $500 $0 $100 -----------$2,225

$20,160 $20,160 $417 $4,936

$23,305 $23,305 $406 $5,725

$24,530 $24,530 $396 $6,034

$40,830 $40,830 $510 $10,080

$41,525 $41,525 $542 $10,246

$33,805 $34,805 $490 $8,329

$14,808 53.07%

$17,174 53.50%

$18,101 53.47%

$30,240 54.29%

$30,738 54.45%

$24,987 51.95%

S o

m a

Page 24

Appendix Table: Cash Flow Pro Forma Cash Flow Jan-98

Feb-98

Mar-98

Apr-98

May-98

Jun-98

Jul-98

Aug-98

$7,775 $13,803 $21,578

$8,863 $14,580 $23,443

$8,613 $23,434 $32,046

$9,238 $26,563 $35,800

$8,175 $25,900 $34,075

$6,600 $27,606 $34,206

$6,975 $24,368 $31,343

$8,025 $19,838 $27,863

$0 $75,000 $0 $0 $0 $0 $0 $96,578

$0 $5,000 $0 $0 $0 $0 $25,000 $53,443

$0 $0 $0 $0 $0 $0 $0 $32,046

$0 $5,000 $0 $0 $0 $0 $0 $40,800

$0 $0 $0 $0 $0 $0 $0 $34,075

$0 $0 $0 $0 $0 $0 $0 $34,206

Jan-98

Feb-98

Mar-98

Apr-98

May-98

Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations

$0 $11,711 $11,711

$0 $15,670 $15,670

$0 $17,727 $17,727

Additional Cash Spent 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

$0 $0 $0 $0 $0 $0 $0 $11,711

$0 $6,250 $0 $0 $0 $25,000 $0 $46,920

$0 $6,250 $0 $0 $0 $0 $0 $23,977

Net Cash Flow Cash Balance

$84,867 $86,305

$6,523 $92,827

$8,069 $100,897

Sep-98

Cash Received Cash from Operations Cash Sales Cash from Receivables Subtotal Cash from Operations Additional Cash Received 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

u B

0.00%

n i s

s e

P s

n la

r P Jun-98

$0 $14,052 $14,052

S o

m a $8,463 $21,030 $29,493

e l p Oct-98

Nov-98

Dec-98

$13,925 $24,119 $38,044

$14,113 $25,934 $40,046

$12,025 $41,794 $53,819

$0 $0 $0 $0 $0 $0 $0 $31,343

$0 $5,000 $0 $0 $0 $0 $0 $32,863

$0 $5,000 $0 $0 $0 $0 $25,000 $59,493

$0 $20,000 $0 $0 $0 $0 $0 $58,044

$0 $10,000 $0 $0 $0 $0 $0 $50,046

$0 $0 $0 $0 $0 $0 $0 $53,819

Jul-98

Aug-98

Sep-98

Oct-98

Nov-98

Dec-98

$0 $11,069 $11,069

$0 $13,503 $13,503

$0 $15,991 $15,991

$0 $16,766 $16,766

$0 $30,836 $30,836

$0 $25,575 $25,575

$0 $15,866 $15,866

$0 $17,689 $17,689

$0 $6,250 $0 $0 $0 $0 $0 $22,116

$0 $5,000 $0 $0 $0 $0 $0 $22,689

$0 $5,000 $0 $0 $0 $0 $0 $19,052

$0 $6,250 $0 $0 $0 $0 $0 $17,319

$0 $6,250 $0 $0 $0 $0 $0 $19,753

$0 $6,250 $0 $0 $0 $25,000 $0 $47,241

$0 $6,250 $0 $0 $0 $0 $0 $23,016

$0 $6,250 $0 $0 $0 $0 $0 $37,086

$0 $6,250 $0 $0 $0 $0 $0 $31,825

$18,684 $119,580

$11,386 $130,967

$15,154 $146,121

$14,024 $160,145

$13,110 $173,254

$12,252 $185,506

$35,028 $220,534

$12,961 $233,495

$21,994 $255,489

Academic Edition

Page 25

Appendix Table: Balance Sheet Pro Forma Balance Sheet Assets

Jan-98

Feb-98

Mar-98

Apr-98

May-98

Jun-98

Jul-98

Aug-98

Sep-98

$160,145 $40,065 $7,015 $2,375 $209,600

$173,254 $44,303 $8,070 $2,375 $228,002

$185,506 $48,660 $8,595 $2,375 $245,136

$28,210 $1,720 $26,490 $236,090

$28,210 $1,720 $26,490 $254,492

Jul-98

e l p Oct-98

Nov-98

Dec-98

$220,534 $66,316 $14,145 $2,375 $303,370

$233,495 $82,720 $14,200 $2,375 $332,790

$255,489 $77,001 $12,070 $2,375 $346,935

$53,210 $1,720 $51,490 $296,626

$53,210 $1,720 $51,490 $354,860

$53,210 $1,720 $51,490 $384,280

$53,210 $2,720 $50,490 $397,425

Aug-98

Sep-98

Oct-98

Nov-98

Dec-98

$12,970 $50,000 $1,803 $64,773

$15,448 $48,750 $1,803 $66,001

$15,732 $47,500 $1,803 $65,035

$35,474 $61,250 $1,803 $98,527

$23,518 $65,000 $1,803 $90,321

$23,727 $58,750 $1,803 $84,280

$0 $68,675

$0 $64,773

$0 $66,001

$0 $65,035

$0 $98,527

$0 $90,321

$0 $84,280

Starting Balances

m a

Current Assets Cash s Receivable Inventory Other Current Assets Total Current Assets

$1,438 $27,605 $10,141 $2,375 $41,559

$86,305 $37,128 $7,815 $2,375 $133,622

$92,827 $49,135 $8,995 $2,375 $153,332

$100,897 $51,539 $8,695 $2,375 $163,505

$119,580 $52,689 $9,320 $2,375 $183,964

$130,967 $51,314 $8,215 $2,375 $192,870

$146,121 $43,508 $6,690 $2,375 $198,693

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

$3,210 $1,720 $1,490 $43,049

$3,210 $1,720 $1,490 $135,112

$28,210 $1,720 $26,490 $179,822

$28,210 $1,720 $26,490 $189,995

$28,210 $1,720 $26,490 $210,454

$28,210 $1,720 $26,490 $219,360

$28,210 $1,720 $26,490 $225,183

Jan-98

Feb-98

Mar-98

Apr-98

May-98

$17,217 $66,250 $1,803 $85,270

$13,686 $61,250 $1,803 $76,739

$0 $85,270

$0 $76,739

$29,500 $25,555 $70,129 $125,184 $210,454

$29,500 $25,555 $87,567 $142,622 $219,360

$29,500 $25,555 $101,454 $156,509 $225,183

$29,500 $25,555 $116,261 $171,316 $236,090

$29,500 $25,555 $133,435 $188,490 $254,492

$54,500 $25,555 $151,536 $231,591 $296,626

$54,500 $25,555 $181,776 $261,831 $360,358

$54,500 $25,555 $212,513 $292,568 $382,890

$54,500 $25,555 $237,500 $317,555 $401,835

$125,184

$142,622

$156,509

$171,316

$188,490

$231,591

$256,333

$293,958

$313,145

Liabilities and Capital Current Liabilities s Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities

$11,191 $0 $1,803 $12,994

$15,077 $75,000 $1,803 $91,880

$17,200 $73,750 $1,803 $92,753

$15,273 $67,500 $1,803 $84,576

Long-term Liabilities Total Liabilities

$0 $12,994

$0 $91,880

$0 $92,753

$0 $84,576

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

$4,500 $13,100 $12,455 $30,055 $43,049

$4,500 $25,555 $13,178 $43,233 $135,112

$29,500 $25,555 $32,014 $87,069 $179,822

Net Worth

$30,055

$43,233

u B

n i s

s e

P s

$87,069

$29,500 $25,555 $50,365 $105,420 $189,995 $105,420

n la

r P Jun-98

$10,622 $56,250 $1,803 $68,675

Academic Edition

S o

Page 26