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Table of Contents
Table of Contents
Page 2
Chart: Highlights
Highlights
$3,000,000
$2,700,000
$2,400,000
$2,100,000
Sales
$1,800,000
Gross Margin
$1,500,000
Net Profit
$1,200,000
$900,000
$600,000
$300,000
$0
Year 1
Year 2
Year 3
1.1 Objectives
1. 100% customer satisfaction, measured through repeat customers, referrals and surveys.
2. To achieve and surpass the industry average profit margin within the first two-years.
3. To achieve a respectable net profit by year two.
1.2 Mission
Integrity Auto Sales provides a unique car buying experience to the customers in the
Willamette Valley. One that focuses on customer satisfaction first. We understand that vehicle
purchasing is a necessary, but sometimes unpleasant experience. Our goal is to provide the
Page 1
Page 2
Chart: Start-up
Start-up
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
Expenses
Assets
Investment
Loans
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Advertising
Consultants (Accountant)
Rent
Expensed Equipment
Internet Web page
Other
Total Start-up Expenses
$500
$200
$1,000
$500
$4,000
$4,500
$1,000
$500
$12,200
Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets
$67,800
$50,000
$0
$0
$117,800
Total Requirements
$130,000
Page 3
$12,200
$117,800
$130,000
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$50,000
$67,800
$0
$67,800
$117,800
$100,000
$0
$0
$0
$100,000
Capital
Planned Investment
Owner #1
Owner #2
Additional Investment Requirement
Total Planned Investment
$20,000
$10,000
$0
$30,000
($12,200)
$17,800
$117,800
Total Funding
$130,000
The company office is located at 12345 HWY 99, Junction City, OR 97666.
The office is approximately 1,000 square feet and has ample space for the first three years
of growth.
The 20,000 square foot lot and building is leased from the principal owner.
3.0 Products
Integrity Auto Sales sells top-quality used vehicles at a competitive price. Integrity buys preinspected vehicles wholesale from well known local car dealers, and auto auctions. Integrity
continually maintains a diverse stock of vehicles, providing the widest selection for individual
needs.
Vehicles are purchased weekly, to add to the current stock on hand. Each vehicle is thoroughly
inspected by an ASE mechanic with over 25 years of experience. Only vehicles that pass this
critical 26 point inspection are sold on site.
Page 4
Page 5
Page 6
Students
Retired
Families
Singles
Other
Market Analysis
Potential Customers
Students
Retired
Families
Singles
Other
Total
Year 1
Year 2
Year 3
Year 4
Year 5
45,000
60,000
400,000
200,000
20,000
725,000
49,500
67,200
440,000
220,000
22,000
798,700
54,450
75,264
484,000
242,000
24,200
879,914
59,895
84,296
532,400
266,200
26,620
969,411
65,885
94,412
585,640
292,820
29,282
1,068,039
Growth
10%
12%
10%
10%
10%
10.17%
CAGR
10.00%
12.00%
10.00%
10.00%
10.00%
10.17%
Page 7
The used car sales industry is continuing to grow at or above population increases. Vehicles
are the second largest purchase most consumers make, and more people are buying new
and used vehicles than ever.
Relatively good margins have resulted in some success in the local used car industry.
Page 8
The primary competitors will be those in and around Junction City. Guaranty is a large, wellestablished dealer, with approximately 75% of the local market share. Guaranty has a large
operation with a well-trained sales staff. Our sales manager is a former Guaranty
sales manager, who understands the competition's operations very well.
Frank's Auto Place offers a limited selection, and appears to be unorganized. Frank's does
not offer any competitive marketing and primarily focuses on the $1-2,000 vehicle.
Page 9
Page 10
Sales Forecast
Year 1
Year 2
Year 3
Low-end vehicles
Average vehicles
High-end vehicles
Loan sales
Warranty sales
Other/consignments
Total Unit Sales
298
154
79
166
136
49
882
320
162
85
175
140
50
932
345
170
90
200
150
50
1,005
Unit Prices
Low-end vehicles
Average vehicles
High-end vehicles
Loan sales
Warranty sales
Other/consignments
Year 1
$2,000.00
$4,979.87
$9,958.23
$400.00
$200.00
$5,000.00
Year 2
$2,200.00
$5,100.00
$10,200.00
$400.00
$200.00
$5,100.00
Year 3
$2,400.00
$5,200.00
$10,500.00
$400.00
$200.00
$5,200.00
Low-end vehicles
Average vehicles
High-end vehicles
Loan sales
Warranty sales
Other/consignments
Total Sales
$596,000
$766,900
$786,700
$66,400
$27,200
$245,000
$2,488,200
$704,000
$826,200
$867,000
$70,000
$28,000
$255,000
$2,750,200
$828,000
$884,000
$945,000
$80,000
$30,000
$260,000
$3,027,000
Year 1
$1,200.00
$3,500.00
$8,000.00
$0.00
$0.00
$4,500.00
Year 2
$1,100.00
$3,500.00
$7,900.00
$0.00
$0.00
$4,500.00
Year 3
$1,000.00
$3,500.00
$7,800.00
$0.00
$0.00
$4,500.00
$357,600
$539,000
$632,000
$0
$0
$220,500
$1,749,100
$352,000
$567,000
$671,500
$0
$0
$225,000
$1,815,500
$345,000
$595,000
$702,000
$0
$0
$225,000
$1,867,000
Unit Sales
Sales
Page 11
Sales Monthly
$270,000
$240,000
Low-end vehicles
$210,000
Average vehicles
$180,000
High-end vehicles
$150,000
Loan sales
$120,000
$90,000
Warranty sales
$60,000
Other/consignments
$30,000
Month 12
Month 11
Month 10
Month 9
Month 8
Month 7
Month 6
Month 5
Month 4
Month 3
Month 2
Month 1
$0
Sales by Year
$2,800,000
Low-end vehicles
$2,400,000
Average vehicles
$2,000,000
High-end vehicles
$1,600,000
Loan sales
$1,200,000
Warranty sales
Other/consignments
$800,000
$400,000
$0
Year 1
Year 2
Year 3
Page 12
Milestones
Milestone
Business Plan
Purchase Lot
Complete Legal
Establish Suppliers
Establish Acctg Books
Final Plan Review
Purchase Office Supplies/Equip
Purchase Inventory
Grand Opening Advertisement
Hire Employees
Company Party
Totals
Start Date
10/15/2001
1/1/2002
1/1/2002
1/1/2002
1/1/2002
5/1/2002
5/1/2002
5/1/2002
5/1/2002
5/15/2002
7/1/2002
End Date
11/19/2001
5/1/2002
1/1/2002
6/1/2002
5/1/2002
5/1/2002
5/15/2002
6/1/2002
6/1/2002
5/20/2002
7/1/2002
Budget
$0
$0
$500
$0
$500
$0
$4,700
$50,000
$500
$0
$200
$56,400
Manager
Owner
Owner
Owners
Sales Mgr
Owner, admin
Owner
Owner
Sales MGR
Sales MGR
Owner
Owner
Department
Marketing
Marketing
Management
Sales
Records
ALL
Administrative
Sales
Administrative
Management
Administrative
Page 13
Chart: Milestones
Milestones
Business Plan
Purchase Lot
Complete Legal
Establish Suppliers
Establish Acctg Books
Final Plan Review
Purchase Office Supplies/Equip
Purchase Inventory
Grand Opening Advertisement
Hire Employees
Company Party
Nov
Dec
Jan `02
Feb
Mar
Apr
May
Jun
Page 14
Year 2
Year 3
$42,000
$0
$42,000
$50,000
$0
$50,000
$60,000
$0
$60,000
$30,500
$0
$30,500
$35,000
$0
$35,000
$40,000
$0
$40,000
$24,300
$14,550
$0
$38,850
$26,500
$15,500
$0
$42,000
$29,000
$16,500
$0
$45,500
$2,000
$0
$2,000
$2,000
$0
$2,000
$2,000
$0
$2,000
$113,350
$129,000
$147,500
Production Personnel
Owner/Manager
Other
Subtotal
Sales and Marketing Personnel
Sales Manager
Other
Subtotal
General and Administrative Personnel
Secretary/Records Admin
Lot Attendant
Other
Subtotal
Other Personnel
Accountant
Other
Subtotal
Total People
Total Payroll
Page 15
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other
Year 1
Year 2
Year 3
1
7.00%
10.00%
30.00%
0
2
7.00%
10.00%
30.00%
0
3
7.00%
10.00%
30.00%
0
Page 16
Chart: Benchmarks
Benchmarks
1.0
Year 1
Year 2
Year 3
0.0
Sales
Operating Expenses
Gross Margin%
Inventory Turnover
Page 17
Break-even Analysis
Monthly Units Break-even
Monthly Revenue Break-even
18
$49,867
Assumptions:
Average Per-Unit Revenue
Average Per-Unit Variable Cost
Estimated Monthly Fixed Cost
$2,821.09
$1,983.11
$14,813
Break-even Analysis
$12,000
$9,000
$6,000
$3,000
$0
($3,000)
($6,000)
($9,000)
($12,000)
12
15
18
21
24
27
30
33
Page 18
Chart: Cash
Cash
$600,000
$500,000
$400,000
Cash Balance
$200,000
$100,000
Month 12
Month 11
Month 10
Month 9
Month 8
Month 7
Month 6
Month 5
Month 4
Month 3
Month 2
Month 1
$0
Page 19
Year 2
Year 3
$2,488,200
$2,488,200
$2,750,200
$2,750,200
$3,027,000
$3,027,000
$0
$150,000
$0
$30,000
$0
$0
$0
$2,668,200
$0
$0
$0
$0
$0
$0
$0
$2,750,200
$0
$0
$0
$0
$0
$0
$0
$3,027,000
Year 1
Year 2
Year 3
$113,350
$1,969,644
$2,082,994
$129,000
$2,139,786
$2,268,786
$147,500
$2,245,282
$2,392,782
$0
$24,000
$0
$0
$0
$0
$0
$2,106,994
$0
$24,000
$0
$0
$0
$0
$0
$2,292,786
$0
$24,000
$0
$0
$0
$0
$0
$2,416,782
$561,206
$629,006
$457,414
$1,086,420
$610,218
$1,696,638
Cash Received
Cash from Operations
Cash Sales
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
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
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
Net Cash Flow
Cash Balance
Page 20
Profit Monthly
$40,000
$36,000
$32,000
$28,000
$24,000
$20,000
$16,000
$12,000
$8,000
$4,000
$0
Month 1
Month 3
Month 5
Month 7
Month 9
Month 11
Month 2
Month 4
Month 6
Month 8
Month 10
Month 12
Profit Yearly
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
Year 1
Year 2
Year 3
Page 21
Month 3
Month 5
Month 7
Month 9
Month 11
Month 2
Month 4
Month 6
Month 8
Month 10
Month 12
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
Year 1
Year 2
Year 3
Page 22
Year 2
Year 3
$2,488,200
$1,749,100
$42,000
$0
$1,791,100
$2,750,200
$1,815,500
$50,000
$0
$1,865,500
$3,027,000
$1,867,000
$60,000
$0
$1,927,000
$697,100
28.02%
$884,700
32.17%
$1,100,000
36.34%
$30,500
$14,000
$3,600
$6,600
$3,200
$0
$57,900
2.33%
$35,000
$5,000
$2,500
$6,000
$1,000
$1,000
$50,500
1.84%
$40,000
$6,000
$2,600
$6,000
$2,000
$1,000
$57,600
1.90%
$38,850
$0
$400
$1,200
$6,000
$4,800
$48,000
$17,003
$0
$116,253
4.67%
$42,000
$0
$500
$1,500
$5,500
$5,000
$48,000
$19,350
$0
$121,850
4.43%
$45,500
$0
$600
$2,000
$6,000
$5,500
$50,000
$22,125
$0
$131,725
4.35%
$2,000
$0
$1,600
$3,600
0.14%
$2,000
$0
$1,200
$3,200
0.12%
$2,000
$0
$1,200
$3,200
0.11%
$177,753
$175,550
$192,525
$519,348
$519,748
$16,382
$150,890
$709,150
$709,650
$17,980
$207,351
$907,475
$908,075
$16,300
$267,353
Net Profit
Net Profit/Sales
$352,076
14.15%
$483,819
17.59%
$623,823
20.61%
Sales
Direct Cost of Sales
Production Payroll
Other Production Expenses
Total Cost of Sales
Gross Margin
Gross Margin %
Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll
Advertising/Promotion
Web Page Maintenance
Cleaning/Maintenance
Travel/Auctions
Miscellaneous
Total Sales and Marketing Expenses
Sales and Marketing %
General and Administrative Expenses
General and Administrative Payroll
Sales and Marketing and Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other General and Administrative Expenses
Total General and Administrative Expenses
General and Administrative %
Other Expenses:
Other Payroll
Consultants
Contract/Consultants-Accountant Review Books
Total Other Expenses
Other %
Page 23
Year 2
Year 3
$629,006
$210,100
$0
$839,106
$1,086,420
$172,739
$0
$1,259,158
$1,696,638
$175,996
$0
$1,872,634
$0
$400
($400)
$838,706
$0
$900
($900)
$1,258,258
$0
$1,500
($1,500)
$1,871,134
Year 1
Year 2
Year 3
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$212,830
$226,000
$0
$438,830
$172,563
$202,000
$0
$374,563
$185,617
$178,000
$0
$363,617
Long-term Liabilities
Total Liabilities
$30,000
$468,830
$30,000
$404,563
$30,000
$393,617
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$30,000
($12,200)
$352,076
$369,876
$838,706
$30,000
$339,876
$483,819
$853,695
$1,258,258
$30,000
$823,695
$623,823
$1,477,518
$1,871,134
Net Worth
$369,876
$853,695
$1,477,518
Assets
Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Page 24
Ratio Analysis
Year 1
Year 2
Year 3
Industry Profile
n.a.
10.53%
10.06%
14.00%
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets
25.05%
0.00%
100.05%
-0.05%
100.00%
13.73%
0.00%
100.07%
-0.07%
100.00%
9.41%
0.00%
100.08%
-0.08%
100.00%
58.90%
28.10%
100.00%
0.00%
100.00%
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
52.32%
3.58%
55.90%
44.10%
29.77%
2.38%
32.15%
67.85%
19.43%
1.60%
21.04%
78.96%
0.00%
0.00%
0.00%
100.00%
100.00%
28.02%
13.87%
0.56%
20.87%
100.00%
32.17%
15.62%
0.17%
25.79%
100.00%
36.34%
15.73%
0.20%
29.98%
100.00%
18.90%
10.20%
1.30%
1.10%
1.91
1.43
55.90%
135.98%
59.97%
3.36
2.90
32.15%
80.96%
54.93%
5.15
4.67
21.04%
60.32%
47.63%
1.92
0.47
55.55%
55.55%
8.90%
Sales Growth
Percent of Total Assets
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
Year 1
Year 2
Year 3
14.15%
95.19%
17.59%
56.67%
20.61%
42.22%
n.a
n.a
10.91
10.25
27
2.97
9.48
12.17
34
2.19
10.71
12.17
29
1.62
n.a
n.a
n.a
n.a
1.27
0.94
0.47
0.93
0.27
0.92
n.a
n.a
$400,276
31.70
$884,595
39.44
$1,509,018
55.67
n.a
n.a
0.34
52%
1.43
6.73
0.46
30%
2.90
3.22
0.62
19%
4.67
2.05
n.a
n.a
n.a
n.a
Activity Ratios
Inventory Turnover
Accounts Payable Turnover
Payment Days
Total Asset Turnover
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
Page 25
Dividend Payout
0.00
0.00
0.00
n.a
Page 26
Appendix
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
Unit Sales
Low-end vehicles
0%
20
25
30
30
25
20
18
20
25
25
30
30
Average vehicles
0%
12
15
15
15
12
10
10
11
12
12
15
15
High-end vehicles
0%
10
10
Loan sales
0%
10
12
15
15
12
10
10
12
15
15
20
20
Warranty sales
0%
10
12
12
12
12
10
10
10
12
12
12
12
Other/consignments
0%
62
76
84
84
70
56
54
62
75
75
92
92
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Low-end vehicles
$2,000.00
$2,000.00
$2,000.00
$2,000.00
$5,000.00
$5,000.00
$2,000.0
0
$5,000.0
$5,000.00
$5,000.00
$5,000.00
High-end vehicles
$10,000.0
0
$400.00
$10,000.0
0
$400.00
$10,000.0
0
$400.00
$10,000.0
0
$400.00
0
$9,900.0
0
$400.00
$2,000.0
0
$4,900.0
$2,000.00
$5,000.00
$2,000.0
0
$4,900.0
$2,000.00
$5,000.00
$2,000.0
0
$4,900.0
$2,000.00
Average vehicles
$2,000.0
0
$5,000.0
$10,000.0
0
$400.00
$10,000.0
0
$400.00
$10,000.0
0
$400.00
Loan sales
Warranty sales
0
$9,800.0
0
$400.00
0
$9,800.0
0
$400.00
0
$9,900.0
0
$400.00
0
$9,900.0
0
$400.00
$200.00
$200.00
$200.00
$200.00
$200.00
$200.00
$200.00
$200.00
$200.00
$200.00
$200.00
$200.00
$5,000.00
$5,000.00
$5,000.00
$5,000.00
$5,000.0
0
$5,000.0
0
$5,000.0
0
$5,000.0
0
$5,000.0
0
$5,000.00
$5,000.00
$5,000.00
Low-end vehicles
$40,000
$50,000
$60,000
$60,000
$50,000
$40,000
$36,000
$40,000
$50,000
$50,000
$60,000
$60,000
Average vehicles
$60,000
$75,000
$75,000
$75,000
$60,000
$49,000
$49,000
$53,900
$60,000
$60,000
$75,000
$75,000
High-end vehicles
$60,000
$70,000
$70,000
$70,000
$49,500
$39,200
$39,200
$49,500
$69,300
$70,000
$100,000
$100,000
Loan sales
$4,000
$4,800
$6,000
$6,000
$4,800
$4,000
$4,000
$4,800
$6,000
$6,000
$8,000
$8,000
Warranty sales
$2,000
$2,400
$2,400
$2,400
$2,400
$2,000
$2,000
$2,000
$2,400
$2,400
$2,400
$2,400
$20,000
$25,000
$25,000
$25,000
$20,000
$10,000
$10,000
$20,000
$20,000
$20,000
$25,000
$25,000
$186,000
$227,200
$238,400
$238,400
$186,700
$144,200
$140,200
$170,200
$207,700
$208,400
$270,400
$270,400
Other/consignments
Sales
Other/consignments
Total Sales
Direct Unit Costs
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Low-end vehicles
0.00%
$1,200.00
$1,200.00
$1,200.00
$1,200.00
$3,500.00
$3,500.00
$3,500.00
$1,200.0
0
$3,500.0
$1,200.0
0
$3,500.0
$1,200.00
$3,500.00
$1,200.0
0
$3,500.0
$1,200.00
0.00%
$1,200.0
0
$3,500.0
$1,200.00
Average vehicles
$1,200.0
0
$3,500.0
$3,500.00
$3,500.00
$3,500.00
High-end vehicles
0.00%
$8,000.00
$8,000.00
$8,000.00
$8,000.00
$8,000.00
$8,000.00
$8,000.00
Loan sales
0.00%
$0.00
$0.00
$0.00
$0.00
Warranty sales
0.00%
$0.00
$0.00
$0.00
$0.00
Other/consignments
0.00%
0
$8,000.0
0
$0.00
$0.00
0
$8,000.0
0
$0.00
$0.00
0
$8,000.0
0
$0.00
$0.00
0
$8,000.0
0
$0.00
$0.00
0
$8,000.0
0
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$4,500.00
$4,500.00
$4,500.00
$4,500.00
$4,500.0
0
$4,500.0
0
$4,500.0
0
$4,500.0
0
$4,500.0
0
$4,500.00
$4,500.00
$4,500.00
Low-end vehicles
$24,000
$30,000
$36,000
$36,000
$30,000
$24,000
$21,600
$24,000
$30,000
$30,000
$36,000
$36,000
Average vehicles
$42,000
$52,500
$52,500
$52,500
$42,000
$35,000
$35,000
$38,500
$42,000
$42,000
$52,500
$52,500
High-end vehicles
$48,000
$56,000
$56,000
$56,000
$40,000
$32,000
$32,000
$40,000
$56,000
$56,000
$80,000
$80,000
Loan sales
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Warranty sales
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$18,000
$22,500
$22,500
$22,500
$18,000
$9,000
$9,000
$18,000
$18,000
$18,000
$22,500
$22,500
$132,000
$161,000
$167,000
$167,000
$120,500
$146,000
$146,000
$191,000
$191,000
Other/consignments
Subtotal Direct Cost of Sales
$130,000
$100,000
$97,600
Page 1
Appendix
Table: Personnel
Personnel Plan
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$3,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Subtotal
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$3,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,300
Lot Attendant
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,350
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$3,200
$3,200
$3,200
$3,200
$3,200
$3,200
$3,200
$3,200
$3,200
$3,200
$3,200
$3,650
$500
$0
$0
$500
$0
$0
$500
$0
$0
$500
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$500
$0
$0
$500
$0
$0
$500
$0
$0
$500
$0
$0
$9,700
$9,200
$9,200
$9,700
$9,200
$9,200
$9,700
$9,200
$9,200
$9,700
$9,200
$10,150
Production Personnel
Owner/Manager
Other
Subtotal
Month
10
Month
11
Month
12
$3,500
Other
Subtotal
Other Personnel
Accountant
Other
Subtotal
Total People
Total Payroll
Page 2
Appendix
Table: General Assumptions
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest
Rate
Tax Rate
Other
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
10
11
Month 12
12
7.00%
7.00%
7.00%
7.00%
7.00%
7.00%
7.00%
7.00%
7.00%
7.00%
7.00%
7.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
Page 3
Appendix
Table: Profit and Loss
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Sales
$186,000
$227,200
$238,400
$238,400
$186,700
$144,200
$140,200
$170,200
$207,700
$208,400
$270,400
$270,400
$132,000
$161,000
$167,000
$167,000
$130,000
$100,000
$97,600
$120,500
$146,000
$146,000
$191,000
$191,000
Production Payroll
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
Other Production
Expenses
Total Cost of Sales
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$135,500
$164,500
$170,500
$170,500
$133,500
$103,500
$101,100
$124,000
$149,500
$149,500
$194,500
$194,500
$50,500
$62,700
$67,900
$67,900
$53,200
$40,700
$39,100
$46,200
$58,200
$58,900
$75,900
$75,900
27.15%
27.60%
28.48%
28.48%
28.49%
28.22%
27.89%
27.14%
28.02%
28.26%
28.07%
28.07%
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$3,000
Gross Margin
Gross Margin %
Operating Expenses
Sales and Marketing
Expenses
Sales and Marketing
Payroll
Advertising/Promotion
$2,000
$2,000
$1,000
$1,000
$1,000
$500
$500
$1,000
$1,000
$1,000
$1,000
$2,000
$400
$400
$400
$400
$200
$200
$200
$200
$200
$200
$400
$400
Cleaning/Maintenance
$700
$700
$500
$500
$500
$500
$500
$500
$500
$500
$500
$700
Travel/Auctions
$400
$400
$400
$200
$200
$200
$200
$200
$200
$200
$200
$400
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$6,000
$6,000
$4,800
$4,600
$4,400
$3,900
$3,900
$4,400
$4,400
$4,400
$4,600
$6,500
3.23%
2.64%
2.01%
1.93%
2.36%
2.70%
2.78%
2.59%
2.12%
2.11%
1.70%
2.40%
$3,200
$3,200
$3,200
$3,200
$3,200
$3,200
$3,200
$3,200
$3,200
$3,200
$3,200
$3,650
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Miscellaneous
Total Sales and Marketing
Expenses
Sales and Marketing %
General and
Administrative Expenses
General and
Administrative Payroll
Sales and Marketing and
Other Expenses
Depreciation
$100
$0
$0
$100
$0
$0
$100
$0
$0
$100
$0
$0
Leased Equipment
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
Utilities
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
Insurance
$400
$400
$400
$400
$400
$400
$400
$400
$400
$400
$400
$400
$4,000
$4,000
$4,000
$4,000
$4,000
$4,000
$4,000
$4,000
$4,000
$4,000
$4,000
$4,000
$1,455
$0
$1,380
$0
$1,380
$0
$1,455
$0
$1,380
$0
$1,380
$0
$1,455
$0
$1,380
$0
$1,380
$0
$1,455
$0
$1,380
$0
$1,523
$0
$9,755
$9,580
$9,580
$9,755
$9,580
$9,580
$9,755
$9,580
$9,580
$9,755
$9,580
$10,173
Rent
Payroll Taxes
Other General and
Administrative Expenses
Total General and
Administrative Expenses
15%
Page 4
Appendix
General and
Administrative %
5.24%
4.22%
4.02%
4.09%
5.13%
6.64%
6.96%
5.63%
4.61%
4.68%
3.54%
3.76%
$0
Other Expenses:
Other Payroll
$500
$0
$0
$500
$0
$0
$500
$0
$0
$500
$0
Consultants
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$400
$0
$0
$400
$0
$0
$400
$0
$0
$400
$500
$0
$400
$500
$0
$400
$500
$0
$400
$500
$0
$400
0.27%
0.00%
0.17%
0.21%
0.00%
0.28%
0.36%
0.00%
0.19%
0.24%
0.00%
0.15%
$16,255
$15,580
$14,780
$14,855
$13,980
$13,880
$14,155
$13,980
$14,380
$14,655
$14,180
$17,073
$34,245
$47,120
$53,120
$53,045
$39,220
$26,820
$24,945
$32,220
$43,820
$44,245
$61,720
$58,828
$58,828
Other %
$34,345
$47,120
$53,120
$53,145
$39,220
$26,820
$25,045
$32,220
$43,820
$44,345
$61,720
Interest Expense
$1,405
$1,393
$1,382
$1,370
$1,358
$1,347
$1,335
$1,323
$1,312
$1,300
$1,288
$1,568
Taxes Incurred
$9,852
$13,718
$15,522
$15,503
$11,358
$7,642
$7,083
$9,269
$12,753
$12,884
$18,130
$17,178
$22,988
$32,009
$36,217
$36,173
$26,503
$17,831
$16,527
$21,628
$29,756
$30,062
$42,302
$40,081
12.36%
14.09%
15.19%
15.17%
14.20%
12.37%
11.79%
12.71%
14.33%
14.42%
15.64%
14.82%
Net Profit
Net Profit/Sales
Page 5
Appendix
Table: Cash Flow
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Cash Sales
$186,000
$227,200
$238,400
$238,400
$186,700
$144,200
$140,200
$170,200
$207,700
$208,400
$270,400
$270,400
$186,000
$227,200
$238,400
$238,400
$186,700
$144,200
$140,200
$170,200
$207,700
$208,400
$270,400
$270,400
Cash Received
Cash from Operations
0.00%
$0
$100,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$50,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$30,000
$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
$316,000
$227,200
$238,400
$238,400
$186,700
$144,200
$140,200
$170,200
$207,700
$208,400
$270,400
$320,400
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$9,700
Bill Payments
$8,280
$247,395
$217,281
$199,345
$189,690
$109,426
$85,071
$113,011
$165,637
$195,852
$171,867
$266,790
$17,980
$256,595
$226,481
$209,045
$198,890
$118,626
$94,771
$122,211
$174,837
$205,552
$181,067
$276,940
$9,200
$9,200
$9,700
$9,200
$9,200
$9,700
$9,200
$9,200
$9,700
$9,200
$10,150
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$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
Dividends
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$19,980
$258,595
$228,481
$211,045
$200,890
$120,626
$96,771
$124,211
$176,837
$207,552
$183,067
$0
$278,940
Page 6
Appendix
Net Cash Flow
$296,020
($31,395)
Cash Balance
$363,820
$332,425
$9,919
$342,344
$27,355
($14,190)
$23,574
$43,429
$45,989
$30,863
$87,333
$41,460
$369,699
$355,509
$379,084
$422,513
$468,502
$499,365
$500,213
$848
$587,546
$629,006
Assets
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month
10
Month
11
Month
12
$67,800
$50,000
$0
$117,800
$363,820
$145,200
$0
$509,020
$332,425
$177,100
$0
$509,525
$342,344
$183,700
$0
$526,044
$369,699
$183,700
$0
$553,399
$355,509
$143,000
$0
$498,509
$379,084
$110,000
$0
$489,084
$422,513
$107,360
$0
$529,873
$468,502
$132,550
$0
$601,052
$499,365
$160,600
$0
$659,965
$500,213
$160,600
$0
$660,813
$587,546
$210,100
$0
$797,646
$629,006
$210,100
$0
$839,106
$0
$0
$0
$117,800
$0
$100
($100)
$508,920
$0
$100
($100)
$509,425
$0
$100
($100)
$525,944
$0
$200
($200)
$553,199
$0
$200
($200)
$498,309
$0
$200
($200)
$488,884
$0
$300
($300)
$529,573
$0
$300
($300)
$600,752
$0
$300
($300)
$659,665
$0
$400
($400)
$660,413
$0
$400
($400)
$797,246
$0
$400
($400)
$838,706
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month
10
Month
11
Month
12
Starting
Balances
Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$0
$100,000
$0
$100,000
$240,132
$198,000
$0
$438,132
$210,628
$196,000
$0
$406,628
$192,930
$194,000
$0
$386,930
$186,013
$192,000
$0
$378,013
$106,620
$190,000
$0
$296,620
$81,363
$188,000
$0
$269,363
$107,525
$186,000
$0
$293,525
$159,077
$184,000
$0
$343,077
$190,234
$182,000
$0
$372,234
$162,921
$180,000
$0
$342,921
$259,451
$178,000
$0
$437,451
$212,830
$226,000
$0
$438,830
Long-term Liabilities
Total Liabilities
$0
$100,000
$30,000
$468,132
$30,000
$436,628
$30,000
$416,930
$30,000
$408,013
$30,000
$326,620
$30,000
$299,363
$30,000
$323,525
$30,000
$373,077
$30,000
$402,234
$30,000
$372,921
$30,000
$467,451
$30,000
$468,830
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$30,000
($12,200)
$0
$17,800
$117,800
$30,000
($12,200)
$22,988
$40,788
$508,920
$30,000
($12,200)
$54,997
$72,797
$509,425
$30,000
($12,200)
$91,214
$109,014
$525,944
$30,000
($12,200)
$127,386
$145,186
$553,199
$30,000
($12,200)
$153,889
$171,689
$498,309
$30,000
($12,200)
$171,721
$189,521
$488,884
$30,000
($12,200)
$188,248
$206,048
$529,573
$30,000
($12,200)
$209,875
$227,675
$600,752
$30,000
($12,200)
$239,631
$257,431
$659,665
$30,000
($12,200)
$269,693
$287,493
$660,413
$30,000
($12,200)
$311,995
$329,795
$797,246
$30,000
($12,200)
$352,076
$369,876
$838,706
$17,800
$40,788
$72,797
$109,014
$145,186
$171,689
$189,521
$206,048
$227,675
$257,431
$287,493
$329,795
$369,876
Net Worth
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