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Table of Contents

1.0 Executive Summary .................................................................................................................... 1

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

7.5 Projected Balance Sheet ...................................................................................................... 19

Table: Balance Sheet ................................................................................................................ 19
7.6 Business Ratios ....................................................................................................................... 19
7.6 Business Ratios ....................................................................................................................... 19
Table: Ratios ................................................................................................................................ 20
Table: Sales Forecast ......................................................................................................................... 1
Table: Personnel ................................................................................................................................... 2
Table: Personnel ................................................................................................................................... 2
Table: General Assumptions ............................................................................................................ 3
Table: General Assumptions ............................................................................................................ 3
Table: Profit and Loss ......................................................................................................................... 4
Table: Profit and Loss ......................................................................................................................... 4
Table: Cash Flow .................................................................................................................................. 5
Table: Cash Flow .................................................................................................................................. 5
Table: Balance Sheet .......................................................................................................................... 6
Table: Balance Sheet .......................................................................................................................... 6

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Visigoth Imports, Inc.

1.0 Executive Summary

Introduction
It is the mission of Visigoth Imports to provide complete import/export brokerage services
including purchase contracts, shipping, warehousing, and delivery scheduling. The company will
concentrate on special and cultural imports from Germany and Scandinavia to the unique
Bavarian town of Leavenworth, WA. Visigoth also plans to provide trade consultation services
to newly started farms created under the Puget Consumers Co-op's Farmland Fund initiative.
The Company
Visigoth Imports will be a limited liability partnership registered in the state of Delaware for tax
purposes. Its founder is Mr. Frank Curtiss, a former master distributor with Fisher-Mills. Mr.
Curtiss has brought together a highly respected group of individuals who are well versed in
foreign trade processes.
The company has a limited number of private investors and does not plan to go public. The
company has its main offices in Wenatchee, Washington. The facilities include conference
rooms and office spaces. The company expects to begin offering its services in June.
The Services
Visigoth offers complete import/export brokerage services plus inventory consulting services.
As mentioned previously, this includes the following:

Supplier/buyer identification
Purchasing, contracting and consulting
Shipping
Warehousing
Delivery

It must be noted that Visigoth does not posess any warehousing facilities and intends to
outsource this particular service. We expect to earn revenues by charging a commission based
on the value of goods moved per order.
The Market
Visigoth will be concentrating on servicing just two types of clients, the gift shops of
Leavenworth, Washington, and the farmers of the Puget Consumers Co-op (PCC). For both
market segments, we have secured exclusive contracts or endorsements putting us in a unique
position to service these niche firms and their needs.
Profitability in these two markets is expected to be excellent, especially in the import section as
Leavenworth draws in over a million tourists each year. We expect profitability in the co-op end
to be much slower in the first five years of operation, but it too will increase steadily.
Financial Considerations
Start-up assets required include expenses and cash needed to support operations until
revenues reach an acceptable level. Most of the company's liabilities will come from outside
private investors and management investment, however, we have obtained current borrowing
from Bank of America Commercial Investments, the principal to be paid off in two years. A
long-term loan through Charter Bank of Nieurich will be paid off in ten years.
The company expects to reach profitability in year 2 and does not anticipate any serious cash
flow problems. We expect that about 3,500 units per month will guarantee a break-even point.

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Visigoth Imports, Inc.

Chart: Highlights

1.1 Mission
It is the mission of Visigoth Imports to provide complete import/export consultation and
brokerage services including purchase contracts, shipping, warehousing, and delivery. The
company will concentrate on special and cultural imports from Germany and Scandinavia to the
unique Bavarian town of Leavenworth, WA. Visigoth also plans to export apples and other
produce by newly started farms created under the Puget Consumers Co-op's Farmland Fund
initiative.
It is our long-term goal to become the preferred import company for the unique tourist town of
Leavenworth. Visigoth understands that the import shops and restaurants in Leavenworth have
special needs of most unique gifts for the million tourists that visit the town annually. Visigoth
Imports also understands that the newly launched farms of the PCC farmland fund initiative
also have higher costs than most competitors and will need to export their produce at a cost
that provides sufficient profit. Visigoth Imports has a combined 35 years of experience working
in the import/export business. Our philosophy is in creating a long-term relationship with clients
so that the delivery of their products becomes a seamless experience that promotes loyalty.
1.2 Keys to Success
Visigoth Imports' keys to long-term and profitability are as follows:

Differentiate our services to our niche clients so that they realize that we are better able to
serve their needs than a more generic competitor.
Keeping close contact with clients and establishing a well functioning long-term relationship
with them to generate repeat business and create a top notch reputation.

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Visigoth Imports, Inc.

Establish a comprehensive service experience for our clients that includes consultation,
product/client search, purchasing contracts, warehousing, shipping, delivery, and follow up
service analysis.

1.3 Objectives
The three year goals for Visigoth Imports are the following:

Achieve break-even by year 2.

Retain our long-term contracts with local import shops in Leavenworth, WA, through
excellent customer service.
Become the premier importer of German and Scandinavian specialty products in
Leavenworth, and become the prime exporter of apples and other produce for the farmers
of the PCC Farmland Fund initiative.

2.0 Company Summary

Visigoth Imports will be a limited liability partnership registered in the state of Delaware for tax
purposes. Its founder is Mr. Frank Curtiss, a former master distributor with Fisher-Mills. Mr.
Curtiss has brought together a highly respected group of individuals who are well versed in the
various aspects of foreign trade processes.
The company has a limited number of private investors and does not plan to go public. The
company has its main offices in Wenatchee, Washington. The facilities include conference
rooms and office spaces. The company expects to begin offering its services in June.
The company's main clients will be small import shops in the Leavenworth area and start-up
farms throughout the state. By focusing on small niche market entrepreneurs, we believe we
will be able to provide superior and more efficient service than other import/export firms.
2.1 Company Ownership
The company will have a number of outside private investors who will own 27% of the
company's shares. The rest will be owned by the senior management including Mr. Frank
Curtiss, (25%), Ms. Hannah Mills (20%), Mr. Steve Iltheus (20%), and Mr. Pierce Bolm (8%).
All other financing will come from loans.
2.2 Start-up Summary
Start-up assets required include expenses and cash needed to support operations until
revenues reach an acceptable level. Most of the company's liabilities will come from outside
private investors and management investment, however, we have obtained current borrowing
from Bank of America Commercial Investments, the principal to be paid off in two years. A
long-term loan through Charter Bank of Nieurich will be paid off in ten years.

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Visigoth Imports, Inc.

Table: Start-up

Start-up
Requirements
Start-up Expenses
Legal
Insurance
Utilities
Rent
Accounting and bookkeeping fees
Expensed equipment
Advertising
Other
Total Start-up Expenses

$2,000
$1,000
$200
$2,000
$2,000
$2,000
$4,000
$8,000
$21,200

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

$38,550
$15,000
$10,000
$63,550

Total Requirements

$84,750

Page 4

Visigoth Imports, Inc.

Table: Start-up Funding

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

$21,200
$63,550
$84,750

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

$25,000
$38,550
$0
$38,550
$63,550

Liabilities and Capital

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

$9,000
$12,000
$2,000
$8,000
$31,000

Capital
Planned Investment
Mr. Frank Curtiss
Ms. Hannah Mills
Mr. Steve Iltheus
Mr. Pierce Bolm
Others
Additional Investment Requirement
Total Planned Investment
Loss at Start-up (Start-up Expenses)
Total Capital

$15,000
$13,000
$13,000
$5,000
$7,750
$0
$53,750
($21,200)
$32,550

Total Capital and Liabilities

$63,550

Total Funding

$84,750

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Visigoth Imports, Inc.

Chart: Start-up

3.0 Services
Visigoth offers complete import/export brokerage services plus inventory consulting services.
As mentioned previously, this includes the following:

Supplier/buyer identification
Purchasing process contracting and consulting
Shipping setup
Warehousing arrangements
Delivery

It must be noted that Visigoth does not posess any warehousing facilities and intends to
outsource this particular service.This means that we will have virtually no variable costs
associated with unit sales.
Visigoth will be importing such things as steins, figurines, Christmas gifts, germanic foodstuffs,
cuckoo clocks, and nutcrackers from Germany, where Mr. Curtiss has had extensive experience.
In addition Visigoth will be importing Scandinavian wool products such as sweaters and other
gift items.
The company will be exporting produce, primarily apples, to Europe.
Our revenue model is based on a commission rate charged to our clients scaled on the dollar
value of goods moved per order.

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Visigoth Imports, Inc.

4.0 Market Analysis Summary

Visigoth will be concentrating on servicing just two types of clients, the gift shops of
Leavenworth, Washington, and the farmers of the Puget Consumers Co-op. For both market
segments, we have secured exclusive contracts or endorsements that put us in a unique
position to service these niche firms and their more demanding needs.
Profitability in these two markets is expected to be excellent, especially in the import segment
as Leavenworth draws in over a million tourists each year. We expect profitability in the co-op
end to be much slower in the first five years of operation, but will increase steadily.
4.1 Market Segmentation
Visigoth intends to be a small import/export company focused on clients serving a niche
market. Having secured a very advantageous contract with PCC and gained the endorsement of
the Leavenworth city council, we plan to focus exclusively on these market segments. Both
have such high potential that we do not see a need to expand our market reach for the
foreseeable future.

Chart: Market Analysis (Pie)

Table: Market Analysis

Market Analysis
Potential Customers
Leavenworth businesses
Pugent Consumer Co-op farms
Total

Year 1

Year 2

Year 3

Year 4

Year 5

34
72
106

34
76
110

34
80
114

34
84
118

34
88
122

Growth
1%
5%
3.58%

CAGR
0.00%
5.14%
3.58%

Page 7

Visigoth Imports, Inc.

4.2 Service Business Analysis

Imports
Leavenworth sits in one of the most beautiful areas of Washington State. The area was settled
in the 1860's, but it wasn't until the end of the century that the town began to blossom with the
arrival of the rail line. The Great Northern Railway Company's tracks through Leavenworth
brought with them opportunities for work, commerce and a new economy. However, when the
Great Northern Railway Company pulled out of Leavenworth, the town was converted from a
bustling, thriving hub of commerce into a hollow, empty community. For more than thirty
years, Leavenworth lived on the brink of extinction. But in the early 1960's, everything
changed.
In a last-chance effort to turn their precarious situation around, the leaders of the community
decided to change Leavenworth's appearance, hoping to bring tourism into the area. Using the
beautiful backdrop of the surrounding Alpine hills to their advantage, the town agreed to
remodel their hamlet in the form of a Bavarian village. The entire community rallied to create
the illusion of Bavaria in the middle of Washington state. Besides the complete renovation of
the downtown area, community members worked to begin a series of festivals. The Autumn
Leaf Festival, Maifest and the extremely popular Christmas Lighting Ceremony were the first of
many attractions Leavenworth offered to tourists. Since the change to a Bavarian motif,
Leavenworth has become a pillar of the tourism industry in the Pacific Northwest. Today, more
than a million tourists come to Leavenworth yearly, each visitor finding their own love affair
with the community.
The town brings in an average 24 million dollars in revenue each year, and since much of the
town's profits are based on the sale of alpine and Scandinavian gifts, the opportunity for a
company such as Visigoth is almost unmatched. In 2002 a town meeting of the principal shop
owners in Leavenworth was held concerning the present contracts with the community's main
importer, Deutsche Gifts. The previously good relations between the community and the import
firm had soured due to rising costs and unreliable service. The result of the meeting was to look
for another importer better able to meet the local needs once the current contract expired. Mr.
Frank Curtiss successfully bid for the contract, and the idea of Visigoth was born.
Exports
Visigoth has made arrangements to export produce from member farms established by the
Puget Consumers Co-op Farmland Fund. The Fund works to secure and preserve threatened
farmland in Washington State and move it into organic production. The Fund's primary focus is
on large, functional landscapes of local, regional and statewide importance so protection can be
extended to biodiversity and wildlife habitat as well as to farmers and farming communities.
The Fund is an independent, community-supported non-profit land trust founded in 1999. The
Fund has already rescued a half dozen farms within the state and plans to increase these
projects so that by 2007 there will be at least 36 farms that come under the fund's protection.
In addition, approximately 60 farms belonging to the Co-op have expressed interest in
contracting with Visigoth.
4.2.1 Competition and Buying Patterns
Competition
Competition includes all potential importing firms that serve small enterprises such as farms
and specialty gift shops. Practically speaking, this means the largest import/export firms such
as Fisher-Mills, Eagle Distributing, and other large, nationwide companies will not compete with
us. Most other companies tend to be regionally focused. The foreign trade industry is highly

Page 8

Visigoth Imports, Inc.

fragmented, with a large number of small companies that mainly cater to small firms and a few
large companies that seek the largest contracts from companies such as Microsoft, GM, etc.
This makes competition within the industry very intense. Through our niche strategy we intend
to avoid competition and its drawbacks such as price wars, etc.
Buying patterns and needs
Companies usually enter into contracts with import/export firms based on a firm's reputation
for professionalism and service. With no proven track record, a star-up import/export company
obtains a "good reputation" through its personnel, people who have experience in other
businesses in the industry. Price, reliability and scope are the driving factors for accepting
contracts, especially if the import/export company is small.
Our niche clients have different needs than most other firms. Our import clients need to have
relatively small numbers of expensive and fragile products moved from Europe to local
warehouses in Wenatchee and Leavenworth. Most of these items are handmade so handling is a
special issue. In addition, the small companies and shops in Leavenworth depend a great deal
on their import agents to alert them to new and unique product introductions overseas.
On the other end, the farms belonging to the PCC need to keep export costs as low as possible
since many of them are start-up ventures with initially high overhead. Quite a few trade firms
do not accept these types of contracts and leave it to the co-ops to create their own exporting
ventures. This can lead to higher costs as most co-ops do not have the core competencies in
import/export issues.
5.0 Strategy and Implementation Summary
Our firm's business strategy is to enter into a focused or niche market where it can offer a
higher standard of service to its specialized clients. This will allow us to charge a slightly
higher fees to our clients for these differentiated services.
5.1 Sales Strategy
Visigoth intends to develop sales by establishing close contact with potential clients. We will
begin by offering a free consultation in terms of overall cost, service, and delivery. In addition,
we intend to promote our management team's extensive experience both with German gift
manufacturers and artisans, and our knowledge of the produce trade environment to draw in
our target market segments.
5.1.1 Sales Forecast
Sales are based on the various contracts we anticipate acquiring in the two market segments.
Revenues consist of a commission rate charged to our clients based on the dollar amount of
goods moved and include projected average costs plus an undisclosed profit margin. Sales are
expected to vary somewhat month to month, but are only slightly cyclical on the import end.
The exports are expected to be highly cyclical. The company does not have any significant
direct costs of sales.

Page 9

Visigoth Imports, Inc.

Table: Sales Forecast

Sales Forecast
Year 1

Year 2

Year 3

$127,000
$33,000
$160,000

$145,000
$56,000
$201,000

$189,000
$77,000
$266,000

Year 1
$0
$0
$0

Year 2
$0
$0
$0

Year 3
$0
$0
$0

Sales
Leavenworth imports
PCC farm exports
Total Sales
Direct Cost of Sales
Leavenworth imports
PCC farm exports
Subtotal Direct Cost of Sales

Chart: Sales Monthly

Page 10

Visigoth Imports, Inc.

Chart: Sales by Year

5.2 Marketing Strategy

Visigoth intends to leverage its contacts with the Leavenworth city council and the Puget
Consumers Co-op in order to draw in new clients. The city council works very closely with local
businesses in facilitating all aspects of business management in order to keep tourism flowing.
Because of this, Visigoth has already signed contracts with nine Leavenworth businesses and
we expect to gain a dominant market share within the town.
The PCC will be recommending Visigoth Imports, Inc. to its new farmers as long as we can keep
shipping costs within accepted limits. Therefore we expect to have a large proportion of
member farmers use our services.
6.0 Management Summary
Company officers include our President, Mr. Frank Curtiss, our head of exports Ms. Hannah
Mills, and our head of imports, Mr. Steve Iltheus.
6.1 Personnel
Visigoth's management brings to the company strong capabilities in all aspects of trade
relations, logistics, contracting and selling.
Mr. Frank Curtiss is a former master distributor with Fisher-Mills, one of the nation's largest
import/export firms. During his 10 years with Fisher-Mills he worked exclusively on trade
contracts with Germany. In 1996 Mr. Curtiss accepted a position with Eagle Distributors as a
department head. By introducing American wines into eastern Europe and the former Soviet
republics he demonstrated his flair for opening new markets. Mr. Curtiss has an MBA in finance
and an BS in International Relations.

Page 11

Visigoth Imports, Inc.

Ms. Hannah Mills graduated with honors from the University of Oregon, having earned a
bachelors degree in marketing in 1988. From 1988-1994 Ms. Mills worked for Stanford
Distributors working with canning companies in the midwest region. In 1995 she went to work
for Anderson Consulting in their International Trade division. Four years later, Ms. Mills became
vice president of A.V. Imports.
Table: Personnel

Personnel Plan
Year 1

Year 2

Year 3

Mr. Frank Curtiss - President

Mrs. Hannah Mills
Mr. Steve Iltheus
Other
Total People

$36,000
$36,000
$24,000
$0
3

$36,000
$36,000
$36,000
$0
3

$45,000
$45,000
$36,000
$0
3

Total Payroll

$96,000

$108,000

$126,000

7.0 Financial Plan

Our financial plan anticipates one year of negative profits as we gain sales volume. We have
enough investment to cover these losses, and have an additional credit line available if sales do
not match predictions.
7.1 Important Assumptions
We are assuming approximately 50% sales on credit and average interest rates of 10%. These
are considered to be conservative in case our predictions are erroneous.
Since Visigoth is an import/export broker, the firm has no variable costs associated with it.
Table: General Assumptions

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

Year 1

Year 2

Year 3

1
10.00%
10.00%
30.00%
0

2
10.00%
10.00%
30.00%
0

3
10.00%
10.00%
30.00%
0

Page 12

Visigoth Imports, Inc.

7.2 Break-even Analysis

Our break-even analysis is based on the assumptions that our gross margin is 100%. In other
words, we will have insignificant direct cost of sales. Since each market segment is so
completely different, it is difficult to assign an average per unit revenue figure. However, it is
believed that during the first three years, average revenue per unit per month will be about
$4.00, due to the fact that, initially, we may be working with smaller companies projects. We
expect that about 3,500 units per month will guarantee break even.
Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even

$14,067

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

0%
$14,067

Chart: Break-even Analysis

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Visigoth Imports, Inc.

7.3 Projected Profit and Loss

The following table itemizes our revenues and associated costs. We expect to be paying higher
costs in marketing and advertising than other companies as we attempt to build sales volume.
We expect monthly profits to begin in April 2004 and yearly profits to occur in 2005.
Table: Profit and Loss

Pro Forma Profit and Loss

Year 1

Year 2

Year 3

Sales
Direct Cost of Sales
Other Costs of Sales
Total Cost of Sales

$160,000
$0
$0
$0

$201,000
$0
$0
$0

$266,000
$0
$0
$0

Gross Margin
Gross Margin %

$160,000
100.00%

$201,000
100.00%

$266,000
100.00%

$96,000
$8,400
$0
$12,000
$3,600
$3,000
$14,400
$24,200
$7,200

$108,000
$8,000
$0
$12,000
$3,600
$3,000
$16,200
$12,000
$8,000

$126,000
$8,000
$0
$13,000
$4,000
$3,000
$18,900
$10,000
$10,000

$168,800

$170,800

$192,900

($8,800)
($8,800)
$2,035
$0

$30,200
$30,200
$1,820
$8,514

$73,100
$73,100
$1,600
$21,450

($10,835)
-6.77%

$19,866
9.88%

$50,050
18.82%

Expenses
Payroll
Sales and Marketing and Other Expenses
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Travel
Other
Total Operating Expenses
Profit Before Interest and Taxes
EBITDA
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales

Page 14

Visigoth Imports, Inc.

Chart: Profit Monthly

Chart: Profit Yearly

Page 15

Visigoth Imports, Inc.

Chart: Gross Margin Monthly

Chart: Gross Margin Yearly

Page 16

Visigoth Imports, Inc.

7.4 Projected Cash Flow

The following is our cash flow table and chart. We do not expect to have any short-term cash
flow problems even though we will be operating at a loss for the first year. Our short-term loan
will be repaid in three equal payments in 2004-2006. Our long-term loan will be paid off in ten
years.
Table: Cash Flow

Pro Forma Cash Flow

Year 1

Year 2

Year 3

$80,000
$62,767
$142,767

$100,500
$96,084
$196,584

$133,000
$125,999
$258,999

$0
$0
$0
$0
$0
$0
$0
$142,767

$0
$0
$0
$0
$0
$0
$0
$196,584

$0
$0
$0
$0
$0
$0
$0
$258,999

Year 1

Year 2

Year 3

$96,000
$70,247
$166,247

$108,000
$73,711
$181,711

$126,000
$88,568
$214,568

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
$1,200
$0
$0
$4,000
$171,447

$0
$2,000
$1,000
$1,200
$0
$0
$10,000
$195,911

$0
$0
$1,000
$1,200
$0
$0
$42,000
$258,768

Net Cash Flow

Cash Balance

($28,680)
$9,869

$673
$10,543

$231
$10,774

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
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent

Page 17

Visigoth Imports, Inc.

Chart: Cash

Page 18

Visigoth Imports, Inc.

7.5 Projected Balance Sheet

The following table is the Project Balance Sheet for Visigoth Imports.
Table: Balance Sheet

Pro Forma Balance Sheet

Year 1

Year 2

Year 3

$9,869
$17,233
$15,000
$42,103

$10,543
$21,649
$15,000
$47,192

$10,774
$28,650
$15,000
$54,424

$10,000
$0
$10,000
$52,103

$10,000
$0
$10,000
$57,192

$10,000
$0
$10,000
$64,424

Year 1

Year 2

Year 3

Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$6,588
$9,000
$8,000
$23,588

$6,011
$7,000
$7,000
$20,011

$7,393
$7,000
$6,000
$20,393

Long-term Liabilities
Total Liabilities

$10,800
$34,388

$9,600
$29,611

$8,400
$28,793

$53,750
($25,200)
($10,835)
$17,715
$52,103

$53,750
($46,035)
$19,866
$27,581
$57,192

$53,750
($68,169)
$50,050
$35,631
$64,424

$17,715

$27,581

$35,631

Assets
Current Assets
Cash
Accounts Receivable
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

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

7.6 Business Ratios

We have included industry standard ratios from the trade consultant industry for comparison.
Our NAICS industry class is currently Miscellaneous Nondurable Goods Merchant Wholesale 424990. Our projections indicate a healthy company that will be able to obtain and retain longterm profitability.

Page 19

Visigoth Imports, Inc.

Table: Ratios

Ratio Analysis
Year 1

Year 2

Year 3

Industry Profile

n.a.

25.63%

32.34%

6.98%

Accounts Receivable
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets

33.08%
28.79%
80.81%
19.19%
100.00%

37.85%
26.23%
82.52%
17.48%
100.00%

44.47%
23.28%
84.48%
15.52%
100.00%

26.80%
43.95%
75.76%
24.24%
100.00%

Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth

45.27%
20.73%
66.00%
34.00%

34.99%
16.79%
51.77%
48.23%

31.65%
13.04%
44.69%
55.31%

31.78%
17.26%
49.04%
50.96%

100.00%
100.00%
106.77%
0.00%
-5.50%

100.00%
100.00%
90.12%
0.00%
15.02%

100.00%
100.00%
81.18%
0.00%
27.48%

100.00%
100.00%
85.31%
1.02%
1.90%

1.78
1.78
66.00%
-61.16%
-20.80%

2.36
2.36
51.77%
102.90%
49.62%

2.67
2.67
44.69%
200.67%
110.98%

1.88
1.48
3.41%
55.78%
7.72%

Additional Ratios

Year 1

Year 2

Year 3

Net Profit Margin

Return on Equity

-6.77%
-61.16%

9.88%
72.03%

18.82%
140.47%

n.a
n.a

4.64
56
11.36
28
3.07

4.64
71
12.17
31
3.51

4.64
69
12.17
27
4.13

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

1.94
0.69

1.07
0.68

0.81
0.71

n.a
n.a

$18,515
-4.32

$27,181
16.59

$34,031
45.69

n.a
n.a

0.33
45%
1.05
9.03
0.00

0.28
35%
1.28
7.29
0.50

0.24
32%
1.26
7.47
0.84

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

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

Activity Ratios
Accounts Receivable Turnover
Collection Days
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
Dividend Payout

Page 20

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

$11,000
$0
$11,000

$13,000
$0
$13,000

$13,000
$0
$13,000

$12,000
$0
$12,000

$10,000
$0
$10,000

$8,000
$2,000
$10,000

$12,000
$4,000
$16,000

$9,000
$4,000
$13,000

$8,000
$5,000
$13,000

$9,000
$5,000
$14,000

$10,000
$6,000
$16,000

$12,000
$7,000
$19,000

Sales
Leavenworth imports
PCC farm exports
Total Sales
Direct Cost of Sales

0%
0%

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Leavenworth imports

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

PCC farm exports

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Subtotal Direct Cost of Sales

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Page 1

Appendix
Table: Personnel

Personnel Plan
Mr. Frank Curtiss - President
Mrs. Hannah Mills
Mr. Steve Iltheus
Other
Total People
Total Payroll

0%
0%
0%
0%
0%

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$3,000
$3,000
$2,000
$0
3

$3,000
$3,000
$2,000
$0
3

$3,000
$3,000
$2,000
$0
3

$3,000
$3,000
$2,000
$0
3

$3,000
$3,000
$2,000
$0
3

$3,000
$3,000
$2,000
$0
3

$3,000
$3,000
$2,000
$0
3

$3,000
$3,000
$2,000
$0
3

$3,000
$3,000
$2,000
$0
3

$3,000
$3,000
$2,000
$0
3

$3,000
$3,000
$2,000
$0
3

$3,000
$3,000
$2,000
$0
3

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

Page 2

Appendix
Table: General Assumptions

General Assumptions
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

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%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

Plan Month

Other

Month 12

Page 3

Appendix
Table: Profit and Loss

Pro Forma Profit and Loss

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$11,000

$13,000

$13,000

$12,000

$10,000

$10,000

$16,000

$13,000

$13,000

$14,000

$16,000

$19,000

Direct Cost of Sales

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Other Costs of Sales

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Cost of Sales

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales

Gross Margin

$11,000

$13,000

$13,000

$12,000

$10,000

$10,000

$16,000

$13,000

$13,000

$14,000

$16,000

$19,000

Gross Margin %

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

Payroll

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

Sales and Marketing and Other

Expenses
Depreciation

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$500

$500

$500

$300

$300

$300

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Rent

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

Utilities

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

Insurance

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$1,200
$1,200
$600

$1,200
$3,000
$600

$1,200
$1,000
$600

$1,200
$2,000
$600

$1,200
$2,000
$600

$1,200
$3,000
$600

$1,200
$2,000
$600

$1,200
$1,000
$600

$1,200
$2,000
$600

$1,200
$3,000
$600

$1,200
$1,000
$600

$1,200
$3,000
$600

Total Operating Expenses

$13,550

$15,350

$13,350

$14,350

$14,350

$15,350

$13,850

$12,850

$13,850

$14,650

$12,650

$14,650

Profit Before Interest and Taxes

($2,550)

($2,350)

($350)

($2,350)

($4,350)

($5,350)

$2,150

$150

($850)

($650)

$3,350

$4,350

EBITDA

($2,550)

($2,350)

($350)

($2,350)

($4,350)

($5,350)

$2,150

$150

($850)

($650)

$3,350

$4,350

$174

$173

$173

$172

$171

$170

$169

$168

$168

$167

$166

$165

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Net Profit

($2,724)

($2,523)

($523)

($2,522)

($4,521)

($5,520)

$1,981

($18)

($1,018)

($817)

$3,184

$4,185

Net Profit/Sales

-24.77%

-19.41%

-4.02%

-21.01%

-45.21%

-55.20%

12.38%

-0.14%

-7.83%

-5.83%

19.90%

22.03%

Expenses

Payroll Taxes
Travel
Other

Interest Expense
Taxes Incurred

15%
15%

Page 4

Appendix
Table: Cash Flow

Pro Forma Cash Flow

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$5,500

$6,500

$6,500

$6,000

$5,000

$5,000

$8,000

$6,500

$6,500

$7,000

$8,000

$9,500

$0

$183

$5,533

$6,500

$6,483

$5,967

$5,000

$5,100

$7,950

$6,500

$6,517

$7,033

$5,500

$6,683

$12,033

$12,500

$11,483

$10,967

$13,000

$11,600

$14,450

$13,500

$14,517

$16,533

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$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

$5,500

$6,683

$12,033

$12,500

$11,483

$10,967

$13,000

$11,600

$14,450

$13,500

$14,517

$16,533

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Cash Spending

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

Bill Payments

$2,191

$5,784

$7,457

$5,556

$6,522

$6,554

$7,470

$5,986

$5,052

$6,044

$6,750

$4,882

$10,191

$13,784

$15,457

$13,556

$14,522

$14,554

$15,470

$13,986

$13,052

$14,044

$14,750

$12,882

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

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

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

$4,000

$0

$0

$0

$0

Subtotal Cash Spent

$10,291

$13,884

$15,557

$13,656

$14,622

$14,654

$15,570

$18,086

$13,152

$14,144

$14,850

$12,982

Net Cash Flow

($4,791)

($7,201)

($3,523)

($1,156)

($3,138)

($3,687)

($2,570)

($6,486)

$1,298

($644)

($333)

$3,551

Cash Balance

$33,759

$26,558

$23,035

$21,879

$18,741

$15,053

$12,484

$5,998

$7,296

$6,652

$6,319

$9,869

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

Subtotal Cash Received

Expenditures

0.00%

Expenditures from Operations

Subtotal Spent on Operations

Additional Cash Spent

Long-term Liabilities Principal Repayment

Page 5

Appendix
Table: Balance Sheet

Pro Forma Balance Sheet

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

$38,550
$0
$15,000
$53,550

$33,759
$5,500
$15,000
$54,259

$26,558
$11,817
$15,000
$53,375

$23,035
$12,783
$15,000
$50,818

$21,879
$12,283
$15,000
$49,163

$18,741
$10,800
$15,000
$44,541

$15,053
$9,833
$15,000
$39,887

$12,484
$12,833
$15,000
$40,317

$5,998
$14,233
$15,000
$35,231

$7,296
$12,783
$15,000
$35,079

$6,652
$13,283
$15,000
$34,935

$6,319
$14,767
$15,000
$36,085

$9,869
$17,233
$15,000
$42,103

$10,000
$0
$10,000
$63,550

$10,000
$0
$10,000
$64,259

$10,000
$0
$10,000
$63,375

$10,000
$0
$10,000
$60,818

$10,000
$0
$10,000
$59,163

$10,000
$0
$10,000
$54,541

$10,000
$0
$10,000
$49,887

$10,000
$0
$10,000
$50,317

$10,000
$0
$10,000
$45,231

$10,000
$0
$10,000
$45,079

$10,000
$0
$10,000
$44,935

$10,000
$0
$10,000
$46,085

$10,000
$0
$10,000
$52,103

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
Accounts Receivable
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

$2,000
$9,000
$8,000
$19,000

$5,533
$9,000
$8,000
$22,533

$7,273
$9,000
$8,000
$24,273

$5,338
$9,000
$8,000
$22,338

$6,304
$9,000
$8,000
$23,304

$6,303
$9,000
$8,000
$23,303

$7,269
$9,000
$8,000
$24,269

$5,819
$9,000
$8,000
$22,819

$4,851
$9,000
$8,000
$21,851

$5,817
$9,000
$8,000
$22,817

$6,589
$9,000
$8,000
$23,589

$4,655
$9,000
$8,000
$21,655

$6,588
$9,000
$8,000
$23,588

Long-term Liabilities
Total Liabilities

$12,000
$31,000

$11,900
$34,433

$11,800
$36,073

$11,700
$34,038

$11,600
$34,904

$11,500
$34,803

$11,400
$35,669

$11,300
$34,119

$11,200
$33,051

$11,100
$33,917

$11,000
$34,589

$10,900
$32,555

$10,800
$34,388

$53,750
($21,200)
$0
$32,550
$63,550

$53,750
($21,200)
($2,724)
$29,826
$64,259

$53,750
($21,200)
($5,248)
$27,303
$63,375

$53,750
($21,200)
($5,770)
$26,780
$60,818

$53,750
($21,200)
($8,292)
$24,258
$59,163

$53,750
($21,200)
($12,813)
$19,738
$54,541

$53,750
($21,200)
($18,333)
$14,218
$49,887

$53,750
($21,200)
($16,352)
$16,198
$50,317

$53,750
($25,200)
($16,370)
$12,180
$45,231

$53,750
($25,200)
($17,388)
$11,163
$45,079

$53,750
($25,200)
($18,204)
$10,346
$44,935

$53,750
($25,200)
($15,020)
$13,530
$46,085

$53,750
($25,200)
($10,835)
$17,715
$52,103

$32,550

$29,826

$27,303

$26,780

$24,258

$19,737

$14,217

$16,198

$12,180

$11,162

$10,346

$13,530

$17,715

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

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