Garrett's Bike Shop

CONFIDENTIAL

GARRETT'S BIKE SHOP TOP-QUALITY GEAR, REPAIR, AND ADVICE FROM YOUR LOCAL CYCLING FANATICS

BUSINESS PLAN Prepared January 2016

CONTACT INFORMATION Garrett McKenzie [email protected] www.universitycycleworks.com

488 East 11th Avenue, Suite 220 Eugene, OR 97401, USA (555) 555-5555

GARRETT'S BIKE SHOP - XERO

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Executive Summary Products we sell Bicycles. We sell new bicycles, predominantly in the mountain bike style, retro-cruiser is a close second, and sport/touring/racing road bikes a distant third. We also sell some used bikes which we take in on trade as a service to our customers who are buying new bikes. Accessories. We offer a wide variety of accessories. Locks, computer speedometers, fenders, cargo racks, comfortable seats, headlights, helmets, water bottles, panniers/back packs/messenger bags, child seats and trailers, bike storage racks, and auto roof rack systems all fall in this category. Clothing. We rotate our clothing based on the season. For example, in Autumn, we stock jackets and GoreTex. In Winter, we offer helmet covers and liners, insulated jerseys and pants, gloves, and shoe covers. In the Spring, we start displaying summer jerseys, and racing shorts Parts. Parts generally refers to pieces or materials necessary to the basic functioning of the bicycle. Generally, parts are installed during service and are an additional charge beyond the service fees.

Who We Are University Cycle Works is an established bicycle specialty store, offering retail sales of new bicycles, parts and accessories, clothing, and maintenance and repair service. It is located in a heavily trafficked, university-focused area. University Cycle Works is a subchapter S corporation, and is currently owned by Han Delbar. Hubert Wheeler, current assistant manager of University Cycle Works, is purchasing University Cycle Works from Delbar, acquiring existing inventory, and assuming outstanding accounts payable and dating program debts to suppliers, location lease, customer base and information, and University Cycle Works' business name and goodwill. The business will continue to be a subchapter S corporation. Exchange of ownership will occur on July 1, of this year. Wheeler has been the assistant manager of University Cycle Works for five years, with an additional seven years of bicycle industry retail sales and service experience. He first began investigating the ownership of a bike business two years ago, however, the local Metroburg market seemed saturated with shops. Realizing that a more practical option would be to buy an existing shop, he approached his current boss. The result of two years of negotiations will be the sale of University Cycle Works to Wheeler, taking

CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.


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effect July 1st. The goal will be a seamless transfer of ownership, with staff, bike lines, location, and operations unchanged.

Who We Sell To The primary market for University Cycle Works is the university student population, which normally has a turnover/growth of approximately 25% each year. The secondary market is the university faculty and staff, and the tertiary market is the greater Metroburg community.

Financial Summary This financial plan was developed based upon previous years' data for the existing store, tracking trends in revenues and expenses. A five-month track of sales, accounts receivables and payables, and inventory from a year-end benchmark was made. The current owner, Han Delbar, has sold the business to Hubert Wheeler for $140,000. The seller, buyer, and the accountant worked together on the plan to balance optimism with reality. An attorney was consulted on specifics of the sale contract. Sales for the first year of new ownership are projected above $500,000, with a gross margin of almost 65%. Profitability is expected at the mid-way point of the fiscal year, in March.

Building Priorities



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Company Overview Company Overview University Cycle Works is a subchapter S corporation, and is currently owned by Han Delbar. Hubert Wheeler, current assistant manager of University Cycle Works, is purchasing University Cycle Works from Delbar, acquiring existing inventory, and assuming outstanding accounts payable and dating program debts to suppliers, location lease, customer base and information, and University Cycle Works' business name and goodwill. The business will continue to be a subchapter S corporation. Exchange of ownership will occur on July 1st. To establish an accurate accounting of existing inventory and outstanding debts, the prior year's closing inventory and year end financial statement as reviewed by the business' CPA were used as benchmarks. The sales, orders placed, deliveries received, and accounts payable payments made have been tracked each month, and a trial balance of these will be run June 15 to establish the final purchase price for inventory on hand, and the amount of Accounts Payable assumed. The figures presented here are conservative, realistic estimates used for planning purposes.

Management Team The current assistant manager, Hubert Wheeler, is buying University Cycle Works, and will manage the business. He has a B.S. degree in Economics and an M.A. in Comparative Literature. His passion however has always been cycling. He originally worked at his local bike shop when he was in college. After several years trying to find suitable work in his degree field, he gave up chasing the chimera of these fields and decided to work with something substantial, and returned to his youthful enjoyment of bicycles. He attended two of the major bicycle mechanic training programs, at New England Bicycle Academy and the United Bicycle Institute. These courses covered mechanical service and maintenance, frame building and repair, wheel building, and shop organization, sales, and management. He has 12 years of progressively responsible experience in bicycle shops with the last five at University Cycle Works. One of the other full-time employees, Valerie Pede has expressed interest in learning more about the bike industry and she will be promoted to be the new assistant manager. Val has been with us for three years. She graduated from State University at Metroburg with tandem B.S. degrees in Exercise Physiology and Recreation Management. She loves to cycle, and has kept her contacts at the university active. Her knowledge and expertise draws many women bicyclists to our store where they know they will get the care and attention which is usually missing from traditionally male staffed shops.



The current owner, Han Delbar will be available as a resource. Additional resources are: •

Order Out of Chaos, our full-cycle bookkeeping service.

•

Continental Shelf Bank.

•

Newt Ria, a partner at Weasel, Stoat, Muskrat who advised on the sale/purchase arrangements.

Mission Statement Company History


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Products and Services Products and Services Retail Sales 1.

Bicycles. We sell new bicycles, predominantly in the mountain bike style, retro-cruiser is a close second, and sport/touring/racing road bikes a distant third. We also sell some used bikes which we take in on trade as a service to our customers who are buying new bikes.

2.

Accessories. We offer a wide variety of accessories. Locks, computer speedometers, fenders, cargo racks, comfortable seats, headlights, helmets, water bottles, panniers/back packs/messenger bags, child seats and trailers, bike storage racks, and auto roof rack systems all fall in this category. It is not possible to carry every possible accessory, so we try to carefully chose those which will be most useful or desired by our target markets. When we receive special requests for a new item, we'll often order several to test the local demand, and if adequate, will add it to our regular stock.

3.

Clothing. Clothing appeals to all cyclists, whether it is a logo emblazoned T-shirt or a piece of waterproof rainwear. At University Cycle Works, we rotate our clothing based on the season. Just before the autumn rains we stock jackets and Gore-Tex. Come winter we offer helmet covers and liners, insulated jerseys and pants, gloves, and shoe covers. And when spring arrives and the first crocus appears through the melting snow, we start displaying summer jerseys, and racing shorts.

4.

Parts. Parts generally refers to pieces or materials necessary to the basic functioning of the bicycle. Generally, parts are installed during service [see below] and are an additional charge beyond the service fees. Some, like cranksets, pedals, tires, derailleurs or brakes, are both integral parts and upgrade accessories. Others, such as headsets, bottom brackets, spokes, chains, cables, and cable housings are strictly maintenance, though some will be sold to cyclists who prefer to work on their bikes themselves.

Service University Cycle Works is a full-service specialized bicycle shop. Our service offering includes, but is not limited to: •

Free 30-day/100-mile tune up with every new bike sold.

•

Quick repairs for flat tires, broken chains, brake cables, etc.



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•

Scheduled tune-ups, replacement of all bearing surfaces, repacking of lubricants, and adjustments of derailleurs and brake systems.

•

Installation of all accessories.

•

Authorized warranty repairs on the bikes.

•

Custom wheel building.

•

Frameset repairs by outsourcing to Via Porco custom frame builders.

Competitors Market Problem: No full-service bike shop focused on servicing the university market. Setting aside the discount department stores, University Cycle Works has the following direct competitors. •

One local multi-sport store at the local megamall

•

One statewide chain of bicycle shops which started out as Schwinn-only shops, but has had to take on other brands and products.

•

One used bike store that has made a fine business reputation for itself, dealing strictly in used bikes.

•

Three local, including the oldest shop in town.

•

One local multi-location chain, that has specialized in opening shops in small local malls in areas of new housing development.

•

Several garage mechanics offering service only.

None of these competitors is within two miles of the university, and so, for the present, we have first access to our chosen market segments. One of the local shops has chosen to target the burgeoning young road racer segment, another is focusing on recumbents and folding travel cycles. The two strongest competitors are the Oldest Shop in Town which carries the cache of being the most stable, and most well known -- a Metroburg institution. The Mountain Bike Specialist targets the same athletic, young, performance and image conscious rider that we target in the university student population. These cyclists are particular about their bike and will go where the name brand they want is sold, or will try every bike and then buy the one that fits best, regardless of store loyalty.



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Products and Services Market Needs Our market niche has several needs which we strive to meet: •

Quality bikes at several price points.

•

Various styles and sizes of bikes, leaning heavily toward the styles most popular with the student population.

•

Range of accessories most practical in the local setting, such as locks, fenders, lights, tires, seats, rainwear, etc.

•

Plenty of replacement components and service parts.

•

Friendly personal relationships between cyclists and shop staff.

•

Prompt and convenient service from on-the-spot flat tire fix, to drop in repairs, to scheduled major maintenance, where the rider can drop their bike off, head to class or work, and be assured that their bike will be ready for the ride home.

Market Overview The predominant market segment for University Cycle Works is the university student population. We also cater to the university staff, local business employees, and, along with every other bicycle shop in town, the greater Metroburg population. In part the local market is driven by the lack of parking. Bicycle transportation is more economical, as well as time and space efficient in the university neighborhood. Part of the market is price constrained and another part is hooked on the latest fad, be it frame style, number of gears, or portrayed image. As long as new students arrive each year, our market segment growth is assured.

Key Customers The university students are our main target market. 1.

They are mostly undergraduates, so there is a 25% annual turnover.



2.

The lack of parking in the university area and the general ease of bike mobility throughout Metroburg motivates them to use bicycles as inexpensive transport. Athletic pursuits draw them, and the nearby areas for use of mountain and trail bikes provides a great place to ride.

3.

There is a new enthusiasm for retro Cruiser bikes, and higher tech cruiser-style bikes with multiple gears, good brakes, etc. among the college age population.

4.

Also, main market for racks, locks, throughout, pannier/bags, fenders, rainwear, etc.

5.

They want convenience for sales and service.

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University employees are another prime market segment. 1.

Small growth and turnover, but on the whole, the group is pretty stable.

2.

Are willing to commute by bicycle to work.

3.

They want a stable, comfortable bike and a full range of accessories.

4.

When their bikes need service and maintenance, local drop off/pickup convenience is important.

5.

They have families who ride bicycles also, and will patronize a shop that gives personal service.

Greater Metroburg population. This segment has a choice of going to any bike shop in the area, and will probably choose a shop located closer to their home. They are not the main target market segment of University Cycle Works, and we market to them casually, only as a collateral effect to our university-oriented efforts.

Market Trends Trends in the bicycle industry usually last for a time. Some of them have been: •

1960s - Big rush on 10 speeds.

•

1970s - Touring bikes became popular.

•

1980s and 1990s - Huge growth of mountain bikes

•

1990s - The rumored but exaggerated death of "road bikes" and the unfulfilled prophesy of a boom in the tandem market.

•

2000s - Popularity of retro 'cruisers.'



Market Growth The bulk of University Cycle Works' market growth is the regular matriculation of students from the State University in Metroburg. While the overall market numbers change in small increments, usually less than 10%, the market has a turnover of 22-26% yearly. In a longer time frame the number of students and the number of university employees grows and shrinks with economic changes, and with population demographics. For the next three years we foresee a steady growth in the overall university population as well as continued growth of Metroburg as a desirable place to live.


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Financial Plan Revenue Forecast Revenue by Month


10

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Revenue Forecast Table FY2014

FY2015

FY2016

New Bikes

$232,000

$250,000

$275,000

Accessories and Parts

$143,000

$172,500

$198,375

$68,000

$78,200

$89,930

$1,200

$1,380

$1,587

$36,000

$36,000

$36,000

$480,200

$538,080

$600,892

$71,500

$86,250

$99,188

$157,760

$170,000

$187,000

$23,800

$27,370

$31,476

Total Direct Cost

$253,060

$283,620

$317,664

Gross Margin

$227,140

$254,460

$283,228

47%

47%

47%

Revenue

Clothing University Patrol Service Contract Repair and Service Total Revenue Direct Cost Accessories and Parts New Bikes Clothing University Patrol Service Contract Repair and Service

Gross Margin %

About the Revenue Forecast Sales vary season to season and with the academic school year. Surprisingly, summer is the slowest season because there are fewer students in town. Business picks up in August with the return of the students and staff, and flourishes in September. Accessories and rainwear sales increase in the autumn and early winter. Repairs and maintenance are steady. Holiday sales are brisk, though generally leaning again to accessories, parts, rainwear, gloves, helmets, headlights, etc. Winter sales are moderate, and then pick up in springtime as people put away their skies and look forward to local outdoor activities, longer daylight hours, and drier weather. We have three large sales promotions each year. 1.

Back to school in August/September. This is our biggest sale of the year. New bicycles, locks, helmets, racks, fenders, backpacks. We always search for a special purchase of good quality, but value priced bikes for this sale such as year end models, slow sellers, new line looks to break into the market. These bikes will almost always sell out to students seeking great values.


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2.

Year-end holidays. This also overlaps the beginning of Winter term. The retail market demands some participation in this annual buying frenzy, yet, this sale produces lower revenue than our other two events. We sell fewer bikes, and more accessories and clothing.

3.

Spring. This coincides with both the return of nice weather, and beginning of Spring term. We feature new bicycles, and repair/maintenance/tune-up specials. It is important to us to have a good selection on hand at this time. When people decide they want that new bike, they want it now. If we don't have the bike then, and make the sale immediately, many riders will decide that they really can get another season out of their old bike, and will spend their discretionary income on some other purchase.

Additionally, we have some special buys available for June graduation. We get some small monthly revenue from these sources: •

Sale of used bicycles taken in on trade.

•

Repair classes taught at the University Outdoor Center, once a term.

•

Monthly service contract for repairs and parts with the University Security Office.

Personnel Plan Personnel Table FY2014

FY2015

FY2016

Valerie Pede

$32,000

$32,000

$32,000

Dee Ray

$23,400

$24,570

$25,799

Jean-Baptiste Kape

$19,800

$20,790

$21,830

$3,000

$12,000

$12,000

$78,200

$89,360

$91,629

Grocery Man Total

About the Personnel Plan The staff will consist of Hubert Wheeler, the new owner, Valerie Pede, and two other full-time employees Dee Ray, and Jean-Baptiste Kape.


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To meet the need for additional help during the year, University Cycle Works hires two to four part-time employees from the university population. We look for people who are enthusiastic about cycling, and who have a mechanical aptitude. Some of these folks have worked for us throughout their entire college sojourn. Their hours vary depending on the store's needs and their class schedules.

Budget Budget Table FY2014

FY2015

FY2016

Salary

$78,200

$89,360

$91,629

Employee Related Expenses

$19,550

$22,340

$22,907

Insurance

$9,604

$10,762

$12,018

Leased Equipment

$1,800

$1,800

$1,800

$54,000

$54,000

$54,000

$3,600

$3,600

$3,600

$18,000

$18,000

$18,000

$184,754

$199,862

$203,954

Operating Expenses

Advertising

Rent Utilities Rent Office Expense Total Operating Expenses



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Expenses by Month

About the Budget Our salary totals, employee benefits and monthly expense projections are included in the Budget. A rent deposit was made to the landlord as a security during the transfer of the business to the new owner, in order to keep the current lease agreement. If, at the end of the first year, the business is still solvent, the deposit will be applied to the twelfth month's rent. Startup Costs Our estimated starting expenses total $13,300. They include, legal and accounting costs to transfer ownership of the business, stationery, etc., promotional materials, insurance, and the down payment toward the purchase of the business.


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Loans and Investments Loans and Investments Table FY2014 Loan Loan at 7% interest for 60 mos. Loan Loan at 7% interest for 60 mos. Total Amount Received

FY2015

FY2016

$50,000 $90,000 $90,000

$50,000

Sources of Funds The current owner, Han Delbar, has sold the business to Hubert Wheeler for $140,000. The value of the existing company, its reputation, assumption of the business name, existing client base, etc. is recognized as part of the purchase. It appears as a start-up expense in the following table as Down Payment. The balance appears as a long-term liability. Wheeler is investing some of his own money, partially a home equity loan, in the company. An additional amount is being invested, as short-term interest free loans, by family members. This plan calls for these loans to be repaid in the first year.


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Cash Flow Assumptions Cash Flow Assumptions

Cash Inflow % of Sales on Credit

51%

Avg Collection Period (Days)

15

Cash Outflow % of Purchases on Credit

50%

Avg Payment Delay (Days)

30

Inventory Months to Keep on Hand Minimum Inventory Purchase

3 $5,000

About the Cash Flow Assumptions We have accounts payable set at 45 days. We also keep approximately one month's worth of inventory on hand, with a minimum purchase of $1,000, on average. We had a starting inventory balance for this plan at $17,000 from the previous owner, which carried forward with the business transfer. We do not sell on credit.


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Financial Statements Profit and Loss Statement Profit and Loss Statement FY2014

FY2015

FY2016

Revenue

$480,200

$538,080

$600,892

Direct Costs

$253,060

$283,620

$317,664

Gross Margin

$227,140

$254,460

$283,228

47%

47%

47%

Salary

$78,200

$89,360

$91,629


$19,550

$22,340

$22,907

Insurance

$9,604

$10,762

$12,018

Leased Equipment

$1,800

$1,800

$1,800

$54,000

$54,000

$54,000

$3,600

$3,600

$3,600

$18,000

$18,000

$18,000

$184,754

$199,862

$203,954

$42,386

$54,598

$79,274

$5,364

$6,994

$6,391

$13,814

$15,472

$15,471

$3,481

$4,819

$8,610

$460,473

$510,767

$552,090

$19,727

$27,313

$48,802

4%

5%

8%

Gross Margin % Operating Expenses

Advertising

Rent Utilities Rent Office Expense Total Operating Expenses Operating Income Interest Incurred Depreciation and Amortization Income Taxes Total Expenses Net Profit Net Profit / Sales



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Gross Margin by Year

Net Profit (or Loss) by Year

About the Profit and Loss Statement In negotiating the smooth transition in ownership, the landlord agreed to continue the current lease unchanged. As surety, one month's rent was required as a deposit at the time of sale. This is shown in the



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starting expenses. Further, the landlord agreed that if, after 11 months operation the new company was solvent and current in lease payments, that the deposit could be applied to the twelfth month's rent. The mid-summer months of July and August are slow months when a large part of the university population is gone on summer break. The mid-winter months are traditionally loss months. The weather is the most inclement and discretionary income is at its lowest after the holiday binges. However, we try to keep our entire staff on board to work on our own inventory, store refurbishing, and staff training.


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Balance Sheet Balance Sheet As of Period's End

Starting Balances

FY2014

FY2015

FY2016

$0

$23,963

$88,222

$128,585

$11,838

$11,850

$13,220

$17,000

$70,905

$79,416

$79,419

Total Current Assets

$17,000

$106,706

$179,488

$221,224

Long-Term Assets

$61,500

$77,700

$77,700

$77,700

($13,814)

($29,286)

($44,757)

Cash Accounts Receivable Inventory Other Current Assets

Accumulated Depreciation Total Long-Term Assets

$61,500

$63,886

$48,414

$32,943

Total Assets

$78,500

$170,592

$227,902

$254,167

Accounts Payable

$27,800

$15,486

$16,901

$16,952

Income Taxes Payable

$3,481

$4,819

$8,610

Sales Taxes Payable

$5,440

$5,000

$5,500

$16,609

$26,873

$28,817

$41,016

$53,593

$59,879

$59,153

$76,579

$47,762

Short-Term Debt Prepaid Revenue Total Current Liabilities

$27,800

Long-Term Debt Total Liabilities

$27,800

$100,169

$130,172

$107,641

Paid-in Capital

$25,000

$25,000

$25,000

$25,000

Retained Earnings

$25,700

$25,700

$45,423

$72,730

$19,723

$27,307

$48,796

Earnings Total Owner's Equity

$50,700

$70,423

$97,730

$146,526

Total Liabilities & Equity

$78,500

$170,592

$227,902

$254,167


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About the Balance Sheet Our goal is to repay the loans from our family within the first year, and we project paying Han Delbar his entire purchase price within five years. Other balance sheet information is shown in the table.

Cash Flow Statement Cash Flow Statement FY2014

FY2015

FY2016

Net Profit

$19,727

$27,313

$48,802

Depreciation and Amortization

$13,814

$15,472

$15,471

Change in Accounts Receivable

($11,840)

($11)

($1,368)

Change in Inventory

($53,905)

($8,511)

($3)

Change in Accounts Payable

($12,319)

$1,411

$51

Change in Income Tax Payable

$3,481

$1,338

$3,791

Change in Sales Tax Payable

$5,440

($440)

$500

($35,602)

$36,572

$67,244

Net Cash Flow from Operations

Change in Prepaid Revenue Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold

($16,200)

Investments Received Change in Long-Term Debt

$59,153

$17,426

($28,817)

Change in Short-Term Debt

$16,609

$10,264

$1,944

$59,562

$27,690

($26,873)

$3

$23,960

$88,214

Net Change in Cash

$23,960

$64,262

$40,371

Cash at End of Period

$23,963

$88,222

$128,585

Dividends & Distributions Net Cash Flow from Investing & Financing Cash at Beginning of Period



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Cash Flow by Month

Cash Flow by Year

About the Cash Flow Statement The cash flow reflects the seasonality of bicycle sales and the varying payment programs. At times, the business is inventory heavy, stocking up for the beginning of school rush, or specific sales. At other times,


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there is negative cash flow as long-term accounts payable, net 90, net 60 payments coincide with regular net 30 invoices.

Starting Balances Assets Cash Accounts Receivable Inventory

$17,000

Long-Term Assets

$61,500

Accumulated Depreciation

Liabilities Accounts Payable

$27,800

Corporate Taxes Payable Sales Taxes Payable Short-Term Debt Long-Term Debt

Capital Paid-In Capital

$25,000

Retained Earnings

$25,700


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Appendix Revenue Forecast Revenue Forecast Table (With Monthly Detail) FY2014

Oct '13

Nov '13

Dec '13

Jan '14

Feb '14

Mar '14

Apr '14

May '14

Jun '14

Jul '14

Aug '14

Sep '14

New Bikes

$17,000

$14,000

$19,000

$18,000

$18,000

$20,000

$18,000

$19,000

$21,000

$22,000

$23,000

$23,000


$11,000

$12,500

$14,000

$11,000

$10,000

$15,000

$9,500

$8,000

$13,000

$15,000

$11,000

$13,000

$3,500

$3,500

$4,500

$6,500

$10,500

$7,500

$4,500

$3,500

$4,500

$6,500

$7,500

$5,500

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$34,600

$33,100

$40,600

$38,600

$41,600

$45,600

$35,100

$33,600

$41,600

$46,600

$44,600

$44,600

$5,500

$6,250

$7,000

$5,500

$5,000

$7,500

$4,750

$4,000

$6,500

$7,500

$5,500

$6,500

$11,560

$9,520

$12,920

$12,240

$12,240

$13,600

$12,240

$12,920

$14,280

$14,960

$15,640

$15,640

$1,225

$1,225

$1,575

$2,275

$3,675

$2,625

$1,575

$1,225

$1,575

$2,275

$2,625

$1,925

$18,285

$16,995

$21,495

$20,015

$20,915

$23,725

$18,565

$18,145

$22,355

$24,735

$23,765

$24,065

$16,315

$16,105

$19,105

$18,585

$20,685

$21,875

$16,535

$15,455

$19,245

$21,865

$20,835

$20,535

47%

49%

47%

48%

50%

48%

47%

46%

46%

47%

47%

46%

Revenue

Clothing University Patrol Service Contract Repair and Service

Total Revenue Direct Cost Accessories and Parts New Bikes Clothing University Patrol Service Contract Repair and Service

Total Direct Cost Gross Margin

Gross Margin %


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FY2015

Oct '14

Nov '14

Dec '14

Jan '15

Feb '15

Mar '15

Apr '15

May '15

Jun '15

Jul '15

Aug '15

Sep '15

New Bikes

$20,833

$20,833

$20,833

$20,833

$20,833

$20,833

$20,833

$20,833

$20,834

$20,834

$20,834

$20,834


$14,375

$14,375

$14,375

$14,375

$14,375

$14,375

$14,375

$14,375

$14,375

$14,375

$14,375

$14,375

$6,516

$6,516

$6,516

$6,516

$6,517

$6,517

$6,517

$6,517

$6,517

$6,517

$6,517

$6,517

$115

$115

$115

$115

$115

$115

$115

$115

$115

$115

$115

$115

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$44,839

$44,839

$44,839

$44,839

$44,840

$44,840

$44,840

$44,840

$44,841

$44,841

$44,841

$44,841

$7,188

$7,188

$7,188

$7,188

$7,188

$7,188

$7,188

$7,188

$7,188

$7,188

$7,188

$7,188

$14,166

$14,166

$14,166

$14,166

$14,166

$14,166

$14,166

$14,166

$14,167

$14,167

$14,167

$14,167

$2,281

$2,281

$2,281

$2,281

$2,281

$2,281

$2,281

$2,281

$2,281

$2,281

$2,281

$2,281

$23,635

$23,635

$23,635

$23,635

$23,635

$23,635

$23,635

$23,635

$23,636

$23,636

$23,636

$23,636

$21,204

$21,204

$21,204

$21,204

$21,205

$21,205

$21,205

$21,205

$21,205

$21,205

$21,205

$21,205

47%

47%

47%

47%

47%

47%

47%

47%

47%

47%

47%

47%

Revenue




Gross Margin %


26


FY2016

Oct '15

Nov '15

Dec '15

Jan '16

Feb '16

Mar '16

Apr '16

May '16

Jun '16

Jul '16

Aug '16

Sep '16

New Bikes

$22,916

$22,916

$22,916

$22,916

$22,917

$22,917

$22,917

$22,917

$22,917

$22,917

$22,917

$22,917


$16,531

$16,531

$16,531

$16,531

$16,531

$16,531

$16,531

$16,531

$16,531

$16,532

$16,532

$16,532

$7,494

$7,494

$7,494

$7,494

$7,494

$7,494

$7,494

$7,494

$7,494

$7,494

$7,495

$7,495

$132

$132

$132

$132

$132

$132

$132

$132

$132

$133

$133

$133

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$50,073

$50,073

$50,073

$50,073

$50,074

$50,074

$50,074

$50,074

$50,074

$50,076

$50,077

$50,077

$8,266

$8,266

$8,266

$8,266

$8,266

$8,266

$8,266

$8,266

$8,266

$8,266

$8,266

$8,266

$15,583

$15,583

$15,583

$15,583

$15,584

$15,584

$15,584

$15,584

$15,584

$15,584

$15,584

$15,584

$2,623

$2,623

$2,623

$2,623

$2,623

$2,623

$2,623

$2,623

$2,623

$2,623

$2,623

$2,623

$26,472

$26,472

$26,472

$26,472

$26,473

$26,473

$26,473

$26,473

$26,473

$26,473

$26,473

$26,473

$23,601

$23,601

$23,601

$23,601

$23,601

$23,601

$23,601

$23,601

$23,601

$23,603

$23,604

$23,604

47%

47%

47%

47%

47%

47%

47%

47%

47%

47%

47%

47%

Revenue




Gross Margin %


27


FY2014

FY2015

FY2016

New Bikes

$232,000

$250,000

$275,000


$143,000

$172,500

$198,375

$68,000

$78,200

$89,930

$1,200

$1,380

$1,587

$36,000

$36,000

$36,000

$480,200

$538,080

$600,892

Revenue


Total Revenue Direct Cost Accessories and Parts New Bikes Clothing

$71,500

$86,250

$99,188

$157,760

$170,000

$187,000

$23,800

$27,370

$31,476

$253,060

$283,620

$317,664

$227,140

$254,460

$283,228

47%

47%

47%

University Patrol Service Contract Repair and Service


Gross Margin %


28


Personnel Plan Personnel Table (With Monthly Detail) FY2014

Oct '13

Nov '13

Dec '13

Jan '14

Feb '14

Mar '14

Apr '14

May '14

Jun '14

Jul '14

Aug '14

Sep '14

Valerie Pede

$2,666

$2,666

$2,666

$2,666

$2,667

$2,667

$2,667

$2,667

$2,667

$2,667

$2,667

$2,667

Dee Ray

$1,950

$1,950

$1,950

$1,950

$1,950

$1,950

$1,950

$1,950

$1,950

$1,950

$1,950

$1,950

Jean-Baptiste Kape

$1,650

$1,650

$1,650

$1,650

$1,650

$1,650

$1,650

$1,650

$1,650

$1,650

$1,650

$1,650

$1,000

$1,000

$1,000

Total

$6,266

$6,266

$6,266

$6,266

$6,267

$6,267

$6,267

$6,267

$6,267

$7,267

$7,267

$7,267

FY2015

Grocery Man

Oct '14

Nov '14

Dec '14

Jan '15

Feb '15

Mar '15

Apr '15

May '15

Jun '15

Jul '15

Aug '15

Sep '15

Valerie Pede

$2,666

$2,666

$2,666

$2,666

$2,667

$2,667

$2,667

$2,667

$2,667

$2,667

$2,667

$2,667

Dee Ray

$2,047

$2,047

$2,047

$2,047

$2,047

$2,047

$2,048

$2,048

$2,048

$2,048

$2,048

$2,048

Jean-Baptiste Kape

$1,732

$1,732

$1,732

$1,732

$1,732

$1,732

$1,733

$1,733

$1,733

$1,733

$1,733

$1,733

Grocery Man

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$7,445

$7,445

$7,445

$7,445

$7,446

$7,446

$7,448

$7,448

$7,448

$7,448

$7,448

$7,448

Total


29


FY2016

Oct '15

Nov '15

Dec '15

Jan '16

Feb '16

Mar '16

Apr '16

May '16

Jun '16

Jul '16

Aug '16

Sep '16

Valerie Pede

$2,666

$2,666

$2,666

$2,666

$2,667

$2,667

$2,667

$2,667

$2,667

$2,667

$2,667

$2,667

Dee Ray

$2,149

$2,150

$2,150

$2,150

$2,150

$2,150

$2,150

$2,150

$2,150

$2,150

$2,150

$2,150

Jean-Baptiste Kape

$1,819

$1,819

$1,819

$1,819

$1,819

$1,819

$1,819

$1,819

$1,819

$1,819

$1,820

$1,820

Grocery Man

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$7,634

$7,635

$7,635

$7,635

$7,636

$7,636

$7,636

$7,636

$7,636

$7,636

$7,637

$7,637

Total

FY2014

FY2015

FY2016

Valerie Pede

$32,000

$32,000

$32,000

Dee Ray

$23,400

$24,570

$25,799

Jean-Baptiste Kape

$19,800

$20,790

$21,830

$3,000

$12,000

$12,000

$78,200

$89,360

$91,629

Grocery Man

Total


30


Budget Budget Table (With Monthly Detail) FY2014

Oct '13

Nov '13

Dec '13

Jan '14

Feb '14

Mar '14

Apr '14

May '14

Jun '14

Jul '14

Aug '14

Sep '14

Salary

$6,266

$6,266

$6,266

$6,266

$6,267

$6,267

$6,267

$6,267

$6,267

$7,267

$7,267

$7,267


$1,567

$1,567

$1,567

$1,567

$1,567

$1,567

$1,567

$1,567

$1,567

$1,817

$1,817

$1,817

Insurance

$692

$662

$812

$772

$832

$912

$702

$672

$832

$932

$892

$892

Leased Equipment

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

Operating Expenses

Advertising

Rent Utilities Rent

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$14,975

$14,945

$15,095

$15,055

$15,116

$15,196

$14,986

$14,956

$15,116

$16,466

$16,426

$16,426

Office Expense

Total Operating Expenses


31


FY2015

Oct '14

Nov '14

Dec '14

Jan '15

Feb '15

Mar '15

Apr '15

May '15

Jun '15

Jul '15

Aug '15

Sep '15

Salary

$7,445

$7,445

$7,445

$7,445

$7,446

$7,446

$7,448

$7,448

$7,448

$7,448

$7,448

$7,448


$1,861

$1,861

$1,861

$1,861

$1,862

$1,862

$1,862

$1,862

$1,862

$1,862

$1,862

$1,862

Insurance

$897

$897

$897

$897

$897

$897

$897

$897

$897

$897

$897

$897

Leased Equipment

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$16,653

$16,653

$16,653

$16,653

$16,655

$16,655

$16,657

$16,657

$16,657

$16,657

$16,657

$16,657

Operating Expenses

Advertising

Rent Utilities Rent Office Expense



32


FY2016

Oct '15

Nov '15

Dec '15

Jan '16

Feb '16

Mar '16

Apr '16

May '16

Jun '16

Jul '16

Aug '16

Sep '16

Salary

$7,634

$7,635

$7,635

$7,635

$7,636

$7,636

$7,636

$7,636

$7,636

$7,636

$7,637

$7,637


$1,909

$1,909

$1,909

$1,909

$1,909

$1,909

$1,909

$1,909

$1,909

$1,909

$1,909

$1,909

$1,001

$1,001

$1,001

$1,001

$1,001

$1,001

$1,001

$1,001

$1,001

$1,002

$1,002

$1,002

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$16,994

$16,995

$16,995

$16,995

$16,996

$16,996

$16,996

$16,996

$16,996

$16,997

$16,998

$16,998

Operating Expenses

Advertising Insurance Leased Equipment Rent Utilities Rent Office Expense



33


FY2014

FY2015

FY2016

Salary

$78,200

$89,360

$91,629


$19,550

$22,340

$22,907

Insurance

$9,604

$10,762

$12,018

Leased Equipment

$1,800

$1,800

$1,800

$54,000

$54,000

$54,000

$3,600

$3,600

$3,600

$18,000

$18,000

$18,000

$184,754

$199,862

$203,954

Operating Expenses

Advertising



Loans and Investments Loans and Investments Table (With Monthly Detail) FY2014

Oct '13

Nov '13

Dec '13

Jan '14

Feb '14

Mar '14

Apr '14

May '14

Jun '14

Jul '14

Aug '14

Sep '14

Loan Loan at 7% interest for 60 mos. Loan Loan at 7% interest for 60 mos.

Total Amount Received

$90,000

$90,000


34


FY2015

Oct '14

Nov '14

Dec '14

Loan Loan at 7% interest for 60 mos.

Jan '15

Feb '15

Mar '15

Apr '15

May '15

Jun '15

Jul '15

Aug '15

Sep '15

Feb '16

Mar '16

Apr '16

May '16

Jun '16

Jul '16

Aug '16

Sep '16

$50,000

Loan Loan at 7% interest for 60 mos.


FY2016

$50,000

Oct '15

Nov '15

Dec '15

Jan '16

Loan Loan at 7% interest for 60 mos. Loan Loan at 7% interest for 60 mos.


FY2014 Loan Loan at 7% interest for 60 mos. Loan Loan at 7% interest for 60 mos.


FY2015

FY2016

$50,000 $90,000

$90,000

$50,000


35


Profit and Loss Statement Profit and Loss Statement (With Monthly Detail) FY2014

Oct '13

Nov '13

Dec '13

Jan '14

Feb '14

Mar '14

Apr '14

May '14

Jun '14

Jul '14

Aug '14

Sep '14

Revenue

$34,600

$33,100

$40,600

$38,600

$41,600

$45,600

$35,100

$33,600

$41,600

$46,600

$44,600

$44,600

Direct Costs

$18,285

$16,995

$21,495

$20,015

$20,915

$23,725

$18,565

$18,145

$22,355

$24,735

$23,765

$24,065

$16,315

$16,105

$19,105

$18,585

$20,685

$21,875

$16,535

$15,455

$19,245

$21,865

$20,835

$20,535

47%

49%

47%

48%

50%

48%

47%

46%

46%

47%

47%

46%

Salary

$6,266

$6,266

$6,266

$6,266

$6,267

$6,267

$6,267

$6,267

$6,267

$7,267

$7,267

$7,267


$1,567

$1,567

$1,567

$1,567

$1,567

$1,567

$1,567

$1,567

$1,567

$1,817

$1,817

$1,817

Insurance

$692

$662

$812

$772

$832

$912

$702

$672

$832

$932

$892

$892

Leased Equipment

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500


$14,975

$14,945

$15,095

$15,055

$15,116

$15,196

$14,986

$14,956

$15,116

$16,466

$16,426

$16,426

Operating Income

$1,340

$1,160

$4,010

$3,530

$5,569

$6,679

$1,549

$499

$4,129

$5,399

$4,409

$4,109

$525

$518

$510

$503

$495

$488

$480

$473

$465

$457

$450

Gross Margin


Advertising


Interest Incurred


36



$1,025

$1,025

$1,025

$1,025

$1,025

$1,025

$1,275

$1,275

$1,275

$1,275

$1,275

$1,289

$47

($47)

$359

$299

$606

$774

($32)

($188)

$357

$549

$401

$356

Total Expenses

$34,332

$33,443

$38,492

$36,904

$38,165

$41,215

$35,282

$34,668

$39,576

$43,490

$42,324

$42,586

Net Profit

$268

($343)

$2,108

$1,696

$3,435

$4,385

($182)

($1,068)

$2,024

$3,110

$2,276

$2,014

1%

(1%)

5%

4%

8%

10%

(1%)

(3%)

5%

7%

5%

5%

Income Taxes

Net Profit / Sales


37


FY2015

Oct '14

Nov '14

Dec '14

Jan '15

Feb '15

Mar '15

Apr '15

May '15

Jun '15

Jul '15

Aug '15

Sep '15

Revenue

$44,839

$44,839

$44,839

$44,839

$44,840

$44,840

$44,840

$44,840

$44,841

$44,841

$44,841

$44,841

Direct Costs

$23,635

$23,635

$23,635

$23,635

$23,635

$23,635

$23,635

$23,635

$23,636

$23,636

$23,636

$23,636

$21,204

$21,204

$21,204

$21,204

$21,205

$21,205

$21,205

$21,205

$21,205

$21,205

$21,205

$21,205

47%

47%

47%

47%

47%

47%

47%

47%

47%

47%

47%

47%

Salary

$7,445

$7,445

$7,445

$7,445

$7,446

$7,446

$7,448

$7,448

$7,448

$7,448

$7,448

$7,448


$1,861

$1,861

$1,861

$1,861

$1,862

$1,862

$1,862

$1,862

$1,862

$1,862

$1,862

$1,862

Insurance

$897

$897

$897

$897

$897

$897

$897

$897

$897

$897

$897

$897

Leased Equipment

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500


$16,653

$16,653

$16,653

$16,653

$16,655

$16,655

$16,657

$16,657

$16,657

$16,657

$16,657

$16,657

Operating Income

$4,551

$4,551

$4,551

$4,551

$4,550

$4,550

$4,548

$4,548

$4,548

$4,548

$4,548

$4,548

$442

$434

$426

$418

$702

$690

$678

$665

$653

$641

$629

$616

$1,290

$1,289

$1,289

$1,289

$1,290

$1,289

$1,289

$1,290

$1,289

$1,289

$1,289

$1,290

$422

$425

$425

$427

$383

$386

$387

$389

$391

$393

$394

$397

Total Expenses

$42,442

$42,436

$42,428

$42,422

$42,665

$42,655

$42,646

$42,636

$42,626

$42,616

$42,605

$42,596

Net Profit

$2,397

$2,403

$2,411

$2,417

$2,175

$2,185

$2,194

$2,204

$2,215

$2,225

$2,236

$2,245

Gross Margin


Advertising


Interest Incurred Depreciation and Amortization Income Taxes


38


Net Profit / Sales

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%


39


FY2016

Oct '15

Nov '15

Dec '15

Jan '16

Feb '16

Mar '16

Apr '16

May '16

Jun '16

Jul '16

Aug '16

Sep '16

Revenue

$50,073

$50,073

$50,073

$50,073

$50,074

$50,074

$50,074

$50,074

$50,074

$50,076

$50,077

$50,077

Direct Costs

$26,472

$26,472

$26,472

$26,472

$26,473

$26,473

$26,473

$26,473

$26,473

$26,473

$26,473

$26,473

$23,601

$23,601

$23,601

$23,601

$23,601

$23,601

$23,601

$23,601

$23,601

$23,603

$23,604

$23,604

47%

47%

47%

47%

47%

47%

47%

47%

47%

47%

47%

47%

Salary

$7,634

$7,635

$7,635

$7,635

$7,636

$7,636

$7,636

$7,636

$7,636

$7,636

$7,637

$7,637


$1,909

$1,909

$1,909

$1,909

$1,909

$1,909

$1,909

$1,909

$1,909

$1,909

$1,909

$1,909

$1,001

$1,001

$1,001

$1,001

$1,001

$1,001

$1,001

$1,001

$1,001

$1,002

$1,002

$1,002

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500


$16,994

$16,995

$16,995

$16,995

$16,996

$16,996

$16,996

$16,996

$16,996

$16,997

$16,998

$16,998

Operating Income

$6,607

$6,606

$6,606

$6,606

$6,605

$6,605

$6,605

$6,605

$6,605

$6,606

$6,606

$6,606

$603

$591

$578

$566

$552

$540

$526

$513

$501

$487

$474

$460

$1,289

$1,289

$1,290

$1,289

$1,289

$1,289

$1,290

$1,289

$1,289

$1,290

$1,289

$1,289

$707

$709

$710

$713

$715

$716

$718

$721

$722

$724

$727

$728

Total Expenses

$46,065

$46,056

$46,045

$46,035

$46,025

$46,014

$46,003

$45,992

$45,981

$45,971

$45,961

$45,948

Net Profit

$4,008

$4,017

$4,028

$4,038

$4,049

$4,060

$4,071

$4,082

$4,093

$4,105

$4,116

$4,129

Gross Margin


Advertising Insurance Leased Equipment Rent Utilities Rent Office Expense

Interest Incurred Depreciation and Amortization Income Taxes


40


Net Profit / Sales

8%

8%

8%

8%

8%

8%

8%

8%

8%

8%

8%

8%


41


FY2014

FY2015

FY2016

Revenue

$480,200

$538,080

$600,892

Direct Costs

$253,060

$283,620

$317,664

$227,140

$254,460

$283,228

47%

47%

47%

Salary

$78,200

$89,360

$91,629


$19,550

$22,340

$22,907

Insurance

$9,604

$10,762

$12,018

Leased Equipment

$1,800

$1,800

$1,800

$54,000

$54,000

$54,000

Gross Margin


Advertising

Rent Utilities Rent

$3,600

$3,600

$3,600

$18,000

$18,000

$18,000

$184,754

$199,862

$203,954

$42,386

$54,598

$79,274

$5,364

$6,994

$6,391

$13,814

$15,472

$15,471

$3,481

$4,819

$8,610

$460,473

$510,767

$552,090

$19,727

$27,313

$48,802

4%

5%

8%

Office Expense

Total Operating Expenses Operating Income Interest Incurred Depreciation and Amortization Income Taxes

Total Expenses Net Profit Net Profit / Sales


42


Balance Sheet Balance Sheet (With Monthly Detail) As of Period's End Cash

Starting Balances

Oct '13

Nov '13

Dec '13

Jan '14

Feb '14

Mar '14

Apr '14

May '14

Jun '14

Jul '14

Aug '14

Sep '14

$0

$47,691

$25,261

$26,245

$24,814

$31,866

$40,817

$20,177

$14,657

$15,124

$15,501

$20,567

$23,963

$9,170

$8,726

$10,740

$10,209

$10,974

$12,035

$9,316

$8,953

$11,033

$12,328

$11,838

$11,838

$17,000

$58,505

$62,425

$64,655

$63,205

$60,435

$59,065

$65,235

$70,855

$72,565

$71,465

$71,335

$70,905

$17,000

$115,366

$96,412

$101,640

$98,228

$103,275

$111,917

$94,728

$94,465

$98,722

$99,294

$103,740

$106,706

$61,500

$61,500

$61,500

$61,500

$61,500

$61,500

$61,500

$76,500

$76,500

$76,500

$76,500

$76,500

$77,700

($1,025)

($2,050)

($3,075)

($4,100)

($5,125)

($6,150)

($7,425)

($8,700)

($9,975)

($11,250)

($12,525)

($13,814)

Accounts Receivable Inventory Other Current Assets

Total Current Assets Long-Term Assets Accumulated Depreciation

Total LongTerm Assets

$61,500

$60,475

$59,450

$58,425

$57,400

$56,375

$55,350

$69,075

$67,800

$66,525

$65,250

$63,975

$63,886

Total Assets

$78,500

$175,841

$155,862

$160,065

$155,628

$159,650

$167,267

$163,803

$162,265

$165,247

$164,544

$167,715

$170,592

Accounts Payable

$27,800

$33,466

$14,014

$15,494

$12,894

$12,714

$14,859

$15,943

$15,443

$15,673

$15,508

$15,487

$15,486

$47

$0

$359

$658

$1,264

$2,038

$2,006

$1,818

$2,175

$2,724

$3,125

$3,481

Sales Taxes Payable

$1,360

$2,480

$4,000

$1,440

$2,880

$4,480

$1,440

$2,960

$4,640

$1,760

$3,600

$5,440

Short-Term Debt

$15,578

$15,669

$15,761

$15,853

$15,946

$16,039

$16,133

$16,227

$16,322

$16,417

$16,512

$16,609


Prepaid Revenue


43


Total Current Liabilities

$27,800

$50,451

$32,163

$35,614

$30,845

$32,804

$37,416

$35,522

$36,448

$38,810

$36,409

$38,724

$41,016

$74,422

$73,074

$71,718

$70,354

$68,982

$67,602

$66,214

$64,818

$63,414

$62,002

$60,582

$59,153

$27,800

$124,873

$105,237

$107,332

$101,199

$101,786

$105,018

$101,736

$101,266

$102,224

$98,411

$99,306

$100,169

Paid-in Capital

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

Retained Earnings

$25,700

$25,700

$25,700

$25,700

$25,700

$25,700

$25,700

$25,700

$25,700

$25,700

$25,700

$25,700

$25,700

$268

($75)

$2,033

$3,729

$7,164

$11,549

$11,367

$10,299

$12,323

$15,433

$17,709

$19,723

Long-Term Debt

Total Liabilities

Earnings

Total Owner's Equity

$50,700

$50,968

$50,625

$52,733

$54,429

$57,864

$62,249

$62,067

$60,999

$63,023

$66,133

$68,409

$70,423


$78,500

$175,841

$155,862

$160,065

$155,628

$159,650

$167,267

$163,803

$162,265

$165,247

$164,544

$167,715

$170,592


44


FY2015

Oct '14

Nov '14

Dec '14

Jan '15

Feb '15

Mar '15

Apr '15

May '15

Jun '15

Jul '15

Aug '15

Sep '15

Cash

$22,943

$27,377

$28,331

$77,766

$81,209

$84,653

$83,095

$86,537

$89,981

$87,007

$87,614

$88,222

Accounts Receivable

$11,855

$11,855

$11,855

$11,855

$11,855

$11,855

$11,854

$11,854

$11,853

$11,852

$11,851

$11,850

Inventory

$70,905

$70,905

$70,905

$70,905

$70,905

$70,906

$70,907

$70,908

$70,908

$73,744

$76,580

$79,416

$105,703

$110,137

$111,091

$160,526

$163,969

$167,414

$165,856

$169,299

$172,742

$172,603

$176,045

$179,488

$77,700

$77,700

$77,700

$77,700

$77,700

$77,700

$77,700

$77,700

$77,700

$77,700

$77,700

$77,700


($15,104)

($16,393)

($17,682)

($18,971)

($20,261)

($21,550)

($22,839)

($24,129)

($25,418)

($26,707)

($27,996)

($29,286)


$62,596

$61,307

$60,018

$58,729

$57,439

$56,150

$54,861

$53,571

$52,282

$50,993

$49,704

$48,414

Total Assets

$168,299

$171,444

$171,109

$219,255

$221,408

$223,564

$220,717

$222,870

$225,024

$223,596

$225,749

$227,902

$15,487

$15,486

$15,485

$15,484

$15,483

$15,483

$15,483

$15,483

$15,483

$16,901

$16,901

$16,901


$3,903

$4,328

$1,272

$1,699

$2,082

$2,468

$2,855

$3,244

$3,635

$4,028

$4,422

$4,819

Sales Taxes Payable

$1,667

$3,333

$5,000

$1,667

$3,333

$5,000

$1,666

$3,333

$5,000

$1,667

$3,333

$5,000

Short-Term Debt

$16,706

$16,803

$16,901

$25,652

$25,802

$25,952

$26,104

$26,256

$26,408

$26,562

$26,717

$26,873

$37,763

$39,950

$38,658

$44,502

$46,700

$48,903

$46,108

$48,316

$50,526

$49,158

$51,373

$53,593

$57,716

$56,271

$54,817

$94,702

$92,482

$90,250

$88,004

$85,745

$83,474

$81,189

$78,891

$76,579

$95,479

$96,221

$93,475

$139,204

$139,182

$139,153

$134,112

$134,061

$134,000

$130,347

$130,264

$130,172

Paid-in Capital

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

Retained Earnings

$45,423

$45,423

$45,423

$45,423

$45,423

$45,423

$45,423

$45,423

$45,423

$45,423

$45,423

$45,423

Other Current Assets

Total Current Assets Long-Term Assets

Accounts Payable

Prepaid Revenue

Total Current Liabilities Long-Term Debt

Total Liabilities


45


Earnings

Total Owner's Equity Total Liabilities & Equity

$2,397

$4,800

$7,211

$9,628

$11,803

$13,988

$16,182

$18,386

$20,601

$22,826

$25,062

$27,307

$72,820

$75,223

$77,634

$80,051

$82,226

$84,411

$86,605

$88,809

$91,024

$93,249

$95,485

$97,730

$168,299

$171,444

$171,109

$219,255

$221,408

$223,564

$220,717

$222,870

$225,024

$223,596

$225,749

$227,902


46


FY2016

Oct '15

Nov '15

Dec '15

Jan '16

Feb '16

Mar '16

Apr '16

May '16

Jun '16

Jul '16

Aug '16

Sep '16

Cash

$87,566

$93,233

$94,081

$94,247

$99,913

$105,581

$105,748

$111,416

$117,083

$117,251

$122,918

$128,585

Accounts Receivable

$13,226

$13,226

$13,225

$13,225

$13,225

$13,224

$13,223

$13,222

$13,221

$13,221

$13,221

$13,220

Inventory

$79,416

$79,417

$79,418

$79,419

$79,419

$79,419

$79,419

$79,419

$79,419

$79,419

$79,419

$79,419

$180,208

$185,876

$186,724

$186,891

$192,557

$198,224

$198,390

$204,057

$209,723

$209,891

$215,558

$221,224

$77,700

$77,700

$77,700

$77,700

$77,700

$77,700

$77,700

$77,700

$77,700

$77,700

$77,700

$77,700


($30,575)

($31,864)

($33,154)

($34,443)

($35,732)

($37,021)

($38,311)

($39,600)

($40,889)

($42,179)

($43,468)

($44,757)


$47,125

$45,836

$44,546

$43,257

$41,968

$40,679

$39,389

$38,100

$36,811

$35,521

$34,232

$32,943

Total Assets

$227,333

$231,712

$231,270

$230,148

$234,525

$238,903

$237,779

$242,157

$246,534

$245,412

$249,790

$254,167

$16,953

$16,953

$16,953

$16,953

$16,953

$16,953

$16,953

$16,953

$16,953

$16,954

$16,953

$16,952


$5,526

$6,235

$2,126

$2,839

$3,554

$4,270

$4,988

$5,709

$6,431

$7,155

$7,882

$8,610

Sales Taxes Payable

$1,833

$3,667

$5,500

$1,833

$3,666

$5,500

$1,833

$3,667

$5,500

$1,833

$3,667

$5,500

Short-Term Debt

$27,029

$27,187

$27,346

$27,506

$27,666

$27,828

$27,990

$28,153

$28,318

$28,484

$28,650

$28,817

$51,341

$54,042

$51,925

$49,131

$51,839

$54,551

$51,764

$54,482

$57,202

$54,426

$57,152

$59,879

$74,254

$71,915

$69,562

$67,196

$64,816

$62,422

$60,014

$57,592

$55,156

$52,705

$50,241

$47,762

$125,595

$125,957

$121,487

$116,327

$116,655

$116,973

$111,778

$112,074

$112,358

$107,131

$107,393

$107,641

Paid-in Capital

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

Retained Earnings

$72,730

$72,730

$72,730

$72,730

$72,730

$72,730

$72,730

$72,730

$72,730

$72,730

$72,730

$72,730


Total Current Assets Long-Term Assets

Accounts Payable

Prepaid Revenue

Total Current Liabilities Long-Term Debt

Total Liabilities


47


Earnings

$4,008

$8,025

$12,053

$16,091

$20,140

$24,200

$28,271

$32,353

$36,446

$40,551

$44,667

$48,796


$101,738

$105,755

$109,783

$113,821

$117,870

$121,930

$126,001

$130,083

$134,176

$138,281

$142,397

$146,526


$227,333

$231,712

$231,270

$230,148

$234,525

$238,903

$237,779

$242,157

$246,534

$245,412

$249,790

$254,167


48


As of Period's End Cash

Starting Balances

FY2014

FY2015

FY2016

$0

$23,963

$88,222

$128,585

Accounts Receivable Inventory

$11,838

$11,850

$13,220

$17,000

$70,905

$79,416

$79,419

$17,000

$106,706

$179,488

$221,224

$61,500

$77,700

$77,700

$77,700


Total Current Assets Long-Term Assets Accumulated Depreciation

($13,814)

($29,286)

($44,757)

Total Long-Term Assets

$61,500

$63,886

$48,414

$32,943

Total Assets

$78,500

$170,592

$227,902

$254,167

$27,800

Accounts Payable

$15,486

$16,901

$16,952


$3,481

$4,819

$8,610

Sales Taxes Payable

$5,440

$5,000

$5,500

$16,609

$26,873

$28,817

$41,016

$53,593

$59,879

$59,153

$76,579

$47,762

$27,800

$100,169

$130,172

$107,641

Paid-in Capital

$25,000

$25,000

$25,000

$25,000

Retained Earnings

$25,700

$25,700

$45,423

$72,730

$19,723

$27,307

$48,796

Short-Term Debt Prepaid Revenue

Total Current Liabilities

$27,800

Long-Term Debt

Total Liabilities

Earnings


$50,700

$70,423

$97,730

$146,526


$78,500

$170,592

$227,902

$254,167


49


Cash Flow Statement Cash Flow Statement (With Monthly Detail) FY2014

Oct '13

Nov '13

Dec '13

Jan '14

Feb '14

Mar '14

Apr '14

May '14

Jun '14

Jul '14

Aug '14

Sep '14

$268

($343)

$2,108

$1,696

$3,435

$4,385

($182)

($1,068)

$2,024

$3,110

$2,276

$2,014

$1,025

$1,025

$1,025

$1,025

$1,025

$1,025

$1,275

$1,275

$1,275

$1,275

$1,275

$1,289


($9,170)

$444

($2,014)

$531

($765)

($1,061)

$2,719

$363

($2,080)

($1,295)

$490

$0

Change in Inventory

($41,505)

($3,920)

($2,230)

$1,450

$2,770

$1,370

($6,170)

($5,620)

($1,710)

$1,100

$130

$430


$5,666

($19,452)

$1,480

($2,600)

($180)

$2,145

$1,084

($500)

$230

($165)

($21)

($1)

$47

($47)

$359

$299

$606

$774

($32)

($188)

$357

$549

$401

$356

$1,360

$1,120

$1,520

($2,560)

$1,440

$1,600

($3,040)

$1,520

$1,680

($2,880)

$1,840

$1,840

($42,309)

($21,173)

$2,248

($159)

$8,331

$10,238

($4,346)

($4,218)

$1,776

$1,694

$6,391

$5,928

Net Cash Flow from Operations Net Profit Depreciation and Amortization

Change in Income Tax Payable Change in Sales Tax Payable Change in Prepaid Revenue

Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold

($15,000)

($1,200)

Investments Received


50


Change in Long-Term Debt

$74,422

($1,348)

($1,356)

($1,364)

($1,372)

($1,380)

($1,388)

($1,396)

($1,404)

($1,412)

($1,420)

($1,429)


$15,578

$91

$92

$92

$93

$93

$94

$94

$95

$95

$95

$97

$90,000

($1,257)

($1,264)

($1,272)

($1,279)

($1,287)

($16,294)

($1,302)

($1,309)

($1,317)

($1,325)

($2,532)

$0

$47,691

$25,261

$26,245

$24,814

$31,866

$40,817

$20,177

$14,657

$15,124

$15,501

$20,567

$47,691

($22,430)

$984

($1,431)

$7,052

$8,951

($20,640)

($5,520)

$467

$377

$5,066

$3,396

$47,691

$25,261

$26,245

$24,814

$31,866

$40,817

$20,177

$14,657

$15,124

$15,501

$20,567

$23,963

Dividends & Distributions

Net Cash Flow from Investing & Financing Cash at Beginning of Period Net Change in Cash



51


FY2015

Oct '14

Nov '14

Dec '14

Jan '15

Feb '15

Mar '15

Apr '15

May '15

Jun '15

Jul '15

Aug '15

Sep '15

Net Profit

$2,397

$2,403

$2,411

$2,417

$2,175

$2,185

$2,194

$2,204

$2,215

$2,225

$2,236

$2,245


$1,290

$1,289

$1,289

$1,289

$1,290

$1,289

$1,289

$1,290

$1,289

$1,289

$1,289

$1,290

($17)

$0

$0

$0

$0

$0

$1

$0

$1

$1

$1

$1

Change in Inventory

$0

$0

$0

$0

$0

($1)

($1)

($1)

$0

($2,836)

($2,836)

($2,836)


$1

($1)

($1)

($1)

($1)

$0

$0

$0

$0

$1,418

$0

$0

$422

$425

($3,056)

$427

$383

$386

$387

$389

$391

$393

$394

$397

($3,773)

$1,666

$1,667

($3,333)

$1,666

$1,667

($3,334)

$1,667

$1,667

($3,333)

$1,666

$1,667

$320

$5,782

$2,310

$799

$5,513

$5,526

$536

$5,549

$5,563

($843)

$2,750

$2,764


($1,437)

($1,445)

($1,454)

$39,885

($2,220)

($2,232)

($2,246)

($2,259)

($2,271)

($2,285)

($2,298)

($2,312)


$97

$97

$98

$8,751

$150

$150

$152

$152

$152

$154

$155

$156




Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold Investments Received



52


Net Cash Flow from Investing & Financing

($1,340)

($1,348)

($1,356)

$48,636

($2,070)

($2,082)

($2,094)

($2,107)

($2,119)

($2,131)

($2,143)

($2,156)

Cash at Beginning of Period

$23,963

$22,943

$27,377

$28,331

$77,766

$81,209

$84,653

$83,095

$86,537

$89,981

$87,007

$87,614

Net Change in Cash

($1,020)

$4,434

$954

$49,435

$3,443

$3,444

($1,558)

$3,442

$3,444

($2,974)

$607

$608


$22,943

$27,377

$28,331

$77,766

$81,209

$84,653

$83,095

$86,537

$89,981

$87,007

$87,614

$88,222


53


FY2016

Oct '15

Nov '15

Dec '15

Jan '16

Feb '16

Mar '16

Apr '16

May '16

Jun '16

Jul '16

Aug '16

Sep '16

Net Profit

$4,008

$4,017

$4,028

$4,038

$4,049

$4,060

$4,071

$4,082

$4,093

$4,105

$4,116

$4,129


$1,289

$1,289

$1,290

$1,289

$1,289

$1,289

$1,290

$1,289

$1,289

$1,290

$1,289

$1,289

($1,376)

$0

$1

$0

$0

$1

$1

$1

$1

$0

$0

$1

Change in Inventory

$0

($1)

($1)

($1)

$0

$0

$0

$0

$0

$0

$0

$0


$52

$0

$0

$0

$0

$0

$0

$0

$0

$1

($1)

($1)

$707

$709

($4,109)

$713

$715

$716

$718

$721

$722

$724

$727

$728

($3,167)

$1,834

$1,833

($3,667)

$1,833

$1,834

($3,667)

$1,834

$1,833

($3,667)

$1,834

$1,833

$1,513

$7,848

$3,042

$2,372

$7,886

$7,900

$2,413

$7,927

$7,938

$2,453

$7,965

$7,979


($2,325)

($2,339)

($2,353)

($2,366)

($2,380)

($2,394)

($2,408)

($2,422)

($2,436)

($2,451)

($2,464)

($2,479)


$156

$158

$159

$160

$160

$162

$162

$163

$165

$166

$166

$167




Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold Investments Received



54




($2,169)

($2,181)

($2,194)

($2,206)

($2,220)

($2,232)

($2,246)

($2,259)

($2,271)

($2,285)

($2,298)

($2,312)

$88,222

$87,566

$93,233

$94,081

$94,247

$99,913

$105,581

$105,748

$111,416

$117,083

$117,251

$122,918

($656)

$5,667

$848

$166

$5,666

$5,668

$167

$5,668

$5,667

$168

$5,667

$5,667

$87,566

$93,233

$94,081

$94,247

$99,913

$105,581

$105,748

$111,416

$117,083

$117,251

$122,918

$128,585


55


FY2014

FY2015

FY2016

Net Profit

$19,727

$27,313

$48,802


$13,814

$15,472

$15,471


($11,840)

($11)

($1,368)

Change in Inventory

($53,905)

($8,511)

($3)


($12,319)

$1,411

$51

Change in Income Tax Payable

$3,481

$1,338

$3,791

Change in Sales Tax Payable

$5,440

($440)

$500

($35,602)

$36,572

$67,244


Change in Prepaid Revenue

Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold

($16,200)

Investments Received Change in Long-Term Debt

$59,153

$17,426

($28,817)


$16,609

$10,264

$1,944

$59,562

$27,690

($26,873)

$3

$23,960

$88,214

$23,960

$64,262

$40,371

$23,963

$88,222

$128,585





Garrett's Bike Shop

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