trading business plan draft.pdf
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Confidentiality Agreement
The undersigned reader acknowledges that the information provided by _______________ in thisbusiness plan is confidential; therefore, reader agrees not to disclose it without the express
written permission of _______________.It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other meansand that any disclosure or use of same by reader, may cause serious harm or damage to
_______________.Upon request, this document is to be immediately returned to _______________.
___________________
Signature ___________________
Name (typed or printed)
___________________
DateThis is a business plan. It does not imply an offering of securities.
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Table of Contents
1.0 Executive Summary .................................................................................................................................11.1 Objectives........................................................................................ ..............................................11.2 Mission ..........................................................................................................................................11.3 Keys to Success ............................................................................................................................2
2.0 Company Summary .................................................................................................................................22.1 Company Ownership .....................................................................................................................22.2 Start-up Summary............................................................................ ..............................................2
3.0 Products.................................................................................................... ..............................................44.0 Market Analysis Summary .......................................................................................................................4
4.1 Market Segmentation.....................................................................................................................54.2 Target Mar ket Segment Strategy...................................................................................................64.3 Industry Analysis.............................................................................. ..............................................6
4.3.1 Competition and Buying Patterns ......................................................................................65.0 Strategy and Implementation Summary ...................................................................................................6
5.1 Competitive Edge ..........................................................................................................................65.2 Marketing Strategy ........................................................................................................................65.3 Sales Strategy ...............................................................................................................................7
5.3.1 Sales Forecast ..................................................................................................................75.4 Milestones .....................................................................................................................................8
6.0 Management Summary ...........................................................................................................................96.1 Personnel Plan ............................................................................................................................10
7.0 Financial Plan .......................................................................................................................................107.1 Start-up Funding .........................................................................................................................107.2 Important Assumptions.................................................................................................................117.3 Break-even Analysis ....................................................................................................................117.4 Projected Profit and Loss ............................................................................................................127.5 Projected Cash Flow....................................................................................................................157.6 Projected Balance Sheet .............................................................................................................177.7 Business Ratios ...........................................................................................................................18
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Ekoki Trading Business Plan
1.0 Executive Summary
TO BE COMPLETED AT THE END.
1.1 Objectives
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1.3 Keys to Success
1. To develop an extensive networking within the mobile telecommunications industry
and the South African business community as a whole.2. To develop c ritically acc laimed software, developing strategic alliances with
consulting firms and software companies that complement Ekoki Trading's offering.
2.0 Company Summary
Ekoki Trading is a software development company that seeks to resolve the ever-increasing need
for unique, inexistent mobile Apps services in the diverse South African Mobile telephony market.Innovation is the company motto and through the help of a well selected team as well as
strategically placed partners, Ekoki's goal to develop state-of-the-art software Apps, neverbefore experienced in South Africa, can be achieved.
Ekoki Trading plans to introduce itself to the market with its newly developed car-sharingplatform for use on smart phones and other smart gadgets.
2.1 Company Ownership
Ekoki Trading is a Private Limited Company, owned in total by its co-founders, Boipelo Chababaand Kay Ruby Pezo.
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Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal R5,000
Stationery etc. R3,000
Insurance R3,000
Rent R6,000
Computers & Telecommunication Services R50,000
Other R3,000
Total Start-up Expenses R70,000
Start-up Assets
Cash Required R1,350,000
Other Current Assets R10,000
Long-term Assets R70,000
Total Assets R1,430,000
Total Requirements R1,500,000
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3.0 Products
Ekoki Trading plans on developing software that are more than just tools, because theyinstruct and empower the user with know-how as well as tools.Our strategy is to offer up software that will not just be bought for the software itself but the
benefit offered in the application as we as the step-by-step solution offered by the App.An example is our flagship product which is a car-sharing platform for long-distance travellers.
The idea behind this product is to develop a Mobile App that can be used by drivers planning
long-distance trips who may require passengers to travel with as a way of cutting down on thefuel costs that come with the trip. This App can also work in the opposite, to help travellerslooking for alternative transport, to help them identifify private evehicles that may be headedin thir direction as a way pof cutting costs.
This is just one of the flagship products that Ekoki plans to develop, and this will be shortlyfollowed by similarly well-though of and structured products.
4.0 Market Analysis Summary
Ekoki Trading operates primarily in the Mobile Apps and software applications industry.
Smart phones are fast becoming a viable alternative to PDAs and lapops, offering phone featuressuch as coice and SMS coupled with mobile internet applications, multimedia funct ionality, high
speed data processing capabilities and inbuilt GPS capabilities.The total global phone and smartphone market is expected to be worth $341.4 billion by 2015hile smartphone revenue will account for 75.8% of the overall handset revenue at $258.9 billion
in the same year. Smartphones are currently witnessing high growth due to a host of factors,including lower product cost, improved handset design and functionalities, the expansion of
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4.1 Market Segmentation
We anticipate that the global mobile applications market will be worth $25 billion by the end of 2015. However, the number of downloads will show a faster growth at CAGR of 64.2% during thesame period and is expected to reach 144 billion downloads by 2015.
The disconnect between the growth of revenue and downloads is mainly due to the reductionexpected in the average selling price of mobile applications, faster growth of free mobile
application downloads and growth in ad-sponsored mobile applications.
You will note that the preferred segments for Ekoki Trading tend to lean more in segments thatare more likely to attract advertising support. This means that the company can offer the Appsat a low selling price or for free, depending on the sponsorship size. The segmenst chosencater for some of the more sponsored areas in the business sector.
Table: Market Analysis
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Business and Finance 12% 50,000 56,000 62,720 70,246 78,676 12.00%
Social Networking 10% 200,000 220,000 242,000 266,200 292,820 10.00%
Travel 10% 50,000 55,000 60,500 66,550 73,205 10.00%
Util ities 13% 150,000 169,500 191,535 216,435 244,572 13.00%
Entertainment 12% 150,000 168,000 188,160 210,739 236,028 12.00%
Total 11.44% 600,000 668,500 744,915 830,170 925,301 11.44%
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4.2 Target Market Segment Strategy
Ekoki Trading target market strategy lies in developing Apps that will attract ad sponsorship frombusiness entities, corporates and government bodies. This way the company does not have tooffer their app at a selling price that may keep potential clients from downloading the app. The
apps can then be offered for free or at a highly subsidized rate.The segments selected will offer pportunities that will see the development of apps attracting ad
opportunies, and hence, each product developed by Ekoki Trading, will from conception, take
into consideration the target market segmentation strategy and accomodate the investorattracting factor.
4.3 Industry Analysis
TO BE DONE IN PHASE 2
4.3.1 Competition and Buying Patterns
TO BE DONE IN PHASE 2
5.0 Strategy and Implementation Summary
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5.3 Sales Strategy
Pricing Strategy
Ekoki Trading App software will strive to be competitive when compared to the competition,though the company plans on developing unique applications whose initial entry into the
market will have no c lose competitor comparative.Additionally, the company intends to capitalize on ad sponsorship from corporates or businesses
related to the software developed. These companies will be identified during the
conceptualization process of the software app.
5.3.1 Sales Forecast
As indicated in the table, our sales are forecasted to increase rapidly, with an annual growth
rate of approximately 10%.MORE TO BE ADDED IN PHASE 2
Table: Sales Forecast
Sales Forecast
Year 1 Year 2 Year 3
Sales
Ekoki Car Sharing Platform R2,200,000 R2,420,000 R2,662,000
Ekoki Software 2 R900,000 R990,000 R1,089,000
Total Sales R3,100,000 R3,410,000 R3,751,000
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Table: Milestones
Milestones
Milestone Start Date End Date Budget Manager Department
Acquire funding 9/8/201 4 10/8/2014 R0 Boi pel o/kay Management
Set-up offices 9/8/2014 10/8/2014 R0 Boipelo/Kay Management
Market Research 9/8/2014 10/8/2014 R0 Boipelo/Kay Administrator
Develop Software 10/1/2014 2/28/2015 R0 IT Expert IT Expert
Name me 9/8/2014 10/8/2014 R0 ABC Department
Name me 9/8/2014 10/8/2014 R0 ABC Department
Name me 9/8/2014 10/8/2014 R0 ABC Department
Name me 9/8/2014 10/8/2014 R0 ABC Department
Name me 9/8/2014 10/8/2014 R0 ABC Department
Name me 9/8/2014 10/8/2014 R0 ABC Department
Totals R0
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6.1 Personnel Plan
The table below contains the details of our personnel plan. Both directors will, during the firstfew months of company launch, not earn any salary. The call center agents will be employedonce the App is ready for launch.
Table: Personnel
Personnel Plan
Year 1 Year 2 Year 3
Adm in istration (Director) R140,000 R240,000 R240,000
Sales & marketing (Director) R140,000 R240,000 R240,000
IT Expert R180,000 R198,000 R217,800
Call Center Agents (X4) R160,000 R176,000 R193,600
Total People 0 0 0
Total Payroll R620,000 R854,000 R891,400
7.0 Financial Plan
7.1 Start-up Funding
Ekoki Trading's start-up costs are detailed above in the start-up table. The following table showshow these start-up costs will be funded through a long-term loan facility.
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Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund R70,000
Start-up Assets to Fund R1,430,000
Total Funding Required R1,500,000
Assets
Non-cash Assets from Start-up R80,000
Cash Requirements from Start-up R1,350,000
Addit ional Cash Raised R0
Cash Balance on Starting Date R1,350,000
Total Assets R1,430,000
Liabilities and Capital
Liabilities
Current Borrowing R0
Long-term Liabili ties R1,500,000
Accounts Payab le (Outstanding Bi ll s) R0
Other Current Liabili ties (interest-free) R0
Total Liabili ties R1,500,000
Capital
Planned Investment
Owner R0
Investor R0
Addit ional Investment Requi rement R0
Total Planned Investment R0
Loss at Start-up (Start-up Expenses) (R70,000)
Total Capital (R70,000)
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Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even R73,677
Assumpti ons:
Average Percent Variabl e Cost 19%
Estimated Monthly Fixed Cost R59,417
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Table: Profit and Loss
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales R3,100,000 R3,410,000 R3,751,000
Direct Cost of Sales R600,000 R630,000 R661,500
Other Costs of Sales R0 R0 R0
Total Cost of Sales R600,000 R630,000 R661,500
Gross Margin R2,500,000 R2,780,000 R3,089,500
Gross Margin % 80.65% 81.52% 82.36%
Expenses
Payroll R620,000 R854,000 R891,400
Marketing/Promotion R0 R0 R0
Depreciation R0 R0 R0
Rent R0 R0 R0
Util ities R0 R0 R0
Insurance R0 R0 R0
Payroll Taxes R93,000 R128,100 R133,710
Other R0 R0 R0
Total Operating Expenses R713,000 R982,100 R1,025,110
Profit Before Interest and Taxes R1,787,000 R1,797,900 R2,064,390
EBITDA R1,787,000 R1,797,900 R2,064,390
Interest Expense R150,000 R150,000 R150,000
Taxes Incurred R491,100 R494,370 R574,317
Net Profit R1,145,900 R1,153,530 R1,340,073
Net Profit/Sales 36.96% 33.83% 35.73%
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7.5 Projected Cash Flow
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Table: Cash Flow
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales R3,100,000 R3,410,000 R3,751,000
Subtotal Cash from Operations R3,100,000 R3,410,000 R3,751,000
Addit ional Cash Received
Sales Tax, VAT, HST/GST Received R0 R0 R0
New Current Borrowing R0 R0 R0
New Other Liabil ities (interest-free) R0 R0 R0
New Long-term Liabili ties R0 R0 R0
Sales of Other Current Assets R0 R0 R0
Sales of Long-term Assets R0 R0 R0
New Investment Received R0 R0 R0
Subtotal Cash Received R3,100,000 R3,410,000 R3,751,000
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending R620,000 R854,000 R891,400
Bill Payments R1,173,029 R1,448,269 R1,509,906
Subtotal Spent on Operations R1,793,029 R2,302,269 R2,401,306
Addit ional Cash Spen t
Sales Tax, VAT, HST/GST Paid Out R0 R0 R0
Principal Repayment of Current Borrowing R0 R0 R0
Other Liabil ities Principal Repayment R0 R0 R0
Long-term Liabili ties Principal Repayment R0 R0 R0
Purchase Other Current Assets R0 R0 R0
Purchase Long-term Assets R0 R0 R0
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7.6 Projected Balance Sheet
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Table: Balance Sheet
Pro Forma Bal ance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash R2,656,971 R3,764,702 R5,114,396
Other Current Assets R10,000 R10,000 R10,000
Total Current Assets R2,666,971 R3,774,702 R5,124,396
Long-term Assets
Long-term Assets R70,000 R70,000 R70,000
Accumulated Deprecia tion R0 R0 R0
Total Long-term Assets R70,000 R70,000 R70,000
Total Assets R2,736,971 R3,844,702 R5,194,396
Liabili ties and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payab le R161,071 R115,272 R124,893
Current Borrowing R0 R0 R0
Other Current Liabili ties R0 R0 R0
Subtotal Current Liabil ities R161,071 R115,272 R124,893
Long-term Liabili ties R1,500,000 R1,500,000 R1,500,000
Total Liabili ties R1,661,071 R1,615,272 R1,624,893
Paid-in Capital R0 R0 R0
Retained Earnings (R70,000) R1,075,900 R2,229,430
Earnings R1,145,900 R1,153,530 R1,340,073
Total Capital R1,075,900 R2,229,430 R3,569,503
Total Liabili ties and Capital R2,736,971 R3,844,702 R5,194,396
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Table: Ratios
Ratio Anal ysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 10.00% 10.00% 0.00%
Percent of Total Assets
Other Current Assets 0.37% 0.26% 0.19% 100.00%
Total Current Assets 97.44% 98.18% 98.65% 100.00%
Long-term Assets 2.56% 1.82% 1.35% 0.00%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabil i ties 5.89% 3.00% 2.40% 0.00%
Long-term Liabili ties 54.81% 39.01% 28.88% 0.00%
Total Liabili ties 60.69% 42.01% 31.28% 0.00%
Net Worth 39.31% 57.99% 68.72% 100.00%
Percent of Sal es
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 80.65% 81.52% 82.36% 0.00%
Selling, General & Administrative Expenses 43.68% 47.70% 46.64% 0.00%
Advertising Expenses 0.00% 0.00% 0.00% 0.00%
Profit Before Interest and Taxes 57.65% 52.72% 55.04% 0.00%
Main Ratios
Current 16.56 32.75 41.03 0.00
Quick 16.56 32.75 41.03 0.00
Total Debt to Total Assets 60.69% 42.01% 31.28% 0.00%
Pre-tax Return on Net Worth 152.15% 73.92% 53.63% 0.00%
Pre-tax Return on Assets 59.81% 42.86% 36.85% 0.00%
Addit ional Ratios Year 1 Year 2 Year 3
Net Profit Margin 36.96% 33.83% 35.73% n.a
Return on Equity 106.51% 51.74% 37.54% n.a
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Appendix
Page 1
Table: Sales Forecast
Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
Ekoki Car Sharing Platform R0 R0 R100,000 R150,000 R200,000 R250,000 R250,000 R250,000 R250,000 R250,000 R250,000 R250,000Ekoki Software 2 R0 R0 R0 R0 R0 R0 R150,000 R150,000 R150,000 R150,000 R150,000 R150,000
Total Sales R0 R0 R100,000 R150,000 R200,000 R250,000 R400,000 R400,000 R400,000 R400,000 R400,000 R400,000
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Market research R10,000 R10,000 R20,000 R20,000 R20,000 R20,000 R50,000 R50,000 R50,000 R50,000 R50,000 R50,000
Product Development R0 R0 R0 R15,000 R15,000 R20,000 R25,000 R25,000 R25,000 R25,000 R25,000 R25,000
Subtotal Direct Cost of Sales R10,000 R10,000 R20,000 R35,000 R35,000 R40,000 R75,000 R75,000 R75,000 R75,000 R75,000 R75,000
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Appendix
Page 2
Table: Personnel
Personnel Plan
Mon th 1 Mo nth 2 Mo nth 3 Month 4 Month 5 Mon th 6 Mon th 7 Mon th 8 Mon th 9 Month 10 Month 11 Month 12
Administration (Dire ctor) R0 R0 R0 R0 R0 R20,000 R20,000 R20,000 R20,000 R20,000 R20,000 R20,000
Sales & marketing (Director) R0 R0 R0 R0 R0 R20,000 R20,000 R20,000 R20,000 R20,000 R20,000 R20,000IT Expert R15,000 R15,000 R15,000 R15,000 R15,000 R15,000 R15,000 R15,000 R15,000 R15,000 R15,000 R15,000
Call Center Agents (X4) R0 R0 R0 R0 R20,000 R20,000 R20,000 R20,000 R20,000 R20,000 R20,000 R20,000
Total People 0 0 0 0 0 0 0 0 0 0 0 0
Total Payroll R15,000 R15,000 R15,000 R15,000 R35,000 R75,000 R75,000 R75,000 R75,000 R75,000 R75,000 R75,000
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Appendix
Page 3
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
Sales R0 R0 R100,000 R150,000 R200,000 R250,000 R400,000 R400,000 R400,000 R400,000 R400,000 R400,000
Direct Cost of Sales R10,000 R10,000 R20,000 R35,000 R35,000 R40,000 R75,000 R75,000 R75,000 R75,000 R75,000 R75,000Other Costs of Sales R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Total Cost of Sales R10,000 R10,000 R20,000 R35,000 R35,000 R40,000 R75,000 R75,000 R75,000 R75,000 R75,000 R75,000
Gross Margin (R10,000) (R10,000) R80,000 R115,000 R165,000 R210,000 R325,000 R325,000 R325,000 R325,000 R325,000 R325,000
Gross Margin % 0.00% 0.00% 80.00% 76.67% 82.50% 84.00% 81.25% 81.25% 81.25% 81.25% 81.25% 81.25%
Expenses
Payroll R15,000 R15,000 R15,000 R15,000 R35,000 R75,000 R75,000 R75,000 R75,000 R75,000 R75,000 R75,000
Marketing/Promotion R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Depreciation R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Rent R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0Utilities R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Insurance R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Payroll Taxes 15% R2,250 R2,250 R2,250 R2,250 R5,250 R11,250 R11,250 R11,250 R11,250 R11,250 R11,250 R11,250
Other R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Total Operating Ex penses R17,250 R17,250 R17,250 R17,250 R40,250 R86,250 R86,250 R86,250 R86,250 R86,250 R86,250 R86,250
Pro fit Be fo re Interest a nd Ta xes (R2 7,25 0) (R27 ,2 50) R6 2,75 0 R97 ,7 50 R1 24,7 50 R1 23,750 R2 38,75 0 R2 38 ,7 50 R2 38 ,7 50 R2 38 ,7 50 R2 38 ,7 50 R2 38,7 50
EBITDA (R27,250) (R27,250) R62,750 R97,750 R124,750 R123,750 R238,750 R238,750 R238,750 R238,750 R238,750 R238,750
Interest Expense R12,500 R12,500 R12,500 R12,500 R12,500 R12,500 R12,500 R12,500 R12,500 R12,500 R12,500 R12,500
Taxes Incurred (R11,925) (R11,925) R15,075 R25,575 R33,675 R33,375 R67,875 R67,875 R67,875 R67,875 R67,875 R67,875
Net Profit (R27,825) (R27,825) R35,175 R59,675 R78,575 R77,875 R158,375 R158,375 R158,375 R158,375 R158,375 R158,375
Net Profit/Sales 0.00% 0.00% 35.17% 39.78% 39.29% 31.15% 39.59% 39.59% 39.59% 39.59% 39.59% 39.59%
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Appendix
Page 4
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
Cash Received
Cash from Operations
Cash Sales R0 R0 R100,000 R150,000 R200,000 R250,000 R400,000 R400,000 R400,000 R400,000 R400,000 R400,000
Subtotal Cash from Operations R0 R0 R100,000 R150,000 R200,000 R250,000 R400,000 R400,000 R400,000 R400,000 R400,000 R400,000
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
New Current Borrowing R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
New Other Liabilities (interest-free) R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
New Long-term Liabilities R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Sales of Other Current Assets R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Sales of Long-term Assets R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
New Investment Received R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Subtotal Cash Received R0 R0 R100,000 R150,000 R200,000 R250,000 R400,000 R400,000 R400,000 R400,000 R400,000 R400,000
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending R15,000 R15,000 R15,000 R15,000 R35,000 R75,000 R75,000 R75,000 R75,000 R75,000 R75,000 R75,000
Bill Payments R428 R12,825 R14,058 R50,675 R75,695 R86,782 R99,442 R166,625 R166,625 R166,625 R166,625 R166,625
Subtotal Spent on Operations R15,428 R27,825 R29,058 R65,675 R110,695 R161,782 R174,442 R241,625 R241,625 R241,625 R241,625 R241,625
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Principal Repayment of Current Borrowing R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Other Liabilities Principal Repayment R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Long-term Liabilities Principal Repayment R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Purchase Other Current Assets R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Purchase Long-term Assets R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Dividends R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Subtotal Cash Spent R15,428 R27,825 R29,058 R65,675 R110,695 R161,782 R174,442 R241,625 R241,625 R241,625 R241,625 R241,625
Net Cash Flow (R15,428) (R27,825) R70,942 R84,325 R89,305 R88,218 R225,558 R158,375 R158,375 R158,375 R158,375 R158,375
Ca sh Ba la nce R1 ,3 34 ,5 73 R1 ,3 06 ,7 48 R1 ,3 77 ,6 89 R1 ,4 62 ,0 14 R1 ,5 51 ,3 19 R1 ,6 39 ,5 38 R1 ,8 65 ,0 96 R2 ,0 23 ,4 71 R2 ,1 81 ,8 46 R2 ,3 40 ,2 21 R2 ,4 98 ,5 96 R2 ,6 56 ,9 71
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Appendix
Page 5
Table: Balance Sheet
Pro Forma Balance Sheet
Mon th 1 Mo nth 2 Mo nth 3 Month 4 Month 5 Mon th 6 Mon th 7 Mon th 8 Mon th 9 Month 10 Month 11 Month 12
Assets Starting Balances
Curren t Assets
Ca sh R1 ,3 50 ,0 00 R1 ,3 34 ,5 73 R1 ,3 06 ,7 48 R1 ,3 77 ,6 89 R1 ,4 62 ,0 14 R1 ,5 51 ,3 19 R1 ,6 39 ,5 38 R1 ,8 65 ,0 96 R2 ,0 23 ,4 71 R2 ,1 81 ,8 46 R2 ,3 40 ,2 21 R2 ,4 98 ,5 96 R2 ,6 56 ,9 71
Other Current Assets R10,000 R10,000 R10,000 R10,000 R10,000 R10,000 R10,000 R10,000 R10,000 R10,000 R10,000 R10,000 R10,000
Total Current Assets R1,360,000 R1,344,573 R1,316,748 R1,387,689 R1,472,014 R1,561,319 R1,649,538 R1,875,096 R2,033,471 R2,191,846 R2,350,221 R2,508,596 R2,666,971
Long -term Assets
Long-term Assets R70,000 R70,000 R70,000 R70,000 R70,000 R70,000 R70,000 R70,000 R70,000 R70,000 R70,000 R70,000 R70,000
Accumulated Depr eciation R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Total Long-term Assets R70,000 R70,000 R70,000 R70,000 R70,000 R70,000 R70,000 R70,000 R70,000 R70,000 R70,000 R70,000 R70,000
T ota l As se ts R1 ,4 30 ,0 00 R 1 ,4 14 ,5 73 R1 ,3 86 ,7 48 R 1,4 57 ,6 89 R1 ,5 42 ,0 14 R 1,6 31 ,3 19 R 1 ,7 19 ,5 38 R 1,9 45 ,0 96 R 2 ,1 03 ,4 71 R 2,2 61 ,8 46 R 2,4 20 ,2 21 R 2,5 78 ,5 96 R 2,7 36 ,9 71
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable R0 R12,398 R12,398 R48,164 R72,814 R83,544 R93,887 R161,071 R161,071 R161,071 R161,071 R161,071 R161,071
Current Borrowing R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Other Current Liabilities R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Subtotal Current Liabilities R0 R12,398 R12,398 R48,164 R72,814 R83,544 R93,887 R161,071 R161,071 R161,071 R161,071 R161,071 R161,071
Long- term L iab il it ies R1,500,000 R1,500,000 R1,500,000 R1,500,000 R1,500,000 R1,500,000 R1,500,000 R1,500,000 R1,500,000 R1,500,000 R1,500,000 R1,500,000 R1,500,000
T ota l L ia bil it ie s R1 ,5 00 ,0 00 R 1,5 12 ,3 98 R1 ,5 12 ,3 98 R 1 ,5 48 ,1 64 R1 ,5 72 ,8 14 R 1 ,5 83 ,5 44 R1 ,5 93 ,8 88 R 1 ,6 61 ,0 71 R 1,6 61 ,0 71 R 1 ,6 61 ,0 71 R 1 ,6 61 ,0 71 R 1 ,6 61 ,0 71 R 1 ,6 61 ,0 71
Paid-in Capital R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Re ta in ed Ea rn in gs ( R7 0,0 00 ) ( R7 0,0 00 ) ( R7 0,0 00 ) ( R7 0,0 00 ) (R7 0,0 00 ) (R7 0,0 00 ) ( R7 0,0 00 ) ( R7 0,0 00 ) ( R7 0,0 00 ) ( R7 0,0 00 ) ( R7 0,0 00 ) ( R7 0,0 00 ) ( R7 0,0 00 )
Earnings R0 ( R27,825) ( R55,650) (R20,475) R39,200 R117,775 R195,650 R354,025 R512,400 R 670,775 R829,150 R987,525 R1,145,900
Total Capital (R7 0,000 ) (R9 7,825 ) (R1 25,65 0) (R9 0,47 5) (R30 ,8 00) R4 7,77 5 R1 25 ,6 50 R2 84 ,0 25 R44 2,400 R60 0,775 R7 59,1 50 R9 17,5 25 R1,07 5,9 00
Total L iab il it ies and Capital R1,430,000 R1,414,573 R1,386,748 R1,457,689 R1,542,014 R1,631,319 R1,719,538 R1,945,096 R2,103,471 R2,261,846 R2,420,221 R2,578,596 R2,736,971
Net Worth (R70,000) (R97,825) (R125,650) (R90,475) (R30,800) R47,775 R125,650 R284,025 R442,400 R600,775 R759,150 R917,525 R1,075,900
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