just in seafood market

January 2002

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1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.2 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.3 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2.0 Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.1 Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.2 Company History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.3 Company Locations and Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

3.0 Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

4.0 Market Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44.1 Market Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

5.0 Strategy and Implementation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55.1 Competitive Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65.2 Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

5.2.1 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

6.0 Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86.1 Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

7.0 Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97.1 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97.2 Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107.3 Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117.4 Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137.5 Business Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Table of Contents

1.0 Executive Summary

Justin Seafood Market has been providing customers with the finest quality seafood for five years. The business is primarily wholesale to area restaurants. We purchase seafood directly from local fishermen and contacts all along the Florida panhandle. This allows us to pick from the finest selection of seafood available anywhere. Currently, we sell to over sixty restaurants. This a 10% increase over last year and we estimate that we will have additional restaurants as customers next year.

Justin Seafood Market plans to expand our storefront and sell direct to the public. In our expanded market, we will bring our commitment of quality, freshness and great prices to the public. By purchasing in large quantities we are able to pass the savings on to our customer.

The planned renovation will cost $150,000. Additional service staff will be hired to assist customers. Bill Justin, owner of Justin Seafood Market, will invest $50,000 in the expansion and also secure a $100,000 short-term loan.

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

2002 2003 2004

Sales

Gross Margin

Net Profit

Highlights (Planned)

1.1 Objectives

• Establish Justin Seafood Market as the leader in selling fresh seafood to the public. • Increase the number of customers buying from Justin Seafood Market by 10% over the

next two years.• Establish a Seafood Discount Club for customers that will build customer loyalty.

Justin Seafood Market

Page 1

1.2 Mission

The mission of Justin Seafood Market is to offer customers the best seafood prices on the highest quality seafood.

1.3 Keys to Success

• Superior products will promote customer loyalty.• A location that will assure walk-in traffic.• A program that will create customer loyalty.

2.0 Company Summary

Justin Seafood Market is primarily a wholesaler to area restaurants. Bill Justin, owner of Justin Seafood Market, has utilized his wholesale background, his experience in the restaurant industry, and his contacts with the area's fishermen to build a loyal customer base.

Bill wants to open a seafood market to the public by renovating the building's storefront to accommodate the public.

2.1 Company Ownership

Bill Justin is the owner of Justin Seafood Market.

2.2 Company History

Bill Justin started Justin Seafood Market in 1996 in response to the dramatic growth of the Florida panhandle. Over the past five years, the population has increased by 30% in communities along the panhandle. But most importantly, tourists have returned to the area. In 2000, tourists spent over 400 million dollars with panhandle businesses. A significant portion of those sales were with the area's loyalty. Currently, there are over 1,350 restaurants but that number grows by 15% annually.

Against this backdrop of growth, Bill Justin launched his market. Starting with ten customers in 1996, Justin Seafood Market now serves sixty restaurants.


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Table: Past Performance

Past Performance1999 2000 2001

Sales $560,000 $644,000 $710,600Gross Margin $270,000 $320,000 $350,000Gross Margin % 48.21% 49.69% 49.25%Operating Expenses $150,000 $170,000 $190,000Collection Period (Days) 0 0 0Inventory Turnover 0.00 0.00 0.00

Balance SheetShort-term Assets 1999 2000 2001Cash $40,000 $50,000 $50,000Accounts Receivable $0 $0 $0Inventory $0 $0 $0Other Short-term Assets $20,000 $30,000 $50,000Total Short-term Assets $60,000 $80,000 $100,000Long-term AssetsCapital Assets $80,000 $80,000 $80,000Accumulated Depreciation $5,000 $10,000 $15,000Total Long-term Assets $75,000 $70,000 $65,000Total Assets $135,000 $150,000 $165,000

Capital and Liabilities1999 2000 2001

Accounts Payable $10,000 $12,000 $20,000Current Borrowing $0 $0 $0Other Short-term Liabilities $0 $0 $0Subtotal Short-term Liabilities $10,000 $12,000 $20,000

Long-term Liabilities $30,000 $20,000 $20,000Total Liabilities $40,000 $32,000 $40,000Paid-in Capital $0 $0 $50,000Retained Earnings $95,000 $118,000 $75,000Earnings $0 $0 $0Total Capital $95,000 $118,000 $125,000Total Capital and Liabilities $135,000 $150,000 $165,000

Other Inputs 1999 2000 2001Payment Days 0 0 0Sales on Credit $0 $0 $0Receivables Turnover 0.00 0.00 0.00

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$100,000

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$300,000

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1999 2000 2001

Sales

Gross

Net

Past Performance


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2.3 Company Locations and Facilities

Justin Seafood Market is located at 3456 Main Street, Tallahassee, Florida. After renovation, the market will have an additional 5,000 ft. of floor space that will be used for the new retail operation.

3.0 Products

Justin Seafood Market currently provides numerous seafood products to restaurants in the Florida panhandle. The market's new public retail outlet will focus on popular seafood selections that will bring customers into the store.

Justin Seafood Market will have the following retail products:

• Jumbo Fresh Gulf Shrimp;• Alaskan King Crab;• Florida Lobster;• Sea Scallops;• Fresh Gulf Fish Filets;• Yellowfin Tuna;• Grouper;• Snapper;• Amberjack.

4.0 Market Analysis Summary

Tallahassee has a population of over 160,000 residents but the area receives thousands of day tourists each year. Justin Seafood Market is located in the busiest commercial section of Tallahassee with excellent foot traffic. Expanding the market's storefront by 5,000 ft. will create an inviting environment for the public. The market's interior design will focus on the motif of an open air fish market. We will advertise the market as a place where the public can get quality seafood at wholesale prices.


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4.1 Market Segmentation

Justin Seafood Market is focused on two customer groups:

• Urban professional working downtown.• Day tourists.

Table: Market Analysis

Market AnalysisPotential Customers Growth 2002 2003 2004 2005 2006 CAGRUrban Professionals 10% 30,000 33,000 36,300 39,930 43,923 10.00%Day Tourists 0% 60,000 60,000 60,000 60,000 60,000 0.00%Total 3.66% 90,000 93,000 96,300 99,930 103,923 3.66%

Urban Professionals

Day Tourists

Market Analysis (Pie)

5.0 Strategy and Implementation Summary

Justin Seafood Market will expand its storefront and sell direct to the public. The market is known as a wholesale operation and we will use that identity to advertise the new service to the public. We will ask the public "Why pay retail when you can get better quality at wholesale prices!" Additional staff will be hired to serve the public.


Page 5

5.1 Competitive Edge

The competitive edge of Justin Seafood Market is the market's commitment of quality, freshness and great prices. The market's location also assures excellent tourist and resident foot traffic.

5.2 Sales Strategy

Justin Seafood Market will employ two sales approaches for its target customers.

• For Urban Professional: The market will promote membership in its Seafood Discount Club. Residents will be encouraged to join for $20 a year. As a member, all purchases will be discounted $1 per pound. This will result in considerable saving for members who shop regularly at the market.

• For the Day Tourist: The market will offer free 24-hour shipping of purchases in excess of $100. The customer will be able to select the day the seafood will be shipped. The customers will then receive a regular newsletter that will include an invitation to purchase seafood again with same free shipping option.

5.2.1 Sales Forecast

The following is the sales forecast for three years.

Table: Sales Forecast (Planned)

Sales ForecastSales 2002 2003 2004Over-counter $334,000 $350,000 $380,000Shipped $122,000 $140,000 $155,000Restaurant Deliveries $720,000 $800,000 $900,000Total Sales $1,176,000 $1,290,000 $1,435,000

Direct Cost of Sales 2002 2003 2004Over-counter $166,500 $173,000 $188,000Shipped $64,100 $74,000 $81,000Restaurant Deliveries $359,000 $409,000 $459,000Subtotal Direct Cost of Sales $589,600 $656,000 $728,000


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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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Shipped

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Sales Monthly (Planned)

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2002 2003 2004

Over-counter

Shipped

Restaurant Deliveries

Sales by Year (Planned)


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6.0 Management Summary

Prior to beginning Justin Seafood Market, Bill Justin worked as an account manager for William's Wholesale Foods and Wilson Seafood for ten years. In his last position with Wilson Seafood, Bill developed an excellent network of fishing contacts in the Florida panhandle, generating sales in excess of $2 million annually. His strength has always been his customer relation skills.

Bill Justin has a BA in marketing from Florida State University. His first position after graduation was as a shift manager with Johnson Seafood Restaurant. In three years, he was promoted to the manager position. During that time, Bill demonstrated the ability to effectively manage a large staff.

6.1 Personnel Plan

The personnel for Justin Seafood Market is as follows:

• Manager;• Market staff (4);• Delivery crew (4);• Sales staff (4);• Cleanup crew (2);

Table: Personnel (Planned)

Personnel Plan2002 2003 2004

Manager $36,000 $38,000 $40,000Market Staff (4) $84,000 $90,000 $96,000Clean-up Crew (2) $45,600 $47,000 $49,000Delivery Staff (4) $96,000 $102,000 $108,000Sales Staff (4) $120,000 $130,000 $140,000Total Payroll $381,600 $407,000 $433,000

Total People 15 15 15Payroll Burden $57,240 $61,050 $64,950Total Payroll Expenditures $438,840 $468,050 $497,950


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7.0 Financial Plan

The following is the financial plan for expansion of Justin Seafood Market to include a new retail market space.

7.1 Break-even Analysis

The monthly break-even point is $85,740.

Table: Break-even Analysis

Break-even Analysis:Monthly Units Break-even 429Monthly Sales Break-even $85,740

Assumptions:Average Per-Unit Revenue 200Average Per-Unit Variable Cost 100Estimated Monthly Fixed Cost 42,870

($60,000)

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$0 $28,000 $56,000 $84,000 $112,000 $140,000

Monthly break-even point

Break-even point = where line intersects with 0

Break-even Analysis


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7.2 Projected Profit and Loss

The following table and charts highlight the projected profit and loss for three years.

Table: Profit and Loss (Planned)

Pro Forma Profit and Loss2002 2003 2004

Sales $1,176,000 $1,290,000 $1,435,000Direct Cost of Sales $589,600 $656,000 $728,000Other Production Expenses $0 $0 $0

------------ ------------ ------------Total Cost of Sales $589,600 $656,000 $728,000Gross Margin $586,400 $634,000 $707,000Gross Margin % 49.86% 49.15% 49.27%Operating Expenses: Advertising/Promotion $12,000 $15,000 $20,000Travel $12,000 $15,000 $20,000Miscellaneous $0 $0 $0Payroll Expense $381,600 $407,000 $433,000Payroll Burden $57,240 $61,050 $64,950Depreciation $9,600 $9,600 $9,600Leased Equipment $0 $0 $0Utilities $6,000 $6,000 $6,000Insurance $0 $0 $0Rent $36,000 $36,000 $36,000Contract/Consultants $0 $0 $0

------------ ------------ ------------Total Operating Expenses $514,440 $549,650 $589,550Profit Before Interest and Taxes $71,960 $84,350 $117,450Interest Expense Short-term $8,830 $7,840 $7,840Interest Expense Long-term $2,000 $920 ($1,240)Taxes Incurred $18,339 $22,677 $33,255Extraordinary Items $0 $0 $0Net Profit $42,791 $52,913 $77,595Net Profit/Sales 3.64% 4.10% 5.41%

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Profit Monthly (Planned)


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Profit Yearly (Planned)

7.3 Projected Cash Flow

The following table and chart highlight the projected cash flow for three years.


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Table: Cash Flow (Planned)

Pro Forma Cash Flow 2002 2003 2004

Cash ReceivedCash from Operations: Cash Sales $705,600 $774,000 $861,000From Receivables $397,600 $508,943 $565,024 Subtotal Cash from Operations $1,103,200 $1,282,943 $1,426,024

Additional Cash ReceivedExtraordinary Items $0 $0 $0Sales Tax, VAT, HST/GST Received $0 $0 $0New Current Borrowing $100,000 $0 $0New Other Liabilities (interest-free) $0 $0 $0New Long-term Liabilities $0 $0 $0Sales of other Short-term Assets $0 $0 $0Sales of Long-term Assets $0 $0 $0New Investment Received $0 $0 $0 Subtotal Cash Received $1,203,200 $1,282,943 $1,426,024

Expenditures 2002 2003 2004Expenditures from Operations:Cash Spent on Costs and Expenses $69,838 $76,097 $85,152Wages, Salaries, Payroll Taxes, etc. $438,840 $468,050 $497,950Payment of Accounts Payable $582,420 $678,946 $757,792 Subtotal Spent on Operations $1,091,097 $1,223,093 $1,340,894

Additional Cash SpentSales Tax, VAT, HST/GST Paid Out $0 $0 $0Principal Repayment of Current Borrowing $21,600 $0 $0Other Liabilities Principal Repayment $0 $0 $0Long-term Liabilities Principal Repayment $0 $21,600 $21,600Purchase Other Short-term Assets $0 $0 $0Purchase Long-term Assets $0 $0 $0Dividends $0 $0 $0 Adjustment for Assets Purchased on Credit $0 $0 $0 Subtotal Cash Spent $1,112,697 $1,244,693 $1,362,494

Net Cash Flow $90,503 $38,249 $63,530Cash Balance $140,503 $178,752 $242,282

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$160,000


Net Cash Flow

Cash Balance

Cash (Planned)


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7.4 Projected Balance Sheet

The following table highlights the projected balance sheet for three years.

Table: Balance Sheet (Planned)

Pro Forma Balance Sheet

AssetsShort-term Assets 2002 2003 2004Cash $140,503 $178,752 $242,282Accounts Receivable $72,800 $79,857 $88,833Inventory $13,607 $15,140 $16,801Other Short-term Assets $50,000 $50,000 $50,000Total Short-term Assets $276,910 $323,749 $397,916Long-term AssetsLong-term Assets $80,000 $80,000 $80,000Accumulated Depreciation $24,600 $34,200 $43,800Total Long-term Assets $55,400 $45,800 $36,200Total Assets $332,310 $369,549 $434,116

Liabilities and Capital2002 2003 2004

Accounts Payable $66,119 $72,045 $80,617Current Borrowing $78,400 $78,400 $78,400Other Short-term Liabilities $0 $0 $0Subtotal Short-term Liabilities $144,519 $150,445 $159,017

Long-term Liabilities $20,000 ($1,600) ($23,200)Total Liabilities $164,519 $148,845 $135,817

Paid-in Capital $50,000 $50,000 $50,000Retained Earnings $75,000 $117,791 $170,704Earnings $42,791 $52,913 $77,595Total Capital $167,791 $220,704 $298,299Total Liabilities and Capital $332,310 $369,549 $434,116Net Worth $167,791 $220,704 $298,299

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5146, Fish and Seafood, are shown for comparison.


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Table: Ratios (Planned)

Ratio Analysis2002 2003 2004 Industry Profile

Sales Growth 65.49% 9.69% 11.24% 4.60%

Percent of Total AssetsAccounts Receivable 21.91% 21.61% 20.46% 33.30%Inventory 4.09% 4.10% 3.87% 25.40%Other Short-term Assets 15.05% 13.53% 11.52% 24.00%Total Short-term Assets 83.33% 87.61% 91.66% 82.70%Long-term Assets 16.67% 12.39% 8.34% 17.30%Total Assets 100.00% 100.00% 100.00% 100.00%

Short-term Liabilities 43.49% 40.71% 36.63% 47.70%Long-term Liabilities 6.02% -0.43% -5.34% 10.10%Total Liabilities 49.51% 40.28% 31.29% 57.80%Net Worth 50.49% 59.72% 68.71% 42.20%

Percent of SalesSales 100.00% 100.00% 100.00% 100.00%Gross Margin 49.86% 49.15% 49.27% 14.20%Selling, General & Administrative Expenses 46.23% 45.05% 43.86% 9.00%Advertising Expenses 1.02% 1.16% 1.39% 0.30%Profit Before Interest and Taxes 6.12% 6.54% 8.18% 0.80%

Main RatiosCurrent 1.92 2.15 2.50 1.64Quick 1.82 2.05 2.40 0.97Total Debt to Total Assets 49.51% 40.28% 31.29% 57.80%Pre-tax Return on Assets 24.91% 25.20% 28.58% 3.60%Pre-tax Return on Net Worth 49.34% 42.19% 41.59% 8.40%

Business Vitality Profile 2002 2003 2004 IndustrySales per Employee $78,400 $86,000 $95,667 $0Survival Rate 0.00%

Additional Ratios 2002 2003 2004Net Profit Margin 3.64% 4.10% 5.41% n.aReturn on Equity 25.50% 23.97% 26.01% n.a

Activity RatiosAccounts Receivable Turnover 6.46 6.46 6.46 n.aCollection Days 28 54 54 n.aInventory Turnover 86.66 45.64 45.58 n.aAccounts Payable Turnover 9.51 9.51 9.51 n.aTotal Asset Turnover 3.54 3.49 3.31 n.a

Debt RatiosDebt to Net Worth 0.98 0.67 0.46 n.aShort-term Liab. to Liab. 0.88 1.01 1.17 n.a

Liquidity RatiosNet Working Capital $132,391 $173,304 $238,899 n.aInterest Coverage 6.64 9.63 17.80 n.a

Additional RatiosAssets to Sales 0.28 0.29 0.30 n.aCurrent Debt/Total Assets 43% 41% 37% n.aAcid Test 1.32 1.52 1.84 n.aSales/Net Worth 7.01 5.84 4.81 n.aDividend Payout $0 0.00 0.00 n.a


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Appendix Table: Sales Forecast (Planned)

Sales ForecastSales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecOver-counter $10,000 $10,000 $16,000 $16,000 $21,000 $26,000 $30,000 $40,000 $45,000 $40,000 $40,000 $40,000Shipped $2,000 $3,000 $5,000 $7,000 $9,000 $11,000 $14,000 $15,000 $17,000 $13,000 $10,000 $16,000Restaurant Deliveries $30,000 $30,000 $50,000 $55,000 $55,000 $60,000 $70,000 $80,000 $80,000 $70,000 $70,000 $70,000Total Sales $42,000 $43,000 $71,000 $78,000 $85,000 $97,000 $114,000 $135,000 $142,000 $123,000 $120,000 $126,000

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecOver-counter $5,000 $5,000 $8,000 $8,000 $10,000 $13,000 $15,000 $20,000 $22,500 $20,000 $20,000 $20,000Shipped $1,100 $1,600 $2,600 $3,800 $4,500 $5,500 $7,500 $8,000 $8,500 $6,500 $6,000 $8,500Restaurant Deliveries $15,000 $15,000 $25,000 $27,000 $27,000 $30,000 $35,000 $40,000 $40,000 $35,000 $35,000 $35,000Subtotal Direct Cost of Sales $21,100 $21,600 $35,600 $38,800 $41,500 $48,500 $57,500 $68,000 $71,000 $61,500 $61,000 $63,500

Appendix

Page 1

Appendix Table: Personnel (Planned)

Personnel PlanJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Manager $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000Market Staff (4) $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000Clean-up Crew (2) $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800Delivery Staff (4) $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000Sales Staff (4) $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000Total Payroll $31,800 $31,800 $31,800 $31,800 $31,800 $31,800 $31,800 $31,800 $31,800 $31,800 $31,800 $31,800

Total People 15 15 15 15 15 15 15 15 15 15 15 15Payroll Burden $4,770 $4,770 $4,770 $4,770 $4,770 $4,770 $4,770 $4,770 $4,770 $4,770 $4,770 $4,770Total Payroll Expenditures $36,570 $36,570 $36,570 $36,570 $36,570 $36,570 $36,570 $36,570 $36,570 $36,570 $36,570 $36,570

Appendix

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Appendix Table: Profit and Loss (Planned)

Pro Forma Profit and LossJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Sales $42,000 $43,000 $71,000 $78,000 $85,000 $97,000 $114,000 $135,000 $142,000 $123,000 $120,000 $126,000Direct Cost of Sales $21,100 $21,600 $35,600 $38,800 $41,500 $48,500 $57,500 $68,000 $71,000 $61,500 $61,000 $63,500Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------Total Cost of Sales $21,100 $21,600 $35,600 $38,800 $41,500 $48,500 $57,500 $68,000 $71,000 $61,500 $61,000 $63,500Gross Margin $20,900 $21,400 $35,400 $39,200 $43,500 $48,500 $56,500 $67,000 $71,000 $61,500 $59,000 $62,500Gross Margin % 49.76% 49.77% 49.86% 50.26% 51.18% 50.00% 49.56% 49.63% 50.00% 50.00% 49.17% 49.60%Operating Expenses: Advertising/Promotion $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000Travel $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000Miscellaneous $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Payroll Expense $31,800 $31,800 $31,800 $31,800 $31,800 $31,800 $31,800 $31,800 $31,800 $31,800 $31,800 $31,800Payroll Burden $4,770 $4,770 $4,770 $4,770 $4,770 $4,770 $4,770 $4,770 $4,770 $4,770 $4,770 $4,770Depreciation $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Utilities $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Rent $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000Contract/Consultants $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------Total Operating Expenses $42,870 $42,870 $42,870 $42,870 $42,870 $42,870 $42,870 $42,870 $42,870 $42,870 $42,870 $42,870Profit Before Interest and Taxes ($21,970) ($21,470) ($7,470) ($3,670) $630 $5,630 $13,630 $24,130 $28,130 $18,630 $16,130 $19,630Interest Expense Short-term $818 $803 $788 $773 $758 $743 $728 $713 $698 $683 $668 $653Interest Expense Long-term $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167Taxes Incurred ($6,887) ($6,732) ($2,528) ($1,383) ($89) $1,416 $3,821 $6,975 $8,180 $5,334 $4,589 $5,643Extraordinary Items $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Net Profit ($16,069) ($15,708) ($5,898) ($3,227) ($207) $3,304 $8,915 $16,275 $19,086 $12,446 $10,707 $13,167Net Profit/Sales -38.26% -36.53% -8.31% -4.14% -0.24% 3.41% 7.82% 12.06% 13.44% 10.12% 8.92% 10.45%

Appendix

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Appendix Table: Cash Flow (Planned)

Pro Forma Cash Flow Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Cash ReceivedCash from Operations: Cash Sales $25,200 $25,800 $42,600 $46,800 $51,000 $58,200 $68,400 $81,000 $85,200 $73,800 $72,000 $75,600From Receivables $0 $8,960 $17,013 $23,173 $29,893 $32,693 $36,560 $42,427 $50,080 $55,493 $52,747 $48,560 Subtotal Cash from Operations $25,200 $34,760 $59,613 $69,973 $80,893 $90,893 $104,960 $123,427 $135,280 $129,293 $124,747 $124,160

Additional Cash ReceivedExtraordinary Items $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0New Current Borrowing $100,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Sales of other Short-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Cash Received $125,200 $34,760 $59,613 $69,973 $80,893 $90,893 $104,960 $123,427 $135,280 $129,293 $124,747 $124,160

Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecExpenditures from Operations:Cash Spent on Costs and Expenses $2,522 $2,145 $4,253 $4,454 $4,842 $5,783 $6,964 $8,361 $8,619 $7,115 $7,182 $7,600Wages, Salaries, Payroll Taxes, etc. $36,570 $36,570 $36,570 $36,570 $36,570 $36,570 $36,570 $36,570 $36,570 $36,570 $36,570 $36,570Payment of Accounts Payable $20,757 $22,585 $19,933 $38,335 $40,205 $43,856 $52,398 $63,098 $75,322 $77,117 $64,053 $64,760 Subtotal Spent on Operations $59,849 $61,299 $60,756 $79,359 $81,616 $86,208 $95,932 $108,029 $120,511 $120,802 $107,805 $108,930

Additional Cash SpentSales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Principal Repayment of Current Borrowing $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Purchase Other Short-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Adjustment for Assets Purchased on Credit $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Cash Spent $61,649 $63,099 $62,556 $81,159 $83,416 $88,008 $97,732 $109,829 $122,311 $122,602 $109,605 $110,730

Net Cash Flow $63,551 ($28,339) ($2,943) ($11,186) ($2,523) $2,885 $7,228 $13,598 $12,969 $6,691 $15,142 $13,430Cash Balance $113,551 $85,212 $82,270 $71,084 $68,561 $71,446 $78,673 $92,271 $105,240 $111,931 $127,073 $140,503

Appendix

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Appendix Table: Balance Sheet (Planned)

Pro Forma Balance Sheet

AssetsShort-term Assets Starting Balances Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecCash $50,000 $113,551 $85,212 $82,270 $71,084 $68,561 $71,446 $78,673 $92,271 $105,240 $111,931 $127,073 $140,503Accounts Receivable $0 $16,800 $25,040 $36,427 $44,453 $48,560 $54,667 $63,707 $75,280 $82,000 $75,707 $70,960 $72,800Inventory $0 $4,521 $4,629 $7,629 $8,314 $8,893 $10,393 $12,321 $14,571 $15,214 $13,179 $13,071 $13,607Other Short-term Assets $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000Total Short-term Assets $100,000 $184,873 $164,881 $176,325 $173,851 $176,014 $186,505 $204,701 $232,122 $252,455 $250,817 $261,104 $276,910Long-term AssetsLong-term Assets $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000Accumulated Depreciation $15,000 $15,800 $16,600 $17,400 $18,200 $19,000 $19,800 $20,600 $21,400 $22,200 $23,000 $23,800 $24,600Total Long-term Assets $65,000 $64,200 $63,400 $62,600 $61,800 $61,000 $60,200 $59,400 $58,600 $57,800 $57,000 $56,200 $55,400Total Assets $165,000 $249,073 $228,281 $238,925 $235,651 $237,014 $246,705 $264,101 $290,722 $310,255 $307,817 $317,304 $332,310

Liabilities and CapitalJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Accounts Payable $20,000 $21,941 $18,657 $36,999 $38,752 $42,121 $50,309 $60,590 $72,736 $74,983 $61,899 $62,480 $66,119Current Borrowing $0 $98,200 $96,400 $94,600 $92,800 $91,000 $89,200 $87,400 $85,600 $83,800 $82,000 $80,200 $78,400Other Short-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Subtotal Short-term Liabilities $20,000 $120,141 $115,057 $131,599 $131,552 $133,121 $139,509 $147,990 $158,336 $158,783 $143,899 $142,680 $144,519

Long-term Liabilities $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000Total Liabilities $40,000 $140,141 $135,057 $151,599 $151,552 $153,121 $159,509 $167,990 $178,336 $178,783 $163,899 $162,680 $164,519

Paid-in Capital $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000Retained Earnings $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000Earnings $0 ($16,069) ($31,777) ($37,674) ($40,901) ($41,108) ($37,804) ($28,889) ($12,614) $6,472 $18,918 $29,624 $42,791Total Capital $125,000 $108,932 $93,224 $87,326 $84,099 $83,893 $87,197 $96,111 $112,386 $131,472 $143,918 $154,624 $167,791Total Liabilities and Capital $165,000 $249,073 $228,281 $238,925 $235,651 $237,014 $246,705 $264,101 $290,722 $310,255 $307,817 $317,304 $332,310Net Worth $125,000 $108,932 $93,224 $87,326 $84,099 $83,893 $87,197 $96,111 $112,386 $131,472 $143,918 $154,624 $167,791

Appendix

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just in seafood market

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