Web viewSummary. Who We Are. Dalton Financial Group is a small accounting and tax preparation...

CONFIDENTIAL

Dalton Financial Group

Business PlanPrepared January 2016

Contact InformationTony Abdallah

[email protected]+61400669983

Level 8, 140 Queen StreetMelbourne, VIC 3000, Australia


Table of ContentsThe Business....................................................................................1

Details........................................................................................1

Key Personnel............................................................................2

Insurance...................................................................................3

Plant & Equipment....................................................................3

Other..........................................................................................3

Executive Summary.........................................................................5

Summary....................................................................................5

Objectives..................................................................................5

Mission......................................................................................6

Keys to Success.........................................................................6

Company..........................................................................................8

Company Overview.....................................................................8

Company Ownership..................................................................8

Company History.......................................................................8

Products and Services.....................................................................9

Products and Services...............................................................9

Target Market................................................................................11

Market Overview......................................................................11


Market Segmentation..............................................................11

Market Analysis.......................................................................12

Web Plan Summary..................................................................13

Strategy and Implementation........................................................16

Summary..................................................................................16

Competitive Edge.....................................................................16

Marketing Strategy..................................................................17

Sales Strategy..........................................................................17

Sales Forecast..........................................................................18

Management Strategy.............................................................18

Financial Plan................................................................................19

Revenue Forecast....................................................................19

Personnel Plan.........................................................................20

Budget.....................................................................................22

Starting Balances....................................................................25

Cash Flow Assumptions...........................................................26

Loans and Investments............................................................26

Financial Plan..........................................................................27

Cash Fixed Costs......................................................................28

Financial Statements.....................................................................30

Profit and Loss Statement.......................................................30


Balance Sheet..........................................................................34

Cash Flow Statement...............................................................36

Appendix........................................................................................39

Revenue Forecast....................................................................39

Personnel Plan.........................................................................41

Budget.....................................................................................42

Loans and Investments............................................................46

Profit and Loss Statement.......................................................48

Balance Sheet..........................................................................54

Cash Flow Statement...............................................................58

Blank........................................................................................61


The BusinessDetailsDetails

Business name: Dalton Financial Group

Business structure: Sole Trader

ABN: 27443017890

Business location: Level 8, 140 Queen Street Melbourne VIC 3000

Date established: 2010

Business owner(s): Tony Abdallah

Relevant owner experience: A passionate and astute Senior Professional (corporate accountant), I possess over 15 years of global industry experience, encompassing financial accounting & statement analysis, financial modelling, cash flow forecasting and project management, implementation of an ERP system, capitalising on a proactive approach, a passion for improving business processes and innovative thinking. I also run a part-time tax practice.

Products/services: The product and service I am selling are the following:

- Bookkeeping services

- Tax services

- Project work

- Capital & Asset Management services

Business premises

Business location: The business premises will be located in the Melbourne CBD and occupy of small office space.

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Buy/lease: There is no requirement for purchasing a building. The option is to lease a small office space.

Management & ownership

Names of owners: Tony Abdallah

Details of management & ownership: A full time bookkeeper will manage the day to day running of the business. My involvement will be to review the accounts up to trial balance monthly which includes profit & loss statement, balance sheet reconciliations and BAS statements and lodgement of tax returns.

Experience: My resume is attached as an Appendix.

Our Solution

Key PersonnelCurrent Staff:

Required Staff:

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InsuranceProfessional indemnity: Yes, I do have current professional indemnity insurance.

Business assets: No insurance on business assets currently, but it is included in the budget.

Plant & Equipment

OtherTrading hours: The trading hours are from 8:30am to 5:30pm. We are closed 4 weeks of the year which will be during the Chrostmas holidays (including the normal public holidays).

Communication channels: Our customers can contact us via: telephone (landline/mobile), post box, shopfront, email, and web site.

Payment types accepted: The payment types we accept are via direct debit.

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Executive SummarySummaryWho We Are

Dalton Financial Group is a small accounting and tax preparation service owned and run by Tony Abdallah, MIPA ASA NTAA in Melbourne Victoria, Fawkner. The firm offers tax accounting, management & financial accounting, QuickBooks, Xero and MYOB set-up and training for small business clients. To move beyond a small tax practice, the business will expand its services to include bookkeeping services for small businesses. This will require an investment in marketing and staff to grow the business to include this complementary line of business. This business plan organises the strategy and tactics for the business expansion and set objectives for growth over the next three to five years.

The business will offer clients bookkeeping services with the oversight of a MIPA at a price they can afford. To do this involves hiring a bookkeeper manager and an undergraduate part time student bookkeeper, keeping fixed costs as low as possible, and continuing to define the expertise of Dalton Financial Group through its website resources. The effect will be an increase in revenue over the next three to five years.

ObjectivesWhat We Sell

Dalton Financial Group seeks to launch a new line of services - small business bookkeeping has set the following objectives:

• To launch the bookkeeping services slowly, beginning with one full time bookkepper and one part time bookkeeper

• To achieve bookkeeping service annual revenues equal or greater to the current total revenues within three to five years (effectively doubling revenue)

• To achieve net profit of $60,000 in five years• To achieve cash savings of $30,000 in three years• To employ 1 full time & 1 part-time bookkeeper in the first year and

growing to 1 full time and 3 part-time

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MissionWho We Sell To

Dalton Financial Group seeks to provide a full suite of tax, management and consulting accounting services for small businesses in Fawkner (and branching out to other suburbs with the use of technology ie. web based accounting systesm) allowing business owners to not only save money over in-house accounting and ensure their compliance with tax laws, but to make valuable management decisions from their numbers.

Keys to SuccessFinancial Highlights

The keys to success for the bookkeeping business include:

• Building trust with clients• Maintaining up-to-date MIPA (and NTAA) certification and

education on accounting practices and laws• Going beyond saving clients money to proposing how they can

increase their revenues• Legal and ethical practices when it comes to transparency,

reporting, and taxes

Financial Highlights by Year

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CompanyCompany OverviewCompany Overview

Dalton Financial Group, established in 2010 by Tony Abdallah, is a sole trader MIPA firm which provides tax services, management and cost consulting services, and QuickBooks sales and added services. Dalton Financial Group serves in the Melbourne, Victoria primarily in iReturns. The Dalton Financial Group plans to add bookkeeping services to its suite of services to better serve its current and future clients. A future consideration is to add consulting services which will serve as capital/asset and project accounting work.

Company OwnershipCompany History

Tony Abdallah is founder and 100% owner of Dalton Financial Group, a sole proprietorship.

Company HistoryFounded with $5,000 of start-up capital by Tony Abdallah, MIPA in 2010 and ASA in 2003 and NTAA in 2010, The Dalton Financial Group has become a full-time endeavor for Fawkner. At first focused entirely on tax services, DFG added management and cost accounting services in 2007 and then QuickBooks reselling and services to small businesses and startups in 2008, after becoming a certified QuickBooks Pro Advisor. This has allowed DFG to provide a wide range of services to small businesses over its lifetime from launch through expansion and growth.

The business operates at a home base in Fawkner whereby the clients visit. This business is carried on a part time basis as I currently work full time as a corporate accountant.

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Products and ServicesProducts and ServicesCurrent services offered by DFG include:

Tax Services:

• Tax preparation• Tax planning• Addressing tax problems (audit representation, back taxes owed,

payroll tax problems)

Management/Cost Accountant Services:

• Audits• Cost and Margin Analysis• Financial Projection

QuickBooks / Xero / MYOB Services

• Setup of accounts• Training

New services provided by DFG.

The DFG intends to add the following bookkeeping services:

• Payroll processing• Accounts payable (entry, bill paying)• Accounts receivable (entry, invoicing, deposits, collection)• Bank reconciliations• Inventory management• Financial statement preparation• All financial reporting• Project accounting• Business Plans• Financial modelling• Capital Expenditure Reviews• Asset Management• Financial Planning• Loans

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• SMSF

These bookkeeping services will be at a rate of $70 to $100 per hour for clients.

The new services will be performed by part-time student bookkeepers who are current undergraduate accounting majors with up to 20 to 24 hours per week free to work.

The bookkeepers will be trained by DFG directly in proper techniques. They will all be students in the top 20% of their class with at least one professional recommendation and one educational (professor) recommendation.

To add additional value, the bookkeeping manager will supervise and audit the work of the bookkeepers, answering their questions when questions arise, and providing quality assurance. The bookkeeping manager will review the QuickBooks / Xero / MYOB files and reports created by the bookkeepers to ensure that they follow proper formats and are prepared correctly.

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Target MarketMarket OverviewAs businesses grow larger than one person sole proprietorship's, they generally require expert help with at least their tax preparation, and often with additional bookkeeping and accounting services. Even many non-employer sole proprietorship's will use accounting help at some point.

The National Society of Accountants states that it represents more than 30,000 independent practitioners who provide services to 10 million individuals and businesses. The continuing evolution of tax laws guarantees work for tax accountants on an ongoing basis. The market is somewhat recession-proof, as businesses which are contracting use accountants to help cut spending and limit tax liability just as growing businesses will use accountants to launch and prepare financials for expansion, mergers and acquisitions.

Market SegmentationThe market of small businesses in Melbourne Victoria Fawkner represents approximately 5,000 small businesses and across a 10KM radius it is approximately 20,000 small businesses. It has been divided into three groups:

Non-employer firms: Without employees, these firms do not have many of the concerns of larger businesses. However, the owners must be vigilant to protect their own tax liability and sort out how their personal and business tax returns intersect. These firms are generally buyers of QuickBooks / MYOB services and tax preparation services. As they grow, this group becomes ripe for outsourced bookkeeping services before they can hire a full-time in-house bookkeeper.

Very small businesses: Made up of businesses that are designed to stay small and those which are growing through a phase, these businesses require payroll services, bookkeeping, and tax preparation. They are concerned about losing control, but can generally be convinced of using outsourced accounting and bookkeeping with cost analysis. With the stakes higher, these businesses can make greater use of management accounting services, especially as most cannot afford a dedicated CFO /

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GM. Many do not need a full-time bookkeeper, but can make do with part-time help, which limits their hiring options.

Other small businesses: Many of these businesses will have some in-house financial management and bookkeeping help. However, they may be able to save money by outsourcing these services, as they are not generally core to what the business seeks to do. These businesses may be comfortable with their situation as a cash producer for their owners or intent on growing or positioning themselves for sale.

Market AnalysisTarget Market Segment Strategy

The DFG will focus on the "very small business" target group for its bookkeeping services as this group can make the most consistent use of part-time bookkeepers. The type of bookkeeper whom these businesses would hire are generally students of the same kind. However, these businesses often do not have the resources to provide proper oversight or training to their bookkeepers, and will suffer from not having the leverage to hire the cream of the crop. The DFG can provide the solution to these problems.

Service Business Analysis

The small business accounting industry consists of numerous independent accountants and bookkeepers as well as many small firms. Larger firms tend to pursue medium and large business clients.

Accounting and bookkeeping services are purchased by owners and top managers of small businesses. They will contact businesses by phone and generally meet in person (at the client's office) to interview and discuss the prospect of working together.

Competition and Buying Patterns

Major competitors in the Fawkner market include:

• Bookkeeping Services: Provides general bookkeeping services, not taxes. Seeks entrepreneurial clients specifically, especially in the real estate industry. Business has no MIPA / CPA / CA, leadership.

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They do not offer the following:

• Tax services• Financial and management accounting reporting• Capital & Asset Management• FBT Services• Cost analysis• Trend analysis

For bookkeeping services, the business also must compete indirectly against the prospect of businesses hiring their own part-time bookkeepers. This gives businesses the advantage of greater control and perhaps development of a future full-time employee. If the hire works out, the cost can be lower for a business than an outside service. However, this can lead to employees who are not as well-educated or experienced as bookkeepers through a bookkeeping service who have worked with a range of businesses. Generally, the cost is lower in the long run with a bookkeeping service, as training is done more systematically and supervisors are more regimented and experienced.

To choose between competitors, factors considered by clients include:

• Positive references (especially from known sources or other businesses in the same industry)

• MIPA / CPA / CA leadership (protects the businesses, even if work is being performed by non-CPAs)

• Price (often low on the list of considerations, as long as price is not exorbitantly high)

Web Plan SummaryThe website for The DFG presents a simple, uncluttered look which holds a great deal of information about services offered beneath its surface and beyond its homepage. The purpose of the website is to assure clients and potential clients of the expertise of the company and then inspire them to call for a phone or in-person consultation.

To redevelop the website for the new bookkeeping services to be offered, additional service pages will be created for each subset of the bookkeeping service as well as a main page presenting the value proposition and benefits to clients of the services. All areas will offer

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description to be clear about what services are and are not offered, but will be focused on client benefits.

Website Marketing Strategy

To market the website, many of the current tactics will be maintained, but supplemented.

• Expanding Google Adwords• Developing an application for end users• Listing the website on databases and other websites for small

business services and bookkeeping services in Fawkner expanding to a 10KM radius

• Referencing the website in print ads and the brochure

Most of these marketing activities will be executed by DFG to minimise cost. The website will be expanded with additional information about best practices of bookkeeping services

On line Tax Service

The web site also offers the client an “on-line tax service”. As we all become more dependent on the internet for convenience and time-saving benefits, doing your tax return online is quickly becoming the most popular option.

The online tax return system is the fastest, easiest way to complete your Australian tax return. The advantages of this process are as follows:

• Price: the cost of doing this online is $80 including GST for simple returns (additional schedules are not included in this price)

• Auto Prefill: this automatically populates your data from last year’s return (depends on ATO data availability)

• Mobile friendly: you can action your tax return via your mobile phone or tablet

• No appointments: no travel to the tax agents office, low fees, and still get quality of service

• Tax item selector: less reading & less clutter

Also, one of the best features of the online tax system is:

• Flexibility: you can populate the details for your tax return at your convenience (save it and come back to re-submit)

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Once your return is submitted by you, DFG will then begin the review and analysis to ensure you are compliant with all Australian Tax Laws and all deductions are valid. The reason for this is that it is part of our responsibility that we are required by law to verify the authenticity of receipts. We like to ensure that you are receiving the best service and that I have delivered my work to you with due diligence. After the review, your return will be lodged directly to the ATO on your behalf.

A username and password will need to be created by the client. All receipts must be scanned and uploaded into the software.

Development Requirements

The website development will not require any additional business requirements.

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Strategy and ImplementationSummaryOverview

To promote the business to its target of businesses with 2 to 50 employees, DFG will:

• Expand its Web presence through website development and marketing

• Initiate a systematic client referral program to prospect within existing clients and their contacts

• Use print ads in local business publications to target small business readers

Positioning

Pricing

Promotion

Distribution

Competitive EdgeTo promote the business to its target of businesses with 10 plus employees, we will need to:

• Expand its Web presence through website development and marketing

• Initiate a systematic client referral program to prospect within existing clients and their contacts

• Use print ads in local business publications to target small business readers

Competitive Edge

DFG will achieve a competitive edge due to its combination of MIPA/CPA oversight with lower-level, inexpensive labor. Clients will receive the

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advantage of having a MIPA/CPA review their books and propose additional advice when appropriate, while not paying much more than they would to hire their own part-time bookkeeper.

This is not an inimitable competitive edge, but the market in Fawkner (including a 10KM radius) large enough to allow for the success with this strategy. Large firms ignore the small business market because they are better positioned to serve larger businesses. They are unlikely to imitate this strategy as they will find it difficult to convince small businesses that they can offer services which are affordable to them.

Marketing StrategyDFG will use the following marketing tactics to reach its target market of very small businesses with its new bookkeeping services:

• Website marketing (detailed in the Web plan section)• Redevelopment of the DFG brochure with an additional section

about the services• Periodic advertisements in small business publications, each

tracked to determine whether they yield inquiries and clients

The marketing messages will focus on the economics of the decision to use bookkeepers from and the advantage of CPA oversight with DFG’s experience and track record.

Marketing also encompasses the search for student bookkeepers. Job listings will be posted at local universities and promote the learning involved in the position and the "leg up" it can give students for accounting positions upon graduation. We will recruit the best student bookkeepers possible. The costs associated with this hiring are only the time of DFG.

Sales StrategyThe sales strategy for DFG new bookkeeping services is to attempt to sell the service to existing clients. This will require DFG to inform all existing clients by phone about the idea, once we have determined that they are qualified to use the service. Whenever possible, clients will be approached during regularly scheduled calls and meetings so as to not require a great deal of additional prospecting time.

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DFG will then ask clients directly for referrals to other businesses and business owners they know who may be right for the bookkeeping services. DFG will seek to contact two referrals per day. When and if existing clients and referrals are exhausted, DFG will engage in cold calling to likely prospects we have heard about from other businesses.

The result of this initiative of direct selling is expected to be at least five clients in the first year as many current clients appear extremely ready for this service and trusting of DFG.

Sales ForecastManagement StrategyTony Abdalllah is the sole proprietor of Dalton Financial Group. With the launch of bookkeeping services, DFG will oversee a full time bookkeeping manager who will oversee the work of the bookkeepers. The manager will be in a professional work experience and bookkeeping experience. This manager will work from the DFG office inclusive of the other FTE’s. The manager will be present for the bookkeepers' training by DFG (if required), so he or she will be aware of their responsibilities and requirements.

Any issues with the bookkeepers will be reported by the clients to the bookkeeping manager directly. He will either handle them himself or report to DFG for help. DFG will remain in close contact with the bookkeeping manager and review work samples from the bookkeepers at least once a month.

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Financial PlanRevenue ForecastRevenue Forecast

FY2016 FY2017 FY2018 FY2019 FY2020

Revenue

iReturns

Small Business $288,000 $318,074 $347,504 $376,304 $405,104

Consulting

Total Revenue $288,000 $318,074 $347,504 $376,304 $405,104

Direct Cost

iReturns

Small Business

Consulting

Total Direct Cost

Gross Margin $288,000 $318,074 $347,504 $376,304 $405,104

Gross Margin % 100% 100% 100% 100% 100%

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Revenue by Month

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About the Revenue Forecast

Personnel PlanPersonnel Table

FY2016 FY2017 FY2018 FY2019 FY2020

Bookkeeper Manager $48,378 $50,313 $52,326 $54,419 $56,595

Bookkeeper Part time Graduate $18,824 $19,577 $20,360 $21,174 $22,021

Part Time Accountant $22,589 $23,493 $24,432 $25,410 $26,426

Owner $26,354 $27,408 $28,504 $29,645 $30,830

Total $116,145 $120,791 $125,622 $130,648 $135,872

The bookkeeping manager will be a full time position. He/she will manage the day to day running of the business and liaise with the clients as well maintaining the staff. This growth, and the fact that the business will offer benefits, are the strategy to retain this key employee in future years.

AII staff pay rates are taken from “Robert Half Salary Guide” and are reflected in this budget. Employee benefits are 29.5% of payroll (which are excluded from the above table but added in the total budget).

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BudgetBudget Table

FY2016 FY2017 FY2018 FY2019 FY2020

Operating Expenses

Salary $116,145 $120,791 $125,622 $130,648 $135,872

Employee Related Expenses

$37,492 $38,991 $40,551 $42,173 $43,859

Commmunication - Internet $1,800 $1,872 $1,947 $2,025 $2,106

Communication - Mobile Phone

$3,840 $3,994 $4,153 $4,319 $4,492

Other Expenses - Cleaning

$250 $260 $270 $281 $292

Other Expenses - Consumables

$500 $520 $541 $562 $585

Other Expenses - Electricity

$1,000 $1,040 $1,082 $1,125 $1,170

Other Expenses - Food, Coffee Etc

$2,500 $2,600 $2,704 $2,812 $2,925

Other Expenses - Gas

$200 $208 $216 $225 $234

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Other Expenses - Insurance PP&E

$500 $520 $541 $562 $585

Other Expenses - Insurance Indemnity

$420 $437 $454 $472 $491

Other Expenses - Loan Repayment

$29,304 $30,476 $31,695 $32,963 $34,282

Other Expenses - Rent

$21,000 $21,840 $22,714 $23,622 $24,567

Other Expenses - Savings

$0 $15,000 $30,000 $50,000 $60,000

Other Expenses - Security System

$500 $520 $541 $562 $585

Other Expense - Water

$1,000 $1,040 $1,082 $1,125 $1,170

Other Expenses - Advertising

$1,000 $1,040 $1,082 $1,125 $1,170

Other Expense - Bank Fees

$240 $250 $260 $270 $281

Other Expense - Business Registration

$200 $208 $216 $225 $234

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Other Expense - Software

$3,000 $3,120 $3,245 $3,375 $3,510

Motor Vehicle - Fuel $4,800 $4,992 $5,192 $5,399 $5,615

Motor Vehicle - Lease $3,000 $3,120 $3,245 $3,375 $3,510

Motor Vehicle - Parking $800 $832 $865 $900 $936

Motor Vehicle - R&M $4,000 $4,160 $4,326 $4,499 $4,679

Motor Vehicle - Registration $1,500 $1,560 $1,622 $1,687 $1,755

Professional Fees - IPA $1,260 $1,310 $1,363 $1,417 $1,474

Professional Fees - CPA $612 $636 $662 $688 $716

Professional Fees - IIBA $252 $262 $273 $283 $295

Professional Fees - NTAA $264 $275 $286 $297 $309

Other Supplies - Newspaper and Magazines

$200 $208 $216 $225 $234

Office Supplies - General

$1,200 $1,248 $1,298 $1,350 $1,404

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Office Supplies - Paper, Stationery, Ink Cartridges

$600 $624 $649 $675 $702

Total Operating Expenses

$239,379 $263,954 $288,913 $319,266 $340,039

Expenses by Month

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About the Budget

Starting BalancesAssets

Cash $5,000

Accounts Receivable $0

Inventory

Long-Term Assets $0

Accumulated Depreciation $0

Liabilities

Accounts Payable

Corporate Taxes Payable

Sales Taxes Payable

Short-Term Debt

Long-Term Debt

Capital

Paid-In Capital $25,000

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Retained Earnings ($20,000)

Cash Flow AssumptionsCash Flow Assumptions

Cash Inflow

% of Sales on Credit 10%

Avg Collection Period (Days) 15

Cash Outflow

% of Purchases on Credit 20%

Avg Payment Delay (Days) 0

Inventory

Months to Keep on Hand 0

Minimum Inventory Purchase $0

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About the Cash Flow Assumptions

Loans and InvestmentsLoans and Investments Table

FY2016 FY2017 FY2018 FY2019 FY2020

Bank LoanLoan at 0% interest for 120 mos.

$0

Total Amount Received

$0

Sources of Funds

Use of Funds

Financial PlanThe financial plan of the business requires growth financed by positive cash flows from operations. Additional outside investment or owner investment is not necessary. The new business line is not capital-intensive, but will increase fixed costs of the business which must be covered almost immediately by additional revenues from bookkeeping sales. This is feasible because the business is based an acquisition of 50 current clients.

Important Assumptions:

The business will grow the number of part-time bookkeepers with the business over these next three years. In the first year, one bookkeeper manager full time and a part time bookkeeper, a third and fourth bookkeeper will join us after year two as the business grows.

Break-even Analysis:

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Our monthly revenue break-even is based on the fixed costs of running the current business along with the old lines of business. The increased marketing activity, capacity, payroll, benefits, and computer expenses for the new bookkeeper, insurance for the new line of business, and cost of sales to hire bookkeepers drives this break-even point higher.

Projected Profit and Loss

DFG actually expects its gross margin to fall as it takes on bookkeepers to fulfill the new bookkeeping service. This will move from the firm's gross margin from being in line with a non-employer firm to a contractor firm that provides labor to businesses. The growth in revenues will offset this drop in gross margin and produce steady growth in net profit. Marketing will include the activities listed for 2010 in the milestones table as well as additional runs of print ads in local publications beyond the first few months. This expense will drop somewhat in future years as marketing returns to the business's focus on referrals and word-of-mouth from clients.

Rent and utilities will not grow significantly as we are looking to sub lease a small office space. Insurance will grow to cover the added liability of additional employees working in client spaces. Payroll on costs are set at 20% whichi include PAYG and Taxes whereas superannuation is set at 9.5%. January will be a month of additional setup training to bring the new bookkeepers and manager online and install additional software and computers. Software and computer expenses to provide accounting software for the laptops for the bookkeeper and to continue to upgrade the systems of the business will grow. In the first year, this includes a computer and software set-up for the bookkeeping manager.

Projected Cash Flow

The expansion of the business can be undertaken with the current cash reserves. The business will return to positive cash-flow in the second quarter. The fact that the part-time bookkeepers will only be deployed on paying jobs lowers the risk of this new business line to the cost of the bookkeeping manager and marketing. Significant cash reserves can be built up in future years for an acquisition or additional service expansion or the owner can take dividends.

Projected Balance Sheet

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The net worth of the business will improve if the new business line succeeds as expected. Additional external financing will not be needed and the debt of the business will remain low.

Business Ratios

DFG is compared here to the "Office Administrative Services" industry of under $500,000 in revenues. Comparison to the other closest industry, "Tax Preparation Services," is less useful because of the differences created by the new revenue line.

DFG does not hold substantial current or long-term assets, besides some office equipment and a rental security deposit. The assets of the business are primarily the human and knowledge assets of DFG.

Cash Fixed CostsThese costs are the major contributors for the running day to day operations of the business and make up 75% of total expenditure:

• Salaries 53%• Loan 10%• Rent 8%• Motor Vehicle 4%

The table below displays the monthly cash fixed costs that must be paid.

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Financial StatementsProfit and Loss StatementProfit and Loss Statement

FY2016 FY2017 FY2018 FY2019 FY2020

Revenue $288,000 $318,074 $347,504 $376,304 $405,104

Direct Costs

Gross Margin $288,000 $318,074 $347,504 $376,304 $405,104

Gross Margin % 100% 100% 100% 100% 100%

Operating Expenses

Salary $116,145 $120,791 $125,622 $130,648 $135,872


$37,492 $38,991 $40,551 $42,173 $43,859



$3,840 $3,994 $4,153 $4,319 $4,492


$250 $260 $270 $281 $292

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$500 $520 $541 $562 $585


$1,000 $1,040 $1,082 $1,125 $1,170


$2,500 $2,600 $2,704 $2,812 $2,925


$200 $208 $216 $225 $234


$500 $520 $541 $562 $585


$420 $437 $454 $472 $491


$29,304 $30,476 $31,695 $32,963 $34,282


$21,000 $21,840 $22,714 $23,622 $24,567


$0 $15,000 $30,000 $50,000 $60,000


$500 $520 $541 $562 $585

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Other Expense - Water

$1,000 $1,040 $1,082 $1,125 $1,170


$1,000 $1,040 $1,082 $1,125 $1,170

Other Expense - Bank Fees

$240 $250 $260 $270 $281


$200 $208 $216 $225 $234

Other Expense - Software

$3,000 $3,120 $3,245 $3,375 $3,510




Motor Vehicle - R&M $4,000 $4,160 $4,326 $4,499 $4,679





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$200 $208 $216 $225 $234

Office Supplies - General

$1,200 $1,248 $1,298 $1,350 $1,404


$600 $624 $649 $675 $702


$239,379 $263,954 $288,913 $319,266 $340,039

Operating Income $48,621 $54,120 $58,591 $57,038 $65,065

Interest Incurred $0 $0 $0 $0 $0

Depreciation and Amortization

$1,775 $1,775 $1,775 $1,775 $1,775

Income Taxes $14,054 $15,703 $17,045 $16,579 $18,987

Total Expenses $255,208 $281,432 $307,733 $337,620 $360,801

Net Profit $32,792 $36,642 $39,771 $38,684 $44,303

Net Profit / Sales 11% 12% 11% 10% 11%

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Gross Margin by Year

Net Profit (or Loss) by Year

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About the Profit and Loss Statement

Balance SheetBalance Sheet

As of Period's End

Starting Balances FY2016 FY2017 FY2018 FY2019 FY2020

Cash $5,000 $21,774 $60,209 $101,742 $142,036 $188,194

Accounts Receivable $0 $1,200 $1,319 $1,439 $1,557 $1,675

Inventory

Other Current Assets

Total Current Assets

$5,000 $22,974 $61,528 $103,181 $143,593 $189,869

Long-Term Assets $0 $17,750 $17,750 $17,750 $17,750 $17,750

Accumulated Depreciation $0 ($1,775) ($3,550) ($5,325) ($7,100) ($8,875)

Total Long-Term Assets

$0 $15,975 $14,200 $12,425 $10,650 $8,875

Total Assets $5,000 $38,949 $75,728 $115,606 $154,243 $198,744

Accounts Payable ($12) ($14) ($18) ($27) ($29)

Page 35 of 74


Income Taxes Payable $1,170 $1,309 $1,420 $1,382 $1,582

Sales Taxes Payable $0 $0 $0 $0 $0

Short-Term Debt $0 $0 $0 $0 $0

Prepaid Revenue

Total Current Liabilities

$1,158 $1,295 $1,402 $1,355 $1,553

Long-Term Debt $0 $0 $0 $0 $0

Total Liabilities $1,158 $1,295 $1,402 $1,355 $1,553

Paid-in Capital $25,000 $25,000 $25,000 $25,000 $25,000 $25,000

Retained Earnings ($20,000) ($20,000) $12,791 $49,433 $89,204 $127,888

Earnings $32,791 $36,642 $39,771 $38,684 $44,303

Total Owner's Equity

$5,000 $37,791 $74,433 $114,204 $152,888 $197,191

Total Liabilities & Equity

$5,000 $38,949 $75,728 $115,606 $154,243 $198,744

Page 36 of 74


About the Balance Sheet

Cash Flow StatementCash Flow Statement

FY2016 FY2017 FY2018 FY2019 FY2020

Net Cash Flow from Operations

Net Profit $32,792 $36,642 $39,771 $38,684 $44,303


$1,775 $1,775 $1,775 $1,775 $1,775

Change in Accounts Receivable

($1,200) ($119) ($120) ($118) ($118)

Change in Inventory

Change in Accounts Payable

($12) ($2) ($4) ($9) ($2)

Change in Income Tax Payable

$1,170 $139 $111 ($38) $200

Change in Sales Tax Payable

$0 $0 $0 $0 $0

Change in Prepaid Revenue

Page 37 of 74



$34,525 $38,435 $41,533 $40,294 $46,158

Investing & Financing

Assets Purchased or Sold

($17,750)

Investments Received

Change in Long-Term Debt

$0 $0 $0 $0 $0

Change in Short-Term Debt

$0 $0 $0 $0 $0

Dividends & Distributions

Net Cash Flow from Investing & Financing

($17,750) $0 $0 $0 $0

Cash at Beginning of Period

$4,999 $21,774 $60,209 $101,742 $142,036

Net Change in Cash $16,775 $38,435 $41,533 $40,294 $46,158

Cash at End of Period $21,774 $60,209 $101,742 $142,036 $188,194

Page 38 of 74


Cash Flow by Month

Cash Flow by Year

About the Cash Flow Statement

Page 39 of 74


AppendixRevenue ForecastRevenue Forecast Table (With Monthly Detail)FY2016 Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16 Oct '16 Nov '16 Dec '16

Revenue

iReturns

Small Business $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000

Consulting

Total Revenue $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000

Direct Cost

iReturns

Page 40 of 74


Small Business

Consulting

Total Direct Cost

Gross Margin $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000

Gross Margin % 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Page 41 of 74


FY2016 FY2017 FY2018 FY2019 FY2020

Revenue

iReturns

Small Business $288,000 $318,074 $347,504 $376,304 $405,104

Consulting

Total Revenue $288,000 $318,074 $347,504 $376,304 $405,104

Direct Cost

iReturns

Small Business

Consulting

Total Direct Cost

Gross Margin $288,000 $318,074 $347,504 $376,304 $405,104

Page 42 of 74


Gross Margin % 100% 100% 100% 100% 100%

Personnel PlanPersonnel Table (With Monthly Detail)FY2016 Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16 Oct '16 Nov '16 Dec '16

Bookkeeper Manager $4,031 $4,031 $4,031 $4,031 $4,031 $4,031 $4,032 $4,032 $4,032 $4,032 $4,032 $4,032

Bookkeeper Part time Graduate $1,568 $1,568 $1,568 $1,568 $1,569 $1,569 $1,569 $1,569 $1,569 $1,569 $1,569 $1,569

Part Time Accountant $1,882 $1,882 $1,882 $1,882 $1,882 $1,882 $1,882 $1,883 $1,883 $1,883 $1,883 $1,883

Owner $2,196 $2,196 $2,196 $2,196 $2,196 $2,196 $2,196 $2,196 $2,196 $2,196 $2,197 $2,197

Total $9,677 $9,677 $9,677 $9,677 $9,678 $9,678 $9,679 $9,680 $9,680 $9,680 $9,681 $9,681

Page 43 of 74


FY2016 FY2017 FY2018 FY2019 FY2020

Bookkeeper Manager $48,378 $50,313 $52,326 $54,419 $56,595

Bookkeeper Part time Graduate $18,824 $19,577 $20,360 $21,174 $22,021

Part Time Accountant $22,589 $23,493 $24,432 $25,410 $26,426

Owner $26,354 $27,408 $28,504 $29,645 $30,830

Total $116,145 $120,791 $125,622 $130,648 $135,872

Page 44 of 74


BudgetBudget Table (With Monthly Detail)FY2016 Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16 Oct '16 Nov '16 Dec '16

Operating Expenses

Salary $9,677 $9,677 $9,677 $9,677 $9,678 $9,678 $9,679 $9,680 $9,680 $9,680 $9,681 $9,681


$3,124 $3,124 $3,124 $3,124 $3,124 $3,124 $3,124 $3,125 $3,125 $3,125 $3,125 $3,125

Commmunication - Internet $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150


$320 $320 $320 $320 $320 $320 $320 $320 $320 $320 $320 $320


$21 $21 $21 $21 $21 $21 $21 $21 $21 $21 $20 $20


$42 $42 $42 $42 $42 $42 $42 $42 $42 $42 $40 $40

Page 45 of 74



$83 $83 $83 $83 $83 $83 $83 $83 $83 $83 $83 $87


$208 $208 $208 $208 $208 $208 $208 $208 $209 $209 $209 $209


$16 $16 $16 $16 $17 $17 $17 $17 $17 $17 $17 $17


$42 $42 $42 $42 $42 $42 $42 $42 $41 $41 $41 $41


$35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $35


$2,442 $2,442 $2,442 $2,442 $2,442 $2,442 $2,442 $2,442 $2,442 $2,442 $2,442 $2,442


$1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750


$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Page 46 of 74



$41 $41 $41 $41 $42 $42 $42 $42 $42 $42 $42 $42

Other Expense - Water $83 $83 $83 $83 $83 $83 $83 $83 $84 $84 $84 $84


$83 $83 $83 $83 $83 $83 $83 $83 $84 $84 $84 $84

Other Expense - Bank Fees $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20


$17 $17 $17 $17 $17 $17 $17 $17 $16 $16 $16 $16

Other Expense - Software $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250

Motor Vehicle - Fuel $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400

Motor Vehicle - Lease $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250

Motor Vehicle - Parking $67 $67 $67 $67 $67 $67 $67 $67 $66 $66 $66 $66

Page 47 of 74


Motor Vehicle - R&M $333 $333 $333 $333 $333 $333 $333 $333 $334 $334 $334 $334

Motor Vehicle - Registration $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125

Professional Fees - IPA $105 $105 $105 $105 $105 $105 $105 $105 $105 $105 $105 $105

Professional Fees - CPA $51 $51 $51 $51 $51 $51 $51 $51 $51 $51 $51 $51

Professional Fees - IIBA $21 $21 $21 $21 $21 $21 $21 $21 $21 $21 $21 $21

Professional Fees - NTAA $22 $22 $22 $22 $22 $22 $22 $22 $22 $22 $22 $22


$17 $17 $17 $17 $17 $17 $17 $17 $16 $16 $16 $16

Office Supplies - General $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100


$50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50

Page 48 of 74



$19,945 $19,945 $19,945 $19,945 $19,948 $19,948 $19,949 $19,951 $19,951 $19,951 $19,949 $19,953

Page 49 of 74


FY2016 FY2017 FY2018 FY2019 FY2020

Operating Expenses

Salary $116,145 $120,791 $125,622 $130,648 $135,872

Employee Related Expenses $37,492 $38,991 $40,551 $42,173 $43,859


Communication - Mobile Phone $3,840 $3,994 $4,153 $4,319 $4,492

Other Expenses - Cleaning $250 $260 $270 $281 $292

Other Expenses - Consumables $500 $520 $541 $562 $585

Other Expenses - Electricity $1,000 $1,040 $1,082 $1,125 $1,170

Other Expenses - Food, Coffee Etc $2,500 $2,600 $2,704 $2,812 $2,925

Other Expenses - Gas $200 $208 $216 $225 $234

Other Expenses - Insurance PP&E $500 $520 $541 $562 $585

Page 50 of 74


Other Expenses - Insurance Indemnity $420 $437 $454 $472 $491

Other Expenses - Loan Repayment $29,304 $30,476 $31,695 $32,963 $34,282

Other Expenses - Rent $21,000 $21,840 $22,714 $23,622 $24,567

Other Expenses - Savings $0 $15,000 $30,000 $50,000 $60,000

Other Expenses - Security System $500 $520 $541 $562 $585

Other Expense - Water $1,000 $1,040 $1,082 $1,125 $1,170

Other Expenses - Advertising $1,000 $1,040 $1,082 $1,125 $1,170

Other Expense - Bank Fees $240 $250 $260 $270 $281

Other Expense - Business Registration $200 $208 $216 $225 $234

Other Expense - Software $3,000 $3,120 $3,245 $3,375 $3,510



Page 51 of 74



Motor Vehicle - R&M $4,000 $4,160 $4,326 $4,499 $4,679






Other Supplies - Newspaper and Magazines $200 $208 $216 $225 $234

Office Supplies - General $1,200 $1,248 $1,298 $1,350 $1,404

Office Supplies - Paper, Stationery, Ink Cartridges $600 $624 $649 $675 $702

Total Operating Expenses $239,379 $263,954 $288,913 $319,266 $340,039

Page 52 of 74


Loans and InvestmentsLoans and Investments Table (With Monthly Detail)FY2016 Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16 Oct '16 Nov '16 Dec '16

Bank LoanLoan at 0% interest for 120 mos.

$0

Total Amount Received $0

FY2016 FY2017 FY2018 FY2019 FY2020

Bank LoanLoan at 0% interest for 120 mos. $0

Total Amount Received $0

Page 53 of 74


Profit and Loss StatementProfit and Loss Statement (With Monthly Detail)FY2016 Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16 Oct '16 Nov '16 Dec '16

Revenue $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000

Direct Costs

Gross Margin $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000

Gross Margin % 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Operating Expenses

Salary $9,677 $9,677 $9,677 $9,677 $9,678 $9,678 $9,679 $9,680 $9,680 $9,680 $9,681 $9,681


$3,124 $3,124 $3,124 $3,124 $3,124 $3,124 $3,124 $3,125 $3,125 $3,125 $3,125 $3,125

Commmunication - Internet $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150

Page 54 of 74



$320 $320 $320 $320 $320 $320 $320 $320 $320 $320 $320 $320


$21 $21 $21 $21 $21 $21 $21 $21 $21 $21 $20 $20


$42 $42 $42 $42 $42 $42 $42 $42 $42 $42 $40 $40


$83 $83 $83 $83 $83 $83 $83 $83 $83 $83 $83 $87


$208 $208 $208 $208 $208 $208 $208 $208 $209 $209 $209 $209


$16 $16 $16 $16 $17 $17 $17 $17 $17 $17 $17 $17


$42 $42 $42 $42 $42 $42 $42 $42 $41 $41 $41 $41


$35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $35

Page 55 of 74



$2,442 $2,442 $2,442 $2,442 $2,442 $2,442 $2,442 $2,442 $2,442 $2,442 $2,442 $2,442


$1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750


$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0


$41 $41 $41 $41 $42 $42 $42 $42 $42 $42 $42 $42

Other Expense - Water $83 $83 $83 $83 $83 $83 $83 $83 $84 $84 $84 $84


$83 $83 $83 $83 $83 $83 $83 $83 $84 $84 $84 $84

Other Expense - Bank Fees $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20


$17 $17 $17 $17 $17 $17 $17 $17 $16 $16 $16 $16

Page 56 of 74


Other Expense - Software $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250

Motor Vehicle - Fuel $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400

Motor Vehicle - Lease $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250

Motor Vehicle - Parking $67 $67 $67 $67 $67 $67 $67 $67 $66 $66 $66 $66

Motor Vehicle - R&M $333 $333 $333 $333 $333 $333 $333 $333 $334 $334 $334 $334

Motor Vehicle - Registration $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125

Professional Fees - IPA $105 $105 $105 $105 $105 $105 $105 $105 $105 $105 $105 $105

Professional Fees - CPA $51 $51 $51 $51 $51 $51 $51 $51 $51 $51 $51 $51

Professional Fees - IIBA $21 $21 $21 $21 $21 $21 $21 $21 $21 $21 $21 $21

Professional Fees - NTAA $22 $22 $22 $22 $22 $22 $22 $22 $22 $22 $22 $22

Page 57 of 74



$17 $17 $17 $17 $17 $17 $17 $17 $16 $16 $16 $16

Office Supplies - General $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100


$50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50


$19,945 $19,945 $19,945 $19,945 $19,948 $19,948 $19,949 $19,951 $19,951 $19,951 $19,949 $19,953

Operating Income $4,055 $4,055 $4,055 $4,055 $4,052 $4,052 $4,051 $4,049 $4,049 $4,049 $4,051 $4,047

Interest Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Depreciation and Amortization $148 $148 $148 $148 $147 $149 $148 $147 $148 $149 $147 $148

Income Taxes $1,172 $1,172 $1,172 $1,172 $1,172 $1,171 $1,171 $1,170 $1,171 $1,170 $1,171 $1,170

Total Expenses $21,265 $21,265 $21,265 $21,265 $21,267 $21,268 $21,268 $21,268 $21,270 $21,270 $21,267 $21,271

Page 58 of 74


Net Profit $2,735 $2,735 $2,735 $2,735 $2,733 $2,732 $2,732 $2,732 $2,730 $2,730 $2,733 $2,729

Net Profit / Sales 11% 11% 11% 11% 11% 11% 11% 11% 11% 11% 11% 11%

Page 59 of 74


FY2016 FY2017 FY2018 FY2019 FY2020

Revenue $288,000 $318,074 $347,504 $376,304 $405,104

Direct Costs

Gross Margin $288,000 $318,074 $347,504 $376,304 $405,104

Gross Margin % 100% 100% 100% 100% 100%

Operating Expenses

Salary $116,145 $120,791 $125,622 $130,648 $135,872

Employee Related Expenses $37,492 $38,991 $40,551 $42,173 $43,859


Communication - Mobile Phone $3,840 $3,994 $4,153 $4,319 $4,492

Other Expenses - Cleaning $250 $260 $270 $281 $292

Other Expenses - Consumables $500 $520 $541 $562 $585

Page 60 of 74


Other Expenses - Electricity $1,000 $1,040 $1,082 $1,125 $1,170

Other Expenses - Food, Coffee Etc $2,500 $2,600 $2,704 $2,812 $2,925

Other Expenses - Gas $200 $208 $216 $225 $234

Other Expenses - Insurance PP&E $500 $520 $541 $562 $585

Other Expenses - Insurance Indemnity $420 $437 $454 $472 $491

Other Expenses - Loan Repayment $29,304 $30,476 $31,695 $32,963 $34,282

Other Expenses - Rent $21,000 $21,840 $22,714 $23,622 $24,567

Other Expenses - Savings $0 $15,000 $30,000 $50,000 $60,000

Other Expenses - Security System $500 $520 $541 $562 $585

Other Expense - Water $1,000 $1,040 $1,082 $1,125 $1,170

Other Expenses - Advertising $1,000 $1,040 $1,082 $1,125 $1,170

Other Expense - Bank Fees $240 $250 $260 $270 $281

Page 61 of 74


Other Expense - Business Registration $200 $208 $216 $225 $234

Other Expense - Software $3,000 $3,120 $3,245 $3,375 $3,510




Motor Vehicle - R&M $4,000 $4,160 $4,326 $4,499 $4,679






Other Supplies - Newspaper and Magazines $200 $208 $216 $225 $234

Page 62 of 74


Office Supplies - General $1,200 $1,248 $1,298 $1,350 $1,404

Office Supplies - Paper, Stationery, Ink Cartridges $600 $624 $649 $675 $702

Total Operating Expenses $239,379 $263,954 $288,913 $319,266 $340,039

Operating Income $48,621 $54,120 $58,591 $57,038 $65,065

Interest Incurred $0 $0 $0 $0 $0

Depreciation and Amortization $1,775 $1,775 $1,775 $1,775 $1,775

Income Taxes $14,054 $15,703 $17,045 $16,579 $18,987

Total Expenses $255,208 $281,432 $307,733 $337,620 $360,801

Net Profit $32,792 $36,642 $39,771 $38,684 $44,303

Net Profit / Sales 11% 12% 11% 10% 11%

Page 63 of 74


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

Starting Balances Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16 Oct '16 Nov '16 Dec '16

Cash $5,000 ($9,896) ($7,014) ($4,132) ($1,250) $1,629 $4,508 $7,387 $10,264 $13,142 $16,019 $18,899 $21,774

Accounts Receivable $0 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200

Inventory


Total Current Assets

$5,000 ($8,696) ($5,814) ($2,932) ($50) $2,829 $5,708 $8,587 $11,464 $14,342 $17,219 $20,099 $22,974

Long-Term Assets $0 $17,750 $17,750 $17,750 $17,750 $17,750 $17,750 $17,750 $17,750 $17,750 $17,750 $17,750 $17,750

Accumulated Depreciation $0 ($148) ($296) ($444) ($592) ($739) ($888) ($1,036) ($1,183) ($1,331) ($1,480) ($1,627) ($1,775)

Page 64 of 74


Total Long-Term Assets $0 $17,602 $17,454 $17,306 $17,158 $17,011 $16,862 $16,714 $16,567 $16,419 $16,270 $16,123 $15,975

Total Assets $5,000 $8,906 $11,640 $14,374 $17,108 $19,840 $22,570 $25,301 $28,031 $30,761 $33,489 $36,222 $38,949

Accounts Payable ($1) ($2) ($3) ($4) ($5) ($6) ($7) ($8) ($9) ($10) ($11) ($12)

Income Taxes Payable $1,172 $1,172 $1,172 $1,172 $1,172 $1,171 $1,171 $1,170 $1,171 $1,170 $1,171 $1,170

Sales Taxes Payable $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Short-Term Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Prepaid Revenue

Total Current Liabilities

$1,171 $1,170 $1,169 $1,168 $1,167 $1,165 $1,164 $1,162 $1,162 $1,160 $1,160 $1,158

Long-Term Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Liabilities $1,171 $1,170 $1,169 $1,168 $1,167 $1,165 $1,164 $1,162 $1,162 $1,160 $1,160 $1,158

Page 65 of 74


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 ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000)

Earnings $2,735 $5,470 $8,205 $10,940 $13,673 $16,405 $19,137 $21,869 $24,599 $27,329 $30,062 $32,791

Total Owner's Equity

$5,000 $7,735 $10,470 $13,205 $15,940 $18,673 $21,405 $24,137 $26,869 $29,599 $32,329 $35,062 $37,791

Total Liabilities & Equity

$5,000 $8,906 $11,640 $14,374 $17,108 $19,840 $22,570 $25,301 $28,031 $30,761 $33,489 $36,222 $38,949

Page 66 of 74


As of Period's End Starting Balances FY2016 FY2017 FY2018 FY2019 FY2020

Cash $5,000 $21,774 $60,209 $101,742 $142,036 $188,194

Accounts Receivable $0 $1,200 $1,319 $1,439 $1,557 $1,675

Inventory


Total Current Assets $5,000 $22,974 $61,528 $103,181 $143,593 $189,869

Long-Term Assets $0 $17,750 $17,750 $17,750 $17,750 $17,750

Accumulated Depreciation $0 ($1,775) ($3,550) ($5,325) ($7,100) ($8,875)

Total Long-Term Assets $0 $15,975 $14,200 $12,425 $10,650 $8,875

Total Assets $5,000 $38,949 $75,728 $115,606 $154,243 $198,744

Accounts Payable ($12) ($14) ($18) ($27) ($29)

Income Taxes Payable $1,170 $1,309 $1,420 $1,382 $1,582

Page 67 of 74


Sales Taxes Payable $0 $0 $0 $0 $0

Short-Term Debt $0 $0 $0 $0 $0

Prepaid Revenue

Total Current Liabilities $1,158 $1,295 $1,402 $1,355 $1,553

Long-Term Debt $0 $0 $0 $0 $0

Total Liabilities $1,158 $1,295 $1,402 $1,355 $1,553

Paid-in Capital $25,000 $25,000 $25,000 $25,000 $25,000 $25,000

Retained Earnings ($20,000) ($20,000) $12,791 $49,433 $89,204 $127,888

Earnings $32,791 $36,642 $39,771 $38,684 $44,303

Total Owner's Equity $5,000 $37,791 $74,433 $114,204 $152,888 $197,191

Total Liabilities & Equity $5,000 $38,949 $75,728 $115,606 $154,243 $198,744

Page 68 of 74


Cash Flow StatementCash Flow Statement (With Monthly Detail)FY2016 Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16 Oct '16 Nov '16 Dec '16


Net Profit $2,735 $2,735 $2,735 $2,735 $2,733 $2,732 $2,732 $2,732 $2,730 $2,730 $2,733 $2,729


$148 $148 $148 $148 $147 $149 $148 $147 $148 $149 $147 $148

Change in Accounts Receivable

($1,200) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Change in Inventory

Change in Accounts Payable

($1) ($1) ($1) ($1) ($1) ($1) ($1) ($1) ($1) ($1) ($1) ($1)

Page 69 of 74


Change in Income Tax Payable

$1,172 $0 $0 $0 $0 ($1) $0 ($1) $1 ($1) $1 ($1)

Change in Sales Tax Payable

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0



$2,854 $2,882 $2,882 $2,882 $2,879 $2,879 $2,879 $2,877 $2,878 $2,877 $2,880 $2,875


Assets Purchased or Sold

($17,750)


Change in Long-Term Debt

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

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Change in Short-Term Debt

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0


Net Cash Flow from Investing & Financing

($17,750) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Cash at Beginning of Period

$5,000 ($9,896) ($7,014) ($4,132) ($1,250) $1,629 $4,508 $7,387 $10,264 $13,142 $16,019 $18,899

Net Change in Cash ($14,896) $2,882 $2,882 $2,882 $2,879 $2,879 $2,879 $2,877 $2,878 $2,877 $2,880 $2,875

Cash at End of Period ($9,896) ($7,014) ($4,132) ($1,250) $1,629 $4,508 $7,387 $10,264 $13,142 $16,019 $18,899 $21,774

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FY2016 FY2017 FY2018 FY2019 FY2020


Net Profit $32,792 $36,642 $39,771 $38,684 $44,303

Depreciation and Amortization $1,775 $1,775 $1,775 $1,775 $1,775

Change in Accounts Receivable ($1,200) ($119) ($120) ($118) ($118)

Change in Inventory

Change in Accounts Payable ($12) ($2) ($4) ($9) ($2)

Change in Income Tax Payable $1,170 $139 $111 ($38) $200

Change in Sales Tax Payable $0 $0 $0 $0 $0


Net Cash Flow from Operations $34,525 $38,435 $41,533 $40,294 $46,158


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Assets Purchased or Sold ($17,750)


Change in Long-Term Debt $0 $0 $0 $0 $0

Change in Short-Term Debt $0 $0 $0 $0 $0


Net Cash Flow from Investing & Financing ($17,750) $0 $0 $0 $0

Cash at Beginning of Period $4,999 $21,774 $60,209 $101,742 $142,036

Net Change in Cash $16,775 $38,435 $41,533 $40,294 $46,158

Cash at End of Period $21,774 $60,209 $101,742 $142,036 $188,194

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