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Table of Contents

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

Chart: Highlights..................................................................................................................................2
1.1 Objectives..........................................................................................................................................2
1.2 Mission...............................................................................................................................................2
1.3 Keys to Success..................................................................................................................................3
2.0 Company Summary...............................................................................................................................3
2.1 Company Ownership.........................................................................................................................3
2.2 Start-up Summary..............................................................................................................................3
Table: Start-up.....................................................................................................................................4
Chart: Start-up......................................................................................................................................5
3.0 Products and Services............................................................................................................................5
4.0 Market Analysis Summary....................................................................................................................5
4.1 Market Segmentation.........................................................................................................................7
Chart: Market Analysis (Pie)...............................................................................................................8
Table: Market Analysis........................................................................................................................8
4.2 Target Market Segment Strategy.......................................................................................................8
4.3 Service Business Analysis.................................................................................................................9
4.3.1 Competition and Buying Patterns...............................................................................................9
5.0 Strategy and Implementation Summary.................................................................................................9
5.1 Competitive Edge...............................................................................................................................9
5.2 Marketing Strategy...........................................................................................................................10
5.3 Sales Strategy...................................................................................................................................11
5.3.1 Sales Forecast............................................................................................................................11
Chart: Sales Monthly.....................................................................................................................12
Chart: Sales by Year......................................................................................................................12
Table: Sales Forecast.....................................................................................................................12
5.4 Milestones........................................................................................................................................13
Chart: Milestones...............................................................................................................................13
Table: Milestones...............................................................................................................................14
6.0 Web Plan Summary.............................................................................................................................14
7.0 Management Summary........................................................................................................................14
7.1 Personnel Plan..................................................................................................................................15
Table: Personnel.................................................................................................................................15
8.0 Financial Plan.......................................................................................................................................15
8.1 Start-up Funding..............................................................................................................................15
Table: Start-up Funding.....................................................................................................................16
8.2 Break-even Analysis........................................................................................................................16
Table: Break-even Analysis...............................................................................................................16
Chart: Break-even Analysis...............................................................................................................17
8.3 Projected Profit and Loss.................................................................................................................17
Chart: Gross Margin Monthly............................................................................................................17
Chart: Gross Margin Yearly...............................................................................................................18
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Table of Contents

Table: Profit and Loss........................................................................................................................18

Chart: Profit Monthly.........................................................................................................................19
Chart: Profit Yearly............................................................................................................................19
8.4 Projected Cash Flow........................................................................................................................20
Chart: Cash.........................................................................................................................................20
Table: Cash Flow...............................................................................................................................21
................................................................................................................................................................21
Table: Balance Sheet..........................................................................................................................22
................................................................................................................................................................22
8.6 Business Ratios................................................................................................................................23
Table: Ratios......................................................................................................................................23
Table: Sales Forecast...................................................................................................................................1
......................................................................................................................................................................1
Table: Personnel...........................................................................................................................................2
......................................................................................................................................................................2
Table: Profit and Loss..................................................................................................................................3
......................................................................................................................................................................3
Table: Cash Flow.........................................................................................................................................4
Table: Balance Sheet....................................................................................................................................5

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Phaethon's Chariot Restorations

1.0 Executive Summary

Phaethon's Chariot is a start-up auto restoration shop. The company is engaged in the
restoration of old American cars, and the designing and building of hot rods, and street rods.
Body work and rust repair is the majority of our work. Phaethon's Chariot has recently rented a
new state-of-the-art restoration shop, located at 510 W. 200th Terrace Circle
Boulevard, Centerton, Ohmstate. The company is dedicated to providing the highest quality
workmanship. Phaethon's Chariot keeps up on all the latest tools and techniques of the trade to
perform the highest quality work possible today.
Phaethon's Chariot is located in Centerton, Ohmstate. Our company and employees are
dedicated to doing each job right the first time, and retaining each car owner as a lifetime
customer of our shop.
The company is a state chartered corporation in Ohmstate, owned by Isoroku Tarnmaclahan.
The has owner worked for other shops in the Highland Valley area for the past 20 years, and is
committed to excellence every day. This new space allows the company retain more work. The
office area is comprised of 500 square feet and the shop area where the day-to-day work on
the cars is performed is 5,000 sq.ft.
The population of the seven communities in close proximity to Phaethon's Chariot Restorations
is estimated at 918,279. Roughly, this would mean that this area comprises a total restoration
market in excess of $2.0 million annually. The company's goal is to a acquire a comfortable
minority share of this nearby market.
The marketing research and tailored marketing strategy described in this business plan will
result in modest after-tax profits of in year 1, quadrupling after-tax profits within three years.
It is estimated that by year 3, revenues will reflect a healthy market share of the
local restoration market.
Within the next twelve months it is the objective of the company to market to the local area to
promote our business in the Highland Valley and surrounding areas. Our market segment will
be 30- to 65-year old owners of old American cars. After year three we plan to expand our
business to the Carahge City, Mythtate area. Our studies indicate that the Carahge area doesn't
have a lot of competition for our business.

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Phaethon's Chariot Restorations

Chart: Highlights

1.1 Objectives
1. Penetrate the automotive restoration market here in the Highland Valley. Within the next
twelve months, it is the objective of the company to market to the local area to promote our
business in the Highland Valley and surrounding areas, our market segment will be 30 to 65
years old men and women who own old American cars. After year two we plan to expand
our business to the Carahge City, Mythtate area. Our studies indicate that the Carahge City
area doesn't have a lot of competition for our business.
2. Substantially increase profitability. We will encourage price-sensitive jobs to go elsewhere
by normalizing the pricing structure. This will allow for more high-end custom work to be
performed for the less price-sensitive restoration market sector. This pricing will insure
a quadrupling of net profits during the third year.
3. To improve the administrative processes of the company. This will allow a reduction in the
owner's involvement in simple administrative tasks from 50% of his time to 20%, thereby
allowing him more time for sales and marketing tasks.
1.2 Mission
Our mission at Phaethon's Chariot is to always perform the highest quality work at the best
price around.

We can achieve this by only using the best of everything to do our restoration.
We produce high-quality work using the best parts and supplies available in the market
place today.
We only employ the most knowledgeable people to work for our shop.
We have a metal fabricator who will build any part that we can't locate for your car.
All of our restoration technicians go through a rigorous application process before we hire
them. We employ only the best people to do our work.

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Phaethon's Chariot Restorations

At Phaethon's Chariot Restorations you will get only the best quality work done on your car.
1.3 Keys to Success
Keys to success for the company will include:
1.
2.
3.
4.

Maintaining an untarnished reputation in the community.

Quality care.
Competitive pricing.
Flexible hours.

2.0 Company Summary

Phaethon's Chariot is an auto restoration shop located in Centerton, Ohmstate. The company is
engaged in the restoration of 1970 and earlier American cars, and the building of custom hot
rods. Body work and rust repair is the majority of our work. The total market for auto
restoration in the communities which the company targets is approximately $2.7 million. The
share of this market channeled through auto restoration shops and word of mouth is directly
proportional to disposable income.
Phaethon's Chariot Restorations is best suited to serving the high-end customer share of
the auto restoration market because clients of auto restoration can afford expensive materials
and custom solutions. The company is unable to compete with large shops geared to mass
production runs, nor can it's pricing compete with the many "insurance job" body repair shops.
The company is dedicated to providing the highest quality workmanship, meeting the agreed
delivery dates, and executing the custom work exactly in accordance with the customers
concept.
2.1 Company Ownership
The company, Phaethon's Chariot Restorations, is a corporation registered in Ohmstate, owned
by Isoroku Tarnmaclahan.
2.2 Start-up Summary
The company founder, Mr. Isoroku Tarnmaclahan, will manage day-to-day operations of the
business and will work collaboratively with all employees to ensure that this business venture is
a success.
It is estimated that the start-up costs will include legal costs, advertising, one month's rent and
utilities, and related expenses. An additional amount will be required as start-up assets,
including heavy equipment and cash on hand. The owner's existing tools comprise part of the
current assets. Total Start-up Requirements are detailed in the table below.
Some of the heavy equipment long-term assets that will be acquired include:

Air Compressor System

Air Filtration System
Air Powered Tools
Car Lift/Hoist
Computerized Engine Diagnostic Equipment

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Phaethon's Chariot Restorations

Fixtures
Hand Tools
Jigs and Work Stands
Auto Hand Tools
Spray Painting Equipment

Inventory will consist of restoration materials. Custom panels, parts, seats, fabrics,
instruments, etc. will be purchased either by the car owners, or by Phaethon's Chariot on a
just-in-time, as needed basis.
Table: Start-up

Start-up
Requirements
Start-up Expenses
Legal
Logo Design - Artwork
Stationery etc.
Sales Literature
Insurance
Rent
Utilities
Computer Network - Office/Shop
Website Development
Office Furniture
Fixtures
Total Start-up Expenses

$1,000
$3,000
$500
$4,000
$1,500
$1,800
$1,200
$6,000
$700
$3,000
$800
$23,500

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

$10,000
$2,000
$30,000
$100,000
$142,000

Total Requirements

$165,500

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Phaethon's Chariot Restorations

Chart: Start-up

3.0 Products and Services

Phaethon's Chariot Restorations will sell classic car restoration services to the general public at
a shop rate of $45 per hour. This will include complete frame off restoration work for all makes
of American classic cars and muscle cars. We will perform tasks such as mechanical repairs on
older American cars, body and paint restoration including rust repair, electrical repair, as well
as custom engine building, custom paint and metal fabrication.
We specialize in pre-1970 American cars and trucks, and average frame off restoration will take
600 hours of labor, therefore our average labor charge for a complete restoration is
approximately $27,000. There are additional charges for any parts that we have to get for
the job. Phaethon's Chariot will perform any kind of work on pre 1970 American cars including,
but not limited to regular mechanical service, and body and paint work.
4.0 Market Analysis Summary
TARGET MARKET
The type of customer who will be interested in the services of Phaethon's Chariot are
predominantly male, and in the age range from 30 to 65 years. The majority will have an
income in the $100,000 and up range. Some customers in the lower income ranges are
interested in specific services, interior restoration, or paint work and parts sales rather than full
restorations.

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Phaethon's Chariot Restorations

The customers who Phaethon's Chariot plans to target want :

1.
2.
3.
4.
5.

Quality full restoration or custom services, including engine, custom body work and paint.
Timely completion of the work on their cars.
Competitive rates.
Close attention to detail, and commitment to quality.
Ability to offer ideas for alternatives and close customer services.

Phaethon's Chariot has the ability to meet all these demands. The owner has a long work
history in this field, and has extremely high standards in regards to the shop's work. The owner
and the foreman will make sure that the shop's employees meet these standards. The owner
also understands that, not only quality work, but the attention and care bestowed on the
customer and their cars will result in a good reputation.
LOCATION
There is no specific geographical location for potential customers. They are located all over the
United States. They send their cars to whom and where they feel will do the best job, based on
reputation. This reputation comes largely from "word of mouth", i.e. seeing the quality of a car
that was restored by Phaethon's Chariot at a show, and referrals by others in the business. We
feel that eventually 50% of Phaethon's Chariot's customers will come from out of state.
INDUSTRY TRENDS
This is a large market that has seen an upturn in the last few years. All indications are that this
will continue for many years until leveling off at possibly double or triple the current market.
One company in this area, Car Barn Renewals, has a waiting list of three years. They not
taking any new business at this time. The owner of this shop is well acquainted with the quality
of work that will be preformed by Phaethon's Chariot and has indicated to Mr. Isoroku
Tarnmaclahan that he would refer anyone inquiring about new services to Phaethon's Chariot.
This will not only increase the number of potential customers for Phaethon's Chariot in the
start-up phase, but will provide a valuable word-of-mouth reputation for them.
COMPETITION
There are two other companies in the Centerton area that offer services similar to Phaethon's
Chariot's. One has been in business for 40 years and has an extremely high reputation within
the restoration community. They currently have more work than the shop can handle and has a
waiting list of three years. They are not taking any new customers. They also usually has one or
more cars in most shows. The owner of Phaethon's Chariot worked for them while learning his
trade.
The other shop has been in business 15 years. They currently have a wait of 160 days for any
new work. However most of their work is new business (first time customers) as their
reputation in the community is not good and they rarely have repeat business.
PRICING
Phaethon's Chariot's labor rates will be $45 per hour. Both of the other shops charge $65
per/hr. Phaethon's Chariot feels that this is a competitive rate and will not impact the bottom
line in a negative manner.

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Phaethon's Chariot Restorations

ADVERTISING
Phaethon's Chariot has a modest program of marketing its services that include the following:
1.
2.
3.
4.
5.
6.
7.
8.

Flyers
Discounts
Newspaper and magazines ads
Press releases and magazines articles
Car shows
Local radio stations
Website
Calendars

Each of these marketing approaches has the advantage of being low cost and creating service
awareness. The company is also considering the possibility of having a grand opening program
that would feature discounts, food, a local radio disc jockey and other promotional ideas.
We feel that the company website is one of our best marketing strategies. It is linked to City
Search.com and many other classic car restoration oriented websites and portals. The site has
news about our business, answers to FAQ's and pictures of cars we've restored and the process
of the restoration.
4.1 Market Segmentation
The market for auto restoration reflects the buyer's income bracket and standard of living in
much the same way that the restoration market is segmented. Below are listed market
segments based on size of pocketbook and quality of production:
1. Material Outlets. Suppliers of auto body and paint supplies, interior supplies and
mechanical parts.
2. Simple jobs. Simple repair jobs and service are the next level in our sales chain.
3. Paint. Custom paint work such as murals and flames, will provide some income.
4. Restoration. Complete restoration jobs, and complete paint work.
5. Custom Work. Custom body work such as, top chops and channels, this would be
considered our high end of work.
The average age of our customers is 30 to 65 years old with an average income is $60,000 per
year, with most full restoration customers having incomes of over $100,000. The gender is
predominantly male, with a college education, and coming from Centerton county and
surrounding areas. Some of the more recent trends come from the increasing coverage of
our industry on television, with shows such as American Muscle Car, Dream Car Garage and the
like. These types of shows have helped auto restoration to grow to a billion dollar a year
industry in the United States.

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Phaethon's Chariot Restorations

Chart: Market Analysis (Pie)

Table: Market Analysis

Market Analysis
Potential Customers
Males 30 to 65 years old
Other
Total

Year 1

Year 2

Year 3

Year 4

Year 5

20
10
30

34
10
44

58
10
68

99
13
112

168
17
185

Growth
70%
30%
57.58%

CAGR
70.24%
14.19%
57.58%

4.2 Target Market Segment Strategy

Our target market segment strategy includes the use of local radio and television stations to
convey the word about our business. We also plan on using advertising in publications such as
Hot Rod and Super Chevy magazines. These publications are distributed to a wide variety of
people who are all interested in old American cars, and muscle cars. Our strategy includes using
people's emotions to persuade them to restore an old car if they have one. We're not limited to
just a couple of different types of advertising, we also us flyers, discounts, newspapers, press
releases and magazine articles. Our website, which is a well designed, and cost effective way to
tell people about our shop and it's services, Phaethon's Chariot will use every way within it's
means to convey our message to the public.
Our market strategy is to flood the magazines and air waves with our shop's advertisements,
doing radio ads during morning and afternoon drive times. This is due to the fact that more
people listen to the radio during these time frames, so if you have a really catchy ad during
these time it's probable that you will gain some customers from it. The magazine publications
go out to hundreds of thousands of people every month, so all we need is to convert a small
percentage to sales and we'll achieve our success. But we don't stop there, we are also joining
the chamber of commerce to network our business. We will use flyers at the car shows to
promote or shop, and of course business cards.

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Phaethon's Chariot Restorations

4.3 Service Business Analysis

In setting a foundation on which to build a suitable market strategy for Phaethon's Chariot,
some of the other local industry players were contacted by phone. These players are located in
the greater Centerton area.
We called Classy Chassis and posed as a potential customer with a 1969 Z/28 Camaro for a full
restoration project, and from this call we discovered that their labor rate runs at $65 per hour,
and it would take about 600 hours of labor to restore the car plus parts. The labor before parts
were added worked out to $39,000. This is for a frame off restoration, rebuilding the entire car
from ground up. We also discovered that it would take about 160 days to get the car into their
shop to start the project.
We have also talked to Khamm Zhaapht from Car Barn Renewals, and have discovered that
he's running the same shop rates as Classy Chassis, but he has a three year waiting list for his
shop services, Khamm only does the highest quality work, having cars in most of the shows at
one time or another, Car Barn Renewals is very well known both in and out of Ohmstate.
4.3.1 Competition and Buying Patterns
The general nature of competition in this business, and how the customers seem to choose
one shop over another can be measured by customer loyalty and positive word of mouth.
Customer loyalty and shop preference come from developing a trust between the customer and
the business. To be successful in the automotive restoration business, one must truly believe in
the old American cars and love them. The customer must truly be made to feel welcome and
cared for. The trust that a customer feels, is based upon the business' ability to recognize what
it takes to please a customer, and then is built upon by continuously delivering to that customer
at, or above, the that they expect.
The level of attention and care that our staff bestow upon our customers sets us far above our
competition. We also have extremely high standards for professionalism in the shop.
Cleanliness, adherence to all shop rules, and efficiency are constantly applied. Prices are
reasonable, and are perceived as being an exceptional value. Our shop offers the highest
quality restoration work available today, we use only the highest quality parts and supplies on
all of our jobs. All of this can be found in a professional shop environment, and very
comfortable for our customers.
5.0 Strategy and Implementation Summary
Image is a key factor in making inroads into the higher echelons of auto restoration. Phaethon's
Chariot's strategy is to lift its image, through advertising in prestigious trade publications,
networking with a Chamber of Commerce membership, and actively marketing to a select
group of people located in and around the company's target market area.
5.1 Competitive Edge
The company seeks to establish a competitive edge in its new target market segment by
increasing the level of customer contact and service that other competitors seem to oftentimes
lack. Additionally, Phaethon's Chariot Restorations possesses the necessary skills to produce the
high quality restorations that are needed in this field. The establishment of the previously
mentioned work processes that will ensure greater service will strengthen the contacts that
promote word-of-mouth marketing and networking.

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Phaethon's Chariot Restorations

Our competitive edge will come from hard work and customer satisfaction, we will only produce
top quality work that is show ready when it leaves the shop. This will spawn good word of
mouth, which will in turn generate work from past and present customers of our shop.
5.2 Marketing Strategy
As mentioned in the previous section, it is important to the marketing strategy to develop an
attractive image to the trade. This can be done in a number of ways:
1. Advertising. Most restoration shops interviewed suggested Hemmings Motor News as the
best place to advertise. In the regional telephone directory Yellow Pages two classification
are possible: Auto Restoration--Antique & Classic, or Auto Body Repair & Paint. These two
publications both have directories. In Hemmings, a color 1/4 page ad would run $1,700 per
month for a year if signed by December 1, 2004, which provides a 15% discount. This
averages out to $1,411 per insertion, even less for black and white. A quarter page ad in
the Yellow Pages runs $1,200 a year.
2. Join The Chamber of Commerce. The image of Phaethon's Chariot Restorations would be
elevated by joining the Chamber of Commerce. This would cost only $300 per year.
Advertising on their electronic sign alongside the Interstate is free for 90 days. At present
the sign would give 100 impressions per day to the shop. We expect this to
increase Phaethon's income by about 10% during that 90-day period.
3. Advertising. Development of a top quality logo and photography which can be used in ads,
brochures, name cards, etc. Not counting printing costs, which vary by quantity and quality
of paper chosen, the design costs for this would run about $1,500. A day's photography
would be an additional $850-$1,600.
4. Participation in Car Shows. Another image-building marketing tactic is participating in
local car shows. These car shows are held just for the fun of it. This would require time and
effort, but not much in the way of money. This should be coordinated to insure compatibility
with the show's concept and our image. If we attend a show out of the local area, costs
would increase due to the expense of food, lodging, and protected transportation of a
finished car to the show. A photo album can never compete with the real hardware.
In addition to the above-mentioned activities designed to elevate the company's image, it is
essential to market directly to the selected target clients who all go to local car shows. Success
in making inroads into these names would set the stage for entry into the more prestigious auto
restorers guild.
Marketing these prime prospects must be carried out in a thoughtful organized way. Color
literature including the newly designed logo should be completed as a first step. When
marketing these prospects it will be important to present a portfolio of Phaethon's
Chariot's most innovative work. A relaxed face-to-face meeting, resulting in good
communication between Phaethon's Chariot and the project car's owners, should be all that's
needed to generate a first order.
Networking is also very useful. It is important, once the logo and artwork materials have been
completed, for the owner to make a point of introducing herself to important players in
the restoration world surrounding Centerton. Good contacts include hot rod businesses, parts
stores, custom car clubs, suppliers of paint, etc.

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Phaethon's Chariot Restorations

5.3 Sales Strategy

The marketing strategy discussed previously in this business plan will generate the desired
sales. These sales will begin with our website, and the Chamber of Commerce. It is a stated
objective to transfer the administrative burden away from the owner, freeing up his time to
meet with clients, to network at car shows and events, and to market the shop to prospective
clients. This means that someone else will be answering the incoming calls. This person must
be carefully trained to recognize who must be called back immediately by the owner. The shop
owner needs--and expects--close contact with the shop foreman. The shop is under pressure to
produce the highest quality work possible, for example, a car that's going to shows is going to
foster sales. The owner must be armed with a cell phone and a pager. The important caller
should be told that the owner will "call right back." The more successful the marketing strategy
is in making inroads into our share of the restoration market, the more important this
communication response will become.
In respect to the prospect list of clients, it is essential that a "salesman's" approach be adopted
to insure an organized, orderly approach to each prospect. Notes need to be kept on each
client. Follow-up and persistence will pay off.
5.3.1 Sales Forecast
The Sales Forecast is divided up into the major categories of restoration work, paint work and
service. Unit sales includes the yearly forecast of each per category, based on an average of 40
labor hours per item and forecasted capacity given the personnel changes mentioned in the
Personnel Section. The category prices reflect the average cost per category, based on past
pricing strategies. Since the company deals with providing custom services, this can vary wildly
between jobs. Due to target market, estimated increase in category price is reflected in
years 2004 and 2005. Direct category costs reflect direct costs in producing the items but does
not including labor.
It is estimated that by FY 2006, revenues will reflect a 10% market share of the local
restoration market, and that we will be completing one full restoration each month. As our
market share becomes established we believe we can raise our shop rates from $45 to $50 and
then to $55 per hour in years two and three of this plan. We will still be priced below the
current rate charged by other area shops.

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Phaethon's Chariot Restorations

Chart: Sales Monthly

Chart: Sales by Year

Table: Sales Forecast

Sales Forecast
Year 1

Year 2

Year 3

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Phaethon's Chariot Restorations

Sales
Restoration Work
Paint Work
Parts
Service
Total Sales
Direct Cost of Sales
Restoration Work
Paint Work
Parts
Service
Subtotal Direct Cost of Sales

$145,008
$49,236
$72,399
$44,400
$311,044

$250,000
$64,007
$108,599
$48,800
$471,406

$324,000
$83,209
$162,899
$53,600
$623,707

Year 1
$26,717
$9,063
$13,000
$17,760
$66,540

Year 2
$50,000
$12,801
$19,548
$19,520
$101,869

Year 3
$64,800
$16,642
$29,322
$21,440
$132,203

5.4 Milestones
The milestone table is set up as a flow-chart. The milestone table is specific in detail, allowing
for the smooth flow of functions that are necessary to set up the restoration shop on schedule
for the Grand Opening. Each function is timed to coincide with the proper execution and time
needed to complete each task. Each manager has specific duties assigned specifically to his
area of expertise. The end of the milestone table also shows the beginning of the 2005
marketing plan.

Chart: Milestones

Page 13

Phaethon's Chariot Restorations

Table: Milestones

Milestones
Milestone
Company Identity
Business Plan Review
Advertising
Car Shows
Employee Hired
Grand Opening
Totals

Start Date
7/10/2004
5/1/2004
12/1/2004
11/1/2004
11/20/2004
8/30/2004

End Date
9/15/2004
8/1/2004
12/1/2005
5/1/2006
11/16/2005
10/15/2004

Budget
$7,500
$0
$42,000
$4,800
$20,800
$1,000
$76,100

Manager
Isoroku
Isoroku
Isoroku
Isoroku
Jane
Jane

Department
Marketing
Finance
Marketing
Marketing
HR
Marketing

6.0 Web Plan Summary

Our website, is an opportunity to offer current information on our services, showcase some of
our recent restorations, upcoming car shows, and special events.
Our website will be promoted on all major search engines. We will link to City
Search.com and many other classic car restoration oriented web sites and portals.
Also we promote to all of the blog directories, and on-line malls, and news outlets.
The owner has developed the company website. It offers the customer looking at it news about
our business, and reasons why to restore their old cars, it also tells about the warranty on our
work. The home page is a basic summarization of what our shop is all about, the overview page
contains our mission statement.
The services page will tell you about the services that we offer, our news page will tell you
about upcoming events and car shows. It also tells you about the car shows that we will
sponsor at or shop.
7.0 Management Summary
Phaethon's Chariot Restorations is currently made up of two employees who will put in a
standard 40 hours of work per week, we intend that our shop will use no sub-contractors, and
will hire new people as the volume of work demands.

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Phaethon's Chariot Restorations

7.1 Personnel Plan

All work is produced by our restoration staff and one shop foreman. All employees put in full
40-hour weeks. Additional technicians will be added where necessary and in line with success in
penetrating the plan's target market. By the end of March 2005, it is assumed that increased
business volume will require two techs to put in a full 40-hour week. By the end of June 2005,
increased volume will require hiring a new painter / body man working a 30-hour/week, and
increasing to 40 hour/week by end of September. By the end 2006, Phaethon's Chariot
Restorations will have five techs working full-time. It is assumed that a sixth tech will be added
in either FY 2007 or 2008, depending on demand volume.
Table: Personnel

Personnel Plan
Year 1

Year 2

Year 3

Owner
Foreman
Sheet Metal & Body Technician(s)
Automotive Mechanic(s)
Painting Technician
Admin Asst.
Total People

$21,000
$17,400
$12,831
$15,162
$6,750
$9,000
6

$40,000
$22,400
$45,000
$52,000
$24,000
$20,800
8

$45,000
$30,000
$50,000
$58,000
$27,000
$22,800
8

Total Payroll

$82,143

$204,200

$232,800

8.0 Financial Plan

The business of Phaethon's Chariot Restorations does not require substantial outlays for
inventory and virtually all sales are on a cash/credit card basis, so increases in sales will not be
accompanied by initial cash-flow deficits.
8.1 Start-up Funding
The start-up costs are to be financed by the owner's personal investment and by a 7-year loan.

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Phaethon's Chariot Restorations

Table: Start-up Funding

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

$23,500
$142,000
$165,500

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

$132,000
$10,000
$0
$10,000
$142,000

Liabilities and Capital

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

$0
$119,000
$6,000
$5,500
$130,500

Capital
Planned Investment
Owner
Investor
Additional Investment Requirement
Total Planned Investment

$35,000
$0
$0
$35,000

Loss at Start-up (Start-up Expenses)

Total Capital

($23,500)
$11,500

Total Capital and Liabilities

$142,000

Total Funding

$165,500

8.2 Break-even Analysis

The Break-even Analysis is based on the average of the first-year figures for total sales and
average cost of sales, and by the averaged annual monthly operating expenses. These
conservative assumptions make for a more accurate estimate of real risk, showing that we need
to have the monthly sales shown in the table and chart below.
Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even

$20,506

Assumptions:
Average Percent Variable Cost

21%

Page 16

Phaethon's Chariot Restorations

Estimated Monthly Fixed Cost

$16,120

Chart: Break-even Analysis

8.3 Projected Profit and Loss

As the Profit and Loss table shows, the company expects to continue its steady growth in
profitability over the next three years of operations.
Chart: Gross Margin Monthly

Page 17

Phaethon's Chariot Restorations

Chart: Gross Margin Yearly

Table: Profit and Loss

Pro Forma Profit and Loss

Year 1

Year 2

Year 3

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

$311,044
$66,540
$0
$66,540

$471,406
$101,869
$0
$101,869

$623,707
$132,203
$0
$132,203

Gross Margin
Gross Margin %

$244,504
78.61%

$369,537
78.39%

$491,504
78.80%

$82,143
$22,500
$19,992
$21,600
$15,200
$24,000
$0
$8,000

$204,200
$22,500
$20,000
$15,200
$24,000
$0
$0
$0

$232,800
$22,500
$20,000
$24,000
$0
$0
$0
$0

$193,435

$285,900

$299,300

Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred

$51,069
$71,061
$6,672
$13,319

$83,637
$103,637
$5,852
$23,335

$192,204
$212,204
$4,720
$56,245

Net Profit
Net Profit/Sales

$31,078
9.99%

$54,449
11.55%

$131,239
21.04%

Expenses
Payroll
Marketing/Promotion
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Fixtures
Total Operating Expenses

Page 18

Phaethon's Chariot Restorations

Chart: Profit Monthly

Chart: Profit Yearly

Page 19

Phaethon's Chariot Restorations

8.4 Projected Cash Flow

As can be seen from the Cash Flow chart and table below, Phaethon's Chariot Restorations has
a number of advantages that provide for a large amount of growth in the company's cash
account. Because it is the company's policy that the clients to provide the parts for the the
restoration, the company has a very low cost of goods sold account and therefore a high gross
margin. Clients can purchase the parts themselves, or if they prefer to have us make the
purchase, we will locate the part, charge the customer's credit card, and then purchase the part
from the supplier/vendor.
Furthermore, the custom nature of the business means that there is no inventory cost to speak
of or accounts payable. With the ability to generate so much cash flow, it is assumed that the
company will seek to use this asset to expand its markets and production capacity in the near
future.

Chart: Cash

Page 20

Phaethon's Chariot Restorations

Table: Cash Flow

Pro Forma Cash Flow

Year 1

Year 2

Year 3

$311,044
$311,044

$471,406
$471,406

$623,707
$623,707

$20,716
$5,000
$0
$0
$0
$0
$0
$336,759

$31,396
$7,500
$0
$0
$0
$0
$0
$510,301

$41,539
$5,000
$0
$0
$0
$0
$0
$670,246

Year 1

Year 2

Year 3

$82,143
$176,173
$258,316

$204,200
$207,975
$412,175

$232,800
$238,889
$471,689

$20,716
$3,500
$0
$16,476
$0
$2,400
$9,000
$310,408

$31,396
$6,000
$0
$17,492
$0
$4,000
$0
$471,063

$41,539
$7,500
$0
$18,570
$0
$4,000
$0
$543,298

$26,352
$36,352

$39,239
$75,590

$126,949
$202,539

Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance

Page 21

Phaethon's Chariot Restorations

8.5 Projected Balance Sheet

The following table presents the Balance Sheet.
Table: Balance Sheet

Pro Forma Balance Sheet

Year 1

Year 2

Year 3

$36,352
$17,818
$30,000
$84,170

$75,590
$26,083
$30,000
$131,674

$202,539
$28,695
$30,000
$261,233

$102,400
$19,992
$82,408
$166,578

$106,400
$39,992
$66,408
$198,082

$110,400
$59,992
$50,408
$311,641

Year 1

Year 2

Year 3

$23,476
$1,500
$5,500
$30,476

$16,522
$3,000
$5,500
$25,022

$19,913
$500
$5,500
$25,913

Long-term Liabilities
Total Liabilities

$102,524
$133,000

$85,032
$110,054

$66,462
$92,375

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

$35,000
($32,500)
$31,078
$33,578
$166,578

$35,000
($1,422)
$54,449
$88,027
$198,082

$35,000
$53,027
$131,239
$219,266
$311,641

$33,578

$88,027

$219,266

Assets
Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

Net Worth

Page 22

Phaethon's Chariot Restorations

8.6 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Industry Standards, Antique and Classic Automobile Restoration services, SIC code 7532 are
shown for comparison.
Table: Ratios

Ratio Analysis
Year 1

Year 2

Year 3

Industry Profile

n.a.

51.56%

32.31%

1.55%

Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets

10.70%
18.01%
50.53%
49.47%
100.00%

13.17%
15.15%
66.47%
33.53%
100.00%

9.21%
9.63%
83.83%
16.17%
100.00%

9.44%
29.30%
52.30%
47.70%
100.00%

Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth

18.30%
61.55%
79.84%
20.16%

12.63%
42.93%
55.56%
44.44%

8.32%
21.33%
29.64%
70.36%

20.70%
28.94%
49.64%
50.36%

100.00%
78.61%
68.62%
6.43%
16.42%

100.00%
78.39%
66.84%
1.40%
17.74%

100.00%
78.80%
57.76%
1.40%
30.82%

100.00%
100.00%
73.48%
1.33%
0.60%

2.76
2.18
79.84%
132.22%
26.65%

5.26
4.22
55.56%
88.36%
39.27%

10.08
8.97
29.64%
85.51%
60.16%

1.95
1.31
55.95%
1.18%
2.67%

Sales Growth
Percent of Total Assets

Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Additional Ratios

Year 1

Year 2

Year 3

Net Profit Margin

Return on Equity

9.99%
92.55%

11.55%
61.86%

21.04%
59.85%

n.a
n.a

5.98
8.25
28
1.87

4.64
12.17
36
2.38

4.83
12.17
27
2.00

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

3.96
0.23

1.25
0.23

0.42
0.28

n.a
n.a

$53,694
7.65

$106,651
14.29

$235,320
40.72

n.a
n.a

0.54
18%
2.18
9.26

0.42
13%
4.22
5.36

0.50
8%
8.97
2.84

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

Activity Ratios
Inventory Turnover
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth

Page 23

Phaethon's Chariot Restorations

Dividend Payout

0.29

0.00

0.00

n.a

Page 24

Appendix
Table: Sales Forecast

Sales Forecast
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$5,000
$1,500
$3,000
$3,600
$13,100

$5,750
$1,755
$3,360
$3,600
$14,465

$6,613
$2,053
$3,763
$3,000
$15,429

$7,604
$2,402
$4,215
$3,900
$18,122

$8,745
$2,811
$4,721
$3,900
$20,176

$10,057
$3,289
$5,287
$3,600
$22,232

$11,565
$3,848
$5,921
$3,600
$24,935

$13,300
$4,502
$6,632
$3,900
$28,334

$15,295
$5,267
$7,428
$3,900
$31,890

$17,589
$6,163
$8,319
$3,900
$35,971

$20,228
$7,210
$9,318
$3,900
$40,656

$23,262
$8,436
$10,436
$3,600
$45,734

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$675
$313
$0
$1,440
$2,428

$810
$359
$3,000
$1,440
$5,609

$972
$413
$1,000
$1,200
$3,585

$1,166
$475
$1,000
$1,560
$4,202

$1,400
$547
$1,000
$1,560
$4,506

$1,680
$629
$1,000
$1,440
$4,748

$2,016
$723
$1,000
$1,440
$5,178

$2,419
$831
$1,000
$1,560
$5,810

$2,902
$956
$1,000
$1,560
$6,418

$3,483
$1,099
$1,000
$1,560
$7,142

$4,179
$1,264
$1,000
$1,560
$8,004

$5,015
$1,454
$1,000
$1,440
$8,909

Sales
Restoration Work
Paint Work
Parts
Service
Total Sales

0%
0%
0%
0%

Direct Cost of Sales

Restoration Work
Paint Work
Parts
Service
Subtotal Direct Cost of Sales

0%
0%
0%
0%

Page 1

Appendix
Table: Personnel

Personnel Plan
Owner
Foreman
Sheet Metal & Body Technician(s)
Automotive Mechanic(s)
Painting Technician
Admin Asst.
Total People
Total Payroll

0%
0%
0%
0%
0%
0%

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$1,000
$0
$0
$0
$0
$0
1

$1,000
$1,000
$0
$0
$0
$0
2

$1,000
$1,000
$0
$0
$0
$0
2

$2,000
$1,000
$0
$0
$0
$1,000
3

$2,000
$1,500
$0
$0
$0
$1,000
3

$2,000
$1,500
$1,833
$2,166
$0
$1,000
5

$2,000
$1,700
$1,833
$2,166
$0
$1,000
5

$2,000
$1,700
$1,833
$2,166
$0
$1,000
5

$2,000
$2,000
$1,833
$2,166
$1,500
$1,000
6

$2,000
$2,000
$1,833
$2,166
$1,500
$1,000
6

$2,000
$2,000
$1,833
$2,166
$1,750
$1,000
6

$2,000
$2,000
$1,833
$2,166
$2,000
$1,000
6

$1,000

$2,000

$2,000

$4,000

$4,500

$8,499

$8,699

$8,699

$10,499

$10,499

$10,749

$10,999

Page 2

Appendix
Table: Profit and Loss

Pro Forma Profit and Loss

Sales
Direct Cost of Sales
Other Costs of Sales
Total 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

$13,100

$14,465

$15,429

$18,122

$20,176

$22,232

$24,935

$28,334

$31,890

$35,971

$40,656

$45,734

$2,428

$5,609

$3,585

$4,202

$4,506

$4,748

$5,178

$5,810

$6,418

$7,142

$8,004

$8,909

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$2,428

$5,609

$3,585

$4,202

$4,506

$4,748

$5,178

$5,810

$6,418

$7,142

$8,004

$8,909

Gross Margin

$10,673

$8,856

$11,844

$13,920

$15,670

$17,484

$19,756

$22,524

$25,472

$28,829

$32,652

$36,824

Gross Margin %

81.47%

61.22%

76.76%

76.81%

77.67%

78.64%

79.23%

79.49%

79.87%

80.14%

80.31%

80.52%

$1,000

$2,000

$2,000

$4,000

$4,500

$8,499

$8,699

$8,699

$10,499

$10,499

$10,749

$10,999

$0

$1,000

$1,000

$1,500

$1,500

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

Depreciation

$1,666

$1,666

$1,666

$1,666

$1,666

$1,666

$1,666

$1,666

$1,666

$1,666

$1,666

$1,666

Rent

$1,800

$1,800

$1,800

$1,800

$1,800

$1,800

$1,800

$1,800

$1,800

$1,800

$1,800

$1,800

Utilities

$2,000

$1,200

$1,200

$1,200

$1,200

$1,200

$1,200

$1,200

$1,200

$1,200

$1,200

$1,200

Insurance

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$0
$1,000

$0
$1,000

$0
$1,200

$0
$300

$0
$300

$0
$300

$0
$300

$0
$300

$0
$300

$0
$1,000

$0
$1,000

$0
$1,000

Total Operating Expenses

$9,466

$10,666

$10,866

$12,466

$12,966

$17,965

$18,165

$18,165

$19,965

$20,665

$20,915

$21,165

Profit Before Interest and Taxes

$1,207

($1,810)

$978

$1,454

$2,704

($481)

$1,591

$4,359

$5,507

$8,164

$11,737

$15,659

EBITDA

$2,873

($144)

$2,644

$3,120

$4,370

$1,185

$3,257

$6,025

$7,173

$9,830

$13,403

$17,325

Interest Expense

$588

$590

$587

$572

$561

$554

$548

$549

$534

$527

$536

$525

Taxes Incurred

$185

($720)

$117

$264

$643

($311)

$313

$1,143

$1,492

$2,291

$3,360

$4,540

Expenses
Payroll
Marketing/Promotion

Payroll Taxes
Fixtures

Net Profit
Net Profit/Sales

15%

$433

($1,680)

$273

$617

$1,500

($725)

$731

$2,667

$3,481

$5,346

$7,840

$10,594

3.30%

-11.62%

1.77%

3.41%

7.43%

-3.26%

2.93%

9.41%

10.92%

14.86%

19.28%

23.16%

Page 3

Appendix
Table: Cash Flow

Pro Forma Cash Flow

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Cash Sales

$13,100

$14,465

$15,429

$18,122

$20,176

$22,232

$24,935

$28,334

$31,890

$35,971

$40,656

$45,734

Subtotal Cash from Operations

$13,100

$14,465

$15,429

$18,122

$20,176

$22,232

$24,935

$28,334

$31,890

$35,971

$40,656

$45,734

$872
$0

$963
$1,000

$1,028
$1,000

$1,207
$0

$1,344
$0

$1,481
$0

$1,661
$0

$1,887
$1,000

$2,124
$0

$2,396
$0

$2,708
$2,000

$3,046
$0

New Other Liabilities (interest-free)

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Long-term Liabilities

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales of Other Current Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales of Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Investment Received

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Subtotal Cash Received

$13,972

$16,428

$17,457

$19,328

$21,520

$23,713

$26,595

$31,221

$34,014

$38,367

$45,363

$48,779

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

Cash Received
Cash from Operations

Additional Cash Received

Sales Tax, VAT, HST/GST Received
New Current Borrowing

6.66%

Expenditures from Operations

Cash Spending

$1,000

$2,000

$2,000

$4,000

$4,500

$8,499

$8,699

$8,699

$10,499

$10,499

$10,749

$10,999

Bill Payments

$6,429

$13,056

$18,478

$8,061

$12,625

$13,125

$13,323

$14,762

$16,595

$17,542

$19,982

$22,195

Subtotal Spent on Operations

$7,429

$15,056

$20,478

$12,061

$17,125

$21,624

$22,022

$23,461

$27,094

$28,041

$30,731

$33,194

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out

$872

$963

$1,028

$1,207

$1,344

$1,481

$1,661

$1,887

$2,124

$2,396

$2,708

$3,046

Principal Repayment of Current Borrowing

$0

$0

$500

$1,000

$500

$0

$0

$0

$1,000

$0

$0

$500

Other Liabilities Principal Repayment

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$1,336

$1,342

$1,349

$1,356

$1,363

$1,370

$1,376

$1,383

$1,390

$1,397

$1,404

$1,410

Long-term Liabilities Principal Repayment

Purchase Other Current Assets
Purchase Long-term Assets
Dividends

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$200

$200

$200

$200

$200

$200

$200

$200

$200

$200

$200

$200

$0

$0

$0

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

Subtotal Cash Spent

$9,837

$17,561

$23,555

$16,824

$21,532

$25,674

$26,259

$27,931

$32,808

$33,034

$36,042

$39,350

Net Cash Flow

$4,135

($1,133)

($6,098)

$2,504

($12)

($1,961)

$336

$3,290

$1,206

$5,333

$9,321

$9,429

Cash Balance

$14,135

$13,003

$6,904

$9,409

$9,397

$7,435

$7,772

$11,062

$12,268

$17,601

$26,922

$36,352

Page 4

Appendix
Table: Balance Sheet

Pro Forma Balance Sheet

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$10,000
$2,000
$30,000
$42,000

$14,135
$4,855
$30,000
$48,990

$13,003
$11,219
$30,000
$54,221

$6,904
$7,633
$30,000
$44,538

$9,409
$8,403
$30,000
$47,812

$9,397
$9,012
$30,000
$48,409

$7,435
$9,496
$30,000
$46,932

$7,772
$10,357
$30,000
$48,128

$11,062
$11,620
$30,000
$52,682

$12,268
$12,837
$30,000
$55,105

$17,601
$14,284
$30,000
$61,886

$26,922
$16,007
$30,000
$72,929

$36,352
$17,818
$30,000
$84,170

$100,000
$0
$100,000
$142,000

$100,200
$1,666
$98,534
$147,524

$100,400
$3,332
$97,068
$151,289

$100,600
$4,998
$95,602
$140,140

$100,800
$6,664
$94,136
$141,948

$101,000
$8,330
$92,670
$141,079

$101,200
$9,996
$91,204
$138,136

$101,400
$11,662
$89,738
$137,866

$101,600
$13,328
$88,272
$140,954

$101,800
$14,994
$86,806
$141,911

$102,000
$16,660
$85,340
$147,226

$102,200
$18,326
$83,874
$156,803

$102,400
$19,992
$82,408
$166,578

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$6,000
$0
$5,500
$11,500

$12,428
$0
$5,500
$17,928

$18,215
$1,000
$5,500
$24,715

$7,641
$1,500
$5,500
$14,641

$12,188
$500
$5,500
$18,188

$12,682
$0
$5,500
$18,182

$12,833
$0
$5,500
$18,333

$14,209
$0
$5,500
$19,709

$16,013
$1,000
$5,500
$22,513

$16,879
$0
$5,500
$22,379

$19,244
$0
$5,500
$24,744

$21,386
$2,000
$5,500
$28,886

$23,476
$1,500
$5,500
$30,476

Long-term Liabilities
Total Liabilities

$119,000
$130,500

$117,664
$135,592

$116,322
$141,037

$114,973
$129,614

$113,617
$131,805

$112,254
$130,436

$110,884
$129,217

$109,508
$129,217

$108,125
$130,638

$106,735
$129,114

$105,338
$130,082

$103,934
$132,820

$102,524
$133,000

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

$35,000
($23,500)
$0
$11,500
$142,000

$35,000
($23,500)
$433
$11,933
$147,524

$35,000
($23,500)
($1,247)
$10,253
$151,289

$35,000
($23,500)
($974)
$10,526
$140,140

$35,000
($24,500)
($357)
$10,143
$141,948

$35,000
($25,500)
$1,143
$10,643
$141,079

$35,000
($26,500)
$418
$8,918
$138,136

$35,000
($27,500)
$1,149
$8,649
$137,866

$35,000
($28,500)
$3,816
$10,316
$140,954

$35,000
($29,500)
$7,297
$12,797
$141,911

$35,000
($30,500)
$12,643
$17,143
$147,226

$35,000
($31,500)
$20,484
$23,984
$156,803

$35,000
($32,500)
$31,078
$33,578
$166,578

$11,500

$11,933

$10,253

$10,526

$10,143

$10,643

$8,918

$8,649

$10,316

$12,797

$17,143

$23,984

$33,578

Assets

Starting Balances

Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

Net Worth

Page 5