Furniture Manufacturer Sample Business Plan 2

Willamette Furniture - Sample Plan This sample business plan was created using Business Plan Pro®business planning software published by Palo Alto Software, Inc. This plan may be edited using Business Plan Pro and is one of 500+ sample plans available from within the software. To learn more about Business Plan Pro and other planning products for small and medium sized businesses, visit us at www.paloalto.com. This is a sample business plan and the names, locations and numbers may have been changed, and substantial portions of the original plan text may have been omitted to preserve confidentiality and proprietary information. Requests for reprints, academic use, and other dissemination of this sample plan should be emailed to the marketing department of Palo Alto Software at marketing@paloalto.com. For product information visit our Website: www.paloalto.com or call: 1-800-229-7526. sin Copyright © Palo Alto Software, Inc., 1995-2008. ess All rights reserved. Bu Pla You are welcome to use this plan as a starting point to create your own, but you do not have permission to resell, reproduce, publish, distribute or even copy this plan as it exists here. Academic Edition nP ro Sa mp le Confidentiality Agreement It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to _________________________. Upon request, this document is to be immediately returned to _________________________. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a business plan. It does not imply an offering of securities. Bu sin ess Academic Edition Pla nP ro Sa mp The undersigned reader acknowledges that the information provided by _________________________ in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _________________________. le Table of Contents 1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 2 2 2.0 3.0 4.0 Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Market Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1 Market Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2 Target Market Segment Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3 Industry Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3.1 Competition and Buying Patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Strategy and Implementation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.1 Competitive Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3 Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3.1 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4 Milestones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 6 6 6 7 7 7 8 9 11 5.0 6.0 7.0 Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 6.1 Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.1 Important Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.2 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.3 Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.4 Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.5 Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.6 Business Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 13 14 15 18 20 21 Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Bu sin ess Academic Edition Pla nP ro Sa mp Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2.1 Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2.2 Company History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 le Willamette Furniture Mfr. 1.0 Executive Summary This annual business plan calls for another three years of accelerated growth. Because our sales growth has brought some working capital implications, we are carefully planning to manage growth and provide for steady cash flow. We also expect to be profitable as never before. In all, this plan is a healthy company with good growth prospects, looking to manage its orderly growth in the near future. Highlights $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 nP Pla 1998 1999 2000 ro Sales Gross Margin Net Profit 1.1 Objectives 1. 2. 3. Bu sin ess Focus on the new channels to increase sales beyond the $1 million mark by 2000. Maintain a gross margin close to 60%, despite the sales increase. Increase the net profit significantly by 2000. Academic Edition Sa mp le Willamette Furniture Mfr. has been riding a growth spurt, having discovered the high-end direct mail channel that gave us a push to new potential volumes through channels. Bolstered by appearances in specialty catalogs, we were able to develop another additional channel through distributors of office equipment that sell directly to corporations. Page 1 Willamette Furniture Mfr. 1.2 Mission Willamette Furniture Mfr. helps create pleasant, productive office environments with welldesigned furniture that incorporates new technology into the classic office mode, in which real people can work happily. We are sensitive to the look and feel of good wood and fine furniture as well as to high-powered personal computing. We always provide the best possible value to our customers who care about quality office environments, and we want every dollar spent with us to be well spent. We also create and nurture a healthy, creative, respectful, and fun office and workshop environment, in which our employees are fairly compensated and encouraged to respect the customer and the quality of the product we produce. We seek fair and responsible profit, enough to keep the company financially healthy for the long term and to fairly compensate owners and investors for their money and risk. 1.3 Keys to Success Willamette Furniture Mfr. is a privately-owned specialty manufacturer of high-end office furniture for computer users who care about elegant office space. Our customers are in all levels of business that can afford very high quality office furniture, plus a growing portion of high-end home offices. 2.1 Company Ownership Bu sin Willamette Furniture Mfr. is an Oregon corporation, subchapter S, owned entirely by Jim and Susan Graham. It was created in 1992. At that time the product line and industrial property rights (including trademarks) were purchased from the heirs to the Willamette Association, which was a 1970s commune in rural Oregon. ess Pla 2.0 Company Summary Academic Edition nP • Uncompromising commitment to the quality of the end product: quality wood, quality workmanship, quality design, quality of end result. • Successful niche marketing: we need to find the quality-conscious customer in the right channels, and we need to make sure that customer can find us. • Almost-automatic assembly: we can't afford to ship fully-assembled desks, but assembly must be so easy and automatic that it makes the customer feel better about the quality, not worse. ro Sa Page 2 mp le Willamette Furniture Mfr. 2.2 Company History Sales took a big jump in 1997, when we reached more effective channels of distribution. The key was winning a place in the Premier Executive office furniture catalog, which led to winning the interest of the Needham furniture distributors, and display space in several hundred stores. Past Performance $250,000 $200,000 $150,000 nP Pla 1995 1996 1997 ro Sales Gross Net $100,000 $50,000 $0 Bu sin ess Academic Edition Sa Profitability and working capital were problems during our recent growth, but we believe we now have costs and cash flow under control. mp le Willamette Furniture Mfr. had actually existed since the 1970s as a "hippy commune," but its present existence began in 1992 when the furniture line was purchased by Jim and Susan Graham. The Grahams moved to Oregon from California and purchased the business as part of the move. Page 3 Willamette Furniture Mfr. Table: Past Performance Past Performance Sales Gross Margin Gross Margin % Operating Expenses Collection Period (days) Inventory Turnover Balance Sheet 1995 Current Assets Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities (interest free) Total Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 1996 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0 $0 0.00 1995 $127,809 $58,381 45.68% $54,602 0 4.00 1996 $130,568 $72,374 55.43% $69,801 0 4.70 1997 $225,790 $105,245 46.61% $90,125 36 6.00 1997 nP 0 $0 0.00 Pla Total Capital and Liabilities Other Inputs Payment Days Sales on Credit Receivables Turnover ess Bu sin 3.0 Products Willamette Furniture Mfr. offers very high quality office furniture designed to effectively incorporate computer machinery into the executive office or home office. The key to the line is an ergonomically effective desk that still looks like an executive desk, looks very good in a high-end home office, but is intended to accommodate the personal computer. Academic Edition ro Sa $3,210 $1,720 $1,490 $43,049 $11,191 $0 $1,803 $12,994 $0 $12,994 $4,500 $13,100 $12,455 $30,055 $43,049 35 $140,434 5.09 $1,438 $27,605 $10,141 $2,375 $41,559 mp Page 4 le Willamette Furniture Mfr. 4.0 Market Analysis Summary 4.1 Market Segmentation Pla ess Corporate Executives Small business owners Home offices Other Bu sin Academic Edition nP • Home offices: the home office business has proliferated during the 1990s, and we also have home offices for people employed outside the home. This is a big market, some 36 million home offices, growing faster than other markets. Market Analysis (Pie) ro • Small business owners: our customer surveys indicate a strong market among the owners of businesses with fewer than 100 employees. There are 11 million such businesses in this country, most of them with concentrated ownership that makes the owners potential customers. Sa • Corporate executives: our market research indicates about 2.5 million potential customers who are managers in corporations of more than 100 employees. The target customer is going to be at a high executive level, in most cases, because the purchase price is relatively steep compared to standard office furniture. mp le Our target market is a person who wants to have very fine furniture with the latest in technology, combined with an old fashioned sense of fine woods and fine woodworking. This person can be in the corporate towers, small or medium business, or in a home office. The common bond is the appreciation of quality, and the lack of price constraints. Page 5 Willamette Furniture Mfr. Table: Market Analysis Market Analysis Potential Customers Corporate Executives Small business owners Home offices Other Total Growth 1% 4% 10% 3% 8.23% 1998 2,500,000 11,000,000 36,000,000 1,000,000 50,500,000 1999 2,525,000 11,440,000 39,600,000 1,030,000 54,595,000 2000 2,550,250 11,897,600 43,560,000 1,060,900 59,068,750 2001 2002 CAGR 1.00% 4.00% 10.00% 3.00% 8.23% 4.2 Target Market Segment Strategy 4.3 Industry Analysis Makers of higher quality furniture are in general shuffling for niches to hide in. Although Willamette Furniture Mfr. was essentially developed around a niche, many of the more traditional furniture makers are looking for niches, trying to deal with declining sales as the main volume goes elsewhere. 4.3.1 Competition and Buying Patterns In the mainstream business, channels are critical to volume. The manufacturers with impact in the national sales are going to win display space in the store, and most buyers seem content to pick their product off the store floor. Price is critical, because the channels take significant margins. Buyers are willing to settle for laminated quality and serviceable design. In direct sales to corporations, price and volume is critical. The corporate buyer wants troublefree buying in volume, at a great price. Reliable delivery is as important as reliable quality. In the high-end specialty market, particularly in our niche, features are very important. Our target customer is not making selections based on price. The ergonomics, design, accommodation of the computer features within the high-quality feel of good wood, is much more important than mere price. We are also seeing that assembly is critical to shipping and packing, but our customer doesn't accept any assembly problems. We need to make sure that the piece comes together almost like magic, and as it does, it presents a greater feel of quality than if it hadn't required assembly at all. Bu sin ess Pla The office furniture industry has undergone a great deal of change in this decade. The growth of the office superstores made a few large brands dominant. They produce relatively inexpensive furniture that makes compromises in order to stay at the low price level. Academic Edition nP ro In our particular market, we also seek the buyer who appreciates two attributes: the quality of furniture workmanship and the excellence of design, with an understanding of technology and ergonomics built in. Sa Our segment definition is of itself strategic. We are not intending to satisfy all users of office furniture intended for use with personal computers, but, rather, only those who are most demanding. We are definitely out to address the needs of the high-end buyer, who is willing to pay more for quality. mp 2,575,753 12,373,504 47,916,000 1,092,727 63,957,984 le 2,601,511 12,868,444 52,707,600 1,125,509 69,303,064 Page 6 Willamette Furniture Mfr. 5.0 Strategy and Implementation Summary We focus on a special kind of customer, the person who wants very high quality office furniture customized to work beautifully with modern technology including personal computers, scanners, internet connections, and other high-tech items. Our customer might be in larger corporations, small or medium business, or in a home office with or without a home-office business. What is important to the customer is elegance, fine workmanship, ease of use, ergonomics, and practicality. Our marketing strategy assumes that we need to go into specialty channels to address our target customer's needs. The tie-in with the high-end quality catalogs like Sharper Image is perfect, because these catalogs cater to our kind of customers. We position as the highest quality, offering status and prestige levels of purchase. The product strategy is also based on quality, in this case the intersection of technical understanding with very high quality woodworking and professional materials, and workmanship. Our most important competitive edge is our assembly strategy, which is based on interlocking wood pieces of such high quality that assembly is not only a pleasure for our customers, it is actually a feature that enhances the sense of quality. 5.1 Competitive Edge 5.2 Marketing Strategy Bu sin Our marketing strategy is based mainly on making the right information available to the right target customer. We can't afford to sell people on our expensive products, because most don't have the budget. What we really do is make sure that those who have the budget and appreciate the product know that it exists, and know where to find it. The marketing has to convey the sense of quality in every picture, every promotion, and every publication. We can't afford to appear in second-rate catalogs with poor illustrations that make the product look less than it is. We also need to leverage our presence using highquality catalogs and specialty distributors. ess Our product is positioned very carefully: this is high-quality office furniture combining workmanship and ergonomics for the customer who understands quality, is a user of high technology equipment, and is willing to spend money on the best. Unlike the mainstream products, we do not use laminates or cheap manufacturing technology. Pla Our competitive edge is our dominance of high-technology ergonomics and traditional highquality furniture workmanship. Although there are many computer furniture manufacturers, and many computer lovers, few have brought the two crafts together as we have. Academic Edition nP ro Sa mp le Page 7 Willamette Furniture Mfr. 5.3 Sales Strategy For the next year we continue to focus on growing presence in the high-end direct mail catalog that finds our specialty customer. We will work with Sharper Image and Broadview more than ever, and we expect to gain position in the major airline catalogs as well. Specialty retail is a new channel that could become important for us. Bu sin ess Academic Edition Pla nP ro Page 8 Sa Our work with distributors has been promising. We hope to continue the relationship with distributors selling directly to larger corporations, even though this takes working capital to support receivables. mp le Our strategy focuses first on maintaining the identity with the high-end buyer who appreciates the best available quality, but is also very demanding regarding computer systems and technology. We've been able to find these customers using a combination of direct mail catalogs and direct sales to distributors. Willamette Furniture Mfr. 5.3.1 Sales Forecast Our seasonality, as shown in the chart, is still a factor in the business. We tend to sell much better in Spring and Fall, and sales drop in the summer. Table: Sales Forecast Sales Forecast Unit Sales Executive desk oak Executive desk cherry Other furniture oak Other furniture cherry Other Total Unit Sales Unit Prices Executive desk oak Executive desk cherry Other furniture oak Other furniture cherry Other Sales Executive desk oak Executive desk cherry Other furniture oak Other furniture cherry Other Total Sales Direct Unit Costs Executive desk oak Executive desk cherry Other furniture oak Other furniture cherry Other 1998 ro 1999 350 30 50 10 10 450 1999 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00 $560,000 $52,500 $45,000 $10,000 $25,000 $692,500 1999 $400.00 $525.00 $180.00 $300.00 $625.00 $140,000 $15,750 $9,000 $3,000 $6,250 $174,000 nP 209 31 45 7 6 298 Pla $334,400 $54,250 $40,500 $7,000 $15,000 $451,150 1998 $400.00 $525.00 $180.00 $300.00 $625.00 $83,600 $16,275 $8,100 $2,100 $3,750 $113,825 1998 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00 ess sin Bu Direct Cost of Sales Executive desk oak Executive desk cherry Other furniture oak Other furniture cherry Other Subtotal Direct Cost of Sales Academic Edition Sa 2000 600 30 50 10 10 700 2000 $1,600.00 $1,600.00 $900.00 $1,000.00 $1,600.00 $960,000 $48,000 $45,000 $10,000 $16,000 $1,079,000 2000 $400.00 $480.00 $180.00 $300.00 $400.00 $240,000 $14,400 $9,000 $3,000 $4,000 $270,400 We are projecting significant change in the product line, or in the proportion between different lines. The key to our growth is the growth of the new channels, with the main desk. mp We are expecting to increase sales, growing from $225 thousand last year to $450 thousand in the next year, which is about doubling in size. The growth forecast is in line with our last year, and is relatively high for our industry because we are developing new channels. In 1999 and 2000 we expect growth closer to 50% per year, to a projected total of more than $1 million in 2000. le Our sales forecast assumes no change in costs or prices, which is a reasonable assumption for the last few years. Page 9 Willamette Furniture Mfr. Sales Monthly $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Jan Feb Mar Apr May Jun Sa Jul Aug Sep Oct Nov Dec $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Pla 1998 1999 2000 $1,200,000 nP Sales by Year ro ess Bu sin Academic Edition mp Other Other le Executive desk oak Executive desk cherry Other furniture oak Other furniture cherry Executive desk oak Executive desk cherry Other furniture oak Other furniture cherry Page 10 Willamette Furniture Mfr. 5.4 Milestones Table: Milestones Milestones Milestone Spring trade show Spring trade show Spring trade show Our in-house catalog plan First catalog New distributor New distributor Second catalog In-house catalog design In-house catalog mailing Third catalog placement Fall trade show Fall trade show Fall trade show Laptop product test Laptop product release Totals Start Date 1/1/1998 1/15/1998 1/15/1998 1/31/1998 3/1/1998 3/15/1998 3/15/1998 4/1/1998 4/1/1998 5/1/1998 5/15/1998 5/15/1998 5/15/1998 5/15/1998 6/15/1998 1/1/1998 End Date 5/15/1998 5/15/1998 5/15/1998 2/28/1998 4/15/1998 3/30/1998 4/30/1998 5/15/1998 5/1/1998 6/1/1998 6/15/1998 10/15/1998 10/15/1998 10/15/1998 6/20/1998 10/15/1998 Budget $10,000 $20,000 $6,000 $125,000 $5,000 $3,000 $85,000 $2,000 $5,000 $54,000 $8,000 $20,000 $6,000 $1,000 $15,000 $365,000 Sa $0 Terry Jan Jan Jan Jan Terry Terry Jan Terry Terry Terry Jim Terry We are a small company owned and operated by Jim and Susan Graham, husband and wife, as a Subchapter S corporation. Jim is the developer and designer of the products, and Susan manages the company as president. Management style reflects the participation of the owners. The company respects its community of co-workers and treats all workers well. We attempt to develop and nurture the company as community. We are not very hierarchical. 6.1 Personnel Plan Bu sin The personnel table assumes slow growth in employees, and 10% per annum pay raises. We already have a strong benefits policy (with fully-paid medical, dental, and life insurance, plus a profit sharing and 401K plan) and very low turnover. Salaries are generally in line with market pay for the Eugene area, although our benefits are above standard market level, so we ultimately pay a bit more for our people than what might be considered standard in our market. Eugene, however, is on average a lower wage location than most of the more developed industry areas. As we grow, we expect to see steady increases in our personnel to match the increases in sales. ess Pla 6.0 Management Summary Academic Edition nP ro mp Manager Terry Terry Terry Department PR Events Travel Other Ads Travel Sales Ads Other Other Ads PR Events Travel Other PR le The accompanying table shows specific milestones, with responsibilities assigned, dates, and (in most cases) budgets. We are focusing in this plan on a few key milestones that should be accomplished. Page 11 Willamette Furniture Mfr. Table: Personnel Personnel Plan Name or Title or Group Name or Title or Group Name or Title or Group Total People Total Payroll 1998 $0 $0 $0 0 $0 1999 $0 $0 $0 0 $0 2000 $0 $0 $0 0 $0 Bu sin ess Academic Edition Pla nP ro Page 12 Sa mp le Willamette Furniture Mfr. 7.0 Financial Plan 7.1 Important Assumptions The accompanying table lists our main assumptions for developing our financial projections. The most sensitive assumption is the collection days. We would like to improve collection days to take pressure off of our working capital, but our increasing sales through channels makes the collection time a cost of doing business. We also expect to see a decline in our inventory turnover ratio, another unfortunate side effect of increasing sales through channel. We find ourselves having to buy earlier and hold more finished goods in order to deal with sales through the channel. Table: General Assumptions General Assumptions Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other Bu sin ess Academic Edition Pla 1998 1 10.00% 90.00% 25.42% 0 nP 1999 2 10.00% 90.00% 25.00% 0 ro Sa 2000 3 10.00% 90.00% 25.00% 0 mp We do expect to be able to take some money out as dividends. The owners don't take overly generous salaries, so some draw is appropriate. le The financial picture is quite encouraging. We have been slow to take on debt, but with our increase in sales we do expect to apply for a credit line with the bank, to a limit of $150,000. The credit line is easily supported by assets. Page 13 Willamette Furniture Mfr. 7.2 Break-even Analysis The essential insight here is that our sales level seems to be running comfortably above break-even. Table: Break-even Analysis Break-even Analysis Monthly Units Break-even Monthly Revenue Break-even Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost 1 $1,137 $1,513.93 $381.96 $850 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 ess ($2,000) 0 Pla 2 4 6 8 10 sin Break-even point = where line intersects with 0 Bu Academic Edition nP Break-even Analysis Monthly break-even point ro Page 14 Sa mp Our assumptions on average unit sales and average per-unit costs depend on averaging. We don't really need to calculate an exact average, this is close enough to help us understand what a real break-even point might be. le Our break-even analysis is based on running costs, the "burn-rate" costs we incur to keep the business running, not on theoretical fixed costs that would be relevant only if we were closing. Willamette Furniture Mfr. 7.3 Projected Profit and Loss We do expect a significant increase in profitability this year, and in the future, because we have learned how to deal with the increasing sales levels of selling through channels. Despite the lower profitability levels of recent years, we expect to see very strong net profits in 1998, and remain at that level through 2000. Our higher sales volume has lowered our cost of goods and increased our gross margin. This increase in gross margin is important to profitability. Table: Profit and Loss Pro Forma Profit and Loss Sales Direct Costs of Goods Other Costs of Goods Cost of Goods Sold Gross Margin Gross Margin % Expenses Payroll Marketing/Promotion Depreciation Leased Equipment Rent Utilities Insurance Payroll Taxes Other 1998 $451,150 $113,825 $3,110 -----------$116,935 $334,215 74.08% ro nP Pla $0 $0 $1,000 $1,500 $3,600 $2,400 $500 $0 $1,200 -----------$10,200 $324,015 $325,015 $6,094 $80,422 $237,500 52.64% Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales ess Bu sin Academic Edition Sa 1999 $692,500 $174,000 $0 -----------$174,000 $518,500 74.87% $0 $0 $1,100 $1,700 $4,000 $2,600 $600 $0 $1,300 -----------$11,300 $507,200 $508,300 $5,875 $125,331 $375,994 54.30% mp 2000 $1,079,000 $270,400 $0 -----------$270,400 $808,600 74.94% $0 $0 $1,200 $1,900 $4,400 $2,900 $700 $0 $1,400 -----------$12,500 $796,100 $797,300 $4,875 $197,806 $593,419 55.00% le Page 15 Willamette Furniture Mfr. Profit Monthly $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Jan Feb Mar Apr May Jun $500,000 $400,000 $300,000 $200,000 $100,000 $0 sin ess 1998 1999 2000 Bu Pla Academic Edition $600,000 nP Profit Yearly ro Sa Jul Aug Sep Oct Nov Dec mp Page 16 le Willamette Furniture Mfr. Gross Margin Monthly $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Jan Feb Mar Apr May Jun $800,000 $700,000 $600,000 $500,000 $400,000 sin ess $300,000 $200,000 $100,000 $0 1998 1999 2000 Bu Pla Academic Edition $900,000 nP Gross Margin Yearly ro Sa Jul Aug Sep Oct Nov Dec mp Page 17 le Willamette Furniture Mfr. 7.4 Projected Cash Flow Although we expect to be more profitable in 1998, we still have drains on the cash flow. We need to invest $25,000 in new assembly and manufacturing equipment, plus $15,000 in new computer equipment, and another $10,000 in miscellaneous short-term assets, including office equipment. Because of our increased sales through channels, and necessary increase in inventory levels, we need to increase working capital. We plan to extend our credit line to cover as much as $150,000 in short-term credit, backed by receivables and inventory. Table: Cash Flow Pro Forma Cash Flow 1998 Cash Received Cash from Operations Cash Sales Cash from Receivables 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 $112,788 $288,966 $401,754 1999 $0 $125,000 $0 $0 $0 $0 $50,000 $576,754 1998 ro $0 $50,000 $0 $0 $0 $0 $0 $701,307 1999 $0 $314,656 $314,656 $0 $50,000 $0 $0 $0 $20,000 $0 $384,656 $316,651 $572,139 $173,125 $478,182 $651,307 nP $0 $206,453 $206,453 $0 $66,250 $0 $0 $0 $50,000 $0 $322,703 $254,051 $255,489 Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Pla sin 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 ess Bu Academic Edition Sa 2000 $269,750 $743,283 $1,013,033 $0 $100,000 $0 $0 $0 $0 $0 $1,113,033 2000 $0 $480,399 $480,399 $0 $120,000 $0 $0 $0 $30,000 $0 $630,399 $482,634 $1,054,773 mp le Page 18 Willamette Furniture Mfr. Cash $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Jan Feb Mar Apr May Jun Bu sin ess Pla Academic Edition nP ro Jul Aug Sep Oct Nov Dec Sa mp le Net Cash Flow Cash Balance Page 19 Willamette Furniture Mfr. 7.5 Projected Balance Sheet Our projected balance sheet shows an increase in net worth to more than $400 thousand in 2000, at which point we expect to be making compelling profits on sales of $1.1 million. With the present financial projections we will be careful in supporting our working capital credit line, and we are growing assets both because we want to -- new equipment -- and because we have to grow receivables and inventory to support growth in sales through channels. Table: Balance Sheet Pro Forma Balance Sheet 1998 Assets Current Assets Cash Accounts Receivable 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 Long-term Liabilities Total Liabilities $255,489 $77,001 $12,070 $2,375 $346,935 $53,210 $2,720 $50,490 $397,425 1998 $572,139 $118,194 $18,451 $2,375 $711,160 $73,210 $3,820 $69,390 $780,550 1999 1999 2000 nP $26,448 $58,750 $1,803 $87,001 $0 $87,001 $54,500 $263,055 $375,994 $693,548 $780,550 $693,548 Pla $0 $84,280 $54,500 $25,555 $237,500 $317,555 $401,835 $313,145 $23,727 $58,750 $1,803 $84,280 Net Worth ess Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Bu sin Academic Edition ro $103,210 $5,020 $98,190 $1,368,173 2000 $40,652 $38,750 $1,803 $81,205 $0 $81,205 $54,500 $639,048 $593,419 $1,286,967 $1,368,173 $1,286,967 Sa $1,054,773 $184,161 $28,673 $2,375 $1,269,983 mp le Page 20 Willamette Furniture Mfr. 7.6 Business Ratios Table: Ratios Ratio Analysis Sales Growth Percent of Total Assets Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth 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 Net Profit Margin Return on Equity 1998 99.81% 19.38% 3.04% 0.60% 87.30% 12.70% 100.00% 21.21% 0.00% 21.21% 78.79% 1999 53.50% Sa 15.14% 2.36% 0.30% 91.11% 8.89% 100.00% 11.15% 0.00% 11.15% 88.85% 100.00% 74.87% 20.58% 0.00% 73.24% 8.17 7.96 11.15% 72.28% 64.23% 1999 54.30% 54.21% 4.39 69 11.40 12.17 28 0.89 0.13 1.00 $624,158 86.33 1.13 11% 6.60 1.00 mp 2000 55.81% 13.46% 2.10% 0.17% 92.82% 7.18% 100.00% 5.94% 0.00% 5.94% 94.06% 100.00% 74.94% 19.94% 0.00% 73.78% 15.64 15.29 5.94% 61.48% 57.83% 2000 55.00% 46.11% 4.39 68 11.48 12.17 25 0.79 0.06 1.00 $1,188,777 163.30 1.27 6% 13.02 0.84 ro 21.44% 0.00% 71.82% 1998 52.64% 75.84% 4.39 58 12.00 9.04 30 1.14 0.27 1.00 0.88 21% 3.06 1.44 nP 100.00% 74.08% 4.12 3.97 21.21% 101.53% 80.00% $262,655 53.17 Pla ess le Our ratios look healthy and solid. Gross margin is projected to decline slightly, return on assets will run well above industry standards, and return on equity is excellent. Debt and liquidity ratios also look good, with our Quick ratio increasing over the next three years. The standard comparisons are based on SIC code 2521, manufacturers of wood office furniture. Industry Profile 4.60% 23.80% 32.10% 19.00% 74.90% 25.10% 100.00% 38.40% 15.90% 54.30% 45.70% 100.00% 32.40% 18.90% 1.40% 1.80% 2.14 1.02 54.30% 5.10% 11.10% n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a Bu sin Debt Ratios Debt to Net Worth Current Liab. to Liab. Liquidity Ratios Net Working Capital Interest Coverage Activity Ratios Accounts Receivable Turnover Collection Days Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Academic Edition Page 21 Appendix Table: Sales Forecast Sales Forecast Jan-98 Unit Sales Executive desk oak Executive desk cherry Other furniture oak Other furniture cherry Other Total Unit Sales Unit Prices Executive desk oak Executive desk cherry Other furniture oak Other furniture cherry Other Sales Executive desk oak Executive desk cherry Other furniture oak Other furniture cherry Other Total Sales Direct Unit Costs Executive desk oak Executive desk cherry Other furniture oak Other furniture cherry Other Direct Cost of Sales Executive desk oak Executive desk cherry Other furniture oak Other furniture cherry Other Subtotal Direct Cost of Sales 25.00% 30.00% 20.00% 30.00% 25.00% 15% 5% 5% 5% 20% 14 2 3 0 1 20 Jan-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00 $22,400 $3,500 $2,700 $0 $2,500 $31,100 Jan-98 $400.00 $525.00 $180.00 $300.00 $625.00 $5,600 $1,050 $540 $0 $625 $7,815 Feb-98 16 3 4 1 0 24 Feb-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00 $25,600 $5,250 $3,600 $1,000 $0 $35,450 Feb-98 $400.00 $525.00 $180.00 $300.00 $625.00 Mar-98 16 3 4 0 0 23 Mar-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00 $25,600 $5,250 $3,600 $0 $0 $34,450 Mar-98 $400.00 $525.00 $180.00 $300.00 $625.00 Apr-98 16 3 4 0 1 24 Apr-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00 $25,600 $5,250 $3,600 $0 $2,500 $36,950 May-98 15 2 3 0 1 21 May-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00 $24,000 $3,500 $2,700 $0 $2,500 $32,700 May-98 $400.00 $525.00 $180.00 $300.00 $625.00 $6,000 $1,050 $540 $0 $625 $8,215 Jun-98 12 2 3 1 0 18 Jun-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00 $19,200 $3,500 $2,700 $1,000 $0 $26,400 Jun-98 $400.00 $525.00 $180.00 $300.00 $625.00 Jul-98 12 2 3 0 1 18 Aug-98 15 2 4 1 0 22 Sep-98 15 3 4 1 0 23 u B in s s e $6,400 $1,575 $720 $300 $0 $8,995 P s $6,400 $1,575 $720 $0 $0 $8,695 n la Apr-98 $400.00 $525.00 $180.00 $300.00 $625.00 $6,400 $1,575 $720 $0 $625 $9,320 r P $4,800 $1,050 $540 $300 $0 $6,690 S o Jul-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00 $19,200 $3,500 $2,700 $0 $2,500 $27,900 Jul-98 $400.00 $525.00 $180.00 $300.00 $625.00 $4,800 $1,050 $540 $0 $625 $7,015 Aug-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00 $24,000 $3,500 $3,600 $1,000 $0 $32,100 Aug-98 $400.00 $525.00 $180.00 $300.00 $625.00 $6,000 $1,050 $720 $300 $0 $8,070 m a Sep-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00 $24,000 $5,250 $3,600 $1,000 $0 $33,850 Sep-98 $400.00 $525.00 $180.00 $300.00 $625.00 $6,000 $1,575 $720 $300 $0 $8,595 le p Oct-98 26 4 4 1 1 36 Oct-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00 $41,600 $7,000 $3,600 $1,000 $2,500 $55,700 Oct-98 $400.00 $525.00 $180.00 $300.00 $625.00 $10,400 $2,100 $720 $300 $625 $14,145 Nov-98 27 3 5 1 1 37 Dec-98 25 2 4 1 0 32 Dec-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00 $40,000 $3,500 $3,600 $1,000 $0 $48,100 Dec-98 $400.00 $525.00 $180.00 $300.00 $625.00 $10,000 $1,050 $720 $300 $0 $12,070 Nov-98 $1,600.00 $1,750.00 $900.00 $1,000.00 $2,500.00 $43,200 $5,250 $4,500 $1,000 $2,500 $56,450 Nov-98 $400.00 $525.00 $180.00 $300.00 $625.00 $10,800 $1,575 $900 $300 $625 $14,200 Academic Edition Page 22 Appendix Table: Personnel Personnel Plan Name or Title or Group Name or Title or Group Name or Title or Group Total People Total Payroll 0% 0% 0% Jan-98 $0 $0 $0 0 $0 Feb-98 $0 $0 $0 0 $0 Mar-98 $0 $0 $0 0 $0 Apr-98 $0 $0 $0 0 $0 May-98 $0 $0 $0 0 $0 Jun-98 $0 $0 $0 0 $0 Jul-98 $0 $0 $0 0 $0 Aug-98 $0 $0 $0 0 $0 Sep-98 $0 $0 $0 0 $0 u B in s s e P s n la r P S o m a le p Oct-98 $0 $0 $0 0 $0 Nov-98 $0 $0 $0 0 $0 Dec-98 $0 $0 $0 0 $0 Academic Edition Page 23 Appendix Table: Profit and Loss Pro Forma Profit and Loss Sales Direct Costs of Goods Other Costs of Goods Cost of Goods Sold Gross Margin Gross Margin % Expenses Payroll Marketing/Promotion Depreciation Leased Equipment Rent Utilities Insurance Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales Jan-98 $31,100 $7,815 $3,110 -----------$10,925 $20,175 64.87% Feb-98 $35,450 $8,995 $0 -----------$8,995 $26,455 74.63% Mar-98 $34,450 $8,695 $0 -----------$8,695 $25,755 74.76% Apr-98 $36,950 $9,320 $0 -----------$9,320 $27,630 74.78% May-98 $32,700 $8,215 $0 -----------$8,215 $24,485 74.88% Jun-98 $26,400 $6,690 $0 -----------$6,690 $19,710 74.66% Jul-98 $27,900 $7,015 $0 -----------$7,015 $20,885 74.86% Aug-98 $32,100 $8,070 $0 -----------$8,070 15% $0 $0 $0 $125 $300 $200 $0 $0 $100 -----------$725 $19,450 $19,450 $625 $5,648 $13,178 42.37% $0 $0 $0 $125 $300 $200 $0 $0 $100 -----------$725 $25,730 $25,730 $615 $6,279 $0 $0 $0 $125 $300 $200 $0 $0 $100 -----------$725 $25,030 $25,030 $563 $6,117 u B in s s e P s $18,837 53.14% $18,351 53.27% n la $26,905 $26,905 $552 $6,588 $19,765 53.49% $0 $0 $0 $125 $300 $200 $0 $0 $100 -----------$725 $0 $0 $0 $125 $300 $200 $0 $0 $100 -----------$725 $23,760 $23,760 $510 $5,812 r P $0 $0 $0 $125 $300 $200 $0 $0 $100 -----------$725 $18,985 $18,985 $469 $4,629 S o $0 $0 $0 $125 $300 $200 $0 $0 $100 -----------$725 $20,160 $20,160 $417 $4,936 $14,808 53.07% m a $24,030 74.86% $0 $0 $0 $125 $300 $200 $0 $0 $100 -----------$725 $23,305 $23,305 $406 $5,725 $17,174 53.50% Sep-98 $33,850 $8,595 $0 -----------$8,595 $25,255 74.61% le p Oct-98 $55,700 $14,145 $0 -----------$14,145 $41,555 74.61% $0 $0 $0 $125 $300 $200 $0 $0 $100 -----------$725 $40,830 $40,830 $510 $10,080 $30,240 54.29% Nov-98 $56,450 $14,200 $0 -----------$14,200 $42,250 74.84% Dec-98 $48,100 $12,070 $0 -----------$12,070 $36,030 74.91% $0 $0 $0 $125 $300 $200 $0 $0 $100 -----------$725 $24,530 $24,530 $396 $6,034 $18,101 53.47% $0 $0 $0 $125 $300 $200 $0 $0 $100 -----------$725 $41,525 $41,525 $542 $10,246 $30,738 54.45% $0 $0 $1,000 $125 $300 $200 $500 $0 $100 -----------$2,225 $33,805 $34,805 $490 $8,329 $24,987 51.95% $17,437 53.32% $13,887 52.60% Academic Edition Page 24 Appendix Table: Cash Flow Pro Forma Cash Flow Jan-98 Cash Received Cash from Operations Cash Sales Cash from Receivables 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 0.00% $7,775 $13,803 $21,578 $0 $75,000 $0 $0 $0 $0 $0 $96,578 Jan-98 $0 $11,711 $11,711 $0 $0 $0 $0 $0 $0 $0 $11,711 $84,867 $86,305 $8,863 $14,580 $23,443 $0 $5,000 $0 $0 $0 $0 $25,000 $53,443 Feb-98 $0 $15,670 $15,670 $0 $6,250 $0 $0 $0 $25,000 $0 $46,920 $6,523 $92,827 $8,613 $23,434 $32,046 $0 $0 $0 $0 $0 $0 $0 $32,046 Mar-98 $0 $17,727 $17,727 $0 $6,250 $0 $0 $0 $0 $0 $23,977 $9,238 $26,563 $35,800 $0 $5,000 $0 $0 $0 $0 $0 $40,800 Apr-98 $0 $15,866 $15,866 $0 $6,250 $0 $0 $0 $0 $0 $22,116 $8,175 $25,900 $34,075 $0 $0 $0 $0 $0 $0 $0 $34,075 May-98 $0 $17,689 $17,689 $0 $5,000 $0 $0 $0 $0 $0 $22,689 $6,600 $27,606 $34,206 $0 $0 $0 $0 $0 $0 $0 $34,206 Jun-98 $6,975 $24,368 $31,343 $0 $0 $0 $0 $0 $0 $0 $31,343 Jul-98 $8,025 $19,838 $27,863 Feb-98 Mar-98 Apr-98 May-98 Jun-98 Jul-98 Aug-98 Sep-98 u B in s s e P s $8,069 $100,897 n la $18,684 $119,580 r P $0 $14,052 $14,052 $0 $5,000 $0 $0 $0 $0 $0 $19,052 $15,154 $146,121 S o $0 $11,069 $11,069 $0 $6,250 $0 $0 $0 $0 $0 $17,319 $14,024 $160,145 $0 $5,000 $0 $0 $0 $0 $0 $32,863 Aug-98 m a $8,463 $21,030 $29,493 $0 $5,000 $0 $0 $0 $0 $25,000 $59,493 Sep-98 $0 $15,991 $15,991 $0 $6,250 $0 $0 $0 $25,000 $0 $47,241 $12,252 $185,506 le p Oct-98 $13,925 $24,119 $38,044 $0 $20,000 $0 $0 $0 $0 $0 $58,044 Oct-98 $0 $16,766 $16,766 $0 $6,250 $0 $0 $0 $0 $0 $23,016 $35,028 $220,534 Nov-98 Dec-98 $14,113 $25,934 $40,046 $0 $10,000 $0 $0 $0 $0 $0 $50,046 Nov-98 $0 $30,836 $30,836 $0 $6,250 $0 $0 $0 $0 $0 $37,086 $12,025 $41,794 $53,819 $0 $0 $0 $0 $0 $0 $0 $53,819 Dec-98 $0 $25,575 $25,575 $0 $6,250 $0 $0 $0 $0 $0 $31,825 $21,994 $255,489 $0 $13,503 $13,503 $0 $6,250 $0 $0 $0 $0 $0 $19,753 $11,386 $130,967 $13,110 $173,254 $12,961 $233,495 Academic Edition Page 25 Appendix Table: Balance Sheet Pro Forma Balance Sheet Jan-98 Assets Current Assets Cash Accounts Receivable 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 Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth $11,191 $0 $1,803 $12,994 $0 $12,994 $4,500 $13,100 $12,455 $30,055 $43,049 $30,055 Starting Balances $1,438 $27,605 $10,141 $2,375 $41,559 $3,210 $1,720 $1,490 $43,049 $86,305 $37,128 $7,815 $2,375 $133,622 $3,210 $1,720 $1,490 $135,112 Jan-98 $15,077 $75,000 $1,803 $91,880 $0 $91,880 $4,500 $25,555 $13,178 $43,233 $135,112 $43,233 $92,827 $49,135 $8,995 $2,375 $153,332 $28,210 $1,720 $26,490 $179,822 Feb-98 $17,200 $73,750 $1,803 $92,753 $0 $92,753 $29,500 $25,555 $32,014 $87,069 $179,822 $87,069 $100,897 $51,539 $8,695 $2,375 $163,505 $28,210 $1,720 $26,490 $189,995 Mar-98 $15,273 $67,500 $1,803 $84,576 $0 $84,576 $29,500 $25,555 $50,365 $105,420 $189,995 $105,420 $119,580 $52,689 $9,320 $2,375 $183,964 $28,210 $1,720 $26,490 $210,454 Apr-98 $17,217 $66,250 $1,803 $85,270 $130,967 $51,314 $8,215 $2,375 $192,870 $28,210 $1,720 $26,490 $219,360 May-98 $13,686 $61,250 $1,803 $76,739 $0 $76,739 $146,121 $43,508 $6,690 $2,375 $198,693 $28,210 $1,720 $26,490 $225,183 $160,145 $40,065 $7,015 $2,375 $209,600 $28,210 $1,720 $26,490 $236,090 $173,254 $44,303 $8,070 $2,375 $228,002 $28,210 $1,720 $26,490 $254,492 Feb-98 Mar-98 Apr-98 May-98 Jun-98 Jul-98 Aug-98 Sep-98 u B in s s e P s n la $0 $85,270 $29,500 $25,555 $70,129 $125,184 $210,454 $125,184 r P Jun-98 $10,622 $56,250 $1,803 $68,675 $0 $68,675 $29,500 $25,555 $101,454 $156,509 $225,183 $156,509 S o Jul-98 $12,970 $50,000 $1,803 $64,773 $0 $64,773 $29,500 $25,555 $116,261 $171,316 $236,090 $171,316 m a $185,506 $48,660 $8,595 $2,375 $245,136 $53,210 $1,720 $51,490 $296,626 Sep-98 $15,732 $47,500 $1,803 $65,035 $0 $65,035 $54,500 $25,555 $151,536 $231,591 $296,626 $231,591 le p Oct-98 $220,534 $66,316 $14,145 $2,375 $303,370 $53,210 $1,720 $51,490 $354,860 Oct-98 $35,474 $61,250 $1,803 $98,527 $0 $98,527 $54,500 $25,555 $181,776 $261,831 $360,358 $256,333 Nov-98 Dec-98 $233,495 $82,720 $14,200 $2,375 $332,790 $53,210 $1,720 $51,490 $384,280 Nov-98 $23,518 $65,000 $1,803 $90,321 $0 $90,321 $54,500 $25,555 $212,513 $292,568 $382,890 $293,958 $255,489 $77,001 $12,070 $2,375 $346,935 $53,210 $2,720 $50,490 $397,425 Dec-98 $23,727 $58,750 $1,803 $84,280 $0 $84,280 $54,500 $25,555 $237,500 $317,555 $401,835 $313,145 Aug-98 $15,448 $48,750 $1,803 $66,001 $0 $66,001 $29,500 $25,555 $87,567 $142,622 $219,360 $142,622 $29,500 $25,555 $133,435 $188,490 $254,492 $188,490 Academic Edition Page 26