Breakaway Bicycle Company, Inc. Balance Sheet -December 31, 200X Assets Current Assets: Cash $50,000 Accounts Receivable $20,000 Less: Reserve for Bad Debts 5,000 15,000 Merchandise Inventory 5,000 Prepaid Expenses 500 Notes Receivable 0 Total Current Assets $70,500 Fixed Assets: Vehicles 15,000 Less: Accumulated Depreciation 15,000 0 Furniture and Fixtures 15,000 Less: Accumulated Depreciation 5,000 10,000 Equipment 100,000 Less: Accumulated Depreciation 48,000 52,000 Total Fixed Assets 62,000 Other Assets: Goodwill 0 Total Other Assets 0 Total Assets $132,500 Liabilities and Capital Current Liabilities: Accounts Payable $4,200 Sales Taxes Payable 2,000 Payroll Taxes Payable 1,523 Accrued Wages Payable 4,125 Unearned Revenues 20,000 Total Current Liabilities $31,848 Long-Term Liabilities: Long-Term Notes Payable 0 Mortgage Payable 0 Total Long-Term Liabilities 0 Total Liabilities 31,848 Capital: Owner's Equity 100,652 Total Capital 100,652 Total Liabilities and Capital $132,500 0Breakaway Bicycle Company, Inc. Income Statement -12/31/00 Revenue: Gross Sales $1,057,008 Less: Sales Returns and Allowances 22,890 Net Sales 1,034,118 Cost of Goods Sold: Beginning Inventory $15,000 Add: Purchases 124,500 Freight-in 2,500 Direct Labor 241,000 Indirect Expenses 0 383,000 Less: Ending Inventory 16,500 Cost of Goods Sold 366,500 Gross Profit (Loss) 667,618 Expenses: Advertising 47,000 Amortization 0 Bad Debts 42,280 Bank Charges 3,600 Charitable Contributions 2,500 Commissions 0 Contract Labor 0 Credit Card Fees 2,400 Delivery Expenses 65,760 Depreciation 10,000 Dues and Subscriptions 600 Insurance 7,200 Interest 0 Maintenance 2,400 Miscellaneous 0 Office Expenses 2,400 Operating Supplies 2,400 Payroll Taxes 42,500 Permits and Licenses 1,200 Postage 2,400 Professional Fees 2,400 Property Taxes 0 Rent 24,000 Repairs 0 Telephone 5,200 Travel 9,000 Utilities 6,000 Vehicle Expenses 2,510 Wages 205,000 Total Expenses 488,750 Net Operating Income 178,868 Other Income: Gain (Loss) on Sale of Assets 0 Interest Income 0 Total Other Income 0 Net Income (Loss) $178,868Breakaway Bicycle Company, Inc. Cash Flow Worksheet for 2000 January February March April May June July August September October November December Total Beginning Cash Balance $3,600 $21,801 $51,143 $68,343 $89,211 $115,221 $137,331 $167,270 $177,785 $183,947 $180,315 Cash Inflows (Income): Accts. Rec. Collections 8,500 8,000 7,000 7,850 7,952 6,210 5,260 9,850 9,852 7,888 9,520 7,550 95,432 Sales & Receipts 65,000 75,000 85,996 86,000 84,520 85,115 88,500 83,339 70,520 62,500 55,000 81,000 922,490 Total Cash Inflows $73,500 $83,000 $92,996 $93,850 $92,472 $91,325 $93,760 $93,189 $80,372 $70,388 $64,520 $88,550 $1,017,922 Available Cash Balance $73,500 $86,600 $114,797 $144,993 $160,815 $180,536 $208,981 $230,520 $247,642 $248,173 $248,467 $268,865 Cash Outflows (Expenses): Advertising 1,500 2,500 1,000 3,000 1,500 4,500 1,500 2,500 1,000 3,000 1,500 4,500 28,000 Bank Service Charges 300 300 300 300 300 300 300 300 300 300 300 300 3,600 Credit Card Fees 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Delivery 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 54,000 Health Insurance 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400 Insurance 600 600 600 600 600 600 600 600 600 600 600 600 7,200 Inventory Purchases 13,050 14,550 7,804 18,800 16,654 14,445 14,800 13,200 11,587 12,589 12,300 11,899 161,678 Miscellaneous 15,000 7,899 12,500 15,000 8,500 6,520 5,500 7,700 5,420 8,787 6,002 6,000 104,828 Office 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Payroll 28,000 28,000 28,000 28,000 28,000 28,000 28,000 28,000 28,000 28,000 28,000 28,000 336,000 Payroll Taxes 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 33,600 Rent or Lease 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400 Subscriptions & Dues 50 50 50 50 50 50 50 50 50 50 50 50 600 Supplies 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Taxes & Licenses 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Utilities & Telephone 500 500 500 500 500 500 500 500 500 500 500 500 6,000 Subtotal $69,400 $64,799 $61,154 $76,650 $66,504 $65,315 $61,650 $63,250 $57,857 $64,226 $59,652 $62,249 $772,706 Other Cash Outflows Owner's Draw 500 2,500 5,100 10,000 12,000 8,500 18,750 57,350 Subtotal $500 $ $2,500 $0 $5,100 $0 $10,000 $0 $12,000 $0 $8,500 $18,750 $57,350 Total Cash Outflows $69,900 $64,799 $63,654 $76,650 $71,604 $65,315 $71,650 $63,250 $69,857 $64,226 $68,152 $80,999 $830,056 Ending Cash Balance $3,600 $21,801 $51,143 $68,343 $89,211 $115,221 $137,331 $167,270 $177,785 $183,947 $180,315 $187,866Breakaway Bicycle Company, Inc. Pro Forma Balance Sheet -12/31/00 Assets Current Assets: Cash $452,578 Accounts Receivable $74,520 Less: Reserve for Bad Debts 7,452 67,068 Merchandise Inventory 21,000 Prepaid Expenses 5,000 Notes Receivable 0 Total Current Assets $545,646 Fixed Assets: Vehicles 0 Less: Accumulated Depreciation 0 0 Furniture and Fixtures 25,000 Less: Accumulated Depreciation 7,000 18,000 Equipment 160,000 Less: Accumulated Depreciation 54,000 106,000 Buildings 0 Less: Accumulated Depreciation 0 0 Land 0 Total Fixed Assets 124,000 Other Assets: Goodwill 0 Total Other Assets 0 Total Assets $669,646 Liabilities and Capital Current Liabilities: Accounts Payable $5,500 Sales Taxes Payable 400 Payroll Taxes Payable 16,000 Accrued Wages Payable 55,880 Unearned Revenues 15,060 Short-Term Notes Payable 0 Short-Term Bank Loan Payable 0 Total Current Liabilities $92,840 Long-Term Liabilities: Long-Term Notes Payable 75,000 Mortgage Payable 0 Total Long-Term Liabilities 75,000 Total Liabilities 167,840 Capital: Owner's Equity 501,806 Total Capital 501,806 Total Liabilities and Capital $669,646 0Breakaway Bicycle Company, Inc. Pro Forma Balance Sheet -12/31/01 Assets Current Assets: Cash $815,840 Accounts Receivable $22,000 Less: Reserve for Bad Debts 1,980 20,020 Merchandise Inventory 15,000 Prepaid Expenses 5,200 Notes Receivable 0 Total Current Assets $856,060 Fixed Assets: Vehicles 0 Less: Accumulated Depreciation 0 0 Furniture and Fixtures 25,000 Less: Accumulated Depreciation 9,000 16,000 Equipment 160,000 Less: Accumulated Depreciation 60,000 100,000 Buildings 0 Less: Accumulated Depreciation 0 0 Land 0 Total Fixed Assets 116,000 Other Assets: Goodwill 0 Total Other Assets 0 Total Assets $972,060 Liabilities and Capital Current Liabilities: Accounts Payable $7,500 Sales Taxes Payable 800 Payroll Taxes Payable 17,500 Accrued Wages Payable 60,000 Unearned Revenues 78,000 Short-Term Notes Payable 0 Short-Term Bank Loan Payable 0 Total Current Liabilities $163,800 Long-Term Liabilities: Long-Term Notes Payable 50,000 Mortgage Payable 0 Total Long-Term Liabilities 50,000 Total Liabilities 213,800 Capital: Owner's Equity 758,260 Total Capital 758,260 Total Liabilities and Capital $972,060 0Breakaway Bicycle Company, Inc. Revenue Projections 2000 January February March April May June July August September October November December NUMBER OF: Total Road Frames 30 26 30 34 36 34 38 32 29 26 22 44 377 Mountain Frames 40 38 38 41 43 41 40 36 32 29 19 48 445 INCOME GENERATED FROM: European Sales -Road Frames ($1,800/frame) $10,800 $9,360 $10,800 $12,240 $12,960 $12,240 $12,240 $11,520 $10,440 $9,360 $7,920 $15,840 U.S. Sales -Road ($1,800/frame) $43,200 $37,440 $43,200 $48,960 $51,840 $48,960 $48,960 $46,080 $41,760 $37,440 $31,680 $63,360 European Sales -Mountain ($1,600/frame) $32,000 $30,400 $30,400 $32,800 $34,400 $32,800 $32,000 $28,800 $25,600 $23,200 $15,200 $38,400 U.S. Sales -Mountain ($1,600/frame) $32,000 $30,400 $30,400 $32,800 $34,400 $32,800 $32,000 $28,800 $25,600 $23,200 $15,200 $38,400 $118,000 $107,600 $114,800 $126,800 $133,600 $126,800 $125,200 $115,200 $103,400 $93,200 $70,000 $156,000 $1,390,600 2001 January February March April May June July August September October November December NUMBER OF: Total Road Frames 40 35 36 38 42 40 38 35 32 29 25 60 450 Mountain Frames 44 42 41 46 48 45 44 38 35 32 26 65 506 INCOME GENERATED FROM: European Sales -Road Frames ($1,800/frame) $14,400 $12,600 $12,960 $13,680 $15,120 $14,400 $13,680 $12,600 $11,520 $10,440 $9,000 $21,600 U.S. Sales -Road ($1,800/frame) $57,600 $50,400 $51,840 $54,720 $60,480 $57,600 $54,720 $50,400 $46,080 $41,760 $36,000 $86,400 European Sales -Mountain ($1,600/frame) $35,200 $33,600 $32,800 $36,800 $38,400 $36,000 $35,200 $30,400 $28,000 $25,600 $20,800 $52,000 U.S. Sales -Mountain ($1,600/frame) $35,200 $33,600 $32,800 $36,800 $38,400 $36,000 $35,200 $30,400 $28,000 $25,600 $20,800 $52,000 $142,400 $130,200 $130,400 $142,000 $152,400 $144,000 $138,800 $123,800 $113,600 $103,400 $86,600 $212,000 $1,619,600$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 Monthly Revenue January March May July September November Projected Revenue -2000$0 $50,000 $100,000 $150,000 $200,000 $250,000 Monthly Revenue January March May July September November Projected Revenue -2001Breakaway Bicycle Company, Inc. Projected Profit and Loss Statement -2000 January February March April May June July August September October November Revenue: Gross Sales $118,000 107,600 $114,800 $126,800 $133,800 $126,800 $125,200 $115,200 $103,400 $93,200 $70,000 Less: Sales Returns and Allowances 5,900 5,380 5,740 6,340 6,690 6,340 6,260 5,760 5,170 4,660 3,500 Net Sales $112,100 $102,220 $109,060 $120,460 $127,110 $120,460 $118,940 $109,440 $98,230 $88,540 $66,500 Cost of Goods Sold: Materials 14,160 12,912 13,776 15,216 16,056 15,216 15,024 13,824 12,408 11,184 8,400 Labor 14,160 12,912 13,776 15,216 16,056 15,216 15,024 13,824 12,408 11,184 8,400 Other Direct Expenses 5,310 4,842 5,166 5,706 6,021 5,706 5,634 5,184 4,653 4,194 3,150 Indirect Expenses 1,770 1,614 1,722 1,902 2,007 1,902 1,878 1,728 1,551 1,398 1,050 Cost of Goods Sold $35,400 $32,280 $34,440 $38,040 $40,140 $38,040 $37,560 $34,560 $31,020 $27,960 $21,000 Gross Profit (Loss) $76,700 $69,940 $74,620 $82,420 $86,970 $82,420 $81,380 $74,880 $67,210 $60,580 $45,500 Expenses: Advertising 2,500 2,500 3,000 5,000 3,000 3,000 2,500 2,000 2,000 3,000 4,000 Bad Debts 5,605 5,111 5,453 6,023 6,356 6,023 5,947 5,472 4,912 4,427 3,325 Bank Charges 300 300 300 300 300 300 300 300 300 300 300 Charitable Contributions 100 100 100 100 100 100 100 100 100 100 100 Credit Card Fees 0 0 0 0 0 0 0 0 0 0 0 Delivery Expenses 200 200 200 200 200 200 200 200 200 200 200 Depreciation 5,480 5,480 5,480 5,480 5,480 5,480 5,480 5,480 5,480 5,480 5,480 Dues and Subscriptions 888 888 888 888 888 888 888 888 888 888 888 Insurance 50 50 50 50 50 50 50 50 50 50 50 Interest 600 600 600 600 600 600 600 600 600 600 600 Maintenance 401 401 401 401 401 401 401 401 401 401 401 Miscellaneous 200 200 200 200 200 200 200 200 200 200 200 Office Expenses 500 500 500 500 500 500 500 500 500 500 500 Operating Supplies 200 200 200 200 200 200 200 200 200 200 200 Payroll Taxes 200 200 200 200 200 200 200 200 200 200 200 Permits and Licenses 3,792 3,792 3,792 3,792 3,792 3,792 3,792 3,792 3,792 3,792 3,792 Postage 100 100 100 100 100 100 100 100 100 100 100 Rent 200 200 200 200 200 200 200 200 200 200 200 Telephone 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 Travel 400 400 400 400 400 400 400 400 400 400 400 Utilities 200 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Wages 500 500 500 500 500 500 500 500 500 500 500 Wages 23,757 25,005 37,917 22,701 21,861 22,701 22,893 24,093 25,509 26,733 29,517 Total Expenses 49,373 50,927 64,681 52,035 49,528 50,035 49,651 49,876 50,932 52,671 55,353 Net Operating Income 27,327 19,013 9,939 30,385 37,443 32,385 31,729 25,004 16,279 7,909 (9,853) Other Income: Gain (Loss) on Sale of Assets 0 0 0 0 0 0 0 0 0 0 0 Interest Income 0 0 0 0 0 0 0 0 0 0 0 Total Other Income 0 0 0 0 0 0 0 0 0 0 0 Net Income (Loss) $27,327 19,013 $9,939 $30,385 $37,443 $32,385 $31,729 $25,004 $16,279 $7,909 ($9,853) Cumulative Net Income (Loss) $27,327 46,340 $56,279 $86,664 $124,107 $156,492 $188,221 $213,225 $229,504 $237,413 $227,560Breakaway Bicycle Company, Inc. Projected Profit and Loss Statement -2001 January February March April May June July August September October November Revenue: Gross Sales $142,400 $130,200 $130,400 $142,000 $152,400 $144,000 $138,800 $123,800 $113,600 $103,400 $86,600 Less: Sales Returns and Allowances 7,120 6,510 6,520 7,100 7,620 7,200 6,940 6,190 5,680 5,170 4,330 Net Sales $135,280 $123,690 $123,880 $134,900 $144,780 $136,800 $131,860 $117,610 $107,920 $98,230 $82,270 Cost of Goods Sold: Materials 17,088 15,624 15,648 17,040 18,288 15,624 15,648 17,040 18,288 15,624 15,648 Labor 17,088 15,624 15,648 17,040 18,288 15,624 15,648 17,040 18,288 15,624 15,648 Other Direct Expenses 6,408 5,859 5,868 6,390 6,858 5,859 5,868 6,390 6,858 5,859 5,868 Indirect Expenses 2,136 1,953 1,956 2,130 2,286 1,953 1,956 2,130 2,286 1,953 1,956 Cost of Goods Sold $42,720 $39,060 $39,120 42,600 45,720 39,060 39,120 42,600 45,720 $39,060 $39,120 Gross Profit (Loss) $92,560 $84,630 $84,760 $92,300 $99,060 $97,740 $92,740 $75,010 $62,200 $59,170 $43,150 Expenses: Advertising 2,700 2,700 3,100 5,200 3,100 3,100 2,700 2,100 2,100 3,100 4,200 Bad Debts 6,764 6,185 6,194 6,745 7,239 6,840 6,593 5,881 5,396 4,912 4,114 Bank Charges 300 300 300 300 300 300 300 300 300 300 300 Charitable Contributions 100 100 100 100 100 100 100 100 100 100 100 Credit Card Fees 200 200 200 200 200 200 200 200 200 200 200 Delivery Expenses 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 Depreciation 888 888 888 888 888 888 888 888 888 888 888 Dues and Subscriptions 50 50 50 50 50 50 50 50 50 50 50 Insurance 600 600 600 600 600 600 600 600 600 600 600 Interest 401 401 401 401 401 401 401 401 401 401 401 Maintenance 200 200 200 200 200 200 200 200 200 200 200 Miscellaneous 500 500 500 500 500 500 500 500 500 500 500 Office Expenses 200 200 200 200 200 200 200 200 200 200 200 Operating Supplies 200 200 200 200 200 200 200 200 200 200 200 Payroll Taxes 2,750 2,923 2,894 2,754 2,630 2,896 2,894 2,754 2,630 2,896 2,894 Permits and Licenses 100 100 100 100 100 100 100 100 100 100 100 Postage 400 400 400 400 400 400 400 400 400 400 400 Rent 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 Telephone 400 400 400 400 400 400 400 400 400 400 400 Travel 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 500 500 500 Utilities 500 500 500 500 500 500 500 500 500 500 500 Wages 27,495 29,229 28,935 27,543 26,295 28,959 28,935 27,543 26,295 28,959 28,935 Total Expenses $54,948 $56,276 $56,362 $57,481 $54,503 $57,034 $56,361 $53,517 $51,160 $54,606 $54,882 Net Operating Income $37,613 $28,354 $28,399 $34,819 $44,558 $40,706 $36,380 $21,493 $11,041 $4,564 ($11,732) Other Income: Gain (Loss) on Sale of Assets 0 0 0 0 0 0 0 0 0 0 0 Interest Income 0 0 0 0 0 0 0 0 0 0 0 Total Other Income 0 0 0 0 0 0 0 0 0 0 0 Net Income (Loss) $37,613 $28,354 $28,399 $34,819 $44,558 $40,706 $36,380 $21,493 $11,041 $4,564 ($11,732) Cumulative Net Income (Loss) $37,613 $65,967 $94,366 $129,185 $173,743 $214,449 $250,829 $272,321 $283,362 $287,927 $276,195Breakaway Bicycle Company, Inc. Cash Flow Budget Worksheet -2000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Beginning Cash Balance $63,642 $84,601 $109,750 $141,881 $181,622 $216,656 $250,705 $272,794 $291,096 $300,494 $291,703 Cash Inflows (Income): Accounts Receivable Collections 0 5,605 5,111 5,453 6,023 6,356 6,023 5,947 5,472 4,912 4,427 3,325 58,654 Loan Proceeds 100,000 100,000 Sales & Receipts 106,200 96,840 103,320 114,120 120,420 114,120 112,680 98,496 93,060 83,880 63,000 140,400 1,246,536 Other: 000 Total Cash Inflows $206,200 $102,445 $108,431 $119,573 $126,443 $120,476 $118,703 $104,443 $98,532 $88,792 $67,427 $143,725 $1,405,190 Available Cash Balance $206,200 $166,087 $193,032 $229,323 $268,324 $302,098 $335,359 $355,148 $371,326 $379,888 $367,921 $435,428 Cash Outflows (Expenses): Advertising 2,500 2,500 3,000 5,000 3,000 3,000 2,500 2,000 2,000 3,000 4,000 5,000 37,500 Bank Service Charges 300 300 300 300 300 300 300 300 300 300 300 300 3,600 Credit Card Fees 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Delivery 5,480 5,480 5,480 5,480 5,480 5,480 5,480 5,480 5,480 5,480 5,480 5,480 65,760 Health Insurance 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000 Insurance 600 600 600 600 600 600 600 600 600 600 600 600 7,200 Interest 401 401 401 401 401 401 401 401 401 401 401 401 4,812 Inventory Purchases 14,160 12,912 13,776 15,216 16,056 15,216 15,024 13,824 12,408 11,184 8,400 18,720 166,896 Miscellaneous 7,580 6,956 7,388 8,108 8,528 8,108 8,012 7,412 6,704 6,092 4,700 9,860 89,448 Office 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Payroll 37,917 37,917 37,917 37,917 37,917 37,917 37,917 37,917 37,917 37,917 37,917 37,917 455,004 Payroll Taxes 3,792 3,792 3,792 3,792 3,792 3,792 3,792 3,792 3,792 3,792 3,792 3,792 45,504 Professional Fees 0 0 0 0 0 0 0 0 0 0 0 0 0 Rent or Lease 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000 Subscriptions & Dues 50 50 50 50 50 50 50 50 50 50 50 50 600 Supplies 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Taxes & Licenses 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Utilities & Telephone 900 900 900 900 900 900 900 900 900 900 900 900 10,800 Other: 0 Travel 200 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 200 10,400 Maintenance 200 200 200 200 200 200 200 200 200 200 200 200 2,4000 Subtotal $79,780 $78,708 $80,504 $84,664 $83,924 $82,664 $81,876 $79,576 $77,452 $76,616 $73,440 $89,120 $968,324 Other Cash Out Flows: Capital Purchases 60,000 60,000 Loan Principal 2,778 2,778 2,778 2,778 2,778 2,778 2,778 2,778 2,778 2,778 2,778 2,778 33,336 Owner's Draw 0 Other: 00 Subtotal $62,778 $2,778 $2,778 $2,778 $2,778 $2,778 $2,778 $2,778 $2,778 $2,778 $2,778 $2,778 $93,336 Total Cash Outflows $142,558 $81,486 $83,282 $87,442 $86,702 $85,442 $84,654 $82,354 $80,230 $79,394 $76,218 $91,898 $1,061,660 Ending Cash Balance $63,642 $84,601 $109,750 $141,881 $181,622 $216,656 $250,705 $272,794 $291,096 $300,494 $291,703 $343,530 Note 1. Breakaway hopes to secure a $100,000 loan to purchase and install three new workstations to handle the expected increase in bicycle orders. The additional $40,000 would provide working capital during the expansion period. The loan would be for three years at a 9% interest rate. Breakaway Bicycle Company, Inc. Cash Flow Budget Worksheet -2001 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Beginning Cash Balance $32,058 $60,937 $89,066 $123,789 $168,670 $210,320 $247,321 $269,258 $280,168 $284,334 $271,759 Cash Inflows (Income): Accts. Rec. Collections 0 5,605 5,111 5,453 6,023 6,356 6,023 5,947 5,472 4,912 4,427 3,325 58,654 Loan Proceeds 0 Sales & Receipts 128,160 117,180 117,360 127,800 137,160 129,600 124,920 111,420 102,240 93,060 77,940 190,800 1,457,640 Other: 0 Total Cash Inflows $128,160 $122,785 $122,471 $133,253 $143,183 $135,956 $130,943 $117,367 $107,712 $97,972 $82,367 $194,125 $1,516,294 Available Cash Balance $128,160 $154,843 $183,408 $222,319 $266,972 $304,626 $341,263 $364,688 $376,970 $378,140 $366,701 $465,884 Cash Outflows (Expenses): Advertising 2,700 2,700 3,100 5,200 3,100 3,100 2,700 2,100 2,100 3,100 4,200 5,500 39,600 Bank Service Charges 300 300 300 300 300 300 300 300 300 300 300 300 3,600 Credit Card Fees 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Delivery 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 72,000 Health Insurance 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000 Insurance 600 600 600 600 600 600 600 600 600 600 600 600 7,200 Interest 401 401 401 401 401 401 401 401 401 401 401 401 4,812 Inventory Purchases 17,088 15,624 15,648 17,040 18,288 15,624 15,648 17,040 18,288 15,624 15,648 17,040 198,600 Miscellaneous 9,044 8,312 8,324 9,020 9,644 8,312 8,324 9,020 9,644 8,312 8,324 9,020 105,300 Office 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Payroll 44,583 44,583 44,583 44,583 44,583 44,583 44,583 44,583 44,583 44,583 44,583 44,583 534,996 Payroll Taxes 4,458 4,458 4,458 4,458 4,458 4,458 4,458 4,458 4,458 4,458 4,458 4,458 53,496 Professional Fees 0 0 0 0 0 0 0 0 0 0 0 0 0 Rent or Lease 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 25,200 Subscriptions & Dues 50 50 50 50 50 50 50 50 50 50 50 50 600 Supplies 400 400 400 400 400 400 400 400 400 400 400 400 4,800 Taxes & Licenses 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Utilities & Telephone 900 900 900 900 900 900 900 900 900 900 900 900 10,800 Other: 0 Travel 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 500 500 500 200 9,700 Maintenance 200 200 200 200 200 200 200 200 200 200 200 200 2,4000 Subtotal $93,324 $91,128 $91,564 $95,752 $95,524 $91,528 $91,164 $92,652 $94,024 $91,028 $92,164 $95,252 $1,115,104 Other Cash Out Flows: Capital Purchases 0 Loan Principal 2,778 2,778 2,778 2,778 2,778 2,778 2,778 2,778 2,778 2,778 2,778 2,778 33,336 Owner's Draw 0 Other: 00 Subtotal $2,778 $2,778 $2,778 $2,778 $2,778 $2,778 $2,778 $2,778 $2,778 $2,778 $2,778 $2,778 $33,336 Total Cash Outflows $96,102 $93,906 $94,342 $98,530 $98,302 $94,306 $93,942 $95,430 $96,802 $93,806 $94,942 $98,030 $1,148,440 Ending Cash Balance $32,058 $60,937 $89,066 $123,789 $168,670 $210,320 $247,321 $269,258 $280,168 $284,334 $271,759 $367,854 Note 1. Breakaway hopes to secure a $100,000 to purchase and install three new workstations in year 1 to handle the expected increase in bicycle orders. The additional $40,000 would provide working capital during the expansion period. The loan will be paid back over three years at a 9% interest rate.