Garrett's Bike Shop

CONFIDENTIAL GARRETT'S BIKE SHOP

TOP-QUALITY GEAR, REPAIR, AND ADVICE FROM YOUR LOCAL CYCLING FANATICS

BUSINESS PLAN Prepared June 2017

CONTACT INFORMATION Garrett McKenzie 488 East 11th Avenue, Suite 220 [email protected] Eugene, OR 97401, United States www.universitycycleworks.com (555) 555-5555 GARRETT'S BIKE SHOP 2017 i

Table of Contents

Executive Summary ...... 1 Opportunity ...... 1 Expectations...... 3

Opportunity ...... 5 Problem & Solution...... 5 Target Market ...... 5 Competition...... 6

Execution...... 8 Marketing & Sales...... 8 Operations...... 10 Milestones & Metrics...... 11

Company ...... 13 Overview...... 13 Team ...... 14

Financial Plan...... 15 Forecast ...... 15 Financing ...... 17 Statements ...... 18

Appendix...... 21 Profit and Loss Statement...... 21 Balance Sheet...... 26 Cash Flow Statement...... 33

CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. GARRETT'S BIKE SHOP 2017 1

Executive Summary

Opportunity

Problem

It's hard to buy a good bike in this town without being an "insider" cycling expert.

Solution

Garrett's is a snob-free zone where regular people can get top notch gear and expert advice.

What We Sell

Bicycles. We sell new bicycles, predominantly in the mountain bike style, retro-cruiser is a close second, and sport/touring/racing road bikes a distant third. We also sell some used bikes which we take in on trade as a service to our customers who are buying new bikes.

Accessories. We offer a wide variety of accessories. Locks, computer speedometers, fenders, cargo racks, comfortable seats, headlights, helmets, water bottles, panniers/back packs/messenger bags, child seats and trailers, bike storage racks, and auto roof rack systems all fall in this category.

Clothing. We rotate our clothing based on the season. For example, in Autumn, we stock jackets and Gore- Tex. In Winter, we offer helmet covers and liners, insulated jerseys and pants, gloves, and shoe covers. In the Spring, we start displaying summer jerseys, and racing shorts

Parts. Parts generally refers to pieces or materials necessary to the basic functioning of the bicycle. Generally, parts are installed during service and are an additional charge beyond the service fees.

Service

Garrett's Bike Shop is a full-service specialized bicycle shop. Our service offering includes, but is not limited to:

• Free 30-day/100-mile tune up with every new bike sold.

• Quick repairs for flat tires, broken chains, brake cables, etc.

• Scheduled tune-ups, replacement of all bearing surfaces, repacking of lubricants, and adjustments of derailleurs and brake systems.

• Installation of all accessories.

• Authorized warranty repairs on the bikes.

• Custom wheel building.

• Frameset repairs by outsourcing to Via Porco custom frame builders.

Market

Who We Sell To

The primary market for Garrett's Bike Shop is the university student population, which normally has a turnover/growth of approximately 25% each year. The secondary market is the university faculty and staff, and the tertiary market is the greater Metroburg community.

The university students are our main target market.

1. They are mostly undergraduates, so there is a 25% annual turnover.

2. The lack of parking in the university area and the general ease of bike mobility throughout Metroburg motivates them to use bicycles as inexpensive transport. Athletic pursuits draw them, and the nearby areas for use of mountain and trail bikes provides a great place to ride.

3. There is a new enthusiasm for retro Cruiser bikes, and higher tech cruiser-style bikes with multiple gears, good brakes, etc. among the college age population.

4. Also, main market for racks, locks, throughout, pannier/bags, fenders, rainwear, etc.

5. They want convenience for sales and service.

Competition

• Big-box retailers

• Local bike shops

• Online retailers

Why Us?

We offer a welcoming, family-friendly bike shop space with higher quality gear and services. Expectations

Forecast

This financial plan was developed based upon previous years' data for the existing store, tracking trends in revenues and expenses. A five-month track of sales, accounts receivables and payables, and inventory from a year-end benchmark was made. The current owner, Han Delbar, has sold the business to Hubert Wheeler for $140,000. The seller, buyer, and the accountant worked together on the plan to balance optimism with reality. An attorney was consulted on specifics of the sale contract.

Sales for the first year of new ownership are projected above $500,000, with a gross margin of almost 65%. Profitability is expected at the mid-way point of the fiscal year, in March.

Financial Highlights by Year

Financing Needed

We plan on bootstrapping the business to start, but may consider loans for future expansion.

Opportunity Problem & Solution

Problem Worth Solving

No full-service bike shop offers a snob-free zone focused on servicing the university market.

Our Solution

Our market niche has several needs which we strive to meet:

• Quality bikes at several price points.

• Various styles and sizes of bikes, leaning heavily toward the styles most popular with the student population.

• Range of accessories most practical in the local setting, such as locks, fenders, lights, tires, seats, rainwear, etc.

• Plenty of replacement components and service parts.

• Friendly personal relationships between cyclists and shop staff.

• Prompt and convenient service from on-the-spot flat tire fix, to drop in repairs, to scheduled major maintenance, where the rider can drop their bike off, head to class or work, and be assured that their bike will be ready for the ride home. Target Market

Market Growth

The U.S. market for bicycles is worth approximately $6.2 billion for sales of slightly less than 20 million units in 2015.

In 2016, market research firm Lucintel was projecting market growth of 2.4% per year through 2021.

"According to a new market report published by Lucintel, the future of the global bicycle market looks good with opportunities in e-bikes, road/standard, mountain terrain bike (MTB)/racing, and kid's bicycle segments. The global bicycle market is forecast to grow at a CAGR of 2.4% from 2016 to 2021. The major

growth drivers of this market are increasing fitness consciousness among people, increasing concern towards environment, increasing traffic congestion, and government schemes to promote cycling.

"In this market, road/standard, MTB/racing, Kids, e-bikes are some of the major segments of bicycle industry. On the basis of comprehensive research, Lucintel predicts that the demand for e-bike is expected to show the highest growth in the forecast period. E-bikes are popular in many countries as a green means of transportation."

Our growth, for our specific plan, depends on our execution, not on general market growth.

Market Size & Segments

The bulk of Garrett's Bike Shop's market growth is the regular matriculation of students from the State University in Metroburg. While the overall market numbers change in small increments, usually less than 10%, the market has a turnover of 22-26% yearly. In a longer time frame the number of students and the number of university employees grows and shrinks with economic changes, and with population demographics.

For the next three years we foresee a steady growth in the overall university population as well as continued growth of Metroburg as a desirable place to live. Competition

Current Alternatives

• One local multi-sport store at the local megamall

• One statewide chain of bicycle shops which started out as Schwinn-only shops, but has had to take on other brands and products.

• One used bike store that has made a fine business reputation for itself, dealing strictly in used bikes.

• Three local, including the oldest shop in town.

• One local multi-location chain, that has specialized in opening shops in small local malls in areas of new housing development.

• Several garage mechanics offering service only.

The two strongest competitors are the Oldest Shop in Town which carries the cache of being the most stable, and most well known -- a Metroburg institution. The Mountain Bike Specialist targets the same athletic, young, performance and image conscious rider that we target in the university student population. These cyclists are particular about their bike and will go where the name brand they want is sold, or will try every bike and then buy the one that fits best, regardless of store loyalty.

Our Advantages

The foremost competitive advantage of Garrett's Bike Shop is our university location. The university is over 100 years old and as it has grown, Metroburg has grown around it. Parking is almost nonexistent, with all campus parking permit or meter controlled, and local streets filled to capacity with the vehicles of residents. Bicycles are an obvious and popular transportation solution.

The negotiations of the past two years also brings the advantage of continued financial agreements with major suppliers. This is an advantage over a start-up bicycle shop, but, is more a leveling of the bike path when compared to other established shop in Metroburg. Traditionally a start-up store will be placed on a Cash On Delivery (COD) status by bicycle manufacturers and parts/accessories suppliers. The COD status stays in effect until the new shop demonstrates its ability to manage its orders and cash flow. This also means the new shop must have more funding to be able to write checks on a moments notice, for large amounts.

Strategic Alliances

• Bicycle manufacturers - continuation of dating programs and financial agreements.

• Accessory suppliers - continuation of financial agreements.

• Metroburg Parks Dept. - we sponsor printed map of city bike paths to publish on our website.

• University Security Office - maintenance, supply service contract for cycle security.

• HooDaThunkIt - website design and maintenance, search engine placement.

Execution Marketing & Sales

Sales Plan

Our sales channels include:

Selling bicycles and accessories directly to customers through our bike shop. We also sell through our online store and at special bike enthusiast events.

Retail Pricing

Pricing of bicycles is very tight with a markup of between 30% and 40% depending upon the brand and model. Many people believe that bicycles are priced like automobiles and are open for negotiation, and make almost insulting offers. The shops have little leeway here.

Parts and accessories are generally keystone priced. Some small items cost more in handling and sales than they do to buy from suppliers. These can be double and triple keystoned, because customers won't buy them if they don't have a minimum perceived value. On the plus side, these are great "throw-in" items used to close the sale of a bike. When new technology arrives in bicycles, and if the supply is limited, almost any price can be demanded.

Other accessories, such as step-in pedals, pannier racks, helmets, or headlights are sometimes heavily marketed by the manufacturers. While this drives demand and brings people into the shop to get these items, the suggested manufacturer's retail price may limit markup.

The markup on clothes, shoes, jackets, gloves can vary from keystone to triple keystone, depending upon product, manufacturer, country of origin, and customer perception of value. Pearl Izumi and Burley Design rainwear can demand premium prices as top-of-the-line garments, but many budget-conscious students can only afford a $35 nylon windbreaker. It has been and always will be a demanding job for us to adequately stock garments at the various price points.

Service

We try to maintain a basic "Hourly shop rate" at $45/hour. Standard repairs are then priced based upon an average time for completion. Some repairs, such as a flat tire, are limited by customer perception of difficulty. Examples:

• Flat Tire -- $7.50

• Install Fenders -- $10.00

• Brake Adjustment -- $25.00

• Tune-up -- $65.00

• Overhaul -- $100.00

All parts used in repairs are priced at keystone, and added to the labor service charge.

With several other bicycle shops in the city, there are some price constraints based on competition. Coupons and specials can balance price ceilings by drawing in customers.

Marketing Plan

Overview

Our marketing strategy seeks to optimize our advantage of prime location. We want the university population to see us as their bike shop, even our name says so, Garrett's Bike Shop. We want them to see us as part of their daily experience, and a shop they can depend on for quick repair and maintenance service.

Positioning

We are Garrett's Bike Shop, and we are passionate about bicycles.

Promotion

Our marketing programs are locally focused, where we can effect our main target market.

Back to school specials. At the beginning of each term, including perhaps a free Kryptonite lock with a new bike purchase. We will try to have a special purchase of an economy value bike for each term.

Spring special. This coincides with the beginning of spring term, but we will direct some of our advertising at the wider population as people hang up their skis and tune up their bikes.

Coupons. Once every other month we will run a coupon for a service special in the university newspaper, the Daily Hyperbole. We also run this coupon as a banner ad in the Daily Hyperbole Online.

Social media. We have more than 2,000 likes for our Facebook page, and 3,000+ followers in Twitter. We focus mainly on curated content, not generated content. Our target audience is general biking, families, the university, and local events and discussions.

Website. Our content site will also serve as a marketing medium. We offer downloadable maps of the city bike routes, maps of rides outside the city area, give information about the store, and announce sales. We believe that cyclists will regularly access our site for the valuable information we will provide, and this will reinforce their of awareness of Garrett's Bike Shop, and we will become their bike shop of choice.

Print advertising. In addition to our coupons, we will keep a small 3 column inch ad appearing on a recurring schedule in the Daily Hyperbole. To boost citywide awareness of our sales specials we will also run slightly larger ads in the Metroburg Bombast-Obfuscator during the weekends prior to the sale. Operations

Locations & Facilities

Garrett's Bike Shop is 1,500 square foot store of interior space located on the university campus in Metroburg. Our location, in the first block off campus in a commercial area featuring the university bookstore, a private bookstore, bank, cafes, coffee shops and popular watering holes is ideal. We get constant, daily visual exposure. Students and staff throng the sidewalk outside our door, and we reap the benefits. Our nearest competitor is almost a mile away. For the student customer, on foot, in a hurry, Garrett's Bike Shop is the immediate solution to their needs.

Technology

Our bike shop is equipped with the latest technology to help maintain your bicycle needs. Whether older bike parts, or newer technologies, we stock inventory of whichever parts you seek to maintain your bike is in peak condition.

With our customized online tracking system, we can keep record of what we took care of on your bike from the last visit and maintain an ongoing record for future visits. This allows us to specialize your visits each time you visit our shop.

Equipment & Tools

We recognize that all bikes require basic tune-ups, to complex maintenance. With an array of bikes in mind, we have the right equipment and tools to cater to your biking needs.

Milestones & Metrics

Milestones Table

Milestone Due Date Who's Responsible Details

Write The Target Market Completed Student 2 Section

Contact contractor Completed Joe Smith

Team member 2 needs to Completed Team member 2 xyz... fill out target market

talk to bookkeeper Completed Me Call her at ...

call the new retail chain Completed sales person go do this

hire new staff Completed manager

Add new location Completed CEO

Create New Inventory Completed Plan

Open Social Media Completed Accounts

Complete target market Completed Sarah

Complete target market Completed Jim Research...... section

Grand Opening! Completed

Sign Lease for Downtown Completed Showroom

Example Completed Company xyz

Create social media April 05, 2017 Molly Include Facebook, Twitter strategy and Instagram

Example May 26, 2017 Company xyz

Open second campus May 15, 2018 Sabrina store

Buy a delivery truck May 18, 2018 Jonathan Buy truck from Bob's Auto

Key Metrics

Customer retention is one of our main focal points for Garrett's Bike Shop. Although, ideal that our shop is located in a university focused town, there is a consistent turnover of students after they graduate from the university. Also, during the summer when sales may be lower due to seasonality of university attendance it is important to focus on retention of key customers in Metroburg. With focus on customer retention, we can become the specialty bike shop that customers intend to have repeat business for themselves, and their families.

Company Overview

Ownership & Structure

Garrett's Bike Shop is a subchapter S corporation, and is currently owned by Han Delbar. Hubert Wheeler, current assistant manager of Garrett's Bike Shop, is purchasing Garrett's Bike Shop from Delbar, acquiring existing inventory, and assuming outstanding accounts payable and dating program debts to suppliers, location lease, customer base and information, and Garrett's Bike Shop's business name and goodwill. The business will continue to be a subchapter S corporation. Exchange of ownership will occur on July 1st.

To establish an accurate accounting of existing inventory and outstanding debts, the prior year's closing inventory and year end financial statement as reviewed by the business' CPA were used as benchmarks. The sales, orders placed, deliveries received, and accounts payable payments made have been tracked each month, and a trial balance of these will be run June 15 to establish the final purchase price for inventory on hand, and the amount of Accounts Payable assumed. The figures presented here are conservative, realistic estimates used for planning purposes.

Company History

The current assistant manager, Hubert Wheeler, is buying Garrett's Bike Shop, and will manage the business. He has a B.S. degree in Economics and an M.A. in Comparative Literature. His passion however has always been cycling. He originally worked at his local bike shop when he was in college. After several years trying to find suitable work in his degree field, he gave up chasing the chimera of these fields and decided to work with something substantial, and returned to his youthful enjoyment of bicycles.

He attended two of the major bicycle mechanic training programs, at New England Bicycle Academy and the United Bicycle Institute. These courses covered mechanical service and maintenance, frame building and repair, wheel building, and shop organization, sales, and management. He has 12 years of progressively responsible experience in bicycle shops with the last five at Garrett's Bike Shop.

One of the other full-time employees, Valerie Pede has expressed interest in learning more about the bike industry and she will be promoted to be the new assistant manager. Val has been with us for three years. She graduated from State University at Metroburg with tandem B.S. degrees in Exercise Physiology and Recreation Management. She loves to cycle, and has kept her contacts at the university active. Her

knowledge and expertise draws many women bicyclists to our store where they know they will get the care and attention which is usually missing from traditionally male staffed shops. Team

Management Team

Garrett McKenzie – Founder/Owner After a successful run as a mortgage broker, Garrett will apply his business acumen to leading a company he is passionate about.

Jill Bloom – Shop Manager After a decade of bike-shop experience and five completed triathlons, Jill will anchor the services side of the business.

Heather Gibson – Investor Heather is an avid cyclist and small business investor. Her expertise is in small business expansion.

Advisors, Partners and Resources

• Tom McKey, Advisor

• Han Delbar, Current Owner

• Order Out of Chaos, our full-cycle bookkeeping service

• Continental Shelf Bank

• Newt Ria, a partner at Weasel, Stoat, Muskrat who advised on the sale/purchase arrangements

• The Great Outdoors

• Travel Northwest

• Cycle Parts “R” Us

Financial Plan Forecast

Key Assumptions

Sales vary season to season and with the academic school year. Surprisingly, summer is the slowest season because there are fewer students in town. Business picks up in August with the return of the students and staff, and flourishes in September. Accessories and rainwear sales increase in the autumn and early winter. Repairs and maintenance are steady. Holiday sales are brisk, though generally leaning again to accessories, parts, rainwear, gloves, helmets, headlights, etc. Winter sales are moderate, and then pick up in springtime as people put away their skies and look forward to local outdoor activities, longer daylight hours, and drier weather.

We have three large sales promotions each year.

1. Back to school in August/September. This is our biggest sale of the year. New bicycles, locks, helmets, racks, fenders, backpacks. We always search for a special purchase of good quality, but value priced bikes for this sale such as year end models, slow sellers, new line looks to break into the market. These bikes will almost always sell out to students seeking great values.

2. Year-end holidays. This also overlaps the beginning of Winter term. The retail market demands some participation in this annual buying frenzy, yet, this sale produces lower revenue than our other two events. We sell fewer bikes, and more accessories and clothing.

3. Spring. This coincides with both the return of nice weather, and beginning of Spring term. We feature new bicycles, and repair/maintenance/tune-up specials. It is important to us to have a good selection on hand at this time. When people decide they want that new bike, they want it now. If we don't have the bike then, and make the sale immediately, many riders will decide that they really can get another season out of their old bike, and will spend their discretionary income on some other purchase.

Additionally, we have some special buys available for June graduation.

We get some small monthly revenue from these sources:

• Sale of used bicycles taken in on trade.

• Repair classes taught at the University Outdoor Center, once a term.

• Monthly service contract for repairs and parts with the University Security Office.

Revenue by Month

Expenses by Month

Net Profit (or Loss) by Year

Financing

Use of Funds

We currently have a $100,000 loan. With this money, we will complete construction on our brick and mortar store and supplement revenue for the first month.

Sources of Funds

Heather Gibson, an avid cyclist and investor of small businesses has invested in Garrett's Bike Shop. She is a proponent of small business expansion in the Metroburg area.

Statements

Projected Profit & Loss

FY2016 FY2017 FY2018 Revenue $788,484 $1,064,912 $1,185,287

Direct Costs $358,751 $490,874 $554,080

Gross Margin $429,733 $574,039 $631,206 Gross Margin % 55% 54% 53% Operating Expenses Salary $155,400 $160,210 $165,182 Employee Related Expenses $27,972 $28,838 $29,733 Insurance $4,260 $4,260 $4,260 Leased Equipment $8,400 $8,400 $8,400 Marketing $118,273 $159,736 $177,793 Lease $56,400 $56,400 $56,400 Utilities $6,000 $6,000 $6,000 Office Expenses $39,424 $53,246 $59,264 Total Operating Expenses $416,129 $477,090 $507,032

Operating Income $13,604 $96,948 $124,175

Interest Incurred $5,843 $4,590 $2,752 Depreciation and Amortization $1,353 $2,240 $2,240 Income Taxes $961 $13,518 $17,877 Total Expenses $783,037 $988,312 $1,083,982 Net Profit $5,447 $76,600 $101,305 Net Profit / Sales 1% 7% 9%

Projected Balance Sheet

FY2016 FY2017 FY2018 Cash $32,744 $73,828 $137,687 Accounts Receivable $32,748 $45,142 $50,231 Inventory $122,718 $138,520 $138,520 Other Current Assets Total Current Assets $188,210 $257,490 $326,438

Long-Term Assets $31,200 $31,200 $31,200 Accumulated Depreciation ($1,353) ($3,593) ($5,833) Total Long-Term Assets $29,847 $27,607 $25,367

Total Assets $218,056 $285,097 $351,805

Accounts Payable $96,989 $119,123 $126,320 Income Taxes Payable $961 $13,518 $17,877 Sales Taxes Payable $4,119 $4,622 $5,060 Short-Term Debt $54,349 $55,935 $29,195 Prepaid Revenue Total Current Liabilities $156,418 $193,197 $178,453 Long-Term Debt $66,192 $19,852 $0

Total Liabilities $222,610 $213,050 $178,453

Paid-in Capital Retained Earnings ($10,000) ($4,553) $72,047 Earnings $5,447 $76,600 $101,305 Total Owner's Equity ($4,553) $72,047 $173,352

Total Liabilities & Equity $218,056 $285,097 $351,805

Projected Cash Flow Statement

FY2016 FY2017 FY2018 Net Cash Flow from Operations Net Profit $5,447 $76,600 $101,305 Depreciation and Amortization $1,353 $2,240 $2,240 Change in Accounts Receivable ($32,748) ($12,394) ($5,089) Change in Inventory ($122,718) ($15,802) $0 Change in Accounts Payable $96,989 $22,134 $7,198 Change in Income Tax Payable $961 $12,557 $4,359 Change in Sales Tax Payable $4,119 $503 $438 Change in Prepaid Revenue Net Cash Flow from Operations ($46,597) $85,838 $110,450 Investing & Financing Assets Purchased or Sold ($31,200) Investments Received Change in Long-Term Debt $66,192 ($46,340) ($19,852) Change in Short-Term Debt $44,349 $1,586 ($26,739) Dividends & Distributions Net Cash Flow from Investing & $79,341 ($44,754) ($46,592) Financing Cash at Beginning of Period $0 $32,744 $73,828 Net Change in Cash $32,744 $41,084 $63,859 Cash at End of Period $32,744 $73,828 $137,687

Appendix Profit and Loss Statement

Profit and Loss Statement (With Monthly Detail)

FY2016 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16

Revenue $56,420 $60,864 $62,944 $60,820 $74,976 $85,440 $66,624 $66,624 $63,524 $63,560 $62,612 $64,076

Direct Costs $26,636 $28,676 $29,548 $28,367 $31,379 $33,482 $31,358 $31,156 $29,482 $29,629 $29,166 $29,872

Gross Margin $29,784 $32,188 $33,396 $32,453 $43,597 $51,958 $35,265 $35,468 $34,042 $33,931 $33,446 $34,203

Gross 53% 53% 53% 53% 58% 61% 53% 53% 54% 53% 53% 53% Margin %

Operating Expenses

Salary $12,948 $12,948 $12,948 $12,948 $12,951 $12,951 $12,951 $12,951 $12,951 $12,951 $12,951 $12,951

Employee Related $2,331 $2,330 $2,331 $2,331 $2,331 $2,331 $2,331 $2,331 $2,331 $2,332 $2,331 $2,331 Expenses

Insurance $355 $355 $355 $355 $355 $355 $355 $355 $355 $355 $355 $355

Leased $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 Equipment

Marketing $8,463 $9,130 $9,441 $9,123 $11,247 $12,816 $9,993 $9,994 $9,528 $9,534 $9,392 $9,612

Lease $4,700 $4,700 $4,700 $4,700 $4,700 $4,700 $4,700 $4,700 $4,700 $4,700 $4,700 $4,700

Utilities $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Office $2,821 $3,043 $3,147 $3,041 $3,749 $4,272 $3,331 $3,332 $3,176 $3,178 $3,130 $3,204 Expenses

Total Operating $32,818 $33,706 $34,123 $33,697 $36,533 $38,625 $34,862 $34,862 $34,242 $34,249 $34,059 $34,353 Expenses

Operating ($3,034) ($1,518) ($726) ($1,245) $7,065 $13,332 $404 $606 ($200) ($317) ($614) ($149) Income

Interest Incurred $83 $583 $571 $560 $548 $536 $524 $512 $500 $488 $475 $463

Depreciation and $167 $166 $167 $167 $166 $167 $167 $186 Amortization

Income Taxes $0 $0 $0 $0 $0 $1,599 ($43) ($11) ($130) ($146) ($188) ($120)

Total $59,537 $62,966 $64,241 $62,625 $68,625 $74,409 $66,868 $66,685 $64,260 $64,386 $63,680 $64,755 Expenses

Net Profit ($3,117) ($2,102) ($1,297) ($1,805) $6,351 $11,031 ($244) ($61) ($736) ($826) ($1,068) ($679)

Net Profit / (6%) (3%) (2%) (3%) 8% 13% 0% 0% (1%) (1%) (2%) (1%) Sales

FY2017 Oct '16 Nov '16 Dec '16 Jan '17 Feb '17 Mar '17 Apr '17 May '17 Jun '17 Jul '17 Aug '17 Sep '17

Revenue $88,742 $88,744 $88,742 $88,742 $88,744 $88,742 $88,742 $88,744 $88,742 $88,742 $88,744 $88,742

Direct Costs $40,906 $40,907 $40,906 $40,905 $40,907 $40,906 $40,906 $40,907 $40,905 $40,906 $40,907 $40,906

Gross Margin $47,836 $47,837 $47,836 $47,836 $47,837 $47,836 $47,836 $47,837 $47,836 $47,836 $47,837 $47,836

Gross 54% 54% 54% 54% 54% 54% 54% 54% 54% 54% 54% 54% Margin %

Operating Expenses

Salary $13,350 $13,349 $13,350 $13,349 $13,352 $13,351 $13,352 $13,351 $13,352 $13,351 $13,352 $13,351

Employee Related $2,403 $2,403 $2,403 $2,403 $2,403 $2,403 $2,404 $2,403 $2,403 $2,403 $2,404 $2,403 Expenses

Insurance $355 $355 $355 $355 $355 $355 $355 $355 $355 $355 $355 $355

Leased $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 Equipment

Marketing $13,311 $13,312 $13,311 $13,311 $13,312 $13,311 $13,311 $13,312 $13,311 $13,312 $13,311 $13,311

Lease $4,700 $4,700 $4,700 $4,700 $4,700 $4,700 $4,700 $4,700 $4,700 $4,700 $4,700 $4,700

Utilities $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Office $4,437 $4,438 $4,437 $4,437 $4,437 $4,437 $4,437 $4,437 $4,437 $4,438 $4,437 $4,437 Expenses

Total Operating $39,756 $39,756 $39,756 $39,755 $39,760 $39,757 $39,759 $39,758 $39,759 $39,757 $39,759 $39,758 Expenses

Operating $8,080 $8,081 $8,080 $8,081 $8,078 $8,079 $8,077 $8,080 $8,077 $8,079 $8,078 $8,078 Income

Interest Incurred $451 $439 $426 $414 $401 $389 $377 $364 $351 $339 $326 $313

Depreciation and $187 $187 $186 $187 $187 $186 $187 $187 $186 $187 $187 $186 Amortization

Income Taxes $1,117 $1,118 $1,120 $1,122 $1,124 $1,125 $1,127 $1,129 $1,131 $1,133 $1,135 $1,137

Total $82,417 $82,406 $82,395 $82,383 $82,378 $82,364 $82,355 $82,344 $82,334 $82,322 $82,313 $82,301 Expenses

Net Profit $6,325 $6,338 $6,347 $6,359 $6,366 $6,378 $6,387 $6,400 $6,408 $6,420 $6,431 $6,441

Net Profit / 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% Sales

FY2018 Oct '17 Nov '17 Dec '17 Jan '18 Feb '18 Mar '18 Apr '18 May '18 Jun '18 Jul '18 Aug '18 Sep '18

Revenue $98,774 $98,774 $98,774 $98,774 $98,773 $98,775 $98,774 $98,773 $98,774 $98,775 $98,773 $98,774

Direct Costs $46,173 $46,173 $46,174 $46,173 $46,173 $46,174 $46,174 $46,173 $46,173 $46,174 $46,173 $46,173

Gross Margin $52,601 $52,601 $52,601 $52,601 $52,600 $52,601 $52,601 $52,600 $52,601 $52,601 $52,600 $52,601

Gross 53% 53% 53% 53% 53% 53% 53% 53% 53% 53% 53% 53% Margin %

Operating Expenses

Salary $13,764 $13,764 $13,764 $13,764 $13,764 $13,764 $13,763 $13,767 $13,767 $13,767 $13,767 $13,767

Employee Related $2,477 $2,478 $2,477 $2,478 $2,477 $2,478 $2,477 $2,478 $2,478 $2,478 $2,479 $2,478 Expenses

Insurance $355 $355 $355 $355 $355 $355 $355 $355 $355 $355 $355 $355

Leased $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 Equipment

Marketing $14,817 $14,816 $14,816 $14,816 $14,816 $14,816 $14,816 $14,816 $14,816 $14,816 $14,816 $14,816

Lease $4,700 $4,700 $4,700 $4,700 $4,700 $4,700 $4,700 $4,700 $4,700 $4,700 $4,700 $4,700

Utilities $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Office $4,939 $4,938 $4,939 $4,939 $4,938 $4,939 $4,939 $4,938 $4,939 $4,939 $4,938 $4,939 Expenses

Total Operating $42,251 $42,252 $42,251 $42,251 $42,251 $42,252 $42,250 $42,255 $42,255 $42,255 $42,254 $42,255 Expenses

Operating $10,350 $10,349 $10,349 $10,349 $10,349 $10,350 $10,350 $10,346 $10,345 $10,346 $10,346 $10,346 Income

Interest Incurred $301 $288 $275 $262 $249 $236 $223 $210 $197 $184 $171 $157

Depreciation and $187 $187 $186 $187 $187 $186 $187 $187 $186 $187 $187 $186 Amortization

Income Taxes $1,479 $1,481 $1,484 $1,485 $1,487 $1,489 $1,491 $1,492 $1,494 $1,497 $1,498 $1,500

Total $90,391 $90,380 $90,370 $90,359 $90,347 $90,337 $90,324 $90,317 $90,306 $90,296 $90,283 $90,272 Expenses

Net Profit $8,383 $8,394 $8,404 $8,415 $8,426 $8,438 $8,450 $8,456 $8,468 $8,479 $8,490 $8,502

Net Profit / 8% 8% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% Sales

FY2016 FY2017 FY2018

Revenue $788,484 $1,064,912 $1,185,287

Direct Costs $358,751 $490,874 $554,080

Gross Margin $429,733 $574,039 $631,206

Gross Margin % 55% 54% 53%

Operating Expenses

Salary $155,400 $160,210 $165,182

Employee Related Expenses $27,972 $28,838 $29,733

Insurance $4,260 $4,260 $4,260

Leased Equipment $8,400 $8,400 $8,400

Marketing $118,273 $159,736 $177,793

Lease $56,400 $56,400 $56,400

Utilities $6,000 $6,000 $6,000

Office Expenses $39,424 $53,246 $59,264

Total Operating Expenses $416,129 $477,090 $507,032

Operating Income $13,604 $96,948 $124,175

Interest Incurred $5,843 $4,590 $2,752

Depreciation and Amortization $1,353 $2,240 $2,240

Income Taxes $961 $13,518 $17,877

Total Expenses $783,037 $988,312 $1,083,982

Net Profit $5,447 $76,600 $101,305

Net Profit / Sales 1% 7% 9%

Balance Sheet

Balance Sheet (With Monthly Detail)

FY2016 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16

Cash $78,503 $86,825 $96,974 $104,103 $90,006 $72,267 $76,683 $75,743 $73,851 $57,089 $44,847 $32,744

Accounts $28,879 $31,208 $32,314 $31,135 $38,226 $43,533 $34,248 $34,206 $32,460 $32,486 $31,951 $32,748 Receivable

Inventory $86,591 $89,294 $93,228 $96,220 $95,997 $91,996 $90,266 $88,277 $88,667 $99,945 $111,685 $122,718

Other Current Assets

Total Current $193,972 $207,326 $222,515 $231,458 $224,229 $207,796 $201,197 $198,225 $194,978 $189,519 $188,483 $188,210 Assets

Long-Term $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $31,200 Assets

Accumulated ($167) ($333) ($500) ($667) ($833) ($1,000) ($1,167) ($1,353) Depreciation

Total Long- $29,833 $29,667 $29,500 $29,333 $29,167 $29,000 $28,833 $29,847 Term Assets

Total Assets $193,972 $207,326 $222,515 $231,458 $254,062 $237,462 $230,697 $227,558 $224,144 $218,519 $217,316 $218,056

Accounts $45,768 $63,200 $81,514 $98,937 $117,279 $89,999 $89,790 $88,537 $88,206 $90,820 $93,220 $96,989 Payable

Income Taxes $0 $0 $0 $0 $0 $1,599 $1,556 $1,545 $1,415 $1,269 $1,081 $961 Payable

Sales Taxes $1,338 $2,890 $4,573 $1,450 $2,926 $4,552 $1,871 $3,658 $5,053 $1,411 $2,700 $4,119 Payable

Short-Term $52,909 $53,035 $53,192 $53,319 $53,446 $53,574 $53,702 $53,831 $53,960 $54,089 $54,219 $54,349 Debt

Prepaid Revenue

Total Current $100,015 $119,125 $139,279 $153,705 $173,651 $149,724 $146,919 $147,571 $148,634 $147,589 $151,220 $156,418 Liabilities

Long-Term Debt $107,075 $103,420 $99,752 $96,073 $92,381 $88,677 $84,961 $81,232 $77,491 $73,737 $69,971 $66,192

Total $207,089 $222,545 $239,031 $249,778 $266,032 $238,402 $231,880 $228,803 $226,125 $221,326 $221,191 $222,610 Liabilities

Paid-in Capital

Retained ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) Earnings

Earnings ($3,117) ($5,219) ($6,516) ($8,321) ($1,970) $9,061 $8,817 $8,756 $8,020 $7,194 $6,126 $5,447

Total Owner's ($13,117) ($15,219) ($16,516) ($18,321) ($11,970) ($939) ($1,183) ($1,244) ($1,980) ($2,806) ($3,874) ($4,553) Equity

Total Liabilities & $193,972 $207,326 $222,515 $231,458 $254,062 $237,462 $230,697 $227,558 $224,144 $218,519 $217,316 $218,056 Equity

FY2017 Oct '16 Nov '16 Dec '16 Jan '17 Feb '17 Mar '17 Apr '17 May '17 Jun '17 Jul '17 Aug '17 Sep '17

Cash $27,397 $38,533 $44,844 $47,561 $54,793 $60,302 $61,186 $66,693 $72,200 $69,661 $71,744 $73,828

Accounts $45,142 $45,142 $45,142 $45,141 $45,143 $45,142 $45,141 $45,143 $45,142 $45,141 $45,143 $45,142 Receivable

Inventory $122,718 $122,718 $122,718 $122,718 $122,718 $122,718 $122,718 $122,718 $122,718 $127,986 $133,253 $138,520

Other Current Assets

Total Current $195,257 $206,394 $212,704 $215,420 $222,654 $228,162 $229,045 $234,554 $240,060 $242,788 $250,139 $257,490 Assets

Long-Term $31,200 $31,200 $31,200 $31,200 $31,200 $31,200 $31,200 $31,200 $31,200 $31,200 $31,200 $31,200 Assets

Accumulated ($1,540) ($1,727) ($1,913) ($2,100) ($2,287) ($2,473) ($2,660) ($2,847) ($3,033) ($3,220) ($3,407) ($3,593) Depreciation

Total Long- $29,660 $29,473 $29,287 $29,100 $28,913 $28,727 $28,540 $28,353 $28,167 $27,980 $27,793 $27,607 Term Assets

Total Assets $224,917 $235,867 $241,991 $244,520 $251,568 $256,889 $257,585 $262,907 $268,227 $270,768 $277,932 $285,097

Accounts $102,646 $108,273 $110,036 $111,865 $113,592 $113,592 $113,592 $113,592 $113,592 $115,435 $117,279 $119,123 Payable

Income Taxes $2,078 $3,196 $3,355 $4,477 $5,601 $6,726 $7,853 $8,982 $10,113 $11,246 $12,381 $13,518 Payable

Sales Taxes $1,541 $3,081 $4,622 $1,540 $3,081 $4,622 $1,540 $3,081 $4,622 $1,540 $3,081 $4,622 Payable

Short-Term $54,479 $54,610 $54,740 $54,872 $55,003 $55,135 $55,268 $55,400 $55,534 $55,667 $55,801 $55,935 Debt

Prepaid Revenue

Total Current $160,744 $169,160 $172,754 $172,754 $177,277 $180,075 $178,252 $181,055 $183,861 $183,888 $188,542 $193,197 Liabilities

Long-Term Debt $62,401 $58,597 $54,780 $50,951 $47,108 $43,253 $39,386 $35,505 $31,611 $27,705 $23,785 $19,852

Total $223,145 $227,757 $227,534 $223,704 $224,386 $223,329 $217,638 $216,560 $215,472 $211,593 $212,327 $213,050 Liabilities

Paid-in Capital

Retained ($4,553) ($4,553) ($4,553) ($4,553) ($4,553) ($4,553) ($4,553) ($4,553) ($4,553) ($4,553) ($4,553) ($4,553) Earnings

Earnings $6,325 $12,664 $19,010 $25,369 $31,735 $38,113 $44,500 $50,900 $57,308 $63,728 $70,159 $76,600

Total Owner's $1,772 $8,110 $14,457 $20,816 $27,182 $33,560 $39,947 $46,347 $52,755 $59,175 $65,606 $72,047 Equity

Total Liabilities & $224,917 $235,867 $241,991 $244,520 $251,568 $256,889 $257,585 $262,907 $268,227 $270,768 $277,932 $285,097 Equity

FY2018 Oct '17 Nov '17 Dec '17 Jan '18 Feb '18 Mar '18 Apr '18 May '18 Jun '18 Jul '18 Aug '18 Sep '18

Cash $74,586 $85,057 $80,164 $83,731 $92,357 $100,281 $103,146 $111,066 $118,986 $121,847 $129,768 $137,687

Accounts $50,230 $50,231 $50,230 $50,231 $50,230 $50,231 $50,230 $50,230 $50,230 $50,231 $50,230 $50,231 Receivable

Inventory $138,520 $138,520 $138,520 $138,520 $138,520 $138,520 $138,520 $138,520 $138,520 $138,520 $138,520 $138,520

Other Current Assets

Total Current $263,337 $273,807 $268,914 $272,482 $281,107 $289,031 $291,896 $299,816 $307,736 $310,598 $318,518 $326,438 Assets

Long-Term $31,200 $31,200 $31,200 $31,200 $31,200 $31,200 $31,200 $31,200 $31,200 $31,200 $31,200 $31,200 Assets

Accumulated ($3,780) ($3,967) ($4,153) ($4,340) ($4,527) ($4,713) ($4,900) ($5,087) ($5,273) ($5,460) ($5,647) ($5,833) Depreciation

Total Long- $27,420 $27,233 $27,047 $26,860 $26,673 $26,487 $26,300 $26,113 $25,927 $25,740 $25,553 $25,367 Term Assets

Total Assets $290,757 $301,040 $295,961 $299,342 $307,780 $315,518 $318,196 $325,929 $333,662 $336,338 $344,071 $351,805

Accounts $121,668 $124,214 $124,916 $125,618 $126,320 $126,320 $126,321 $126,320 $126,320 $126,321 $126,321 $126,320 Payable

Income Taxes $14,997 $16,478 $4,444 $5,929 $7,416 $8,905 $10,396 $11,888 $13,382 $14,879 $16,377 $17,877 Payable

Sales Taxes $1,686 $3,373 $5,059 $1,687 $3,373 $5,060 $1,686 $3,373 $5,059 $1,687 $3,373 $5,060 Payable

Short-Term $56,069 $56,204 $56,339 $56,474 $56,601 $52,726 $48,837 $44,935 $41,020 $37,091 $33,150 $29,195 Debt

Prepaid Revenue

Total Current $194,420 $200,269 $190,758 $189,709 $193,711 $193,011 $187,239 $186,516 $185,781 $179,978 $179,221 $178,453 Liabilities

Long-Term Debt $15,906 $11,947 $7,975 $3,990 $0 $0 $0 $0 $0 $0 $0 $0

Total $210,327 $212,216 $198,734 $193,699 $193,711 $193,011 $187,239 $186,516 $185,781 $179,978 $179,221 $178,453 Liabilities

Paid-in Capital

Retained $72,047 $72,047 $72,047 $72,047 $72,047 $72,047 $72,047 $72,047 $72,047 $72,047 $72,047 $72,047 Earnings

Earnings $8,383 $16,777 $25,180 $33,596 $42,022 $50,460 $58,909 $67,366 $75,834 $84,313 $92,803 $101,305

Total Owner's $80,430 $88,824 $97,228 $105,643 $114,069 $122,507 $130,957 $139,413 $147,881 $156,360 $164,850 $173,352 Equity

Total Liabilities & $290,757 $301,040 $295,961 $299,342 $307,780 $315,518 $318,196 $325,929 $333,662 $336,338 $344,071 $351,805 Equity

FY2016 FY2017 FY2018

Cash $32,744 $73,828 $137,687

Accounts Receivable $32,748 $45,142 $50,231

Inventory $122,718 $138,520 $138,520

Other Current Assets

Total Current Assets $188,210 $257,490 $326,438

Long-Term Assets $31,200 $31,200 $31,200

Accumulated Depreciation ($1,353) ($3,593) ($5,833)

Total Long-Term Assets $29,847 $27,607 $25,367

Total Assets $218,056 $285,097 $351,805

Accounts Payable $96,989 $119,123 $126,320

Income Taxes Payable $961 $13,518 $17,877

Sales Taxes Payable $4,119 $4,622 $5,060

Short-Term Debt $54,349 $55,935 $29,195

Prepaid Revenue

Total Current Liabilities $156,418 $193,197 $178,453

Long-Term Debt $66,192 $19,852 $0

Total Liabilities $222,610 $213,050 $178,453

Paid-in Capital

Retained Earnings ($10,000) ($4,553) $72,047

Earnings $5,447 $76,600 $101,305

Total Owner's Equity ($4,553) $72,047 $173,352

Total Liabilities & Equity $218,056 $285,097 $351,805

Cash Flow Statement

Cash Flow Statement (With Monthly Detail)

FY2016 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16

Net Cash Flow from Operations

Net Profit ($3,117) ($2,102) ($1,297) ($1,805) $6,351 $11,031 ($244) ($61) ($736) ($826) ($1,068) ($679)

Depreciation and $167 $167 $167 $167 $167 $167 $167 $187 Amortization

Change in Accounts ($28,879) ($2,329) ($1,106) $1,179 ($7,091) ($5,307) $9,286 $42 $1,746 ($26) $535 ($797) Receivable

Change in ($86,591) ($2,703) ($3,934) ($2,992) $223 $4,000 $1,730 $1,990 ($391) ($11,277) ($11,741) ($11,033) Inventory

Change in Accounts $45,768 $17,432 $18,314 $17,422 $18,342 ($27,279) ($209) ($1,253) ($331) $2,613 $2,401 $3,769 Payable

Change in Income Tax $0 $0 $0 $0 $0 $1,599 ($43) ($11) ($130) ($146) ($188) ($120) Payable

Change in Sales Tax $1,338 $1,552 $1,683 ($3,123) $1,476 $1,626 ($2,681) $1,787 $1,395 ($3,642) $1,289 $1,419 Payable

Change in Prepaid Revenue

Net Cash Flow from ($71,481) $11,851 $13,660 $10,682 $19,467 ($14,163) $8,005 $2,660 $1,720 ($13,137) ($8,605) ($7,255) Operations

Investing & Financing

Assets Purchased or ($30,000) ($1,200) Sold

Investments Received

Change in Long-Term $107,075 ($3,655) ($3,667) ($3,679) ($3,692) ($3,704) ($3,716) ($3,729) ($3,741) ($3,754) ($3,766) ($3,779) Debt

Change in Short-Term $42,909 $126 $157 $127 $128 $128 $128 $129 $129 $129 $130 $130 Debt

Dividends & Distributions

Net Cash Flow from $149,983 ($3,529) ($3,511) ($3,552) ($33,564) ($3,576) ($3,588) ($3,600) ($3,612) ($3,624) ($3,637) ($4,849) Investing & Financing

Cash at Beginning of $0 $78,503 $86,825 $96,974 $104,103 $90,006 $72,267 $76,683 $75,743 $73,851 $57,089 $44,847 Period

Net Change in $78,503 $8,322 $10,149 $7,129 ($14,097) ($17,739) $4,417 ($940) ($1,892) ($16,762) ($12,242) ($12,104) Cash

Cash at End $78,503 $86,825 $96,974 $104,103 $90,006 $72,267 $76,683 $75,743 $73,851 $57,089 $44,847 $32,744 of Period

FY2017 Oct '16 Nov '16 Dec '16 Jan '17 Feb '17 Mar '17 Apr '17 May '17 Jun '17 Jul '17 Aug '17 Sep '17

Net Cash Flow from Operations

Net Profit $6,325 $6,338 $6,347 $6,359 $6,366 $6,378 $6,387 $6,400 $6,408 $6,420 $6,431 $6,441

Depreciation and $187 $187 $187 $187 $187 $187 $187 $187 $187 $187 $187 $187 Amortization

Change in Accounts ($12,394) ($1) $1 $1 ($2) $1 $1 ($2) $1 $1 ($2) $1 Receivable

Change in $0 $0 $0 $0 $0 $0 $0 $0 $0 ($5,268) ($5,267) ($5,268) Inventory

Change in Accounts $5,657 $5,627 $1,763 $1,829 $1,727 $0 $0 $0 $0 $1,843 $1,844 $1,844 Payable

Change in Income Tax $1,117 $1,118 $159 $1,122 $1,124 $1,125 $1,127 $1,129 $1,131 $1,133 $1,135 $1,137 Payable

Change in Sales Tax ($2,578) $1,540 $1,541 ($3,082) $1,541 $1,541 ($3,082) $1,541 $1,541 ($3,082) $1,541 $1,541 Payable

Change in Prepaid Revenue

Net Cash Flow from ($1,686) $14,810 $9,997 $6,414 $10,943 $9,232 $4,619 $9,255 $9,268 $1,234 $5,869 $5,883 Operations

Investing & Financing

Assets Purchased or Sold

Investments Received

Change in Long-Term ($3,791) ($3,804) ($3,817) ($3,829) ($3,842) ($3,855) ($3,868) ($3,881) ($3,894) ($3,907) ($3,920) ($3,933) Debt

Change in Short-Term $130 $131 $131 $131 $132 $132 $132 $133 $133 $133 $134 $134 Debt

Dividends & Distributions

Net Cash Flow from ($3,661) ($3,673) ($3,686) ($3,698) ($3,711) ($3,723) ($3,735) ($3,748) ($3,761) ($3,773) ($3,786) ($3,799) Investing & Financing

Cash at Beginning of $32,744 $27,397 $38,533 $44,844 $47,561 $54,793 $60,302 $61,186 $66,693 $72,200 $69,661 $71,744 Period

Net Change in ($5,347) $11,136 $6,311 $2,716 $7,233 $5,509 $883 $5,507 $5,507 ($2,539) $2,083 $2,085 Cash

Cash at End $27,397 $38,533 $44,844 $47,561 $54,793 $60,302 $61,186 $66,693 $72,200 $69,661 $71,744 $73,828 of Period

FY2018 Oct '17 Nov '17 Dec '17 Jan '18 Feb '18 Mar '18 Apr '18 May '18 Jun '18 Jul '18 Aug '18 Sep '18

Net Cash Flow from Operations

Net Profit $8,383 $8,394 $8,404 $8,415 $8,426 $8,438 $8,450 $8,456 $8,468 $8,479 $8,490 $8,502

Depreciation and $187 $187 $187 $187 $187 $187 $187 $187 $187 $187 $187 $187 Amortization

Change in Accounts ($5,089) ($1) $1 ($1) $1 ($2) $1 $0 $0 ($1) $2 ($1) Receivable

Change in $0 $1 ($1) $0 $0 $1 ($1) $0 $0 $1 ($1) $0 Inventory

Change in Accounts $2,545 $2,546 $702 $702 $702 $0 $0 $0 $0 $0 $0 $0 Payable

Change in Income Tax $1,479 $1,481 ($12,034) $1,485 $1,487 $1,489 $1,491 $1,492 $1,494 $1,497 $1,498 $1,500 Payable

Change in Sales Tax ($2,936) $1,687 $1,686 ($3,372) $1,686 $1,687 ($3,374) $1,687 $1,686 ($3,372) $1,686 $1,687 Payable

Change in Prepaid Revenue

Net Cash Flow from $4,570 $14,294 ($1,055) $7,417 $12,489 $11,799 $6,754 $11,822 $11,835 $6,790 $11,862 $11,874 Operations

Investing & Financing

Assets Purchased or Sold

Investments Received

Change in Long-Term ($3,946) ($3,959) ($3,972) ($3,985) ($3,990) $0 $0 $0 $0 $0 $0 $0 Debt

Change in Short-Term $134 $135 $135 $135 $127 ($3,876) ($3,889) ($3,902) ($3,915) ($3,928) ($3,941) ($3,955) Debt

Dividends & Distributions

Net Cash Flow from ($3,811) ($3,824) ($3,837) ($3,850) ($3,863) ($3,876) ($3,889) ($3,902) ($3,915) ($3,928) ($3,941) ($3,955) Investing & Financing

Cash at Beginning of $73,828 $74,586 $85,057 $80,164 $83,731 $92,357 $100,281 $103,146 $111,066 $118,986 $121,847 $129,768 Period

Net Change in $758 $10,470 ($4,892) $3,567 $8,626 $7,924 $2,865 $7,920 $7,920 $2,862 $7,920 $7,919 Cash

Cash at End $74,586 $85,057 $80,164 $83,731 $92,357 $100,281 $103,146 $111,066 $118,986 $121,847 $129,768 $137,687 of Period

FY2016 FY2017 FY2018

Net Cash Flow from Operations

Net Profit $5,447 $76,600 $101,305

Depreciation and Amortization $1,353 $2,240 $2,240

Change in Accounts Receivable ($32,748) ($12,394) ($5,089)

Change in Inventory ($122,718) ($15,802) $0

Change in Accounts Payable $96,989 $22,134 $7,198

Change in Income Tax Payable $961 $12,557 $4,359

Change in Sales Tax Payable $4,119 $503 $438

Change in Prepaid Revenue

Net Cash Flow from Operations ($46,597) $85,838 $110,450

Investing & Financing

Assets Purchased or Sold ($31,200)

Investments Received

Change in Long-Term Debt $66,192 ($46,340) ($19,852)

Change in Short-Term Debt $44,349 $1,586 ($26,739)

Dividends & Distributions

Net Cash Flow from Investing & Financing $79,341 ($44,754) ($46,592)

Cash at Beginning of Period $0 $32,744 $73,828

Net Change in Cash $32,744 $41,084 $63,859

Cash at End of Period $32,744 $73,828 $137,687