Grizzly Bear Financial Managers

Financial Plan:

The following sections will outline important financial information.

Projected Profit and Loss:

The following table will indicate projected profit and loss.

Chart: Profit Monthly

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Chart: Profit Yearly

Chart: Gross Margin Monthly

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Chart: Gross Margin Yearly

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Pro Forma Profit and Loss

Year 1 Year 2 Year 3

Sales $86,891 $128,000 $147,090
Direct Cost of Sales $6,951 $10,240 $11,767
Other Production Expenses $0 $0 $0
Total Cost of Sales $6,951 $10,240 $11,767

Gross Margin $79,940 $117,760 $135,323

Gross Margin % 92.00% 92.00% 92.00%

Expenses
Payroll $63,120 $67,000 $72,000
Sales and Marketing and Other $1,200 $1,200 $1,200
Expenses
Depreciation $456 $456 $456
Leased Equipment $0 $0 $0
Utilities $0 $0 $0
Insurance $1,800 $1,800 $1,800
Rent $18,000 $18,000 $18,000
Payroll Taxes $9,468 $10,050 $10,800
Other $0 $0 $0

Total Operating Expenses $94,044 $98,506 $104,256

Profit Before Interest and Taxes ($14,104) $19,254 $31,067

EBITDA ($13,648) $19,710 $31,523
Interest Expense $0 $0 $0
Taxes Incurred $0 $5,776 $9,320

Net Profit ($14,104) $13,478 $21,747

Net Profit/Sales -16.23% 10.53% 14.78%

Projected Cash Flow

The following chart and table will indicate projected cash flow.

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Table: Cash Flow

Pro Forma Cash Flow

Year 1 Year 2 Year 3
Cash Received

Cash from Operations

Cash Sales $86,891 $128,000 $147,090
Subtotal Cash from Operations $86,891 $128,000 $147,090

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $86,891 $128,000 $147,090

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $63,120 $67,000 $72,000
Bill Payments $34,142 $46,475 $52,409
Subtotal Spent on Operations $97,262 $113,475 $124,409

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $97,262 $113,475 $124,409

Net Cash Flow ($10,371) $14,525 $22,681

Cash Balance $8,429 $22,954 $45,635

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Chart: Cash

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7.5 Projected Balance Sheet

The following table will indicate the projected balance sheet.

Table: Balance Sheet

Pro Forma Balance Sheet

Year 1 Year 2 Year 3
Assets

Current Assets
Cash $8,429 $22,954 $45,635
Other Current Assets $0 $0 $0
Total Current Assets $8,429 $22,954 $45,635

Long-term Assets
Long-term Assets $2,300 $2,300 $2,300
Accumulated Depreciation $456 $912 $1,368
Total Long-term Assets $1,844 $1,388 $932
Total Assets $10,273 $24,342 $46,567

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Accounts Payable $3,277 $3,868 $4,347
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $3,277 $3,868 $4,347

Long-term Liabilities $0 $0 $0
Total Liabilities $3,277 $3,868 $4,347

Paid-in Capital $22,000 $22,000 $22,000

Retained Earnings ($900) ($15,004) ($1,526)
Earnings ($14,104) $13,478 $21,747
Total Capital $6,996 $20,474 $42,220
Total Liabilities and Capital $10,273 $24,342 $46,567

Net Worth $6,996 $20,474 $42,220

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7.6 Business Ratios

The following table outlines some of the more important ratios from the Portfolio Fund
Managing industry. The final column, Industry Profile, details specific ratios based on the industry as it
is classified by the NAICS code, 523920.

Table: Ratios

Ratio Analysis
Year 1 Year 2 Year 3 Industry
Profile
Sales Growth n.a. 47.31% 14.91% 11.35%

Percent of Total Assets

Other Current Assets 0.00% 0.00% 0.00% 34.12%
Total Current Assets 82.05% 94.30% 98.00% 95.71%
Long-term Assets 17.95% 5.70% 2.00% 4.29%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 31.90% 15.89% 9.33% 32.96%

Long-term Liabilities 0.00% 0.00% 0.00% 17.78%
Total Liabilities 31.90% 15.89% 9.33% 50.74%
Net Worth 68.10% 84.11% 90.67% 49.26%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 92.00% 92.00% 92.00% 56.89%
Selling, General & Administrative 108.23% 81.47% 77.22% 19.06%
Expenses
Advertising Expenses 0.00% 0.00% 0.00% 4.69%
Profit Before Interest and Taxes -16.23% 15.04% 21.12% 11.71%

Main Ratios
Current 2.57 5.93 10.50 2.34
Quick 2.57 5.93 10.50 2.11
Total Debt to Total Assets 31.90% 15.89% 9.33% 55.75%
Pre-tax Return on Net Worth -201.61% 94.04% 73.58% 2.50%
Pre-tax Return on Assets -137.29% 79.10% 66.71% 5.64%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin -16.23% 10.53% 14.78% n.a
Return on Equity -201.61% 65.83% 51.51% n.a

Activity Ratios
Accounts Payable Turnover 11.42 12.17 12.17 n.a
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Payment Days 27 28 28 n.a

Total Asset Turnover 8.46 5.26 3.16 n.a

Debt Ratios
Debt to Net Worth 0.47 0.19 0.10 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a

Liquidity Ratios
Net Working Capital $5,152 $19,086 $41,288 n.a
Interest Coverage 0.00 0.00 0.00 n.a

Additional Ratios
Assets to Sales 0.12 0.19 0.32 n.a
Current Debt/Total Assets 32% 16% 9% n.a
Acid Test 2.57 5.93 10.50 n.a
Sales/Net Worth 12.42 6.25 3.48 n.a
Dividend Payout 0.00 0.00 0.00 n.a

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Table: Profit and Loss

Pro Forma
Profit and
Loss
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Sales $0 $3,390 $4,441 $6,569 $7,201 $7,830 $8,339 $9,001 $9,648 $10,037 $10,092 $10,343
Direct Cost $0 $271 $355 $526 $576 $626 $667 $720 $772 $803 $807 $827
of Sales
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Production
Expenses
Total Cost of $0 $271 $355 $526 $576 $626 $667 $720 $772 $803 $807 $827
Sales

Gross Margin $0 $3,119 $4,086 $6,043 $6,625 $7,204 $7,672 $8,281 $8,876 $9,234 $9,285 $9,516
Gross Margin 0.00% 92.00% 92.00% 92.00% 92.00% 92.00% 92.00% 92.00% 92.00% 92.00% 92.00% 92.00%
%

Expenses
Payroll $3,500 $5,420 $5,420 $5,420 $5,420 $5,420 $5,420 $5,420 $5,420 $5,420 $5,420 $5,420
Sales and $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Marketing
and Other
Expenses
Depreciation $38 $38 $38 $38 $38 $38 $38 $38 $38 $38 $38 $38
Leased $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Equipment
Utilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Insurance $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
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Rent $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Payroll Taxes 15% $525 $813 $813 $813 $813 $813 $813 $813 $813 $813 $813 $813
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total $5,813 $8,021 $8,021 $8,021 $8,021 $8,021 $8,021 $8,021 $8,021 $8,021 $8,021 $8,021
Operating
Expenses

Profit Before ($5,813) ($4,902) ($3,935) ($1,978) ($1,396) ($817) ($349) $260 $855 $1,213 $1,264 $1,495
Interest and
Taxes
EBITDA ($5,775) ($4,864) ($3,897) ($1,940) ($1,358) ($779) ($311) $298 $893 $1,251 $1,302 $1,533
Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Expense
Taxes $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Incurred

Net Profit ($5,813) ($4,902) ($3,935) ($1,978) ($1,396) ($817) ($349) $260 $855 $1,213 $1,264 $1,495
Net 0.00% - -88.61% -30.10% -19.39% - -4.19% 2.89% 8.86% 12.09% 12.52% 14.45%
Profit/Sales 144.61% 10.44%

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Table: Cash Flow

Pro Forma
Cash Flow
Month Month Month Month Month Month Month Month
1 2 3 4 5 Month Month Month Month 10 11 12
6 7 8 9
Cash Received

Cash from
Operations
Cash Sales $0 $3,390 $4,441 $6,569 $7,201 $7,830 $8,339 $9,001 $9,648 $10,037 $10,092 $10,343
Subtotal Cash $0 $3,390 $4,441 $6,569 $7,201 $7,830 $8,339 $9,001 $9,648 $10,037 $10,092 $10,343
from Operations

Additional Cash
Received
Sales Tax, 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
VAT,
HST/GST
Received
New Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
New Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
(interest-free)
New Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Sales of Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Assets
Sales of Long- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
term Assets
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New Investment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received
Subtotal Cash $0 $3,390 $4,441 $6,569 $7,201 $7,830 $8,339 $9,001 $9,648 $10,037 $10,092 $10,343
Received

Expenditures Month Month Month Month Month Month Month Month

1 2 3 4 5 Month Month Month Month 10 11 12
6 7 8 9

Expenditures
from Operations
Cash Spending $3,500 $5,420 $5,420 $5,420 $5,420 $5,420 $5,420 $5,420 $5,420 $5,420 $5,420 $5,420
Bill Payments $76 $2,294 $2,837 $2,924 $3,090 $3,141 $3,191 $3,232 $3,285 $3,336 $3,366 $3,371
Subtotal Spent $3,576 $7,714 $8,257 $8,344 $8,510 $8,561 $8,611 $8,652 $8,705 $8,756 $8,786 $8,791
on Operations

Additional Cash
Spent
Sales Tax, $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
VAT,
HST/GST Paid
Out
Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment of
Current
Borrowing
Other Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal
Repayment
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Principal
Repayment
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Purchase Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Assets
Purchase Long- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
term Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash $3,576 $7,714 $8,257 $8,344 $8,510 $8,561 $8,611 $8,652 $8,705 $8,756 $8,786 $8,791
Spent

Net Cash Flow ($3,576) ($4,324) ($3,816) ($1,775) ($1,309) ($731) ($272) $349 $943 $1,281 $1,306 $1,552
Cash Balance $15,224 $10,901 $7,085 $5,310 $4,000 $3,270 $2,998 $3,347 $4,290 $5,571 $6,877 $8,429

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Table: Balance Sheet

Pro Forma
Balance
Sheet
Month Month Month Month Month Month Month Month Month Month Month
Month 2 3 4 5 6 7 8 9 10 11 12
1
Assets Startin
g
Balanc
es

Current
Assets
Cash $18,80 $15,22 $10,901 $7,085 $5,310 $4,000 $3,270 $2,998 $3,347 $4,290 $5,571 $6,877 $8,429
0 4
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Assets
Total $18,80 $15,22 $10,901 $7,085 $5,310 $4,000 $3,270 $2,998 $3,347 $4,290 $5,571 $6,877 $8,429
Current 0 4
Assets

Long-term
Assets
Long-term $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300
Assets
Accumulat $0 $38 $76 $114 $152 $190 $228 $266 $304 $342 $380 $418 $456
ed
Depreciati
on
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Total $2,300 $2,262 $2,224 $2,186 $2,148 $2,110 $2,072 $2,034 $1,996 $1,958 $1,920 $1,882 $1,844
Long-term
Assets
Total $21,10 $17,48 $13,125 $9,271 $7,458 $6,110 $5,342 $5,032 $5,343 $6,248 $7,491 $8,759 $10,273
Assets 0 6

Liabilities Month Month Month Month Month Month Month Month Month Month Month
and Month 2 3 4 5 6 7 8 9 10 11 12
Capital 1

Current
Liabilities
Accounts $0 $2,199 $2,740 $2,821 $2,986 $3,034 $3,083 $3,122 $3,174 $3,224 $3,254 $3,258 $3,277
Payable
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Liabilities
Subtotal $0 $2,199 $2,740 $2,821 $2,986 $3,034 $3,083 $3,122 $3,174 $3,224 $3,254 $3,258 $3,277
Current
Liabilities

Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Total $0 $2,199 $2,740 $2,821 $2,986 $3,034 $3,083 $3,122 $3,174 $3,224 $3,254 $3,258 $3,277
Liabilities

Paid-in $22,00 $22,00 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000
Capital 0 0
Retained ($900) ($900) ($900) ($900) ($900) ($900) ($900) ($900) ($900) ($900) ($900) ($900) ($900)
Earnings

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Earnings $0 ($5,81 ($10,71 ($14,65 ($16,62 ($18,02 ($18,84 ($19,19 ($18,93 ($18,07 ($16,86 ($15,59 ($14,10
3) 5) 0) 8) 4) 1) 1) 1) 6) 2) 9) 4)
Total $21,10 $15,28 $10,385 $6,450 $4,472 $3,076 $2,259 $1,909 $2,169 $3,024 $4,238 $5,501 $6,996
Capital 0 7
Total $21,10 $17,48 $13,125 $9,271 $7,458 $6,110 $5,342 $5,032 $5,343 $6,248 $7,491 $8,759 $10,273
Liabilities 0 6
and
Capital

Net $21,10 $15,28 $10,385 $6,450 $4,472 $3,076 $2,259 $1,909 $2,169 $3,024 $4,238 $5,501 $6,996
Worth 0 7

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