Executive Summary

Recycled Riding Dreams will offer quality used motorcycles and motorcycle parts to a
growing market of motorcycling hobbyists. For the beginner, Recycled Riding Dreams offers
excellent value in a first bike that will not bust the customer's budget. For the experienced biker,
quality used parts will cut the cost of repairs and modifications by 50% to 75%.
Over the past ten years, biking has developed an entirely new customer base among baby boomer
men, ages 40 to 65. Last year, motorcycle sales for this age group were twice that of young men,
ages 18 to 25. In Aurora, motorcycle sales exceeded P6 million in 2008 and sales are predicted to
grow by 15% this year.
Aurora is a city of 650,000 residents with an average income of P15,000. The city
has seven motorcycle organizations and sponsors an annual cycling event as part of the founding
anniversary celebration.
Owner of Recycled Riding Dreams is one of most respected and best known motorcyclist
in Aurora.
Owners connection with the motorcycling community and the growing demand for
quality used motorcycles and motorcycle parts will make Recycled Riding Dreams one of the
most popular shops in the province.

HIGHLIGHTS
300,000
250,000
200,000

sales

150,000

Gross margin
Net profit

100,000
50,000
0
Year 1

year 2

Year 3

1.1 Objectives
The objectives of Recycled Riding Dreams are:
Capture the majority of the used motorcycle business in Aurora.
Offer our customers a superior service, at a low price.

1.2 Mission
The mission of Recycled Riding Dreams is to become the primary resource for used motorcycle parts in
Aurora.

1.3 Keys to Success

The keys to success for Recycled Riding Dreams are:
Customer referrals.
Exceeding the customer's expectation for quality, timeliness and price.

Company Summary
Recycled Riding Dreams will offer quality used motorcycles and motorcycle parts to a growing market of
motorcycling hobbyists. The shop will purchase used and damaged bikes as well as used motorcycle parts.

2.1

Company Ownership

Recycled Riding Dreams is owned by Jeorge Sudario.

2.2 Start-up Summary

Jeorge sudario will invest 55,000 in Recycled Riding Dreams. Brian will also secure a
20,000 loan. The initial inventory for Recycled Riding Dreams will be 45,000. The focus of this
inventory will be on engine and electrical parts. The source of these parts is motorcycle
hobbyists who sell the parts in order to purchase upgrade parts for their own motorcycles.
The following table and chart show projected initial start-up costs for Recycled Riding Dreams.

START-UP
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
Expenses

Asset

Investment

Loans

Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Insurance
Rent
Display Equipment
Expensed Equipment
Total Start-up Expenses

P1,000
200
500
1,300
3,000
5,000
11,000

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

P4,000
45,000
$0
15,000
64,000

Total Requirements

75,000

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

P11,000
64,000
75,000

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

60,000
4,000
0
4,000
64,000

Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)

$0
20,000

0
Other Current Liabilities (interestfree)
Total Liabilities

0
20,000

Capital
Planned Investment
Brian Jefferson
Other
Additional Investment Requirement
Total Planned Investment

55,000
0
0
55,000

Loss at Start-up (Start-up Expenses)

Total Capital

(11,000)
44,000

Total Capital and Liabilities

64,000

Total Funding

75,000

3. Products
Recycled Riding Dreams offers the following products:
Used Motorcycles: These cycles have been inspected and occasionally reconditioned in
order to offer the customer the best value.
Used Parts: These quality parts include engine parts, bodywork, gas tanks, electrical parts,
frame, and chassis wheels and brakes.
Repairs

Market Analysis Summary

Over the past ten years, biking has developed an entirely new customer base among baby
boomer men, ages 40 to 65. Last year, motorcycle sales for this age group was twice that of
young men, ages 18 to 25. These two groups represent 80% of motorcycle sales. InAurora,
motorcycle sales exceeded 6 million in 2008 and sales are predicted to grow by 10% this year.
The demographics suggest that there is a large market for used motorcycles and motorcycle
parts, especially among experienced bikers. This is particularly important because the
experienced customer will seek out a shop where the owner has a reputation for quality and
service in the motorcycle community.

4.1 Market Segmentation

Recycled Riding Dreams will focus on two customer groups:
Male baby boomers, ages 40 - 65.
Young men, ages 18 - 25.

Market Analysis
Year 1
Potential
Customers
Male Baby
Boomers
Young Men
Total

Year 2

Year 3

Year 4

Year 5

Growth
6%

CAGR
85,000

90,100

95,506 101,236 107,310

6.00%

5% 70,000 73,500 77,175 81,034 85,086

5.55% 155,000 163,600 172,681 182,270 192,396

5.00%
5.55%

Strategy and Implementation Summary

Excellent word of mouth among motorcycle hobbyists is the foundation of Recycled
Riding Dreams. The motorcycle community in Aurora is close and used by its members to locate
resources and services. Each satisfied customer of Recycled Riding Dreams will bring in more
business.

5.1 Competitive Edge

Jeorge Sudario, owner of Recycled Riding Dreams is one of the best known motorcyclist
in Maria Aurora.. He is a member of the largest motorcycle organization in the Province with
over 800 members. He has been a motorcycle hobbyist for 15 years and has built a reputation
for quality customizing of motorcycles. For the past five years, Recycled Riding Dreams'
competitive edge is owners visibility in the motorcycling community.

5.2 Sales Strategy

Recycled Riding Dreams will open with a Customization Show and Competition. During
the first month of operation, Recycled Riding Dreams will offer a 15% discount on all purchases
over P2000. Jeorge will also offer a standard 10% discount to members of the Provinces seven
motorcycle organizations.

5.2.1 Sales Forecast

The table and charts below show Recycled Riding Dreams projected sales forecast for three
years.

Sales Monthly
35,000
30,000
25,000
20,000
Used Motorcycle Parts

15,000

Used Motorcycle
10,000
5,000
0

Sales by Year
450,000
400,000
350,000
300,000
250,000

Used Motorcycle Parts

200,000

Used Motorcycle

150,000
100,000
50,000
0
Year 1

Year 2

Year 3

Sales Forecast
Year 1
Sales
Used Motorcycles
Used Motorcycle Parts
Total Sales
Direct Cost of Sales
Used Motorcycles
Used Motorcycle Parts
Subtotal Direct Cost of
Sales

Year 2

Year 3

P137,000 P142,000 P152,000

98,000 110,000 119,000
235,000 252,000 271,000
Year 1
62,500
45,000

Year 2
63,000
54,000

Year 3
69,000
58,000

P107,500 P117,000 P127,000

Management Summary
Jeorge Sudario will manage the daily operations of the shop.

6.1 Personnel Plan

Besides Jeorge Sudario, Recycled Riding Dreams will have one additional employee.
Personnel Plan
Jeorge Sudario
Staff Person
Total People
Total Payroll

Year 1 Year 2 Year 3

P36,000 P39,000 P42,000
33,600 35,000 37,000
2
2
2
69,600

74,000

79,000

Financial Plan
The following is the financial plan for Recycled Riding Dreams.

7.1 Break-even Analysis

The monthly break-even point is approximately P16,000.

BREAK- EVEN ANALYSIS

10000
8000
6000
4000
2000
0
-2000

3000

6000

9000 12000 15000 18000 21000 24000 27000 30000 33000

-4000
-6000
-8000
-10000

Break-even Analysis
Monthly Revenue Break-even

P16,638

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

46%
P9,027

7.2 Projected Profit and Loss

The following table and charts shows projected profit and loss for three years.

PROFIT MONTHLY
7000
6000
5000
4000
3000
2000
1000
0
-1000
-2000

Series 1
16000
14000
12000
10000
8000
6000
4000
2000
0
YEAR 1

YEAR 2

YEAR 3

Pro Forma Profit and Loss

Sales
Direct Cost of Sales

Year 1
P235,000
107,500

Year 2
P252,000
117,000

Year 3
P271,000
127,000

Other Production Expenses

Total Cost of Sales

0
P107,500

0
P117,000

0
P127,000

Gross Margin
Gross Margin %

P127,500
54.26%

P135,000
53.57%

P144,000
53.14%

Expenses
Payroll
Sales and Marketing and Other Expenses
Depreciation
Leased Equipment

P69,600
P6,000
P4,284
0

P74,000
p6,000
4,284
0

P79,000
P6,000
4,284
0

2,400
0

2,400
0

2,400
0

15,600
10,440
0

15,600
11,100
0

15,600
11,850
0

108,324

113,384

119,134

Profit Before Interest and Taxes

19,176

21,616

24,866

EBITDA
Interest Expense
Taxes Incurred

23,460
2,000
5,153

25,900
2,000
5,885

29,150
2,000
6,860

Net Profit
Net Profit/Sales

12,023
5.12%

13,731
5.45%

16,006
5.91%

Utilities
Insurance
Rent
Payroll Taxes
Other
Total Operating Expenses

7.3 Projected Cash Flow

The table and chart show the projected cash flow for three years.

40000
35000
30000
25000
20000

NET CASH FLOW

15000

CASH BALANCE

10000
5000
0
-5000

Pro Forma Cash Flow

Year 1

Year 2

Year 3

10

Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations

P94,000
116,820
210,820

P100,800
149,451
250,251

P108,400
160,645
269,045

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

0
0
0
0
0
0
0
210,820

0
0
0
0
0
0
0
250,251

0
0
0
0
0
0
0
269,045

Year 1

Year 2

Year 3

69,600
108,864
178,464

74,000
153,470
227,470

79,000
171,723
250,723

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out

Principal Repayment of Current Borrowing

Other Liabilities Principal Repayment

Long-term Liabilities Principal Repayment

0
0
0
178,464

0
0
0
227,470

0
0
0
250,723

32,356
36,356

22,780
59,137

18,322
77,459

Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations

Purchase Other Current Assets

Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance

7.4 Projected Balance Sheet

The table shows the projected balance sheet for three years.

Pro Forma Balance Sheet

Year 1

Year 2

Year 3

Current Assets
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets

36,356
24,180
10,550
0
71,086

59,137
25,929
11,482
0
96,548

77,459
27,884
12,464
0
117,806

Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets

15,000
4,284
10,716
81,802

15,000
8,568
6,432
102,980

15,000
12,852
2,148
119,954

Assets

11

Liabilities and Capital

Year 1

Year 2

Year 3

13,226
0
0
13,226

14,194
0
0
14,194

20,000
25,779

20,000
33,226

20,000
34,194

55,000
(11,000)
12,023
56,023

55,000
1,023
13,731
69,754

55,000
14,754
16,006
85,761

Total Liabilities and

Capital

81,802

102,980

119,954

Net Worth

56,023

69,754

85,761

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

5,779
0
0
5,779

Long-term Liabilities
Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial
Classification (SIC) code 5015, Motor Vehicle Parts Used, are shown for comparison.
Ratio Analysis
Year 1
0.00%

Year 2
7.23%

29.56%
12.90%
0.00%
86.90%
13.10%
100.00%

25.18%
11.15%
0.00%
93.75%
6.25%
100.00%

23.25%
10.39%
0.00%
98.21%
1.79%
100.00%

28.00%
38.90%
16.40%
83.30%
16.70%
100.00%

7.06%
24.45%
31.51%
68.49%

12.84%
19.42%
32.26%
67.74%

11.83%
16.67%
28.51%
71.49%

38.90%
12.30%
51.20%
48.80%

100.00%
54.26%
49.14%
2.55%
8.16%

100.00%
53.57%
48.12%
2.38%
8.58%

100.00%
53.14%
47.23%
2.21%
9.18%

100.00%
23.10%
14.00%
0.70%
2.00%

Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets

12.30
10.47
31.51%
30.66%
21.00%

7.30
6.43
32.26%
28.12%
19.05%

8.30
7.42
28.51%
26.66%
19.06%

2.16
0.96
51.20%
5.30%
10.90%

Additional Ratios
Net Profit Margin
Return on Equity

Year 1
5.12%
21.46%

Year 2
5.45%
19.69%

Year 3
5.91%
18.66%

n.a
n.a

5.83

5.83

5.83

n.a

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

Activity Ratios
Accounts Receivable Turnover

Year 3 Industry Profile

7.54%
12.20%

12

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

57
6.76
19.84
27
2.87

60
10.62
12.17
22
2.45

60
10.61
12.17
29
2.26

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

0.46
0.22

0.48
0.40

0.40
0.42

n.a
n.a

65,307
9.59

83,322
10.81

103,613
12.43

n.a
n.a

0.35
7%
6.29
4.19
0.00

0.41
13%
4.47
3.61
0.00

0.44
12%
5.46
3.16
0.00

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

Appendix
Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
Sales
Used
Motorcycles
Used
Motorcycle
Parts
Total Sales

0%
0%

Direct Cost of
Sales
Used
Motorcycles
Used
Motorcycle
Parts
Subtotal
Direct Cost of
Sales

9,000

Month
10

Month
11

Month
12

11,000

12,000

12,000

12,000

12,000

12,000

11,000

12,000

11,000

12,000

11,000

4,000

5,000

7,000

8,000

9,000

10,000

8,000

9,000

10,000

10,000

9,000

9,000

13,000

16,000

19,000

20,000

21,000

22,000

20,000

20,000

22,000

21,000

21,000

20,000

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9

Month
10

Month
11

Month
12

5,000

5,000

6,000

6,000

6,000

6,000

6,000

5,000

6,000

5,000

6,000

500

2,000

2,500

3,500

4,000

4,500

5,000

4,000

4,500

5,000

5,000

4,500

500

7,000

7,500

9,500

10,000

10,500

11,000

10,000

9,500

11,000

10,000

10,500

1,000

Personnel Plan
Month Month Month Month Month Month Month Month Month Month Month Month
1
2
3
4
5
6
7
8
9
10
11
12
Brian
Jefferson
Staff Person
Total People
Total Payroll

0% 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000

3,000 3,000 3,000 3,000

0% 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800
2
2
2
2
2
2
2
2
2
2
2
2
5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800

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

13

Plan
Month
Current
Interest
Rate
Longterm
Interest
Rate
Tax
Rate
Other

10

11

12

10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
0

Pro Forma Profit and Loss

Month Month
Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
2
3
13,000 16,000 19,000 20,000 21,000 22,000 20,000 20,000 22,000

Month 1
Sales
Direct Cost of
Sales
Other
Production
Expenses
Total Cost of
Sales
Gross Margin
Gross Margin
%

Insurance
Rent

Total
Operating
Expenses
Profit Before
Interest and
Taxes
EBITDA
Interest
Expense
Taxes
Incurred
Net Profit

7,000

7,500

9,500 10,000

10,500 11,000

10,000

9,500

11,000

10,000 10,500

1,000

6,000

8,500

9,500 10,000

10,500 11,000

10,000

10,500

11,000

11,000 10,500

19,000

5,800

5,800

5,800

5,800

500

500

500

500

357

Utilities

Other

9,500 10,000

11,000

1,000

7,500

9,500

10,000 10,500

7,000

10,000

Month
12
20,000

46.15% 53.13% 50.00% 50.00% 50.00% 50.00% 50.00% 52.50% 50.00% 52.38% 50.00% 95.00%

Expenses
Payroll
Sales and
Marketing
and Other
Expenses
Depreciation
Leased
Equipment

Payroll Taxes

10,500 11,000

Month Month
10
11
21,000 21,000

15%

357

357

5,800 5,800
500

357

5,800

5,800

5,800

5,800

5,800

5,800

$500

500

500

500

500

500

500

357

357

357

357

357

357

357

357

200

200

200

200

200

200

200

200

200

200

200

200

1,300 1,300 1,300 1,300

1,300 1,300
1,300
1,300
1,300
1,300 1,300
1,300
870
870
870
870
870
870
870
870
870
870
870
870
0

9,027

9,027

9,027

9,027

9,027

9,027

9,027

9,027

9,027

9,027

9,027

9,027

(3,027)

(527)

473

973

1,473

1,973

973

1,473

1,973

1,973

1,473

9,973

(2,670)

(170)

830

1,330

1,830

2,330

1,330

1,830

2,330

2,330

1,830

10,330

167

167

167

167

167

167

167

167

167

167

167

167

958)

(208)

92

242

392

542

242

392

542

542

392

2,942

(2,236)

(486)

214

564

914

1,264

564

914

1,264

1,264

914

6,864

14

Net
Profit/Sales

-17.20% -3.03% 1.13%

2.82%

4.35%

5.75%

2.82%

4.57%

5.75%

6.02%

4.35% 34.32%

Pro Forma Cash Flow

Month
Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
1

Month
10

Month
11

Month
12

8,400

8,400

8,000

Cash Received
Cash from
Operations
Cash Sales
Cash from
Receivables
Subtotal Cash
from Operations

5,200

6,400

7,600

8,000

260

7,860

9,660

5,200

6,660

15,460

17,660

Additional Cash
Received
Sales Tax, VAT,
0
HST/GST
0.00%
Received
0
New Current
Borrowing
New Other
0
Liabilities
(interest-free)
0
New Long-term
Liabilities
0
Sales of Other
Current Assets

8,400

8,800

8,000

8,000

8,800

11,420 12,020

12,620 13,160

12,000

12,040 13,180

12,600

19,820 20,820

20,620 21,160

20,800

20,440 21,580

20,600

Sales of Longterm Assets

New Investment
Received
Subtotal Cash
Received

Expenditures

5,200

15,460

17,660

19,820 20,820

20,620 21,160

20,800

Month
Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
1

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

6,660

20,440 21,580

20,600

Month
10

Month
12

Month
11

5,800
69

5,800
2,104

5,800
2,839

5,800
3,134

5,800 5,800
3,652 14,500

5,800 5,800
15,030 12,185

5,800
12,507

5,800 5,800
5,800
16,104 12,545 14,195

5,869

7,904

8,639

8,934

9,452 20,300

20,830 17,985

18,307

21,904 18,345

19,995

15

Purchase Other
Current Assets

Purchase Longterm Assets

Dividends
Subtotal Cash
Spent

5,869

7,904

8,639

Net Cash Flow

Cash Balance

(669)
3,331

(1,244)
2,087

6,821
8,909

8,934

9,452

20,300

20,830

17,985

18,307

21,904

18,345 19,995

8,726 10,368
17,635 28,003

520
28,523

(210)
28,313

3,175
31,487

2,493 (1,464)
33,981 32,517

3,235
605
35,752 36,356

Pro Forma Balance Sheet

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
Assets

4,000

3,331

2,087

8,909

17,635

28,003 28,523

28,313

31,487

33,981

32,517

35,752

36,356

0 $7,800

17,140

20,680

23,020

24,200 25,380

24,760

23,600

24,800

25,360

24,780

24,180

49,000 49,131

49,727

50,589

51,655 63,753

15,000 15,000

15,000

15,000

15,000

66,003

64,073

65,537

70,881

68,877

72,082

71,086

15,000 15,000

15,000

15,000

15,000

15,000

15,000

15,000

357

714

1,071

1,428

2,142

2,499

2,856

3,213

3,570

3,927

4,284

15,000 14,643

14,286

13,929

13,572

13,215 12,858

12,501

12,144

11,787

11,430

11,073

10,716

64,000 63,774

64,013

64,518

65,227

76,968 78,861

76,574

77,681

82,668

80,307

83,155

81,802

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9

Month
10

Month
11

Month
12

12,063

13,996

5,779

Liabilities
and Capital

Paid-in
Capital

Month
12

45,000 38,000 30,500 21,000 11,000 11,550 12,100 11,000 10,450 12,100 11,000 11,550 10,550
0
0
0
0
0
0
0
0
0
0
0
0
0

Long-term
Assets
Long-term
Assets
Accumulated
Depreciation
Total Longterm Assets
Total Assets

Long-term
Liabilities
Total
Liabilities

Month
11

Starting
Balances

Current
Assets
Cash
Accounts
Receivable
Inventory
Other
Current
Assets
Total
Current
Assets

Current
Liabilities
Accounts
Payable
Current
Borrowing
Other
Current
Liabilities
Subtotal
Current
Liabilities

Month
10

2,009

2,734

3,024

1,785

3,169

13,996 14,624

11,773

11,966

15,688

2,009

2,734

3,024 3,169

20,000

20,000

20,000

20,000

20,000

20,000

22,009

22,734

23,024

55,000

55,000

55,000

55,000

13,996

14,624

11,773

11,966 $15,688

12,063

13,996

5,779

20,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

23,169

33,996

34,624 31,773

31,966

35,688

32,063

33,996

25,779

55,000

55,000

55,000

55,000

55,000

55,000

55,000

55,000

55,000

16

Retained
(11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000)
Earnings
Earnings
0 (2,236) (2,721) (2,507) (1,942) (1,028)
237
801
1,715
2,980
4,244
5,159 12,023
Total Capital 44,000 41,764 41,279 41,493 42,058 42,972 44,237 44,801 45,715 46,980 48,244 49,159 56,023
Total
Liabilities
64,000 63,774 64,013 64,518 65,227 76,968 78,861 76,574 77,681 82,668 80,307 83,155 81,802
and Capital
Net Worth

44,000

41,764

41,279 41,493

42,058

42,972

44,237

44,801

45,715

46,980

48,244

49,159

56,023

17