A bike shop business plan in Eugene, Oregon....
CONFIDENTIAL
GARRETT'S BIKE SHOP TOP-QUALITY GEAR, REPAIR, AND ADVICE FROM YOUR LOCAL CYCLING FANATICS
BUSINESS PLAN Prepared January 2016
CONTACT INFORMATION Garrett McKenzie
[email protected] www.universitycycleworks.com
488 East 11th Avenue, Suite 220 Eugene, OR 97401, USA (555) 555-5555
GARRETT'S BIKE SHOP - XERO
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Executive Summary Products 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 GoreTex. 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.
Who We Are University Cycle Works is an established bicycle specialty store, offering retail sales of new bicycles, parts and accessories, clothing, and maintenance and repair service. It is located in a heavily trafficked, university-focused area. University Cycle Works is a subchapter S corporation, and is currently owned by Han Delbar. Hubert Wheeler, current assistant manager of University Cycle Works, is purchasing University Cycle Works from Delbar, acquiring existing inventory, and assuming outstanding accounts payable and dating program debts to suppliers, location lease, customer base and information, and University Cycle Works' business name and goodwill. The business will continue to be a subchapter S corporation. Exchange of ownership will occur on July 1, of this year. Wheeler has been the assistant manager of University Cycle Works for five years, with an additional seven years of bicycle industry retail sales and service experience. He first began investigating the ownership of a bike business two years ago, however, the local Metroburg market seemed saturated with shops. Realizing that a more practical option would be to buy an existing shop, he approached his current boss. The result of two years of negotiations will be the sale of University Cycle Works to Wheeler, taking
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effect July 1st. The goal will be a seamless transfer of ownership, with staff, bike lines, location, and operations unchanged.
Who We Sell To The primary market for University Cycle Works 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.
Financial Summary 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.
Building Priorities
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Company Overview Company Overview University Cycle Works is a subchapter S corporation, and is currently owned by Han Delbar. Hubert Wheeler, current assistant manager of University Cycle Works, is purchasing University Cycle Works from Delbar, acquiring existing inventory, and assuming outstanding accounts payable and dating program debts to suppliers, location lease, customer base and information, and University Cycle Works' 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.
Management Team The current assistant manager, Hubert Wheeler, is buying University Cycle Works, 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 University Cycle Works. 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.
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The current owner, Han Delbar will be available as a resource. Additional resources are: •
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.
Mission Statement Company History
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Products and Services Products and Services Retail Sales 1.
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.
2.
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. It is not possible to carry every possible accessory, so we try to carefully chose those which will be most useful or desired by our target markets. When we receive special requests for a new item, we'll often order several to test the local demand, and if adequate, will add it to our regular stock.
3.
Clothing. Clothing appeals to all cyclists, whether it is a logo emblazoned T-shirt or a piece of waterproof rainwear. At University Cycle Works, we rotate our clothing based on the season. Just before the autumn rains we stock jackets and Gore-Tex. Come winter we offer helmet covers and liners, insulated jerseys and pants, gloves, and shoe covers. And when spring arrives and the first crocus appears through the melting snow, we start displaying summer jerseys, and racing shorts.
4.
Parts. Parts generally refers to pieces or materials necessary to the basic functioning of the bicycle. Generally, parts are installed during service [see below] and are an additional charge beyond the service fees. Some, like cranksets, pedals, tires, derailleurs or brakes, are both integral parts and upgrade accessories. Others, such as headsets, bottom brackets, spokes, chains, cables, and cable housings are strictly maintenance, though some will be sold to cyclists who prefer to work on their bikes themselves.
Service University Cycle Works 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.
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•
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.
Competitors Market Problem: No full-service bike shop focused on servicing the university market. Setting aside the discount department stores, University Cycle Works has the following direct competitors. •
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.
None of these competitors is within two miles of the university, and so, for the present, we have first access to our chosen market segments. One of the local shops has chosen to target the burgeoning young road racer segment, another is focusing on recumbents and folding travel cycles. 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.
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Products and Services Market Needs 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.
Market Overview The predominant market segment for University Cycle Works is the university student population. We also cater to the university staff, local business employees, and, along with every other bicycle shop in town, the greater Metroburg population. In part the local market is driven by the lack of parking. Bicycle transportation is more economical, as well as time and space efficient in the university neighborhood. Part of the market is price constrained and another part is hooked on the latest fad, be it frame style, number of gears, or portrayed image. As long as new students arrive each year, our market segment growth is assured.
Key Customers The university students are our main target market. 1.
They are mostly undergraduates, so there is a 25% annual turnover.
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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.
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University employees are another prime market segment. 1.
Small growth and turnover, but on the whole, the group is pretty stable.
2.
Are willing to commute by bicycle to work.
3.
They want a stable, comfortable bike and a full range of accessories.
4.
When their bikes need service and maintenance, local drop off/pickup convenience is important.
5.
They have families who ride bicycles also, and will patronize a shop that gives personal service.
Greater Metroburg population. This segment has a choice of going to any bike shop in the area, and will probably choose a shop located closer to their home. They are not the main target market segment of University Cycle Works, and we market to them casually, only as a collateral effect to our university-oriented efforts.
Market Trends Trends in the bicycle industry usually last for a time. Some of them have been: •
1960s - Big rush on 10 speeds.
•
1970s - Touring bikes became popular.
•
1980s and 1990s - Huge growth of mountain bikes
•
1990s - The rumored but exaggerated death of "road bikes" and the unfulfilled prophesy of a boom in the tandem market.
•
2000s - Popularity of retro 'cruisers.'
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Market Growth The bulk of University Cycle Works' 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.
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Financial Plan Revenue Forecast Revenue by Month
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Revenue Forecast Table FY2014
FY2015
FY2016
New Bikes
$232,000
$250,000
$275,000
Accessories and Parts
$143,000
$172,500
$198,375
$68,000
$78,200
$89,930
$1,200
$1,380
$1,587
$36,000
$36,000
$36,000
$480,200
$538,080
$600,892
$71,500
$86,250
$99,188
$157,760
$170,000
$187,000
$23,800
$27,370
$31,476
Total Direct Cost
$253,060
$283,620
$317,664
Gross Margin
$227,140
$254,460
$283,228
47%
47%
47%
Revenue
Clothing University Patrol Service Contract Repair and Service Total Revenue Direct Cost Accessories and Parts New Bikes Clothing University Patrol Service Contract Repair and Service
Gross Margin %
About the Revenue Forecast 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.
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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.
Personnel Plan Personnel Table FY2014
FY2015
FY2016
Valerie Pede
$32,000
$32,000
$32,000
Dee Ray
$23,400
$24,570
$25,799
Jean-Baptiste Kape
$19,800
$20,790
$21,830
$3,000
$12,000
$12,000
$78,200
$89,360
$91,629
Grocery Man Total
About the Personnel Plan The staff will consist of Hubert Wheeler, the new owner, Valerie Pede, and two other full-time employees Dee Ray, and Jean-Baptiste Kape.
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To meet the need for additional help during the year, University Cycle Works hires two to four part-time employees from the university population. We look for people who are enthusiastic about cycling, and who have a mechanical aptitude. Some of these folks have worked for us throughout their entire college sojourn. Their hours vary depending on the store's needs and their class schedules.
Budget Budget Table FY2014
FY2015
FY2016
Salary
$78,200
$89,360
$91,629
Employee Related Expenses
$19,550
$22,340
$22,907
Insurance
$9,604
$10,762
$12,018
Leased Equipment
$1,800
$1,800
$1,800
$54,000
$54,000
$54,000
$3,600
$3,600
$3,600
$18,000
$18,000
$18,000
$184,754
$199,862
$203,954
Operating Expenses
Advertising
Rent Utilities Rent Office Expense Total Operating Expenses
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Expenses by Month
About the Budget Our salary totals, employee benefits and monthly expense projections are included in the Budget. A rent deposit was made to the landlord as a security during the transfer of the business to the new owner, in order to keep the current lease agreement. If, at the end of the first year, the business is still solvent, the deposit will be applied to the twelfth month's rent. Startup Costs Our estimated starting expenses total $13,300. They include, legal and accounting costs to transfer ownership of the business, stationery, etc., promotional materials, insurance, and the down payment toward the purchase of the business.
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Loans and Investments Loans and Investments Table FY2014 Loan Loan at 7% interest for 60 mos. Loan Loan at 7% interest for 60 mos. Total Amount Received
FY2015
FY2016
$50,000 $90,000 $90,000
$50,000
Sources of Funds The current owner, Han Delbar, has sold the business to Hubert Wheeler for $140,000. The value of the existing company, its reputation, assumption of the business name, existing client base, etc. is recognized as part of the purchase. It appears as a start-up expense in the following table as Down Payment. The balance appears as a long-term liability. Wheeler is investing some of his own money, partially a home equity loan, in the company. An additional amount is being invested, as short-term interest free loans, by family members. This plan calls for these loans to be repaid in the first year.
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Cash Flow Assumptions Cash Flow Assumptions
Cash Inflow % of Sales on Credit
51%
Avg Collection Period (Days)
15
Cash Outflow % of Purchases on Credit
50%
Avg Payment Delay (Days)
30
Inventory Months to Keep on Hand Minimum Inventory Purchase
3 $5,000
About the Cash Flow Assumptions We have accounts payable set at 45 days. We also keep approximately one month's worth of inventory on hand, with a minimum purchase of $1,000, on average. We had a starting inventory balance for this plan at $17,000 from the previous owner, which carried forward with the business transfer. We do not sell on credit.
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Financial Statements Profit and Loss Statement Profit and Loss Statement FY2014
FY2015
FY2016
Revenue
$480,200
$538,080
$600,892
Direct Costs
$253,060
$283,620
$317,664
Gross Margin
$227,140
$254,460
$283,228
47%
47%
47%
Salary
$78,200
$89,360
$91,629
Employee Related Expenses
$19,550
$22,340
$22,907
Insurance
$9,604
$10,762
$12,018
Leased Equipment
$1,800
$1,800
$1,800
$54,000
$54,000
$54,000
$3,600
$3,600
$3,600
$18,000
$18,000
$18,000
$184,754
$199,862
$203,954
$42,386
$54,598
$79,274
$5,364
$6,994
$6,391
$13,814
$15,472
$15,471
$3,481
$4,819
$8,610
$460,473
$510,767
$552,090
$19,727
$27,313
$48,802
4%
5%
8%
Gross Margin % Operating Expenses
Advertising
Rent Utilities Rent Office Expense Total Operating Expenses Operating Income Interest Incurred Depreciation and Amortization Income Taxes Total Expenses Net Profit Net Profit / Sales
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Gross Margin by Year
Net Profit (or Loss) by Year
About the Profit and Loss Statement In negotiating the smooth transition in ownership, the landlord agreed to continue the current lease unchanged. As surety, one month's rent was required as a deposit at the time of sale. This is shown in the
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starting expenses. Further, the landlord agreed that if, after 11 months operation the new company was solvent and current in lease payments, that the deposit could be applied to the twelfth month's rent. The mid-summer months of July and August are slow months when a large part of the university population is gone on summer break. The mid-winter months are traditionally loss months. The weather is the most inclement and discretionary income is at its lowest after the holiday binges. However, we try to keep our entire staff on board to work on our own inventory, store refurbishing, and staff training.
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Balance Sheet Balance Sheet As of Period's End
Starting Balances
FY2014
FY2015
FY2016
$0
$23,963
$88,222
$128,585
$11,838
$11,850
$13,220
$17,000
$70,905
$79,416
$79,419
Total Current Assets
$17,000
$106,706
$179,488
$221,224
Long-Term Assets
$61,500
$77,700
$77,700
$77,700
($13,814)
($29,286)
($44,757)
Cash Accounts Receivable Inventory Other Current Assets
Accumulated Depreciation Total Long-Term Assets
$61,500
$63,886
$48,414
$32,943
Total Assets
$78,500
$170,592
$227,902
$254,167
Accounts Payable
$27,800
$15,486
$16,901
$16,952
Income Taxes Payable
$3,481
$4,819
$8,610
Sales Taxes Payable
$5,440
$5,000
$5,500
$16,609
$26,873
$28,817
$41,016
$53,593
$59,879
$59,153
$76,579
$47,762
Short-Term Debt Prepaid Revenue Total Current Liabilities
$27,800
Long-Term Debt Total Liabilities
$27,800
$100,169
$130,172
$107,641
Paid-in Capital
$25,000
$25,000
$25,000
$25,000
Retained Earnings
$25,700
$25,700
$45,423
$72,730
$19,723
$27,307
$48,796
Earnings Total Owner's Equity
$50,700
$70,423
$97,730
$146,526
Total Liabilities & Equity
$78,500
$170,592
$227,902
$254,167
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About the Balance Sheet Our goal is to repay the loans from our family within the first year, and we project paying Han Delbar his entire purchase price within five years. Other balance sheet information is shown in the table.
Cash Flow Statement Cash Flow Statement FY2014
FY2015
FY2016
Net Profit
$19,727
$27,313
$48,802
Depreciation and Amortization
$13,814
$15,472
$15,471
Change in Accounts Receivable
($11,840)
($11)
($1,368)
Change in Inventory
($53,905)
($8,511)
($3)
Change in Accounts Payable
($12,319)
$1,411
$51
Change in Income Tax Payable
$3,481
$1,338
$3,791
Change in Sales Tax Payable
$5,440
($440)
$500
($35,602)
$36,572
$67,244
Net Cash Flow from Operations
Change in Prepaid Revenue Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold
($16,200)
Investments Received Change in Long-Term Debt
$59,153
$17,426
($28,817)
Change in Short-Term Debt
$16,609
$10,264
$1,944
$59,562
$27,690
($26,873)
$3
$23,960
$88,214
Net Change in Cash
$23,960
$64,262
$40,371
Cash at End of Period
$23,963
$88,222
$128,585
Dividends & Distributions Net Cash Flow from Investing & Financing Cash at Beginning of Period
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Cash Flow by Month
Cash Flow by Year
About the Cash Flow Statement The cash flow reflects the seasonality of bicycle sales and the varying payment programs. At times, the business is inventory heavy, stocking up for the beginning of school rush, or specific sales. At other times,
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23
GARRETT'S BIKE SHOP - XERO
there is negative cash flow as long-term accounts payable, net 90, net 60 payments coincide with regular net 30 invoices.
Starting Balances Assets Cash Accounts Receivable Inventory
$17,000
Long-Term Assets
$61,500
Accumulated Depreciation
Liabilities Accounts Payable
$27,800
Corporate Taxes Payable Sales Taxes Payable Short-Term Debt Long-Term Debt
Capital Paid-In Capital
$25,000
Retained Earnings
$25,700
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24
GARRETT'S BIKE SHOP - XERO
Appendix Revenue Forecast Revenue Forecast Table (With Monthly Detail) FY2014
Oct '13
Nov '13
Dec '13
Jan '14
Feb '14
Mar '14
Apr '14
May '14
Jun '14
Jul '14
Aug '14
Sep '14
New Bikes
$17,000
$14,000
$19,000
$18,000
$18,000
$20,000
$18,000
$19,000
$21,000
$22,000
$23,000
$23,000
Accessories and Parts
$11,000
$12,500
$14,000
$11,000
$10,000
$15,000
$9,500
$8,000
$13,000
$15,000
$11,000
$13,000
$3,500
$3,500
$4,500
$6,500
$10,500
$7,500
$4,500
$3,500
$4,500
$6,500
$7,500
$5,500
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$34,600
$33,100
$40,600
$38,600
$41,600
$45,600
$35,100
$33,600
$41,600
$46,600
$44,600
$44,600
$5,500
$6,250
$7,000
$5,500
$5,000
$7,500
$4,750
$4,000
$6,500
$7,500
$5,500
$6,500
$11,560
$9,520
$12,920
$12,240
$12,240
$13,600
$12,240
$12,920
$14,280
$14,960
$15,640
$15,640
$1,225
$1,225
$1,575
$2,275
$3,675
$2,625
$1,575
$1,225
$1,575
$2,275
$2,625
$1,925
$18,285
$16,995
$21,495
$20,015
$20,915
$23,725
$18,565
$18,145
$22,355
$24,735
$23,765
$24,065
$16,315
$16,105
$19,105
$18,585
$20,685
$21,875
$16,535
$15,455
$19,245
$21,865
$20,835
$20,535
47%
49%
47%
48%
50%
48%
47%
46%
46%
47%
47%
46%
Revenue
Clothing University Patrol Service Contract Repair and Service
Total Revenue Direct Cost Accessories and Parts New Bikes Clothing University Patrol Service Contract Repair and Service
Total Direct Cost Gross Margin
Gross Margin %
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25
GARRETT'S BIKE SHOP - XERO
FY2015
Oct '14
Nov '14
Dec '14
Jan '15
Feb '15
Mar '15
Apr '15
May '15
Jun '15
Jul '15
Aug '15
Sep '15
New Bikes
$20,833
$20,833
$20,833
$20,833
$20,833
$20,833
$20,833
$20,833
$20,834
$20,834
$20,834
$20,834
Accessories and Parts
$14,375
$14,375
$14,375
$14,375
$14,375
$14,375
$14,375
$14,375
$14,375
$14,375
$14,375
$14,375
$6,516
$6,516
$6,516
$6,516
$6,517
$6,517
$6,517
$6,517
$6,517
$6,517
$6,517
$6,517
$115
$115
$115
$115
$115
$115
$115
$115
$115
$115
$115
$115
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$44,839
$44,839
$44,839
$44,839
$44,840
$44,840
$44,840
$44,840
$44,841
$44,841
$44,841
$44,841
$7,188
$7,188
$7,188
$7,188
$7,188
$7,188
$7,188
$7,188
$7,188
$7,188
$7,188
$7,188
$14,166
$14,166
$14,166
$14,166
$14,166
$14,166
$14,166
$14,166
$14,167
$14,167
$14,167
$14,167
$2,281
$2,281
$2,281
$2,281
$2,281
$2,281
$2,281
$2,281
$2,281
$2,281
$2,281
$2,281
$23,635
$23,635
$23,635
$23,635
$23,635
$23,635
$23,635
$23,635
$23,636
$23,636
$23,636
$23,636
$21,204
$21,204
$21,204
$21,204
$21,205
$21,205
$21,205
$21,205
$21,205
$21,205
$21,205
$21,205
47%
47%
47%
47%
47%
47%
47%
47%
47%
47%
47%
47%
Revenue
Clothing University Patrol Service Contract Repair and Service
Total Revenue Direct Cost Accessories and Parts New Bikes Clothing University Patrol Service Contract Repair and Service
Total Direct Cost Gross Margin
Gross Margin %
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26
GARRETT'S BIKE SHOP - XERO
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
New Bikes
$22,916
$22,916
$22,916
$22,916
$22,917
$22,917
$22,917
$22,917
$22,917
$22,917
$22,917
$22,917
Accessories and Parts
$16,531
$16,531
$16,531
$16,531
$16,531
$16,531
$16,531
$16,531
$16,531
$16,532
$16,532
$16,532
$7,494
$7,494
$7,494
$7,494
$7,494
$7,494
$7,494
$7,494
$7,494
$7,494
$7,495
$7,495
$132
$132
$132
$132
$132
$132
$132
$132
$132
$133
$133
$133
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$50,073
$50,073
$50,073
$50,073
$50,074
$50,074
$50,074
$50,074
$50,074
$50,076
$50,077
$50,077
$8,266
$8,266
$8,266
$8,266
$8,266
$8,266
$8,266
$8,266
$8,266
$8,266
$8,266
$8,266
$15,583
$15,583
$15,583
$15,583
$15,584
$15,584
$15,584
$15,584
$15,584
$15,584
$15,584
$15,584
$2,623
$2,623
$2,623
$2,623
$2,623
$2,623
$2,623
$2,623
$2,623
$2,623
$2,623
$2,623
$26,472
$26,472
$26,472
$26,472
$26,473
$26,473
$26,473
$26,473
$26,473
$26,473
$26,473
$26,473
$23,601
$23,601
$23,601
$23,601
$23,601
$23,601
$23,601
$23,601
$23,601
$23,603
$23,604
$23,604
47%
47%
47%
47%
47%
47%
47%
47%
47%
47%
47%
47%
Revenue
Clothing University Patrol Service Contract Repair and Service
Total Revenue Direct Cost Accessories and Parts New Bikes Clothing University Patrol Service Contract Repair and Service
Total Direct Cost Gross Margin
Gross Margin %
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27
GARRETT'S BIKE SHOP - XERO
FY2014
FY2015
FY2016
New Bikes
$232,000
$250,000
$275,000
Accessories and Parts
$143,000
$172,500
$198,375
$68,000
$78,200
$89,930
$1,200
$1,380
$1,587
$36,000
$36,000
$36,000
$480,200
$538,080
$600,892
Revenue
Clothing University Patrol Service Contract Repair and Service
Total Revenue Direct Cost Accessories and Parts New Bikes Clothing
$71,500
$86,250
$99,188
$157,760
$170,000
$187,000
$23,800
$27,370
$31,476
$253,060
$283,620
$317,664
$227,140
$254,460
$283,228
47%
47%
47%
University Patrol Service Contract Repair and Service
Total Direct Cost Gross Margin
Gross Margin %
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28
GARRETT'S BIKE SHOP - XERO
Personnel Plan Personnel Table (With Monthly Detail) FY2014
Oct '13
Nov '13
Dec '13
Jan '14
Feb '14
Mar '14
Apr '14
May '14
Jun '14
Jul '14
Aug '14
Sep '14
Valerie Pede
$2,666
$2,666
$2,666
$2,666
$2,667
$2,667
$2,667
$2,667
$2,667
$2,667
$2,667
$2,667
Dee Ray
$1,950
$1,950
$1,950
$1,950
$1,950
$1,950
$1,950
$1,950
$1,950
$1,950
$1,950
$1,950
Jean-Baptiste Kape
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,000
$1,000
$1,000
Total
$6,266
$6,266
$6,266
$6,266
$6,267
$6,267
$6,267
$6,267
$6,267
$7,267
$7,267
$7,267
FY2015
Grocery Man
Oct '14
Nov '14
Dec '14
Jan '15
Feb '15
Mar '15
Apr '15
May '15
Jun '15
Jul '15
Aug '15
Sep '15
Valerie Pede
$2,666
$2,666
$2,666
$2,666
$2,667
$2,667
$2,667
$2,667
$2,667
$2,667
$2,667
$2,667
Dee Ray
$2,047
$2,047
$2,047
$2,047
$2,047
$2,047
$2,048
$2,048
$2,048
$2,048
$2,048
$2,048
Jean-Baptiste Kape
$1,732
$1,732
$1,732
$1,732
$1,732
$1,732
$1,733
$1,733
$1,733
$1,733
$1,733
$1,733
Grocery Man
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$7,445
$7,445
$7,445
$7,445
$7,446
$7,446
$7,448
$7,448
$7,448
$7,448
$7,448
$7,448
Total
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29
GARRETT'S BIKE SHOP - XERO
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
Valerie Pede
$2,666
$2,666
$2,666
$2,666
$2,667
$2,667
$2,667
$2,667
$2,667
$2,667
$2,667
$2,667
Dee Ray
$2,149
$2,150
$2,150
$2,150
$2,150
$2,150
$2,150
$2,150
$2,150
$2,150
$2,150
$2,150
Jean-Baptiste Kape
$1,819
$1,819
$1,819
$1,819
$1,819
$1,819
$1,819
$1,819
$1,819
$1,819
$1,820
$1,820
Grocery Man
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$7,634
$7,635
$7,635
$7,635
$7,636
$7,636
$7,636
$7,636
$7,636
$7,636
$7,637
$7,637
Total
FY2014
FY2015
FY2016
Valerie Pede
$32,000
$32,000
$32,000
Dee Ray
$23,400
$24,570
$25,799
Jean-Baptiste Kape
$19,800
$20,790
$21,830
$3,000
$12,000
$12,000
$78,200
$89,360
$91,629
Grocery Man
Total
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30
GARRETT'S BIKE SHOP - XERO
Budget Budget Table (With Monthly Detail) FY2014
Oct '13
Nov '13
Dec '13
Jan '14
Feb '14
Mar '14
Apr '14
May '14
Jun '14
Jul '14
Aug '14
Sep '14
Salary
$6,266
$6,266
$6,266
$6,266
$6,267
$6,267
$6,267
$6,267
$6,267
$7,267
$7,267
$7,267
Employee Related Expenses
$1,567
$1,567
$1,567
$1,567
$1,567
$1,567
$1,567
$1,567
$1,567
$1,817
$1,817
$1,817
Insurance
$692
$662
$812
$772
$832
$912
$702
$672
$832
$932
$892
$892
Leased Equipment
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
Operating Expenses
Advertising
Rent Utilities Rent
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$14,975
$14,945
$15,095
$15,055
$15,116
$15,196
$14,986
$14,956
$15,116
$16,466
$16,426
$16,426
Office Expense
Total Operating Expenses
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31
GARRETT'S BIKE SHOP - XERO
FY2015
Oct '14
Nov '14
Dec '14
Jan '15
Feb '15
Mar '15
Apr '15
May '15
Jun '15
Jul '15
Aug '15
Sep '15
Salary
$7,445
$7,445
$7,445
$7,445
$7,446
$7,446
$7,448
$7,448
$7,448
$7,448
$7,448
$7,448
Employee Related Expenses
$1,861
$1,861
$1,861
$1,861
$1,862
$1,862
$1,862
$1,862
$1,862
$1,862
$1,862
$1,862
Insurance
$897
$897
$897
$897
$897
$897
$897
$897
$897
$897
$897
$897
Leased Equipment
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$16,653
$16,653
$16,653
$16,653
$16,655
$16,655
$16,657
$16,657
$16,657
$16,657
$16,657
$16,657
Operating Expenses
Advertising
Rent Utilities Rent Office Expense
Total Operating Expenses
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32
GARRETT'S BIKE SHOP - XERO
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
Salary
$7,634
$7,635
$7,635
$7,635
$7,636
$7,636
$7,636
$7,636
$7,636
$7,636
$7,637
$7,637
Employee Related Expenses
$1,909
$1,909
$1,909
$1,909
$1,909
$1,909
$1,909
$1,909
$1,909
$1,909
$1,909
$1,909
$1,001
$1,001
$1,001
$1,001
$1,001
$1,001
$1,001
$1,001
$1,001
$1,002
$1,002
$1,002
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$16,994
$16,995
$16,995
$16,995
$16,996
$16,996
$16,996
$16,996
$16,996
$16,997
$16,998
$16,998
Operating Expenses
Advertising Insurance Leased Equipment Rent Utilities Rent Office Expense
Total Operating Expenses
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33
GARRETT'S BIKE SHOP - XERO
FY2014
FY2015
FY2016
Salary
$78,200
$89,360
$91,629
Employee Related Expenses
$19,550
$22,340
$22,907
Insurance
$9,604
$10,762
$12,018
Leased Equipment
$1,800
$1,800
$1,800
$54,000
$54,000
$54,000
$3,600
$3,600
$3,600
$18,000
$18,000
$18,000
$184,754
$199,862
$203,954
Operating Expenses
Advertising
Rent Utilities Rent Office Expense
Total Operating Expenses
Loans and Investments Loans and Investments Table (With Monthly Detail) FY2014
Oct '13
Nov '13
Dec '13
Jan '14
Feb '14
Mar '14
Apr '14
May '14
Jun '14
Jul '14
Aug '14
Sep '14
Loan Loan at 7% interest for 60 mos. Loan Loan at 7% interest for 60 mos.
Total Amount Received
$90,000
$90,000
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34
GARRETT'S BIKE SHOP - XERO
FY2015
Oct '14
Nov '14
Dec '14
Loan Loan at 7% interest for 60 mos.
Jan '15
Feb '15
Mar '15
Apr '15
May '15
Jun '15
Jul '15
Aug '15
Sep '15
Feb '16
Mar '16
Apr '16
May '16
Jun '16
Jul '16
Aug '16
Sep '16
$50,000
Loan Loan at 7% interest for 60 mos.
Total Amount Received
FY2016
$50,000
Oct '15
Nov '15
Dec '15
Jan '16
Loan Loan at 7% interest for 60 mos. Loan Loan at 7% interest for 60 mos.
Total Amount Received
FY2014 Loan Loan at 7% interest for 60 mos. Loan Loan at 7% interest for 60 mos.
Total Amount Received
FY2015
FY2016
$50,000 $90,000
$90,000
$50,000
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35
GARRETT'S BIKE SHOP - XERO
Profit and Loss Statement Profit and Loss Statement (With Monthly Detail) FY2014
Oct '13
Nov '13
Dec '13
Jan '14
Feb '14
Mar '14
Apr '14
May '14
Jun '14
Jul '14
Aug '14
Sep '14
Revenue
$34,600
$33,100
$40,600
$38,600
$41,600
$45,600
$35,100
$33,600
$41,600
$46,600
$44,600
$44,600
Direct Costs
$18,285
$16,995
$21,495
$20,015
$20,915
$23,725
$18,565
$18,145
$22,355
$24,735
$23,765
$24,065
$16,315
$16,105
$19,105
$18,585
$20,685
$21,875
$16,535
$15,455
$19,245
$21,865
$20,835
$20,535
47%
49%
47%
48%
50%
48%
47%
46%
46%
47%
47%
46%
Salary
$6,266
$6,266
$6,266
$6,266
$6,267
$6,267
$6,267
$6,267
$6,267
$7,267
$7,267
$7,267
Employee Related Expenses
$1,567
$1,567
$1,567
$1,567
$1,567
$1,567
$1,567
$1,567
$1,567
$1,817
$1,817
$1,817
Insurance
$692
$662
$812
$772
$832
$912
$702
$672
$832
$932
$892
$892
Leased Equipment
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
Total Operating Expenses
$14,975
$14,945
$15,095
$15,055
$15,116
$15,196
$14,986
$14,956
$15,116
$16,466
$16,426
$16,426
Operating Income
$1,340
$1,160
$4,010
$3,530
$5,569
$6,679
$1,549
$499
$4,129
$5,399
$4,409
$4,109
$525
$518
$510
$503
$495
$488
$480
$473
$465
$457
$450
Gross Margin
Gross Margin % Operating Expenses
Advertising
Rent Utilities Rent Office Expense
Interest Incurred
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36
GARRETT'S BIKE SHOP - XERO
Depreciation and Amortization
$1,025
$1,025
$1,025
$1,025
$1,025
$1,025
$1,275
$1,275
$1,275
$1,275
$1,275
$1,289
$47
($47)
$359
$299
$606
$774
($32)
($188)
$357
$549
$401
$356
Total Expenses
$34,332
$33,443
$38,492
$36,904
$38,165
$41,215
$35,282
$34,668
$39,576
$43,490
$42,324
$42,586
Net Profit
$268
($343)
$2,108
$1,696
$3,435
$4,385
($182)
($1,068)
$2,024
$3,110
$2,276
$2,014
1%
(1%)
5%
4%
8%
10%
(1%)
(3%)
5%
7%
5%
5%
Income Taxes
Net Profit / Sales
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37
GARRETT'S BIKE SHOP - XERO
FY2015
Oct '14
Nov '14
Dec '14
Jan '15
Feb '15
Mar '15
Apr '15
May '15
Jun '15
Jul '15
Aug '15
Sep '15
Revenue
$44,839
$44,839
$44,839
$44,839
$44,840
$44,840
$44,840
$44,840
$44,841
$44,841
$44,841
$44,841
Direct Costs
$23,635
$23,635
$23,635
$23,635
$23,635
$23,635
$23,635
$23,635
$23,636
$23,636
$23,636
$23,636
$21,204
$21,204
$21,204
$21,204
$21,205
$21,205
$21,205
$21,205
$21,205
$21,205
$21,205
$21,205
47%
47%
47%
47%
47%
47%
47%
47%
47%
47%
47%
47%
Salary
$7,445
$7,445
$7,445
$7,445
$7,446
$7,446
$7,448
$7,448
$7,448
$7,448
$7,448
$7,448
Employee Related Expenses
$1,861
$1,861
$1,861
$1,861
$1,862
$1,862
$1,862
$1,862
$1,862
$1,862
$1,862
$1,862
Insurance
$897
$897
$897
$897
$897
$897
$897
$897
$897
$897
$897
$897
Leased Equipment
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
Total Operating Expenses
$16,653
$16,653
$16,653
$16,653
$16,655
$16,655
$16,657
$16,657
$16,657
$16,657
$16,657
$16,657
Operating Income
$4,551
$4,551
$4,551
$4,551
$4,550
$4,550
$4,548
$4,548
$4,548
$4,548
$4,548
$4,548
$442
$434
$426
$418
$702
$690
$678
$665
$653
$641
$629
$616
$1,290
$1,289
$1,289
$1,289
$1,290
$1,289
$1,289
$1,290
$1,289
$1,289
$1,289
$1,290
$422
$425
$425
$427
$383
$386
$387
$389
$391
$393
$394
$397
Total Expenses
$42,442
$42,436
$42,428
$42,422
$42,665
$42,655
$42,646
$42,636
$42,626
$42,616
$42,605
$42,596
Net Profit
$2,397
$2,403
$2,411
$2,417
$2,175
$2,185
$2,194
$2,204
$2,215
$2,225
$2,236
$2,245
Gross Margin
Gross Margin % Operating Expenses
Advertising
Rent Utilities Rent Office Expense
Interest Incurred Depreciation and Amortization Income Taxes
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38
GARRETT'S BIKE SHOP - XERO
Net Profit / Sales
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
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39
GARRETT'S BIKE SHOP - XERO
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
$50,073
$50,073
$50,073
$50,073
$50,074
$50,074
$50,074
$50,074
$50,074
$50,076
$50,077
$50,077
Direct Costs
$26,472
$26,472
$26,472
$26,472
$26,473
$26,473
$26,473
$26,473
$26,473
$26,473
$26,473
$26,473
$23,601
$23,601
$23,601
$23,601
$23,601
$23,601
$23,601
$23,601
$23,601
$23,603
$23,604
$23,604
47%
47%
47%
47%
47%
47%
47%
47%
47%
47%
47%
47%
Salary
$7,634
$7,635
$7,635
$7,635
$7,636
$7,636
$7,636
$7,636
$7,636
$7,636
$7,637
$7,637
Employee Related Expenses
$1,909
$1,909
$1,909
$1,909
$1,909
$1,909
$1,909
$1,909
$1,909
$1,909
$1,909
$1,909
$1,001
$1,001
$1,001
$1,001
$1,001
$1,001
$1,001
$1,001
$1,001
$1,002
$1,002
$1,002
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
Total Operating Expenses
$16,994
$16,995
$16,995
$16,995
$16,996
$16,996
$16,996
$16,996
$16,996
$16,997
$16,998
$16,998
Operating Income
$6,607
$6,606
$6,606
$6,606
$6,605
$6,605
$6,605
$6,605
$6,605
$6,606
$6,606
$6,606
$603
$591
$578
$566
$552
$540
$526
$513
$501
$487
$474
$460
$1,289
$1,289
$1,290
$1,289
$1,289
$1,289
$1,290
$1,289
$1,289
$1,290
$1,289
$1,289
$707
$709
$710
$713
$715
$716
$718
$721
$722
$724
$727
$728
Total Expenses
$46,065
$46,056
$46,045
$46,035
$46,025
$46,014
$46,003
$45,992
$45,981
$45,971
$45,961
$45,948
Net Profit
$4,008
$4,017
$4,028
$4,038
$4,049
$4,060
$4,071
$4,082
$4,093
$4,105
$4,116
$4,129
Gross Margin
Gross Margin % Operating Expenses
Advertising Insurance Leased Equipment Rent Utilities Rent Office Expense
Interest Incurred Depreciation and Amortization Income Taxes
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40
GARRETT'S BIKE SHOP - XERO
Net Profit / Sales
8%
8%
8%
8%
8%
8%
8%
8%
8%
8%
8%
8%
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41
GARRETT'S BIKE SHOP - XERO
FY2014
FY2015
FY2016
Revenue
$480,200
$538,080
$600,892
Direct Costs
$253,060
$283,620
$317,664
$227,140
$254,460
$283,228
47%
47%
47%
Salary
$78,200
$89,360
$91,629
Employee Related Expenses
$19,550
$22,340
$22,907
Insurance
$9,604
$10,762
$12,018
Leased Equipment
$1,800
$1,800
$1,800
$54,000
$54,000
$54,000
Gross Margin
Gross Margin % Operating Expenses
Advertising
Rent Utilities Rent
$3,600
$3,600
$3,600
$18,000
$18,000
$18,000
$184,754
$199,862
$203,954
$42,386
$54,598
$79,274
$5,364
$6,994
$6,391
$13,814
$15,472
$15,471
$3,481
$4,819
$8,610
$460,473
$510,767
$552,090
$19,727
$27,313
$48,802
4%
5%
8%
Office Expense
Total Operating Expenses Operating Income Interest Incurred Depreciation and Amortization Income Taxes
Total Expenses Net Profit Net Profit / Sales
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42
GARRETT'S BIKE SHOP - XERO
Balance Sheet Balance Sheet (With Monthly Detail) As of Period's End Cash
Starting Balances
Oct '13
Nov '13
Dec '13
Jan '14
Feb '14
Mar '14
Apr '14
May '14
Jun '14
Jul '14
Aug '14
Sep '14
$0
$47,691
$25,261
$26,245
$24,814
$31,866
$40,817
$20,177
$14,657
$15,124
$15,501
$20,567
$23,963
$9,170
$8,726
$10,740
$10,209
$10,974
$12,035
$9,316
$8,953
$11,033
$12,328
$11,838
$11,838
$17,000
$58,505
$62,425
$64,655
$63,205
$60,435
$59,065
$65,235
$70,855
$72,565
$71,465
$71,335
$70,905
$17,000
$115,366
$96,412
$101,640
$98,228
$103,275
$111,917
$94,728
$94,465
$98,722
$99,294
$103,740
$106,706
$61,500
$61,500
$61,500
$61,500
$61,500
$61,500
$61,500
$76,500
$76,500
$76,500
$76,500
$76,500
$77,700
($1,025)
($2,050)
($3,075)
($4,100)
($5,125)
($6,150)
($7,425)
($8,700)
($9,975)
($11,250)
($12,525)
($13,814)
Accounts Receivable Inventory Other Current Assets
Total Current Assets Long-Term Assets Accumulated Depreciation
Total LongTerm Assets
$61,500
$60,475
$59,450
$58,425
$57,400
$56,375
$55,350
$69,075
$67,800
$66,525
$65,250
$63,975
$63,886
Total Assets
$78,500
$175,841
$155,862
$160,065
$155,628
$159,650
$167,267
$163,803
$162,265
$165,247
$164,544
$167,715
$170,592
Accounts Payable
$27,800
$33,466
$14,014
$15,494
$12,894
$12,714
$14,859
$15,943
$15,443
$15,673
$15,508
$15,487
$15,486
$47
$0
$359
$658
$1,264
$2,038
$2,006
$1,818
$2,175
$2,724
$3,125
$3,481
Sales Taxes Payable
$1,360
$2,480
$4,000
$1,440
$2,880
$4,480
$1,440
$2,960
$4,640
$1,760
$3,600
$5,440
Short-Term Debt
$15,578
$15,669
$15,761
$15,853
$15,946
$16,039
$16,133
$16,227
$16,322
$16,417
$16,512
$16,609
Income Taxes Payable
Prepaid Revenue
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43
GARRETT'S BIKE SHOP - XERO
Total Current Liabilities
$27,800
$50,451
$32,163
$35,614
$30,845
$32,804
$37,416
$35,522
$36,448
$38,810
$36,409
$38,724
$41,016
$74,422
$73,074
$71,718
$70,354
$68,982
$67,602
$66,214
$64,818
$63,414
$62,002
$60,582
$59,153
$27,800
$124,873
$105,237
$107,332
$101,199
$101,786
$105,018
$101,736
$101,266
$102,224
$98,411
$99,306
$100,169
Paid-in Capital
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
Retained Earnings
$25,700
$25,700
$25,700
$25,700
$25,700
$25,700
$25,700
$25,700
$25,700
$25,700
$25,700
$25,700
$25,700
$268
($75)
$2,033
$3,729
$7,164
$11,549
$11,367
$10,299
$12,323
$15,433
$17,709
$19,723
Long-Term Debt
Total Liabilities
Earnings
Total Owner's Equity
$50,700
$50,968
$50,625
$52,733
$54,429
$57,864
$62,249
$62,067
$60,999
$63,023
$66,133
$68,409
$70,423
Total Liabilities & Equity
$78,500
$175,841
$155,862
$160,065
$155,628
$159,650
$167,267
$163,803
$162,265
$165,247
$164,544
$167,715
$170,592
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44
GARRETT'S BIKE SHOP - XERO
FY2015
Oct '14
Nov '14
Dec '14
Jan '15
Feb '15
Mar '15
Apr '15
May '15
Jun '15
Jul '15
Aug '15
Sep '15
Cash
$22,943
$27,377
$28,331
$77,766
$81,209
$84,653
$83,095
$86,537
$89,981
$87,007
$87,614
$88,222
Accounts Receivable
$11,855
$11,855
$11,855
$11,855
$11,855
$11,855
$11,854
$11,854
$11,853
$11,852
$11,851
$11,850
Inventory
$70,905
$70,905
$70,905
$70,905
$70,905
$70,906
$70,907
$70,908
$70,908
$73,744
$76,580
$79,416
$105,703
$110,137
$111,091
$160,526
$163,969
$167,414
$165,856
$169,299
$172,742
$172,603
$176,045
$179,488
$77,700
$77,700
$77,700
$77,700
$77,700
$77,700
$77,700
$77,700
$77,700
$77,700
$77,700
$77,700
Accumulated Depreciation
($15,104)
($16,393)
($17,682)
($18,971)
($20,261)
($21,550)
($22,839)
($24,129)
($25,418)
($26,707)
($27,996)
($29,286)
Total LongTerm Assets
$62,596
$61,307
$60,018
$58,729
$57,439
$56,150
$54,861
$53,571
$52,282
$50,993
$49,704
$48,414
Total Assets
$168,299
$171,444
$171,109
$219,255
$221,408
$223,564
$220,717
$222,870
$225,024
$223,596
$225,749
$227,902
$15,487
$15,486
$15,485
$15,484
$15,483
$15,483
$15,483
$15,483
$15,483
$16,901
$16,901
$16,901
Income Taxes Payable
$3,903
$4,328
$1,272
$1,699
$2,082
$2,468
$2,855
$3,244
$3,635
$4,028
$4,422
$4,819
Sales Taxes Payable
$1,667
$3,333
$5,000
$1,667
$3,333
$5,000
$1,666
$3,333
$5,000
$1,667
$3,333
$5,000
Short-Term Debt
$16,706
$16,803
$16,901
$25,652
$25,802
$25,952
$26,104
$26,256
$26,408
$26,562
$26,717
$26,873
$37,763
$39,950
$38,658
$44,502
$46,700
$48,903
$46,108
$48,316
$50,526
$49,158
$51,373
$53,593
$57,716
$56,271
$54,817
$94,702
$92,482
$90,250
$88,004
$85,745
$83,474
$81,189
$78,891
$76,579
$95,479
$96,221
$93,475
$139,204
$139,182
$139,153
$134,112
$134,061
$134,000
$130,347
$130,264
$130,172
Paid-in Capital
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
Retained Earnings
$45,423
$45,423
$45,423
$45,423
$45,423
$45,423
$45,423
$45,423
$45,423
$45,423
$45,423
$45,423
Other Current Assets
Total Current Assets Long-Term Assets
Accounts Payable
Prepaid Revenue
Total Current Liabilities Long-Term Debt
Total Liabilities
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45
GARRETT'S BIKE SHOP - XERO
Earnings
Total Owner's Equity Total Liabilities & Equity
$2,397
$4,800
$7,211
$9,628
$11,803
$13,988
$16,182
$18,386
$20,601
$22,826
$25,062
$27,307
$72,820
$75,223
$77,634
$80,051
$82,226
$84,411
$86,605
$88,809
$91,024
$93,249
$95,485
$97,730
$168,299
$171,444
$171,109
$219,255
$221,408
$223,564
$220,717
$222,870
$225,024
$223,596
$225,749
$227,902
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46
GARRETT'S BIKE SHOP - XERO
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
$87,566
$93,233
$94,081
$94,247
$99,913
$105,581
$105,748
$111,416
$117,083
$117,251
$122,918
$128,585
Accounts Receivable
$13,226
$13,226
$13,225
$13,225
$13,225
$13,224
$13,223
$13,222
$13,221
$13,221
$13,221
$13,220
Inventory
$79,416
$79,417
$79,418
$79,419
$79,419
$79,419
$79,419
$79,419
$79,419
$79,419
$79,419
$79,419
$180,208
$185,876
$186,724
$186,891
$192,557
$198,224
$198,390
$204,057
$209,723
$209,891
$215,558
$221,224
$77,700
$77,700
$77,700
$77,700
$77,700
$77,700
$77,700
$77,700
$77,700
$77,700
$77,700
$77,700
Accumulated Depreciation
($30,575)
($31,864)
($33,154)
($34,443)
($35,732)
($37,021)
($38,311)
($39,600)
($40,889)
($42,179)
($43,468)
($44,757)
Total LongTerm Assets
$47,125
$45,836
$44,546
$43,257
$41,968
$40,679
$39,389
$38,100
$36,811
$35,521
$34,232
$32,943
Total Assets
$227,333
$231,712
$231,270
$230,148
$234,525
$238,903
$237,779
$242,157
$246,534
$245,412
$249,790
$254,167
$16,953
$16,953
$16,953
$16,953
$16,953
$16,953
$16,953
$16,953
$16,953
$16,954
$16,953
$16,952
Income Taxes Payable
$5,526
$6,235
$2,126
$2,839
$3,554
$4,270
$4,988
$5,709
$6,431
$7,155
$7,882
$8,610
Sales Taxes Payable
$1,833
$3,667
$5,500
$1,833
$3,666
$5,500
$1,833
$3,667
$5,500
$1,833
$3,667
$5,500
Short-Term Debt
$27,029
$27,187
$27,346
$27,506
$27,666
$27,828
$27,990
$28,153
$28,318
$28,484
$28,650
$28,817
$51,341
$54,042
$51,925
$49,131
$51,839
$54,551
$51,764
$54,482
$57,202
$54,426
$57,152
$59,879
$74,254
$71,915
$69,562
$67,196
$64,816
$62,422
$60,014
$57,592
$55,156
$52,705
$50,241
$47,762
$125,595
$125,957
$121,487
$116,327
$116,655
$116,973
$111,778
$112,074
$112,358
$107,131
$107,393
$107,641
Paid-in Capital
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
Retained Earnings
$72,730
$72,730
$72,730
$72,730
$72,730
$72,730
$72,730
$72,730
$72,730
$72,730
$72,730
$72,730
Other Current Assets
Total Current Assets Long-Term Assets
Accounts Payable
Prepaid Revenue
Total Current Liabilities Long-Term Debt
Total Liabilities
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47
GARRETT'S BIKE SHOP - XERO
Earnings
$4,008
$8,025
$12,053
$16,091
$20,140
$24,200
$28,271
$32,353
$36,446
$40,551
$44,667
$48,796
Total Owner's Equity
$101,738
$105,755
$109,783
$113,821
$117,870
$121,930
$126,001
$130,083
$134,176
$138,281
$142,397
$146,526
Total Liabilities & Equity
$227,333
$231,712
$231,270
$230,148
$234,525
$238,903
$237,779
$242,157
$246,534
$245,412
$249,790
$254,167
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48
GARRETT'S BIKE SHOP - XERO
As of Period's End Cash
Starting Balances
FY2014
FY2015
FY2016
$0
$23,963
$88,222
$128,585
Accounts Receivable Inventory
$11,838
$11,850
$13,220
$17,000
$70,905
$79,416
$79,419
$17,000
$106,706
$179,488
$221,224
$61,500
$77,700
$77,700
$77,700
Other Current Assets
Total Current Assets Long-Term Assets Accumulated Depreciation
($13,814)
($29,286)
($44,757)
Total Long-Term Assets
$61,500
$63,886
$48,414
$32,943
Total Assets
$78,500
$170,592
$227,902
$254,167
$27,800
Accounts Payable
$15,486
$16,901
$16,952
Income Taxes Payable
$3,481
$4,819
$8,610
Sales Taxes Payable
$5,440
$5,000
$5,500
$16,609
$26,873
$28,817
$41,016
$53,593
$59,879
$59,153
$76,579
$47,762
$27,800
$100,169
$130,172
$107,641
Paid-in Capital
$25,000
$25,000
$25,000
$25,000
Retained Earnings
$25,700
$25,700
$45,423
$72,730
$19,723
$27,307
$48,796
Short-Term Debt Prepaid Revenue
Total Current Liabilities
$27,800
Long-Term Debt
Total Liabilities
Earnings
Total Owner's Equity
$50,700
$70,423
$97,730
$146,526
Total Liabilities & Equity
$78,500
$170,592
$227,902
$254,167
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49
GARRETT'S BIKE SHOP - XERO
Cash Flow Statement Cash Flow Statement (With Monthly Detail) FY2014
Oct '13
Nov '13
Dec '13
Jan '14
Feb '14
Mar '14
Apr '14
May '14
Jun '14
Jul '14
Aug '14
Sep '14
$268
($343)
$2,108
$1,696
$3,435
$4,385
($182)
($1,068)
$2,024
$3,110
$2,276
$2,014
$1,025
$1,025
$1,025
$1,025
$1,025
$1,025
$1,275
$1,275
$1,275
$1,275
$1,275
$1,289
Change in Accounts Receivable
($9,170)
$444
($2,014)
$531
($765)
($1,061)
$2,719
$363
($2,080)
($1,295)
$490
$0
Change in Inventory
($41,505)
($3,920)
($2,230)
$1,450
$2,770
$1,370
($6,170)
($5,620)
($1,710)
$1,100
$130
$430
Change in Accounts Payable
$5,666
($19,452)
$1,480
($2,600)
($180)
$2,145
$1,084
($500)
$230
($165)
($21)
($1)
$47
($47)
$359
$299
$606
$774
($32)
($188)
$357
$549
$401
$356
$1,360
$1,120
$1,520
($2,560)
$1,440
$1,600
($3,040)
$1,520
$1,680
($2,880)
$1,840
$1,840
($42,309)
($21,173)
$2,248
($159)
$8,331
$10,238
($4,346)
($4,218)
$1,776
$1,694
$6,391
$5,928
Net Cash Flow from Operations Net Profit Depreciation and Amortization
Change in Income Tax Payable Change in Sales Tax Payable Change in Prepaid Revenue
Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold
($15,000)
($1,200)
Investments Received
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50
GARRETT'S BIKE SHOP - XERO
Change in Long-Term Debt
$74,422
($1,348)
($1,356)
($1,364)
($1,372)
($1,380)
($1,388)
($1,396)
($1,404)
($1,412)
($1,420)
($1,429)
Change in Short-Term Debt
$15,578
$91
$92
$92
$93
$93
$94
$94
$95
$95
$95
$97
$90,000
($1,257)
($1,264)
($1,272)
($1,279)
($1,287)
($16,294)
($1,302)
($1,309)
($1,317)
($1,325)
($2,532)
$0
$47,691
$25,261
$26,245
$24,814
$31,866
$40,817
$20,177
$14,657
$15,124
$15,501
$20,567
$47,691
($22,430)
$984
($1,431)
$7,052
$8,951
($20,640)
($5,520)
$467
$377
$5,066
$3,396
$47,691
$25,261
$26,245
$24,814
$31,866
$40,817
$20,177
$14,657
$15,124
$15,501
$20,567
$23,963
Dividends & Distributions
Net Cash Flow from Investing & Financing Cash at Beginning of Period Net Change in Cash
Cash at End of Period
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51
GARRETT'S BIKE SHOP - XERO
FY2015
Oct '14
Nov '14
Dec '14
Jan '15
Feb '15
Mar '15
Apr '15
May '15
Jun '15
Jul '15
Aug '15
Sep '15
Net Profit
$2,397
$2,403
$2,411
$2,417
$2,175
$2,185
$2,194
$2,204
$2,215
$2,225
$2,236
$2,245
Depreciation and Amortization
$1,290
$1,289
$1,289
$1,289
$1,290
$1,289
$1,289
$1,290
$1,289
$1,289
$1,289
$1,290
($17)
$0
$0
$0
$0
$0
$1
$0
$1
$1
$1
$1
Change in Inventory
$0
$0
$0
$0
$0
($1)
($1)
($1)
$0
($2,836)
($2,836)
($2,836)
Change in Accounts Payable
$1
($1)
($1)
($1)
($1)
$0
$0
$0
$0
$1,418
$0
$0
$422
$425
($3,056)
$427
$383
$386
$387
$389
$391
$393
$394
$397
($3,773)
$1,666
$1,667
($3,333)
$1,666
$1,667
($3,334)
$1,667
$1,667
($3,333)
$1,666
$1,667
$320
$5,782
$2,310
$799
$5,513
$5,526
$536
$5,549
$5,563
($843)
$2,750
$2,764
Change in Long-Term Debt
($1,437)
($1,445)
($1,454)
$39,885
($2,220)
($2,232)
($2,246)
($2,259)
($2,271)
($2,285)
($2,298)
($2,312)
Change in Short-Term Debt
$97
$97
$98
$8,751
$150
$150
$152
$152
$152
$154
$155
$156
Net Cash Flow from Operations
Change in Accounts Receivable
Change in Income Tax Payable Change in Sales Tax Payable Change in Prepaid Revenue
Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold Investments Received
Dividends & Distributions
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52
GARRETT'S BIKE SHOP - XERO
Net Cash Flow from Investing & Financing
($1,340)
($1,348)
($1,356)
$48,636
($2,070)
($2,082)
($2,094)
($2,107)
($2,119)
($2,131)
($2,143)
($2,156)
Cash at Beginning of Period
$23,963
$22,943
$27,377
$28,331
$77,766
$81,209
$84,653
$83,095
$86,537
$89,981
$87,007
$87,614
Net Change in Cash
($1,020)
$4,434
$954
$49,435
$3,443
$3,444
($1,558)
$3,442
$3,444
($2,974)
$607
$608
Cash at End of Period
$22,943
$27,377
$28,331
$77,766
$81,209
$84,653
$83,095
$86,537
$89,981
$87,007
$87,614
$88,222
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53
GARRETT'S BIKE SHOP - XERO
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 Profit
$4,008
$4,017
$4,028
$4,038
$4,049
$4,060
$4,071
$4,082
$4,093
$4,105
$4,116
$4,129
Depreciation and Amortization
$1,289
$1,289
$1,290
$1,289
$1,289
$1,289
$1,290
$1,289
$1,289
$1,290
$1,289
$1,289
($1,376)
$0
$1
$0
$0
$1
$1
$1
$1
$0
$0
$1
Change in Inventory
$0
($1)
($1)
($1)
$0
$0
$0
$0
$0
$0
$0
$0
Change in Accounts Payable
$52
$0
$0
$0
$0
$0
$0
$0
$0
$1
($1)
($1)
$707
$709
($4,109)
$713
$715
$716
$718
$721
$722
$724
$727
$728
($3,167)
$1,834
$1,833
($3,667)
$1,833
$1,834
($3,667)
$1,834
$1,833
($3,667)
$1,834
$1,833
$1,513
$7,848
$3,042
$2,372
$7,886
$7,900
$2,413
$7,927
$7,938
$2,453
$7,965
$7,979
Change in Long-Term Debt
($2,325)
($2,339)
($2,353)
($2,366)
($2,380)
($2,394)
($2,408)
($2,422)
($2,436)
($2,451)
($2,464)
($2,479)
Change in Short-Term Debt
$156
$158
$159
$160
$160
$162
$162
$163
$165
$166
$166
$167
Net Cash Flow from Operations
Change in Accounts Receivable
Change in Income Tax Payable Change in Sales Tax Payable Change in Prepaid Revenue
Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold Investments Received
Dividends & Distributions
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54
GARRETT'S BIKE SHOP - XERO
Net Cash Flow from Investing & Financing Cash at Beginning of Period Net Change in Cash
Cash at End of Period
($2,169)
($2,181)
($2,194)
($2,206)
($2,220)
($2,232)
($2,246)
($2,259)
($2,271)
($2,285)
($2,298)
($2,312)
$88,222
$87,566
$93,233
$94,081
$94,247
$99,913
$105,581
$105,748
$111,416
$117,083
$117,251
$122,918
($656)
$5,667
$848
$166
$5,666
$5,668
$167
$5,668
$5,667
$168
$5,667
$5,667
$87,566
$93,233
$94,081
$94,247
$99,913
$105,581
$105,748
$111,416
$117,083
$117,251
$122,918
$128,585
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55
GARRETT'S BIKE SHOP - XERO
FY2014
FY2015
FY2016
Net Profit
$19,727
$27,313
$48,802
Depreciation and Amortization
$13,814
$15,472
$15,471
Change in Accounts Receivable
($11,840)
($11)
($1,368)
Change in Inventory
($53,905)
($8,511)
($3)
Change in Accounts Payable
($12,319)
$1,411
$51
Change in Income Tax Payable
$3,481
$1,338
$3,791
Change in Sales Tax Payable
$5,440
($440)
$500
($35,602)
$36,572
$67,244
Net Cash Flow from Operations
Change in Prepaid Revenue
Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold
($16,200)
Investments Received Change in Long-Term Debt
$59,153
$17,426
($28,817)
Change in Short-Term Debt
$16,609
$10,264
$1,944
$59,562
$27,690
($26,873)
$3
$23,960
$88,214
$23,960
$64,262
$40,371
$23,963
$88,222
$128,585
Dividends & Distributions
Net Cash Flow from Investing & Financing Cash at Beginning of Period Net Change in Cash
Cash at End of Period
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.