ABE INTERNATIONAL COLLEGE OF BUSINESS & ACCOUNTANCY TACLOBAN COLLEGE TACLOBAN CITY
________________________ _____________________________________ ________________________ ___________ In partial fulfillment of the Requirement in the subject Entrepreneurship and Business Plan
“R8 EXPRESS: COFFEE SHOP”
_______________________________
Submitted to
Ms. Grace Betanzor
Submitted by
Bryan Gacho Merasol Gumapac Mark Denver Marilla
S.Y 2010-2011
1
TABLE OF CONTENTS Acknowledgement
I.
II. III.
Introductory Page
5
A. Name and address of business
5
B. Nature of business
5
C. Statement of financial needed
5
D. Statement of confidentiality report
6
Executive Summary
6
Industry Analysis
7
A. Future outlook and trends
8
B. 1. Economic Condition
9
2. Socio-Cultural Condition
10
3. Demographic profile
10
C. Analysis of Competitors
10
IV. Description of Venture
11
A. Produc Productt B. Servic Servicee C. Size of the Business Business
D. Office Equipment & Personnel
12
V.Production Plan
2
TABLE OF CONTENTS Acknowledgement
I.
II. III.
Introductory Page
5
A. Name and address of business
5
B. Nature of business
5
C. Statement of financial needed
5
D. Statement of confidentiality report
6
Executive Summary
6
Industry Analysis
7
A. Future outlook and trends
8
B. 1. Economic Condition
9
2. Socio-Cultural Condition
10
3. Demographic profile
10
C. Analysis of Competitors
10
IV. Description of Venture
11
A. Produc Productt B. Servic Servicee C. Size of the Business Business
D. Office Equipment & Personnel
12
V.Production Plan
2
A. Production Process
13
B. Physical Plant C. Machinery and Equipment
15
VI. Marketing Plan
A. Pricing
16
B. Distribution C. Produ Producti ction on
D. Target Market Forecast
17
E. Controls
18
VII. Organizational Plan
A. Form of Ownership
19
B. Org. Structure Structure Roless and and resp respon onsi sibi bili liti ties es and and mann manner erss of orga organ nizat izatio ion n C. Role
20
VIII. Assessment of Risk
22
IX. Financial Plan
23
A. Financial Object B. Projected Income Statement
24-26
C. Projected Cash Flow
27-28
D. Projected Balance Sheet
27
3
4
I. Introductory Page A. Name and Address of business The group comes up to name the business “R8 EXPRESS: Coffee and T.” R8 stands for Region 8 or the Eastern Visayas Region, for our business is located at the heart of the region- Tacloban. The letter T stands for tourism since our course THRM is related to Hospitality and Tourism Industry and also to promote the region’s paradise and attractions through photo gallery concepts. Downtown district of Tacloban is the proposed location of the business for it ideal source of our potential target market. It is also that the downtown district is the commercial center of the region. B. Names and Addresses of Principals
Bryan M. Gacho
Brgy. 4, Lawaan Eastern Samar
Merasol R. Gumapac
Blk11,L7,A7,P3,V & G Subd. Tac.City
Mark Denver Marilla
Sampagita,Sagkahan Tacloban City
C. Nature of Business The business is a coffee shop that caters mostly to students, coffee shop goers, and individuals that belongs in the average to above average earner group and has high disposable income. Its unique concept will give a differential advantage among other coffee shop. “R Express: Coffee and T.” will be adopting a mix of nature and tourism inspired photo gallery style with Earth color, green and blue as accent as its concept. Partnership will be the form of this business venture, specifically general partnership which means that all of the partners will be involved in management. D. Statement of Financial Needed Starting a business entails a certain amount of capital. The total investment requirement will be P2, 500,000.00, 60% will be the partner’s equity and 40% from loan equity. The partnership will be incurring a loan at the Development Bank of the Philippines; this loan will be worth P1,000,000.00 with an interest of 10% annually and 7% discount rate. The partner’s equity will be divided equally among the partners, thus, each partner’s contribution will be P250, 000.00.
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E. Statement of Confidentiality Report This business plan report is confidential and a property of the partners listed above. Any reproduction of any of its contents without the prior consent of the group is prohibited.
II. Executive Summary An innovative coffee business with nature inspired and a twist of nature and tourism photo gallery concept will be launched as a new competition in the coffee shop market. With the brand name “ R8 EXPRESS: Coffee and T. “ this will not only serve coffee and the usual cakes but will also introduce high quality and nutritious region’s delicacies that adds twist to the coffee shop. This business venture will be a partnership, specifically general partnership and will be located at the downtown district of Tacloban. Finding of the business comes from two major sources; 60% partner’s equity and 40% from loan equity. The business venture will offer, costs less products and pricing scheme that is significantly lower than that of competitor. We will offer different kinds of coffee, and other beverage, freshly baked cakes and pastries and delicacies that will depend on the availability and demand. Food and beverage are not only our main product but also the ambiance and business concept, the souvenir items at affordable prices and the quality services that will offer recreation, comfort and satisfaction. The important values that will be associated with our venture is that, it will not only offer affordable product but also the quality and health benefit of it specifically patterned to suit the local taste preference. And we will also looking forward that our business will help in the tourism promotion of the region. R8 EXPRESS target market are classified into students, middle and high class individuals, young and middle age professionals, health conscious and travelers/tourists. The venture will cater to both the informed and uninformed market segments and will also expect to attract a substantial number of 1st-time coffee shop goers and adventurous coffee shop goers. “R8 EXPRESS” will ensure that customers will get
6
the best purchase and post-purchase experience and as well as memorable experience as our main service so as to encourage repeat buyers. The promotional strategies that will be employed would include signage, tarpaulins, flyers/pamphlets, radio ad., sales promotion and internet advertising. The coffee shop itself; the interior design, theme and the exterior as well are also set to attract customers. An additional product variety and product innovation will be offered as part of the market development strategy and after achieving sufficient product compliance from the target market. That will be projected after the first 2 years of “R8 EXPRESS” operation. Stiff competition is highly expected for coffee shop business is one of the fastest growing ventures here in Tacloban. However, with a unique concept and marketing strategy with the positive results from the market research, maximum profitability may be expected from this business venture, with an annual growth rate of 10%. BUSINESS OBJECTIVES AND GOALS: To meet the growing needs of the target market To create social responsibility as to promote the tourism of Eastern Visayas ad environmental awareness. To establish an effective and profitable marketing mix of product, place, price and promotion. To increase sales by 10 to 20 per cent annually for the first three years To evaluate the competitive environment and continue to establish a differential advantage To make agreement with coffee and delicacies distributors and bakery ventures for high quality and best choice of products To create a cozy and friendly environment To become the foremost coffeehouse in the area
III. Industry Analysis A. Future Outlook and Trends About the Coffee Drinking Trends
Each year, several different organizations publish reports on coffee drinking trends in the United States and around the world. Those reports tell how much coffee is bought and sold. They tell who buys and drinks coffee, how much coffee people drink in different
7
parts of the country and the world, and what kind of coffee and coffee drinks are most and least popular. Significance Understanding trends in coffee drinking can help coffee shop owners, roasters and other coffee professionals make business decisions about what products to order and offer in their shops. The information is also useful to other food retailers, those in the hospitality industry and anyone who is considering a career in the coffee industry. The Facts The most significant coffee drinking trends in the past 50 years include: - A steady drop in daily coffee consumption from 1950 to 1993 - A steady upward trend in daily coffee consumption from 1993 onward - A growing upward trend in specialty coffee consumption beginning in the early 1990s - An increase in the number of people drinking coffee outside the home from 1950 to the present - An increase in the consumption of flavored coffees starting about 1992 - A growing awareness of ecological and economic issues surrounding coffee since 2002 - The growing number of people concerned with health effects of coffee - An increase in coffee consumption in both young (18 to 24) and senior (60-plus) age groups Each of these trends has represented significant changes in the way that people view and drink coffee. For instance, the coffee drinking trends from 2003 to 2008 clearly show an increase n the number of people who are more likely to buy a coffee that is Fair Trade certified, which suggests that consumers are growing more concerned with paying a fair price for the coffee that they drink. Benefits The NCDT shows that a growing number of people are concerned about the benefits of drinking coffee, both personally and for the world at large. For instance, according to the 2008 report on coffee drinking trends: - 61 percent of coffee drinkers said that coffee improves their focus - 46 percent listed the health benefits of drinking coffee as one of the reasons they drink coffee - Fair Trade certified and organic coffees are the fastest-growing segment of the specialty coffee market
About Coffee Shop Trends Coffee is the drink of choice for many people across the world. Every morning millions of people rely on their morning fix to get going for the day. Coffee has become so popular that there are a number of different flavors and combinations available. You can fill up on anything from a white chocolate mocha to a double chocolate chip iced coffee, or even vanilla bean treats. Coffee shops tend to do very well, especially the giant coffee shop chain known as Starbucks. Back in the 1990s, Starbucks started to expand across the entire world. It is now one of the largest coffee shop chains around. History A. Coffee has been around for thousands of years, but coffee shops have only become popular over the last 100 years. As more people have relied on caffeine to wake them up in the mornings, many small businesses have capitalized on this need. Coffee shops in general provide a lot of business. Most people would rather get a cup of coffee than enjoy a healthy breakfast. This is partly due to our fast-paced society. Many people are busy, and they don't always have time to sit down for a full breakfast, even if it would do them some good. Benefits
8
B. The benefits of these coffee shop trends are many. The proliferation of coffee shops help the economy to flourish because they encourage spending and create jobs. With coffee shops on every corner, it is not difficult to find a place to buy your morning coffee. This provides consumers with the added convenience of saving time by being able to pick up a quick cup of coffee regardless of where they are. According to the Archives of Internal Medicine, coffee, especially decaffeinated varieties, has been linked to a lower risk of type 2 diabetes. There are many other health benefits of drinking coffee in moderation. Features C. Coffee is the most popular and widely used herb around, which is the reason why coffee shops are so popular. People love coffee, so many small business people capitalize on this by opening up coffee shops. Some coffee shops provide Internet access so that people can use their laptops while they enjoy their coffee. This is especially helpful for busy students on the go. The coffee shop trend continues because there is a huge demand for it. If you took a road trip across America, you would find coffee shops on just about every corner. While the biggest and most well-known chain is Starbucks, you will also see many mom-and-pop coffee shops or small coffee shop stands. Even gas stations sell coffee to truckers and other travelers on the road. Brazil has by far the most coffee drinkers worldwide, so you will certainly notice that the coffee shop trends are very popular in Brazil. Some people even say that they can smell the aroma of coffee in the air. Coffee with no sugar or added creamers has no calories, and coffee shops have come up with the trend of offering many coffee drinks and treats that are low-fat. Read more: About Coffee Shop Trends | eHow.com http://www.ehow.com/about_4567371_coffee-shop-trends.html#ixzz1FQBsIsJe B. 1. Economic Condition: Philippine Economy The Philippines is located in South East Asia and the Philippines economy has been industrialized in the recent times. In terms of the purchasing power parity it ranked 24th according to the World Bank. The sectors that are of key importance in the Philippines Economy are agriculture, industry and mining each of which can be detailed under the following heads; Agricultural sector contributes about 17.1% of the GDP, Industrial Sector contributes 18.1% in the GDP. “The Gross Domestic product (GDP) for 2004 was $84.2 billion. The per capita gross domestic product was $976. At constant 1985 prices and current prices in million PHP (Pesos).” (http://www.economywatch.com/world_economy/philippines/) The Philippines is a newly Tacloban City Economy •
•
•
It is the regional center of commerce, tourism, education, culture, and government in the region. It is one of the few first class cities in the Philippines (cities with an annual income of more than PhP300 million) and is slated to be declared as a highly urbanized city in 2008 (having exceeded the minimum qualfying standards in terms of income and population). [2] http://www.worldlingo.com/ma/enwiki/en/Tacloban_City#Official_Seal_of_The_Cit y_of_Tacloban Philippine Agribusiness Report Q4 2010
9
Coffee Production Growth to 2013/14: 13% to 7.8mn bags. Government and private investment will help increase yields as new trees mature over the forecast period. Despite the growth, the country will not reach the government's planed selfsufficiency in the next few years. http://www.pr-inside.com/philippines-agribusiness-report-q-r2111912.htm 2. Soocio-cultural Condition The socio-cultural condition and urbanization affects the food and recreation preference of individual as more people become preoccupied with their job that also leads to a changing lifestyle. People nowadays are leading a fast paced life so they have lesser time devoted to eating, food preparation and long out-of-town vacation so they tend to find within the downtown establishments that offers recreation, relaxation and food and beverage. 3. Demographic Profile During the 2007 population census, Tacloban City has an actual total populationcount of 217,199. With an average annual population growth rate of 2.73 percent, it is projected that for the year 2008, Tacloban’ City’s population would be 223,130 and based on this projected population, Tacloban City has a population density of 1,106 persons per square kilometer or 11 persons per hectare. The disaggregated population results of the 2007 census is yet to be released as of this documentation but using ratio and proportion using the 2000 census as baseline data. Tacloban City has a proportionate total household of 43,415 for 2008. Using the same method, Total Number of Families counts at 47,014 with an Average Household Size of 5.1. http://www.tacloban.gov.ph/ C. Analysis of Competitors The current competitors of business venture in Tacloban City are classified into two: The direct competitors which includes all coffee shop within the tacloban area that offers unique concept and service. This includes, Jose Karlos, Libro: Books and coffee, Bo’s Coffee, Starzrocks, and the LIKE. Indirect competitors includes food establishments that offers coffee, Dunken Donuts and Mister Donuts.
10
IV. Description of Venture A. Products R8 Express: Coffee and T. will be offering high quality coffee, hot and cold beverages, teas and other custom drinks at a very reasonable price. We will also sell fresh-baked pastries and other confections like cookies, brownies, and cakes. In addition, the business venture will also offer same of Region’s delicacies like “moron” and “binagol” just to add twist to the venture. Seasonally, the business will add specialty and customized product during peal seasons. We will also market premium items and souvenirs such as mugs and T-shirts with imprinted tourist attractions of Eastern Visayas and other premium items like key chains, coin purse, etc. B. Services We will be having the following service:
Opens 7 days a week (from 7:00am-9:00 pm)
Casual dining atmosphere
Internet connection/ WIFI
Dine in and take out
Free seating
Guests or customers will feels at home
C. Size of Business R8 Express: Coffee and T. will be renting a space within the downtown area feasible to our target market. The desired size is 80 square meter, with a seating capacity of 30 pax.
11
D. Office Equipment and Personnel OFFICE EQUIPMENT Items Computer Fax/Printer Telephone File Cabinet Tables Chairs Ceiling Fan
Quantity
Unit Cost
1 set 1 1 2 1 3 1
40000 2500 3500 3000 500 100 3000
Office supplies
General Manager –Owner
Financial Manager – Owner
Marketing Manager – Owner
Store Attendant – Employee
Barista – Employee
Cashier – Employee
Service Crew – Employee
40000 2500 3500 6000 500 300 3000 2000 P57,800
PERSONNEL
Total
12
V. Production Plan A. Production Process
13
Budgeting – is a list of all planned expenses and revenue. It is plan from saving and spending to what is going to be purchased in working our product.
Purchasing – getting the desired product of the right quality, at the right quantity, right price and time from the right and reliable sources or suppliers.
Receiving- is a print at which the purchaser inspects products and tasks legal possession of the product ordered. A well designed receiving process is important to cost and quality control and therefore warrants careful planning and implementation.
Storing- proper storing of the purchased item maintains the quality of the product. In storing f & b items required a certain degree of temperature and should be well ventilated.
Production/Preparation- this should be done properly and accordingly to produce the desired product that is high quality and satisfying to customers.
Portioning- dividing the product into how many serving ensuring that each portion are consistent and in quality.
Serving- serving the finish product to our customers based on their orders.
Controlling- concerned with the management measure with current performance.
14
C. Machinery and Equipment Items Espresso Machine Coffee Maker Coffee Grinder Coffee/Tea Pots Blender Refrigerator Oven with Burner Air conditioner Cash Register Microwave Toaster Mixer
Quantity 1 1 1 3 2 1 1 2 1 2 1 1
Unit Cost 65000 25000 10000 2000 2500 21000 30000 8000 6000 5500 1000 2500
15
TOTAL 65000 25000 8000 6000 5000 21000 30000 16000 6000 11000 1000 2500 P195,500.00
VI. Marketing Plan A. Pricing Pricing strategy is based on the quality and how much ingredients is being used per product. The product will consistently be priced lower than the competitors so as to improve its market share. Specialty products that are only unique in our venture will be priced higher. Product price range from P20-P100 for coffee and other beverage. For pastries and cakes the price range is P20-P50. Souvenirs and other items will depend upon purchase from suppliers. Pricing will depend on the variable cost of each product, and a 20% mark-up is utilized B. Distribution The customers can dine at the coffee shop or have a take out. Product will be displayed at the counter section with their specific price (for pastries and souvenir items). For coffee and other beverage product will be made upon order. The price , size and the picture of the product are on the menu. C. Promotion We will develop an intensive marketing effort through promotions and advertising strategies to attract attention and to create awareness. Among the strategies are signage, tarpaulins, radio advertisement, online/internet advertisement, flyers and stickers. Discount coupons and promos like offering a “Frequent drinkers club” discount to our best customers.
16
D. Target Market Forecast Potential
Growth
2013
2014
2015
2016
2017
10%
35
39
43
47
51
10%
35
39
43
47
51
10%
10
11
12
13
14
10%
20
21
22
23
24
10%
100*360
110*360
120*360
130*360
140*360
=36,000
=39,600
=43,200
=46,800
=50,400
Custome rs
Students (35%) Young Professio nals (35%) Travellers (10%) First timers (20%) Total/year
17
E. Controls a) Product Control – The making of the product will be monitored and the avoidance of use of substitute ingredient will be implemented to assure that the product will maintain its standard tasks, nutritional value and quality.
b) Price Control- The pricing of the product will be followed by the business aggressively. Product’s price will not go lower than the average cost to ensure profitability.
c) Promotional Control- Once the product would be able to gain a market share, advertisements would be lessened. Tarpaulins, flyers and discount coupon will be the usual promotional activities for those plays major role in promotions.
18
VII. Organizational Plan A. Form of Ownership A type of business entity in which partners (owners) share with each other the profit or losses of the business undertaking in which all have invested. Partnership’s are often favoured over corporations for taxation purposes, as the partnership structured does not generally incur a tax on profit before it is distributed to the partners. B. Organizational Structure
Manager
Finance
Store Supervisor
Marketing
Cashier
Barista
Service
19
Baker
C. Roles & Responsibilities of Members of Organization a) Manager
Manage the facilities, equipment, inventory, payroll and other basic operational processes.
Ensure that the coffee shop operate efficiently and profitably while maintaining their reputation
Responsible of maintain of high standards of food, beverage services and health safety
Prepares the working schedule of all personnel including their shift and day off.
b) Marketing Manager
Responsible in the research, planning/creating and execution of marketing and promotional activities, monitoring sales and establish strategies for creating awareness of the business.
Responsible for the design and distribution of all direct marketing materials.
c) Financial Manager
Responsible for finance, accountings, payroll, billing, taxes and any other matter related to sales and revenue budgets.
d) Store Supervisor
Makes decision regarding hiring, evaluation and termination of employees or makes related recommendations.
Monitors work methods, standards of performance, sanitation and safety standards
20
Maintains proper security of units
Ensure quality food preparation, presentation and service to the customers
e) Cashier
Responsible on the billing of customers
Coordinates activities of employees engaged in receiving money and keeping records of transactions
Works with financial manager to handle records and cash correctly
f) Barista
Ensure the quality of the coffee and other complimentary and supplementary ingredients
Prepares coffee orders from the customers –coordinates with the store supervisor
g) Baker
Ensure the quality of pastries
Maintains proper sanitation of the kitchen
h) Service Crew
Attends/Welcome/Entertain customers and responsible in taking their orders
Clears table and do dish washing ALSO.
Compensation: Employees
No. of Employees
Salar/month
Total
Store attendant
1
15,000
15,000
Barista
2
9,500
19,000
Baker
1
9,000
9,000
Service Crew
2
7,500
14,000
21
1
Cashier
9,000
9,000
MONTHLY:
P66,000
Annual Salaries Expense
P798,000.00
VIII. Assessment of Risk A. Evaluate the Weakness of Business Although th business venture has a different concept among other coffee shop, stiff competition still high. With the growing number of food and beverage establishments, the emergence of more competitive brand may cause the decline of R8 Express: Coffee & T. B. New Technologies New Technology can improve the business operations for most of the people are techno savvy. It will add awareness to our business as well as help in our operation for this we can be used for production and promotion.
22
IX. Financial Plan A. Financial Objectives •
Increase earnings by 15% annually
•
Stable earnings during recessionary periods
B. Start-up Expense/Pre-operating Expense
23
Start-up Expense/ Pre-operating Expense
Legal Expense
Business Registration
5,000
Marketing Expenses
Signage
3,000
Tarpaulins
10,000
Stickers/Flyers
5,000
Radio Advertisements
15,000
OTHER
10,000
TOTAL
43,000
Prepaid Rent Expense
One month advance, one month deposit(35,000/mos)
105,000
Premises Remodelling
150,000
Workers Compensation
19,000
Other Startup Expense
30,000
TOTAL
P352,000
Required Start-up asset •
Operating Capital
-Payroll
66,500/month
P133,000
(GOOD for 2 months) -Cash Reserves
100,000/month
P300,000 P5,000
(Good for 3 months)
24
TOTAL •
P438,000
Start-up Inventory -Coffee Beans
P160,000
-Pastries and
P150,000
Confectionaries
-Beverages
P150,000
--Souvenirs
P50,000
-Office Supplies
P3,000
TOTAL
P453,000
•
Machinery and Equipment
P195,500
•
Office Equipment
P57,800
•
China, Glass & Silverwares
P50,000
•
Furniture’s and Fixtures
P130,000
•
Employees Uniform & Linens
P30,000
•
Other Miscellaneous Expense
P20,000
TOTAL
P1,374,300
PROJECTED INCOME STATEMENT R8 EXPRESS: COFFEE AND T. Projected Income Statement
Sales Less: Cost of Sales Gross: Profit
2013
2014
2015
2016
2017
3,600,000
3,960,000
4,356,000
4,878,720
5,464,166.4
(1,980,000)
(2,178,000)
(2,395,800)
(2,683,296)
3,905,291.5)
1,620,000
1,782,000
1,960,200
2,195,476
2,458,874.9
25
Less: Operating Expenses Permit & Licenses
(5,000)
(3,000)
(3,000)
(5,000)
(3,000)
Salaries & Wages
(798,000)
(798,000)
(798,000)
(821,940)
(821,940)
Rent Expense
(420,000)
(420,000)
(441,000)
(463,050)
(463,050)
Marketing Expense
(43,000)
(50,000)
(45,000)
(30,000)
(25,000)
Maintenance
(12,000)
(12,000)
(15,000)
(15,000)
(15,000)
Depreciation Expense
(54,162.5)
(47,392.2)
(41,468.2)
(36,284.64)
(31,749.06)
Miscellaneous Expense
(30,000)
(30,000)
(35,000)
(35,000)
(20,000)
Remodelling
(150,000)
Other Expense
30,000
10,000
(20,000)
(25,000)
(15,000)
P1,542,162.5
P1,370,392.2
P1,398,468.2
P1,431,274.6
P1,394,739
Operating Profit/loss
77,837.5
411,607.8
561,731.8
764,201.4
1,064,135.9
Less: Interest Expense
(100,000)
(90,000)
(90,000)
(90,000)
(90,000)
Net income/loss before taxes
22,162.5
321,607.8
471,731.8
674,201.4
974,135.9
(96,482.34)
(141,519.54)
(202,260.42)
(292,240.77)
P225,125.46
P330,212.26
P471,940.98
P681,895.13
Less: Taxes (30%) Net Income(loss) after tax
P22,162.5
26
R8 Express: Coffee and T. Projected Cash Flow Preoperating Sales Bank Loan Partner’s Equity
2013
2014
2015
2016
2017
3,600,000
3,960,000
4,356,000
4,878,720
5,464,166.4
3,600,000
3,960,000
4,356,000
4,878,720
5,464,166.4
30,000
50,000
40,000
45,000
2,178,000
2,395,800
2,683,296
3,005,291.5
930,000 1,500,000
Total Inflow
2,430,000
Supplies
83,000
Merchandise
450,000
1,980,000
27
Inventory Furniture & Fixtures
130,000
Machinery & equipment
253,300
License and permit
5,000
3,000
3,000
5,000
3,000
Salaries and expense
798,000
798,000
798,000
821,940
82,940
Rent Expense
420,000
420,000
441,000
463,050
463,050
Mktg. Expense
43,000
50,000
45,000
30,000
25,000
Maintenance Expense
12,000
12,000
15,000
15,000
15,000
Miscellaneous expense
30,000
30,000
35,000
35,000
20,000
Interest expense
100,000
90,000
90,000
96,482.34
141,519.54
202,260.42
292,240,77
Tax expense
90,000
90,000
Total Cash out flow
786,300
3,388,000
3,617,482.3 4
4,014,319.5 4
4,385,546.4 2
4,780,522.2 7
Net In flow
1,643,700
212,000
342,517.66
341,680.46
493,173.58
683,644.13
1,643,70-0
1,431,700
1,774,217.6 6
2,088,898.1 2
2,582,071.7
1,431,700
1,774,217.6 6
2,088,898.1 2
2,582,071.7
3,265,715.8 3
Cash Beg.
Cash end
1,643,700s
28
R8 Express: Coffee and T. Projected Balance Sheet 2013 Assets Current Assets
Cash
1,643,700
Inventories
355,297
Total
1,998,997
Non-current assets
Furniture and Fixtures
130,000
Machinery and Equipment
253,000
Less: Accumulated Depreciation
383,000 (54,162.5)
29
328,837.5
China, Glass and Silverware
50,000
Uniforms and Licenses
30,000
Total
408,837.5
Total Assets
P2, 407,834.5
Liabilities
Long Term Debt, Net
930,000
Owner’s Equity
P1, 477,834.5
Capital
Total Liability and Capital
P2, 407,834.5
X. Appendix A. Letters
30
