Based on the financial statements available in the case study, create a future budget for the next five years (2010, 2011, 2012, 2013, 2014) of operation. a. Use the budget template posted on Moodle for your forecasts

Exhibit 2 Westlake Lanes Annual Income Statements, 2004-2009 2004 2005 2006 2007 2008 2009 Income Lane and Shoe Rentals $ 708,765.00 $ 637,888.50 $ 545,584.11 $ 521,154.90 $ 489,705.00 $ 417,533.00 Food & Soda Sales $ 191,366.55 $ 153,603.55 $ 137,889.00 Beer Sales $ 159,472.13 $ 165,851.01 S963,211.64 $ 87,681.93 $ $3,506.60 S 134,624.00 $ 145,923.37 $ 114,654.08 $781,732.36 $ 120,688.50 $ 822,876.17 $ 126,456,00 $ 754,050.00 Total $1,034,755.55 $ 588,721.53 Cost of Sales Food $ 66,978.29 $ 55,515.24 $ 53,761.24 $ 51,073.18 $ 48,261.15 $ 26,304.58 Alcohol $ 30,963.52 $ 38,145.73 $ 27,758.36 $ 26,370.44 $ 29,084.88 $ 16,701.32 $91,505.11 $ 90,486.00 $ 98,301.78 S 31,042.67 $ 227,286.26 $ 78,173.24 $ 24,686,28 $ 47,097.72 $ 17,661.65 $ 28,896.35 Supplies Coupons and Discounts Total Cost of Sales Grass Profit $ 78,173.24 $ 23,451.97 $ 179,068.83 $ 22,621.50 $ 214,362.43 $ 184,379.12 $ 190,453.53 $ 107,765.27 S 807,469.29 $ 748,819.20 $ 638,497.05 $ 602,663.53 $ 563,596.47 $ 480,956.26 $ 231,960.00 $ 31,042.67 S 236,599.20 $ 31,973.95 $ 234,233.21 $ 32,293.69 $ 231,890.88 $ 32,616.62 $ 8,898.90 $ 8,453.95 $ 8,623.03 $ 10,951.25 General Expenses Employee Wages Advertising Legal and Audit Licenses and Permits Office Expenses Repairs and Maintenance Utilities $ 219,390.00 $ 29,354.96 $ 24,648.96 $ 2,392.35 $ 6,11264 $ 76,974.00 $ 205,390.00 $ 15,865,00 $ 15,900.00 $ 2,416.27 $ 3,346.00 $ 2.299.23 $ 2,368.66 $ 2,276,46 $ 3,104.27 $ 77,606.67 S 51,737.78 $ 3,414.69 $ 100,588.67 $ 2,345.21 $ 3,482.99 $ 70,622.07 $4,702.03 $ 115,447.00 S 86,432.00 $ 52,255.16 $ 53,522.81 $ 55,448.26 $36,672.00 $ 63,412.00 $ 68,024.45 Insurance Rent $ 50,000.00 $ 107,800.00 $ 54,000.00 $ 107,800.00 $ 54,899.27 $ 62,985.60 $ 107,800.00 $ 2,422.26 $ 107,800.00 $ 107,800.00 Miscellaneous $ 3,104.27 $ 3,166.35 $ 3,148.94 $ 1,200.00 $ 1,782.23 Depreciation & Amortization Total Operating Expenses Operating Income (Loss) $ 1,200.00 S 602,051.19 $ 568,731.00 $ 58,320.00 $ 107,800.00 $ 2,374.76 $ 1,200.00 $575,117.76 $ 63,379.28 $ 3,200.00 $ 60,179.28 $ 4,359.40 $ 597 653.96 S (34,057.49) $ 9,725.36 $ 3,510.00 $ 6,076.01 S 546,819.29 $ (65,863.02) $ 7,588.00 $627,865.80 S (25,202 27) $ 3,200.00 $ 238,738.29 $ 146,798.01 $ 2.800.00 Interest $ 2,400.00 Income Before Taxes $ 236,338.29 $ 143,998.01 Tax $ 50,399.30 $ 21,062.75 Net Income (Loss) $ 82,718,40 S 153,619.89 $ 153,619.89 $ 93,598.71 $ 39,118.53 $ (28,402.27) S (43,782.85) S 73,451.02) Dividend $ 93,598.71 $ 39,118.53 2011 2012 2013 2014 | Pro Forma Budget 2010 Income Lane and Shoe Rentals Food & Soda Sales Beer Sales Total Revenues $ $ $ $ $ Cost of Sales Food Alcohol Supplies Coupons and Discounts Total Cost of Sales $ $ $ $ $ Gross Profit $ $ $ $ HA General Expenses Employee Wages Advertising Legal and Audit Licenses and Permits Office Expenses Repairs and Maintenance Utilities Insurance Rent Miscellaneous Total General Expenses $ $ $ $ HA Interest Depreciation & Amortization Operating Income (Loss) $ $ $ $ $ Tax Net Income (Loss) $ $ Exhibit 2 Westlake Lanes Annual Income Statements, 2004-2009 2004 2005 2006 2007 2008 2009 Income Lane and Shoe Rentals $ 708,765.00 $ 637,888.50 $ 545,584.11 $ 521,154.90 $ 489,705.00 $ 417,533.00 Food & Soda Sales $ 191,366.55 $ 153,603.55 $ 137,889.00 Beer Sales $ 159,472.13 $ 165,851.01 S963,211.64 $ 87,681.93 $ $3,506.60 S 134,624.00 $ 145,923.37 $ 114,654.08 $781,732.36 $ 120,688.50 $ 822,876.17 $ 126,456,00 $ 754,050.00 Total $1,034,755.55 $ 588,721.53 Cost of Sales Food $ 66,978.29 $ 55,515.24 $ 53,761.24 $ 51,073.18 $ 48,261.15 $ 26,304.58 Alcohol $ 30,963.52 $ 38,145.73 $ 27,758.36 $ 26,370.44 $ 29,084.88 $ 16,701.32 $91,505.11 $ 90,486.00 $ 98,301.78 S 31,042.67 $ 227,286.26 $ 78,173.24 $ 24,686,28 $ 47,097.72 $ 17,661.65 $ 28,896.35 Supplies Coupons and Discounts Total Cost of Sales Grass Profit $ 78,173.24 $ 23,451.97 $ 179,068.83 $ 22,621.50 $ 214,362.43 $ 184,379.12 $ 190,453.53 $ 107,765.27 S 807,469.29 $ 748,819.20 $ 638,497.05 $ 602,663.53 $ 563,596.47 $ 480,956.26 $ 231,960.00 $ 31,042.67 S 236,599.20 $ 31,973.95 $ 234,233.21 $ 32,293.69 $ 231,890.88 $ 32,616.62 $ 8,898.90 $ 8,453.95 $ 8,623.03 $ 10,951.25 General Expenses Employee Wages Advertising Legal and Audit Licenses and Permits Office Expenses Repairs and Maintenance Utilities $ 219,390.00 $ 29,354.96 $ 24,648.96 $ 2,392.35 $ 6,11264 $ 76,974.00 $ 205,390.00 $ 15,865,00 $ 15,900.00 $ 2,416.27 $ 3,346.00 $ 2.299.23 $ 2,368.66 $ 2,276,46 $ 3,104.27 $ 77,606.67 S 51,737.78 $ 3,414.69 $ 100,588.67 $ 2,345.21 $ 3,482.99 $ 70,622.07 $4,702.03 $ 115,447.00 S 86,432.00 $ 52,255.16 $ 53,522.81 $ 55,448.26 $36,672.00 $ 63,412.00 $ 68,024.45 Insurance Rent $ 50,000.00 $ 107,800.00 $ 54,000.00 $ 107,800.00 $ 54,899.27 $ 62,985.60 $ 107,800.00 $ 2,422.26 $ 107,800.00 $ 107,800.00 Miscellaneous $ 3,104.27 $ 3,166.35 $ 3,148.94 $ 1,200.00 $ 1,782.23 Depreciation & Amortization Total Operating Expenses Operating Income (Loss) $ 1,200.00 S 602,051.19 $ 568,731.00 $ 58,320.00 $ 107,800.00 $ 2,374.76 $ 1,200.00 $575,117.76 $ 63,379.28 $ 3,200.00 $ 60,179.28 $ 4,359.40 $ 597 653.96 S (34,057.49) $ 9,725.36 $ 3,510.00 $ 6,076.01 S 546,819.29 $ (65,863.02) $ 7,588.00 $627,865.80 S (25,202 27) $ 3,200.00 $ 238,738.29 $ 146,798.01 $ 2.800.00 Interest $ 2,400.00 Income Before Taxes $ 236,338.29 $ 143,998.01 Tax $ 50,399.30 $ 21,062.75 Net Income (Loss) $ 82,718,40 S 153,619.89 $ 153,619.89 $ 93,598.71 $ 39,118.53 $ (28,402.27) S (43,782.85) S 73,451.02) Dividend $ 93,598.71 $ 39,118.53 2011 2012 2013 2014 | Pro Forma Budget 2010 Income Lane and Shoe Rentals Food & Soda Sales Beer Sales Total Revenues $ $ $ $ $ Cost of Sales Food Alcohol Supplies Coupons and Discounts Total Cost of Sales $ $ $ $ $ Gross Profit $ $ $ $ HA General Expenses Employee Wages Advertising Legal and Audit Licenses and Permits Office Expenses Repairs and Maintenance Utilities Insurance Rent Miscellaneous Total General Expenses $ $ $ $ HA Interest Depreciation & Amortization Operating Income (Loss) $ $ $ $ $ Tax Net Income (Loss) $ $