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		YEAR 1	YEAR 2	YEAR 3	YEAR 4	YEAR 5
*ROUND TO TWO DECIMAL PLACES
CURRENT RATIO
AVERAGE COLLECTION PERIOD
PAYABLES TURNOVER
TOTAL ASSET TURNOVER
DEBT RATIO
TIMES INTEREST EARNED
GROSS PROFIT MARGIN
NET PROFIT MARGIN
RETURN ON EQUITY

FORECASTED INCOME STATEMENT
		YEAR 1	YEAR 2	YEAR 3	YEAR 4	YEAR 5
Revenue		150,000	154,500	159,135	167,092	175,446
Cost of Sales		(67,500)	69,525	71,611	75,191	78,951
Gross Margin		82,500	84,975	87,524	91,900	96,495
Operating Expenses
Advertising		6,000	6,180	6,365	6,684	7,018
Equipment Rental		6,000	6,000	9,000	9,000	9,000
Wages		9,600	9,600	9,600	14,400	14,400
Office Rent		14,400	14,400	14,400	14,400	14,400
Utilities		3,600	3,600	3,600	3,600	3,600
Insurance Expense				4,000	4,000	4,000
Depreciation		3,000	3,000	3,000	3,000	3,000
Operating Income		39,900	42,195	37,559	36,817	41,078
Interest Expense		1,800	1,200	600
Income before taxes		38,100	40,995	36,959	36,817	41,078
Income taxes		13,335	14,348	12,936	12,886	14,377
Net Income		24,765	26,647	24,023	23,931	26,700

FORECASTED BALANCE SHEET
		YEAR 1	YEAR 2	YEAR 3	YEAR 4	YEAR 5
Assets
Cash		101,400	99,960
Accounts Receivable		10,000	12,000	8,000	6,000	10,000
Prepaid Insurance			12,000
Current Assets		111,400	123,960	8,000	6,000	10,000
Furniture & Fixtures (net)		15000	15000	12000	11000	10000
Equipment (net)		2,000	10,000	4,000	2,000
Total Assets		133,400	142,960	156,971	162,252	194,444
Liabilities
Accounts payable		2,000	4,000	5,000	6,000	9,000
Customer deposits		1,500	2,000	3,000	4,000	5,000
Interest payable		1,800	1,200	600
Taxes payable		13,335	14,348	12,936	12,886	14,377
Current Liabilities		38,635	21,548	21,536	22,886	28,377
Bank loan		40,000	40,000	20,000
Total Liabilities		78,635	61,548	41,536	22,886	28,377
Stockholder's Equity
Capital		30,000	30,000	40,000	40,000	40,000
Retained Earnings		24,765	51,412	75,435	99,366	126,066
Total Stockholder's Equity		54,765	81,412	115,435	139,366	166,066
Total Liabilities & Stockholder's Equity		133,400	142,960	156,971	162,252	194,444

First year sales are projected to be $150,000 and grow 3% for the next two years and 5% in year 4 and 5.

Cost of sales are projected to be 45% of revenue in the first year and is expected to grow at the same rate as sales.

Advertising expenses are projected to be 4% of each years projected revenue.

Janelle will need to rent equipment for the events she puts on. She has an agreement with a rental company for a flat rate of $500 per month and is sufficient to cover all of her estimated events. Starting in Year 3, she expects to be able to handle more events and the rental rate will increase to $750 per month.

Janelle plans to start off by hiring 2 people to work the events with her. Each person will be paid $100 per event and is expected to work 4 events per month. After Year 3, Janelle plans to hire 2 additional people. (At this point, each person will be paid $100 per event and is expected to work 3 events per month).

Office rent is estimated to be a flat rate of $1,200 per month.

Utilities for the rented office space are estimated to be $300 per month.

The office space Janelle plans to rent is unfurnished. She plans to purchase $15,000 worth of furniture and fixtures at the beginning of Year 1. The furniture and fixtures will have a useful life of 15 years. Janelle will also need to buy some computers and other office equipment that she will purchase for $10,000 also at the beginning of Year 1. The office equipment will have a useful life of 5 years. Both the furniture and fixtures as well as the equipment will be depreciated on a straight-line basis (Assume zero salvage value for calculations). HINT: Fixed Assets Accumulated Depreciation = Net Fixed Assets

Janelle is asking for a 3-year bank loan for $60,000 to be funded on Day1 of Year 1. The estimated interest on the loan is 3% (assume simple interest). She will pay the loan back in $20,000 installments starting in Year 2. Interest is due at the end of each year and paid in January of the following year. (Assume interest is paid on the principal balance still outstanding at year-end).

The tax rate for JH Events is 35%. Taxes for the year just ended are payed in the first quarter of the following year.

Janelle will invest $30,000 of her own money and from family and friends, before the beginning of the year, to start the business. This $30,000 investment of capital is also the beginning bank balance of Year 1.

At the end of Year 2, Janelle will purchase an insurance policy to help cover the business. The policy has a term of 3 years and coverage starts at the beginning of Year 3. The policy costs $12,000.

During Year 3, Janelle plans to personally invest $10,000 of additional capital into the business.