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Legal Page
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Table of Contents

1.0 Executive Summary....................................................................................................................................1

Chart: Highlights.......................................................................................................................................2
1.1 Objectives................................................................................................................................................2
1.2 Mission....................................................................................................................................................2
1.3 Highlights................................................................................................................................................3
2.0 Company Summary.....................................................................................................................................3
2.1 Company Strategy...................................................................................................................................3
2.2 Company History....................................................................................................................................3
Table: Past Performance...........................................................................................................................3
Chart: Past Performance...........................................................................................................................5
2.3 Risks........................................................................................................................................................5
2.4 Value Proposition....................................................................................................................................5
3.0 Services.......................................................................................................................................................6
3.1 Service Description.................................................................................................................................6
3.2 Technology..............................................................................................................................................6
3.3 Future Services........................................................................................................................................7
4.0 Market Analysis Summary.........................................................................................................................7
4.1 Market Segmentation..............................................................................................................................7
Chart: Market Analysis (Pie)....................................................................................................................8
Table: Market Analysis.............................................................................................................................8
4.2 Service Business Analysis......................................................................................................................8
4.2.1 Competition and Buying Patterns..................................................................................................10
5.0 Strategy and Implementation Summary...................................................................................................11
Table: Sales Forecast..............................................................................................................................11
Chart: Sales Monthly..............................................................................................................................12
5.1 Marketing Strategy................................................................................................................................12
5.1.1 Marketing Programs......................................................................................................................12
5.2 Strategic Alliances................................................................................................................................13
6.0 Management Summary.............................................................................................................................14
Table: Personnel......................................................................................................................................14
7.0 Financial Plan............................................................................................................................................15
7.1 Important Assumptions.........................................................................................................................15
Table: General Assumptions...................................................................................................................15
.....................................................................................................................................................................15
7.2 Break-even Analysis.............................................................................................................................16
Chart: Break-even Analysis....................................................................................................................16
Table: Break-even Analysis....................................................................................................................16
.....................................................................................................................................................................16
7.3 Projected Profit and Loss......................................................................................................................17
Table: Profit and Loss.............................................................................................................................17
.....................................................................................................................................................................17
7.4 Projected Cash Flow.............................................................................................................................18
Page 1

Table of Contents

Table: Cash Flow....................................................................................................................................18

Chart: Cash..............................................................................................................................................19
7.5 Projected Balance Sheet........................................................................................................................20
Table: Balance Sheet...............................................................................................................................20
7.6 Business Ratios.....................................................................................................................................20
Table: Ratios...........................................................................................................................................20
Table: Sales Forecast.........................................................................................................................................1
...........................................................................................................................................................................1
Table: Personnel................................................................................................................................................2
...........................................................................................................................................................................2
Table: General Assumptions.............................................................................................................................3
...........................................................................................................................................................................3
Table: Profit and Loss.......................................................................................................................................4
...........................................................................................................................................................................5
Table: Cash Flow..............................................................................................................................................6
...........................................................................................................................................................................7
Table: Balance Sheet.........................................................................................................................................8

Page 2

City Taxi

1.0 Executive Summary

City Taxi is a San Francisco, CA based company, whose mission is to provide reliable, timely,
and safe cab services by using complete, in-car credit and debit card access, along with
computer-aided dispatch. The company will establish its presence in the industry by acquiring
an existing taxi cab association, Mighty Cab, a family-owned business that was formed 12 years
ago.
City Taxi will provide complete taxi cab services using the latest equipment and technology to
facilitate the travel of individuals in and around the San Francisco area. The company's
products and services show that we are an innovative, forward thinking company that
recognizes the need to move with ever-changing customer needs. At City Taxi, our philosophy
is one that emphasizes service, and a realization that effective communication is a key
component in our business. The company also realizes that, in a competitive environment,
flexibility and professionalism maintain that leading edge.
The company has drivers and employees that are helpful, courteous, and fully trained on the
use of the computer dispatch system. As an added safety measure for both drivers and
passengers, City Taxi cabs are fitted with Global Positioning Systems (GPS), which enable the
cabs to be tracked or located in an emergency. All City Taxi cabs will be clean, well maintained,
and inspected regularly for safety and comfort.
The company's strategy is to build reputation and market share by establishing our business
offering as a viable alternative to existing taxi cab services in the area. The company's goal in
the next year is pursue an aggressive marketing campaign and from that, penetrate at least
65% of the market share. The company's long-term goal is be the top rated ground
transportation company in San Francisco.
The company's emphasis is on the dispatch, mobile data, and credit/debit card markets of the
taxi industry. In aggregate, these markets are believed to represent potential sales in excess of
$119 million as of March 1999. Within these markets, City Taxi will focus on the more lucrative
credit card/debit card segment. This segment, when introduced into any area, has started out
slow but over a three-year period has increased by 20% each year in Maryland and Virginia,
and by 25-35% in New York each year.
Companies with whom City Taxi competes are Transportation, Inc., Capital Cab, Yellow Cab,
and Diamond Cab. Their weaknesses are that they do not have the credit/debit card payment
option, and some still use the radio dispatch system. The company has a competitive
advantage, however, because our technology is unique to the taxi industry in San Francisco.
The GPS will enable the company to provide timely service by giving an accurate estimated
time of arrival (ETA). The credit/debit card feature will give customers convenience and privacy
during the transaction period.
Reliable communications are essential under all circumstances in this business. As such, City
Taxi will use the KDT 5000 system. The KDT 5000 system design provides multiple levels of
reliability to assure communications will be maintained under the most rigorous condition. The
company will also run a state of the art call center that will be established by Rockwell
International.
The company is seeking $2.5 million of financing to fund the acquisition of Mighty Cab
Association and its initial operations. This funding will cover the purchase of Mighty Cab,

Page 1

City Taxi

marketing, purchase of extra vehicles, software, and hardware. Projected revenues for 1999 to
2001 are $200,000, $1.5 million, and $2.2 million, respectively.

Chart: Highlights

Highlights
$2,100,000
$1,800,000
$1,500,000

Sales

$1,200,000

Gross Margin
$900,000

Net Profit
$600,000
$300,000
$0
1999

2000

2001

1.1 Objectives
The company's goal in the next year is to pursue an aggressive marketing campaign and from
that, penetrate at least 65% of the market share. The company's goal in the next two to five
years is be the top rated ground transportation company in the San Francisco Metro Area by
continuously monitoring, evaluating, and following up on customer call-ins.
Key components of City Taxi's initial strategy can be summarized as follows.
Establish Relationship with Rockwell International. The company is currently working to
establish and develop a working relationship with Rockwell International. This will enable City
Taxi to lock into the many services that they offer including, but not limited to:

Managerial
Call center and customer service efficiency
Management consulting
Technology consulting
Product management
Continuous improvement

1.2 Mission
The mission of City Taxi is to provide reliable, timely, and safe cab services by using complete
in-car credit/debit card access, along with computer aided dispatch.

Page 2

City Taxi

1.3 Highlights
Highlights of City Taxi

Technology. City Taxi has a unique Global Positioning System (GPS) that pinpoints the
nearest driver, thus allowing the driver to give an accurate ETA.
Credit/debit card system. This system is the first of its kind in San Francisco and is
convenient for both the passenger and driver because approval is given instantly. The swipe
machine is located in the back seat, giving the passenger privacy.
Trademarks. The company is in the process of registering the name Patriot as a trademark.
Advertising. City Taxi is already in advanced discussions with TCI Media Services to
provide advertising services and market research.
Seasoned management. The company's management is highly experienced and qualified
and has extensive experience in the industry.
Strategic relationships. The company has, and will continue to establish, relationships
with organizations that will enhance professional growth. These alliances are valuable to
City Taxi because they allow us to get updates on technology, added tech support, and a
strong presence in the market.
Exclusive rights to software. City Taxi has the exclusive rights to the latest taxi cab
software in San Francisco.

2.0 Company Summary

Legal Business Description:
City Taxi was founded in 1997 in San Francisco, California, by Mr. Johnson Taylor. The company
is a California C-Corporation under the name Patriot, Inc. d.b.a. City Taxi.
2.1 Company Strategy
The City Taxi's strategy is to saturate the market with television ads depicting the company as
a premier taxi service. The company will leverage the newest in car technology to dominate the
credit card segment of the market. City Taxi will dominate the market because no other
company has this unique feature.
The company's strategy is to build reputation and market share in our target market by
establishing our business offering as a viable alternative to existing taxi cab services. City Taxi
intends to get the confidence of customers and establish itself as a company that provides
superior customer service by using up to date technology to provide timely and reliable
services.
2.2 Company History
As can be seen in the chart and table below, the company performed well its first year, but
sales have not been fully actualized. That is the intent of this plan: to increase sales by utilizing
our competitive advantages and by the acquisition of a rival taxi company.
Table: Past Performance

Page 3

City Taxi

Past Performance
1996

1997

1998

$0
$0
0.00%
$0

$0
$0
0.00%
$0

$100,000
$60,000
60.00%
$20,000

1996

1997

1998

$0
$0
$0

$0
$0
$0

$45,000
$13,400
$58,400

Long-term Assets
Accumulated Depreciation
Total Long-term Assets

$0
$0
$0

$0
$0
$0

$75,000
$10,000
$65,000

Total Assets

$0

$0

$123,400

Accounts Payable
Current Borrowing
Other Current Liabilities (interest free)
Total Current Liabilities

$0
$0
$0
$0

$0
$0
$0
$0

$23,600
$10,000
$25,400
$59,000

Long-term Liabilities
Total Liabilities

$0
$0

$0
$0

$25,000
$84,000

Paid-in Capital
Retained Earnings
Earnings
Total Capital

$0
$0
$0
$0

$0
$0
$0
$0

$37,000
$2,400
$0
$39,400

Total Capital and Liabilities

$0

$0

$123,400

30

Sales
Gross Margin
Gross Margin %
Operating Expenses
Balance Sheet

Current Assets
Cash
Other Current Assets
Total Current Assets
Long-term Assets

Current Liabilities

Other Inputs
Payment Days

Page 4

City Taxi

Chart: Past Performance

Past Performance
$100,000
$90,000
$80,000
$70,000

Sales

$60,000
$50,000

Gross

$40,000

Net

$30,000
$20,000
$10,000
$0
1996

1997

1998

2.3 Risks
The company recognizes that it is subject to both market and technological risks. The
company's view of its risks, as well as how each is being addressed, is as follows:

Lock out in industry for new cab companies. City Taxi is aware that this is an extremely
difficult industry to get into. To mitigate this risk, City Taxi has established an alliance with
the leading cab company in the San Francisco area, Transportation, Inc. The alliance will
allow City Taxi to run under their color scheme. Another way in which the company plans to
mitigate this risk is by acquiring an existing cab company, Mighty Cab.
Acquiring insurance. City Taxi will have to acquire extensive insurance to cover all aspects
of operations, but will be faced with high rates. To lessen this risk, City Taxi plans to use the
relationship with Transportation, Inc. to run under their insurance companies, First
Insurance of San Francisco and Columbia Insurance. Alternatively, the company plans to
purchase insurance from Newark Insurance and Amalgamated Insurance, which offer lower
rates. This will also bring leverage in negotiating with Transportation, Inc.
Adequate facility. City Taxi realizes that it is difficult to locate a facility with the space
required for all operations. City Taxi has found a facility with ample space for all operations.
There is enough room to set up repair facilities, and there is adjacent space to store
vehicles.

2.4 Value Proposition

City Taxi's products and services offer the following advantages to customers:

Convenience. City Taxi's products and services provide the driver and the customer with
the convenience of a credit/debit card system that gives instant approval.
State-of-the-art Call Center. City Taxi's call center allows us to provide a timely service
by picking up the closest vehicle when a call comes in. When a call comes in, it is put into

Page 5

City Taxi

the system, the system sends a message to dispatcher, the system then tags the closest
vehicle in the zone, neighboring zone, on the way to the zone, or the dispatcher can call.
3.0 Services
City Taxi provides taxi services utilizing computer dispatch to help with timely pick up and
quality customer care. The software and hardware systems used by City Taxi give customers
convenience by allowing them to use credit and debit cards in the taxi.
3.1 Service Description
Taxi Cab Services
The taxi driver is often the first contact that a visitor has with San Francisco and as such, City
Taxi realizes the importance of first impressions and customer care. The company's customeroriented philosophy and its commitment to service are reflected in the careful selection of
drivers and the comprehensive training program. Customers can expect the following high
standards when they travel with City Taxi:

Clean and tidy taxis

Friendly and polite drivers
Careful driving
Most practical route taken

Maintenance/Repair Services
This division of City Taxi deals with the pure maintenance of vehicles. Drivers will be charged at
discounted rates for tune-ups, wheel alignments, and other repairs.
3.2 Technology
GLOBAL POSITIONING SYSTEMS. City Taxi has a unique Global Positioning System (GPS)
that pinpoints the nearing driver thus allowing the driver to give an accurate estimated time of
arrival.
RADIO SYSTEM. Reliable communications are essential under all circumstances. City Taxi will
use the KDT 5000 system design because it provides multiple levels of reliability to assure
communications will be maintained under the most rigorous condition.
CREDIT/DEBIT CARD SYSTEM. City Taxi will use the in-car credit/debit card system, which is
a new market segment for the taxi industry in San Francisco. This involves customers using
their debit cards in any City Taxi cab with approval being given instantly, eliminating the need
to dial in to head office for approval numbers. By using this system, the company will be
addressing the need for convenience and reliability. City Taxi also features a computer-aided
dispatch system which will be represented under the Patriot name. The company is currently in
the process of making Patriot a trademark. The company has also applied for a license to run a
490 narrow band frequency and voice data transmission. From the perspective of customers,
the advantage of City Taxi's products and services is the high level of technology, which leads
to superior customer service. In contrast to competitors, City Taxi's products and services offer
convenience. The key pad and swipe machine are built into the back seat, thus giving the
customer privacy. Whereas competitors have to call in a credit/debit card transaction for

Page 6

City Taxi

approval, our customers will be able to get on-the-spot approval before the driver even pulls
over.
3.3 Future Services
City Taxi plans to respond to market needs by following up with taxi plus (wheelchair accessible
taxi vans with credit card access inside) with the next 5 years. City Taxi believes it can capture
this niche and a gain in overall market share. Additional plans for next generation products and
services include rent to own options for our drivers. Introduction of the company's next
generation product and services is expected to be within 12 months.
4.0 Market Analysis Summary
The company's emphasis is on the dispatch, mobile data, and credit/debit card markets of the
taxi industry. In aggregate, these markets are believed to represent potential sales in excess of
$119 million as of March 1999. Within these markets, City Taxi will focus on the more lucrative
credit/debit card segment. This segment, when introduced into any area has started out slow,
but over a three-year period has increased by 20% each year in Maryland and Virginia, and by
25-35% in New York each year.
The company believes that the major future trend in the industry will be complete credit card
access for consumers. The International Taxi Livery Association (ITLA) forecasts a very steady
growth for the taxi industry in the next four years.
Market Size Statistics:
Estimated number of U.S. establishments

6,431

Number of people employed in this industry

49,005

Total annual sales in this industry

$1.34 million

Average employees per establishment

12

Average sales per establishment

$.3 million

4.1 Market Segmentation

Customers and Target Markets
City Taxi's focus will be on the credit card market with target customers in the low to mid
income range in the Metropolitan San Francisco area. The target customers are motivated to
use our services over that of competitors because of the convenience and quality associated
with our services.
Customer Buying Criteria
We believe our customers choose our cab service based on the following criteria:

Performance. We work with one goal in mind: to get customers where they want to go,
when they want to go, promptly, efficiently, comfortably, and safely.
Superior Service. Timely pick up, private usage, and customer care.
Quality. This involves providing courteous service in clean, well-maintained cars.

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City Taxi

Convenience. This involves the credit/debit card feature.

Chart: Market Analysis (Pie)

Market Analysis (Pie)

Credit Card Market

Cash Customers
Other

Table: Market Analysis

Market Analysis

Potential Customers
Credit Card Market
Cash Customers
Other
Total

1999

2000

2001

2002

2003

200,000
100,000
0
300,000

250,000
110,000
0
360,000

312,500
121,000
0
433,500

390,625
133,100
0
523,725

488,281
146,410
0
634,691

Growth
25%
10%
0%
20.60%

CAGR
25.00%
10.00%
0.00%
20.60%

4.2 Service Business Analysis

Market 1-Taxi Cabs
This category covers establishments engaged primarily in furnishing passenger transportation
by automobiles not operated on regular schedules or between fixed terminals. Taxi cab fleet
owners and organizations are included, regardless of whether drivers are hired, rent their cabs,
or are otherwise compensated.
Industry Snapshot
In 1990, U.S. consumers spent an estimated $3.17 billion on taxis. That year, approximately
32,600 were employed in the industry as owners, managers, drivers, dispatchers, or

Page 8

City Taxi

mechanics. Since the mid- 1970's, when a trend toward independent contracting among drivers
developed, three out of every four drivers became independent contractors licensed through,
and renting their vehicles from, the taxi companies. Overall, the U.S. taxi industry consisted of
205,300 vehicles in 1993. Of these, 170,800 were licensed taxis and 16,600 were hired cars,
also referred to as executive sedans or liveries. The remainder was minibuses or vans, many of
which were wheelchair-accessible for transporting the elderly and disabled.
Organization and Structure
Most taxi companies followed a similar organizational pattern. Managers, sometimes the
company owners' ran the business, hired drivers, and performed other administrative duties.
Dispatchers took calls and assigned cabs to passenger locations. The position of dispatcher once
represented a promotion awarded to experienced cab drivers, whose familiarity with the city
best qualified them for the job. However, the increase in computer-based dispatching in the
early 1990's prompted cab companies to favor computer skills over specialized knowledge of
local geography when filing the dispatcher position.
Regulation of the U.S. taxi industry varied from city to city. While almost all cities had some
form of licensing requirements, larger urban areas had the strictest regulations. San Francisco
regulations focused on fares charged to customers, with rates assigned to designated zones of
the city.
Current Conditions
In 1998, 6,342 taxi fleets, consisting of 144,000 cars, were operating in the United States. On a
national level, in the early 1990's, taxi's made approximately 2 billion passenger trips a year.
Most taxi fleets were small, family-owned businesses or individual partnerships; only 5% were
corporations. Almost all operated within a single municipality, and more than half of all taxi
companies had fewer than 10 vehicles. In rural areas, companies tended to be extremely small,
with 1 to 3 cars available for customers. In cities of 100,000 people, the average fleet size was
20 cars. In urban centers of 200,000 or more people, cab companies retained hundreds of cars
and carried more passengers than the multitude of smaller companies combined.
Research and Technology
Although the taxi cab industry was not regarded as demanding in a high degree of technology,
several innovations have changed the way businesses operate. Computerized dispatching--in
which cabs were tracked by computer and dispatch instructions appeared only to the cab
assigned to a call--allowed more efficient assignment of cabs to passengers. Computerization
also helped remedy the problem of "fare stealing," in which one driver intercepts a message
meant for another and picks up the first driver's fare.
Another development likely to change the industry's focus involved its use of certain radio
frequencies. In the late 1980's and early 1990's, with investment in cellular and digital
communications skyrocketing, taxi cab companies found themselves in possession of a valuable
asset in the form of the broadcast frequencies granted them by the Federal Communications
Commission. During this time, the FCC, allowing them only two frequencies in any one area,
heavily restricted the cellular telephone industry's use of the airwaves. By the mid-1990's,
some cab-related services, such as New Jersey's dispatcher Fleet Call, were in a strong position
to become players in the burgeoning telecommunications industry.
Industry Leaders

Page 9

City Taxi

Due to increasing decentralization in the industry, few national taxi corporations were in
operation in the early 1990's. A few companies, however, many of which were owned by larger
holding corporations, had operations that reached beyond the local. Figure 1 shows the industry
leaders in the San Francisco area and their share of the market.
Figure 1 Breakdown of Market Share in San Francisco.
Company

Market Share

Transportation, Inc.

38%

Capital Cab

23%

Yellow Cab

13%

Diamond Cab

8%

Others

18%

Total

100%

Market 2- Taxi top Display

Taxi top display is a market from which City Taxi can gain a substantial amount of revenue.
This has been shown to be a viable means of advertising for a number of companies and it is
used widely. Figure 2 shows the growth in the taxi top display market segment from 1993.
1994

1995

1996

1997

3/1998

600

1,670

2,000

3,500

5,000

4.2.1 Competition and Buying Patterns

Competitive threats come from existing taxi cab companies in the San Francisco area. Their
weaknesses are, however, that they do not have the credit/debit card payment option, and
some still use the radio dispatch system. Transportation, Inc. has computer-aided dispatch but
no credit card processing capabilities. Capital Cab, Yellow Cab, and Diamond Cab all have radio
dispatch with selected drivers accepting credit cards. However, these drivers do not offer in-car
processing, approval must be given at the home office.
Taxi Cabs. City Taxi's competitors include existing taxi cab companies that have been
operating in the San Francisco area. Specifically, competitors include:

Transportation, Inc. is a family owned company that has been in business for 20 years. The
company, run by Mr. John Brown, is considered an industry leader in the field of taxi cab
services. The company also owns a real estate agency, and 2 insurance companies which
work hand in hand with the taxi business. They lease facilities to other cab companies as
well. The company has a fleet of 1,200 cars, with half under the driver-owner program and
the other half company owned.
Yellow Cab was founded 25 years ago, its president is Mr. Michael White. Yellow Cab has a
fleet of 2,200 cabs, most of which are driver-owned. The company still uses the radio
dispatch system and one third of their fleet is equipped with the credit/debit card feature.
The drawback to their system is that approval for any transaction takes place in their home
office.

Page 10

City Taxi

Diamond Cab is owned and operated by Mr. Jay Newman. The company uses the radio
dispatch system and has a fleet of approximately 800 cabs.
Town Cab is an organization run by Mr. Pete Whitehead. The company uses the radio
dispatch system and has a fleet of 800 cabs.

City Taxi's competitive advantage is our cutting edge technology which is unique to the taxi
industry in San Francisco. The GPS will enable City Taxi to provide timely service by giving an
accurate ETA. The credit/debit card feature will give our customers convenience and privacy
during the transaction period.
Maintenance and Repair Services. City Taxi's competitors include the above mentioned
companies and general maintenance and repair shops in the area. Some of these operations do
not have the capacity to handle a large amount of vehicles. While others may have the
capacity, their operations are run in a primitive manner, and City Taxi intends to capitalize on
that.
City Taxi's competitive advantages include the availability of space, operations management,
and skilled employees.
5.0 Strategy and Implementation Summary
Sales Strategy
At City Taxi, the sales process is the same for each of City Taxi's two areas: taxi cab services
and maintenance and repair services. The company intends to establish its presence online by
developing a website from which sales will be generated. The District of Columbia Cab
Commission regulates pricing for taxi cab services.
Table: Sales Forecast

Sales Forecast
1999

2000

2001

$200,000
$0
$200,000

$1,500,000
$0
$1,500,000

$2,200,000
$0
$2,200,000

1999
$65,000
$0
$65,000

2000
$125,000
$0
$125,000

2001
$100,000
$0
$100,000

Sales
All services
Other
Total Sales
Direct Cost of Sales
All services
Other
Subtotal Direct Cost of Sales

Page 11

City Taxi

Chart: Sales Monthly

Sales Monthly
$16,000
$14,000
$12,000
$10,000

All services

$8,000

Other

$6,000
$4,000
$2,000
$0
Jan

Mar
Feb

May
Apr

Jul
Jun

Sep
Aug

Nov
Oct

Dec

5.1 Marketing Strategy

Marketing Strategy
City Taxi markets its products and services as solutions to transportation needs in the city of
San Francisco. Other target markets include customers in the low to mid income range. Direct
mailings and television advertising will be the company's main marketing channels. These
channels ensure that target customers are reached repeatedly and effectively. The company
will monitor its market position through constant tracking by Value Pack and TCI Media, Inc.
TCI Media Services - The proposed advertising package, titled "The Championship," will yield:

One commercial in every regular season NBA game on TNT for the 1999-2000 season
One commercial in 2000; 1999-2000 regular season Wizard games on HTS
900 6 a.m. - 12 a.m. commercials on a minimum of 4 networks
Ads on the TV guide channel

5.1.1 Marketing Programs

City Taxi plans to communicate through direct mail and television advertising to generate sales.
TCI MEDIA Services and Val-Pak Direct Marketing will spearhead the marketing campaign. The
key message associated with our products and services is cleaner, efficient, flexible, and
convenient taxi cabs.
Additional Plans--The company also has additional promotional plans which are diverse and
include a range of marketing communications described below:

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City Taxi

Trade shows: company representatives will attend and participate in several trade shows
to keep up with changes in the industry.

Print advertising and article publishing : the company's print advertising program will
include advertisements in local newspapers and local journal publications like the San
Francisco Magazine. City Taxi will feature articles on services provided in the above
mentioned publications.
Val-Pak Direct Marketing: the challenge of any direct marketer is to take a massive
amount of amorphous data and create tailored messages to targeted market segments.
Perhaps no company is more familiar with that challenge than Florida-based Val-Pak Direct
Marketing, a leader in local, cooperative direct mail advertising. More than 53 million
households in the United States receive Val-Pak coupons in their mailbox. In 1997, Val-Pak
designed, printed and distributed more than 11 billion incentive coupons promoting various
products and services. Val-Pak targets as few as 10,000 households or as many as 53
million with any given mailing.

5.2 Strategic Alliances

The company has strategic alliances with King Communications, Surfside Systems, and
Commercial Electronic Services. These alliances are valuable to City Taxi because they allow the
company to get updates on technology and added tech support, and they are valuable to the
ally firms because City Taxi is a growing customer. All agreements come with a stipulation that
if new technology becomes available, City Taxi will be notified and provided with the technology
to expand on current technology, helping us maintain a competitive edge. Details of the
strategic relationships that City Taxi has are given below.

International Taxi cab and Livery Association (ITLA). ITLA is a non-profit association
that represents the private, for-profit ground transpiration industry. City Taxi will use the
resources made available by ITLA to get the latest industry trends and trade show
information. ITLA conducts a variety of research projects on industry issues and the results
of these studies are summarized in ITLA publications and made available to association
members at a reduced fee.
Rockwell International. Rockwell International has been brought in to help develop the
call center and aid with the development of superior customer service techniques. City Taxi
will work with Rockwell International in the setup of a cost efficient but productive call
center.
TCI Media, Inc. Currently, City Taxi is under a verbal agreement with TCI Media, Inc. to
market its product and services through various cable networks.
Surfside Systems. Surfside Systems will be the company's supplier of dispatch software
and CAD software.
King Communications. King Communications will be the company's supplier of mobile data
and in-car credit/debit card processing equipment hardware. King Communications has
made a commitment and guarantee that they will provide interface to Surfside Systems.
Transportation, Inc. This alliance is a business relationship between Jerry Schafer
(Transportation, Inc.) and Johnson Taylor (City Taxi). Transportation, Inc. is a competitor,
but the relationship allows City Taxi to learn from their 20-year experience in the business
and to overcome the shortfalls they have experienced.
Barwood, Inc. Barwood will be the company's source of used taxis when the need to add
to our fleet arises.
Val-Pak Direct Marketing. Val-Pak is a full-service marketing company that offers a
simple, cost-effective way of increasing business. Val-Pak pioneered local cooperative direct

Page 13

City Taxi

mail in 1968, and has been the industry leader for over 30 years. The relationship gives us
access to their powerful, cost effective variety of advertising formats allowing us to develop
a direct mail program that is right for our business.
Commercial Electronics Services (CES). CES is a supplier of advanced technology
systems used in taxi cabs. The relationship will allow City Taxi to get the latest technology
and the benefit of their excellent tech support. All systems are connected to their offices
and given a serial number, that way, they are able to locate the system, evaluate the
problem, and fix it right away.
Mighty Cab Body Shop. The owner of Mighty Cab also owns a body shop. City Taxi will
seek to establish a relationship with it for body work and towing services.

6.0 Management Summary

Organization
The company's management philosophy is based on responsibility and mutual respect. City Taxi
has an environment and structure that encourages productivity and respect for customers and
fellow employees.
The City Taxi team is organized into two groups:
Taxi Cabs. The taxi cabs division will consist of the fleet of taxis, driver owned and company
owned, the call center, and administration. Overall, City Taxi will have approximately 20
employees in this division. The management of all daily operations within City Taxi will be
handled in this division. Mr. Taylor, the CEO, will be responsible for the purchase of vehicles
and dealing with vendors and suppliers. There will be 10 to 20 employees in the call center,
three supervisors, three dispatchers, an office manager, a data entry clerk, and an employee
responsible for accounts receivables/payables.

1. Maintenance and Repair Services. This division will deal with the maintenance of

vehicles. Drivers will be charged at discounted rates for tune-ups, wheel alignments, and
other repairs. This division will be staffed with seven employees to begin with.

Officers and Key Employees

City Taxi's management is highly experienced and qualified. Key members of City Taxi's
management teams, their backgrounds, and responsibilities are as follows.

Mr. Johnson Taylor, President and CEO.

Mr. Peter Jackson, Senior Vice President - Operations.
Ms. Glenda Jones, Call Center Supervisor.

Table: Personnel

Personnel Plan
Taxi Cabs & Administrative
Maintenance & Repair
Total People

1999

2000

2001

$108,696
$108,695
8

$365,217
$156,522
17

$395,652
$169,565
20

Page 14

City Taxi

Total Payroll

$217,391

$521,739

$565,217

7.0 Financial Plan

The company is seeking $2.5 million of financing to fund the acquisition of Mighty Cab
Association and its initial operations. This funding will cover the purchase of Mighty Cab,
marketing, purchase of extra vehicles, software, and hardware.
7.1 Important Assumptions
The table below shows the key assumptions for City Taxi.
Table: General Assumptions

General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other

1999

2000

2001

1
10.00%
10.00%
25.42%
0

2
10.00%
10.00%
25.00%
0

3
10.00%
10.00%
25.42%
0

Page 15

City Taxi

7.2 Break-even Analysis

City Taxi's Break-even Analysis indicates that the firm has a strong balance of costs and sales.
The company estimates a monthly break-even sales volume of approximately $43,000, which
will be reached by Fiscal Year (FY) 2000.

Chart: Break-even Analysis

Break-even Analysis
$20,000
$15,000
$10,000
$5,000
$0
($5,000)
($10,000)
($15,000)
($20,000)
($25,000)
$0
$7,000

$14,000
$28,000
$42,000
$56,000
$70,000
$21,000
$35,000
$49,000
$63,000
$77,000

Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even

$43,333

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

32%
$29,250

Page 16

City Taxi

7.3 Projected Profit and Loss

City Taxi is in the early stage of development, thus initial projections have only been made on
accounts that are believed to most drive the income statement.
Table: Profit and Loss

Pro Forma Profit and Loss

1999

2000

2001

Sales
Direct Cost of Sales
Other
Total Cost of Sales

$200,000
$65,000
$5,000
$70,000

$1,500,000
$125,000
$10,000
$135,000

$2,200,000
$100,000
$15,000
$115,000

Gross Margin
Gross Margin %

$130,000
65.00%

$1,365,000
91.00%

$2,085,000
94.77%

Payroll
Sales and Marketing and Other Expenses
Depreciation
Research & Development
Utilities
Insurance
Payroll Taxes
Other

$217,391
$64,000
$14,997
$15,000
$2,000
$5,000
$32,609
$0

$521,739
$164,000
$17,500
$25,000
$2,000
$5,000
$78,261
$0

$565,217
$214,000
$17,500
$40,000
$2,000
$5,000
$84,783
$0

Total Operating Expenses

$350,997

$813,500

$928,500

Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred

($220,997)
($206,000)
$3,337
$0

$551,500
$569,000
$2,841
$137,165

$1,156,500
$1,174,000
$2,084
$293,414

Net Profit
Net Profit/Sales

($224,334)
-112.17%

$411,494
27.43%

$861,002
39.14%

Expenses

Page 17

City Taxi

7.4 Projected Cash Flow

The table below outlines the company's cash flows for FY 1999-2001. The required $2.5 million
will be spent to acquire Mighty Cab's operations ($1.25 million), as well as to purchase
additional property ($250,000) and equipment ($200,000). An additional $500,000 will be
spent on other short-term assets.
Table: Cash Flow

Pro Forma Cash Flow

1999

2000

2001

$200,000
$200,000

$1,500,000
$1,500,000

$2,200,000
$2,200,000

$0
$0
$0
$0
$0
$0
$2,500,000
$2,700,000

$0
$0
$0
$0
$0
$0
$0
$1,500,000

$0
$0
$0
$0
$0
$0
$0
$2,200,000

1999

2000

2001

$217,391
$200,095
$417,486

$521,739
$519,573
$1,041,312

$565,217
$739,266
$1,304,483

$0
$3,000
$0
$0
$500,000
$1,700,000
$0
$2,620,486

$0
$3,000
$0
$4,181
$0
$0
$0
$1,048,493

$0
$3,000
$0
$4,951
$0
$0
$0
$1,312,434

$79,514
$124,514

$451,507
$576,021

$887,566
$1,463,587

Cash Received

Cash from Operations

Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance

Page 18

City Taxi

Chart: Cash

Cash
$300,000
$270,000
$240,000
$210,000
$180,000
$150,000

Net Cash Flow

$120,000

Cash Balance

$90,000
$60,000
$30,000

Dec

Nov

Oct

Sep

Aug

Jul

Jun

May

Apr

Mar

Feb

Jan

$0

Page 19

City Taxi

7.5 Projected Balance Sheet

The table below provides City Taxi's actual and projected balance sheets for 1999-2001.
Table: Balance Sheet

Pro Forma Balance Sheet

1999

2000

2001

$124,514
$513,400
$637,914

$576,021
$513,400
$1,089,421

$1,463,587
$513,400
$1,976,987

$1,775,000
$24,997
$1,750,003
$2,387,917

$1,775,000
$42,497
$1,732,503
$2,821,924

$1,775,000
$59,997
$1,715,003
$3,691,990

1999

2000

2001

Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$15,451
$7,000
$25,400
$47,851

$45,145
$4,000
$25,400
$74,545

$62,160
$1,000
$25,400
$88,560

Long-term Liabilities
Total Liabilities

$25,000
$72,851

$20,819
$95,364

$15,868
$104,428

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital

$2,537,000
$2,400
($224,334)
$2,315,066
$2,387,917

$2,537,000
($221,934)
$411,494
$2,726,560
$2,821,924

$2,537,000
$189,560
$861,002
$3,587,562
$3,691,990

Net Worth

$2,315,066

$2,726,560

$3,587,562

Assets

Current Assets
Cash
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities

7.6 Business Ratios

The following table contains important business ratios from the taxi cab industry, as determined
by the Standard Industry Classification (SIC) Index #4121, Taxi Cabs.
Table: Ratios

Ratio Analysis
Sales Growth

1999

2000

2001

Industry Profile

100.00%

650.00%

46.67%

0.50%

Page 20

City Taxi

Percent of Total Assets

Other Current Assets
Total Current Assets
Long-term Assets
Total Assets

21.50%
26.71%
73.29%
100.00%

18.19%
38.61%
61.39%
100.00%

13.91%
53.55%
46.45%
100.00%

45.90%
63.00%
37.00%
100.00%

Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth

2.00%
1.05%
3.05%
96.95%

2.64%
0.74%
3.38%
96.62%

2.40%
0.43%
2.83%
97.17%

29.10%
27.00%
56.10%
43.90%

100.00%
65.00%
177.25%
25.00%
-110.50%

100.00%
91.00%
63.59%
10.00%
36.77%

100.00%
94.77%
55.44%
9.09%
52.57%

100.00%
82.50%
58.00%
1.00%
2.60%

13.33
13.33
3.05%
-9.69%
-9.39%

14.61
14.61
3.38%
20.12%
19.44%

22.32
22.32
2.83%
32.18%
31.27%

1.58
1.22
56.10%
3.60%
8.10%

Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Additional Ratios

1999

2000

2001

Net Profit Margin

Return on Equity

-112.17%
-9.69%

27.43%
15.09%

39.14%
24.00%

n.a
n.a

12.42
31
0.08

12.17
20
0.53

12.17
26
0.60

n.a
n.a
n.a

0.03
0.66

0.03
0.78

0.03
0.85

n.a
n.a

$590,063
-66.22

$1,014,876
194.13

$1,888,427
554.85

n.a
n.a

11.94
2%
13.33
0.09
0.00

1.88
3%
14.61
0.55
0.00

1.68
2%
22.32
0.61
0.00

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

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

Page 21

Appendix
Table: Sales Forecast

Sales Forecast
Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Sales
All services
Other
Total Sales

Direct Cost of Sales

All services
Other
Subtotal Direct Cost of Sales

0%
0%

$16,667
$0

$16,667
$0

$16,667
$0

$16,667
$0

$16,667
$0

$16,667
$0

$16,667
$0

$16,667
$0

$16,667
$0

$16,667
$0

$16,667
$0

$16,667
$0

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

$5,417

$5,417

$5,417

$5,417

$5,417

$5,417

$5,417

$5,417

$5,417

$5,417

$5,417

$5,417

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$5,417

$5,417

$5,417

$5,417

$5,417

$5,417

$5,417

$5,417

$5,417

$5,417

$5,417

$5,417

Page 1

Appendix
Table: Personnel

Personnel Plan
Jan
Taxi Cabs & Administrative
Maintenance & Repair
Total People

Total Payroll

0%
0%

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

$9,058
$9,057

$9,058
$9,058

$9,058
$9,058

$9,058
$9,058

$9,058
$9,058

$9,058
$9,058

$9,058
$9,058

$9,058
$9,058

$9,058
$9,058

$9,058
$9,058

$9,058
$9,058

$9,058
$9,058

$18,115

$18,116

$18,116

$18,116

$18,116

$18,116

$18,116

$18,116

$18,116

$18,116

$18,116

$18,116

Page 2

Appendix
Table: General Assumptions

General Assumptions
Jan
Plan Month

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

10

11

12

Current Interest Rate

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Long-term Interest Rate

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Tax Rate

30.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

Other

Feb

Page 3

Appendix
Table: Profit and Loss

Pro Forma Profit and Loss

Jan
Sales
Direct Cost of Sales
Other
Total Cost of Sales

Gross Margin
Gross Margin %

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$5,417

$5,417

$5,417

$5,417

$5,417

$5,417

$5,417

$5,417

$5,417

$5,417

$5,417

$5,417

$417

$417

$417

$417

$417

$417

$417

$417

$417

$417

$417

$417

$5,833

$5,833

$5,833

$5,833

$5,833

$5,833

$5,833

$5,833

$5,833

$5,833

$5,833

$5,833

$10,833

$10,833

$10,833

$10,833

$10,833

$10,833

$10,833

$10,833

$10,833

$10,833

$10,833

$10,833

65.00%

65.00%

65.00%

65.00%

65.00%

65.00%

65.00%

65.00%

65.00%

65.00%

65.00%

65.00%

$18,115

$18,116

$18,116

$18,116

$18,116

$18,116

$18,116

$18,116

$18,116

$18,116

$18,116

$18,116

$5,333

$5,333

$5,333

$5,333

$5,333

$5,333

$5,333

$5,333

$5,333

$5,333

$5,333

$5,333

$625

$625

$625

$1,458

$1,458

$1,458

$1,458

$1,458

$1,458

$1,458

$1,458

$1,458

$1,250

$1,250

$1,250

$1,250

$1,250

$1,250

$1,250

$1,250

$1,250

$1,250

$1,250

$1,250

$167

$167

$167

$167

$167

$167

$167

$167

$167

$167

$167

$167

Expenses
Payroll
Sales and Marketing and
Other Expenses
Depreciation
Research & Development
Utilities
Insurance

$417

$417

$417

$417

$417

$417

$417

$417

$417

$417

$417

$417

$2,717

$2,717

$2,717

$2,717

$2,717

$2,717

$2,717

$2,717

$2,717

$2,717

$2,717

$2,717

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Operating Expenses

$28,624

$28,625

$28,625

$29,458

$29,458

$29,458

$29,458

$29,458

$29,458

$29,458

$29,458

$29,458

Profit Before Interest and

Taxes

($17,791)

($17,792)

($17,792)

($18,625)

($18,625)

($18,625)

($18,625)

($18,625)

($18,625)

($18,625)

($18,625)

($18,625)

EBITDA

($17,166)

($17,167)

($17,167)

($17,167)

($17,167)

($17,167)

($17,167)

($17,167)

($17,167)

($17,167)

($17,167)

($17,167)

Payroll Taxes
Other

Interest Expense
Taxes Incurred

15%

$290

$288

$285

$283

$281

$279

$277

$275

$273

$271

$269

$267

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Net Profit

($18,080)

($18,079)

($18,077)

($18,908)

($18,906)

($18,904)

($18,902)

($18,900)

($18,898)

($18,896)

($18,893)

($18,891)

Net Profit/Sales

-108.48%

-108.48%

-108.46%

-113.45%

-113.44%

-113.42%

-113.41%

-113.40%

-113.39%

-113.37%

-113.36%

-113.35%

Page 4

Appendix

Page 5

Appendix
Table: Cash Flow

Pro Forma Cash Flow

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Cash Received

Cash from Operations

Cash Sales

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

Subtotal Cash from Operations

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

Additional Cash Received

Sales Tax, VAT, HST/GST Received

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Current Borrowing

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Other Liabilities (interest-free)

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Long-term Liabilities

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales of Other Current Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales of Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Investment Received

Subtotal Cash Received

Expenditures

0.00%

$0

$0 $2,500,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$16,667

$16,667 $2,516,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Expenditures from Operations

Cash Spending

$18,115

$18,116

$18,116

$18,116

$18,116

$18,116

$18,116

$18,116

$18,116

$18,116

$18,116

$18,116

Bill Payments

$24,134

$16,007

$16,005

$16,003

$16,001

$15,999

$15,996

$15,994

$15,992

$15,990

$15,988

$15,986

Subtotal Spent on Operations

$42,249

$34,123

$34,121

$34,119

$34,117

$34,115

$34,112

$34,110

$34,108

$34,106

$34,104

$34,102

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

Other Liabilities Principal Repayment

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Long-term Liabilities Principal

Repayment

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Purchase Other Current Assets

$0

$0

$500,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

Purchase Long-term Assets

$0

$0 $1,700,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current
Borrowing

Page 6

Appendix
Dividends
Subtotal Cash Spent

$0
$42,499

Net Cash Flow

($25,832)

Cash Balance

$19,168

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$34,373 $2,234,371

$0

$34,369

$34,367

$34,365

$34,362

$34,360

$34,358

$34,356

$34,354

$34,352

$282,296

($17,702)

($17,700)

($17,698)

($17,696)

($17,694)

($17,692)

($17,690)

($17,687)

($17,685)

$283,758

$266,056

$248,356

$230,658

$212,962

$195,268

$177,577

$159,887

$142,200

$124,514

($17,706)
$1,462

Page 7

Appendix
Table: Balance Sheet

Pro Forma Balance Sheet

Jan
Assets

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Starting Balances

Current Assets
Cash
Other Current Assets
Total Current Assets

$45,000
$13,400
$58,400

$19,168
$13,400
$32,568

$1,462
$13,400
$14,862

$283,758
$513,400
$797,158

$266,056
$513,400
$779,456

$248,356
$513,400
$761,756

$230,658
$513,400
$744,058

$212,962
$513,400
$726,362

$195,268
$513,400
$708,668

$177,577
$513,400
$690,977

$159,887
$513,400
$673,287

$142,200
$513,400
$655,600

$124,514
$513,400
$637,914

$75,000
$10,000
$65,000
$123,400

$75,000
$10,625
$64,375
$96,943

$75,000 $1,775,000 $1,775,000 $1,775,000 $1,775,000 $1,775,000 $1,775,000 $1,775,000 $1,775,000 $1,775,000 $1,775,000
$11,250
$11,875
$13,333
$14,791
$16,249
$17,707
$19,165
$20,623
$22,081
$23,539
$24,997
$63,750 $1,763,125 $1,761,667 $1,760,209 $1,758,751 $1,757,293 $1,755,835 $1,754,377 $1,752,919 $1,751,461 $1,750,003
$78,612 $2,560,283 $2,541,123 $2,521,965 $2,502,809 $2,483,655 $2,464,503 $2,445,354 $2,426,206 $2,407,061 $2,387,917

Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

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

$23,600
$10,000
$25,400
$59,000

$15,473
$9,750
$25,400
$50,623

$15,471
$9,500
$25,400
$50,371

$15,469
$9,250
$25,400
$50,119

$15,467
$9,000
$25,400
$49,867

$15,465
$8,750
$25,400
$49,615

$15,463
$8,500
$25,400
$49,363

$15,461
$8,250
$25,400
$49,111

$15,459
$8,000
$25,400
$48,859

$15,457
$7,750
$25,400
$48,607

$15,455
$7,500
$25,400
$48,355

$15,453
$7,250
$25,400
$48,103

$15,451
$7,000
$25,400
$47,851

Long-term Liabilities
Total Liabilities

$25,000
$84,000

$25,000
$75,623

$25,000
$75,371

$25,000
$75,119

$25,000
$74,867

$25,000
$74,615

$25,000
$74,363

$25,000
$74,111

$25,000
$73,859

$25,000
$73,607

$25,000
$73,355

$25,000
$73,103

$25,000
$72,851

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

$37,000
$2,400
$0
$39,400
$123,400

$37,000
$2,400
($18,080)
$21,320
$96,943

$39,400

$21,320

$37,000 $2,537,000 $2,537,000 $2,537,000 $2,537,000 $2,537,000 $2,537,000 $2,537,000 $2,537,000 $2,537,000 $2,537,000
$2,400
$2,400
$2,400
$2,400
$2,400
$2,400
$2,400
$2,400
$2,400
$2,400
$2,400
($36,159)
($54,237)
($73,145)
($92,051) ($110,954) ($129,856) ($148,756) ($167,654) ($186,549) ($205,443) ($224,334)
$3,241 $2,485,163 $2,466,255 $2,447,349 $2,428,446 $2,409,544 $2,390,644 $2,371,746 $2,352,851 $2,333,957 $2,315,066
$78,612 $2,560,283 $2,541,123 $2,521,965 $2,502,809 $2,483,655 $2,464,503 $2,445,354 $2,426,206 $2,407,061 $2,387,917
$3,241 $2,485,163 $2,466,255 $2,447,349 $2,428,446 $2,409,544 $2,390,644 $2,371,746 $2,352,851 $2,333,957 $2,315,066

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