Stuart Reid, Executive Director, Food Co-op Initiative (FCI), presented to start-up staff, steering committee, and Board members at NFCA's Sixth Annual Meeting. This presentation reviews some of the most important financial tools that every start-up food co-op needs. This includes Sources & Uses budget, financial pro formas, and market studies, and focus on how to understand these tools and use the information to strengthen your co-op's plans.

1. Financial Planning
Tools for Food Co-ops
NFCA Annual Mee8ng, 2017
www.foodcoopini8a8ve.coop
Stuart Reid, Execu8ve Director
507-581-0170 | stuart@fci.coop

2. Financial Planning Toolbox
n Project Budgets
n Sources & Uses Budget
n Market Study
n Financial Projec8ons

3. Where do you get the numbers?
n Market Study
n Local research
n CoCoFiSt

4. CoMetrics & CoCoFiSt
n Common Coopera8ve Financial Statements (CoCoFiSt)
n Standardized repor8ng
n Benchmarks
n Confiden8ality and its implica8ons
n Accepted accoun8ng norms and repor8ng formats
n Na8onal Co+op Grocers requires CoCoFiSt par8cipa8on
n Coopera8ve lending organiza8ons prefer these formats

5. How does CoCoFiSt work?
n CoMetrics maps your company’s Chart of Accounts to a Common
Chart of Accounts.
n You upload your trial balances using their secured website.
n You provide any required non-financial data either by upload or
survey form.
n Your financial management reports and tools are available to
download.

6. Standardiza8on

7. Project Budgets
n Incorpora8on
n Community outreach
n Owner recruitment campaigns
n Capital campaign
n GM Hiring

8. Preliminary Market Study

9. Sources & Uses
9

10. Bill Gessner
Creator of the S&U Template

11. Sources & Uses Template
Start-Up Natural Food Co-op: Date: Mar 7 2016 Notes:
Quick Start Sources & Uses Budget:
Drafted and Updated by Bill Gessner, CDS Consulting
Co-op, 612-823-4509, BillGessner@cdsconsulting.coop
Most cells are generated by formulas. Fill in cells in yellow to see your new totals.
All costs are ballpark estimates, based on knowledge of
prior projects and market rates. Costs will increase over
time.
Key Assumptions: This scenario assumes a lease, not a purchase
retail square feet 4000 retail is typically 62 - 68% of total space
total square feet 6000

12. Assump8ons: Store Size
Key Assumptions: This scenario assumes a lease, not a purchase
retail square feet 4000 retail is typically 62 - 68% of total space
total square feet 6000
Projected Sales $2,000,000 $500
$500/retail sq. ft is an initial projection prior to a
market analysis, to be adjusted following a
professional market/site/location analysis
Key Assumptions: This scenario assumes a lease, not a purchase
retail square feet 7000 retail is typically 62 - 68% of total space
total square feet 10000
Projected Sales $3,500,000 $500
$500/retail sq. ft is an initial projection prior to a
market analysis, to be adjusted following a
professional market/site/location analysis

13. Assump8ons
Key Assumptions: This scenario assumes a lease, not a purchase
retail square feet 4000 retail is typically 62 - 68% of total space
total square feet 6000
Projected Sales $2,000,000 $500
$500/retail sq. ft is an initial projection prior to a market
analysis, to be adjusted following a professional market/site/
location analysis
Lease Rate/sq ft, triple net $12.00
Leased site at triple net. Rates vary greatly. Research those in
your community
Real Estate Taxes $2.00 triple net expense can vary greatly
Building Insurance $0.75
Common Area Maintenance (CAM) $1.00
Off Street Parking 24
6/1000 sq ft of retail space for customers, local minimum
requirements vary. Employees park elsewhere. An alternate
ratio is 4-11 spaces/1000 sq ft of total space
Membership share cost $200
Try changing this to see what effect it has on your bank debt
and other "Sources" below.
Assuming # members by opening: 1000 End of: Stage 1 = 300 members, Stage 2A = 450 members
Stage 2B = 600 members, Stage 3A = 800 members
Opening or within 2 months after Opening = 1000 members

14. Uses: The Big 3
Uses:
Acquisition n/a This scenario assumes a lease, not a purchase
Leasehold
Improvements $600,000 $100
typical range = $100 - 115/total sqft but it can
be + or -
Equipment $570,000 $95
typical range = $90- 110/total sqft but it can be
+ or -
Inventory $160,000 $40 typical range = $35 - 45/retail sqft

15. More Uses
Fees $159,600
includes consultants, architect/engineer, store
design, legal, financing, environmental, misc.
Fees are initially estimated at 12% of the above
Project Management
$30,000
Varies greatly, but budget for it. Some
allowance is also in fee budget
Overhead/Admin prior to
Opening $15,000
Basic expenses incurred in years prior to
opening
Start-up Promotion
$12,500
Allows for promotion before opening day.
Equivalent to 3 months of Year 1 advertising
2.5% of Year 1 sales divided by 4

16. Even More Uses
Start-up Staffing $125,667
Initially estimated as 1/12 of Year 1 labor (25% of
sales) + salary/benefits/taxes for G.M. for 1 yr
before Opening ($70K plus 20%)
Holding/Site Costs $20,000
lease deposit, if required, plus
option/rent/taxes/ins/CAM/utilities before opening
Interest during project $17,500
initially estimated at $1,000,000 of debt at blended
interest of 7% for 6 months at 50% avg. draw
Post Opening Professional
Support $20,000
set aside for consulting support to develop
operating systems and provide support in Year 1
NCGA Membership deposit $2,000
Co-ops opening at a scale to join NCGA should
plan their deposit as part of pre-opening expenses.

17. Summing it all up
Working Capital, allowance $200,000 10%
Initial estimate to provide adequate cash flow to
cover initial operating losses. Range is 6 - 10% of
subtotal Uses $1,932,267
Overrun Allowance $289,840
Initially calculated at 15% of subtotal. Lowered to
no lower than 10% as estimated costs become
Assumes overrun allowance is 50% leasehold
improvements and 50% equipment.
Total Uses $2,222,107 #### /sq ft.$375

18. Sources: Owners’ Contribu8on
Sources:
Cash from benefits, donations $20,000 Net Proceeds, unless expenses are shown in Uses (line 33 or 34)
Grants $30,000
Member Equity $200,000
1000 members at an average of $200/member. Member share
requirement might range from $200 - $300/member
Member equity would need to be fully raised within 2-3 months of
opening.
4000 sq ft of retail has potential for 2500 - 3000 members by Year
5.
Preferred Shares $500,000
100 members at an average of $5,000. Minimum = $1,000. Seek
appropriate legal & consultant advice
Member Loans $500,000
125 loans at an average size of $4,000. Min. size loan is $2,000.
Seek appropriate legal & consultant advice.
Length of loan term: 4, 5, 6, 7, 8, 9 and 10 years, possibly longer.
Blended interest rate of 3.5 - 4.0%
Equity Fund
Miscellaneous $0
Other types of equity investors. Does not include donations of time
or in-kind contributions.
subtotal Owner's Contribution $1,250,000 56.25%
Owner's Contribution should be 50% of the total Sources (or
higher)

19. Owner Equity and Loans
Preferred Shares $500,000
100 members at an average of $5,000. Minimum =
$1,000. Seek appropriate legal & consultant advice
Member Loans $500,000
125 loans at an average size of $4,000. Min. size loan is
$2,000. Seek appropriate legal & consultant advice.
Length of loan term: 4, 5, 6, 7, 8, 9 and 10 years,
possibly longer. Blended interest rate of 3.5 - 4.0%

20. Other Sources
Equity Fund
Miscellaneous $0
Other types of equity investors. Does not include
donations of time or in-kind contributions.
subtotal Owner's Contribution$1,250,000 56.25%
Owner's Contribution should be 50% of the total Sources
(or higher)

21. External Sources
Landlord Contribution $120,000
Possible credit of up to 25% of leasehold improvements provided
by the landlord (i.e. tenant improvement allowance, range equals
$15 - 25/sq ft, but not always. Could be 0.
Vendor Credit $24,000 15%
a % of inventory covered by extended terms with vendors (not just
opening order terms)
Terms need to be established with vendors over time. There is no
guarantee of initial terms. Initial terms might be COD.
Free Fill $16,000 10%
% of initial inventory provided by manufacturers, accessed by
working with distributor
City/Community $150,000
low interest, long term loan accessed through local sources (city,
neighborhoods, foundations) (3%, 10-15yrs) (not easy to find, not
always available, if available, possibly lots of red tape and hoops to
jump thru)
Gap $0
Co-op Loan Funds $200,000
Co-op Loan funds, CFNE, NCDF, LEAF are possilbe sources.
~7% for 5-10 yrs.
subtotal External/
Subordinated $510,000 22.95%
Owner's Contribution plus External/Subordinated should be 75% or
higher
Bank Debt $462,107 20.80%
Bank Debt (Senior Debt)(First Position) should be 25% of total or
less. ~6-7% for 7 yrs. Bank financing can be difficult to obtain.
Total Sources $2,222,107 100.00%

22. City & Community Funds
City/Community $150,000
low interest, long term loan accessed through local sources
(city, neighborhoods, foundations) (3%, 10-15yrs) (not
easy to find, not always available, if available, possibly lots
of red tape and hoops to jump thru)

23. Gap

24. Commercial Lenders
Co-op Loan Funds $200,000
Co-op Loan funds, CFNE, NCDF, LEAF are possilbe
sources. ~7% for 5-10 yrs.
subtotal External/Subordinated$510,000 22.95%
Owner's Contribution plus External/Subordinated should be
75% or higher
Bank Debt $462,107 20.80%
Bank Debt (Senior Debt)(First Position) should be 25% of
total or less. ~6-7% for 7 yrs. Bank financing can be
Total Sources $2,222,107 100.00%

25. Sources & Uses Cash Flow

26. Cash and Use of Owners’ Capital

27. Using S&U Cash Flow
Sources & Uses Cash Flow Stage 1 Stage 2A Stage 2B Stage 3 A
By Stage Organizing Feasibility/ Planning Implementation
Draft: February 25, 2014 Organizing Feasibility Planning Preconstruction
6-12+ months 3-6 months 3-6 months 3-6 months
Cash Flow for the Period 63,150 14,000 8,500 930,000
Beginning Cash 0 63,150 77,150 85,650
Ending Cash 63,150 77,150 85,650 1,015,650
Total Member Equity, Accumulated 60,000 90,000 120,000 160,000
Unused Member Equity 60,000 77,150 85,650 15,650
Used Member Equity, Accumulated 0 12,850 34,350 144,350
Total Preferred Shares & Member
Loans Collected - - - 1,000,000
Unused Preferred Shares & Member Loans 1,000,000
Decision Point:
Go Forward?
Final Go/
No go

28. Use of Owners’ Investments
Decision Point:
Go Forward?

29. Final Stages
Sources & Uses Cash Flow Stage 3B Stage 3C Stage 3D Total
By Stage Implementation Implementation Implementation
Draft: February 25, 2014 Construction/Renovation Preparation for Opening Sustaining
3-6 months 1 month (forever) 19-37+months
0
Cash Flow for the Period (532,000) (358,297) (125,353) -
Beginning Cash 1,015,650 483,650 125,353 -
Ending Cash 483,650 125,353 0 -
Total Member Equity, Accumulated 180,000 185,000 200,000 200,000
Unused Member Equity 0 0 0 0
Used Member Equity, Accumulated 180,000 185,000 200,000 200,000
Total Preferred Shares & Member
Loans Collected 1,000,000 1,000,000 1,000,000 1,000,000
Unused Preferred Shares & Member Loans 0 0 0 0
Used Preferred Shares &Member Loans 1,000,000 1,000,000 1,000,000 1,000,000
OPEN!

30. Pro Forma Financial Budgets
30

31. Why You Should Not Drah
Pro Formas
Dorchester Community Co-op Sources &
3/3/2016 0:00 Uses Beginning YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10
$3-$5
million
$5-$6.5
million
BALANCE SHEET 29 stores 9 stores
ASSETS
CURRENT ASSETS
Cash 224,491 224,491 139,610 130,970 123,811 136,962 183,570 209,574 286,814 344,131 406,195 445,482
Prepaid Items 0 0 0 0 0 0 0 0 0 0 0
Inventories 168,000 168,000 168,000 173,040 178,231 183,578 189,085 194,758 200,601 206,619 212,817 219,202
Accounts Receivable 0 0 0 0 0 0 0 0 0 0 0
TOTAL CURRENT ASSETS 392,491 392,491 307,610 304,010 302,042 320,540 372,656 404,332 487,415 550,750 619,013 664,684
FIXED ASSETS
Land 0
Building contingency 0 0 0 0 0 0 0 0 0 0 0
Building 0 0 0 0 0 0 0 0 0 0 0
Equipment 516,500 516,500 516,500 531,500 546,500 561,500 591,500 606,500 621,500 636,500 651,500 666,500
Leasehold Improvements 687,500 687,500 687,500 687,500 702,500 702,500 717,500 717,500 717,500 732,500 732,500 747,500
Accumulated Depreciation 0 (119,619) (241,381) (366,286) (493,333) (625,667) (760,143) (896,762) (962,738) (1,030,857) (1,099,976)
Gross FIXED ASSETS 1,204,000 1,204,000 1,084,381 977,619 882,714 770,667 683,333 563,857 442,238 406,262 353,143 314,024
OTHER ASSETS
Investments 0 0 0 0 0 0 0 0 0 0 0
Deposits 0 0 0 0 0 0 0 0 0 0 0
Organization Development Costs 421,355 421,355 421,355 421,355 421,355 421,355 421,355 421,355 421,355 421,355 421,355 421,355
Depreciation/Amortization 0 (28,090) (45,023) (61,956) (78,889) (95,822) (112,755) (129,688) (146,621) (163,554) (180,487)
TOTAL OTHER ASSETS 421,355 421,355 393,265 376,332 359,399 342,466 325,533 308,600 291,667 274,734 257,801 240,868
TOTAL ASSETS 2,017,846 2,017,846 1,785,255 1,657,961 1,544,155 1,433,672 1,381,522 1,276,789 1,221,320 1,231,746 1,229,956 1,219,576
LIABILITIES
CURRENT LIABILITIES
Accounts Payable 111,566 134,079 154,191 169,610 183,744 192,931 199,461 209,435 219,906 230,902
Accrued Payroll and Payroll Taxes 0 11,221 12,548 14,431 15,874 17,263 18,126 19,032 19,754 20,742 21,779
Sales Tax Payables 0 2,532 3,090 3,553 3,908 4,299 4,514 4,740 4,977 5,226 5,487
Income tax Payable 0 0 0 0 0 0 0 0 0 0 0
Loan Payable Current Portion 17,126 18,012 18,949 19,941 20,990 22,100 23,275 24,519 25,835 27,227 28,703
TOTAL CURRENT LIABILITIES 0 17,126 143,331 168,666 192,115 210,383 227,406 238,846 247,752 260,000 273,101 286,870
LONG TERM LIABILITIES
City/Community Loan 100,000 95,892 91,701 87,425 83,063 78,613 74,073 69,442 64,717 59,897 54,979 49,962
Vendor Credit 0 0 0 0 0 0 0 0 0 0 0 0
Bank Debt 487,647 474,628 460,806 446,131 430,551 414,010 396,449 377,805 358,011 336,997 314,686 290,998
Member Loans 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL LONG TERM LIABILITIES 587,647 570,520 552,506 533,556 513,614 492,624 470,523 447,247 422,728 396,893 369,665 340,961
TOTAL LIABILITIES 587,647 587,646 695,837 702,222 705,730 703,006 697,929 686,093 670,480 656,893 642,766 627,831
EQUITY
Member Equity 80,000 80,000 108,800 137,600 166,400 195,200 224,000 240,000 256,000 264,000 272,000 280,000
Worker Equity 0 0 2,500 6,250 10,000 10,625 11,250 11,875 12,125 12,375 12,625 12,875
Preferred Shares through DPO 500,000 500,000 500,000 500,000 500,000 500,000 500,000 475,000 450,000 400,000 325,000 225,000
Preferred Shares Dividends 0 0 0 0 0 0 (15,000) (29,250) (42,750) (54,750) (64,500)
Retained Earnings 850,200 850,200 478,118 311,889 162,025 24,841 (51,657) (121,179) (138,036) (58,773) 32,316 138,369
TOTAL EQUITY 1,430,200 1,430,200 1,089,418 955,739 838,425 730,666 683,593 590,696 550,839 574,852 587,191 591,744
TOTAL LIABILITIES & EQUITY 2,017,847 2,017,846 1,785,255 1,657,961 1,544,155 1,433,672 1,381,522 1,276,789 1,221,320 1,231,746 1,229,956 1,219,576
INCOME STATEMENT ??????? 1 (0) 0 0 0 0 0 0 0 0 0 0
INCOME
RETAIL SQ/FT 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200
GROSS SALES SQ/FT 579 706 812 893 983 1,032 1,083 1,138 1,194 1,254
GROSS SALES $2,431,141 $2,965,993 $3,410,891 $3,751,981 $4,127,179 $4,333,538 $4,550,214 $4,777,725 $5,016,611 $5,267,442
% SALES GROWTH 22.00% 15.00% 10.00% 10.00% 5.00% 5.00% 5.00% 5.00% 5.00%
COST OF GOODS SOLD 1,628,865 1,957,555 2,251,188 2,476,307 2,682,666 2,816,799 2,912,137 3,057,744 3,210,631 3,371,163
• AS % OF GROSS SALES 67.00% 66.00% 66.00% 66.00% 65.00% 65.00% 64.00% 64.00% 64.00% 64.00% 61.79% 61.89%
GROSS MARGIN 802,277 1,008,437 1,159,703 1,275,673 1,444,513 1,516,738 1,638,077 1,719,981 1,805,980 1,896,279
• AS % OF GROSS SALES 33.00% 34.00% 34.00% 34.00% 35.00% 35.00% 36.00% 36.00% 36.00% 36.00% 38.21% 38.11%
EXPENSES
Personnel Costs
Payroll & Salary Expense 437,605 489,389 562,797 619,077 673,246 706,908 742,254 770,408 808,929 849,375
Payroll Taxes & Benefits 145,868 163,130 187,599 206,359 224,415 235,636 247,418 256,803 269,643 283,125
Total Personnel Costs 583,474 652,518 750,396 825,436 897,661 942,544 989,672 1,027,211 1,078,571 1,132,500
• AS % OF GROSS SALES 24.00% 22.00% 22.00% 22.00% 21.75% 21.75% 21.75% 21.50% 21.50% 21.50% 24.02% 23.90%
Occupancy Expenses
Rent 96,000 96,000 102,000 102,000 105,000 105,000 108,000 108,000 111,000 111,000
Real and Property Taxes, Insurance & CAM 0 0 0 0 0 0 0 0 0 0
Repairs & Maintenance 9,725 10,016 10,317 10,626 10,945 11,273 11,612 11,960 12,319 12,688
Insurance 9,725 10,016 10,317 10,626 10,945 11,273 11,612 11,960 12,319 12,688
Utilities 30,000 31,500 33,075 34,729 36,465 38,288 40,203 42,213 44,324 46,540
Licenses & Permits 3,500 3,605 3,713 3,825 3,939 4,057 4,179 4,305 4,434 4,567
Building Services 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524
Depreciation/Amortization 147,709 138,695 141,838 143,981 149,266 151,409 153,552 82,909 85,052 86,052
Total Occupancy Expenses 301,659 294,983 306,564 311,250 322,189 327,098 335,128 267,496 275,781 280,059
• AS % OF GROSS SALES 12.41% 9.95% 8.99% 8.30% 7.81% 7.55% 7.37% 5.60% 5.50% 5.32% 5.40% 4.58%
Occupancy Expenses less Depreciation/Amortization 6.33% 5.27% 4.83% 4.46% 4.19% 4.05% 3.99% 3.86% 3.80% 3.68% 3.93% 2.96%
Depreciation/Amortization 6.08% 4.68% 4.16% 3.84% 3.62% 3.49% 3.37% 1.74% 1.70% 1.63% 1.47% 1.62%
Operating Expenses
Store Supplies 55,308 38,558 44,342 48,776 53,653 56,336 59,153 62,110 65,216 68,477
Credit Card Fees 33,550 40,931 47,070 51,777 56,955 59,803 62,793 65,933 69,229 72,691
Telephone/Internet 2,003 2,444 2,811 3,092 3,401 3,571 3,749 3,937 4,134 4,340
Small Equipment purchases 3,890 4,746 5,457 6,003 6,603 6,934 7,280 7,644 8,027 8,428
Trash/Baler 1,459 1,780 2,047 2,251 2,476 2,600 2,730 2,867 3,010 3,160
Bad Debt, Cash Over (Short), Bank Charges 243 297 341 375 413 433 455 478 502 527
Vehicle Expense 0 0 0 0 0 0 0 0 0 0
Miscellaneous 4,862 7,415 8,527 9,380 10,318 10,834 11,376 11,944 12,542 13,169
Total Operating Expenses 101,315 96,169 110,595 121,654 133,820 140,511 147,536 154,913 162,659 170,792
• AS % OF GROSS SALES 4.17% 3.24% 3.24% 3.24% 3.24% 3.24% 3.24% 3.24% 3.24% 3.24% 3.41% 3.39%
Administrative Expenses
Office Supplies/Postage 11,852 9,639 11,085 12,194 13,413 14,084 14,788 15,528 16,304 17,119
Dues & Subscriptions 3,355 4,093 4,707 5,178 5,696 5,980 6,279 6,593 6,923 7,269
Legal, Accounting, Consulting Fees 46,775 20,465 23,535 25,889 28,478 29,901 31,396 32,966 34,615 36,345
Travel Expenses 2,516 3,070 3,530 3,883 4,272 4,485 4,709 4,945 5,192 5,452
Total Administrative Expenses 64,498 37,268 42,858 47,144 51,858 54,451 57,173 60,032 63,034 66,185
• AS % OF GROSS SALES 2.65% 1.26% 1.26% 1.26% 1.26% 1.26% 1.26% 1.26% 1.26% 1.26% 1.29% 1.08%
Governance/Member Expense
Board of Directors 5,105 6,229 6,566 7,223 7,223 8,342 8,759 9,197 9,657 10,140
Newsletter Expense 2,431 2,966 3,411 3,752 4,127 4,334 4,550 4,778 5,017 5,267
Member Services 851 1,038 1,194 1,313 1,445 1,517 1,593 1,672 1,756 1,844
Total Governance/Member Expense 8,387 10,233 11,171 12,288 12,794 14,192 14,902 15,647 16,429 17,251
• AS % OF GROSS SALES 0.35% 0.35% 0.33% 0.33% 0.31% 0.33% 0.33% 0.33% 0.33% 0.33% 0.38% 0.33%
Promotion Expense
Advertising 48,623 39,151 42,295 46,525 51,177 53,736 54,603 57,333 58,193 61,102
Merchandising & Promotion 9,725 11,864 13,644 15,008 16,509 17,334 18,201 19,111 20,066 21,070
Contributions/Donations 1,500 2,500 3,000 5,500 8,000 10,500 13,000 15,500 18,000 20,500
Total Promotional Expenses 59,847 53,515 58,939 67,032 75,686 81,570 85,803 91,944 96,259 102,672
• AS % OF GROSS SALES 2.46% 1.80% 1.73% 1.79% 1.83% 1.88% 1.89% 1.92% 1.92% 1.95% 1.71% 1.81%
TOTAL OPERATING EXPENSES 0 0 1,119,181 1,144,686 1,280,522 1,384,804 1,494,007 1,560,367 1,630,214 1,617,243 1,692,733 1,769,459
• AS % OF GROSS SALES 46.04% 38.59% 37.54% 36.91% 36.20% 36.01% 35.83% 33.85% 33.74% 33.59% 36.90% 35.91%
INCOME FROM OPERATIONS 0 0 (316,904) (136,248) (120,819) (109,131) (49,495) (43,628) 7,863 102,738 113,247 126,820
• AS % OF GROSS SALES (13.04%) (4.59%) (3.54%) (2.91%) (1.20%) (1.01%) 0.17% 2.15% 2.26% 2.41%
Other Revenue (Expenses)
Interest Income 0 0 0 0 0 0 0 0 0 0
Interest Expense 0 0 0 0 0 0 0 0 0 0
Rent for 500 sq. ft. 0 0 0 0 0 0 0 0 0 0 0
Other Non-operating (expense) (24,311) 0 0 0 0 0 0 0 0 0
Total Other Revenues (Expenses) (24,311) 0 0 0 0 0 0 0 0 0
• AS % OF GROSS SALES (1.00%) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Interest expense
City/Community Loan 1,962 1,880 1,796 1,709 1,621 1,531 1,440 1,346 1,250 1,154
Member Loans 0 0 0 0 0 0 0 0 0 0
Vendor Credit 0 0 0 0 0 0 0 0 0 0
Bank Debt 28,905 28,102 27,249 26,345 25,383 24,363 23,280 22,130 20,909 19,613
Total Interest Expense 0 30,866 29,981 29,044 28,053 27,003 25,893 24,719 23,475 22,158 20,766
• AS % OF GROSS SALES 1.27% 1.01% 0.85% 0.75% 0.65% 0.60% 0.54% 0.49% 0.44% 0.39%
PROFIT/(LOSS) BEFORE PATRONAGE & TAXES (372,082) (166,230) (149,863) (137,184) (76,498) (69,522) (16,857) 79,263 91,088 106,054
• AS % OF GROSS SALES (15.30%) (5.60%) (4.39%) (3.66%) (1.85%) (1.60%) (0.37%) 1.66% 1.82% 2.01%
Patronage Rebate expense
• AS % OF GROSS SALES 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
PROFIT/(LOSS) BEFORE TAXES 0 0 (372,082) (166,230) (149,863) (137,184) (76,498) (69,522) (16,857) 79,263 91,088 106,054
• AS % OF GROSS SALES (15.30%) (5.60%) (4.39%) (3.66%) (1.85%) (1.60%) (0.37%) 1.66% 1.82% 2.01%
Income Taxes 0 0 0 0 0 0 0 0 0 0 0
• AS % OF GROSS SALES 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -0.10% -0.19%
PROFIT/(LOSS) 0 0 (372,082) (166,230) (149,863) (137,184) (76,498) (69,522) (16,857) 79,263 91,088 106,054
• AS % OF GROSS SALES (15.30%) (5.60%) (4.39%) (3.66%) (1.85%) (1.60%) (0.37%) 1.66% 1.82% 2.01% 1.03% 1.67%
STATEMENT OF CASH FLOW
Profit (loss) (372,082) (166,230) (149,863) (137,184) (76,498) (69,522) (16,857) 79,263 91,088 106,054
Depreciation (Gross Accumulated Depreciation) 147,709 138,695 141,838 143,981 149,266 151,409 153,552 82,909 85,052 86,052
Interest Expense Add back 30,866 29,981 29,044 28,053 27,003 25,893 24,719 23,475 22,158 20,766
Subtotal (193,506) 2,447 21,019 34,850 99,771 107,781 161,415 185,648 198,299 212,872
Changes In Working Capital
Prepaid Items 0 0 0 0 0 0 0 0 0 0
Inventories 0 (5,040) (5,191) (5,347) (5,507) (5,673) (5,843) (6,018) (6,199) (6,385)
Accounts Receivable 0 0 0 0 0 0 0 0 0 0
Accounts Payable 111,566 22,513 20,112 15,419 14,134 9,187 6,530 9,973 10,472 10,995
Accrued Payroll and Payroll Taxes 11,221 1,328 1,882 1,443 1,389 863 906 722 988 1,037
Sales Tax Payables 2,532 557 463 355 391 215 226 237 249 261
BLANK 0 0 0 0 0 0 0 0 0 0
Income tax Payable 0 0 0 0 0 0 0 0 0 0
BLANK 0 0 0 0 0 0 0 0 0 0
TOTAL 125,319 19,358 17,266 11,871 10,407 4,593 1,819 4,914 5,510 5,909
CASH FLOWS FROM OPERATIONS (68,187) 21,805 38,285 46,721 110,178 112,373 163,234 190,561 203,809 218,781
INVESTMENTS
Investments 0 0 0 0 0 0 0 0 0 0
BLANK 0 0 0 0 0 0 0 0 0 0
Deposits 0 0 0 0 0 0 0 0 0 0
Organization Development Costs 0 0 0 0 0 0 0 0 0 0
Land 0 0 0 0 0 0 0 0 0 0
Building contingency 0 0 0 0 0 0 0 0 0 0
Building 0 0 0 0 0 0 0 0 0 0
Equipment 0 (15,000) (15,000) (15,000) (30,000) (15,000) (15,000) (15,000) (15,000) (15,000)
Leasehold Improvements 0 0 (15,000) 0 (15,000) 0 0 (15,000) 0 (15,000)
CASH FLOW FROM INVESTMENTS 0 (15,000) (30,000) (15,000) (45,000) (15,000) (15,000) (30,000) (15,000) (30,000)
CASH FLOWS FROM EQUITY ACTIVITIES:
Member Equity 28,800 28,800 28,800 28,800 28,800 16,000 16,000 8,000 8,000 8,000
Worker Equity 2,500 3,750 3,750 625 625 625 250 250 250 250
Preferred Shares through DPO 0 0 0 0 0 (25,000) (25,000) (50,000) (75,000) (100,000)
Preferred Shares Dividends 0 0 0 0 0 (15,000) (14,250) (13,500) (12,000) (9,750)
CASH FLOWS FROM EQUITY ACTIVITIES: 31,300 32,550 32,550 29,425 29,425 (23,375) (23,000) (55,250) (78,750) (101,500)
CASH FLOW BEFORE DEBT SERVICE (36,887) 39,355 40,835 61,146 94,603 73,998 125,234 105,311 110,059 87,281
DEBT SERVICE (Principal & Interest)
City/Community Loan (6,071) (6,071) (6,071) (6,071) (6,071) (6,071) (6,071) (6,071) (6,071) (6,071)
Vendor Credit 0 0 0 0 0 0 0 0 0 0
Bank Debt (41,924) (41,924) (41,924) (41,924) (41,924) (41,924) (41,924) (41,924) (41,924) (41,924)
Member Loans 0 0 0 0 0 0 0 0 0 0
TOTAL LONG TERM LIABILITIES (47,994) (47,994) (47,994) (47,994) (47,994) (47,994) (47,994) (47,994) (47,994) (47,994)
TOTAL CASH FLOW (84,881) (8,640) (7,159) 13,151 46,609 26,004 77,240 57,317 62,064 39,287
BEGINNING CASH 224,491 139,610 130,970 123,811 136,962 183,570 209,574 286,814 344,131 406,195
ENDING CASH 139,610 130,970 123,811 136,962 183,570 209,574 286,814 344,131 406,195 445,482
test 0 (0) 0 0 0 0 0 0 0 0
RATIOS
DEBT/EQUITY 0.41 0.64 0.73 0.84 0.96 1.02 1.16 1.22 1.14 1.09 1.06
DEBT/EQUITY+MEMBER LOANS 0.41 0.64 0.73 0.84 0.96 1.02 1.16 1.22 1.14 1.09 1.06
CURRENT RATIO 2.15 1.80 1.57 1.52 1.64 1.69 1.97 2.12 2.27 2.32
DEBT COVERAGE (3.96) 0.05 0.43 0.71 2.03 2.19 3.28 3.76 4.02 4.30
DEBT COVERAGE w/o MEMBER LOANS (3.96) 0.05 0.43 0.71 2.03 2.19 3.28 3.76 4.02 4.30
RETURN ON EQUITY -29.53% -16.26% -16.71% -17.49% -10.82% -10.91% -2.95% 14.08% 15.68% 17.99%
INVENTORY TURNOVERS 10 11 13 14 14 15 15 15 15 16
PROFIT MARGIN ON SALES -15.30% -5.60% -4.39% -3.66% -1.85% -1.60% -0.37% 1.66% 1.82% 2.01%
RATE OF RETURN ON ASSETS -19.57% -9.66% -9.36% -9.21% -5.43% -5.23% -1.35% 6.46% 7.40% 8.66%
SALES PER SQ. FT. $579 $706 $812 $893 $983 $1,032 $1,083 $1,138 $1,194 $1,254
OWNERSHIP (EQUITY/ASSETS) 61.02% 57.65% 54.30% 50.96% 49.48% 46.26% 45.10% 46.67% 47.74% 48.52%
WORKING CAPITAL $'S $375,365 $164,279 $135,344 $109,927 $110,158 $145,250 $165,486 $239,663 $290,750 $345,912 $377,814
COMMON SIZE INCOME STATEMENT
INCOME
GROSS SALES 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of Goods 67.00% 66.00% 66.00% 66.00% 65.00% 65.00% 64.00% 64.00% 64.00% 64.00% 61.79% 61.89%
GROSS MARGIN 33.00% 34.00% 34.00% 34.00% 35.00% 35.00% 36.00% 36.00% 36.00% 36.00% 38.21% 38.11%
EXPENSES
Personnel Costs
Payroll & Salary Expense 18.00% 16.50% 16.50% 16.50% 16.31% 16.31% 16.31% 16.13% 16.13% 16.13%
Payroll Taxes & Benefits 6.00% 5.50% 5.50% 5.50% 5.44% 5.44% 5.44% 5.38% 5.38% 5.38%
Total Personnel Costs 24.00% 22.00% 22.00% 22.00% 21.75% 21.75% 21.75% 21.50% 21.50% 21.50% 24.02% 23.90%
Occupancy Expenses
Rent 3.95% 3.24% 2.99% 2.72% 2.54% 2.42% 2.37% 2.26% 2.21% 2.11%
Real and Property Taxes, Insurance & CAM 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Repairs & Maintenance 0.40% 0.34% 0.30% 0.28% 0.27% 0.26% 0.26% 0.25% 0.25% 0.24%
Insurance 0.40% 0.34% 0.30% 0.28% 0.27% 0.26% 0.26% 0.25% 0.25% 0.24%
Utilities 1.23% 1.06% 0.97% 0.93% 0.88% 0.88% 0.88% 0.88% 0.88% 0.88%
Licenses & Permits 0.14% 0.12% 0.11% 0.10% 0.10% 0.09% 0.09% 0.09% 0.09% 0.09%
Building Services 0.21% 0.17% 0.16% 0.15% 0.14% 0.13% 0.13% 0.13% 0.13% 0.12%
Depreciation/Amortization 6.08% 4.68% 4.16% 3.84% 3.62% 3.49% 3.37% 1.74% 1.70% 1.63% 1.47% 1.62%
Total Occupancy Expenses 12.41% 9.95% 8.99% 8.30% 7.81% 7.55% 7.37% 5.60% 5.50% 5.32% 5.40% 4.58%
Operating Expenses
Store Supplies 2.28% 1.30% 1.30% 1.30% 1.30% 1.30% 1.30% 1.30% 1.30% 1.30%
Credit Card Fees 1.38% 1.38% 1.38% 1.38% 1.38% 1.38% 1.38% 1.38% 1.38% 1.38%
Telephone 0.08% 0.08% 0.08% 0.08% 0.08% 0.08% 0.08% 0.08% 0.08% 0.08%
Small Equipment purchases 0.16% 0.16% 0.16% 0.16% 0.16% 0.16% 0.16% 0.16% 0.16% 0.16%
Trash/Baler 0.06% 0.06% 0.06% 0.06% 0.06% 0.06% 0.06% 0.06% 0.06% 0.06%
Bad Debt, Cash Over (Short), Bank Charges 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%
Vehicle Expense 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Miscellaneous 0.20% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
Total Operating Expenses 4.17% 3.24% 3.24% 3.24% 3.24% 3.24% 3.24% 3.24% 3.24% 3.24% 3.41% 3.39%
Administrative Expenses
Office Supplies/Postage 0.49% 0.33% 0.33% 0.33% 0.33% 0.33% 0.33% 0.33% 0.33% 0.33%
Dues & Subscriptions 0.14% 0.14% 0.14% 0.14% 0.14% 0.14% 0.14% 0.14% 0.14% 0.14%
Legal, Accounting, Consulting Fees 1.92% 0.69% 0.69% 0.69% 0.69% 0.69% 0.69% 0.69% 0.69% 0.69%
Travel Expenses 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10%
Total Administrative Expenses 2.65% 1.26% 1.26% 1.26% 1.26% 1.26% 1.26% 1.26% 1.26% 1.26% 1.29% 1.08%
Governance/Member Expense
Board of Directors 0.21% 0.21% 0.19% 0.19% 0.18% 0.19% 0.19% 0.19% 0.19% 0.19%
Newsletter Expense 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10%
Member Services 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04%
Total Governance/Member Expense 0.35% 0.35% 0.33% 0.33% 0.31% 0.33% 0.33% 0.33% 0.33% 0.33% 0.38% 0.33%
Promotion Expense
Advertising 2.00% 1.32% 1.24% 1.24% 1.24% 1.24% 1.20% 1.20% 1.16% 1.16%
Merchandising & Promotion 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% 0.40%
Contributions/Donations 0.06% 0.08% 0.09% 0.15% 0.19% 0.24% 0.29% 0.32% 0.36% 0.39%
Total Promotional Expenses 2.46% 1.80% 1.73% 1.79% 1.83% 1.88% 1.89% 1.92% 1.92% 1.95% 1.71% 1.81%
TOTAL OPERATING EXPENSES 46.04% 38.59% 37.54% 36.91% 36.20% 36.01% 35.83% 33.85% 33.74% 33.59% 36.90% 35.91%
INCOME FROM OPERATIONS -13.04% -4.59% -3.54% -2.91% -1.20% -1.01% 0.17% 2.15% 2.26% 2.41%
Other Revenue (Expenses)
Interest Income 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Interest Expense 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Other non-operating Income 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Other Non-operating (expense) -1.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total Other Revenues (Expenses) -1.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -0.30% -0.53%
Interest expense
City/Community Loan 0.08% 0.06% 0.05% 0.05% 0.04% 0.04% 0.03% 0.03% 0.02% 0.02%
Member Loans 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Gap Financing 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Bank Debt 1.19% 0.95% 0.80% 0.70% 0.62% 0.56% 0.51% 0.46% 0.42% 0.37%
Total Interest Expense 1.27% 1.01% 0.85% 0.75% 0.65% 0.60% 0.54% 0.49% 0.44% 0.39% -0.58% -0.96%
PROFIT/(LOSS) BEFORE PATRONAGE & TAXES -15.30% -5.60% -4.39% -3.66% -1.85% -1.60% -0.37% 1.66% 1.82% 2.01%
Patronage Rebate expense 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -0.07% 0.00%
PROFIT/(LOSS) BEFORE TAXES -15.30% -5.60% -4.39% -3.66% -1.85% -1.60% -0.37% 1.66% 1.82% 2.01%
Income Taxes 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -0.10% -0.19%
PROFIT/LOSS -15.30% -5.60% -4.39% -3.66% -1.85% -1.60% -0.37% 1.66% 1.82% 2.01% 1.03% 1.67%
inflation 0.03
TAXES CALCULATION
Profit (loss) (372,082) (166,230) (149,863) (137,184) (76,498) (69,522) (16,857) 79,263 91,088 106,054
Profit (loss) netted with previous period (372,082) (538,311) (688,175) (825,359) (901,857) (971,379) (988,236) (908,973) (817,884) (711,831)
TAXES 0 0 0 0 0 0 0 0 0 0
WAGES
% OF SALES 24.00% 22.00% 22.00% 22.00% 21.75% 21.75% 21.75% 21.50% 21.50% 21.50%
WAGES AS A % OF GROSS SALES 583,474 652,518 750,396 825,436 897,661 942,544 989,672 1,027,211 1,078,571 1,132,500
Wages % 75.00% 75.00% 75.00% 75.00% 75.00% 75.00% 75.00% 75.00% 75.00% 75.00%
Payroll Taxes & Benefits % 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
Wages 437,605 489,389 562,797 619,077 673,246 706,908 742,254 770,408 808,929 849,375
Benefits 145,868 163,130 187,599 206,359 224,415 235,636 247,418 256,803 269,643 283,125
Comparisons
One of seven tabs from an actual pro forma

32. Financial Projec8ons
n Sales projec8ons
n Pro Forma opera8ng budget
n Balance Sheet
n Income Statement or Profit & Loss
n Cash flow
n Ra8o Analyses
n Debt service

33. Balance Sheet
3/3/2016 0:00
Sources &
Uses Beginning YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10
BALANCE SHEET
ASSETS
CURRENT ASSETS
Cash 224,491 224,491 139,610 130,970 123,811 136,962 183,570 209,574 286,814 344,131 406,195 445,482
Prepaid Items 0 0 0 0 0 0 0 0 0 0 0
Inventories 168,000 168,000 168,000 173,040 178,231 183,578 189,085 194,758 200,601 206,619 212,817 219,202
Accounts Receivable 0 0 0 0 0 0 0 0 0 0 0
TOTAL CURRENT ASSETS 392,491 392,491 307,610 304,010 302,042 320,540 372,656 404,332 487,415 550,750 619,013 664,684
FIXED ASSETS
Land 0
Building contingency 0 0 0 0 0 0 0 0 0 0 0
Building 0 0 0 0 0 0 0 0 0 0 0
Equipment 516,500 516,500 516,500 531,500 546,500 561,500 591,500 606,500 621,500 636,500 651,500 666,500
Leasehold Improvements 687,500 687,500 687,500 687,500 702,500 702,500 717,500 717,500 717,500 732,500 732,500 747,500
Accumulated Depreciation 0 (119,619) (241,381) (366,286) (493,333) (625,667) (760,143) (896,762) (962,738) (1,030,857) (1,099,976)
Gross FIXED ASSETS 1,204,000 1,204,000 1,084,381 977,619 882,714 770,667 683,333 563,857 442,238 406,262 353,143 314,024
OTHER ASSETS
Investments 0 0 0 0 0 0 0 0 0 0 0
Deposits 0 0 0 0 0 0 0 0 0 0 0
Organization Development Costs 421,355 421,355 421,355 421,355 421,355 421,355 421,355 421,355 421,355 421,355 421,355 421,355
Depreciation/Amortization 0 (28,090) (45,023) (61,956) (78,889) (95,822) (112,755) (129,688) (146,621) (163,554) (180,487)
TOTAL OTHER ASSETS 421,355 421,355 393,265 376,332 359,399 342,466 325,533 308,600 291,667 274,734 257,801 240,868
TOTAL ASSETS 2,017,846 2,017,846 1,785,255 1,657,961 1,544,155 1,433,672 1,381,522 1,276,789 1,221,320 1,231,746 1,229,956 1,219,576
LIABILITIES
CURRENT LIABILITIES
Accounts Payable 111,566 134,079 154,191 169,610 183,744 192,931 199,461 209,435 219,906 230,902
Accrued Payroll and Payroll Taxes 0 11,221 12,548 14,431 15,874 17,263 18,126 19,032 19,754 20,742 21,779
Sales Tax Payables 0 2,532 3,090 3,553 3,908 4,299 4,514 4,740 4,977 5,226 5,487
Income tax Payable 0 0 0 0 0 0 0 0 0 0 0
Loan Payable Current Portion 17,126 18,012 18,949 19,941 20,990 22,100 23,275 24,519 25,835 27,227 28,703
TOTAL CURRENT LIABILITIES 0 17,126 143,331 168,666 192,115 210,383 227,406 238,846 247,752 260,000 273,101 286,870
LONG TERM LIABILITIES
City/Community Loan 100,000 95,892 91,701 87,425 83,063 78,613 74,073 69,442 64,717 59,897 54,979 49,962
Vendor Credit 0 0 0 0 0 0 0 0 0 0 0 0
Bank Debt 487,647 474,628 460,806 446,131 430,551 414,010 396,449 377,805 358,011 336,997 314,686 290,998
Member Loans 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL LONG TERM LIABILITIES 587,647 570,520 552,506 533,556 513,614 492,624 470,523 447,247 422,728 396,893 369,665 340,961
TOTAL LIABILITIES 587,647 587,646 695,837 702,222 705,730 703,006 697,929 686,093 670,480 656,893 642,766 627,831
EQUITY
Member Equity 80,000 80,000 108,800 137,600 166,400 195,200 224,000 240,000 256,000 264,000 272,000 280,000
Worker Equity 0 0 2,500 6,250 10,000 10,625 11,250 11,875 12,125 12,375 12,625 12,875
Preferred Shares through DPO 500,000 500,000 500,000 500,000 500,000 500,000 500,000 475,000 450,000 400,000 325,000 225,000
Preferred Shares Dividends 0 0 0 0 0 0 (15,000) (29,250) (42,750) (54,750) (64,500)
Retained Earnings 850,200 850,200 478,118 311,889 162,025 24,841 (51,657) (121,179) (138,036) (58,773) 32,316 138,369
TOTAL EQUITY 1,430,200 1,430,200 1,089,418 955,739 838,425 730,666 683,593 590,696 550,839 574,852 587,191 591,744
TOTAL LIABILITIES & EQUITY 2,017,847 2,017,846 1,785,255 1,657,961 1,544,155 1,433,672 1,381,522 1,276,789 1,221,320 1,231,746 1,229,956 1,219,576

34. Current Assets
3/3/2016 0:00
Sources &
Uses Beginning YEAR 1 YEAR 2 YEAR 3 YEAR 4
BALANCE SHEET
ASSETS
CURRENT ASSETS
Cash 224,491 224,491 139,610 130,970 123,811 136,962
Prepaid Items 0 0 0 0 0
Inventories 168,000 168,000 168,000 173,040 178,231 183,578
Accounts Receivable 0 0 0 0 0
TOTAL CURRENT ASSETS 392,491 392,491 307,610 304,010 302,042 320,540

35. Fixed Assets
FIXED ASSETS
Land 0
Building contingency 0 0 0 0 0
Building 0 0 0 0 0
Equipment 516,500 516,500 516,500 531,500 546,500 561,500
Leasehold Improvements 687,500 687,500 687,500 687,500 702,500 702,500
Accumulated Depreciation 0 (119,619) (241,381) (366,286) (493,333)
Gross FIXED ASSETS 1,204,000 1,204,000 1,084,381 977,619 882,714 770,667
3/3/2016 0:00
Sources &
Uses Beginning YEAR 1 YEAR 2 YEAR 3 YEAR 4

36. Other Assets & Total Assets
OTHER ASSETS
Investments 0 0 0 0 0
Deposits 0 0 0 0 0
Organization Development Costs 421,355 421,355 421,355 421,355 421,355 421,355
Depreciation/Amortization 0 (28,090) (45,023) (61,956) (78,889)
TOTAL OTHER ASSETS 421,355 421,355 393,265 376,332 359,399 342,466
TOTAL ASSETS 2,017,846 2,017,846 1,785,255 1,657,961 1,544,155 1,433,672

37. Current Liabili8es
LIABILITIES
CURRENT LIABILITIES
Accounts Payable 111,566 134,079 154,191 169,610
Accrued Payroll and Payroll Taxes 0 11,221 12,548 14,431 15,874
Sales Tax Payables 0 2,532 3,090 3,553 3,908
Income tax Payable 0 0 0 0 0
Loan Payable Current Portion 17,126 18,012 18,949 19,941 20,990
TOTAL CURRENT LIABILITIES 0 17,126 143,331 168,666 192,115 210,383

38. Long-Term & Total Liabili8es
3/3/2016 0:00
Sources &
Uses Beginning YEAR 1 YEAR 2 YEAR 3 YEAR 4
LONG TERM LIABILITIES
City/Community Loan 100,000 95,892 91,701 87,425 83,063 78,613
Vendor Credit 0 0 0 0 0 0
Bank Debt 487,647 474,628 460,806 446,131 430,551 414,010
Member Loans 0 0 0 0 0 0
TOTAL LONG TERM LIABILITIES 587,647 570,520 552,506 533,556 513,614 492,624
TOTAL LIABILITIES 587,647 587,646 695,837 702,222 705,730 703,006

39. Equity
EQUITY
Member Equity 80,000 80,000 108,800 137,600 166,400 195,200
Worker Equity 0 0 2,500 6,250 10,000 10,625
Preferred Shares through DPO 500,000 500,000 500,000 500,000 500,000 500,000
Preferred Shares Dividends 0 0 0 0 0
Retained Earnings 850,200 850,200 478,118 311,889 162,025 24,841
TOTAL EQUITY 1,430,200 1,430,200 1,089,418 955,739 838,425 730,666
TOTAL LIABILITIES & EQUITY 2,017,847 2,017,846 1,785,255 1,657,961 1,544,155 1,433,672
3/3/2016 0:00
Sources &
Uses Beginning YEAR 1 YEAR 2 YEAR 3 YEAR 4

40. Analyzing the Balance Sheet

41. Income Statements
(or Profit & Loss/P&L)
INCOME STATEMENT 1 (0) 0 0 0 0 0 0 0 0 0 0
INCOME
RETAIL SQ/FT 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200
GROSS SALES SQ/FT 579 706 812 893 983 1,032 1,083 1,138 1,194 1,254
GROSS SALES $2,431,141 $2,965,993 $3,410,891 $3,751,981 $4,127,179 $4,333,538 $4,550,214 $4,777,725 $5,016,611 $5,267,442
% SALES GROWTH 22.00% 15.00% 10.00% 10.00% 5.00% 5.00% 5.00% 5.00% 5.00%
COST OF GOODS SOLD 1,628,865 1,957,555 2,251,188 2,476,307 2,682,666 2,816,799 2,912,137 3,057,744 3,210,631 3,371,163
• AS % OF GROSS SALES 67.00% 66.00% 66.00% 66.00% 65.00% 65.00% 64.00% 64.00% 64.00% 64.00%
GROSS MARGIN 802,277 1,008,437 1,159,703 1,275,673 1,444,513 1,516,738 1,638,077 1,719,981 1,805,980 1,896,279
• AS % OF GROSS SALES 33.00% 34.00% 34.00% 34.00% 35.00% 35.00% 36.00% 36.00% 36.00% 36.00%
EXPENSES
Personnel Costs
Payroll & Salary Expense 437,605 489,389 562,797 619,077 673,246 706,908 742,254 770,408 808,929 849,375
Payroll Taxes & Benefits 145,868 163,130 187,599 206,359 224,415 235,636 247,418 256,803 269,643 283,125
Total Personnel Costs 583,474 652,518 750,396 825,436 897,661 942,544 989,672 1,027,211 1,078,571 1,132,500
• AS % OF GROSS SALES 24.00% 22.00% 22.00% 22.00% 21.75% 21.75% 21.75% 21.50% 21.50% 21.50%
Occupancy Expenses
Rent 96,000 96,000 102,000 102,000 105,000 105,000 108,000 108,000 111,000 111,000
Real and Property Taxes, Insurance & CAM 0 0 0 0 0 0 0 0 0 0
Repairs & Maintenance 9,725 10,016 10,317 10,626 10,945 11,273 11,612 11,960 12,319 12,688
Insurance 9,725 10,016 10,317 10,626 10,945 11,273 11,612 11,960 12,319 12,688
Utilities 30,000 31,500 33,075 34,729 36,465 38,288 40,203 42,213 44,324 46,540
Licenses & Permits 3,500 3,605 3,713 3,825 3,939 4,057 4,179 4,305 4,434 4,567
Building Services 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524
Depreciation/Amortization 147,709 138,695 141,838 143,981 149,266 151,409 153,552 82,909 85,052 86,052
Total Occupancy Expenses 301,659 294,983 306,564 311,250 322,189 327,098 335,128 267,496 275,781 280,059
• AS % OF GROSS SALES 12.41% 9.95% 8.99% 8.30% 7.81% 7.55% 7.37% 5.60% 5.50% 5.32%
Occupancy Expenses less Depreciation/Amortization 6.33% 5.27% 4.83% 4.46% 4.19% 4.05% 3.99% 3.86% 3.80% 3.68%
Depreciation/Amortization 6.08% 4.68% 4.16% 3.84% 3.62% 3.49% 3.37% 1.74% 1.70% 1.63%
Operating Expenses
Store Supplies 55,308 38,558 44,342 48,776 53,653 56,336 59,153 62,110 65,216 68,477
Credit Card Fees 33,550 40,931 47,070 51,777 56,955 59,803 62,793 65,933 69,229 72,691
Telephone/Internet 2,003 2,444 2,811 3,092 3,401 3,571 3,749 3,937 4,134 4,340
Small Equipment purchases 3,890 4,746 5,457 6,003 6,603 6,934 7,280 7,644 8,027 8,428
Trash/Baler 1,459 1,780 2,047 2,251 2,476 2,600 2,730 2,867 3,010 3,160
Bad Debt, Cash Over (Short), Bank Charges 243 297 341 375 413 433 455 478 502 527
Vehicle Expense 0 0 0 0 0 0 0 0 0 0
Miscellaneous 4,862 7,415 8,527 9,380 10,318 10,834 11,376 11,944 12,542 13,169
Total Operating Expenses 101,315 96,169 110,595 121,654 133,820 140,511 147,536 154,913 162,659 170,792
• AS % OF GROSS SALES 4.17% 3.24% 3.24% 3.24% 3.24% 3.24% 3.24% 3.24% 3.24% 3.24%
Administrative Expenses
Office Supplies/Postage 11,852 9,639 11,085 12,194 13,413 14,084 14,788 15,528 16,304 17,119
Dues & Subscriptions 3,355 4,093 4,707 5,178 5,696 5,980 6,279 6,593 6,923 7,269
Legal, Accounting, Consulting Fees 46,775 20,465 23,535 25,889 28,478 29,901 31,396 32,966 34,615 36,345
Travel Expenses 2,516 3,070 3,530 3,883 4,272 4,485 4,709 4,945 5,192 5,452
Total Administrative Expenses 64,498 37,268 42,858 47,144 51,858 54,451 57,173 60,032 63,034 66,185
• AS % OF GROSS SALES 2.65% 1.26% 1.26% 1.26% 1.26% 1.26% 1.26% 1.26% 1.26% 1.26%
Governance/Member Expense
Board of Directors 5,105 6,229 6,566 7,223 7,223 8,342 8,759 9,197 9,657 10,140
Newsletter Expense 2,431 2,966 3,411 3,752 4,127 4,334 4,550 4,778 5,017 5,267
Member Services 851 1,038 1,194 1,313 1,445 1,517 1,593 1,672 1,756 1,844
Total Governance/Member Expense 8,387 10,233 11,171 12,288 12,794 14,192 14,902 15,647 16,429 17,251
• AS % OF GROSS SALES 0.35% 0.35% 0.33% 0.33% 0.31% 0.33% 0.33% 0.33% 0.33% 0.33%
Promotion Expense
Advertising 48,623 39,151 42,295 46,525 51,177 53,736 54,603 57,333 58,193 61,102
Merchandising & Promotion 9,725 11,864 13,644 15,008 16,509 17,334 18,201 19,111 20,066 21,070
Contributions/Donations 1,500 2,500 3,000 5,500 8,000 10,500 13,000 15,500 18,000 20,500
Total Promotional Expenses 59,847 53,515 58,939 67,032 75,686 81,570 85,803 91,944 96,259 102,672
• AS % OF GROSS SALES 2.46% 1.80% 1.73% 1.79% 1.83% 1.88% 1.89% 1.92% 1.92% 1.95%
TOTAL OPERATING EXPENSES 0 0 1,119,181 1,144,686 1,280,522 1,384,804 1,494,007 1,560,367 1,630,214 1,617,243 1,692,733 1,769,459
• AS % OF GROSS SALES 46.04% 38.59% 37.54% 36.91% 36.20% 36.01% 35.83% 33.85% 33.74% 33.59%
INCOME FROM OPERATIONS 0 0 (316,904) (136,248) (120,819) (109,131) (49,495) (43,628) 7,863 102,738 113,247 126,820
• AS % OF GROSS SALES (13.04%) (4.59%) (3.54%) (2.91%) (1.20%) (1.01%) 0.17% 2.15% 2.26% 2.41%
Other Revenue (Expenses)
Interest Income 0 0 0 0 0 0 0 0 0 0
Interest Expense 0 0 0 0 0 0 0 0 0 0
Rent for 500 sq. ft. 0 0 0 0 0 0 0 0 0 0
Other Non-operating (expense) (24,311) 0 0 0 0 0 0 0 0 0
Total Other Revenues (Expenses) (24,311) 0 0 0 0 0 0 0 0 0
• AS % OF GROSS SALES (1.00%) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Interest expense
City/Community Loan 1,962 1,880 1,796 1,709 1,621 1,531 1,440 1,346 1,250 1,154
Member Loans 0 0 0 0 0 0 0 0 0 0
Vendor Credit 0 0 0 0 0 0 0 0 0 0
Bank Debt 28,905 28,102 27,249 26,345 25,383 24,363 23,280 22,130 20,909 19,613
Total Interest Expense 0 30,866 29,981 29,044 28,053 27,003 25,893 24,719 23,475 22,158 20,766
• AS % OF GROSS SALES 1.27% 1.01% 0.85% 0.75% 0.65% 0.60% 0.54% 0.49% 0.44% 0.39%
PROFIT/(LOSS) BEFORE PATRONAGE & TAXES (372,082) (166,230) (149,863) (137,184) (76,498) (69,522) (16,857) 79,263 91,088 106,054
• AS % OF GROSS SALES (15.30%) (5.60%) (4.39%) (3.66%) (1.85%) (1.60%) (0.37%) 1.66% 1.82% 2.01%
Patronage Rebate expense
• AS % OF GROSS SALES 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
PROFIT/(LOSS) BEFORE TAXES 0 0 (372,082) (166,230) (149,863) (137,184) (76,498) (69,522) (16,857) 79,263 91,088 106,054
• AS % OF GROSS SALES (15.30%) (5.60%) (4.39%) (3.66%) (1.85%) (1.60%) (0.37%) 1.66% 1.82% 2.01%
Income Taxes 0 0 0 0 0 0 0 0 0 0 0
• AS % OF GROSS SALES 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
PROFIT/(LOSS) 0 0 (372,082) (166,230) (149,863) (137,184) (76,498) (69,522) (16,857) 79,263 91,088 106,054
• AS % OF GROSS SALES (15.30%) (5.60%) (4.39%) (3.66%) (1.85%) (1.60%) (0.37%) 1.66% 1.82% 2.01%

42. Income Statement Components
n Income
n Expenses
n Income from Opera8ons
n Other Revenue/Expenses
n Interest expense
n Profit or Loss before Patronage & Taxes
n Patronage expense
n Taxes
n Profit/Loss

43. Income
INCOME
RETAIL SQ/FT 4,200 4,200 4,200 4,200
GROSS SALES SQ/FT 579 706 812 893
GROSS SALES $2,431,141 $2,965,993 $3,410,891 $3,751,981
% SALES GROWTH 22.00% 15.00% 10.00%
COST OF GOODS SOLD 1,628,865 1,957,555 2,251,188 2,476,307
• AS % OF GROSS SALES 67.00% 66.00% 66.00% 66.00%
GROSS MARGIN 802,277 1,008,437 1,159,703 1,275,673
• AS % OF GROSS SALES 33.00% 34.00% 34.00% 34.00%
3/3/2016 0:00
Sources &
Uses Beginning YEAR 1 YEAR 2 YEAR 3 YEAR 4

44. Expenses
Personnel & Occupancy
Personnel Costs
Payroll & Salary Expense 437,605 489,389 562,797 619,077
Payroll Taxes & Benefits 145,868 163,130 187,599 206,359
Total Personnel Costs 583,474 652,518 750,396 825,436
• AS % OF GROSS SALES 24.00% 22.00% 22.00% 22.00%
OccupancyExpenses
Rent 96,000 96,000 102,000 102,000
Real and Property Taxes, Insurance & CAM 0 0 0 0
Repairs & Maintenance 9,725 10,016 10,317 10,626
Insurance 9,725 10,016 10,317 10,626
Utilities 30,000 31,500 33,075 34,729
Licenses & Permits 3,500 3,605 3,713 3,825
Building Services 5,000 5,150 5,305 5,464
Depreciation/Amortization 147,709 138,695 141,838 143,981
Total OccupancyExpenses 301,659 294,983 306,564 311,250
• AS % OF GROSS SALES 12.41% 9.95% 8.99% 8.30%
Occupancy Expenses less Depreciation/Amortization 6.33% 5.27% 4.83% 4.46%
Depreciation/Amortization 6.08% 4.68% 4.16% 3.84%
3/3/2016 0:00 YEAR 1 YEAR 2 YEAR 3 YEAR 4

45. Opera8ng Expenses
Operating Expenses
Store Supplies 55,308 38,558 44,342 48,776
Credit Card Fees 33,550 40,931 47,070 51,777
Telephone/Internet 2,003 2,444 2,811 3,092
Small Equipment purchases 3,890 4,746 5,457 6,003
Trash/Baler 1,459 1,780 2,047 2,251
Bad Debt, Cash Over (Short), Bank Charges 243 297 341 375
Vehicle Expense 0 0 0 0
Miscellaneous 4,862 7,415 8,527 9,380
Total Operating Expenses 101,315 96,169 110,595 121,654
• AS % OF GROSS SALES 4.17% 3.24% 3.24% 3.24%
3/3/2016 0:00 YEAR 1 YEAR 2 YEAR 3 YEAR 4

46. Administra8ve & Governance Expenses
Administrative Expenses
Office Supplies/Postage 11,852 9,639 11,085 12,194
Dues & Subscriptions 3,355 4,093 4,707 5,178
Legal, Accounting, Consulting Fees 46,775 20,465 23,535 25,889
Travel Expenses 2,516 3,070 3,530 3,883
Total Administrative Expenses 64,498 37,268 42,858 47,144
• AS % OF GROSS SALES 2.65% 1.26% 1.26% 1.26%
Governance/Member Expense
Board of Directors 5,105 6,229 6,566 7,223
Newsletter Expense 2,431 2,966 3,411 3,752
Member Services 851 1,038 1,194 1,313
Total Governance/Member Expense 8,387 10,233 11,171 12,288
• AS % OF GROSS SALES 0.35% 0.35% 0.33% 0.33%
3/3/2016 0:00 YEAR 1 YEAR 2 YEAR 3 YEAR 4

47. Promo8on Expenses
Promotion Expense
Advertising 48,623 39,151 42,295 46,525
Merchandising & Promotion 9,725 11,864 13,644 15,008
Contributions/Donations 1,500 2,500 3,000 5,500
Total Promotional Expenses 59,847 53,515 58,939 67,032
• AS % OF GROSS SALES 2.46% 1.80% 1.73% 1.79%
3/3/2016 0:00 YEAR 1 YEAR 2 YEAR 3 YEAR 4

48. Total Opera8ng Expenses & Income
TOTAL OPERATING EXPENSES 1,119,181 1,144,686 1,280,522 1,384,804
• AS % OF GROSS SALES 46.04% 38.59% 37.54% 36.91%
INCOME FROM OPERATIONS (316,904) (136,248) (120,819) (109,131)
• AS % OF GROSS SALES (13.04%) (4.59%) (3.54%) (2.91%)
3/3/2016 0:00 YEAR 1 YEAR 2 YEAR 3 YEAR 4

49. Other Revenue & Interest
Other Revenue (Expenses)
Interest Income 0 0 0 0
Interest Expense 0 0 0 0
Rent for 500 sq. ft. 0 0 0 0
Other Non-operating (expense) (24,311) 0 0 0
Total Other Revenues (Expenses) (24,311) 0 0 0
• AS % OF GROSS SALES (1.00%) 0.00% 0.00% 0.00%
Interest expense
City/Community Loan 1,962 1,880 1,796 1,709
Member Loans 0 0 0 0
Vendor Credit 0 0 0 0
Bank Debt 28,905 28,102 27,249 26,345
Total Interest Expense 30,866 29,981 29,044 28,053
• AS % OF GROSS SALES 1.27% 1.01% 0.85% 0.75%
3/3/2016 0:00 YEAR 1 YEAR 2 YEAR 3 YEAR 4

50. Bokom Line
PROFIT/(LOSS) BEFORE PATRONAGE & TAXES (372,082) (166,230) (149,863) (137,184)
• AS % OF GROSS SALES (15.30%) (5.60%) (4.39%) (3.66%)
Patronage Rebate expense
• AS % OF GROSS SALES 0.00% 0.00% 0.00% 0.00%
PROFIT/(LOSS) BEFORE TAXES (372,082) (166,230) (149,863) (137,184)
• AS % OF GROSS SALES (15.30%) (5.60%) (4.39%) (3.66%)
Income Taxes 0 0 0 0
• AS % OF GROSS SALES 0.00% 0.00% 0.00% 0.00%
PROFIT/(LOSS) (372,082) (166,230) (149,863) (137,184)
• AS % OF GROSS SALES (15.30%) (5.60%) (4.39%) (3.66%)
3/3/2016 0:00 YEAR 1 YEAR 2 YEAR 3 YEAR 4

51. Cash Flow
51

52. STATEMENT OF CASH FLOW
Profit (loss) (372,082) (166,230) (149,863) (137,184) (76,498) (69,522) (16,857) 79,263 91,088 106,054
Depreciation (Gross Accumulated Depreciation) 147,709 138,695 141,838 143,981 149,266 151,409 153,552 82,909 85,052 86,052
Interest Expense Add back 30,866 29,981 29,044 28,053 27,003 25,893 24,719 23,475 22,158 20,766
Subtotal (193,506) 2,447 21,019 34,850 99,771 107,781 161,415 185,648 198,299 212,872
Changes In Working Capital
Prepaid Items 0 0 0 0 0 0 0 0 0 0
Inventories 0 (5,040) (5,191) (5,347) (5,507) (5,673) (5,843) (6,018) (6,199) (6,385)
Accounts Receivable 0 0 0 0 0 0 0 0 0 0
Accounts Payable 111,566 22,513 20,112 15,419 14,134 9,187 6,530 9,973 10,472 10,995
Accrued Payroll and Payroll Taxes 11,221 1,328 1,882 1,443 1,389 863 906 722 988 1,037
Sales Tax Payables 2,532 557 463 355 391 215 226 237 249 261
BLANK 0 0 0 0 0 0 0 0 0 0
Income tax Payable 0 0 0 0 0 0 0 0 0 0
BLANK 0 0 0 0 0 0 0 0 0 0
TOTAL 125,319 19,358 17,266 11,871 10,407 4,593 1,819 4,914 5,510 5,909
CASH FLOWS FROM OPERATIONS (68,187) 21,805 38,285 46,721 110,178 112,373 163,234 190,561 203,809 218,781
INVESTMENTS
Investments 0 0 0 0 0 0 0 0 0 0
BLANK 0 0 0 0 0 0 0 0 0 0
Deposits 0 0 0 0 0 0 0 0 0 0
Organization Development Costs 0 0 0 0 0 0 0 0 0 0
Land 0 0 0 0 0 0 0 0 0 0
Building contingency 0 0 0 0 0 0 0 0 0 0
Building 0 0 0 0 0 0 0 0 0 0
Equipment 0 (15,000) (15,000) (15,000) (30,000) (15,000) (15,000) (15,000) (15,000) (15,000)
Leasehold Improvements 0 0 (15,000) 0 (15,000) 0 0 (15,000) 0 (15,000)
CASH FLOW FROM INVESTMENTS 0 (15,000) (30,000) (15,000) (45,000) (15,000) (15,000) (30,000) (15,000) (30,000)
CASH FLOWS FROM EQUITY ACTIVITIES:
Member Equity 28,800 28,800 28,800 28,800 28,800 16,000 16,000 8,000 8,000 8,000
Worker Equity 2,500 3,750 3,750 625 625 625 250 250 250 250
Preferred Shares through DPO 0 0 0 0 0 (25,000) (25,000) (50,000) (75,000) (100,000)
Preferred Shares Dividends 0 0 0 0 0 (15,000) (14,250) (13,500) (12,000) (9,750)
CASH FLOWS FROM EQUITY ACTIVITIES: 31,300 32,550 32,550 29,425 29,425 (23,375) (23,000) (55,250) (78,750) (101,500)
CASH FLOW BEFORE DEBT SERVICE (36,887) 39,355 40,835 61,146 94,603 73,998 125,234 105,311 110,059 87,281
DEBT SERVICE (Principal & Interest)
City/Community Loan (6,071) (6,071) (6,071) (6,071) (6,071) (6,071) (6,071) (6,071) (6,071) (6,071)
Vendor Credit 0 0 0 0 0 0 0 0 0 0
Bank Debt (41,924) (41,924) (41,924) (41,924) (41,924) (41,924) (41,924) (41,924) (41,924) (41,924)
Member Loans 0 0 0 0 0 0 0 0 0 0
TOTAL LONG TERM LIABILITIES (47,994) (47,994) (47,994) (47,994) (47,994) (47,994) (47,994) (47,994) (47,994) (47,994)
TOTAL CASH FLOW (84,881) (8,640) (7,159) 13,151 46,609 26,004 77,240 57,317 62,064 39,287
BEGINNING CASH 224,491 139,610 130,970 123,811 136,962 183,570 209,574 286,814 344,131 406,195
ENDING CASH 139,610 130,970 123,811 136,962 183,570 209,574 286,814 344,131 406,195 445,482

53. Cash Flow
STATEMENT OF CASH FLOW
Profit (loss) (372,082) (166,230) (149,863) (137,184)
Depreciation (Gross Accumulated Depreciation) 147,709 138,695 141,838 143,981
Interest Expense Add back 30,866 29,981 29,044 28,053
Subtotal (193,506) 2,447 21,019 34,850
3/3/2016 0:00 Uses Beginning YEAR 1 YEAR 2 YEAR 3 YEAR 4

54. Cash Flow: Changes in Working Capital
3/3/2016 0:00 Uses Beginning YEAR 1 YEAR 2 YEAR 3 YEAR 4
Changes In Working Capital
Prepaid Items 0 0 0 0
Inventories 0 (5,040) (5,191) (5,347)
Accounts Receivable 0 0 0 0
Accounts Payable 111,566 22,513 20,112 15,419
Accrued Payroll and Payroll Taxes 11,221 1,328 1,882 1,443
Sales Tax Payables 2,532 557 463 355
0 0 0 0
Income tax Payable 0 0 0 0
0 0 0 0
TOTAL 125,319 19,358 17,266 11,871
CASH FLOWS FROM OPERATIONS (68,187) 21,805 38,285 46,721

55. Cash Flow from Investments
3/3/2016 0:00 Uses Beginning YEAR 1 YEAR 2 YEAR 3 YEAR 4
INVESTMENTS
Investments 0 0 0 0
BLANK 0 0 0 0
Deposits 0 0 0 0
Organization Development Costs 0 0 0 0
Land 0 0 0 0
Building contingency 0 0 0 0
Building 0 0 0 0
Equipment 0 (15,000) (15,000) (15,000)
Leasehold Improvements 0 0 (15,000) 0
CASH FLOWFROM INVESTMENTS 0 (15,000) (30,000) (15,000)

56. Cash Flows from Equity Ac8vity
3/3/2016 0:00 Uses Beginning YEAR 1 YEAR 2 YEAR 3 YEAR 4
CASH FLOWS FROM EQUITY ACTIVITIES:
Member Equity 28,800 28,800 28,800 28,800
Worker Equity 2,500 3,750 3,750 625
Preferred Shares through DPO 0 0 0 0
Preferred Shares Dividends 0 0 0 0
CASH FLOWS FROM EQUITY ACTIVITIES: 31,300 32,550 32,550 29,425
CASH FLOWS FROM EQUITY ACTIVITIES:
Member Equity 28,800 28,800 28,800 28,800 28,800 16,000 16,000
Worker Equity 2,500 3,750 3,750 625 625 625 250
Preferred Shares through DPO 0 0 0 0 0 (25,000) (25,000)
Preferred Shares Dividends 0 0 0 0 0 (15,000) (14,250)
CASH FLOWS FROM EQUITY ACTIVITIES: 31,300 32,550 32,550 29,425 29,425 (23,375) (23,000)
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7

57. Cash Flow from Debt Service
3/3/2016 0:00 Uses Beginning YEAR 1 YEAR 2 YEAR 3 YEAR 4
CASH FLOWBEFORE DEBT SERVICE (36,887) 39,355 40,835 61,146
DEBT SERVICE (Principal & Interest)
City/Community Loan (6,071) (6,071) (6,071) (6,071)
Vendor Credit 0 0 0 0
Bank Debt (41,924) (41,924) (41,924) (41,924)
Member Loans 0 0 0 0
TOTAL LONG TERM LIABILITIES (47,994) (47,994) (47,994) (47,994)

58. Total Cash Flow
TOTALCASHFLOW (84,881) (8,640) (7,159) 13,151 46,609 26,004 77,240
BEGINNING CASH 224,491 139,610 130,970 123,811 136,962 183,570 209,574
ENDING CASH 139,610 130,970 123,811 136,962 183,570 209,574 286,814
3/3/20160:00 YEAR1 YEAR2 YEAR3 YEAR4 YEAR5 YEAR6 YEAR7

59. Cash Flow vs. Profit
TOTALCASHFLOW (84,881) (8,640) (7,159) 13,151 46,609 26,004 77,240
BEGINNING CASH 224,491 139,610 130,970 123,811 136,962 183,570 209,574
ENDING CASH 139,610 130,970 123,811 136,962 183,570 209,574 286,814
3/3/20160:00 YEAR1 YEAR2 YEAR3 YEAR4 YEAR5 YEAR6 YEAR7
PROFIT/(LOSS) (372,082) (166,230) (149,863) (137,184) (76,498) (69,522) (16,857)
• AS %OF GROSS SALES (15.30%) (5.60%) (4.39%) (3.66%) (1.85%) (1.60%) (0.37%)

60. Ra8o Analysis
3/3/2016 0:00 YEAR 1 YEAR 2 YEAR 3 YEAR 4
RATIOS
DEBT/EQUITY 0.64 0.73 0.84 0.96
DEBT/EQUITY+MEMBER LOANS 0.64 0.73 0.84 0.96
CURRENT RATIO 2.15 1.80 1.57 1.52
DEBT COVERAGE (3.96) 0.05 0.43 0.71
DEBT COVERAGE w/o MEMBER LOANS (3.96) 0.05 0.43 0.71
RETURN ON EQUITY -29.53% -16.26% -16.71% -17.49%
INVENTORY TURNOVERS 10 11 13 14
PROFIT MARGIN ON SALES -15.30% -5.60% -4.39% -3.66%
RATE OF RETURN ON ASSETS -19.57% -9.66% -9.36% -9.21%
SALES PER SQ. FT. $579 $706 $812 $893
OWNERSHIP (EQUITY/ASSETS) 61.02% 57.65% 54.30% 50.96%
WORKING CAPITAL $'S $164,279 $135,344 $109,927 $110,158

61. Debt Schedule
TOTAL LOANS Beginning YEAR 1 YEAR 2 YEAR 3 YEAR 4
Interest Expense 0 30,866 29,981 29,044 28,053
Average Line Of Credit 0 0 0 0 0
Long term portion 570,520 552,506 533,556 513,614 492,624
Current portion 17,126 18,012 18,949 19,941 20,990
Total Loans 587,646 570,518 552,505 533,555 513,614
Closing Costs 0 0 0 0 0
Initial Term Loans Amount 587,647 587,647 587,647 587,647 587,647
Average Term Payments 0 47,994 47,994 47,994 47,994
Average Term Principal Paid 1 17,128 18,013 18,950 19,941
Bank Debt
AMOUNT 487,647 487,647 487,647 487,647 487,647
RATE 6.00% 6.00% 6.00% 6.00% 6.00%
MONTHS 240 240 240 240 240
PRINCIPAL BALANCE 487,646 474,627 460,805 446,130 430,551
CURRENT MONTH NO. 0 12 24 36 48
MONTH NUMBER + 12 12 24 36 48 60
LONG TERM PORTION 474,628 460,806 446,131 430,551 414,010
CURRENT PORTION 13,018 13,821 14,674 15,579 16,541
MONTHLY PAYMENTS 3,494 3,494 3,494 3,494 3,494
TOTAL PAYMENTS 0 41,924 41,924 41,924 41,924
PRINCIPAL PAID 1 13,019 13,822 14,675 15,579
INTEREST PAID 0 28,905 28,102 27,249 26,345

62. Access to Capital
n Owner equity
n Fundraising & grants
n Owner loans
n Preferred shares
n Economic development funds
n Coopera8ve loan funds
n Commercial lenders

63. Contract with a Specialist
n Are you…
n Fully conversant with financial budgets and repor8ng?
n Able to set up and manage complex spreadsheets?
n Familiar with food co-op opera8ons and financial performance?
n Able to access historical financial data and adapt it to fit your co-op’s plans?
n Willing to take responsibility for the accuracy of your projec8ons?
n No? Not sure?
n Hire a professional consultant with specialized experHse.

64. Addi8onal Resources
n Sources & Uses Budget Template:
hkp://www.foodcoopini8a8ve.coop/sites/default/files/Sources
%20%26%20Uses%20template%2C%20start-ups%2C%20March
%207%202016%20bg.xls
n Developing a Budget for a Food Coopera8ve (recorded workshop):
hkps://youtu.be/I0tLXTuheMo?list=PLA2749DE9E2C56641
n Why Some Co-ops Fail (Coopera8ve Grocer ar8cle):
hkp://www.grocer.coop/ar8cles/why-some-co-ops-fail
n What is a Feasibility Study, Anyway? (Webinar):
hkps://youtu.be/wYLwKKAqKio
www.fci.coop