The document provides financial projections for Prince Auto Service for the first three years of operation, including projected sales, expenses, profits, cash flows, and balance sheets. It also outlines key assumptions like payroll tax rates and annual growth rates. An implementation plan with milestones and a list of required start-up equipment and their costs is included.

1. Get to where you need to go more
efficiently…

2. Financial
projections
Key Assumptions
Description Value
Payroll Tax 10 %
Average growth rate Year 2 25 %
Average growth rate Year 3 25 %
Average Credit Card Fees 2%
All financial projections are based on the following assumptions:

3. Sales Forecasts
The following table provides details of the projected sales of Prince Auto Service:
Sales Per Period (US Dollars)
Product Name Period 1 Period 2 Period 3
Headlight and bulb 23,520 29,400 36,750
System Evaluations 18,880 23,600 29,500
Fluid Services 64,350 80,388 100,485
Tune Ups 39,500 49,375 61,699
Coolant System 19,497 24,371.25 30,480.31
Battery 1,998 2,497.5 3,116.88
Tires 8,000 10,000 12,500
Inspection 6,000 7,500 9,380
Total 181,745 227,131.75 283,911.19

4. Break Even Analysis
10.3. Break Even Analysis
The following chart represents the Break-Even analysis based on the projections of the first year.
According to this analysis, the Break-Even point will be achieved when monthly sales reach
7,592 US Dollars.

5. Projected Profit & Loss
Period 1 Period 2 Period 3
Sales 181,745 227,131.75 283,911.19
Variable Costs 3,634.9 4,542.64 5,678.22
Gross Margin 178,110.1 222,589.12 278,232.97
Gross Margin (%) 98 % 98 % 98 %
Expenses
Rent 8,400 8,400 8,400
Utilities 4,800 4,800 4,800
Cable/Wifi Phone 1,188 1,188 1,188
Insurance 2,400 2,400 2,400
Licenses 480 480 480
Oil Disposal 2,400 2,400 2,400
Uniform & Towels 1,800 1,800 1,800
Management Salary 50,000 54,000 58,000
Personnel Salary 0 26,000 26,000
Outside Support 0 0 0
Marketing Campaigns 2,150 2,650 3,150
Payroll Tax 5,000 8,000 8,400
Total Operating Expenses 78,618 112,118 117,018
Profit Before Interest and Taxes
(EBITDA)
99,492.1 110,471.12 161,214.97
Depreciation 0 0 0
Amortized Startup Expenses 43,333.33 43,333.33 43,333.33
Interest Paid 10,669.27 10,372.87 10,058.19
Net Profit Before Taxes 45,489.49 56,764.91 107,823.44
Corporation Taxes 0 0 0
Net Profit 45,489.49 56,764.91 107,823.44
Net Profit (%) 25.03 % 24.99 % 37.98 %
The table below shows the projected profit and loss
results for the next 3 years.
Profit & Loss Chart

6. Projected Cash Flow & Chart
Period 1 Period 2 Period 3
Cash From Operations
Cash Sales 181,745 227,131.75 283,911.19
Total Cash From
Operations
181,745 227,131.75 283,911.19
Expenditures
Expenditures From
Operations
Variable Cost Paid in Cash 3,634.9 4,542.64 5,678.22
Operating Expenses 78,618 112,118 117,018
Payment of Accounts
Payable
0 0 0
Total Spent on Operations 82,252.9 116,660.64 122,696.22
Additional Expenditures
Repayment of Principal 4,805.64 5,102.04 5,416.72
Interest Paid 10,669.27 10,372.87 10,058.19
Corporate Tax 0 0 0
Asset Purchase 0 0 0
Startup Expenses 130,000 0 0
Initial Inventory 0 0 0
Total Additional
Expenditures
145,474.91 15,474.91 15,474.91
Net Cash Flow -45,982.81 94,996.2 145,740.06
Dividends (0) (0) (0)
Cash at the beginning of the
period
220,000 174,017.19 269,013.39
Cash Balance 174,017.19 269,013.39 414,753.45

7. Balance
Period 1 Period 2 Period 3
Assets
Cash 174,017.19 269,013.39 414,753.45
Accounts
Receivable
0 0 0
Inventory 0 0 0
Long Term Assets 21,347 21,347 21,347
Accumulated
Depreciation
( 0 ) ( 0 ) ( 0 )
Deferred Assets 130,000 130,000 130,000
Startup Expenses
Accumulated
Amortization
( 43,333.33 ) ( 86,666.67 ) ( 130,000 )
Total Assets 282,030.86 333,693.73 436,100.45
Liabilities And
Equity
Accounts Payable 0 0 0
Liabilities 175,194.36 170,092.32 164,675.6
Total Liabilities 175,194.36 170,092.32 164,675.6
Paid-in Capital 40,000 40,000 40,000
Retained Earnings 45,489.49 102,254.4 210,077.85
Net Worth 85,489.49 142,254.4 250,077.85
Total Liabilities
And Equity
260,683.86 312,346.73 414,753.45

8. Implementation Plan
The following table shows the milestones:
Task Due Date Responsible
Business Plan 01/16/2016
Logo Design 02/01/2016
Financial Backing 02/01/2016
Leasing Contract 02/01/2016
Office Equipment 02/01/2016
Website Launching 02/01/2016
Store Opening 02/28/2016
Business Incorporation 03/01/2016

9. Start-Up Expenses & Variable Costs
Business Licenses LLC-174.00, ASE- 73.00
Incorporation Expenses
Deposits
Bank Account
Rent
Interior Modifications $3,800
Equipment/Machinery Required:
Item 1 Drawer Chest and Cabinet Combo
Item 2 Creeper
Item 3 Premium Refrigerant Recovery,
Recycling and Recharging Machine
Item 4 High and Low Side Coupler Set
Item 5 Dual Manifold Gauge Set
Item 6 Refrigerant and Oil Charge Can Tap
Item 7 In-Line Dye and Oil Injector
Item 8 USB Rechargeable UV Light with
Glasses
Item 9 Monty 1520 20’ Capacity Tire Changer
Item 10 Model 775 Wheel Balancer
Item 11 TPMS Sensor Starter Kit
Item 12 TPMS Replacement Valve Stem
Assortment
Item 13 5 Piece Torque Limiting Extension Set
(1/2’ Drive)
Item 14 4 Piece, Deep Thin Wall, SAE and
Metric Impact Flip Socket Set (1/2’
Drive)
Product: Free Variable Cost Per Unit (US Dollars)
Description Period 1 Period 2 Period 3
Average
Credit Card
Fees
2% 2% 2%
Total 0 0 0
VARIABLE COSTS

10. Start-Up Expenses Chart continued..
Item 15 3,000 Lbs. 2-Post Lift
Item 16 20 Ton Shop Press
Item 17 Bearing Splitter ½” to 4-5/8”
Item 18 21 Gallon Waste Oil Drain
Item 19 7 Piece Oil Filter Removal Wrench Set
Item 20 Cooling System Pressure Test Set
Item 21 Maxi TPMS TS501 Professional Tool
Item 22 5 HP Vertical Air Compressor
Item 23 ½” x 50’ Value Series Air Hose Reel
Item 24 Tire Inflator
Item 25 Professional Battery Tester
Item 26 Schumacher Wheel Changer
Item 27 ProSeries Jump Start
Item 28 Honda Crankshaft Pulley Holding Tool
Item 29 Pneumatic Fan Clutch Wrench Set
Item 30 Model 7600 Strut Spring Compressor
Item 31 Computer Safe Circuit Tester
Item 32 116 Piece Starter Kit
Item 33 12 Piece (Metric)
Item 34 51-Piece, ¼” Drive General Service Set
TOTAL EQUIPMENT COST $21,347.68