Appendices
Five-Year Projections— Income Statement ('000)
| FY | FY | FY | FY | FY | |
| 2000 | 2001 | 2002 | 2003 | 2004 | |
| Revenue | $5,253 | $99,677 | $305,228 | $542,687 | $921,189 |
| Expenses G&A | $4,942 | $9,930 | $19,035 | $42,454 | $83,044 |
| Sales, Marketing & Services | $7,412 | $14,897 | $28,553 | $63,682 | $124,566 |
| Total | $12,354 | $24,827 | $47,588 | $106,136 | $207,610 |
| Operating Income | -$7,101 | $74,850 | $257,640 | $436,551 | $713,579 |
| Interest/Other Expenses | $0 | $510 | $510 | $510 | $510 |
| Income Before Taxes | $0 | $74,340 | $257,130 | $436,041 | $713,069 |
| Income Taxes | $0 | $26,019 | $89,996 | $152,614 | $249,574 |
| Net Income | -$7,101 | $48,321 | $167,135 | $283,427 | $463,495 |
Five-Year Projections— Balance Sheet ('000)
| FY | FY | FY | FY | FY | |
| 2000 | 2001 | 2002 | 2003 | 2004 | |
| Assets | |||||
| Cash | $6,370 | $72,073 | $226,657 | $510,415 | $974,241 |
| Accounts Receivable | 140 | 3,000 | 9,150 | 12,352 | 16,675 |
| Other Assets | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 |
| Total | $11,510 | $80,073 | $240,807 | $527,767 | $995,916 |
| PP&E | $400 | $1,100 | $1,900 | $2,650 | $3,150 |
| Prepaid Costs | 100 | 100 | 100 | 100 | 100 |
| $500 | $1,200 | $2,000 | $2,750 | $3,250 | |
| Total Assets | $12,010 | $81,273 | $242,807 | $530,517 | $999,166 |
| Liabilities | |||||
| Accounts Payable | $9,883 | $4,965 | $9,518 | $21,227 | $41,522 |
| Senior Revolver | 5000 | 5000 | 5000 | 5000 | 5000 |
| Accrued Expenses | 100 | 800 | 1200 | 1600 | 2200 |
| Total | $14,983 | $10,765 | $15,718 | $27,827 | $48,722 |
| Other Liabilities | $0 | $510 | $765 | $510 | $510 |
| Total Liabilities | $14,983 | $11,275 | $16,483 | $28,337 | $49,232 |
| Shareholders' Equity | |||||
| Common Stock | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
| Preferred Stock | 6000 | 6000 | 6000 | 6000 | 6000 |
| Paid in Capital | 1500 | 1500 | 1500 | 1500 | 1500 |
| Retained Earnings ($15,473) | $57,498 | $213,824 | $489,680 | $937,434 | |
| Total | -2,973 | 69,998 | 226,324 | 502,180 | 949,934 |
| Total Liabilities and Equity | $12,010 | $81,273 | $242,807 | $530,517 | $999,166 |
Notes and Assumptions to Forecast
The forecast included in this business plan represents the projected results of operation and financial conditions for the five-year period. Accordingly, the forecast reflects management's judgment of the expected conditions and its expected course of action as of October 1, 1999. The company's financial reporting periods commence on January 1 and end on December 31.
Forecast
Accounting Policies
The forecast has been prepared on the accrual basis of accounting, in conformance with generally accepted accounting principles.
Tax Assumptions
The forecast assumptions are based upon the current federal tax regulations and the regulations in effect in the state of Vermont.
Operating Expenses
Operating expenses as a percentage of sales are reduced to reflect economies of scale in later years.
Balance Sheet
Accounts Receivable
Accounts receivable assumes a 60-day aging.
Fixed Assets
Depreciation on existing fixed assets is calculated over a five-year life.
Accounts Payable
Substantially all expenditures are assumed to be paid as incurred. Certain other expenses are assumed to be paid in 45 days.
Supplemental Information
THIS BUSINESS PLAN HAS BEEN PREPARED BY THE MANAGEMENT TEAM OF ABC INTERNET MARKETPLACE, INC., AND IS BEING FURNISHED TO SELECT INDIVIDUALS FOR THE SOLE PURPOSE OF PROVIDING POTENTIAL FINANCING TO THE COMPANY. THIS BUSINESS PLAN IS A CONFIDENTIAL DOCUMENT THAT CONTAINS IDEAS, CONCEPTS, METHODS, AND OTHER PROPRIETARY INFORMATION. READERS ARE TO TREAT THE INFORMATION CONTAINED HEREIN AS CONFIDENTIAL AND MAY NOT COPY OR DIVULGE ANY OF THESE MATERIALS WITHOUT THE WRITTEN PERMISSION OF ABC INTERNET MARKETPLACE, INC.
ABC INTERNET MARKETPLACE, INC.
