This section presents our financial projections for the term of the plan.
The company is raising a large investment for the purpose of growth and operations. This funding will cover operating expenses and product development during this period. The following is a breakdown of how the funds will be used.
The following table and chart reflect the company's break-even estimates. These are based on fixed and variable cost estimates derived from past income statement data. Given that Web Solutions has little in the way of marginal costs, the break even analysis reflects the industry's high gross margins. Unless one of the potential future risks seriously impacts profitability, or the company loses its ability to rapidly adjust to changing market conditions, the company does not see this as a serious issue.
Web Solutions 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. The following table provides Web Solution's projected income statements for 2000-2002.
This chart and table show our cash flow and cash balance projections.
The following table outlines Web Solution's projected balance sheets for fiscal years 2000-2002.
Standard business ratios are shown in this table. Industry Profile ratios are based on NAICS code 518111 for Internet Service Providers.