Healthy Restaurant Business Plan

Financial Plan

The following sections will outline important financial information.

The following section will detail important Financial Assumptions.

The following chart and table will indicate Projected Cash Flow.

Pro Forma Cash Flow
	2003	2004	2005
Cash Received

Cash from Operations
Cash Sales	$80,597	$255,156	$475,163
Subtotal Cash from Operations	$80,597	$255,156	$475,163

Additional Cash Received
Sales Tax, VAT, HST/GST Received	$0	$0	$0
New Current Borrowing	$20,000	$0	$0
New Other Liabilities (interest-free)	$0	$0	$0
New Long-term Liabilities	$0	$75,000	$75,000
Sales of Other Current Assets	$0	$0	$0
Sales of Long-term Assets	$0	$0	$0
New Investment Received	$10,000	$0	$0
Subtotal Cash Received	$110,597	$330,156	$550,163

Expenditures	2003	2004	2005

Expenditures from Operations
Cash Spending	$46,550	$99,200	$147,800
Bill Payments	$50,960	$127,404	$242,199
Subtotal Spent on Operations	$97,510	$226,604	$389,999

Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out	$0	$0	$0
Principal Repayment of Current Borrowing	$5,500	$5,500	$5,500
Other Liabilities Principal Repayment	$0	$0	$0
Long-term Liabilities Principal Repayment	$0	$7,500	$7,500
Purchase Other Current Assets	$0	$0	$0
Purchase Long-term Assets	$0	$75,000	$75,000
Dividends	$0	$0	$0
Subtotal Cash Spent	$103,010	$314,604	$477,999

Net Cash Flow	$7,586	$15,552	$72,164
Cash Balance	$12,575	$28,127	$100,291

The Break-even Analysis indicates that $10,099 will be needed in monthly revenue to reach the break-even point.

Break-even Analysis


Monthly Revenue Break-even	$10,099

Assumptions:
Average Percent Variable Cost	30%
Estimated Monthly Fixed Cost	$7,069

The following table indicates Projected Profit and Loss.

Pro Forma Profit and Loss
	2003	2004	2005
Sales	$80,597	$255,156	$475,163
Direct Cost of Sales	$24,179	$76,547	$142,549
Other Costs of Sales	$0	$0	$0
Total Cost of Sales	$24,179	$76,547	$142,549

Gross Margin	$56,418	$178,609	$332,614
Gross Margin %	70.00%	70.00%	70.00%


Expenses
Payroll	$46,550	$99,200	$147,800
Sales and Marketing and Other Expenses	$3,600	$7,200	$10,000
Depreciation	$12,996	$20,000	$24,000
Rent	$9,000	$18,000	$27,000
Utilities	$2,400	$4,800	$7,200
Insurance	$2,400	$4,800	$7,200
Payroll Taxes	$6,983	$14,880	$22,170
Other	$900	$1,800	$2,700

Total Operating Expenses	$84,829	$170,680	$248,070

Profit Before Interest and Taxes	($28,411)	$7,929	$84,544
EBITDA	($15,415)	$27,929	$108,544
Interest Expense	$1,867	$4,836	$11,036
Taxes Incurred	$0	$928	$22,052

Net Profit	($30,278)	$2,165	$51,456
Net Profit/Sales	-37.57%	0.85%	10.83%

The following table will indicate the Projected Balance Sheet.

Pro Forma Balance Sheet
	2003	2004	2005
Assets

Current Assets
Cash	$12,575	$28,127	$100,291
Other Current Assets	$0	$0	$0
Total Current Assets	$12,575	$28,127	$100,291

Long-term Assets
Long-term Assets	$22,141	$97,141	$172,141
Accumulated Depreciation	$21,985	$41,985	$65,985
Total Long-term Assets	$156	$55,156	$106,156
Total Assets	$12,731	$83,283	$206,447

Liabilities and Capital	2003	2004	2005

Current Liabilities
Accounts Payable	$4,610	$10,996	$20,705
Current Borrowing	$14,500	$9,000	$3,500
Other Current Liabilities	$0	$0	$0
Subtotal Current Liabilities	$19,110	$19,996	$24,205

Long-term Liabilities	$2,858	$70,358	$137,858
Total Liabilities	$21,968	$90,354	$162,063

Paid-in Capital	$10,000	$10,000	$10,000
Retained Earnings	$11,041	($19,237)	($17,071)
Earnings	($30,278)	$2,165	$51,456
Total Capital	($9,237)	($7,071)	$44,384
Total Liabilities and Capital	$12,731	$83,283	$206,447

Net Worth	($9,237)	($7,071)	$44,384

The following table indicates common Business Ratios specific to Kona-Q as well as industry ratios.

Ratio Analysis
	2003	2004	2005	Industry Profile
Sales Growth	-30.19%	216.58%	86.22%	6.96%

Percent of Total Assets
Other Current Assets	0.00%	0.00%	0.00%	28.39%
Total Current Assets	98.77%	33.77%	48.58%	37.68%
Long-term Assets	1.23%	66.23%	51.42%	62.32%
Total Assets	100.00%	100.00%	100.00%	100.00%

Current Liabilities	150.10%	24.01%	11.72%	19.17%
Long-term Liabilities	22.45%	84.48%	66.78%	29.21%
Total Liabilities	172.55%	108.49%	78.50%	48.38%
Net Worth	-72.55%	-8.49%	21.50%	51.62%

Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	70.00%	70.00%	70.00%	59.31%
Selling, General & Administrative Expenses	105.61%	70.92%	60.97%	39.09%
Advertising Expenses	0.00%	0.00%	0.00%	2.75%
Profit Before Interest and Taxes	-35.25%	3.11%	17.79%	1.59%

Main Ratios
Current	0.66	1.41	4.14	1.26
Quick	0.66	1.41	4.14	0.87
Total Debt to Total Assets	172.55%	108.49%	78.50%	3.27%
Pre-tax Return on Net Worth	327.79%	-43.75%	165.62%	54.38%
Pre-tax Return on Assets	-237.82%	3.71%	35.61%	7.17%

Additional Ratios	2003	2004	2005
Net Profit Margin	-37.57%	0.85%	10.83%	n.a
Return on Equity	0.00%	0.00%	115.93%	n.a

Activity Ratios
Accounts Payable Turnover	11.13	12.17	12.17	n.a
Payment Days	29	21	23	n.a
Total Asset Turnover	6.33	3.06	2.30	n.a

Debt Ratios
Debt to Net Worth	0.00	0.00	3.65	n.a
Current Liab. to Liab.	0.87	0.22	0.15	n.a

Liquidity Ratios
Net Working Capital	($6,535)	$8,131	$76,086	n.a
Interest Coverage	-15.22	1.64	7.66	n.a

Additional Ratios
Assets to Sales	0.16	0.33	0.43	n.a
Current Debt/Total Assets	150%	24%	12%	n.a
Acid Test	0.66	1.41	4.14	n.a
Sales/Net Worth	0.00	0.00	10.71	n.a
Dividend Payout	0.00	0.00	0.00	n.a