final business plan

ABE INTERNATIONAL COLLEGE OF BUSINESS & ACCOUNTANCYTACLOBAN COLLEGE

TACLOBAN CITY

________________________________________________

In partial fulfillment of the Requirement in the subject Entrepreneurship and Business Plan

“R8 EXPRESS: COFFEE SHOP”

_______________________________

Submitted to

Ms. Grace Betanzor

Submitted by

Bryan GachoMerasol Gumapac

Mark Denver Marilla

S.Y 2010-2011

1

TABLE OF CONTENTS

Acknowledgement

I. Introductory Page 5

A. Name and address of business 5

B. Nature of business 5

C. Statement of financial needed 5

D. Statement of confidentiality report 6

II. Executive Summary 6

III. Industry Analysis 7

A. Future outlook and trends 8

B. 1. Economic Condition 9

2. Socio-Cultural Condition 10

3. Demographic profile 10

C. Analysis of Competitors 10

IV. Description of Venture 11

A. Product

B. Service

C. Size of the Business

D. Office Equipment & Personnel 12

V.Production Plan

2

A. Production Process 13

B. Physical Plant

C. Machinery and Equipment 15

VI. Marketing Plan

A. Pricing 16

B. Distribution

C. Production

D. Target Market Forecast 17

E. Controls 18

VII. Organizational Plan

A. Form of Ownership 19

B. Org. Structure

C. Roles and responsibilities and manners of organization 20

VIII. Assessment of Risk 22

IX. Financial Plan 23

A. Financial Object

B. Projected Income Statement 24-26

C. Projected Cash Flow 27-28

D. Projected Balance Sheet 27

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4

I. Introductory Page

A. Name and Address of business

The group comes up to name the business “R8 EXPRESS: Coffee and T.” R8 stands for Region 8

or the Eastern Visayas Region, for our business is located at the heart of the region- Tacloban. The letter

T stands for tourism since our course THRM is related to Hospitality and Tourism Industry and also to

promote the region’s paradise and attractions through photo gallery concepts.

Downtown district of Tacloban is the proposed location of the business for it ideal source of our

potential target market. It is also that the downtown district is the commercial center of the region.

B. Names and Addresses of Principals

Bryan M. Gacho Brgy. 4, Lawaan Eastern Samar

Merasol R. Gumapac Blk11,L7,A7,P3,V & G Subd. Tac.City

Mark Denver Marilla Sampagita,Sagkahan Tacloban City

C. Nature of Business

The business is a coffee shop that caters mostly to students, coffee shop goers, and individuals

that belongs in the average to above average earner group and has high disposable income.

Its unique concept will give a differential advantage among other coffee shop. “R Express: Coffee

and T.” will be adopting a mix of nature and tourism inspired photo gallery style with Earth color, green

and blue as accent as its concept. Partnership will be the form of this business venture, specifically

general partnership which means that all of the partners will be involved in management.

D. Statement of Financial Needed

Starting a business entails a certain amount of capital. The total investment requirement will be

P2, 500,000.00, 60% will be the partner’s equity and 40% from loan equity. The partnership will be

incurring a loan at the Development Bank of the Philippines; this loan will be worth P1,000,000.00 with

an interest of 10% annually and 7% discount rate. The partner’s equity will be divided equally among the

partners, thus, each partner’s contribution will be P250, 000.00.

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E. Statement of Confidentiality Report

This business plan report is confidential and a property of the partners listed above. Any

reproduction of any of its contents without the prior consent of the group is prohibited.

II. Executive Summary

An innovative coffee business with nature inspired and a twist of nature and tourism

photo gallery concept will be launched as a new competition in the coffee shop market. With the brand

name “ R8 EXPRESS: Coffee and T. “ this will not only serve coffee and the usual cakes but will also

introduce high quality and nutritious region’s delicacies that adds twist to the coffee shop.

This business venture will be a partnership, specifically general partnership and will be located at

the downtown district of Tacloban. Finding of the business comes from two major sources; 60% partner’s

equity and 40% from loan equity.

The business venture will offer, costs less products and pricing scheme that is significantly lower

than that of competitor. We will offer different kinds of coffee, and other beverage, freshly baked cakes

and pastries and delicacies that will depend on the availability and demand.

Food and beverage are not only our main product but also the ambiance and business concept, the

souvenir items at affordable prices and the quality services that will offer recreation, comfort and

satisfaction.

The important values that will be associated with our venture is that, it will not only offer affordable

product but also the quality and health benefit of it specifically patterned to suit the local taste preference.

And we will also looking forward that our business will help in the tourism promotion of the region.

R8 EXPRESS target market are classified into students, middle and high class individuals, young

and middle age professionals, health conscious and travelers/tourists. The venture will cater to both the

informed and uninformed market segments and will also expect to attract a substantial number of 1st-time

coffee shop goers and adventurous coffee shop goers. “R8 EXPRESS” will ensure that customers will get

the best purchase and post-purchase experience and as well as memorable experience as our main service

so as to encourage repeat buyers.

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The promotional strategies that will be employed would include signage, tarpaulins,

flyers/pamphlets, radio ad., sales promotion and internet advertising. The coffee shop itself; the interior

design, theme and the exterior as well are also set to attract customers.

An additional product variety and product innovation will be offered as part of the market

development strategy and after achieving sufficient product compliance from the target market. That will

be projected after the first 2 years of “R8 EXPRESS” operation.

Stiff competition is highly expected for coffee shop business is one of the fastest growing

ventures here in Tacloban. However, with a unique concept and marketing strategy with the positive

results from the market research, maximum profitability may be expected from this business venture, with

an annual growth rate of 10%.

BUSINESS OBJECTIVES AND GOALS: To meet the growing needs of the target market To create social responsibility as to promote the tourism of Eastern Visayas ad

environmental awareness. To establish an effective and profitable marketing mix of product, place, price and

promotion. To increase sales by 10 to 20 per cent annually for the first three years To evaluate the competitive environment and continue to establish a differential

advantage To make agreement with coffee and delicacies distributors and bakery ventures for high

quality and best choice of products To create a cozy and friendly environment To become the foremost coffeehouse in the area

III. Industry Analysis

A. Future Outlook and Trends

About the Coffee Drinking Trends

Each year, several different organizations publish reports on coffee drinking trends in the United States and around the world. Those reports tell how much coffee is bought and sold. They tell who buys and drinks coffee, how much coffee people drink in different parts of the country and the world, and what kind of coffee and coffee drinks are most and least popular.Significance

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Understanding trends in coffee drinking can help coffee shop owners, roasters and other coffee professionals make business decisions about what products to order and offer in their shops. The information is also useful to other food retailers, those in the hospitality industry and anyone who is considering a career in the coffee industry.The Facts The most significant coffee drinking trends in the past 50 years include:- A steady drop in daily coffee consumption from 1950 to 1993- A steady upward trend in daily coffee consumption from 1993 onward- A growing upward trend in specialty coffee consumption beginning in the early 1990s- An increase in the number of people drinking coffee outside the home from 1950 to the present- An increase in the consumption of flavored coffees starting about 1992- A growing awareness of ecological and economic issues surrounding coffee since 2002- The growing number of people concerned with health effects of coffee- An increase in coffee consumption in both young (18 to 24) and senior (60-plus) age groupsEach of these trends has represented significant changes in the way that people view and drink coffee. For instance, the coffee drinking trends from 2003 to 2008 clearly show an increase n the number of people who are more likely to buy a coffee that is Fair Trade certified, which suggests that consumers are growing more concerned with paying a fair price for the coffee that they drink.Benefits The NCDT shows that a growing number of people are concerned about the benefits of drinking coffee, both personally and for the world at large. For instance, according to the 2008 report on coffee drinking trends:- 61 percent of coffee drinkers said that coffee improves their focus- 46 percent listed the health benefits of drinking coffee as one of the reasons they drink coffee- Fair Trade certified and organic coffees are the fastest-growing segment of the specialty coffee market

About Coffee Shop TrendsCoffee is the drink of choice for many people across the world. Every morning millions of people rely on their morning fix to get going for the day. Coffee has become so popular that there are a number of different flavors and combinations available. You can fill up on anything from a white chocolate mocha to a double chocolate chip iced coffee, or even vanilla bean treats. Coffee shops tend to do very well, especially the giant coffee shop chain known as Starbucks. Back in the 1990s, Starbucks started to expand across the entire world. It is now one of the largest coffee shop chains around.

HistoryA. Coffee has been around for thousands of years, but coffee shops have only become

popular over the last 100 years. As more people have relied on caffeine to wake them up in the mornings, many small businesses have capitalized on this need. Coffee shops in general provide a lot of business. Most people would rather get a cup of coffee than enjoy a healthy breakfast. This is partly due to our fast-paced society. Many people are busy, and they don't always have time to sit down for a full breakfast, even if it would do them some good.

BenefitsB. The benefits of these coffee shop trends are many. The proliferation of coffee shops

help the economy to flourish because they encourage spending and create jobs. With 8

coffee shops on every corner, it is not difficult to find a place to buy your morning coffee. This provides consumers with the added convenience of saving time by being able to pick up a quick cup of coffee regardless of where they are. According to the Archives of Internal Medicine, coffee, especially decaffeinated varieties, has been linked to a lower risk of type 2 diabetes. There are many other health benefits of drinking coffee in moderation.

FeaturesC. Coffee is the most popular and widely used herb around, which is the reason why

coffee shops are so popular. People love coffee, so many small business people capitalize on this by opening up coffee shops. Some coffee shops provide Internet access so that people can use their laptops while they enjoy their coffee. This is especially helpful for busy students on the go. The coffee shop trend continues because there is a huge demand for it. If you took a road trip across America, you would find coffee shops on just about every corner. While the biggest and most well-known chain is Starbucks, you will also see many mom-and-pop coffee shops or small coffee shop stands. Even gas stations sell coffee to truckers and other travelers on the road.Brazil has by far the most coffee drinkers worldwide, so you will certainly notice that the coffee shop trends are very popular in Brazil. Some people even say that they can smell the aroma of coffee in the air.Coffee with no sugar or added creamers has no calories, and coffee shops have come up with the trend of offering many coffee drinks and treats that are low-fat.

Read more: About Coffee Shop Trends | eHow.com http://www.ehow.com/about_4567371_coffee-shop-trends.html#ixzz1FQBsIsJe

B.1. Economic Condition:

Philippine EconomyThe Philippines is located in South East Asia and the Philippines economy has been industrialized in the recent times. In terms of the purchasing power parity it ranked 24th according to the World Bank. The sectors that are of key importance in the Philippines Economy are agriculture, industry and mining each of which can be detailed under the following heads; Agricultural sector contributes about 17.1% of the GDP, Industrial Sector contributes 18.1% in the GDP. “The Gross Domestic product (GDP) for 2004 was $84.2 billion. The per capita gross domestic product was $976. At constant 1985 prices and current prices in million PHP (Pesos).” (http://www.economywatch.com/world_economy/philippines/) The Philippines is a newly

Tacloban City Economy

It is the regional center of commerce, tourism, education, culture, and government in the region. It is one of the few first class cities in the Philippines (cities with an annual income of more than PhP300 million) and is slated to be declared as a highly urbanized city in 2008 (having exceeded the minimum qualfying standards in terms of income and population). [2]

http://www.worldlingo.com/ma/enwiki/en/Tacloban_City#Official_Seal_of_The_City_of_Tacloban

Philippine Agribusiness Report Q4 2010

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Coffee Production Growth to 2013/14: 13% to 7.8mn bags. Government and private investment will help increase yields as new trees mature over the forecast period. Despite the growth, the country will not reach the government's planed self-sufficiency in the next few years. http://www.pr-inside.com/philippines-agribusiness-report-q-r2111912.htm

2. Soocio-cultural Condition

The socio-cultural condition and urbanization affects the food and recreation preference of individual as more people become preoccupied with their job that also leads to a changing lifestyle. People nowadays are leading a fast paced life so they have lesser time devoted to eating, food preparation and long out-of-town vacation so they tend to find within the downtown establishments that offers recreation, relaxation and food and beverage.

3. Demographic ProfileDuring the 2007 population census, Tacloban City has an actual total

populationcount of 217,199.  With an average annual population growth rate of 2.73  percent, it is projected that  for the year 2008, Tacloban’ City’s population would be 223,130 and based on this projected population, Tacloban City has a population density of  1,106 persons per square kilometer or 11 persons per hectare.  The disaggregated population results of the 2007 census is yet to be released as of this documentation but using ratio and proportion using the 2000 census as baseline data.  Tacloban City has a proportionate total household of 43,415 for 2008. Using the same method, Total Number of Families counts at 47,014 with an Average Household Size of 5.1.

http://www.tacloban.gov.ph/

C. Analysis of CompetitorsThe current competitors of business venture in Tacloban City are classified into two: The direct competitors which includes all coffee shop within the tacloban area that offers unique concept and service. This includes, Jose Karlos, Libro: Books and coffee, Bo’s Coffee, Starzrocks, and the LIKE. Indirect competitors includes food establishments that offers coffee, Dunken Donuts and Mister Donuts.

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IV. Description of Venture

A. Products

R8 Express: Coffee and T. will be offering high quality coffee, hot and cold beverages, teas and

other custom drinks at a very reasonable price. We will also sell fresh-baked pastries and other

confections like cookies, brownies, and cakes. In addition, the business venture will also offer same of

Region’s delicacies like “moron” and “binagol” just to add twist to the venture. Seasonally, the business

will add specialty and customized product during peal seasons. We will also market premium items and

souvenirs such as mugs and T-shirts with imprinted tourist attractions of Eastern Visayas and other

premium items like key chains, coin purse, etc.

B. Services

We will be having the following service:

Opens 7 days a week (from 7:00am-9:00 pm)

Casual dining atmosphere

Internet connection/ WIFI

Dine in and take out

Free seating

Guests or customers will feels at home

C. Size of Business

R8 Express: Coffee and T. will be renting a space within the downtown area feasible to our target

market. The desired size is 80 square meter, with a seating capacity of 30 pax.

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D. Office Equipment and Personnel

OFFICE EQUIPMENT

Items Quantity Unit Cost Total

Computer 1 set 40000 40000

Fax/Printer 1 2500 2500

Telephone 1 3500 3500

File Cabinet 2 3000 6000

Tables 1 500 500

Chairs 3 100 300

Ceiling Fan 1 3000 3000

Office supplies 2000

P57,800

PERSONNEL

General Manager –Owner

Financial Manager – Owner

Marketing Manager – Owner

Store Attendant – Employee

Barista – Employee

Cashier – Employee

Service Crew – Employee

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V. Production Plan

A. Production Process

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Budgeting – is a list of all planned expenses and revenue. It is plan from saving and spending to

what is going to be purchased in working our product.

Purchasing – getting the desired product of the right quality, at the right quantity, right price and

time from the right and reliable sources or suppliers.

Receiving- is a print at which the purchaser inspects products and tasks legal possession of the

product ordered. A well designed receiving process is important to cost and quality control and

therefore warrants careful planning and implementation.

Storing- proper storing of the purchased item maintains the quality of the product. In storing f &

b items required a certain degree of temperature and should be well ventilated.

Production/Preparation- this should be done properly and accordingly to produce the desired

product that is high quality and satisfying to customers.

Portioning- dividing the product into how many serving ensuring that each portion are consistent

and in quality.

Serving- serving the finish product to our customers based on their orders.

Controlling- concerned with the management measure with current performance.

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C. Machinery and Equipment

Items Quantity Unit Cost TOTAL

Espresso Machine 1 65000 65000

Coffee Maker 1 25000 25000

Coffee Grinder 1 10000 8000

Coffee/Tea Pots 3 2000 6000

Blender 2 2500 5000

Refrigerator 1 21000 21000

Oven with Burner 1 30000 30000

Air conditioner 2 8000 16000

Cash Register 1 6000 6000

Microwave 2 5500 11000

Toaster 1 1000 1000

Mixer 1 2500 2500

P195,500.00

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VI. Marketing Plan

A. Pricing

Pricing strategy is based on the quality and how much ingredients is being used per

product. The product will consistently be priced lower than the competitors so as to

improve its market share. Specialty products that are only unique in our venture will be

priced higher. Product price range from P20-P100 for coffee and other beverage. For

pastries and cakes the price range is P20-P50. Souvenirs and other items will depend

upon purchase from suppliers. Pricing will depend on the variable cost of each product,

and a 20% mark-up is utilized

B. Distribution

The customers can dine at the coffee shop or have a take out. Product will be displayed at

the counter section with their specific price (for pastries and souvenir items). For coffee and other

beverage product will be made upon order. The price , size and the picture of the product are on

the menu.

C. Promotion

We will develop an intensive marketing effort through promotions and advertising

strategies to attract attention and to create awareness. Among the strategies are signage,

tarpaulins, radio advertisement, online/internet advertisement, flyers and stickers.

Discount coupons and promos like offering a “Frequent drinkers club” discount to our

best customers.

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D. Target Market Forecast

Potential

Custome

rs

Growth 2013 2014 2015 2016 2017

Students

(35%)

10% 35 39 43 47 51

Young

Professio

nals

(35%)

10% 35 39 43 47 51

Travellers

(10%)

10% 10 11 12 13 14

First

timers

(20%)

10% 20 21 22 23 24

Total/year 10% 100*360

=36,000

110*360

=39,600

120*360

=43,200

130*360

=46,800

140*360

=50,400

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E. Controls

a) Product Control – The making of the product will be monitored and the avoidance of use

of substitute ingredient will be implemented to assure that the product will maintain its

standard tasks, nutritional value and quality.

b) Price Control- The pricing of the product will be followed by the business aggressively.

Product’s price will not go lower than the average cost to ensure profitability.

c) Promotional Control- Once the product would be able to gain a market share,

advertisements would be lessened. Tarpaulins, flyers and discount coupon will be the

usual promotional activities for those plays major role in promotions.

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VII. Organizational Plan

A. Form of Ownership

A type of business entity in which partners (owners) share with each other the profit or losses of

the business undertaking in which all have invested. Partnership’s are often favoured over corporations

for taxation purposes, as the partnership structured does not generally incur a tax on profit before it is

distributed to the partners.

B. Organizational Structure

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Manager

Finance Manager Store Supervisor Marketing Manager

Cashier

Barista Service Crew Baker

C. Roles & Responsibilities of Members of Organization

a) Manager Manage the facilities, equipment, inventory, payroll and other basic operational

processes. Ensure that the coffee shop operate efficiently and profitably while maintaining their

reputation Responsible of maintain of high standards of food, beverage services and health safety Prepares the working schedule of all personnel including their shift and day off.

b) Marketing Manager Responsible in the research, planning/creating and execution of marketing and

promotional activities, monitoring sales and establish strategies for creating awareness of the business.

Responsible for the design and distribution of all direct marketing materials.c) Financial Manager

Responsible for finance, accountings, payroll, billing, taxes and any other matter related to sales and revenue budgets.

d) Store Supervisor Makes decision regarding hiring, evaluation and termination of employees or makes

related recommendations. Monitors work methods, standards of performance, sanitation and safety standards Maintains proper security of units Ensure quality food preparation, presentation and service to the customers

e) Cashier Responsible on the billing of customers Coordinates activities of employees engaged in receiving money and keeping records of

transactions Works with financial manager to handle records and cash correctly

f) Barista Ensure the quality of the coffee and other complimentary and supplementary ingredients Prepares coffee orders from the customers –coordinates with the store supervisor

g) Baker Ensure the quality of pastries Maintains proper sanitation of the kitchen

h) Service Crew Attends/Welcome/Entertain customers and responsible in taking their orders Clears table and do dish washing ALSO.

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Compensation:

Employees No. of Employees Salar/month Total

Store attendant 1 15,000 15,000

Barista 2 9,500 19,000

Baker 1 9,000 9,000

Service Crew 2 7,500 14,000

Cashier 1 9,000 9,000

VIII. Assessment of Risk

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MONTHLY: P66,000

Annual Salaries Expense

P798,000.00

A. Evaluate the Weakness of Business

Although th business venture has a different concept among other coffee shop, stiff competition still high. With the growing number of food and beverage establishments, the emergence of more competitive brand may cause the decline of R8 Express: Coffee & T.

B. New Technologies

New Technology can improve the business operations for most of the people are techno savvy. It will add awareness to our business as well as help in our operation for this we can be used for production and promotion.

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IX. Financial Plan

A. Financial Objectives

Increase earnings by 15% annually

Stable earnings during recessionary periods

B. Start-up Expense/Pre-operating Expense

Start-up Expense/ Pre-operating Expense

Legal Expense

Business Registration 5,000

Marketing Expenses

Signage 3,000

Tarpaulins 10,000

Stickers/Flyers 5,000

Radio Advertisements 15,000

OTHER 10,000

TOTAL 43,000

Prepaid Rent Expense

One month advance, one month deposit(35,000/mos)

105,000

Premises Remodelling 150,000

Workers Compensation 19,000

Other Startup Expense 30,000

TOTAL P352,000

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Required Start-up asset

Operating Capital

-Payroll 66,500/month P133,000

(GOOD for 2 months)

-Cash Reserves 100,000/month P300,000

(Good for 3 months) P5,000

TOTAL P438,000

Start-up Inventory

-Coffee Beans P160,000

-Pastries and Confectionaries P150,000

-Beverages P150,000

--Souvenirs P50,000

-Office Supplies P3,000

TOTAL P453,000

Machinery and Equipment P195,500

Office Equipment P57,800

China, Glass & Silverwares P50,000

Furniture’s and Fixtures P130,000

Employees Uniform & Linens P30,000

Other Miscellaneous Expense P20,000

TOTAL P1,374,300

PROJECTED INCOME STATEMENT

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R8 EXPRESS: COFFEE AND T.

Projected Income Statement

2013 2014 2015 2016 2017

Sales 3,600,000 3,960,000 4,356,000 4,878,720 5,464,166.4

Less: Cost of Sales

(1,980,000) (2,178,000) (2,395,800) (2,683,296) 3,905,291.5)

Gross: Profit 1,620,000 1,782,000 1,960,200 2,195,476 2,458,874.9

Less: Operating Expenses

Permit & Licenses

(5,000) (3,000) (3,000) (5,000) (3,000)

Salaries & Wages

(798,000) (798,000) (798,000) (821,940) (821,940)

Rent Expense (420,000) (420,000) (441,000) (463,050) (463,050)

Marketing Expense

(43,000) (50,000) (45,000) (30,000) (25,000)

Maintenance (12,000) (12,000) (15,000) (15,000) (15,000)

Depreciation Expense

(54,162.5) (47,392.2) (41,468.2) (36,284.64) (31,749.06)

Miscellaneous Expense

(30,000) (30,000) (35,000) (35,000) (20,000)

Remodelling (150,000)

Other Expense 30,000 10,000 (20,000) (25,000) (15,000)

P1,542,162.5 P1,370,392.2 P1,398,468.2 P1,431,274.6 P1,394,739

Operating Profit/loss

77,837.5 411,607.8 561,731.8 764,201.4 1,064,135.9

Less: Interest Expense

(100,000) (90,000) (90,000) (90,000) (90,000)

Net 22,162.5 321,607.8 471,731.8 674,201.4 974,135.9

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income/loss before taxes

Less: Taxes (30%)

(96,482.34) (141,519.54) (202,260.42) (292,240.77)

Net Income(loss) after tax

P22,162.5 P225,125.46 P330,212.26 P471,940.98 P681,895.13

R8 Express: Coffee and T.

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Projected Cash Flow

Pre-operating

2013 2014 2015 2016 2017

Sales 3,600,000 3,960,000 4,356,000 4,878,720 5,464,166.4

Bank Loan 930,000

Partner’s Equity

1,500,000

Total Inflow 2,430,000 3,600,000 3,960,000 4,356,000 4,878,720 5,464,166.4

Supplies 83,000 30,000 50,000 40,000 45,000

Merchandise Inventory

450,000 1,980,000 2,178,000 2,395,800 2,683,296 3,005,291.5

Furniture & Fixtures

130,000

Machinery & equipment

253,300

License and permit

5,000 3,000 3,000 5,000 3,000

Salaries and expense

798,000 798,000 798,000 821,940 82,940

Rent Expense 420,000 420,000 441,000 463,050 463,050

Mktg. Expense 43,000 50,000 45,000 30,000 25,000

Maintenance Expense

12,000 12,000 15,000 15,000 15,000

Miscellaneous expense

30,000 30,000 35,000 35,000 20,000

Interest expense

100,000 90,000 90,000 90,000 90,000

Tax expense 96,482.34 141,519.54 202,260.42 292,240,77

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Total Cash out flow

786,300 3,388,000 3,617,482.34 4,014,319.54 4,385,546.42 4,780,522.27

Net In flow 1,643,700 212,000 342,517.66 341,680.46 493,173.58 683,644.13

Cash Beg. 1,643,70-0 1,431,700 1,774,217.66 2,088,898.12 2,582,071.7

Cash end 1,643,700s 1,431,700 1,774,217.66 2,088,898.12 2,582,071.7 3,265,715.83

R8 Express: Coffee and T.

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Projected Balance Sheet

2013

Assets

Current Assets

Cash 1,643,700

Inventories 355,297

Total 1,998,997

Non-current assets

Furniture and Fixtures 130,000

Machinery and Equipment 253,000 383,000

Less: Accumulated Depreciation (54,162.5) 328,837.5

China, Glass and Silverware 50,000

Uniforms and Licenses 30,000

Total 408,837.5

Total Assets P2, 407,834.5

Liabilities

Long Term Debt, Net 930,000

Capital

Owner’s Equity P1, 477,834.5

Total Liability and Capital P2, 407,834.5

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X. Appendix

A. Letters

March 7,2011

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