... and services become apparent to the general public. Second year revenues also anticipate the addition of one new stylist. Pro Forma Profit and Loss FY 1997 FY 1998 FY 1999 Sales 3172,800 £228,122 £262,340 Direct Cost of Sales £0 £0 £0 Other £0 £0 £0 ------------ ------------ ------------ Total Cost of Sales 30 $0 $0 Gross Margin £172,800 £228,122 £262,340 Gross Margin % 100.00% 100.00% 100.00% Expenses: Payroll £86,800 £107,520 £123,876 Sales and Marketing and Other Expenses £36,440 £49,840 £55,240 Depreciation £8,146 £8,146 £8,146 Leased Equipment £0 £0 £0 Utilities £4,200 £4,200 £4,200 Insurance £1,200 £1,200 £1,200 Rent £22,740 £22,740 £22,740 Other £0 £0 £0 Payroll Taxes £8,680 £10,752 £12,388 Other £0 £0 £0 ------------ ------------ ------------ Total Operating Expenses £168,206 £204,398 £227,790 Profit Before Interest and Taxes £4,594 £23,724 £34,550 Interest Expense £0 £0 £0 Taxes Incurred £1,300 £6,643 £9,732 Net Profit £3,294 £17,081 £24,819 Net Profit/Sales 1.91% 7.49% 9.46% I expect to manage cash flow over the next three years simply by the growth of the cash flow of the business. The business will generate more than enough cash flow to cover all of its expenses. Cash Cash Flow FY 1997 FY 1998 FY 1999 Cash Received Cash from Operations: Cash Sales £172,800 £228,122 £262,340 Cash from Receivables $0 $0 $0 Subtotal Cash from Operations £172,800 £228,122 £262,340 Additional Cash Received Sales Tax, VAT, HST/GST Received £0 £0 £0 New Current Borrowing £0 £0 £0 New Other Liabilities (interest-free) £0 £0 £0 New Long-term Liabilities £0 £0 £0 Sales of Other Current Assets £0 £0 £0 Sales of Long-term Assets £0 £0 £0 New Investment Received £0 £0 £0 Subtotal Cash ...

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