FINANCIAL PROJECTIONS

PROJECTED INCOME STATEMENT

	Year 1 Projection	Year 2 Projection	Year 3 Projection
Revenues
Billable Hours	$82,000	$92,250	$102,500
Payment for Subcontractors	$41,000	$69,188	$102,500
Payment for Travel	$12,300	$16,144	$20,500
Administrative Fees	$6,150	$8,072	$10,250
Total Revenues	$141,450	$186,654	$235,750
Cost of Goods Sold
Sub Contractor Fees	$41,000	$69,188	$102,500
Direct Travel	$12,300	$16,144	$20,500
Total Cost of Goods Sols	$53,300	$85,332	$123,000
Gross Margin	$88,150	$100,322	$112,750
Selling & Admin. Expenses
Marketing Activities	$10,000	$5,000	$5,000
Trade Show Participation	$10,000	$10,000	$10,000
Salary	$50,000	$55,000	$60,000
Utilities	$1,440	$1,512	$1,588
Communications	$2,400	$2,520	$2,646
Repairs and Maintenance	$500	$525	$551
Insurance	$4,000	$4,250	$4,500
Provincial Incorporation Expense	$360	$0	$0
Travel Expense	$1,800	$1,980	$2,178
Leasing Expense	$6,000	$6,000	$6,000
Office Supplies	$1,200	$1,320	$1,452
Bank Charges and Interest	$360	$360	$360
Loan Interest	$1,536	$1,155	$735
Professional Fees	$4,000	$2,000	$2,000
Depreciation	$3,600	$3,600	$3,600
Net Profit (Loss) from Operations	($9,046)	$5,100	$12,140
Add: Contributions for Operations	$13,500	$0	$0
Net Profit (Loss) from Operations	$4,454	$5,100	$12,140

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PROJECTED SOURCES AND USES OF FUNDS

	Year 1 Ending	Year 2 Ending	Year 3 Ending
Net Profit	$4,454	$5,100	$12,141
Add: Depreciation	$3,600	$3,600	$3,600
Less: Dividends Paid	$0	$0	$0
Cash From Operations	$8,054	$8,700	$15,741
Financing Activities
Government Sources	$40,800
Shareholder Equity Injection	$10,200
Share Purchase	$100
Term Debt	$17,000
Less: Repayment of Debt	$3,638	$4,019	$4,439
Total Financing	$64,462	($4,019)	($4,439)
Capitilization Activities
Capitilization Activities	$48,000	$0	$0
Total Capitilization Activities	$48,000	$0	$0
Net Cash From Operations	$24,516	$4,681	$11,301
Beginning Cash	$0	$24,516	$29,197
Ending Cash	$24,516	$29,197	$40,498

Click here to view Terra Engineering's 12 month projected cash flow statement.

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PROJECTED BALANCE SHEET

	OPENING	Year 1 Ending	Year 2 Ending	Year 3 Ending
ASSETS
Current Assets
Cash	$20,100	$24,516	$29,197	$40,498
Accounts Receivable	$0	$0	$0	$0
Total Current Assets	$20,100	$24,516	$29,197	$40,498
Fixed Assets
Leasehold Improvements	$5,000	$5,000	$5,000	$5,000
Office Equipment and Furniture	$6,000	$6,000	$6,000	$6,000
Specialized Field Equipment	$27,000	$27,000	$27,000	$27,000
Specialized Software	$10,000	$10,000	$10,000	$10,000
Less: Accumulated Depreciation	$0	$3,600	$7,200	$10,800
Total Fixed Assets	$48,000	$44,400	$40,800	$37,200
TOTAL ASSETS	$68,100	$68,916	$69,997	$77,698
LIABILITIES
Current Liabilities
Accounts Payable	$0	$0	$0	$0
Current Portion of Loan	$3,638	$4,019	$4,439	$4,904
Long Term Liabilities
Long Term Portion of Debt	$13,362	$9,344	$4,904	$0
TOTAL LIABILITIES	$17,000	$13,362	$9,344	$4,904
SHAREHOLDER'S EQUITY
ADCP Contribution	$40,800
Contributed Assets Equity	$0
Shareholders Equity	$10,200	$51,100	$55,554	$60,654
Common Shares ([email protected]$1)	$100	$100	$100	$100
Net Income	$0	$4,454	$5,100	$12,141
Less: Dividends	$0	$0	$0	$0
SHAREHOLDER'S EQUITY	$51,000	$55,554	$60,654	$72,794
TOTAL EQUITY AND LIABILITIES	$68,100	$68,916	$69,997	$77,698

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