Fillable Confidentiality Agreement (Page 10 of 20) in pdf

Confidentiality Agreement Page 10

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Trend Setters Hair Studio — Sample Plan

6.2 Projected Profit and Loss

We expect income to hit $172,800 at the end of the first year of business. It should increase

to more than $262,340 by the third year, as the reputation of the salon, its stylists and

services become apparent to the general public. Second year revenues also anticipate the

addition of one new stylist.

Table: Profit and Loss

Pro Forma Profit and Loss

1997

1998

1999

Sales

$172,800

$228,122

$262,340

Direct Cost of Sales

Production Payroll

Other

------------

Total Cost of Sales

Gross Margin

$172,800

$228,122

$262,340

Gross Margin %

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

Leased Equipment

Utilities

$4,200

Insurance

$1,200

Rent

$22,740

Other

Payroll Taxes

$8,680

$10,752

$12,388

Other

------------

Total Operating Expenses

$168,206

$204,398

$227,790

Profit Before Interest and Taxes

$4,594

$23,724

$34,550

Interest Expense

Taxes Incurred

$1,286

$6,643

$9,674

Net Profit

$3,308

$17,081

$24,876

Net Profit/Sales

1.91%

7.49%

9.48%

Include Negative Taxes

TRUE

Pg 8

Confidentiality Agreement Page 10

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