ESTIMATED PROJECTION FOR THREE YEAR'S EARNINGS

FIRST YEAR

SECOND YEAR

THIRD YEAR

Estimates

% of Gross

Estimates

% of Gross

Estimates

% of Gross

INCOME

Receipts

Receipts

Receipts

Total Sales

$2,779,500

100.00%

$3,029,655

100.00%

$3,302,324

100.00%

Net Sales

$2,779,500

100.00%

$3,029,655

100.00%

$3,302,324

100.00%

Cost of Goods Sold

$1,249,067

44.94%

$1,331,230

43.94%

$1,419,999

43.00%

Gross Profit

$1,530,433

55.06%

$1,698,425

56.06%

$1,882,325

57.00%

EXPENSES

Owner's Salaries

$120,000

4.32%

$130,800

4.32%

$142,572

4.32%

Salaries & Compensation - Contract 1099

$240,000

8.63%

$261,600

8.63%

$285,144

8.63%

Sales Commissions

$124,100

4.46%

$135,269

4.46%

$147,443

4.46%

Health Insurance

$42,000

1.51%

$45,780

1.51%

$49,900

1.51%

Repairs & Maintenance

$15,600

0.56%

$17,004

0.56%

$18,534

0.56%

Bad Debt Expense

$3,600

0.13%

$3,924

0.13%

$4,277

0.13%

Rent

$49,200

2.50%

$75,741

2.50%

$82,558

2.50%

Taxes & Licenses

$2,400

0.09%

$2,616

0.09%

$2,851

0.09%

Depreciation

$2,400

0.09%

$2,400

0.08%

$2,400

0.07%

Advertising

$12,000

0.43%

$13,080

0.43%

$14,257

0.43%

Computers & Internet

$14,400

0.52%

$15,696

0.52%

$17,109

0.52%

Postage & Shipping Outbound

$47,688

1.72%

$51,979

1.72%

$56,658

1.72%

Insurance

$8,400

0.30%

$9,156

0.30%

$9,980

0.30%

Supplies

$19,200

0.69%

$20,928

0.69%

$22,812

0.69%

Telephone

$6,000

0.22%

$6,540

0.22%

$7,129

0.22%

Utilities

$8,400

0.30%

$9,156

0.30%

$9,980

0.30%

Accounting & Legal

$30,000

1.08%

$32,700

1.08%

$35,643

1.08%

Travel & Entertainment

$30,000

1.08%

$32,700

1.08%

$35,643

1.08%

Dues and Subscriptions

$3,000

0.11%

$3,270

0.11%

$3,564

0.11%

Miscellaneous

$14,400

0.52%

$15,696

0.52%

$17,109

0.52%

Bank Fees

$6,000

0.22%

$6,540

0.22%

$7,129

0.22%

Debt Service - SBA/Wells

$98,400

3.54%

$107,256

3.54%

$116,909

3.54%

Debt Service- LOC

$3,600

0.13%

$3,924

0.13%

$4,277

0.13%

Merchant Fees

$45,150

1.62%

$49,214

1.62%

$53,643

1.62%

Trade Shows

$36,000

1.30%

$39,240

1.30%

$42,772

1.30%

Auto Expense

$24,000

0.86%

$26,160

0.86%

$28,514

0.86%

Gas

$6,000

0.22%

$6,540

0.22%

$7,129

0.22%

Other:

$0

0.00%

$0

0.00%

$0

0.00%

$0

0.00%

$0

0.00%

$0

0.00%

Total Operating Expense

$1,215,938

43.75%

$1,124,909

37.13%

$1,225,935

37.12%

Profit Before Taxes

$314,496

11.31%

$573,515

18.93%

$656,390

19.88%

Income Taxes

$0

0.00%

$0

0.00%

$0

0.00%

Net Profit After Taxes

$314,496

11.31%

$573,515

18.93%

$656,390

19.88%

ASSUMPTIONS:

Growth is projected annually at

9%

Taxes are calculated at the rate of

0%

Ending cash balance is reinvested into firm.