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Debt service for the project is outlined as follows:
<br /> Source Annual Debt Service
<br /> Primary Lender $13,050.00
<br /> EDA Micro Loan $ 9,289.00
<br /> Central Minnesota Initiative Fund $ 9.289 00 (assumed)
<br /> $31,628.00
<br /> Three-Year Projections:Balance Sheet, Cash Flows, P&L
<br /> For the first twelve months of operations, revenues from WWW services and
<br /> Web-Site software are projected at $453,500; gross margins are projected at
<br /> $281,595; and total expenses are projected at $182,500 for a net operating
<br /> profit before taxes of$98,790. A net profit of$63,868 is projected for the first
<br /> twelve months of operation.
<br /> For the second twelve months of operations, revenues from services and
<br /> software are projected at $1,632,600; gross margins are projected at
<br /> $1,067,000; total expenses are projected at $777,960; net operating profit
<br /> before taxes is projected at $289,040; and the net profit after taxes is
<br /> projected at $174,291.
<br /> • For the third twelve months of operations, revenues from services and
<br /> software are projected at $2,892,900; gross margins .are projected at
<br /> $1,971,300; total expenses are projected at $1,220,688; net operating profit
<br /> before taxes is projected at $750,612; and a net profit of $445,864 is
<br /> projected.
<br /> Total assets for the three years are projected at $291,430, $534,428, and
<br /> $1,225,034 respectively. For the same time period, total liabilities are
<br /> projected at $225,744, $294;451, and $539,194 respectively.
<br /> For the three year period, total equity is projected at $65,686, $239,977, and
<br /> $685,840 respectively.
<br /> Three year projected cash balances are $212,630, $278,628, and $764,234
<br /> respectively.
<br /> Employment
<br /> According to the Micro Loan application, Internet Five would create eight (8)
<br /> jobs with a total payroll of $204,000. These jobs are generally considered
<br /> computer programming-type positions and technical, etc.
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