Green Earth Vision - Creating a Global Community of Visionaries

Green Earth AAC, Inc. - Start-up

Initial Start-up

Cash:
Owners Capital	10,000
Preferred Stock Equity	24,000,000
Start-up Cash:	$24,010,000

Purchases:
Land Acquistion	2,000,000
Plant Construction & Equipment	18,000,000
Start-up Marketing and Education	500,000
Organizational Costs	300,000
Working Capital	3,200,000
Start-Up Purchases:	$24,000,000



Green Earth AAC, Inc. - Year 1 Monthly Breakdown
MONTH	1	2	3	4	5	6	7	8	9	10	11	12	TOTAL
Revenue
AAC Finished Product Sales	0	0	0	0	0						121,500	911,250	1,032,750
Total Revenue:	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$121,500	$911,250	$1,032,750

Cost of Goods Sold
Cost of Goods Sold	0	0	0	0	0	0	0	0	0	0	51,030	382,725	433,755
Subtotal:	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$51,030	$382,725	$433,755

Net Sales	0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$70,470	$528,525	$598,995


Expenses
Salaries & Wages	20,000	20,000	20,000	20,000	20,000	20,000	20,000	20,000	20,000	20,000	26,666	76,661	303,327
Payroll Taxes and Benefits	2,480	2,480	2,480	2,480	2,480	2,480	2,480	2,480	2,480	2,480	3,307	9,506	37,613
Utilities	0	0	0	0	0	0	0	0	0	0	240	1,033	1,273
Communications	0	0	0	0	0	0	0	0	0	0	45	45	90
Insurance	0	0	0	0	0	0	0	0	0	0	2,177	2,177	4,354
Travel	0	0	0	0	0	0	0	0	0	0	200	500	700
Office Supplies	0	0	0	0	0	0	0	0	0	0	50	50	100
Accounting & Legal	0	0	0	0	0	0	0	0	0	0	300	750	1,050
Misc. Expenses	0	0	0	0	0	0	0	0	0	0	100	250	350
Marketing	500	500	500	500	500	500	1,000	1,000	1,000	1,000	1,000	1,000	9,000
Depreciation	1,667	1,667	1,667	11,042	11,042	11,042	20,417	20,417	20,417	29,792	29,792	29,792	188,754
Total:	$24,647	$24,647	$24,647	$34,022	$34,022	$34,022	$43,897	$43,897	$43,897	$53,272	$63,877	$121,764	$546,611


Net Profit	($24,647)	($24,647)	($24,647)	($34,022)	($34,022)	($34,022)	($43,897)	($43,897)	($43,897)	($53,272)	$6,593	$406,761	$52,384



Green Earth AAC, Inc. - Year 2 Monthly Breakdown
MONTH	1	2	3	4	5	6	7	8	9	10	11	12	TOTAL
Revenue
AAC Finished Product Sales	911,250	911,250	1,822,500	1,822,500	1,822,500	1,822,500	2,733,750	2,733,750	2,733,750	3,645,000	3,645,000	3,645,000	28,248,750
Total Revenue:	$911,250	$911,250	$1,822,500	$1,822,500	$1,822,500	$1,822,500	$2,733,750	$2,733,750	$2,733,750	$3,645,000	$3,645,000	$3,645,000	$28,248,750

Cost of Goods Sold
Cost of Goods Sold	382,725	382,725	765,450	765,450	765,450	765,450	1,148,175	1,148,175	1,148,175	1,530,900	1,530,900	1,530,900	11,864,475
Subtotal:	$382,725	$382,725	$765,450	$765,450	$765,450	$765,450	$1,148,175	$1,148,175	$1,148,175	$1,530,900	$1,530,900	$1,530,900	$11,864,475

Net Sales	$528,525	$528,525	$1,057,050	$1,057,050	$1,057,050	$1,057,050	$1,585,575	$1,585,575	$1,585,575	$2,114,100	$2,114,100	$2,114,100	$16,384,275


Expenses
Salaries & Wages	76,661	76,661	133,322	133,322	133,322	133,322	189,983	189,983	189,983	249,977	249,977	249,977	2,006,490
Payroll Taxes and Benefits	9,506	9,506	16,532	16,532	16,532	16,532	23,558	23,558	23,558	30,997	30,997	30,997	248,805
Utilities	1,033	1,033	2,066	2,066	2,066	2,066	3,099	3,099	3,099	4,132	4,132	4,132	32,023
Communications	45	45	90	90	90	90	135	135	135	175	175	175	1,380
Insurance	2,177	2,177	2,177	2,177	2,177	2,177	2,177	2,177	2,177	2,177	2,177	2,177	26,124
Travel	500	500	500	500	500	500	500	500	500	500	500	500	6,000
Office Supplies	100	100	100	100	100	100	100	100	100	100	100	100	1,200
Accounting & Legal	750	750	750	750	750	750	750	750	750	750	750	750	9,000
Misc. Expenses	350	350	350	350	350	350	350	350	350	350	350	350	4,200
Marketing	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	24,000
Depreciation	39,167	39,167	39,167	39,167	39,167	39,167	39,167	39,167	39,167	39,167	39,167	39,167	470,004
Total:	$132,289	$132,289	$197,054	$197,054	$197,054	$197,054	$261,819	$261,819	$261,819	$330,325	$330,325	$330,325	$2,829,226


Net Profit	$396,236	$396,236	$859,996	$859,996	$859,996	$859,996	$1,323,756	$1,323,756	$1,323,756	$1,783,775	$1,783,775	$1,783,775	$13,555,049



Green Earth AAC, Inc. - Year 3 Monthly Breakdown
MONTH	1	2	3	4	5	6	7	8	9	10	11	12	TOTAL
Revenue
AAC Finished Product Sales	3,900,150	3,900,150	3,900,150	3,900,150	3,900,150	3,900,150	3,900,150	3,900,150	3,900,150	3,900,150	3,900,150	3,900,150	46,801,800
Total Revenue:	$3,900,150	$3,900,150	$3,900,150	$3,900,150	$3,900,150	$3,900,150	$3,900,150	$3,900,150	$3,900,150	$3,900,150	$3,900,150	$3,900,150	$46,801,800

Cost of Goods Sold
Cost of Goods Sold	1,638,063	1,638,063	1,638,063	1,638,063	1,638,063	1,638,063	1,638,063	1,638,063	1,638,063	1,638,063	1,638,063	1,638,063	19,656,756
Subtotal:	$1,638,063	$1,638,063	$1,638,063	$1,638,063	$1,638,063	$1,638,063	$1,638,063	$1,638,063	$1,638,063	$1,638,063	$1,638,063	$1,638,063	$19,656,756

Net Sales	2,262,087	2,262,087	2,262,087	2,262,087	2,262,087	2,262,087	2,262,087	2,262,087	2,262,087	2,262,087	2,262,087	2,262,087	27,145,044


Expenses
Salaries & Wages	254,977	254,977	254,977	254,977	254,977	254,977	254,977	254,977	254,977	254,977	254,977	254,977	3,059,724
Payroll Taxes and Benefits	31,617	31,617	31,617	31,617	31,617	31,617	31,617	31,617	31,617	31,617	31,617	31,617	379,406
Utilities	4,256	4,256	4,256	4,256	4,256	4,256	4,256	4,256	4,256	4,256	4,256	4,256	51,072
Communications	180	180	180	180	180	180	180	180	180	180	180	180	2,160
Insurance	2,177	2,177	2,177	2,177	2,177	2,177	2,177	2,177	2,177	2,177	2,177	2,177	26,124
Travel	500	500	500	500	500	500	500	500	500	500	500	500	6,000
Office Supplies	105	105	105	105	105	105	105	105	105	105	105	105	1,260
Accounting & Legal	788	788	788	788	788	788	788	788	788	788	788	788	9,450
Misc. Expenses	368	368	368	368	368	368	368	368	368	368	368	368	4,410
Marketing	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	24,000
Depreciation	39,167	39,167	39,167	39,167	39,167	39,167	39,167	39,167	39,167	39,167	39,167	39,167	470,004
Total:	$336,134	$336,134	$336,134	$336,134	$336,134	$336,134	$336,134	$336,134	$336,134	$336,134	$336,134	$336,134	$4,033,609


Net Profit	$1,925,953	$1,925,953	$1,925,953	$1,925,953	$1,925,953	$1,925,953	$1,925,953	$1,925,953	$1,925,953	$1,925,953	$1,925,953	$1,925,953	$23,111,435



Green Earth AAC, Inc. - Year 4 Monthly Breakdown
MONTH	1	2	3	4	5	6	7	8	9	10	11	12	TOTAL
Revenue
AAC Finished Product Sales	4,173,161	4,173,161	4,173,161	4,173,161	4,173,161	4,173,161	4,173,161	4,173,161	4,173,161	4,173,161	4,173,161	4,173,161	50,077,926
Total Revenue:	$4,173,161	$4,173,161	$4,173,161	$4,173,161	$4,173,161	$4,173,161	$4,173,161	$4,173,161	$4,173,161	$4,173,161	$4,173,161	$4,173,161	$50,077,926

Cost of Goods Sold
Cost of Goods Sold	1,752,727	1,752,727	1,752,727	1,752,727	1,752,727	1,752,727	1,752,727	1,752,727	1,752,727	1,752,727	1,752,727	1,752,727	21,032,729
Subtotal:	$1,752,727	$1,752,727	$1,752,727	$1,752,727	$1,752,727	$1,752,727	$1,752,727	$1,752,727	$1,752,727	$1,752,727	$1,752,727	$1,752,727	$21,032,729

Net Sales	$2,420,433	$2,420,433	$2,420,433	$2,420,433	$2,420,433	$2,420,433	$2,420,433	$2,420,433	$2,420,433	$2,420,433	$2,420,433	$2,420,433	$29,045,197


Expenses
Salaries & Wages	260,076	260,077	260,077	260,077	260,077	260,077	260,077	260,077	260,077	260,077	260,077	260,077	3,120,918
Payroll Taxes and Benefits	32,249	32,249	32,249	32,249	32,249	32,249	32,249	32,249	32,249	32,249	32,249	32,249	386,994
Utilities	4,384	4,384	4,384	4,384	4,384	4,384	4,384	4,384	4,384	4,384	4,384	4,384	52,604
Communications	186	185	185	185	185	185	185	185	185	185	185	185	2,225
Insurance	2,177	2,177	2,177	2,177	2,177	2,177	2,177	2,177	2,177	2,177	2,177	2,177	26,124
Travel	500	500	500	500	500	500	500	500	500	500	500	500	6,000
Office Supplies	110	110	110	110	110	110	110	110	110	110	110	110	1,323
Accounting & Legal	827	827	827	827	827	827	827	827	827	827	827	827	9,923
Misc. Expenses	386	386	386	386	386	386	386	386	386	386	386	386	4,631
Marketing	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	24,000
Depreciation	39,167	39,167	39,167	39,167	39,167	39,167	39,167	39,167	39,167	39,167	39,167	39,167	470,004
Total:	$342,062	$342,062	$342,062	$342,062	$342,062	$342,062	$342,062	$342,062	$342,062	$342,062	$342,062	$342,062	$4,104,745


Net Profit	$2,078,371	$2,078,371	$2,078,371	$2,078,371	$2,078,371	$2,078,371	$2,078,371	$2,078,371	$2,078,371	$2,078,371	$2,078,371	$2,078,371	$24,940,452



Green Earth AAC, Inc. - Year 5 Monthly Breakdown
MONTH	1	2	3	4	5	6	7	8	9	10	11	12	TOTAL
Revenue
AAC Finished Product Sales	4,465,282	4,465,282	4,465,282	4,465,282	4,465,282	4,465,282	4,465,282	4,465,282	4,465,282	4,465,282	4,465,282	4,465,282	53,583,381
Total Revenue:	$4,465,282	$4,465,282	$4,465,282	$4,465,282	$4,465,282	$4,465,282	$4,465,282	$4,465,282	$4,465,282	$4,465,282	$4,465,282	$4,465,282	$53,583,381

Cost of Goods Sold
Cost of Goods Sold	1,875,418	1,875,418	1,875,418	1,875,418	1,875,418	1,875,418	1,875,418	1,875,418	1,875,418	1,875,418	1,875,418	1,875,418	22,505,020
Subtotal:	$1,875,418	$1,875,418	$1,875,418	$1,875,418	$1,875,418	$1,875,418	$1,875,418	$1,875,418	$1,875,418	$1,875,418	$1,875,418	$1,875,418	$22,505,020

Net Sales	$2,589,863	$2,589,863	$2,589,863	$2,589,863	$2,589,863	$2,589,863	$2,589,863	$2,589,863	$2,589,863	$2,589,863	$2,589,863	$2,589,863	$31,078,361


Expenses
Salaries & Wages	265,278	265,278	265,278	265,278	265,278	265,278	265,278	265,278	265,278	265,278	265,278	265,278	3,183,336
Payroll Taxes and Benefits	32,894	32,894	32,894	32,894	32,894	32,894	32,894	32,894	32,894	32,894	32,894	32,894	394,734
Utilities	4,515	4,515	4,515	4,515	4,515	4,515	4,515	4,515	4,515	4,515	4,515	4,515	54,182
Communications	191	191	191	191	191	191	191	191	191	191	191	191	2,292
Insurance	2,177	2,177	2,177	2,177	2,177	2,177	2,177	2,177	2,177	2,177	2,177	2,177	26,124
Travel	500	500	500	500	500	500	500	500	500	500	500	500	6,000
Office Supplies	116	116	116	116	116	116	116	116	116	116	116	116	1,389
Accounting & Legal	868	868	868	868	868	868	868	868	868	868	868	868	10,419
Misc. Expenses	405	405	405	405	405	405	405	405	405	405	405	405	4,862
Marketing	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	24,000
Depreciation	39,167	39,167	39,167	39,167	39,167	39,167	39,167	39,167	39,167	39,167	39,167	39,167	470,004
Total:	$348,112	$348,112	$348,112	$348,112	$348,112	$348,112	$348,112	$348,112	$348,112	$348,112	$348,112	$348,112	$4,177,342


Net Profit	$2,241,752	$2,241,752	$2,241,752	$2,241,752	$2,241,752	$2,241,752	$2,241,752	$2,241,752	$2,241,752	$2,241,752	$2,241,752	$2,241,752	$26,901,019



Green Earth AAC, Inc. - Projected Profit and Loss Summary

Year	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue
AAC Finished Product Sales	1,032,750	28,248,750	46,801,800	50,077,926	53,583,381
Total Revenue:	$1,032,750	$28,248,750	$46,801,800	$50,077,926	$53,583,381

Cost of Goods Sold
Cost of Goods Sold	433,755	11,864,475	19,656,756	21,032,729	22,505,020
Subtotal:	$433,755	$11,864,475	$19,656,756	$21,032,729	$22,505,020

Net Sales	$598,995	$16,384,275	$27,145,044	$29,045,197	$31,078,361


Expenses
Salaries & Wages	303,327	2,006,490	3,059,724	3,120,918	3,183,336
Payroll Taxes and Benefits	37,613	248,805	379,406	386,994	394,734
Utilities	1,273	32,023	51,072	52,604	54,182
Communications	90	1,380	2,160	2,225	2,292
Insurance	4,354	26,124	26,124	26,124	26,124
Travel	700	6,000	6,000	6,000	6,000
Office Supplies	100	1,200	1,260	1,323	1,389
Accounting & Legal	1,050	9,000	9,450	9,923	10,419
Misc. Expenses	350	4,200	4,410	4,631	4,862
Marketing	9,000	24,000	24,000	24,000	24,000
Depreciation	188,754	470,004	470,004	470,004	470,004
Total:	$546,611	$2,829,226	$4,033,609	$4,104,745	$4,177,342


Net Profit	$52,384	$13,555,049	$23,111,435	$24,940,452	$26,901,019



Green Earth AAC, Inc. - Projected Cash Flow

Year	Start-up	Year 1	Year 2	Year 3	Year 4	Year 5

Beginning Balance	10,000	3,210,000	2,251,138	15,076,192	37,457,630	61,668,086

Cash from Operating Activities

Net Income:		52,384	13,555,049	23,111,435	24,940,452	26,901,019
Add: Depreciation		188,754	470,004	470,004	470,004	470,004
Net Cash from Operating Activities:	0	241,138	14,025,053	23,581,439	25,410,456	27,371,023

Cash from Investing Activities
Land	(2,000,000)
Plant Construction & Equipment	(18,000,000)
Organizational Costs	(800,000)
Net Cash form Investing Activities:	(20,800,000)	0	0	0	0	0

Cash from Financing Activities
Investment	24,000,000
Dividends 5%		(1,200,000)	(1,200,000)	(1,200,000)	(1,200,000)	(1,200,000)
Net Cash from Financing Activities:	24,000,000	(1,200,000)	(1,200,000)	(1,200,000)	(1,200,000)	(1,200,000)

Ending Balance	$3,210,000	$2,251,138	$15,076,192	$37,457,630	$61,668,086	$87,839,109




Green Earth AAC, Inc. - Balance Sheet

Year	Year 1	Year 2	Year 3	Year 4	Year 5	Percent

Assets
Cash	2,251,138	15,076,192	37,457,630	61,668,086	87,839,109	82%
Current Assets:	$2,251,138	$15,076,192	$37,457,630	$61,668,086	$87,839,109	82%

Land	2,000,000	2,000,000	2,000,000	2,000,000	2,000,000	2%
Office Equipment and Furniture	18,000,000	18,000,000	18,000,000	18,000,000	18,000,000	17%
Organizational Costs	800,000	800,000	800,000	800,000	800,000	1%
Accumulated Depreciation	(188,754)	(658,758)	(1,128,762)	(1,598,766)	(2,068,770)	-2%
Longterm Assets:	$20,611,246	$20,141,242	$19,671,238	$19,201,234	$18,731,230	16%

Total Assets:	$22,862,384	$35,217,434	$57,128,868	$80,869,320	$106,570,339	100%


Long-Term Liabilities	0	0	0	0	0	0%

Equity
Owners Capital	10,000	10,000	10,000	10,000	10,000	0%
Investment	24,000,000	24,000,000	24,000,000	24,000,000	24,000,000	23%
Retained Earnings	52,384	13,607,434	36,718,868	61,659,320	88,560,339	83%
Dividends 5%	(1,200,000)	(2,400,000)	(3,600,000)	(4,800,000)	(6,000,000)	-6%
Total Equity:	$22,862,384	$35,217,434	$57,128,868	$80,869,320	$106,570,339	100%

Total Equity & Liabilities:	$22,862,384	$35,217,434	$57,128,868	$80,869,320	$106,570,339	100%



Green Earth AAC, Inc. - Ratios
	Year 1	Year 2	Year 3	Year 4	Year 5

Gross Profit	5.07%	47.98%	49.38%	49.80%	50.20%
Current Ratio	0.09	0.63	1.56	2.57	3.66
Debt Ratio	1.05	0.68	0.42	0.30	0.23
Breakeven in Days at Full Capacity	8.07	113.02	170.31	168.89	167.54


Financial Assumptions:

Revenue:
Revenue is estimated at beginning price of $81 per cubic yard at full capacity of 1500 cubic yards production per day. Revenue is estimate to increase
according to industry average of 7% per year once the plant reaches full capacity.

Cost of Goods Sold is estimated at cost of materials at industry average of 42%. The following materials are utilizer at the following prices for
production of one cubic yard of AAC:
Sand - $21.60
Cement - $1.90
Lime - $1.63
Aluminum Sulfate - $$8.96

Expenses:
Payroll is estimated at beginning personnel rate of 69 employees for produciton at full capacity with an 2.0% yearly increase in salaries.
Payroll taxes and benefits are estimated at Oregon Employer tax rate of 12.4%.

The following expenses are estimated to increase at regional market average of 5%: Office Suppies, Legal & Accounting, and Misc. Expenses.

The following expenses are estimated to increase at regional market average of 3%: Utilities and Communications

The following expenses are estimated to remain constant due to contracts or managerial budget constraints: Insurance, Travel, and Marketing.

Depreciation & Amortization
Plant Construction and Equipment are depreciated utilizing S/L Method over a period of 40 year.
Organizational Costs are amortized utilizing S/L method over a period of 40 years.

Payback:
Funding is accounted for as an equity investment of preferred stock with divends of 5%.




Green Earth AAC, Inc. - Revenue Growth

Green Earth Vision -"Creating a global community of Visionaries."

Areas of Focus: