Section 2

Team 2
Spring 2021

Business Plan
Business Name: EZ Roll
Business Idea: Manually Operated Utensil Roller

Team Members/Signatures: Email Address:

Christian Boynton boyntocj@dukes.jmu.edu

Connor Brown brown2cb@dukes.jmu.edu

Allie Garrison garrisab@dukes.jmu.edu

Emily Griffith griffiet@dukes.jmu.edu

Colin Haywood haywoocr@dukes.jmu.edu

Megan James james5ma@dukes.jmu.edu

Morgan Prior prior2ml@dukes.jmu.edu

 Executive Summary
EZ Roll
Section 2, Team 2
4901 30th Ave. S, Tampa, FL, 33619
Phone: (813)760-2658
E-mail: ezroll@gmail.com

Business Description: EZ Roll L.L.C. is developing a

Management Titles manually operated cutlery roller, adaptable to all types of
President utensils and napkins. EZ Roll will be utilized by full
Director of Operations service restaurants to save time, money, and limit human
Director of Marketing & Sales contact with silverware.
Production Manager Product: EZ Roll is a manufactured cutlery roller that is
30 inches in length, 36 inches in height, and 18 inches in
Industry: Manufacturing width. Three input bins per machine will measure 8
inches in length, 12 inches in height, and 7 inches in
Number of Employees: width. The single output bin measures 24 inches in
Year 1: 18 employees length, 8 inches in height, and 12 inches in width. Each
Year 2: 32 employees plastic, metal, and hardware component will be
Year 3: 52 employees packaged together during our manufacturing process
Year 4: 82 employees and assembled by customers using the instructions
Year 5: 93 employees manual provided. EZ Roll is adaptable to any size
napkin and silverware, maintaining sanitation through
Amount of Financing Sought:$3,100,000 minimal personal contact.
$2,100,000 - Equity (67.7%) Competitive Advantage: Our product is currently the
$1,000,000 - Debt (32.3%) only one of its kind on the market. Through Porter’s
focus differentiation strategy, we will focus on low
Investment Sources: human contact and a low cost manually operated
$2,100,000 - Owner’s Equity machine giving us an edge on competitors (Belton, 2017).
$1,000,000 - 5-Year CDC 504 Loan Markets: EZ Roll will be using a concentrated strategy
to target mid-to-large size casual dining restaurants. We
Use of Funds: will initially target Florida, then expand through the
Funds will be used for purchasing raw and outsourced United States and by Year 3 internationally. Our total
materials. They will also be used for marketing, market potential for Years 1-5 are as follows:
machinery, shipping expenses, and employee salaries. $28,790,322 (Florida), $79,730,502 (United States),
$8,332,713,705 (Internationally), $8,482,702,669
Product selling price: (Internationally), and $8,635,391,462 (Internationally).
$695.99 per unit Lastly, our estimated market share for Years 1-5 are as
follows: 1%, .75%, .5%, 1%, 1.5%.

Distribution Channels: We will be using a B2B approach along with an E-commerce platform to distribute our
product. Our distribution channels include sales via our website and direct sales. Our clients will receive the product
through delivery from C.H. Robinson’s logistics services.

Competition: Our product currently has no similar products to compete with. Past companies such as Autowraptec,
QuiQSilver, and Smartstock Utensil Dispenser have attempted to break into the restaurant industry, but failed when their
products were too expensive, not user-friendly, or the size of the products were too large. The patents on these products
have since run out, essentially opening the door to a competitor-free market.

Financial Projections (Unaudited):

2021 2022 2023 2024 2025
Revenue: $287,903 $5,979,788 $41,613,569 $84,827,027 $129,530,872
EBIT: ($2,804,260) ($1,305,624) $7,597,322 $18,054,019 $29,842,928

2
 Narrative

Elevator Pitch: Picture this: You’ve just finished your long shift, legs aching from a long day of

overseeing your restaurant and staff. You’re about to head home and see your frustrated staff still

rolling a huge pile of silverware. Your heart sinks as you realize your day has just gotten even longer.

Our product, EZ Roll, allows commercial kitchens to produce large quantities of uniformly rolled

silverware in a fraction of the time. This manually operated, adaptable design increases efficiency,

maintains sanitation, and prioritizes employee time all without having to lay a finger on another

napkin. Time is the one thing you can’t get more of, so why not make the most of it with EZ Roll?

Product Description: EZ Roll will be 30 inches long 36 inches high, and 18 inches wide. The 3

input bins measure 8 x 12 x 7 inches. The single output bin measures 24 x 8 x 12 inches. Silverware

will be sorted into three input bins, and a manually operated crank will roll and place each napkin

into a conveniently located, removable output bin.

Competitive Advantage: EZ Roll is the only product of its kind. Other companies have attempted

to offer silverware rolling products but have come up short due to high costs and difficulty of use

(Google Patents, 2020). To combat high costs, we will be outsourcing our screws and leg protectors

to China, and our sheet metal and plastic domestically. Through outsourcing, we can expect to save

roughly 30%-80% on costs (Martins, 2021). With 4 leg protectors and 18 screws per unit, we save

29 cents per unit on leg protectors and 5 cents per unit on screws. Through Porter's Differentiation

Focus Strategy, EZ Roll will hold the advantage over future competition with our emphasis on

low-contact and ease of use (Belton, 2017).

Value Proposition: Investment in our company means ensuring efficient, uniform, and sanitary

silverware rolls for full-service and chain restaurants. EZ Roll will cut the amount of time spent

rolling silverware, allowing restaurants to invest that time into customer service. EZ Roll’s

improvement of efficiency increases restaurants’ profits which outweighs the risk involved when

3
buying our product (Kukanja & Planinc, 2020).

Business Strategy: Our business strategy is to establish a new market for silverware rolling while

ensuring we hold our focus differentiation. This new market aims to disrupt the current “by-hand”

silverware rolling process. We strive to provide our consumers with a user-friendly, low-contact, and

manually operated product that will save restaurants valuable time.

Business Location: We decided on Tampa, Florida as our headquarters location. With its wide

range of attractions, Florida has roughly 86.7 million tourists visiting each year (Visit Florida, 2021).

Florida is home to 41,366 restaurants within our target market that can support our start-up as we

aim to expand further into the U.S. and internationally after Year 1 (National Restaurant

Association, 2018).

Outsourced Functions: We plan on outsourcing shipping and delivery, a web developer and

administrator, screws and leg protectors, and sheet metal and plastic used for manufacturing.

Domestically, shipping costs will be approximately $100 per unit domestically and $130 to $145 per

unit internationally by contracting with C.H. Robinson (C.H. Robinson, 2021). Outsourcing a web

developer and administrator will cost another $6,000 upfront along with a monthly $400

maintenance fee (Carney, 2020). We are outsourcing our screws from Ningbo Hyderon Hardware

Co., Ltd., and our leg protectors from Suzhou Sunpoint Hardware Co., Ltd (Alibaba, 2021). Lastly,

we will be outsourcing our sheet metal and plastic domestically from MSC Industrial Supply Co.

and Tahoma Rubber and Plastics.

Financial Performance: Despite our business losing money over the first two years of operation,

our profits increase as our market potential increases. By the end of the second year, EZ Roll is

bringing in approximately 6 million dollars of sales revenue, an almost 2000% increase from our

revenue in Year 1 due to our target market expanding from Florida to the United States. By Year 5,

EZ Roll is increasing sales revenue to nearly 130 million.

4
Organizational Chart Footnotes:
The chart above represents our organizational structure for Year 2 of operation. In Year 1 of operation,we will have 3 Manufacturing Assemblers,
1 Packaging Specialist, 1 Inventory Handler, 1 Accountant, and 2 Domestic Sales Associates along with the other employees listed above (excluding
a Production Manager). We are outsourcing a Website Developer and Website Administrator that will assist in the development and maintenance of
our web-based sales. In Year 3, we plan to add 13 International Sales Associates as our company expands from domestic to worldwide sales. We will
also add 2 more Customer Service Representatives to tend to our international customers. Additionally, in Years 3, 4, and 5 we will add 1, 2, and 2
Manufacturing Assemblers, respectively. We will also hire 2 additional packaging specialists at the beginning of Year 3. Adding these Manufacturing
Assemblers will account for an increase in demand each year. In Year 4, 22 International Sales Associates will be added to support our growing
international presence. Additionally, 3 Inventory Handlers will be added in Year 4 as well as 2 Quality Inspectors and 2 additional International
Sales Associates in Year 5.

5
 Exhibit 2: Employee Cost Chart
EZ Roll L.L.C.
Employee Cost Chart - End of Year 2
Position Salary Range Second Year Pay Commission** Mandatory Payroll Benefits* Total Cost of Employees
Deductions

President $83,000-$273,000 $173,400 - FICA-$13,265.10 Health-$3,432.00

FUTA-$420.00
SUTA-$4,681.80
WC-$3,468.00
Total-$21,834.90 198,666.90

Director of Operations $52,000-$152,000 $102,000 - FICA-$7,803.00 Health-$3,432.00

FUTA-$420.00
SUTA-$2,754.00
WC-$2,040.00
Total-$13,017.00 118,449.00
Director of Sales $50,000-$138,000 $96,900 $232,314.91 FICA-$7,412.85 Health-$3,432.00
FUTA-$420.00
SUTA-$2,616.30
WC-$1,938.00
Total-$12,387.70 232,314.91
Human Resource $48,000-$63,000 $56,100 - FICA-$8,583.30 Health(2)-$6,864.00
FUTA-$840.00
Representative SUTA-$3,029.40
(2-FT) WC-$2,244.00
Total(2)-$14,696.70 133,760.70
Accountant $43,000-$63,000 $45,900 - FICA-$7,022.70 Health(2)-$6,864.00
FUTA-$840.00
(2-FT) SUTA-$2,478.60
WC-$1,836.00
Total-$11.337.30 110,001.30
Research and Advertisement $36,000-$43,000 $37,740 - FICA-$5,774.22 Health(2)-$6,864.00
FUTA-$840.00
Associate SUTA-$2,037.96
(2-FT) WC-$1,509.60
Total(2)-$10,161.78 92,505.78
Customer Service $26,000-$44,000 $35,700 $47,949.90 FICA-$5,462.10 Health(2)-$6,864.00
FUTA-$840.00
Representative SUTA-$1,927.80
(2-FT) WC-$1,428.00
Total(2)-$8,817.90 51,381.90
Quality Inspector $29,000-$43,000 $33,660 $41,669.01 FICA-$2,574.99 Health-$3,432.00
FUTA-$420.00
SUTA-$908.82
WC-$673.20
Total-$4,577.01 41,669.01
Packaging Specialist $22,000-$52,000 $32,640 $49,425.12 FICA-$7.490.88 Health(3)-$10,296.00
FUTA-$1,260.00
(3-FT) SUTA-$2,643.84
WC-$1,958.40
Total(3)-13,353.12 56,289.12
Domestic Sales Associates $23,000-$57,000 $32,640 $118,125.08 FICA-$12,484.80 Health(5)-$17,160.00
FUTA-$2,100.00
(5-FT) SUTA-$4,406.40
WC-$3,264.00
Total(5)$-22,255.20 104,695.20
Inventory Handler $18,000-$32,000 $30,600 $42,430.20 FICA-$4,681.80 Health(2)-$6,864.00
FUTA-$840.00
(2-FT) SUTA-$1,652.40
WC-$1,224.00
Total(2)-$8,398.20 45,862.20
Manufacturing Assembler $19,000-$35,000 $30,600 $71,823.90 FICA-$21,068.10 Health(9)-$30,888.00
FUTA-$3,780.00
(9-FT) SUTA-$7,435.80
WC-$5,508.00
Total(9)-$37,791.90 160,479.90
TOTALS - $1,354,560.00 $350,439.99 $ 178,628.16 $106,392.00 $ 1,696,515.91

*Benefits: Employees will receive a 65% contribution to their total Health Insurance cost with a $40 copay / $500 deductible. This will cost the company $3,432 annually / employee ($286
per month / employee).
5 paid sick days, 20 days paid vacation, and Holiday's off including: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day, Unspecified
Observation.
**Commissions: Directors will earn a 2% commission on all sales, and Domestic Sales Associates will earn a 5% commission on their respective sales. International Sales Associates will earn
5% by year 3 and on.
Bonuses: Each year, each employee receives bonuses within the ranges 2% and 4% depending on factors including: increases in job responsibility, respective geographic coverage and in uence of
decisions, and incentives to maintain and increase productivity (re ected in Income Statement).

6
Exhibit 3: Target Market Selection
Targeting Strategy Rationale

Concentrated This strategy allows us to concentrate on restaurants with a mid-level seating volume in a
casual dining environment. These locations specifically are likely to value the potential for
increased side-work efficiency and sanitation protocols.

Differentiation Focus Porter’s Differentiation Focus Strategy allows us to differentiate ourselves within our
market as we are the first product of our kind (Belton, 2017). Differentiating ourselves in
aspects such as being manually-operated rather than electrically, and ensuring low human
contact with the silverware will give us a competitive advantage over competition.

Segmentation Variables Rationale

Customer Size EZ Roll’s target market is mid-sized restaurants, casual dining, and sit-down chain
restaurants. We are focusing on restaurants that separate and roll silverware into napkins
before serving.

Geographic Location In Year 1, we will target restaurants in Florida. Florida is commonly known as a “tourist
state”, and it has 41,366 restaurants where our product could be sold (National
Restaurant Association, 2018). While this is not as large as our target market for the
upcoming years of business, establishing our market in Florida will allow us to introduce
our product to the restaurant industry. In Year 2, we will expand our market to restaurants
in the United States. Year 3 and beyond, we will expand our market internationally. The
restaurants we are specifically targeting make a revenue of 1.5 million to 5 million a year
in average sales (Average Annual Sales of Olive Garden, 2020).

Type of Organization We are targeting B2B with an emphasis on cleanliness*, efficiency, and reducing the need
for human contact. In Year 3, we will be expanding into the online sales market, still
targeting restaurants.

Product Use Establishments that serve medium-to-high volumes of customers that are regularly
short-staffed will get the most use out of our product. EZ Roll prioritizes efficiency and
cleanliness*, and we will use these two aspects to increase desire for our product within
our market.

*Cleanliness Footnote: While high food quality is essential to restaurants, cleanliness is also a high-priority. In a study by Technomic, a leading foodservice research firm, it was
discovered that cleanliness is of top importance to customers. In Washington, DC and San Francisco, respondents said that cleanliness of dishware, silverware, and glasses were most
important in their dining experience. Respondents in Denver and New York reported that cleanliness is of equal value to food quality. These are major cities that are home to many
restaurants. We will market to these restaurants highlighting our product’s ability to increase cleanliness. It is important that businesses know our product will limit human contact with
silverware from the dishwasher to the napkin (Ecolab “Why Clean Matters”, 2011).

7
Exhibit 4: Market Quantification
Year Total Market Market Estimated Retail Annual Unit
Potential Share Annual Sales Price Sales

1 $28,790,322 1% $290,000 $695.99 414

2 $79,730,502 0.75% $6,000,000 $695.99 8,591

3 $8,322,713,705 0.50% $42,000,000 $695.99 59,914

4 $8,482,702,669 1% $85,000,000 $695.99 122,127

5 $8,635,391,462 1.5% $130,000,000 $695.99 186,782

Total Market Potential: EZ Roll’s total market potential is calculated using the following equation:
(number of potential buyers)× (number of purchasesper buyer per year) × (average revenue per product)
EZ Roll’s number of potential buyers in Year 1 is 41,366. This is the total number of marketable
restaurants in Florida (National Restaurant Association, 2018). Our Year 2 number of potential buyers is
135,580. This number includes the 101,811 chain restaurants in the US (Hiner, 2020). We added the 33,769
full-service restaurants in the US to get our total (Jay, 2021). Year 3, 4, and 5 have 14,169,600, 14,424,653,
and 14,684,297 potential buyers, respectively. These numbers are based on the 15,000,000 restaurants in the
world (Balcan, 2014). We subtract the 830,400 fast food restaurants from 15,000,000 to get our total of
14,169,600 (McKay, 2021). Starting in Year 2, we multiplied our number of potential buyers by our
expected potential buyer market growth rate of 1.018% and subtract the restaurant failure rate of 17%
(Ozimek, 2017). The number of purchases per buyer per year is 1 as our product is a one-time purchase
per restaurant. EZ Roll’s average revenue per product is $695.99.

Market Share: We calculated expected market share by first looking at the goals of our company. EZ
Roll’s market share for Year 1 is expected to be 1% throughout the state of Florida. This number is ideal
for products trying to emerge into the restaurant business while still leaving room to grow. In Year 2, we
will expand our market throughout the United States, and from this, we expect our market share to
decrease by 0.25% since we are entering a larger market. In Year 3, we plan to sell our product worldwide
with online sales bringing our market share down to 0.50% to account for this market extension. In Years 4
and 5, our target market remains the same, and we will increase our Year 4 market share back up to 1% as
in Year 1. EZ Roll’s market share is expected to reach 1.5% come Year 5 after our product has established
itself in the restaurant industry.

Year Price Total Fixed Costs Unit Variable Costs BEP in Units

1 $695.99 $1,833,341 $509.25 9,818

2 $695.99 $2,437,797 $191.82 4,836

3 $695.99 $3,649,626 $150.97 6,697

4 $695.99 $5,650,675 $148.08 10,314

5 $695.99 $6,227,242 $147.20 11,348

8
Exhibit 5: Perceptual Maps/Competitive Analysis

Positioning Statement: EZ Roll improves the efficiency of rolling silverware for full-service and chain restaurants. EZ Roll will introduce itself
into the market as a manually operated machine that minimizes human contact. Our product adjusts to any type of silverware and napkin and
increases cleanliness by limiting the number of hands touching the silverware.

Perceptual Map Notes: The EZ Roll product creates a new market that aims to disrupt the current by-hand silverware rolling process. The
focus of our product is to be used in full-service restaurants as an inexpensive substitution to hand-rolling silverware. Full-service restaurants must
focus on their service to ensure an enjoyable experience for customers, in part by spending less time rolling silverware. EZ Roll also markets as an
adaptable product. Any size or material of napkin may be used in the EZ Roll. The placemat and roller can adjust to the size and material of the
napkin for a uniform roll every time. This feature makes EZ Roll a product that can be useful in any restaurant. Another benefit that EZ Roll can
bring to full service restaurants is that it significantly reduces the risk of any contamination to silverware due to human contact. Sanitation is a key
factor in what makes EZ Roll the right choice for restaurants, especially considering the recent pandemic where customers are more concerned than
ever about the cleanliness of restaurants (Ecolab “Why Clean Matters”, 2011).

Competitor Notes: Our research shows that past companies have tried to introduce silverware rollers into the market. Based on our
comparisons of these different products we learned that they failed in their attempts to break into the restaurant industry since they weren’t
user-friendly, their price was too high, and the size was too large. As of right now, most of these patentshave run out and their products are no
longer being sold on the market, giving us the competitive advantage to emerge into this market essentially competitor-free.

Competitive Advantage Porter’s focus differentiation strategy will allow us to establish a new market for silverware rolls as we focus
on providing our consumers with a user-friendly, manually operated, and low human contact product
(Belton, 2017). The EZ Roll provides a quick manual way to roll silverware at a low cost. Focusing on low
contact ensures that each silverware roll will be sanitary. This will give us an advantage over any competition.

While researching competition, we found there isn’t any other cutlery roller on the market that is competing
directly with EZ Roll. We have created this plan to start a new market that disrupts the silverware rolling
process in the restaurant industry. Since there is no direct competition, it is an ideal time for us to enter the
mid-size casual dining restaurant industry. The EZ Roll has the opportunity to grow substantially over the
next few years in an industry that is completely its own.

9
Exhibit 6: Marketing Mix
Product: The EZ Roll is a manually-operated silverware roller. It is shipped to customers in one box that
includes each component necessary for assembly as well as an instruction manual. Each unit will come with
multiple smaller packages inside that are separated into hardware, plastic, and metal. EZ roll is neither
bulky nor heavy making it easy to move around in a restaurant space. The materials used in production are
long-lasting and durable making this product a one-time investment. The EZ Roll is useful in increasing
sanitation measures by limiting the number of contacts the silverware goes through before it reaches the
customers. In a time where restaurants want to provide the most sanitary environment possible, the EZ
Roll is a great tool to do so. With the EZ Roll, restaurants will increase their employees’ productivity by
allowing them more time to tend to customer needs, ultimately adding to customer satisfaction and
increasing overall customer return rate.

Place: Our company is focusing on online sales and direct sales as our venue for selling the EZ Roll.
We will start off heavily in Florida with our direct sales. Our Domestic Sales Associates will go out to
different tourist heavy locations and promote our product to the casual dining restaurants in those areas. In
the first two years we will be building our online website. In Year 3, we will hit heavily on online sales.
While going international we are hoping that online sales are going to be a dependable source for selling all
over the world.

People: Our factory’s operations team is crucial to manufacturing and transporting units to businesses on
time. We have a Production Manager and Quality Inspector that oversee all the Packing Specialists,
Manufacturing Assemblers, and Inventory Handlers to ensure the highest level of quality in our product.
EZ Roll L.L.C. also employs Sales Associates that reach out to our target markets and inform customers of
our product’s benefits. Our Manufacturing Assemblers will also be incharge of creating our manual.

Price: We decided on a price of $695.99. We focused on cost-based pricing and cost-plus pricing to find
our final retail price. These strategies are effective because our market has no significant competition,
possibly putting us into an Monopolistic market. This gives us the opportunity to set our own price and
determine how it fluctuates based on demand and forecasting. These strategies are also best for our
company because our production costs are relatively difficult to predict. With several materials being
outsourced, there will be numerous factors to consider.

Promotion: The focus of EZ Roll is to reduce the time employees spend on wrapping silverware while
increasing sanitation by limiting contact with the silverware. We will introduce EZ Roll to expos along the
East Coast. Our first expo will be this year at the Florida Restaurant and Lodging Show on September 19th
& 20th in Orange County, Florida (Florida Restaurant & Lodging Show, 2021). We will be advertising with
Google Ads, Search Engine Optimizations, and Facebook clicks. Along with that we will be putting out
magazine spreads in reputable restaurant magazines. Some of these include Restaurant Development &
Design, Restaurant Magazine, and Foodservice and Hospitality (Gromfin, N.d.).
*Refer to the promotional expenses below.

Year 1 Year 2 Year 3 Year 4 Year 5

*Promotional $100,000 $500,000 $1,000,000 $2,000,000 $3,000,000

Expense

10
Exhibit 7: Process Map

For each major quality step:

Quality What is measured? How often? How will you ensure quality?
Step

Q1-Q4 Standard & function of plastic Three times a day We are using durable polyethylene plastic. Assembly line workers will randomly select a compartment bin, cog,
compartment bins, cogs, napkin-holding placemat, and ending bin every 2.5 hours from the assembly line and assure each is up to
napkin-holding placemats, and production functionality standards. Any faults will be noted and corrected.
ending bins by making sure
they are able to attach to the
machine, are the correct size,
and are durable

Q5-Q9 Standard / function of metal Three times a day We are using aluminum to create the essential parts. Assembly line workers will randomly select a bar, exterior
bars, exterior walls, legs, crank, wall, leg, crank, and spiral wrapper every 2.5 hours from the assembly line and assure each is up to production
and spiral wrapper by making functionality standards. Any faults will be noted and corrected.
sure they are able to attach to
the machine, are the correct
size, and are durable

Q10 Standard / function of rubber Upon shipment arrival We are outsourcing to obtain the rubber leg protectors for our product and the screws needed to assemble the
leg protectors and screws by product. Workers will check random rubber leg protectors and screws upon arrival to ensure they are up to
making sure they are able to standards. Any faults will be noted and the rest of the batch will be evaluated.
attach to the machine, are the
correct size, and are durable

For each critical failure point:

Failure Brief How will you prevent this failure? How will you recover if this failure occurs?
Point Description

F1 Plastic goods For every package, we will count the number Each expected product from the plastic assembly system will be accounted for. If a missing /damaged
processed could be of plastic parts in the package while putting it part is identified, one will be added from work in process inventory. If multiple packages are missing a
damaged or into the package to make sure all of the specific plastic component, a review of the appropriate machinery will occur.
collected in the processed parts necessary are in the final
wrong amount. product.

F2 Metal goods For every package, we will count the number Each expected product from the metal assembly system will be accounted for. If a missing /damaged
processed could be of the metal parts in the package while part is identified, one will be added from the metalwork in process inventory. If multiple packages are
damaged or putting it in to make sure all of the processed missing a specific component, a review of the appropriate machinery will occur.
collected in the parts are in the final product.
wrong amount.

F3 Goods processed For every package, we will count the plastic The missing or damaged components will be identified and if possible, replaced / added to the finished
could be damaged component and metal component along with package. The preceding and proceeding few packages will then be re-checked to see if this is an
or collected in the the hardware to make sure all necessary parts individualized failure or a process failure. Process failures will be dealt with at their origin.
wrong amount. are in the final package.

11
Exhibit 8: Quality Assurance

Dimensions of
quality on Corresponding quality
which we will Why is this dimension important? steps on the Process
focus: Flowchart:
Our product must be consistent once it reaches the customer. We have Q1-Q10
to ensure all parts of the machine are made with the highest quality
Consistency metal, plastic, and hardware and are distributed correctly. If something
were distributed incorrectly, it would cause issues in assembly of the
product. Our target market will want consistency in the product’s ability
to roll silverware in a fast and easy fashion.
Durability is important for our product because our customers expect Q1-Q10
Durability to only need to purchase one unit. High quality materials ensure our
product does not break. Our target market will be very pleased with the
ability to roll silverware daily for years with a one-time purchase of our
product.
The performance of our product is very important to our company. We Q1-Q10
Performance want each customer to be satisfied with the usability of our product.
EZ Roll is resistant to the wear and tear of everyday use and
performance is guaranteed to be consistent with each roll.

Use the space below to describe any additional Proactive Quality Assurance Plans that are not connected to a
specific activity on your Process Flowchart / Service Blueprint.
To add extra quality assurance in our factory, we will be including a Quality Inspector. The Quality Inspector will have the
responsibility of checking each quality control and making sure each unit has the correct number of products in soft packaging.
Once they have ensured the accuracy of this, they will allow for it to continue onto final packaging. Our company will have
Manufacturing Assemblers that work firsthand with the products each day. Manufacturing Assemblers will go through multiple
training sessions performed by the Director of Operations to ensure the highest quality of performance. In addition, we will
implement surveys to both potential and current clients to get feedback on how our product is functioning for clients and what
potential clients expect from our product.
Describe any reactive quality assurance plans. Include a recovery plan should a customer receive poor quality
goods and/or services.
We will have Customer Service Representatives available by phone or email during business hours Monday-Friday. If clients
receive a defective product, they will have our Customer Service contact information. In the case that the product is not able to
operate, clients will have the option to either return the product for a 100% refund or exchange it for a new EZ Roll free of
charge.

If you will utilize a quality/process improvementmethodology, indicate which:

☐ NA X TQM ☐ Six Sigma X ISO ☐ Benchmarking
☐ Other (specify what):
Provide a specific explanation of how your chosenquality methodology relates to your business and how it will be
applied:
Total Quality Management (TQM): This quality methodology involves everyone in our company making a continual effort
to improve quality and to achieve customer satisfaction. We will aim to continually improve our product’s quality to ensure EZ
Roll can withstand heavy usage from these restaurants. To enforce our TQM policy, we will hire a Quality Inspector that will
oversee our product from beginning to end of production. In addition to our Quality Inspector, we plan to create existing
customer and potential customer surveys. The existing customer surveys will be distributed 6 months after purchase of our
product to give us feedback on our functionality and quality of our product. Potential customer surveys will be distributed
January 1 of every year to give us feedback on what a customer wants from an automatic cutlery roller.
ISO 9001:2015: This quality methodology specifies requirements for a quality management system within our organization.
Our Production Manager will use ISO 9001:2015 to help regulate our production in a way that enhances customer satisfaction.

12
Exhibit 9: Inventory, Suppliers and Distribution
RAW MATERIAL INVENTORY & SUPPLIER SELECTION If yourorganization does not have raw material inventory, please check this box: ☐NA
Item(s) Supplier Name & Reason for selecting this supplier Supplier lead Frequency of System of Mode(s) of
Location (City, State, time (in days replenishment (in Management Transportation
Country) accounting for days)
Customs
clearing)
MSC Industrial Supply Co. With over 75 years of experience, MSC ensures 10 days 30 days Fixed order interval X Highway X Rail
reliability, durability, and accuracy. They have 5 ☐ Waterway ☐ Air
Sheet Metal Baltimore, MD, USA Customer Fulfillment Centers throughout the USA
that are ready to fill orders upon request (Metals,
2021).
Tahoma Rubber & Plastics Tahoma maintains a large supply of raw materials, 10 days 30 days Fixed order interval X Highway X Rail
Plastic allowing them to meet Just-In-Time delivery ☐ Waterway ☐ Air
Barberton, OH, USA schedules. Tahoma also bales, cuts and grinds plastic
to meet any requested size (Plastic, 2021).
Ningbo Hyderon Hardware Manufacturer has a 5.0 rating (out of 5), 100% on 30 days 30 days Fixed order interval X Highway X Rail
Transparent Rubber Co., Ltd. time delivery rate, and has 55% of its clientele in ☐ Waterway X Air
Leg Protects North America. The leg protectors are also some of
Yuyao, Zhejiang, China the lowest priced ones we could find while still
ensuring quality (Alibaba, 2021).
Suzhou Sunpoint Hardware Manufacturer has a 5.0 rating (out of 5), 100% on 30 days 30 days Fixed order interval X Highway X Rail
Self Tapping Co., Ltd. time delivery rate, and already has clients in North X Waterway ☐ Air
Drilling Binding America. Additionally, the screws are much cheaper
Screws Kunshan City, China than the other options while ensuring quality
(Alibaba, 2021).

FINISHED GOODS INVENTORY If your organization doesnot have finished goods inventory, please check this box: ☐NA
Finished goods produced Frequency of shipping Average level of Finished goods Amount of safety stock on site
(per hour) finished goods inventory on site
At the end of Year 1 0.58 per hour Once every 2 days 2.32 Enough inventory to make 1 more product
At the end of Year 2 3.91 per hour Once a day 15.64 Enough inventory to make 1 more product
At the end of Year 3 27.14 per hour Once a day 108.56 Enough inventory to make 3 more products
At the end of Year 4 55.32 per hour Once a day 221.28 Enough inventory to make 3 more products
At the end of Year 5 84.60 per hour Once a day 338.4 Enough inventory to make 5 more products

What is the lifespan of your finished goods inventory? X NA Our items are non-perishable.
How will you manage perishability of Finished GoodsInventory? X NA Our items are non-perishable.

DISTRIBUTION If your organization does not requiredistribution, please check this box: ☐NA
Name of transportation provider/carrier Reason(s) for selecting this provider/carrier Frequency of Pick Up / Drop off
C.H Robinson C.H. Robinson provides much wider coverage at a faster rate than leading logistics companies. C.H. Daily
Robinson works with companies to cut costs through a contract. This will save us about $150 for shipping
each unit as single shipments would have been $250 a shipment (C.H. Robinson, 2021).

13
Exhibit 10: Capacity

Demand Capacity Utilization Hours of Bottleneck name and How will you manage the bottleneck to ensure you
(per hour) (per hour) (%) Operation description can appropriately supply your customers?
At the end of Year 1: 0.58 15 3.87% 4 hours a day, 3 Our demand does not exceed our capacity in Year 1.
days a week
At the end of Year 2: 3.91 15 26.07% 8 hours a day, 5 Our demand does not exceed our capacity in Year 1.
days a week Our bottleneck is “Process
At the end of Year 3: 27.14 30 90.47% 8 hours a day, 5 Spiral Wrapper” as it has our To meet our increase in demand, we will be adding 1
days a week lowest throughput rate of 15 additional Team Assembler to process our Spiral Wrapper,
units per hour. increasing our capacity to 30 units per hour.
At the end of Year 4: 55.32 60 92.20% 8 hours a day, 5 To meet our increase in demand, we will be adding 2
days a week additional Team Assemblers to process our Spiral Wrapper,
increasing our capacity to 60 units per hour.
At the end of Year 5: 84.60 90 94.00% 8 hours a day, 5 To meet our increase in demand, we will be adding 2
days a week additional Team Assemblers to process our Spiral Wrapper,
increasing our capacity to 90 units per hour.

Show your calculations for the following parameters at the end of Year 1.
Hours of Demand/month Demand/hour Capacity/month Capacity/hour Utilization
operation/month
Production will operate 4 Our forecasted Year 1 sales are Our demand per month Our capacity is 15 units per As shown in Exhibit 7, our capacity Utilization = Demand /
hours a day for 3 days a 414 units. This would result in divided by our monthly hour. This multiplied by our per hour is 15 units. Capacity
week. We will be operating monthly forecasted sales of 35 hours of operation monthly hours of operation
15 days a month. This will units. results in a demand of results in a capacity of 900 per Utilization: 0.58 / 15
be a total of 60 hours of 0.58 units per hour. month. = 3.87%
operation a month.

Additional resources (beyond your bottleneck) must be allocated appropriately to support operations. Identify which resources have a significant impact on capacity at start up and
describe why these are appropriate amounts of resourcesat start up.

Resources that have a significant impact on capacity at start up include our Packaging Specialists and our Team Assemblers. These employees could affect our operations because on any given day,
someone could become sick or have other personal issues to deal with where they can’t make it to our manufacturing plant. Considering the low utilization in the first two years, as long as no more
than 2 or 3 of our Team Assemblers and Packaging Specialists are not able to work on the same day, we will have enough resources to account for Team Assemblers and Packaging Specialists missing
days at work.

Describe adjustments you will make as resource requirements vary with time. Be specific regarding which key resources (beyond your bottleneck) will be adjusted, when and how.
If you will make multiple adjustments, explain each.
In Year 3, our clientele will expand into the international realm, and our demand will increase significantly. To account for our bottleneck, we will hire 1 more Team Assemblers and 2 more Packaging
Specialists at the beginning of Year 3 so more employees will be producing and packaging at the same time. We will do this instead of having our current Team Assemblers and Packaging Specialists
work more hours a day. Extra hours of work could result in lower quality outputs. This addition will also ensure that we are able to keep up with the increase in demand once we move to
international sales.
How will you manage seasonality? If your organizationdoes not have seasonal demand, please check this box: X NA

14
Exhibit 11: Income Statement EZ Roll L.L.C. Pro-Forma Income Statement
Section 2 Team 2

Date Ending Date Ending Date Ending Date Ending Date Ending
2021 % 2022 % 2023 % 2024 % 2025 %

Sales Revenue ($ 287,903) 100.00% ($ 5,979,788) 100.00% ($ 41,613,569) 100.00% ($ 84,827,027) 100.00% ($ 129,530,872) 100.00%
COGS ( 158,347) 55.00% ( 3,288,883) 55.00% ( 22,887,463) 55.00% ( 46,654,865) 55.00% ( 71,241,980) 55.00%
Gross Profit ($ 129,556) 45.00% ($ 2,690,905) 45.00% ($ 18,726,106) 45.00% ($ 38,172,162) 45.00% ($ 58,288,892) 45.00%

General and Administrative Expenses

Salaries and Wages ($ 823,000) 285.86% ($ 1,354,560) 22.65% ($ 2,658,201) 6.39% ($ 4,586,624) 5.41% ($ 5,285,359) 4.08%
Payroll Tax Expenses ( 115,573) 40.14% ( 178,628) 2.99% ( 350,127) 0.84% ( 600,888) 0.71% ( 695,438) 0.54%
Employee Benefits and Retirement ( 58,344) 20.27% ( 106,392) 1.78% ( 178,464) 0.43% ( 281,424) 0.33% ( 319,176) 0.25%
Commissions Expense ( 20,153) 7.00% ( 418,585) 7.00% ( 4,993,628) 12.00% ( 10,179,243) 12.00% ( 15,543,704) 12.00%
General Insurance Expense ( 23,370) 8.12% ( 23,370) 0.39% ( 23,370) 0.06% ( 23,370) 0.03% ( 23,370) 0.02%
Depreciation Expense ( 66,594) 23.13% ( 66,594) 1.11% ( 66,594) 0.16% ( 66,594) 0.08% ( 680,517) 0.53%
Down Payment ( 750,000) 260.50% ( -) 0.00% ( -) 0.00% ( -) 0.00% ( -) 0.00%
Travel, Meals, and Entertainment ( 100,000) 34.73% ( 500,000) 8.36% ( 1,000,000) 2.40% ( 1,500,000) 1.77% ( 2,000,000) 1.54%
Website Expense ( 5,000) 1.74% ( 10,000) 0.17% ( 20,000) 0.05% ( 40,000) 0.05% ( 60,000) 0.05%
Advertising and Promotion Expense ( 100,000) 34.73% ( 500,000) 8.36% ( 1,000,000) 2.40% ( 2,000,000) 2.36% ( 3,000,000) 2.32%
Property Tax ( 778,400) 270.37% ( 778,400) 13.02% ( 778,400) 1.87% ( 778,400) 0.92% ( 778,400) 0.60%
LLC License ( 913) 0.32% ( 100) 0.00% ( 100) 0.00% ( 100) 0.00% ( 100) 0.00%
Utilities ( 39,900) 13.86% ( 39,900) 0.67% ( 39,900) 0.10% ( 39,900) 0.05% ( 39,900) 0.03%
State Mandatory Start Up Cost ( 70) 0.02% ( -) 0.00% ( -) 0.00% ( -) 0.00% ( -) 0.00%
Attorney Fees for Patent ( 8,500) 2.95% ( -) 0.00% ( -) 0.00% ( -) 0.00% ( -) 0.00%
Other Patent Fees 4,000 1.39% ( -) 0.00% ( -) 0.00% ( 1,600) 0.00% ( -) 0.00%
Other Building Expenses 40,000 13.89% 20,000 0.33% 20,000 0.05% 20,000 0.02% 20,000 0.02%
Total General & Administrative Expenses ($ 2,933,817) 1019.03% ($ 3,996,529) 66.83% ($ 11,128,784) 26.74% ($ 20,118,143) 23.72% ($ 28,445,964) 21.96%

Earnings Before Interest and Taxes ($ (2,804,260) -974.03% ($ (1,305,624) -21.83% ($ 7,597,322) 18.26% ($ 18,054,019) 21.28% ($ 29,842,928) 23.04%

Interest Expense (6%) ( 60,000) 20.84% ( 48,000) 0.80% ( 36,000) 0.09% ( 24,000) 0.03% ( 12,000) 0.01%

Earnings Before Taxes ($ (2,864,260) -994.87% ($ (1,353,624) -22.64% ($ 7,561,322) -22.64% ($ 18,030,019) 21.26% ($ 29,830,928) 23.03%

Income Tax Expense (5.5%) ( -) 0.00% ( -) 0.00% ( 415,873) 1.00% ( 991,651) 1.17% ( 1,640,701) 1.27%

Net Income (Loss) ($ (2,864,260) -994.87% ($ (1,353,624) -22.64% ($ 7,145,449) 17.17% ($ 17,038,368) 20.09% ($ 28,190,227) 21.76%

Operational Cash Flow ($ (2,737,666) ($ (1,239,030) ($ 7,248,043) ($ 17,128,962) ($ 28,882,744)

Free Cash Flow ($ (4,384,766) ($ (3,826,115) ($ 709,363) ($ 7,919,818) ($ 17,409,633)

Statement of Retained Earnings

Beginning Balance of Retained Earnings ($ -) ($ (2,864,260) ($ (4,217,885) ($ (2,431,560) ($ 1,828,032)

Net Income (Loss) ( (2,864,260) ( (1,353,624) ( 7,145,449) ( 17,038,368) ( 28,190,227)

Dividends to Stockholders ( -) ( -) ( (5,359,124) ( (12,778,776) ( (21,577,788)

Ending Retained Earnings ($ (2,864,260) ($ (4,217,885) ($ (2,431,560) ($ 1,828,032) ($ 8,440,471) 15

Exhibit 12: Balance Sheet EZ Roll L.L.C. Pro-Forma Balance Sheet
Section 2 Team 2

As of Inception Date Ending Date Ending Date Ending Date Ending Date Ending
Date % 2021 % 2022 % 2023 % 2024 % 2025 %
ASSETS

Current Assets

Cash and Cash Equivalents 2,100,000 100.00% ( 65,385) 2.57% ( 1,109,829) 29.74% ( 7,337,532) 69.54% ( 17,134,482) 80.90% ( 4,201,990) 13.09%
Accounts Receivable ( -) 0.00% ( 4,000) 0.16% ( 40,000) 1.07% ( 150,000) 1.42% ( 300,000) 1.42% ( 400,000) 1.25%
Inventory ( -) 0.00% ( 20,000) 0.79% ( 200,000) 5.36% ( 750,000) 7.11% ( 1,500,000) 7.08% ( 2,000,000) 6.23%
Short Term Investments ( -) 0.00% ( -) 0.00% ( -) 0.00% ( -) 0.00% ( -) 0.00% ( -) 0.00%
Total Current Assets ($ 2,100,000) 100.00% ($ 89,385) 3.52% ($ 1,349,829) 36.17% ($ 8,237,532) 78.07% ($ 18,934,482) 89.40% ($ 6,601,990) 20.56%

Fixed (Long-Term) Assets

Machinery and Equipment ( -) 0.00% ( 281,583) 11.08% ( 281,583) 7.54% ( 281,583) 2.67% ( 281,583) 1.33% ( 281,583) 0.88%
Buildings ( -) 0.00% ( 1,499,000) 59.01% ( 1,499,000) 40.17% ( 1,499,000) 14.21% ( 1,499,000) 7.08% ( 25,442,000) 79.24%
Land ( -) 0.00% ( -) 0.00% ( -) 0.00% ( -) 0.00% ( -) 0.00% ( -) 0.00%
Total Gross Fixed Assets ($ -) 0.00% ($ 1,780,583) 70.09% ($ 1,780,583) 47.71% ($ 1,780,583) 16.88% ($ 1,780,583) 8.41% ($ 25,723,583) 80.12%
Less: Accumulated Depreciation ( -) 0.00% ( 66,594) 2.62% ( 133,188) 3.57% ( 199,782) 1.89% ( 266,376) 1.26% ( 946,893) 2.95%
Net Fixed Assets ($ -) 0.00% ($ 1,713,989) 67.47% ($ 1,647,395) 44.14% ($ 1,580,801) 14.98% ($ 1,514,207) 7.15% ($ 24,776,690) 77.17%

Other Long Term Assets

Long Term Investments ( -) 0.00% ( 722,000) 28.42% ( 722,000) 19.35% ( 722,000) 6.84% ( 722,000) 3.41% ( 722,000) 2.25%
Intangibles, Net of Amortization ( -) 0.00% ( 15,000) 0.59% ( 12,857) 0.34% ( 10,714) 0.10% ( 8,571) 0.04% ( 6,428) 0.02%
Total Other Long Term Assets ($ -) 0.00% ($ 737,000) 29.01% ($ 734,857) 19.69% ($ 732,714) 6.94% ($ 730,571) 3.45% ($ 728,428) 2.27%

Total Assets ($ 2,100,000) 100.00% ($ 2,540,374) 100.00% ($ 3,732,081) 100.00% ($ 10,551,047) 100.00% ($ 21,179,260) 100.00% ($ 32,107,108) 100.00%

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Current Liabilities

Accounts Payable ( -) 0.00% ( 13,196) 0.00% ( 274,074) 7.34% ( 1,907,289) 18.08% ( 3,887,905) 18.36% ( 5,936,832) 18.49%
Accrued Salaries and Wages ( -) 0.00% ( 668,000) 26.30% ( 1,214,660) 32.55% ( 2,265,623) 21.47% ( 3,993,597) 18.86% ( 4,503,614) 14.03%
Accrued Payroll Taxes and Benefits ( -) 0.00% ( 124,438) 4.90% ( 233,891) 6.27% ( 414,013) 3.92% ( 705,703) 3.33% ( 793,827) 2.47%
Notes Payable ( -) 0.00% ( -) 0.00% ( -) 0.00% ( -) 0.00% ( -) 0.00% ( -) 0.00%
Current Maturity of LT Debt ( -) 0.00% 0.00% ( 200,000) 5.36% ( 200,000) 1.90% ( 200,000) 0.94% ( 200,000) 0.62%
Total Current Liabilities ($ -) 0.00% ($ 805,634) 31.71% ($ 1,922,625) 51.52% ($ 4,786,925) 45.37% ($ 8,787,205) 41.49% ($ 11,434,273) 35.61%

Long-Term Liabilities

Mortgage Payable ( -) 0.00% ( 1,499,000) 59.01% ( 1,447,484) 38.78% ( 1,395,968) 13.23% ( 1,344,452) 6.35% ( 1,292,936) 4.03%
LT Debt Less Current Maturities1 ( -) 0.00% ( 1,000,000) 39.36% ( 800,000) 21.44% ( 600,000) 5.69% ( 400,000) 1.89% ( 200,000) 0.62%

Total Liabilities ($ -) 0.00% ($ 3,304,634) 130.08% ($ 4,170,109) 111.74% ($ 6,782,893) 64.29% ($ 10,531,657) 49.73% ($ 12,927,209) 40.26%

STOCKHOLDER'S EQUITY

Common Stock ( 2,100,000) 100.00% ( 2,100,000) 82.67% ( 2,100,000) 56.27% ( 2,100,000) 19.90% ( 2,100,000) 9.92% ( 2,100,000) 6.54%
Preferred Stock ( -) 0.00% ( -) 0.00% ( 1,679,857) 45.01% ( 4,099,714) 38.86% ( 6,719,571) 31.73% ( 8,639,428) 26.91%
Retained Earnings ($ -) 0.00% ( (2,864,260) -112.75% (4,217,885) -113.02% ( (2,431,560) -23.05% ( 1,828,032) 8.63% ( 8,440,471) 26.29%
Total Stockholders' Equity ($ 2,100,000) 100.00% ($ (764,260) -30.08% ($ (438,028) -11.74% ($ 3,768,154) 35.71% ($ 10,647,603) 50.27% ($ 19,179,899) 59.74%

Total Liabilities and Stockholders' Equity ($ 2,100,000) 100.00% ($ 2,540,374) 100.00% ($ 3,732,081) 100.00% ($ 10,551,047) 100.00% ($ 21,179,260) 100.00% ($ 32,107,108) 100.00%

1 Must adjust if Long Term Debt is used for Financing

16
Exhibit 13: Cash Flow Statement EZ Roll L.L.C. Pro-Forma Statement of Cash Flows
Section 2 Team 2

As of Inception Date Ending Date Ending Date Ending Date Ending Date Ending
Date 2021 2022 2023 2024 2025
Cash Flows From (For) Operations
Net Income ($ -) ($ (2,864,260) ($ (1,353,624) ($ 7,145,449) ($ 17,038,368) ($ 28,190,227)
Depreciation & Amortization ( 66,594) ( 66,594) ( 66,594) ( 66,594) ( 680,517)
Changes in Current Assets
Increase in Accounts Receivable ( -) ( (4,000) ( (36,000) ( (110,000) ( (150,000) ( (100,000)
Increase in Inventories ( -) ( 20,000) ( 180,000) ( 550,000) ( 750,000) ( 500,000)

Changes in Current Liabilities

Increase in Accounts Payable ( -) ( 13,196) ( 260,878) ( 1,633,215) ( 1,980,616) ( 2,048,927)
Increase in Accrued Salaries and Wages ( -) ( 668,000) ( 546,660) ( 1,050,963) ( 1,727,974) ( 510,017)
Increase in Accrued Payroll Taxes and Benefits ( -) ( 124,438) ( 109,453) ( 180,122) ( 291,690) ( 88,124)

Net Cash Flow From (For) Operating ($ -) ($ (1,976,032) ($ (226,039) ($ 10,516,343) ($ 21,705,242) ($ 31,917,812)

Cash Flow (For) From Investing Activities

Fixed Asset Purchases ( (1,780,583) ( -) ( -) ( -) ( (23,943,000)
Short Term Investments ( -) ( -) ( -) ( -) ( -)
Long Term Investments ( 722,000) ( 722,000) ( 722,000) ( 722,000) ( 722,000)

Net Cash Flow (For) From Investing ($ -) ($ (1,058,583) ($ 722,000) ($ 722,000) ($ 722,000) ($ (23,221,000)

Cash Flow From (For) Financing Activities

Issuance of Common Stock ($ 2,100,000) ($ -) ($ -) ($ -) ($ -) ($ -)
Short Term Debt Borrowings ( -) ( -) ( -) ( -) ( -) ( -)
Long Term Debt Borrowings ( 1,000,000) ( 800,000) ( 600,000) ( 400,000) ( 200,000)
Long Term Debt Payments ( (251,516) ( (251,516) ( (251,516) ( (251,516)
Dividends Paid to Stockholders ( -) ( -) ( (5,359,124) ( (12,778,776) ( (21,577,788)
Net Cash Flows From (For) Financing ($ 2,100,000) ($ 1,000,000) ($ 548,484) ($ (5,010,640) ($ (12,630,292) ($ (21,629,304)

Net Change in Cash ($ 2,100,000) ($ (2,034,615) ($ 1,044,445) ($ 6,227,703) ($ 9,796,950) ($ (12,932,492)

Beginning Cash Balance ($ -) ($ 2,100,000) ($ 65,385) ($ 1,109,829) ($ 7,337,532) ($ 17,134,482)

Net Change in Cash ($ 2,100,000) ($ (2,034,615) ($ 1,044,445) ($ 6,227,703) ($ 9,796,950) ($ (12,932,492)

Ending Cash Balance ($ 2,100,000) ($ 65,385) ($ 1,109,829) ($ 7,337,532) ($ 17,134,482) ($ 4,201,990)

17
Exhibit 14: Financial Statement Notes

Balance Sheet Notes

Type of Organization:L.L.C. (Limited Liability Company)

Source of Funds: In January 2021, the seven owners of EZ Roll L.L.C each contributed $300,000 of equity to launch
our company, totaling $2,100,00 of Common Stock.
Long Term Debt: We are taking out a 5-year CDC 504 loan for $1,000,000, with a 6% interest per year to purchase our
Plant, Property, and Equipment, as well as help pay for yearly expenses until we turn a profit. The yearly payments will
be $200,000.
Plant, Property, and Equipment: In Year 1, we are purchasing machines totaling $281,583. Aside from the machines
we are purchasing in Year 1, we will purchase a warehouse with a retail cost of $1,499,000, putting a $750,000 down
payment on the property. We will take out a mortgage to cover the rest of the cost to pay over our years of the business.
In Year 5 we are purchasing a warehouse in Germany for $23,943,000. We plan to use this warehouse to house our
international headquarters and manufacturing facilities to account for our expected growth. We will purchase equipment
and furniture for this warehouse in Year 6.
Accounts Receivable: Accounts Receivable is calculated based on 20% of each year’s ending inventories due to
increasing sales.
Accounts Payable: Accounts Payable is calculated based on the cost of 1 month of our yearly COGS, assuminga
30-day period between payments.

Income Statement Notes

Gross Profit:
● Sales Revenue: Our sales revenue is calculated using our forecasted unit sales per year multiplied by our price
of $695.99.
● Cost of Goods Sold (COGS):Our COGS is 55% of sales revenue, making our gross profit 45% of sales
revenue.
General and Administrative Expenses:
● Salaries and Wages: In Year 1 of operation, we will have 3 Team Assemblers, 1 Packaging Specialist, 1
Inventory Handler, 1 Accountant, 1 Human Resources Representative, and 2 Domestic Sales Associates along
with our Director of Operations, Director of MarketingSales, and President. We will be open for 4 hours a day,
3 days a week for the first year based on our daily demand and productivity. The same positions will be carried
over to the second year while hiring 2 Packaging Specialists, 1 Inventory Handler, 1 Accountant, 2 Human
Resources Representatives, and 3 Domestic Sales Associates. In Year 3, we will sell our product internationally
and hire 13 International Sales Associates, 2 Customer Service Representatives, 4 Human Resources
Representatives, and 2 Packing Specialists to help with the expansion. In Year 4, we will hire 22 International
Sales Associates to support our expected international growth as well as 6 Human Resources Representatives.
There will also be 3 additional Inventory Handlers to support the increase in sales. Finally, in Year 5, we will
add 2 International Sales Associates, 2 additional Human Resources Representatives, and 2 Quality Inspectors
to ensure the highest product quality possible.
● Depreciation Expense: We are using straight line depreciation with a useful life of 10 years for the machinery
and equipment. Regarding the building that we purchase in Year 1 and Year 5, we will use straight line
depreciation with a useful life of 39 years.
● Website Expense: We are outsourcing the creation of a website in Year 1 which costs $5,000. This cost
exponentially grows in direct correlation to our increase in sales from nationwide to international.
● Tax/License: Most of our fees come from our patent. In Year 1 we will be paying a $50 filing fee, $25
registered agent fee, $30 certified copy fee, and a $5 certificate of status. Together the total fees for being a
Limited Liability Company will be $921.50 in Year 1. We will also be paying an additional $100 each year for
renewal (Florida Department of State, 2021).

18
Exhibit 15: Financial Ratios EZ Roll L.L.C. Financial Ratios
Section 2 Team 2

Date Ending Date Ending Date Ending Date Ending Date Ending Industry Average
2021 2022 2023 2024 2025 Ratios

Liquidity Ratios
Current Ratio 0.11 0.70 1.72 2.15 0.58 2.24
Quick Ratio 0.09 0.60 1.56 1.98 0.40 1.26
Operating Cycle 51.17 24.64 13.28 13.03 11.37 22.50

Leverage Ratios
Debt/Equity -4.32 -9.52 1.80 0.99 0.67 0.64
Times Interest Earned -46.74 x -27.20 x 211.04 x 752.25 x 2486.91 x -0.46x

Asset Management Ratios

Inventory Turnover 7.92 x 16.44 x 30.52 x 31.10 x 35.62 x 28
Receivables Turnover N/A N/A N/A N/A N/A 15
Fixed Asset Turnover 0.17 x 3.63 x 26.32 x 56.02 x 5.23 x 159x

Profitability Ratios
Gross Profit Margin 45.00% 45.00% 45.00% 45.00% 45.00% 36.9%
Operating Profit Margin -974.03% -21.83% 18.26% 21.28% 23.04% 1.80%
Return on Assets -112.75% -36.27% 67.72% 80.45% 87.80% -18.10%

DuPont Analysis
Net Profit Margin -994.87% -22.64% 17.17% 20.09% 21.76% 10.00%
Total Asset Turnover 0.11 x 1.60 x 3.94 x 4.01 x 4.03 x 1.1x
Equity Multiplier -3.32 -8.52 2.80 1.99 1.67 1.00
Return on Equity 374.78% 309.03% 189.63% 160.02% 146.98% -61.8%

19
Exhibit 16: Financial Analysis

Dupont Equation:
PM×TAT×EM = ROE
Year 1: (-994.87%) × .11 × -3.32 = 374.78%
Year 2: (-22.64%) × 1.6× -8.52 = 309.03%
Year 3: 17.17% × 3.94 × 2.8 = 189.63%
Year 4: 20.09% × 4.01 × 1.99 = 160.02%
Year 5: 21.76% × 4.03 × 1.67 = 146.98%

Dupont Analysis:
Our Net Profit Margin, Total Asset Turnover, and Equity Multiplier increase substantially with each
subsequent year. Our Profit Margin starts very low because we aren't making a profit in Year 1 and Year 2, but
by Year 3 our international market sales put us well above the breakeven point with high profits. The Dupont
Analysis shows that, as a company, we are performing around the industry average for Total Asset Turnover
because of our high amount of sales revenue. We arealso around the industry average for the Equity
Multiplier because of our balanced debt to equity ratio. Lastly, Net Profit Margin is performing above average
for the industry because of our decreasing costs as we mature as a company.

Return on Assets:
Our Return on Assets starts off very low because we aren’t selling much in the first year and are purchasing
many assets. As we grow throughout the United States and internationally, we stabilize with a large Return on
Assets that is much higher than the industry average. Once we pay for our initial assets, we are set to grow
and have a large return. Our ROA is high in the last 3 years due to our extensive international market.

Operating Profit Margin:

Our company falls in the negatives for Year 1 for Operating Profit Margin because our market consists only
of restaurants located in Florida. As we expand in Year 2 to the United States and then International in Years
3, 4, and 5, we get closer to the industry average and then pass it by a substantial amount. In Year 2, we fall
around the industry average but continue to grow and turn our sales into profits.

Net Profit Margin:

We start with a low profit margin in Year 1 because of our expenses and large investment in equipment,
inventory, and a warehouse. When we expand our sales internationally in Year 3, we are able to generate
enough revenue to turn a profit. As we expand our target market, our business has a major increase in Net
Profit Margin because of our significant increase in revenues that cover our expenses as we mature as a
company.

Fixed Asset Turnover:

Our fixed assets are high in Year 1 in comparison to our sales making the overall Fixed Average Turnover
lower than the industry average. As we continue to make more in sales revenue each year, we see an increasing
Fixed Asset Turnover average approaching the industry average. In the fifth year we see our Fixed Asset
Turnover go down due to the acquisition of our second manufacturing warehouse. Within 10 years of
inception, our company will see an average at approximately the same as the industry average.

20
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28
 Meet the Team - Section 2, Team 2

My name is Christian Boynton. I am from Marlton, New Jersey. I am a Junior

International Business major with a minor in Business Spanish. In my free time, I
enjoy playing the guitar, and I love to go hiking and spending time outdoors. After
graduation, I hope to join the Peace Corps and then work internationally..

My name is Connor Brown. I’m from Fort Defiance, Virginia. I’m a Junior Finance
major looking to pursue a Series 7 and Series 63 License after graduation. I’m
looking to become a TOPA for JMU and possibly a member of the Financial
Management Association (FMA). In my free time, I enjoy going to puppy farms
and taking road trips.

My name is Allie Garrison. I’m from Fredericksburg, Virginia. I’m a Sophomore

Marketing major with a concentration in Digital Marketing and a minor in Art. I’m
the Public Relations Director for the Advertising Club and a member of Beta
Gamma Sigma Academic Honor Society. I love to bake cookies.

My name is Emily Griffith. I am from Richmond, Virginia. I am a Junior

Marketing major with a concentration in Professional Sales. I am the President of
Student Duke Club and formally was on the Recruitment Committee. After
graduation, I hope to find a job in the sales field. Outside of class, I enjoy traveling,
spending time in nature, and shopping.

My name is Colin Haywood. I am from Richmond, Virginia. I am a Junior

Management major also looking to earn a Business Spanish minor. I am a member
of Club Baseball, Club Dodgeball, and a participant in Relay for Life. I am excited
to pursue Entrepreneurship after graduation. I enjoy spending time with friends
and family, going to the gym, and playing golf.

My name is Megan James. I am from Fairfax, VA. I am a Junior Marketing major

with a minor in Biology. I am a member of Delta Delta Delta sorority and Beta
Gamma Sigma Academic Honor Society. I work as a part-time model in the D.C. /
Baltimore area and am looking to pursue a career in fashion and social media
marketing after graduation.

My name is Morgan Prior. I am from Whitehouse Station, New Jersey. I am a

Junior studying Marketing. I am involved in Phi Sigma Sigma where I hold the
Treasurer position. I value spending time with my family and friends. In my free
time, I enjoy staying active by going to the gym or on hikes. After I graduate, I
hope to move somewhere new and work in sales.

29