Financials Revenue Estimates Revenue Assumptions for Month 1 Service # of classes # of clients Revenue Group Classes (except ZUMBA) 60 minutes 16 7 $2,240 90 minutes 12 $2,520 ZUMBA 20 $700 Packages 5 classes 1 2 $178 7 classes $245 10 classes $340 Space Rental Open Floor 4 5 $100 Private Training Accessories $175 TOTAL $6,498 Revenue Assumptions for Month 1 Monthly increase in revenue of 1% and a growth rate in yearly expenses of 5%

Income Statement Operating expenses: Building Lease Year 1 Year 2 Year 3 Revenues $147,999 $238,996 $269,307 Expenses 110,813 102,991 108,427 Net Profit Before Taxes $37,186 $136,005 $160,880 Operating expenses: Building Lease Equipment & Supplies Major expenses: promotional fees & contracted labor

Balance sheet Year 1 Year 2 Year 3 Total Assets $52,953 $170,665 $315,458 Total Liabilities & Net Worth Owner’s Equity of $5,000 & Long Term Debt of $9,026 with working capital of $4,500 Decrease in liabilities due to the repayment of Long Term Debt

Cash flows Positive cash flow each month Year 1 Year 2 Year 3 Total Cash Received $159,187 $238,996 $269,307 Total Cash Paid $120,217 $121,241 $124,471 Change In Cash $38,970 $117,756 $144,836 Positive cash flow each month Data indicates sufficient inflows to survive the first year and beyond