Financial Summary

B. THE FINANCIAL SUMMARY SECTION OF THIS FILE CONTAINS ALL THE

INFORMATION NEEDED TO COMPLETE THE NECESSARY FINANCIAL
STATEMENTS FOR YOUR BUSINESS PLAN. IT IS THE ONLY WORKSHEET IN
THIS FILE THAT YOU WILL BE ABLE TO CHANGE . THE FINANCIAL
STATEMENTS, FORECASTS AND BUDGETS THAT FOLLOW ARE ALL
LINKED TO THE DATA THAT YOU WILL INPUT ON THIS SUMMARY PAGE.

PLEASE RESPOND TO THE FOLLOWING QUESTIONS OR STATEMENTS

BY ONLY FILLING IN THE YELLOW SHADED AREAS

ENTER FULL PERCENTS IN DECIMAL FORM, ie .05 for 5%

ENTER ALL DATES IN THE NUMERICAL FORM OF MONTH/DATE/YEAR

I. GENERAL INFORMATION

Business Name: Bear Feet Inc.

Business Address: 15342 River Pathway
City, State Zip: Woodlands, MI 48910

Year Business Plan Begins: 2010

Month Business Plan Begins: September (Please type full month, ie January)

II. SALES FORECAST INFORMATION

In the first year of business, I predict the following to be an adequate description

of the services I will provide:

1st Year
Fee per Quantity of
Services Rendered Service Services

Arthroscopic Procedures $700 4

Biopsy 150 10
Bunion Surgery 500 25
Dermatologic Conditions 85 150
Diabetic Foot Care 45 65
Endoscopic 400 18
Heel Spur Surgery 500 15
History and Physicals 105 500
Incision and Drainage 150 75
Injections 30 300
Lesser Digital Surgery 90 200
Major Rearfoot Surgery 1,000 10
Nail Avulsions 150 200
Orthotics 300 300
Palliative Care 45 185
New Patient Setup 105 800
Ulcer Debridement 105 300
X-rays 75 400

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II. SALES FORECAST INFORMATION, continued...

1st Year, continued...

Other Services Rendered (fill in the name, fee and quantity)
Plantarfasciotomy 400 14
Tenotomy 250 12
Tendon Transfer 750 4
Implants 1250 2
Arthroresis 700 10
Neuroma surgery 610 45

In the 2nd year of my business operations, I expect the following percentage increases/
decreases in the fees and quantities from my 1st year estimates of the services I provide:

2nd Year
% Inc./Dec % Inc./Dec
Services Rendered in Fees in Quantity New Quantity

Arthroscopic Procedures 5% 15% 4.60

Biopsy 10% 20% 12.00
Bunion Surgery 5% 15% 28.75
Dermatologic Conditions 5% 13% 169.50
Diabetic Foot Care 7% 12% 72.80
Endoscopic 5% 50% 27.00
Heel Spur Surgery 5% 20% 18.00
History and Physicals 6% 15% 575.00
Incision and Drainage 5% 20% 90.00
Injections 8% 15% 345.00
Lesser Digital Surgery 5% 15% 230.00
Major Rearfoot Surgery 3% 80% 18.00
Nail Avulsions 15% 15% 230.00
Orthotics 20% 13% 339.00
Palliative Care 5% 15% 212.75
New Patient Setup 25% 9% 872.00
Ulcer Debridement 10% 15% 345.00
X-rays 5% 15% 460.00
Plantarfasciotomy 3% 36% 19.04
Tenotomy 20% 25% 15.00
Tendon Transfer 5% 50% 6.00
Implants 9% 80% 3.60
Arthroresis 5% 20% 12.00
Neuroma surgery 12% 18% 53.10
0 0.00
0 0.00
0 0.00
0 0.00

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II. SALES FORECAST INFORMATION, continued...

In the 3rd year of my business operations, I expect the following percentage increases/
decreases in the fees and quantities from my 2nd year estimates of the services I provide:

3rd Year
% Inc./Dec % Inc./Dec
Services Rendered in Fees in Quantity New Quantity

Arthroscopic Procedures 5% 75% 8.05

Biopsy 2% 25% 15.00
Bunion Surgery 8% 32% 37.95
Dermatologic Conditions 4% 20% 203.40
Diabetic Foot Care 3% 25% 91.00
Endoscopic 6% 48% 39.96
Heel Spur Surgery 7% 56% 28.08
History and Physicals 2% 20% 690.00
Incision and Drainage 4% 9% 98.10
Injections 4% 9% 376.05
Lesser Digital Surgery 4% 6% 243.80
Major Rearfoot Surgery 6% 28% 23.04
Nail Avulsions 4% 20% 276.00
Orthotics 5% 18% 400.02
Palliative Care 4% 33% 282.96
New Patient Setup 3% 14% 994.08
Ulcer Debridement 8% 24% 427.80
X-rays 6% 15% 529.00
Plantarfasciotomy 4% 38% 26.28
Tenotomy 5% 73% 25.95
Tendon Transfer 7% 67% 10.02
Implants 7% 25% 4.50
Arthroresis 2% 25% 15.00
Neuroma surgery 5% 13% 60.00
0 0.00
0 0.00
0 0.00
0 0.00

Receivables

Of the above sales forecasted, I expect the following to be a summary of my collections

on a monthly basis during the first three years of operations:

Percent of Monthly Sales Paid for in Cash: 7.00%

Percent of Monthly Sales Paid for within 30 Days of the Sale: 18.00%
Percent of Monthly Sales Paid for within 60 Days of the Sale: 32.00%
Percent of Monthly Sales Paid for within 90 Days of the Sale: 38.00%

(Should be less then or equal to 100%) => 95.00%

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II. SALES FORECAST INFORMATION, continued...

Discounts/Allowances

List Top Medical Insurance Carriers utilized by your patients. Specify the percentage of
procedures per year that will be covered by these carriers and the average discount that you
offer these carriers on each procedure.
Note: Discounts to self-pay patients can also be listed and treated similarly in this section.

% of Annual Discount Offered

Carrier Procedures on Procedures
Medicare 22% 3%
Medicaid 20% 3%
Blue Cross Blue Shield 16% 0%
Physician's Health Care 14% 0%
HIP Health Plans 15% 0%
Self pay 10% 20%

(Should be less than or = to 100%) => 97%

III. ADDITIONAL SOURCES OF REVENUE

In addition to revenue earned from services rendered, my practice will also earn monthly income
from the sources listed below. (Examples - Rental Income, Capitation, Honorariums, etc.)

In a corporation, all personal finances of the major stockholders are kept separate from the
finances of the corporation itself.
Therefore, please remember that if your practice is incorporated, all additional revenue sources
must directly relate to the finances/operations of your medical practice.
You may not include personal sources of income if your practice is incorporated.

1st Year
Annual
Source of Revenue Income
Nursing home service 6,000

I expect the above revenues to increase/decrease by the following percentage

for each of the following years:

2nd Year 3rd Year

Source of Revenue % Change % Change
Nursing home service 4% 4%

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IV. PERSONNEL COST INFORMATION

Listed below is a summary of the employees of my business and their annual salaries
during the first year of operation:

Depending on whether you are forming a corporation or sole proprietorship/partnership

you may or may not want to specify your/your partner's salary here.

1st Year Job Title Annual Salary Total Salaries

Your Salary Attending Physician $50,000
Partner Salary Attending Physician 50,000
Employee #1 Office Manager 28,000
Employee #2
Employee #3
Employee #4
Employee #5 $128,000

2nd Year Job Title Annual Salary

Your Salary Attending Physician $65,000
Partner Salary Attending Physician 65,000
Employee #1 Office Manager 30,000
Employee #2 Technician 28,000
Employee #3
Employee #4
Employee #5
Employee #6
Employee #7
Employee #8 $188,000

3rd Year Job Title Annual Salary

Your Salary Attending Physician $80,000
Partner Salary Attending Physician 80,000
Employee #1 Office Manager 32,000
Employee #2 Technician 30,000
Employee #3
Employee #4
Employee #5
Employee #6
Employee #7
Employee #8 $222,000

IV. PERSONNEL COST INFORMATION, continued

I expect to incur the following dollar expenses related to payroll taxes per year:

1st Year 2nd Year 3rd Year

Taxes Tax Rate Taxes Tax Rate Taxes Tax Rate
Rate
0.01 Federal Unempl. Taxes 1,024 0.008 1,504 0.008 1,776 0.008
State Unempl. Taxes 3,456 0.027 5,076 0.027 5,994 0.027
FICA 9,792 0.0765 14,382 0.0765 16,983 0.0765

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I expect to incur the following dollar expenses related to payroll benefits per year:

1st Year 2nd Year 3rd Year

Benefits Benefits Benefits

Medical Insurance $ 10,800 $ 14,400 $ 24,000

Dental Insurance 540 720 1,200
Life Insurance 360 540 960
Long - Term Disability 360 435 770
Retirement Plan 720 1,440 2,880

V. PROFESSIONAL SERVICES SUMMARY

I expect to employ the services of the following outside professionals at the stated
fees during my first year of business:
Monthly
Service Individual/Firm Fee
Accounting Old McDonald's Accounting $400
Legal Smith & Jones Legal 200
Insurance PICA 1,600
Billing A&B Billing 500
Other

I expect the fees for these services to increase/decrease by the following percentage
for each of the following years:

2nd Year 3rd Year

Service % Change % Change
Accounting 15.00% 30.00%
Legal 25.00% 25.00%
Insurance 10.00% 20.00%
Billing 10.00% 35.00%
Other

VI. RENT EXPENSE INFORMATION

I expect to incur the following expenses for rent during the first year of business:

Monthly
Type of Rental Expense
Building $1,500
Equipment 450
Other 500

I expect my combined rent expense to increase/decrease by the following percentage

for each of the following years:

2nd Year 3rd Year

Rental % Change % Change
Combined Rentals 10.00% 25.00%

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VII. UTILITIES EXPENSE INFORMATION

Listed below is a prediction of what my utilities expenses will be for my first year of operation:

Monthly
Type of Utility Expense
Telephone $200
Electricity 250
Gas 200
Water 100
General Waste Removal 200
Bio-Hazardous Waste Removal 200
Maintenance/Cleaning 400
Lab Fees 800
Other 125

I expect my utility expenses to increase/decrease by the following percentage

for each of the following years:

2nd Year 3rd Year

Utility % Change % Change
Telephone 25.00% 25.00%
Electricity 10.00% 25.00%
Gas 10.00% 10.00%
Water 5.00% 8.00%
General Waste Removal 7.00% 15.00%
Bio-Hazardous Waste Removal 10.00% 20.00%
Maintenance/Cleaning 5.00% 15.00%
Lab Fees 10.00% 6.00%
Other 50.00% 50.00%

VIII. OFFICE SUPPLIES EXPENSE INFORMATION

Listed below is a prediction of what my monthly expenses will be for office supplies
during the first year of operation.

Monthly
Type of Office Supply Expense
Clinical Supplies $ 1,200
Billing Forms 200
Postage 125
Stationary 175
Software/Hardware 200
Service Contracts 400
Computer Supplies 250
Uniforms 350
Miscellaneous 300

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I expect my office supply expenses to increase/decrease by the following percentage

for each of the following years:

2nd Year 3rd Year

Office Supply % Change % Change
Clinical Supplies 10.00% 20.00%
Billing Forms 7.00% 15.00%
Postage 5.00% 7.00%
Stationary 4.00% 8.00%
Software/Hardware 20.00% 50.00%
Service Contracts 10.00% 10.00%
Computer Supplies 20.00% 50.00%
Uniforms 30.00% 15.00%
Miscellaneous 10.00% 20.00%

IX. ADVERTISING EXPENSE INFORMATION

Listed below is a prediction of what my monthly expenses will be for advertising and
promotions during the first year of operation.

Monthly
Type of Advertising Expense
Yellow Pages $100
Newspaper Ads 150
Brochures 200
Radio Ads 600
Signs 100
Promotional Items 125
Customer Service 250
Other 50

IX. ADVERTISING EXPENSE INFORMATION, continued

I expect my advertising expenses to increase/decrease by the following percentage

for each of the following years:

2nd Year 3rd Year

Advertising % Change % Change
Yellow Pages 3.00% 3.00%
Newspaper Ads 10.00% 7.00%
Brochures 5.00% 3.00%
Radio Ads 10.00% 5.00%
Signs 3.00% 3.00%
Promotional Items 10.00% 20.00%
Customer Service 10.00% 20.00%
Other 5.00% 10.00%

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X. CONTINUING EDUCATION EXPENSE INFORMATION

I expect to incur the following expenses during my first year of operations to promote
further education.

Monthly
Type of Expense Expense
Continuing Education $250
Professional Journals 100
Subscriptions 125
Employee Education 100
Travel/Meals 50
Other 75

I expect my education expenses to increase/decrease by the following percentage

for each of the following years:

2nd Year 3rd Year

Expense % Change % Change
Continuing Education 20.00% 50.00%
Professional Journals 10.00% 15.00%
Subscriptions 5.00% 10.00%
Employee Education 20.00% 40.00%
Travel/Meals 5.00% 15.00%
Other 5.00% 15.00%

XI. LOAN REQUIREMENT INFORMATION

In order to finance my practice I will need to acquire a loan(s) from a lending institution.
It is assumed that the loan payments will be made on a monthly basis and the first
payment will be made at some point during the first year of business operations.
Listed below are the contractual stipulations of my loan agreement:

Loan #1 - Mortgage
This loan should represent only the amount of money needed to purchase your building.
If you are renting your facilities, you do not need to fill in this data.

Amount of Loan $ 60,000

Annual Interest Rate 8.0%
Term in Years 30
Month of First Payment October (Please type full name of month, ex. January)
Month/Date/Year of First Payment 10/10/2010 (ex.01/01/98)

Loan #2 - Notes Payable

This loan should represent any additional money needed to start your practice. It can be
used for equipment, remodeling and working capital.

Amount of Loan $ 46,000

Annual Interest Rate 7.0%
Term in Years 15
Month of First Payment October (Please type full name of month, ex. January)
Month/Date/Year of First Payment 10/1/2010 (ex.01/01/98)

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Loan #3 - Student Loans

If your practice is a sole proprietorship/partnership rather than being incorporated, then your
business and personal finances are not separated.
If this is the case, your practice's financial statements should also reflect your
personal debts, such as student loans.
The loan as described below should represent a conglomerate of any student loans you
may have, average interest rates charged on those loans and the average term of these loans.
Note - If your practice is incorporated, your student loans should not be reflected here.

Amount of Loan
Annual Interest Rate
Term in Years
Month of First Payment (Please type full name of month, ex. January)
Month/Date/Year of First Payment (ex.01/01/98)

XII. TAXES

I expect to pay the following percentage towards combined federal, state and local
income taxes each year:
1st Year 2nd Year 3rd Year
Percentages Percentages Percentages
Federal Taxes 25% 30% 35%
State Taxes 7% 8% 9%
Local Taxes 3% 4% 5%

XIII. CAPITAL BUDGET INFORMATION

The following is a summary of the capital requirements needed to start my business:

Estimated
Type of Life of the
Asset Cost Asset
Building

Medical Equipment
Exam Table and Chairs 12,000 5
Exam Lights 900 3
Autoclave 3,600 5
Casting Table 750 3
Cast Cutter 800 3
X-ray Machine 7,000 10
X-ray Processor 4,000 10
Radiographic View Boxes 520 3
Podiatric Instruments 2,500 5
Other Medical Equipment (fill in the cost and expected life)
Jacuzzi 2,500 3

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XIII. CAPITAL BUDGET INFORMATION, continued

Office Equipment
Office Chairs 1,500 3
Desks 4,500 5
Computer/Software 2,500 3
Printer 1,200 3
Copy Machine 1,800 5
Reception Room Furniture 2,800 7
Supply Cabinets 1,200 5
File Cabinets 1,330 7
Telephone System 4,500 10
Other Office Equipment (fill in the cost and expected life)

* Note - If you are leasing any of the above office space or equipment, do not
include these amounts in your capital budget. They should fall into the
category of rented buildings or equipment.

Facility Remodeling
Reception Area
Office Area
Exam Rooms
Bathroom
Outdoors
Other

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In addition to the above capital requirements, I will also need additional short-term (working)
capital to finance my first few months of operations. Listed below are these
requirements:

Working Capital Cost

General Start Up Costs 5,100
Operations - Month 1 2,000
Operations - Month 2 8,000
Operations - Month 3 35,000

The above listings combine to give me a Total Capital Budget of $ 106,000

XIII. CAPITAL BUDGET INFORMATION, continued

I plan to finance this budget in the following ways:

Sources Amount
Personal Financing
Bank Financing 106,000 <= Should equal => $ 106,000
Other Financing

Additional Funds Needed $ - <= Should equal => $0.00

XIV. OWNER WITHDRAWAL ON NET WORTH AND INVESTMENT INCOME

On a monthly basis, I expect to withdraw following amounts from my net worth:

1st Year Monthly Withdrawal:

2nd Year Monthly Withdrawal:
3rd Year Monthly Withdrawal:

Any additional cash the business may have will be invested on a short term basis and
earn an approximated annual return of:

1st Year Return: 2.00%

2nd Year Return: 3.00%
3rd Year Return: 4.00%

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