The data obtained for the start-up comes from research done in the Seattle area with other small mechanic shops who have started their own business. Inflation has been taken into account between the estimates of these fellow business owners (and when they started) and the current prices for expensed items.

Much of the equipment to go into the facilities such as tools, air compressors, etc., are currently owned by the two partners.

Table:  Start-up

Start-up
Requirements
Start-up Expenses
Legal $500
Stationery etc. $200
Advertising $600
Phone $200
Insurance $800
Rent $4,000
Utilities $200
Computer $2,000
Other $600
Total Start-up Expenses $9,100
Start-up Assets Needed
Cash Balance on Starting Date $2,900
Start-up Inventory $0
Other Current Assets $0
Total Current Assets $2,900
Long-term Assets $20,000
Total Assets $22,900
Total Requirements $32,000
Funding
Investment
John Ford $6,000
Michael Ronald $6,000
Other $0
Total Investment $12,000
Current Liabilities
Accounts Payable $0
Current Borrowing $0
Other Current Liabilities $0
Current Liabilities $0
Long-term Liabilities $20,000
Total Liabilities $20,000
Loss at Start-up ($9,100)
Total Capital $2,900
Total Capital and Liabilities $22,900
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