PART 5 - CAPITAL ASSETS REQUIRED:

The capital assets required by J&B consist of computer equipment and office furniture. Such items are necessary to support the Company's production process as well as its new product development. Below lists J&B's forecasted capital asset needs, their after tax cost, and the supplier for each capital asset.

$7,602 of the computer equipment budget will be spend in January 200W, while the remaining $4,966 will be spend in May 200W.

Garden Isle Computing will be our main computer equipment supplier. This firm has been chosen based on their quality brand names, competitive pricing, and after sale support systems. In addition, we feel this company will greatly compliment J&B and provide additional corporate balance. Please refer to Appendix # 9 for an actual quotation.

$1,412 of the office furniture budget will be spent in January 200W, while the remaining $1,618 will be spent in May 200W.

Our main supplier of the office furniture will be Premium Office Supplies. This firm has been chosen based on price, product specs, service and previous satisfaction. Please refer to Appendix 10 for an actual quotation.

Therefore the Company's total capital asset budget for the first year of operation is estimated at $15,599. Below charts J&B's capital asset budget for year one, two, and three.

Year two and three capital assets are expected to be purchased in May and June of each year. For actual purchasing dates and payments, please refer to the Forecasted Cash Flow Statement.