ABC Truck Driving School Inc.

Notes $($Assumptions$)$ to the Financial Statement Projections

$1.$ Purpose and limitation of the financial projections

The purpose of this pro forma financial statements is to provide management of the company with the expected future operating results and financial position of the company over the projected period. The pro forma financial statements may not be appropriate for any other purpose. The pro$-$forma financial statements have been prepared using assumptions effective as of July $25,2023,$ that reflect the company's planned course of action for the period covered, based on management's judgment as to the most probable set of economic conditions together with the hypothesis which is consistent with the purpose of the pro$-$forma financial statements. The financial results have been projected for the next three years. The actual results achieved during the financial projection period will vary from the information presented, and the variations may be material.

$2.$ Description of business

ABC Truck Driving School Inc. $($the "company"$)$ is a corporation formed under the laws of the province of Ontario on February$19,2020.$

$3.$ Accounting standards

These pro forma financial statements are prepared on accrual basis.

$4.$ Equipment

Assets are purchased at the beginning of the year and amortization is provided using the following rates based on their estimated useful life. The annual amortization rates and methods are as follows:

Truck and Trailers

Computers Equipment

$30\%$ declining balance

$20\%$ declining balance

Trick and tralier

Computer equipment

Cost

$80,000$ $

$20,000$

Accumulated Depreciation

$(46,680)$ $

$(8,480)$

Year $3$

Net Book

Value

$33,320$ $

$11,520$

Year $2$

Net Beok

Value

$47,600$ $

$14,400$

Year $1$

Net Book

Value

$68,000$

$18,000$

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