Physical Fitness Gym Business Plan

Physical Fitness Gym Business Plan Ladies Only Fitness

Executive Summary Ladies Only Fitness is a women-only health club that creates a personalized environment for women to pursue their fitness goals. We have the best equipment and the best training program in this arena. We prepare our clients for success! We have the best weight-management program. Positive Lifestyle Systems is a truly responsible, effective, weight-management program. We offer this program with confidence. It is unbeatable. Ladies Only Fitness' focus is the urban professional woman who has a very active life and very little time to spend on fitness. We also focus on young mothers who are looking for a fitness environment that is focused on their unique needs. Ladies Only Fitness is located in the Southtowne Center in southwest Mapleton. The area is upscale and affluent and has a number of health clubs, but none that serve women only. Currently, there are 80,000 residents living in southwest Mapleton. The Southtowne Center is the central shopping facility in the area and is conveniently located, with plenty of parking. Joan Sullivan, co-owner of Ladies Only Fitness, has worked in the area's clubs for the past fifteen years. She has created Ladies Only Fitness in order to fill a need she has seen in fitness services provided to women over the years. From the selection of workout machines to the organization of the child care center, Ladies Only Fitness will create a supportive experience that will bring in new members by word of mouth.

1.1 Mission The mission of Ladies Only Fitness is the following:

• • •

Create a woman-focused workout environment that promotes confidence in our clients. Promote the success of our clients in meeting their fitness goals. Celebrate their successes and help them set new fitness goals.

1.2 Objectives The objectives of Ladies Only Fitness are the following:

• • •

Exceed 60% class capacity by the end of the first year of operation. Acquire 200+ memberships by the end of the first year of operation. Increase membership by 20% by the end of the second year of operation.

Company Summary Ladies Only Fitness is a women only fitness club that offers fitness classes, exercise equipment, a weight reduction program, and a childcare center. The program will operate as a general partnership. Joan Sullivan will manage the daily operation of Ladies Only Fitness. Marge Williamson will have accounting oversight responsibilities.

2.1 Company Ownership Ladies Only Fitness is co-owned by Joan Sullivan and Marge Williamson.

2.2 Start-up Summary The start-up expenses for the Ladies Only Fitness is focused primarily on equipment and exercise surfaces for the classes. Joan Sullivan will invest $30,000. Marge Williamson will invest $70,000. In addition, club will secure a $60,000 long-term loan.

Start-up Funding

Start-up Expenses to Fund

$94,200

Start-up Assets to Fund

$65,800

Total Funding Required

$160,000

Assets

Non-cash Assets from Start-up

Cash Requirements from Start-up

Additional Cash Raised

$0

$65,800

$0

Cash Balance on Starting Date

$65,800

Total Assets

$65,800

Liabilities and Capital

Liabilities

Current Borrowing

Long-term Liabilities

Accounts Payable (Outstanding Bills)

$0

$60,000

$0

Other Current Liabilities (interest-free)

Total Liabilities

$0

$60,000

Capital

Planned Investment

Joan Sullivan

$30,000

Marge Williamson

$70,000

Additional Investment Requirement

$0

Total Planned Investment

$100,000

Loss at Start-up (Start-up Expenses)

($94,200)

Total Capital

Total Capital and Liabilities

Total Funding

Start-up

$5,800

$65,800

$160,000

Requirements

Start-up Expenses

Legal

$500

Stationery etc.

$200

Brochures

$1,000

Insurance

$500

Rent

$2,000

Child Care Setup

$10,000

Leased Equipment

$80,000

Total Start-up Expenses

$94,200

Start-up Assets

Cash Required

$65,800

Other Current Assets

$0

Long-term Assets

$0

Total Assets

$65,800

Total Requirements

$160,000

2.3 Company Locations and Facilities Ladies Only Fitness is located in the Southtowne Center in southwest Mapleton. The club occupies a 5,500 square foot storefront. The facility has one primary equipment room adjacent to the child care center. The club also has three exercise rooms. The facility can accommodate 110 people.

Services Ladies Only Fitness' membership services are the following: Ladies Only Fitness has a professional personal training staff. Our personal trainers provide the knowledge and expertise in designing and implementing a fitness program. Each trainer is AFLCA certified and has standard first aid and CPR. Beyond that each trainer has specific qualifications and training that enables them to provide each client with an individually designed program. Ladies Only Fitness offers a large selection of sophisticated equipment bio-mechanically designed for a woman's body.

• • • • • • • • • •

Treadmills (10); Stepmills; Steppers; Upright and recumbent bikes; Elliptical trainers; Stairmaster; Rower; Bodytrek; Gravitron; Cross aerobic trainers.

Ladies Only Fitness provides a floating foam floor for a variety of aerobic, step, muscle conditioning and yoga classes. The club also has a child care center to serve clients that would otherwise be unable to workout if they cannot find a babysitter, or be able to workout without the stress of watching over children. The membership fee is $150 a month and the personal trainer fee is $25/hr.

Market Analysis Summary Mapleton is a city on the move. The population has grown by 10% each year for the past three years. The current population of Mapleton is 600,000. Most importantly, the growth has been fueled by the increased employment in the city's high-tech companies. This has attracted a type of professional that is the target customer for the Ladies Only Fitness. The women we are targeting are looking for a different type of fitness club experience. At Ladies Only Fitness, they will be the total focus of our staff.

Another target group is young mothers who are looking for a club that will fit their needs and keep their children close. Ladies Only Fitness has designed the facility so that the child care center can be seen by anyone working in the main exercise room. We believe that changes like that will be seen as welcome extras that will bring new members.

4.1 Market Segmentation Ladies Only Fitness will focus on two customer groups:

• •

Young urban professional women; Young mothers with children (ages new born to three years of age).

Market Analysis

Year 1

Potential Customers

Year 2

Year 3

Year 4

Year 5

Growth

CAGR

Young Urban Professional Women

10%

12,000

13,200

14,520

15,972

17,569

10.00%

Young Mothers

10%

5,000

5,500

6,050

6,655

7,321

10.00%

10.00%

17,000

18,700

20,570

22,627

24,890

10.00%

Total

Strategy and Implementation Summary

Ladies Only Fitness will market through the numerous beauty salons, tanning salons and women's boutiques located in southwest Mapleton. The club will market to young mothers through clothing shops catering to young children. Ladies Only Fitness will offer the first membership month free.

5.1 Competitive Edge The competitive advantage of Ladies Only Fitness is the environment that is created in the facility. Women feel more relaxed and comfortable in a program that is focused solely on them. In addition, we have designed the childcare center to be visible from the main workout floor. A young mother can watch her child play in the center while working out.

5.2 Sales Forecast Ladies Only Fitness anticipates that sales will be slow for the first and second month of operation, due to our "first month free" promotion. After that point, sales will increase as new members pay for their membership fees. The following is the sales forecast for three years.

Sales Forecast

Year 1

Year 2

Year 3

Memberships

$124,000

$150,000

$190,000

Personal Trainers

$120,000

$150,000

$190,000

Total Sales

$244,000

$300,000

$380,000

Year 1

Year 2

Year 3

Memberships

$0

$0

$0

Personal Trainers

$0

$0

$0

Subtotal Direct Cost of Sales

$0

$0

$0

Sales

Direct Cost of Sales

Management Summary Joan Sullivan will be the operations manager and lead trainer for Ladies Only Fitness. Joan has been a fixture in the Mapleton fitness community for the past fifteen years. She has been the manager of both the Mapleton Athletic Club (three years) and the Maximum Fitness Club (four years). Her reputation as an effective staff supervisor is excellent. At both the Athletic Club and Maximum, membership increased by 15% each year under Joan's supervision. Marge Williamson is a CPA with the firm of Smith, Jones, and Lawrence. Her primary responsibility will be to oversee accounts receivable and operational costs.

6.1 Personnel Plan The following is the personnel plan for Ladies Only Fitness:

• • •

Operations manager/lead trainer; Personal trainers (2); Childcare staff (2);

•

Receptionist/clerk (1);

During the sixth month of operations, one additional personnel trainer will be hired.

Personnel Plan

Year 1

Year 2

Year 3

Operations Manager/Lead Trainer

$36,000

$36,000

$38,000

Personal Trainers

$90,000

$108,000

$116,000

Childcare Staff

$36,000

$36,000

$39,000

Receptionist/Clerk

$19,200

$19,200

$21,000

Total People

9

9

9

Total Payroll

$181,200

$199,200

$214,000

Financial Plan The following is the financial plan for Ladies Only Fitness.

7.1 Break-even Analysis The monthly break-even point is shown below.

Break-even Analysis

Monthly Revenue Break-even

$20,465

Assumptions:

Average Percent Variable Cost

Estimated Monthly Fixed Cost

7.2 Projected Profit and Loss The following table and charts highlight the projected profit and loss for three years.

0%

$20,465

Pro Forma Profit and Loss

Year 1

Year 2

Year 3

$244,000

$300,000

$380,000

Direct Cost of Sales

$0

$0

$0

Other Production Expenses

$0

$0

$0

Total Cost of Sales

$0

$0

$0

Sales

Gross Margin

$244,000

$300,000

$380,000

Gross Margin %

100.00%

100.00%

100.00%

$181,200

$199,200

$214,000

$6,000

$8,000

$10,000

Depreciation

$0

$0

$0

Leased Equipment

$0

$0

$0

Utilities

$4,800

$4,800

$4,800

Insurance

$2,400

$2,400

$2,400

Rent

$24,000

$24,000

$24,000

Payroll Taxes

$27,180

$29,880

$32,100

$0

$0

$0

$245,580

$268,280

$287,300

Profit Before Interest and Taxes

($1,580)

$31,720

$92,700

EBITDA

($1,580)

$31,720

$92,700

Expenses

Payroll

Sales and Marketing and Other Expenses

Other

Total Operating Expenses

Interest Expense

$5,578

$4,830

$4,050

$0

$8,067

$26,595

Net Profit

($7,158)

$18,823

$62,055

Net Profit/Sales

-2.93%

6.27%

16.33%

Taxes Incurred

7.3 Projected Cash Flow The following table and chart highlights the projected cash flow for three years.

Pro Forma Cash Flow

Year 1

Year 2

Year 3

Cash Sales

$244,000

$300,000

$380,000

Subtotal Cash from Operations

$244,000

$300,000

$380,000

Cash Received

Cash from Operations

Additional Cash Received

Sales Tax, VAT, HST/GST Received

$0

$0

$0

New Current Borrowing

$0

$0

$0

New Other Liabilities (interest-free)

$0

$0

$0

New Long-term Liabilities

$0

$0

$0

Sales of Other Current Assets

$0

$0

$0

Sales of Long-term Assets

$0

$0

$0

New Investment Received

$0

$0

$0

$244,000

$300,000

$380,000

Year 1

Year 2

Year 3

$181,200

$199,200

$214,000

$64,133

$81,063

$102,139

$245,333

$280,263

$316,139

Subtotal Cash Received

Expenditures

Expenditures from Operations

Cash Spending

Bill Payments

Subtotal Spent on Operations

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out

$0

$0

$0

Principal Repayment of Current Borrowing

$0

$0

$0

Other Liabilities Principal Repayment

$0

$0

$0

$7,800

$7,800

$7,800

Purchase Other Current Assets

$0

$0

$0

Purchase Long-term Assets

$0

$0

$0

Dividends

$0

$0

$0

$253,133

$288,063

$323,939

Net Cash Flow

($9,133)

$11,937

$56,061

Cash Balance

$56,667

$68,603

$124,664

Long-term Liabilities Principal Repayment

Subtotal Cash Spent

7.4 Projected Balance Sheet The following table highlights the projected balance sheet for three years.

Pro Forma Balance Sheet

Year 1

Year 2

Year 3

$56,667

$68,603

$124,664

Assets

Current Assets

Cash

Other Current Assets

$0

$0

$0

$56,667

$68,603

$124,664

Long-term Assets

$0

$0

$0

Accumulated Depreciation

$0

$0

$0

Total Long-term Assets

$0

$0

$0

$56,667

$68,603

$124,664

Year 1

Year 2

Year 3

Accounts Payable

$5,824

$6,738

$8,543

Current Borrowing

$0

$0

$0

Other Current Liabilities

$0

$0

$0

$5,824

$6,738

$8,543

Long-term Liabilities

$52,200

$44,400

$36,600

Total Liabilities

$58,024

$51,138

$45,143

Total Current Assets

Long-term Assets

Total Assets

Liabilities and Capital

Current Liabilities

Subtotal Current Liabilities

Paid-in Capital

$100,000

$100,000

$100,000

Retained Earnings

($94,200)

($101,358)

($82,535)

Earnings

($7,158)

$18,823

$62,055

Total Capital

($1,358)

$17,466

$79,521

Total Liabilities and Capital

$56,667

$68,603

$124,664

Net Worth

($1,357)

$17,466

$79,521

7.5 Business Ratios Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7991, Physical Fitness Facilities, are shown for comparison.

Ratio Analysis

Sales Growth

Year 1

Year 2

Year 3

Industry Profile

0.00%

22.95%

26.67%

15.90%

Percent of Total Assets

Other Current Assets

0.00%

0.00%

0.00%

31.10%

100.00%

100.00%

100.00%

39.00%

0.00%

0.00%

0.00%

61.00%

100.00%

100.00%

100.00%

100.00%

Current Liabilities

10.28%

9.82%

6.85%

34.80%

Long-term Liabilities

92.12%

64.72%

29.36%

27.60%

102.40%

74.54%

36.21%

62.40%

-2.40%

25.46%

63.79%

37.60%

Sales

100.00%

100.00%

100.00%

100.00%

Gross Margin

100.00%

100.00%

100.00%

0.00%

Selling, General & Administrative Expenses

102.93%

93.73%

83.67%

73.20%

2.46%

2.67%

2.63%

2.40%

-0.65%

10.57%

24.39%

2.70%

Total Current Assets

Long-term Assets

Total Assets

Total Liabilities

Net Worth

Percent of Sales

Advertising Expenses

Profit Before Interest and Taxes

Main Ratios

Current

9.73

10.18

14.59

1.10

Quick

9.73

10.18

14.59

0.73

Total Debt to Total Assets

102.40%

74.54%

36.21%

62.40%

Pre-tax Return on Net Worth

527.26%

153.96%

111.48%

3.00%

Pre-tax Return on Assets

-12.63%

39.20%

71.11%

7.90%

Additional Ratios

Year 1

Year 2

Year 3

Net Profit Margin

-2.93%

6.27%

16.33%

n.a

Return on Equity

0.00%

107.77%

78.04%

n.a

12.01

12.17

12.17

n.a

27

28

27

n.a

4.31

4.37

3.05

n.a

Debt to Net Worth

0.00

2.93

0.57

n.a

Current Liab. to Liab.

0.10

0.13

0.19

n.a

Activity Ratios

Accounts Payable Turnover

Payment Days

Total Asset Turnover

Debt Ratios

Liquidity Ratios

Net Working Capital

$50,843

$61,866

$116,121

n.a

-0.28

6.57

22.89

n.a

Assets to Sales

0.23

0.23

0.33

n.a

Current Debt/Total Assets

10%

10%

7%

n.a

Acid Test

9.73

10.18

14.59

n.a

Sales/Net Worth

0.00

17.18

4.78

n.a

Dividend Payout

0.00

0.00

0.00

n.a

Interest Coverage

Additional Ratios

Sales Forecast Month Month Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 1 2 Sales Memberships Personal Trainers Total Sales

Month 10

Month Month 12 11

0%

$0 $5,000

$6,000 $10,000 $11,000 $12,000 $12,000 $13,000 $14,000 $14,000 $14,000 $13,000

0%

$0 $4,000

$7,000 $10,000 $10,000 $12,000 $12,000 $12,000 $12,000 $13,000 $14,000 $14,000

Direct Cost of Sales Memberships Personal Trainers Subtotal Direct Cost of Sales

$0 $9,000 $13,000 $20,000 $21,000 $24,000 $24,000 $25,000 $26,000 $27,000 $28,000 $27,000 Month Month Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 1 2 $0 $0 $0 $0 $0 $0 $0 $0 $0

Month 10 $0

Month Month 12 11 $0 $0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Month 10

Month 11

$0

Personnel Plan Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9

Operations Manager/Lead 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 Trainer Personal Trainers 0% $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $9,000 $9,000 $9,000 $9,000 $9,000 Childcare Staff 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000

Month 12 $3,000 $9,000 $3,000

Receptionist/Clerk 0% $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 Total People 6 6 6 6 6 6 9 9 9 9 9 Total Payroll

$13,600 $13,600 $13,600 $13,600 $13,600 $13,600 $16,600 $16,600 $16,600 $16,600 $16,600 $16,600

General Assumptions Month Month Month Month Month Month Month Month Month Month Month 1 2 3 4 5 6 7 8 9 10 11 Plan Month Current Interest Rate Longterm Interest Rate Tax Rate Other

1

2

3

4

5

6

7

8

9

10

11

Month 12 12

10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 0 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Profit and Loss Month Month Month Month Month Month Month Month Month Month 3 4 5 6 7 8 9 10 11 12 $13,00 $20,00 $21,00 $24,00 $24,00 $25,00 $26,00 $27,00 $28,00 $27,00 $0 $9,000 0 0 0 0 0 0 0 0 0 0

Month 1 Month 2 Sales Direct Cost of Sales Other Production Expenses Total Cost of Sales Gross Margin Gross Margin %

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$13,00 $20,00 $21,00 $24,00 $24,00 $25,00 $26,00 $27,00 $28,00 $27,00 0 0 0 0 0 0 0 0 0 0 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 % % % % % % % % % % %

$0 $9,000 0.00%

Expenses Payroll Sales and Marketing and Other Expenses Depreciati on

$1,600 9

$13,600 $13,600

$13,60 $13,60 $13,60 $13,60 $16,60 $16,60 $16,60 $16,60 $16,60 $16,60 0 0 0 0 0 0 0 0 0 0

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Leased $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Equipment Utilities $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 Insurance $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 Rent $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 Payroll 15 $2,040 $2,040 $2,040 $2,040 $2,040 $2,040 $2,490 $2,490 $2,490 $2,490 $2,490 $2,490 Taxes % Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Operating Expenses

$18,740 $18,740

Profit Before Interest and Taxes

($18,74 ($5,740 ($9,740) $1,260 $2,260 $5,260 $1,810 $2,810 $3,810 $4,810 $5,810 $4,810 0) )

EBITDA

($18,74 ($5,740 ($9,740) $1,260 $2,260 $5,260 $1,810 $2,810 $3,810 $4,810 $5,810 $4,810 0) )

Interest Expense Taxes Incurred

$18,74 $18,74 $18,74 $18,74 $22,19 $22,19 $22,19 $22,19 $22,19 $22,19 0 0 0 0 0 0 0 0 0 0

$495

$489

$484

$478

$473

$468

$462

$457

$451

$446

$440

$435

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Net Profit

($19,23 ($10,22 ($6,224 5) 9) )

Net Profit/Sale s

0.00%

$782 $1,787 $4,793 $1,348 $2,353 $3,359 $4,364 $5,370 $4,375

-113.66 -47.88 3.91% 8.51% 19.97% 5.62% 9.41% 12.92% 16.16% 19.18% 16.20% % %

Pro Forma Cash Flow

Month 1

Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9

Month 10

Month 11

Month 12

Cash Receive d

Cash from Operations

Cash Sales

$0

$9,000 $13,000 $20,000 $21,000 $24,000 $24,000 $25,000 $26,000 $27,000 $28,000 $27,000

Subtotal Cash from Operations

$0

$9,000 $13,000 $20,000 $21,000 $24,000 $24,000 $25,000 $26,000 $27,000 $28,000 $27,000

Additional Cash Received

Sales Tax, VAT, HST/GST Received

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Current Borrowing

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Other Liabilities (interest-free)

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Longterm Liabilities

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales of Other Current Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales of Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Investment Received

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Subtotal Cash Received

$0

Expenditures

0.00%

$9,000 $13,000 $20,000 $21,000 $24,000 $24,000 $25,000 $26,000 $27,000 $28,000 $27,000

Month 10

Month 11

Month 12

Month 1

Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9

$13,600

$13,600 $13,600 $13,600 $13,600 $13,600 $16,600 $16,600 $16,600 $16,600 $16,600 $16,600

Expenditures from Operations

Cash

Spending

Bill Payments

Subtotal Spent on Operations

$188

$13,788

$5,634

$5,629 $5,624 $5,618 $5,613 $5,622 $6,052 $6,046 $6,041 $6,036

$6,030

$19,234 $19,229 $19,224 $19,218 $19,213 $22,222 $22,652 $22,646 $22,641 $22,636 $22,630

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Principal Repayment of Current Borrowing

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Other Liabilities Principal Repayment

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Long-term Liabilities Principal Repayment

$650

$650

$650

$650

$650

$650

$650

$650

$650

$650

$650

$650

Purchase Other Current Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Purchase Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Dividends

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Subtotal Cash Spent

$14,438

$19,884 $19,879 $19,874 $19,868 $19,863 $22,872 $23,302 $23,296 $23,291 $23,286 $23,280

Net Cash Flow

Cash Balance

($14,438) ($10,884) ($6,879)

$51,362

$126 $1,132 $4,137 $1,128 $1,698 $2,704 $3,709 $4,714

$3,720

$40,478 $33,599 $33,725 $34,857 $38,994 $40,122 $41,820 $44,524 $48,233 $52,947 $56,667

Pro Forma Balance Sheet

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9 Month 10 Month 11 Month

$65,800

$51,362

$40,478

$33,599

$33,725

$34,857

$38,994

$40,122

$41,820

$44,524

$48,233

$52,947

$56,66

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$

$65,800

$51,362

$40,478

$33,599

$33,725

$34,857

$38,994

$40,122

$41,820

$44,524

$48,233

$52,947

$56,66

Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$

Accumulated Depreciation

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$

Total Longterm Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$

Total Assets

$65,800

$51,362

$40,478

$33,599

$33,725

$34,857

$38,994

$40,122

$41,820

$44,524

$48,233

$52,947

$56,66

Assets

Starting Balances

Current Assets

Cash

Other Current Assets

Total Current Assets

Long-term Assets

Liabilities and Capital

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9 Month 10 Month 11 Month

Current Liabilities

Accounts Payable

$0

$5,447

$5,442

$5,436

$5,431

$5,426

$5,421

$5,850

$5,845

$5,840

$5,835

$5,829

$5,82

Current Borrowing

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$

Other Current Liabilities

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$

Subtotal Current Liabilities

$0

$5,447

$5,442

$5,436

$5,431

$5,426

$5,421

$5,850

$5,845

$5,840

$5,835

$5,829

$5,82

Long-term Liabilities

$60,000

$59,350

$58,700

$58,050

$57,400

$56,750

$56,100

$55,450

$54,800

$54,150

$53,500

$52,850

$52,20

Total Liabilities

$60,000

$64,797

$64,142

$63,486

$62,831

$62,176

$61,521

$61,300

$60,645

$59,990

$59,335

$58,679

$58,02

Paid-in Capital

$100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,00

Retained Earnings

($94,200) ($94,200) ($94,200) ($94,200) ($94,200) ($94,200) ($94,200) ($94,200) ($94,200) ($94,200) ($94,200) ($94,200) ($94,20

Earnings

Total Capital

$0 ($19,235) ($29,464) ($35,688) ($34,906) ($33,119) ($28,326) ($26,978) ($24,625) ($21,266) ($16,902) ($11,533)

($7,15

$5,800 ($13,435) ($23,664) ($29,888) ($29,106) ($27,319) ($22,526) ($21,178) ($18,825) ($15,466) ($11,102) ($5,733)

($1,35

Total Liabilities and $65,800 Capital

Net Worth

$51,362

$40,478

$33,599

$33,725

$34,857

$38,994

$40,122

$41,820

$44,524

$48,233

$52,947

$56,66

$5,800 ($13,435) ($23,664) ($29,887) ($29,106) ($27,319) ($22,526) ($21,178) ($18,825) ($15,466) ($11,102) ($5,732)

($1,35