Gamehenge Tapers Co-op

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Nonprofit Recording Co-op Business Plan

Financial Plan

The following sections will outline the important financial assumptions, key financial indicators, Break-even Analysis, profit and loss, cash flow, and balance sheet.

7.1 Important Assumptions

The following table highlights some of the important financial assumptions for Gamehenge Tapers Co-op.

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 2.50% 0.00% 2.50%
Other 0 0 0

7.2 Break-even Analysis

The Break-even Analysis shows what we need in monthly revenue to break even.

Break-even Analysis
Monthly Revenue Break-even $1,741
Assumptions:
Average Percent Variable Cost 82%
Estimated Monthly Fixed Cost $319

7.3 Projected Surplus or Deficit

THe following table will indicate projected surplus or deficit.

Surplus and Deficit
Year 1 Year 2 Year 3
Funding $41,094 $41,545 $42,154
Direct Cost $33,565 $37,391 $37,939
Other $0 $0 $0
Total Direct Cost $33,565 $37,391 $37,939
Gross Surplus $7,529 $4,155 $4,215
Gross Surplus % 18.32% 10.00% 10.00%
Expenses
Payroll $0 $0 $0
Sales and Marketing and Other Expenses $600 $600 $600
Depreciation $228 $228 $228
Leased Equipment $0 $0 $0
Utilities $0 $0 $0
Insurance $600 $600 $600
Rent $2,400 $2,400 $2,400
Payroll Taxes $0 $0 $0
Other $0 $0 $0
Total Operating Expenses $3,828 $3,828 $3,828
Surplus Before Interest and Taxes $3,701 $327 $387
EBITDA $3,929 $555 $615
Interest Expense $0 $0 $0
Taxes Incurred ($48) $0 $10
Net Surplus $3,749 $327 $378
Net Surplus/Funding 9.12% 0.79% 0.90%

7.4 Projected Cash Flow

The following chart and table will indicate projected cash flow.

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Funding $41,094 $41,545 $42,154
Subtotal Cash from Operations $41,094 $41,545 $42,154
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
Subtotal Cash Received $41,094 $41,545 $42,154
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $0 $0 $0
Bill Payments $36,615 $42,634 $41,602
Subtotal Spent on Operations $36,615 $42,634 $41,602
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
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $36,615 $42,634 $41,602
Net Cash Flow $4,479 ($1,089) $552
Cash Balance $4,729 $3,641 $4,193

7.5 Projected Balance Sheet

The following table will indicate the projected balance sheet.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $4,729 $3,641 $4,193
Inventory $4,083 $4,548 $4,615
Other Current Assets $0 $0 $0
Total Current Assets $8,812 $8,189 $8,808
Long-term Assets
Long-term Assets $1,150 $1,150 $1,150
Accumulated Depreciation $228 $456 $684
Total Long-term Assets $922 $694 $466
Total Assets $9,734 $8,883 $9,274
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $4,585 $3,407 $3,420
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $4,585 $3,407 $3,420
Long-term Liabilities $0 $0 $0
Total Liabilities $4,585 $3,407 $3,420
Paid-in Capital $2,000 $2,000 $2,000
Accumulated Surplus/Deficit ($600) $3,149 $3,476
Surplus/Deficit $3,749 $327 $378
Total Capital $5,149 $5,476 $5,853
Total Liabilities and Capital $9,734 $8,883 $9,274
Net Worth $5,149 $5,476 $5,853