Jungle Zone Paintball

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Paintball Facility Business Plan

Financial Plan

The following is the Financial Plan for Jungle Zone Paintball.

7.1 Break-even Analysis

With the average monthly fixed costs and projected profit margin, Jungle Zone Paintball will need the following monthly sales revenue to break even.

Break-even Analysis
Monthly Units Break-even 4,233
Monthly Revenue Break-even $74,759
Assumptions:
Average Per-Unit Revenue $17.66
Average Per-Unit Variable Cost $1.68
Estimated Monthly Fixed Cost $67,644

7.2 Projected Profit and Loss

The company's projected profit and loss is outlined in the following table.

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $946,775 $1,042,208 $1,145,112
Direct Cost of Sales $90,105 $95,117 $99,872
Other Production Expenses $0 $0 $0
Total Cost of Sales $90,105 $95,117 $99,872
Gross Margin $856,670 $947,091 $1,045,240
Gross Margin % 90.48% 90.87% 91.28%
Expenses
Payroll $293,500 $332,250 $352,563
Sales and Marketing and Other Expenses $366,000 $410,000 $450,000
Depreciation $6,000 $6,000 $6,000
Leased Equipment $0 $0 $0
Utilities $18,200 $19,500 $19,800
Insurance $12,000 $12,000 $12,000
Rent $72,000 $72,000 $72,000
Payroll Taxes $44,025 $49,838 $52,884
Other $0 $0 $0
Total Operating Expenses $811,725 $901,588 $965,247
Profit Before Interest and Taxes $44,945 $45,504 $79,993
EBITDA $50,945 $51,504 $85,993
Interest Expense $13,984 $12,188 $10,313
Taxes Incurred $9,288 $9,995 $20,904
Net Profit $21,672 $23,321 $48,776
Net Profit/Sales 2.29% 2.24% 4.26%

7.3 Projected Cash Flow

The company's estimated cash flow analysis is outlined in the following table.

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $946,775 $1,042,208 $1,145,112
Subtotal Cash from Operations $946,775 $1,042,208 $1,145,112
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 $946,775 $1,042,208 $1,145,112
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $293,500 $332,250 $352,563
Bill Payments $582,905 $666,889 $733,506
Subtotal Spent on Operations $876,405 $999,139 $1,086,068
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 $18,750 $18,750 $18,750
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $895,155 $1,017,889 $1,104,818
Net Cash Flow $51,620 $24,319 $40,294
Cash Balance $220,420 $244,739 $285,033

7.4 Projected Balance Sheet

The company's projected balance sheet is outlined in the following table.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $220,420 $244,739 $285,033
Inventory $8,085 $8,535 $8,961
Other Current Assets $15,000 $15,000 $15,000
Total Current Assets $243,505 $268,273 $308,994
Long-term Assets
Long-term Assets $128,000 $128,000 $128,000
Accumulated Depreciation $6,000 $12,000 $18,000
Total Long-term Assets $122,000 $116,000 $110,000
Total Assets $365,505 $384,273 $418,994
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $41,782 $55,980 $60,674
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $41,782 $55,980 $60,674
Long-term Liabilities $131,250 $112,500 $93,750
Total Liabilities $173,032 $168,480 $154,424
Paid-in Capital $250,000 $250,000 $250,000
Retained Earnings ($79,200) ($57,528) ($34,206)
Earnings $21,672 $23,321 $48,776
Total Capital $192,472 $215,794 $264,570
Total Liabilities and Capital $365,505 $384,273 $418,994
Net Worth $192,472 $215,794 $264,570

7.5 Business Ratios

The company's projected business ratios are provided in the table below. The final column, Industry Profile, shows significant ratios for the Amusement and Recreation industry, as determined by the Standard Industry Classification (SIC) Index code 7999.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 10.08% 9.87% 15.20%
Percent of Total Assets
Inventory 2.21% 2.22% 2.14% 3.50%
Other Current Assets 4.10% 3.90% 3.58% 34.40%
Total Current Assets 66.62% 69.81% 73.75% 42.90%
Long-term Assets 33.38% 30.19% 26.25% 57.10%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 11.43% 14.57% 14.48% 36.40%
Long-term Liabilities 35.91% 29.28% 22.38% 23.30%
Total Liabilities 47.34% 43.84% 36.86% 59.70%
Net Worth 52.66% 56.16% 63.14% 40.30%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 90.48% 90.87% 91.28% 0.00%
Selling, General & Administrative Expenses 88.19% 88.64% 87.02% 76.60%
Advertising Expenses 6.97% 5.76% 6.11% 2.60%
Profit Before Interest and Taxes 4.75% 4.37% 6.99% 2.00%
Main Ratios
Current 5.83 4.79 5.09 1.17
Quick 5.63 4.64 4.94 0.75
Total Debt to Total Assets 47.34% 43.84% 36.86% 59.70%
Pre-tax Return on Net Worth 16.09% 15.44% 26.34% 2.40%
Pre-tax Return on Assets 8.47% 8.67% 16.63% 6.00%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 2.29% 2.24% 4.26% n.a
Return on Equity 11.26% 10.81% 18.44% n.a
Activity Ratios
Inventory Turnover 8.57 11.45 11.42 n.a
Accounts Payable Turnover 14.95 12.17 12.17 n.a
Payment Days 27 26 29 n.a
Total Asset Turnover 2.59 2.71 2.73 n.a
Debt Ratios
Debt to Net Worth 0.90 0.78 0.58 n.a
Current Liab. to Liab. 0.24 0.33 0.39 n.a
Liquidity Ratios
Net Working Capital $201,722 $212,294 $248,320 n.a
Interest Coverage 3.21 3.73 7.76 n.a
Additional Ratios
Assets to Sales 0.39 0.37 0.37 n.a
Current Debt/Total Assets 11% 15% 14% n.a
Acid Test 5.63 4.64 4.94 n.a
Sales/Net Worth 4.92 4.83 4.33 n.a
Dividend Payout 0.00 0.00 0.00 n.a