Brushy Mountain Retreat

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Weight Loss Seminars Business Plan

Financial Plan

The following is the financial plan for Brushy Mountain Retreat. 

7.1 Break-even Analysis

The monthly break-even point is shown in the table and chart below.

Break-even Analysis
Monthly Revenue Break-even $148,858
Assumptions:
Average Percent Variable Cost 22%
Estimated Monthly Fixed Cost $116,192

7.2 Projected Profit and Loss

The following table and charts are the projected profit and loss for three years.

Pro Forma Profit and Loss
2002 2003 2004
Sales $2,160,000 $2,350,000 $2,480,000
Direct Cost of Sales $474,000 $528,000 $573,000
Other Production Expenses $0 $0 $0
Total Cost of Sales $474,000 $528,000 $573,000
Gross Margin $1,686,000 $1,822,000 $1,907,000
Gross Margin % 78.06% 77.53% 76.90%
Expenses
Payroll $882,000 $920,000 $959,000
Sales and Marketing and Other Expenses $180,000 $200,000 $200,000
Depreciation $48,000 $48,000 $48,000
Leased Equipment $60,000 $60,000 $60,000
Utilities $12,000 $12,000 $12,000
Insurance $0 $0 $0
Rent $80,000 $80,000 $80,000
Payroll Taxes $132,300 $138,000 $143,850
Other $0 $0 $0
Total Operating Expenses $1,394,300 $1,458,000 $1,502,850
Profit Before Interest and Taxes $291,700 $364,000 $404,150
EBITDA $339,700 $412,000 $452,150
Interest Expense $13,645 $11,249 $8,748
Taxes Incurred $83,416 $105,825 $118,621
Net Profit $194,638 $246,926 $276,781
Net Profit/Sales 9.01% 10.51% 11.16%

7.3 Projected Cash Flow

The following table and chart are the projected cash flow for three years.

Pro Forma Cash Flow
2002 2003 2004
Cash Received
Cash from Operations
Cash Sales $2,160,000 $2,350,000 $2,480,000
Subtotal Cash from Operations $2,160,000 $2,350,000 $2,480,000
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 $2,160,000 $2,350,000 $2,480,000
Expenditures 2002 2003 2004
Expenditures from Operations
Cash Spending $882,000 $920,000 $959,000
Bill Payments $1,007,426 $1,129,717 $1,191,193
Subtotal Spent on Operations $1,889,426 $2,049,717 $2,150,193
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 $25,008 $25,008 $25,008
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $60,000 $60,000 $60,000
Dividends $0 $0 $0
Subtotal Cash Spent $1,974,434 $2,134,725 $2,235,201
Net Cash Flow $185,566 $215,275 $244,799
Cash Balance $265,566 $480,842 $725,641

7.4 Projected Balance Sheet

The following table is the projected balance sheet for three years.

Pro Forma Balance Sheet
2002 2003 2004
Assets
Current Assets
Cash $265,566 $480,842 $725,641
Other Current Assets $50,000 $50,000 $50,000
Total Current Assets $315,566 $530,842 $775,641
Long-term Assets
Long-term Assets $260,000 $320,000 $380,000
Accumulated Depreciation $78,000 $126,000 $174,000
Total Long-term Assets $182,000 $194,000 $206,000
Total Assets $497,566 $724,842 $981,641
Liabilities and Capital 2002 2003 2004
Current Liabilities
Accounts Payable $87,936 $93,294 $98,319
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $87,936 $93,294 $98,319
Long-term Liabilities $124,992 $99,984 $74,976
Total Liabilities $212,928 $193,278 $173,295
Paid-in Capital $0 $0 $0
Retained Earnings $90,000 $284,638 $531,564
Earnings $194,638 $246,926 $276,781
Total Capital $284,638 $531,564 $808,345
Total Liabilities and Capital $497,566 $724,842 $981,641
Net Worth $284,638 $531,564 $808,345

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 7032, Sporting and Recreation Camps, are shown for comparison.

Ratio Analysis
2002 2003 2004 Industry Profile
Sales Growth 79.91% 8.80% 5.53% 7.50%
Percent of Total Assets
Other Current Assets 10.05% 6.90% 5.09% 26.90%
Total Current Assets 63.42% 73.24% 79.01% 33.40%
Long-term Assets 36.58% 26.76% 20.99% 66.60%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 17.67% 12.87% 10.02% 16.30%
Long-term Liabilities 25.12% 13.79% 7.64% 38.40%
Total Liabilities 42.79% 26.66% 17.65% 54.70%
Net Worth 57.21% 73.34% 82.35% 45.30%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 78.06% 77.53% 76.90% 0.00%
Selling, General & Administrative Expenses 69.04% 67.02% 65.73% 70.30%
Advertising Expenses 8.33% 8.51% 8.06% 5.10%
Profit Before Interest and Taxes 13.50% 15.49% 16.30% 4.20%
Main Ratios
Current 3.59 5.69 7.89 1.75
Quick 3.59 5.69 7.89 1.24
Total Debt to Total Assets 42.79% 26.66% 17.65% 54.70%
Pre-tax Return on Net Worth 97.69% 66.36% 48.91% 2.70%
Pre-tax Return on Assets 55.88% 48.67% 40.28% 5.90%
Additional Ratios 2002 2003 2004
Net Profit Margin 9.01% 10.51% 11.16% n.a
Return on Equity 68.38% 46.45% 34.24% n.a
Activity Ratios
Accounts Payable Turnover 11.77 12.17 12.17 n.a
Payment Days 29 29 29 n.a
Total Asset Turnover 4.34 3.24 2.53 n.a
Debt Ratios
Debt to Net Worth 0.75 0.36 0.21 n.a
Current Liab. to Liab. 0.41 0.48 0.57 n.a
Liquidity Ratios
Net Working Capital $227,630 $437,548 $677,321 n.a
Interest Coverage 21.38 32.36 46.20 n.a
Additional Ratios
Assets to Sales 0.23 0.31 0.40 n.a
Current Debt/Total Assets 18% 13% 10% n.a
Acid Test 3.59 5.69 7.89 n.a
Sales/Net Worth 7.59 4.42 3.07 n.a
Dividend Payout 0.00 0.00 0.00 n.a