YouthSports

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Youth Sports Nonprofit Business Plan

Financial Plan

The following is the Financial Plan for YouthSports for three years.

7.1 Break-even Analysis

The following table and chart show the Break-even Analysis for YouthSports.

Break-even Analysis
Monthly Revenue Break-even $140,548
Assumptions:
Average Percent Variable Cost 1%
Estimated Monthly Fixed Cost $138,492

7.2 Projected Surplus or Deficit

The following is the Surplus or Deficit of the program's operation for three years.

Surplus and Deficit
Year 1 Year 2 Year 3
Funding $1,640,000 $1,880,000 $2,100,000
Direct Cost $24,000 $27,000 $30,000
Other Production Expenses $0 $0 $0
Total Direct Cost $24,000 $27,000 $30,000
Gross Surplus $1,616,000 $1,853,000 $2,070,000
Gross Surplus % 98.54% 98.56% 98.57%
Expenses
Payroll $330,000 $361,000 $395,000
Sales and Marketing and Other Expenses $1,196,000 $1,290,000 $1,445,000
Depreciation $0 $0 $0
Leased Equipment $0 $0 $0
Utilities $2,400 $2,400 $2,400
Insurance $60,000 $60,000 $60,000
Rent $24,000 $24,000 $24,000
Payroll Taxes $49,500 $54,150 $59,250
Other $0 $0 $0
Total Operating Expenses $1,661,900 $1,791,550 $1,985,650
Surplus Before Interest and Taxes ($45,900) $61,450 $84,350
EBITDA ($45,900) $61,450 $84,350
Interest Expense $0 $0 $0
Taxes Incurred $0 $0 $0
Net Surplus ($45,900) $61,450 $84,350
Net Surplus/Funding -2.80% 3.27% 4.02%

7.3 Projected Cash Flow

The following is the Projected Cash Flow of the program's operation for three years.

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Funding $1,640,000 $1,880,000 $2,100,000
Subtotal Cash from Operations $1,640,000 $1,880,000 $2,100,000
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 $1,640,000 $1,880,000 $2,100,000
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $330,000 $361,000 $395,000
Bill Payments $1,243,453 $1,450,199 $1,607,245
Subtotal Spent on Operations $1,573,453 $1,811,199 $2,002,245
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 $1,573,453 $1,811,199 $2,002,245
Net Cash Flow $66,548 $68,801 $97,755
Cash Balance $334,547 $403,349 $501,104

7.4 Projected Balance Sheet

The following is the Projected Balance Sheet of the program's operation for three years.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $334,547 $403,349 $501,104
Other Current Assets $50,000 $50,000 $50,000
Total Current Assets $384,547 $453,349 $551,104
Long-term Assets
Long-term Assets $200,000 $200,000 $200,000
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $200,000 $200,000 $200,000
Total Assets $584,547 $653,349 $751,104
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $112,448 $119,799 $133,204
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $112,448 $119,799 $133,204
Long-term Liabilities $0 $0 $0
Total Liabilities $112,448 $119,799 $133,204
Paid-in Capital $860,000 $860,000 $860,000
Accumulated Surplus/Deficit ($342,000) ($387,900) ($326,450)
Surplus/Deficit ($45,900) $61,450 $84,350
Total Capital $472,100 $533,550 $617,900
Total Liabilities and Capital $584,548 $653,349 $751,104
Net Worth $472,100 $533,550 $617,900

7.5 Standard Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7999, Amusement and Recreation, are shown for comparison.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Funding Growth 0.00% 14.63% 11.70% 4.07%
Percent of Total Assets
Other Current Assets 8.55% 7.65% 6.66% 33.94%
Total Current Assets 65.79% 69.39% 73.37% 42.54%
Long-term Assets 34.21% 30.61% 26.63% 57.46%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 19.24% 18.34% 17.73% 24.50%
Long-term Liabilities 0.00% 0.00% 0.00% 23.36%
Total Liabilities 19.24% 18.34% 17.73% 47.86%
Net Worth 80.76% 81.66% 82.27% 52.14%
Percent of Funding
Funding 100.00% 100.00% 100.00% 100.00%
Gross Surplus 98.54% 98.56% 98.57% 100.00%
Selling, General & Administrative Expenses 101.34% 95.30% 94.55% 68.43%
Advertising Expenses 2.20% 2.13% 2.14% 3.66%
Surplus Before Interest and Taxes -2.80% 3.27% 4.02% 2.96%
Main Ratios
Current 3.42 3.78 4.14 1.13
Quick 3.42 3.78 4.14 0.70
Total Debt to Total Assets 19.24% 18.34% 17.73% 56.09%
Pre-tax Return on Net Worth -9.72% 11.52% 13.65% 4.33%
Pre-tax Return on Assets -7.85% 9.41% 11.23% 9.87%
Additional Ratios Year 1 Year 2 Year 3
Net Surplus Margin -2.80% 3.27% 4.02% n.a
Return on Equity -9.72% 11.52% 13.65% n.a
Activity Ratios
Accounts Payable Turnover 12.06 12.17 12.17 n.a
Payment Days 27 29 28 n.a
Total Asset Turnover 2.81 2.88 2.80 n.a
Debt Ratios
Debt to Net Worth 0.24 0.22 0.22 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $272,100 $333,550 $417,900 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Funding 0.36 0.35 0.36 n.a
Current Debt/Total Assets 19% 18% 18% n.a
Acid Test 3.42 3.78 4.14 n.a
Funding/Net Worth 3.47 3.52 3.40 n.a
Dividend Payout 0.00 0.00 0.00 n.a