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Claremont Funding

Executive Summary

Claremont Funding is an outstanding mortgage brokerage firm serving the lending needs of real estate professionals, builders and individual home buyers. We have access to a full range of mortgage sources and are dedicated to finding the right loan–with the best rates, terms and costs–to meet our clients’ unique needs.

This firm is capitalized by two principal investors, Joan Billings and Maureen Shoe. Both are licensed brokers with a combined experience of over 30 years in the industry.

1.1 Objectives

Claremont Funding aims to offer comprehensive mortgage broker services. Claremont Funding will focus on providing personal and specialized services to meet each client’s specific needs. The primary objectives of our firm are:

  • Become profitable serving the real estate investment opportunities becoming available in the rapidly growing old town section of the city.
  • Develop a solid, corporate identity in our specified target market area.
  • Become one of the top brokerage firms in the area by our third year of operation, or before.
  • Realize a positive return on investment within the first 12 months.

1.2 Mission

Claremont Funding offers high-quality mortgage brokerage services to residential and business customers. Our aim is to provide our customers with fair mortgage rates at reasonable prices, while keeping our clients informed and educated throughout the process.  We will become friends and mentors to our customers as well as quality service providers. Claremont is an excellent place to work, a professional environment that is challenging, rewarding, creative, and respectful of ideas and individuals.  Claremont ultimately provides excellent value to its customers and fair reward to its owners and employees.

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Company Summary

Claremont Funding is a new company that provides a high level of expertise.  We will provide superior personal service to buyers.  We take pride in knowing that 70% of our business comes from repeat clients and their referrals.

Our responsibility as mortgage professionals is to determine what a customer’s financial goals are, not just quote a rate. We have access to hundreds of loan programs, allowing us to arrange the most beneficial solution… whatever the buyer’s needs may be.

2.1 Company Ownership

The owners and brokers of Claremont Funding are Joan Billings and Maureen Shoe.

2.2 Start-up Summary

Our start-up costs are outlined in the following table. Start-up costs derive from website design, office equipment, main computer station complete with all mortgage information for broker usage, stationery, legal costs, furnishings, office advertising and services, and expenses associated with opening our office. The start-up costs are to be financed by direct owner investment and credit. Lease office space averages $1.10 – 1.60 per square foot to an approximate of $1,500 per month, plus utilities, for efficient leased office space. Commercial lease will be for a three to five year agreement with the first month and a security deposit equal to the monthly lease rate payable at the time of lease start date.

Start-up
Requirements
Start-up Expenses
Legal $900
Stationery etc. $2,000
Brochures $1,000
Advertising $2,500
Insurance $200
Rent $3,000
Answering Service $200
Utilities Start Up $250
Office Furnishings $4,000
Expensed Equipment $3,000
Business Software $2,000
Office Supplies $1,000
Total Start-up Expenses $20,050
Start-up Assets
Cash Required $39,950
Other Current Assets $20,000
Long-term Assets $0
Total Assets $59,950
Total Requirements $80,000
Start-up Funding
Start-up Expenses to Fund $20,050
Start-up Assets to Fund $59,950
Total Funding Required $80,000
Assets
Non-cash Assets from Start-up $20,000
Cash Requirements from Start-up $39,950
Additional Cash Raised $0
Cash Balance on Starting Date $39,950
Total Assets $59,950
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $30,000
Accounts Payable (Outstanding Bills) $10,000
Other Current Liabilities (interest-free) $0
Total Liabilities $40,000
Capital
Planned Investment
Investor 1 $20,000
Investor 2 $20,000
Additional Investment Requirement $0
Total Planned Investment $40,000
Loss at Start-up (Start-up Expenses) ($20,050)
Total Capital $19,950
Total Capital and Liabilities $59,950
Total Funding $80,000

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Services

Our personal goal is to break through the barriers that impede homeownership for those who wish to realize the American Dream.  We provide potential and current homeowners the opportunity to find the best mortgage loan for their needs.

We match buyers to loan programs. We have an extensive questionnaire for our buyers to list their wants and needs. We then take this questionnaire and put the supplied information to match buyers to the loan packages matching their criteria.

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Market Analysis Summary

Due to the strengthening of the area’s economy and lower interest rates, more home buyers today are looking to purchase homes. These changes in attitudes of home buyers are a tremendous boost to real estate firms. Residential construction is booming in the city’s Old Town section. We are poised to take advantage of these changes, and expect to become a recognized name and profitable entity in the city’s real estate market. We chose to locate our office in the area of most revenue potential and where we have close connection to dominant real estate firms. Our targeted market area, the Old Town area, shows stability and growth. We have a beautiful office, centered in the Old Town area.

The first quarter home values were up 12.5 percent from the same period in 2001, the Office of Federal Housing Enterprise Oversight reported. The gain reflects an increase from the previous quarter, when residential real estate values saw growth of 12.1 percent.

4.1 Market Segmentation

The home buyers that Claremont Funding will be serving can be divided into two groups:

  • First-time homeowners: A bulk of the new construction in the Old Town section of the city is directed toward first-time homeowners.
  • Residential refinancing: Whether it is for purchasing, construction, remodeling, debt consolidation, investment properties or refinancing–we have programs available to service those with good and bad credit.
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Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
First-Time Homeowners 15% 80,000 92,000 105,800 121,670 139,921 15.00%
Residential Refinancing 10% 150,000 165,000 181,500 199,650 219,615 10.00%
Other Home Buyers 7% 60,000 64,200 68,694 73,503 78,648 7.00%
Total 10.87% 290,000 321,200 355,994 394,823 438,184 10.87%

4.2 Target Market Segment Strategy

We cannot survive waiting for the customer to come to us. Instead, we must get better at focusing on the specific market segments whose needs match our offerings. Focusing on targeted segments is the key to our future. Therefore, we need to focus our marketing message and our services offered. We need to develop our message, communicate it, and make good on it.

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Strategy and Implementation Summary

Claremont Funding will focus on the mortgage broker needs in the Old Town section of the city and the surrounding areas. Our target customer will be first-time home buyers and existing homeowners who are interested in refinancing.

5.1 Sales Forecast

The following table and chart give a run-down on forecasted sales. We expect sales to build between January through March with the most growth during the months of March through August. We expect sales to drop off from September till the end of the year.

Mortgage broker business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Sales
First-Time Homeowners $104,672 $150,000 $180,000
Other Homebuyers $52,336 $75,000 $90,000
Residential Refinancing $107,839 $140,000 $175,000
Total Sales $264,847 $365,000 $445,000
Direct Cost of Sales Year 1 Year 2 Year 3
First-Time Homeowners $0 $0 $0
Other Homebuyers $0 $0 $0
Residential Refinancing $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0

5.2 Milestones

The accompanying table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.

Milestones
Milestone Start Date End Date Budget Manager Department
Lease Office Space 12/15/2001 12/28/2001 $3,000 Maureen Marketing
Purchase Office Equipment/Computer, etc. 12/1/2001 12/15/2001 $3,000 Maureen Marketing
Office Utilities 12/20/2001 12/21/2001 $250 Joan Web
Answering Service 12/13/2001 12/23/2001 $200 Joan Web
Stationary 12/1/2001 12/10/2001 $2,000 Joan Admin
Business Software 12/15/2001 12/28/2001 $2,000 Joan Admin
Advertising 12/1/2001 12/30/2001 $2,500 Maureen Marketing
Totals $12,950

5.3 Competitive Edge

Claremont Funding’s competitive edge is that both Joan and Maureen are the most visible lecturers to new home owners in the city. Joan has a weekly column in the city’s daily newspaper and Maureen lectures weekly to the city’s numerous neighborhood councils and civic groups.  Together, they represent the most recognizable faces in the city on the subject of home ownership and refinancing a home.

Between them, they have a base of 6,000 satisfied customers who continue to make referrals to the brokers.

The city has been growing by 15% annually for the past 10 years.  With the population now at 1.3 million, the new construction in the Old Town section of the city is valued at two billion dollars in home sales next year alone. Claremont Funding is positioned well to grab a large share of the mortgage services demanded by the city’s growth in Old Town.

 

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Management Summary

Claremont Funding is a two member mortgage brokerage firm.  Both brokers are equal partners in the firm.

6.1 Personnel Plan

The following table shows the personnel plan for Claremont Funding.

Personnel Plan
Year 1 Year 2 Year 3
Joan Billings $60,000 $80,000 $90,000
Maureen Shoe $60,000 $80,000 $90,000
Admin Assistants $46,000 $60,000 $80,000
Total People 3 4 4
Total Payroll $166,000 $220,000 $260,000

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Financial Plan

  • We want to finance growth mainly through cash flow.
  • The most important factor for Claremont Funding is the closing sales days. These dates will be determined ultimately by the Seller and the Buyer and a move out/move in schedule will be complied with.

7.1 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions. The monthly assumptions are included in the appendix. From the beginning, we recognize that collection days are critical, but not a factor we can influence easily. At least we are planning on the problem, and dealing with it. Interest rates, tax rates, and personnel burden are based on conservative assumptions. Some of the more important underlying assumptions are:

  • We assume a strong economy, without major recession.
  • We assume, of course, that there are no unforeseen changes in the economy that would change our estimations.
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 30.00% 30.00% 30.00%
Other 0 0 0

7.2 Break-even Analysis

The following table and chart will summarize our break-even analysis.

Mortgage broker business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $19,975
Assumptions:
Average Percent Variable Cost 0%
Estimated Monthly Fixed Cost $19,975

7.3 Projected Profit and Loss

Our projected profit and loss is shown on the following table.

Mortgage broker business plan, financial plan chart image

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $264,847 $365,000 $445,000
Direct Cost of Sales $0 $0 $0
Other Production Expenses $0 $0 $0
Total Cost of Sales $0 $0 $0
Gross Margin $264,847 $365,000 $445,000
Gross Margin % 100.00% 100.00% 100.00%
Expenses
Payroll $166,000 $220,000 $260,000
Sales and Marketing and Other Expenses $7,800 $13,000 $19,000
Depreciation $0 $0 $0
Leased Equipment $200 $0 $0
Utilities $2,400 $2,400 $2,400
Insurance $2,400 $2,400 $2,400
Rent $36,000 $36,000 $36,000
Payroll Taxes $24,900 $33,000 $39,000
Other $0 $0 $0
Total Operating Expenses $239,700 $306,800 $358,800
Profit Before Interest and Taxes $25,147 $58,200 $86,200
EBITDA $25,147 $58,200 $86,200
Interest Expense $2,950 $2,550 $2,250
Taxes Incurred $6,659 $16,695 $25,185
Net Profit $15,538 $38,955 $58,765
Net Profit/Sales 5.87% 10.67% 13.21%

7.4 Projected Cash Flow

Cash flow projections are critical to our success. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendix.

Mortgage broker business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $66,212 $91,250 $111,250
Cash from Receivables $187,004 $269,352 $330,237
Subtotal Cash from Operations $253,216 $360,602 $441,487
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $4,500 $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 $12,000 $0 $0
Subtotal Cash Received $269,716 $360,602 $441,487
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $166,000 $220,000 $260,000
Bill Payments $90,879 $99,759 $124,576
Subtotal Spent on Operations $256,879 $319,759 $384,576
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $4,500 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $3,000 $3,000 $3,000
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $264,379 $322,759 $387,576
Net Cash Flow $5,337 $37,842 $53,911
Cash Balance $45,287 $83,129 $137,040

7.5 Projected Balance Sheet

The balance sheet in the following table shows managed but sufficient growth of net worth, and a sufficiently healthy financial position. The monthly estimates are included in the appendix.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $45,287 $83,129 $137,040
Accounts Receivable $11,631 $16,030 $19,543
Other Current Assets $20,000 $20,000 $20,000
Total Current Assets $76,918 $119,159 $176,583
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $76,918 $119,159 $176,583
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $2,430 $8,716 $10,375
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $2,430 $8,716 $10,375
Long-term Liabilities $27,000 $24,000 $21,000
Total Liabilities $29,430 $32,716 $31,375
Paid-in Capital $52,000 $52,000 $52,000
Retained Earnings ($20,050) ($4,512) $34,443
Earnings $15,538 $38,955 $58,765
Total Capital $47,488 $86,443 $145,208
Total Liabilities and Capital $76,918 $119,159 $176,583
Net Worth $47,488 $86,443 $145,208

7.6 Business Ratios

The following table provides important ratios for the industry, as determined by the Standard Industry Classification (SIC) Index, 7389, Business Services.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 37.82% 21.92% 8.50%
Percent of Total Assets
Accounts Receivable 15.12% 13.45% 11.07% 20.90%
Other Current Assets 26.00% 16.78% 11.33% 55.70%
Total Current Assets 100.00% 100.00% 100.00% 81.60%
Long-term Assets 0.00% 0.00% 0.00% 18.40%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 3.16% 7.31% 5.88% 48.20%
Long-term Liabilities 35.10% 20.14% 11.89% 15.50%
Total Liabilities 38.26% 27.46% 17.77% 63.70%
Net Worth 61.74% 72.54% 82.23% 36.30%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 100.00% 100.00% 100.00% 0.00%
Selling, General & Administrative Expenses 94.18% 89.41% 86.91% 82.60%
Advertising Expenses 2.27% 2.74% 3.37% 0.60%
Profit Before Interest and Taxes 9.49% 15.95% 19.37% 1.50%
Main Ratios
Current 31.65 13.67 17.02 1.57
Quick 31.65 13.67 17.02 1.13
Total Debt to Total Assets 38.26% 27.46% 17.77% 63.70%
Pre-tax Return on Net Worth 46.74% 64.38% 57.81% 1.90%
Pre-tax Return on Assets 28.86% 46.70% 47.54% 5.20%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 5.87% 10.67% 13.21% n.a
Return on Equity 32.72% 45.06% 40.47% n.a
Activity Ratios
Accounts Receivable Turnover 17.08 17.08 17.08 n.a
Collection Days 59 18 19 n.a
Accounts Payable Turnover 34.28 12.17 12.17 n.a
Payment Days 31 19 28 n.a
Total Asset Turnover 3.44 3.06 2.52 n.a
Debt Ratios
Debt to Net Worth 0.62 0.38 0.22 n.a
Current Liab. to Liab. 0.08 0.27 0.33 n.a
Liquidity Ratios
Net Working Capital $74,488 $110,443 $166,208 n.a
Interest Coverage 8.52 22.82 38.31 n.a
Additional Ratios
Assets to Sales 0.29 0.33 0.40 n.a
Current Debt/Total Assets 3% 7% 6% n.a
Acid Test 26.86 11.83 15.14 n.a
Sales/Net Worth 5.58 4.22 3.06 n.a
Dividend Payout 0.00 0.00 0.00 n.a

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Appendix

Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
First-Time Homeowners 0% $2,100 $2,200 $5,020 $8,000 $10,500 $15,000 $18,000 $22,000 $10,022 $5,210 $3,820 $2,800
Other Homebuyers 0% $1,050 $1,100 $2,510 $4,000 $5,250 $7,500 $9,000 $11,000 $5,011 $2,605 $1,910 $1,400
Residential Refinancing 0% $3,000 $3,000 $6,640 $10,000 $11,000 $14,000 $17,000 $20,000 $13,000 $4,322 $3,222 $2,655
Total Sales $6,150 $6,300 $14,170 $22,000 $26,750 $36,500 $44,000 $53,000 $28,033 $12,137 $8,952 $6,855
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
First-Time Homeowners $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Homebuyers $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Residential Refinancing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Joan Billings 0% $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Maureen Shoe 0% $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Admin Assistants 0% $3,000 $3,000 $3,000 $3,000 $5,000 $5,000 $5,000 $5,000 $5,000 $3,000 $3,000 $3,000
Total People 3 3 3 3 4 4 4 4 4 3 3 3
Total Payroll $13,000 $13,000 $13,000 $13,000 $15,000 $15,000 $15,000 $15,000 $15,000 $13,000 $13,000 $13,000

General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $6,150 $6,300 $14,170 $22,000 $26,750 $36,500 $44,000 $53,000 $28,033 $12,137 $8,952 $6,855
Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Gross Margin $6,150 $6,300 $14,170 $22,000 $26,750 $36,500 $44,000 $53,000 $28,033 $12,137 $8,952 $6,855
Gross Margin % 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Expenses
Payroll $13,000 $13,000 $13,000 $13,000 $15,000 $15,000 $15,000 $15,000 $15,000 $13,000 $13,000 $13,000
Sales and Marketing and Other Expenses $650 $650 $650 $650 $650 $650 $650 $650 $650 $650 $650 $650
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Leased Equipment $200 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Insurance $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Rent $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Payroll Taxes 15% $1,950 $1,950 $1,950 $1,950 $2,250 $2,250 $2,250 $2,250 $2,250 $1,950 $1,950 $1,950
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $19,200 $19,000 $19,000 $19,000 $21,300 $21,300 $21,300 $21,300 $21,300 $19,000 $19,000 $19,000
Profit Before Interest and Taxes ($13,050) ($12,700) ($4,830) $3,000 $5,450 $15,200 $22,700 $31,700 $6,733 ($6,863) ($10,048) ($12,145)
EBITDA ($13,050) ($12,700) ($4,830) $3,000 $5,450 $15,200 $22,700 $31,700 $6,733 ($6,863) ($10,048) ($12,145)
Interest Expense $248 $246 $244 $279 $277 $275 $235 $233 $231 $229 $227 $225
Taxes Incurred ($3,989) ($3,884) ($1,522) $816 $1,552 $4,478 $6,739 $9,440 $1,951 ($2,128) ($3,083) ($3,711)
Net Profit ($9,309) ($9,062) ($3,552) $1,905 $3,621 $10,448 $15,725 $22,027 $4,551 ($4,965) ($7,193) ($8,659)
Net Profit/Sales -151.36% -143.84% -25.06% 8.66% 13.54% 28.62% 35.74% 41.56% 16.24% -40.90% -80.35% -126.32%

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 Received
Cash from Operations
Cash Sales $1,538 $1,575 $3,543 $5,500 $6,688 $9,125 $11,000 $13,250 $7,008 $3,034 $2,238 $1,714
Cash from Receivables $0 $154 $4,616 $4,922 $10,823 $16,619 $20,306 $27,563 $33,225 $39,126 $20,627 $9,023
Subtotal Cash from Operations $1,538 $1,729 $8,159 $10,422 $17,511 $25,744 $31,306 $40,813 $40,233 $42,160 $22,865 $10,737
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $4,500 $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 Long-term 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 $12,000 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $1,538 $1,729 $20,159 $14,922 $17,511 $25,744 $31,306 $40,813 $40,233 $42,160 $22,865 $10,737
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending $13,000 $13,000 $13,000 $13,000 $15,000 $15,000 $15,000 $15,000 $15,000 $13,000 $13,000 $13,000
Bill Payments $10,082 $2,455 $2,441 $4,801 $7,130 $8,226 $11,127 $13,365 $15,724 $8,336 $4,070 $3,124
Subtotal Spent on Operations $23,082 $15,455 $15,441 $17,801 $22,130 $23,226 $26,127 $28,365 $30,724 $21,336 $17,070 $16,124
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 $4,500 $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 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
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 $23,332 $15,705 $15,691 $18,051 $22,380 $23,476 $30,877 $28,615 $30,974 $21,586 $17,320 $16,374
Net Cash Flow ($21,794) ($13,977) $4,468 ($3,129) ($4,869) $2,267 $430 $12,198 $9,260 $20,574 $5,546 ($5,637)
Cash Balance $18,156 $4,179 $8,647 $5,518 $649 $2,916 $3,346 $15,544 $24,803 $45,378 $50,923 $45,287
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 12
Assets Starting Balances
Current Assets
Cash $39,950 $18,156 $4,179 $8,647 $5,518 $649 $2,916 $3,346 $15,544 $24,803 $45,378 $50,923 $45,287
Accounts Receivable $0 $4,613 $9,184 $15,195 $26,773 $36,013 $46,769 $59,463 $71,650 $59,450 $29,427 $15,513 $11,631
Other Current Assets $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
Total Current Assets $59,950 $42,768 $33,363 $43,842 $52,291 $56,661 $69,685 $82,808 $107,194 $104,253 $94,804 $86,437 $76,918
Long-term Assets
Long-term Assets $0 $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 $0
Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Assets $59,950 $42,768 $33,363 $43,842 $52,291 $56,661 $69,685 $82,808 $107,194 $104,253 $94,804 $86,437 $76,918
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 12
Current Liabilities
Accounts Payable $10,000 $2,377 $2,283 $4,564 $6,859 $7,858 $10,684 $12,832 $15,441 $8,199 $3,965 $3,040 $2,430
Current Borrowing $0 $0 $0 $0 $4,500 $4,500 $4,500 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $10,000 $2,377 $2,283 $4,564 $11,359 $12,358 $15,184 $12,832 $15,441 $8,199 $3,965 $3,040 $2,430
Long-term Liabilities $30,000 $29,750 $29,500 $29,250 $29,000 $28,750 $28,500 $28,250 $28,000 $27,750 $27,500 $27,250 $27,000
Total Liabilities $40,000 $32,127 $31,783 $33,814 $40,359 $41,108 $43,684 $41,082 $43,441 $35,949 $31,465 $30,290 $29,430
Paid-in Capital $40,000 $40,000 $40,000 $52,000 $52,000 $52,000 $52,000 $52,000 $52,000 $52,000 $52,000 $52,000 $52,000
Retained Earnings ($20,050) ($20,050) ($20,050) ($20,050) ($20,050) ($20,050) ($20,050) ($20,050) ($20,050) ($20,050) ($20,050) ($20,050) ($20,050)
Earnings $0 ($9,309) ($18,371) ($21,922) ($20,018) ($16,397) ($5,949) $9,776 $31,803 $36,354 $31,389 $24,197 $15,538
Total Capital $19,950 $10,641 $1,579 $10,028 $11,932 $15,553 $26,001 $41,726 $63,753 $68,304 $63,339 $56,147 $47,488
Total Liabilities and Capital $59,950 $42,768 $33,363 $43,842 $52,291 $56,661 $69,685 $82,808 $107,194 $104,253 $94,804 $86,437 $76,918
Net Worth $19,950 $10,641 $1,579 $10,028 $11,932 $15,553 $26,001 $41,726 $63,753 $68,304 $63,339 $56,147 $47,488

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