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Recycled Riding Dreams

Executive Summary

Recycled Riding Dreams will offer quality used motorcycles and motorcycle parts to a growing market of motorcycling hobbyists.  For the beginner, Recycled Riding Dreams offers excellent value in a first bike that will not bust the customer’s budget.  For the experienced biker, quality used parts will cut the cost of repairs and modifications by 50% to 75%.

Over the past ten years, biking has developed an entirely new customer base among baby boomer men, ages 40 to 65.  Last year, motorcycle sales for this age group was twice that of young men, ages 18 to 25. In Montclair, motorcycle sales exceeded $6 million in 2000 and sales are predicted to grow by 15% this year.

Montclair is a city of 650,000 residents with an average income of $28,000.  The city has seven motorcycle organizations and sponsors an annual cycling event as part of the city’s spring celebration.

Brian Jefferson, owner of Recycled Riding Dreams is one of most respected and best known motorcyclist in Montclair.  Brian is the president of the largest motorcycle organization in the city with over 800 members.  Last year, Brian lead the motorcycle parade during the city’s spring celebration.

Brian’s connection with the motorcycling community and the growing demand for quality used motorcycles and motorcycle parts will make Recycled Riding Dreams one of the most popular shops in the city.

Motorcycle shop business plan, executive summary chart image

1.1 Objectives

The objectives of Recycled Riding Dreams are:

  • Capture the majority of the used motorcycle business in the Montclair.
  • Offer our customers a superior service, at a low price.

1.2 Mission

The mission of Recycled Riding Dreams is to become the primary resource for used motorcycle parts in Montclair.

1.3 Keys to Success

The keys to success for Recycled Riding Dreams are:

  • Customer referrals.
  • Exceeding the customer’s expectation for quality, timeliness and price.
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Company Summary

Recycled Riding Dreams will offer quality used motorcycles and motorcycle parts to a growing market of motorcycling hobbyists.  The shop will purchase used and damaged bikes as well as used motorcycle parts.

2.1 Company Ownership

Recycled Riding Dreams is owned by Brian Jefferson.

2.2 Start-up Summary

Brian Jefferson will invest $55,000 in Recycled Riding Dreams.  Brian will also secure a $20,000 loan.  The initial inventory for Recycled Riding Dreams will be $45,000. The focus of this inventory will be on engine and electrical parts. The source of these parts are motorcycle hobbyists who sell the parts in order to purchase upgrade parts for their own motorcycles.

The following table and chart show projected initial start-up costs for Recycled Riding Dreams.

Motorcycle shop business plan, company summary chart image

Start-up
Requirements
Start-up Expenses
Legal $1,000
Stationery etc. $200
Insurance $500
Rent $1,300
Display Equipment $3,000
Expensed Equipment $5,000
Total Start-up Expenses $11,000
Start-up Assets
Cash Required $4,000
Start-up Inventory $45,000
Other Current Assets $0
Long-term Assets $15,000
Total Assets $64,000
Total Requirements $75,000
Start-up Funding
Start-up Expenses to Fund $11,000
Start-up Assets to Fund $64,000
Total Funding Required $75,000
Assets
Non-cash Assets from Start-up $60,000
Cash Requirements from Start-up $4,000
Additional Cash Raised $0
Cash Balance on Starting Date $4,000
Total Assets $64,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $20,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $20,000
Capital
Planned Investment
Brian Jefferson $55,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $55,000
Loss at Start-up (Start-up Expenses) ($11,000)
Total Capital $44,000
Total Capital and Liabilities $64,000
Total Funding $75,000

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Products

Recycled Riding Dreams offers the following products:

  • Used Motorcycles: These cycles have been inspected and occasionally reconditioned in order to offer the customer the best value.
  • Used Parts: These quality parts include engine parts, bodywork, gas tanks, electrical parts, frame, and chassis wheels and brakes.
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Market Analysis Summary

Over the past ten years, biking has developed an entirely new customer base among baby boomer men, ages 40 to 65.  Last year, motorcycle sales for this age group was twice that of young men, ages 18 to 25. These two groups represent 80% of motorcycle sales. In Montclair, motorcycle sales exceeded $6 million in 2000 and sales are predicted to grow by 10% this year. The city has ten motorcycle organizations and sponsors an annual cycling event as part of the city’s spring celebration.

The demographics suggest that there is a large market for used motorcycles and motorcycle parts, especially among experienced bikers.  This is particularly important because the experienced customer will seek out a shop where the owner has a reputation for quality and service in the motorcycle community.

4.1 Market Segmentation

Recycled Riding Dreams will focus on two customer groups:

  • Male baby boomers, ages 40 – 65.
  • Young men, ages 18 – 25.
Motorcycle shop business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Male Baby Boomers 6% 85,000 90,100 95,506 101,236 107,310 6.00%
Young Men 5% 70,000 73,500 77,175 81,034 85,086 5.00%
Total 5.55% 155,000 163,600 172,681 182,270 192,396 5.55%

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Strategy and Implementation Summary

Excellent word of mouth among motorcycle hobbyists is the foundation of Recycled Riding Dreams. The motorcycle community in Montclair is close and used by its members to locate resources and services. Each satisfied customer of Recycled Riding Dreams will bring in more business.

5.1 Competitive Edge

Brian Jefferson, owner of Recycled Riding Dreams is one of most respected and best known motorcyclist in Montclair.  Brian is the president of the largest motorcycle organization in the city with over 800 members.  He has been a motorcycle hobbyist for 15 years and has built a reputation for quality customizing of motorcycles. For the past five years, Brian has served as a resource in locating used motorcycles and motorcycle parts for hobbyists.

Recycled Riding Dreams’ competitive edge is Brian’s visibility in the motorcycling community.

5.2 Sales Strategy

Recycled Riding Dreams will open with a Customization Show and Competition.  During the first month of operation, Recycled Riding Dreams will offer a 15% discount on all purchases over $50.  Brian will also offer a standard 10% discount to members of the city’s seven motorcycle organizations.

5.2.1 Sales Forecast

The table and charts below show Recycled Riding Dreams projected sales forecast for three years.

Motorcycle shop business plan, strategy and implementation summary chart image

Motorcycle shop business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Sales
Used Motorcycles $137,000 $142,000 $152,000
Used Motorcycle Parts $98,000 $110,000 $119,000
Total Sales $235,000 $252,000 $271,000
Direct Cost of Sales Year 1 Year 2 Year 3
Used Motorcycles $62,500 $63,000 $69,000
Used Motorcycle Parts $45,000 $54,000 $58,000
Subtotal Direct Cost of Sales $107,500 $117,000 $127,000

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Management Summary

Brian Jefferson will manage the daily operations of the shop.

6.1 Personnel Plan

Besides Brian Jefferson, Recycled Riding Dreams will have one additional employee.

Personnel Plan
Year 1 Year 2 Year 3
Brian Jefferson $36,000 $39,000 $42,000
Staff Person $33,600 $35,000 $37,000
Total People 2 2 2
Total Payroll $69,600 $74,000 $79,000

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Financial Plan

The following is the financial plan for Recycled Riding Dreams.

7.1 Break-even Analysis

The monthly break-even point is approximately $16,000.

Motorcycle shop business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $16,638
Assumptions:
Average Percent Variable Cost 46%
Estimated Monthly Fixed Cost $9,027

7.2 Projected Profit and Loss

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

Motorcycle shop business plan, financial plan chart image

Motorcycle shop business plan, financial plan chart image

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $235,000 $252,000 $271,000
Direct Cost of Sales $107,500 $117,000 $127,000
Other Production Expenses $0 $0 $0
Total Cost of Sales $107,500 $117,000 $127,000
Gross Margin $127,500 $135,000 $144,000
Gross Margin % 54.26% 53.57% 53.14%
Expenses
Payroll $69,600 $74,000 $79,000
Sales and Marketing and Other Expenses $6,000 $6,000 $6,000
Depreciation $4,284 $4,284 $4,284
Leased Equipment $0 $0 $0
Utilities $2,400 $2,400 $2,400
Insurance $0 $0 $0
Rent $15,600 $15,600 $15,600
Payroll Taxes $10,440 $11,100 $11,850
Other $0 $0 $0
Total Operating Expenses $108,324 $113,384 $119,134
Profit Before Interest and Taxes $19,176 $21,616 $24,866
EBITDA $23,460 $25,900 $29,150
Interest Expense $2,000 $2,000 $2,000
Taxes Incurred $5,153 $5,885 $6,860
Net Profit $12,023 $13,731 $16,006
Net Profit/Sales 5.12% 5.45% 5.91%

7.3 Projected Cash Flow

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

Motorcycle shop business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $94,000 $100,800 $108,400
Cash from Receivables $116,820 $149,451 $160,645
Subtotal Cash from Operations $210,820 $250,251 $269,045
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 $210,820 $250,251 $269,045
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $69,600 $74,000 $79,000
Bill Payments $108,864 $153,470 $171,723
Subtotal Spent on Operations $178,464 $227,470 $250,723
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 $178,464 $227,470 $250,723
Net Cash Flow $32,356 $22,780 $18,322
Cash Balance $36,356 $59,137 $77,459

7.4 Projected Balance Sheet

The table shows the projected balance sheet for three years.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $36,356 $59,137 $77,459
Accounts Receivable $24,180 $25,929 $27,884
Inventory $10,550 $11,482 $12,464
Other Current Assets $0 $0 $0
Total Current Assets $71,086 $96,548 $117,806
Long-term Assets
Long-term Assets $15,000 $15,000 $15,000
Accumulated Depreciation $4,284 $8,568 $12,852
Total Long-term Assets $10,716 $6,432 $2,148
Total Assets $81,802 $102,980 $119,954
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $5,779 $13,226 $14,194
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $5,779 $13,226 $14,194
Long-term Liabilities $20,000 $20,000 $20,000
Total Liabilities $25,779 $33,226 $34,194
Paid-in Capital $55,000 $55,000 $55,000
Retained Earnings ($11,000) $1,023 $14,754
Earnings $12,023 $13,731 $16,006
Total Capital $56,023 $69,754 $85,761
Total Liabilities and Capital $81,802 $102,980 $119,954
Net Worth $56,023 $69,754 $85,761

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 5015, Motor Vehicle Parts Used, are shown for comparison.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 7.23% 7.54% 12.20%
Percent of Total Assets
Accounts Receivable 29.56% 25.18% 23.25% 28.00%
Inventory 12.90% 11.15% 10.39% 38.90%
Other Current Assets 0.00% 0.00% 0.00% 16.40%
Total Current Assets 86.90% 93.75% 98.21% 83.30%
Long-term Assets 13.10% 6.25% 1.79% 16.70%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 7.06% 12.84% 11.83% 38.90%
Long-term Liabilities 24.45% 19.42% 16.67% 12.30%
Total Liabilities 31.51% 32.26% 28.51% 51.20%
Net Worth 68.49% 67.74% 71.49% 48.80%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 54.26% 53.57% 53.14% 23.10%
Selling, General & Administrative Expenses 49.14% 48.12% 47.23% 14.00%
Advertising Expenses 2.55% 2.38% 2.21% 0.70%
Profit Before Interest and Taxes 8.16% 8.58% 9.18% 2.00%
Main Ratios
Current 12.30 7.30 8.30 2.16
Quick 10.47 6.43 7.42 0.96
Total Debt to Total Assets 31.51% 32.26% 28.51% 51.20%
Pre-tax Return on Net Worth 30.66% 28.12% 26.66% 5.30%
Pre-tax Return on Assets 21.00% 19.05% 19.06% 10.90%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 5.12% 5.45% 5.91% n.a
Return on Equity 21.46% 19.69% 18.66% n.a
Activity Ratios
Accounts Receivable Turnover 5.83 5.83 5.83 n.a
Collection Days 57 60 60 n.a
Inventory Turnover 6.76 10.62 10.61 n.a
Accounts Payable Turnover 19.84 12.17 12.17 n.a
Payment Days 27 22 29 n.a
Total Asset Turnover 2.87 2.45 2.26 n.a
Debt Ratios
Debt to Net Worth 0.46 0.48 0.40 n.a
Current Liab. to Liab. 0.22 0.40 0.42 n.a
Liquidity Ratios
Net Working Capital $65,307 $83,322 $103,613 n.a
Interest Coverage 9.59 10.81 12.43 n.a
Additional Ratios
Assets to Sales 0.35 0.41 0.44 n.a
Current Debt/Total Assets 7% 13% 12% n.a
Acid Test 6.29 4.47 5.46 n.a
Sales/Net Worth 4.19 3.61 3.16 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
Used Motorcycles 0% $9,000 $11,000 $12,000 $12,000 $12,000 $12,000 $12,000 $11,000 $12,000 $11,000 $12,000 $11,000
Used Motorcycle Parts 0% $4,000 $5,000 $7,000 $8,000 $9,000 $10,000 $8,000 $9,000 $10,000 $10,000 $9,000 $9,000
Total Sales $13,000 $16,000 $19,000 $20,000 $21,000 $22,000 $20,000 $20,000 $22,000 $21,000 $21,000 $20,000
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
Used Motorcycles $5,000 $5,000 $6,000 $6,000 $6,000 $6,000 $6,000 $5,000 $6,000 $5,000 $6,000 $500
Used Motorcycle Parts $2,000 $2,500 $3,500 $4,000 $4,500 $5,000 $4,000 $4,500 $5,000 $5,000 $4,500 $500
Subtotal Direct Cost of Sales $7,000 $7,500 $9,500 $10,000 $10,500 $11,000 $10,000 $9,500 $11,000 $10,000 $10,500 $1,000
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
Brian Jefferson 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Staff Person 0% $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800
Total People 2 2 2 2 2 2 2 2 2 2 2 2
Total Payroll $5,800 $5,800 $5,800 $5,800 $5,800 $5,800 $5,800 $5,800 $5,800 $5,800 $5,800 $5,800

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 $13,000 $16,000 $19,000 $20,000 $21,000 $22,000 $20,000 $20,000 $22,000 $21,000 $21,000 $20,000
Direct Cost of Sales $7,000 $7,500 $9,500 $10,000 $10,500 $11,000 $10,000 $9,500 $11,000 $10,000 $10,500 $1,000
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $7,000 $7,500 $9,500 $10,000 $10,500 $11,000 $10,000 $9,500 $11,000 $10,000 $10,500 $1,000
Gross Margin $6,000 $8,500 $9,500 $10,000 $10,500 $11,000 $10,000 $10,500 $11,000 $11,000 $10,500 $19,000
Gross Margin % 46.15% 53.13% 50.00% 50.00% 50.00% 50.00% 50.00% 52.50% 50.00% 52.38% 50.00% 95.00%
Expenses
Payroll $5,800 $5,800 $5,800 $5,800 $5,800 $5,800 $5,800 $5,800 $5,800 $5,800 $5,800 $5,800
Sales and Marketing and Other Expenses $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Depreciation $357 $357 $357 $357 $357 $357 $357 $357 $357 $357 $357 $357
Leased Equipment $0 $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 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300
Payroll Taxes 15% $870 $870 $870 $870 $870 $870 $870 $870 $870 $870 $870 $870
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $9,027 $9,027 $9,027 $9,027 $9,027 $9,027 $9,027 $9,027 $9,027 $9,027 $9,027 $9,027
Profit Before Interest and Taxes ($3,027) ($527) $473 $973 $1,473 $1,973 $973 $1,473 $1,973 $1,973 $1,473 $9,973
EBITDA ($2,670) ($170) $830 $1,330 $1,830 $2,330 $1,330 $1,830 $2,330 $2,330 $1,830 $10,330
Interest Expense $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167
Taxes Incurred ($958) ($208) $92 $242 $392 $542 $242 $392 $542 $542 $392 $2,942
Net Profit ($2,236) ($486) $214 $564 $914 $1,264 $564 $914 $1,264 $1,264 $914 $6,864
Net Profit/Sales -17.20% -3.03% 1.13% 2.82% 4.35% 5.75% 2.82% 4.57% 5.75% 6.02% 4.35% 34.32%

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 $5,200 $6,400 $7,600 $8,000 $8,400 $8,800 $8,000 $8,000 $8,800 $8,400 $8,400 $8,000
Cash from Receivables $0 $260 $7,860 $9,660 $11,420 $12,020 $12,620 $13,160 $12,000 $12,040 $13,180 $12,600
Subtotal Cash from Operations $5,200 $6,660 $15,460 $17,660 $19,820 $20,820 $20,620 $21,160 $20,800 $20,440 $21,580 $20,600
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 $0 $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 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $5,200 $6,660 $15,460 $17,660 $19,820 $20,820 $20,620 $21,160 $20,800 $20,440 $21,580 $20,600
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 $5,800 $5,800 $5,800 $5,800 $5,800 $5,800 $5,800 $5,800 $5,800 $5,800 $5,800 $5,800
Bill Payments $69 $2,104 $2,839 $3,134 $3,652 $14,500 $15,030 $12,185 $12,507 $16,104 $12,545 $14,195
Subtotal Spent on Operations $5,869 $7,904 $8,639 $8,934 $9,452 $20,300 $20,830 $17,985 $18,307 $21,904 $18,345 $19,995
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 $0 $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 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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 $5,869 $7,904 $8,639 $8,934 $9,452 $20,300 $20,830 $17,985 $18,307 $21,904 $18,345 $19,995
Net Cash Flow ($669) ($1,244) $6,821 $8,726 $10,368 $520 ($210) $3,175 $2,493 ($1,464) $3,235 $605
Cash Balance $3,331 $2,087 $8,909 $17,635 $28,003 $28,523 $28,313 $31,487 $33,981 $32,517 $35,752 $36,356
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 $4,000 $3,331 $2,087 $8,909 $17,635 $28,003 $28,523 $28,313 $31,487 $33,981 $32,517 $35,752 $36,356
Accounts Receivable $0 $7,800 $17,140 $20,680 $23,020 $24,200 $25,380 $24,760 $23,600 $24,800 $25,360 $24,780 $24,180
Inventory $45,000 $38,000 $30,500 $21,000 $11,000 $11,550 $12,100 $11,000 $10,450 $12,100 $11,000 $11,550 $10,550
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $49,000 $49,131 $49,727 $50,589 $51,655 $63,753 $66,003 $64,073 $65,537 $70,881 $68,877 $72,082 $71,086
Long-term Assets
Long-term Assets $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000
Accumulated Depreciation $0 $357 $714 $1,071 $1,428 $1,785 $2,142 $2,499 $2,856 $3,213 $3,570 $3,927 $4,284
Total Long-term Assets $15,000 $14,643 $14,286 $13,929 $13,572 $13,215 $12,858 $12,501 $12,144 $11,787 $11,430 $11,073 $10,716
Total Assets $64,000 $63,774 $64,013 $64,518 $65,227 $76,968 $78,861 $76,574 $77,681 $82,668 $80,307 $83,155 $81,802
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 $0 $2,009 $2,734 $3,024 $3,169 $13,996 $14,624 $11,773 $11,966 $15,688 $12,063 $13,996 $5,779
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $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 $0 $2,009 $2,734 $3,024 $3,169 $13,996 $14,624 $11,773 $11,966 $15,688 $12,063 $13,996 $5,779
Long-term Liabilities $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 Liabilities $20,000 $22,009 $22,734 $23,024 $23,169 $33,996 $34,624 $31,773 $31,966 $35,688 $32,063 $33,996 $25,779
Paid-in Capital $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000
Retained Earnings ($11,000) ($11,000) ($11,000) ($11,000) ($11,000) ($11,000) ($11,000) ($11,000) ($11,000) ($11,000) ($11,000) ($11,000) ($11,000)
Earnings $0 ($2,236) ($2,721) ($2,507) ($1,942) ($1,028) $237 $801 $1,715 $2,980 $4,244 $5,159 $12,023
Total Capital $44,000 $41,764 $41,279 $41,493 $42,058 $42,972 $44,237 $44,801 $45,715 $46,980 $48,244 $49,159 $56,023
Total Liabilities and Capital $64,000 $63,774 $64,013 $64,518 $65,227 $76,968 $78,861 $76,574 $77,681 $82,668 $80,307 $83,155 $81,802
Net Worth $44,000 $41,764 $41,279 $41,493 $42,058 $42,972 $44,237 $44,801 $45,715 $46,980 $48,244 $49,159 $56,023

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