Gamehenge Tapers Co-op
Financial Plan
The following sections will outline the important financial assumptions, key financial indicators, Break-even Analysis, profit and loss, cash flow, and balance sheet.
7.1 Important Assumptions
The following table highlights some of the important financial assumptions for Gamehenge Tapers Co-op.
| 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 | 2.50% | 0.00% | 2.50% |
| Other | 0 | 0 | 0 |
7.2 Break-even Analysis
The Break-even Analysis shows what we need in monthly revenue to break even.
| Break-even Analysis | |
| Monthly Revenue Break-even | $1,741 |
| Assumptions: | |
| Average Percent Variable Cost | 82% |
| Estimated Monthly Fixed Cost | $319 |
7.3 Projected Surplus or Deficit
THe following table will indicate projected surplus or deficit.
| Surplus and Deficit | |||
| Year 1 | Year 2 | Year 3 | |
| Funding | $41,094 | $41,545 | $42,154 |
| Direct Cost | $33,565 | $37,391 | $37,939 |
| Other | $0 | $0 | $0 |
| Total Direct Cost | $33,565 | $37,391 | $37,939 |
| Gross Surplus | $7,529 | $4,155 | $4,215 |
| Gross Surplus % | 18.32% | 10.00% | 10.00% |
| Expenses | |||
| Payroll | $0 | $0 | $0 |
| Sales and Marketing and Other Expenses | $600 | $600 | $600 |
| Depreciation | $228 | $228 | $228 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $0 | $0 | $0 |
| Insurance | $600 | $600 | $600 |
| Rent | $2,400 | $2,400 | $2,400 |
| Payroll Taxes | $0 | $0 | $0 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $3,828 | $3,828 | $3,828 |
| Surplus Before Interest and Taxes | $3,701 | $327 | $387 |
| EBITDA | $3,929 | $555 | $615 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | ($48) | $0 | $10 |
| Net Surplus | $3,749 | $327 | $378 |
| Net Surplus/Funding | 9.12% | 0.79% | 0.90% |
7.4 Projected Cash Flow
The following chart and table will indicate projected cash flow.
| Pro Forma Cash Flow | |||
| Year 1 | Year 2 | Year 3 | |
| Cash Received | |||
| Cash from Operations | |||
| Cash Funding | $41,094 | $41,545 | $42,154 |
| Subtotal Cash from Operations | $41,094 | $41,545 | $42,154 |
| 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 | $41,094 | $41,545 | $42,154 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $0 | $0 | $0 |
| Bill Payments | $36,615 | $42,634 | $41,602 |
| Subtotal Spent on Operations | $36,615 | $42,634 | $41,602 |
| 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 | $36,615 | $42,634 | $41,602 |
| Net Cash Flow | $4,479 | ($1,089) | $552 |
| Cash Balance | $4,729 | $3,641 | $4,193 |
7.5 Projected Balance Sheet
The following table will indicate the projected balance sheet.
| Pro Forma Balance Sheet | |||
| Year 1 | Year 2 | Year 3 | |
| Assets | |||
| Current Assets | |||
| Cash | $4,729 | $3,641 | $4,193 |
| Inventory | $4,083 | $4,548 | $4,615 |
| Other Current Assets | $0 | $0 | $0 |
| Total Current Assets | $8,812 | $8,189 | $8,808 |
| Long-term Assets | |||
| Long-term Assets | $1,150 | $1,150 | $1,150 |
| Accumulated Depreciation | $228 | $456 | $684 |
| Total Long-term Assets | $922 | $694 | $466 |
| Total Assets | $9,734 | $8,883 | $9,274 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $4,585 | $3,407 | $3,420 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| Subtotal Current Liabilities | $4,585 | $3,407 | $3,420 |
| Long-term Liabilities | $0 | $0 | $0 |
| Total Liabilities | $4,585 | $3,407 | $3,420 |
| Paid-in Capital | $2,000 | $2,000 | $2,000 |
| Accumulated Surplus/Deficit | ($600) | $3,149 | $3,476 |
| Surplus/Deficit | $3,749 | $327 | $378 |
| Total Capital | $5,149 | $5,476 | $5,853 |
| Total Liabilities and Capital | $9,734 | $8,883 | $9,274 |
| Net Worth | $5,149 | $5,476 | $5,853 |
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