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 |