Comgate
Company Summary
After initial losses and several thin profit years of competitively bidding construction projects, Comgate has brought its mission statement into clearer focus. Prior years were characterized by hectic efforts to bid as many jobs as possible. Margins were thin as pricing policy was “flexible” for fear that there would be insufficient work for production staff. Now, the situation has changed. Now there is some fear of accepting too much work. This is a result of the company’s newly installed CAD capacity which melds nicely with the needs and realities of present day design professionals. Offering this service helps to channel the work to the company and pricing tends to be less cut-throat. With the increasing business, some long-overdue restructuring needs to be done in the administrative machinery. These changes will free up time so that the office manager can attend to more important administrative matters, and hopefully will assure more accuracy in pricing, billing, and tracking of costs for comparison purposes. Profits are expected to remain in the black and increase.
2.1 Company Ownership
Comgate is a limited liability S corporation wholly-owned by Andrew Comins. It was incorporated in 1996.
2.2 Company History
This chapter includes a standard chart and table of the company’s performance over the past few years.
Since a banker may wish to see more in-depth analysis of past performance, a copy of an Excel spreadsheet has been included in Appendix A. Analysis has been provided in five basic areas – Liquidity, Safety, Profitability, Balance Sheet and Operations Management. This compares Comgate’s 1999 financials with the results of all similar mill shops responding to a survey (October, 1999) conducted by the Architectural Woodworking Institute (AWI) in Reston, Virginia.
See Chapter 7.2 Key Financial Indicators for further analysis of past financial results.
Note: appendices A – K have been omitted from this sample plan presentation.

Past Performance | |||
1997 | 1998 | 1999 | |
Sales | $147,481 | $367,305 | $552,864 |
Gross Margin | $73,591 | $218,102 | $313,702 |
Gross Margin % | 49.90% | 59.38% | 56.74% |
Operating Expenses | $162,547 | $195,639 | $260,251 |
Collection Period (days) | 0 | 20 | 66 |
Inventory Turnover | 4.80 | 35.10 | 9.90 |
Balance Sheet | |||
1997 | 1998 | 1999 | |
Current Assets | |||
Cash | $25,563 | $13,763 | $3,988 |
Accounts Receivable | $0 | $39,412 | $161,313 |
Inventory | $7,949 | $14,337 | $6,500 |
Other Current Assets | $1,650 | $0 | $0 |
Total Current Assets | $35,162 | $67,512 | $171,801 |
Long-term Assets | |||
Long-term Assets | $107,624 | $113,484 | $140,203 |
Accumulated Depreciation | $50,691 | $73,063 | $104,893 |
Total Long-term Assets | $56,933 | $40,421 | $35,310 |
Total Assets | $92,095 | $107,933 | $207,111 |
Current Liabilities | |||
Accounts Payable | $5,283 | $16,058 | $58,344 |
Current Borrowing | $9,143 | $11,857 | $69,477 |
Other Current Liabilities (interest free) | $3,829 | $25,288 | $10,000 |
Total Current Liabilities | $18,255 | $53,203 | $137,821 |
Long-term Liabilities | $161,433 | $125,720 | $99,179 |
Total Liabilities | $179,688 | $178,923 | $237,000 |
Paid-in Capital | $2,000 | $2,000 | $2,000 |
Retained Earnings | ($637) | ($89,593) | ($65,014) |
Earnings | ($88,956) | $16,603 | $33,125 |
Total Capital | ($87,593) | ($70,990) | ($29,889) |
Total Capital and Liabilities | $92,095 | $107,933 | $207,111 |
Other Inputs | |||
Payment Days | 30 | 39 | 89 |
Sales on Credit | $147,481 | $367,305 | $552,864 |
Receivables Turnover | 0.00 | 9.32 | 3.43 |
2.3 Company Locations and Facilities
The company is located in New Haven, Ct. in rented facilities. Total area is 2,500 square feet of which about 100 square feet is taken up with administration. Some expansion in the present facilities is possible by renting another 1,600 square feet of adjoining space. This plan assumes that this additional space will be added in January, 2000 at an increase of $2,000 in monthly rent.
A diagram of the production hall showing the location of the various major pieces of machinery is given in Appendix G.
Note: appendices A – K have been omitted from this sample plan presentation.