Anywhere Remodeling
Company Summary
Anywhere Remodeling, Inc. started as a proprietorship originally named Right Stuff Construction in August 1989, serving Anywhere, World. Its customers pay 10-15% extra to feel “taken care of.” Their need to trust a contractor allows them to feel comfortable with slightly higher than average prices.
2.1 Company Ownership
Anywhere Remodeling, Inc. is an S corporation owned in majority by its founder and president, Bob Hammer. There are two part owners: Steve Field & Bill Sales. Neither owns more than 15%, but both are active participants in management decisions.
2.2 Company History
Anywhere Remodeling, Inc. was founded in 1989 as a sole proprietorship registered in Anywhere, World as Right Stuff Construction, owned and operated by Bob Hammer. It was a originally a handyman business specializing in house painting.
After seeing an influx of competition in response to the recent housing crisis, Bob decided that the best way to adapt to the market was to take advantage of the fact that new building permits are down. The theory is that because new home construction is down, those people who have the extra money to spend will be more likely to hold on to their assets and remodel existing homes rather than go out and buy a new home.
| Past Performance | |||
| FY 2006 | FY 2007 | FY 2008 | |
| Sales | $250,000 | $450,000 | $750,000 |
| Gross Margin | $62,500 | $112,500 | $187,500 |
| Gross Margin % | 25.00% | 25.00% | 25.00% |
| Operating Expenses | $187,500 | $337,500 | $562,500 |
| Collection Period (days) | 438 | 326 | 472 |
| Balance Sheet | |||
| FY 2006 | FY 2007 | FY 2008 | |
| Current Assets | |||
| Cash | $39,748 | $44,165 | $183,428 |
| Accounts Receivable | $240,000 | $430,000 | $735,000 |
| Other Current Assets | $8,938 | $9,931 | $31,380 |
| Total Current Assets | $288,686 | $484,096 | $949,808 |
| Long-term Assets | |||
| Long-term Assets | $63,040 | $70,045 | $145,879 |
| Accumulated Depreciation | $28,675 | $31,861 | $56,879 |
| Total Long-term Assets | $34,365 | $38,184 | $89,000 |
| Total Assets | $323,051 | $522,280 | $1,038,808 |
| Current Liabilities | |||
| Accounts Payable | $42,731 | $53,000 | $69,720 |
| Current Borrowing | $38,458 | $24,965 | $0 |
| Other Current Liabilities (interest free) | $0 | $9,995 | $0 |
| Total Current Liabilities | $81,189 | $87,960 | $69,720 |
| Long-term Liabilities | $30,143 | $11,492 | $0 |
| Total Liabilities | $111,332 | $99,452 | $69,720 |
| Paid-in Capital | $15,000 | $7,000 | $20,000 |
| Retained Earnings | $196,719 | $415,828 | $949,088 |
| Earnings | $0 | $0 | $0 |
| Total Capital | $211,719 | $422,828 | $969,088 |
| Total Capital and Liabilities | $323,051 | $522,280 | $1,038,808 |
| Other Inputs | |||
| Payment Days | 30 | 30 | 30 |
| Sales on Credit | $200,000 | $375,000 | $450,000 |
| Receivables Turnover | 0.83 | 0.87 | 0.61 |
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