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William's Environmental

Executive Summary

William’s Environmental is an underground tank removal and installation business that offers its customers a complete waste control system from start to finish. Jean William is starting William’s Environmental in response to the extraordinary housing growth in Webster County over the past three years. In addition, Webster County has approved a rebate program for replacing older septic tanks.

William’s Environmental has over twenty five years of experience in the waste management field. Prior to starting William’s Environmental, Jean served as the general contractor for Hayes Honeybucket Services for ten years. The rest of her staff have over fifteen years of experience serving customers in Webster County. Jean has developed extensive contacts with property managers, home builders and home owners.

The county projects 2,000 more housing starts for this year. Currently, there are 80,000 homes in the county, outside the city of Monroe. Of these homes 50% have underground tanks to manage waste.

Webster County recently approved a program that will assist owners of underground septic tanks that are 15 years old or older to replace their old tanks. The new program will pay up to 40% of the replacement cost. The program begins in May this year. The county estimates that 40% of these older homes have underground tanks that must be replaced in order to limit the threat of ground water contamination. This represents over 20,000 homes that need new underground tanks.

William’s Environmental plans a full assault on the homes this program is targeting. A sales person has been hired by the company to pursue this opportunity full time. William’s Environmental is offering to handle all the paper work to get the home approved for assistance. This is extremely important because a large number of these home have elderly owners.

Jean will invest personal savings in William’s Environmental. A silent partner will match Jean’s investment. In addition, she will obtain a long-term loan. 

Septic tank contractor business plan, executive summary chart image

1.1 Objectives

William’s Environmental has three objectives:

  • Gain a significant market share of the septic tank replacement orders.
  • Establish a strong relationship with the area’s home builders.
  • Increase sales steadily each year for the next three years.

1.2 Mission

The mission of William’s Environmental is to exceed the customer’s expectation of service and product. When the customer calls with an emergency or request, they will get the help they need, fast.

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Company Summary

William’s Environmental is a underground septic tank installation, service and removal business that offers its customers a complete waste control system from start to finish.

William’s Environmental has over twenty five years of experience in the waste management field. Jean William has assembled a team of the area’s top professionals in septic tank installation and replacement. William’s Environmental will also hire a sales person to target the older homes that are eligible for a 40% rebate on septic tank replacement that is being offered by the county.

William’s Environmental is located at 3456 Main St., Munroe, New York. The facility/storage yard is 10,000 square feet and located at the junction of Highways 55 and 102.

2.1 Company Ownership

William’s Environmental will incorporated in New York as a C Corporation. Jean William owns 70% of the company shares. The remaining 30% is owned by the silent partner.

2.2 Start-up Summary

The following is the start-up plan for William’s Environmental. Specialized hand tools will be purchased as part of expensed equipment, while excavating equipment, e.g. backhoe, trailers, dump truck, and powered hoist will be leased, with the intent/option to buy, for the initial years of the plan. These large capital purchases will be deferred until the business is profitably established.

Septic tank contractor business plan, company summary chart image

Start-up
Requirements
Start-up Expenses
Legal $1,000
Stationery etc. $200
Brochures $1,000
Office Setup $10,000
Insurance $3,000
Rent $2,000
2 Vans-used $22,000
Installation Inventory $10,000
Tank Inventory $30,000
Expensed Equipment $20,000
Other $0
Total Start-up Expenses $99,200
Start-up Assets
Cash Required $80,800
Start-up Inventory $0
Other Current Assets $0
Long-term Assets $30,000
Total Assets $110,800
Total Requirements $210,000
Start-up Funding
Start-up Expenses to Fund $99,200
Start-up Assets to Fund $110,800
Total Funding Required $210,000
Assets
Non-cash Assets from Start-up $30,000
Cash Requirements from Start-up $80,800
Additional Cash Raised $0
Cash Balance on Starting Date $80,800
Total Assets $110,800
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $100,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $100,000
Capital
Planned Investment
Jean William $50,000
Investor 2 $60,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $110,000
Loss at Start-up (Start-up Expenses) ($99,200)
Total Capital $10,800
Total Capital and Liabilities $110,800
Total Funding $210,000

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Services

William’s Environmental installs, removes and maintains underground waste storage tanks in the Webster County area. William’s Environmental offers a 24-hour trouble shooting service that provides customers with around-the-clock coverage.

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Market Analysis Summary

As the city of Monroe expands its borders, more and more city dwellers are choosing to live outside of Monroe in surrounding Webster County. Population in the county has grown by 10% over the past three years. The county projects 2,000 more rural housing starts for 2002. New home starts are on the upswing. Most of these new homes will have independent waste management systems. The area’s prominent builders have been in the county for over twenty years. Jean William has an excellent reputation with these builders. The new housing is clustered near the towns within 25 miles of Monroe (Bradford, Lincoln, Tracy, and Madison).

Currently, there are 80,000 homes in the county, outside the city of Monroe. Of these homes 50% have underground tanks to manage waste. More importantly, 40% of these homes are more than 20 years old. The county estimates that 60% of these older homes have underground tanks that must be replaced in order to limit the threat of ground water contamination. This represents over 20,000 homes that need new underground tanks. A majority of these homes are located in and around the villages of Riley, Jacksonville, Oakland, and Reed.

4.1 Market Segmentation

William’s Environmental will focus on the following target customers: 

  • Owners of older homes (20 years old or older)
  • New home builders.
Septic tank contractor business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Older Homes 8% 20,000 21,600 23,328 25,194 27,210 8.00%
New Homes 15% 2,000 2,300 2,645 3,042 3,498 15.00%
Other 0% 0 0 0 0 0 0.00%
Total 8.69% 22,000 23,900 25,973 28,236 30,708 8.69%

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Strategy and Implementation Summary

Webster County recently approved a program that will assist owners of underground septic tanks that are 15 years old or older to replace their old tanks. The new program will pay up to 40% of the replacement cost. The program will begin this May.

William’s Environmental plans a full assault on the homes this program is targeting. A sales person has been hired by the company to pursue this opportunity full time. William’s Environmental is offering to handle all the paper work to get the home approved for assistance. This is extremely important because a large number of these home have elderly owners.

Another focus of this campaign will be Jean herself. She is an active member in county activities and is well known by the county residents. She is particularly active in women’s organizations that involve many residents that are the target of the septic tank replacement program.

With new homes, Jean will sell William’s Environmental to the numerous builders that she has worked with in the past. She has an excellent reputation as a contractor and will be successful in competing for waste management tank installation contracts.

5.1 Competitive Edge

The competitive edge for William’s Environmental is its staff. Each employee has extensive experience in the septic tank installation and removal. They are customer-oriented and pride themselves on quality products and services.

The staff is a follows:

  • Bill Johnson: Seven years of septic tank installation and removal. 
  • Roger Davidson: Five years of septic tank installation and removal.
  • Rudy Willis: Six years of septic tank installation and removal.

5.2 Sales Strategy

William’s Environmental will employ a full-time sales person to sell the county septic tank replacement program to county residents. The salesperson will provide assistance to homeowners in filing for the septic tank rebate.

Jean will focus on securing installation work with new home builders.

5.2.1 Sales Forecast

The following is the sales forecast for three years. Sales and work predominantly occur during the temperate months. Snow and frozen ground make excavation for tank replacement more difficult, though not impossible, in the winter months.

Septic tank contractor business plan, strategy and implementation summary chart image

Septic tank contractor business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Sales
Septic Tank Replacement $237,000 $280,000 $320,000
Septic Tank Installation $130,000 $180,000 $230,000
Septic Tank Removal $49,000 $76,000 $89,000
Other $0 $0 $0
Total Sales $416,000 $536,000 $639,000
Direct Cost of Sales Year 1 Year 2 Year 3
Septic Tank Replacement $118,500 $140,000 $160,000
Septic Tank Installation $52,500 $62,000 $75,000
Septic Tank Removal $12,250 $19,000 $22,250
Other $0 $0 $0
Subtotal Direct Cost of Sales $183,250 $221,000 $257,250

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Management Summary

Jean William will manage William’s Environmental. She is an experienced project manager, and has many years of supervisory experience in the construction industry.

6.1 Personnel Plan

The personnel plan for William’s Environmental is as follows:

  • Manager
  • Salesperson
  • 3 Installation/Removal Staff
Personnel Plan
Year 1 Year 2 Year 3
Manager $42,000 $45,000 $48,000
Salesperson $36,000 $40,000 $43,000
3 Installation/Removal Staff $100,800 $106,800 $113,000
Other $0 $0 $0
Total People 3 3 3
Total Payroll $178,800 $191,800 $204,000

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Financial Plan

The following is the financial plan for William’s Environmental.

7.1 Break-even Analysis

The monthly break-even point is calcualted below, based upon estimated average monthly costs and costs of sales variable percentage.

Septic tank contractor business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $40,613
Assumptions:
Average Percent Variable Cost 44%
Estimated Monthly Fixed Cost $22,723

7.2 Projected Profit and Loss

The following is the projected profit and loss for three years.

Septic tank contractor business plan, financial plan chart image

Septic tank contractor business plan, financial plan chart image

Septic tank contractor business plan, financial plan chart image

Septic tank contractor business plan, financial plan chart image

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $416,000 $536,000 $639,000
Direct Cost of Sales $183,250 $221,000 $257,250
Other Production Expenses $0 $0 $0
Total Cost of Sales $183,250 $221,000 $257,250
Gross Margin $232,750 $315,000 $381,750
Gross Margin % 55.95% 58.77% 59.74%
Expenses
Payroll $178,800 $191,800 $204,000
Sales and Marketing and Other Expenses $12,000 $13,500 $16,500
Depreciation $8,856 $8,856 $8,856
Leased Equipment $30,000 $30,000 $30,000
Utilities $1,800 $0 $0
Insurance $2,400 $2,700 $3,000
Rent $12,000 $11,000 $11,000
Payroll Taxes $26,820 $28,770 $30,600
Other $0 $0 $0
Total Operating Expenses $272,676 $286,626 $303,956
Profit Before Interest and Taxes ($39,926) $28,374 $77,794
EBITDA ($31,070) $37,230 $86,650
Interest Expense $9,459 $8,501 $7,501
Taxes Incurred $0 $5,962 $21,088
Net Profit ($49,385) $13,911 $49,205
Net Profit/Sales -11.87% 2.60% 7.70%

7.3 Projected Cash Flow

The following is the projected cash flow for three years.

Septic tank contractor business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $208,000 $268,000 $319,500
Cash from Receivables $183,667 $260,981 $313,475
Subtotal Cash from Operations $391,667 $528,981 $632,975
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 $391,667 $528,981 $632,975
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $178,800 $191,800 $204,000
Bill Payments $260,746 $333,251 $375,925
Subtotal Spent on Operations $439,546 $525,051 $579,925
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 $9,996 $9,996 $9,996
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $449,542 $535,047 $589,921
Net Cash Flow ($57,875) ($6,066) $43,054
Cash Balance $22,925 $16,859 $59,913

7.4 Projected Balance Sheet

The following is the projected balance sheet for three years.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $22,925 $16,859 $59,913
Accounts Receivable $24,333 $31,353 $37,377
Inventory $17,875 $21,557 $25,093
Other Current Assets $0 $0 $0
Total Current Assets $65,133 $69,769 $122,384
Long-term Assets
Long-term Assets $30,000 $30,000 $30,000
Accumulated Depreciation $8,856 $17,712 $26,568
Total Long-term Assets $21,144 $12,288 $3,432
Total Assets $86,277 $82,057 $125,816
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $34,858 $26,722 $31,272
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $34,858 $26,722 $31,272
Long-term Liabilities $90,004 $80,008 $70,012
Total Liabilities $124,862 $106,730 $101,284
Paid-in Capital $110,000 $110,000 $110,000
Retained Earnings ($99,200) ($148,585) ($134,673)
Earnings ($49,385) $13,911 $49,205
Total Capital ($38,585) ($24,673) $24,532
Total Liabilities and Capital $86,277 $82,057 $125,816
Net Worth ($38,585) ($24,673) $24,532

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 1711, Plumbing, Heating and Air Conditioning (which includes septic tank installation contractors), are shown for comparison.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 28.85% 19.22% 6.60%
Percent of Total Assets
Accounts Receivable 28.20% 38.21% 29.71% 46.40%
Inventory 20.72% 26.27% 19.94% 8.70%
Other Current Assets 0.00% 0.00% 0.00% 29.30%
Total Current Assets 75.49% 85.02% 97.27% 84.40%
Long-term Assets 24.51% 14.98% 2.73% 15.60%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 40.40% 32.57% 24.86% 47.20%
Long-term Liabilities 104.32% 97.50% 55.65% 9.10%
Total Liabilities 144.72% 130.07% 80.50% 56.30%
Net Worth -44.72% -30.07% 19.50% 43.70%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 55.95% 58.77% 59.74% 26.50%
Selling, General & Administrative Expenses 67.82% 56.17% 52.04% 14.60%
Advertising Expenses 1.73% 1.49% 1.56% 0.40%
Profit Before Interest and Taxes -9.60% 5.29% 12.17% 2.20%
Main Ratios
Current 1.87 2.61 3.91 1.87
Quick 1.36 1.80 3.11 1.47
Total Debt to Total Assets 144.72% 130.07% 80.50% 56.30%
Pre-tax Return on Net Worth 127.99% -80.55% 286.54% 6.80%
Pre-tax Return on Assets -57.24% 24.22% 55.87% 15.50%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin -11.87% 2.60% 7.70% n.a
Return on Equity 0.00% 0.00% 200.58% n.a
Activity Ratios
Accounts Receivable Turnover 8.55 8.55 8.55 n.a
Collection Days 57 38 39 n.a
Inventory Turnover 10.18 11.21 11.03 n.a
Accounts Payable Turnover 8.48 12.17 12.17 n.a
Payment Days 27 35 28 n.a
Total Asset Turnover 4.82 6.53 5.08 n.a
Debt Ratios
Debt to Net Worth 0.00 0.00 4.13 n.a
Current Liab. to Liab. 0.28 0.25 0.31 n.a
Liquidity Ratios
Net Working Capital $30,275 $43,047 $91,112 n.a
Interest Coverage -4.22 3.34 10.37 n.a
Additional Ratios
Assets to Sales 0.21 0.15 0.20 n.a
Current Debt/Total Assets 40% 33% 25% n.a
Acid Test 0.66 0.63 1.92 n.a
Sales/Net Worth 0.00 0.00 26.05 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
Septic Tank Replacement 0% $10,000 $14,000 $17,000 $36,000 $42,000 $35,000 $25,000 $20,000 $8,000 $5,000 $5,000 $20,000
Septic Tank Installation 0% $7,000 $8,000 $10,000 $15,000 $20,000 $20,000 $12,000 $15,000 $3,000 $3,000 $3,000 $14,000
Septic Tank Removal 0% $2,000 $3,000 $4,000 $6,000 $8,000 $8,000 $3,000 $4,000 $2,000 $2,000 $2,000 $5,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $19,000 $25,000 $31,000 $57,000 $70,000 $63,000 $40,000 $39,000 $13,000 $10,000 $10,000 $39,000
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
Septic Tank Replacement $5,000 $7,000 $8,500 $18,000 $21,000 $17,500 $12,500 $10,000 $4,000 $2,500 $2,500 $10,000
Septic Tank Installation $3,000 $3,500 $4,000 $6,500 $8,000 $8,000 $5,000 $6,500 $1,000 $1,000 $1,000 $5,000
Septic Tank Removal $500 $750 $1,000 $1,500 $2,000 $2,000 $750 $1,000 $500 $500 $500 $1,250
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $8,500 $11,250 $13,500 $26,000 $31,000 $27,500 $18,250 $17,500 $5,500 $4,000 $4,000 $16,250
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
Manager 0% $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500
Salesperson 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
3 Installation/Removal Staff 0% $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 3 3 3 3 3 3 3 3 3 3 3 3
Total Payroll $14,900 $14,900 $14,900 $14,900 $14,900 $14,900 $14,900 $14,900 $14,900 $14,900 $14,900 $14,900

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 $19,000 $25,000 $31,000 $57,000 $70,000 $63,000 $40,000 $39,000 $13,000 $10,000 $10,000 $39,000
Direct Cost of Sales $8,500 $11,250 $13,500 $26,000 $31,000 $27,500 $18,250 $17,500 $5,500 $4,000 $4,000 $16,250
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $8,500 $11,250 $13,500 $26,000 $31,000 $27,500 $18,250 $17,500 $5,500 $4,000 $4,000 $16,250
Gross Margin $10,500 $13,750 $17,500 $31,000 $39,000 $35,500 $21,750 $21,500 $7,500 $6,000 $6,000 $22,750
Gross Margin % 55.26% 55.00% 56.45% 54.39% 55.71% 56.35% 54.37% 55.13% 57.69% 60.00% 60.00% 58.33%
Expenses
Payroll $14,900 $14,900 $14,900 $14,900 $14,900 $14,900 $14,900 $14,900 $14,900 $14,900 $14,900 $14,900
Sales and Marketing and Other Expenses $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Depreciation $738 $738 $738 $738 $738 $738 $738 $738 $738 $738 $738 $738
Leased Equipment $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Utilities $200 $200 $200 $200 $200 $200 $200 $200 $200 $0 $0 $0
Insurance $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Rent $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Payroll Taxes 15% $2,235 $2,235 $2,235 $2,235 $2,235 $2,235 $2,235 $2,235 $2,235 $2,235 $2,235 $2,235
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $22,773 $22,773 $22,773 $22,773 $22,773 $22,773 $22,773 $22,773 $22,773 $22,573 $22,573 $22,573
Profit Before Interest and Taxes ($12,273) ($9,023) ($5,273) $8,227 $16,227 $12,727 ($1,023) ($1,273) ($15,273) ($16,573) ($16,573) $177
EBITDA ($11,535) ($8,285) ($4,535) $8,965 $16,965 $13,465 ($285) ($535) ($14,535) ($15,835) ($15,835) $915
Interest Expense $826 $819 $813 $806 $799 $792 $785 $778 $771 $764 $757 $750
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($13,099) ($9,842) ($6,086) $7,421 $15,428 $11,935 ($1,808) ($2,051) ($16,044) ($17,337) ($17,330) ($573)
Net Profit/Sales -68.94% -39.37% -19.63% 13.02% 22.04% 18.94% -4.52% -5.26% -123.41% -173.37% -173.30% -1.47%

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 $9,500 $12,500 $15,500 $28,500 $35,000 $31,500 $20,000 $19,500 $6,500 $5,000 $5,000 $19,500
Cash from Receivables $0 $317 $9,600 $12,600 $15,933 $28,717 $34,883 $31,117 $19,983 $19,067 $6,450 $5,000
Subtotal Cash from Operations $9,500 $12,817 $25,100 $41,100 $50,933 $60,217 $54,883 $50,617 $26,483 $24,067 $11,450 $24,500
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 $9,500 $12,817 $25,100 $41,100 $50,933 $60,217 $54,883 $50,617 $26,483 $24,067 $11,450 $24,500
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 $14,900 $14,900 $14,900 $14,900 $14,900 $14,900 $14,900 $14,900 $14,900 $14,900 $14,900 $14,900
Bill Payments $860 $25,692 $22,286 $24,715 $47,582 $44,005 $31,057 $16,281 $24,032 $7,899 $7,699 $8,638
Subtotal Spent on Operations $15,760 $40,592 $37,186 $39,615 $62,482 $58,905 $45,957 $31,181 $38,932 $22,799 $22,599 $23,538
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 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833
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 $16,593 $41,425 $38,019 $40,448 $63,315 $59,738 $46,790 $32,014 $39,765 $23,632 $23,432 $24,371
Net Cash Flow ($7,093) ($28,608) ($12,919) $652 ($12,382) $479 $8,093 $18,602 ($13,281) $435 ($11,982) $129
Cash Balance $73,707 $45,098 $32,179 $32,832 $20,450 $20,929 $29,022 $47,624 $34,343 $34,777 $22,796 $22,925
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 $80,800 $73,707 $45,098 $32,179 $32,832 $20,450 $20,929 $29,022 $47,624 $34,343 $34,777 $22,796 $22,925
Accounts Receivable $0 $9,500 $21,683 $27,583 $43,483 $62,550 $65,333 $50,450 $38,833 $25,350 $11,283 $9,833 $24,333
Inventory $0 $9,350 $12,375 $14,850 $28,600 $34,100 $30,250 $20,075 $19,250 $13,750 $9,750 $5,750 $17,875
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $80,800 $92,557 $79,157 $74,613 $104,915 $117,100 $116,512 $99,547 $105,707 $73,443 $55,811 $38,379 $65,133
Long-term Assets
Long-term Assets $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000
Accumulated Depreciation $0 $738 $1,476 $2,214 $2,952 $3,690 $4,428 $5,166 $5,904 $6,642 $7,380 $8,118 $8,856
Total Long-term Assets $30,000 $29,262 $28,524 $27,786 $27,048 $26,310 $25,572 $24,834 $24,096 $23,358 $22,620 $21,882 $21,144
Total Assets $110,800 $121,819 $107,681 $102,399 $131,963 $143,410 $142,084 $124,381 $129,803 $96,801 $78,431 $60,261 $86,277
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 $24,951 $21,488 $23,125 $46,101 $42,953 $30,524 $15,462 $23,768 $7,642 $7,442 $7,436 $34,858
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 $24,951 $21,488 $23,125 $46,101 $42,953 $30,524 $15,462 $23,768 $7,642 $7,442 $7,436 $34,858
Long-term Liabilities $100,000 $99,167 $98,334 $97,501 $96,668 $95,835 $95,002 $94,169 $93,336 $92,503 $91,670 $90,837 $90,004
Total Liabilities $100,000 $124,118 $119,822 $120,626 $142,769 $138,788 $125,526 $109,631 $117,104 $100,145 $99,112 $98,273 $124,862
Paid-in Capital $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000
Retained Earnings ($99,200) ($99,200) ($99,200) ($99,200) ($99,200) ($99,200) ($99,200) ($99,200) ($99,200) ($99,200) ($99,200) ($99,200) ($99,200)
Earnings $0 ($13,099) ($22,942) ($29,027) ($21,606) ($6,178) $5,758 $3,950 $1,899 ($14,145) ($31,482) ($48,812) ($49,385)
Total Capital $10,800 ($2,299) ($12,142) ($18,227) ($10,806) $4,622 $16,558 $14,750 $12,699 ($3,345) ($20,682) ($38,012) ($38,585)
Total Liabilities and Capital $110,800 $121,819 $107,681 $102,399 $131,963 $143,410 $142,084 $124,381 $129,803 $96,801 $78,431 $60,261 $86,277
Net Worth $10,800 ($2,299) ($12,142) ($18,227) ($10,806) $4,622 $16,558 $14,750 $12,699 ($3,345) ($20,682) ($38,012) ($38,585)

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