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Tropical Tan

Executive Summary

Tropical Tan is a start up company seeking financing. Tropical Tan has an experienced management team, excellent location, and sound business strategy. This business plan will highlight Tropical Tan’s needs, market, sales plan, and financial statements.

Tropical Tan will be located in Chino Hills, CA. This is a market area of 160,000 individuals. The location is in a high traffic strip mall with national chains. The business’ main service will be offering tanning booths to individuals. Tropical Tan will offer six high quality tanning beds and limited retail sales of tanning lotion, bathing suits/swimwear, and sunglasses.

The objective of this business plan is to acquire $50,000 in additional funding. This money will be used to purchase inventory, tanning beds, and other expenses as noted in the Start-up table.

Tanning salon business plan, executive summary chart image

1.1 Objectives

  1. Sales of $380,000 in Year 1 and $425,000 by the end of Year 3.
  2. Net Profit higher than 40%.
  3. Net income more than 10% of sales by Year 3.

1.2 Mission

Tropical Tan will offer our clients the highest quality indoor tanning experience, with top-of-the-line beds and tanning accelerators. Tropical Tan will set itself apart from the competition by making customer satisfaction a top priority. Employees will be treated with dignity, and will be provided with special benefits such as moderate health insurance coverage, free tanning sessions, and a special company picnic once a year. Employees are the public face of Tropical Tan, and their health and goodwill is integral to the success of the business.

1.3 Keys to Success

  • Location – being located in a high traffic strip mall and across the street from a health club.
  • Convenience – with quick tan beds less time is spent in the bed, and extended business hours.
  • Customer Service – focus on our customers’ comfort and needs.
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Company Summary

Tropical Tan will, upon commencement of operations,  provide the service of tanning booth rentals. We will provide an upscale, sanitary environment, along with quality lotions, swimwear, and sunglasses. Superior customer service and high quality tanning equipment will set Tropical Tan apart from the competition.

2.1 Company Ownership

Tropical Tan will be created as a Sole Proprietorship based in Chino Hills owned by its principal investors and principal operators.

2.2 Start-up Summary

Keith and Shelly Harwood have $65,000 to invest in the business and are looking to finance an additional $50,000 for the build out and start up of their salon. The funds will be used to finance start-up costs, remodel the location, purchase the equipment, and initial inventory. The funds will be repaid through earnings.

Tanning salon business plan, company summary chart image

Start-up
Requirements
Start-up Expenses
Legal $250
Stationery etc. $100
Brochures $0
Consultants $0
Insurance $100
Rent $1,817
Research and Development $0
Expensed Equipment $27,000
Other $0
Total Start-up Expenses $29,267
Start-up Assets
Cash Required $29,333
Start-up Inventory $250
Other Current Assets $0
Long-term Assets $27,000
Total Assets $56,583
Total Requirements $85,850
Start-up Funding
Start-up Expenses to Fund $29,267
Start-up Assets to Fund $56,583
Total Funding Required $85,850
Assets
Non-cash Assets from Start-up $27,250
Cash Requirements from Start-up $29,333
Additional Cash Raised $0
Cash Balance on Starting Date $29,333
Total Assets $56,583
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $20,000
Accounts Payable (Outstanding Bills) $850
Other Current Liabilities (interest-free) $0
Total Liabilities $20,850
Capital
Planned Investment
Keith Harwood $40,000
Shelly Harwood $25,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $65,000
Loss at Start-up (Start-up Expenses) ($29,267)
Total Capital $35,733
Total Capital and Liabilities $56,583
Total Funding $85,850

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Products and Services

Tropical Tan will provide the service of tanning booth rentals to individuals. The company relies on seven SunQuest Pro brand tanning beds. Each bed includes 24 Wolff tanning lamps. Sessions range from 20-30 minutes each. Session costs are listed in the sales forecast summary.

Tropical Tan will also retail a line of tanning lotions, bathing suits/swimwear, and sunglasses.

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Strategy and Implementation Summary

The main priorities of Tropical upon start up are the following:

  • To maintain positive cash flow and aggressively limit expenses to match the projected financial statements.
  • To differentiate the brand and product from the competition by supporting and encouraging a unique customer experience.
  • To outsource important management activities so that any management team gaps are minimized.

By keeping these priorities in mind throughout the start-up process, the implementation team (management team) will maintain a course of action that will lead to solid results.

4.1 Competitive Edge

Tropical Tan’s competitive edge lies with the way in which customers are pampered. We will provide extra perks that our competition doesn’t such as bottled water after their session, free lattes and other perks described below:

Twice yearly client fashion show – The salon will close for several hours on a weekend and the fashion show will introduce a new line of swimwear. Tropical Tan clients will be encouraged to participate as the models for the new swimwear. The top male and female models will receive a year’s worth of tanning each.

Weekly drawings – Giveaways of everything from tanning products to free monthly passes to area restaurant giveaways.

Auto-payment for individual sessions – Clients who prefer individual sessions to package plans will be able to roll their sessions over into packages if they reach the allotted session amount/month.

4.2 Sales Strategy

Those customers who sign up for an initial tanning session (ITS) will receive special discounts on future tans and tanning programs. All returning customers will have access to special tanning plans specifically designed for their needs.

The tanning salon industry recommends that clients tan no more often than every other day. State and Federal regulations recommend no more than once every 24 hours. Tropical Tan recommends to clients that they discontinue tanning temporarily if skin is inappropriately tanned. The company will offer vouchers to clients that agree to discontinue under such circumstances, and reserves the right to refuse service to any client in cases where tanning abuse becomes a problem.  

4.2.1 Sales Forecast

The following table and charts give a run down on forecasted sales. This projection is based on six quick tan tanning beds, $10.00 per tanning session, and approximately 200 clients per day. Half of those clients paying on a monthly basis therefore bringing their session cost down to $2.00 ($50.00 per month). Also sales increase in the late spring and early summer and begin to taper off in September.

Tanning salon business plan, strategy and implementation summary chart image

Tanning salon business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Sales
Tanning Session $387,072 $406,426 $426,747
Lotions/swimwear/sunglasses/etc. $7,272 $7,635 $8,017
Total Sales $394,344 $414,061 $434,764
Direct Cost of Sales Year 1 Year 2 Year 3
Lotions/swimwear/sunglasses/etc. $3,100 $3,500 $3,800
Other $0 $0 $0
Subtotal Direct Cost of Sales $3,100 $3,500 $3,800

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Management Summary

The initial management team will consist of Keith & Shelly Harwood (owners). As we grow an additional management member will be added. Keith and Shelly have owned and sold several businesses in the last 15 years including a small convenience store, a plumbing contractor business, and a doggie day care business. They are experienced entrepreneurs with years of small business accounting, finance, marketing, and management experience.

5.1 Personnel Plan

The personnel plan calls for 2 part-time employees while one or both owners will be there full time. During the busier months, May, June, and July an additional part-time employee will be added.

Personnel Plan
Year 1 Year 2 Year 3
Part-time Help $7,740 $7,740 $7,740
Part-time Help $7,740 $7,740 $7,740
Part-time Help $1,935 $1,935 $1,935
Owners $48,000 $60,000 $72,000
Total People 3 0 0
Total Payroll $65,415 $77,415 $89,415

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Financial Plan

Tropical Tan expects a profit margin of over 40% starting with year one. By year two, that number should slowly increase as the law of diminishing costs takes hold and the day-to-day activities of the business become less expensive.

Sales are expected to grow 15% per year. Total owner financing of $65,000 will become a return on equity paid in the form of dividends to the owners.

6.1 Important Assumptions

After researching the tanning industry in and around Chino Hills, the following assumptions have been made:

  • Consumers are not happy with the two existing tanning salons’ equipment, so by bringing in top-of-the-line products we can provide a higher quality service as well as more clients per hour.
  • Being located across the street from a popular gym we can assume a high amount of foot traffic resulting in higher sales.
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 30.00% 30.00% 30.00%
Other 0 0 0

6.2 Break-even Analysis

The following chart and table summarize our break-even analysis. With fixed costs of $10,332 per month at the outset (a bare minimum), we need to sell 1,041 monthly tanning sessions at $10.00 to break even to cover our costs.

Tanning salon business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $10,414
Assumptions:
Average Percent Variable Cost 1%
Estimated Monthly Fixed Cost $10,332

6.3 Projected Profit and Loss

Our projected profit and loss is shown on the following table and charts. From our research of the tanning industry our annual projections are quite realistic. The detailed monthly projections are included in the appendix.

Tanning salon business plan, financial plan chart image

Tanning salon business plan, financial plan chart image

Tanning salon business plan, financial plan chart image

Tanning salon business plan, financial plan chart image

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $394,344 $414,061 $434,764
Direct Cost of Sales $3,100 $3,500 $3,800
Other Costs of Sales $27,996 $0 $0
Total Cost of Sales $31,096 $3,500 $3,800
Gross Margin $363,248 $410,561 $430,964
Gross Margin % 92.11% 99.15% 99.13%
Expenses
Payroll $65,415 $77,415 $89,415
Sales and Marketing and Other Expenses $600 $600 $600
Depreciation $0 $0 $0
Rent $21,804 $21,804 $21,804
Utilities $4,200 $4,200 $4,200
Insurance $1,200 $1,200 $1,200
Payroll Taxes $9,812 $11,612 $13,412
Loan Repayment $11,952 $11,952 $11,952
Janitorial Service $3,000 $3,000 $3,000
Other $6,000 $6,000 $6,000
Total Operating Expenses $123,983 $137,783 $151,583
Profit Before Interest and Taxes $239,265 $272,778 $279,381
EBITDA $239,265 $272,778 $279,381
Interest Expense $1,626 $965 $310
Taxes Incurred $71,291 $81,544 $83,721
Net Profit $166,347 $190,269 $195,350
Net Profit/Sales 42.18% 45.95% 44.93%

6.4 Projected Cash Flow

The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month, and the other the monthly cash balance. The annual cash flow figures are included here and the detailed monthly numbers are included in the appendix.

Tanning salon business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $394,344 $414,061 $434,764
Subtotal Cash from Operations $394,344 $414,061 $434,764
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 $394,344 $414,061 $434,764
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $65,415 $77,415 $89,415
Bill Payments $152,361 $146,453 $149,816
Subtotal Spent on Operations $217,776 $223,868 $239,231
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $6,900 $6,900 $6,200
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 $224,676 $230,768 $245,431
Net Cash Flow $169,668 $183,293 $189,333
Cash Balance $199,001 $382,294 $571,626

6.5 Projected Balance Sheet

The balance sheet table shows managed but sufficient growth of net worth, and a sufficiently healthy financial position. The monthly estimates are included in the appendix.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $199,001 $382,294 $571,626
Inventory $1,150 $1,298 $1,410
Other Current Assets $0 $0 $0
Total Current Assets $200,151 $383,592 $573,036
Long-term Assets
Long-term Assets $27,000 $27,000 $27,000
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $27,000 $27,000 $27,000
Total Assets $227,151 $410,592 $600,036
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $11,971 $12,043 $12,338
Current Borrowing ($6,900) ($13,800) ($20,000)
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $5,071 ($1,757) ($7,662)
Long-term Liabilities $20,000 $20,000 $20,000
Total Liabilities $25,071 $18,243 $12,338
Paid-in Capital $65,000 $65,000 $65,000
Retained Earnings ($29,267) $137,080 $327,349
Earnings $166,347 $190,269 $195,350
Total Capital $202,080 $392,349 $587,698
Total Liabilities and Capital $227,151 $410,592 $600,036
Net Worth $202,080 $392,349 $587,698

6.6 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7299.0105, Tanning salon, are shown for comparison. We expect to maintain healthy ratios for profitability, risk, and return.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 5.00% 5.00% 8.15%
Percent of Total Assets
Inventory 0.51% 0.32% 0.23% 4.93%
Other Current Assets 0.00% 0.00% 0.00% 35.03%
Total Current Assets 88.11% 93.42% 95.50% 55.79%
Long-term Assets 11.89% 6.58% 4.50% 44.21%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 2.23% -0.43% -1.28% 25.11%
Long-term Liabilities 8.80% 4.87% 3.33% 22.00%
Total Liabilities 11.04% 4.44% 2.06% 47.11%
Net Worth 88.96% 95.56% 97.94% 52.89%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 92.11% 99.15% 99.13% 100.00%
Selling, General & Administrative Expenses 48.03% 51.39% 52.54% 77.99%
Advertising Expenses 2.00% 0.00% 0.00% 1.85%
Profit Before Interest and Taxes 60.67% 65.88% 64.26% 3.35%
Main Ratios
Current 39.47 -218.35 -74.79 1.73
Quick 39.24 -217.61 -74.60 1.30
Total Debt to Total Assets 11.04% 4.44% 2.06% 6.16%
Pre-tax Return on Net Worth 117.60% 69.28% 47.49% 59.92%
Pre-tax Return on Assets 104.62% 66.20% 46.51% 15.38%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 42.18% 45.95% 44.93% n.a
Return on Equity 82.32% 48.49% 33.24% n.a
Activity Ratios
Inventory Turnover 3.90 2.86 2.81 n.a
Accounts Payable Turnover 13.66 12.17 12.17 n.a
Payment Days 27 30 30 n.a
Total Asset Turnover 1.74 1.01 0.72 n.a
Debt Ratios
Debt to Net Worth 0.12 0.05 0.02 n.a
Current Liab. to Liab. 0.20 -0.10 -0.62 n.a
Liquidity Ratios
Net Working Capital $195,080 $385,349 $580,698 n.a
Interest Coverage 147.13 282.67 901.23 n.a
Additional Ratios
Assets to Sales 0.58 0.99 1.38 n.a
Current Debt/Total Assets 2% 0% -1% n.a
Acid Test 39.24 0.00 0.00 n.a
Sales/Net Worth 1.95 1.06 0.74 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
Tanning Session 0% $32,400 $34,224 $38,928 $42,800 $38,032 $31,760 $28,848 $25,520 $26,672 $27,376 $29,296 $31,216
Lotions/swimwear/sunglasses/etc. 0% $500 $612 $675 $702 $621 $603 $585 $549 $507 $603 $633 $684
Total Sales $32,900 $34,836 $39,603 $43,502 $38,653 $32,363 $29,433 $26,069 $27,179 $27,979 $29,929 $31,900
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
Lotions/swimwear/sunglasses/etc. $250 $250 $300 $300 $250 $250 $250 $250 $250 $250 $250 $250
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $250 $250 $300 $300 $250 $250 $250 $250 $250 $250 $250 $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
Part-time Help 0% $645 $645 $645 $645 $645 $645 $645 $645 $645 $645 $645 $645
Part-time Help 0% $645 $645 $645 $645 $645 $645 $645 $645 $645 $645 $645 $645
Part-time Help 0% $0 $0 $645 $645 $645 $0 $0 $0 $0 $0 $0 $0
Owners 0% $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Total People 3 3 4 4 4 3 3 3 3 3 3 3
Total Payroll $5,290 $5,290 $5,935 $5,935 $5,935 $5,290 $5,290 $5,290 $5,290 $5,290 $5,290 $5,290

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 $32,900 $34,836 $39,603 $43,502 $38,653 $32,363 $29,433 $26,069 $27,179 $27,979 $29,929 $31,900
Direct Cost of Sales $250 $250 $300 $300 $250 $250 $250 $250 $250 $250 $250 $250
Other Costs of Sales $27,996 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $28,246 $250 $300 $300 $250 $250 $250 $250 $250 $250 $250 $250
Gross Margin $4,654 $34,586 $39,303 $43,202 $38,403 $32,113 $29,183 $25,819 $26,929 $27,729 $29,679 $31,650
Gross Margin % 14.15% 99.28% 99.24% 99.31% 99.35% 99.23% 99.15% 99.04% 99.08% 99.11% 99.16% 99.22%
Expenses
Payroll $5,290 $5,290 $5,935 $5,935 $5,935 $5,290 $5,290 $5,290 $5,290 $5,290 $5,290 $5,290
Sales and Marketing and Other Expenses $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $1,817 $1,817 $1,817 $1,817 $1,817 $1,817 $1,817 $1,817 $1,817 $1,817 $1,817 $1,817
Utilities $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350
Insurance $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Payroll Taxes 15% $794 $794 $890 $890 $890 $794 $794 $794 $794 $794 $794 $794
Loan Repayment $996 $996 $996 $996 $996 $996 $996 $996 $996 $996 $996 $996
Janitorial Service 15% $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Other $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Total Operating Expenses $10,147 $10,147 $10,888 $10,888 $10,888 $10,147 $10,147 $10,147 $10,147 $10,147 $10,147 $10,147
Profit Before Interest and Taxes ($5,493) $24,439 $28,415 $32,314 $27,515 $21,966 $19,036 $15,672 $16,782 $17,582 $19,532 $21,503
EBITDA ($5,493) $24,439 $28,415 $32,314 $27,515 $21,966 $19,036 $15,672 $16,782 $17,582 $19,532 $21,503
Interest Expense $162 $157 $152 $148 $143 $138 $133 $128 $124 $119 $114 $109
Taxes Incurred ($1,696) $7,285 $8,479 $9,650 $8,212 $6,549 $5,671 $4,663 $4,998 $5,239 $5,826 $6,418
Net Profit ($3,958) $16,998 $19,784 $22,516 $19,160 $15,280 $13,232 $10,881 $11,661 $12,224 $13,593 $14,976
Net Profit/Sales -12.03% 48.79% 49.96% 51.76% 49.57% 47.21% 44.96% 41.74% 42.91% 43.69% 45.42% 46.95%

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 $32,900 $34,836 $39,603 $43,502 $38,653 $32,363 $29,433 $26,069 $27,179 $27,979 $29,929 $31,900
Subtotal Cash from Operations $32,900 $34,836 $39,603 $43,502 $38,653 $32,363 $29,433 $26,069 $27,179 $27,979 $29,929 $31,900
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 $32,900 $34,836 $39,603 $43,502 $38,653 $32,363 $29,433 $26,069 $27,179 $27,979 $29,929 $31,900
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 $5,290 $5,290 $5,935 $5,935 $5,935 $5,290 $5,290 $5,290 $5,290 $5,290 $5,290 $5,290
Bill Payments $1,927 $31,651 $12,341 $13,656 $15,669 $13,249 $11,514 $10,660 $10,626 $9,986 $10,234 $10,849
Subtotal Spent on Operations $7,217 $36,941 $18,276 $19,591 $21,604 $18,539 $16,804 $15,950 $15,916 $15,276 $15,524 $16,139
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 $575 $575 $575 $575 $575 $575 $575 $575 $575 $575 $575 $575
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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 $7,792 $37,516 $18,851 $20,166 $22,179 $19,114 $17,379 $16,525 $16,491 $15,851 $16,099 $16,714
Net Cash Flow $25,108 ($2,680) $20,752 $23,335 $16,474 $13,249 $12,054 $9,544 $10,688 $12,128 $13,830 $15,186
Cash Balance $54,441 $51,761 $72,512 $95,848 $112,322 $125,571 $137,625 $147,169 $157,857 $169,985 $183,815 $199,001
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 $29,333 $54,441 $51,761 $72,512 $95,848 $112,322 $125,571 $137,625 $147,169 $157,857 $169,985 $183,815 $199,001
Inventory $250 $1,000 $750 $450 $1,150 $900 $650 $400 $1,150 $900 $650 $400 $1,150
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $29,583 $55,441 $52,511 $72,962 $96,998 $113,222 $126,221 $138,025 $148,319 $158,757 $170,635 $184,215 $200,151
Long-term Assets
Long-term Assets $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000
Total Assets $56,583 $82,441 $79,511 $99,962 $123,998 $140,222 $153,221 $165,025 $175,319 $185,757 $197,635 $211,215 $227,151
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 $850 $31,241 $11,888 $13,131 $15,226 $12,864 $11,158 $10,305 $10,293 $9,645 $9,874 $10,436 $11,971
Current Borrowing $0 ($575) ($1,150) ($1,725) ($2,300) ($2,875) ($3,450) ($4,025) ($4,600) ($5,175) ($5,750) ($6,325) ($6,900)
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $850 $30,666 $10,738 $11,406 $12,926 $9,989 $7,708 $6,280 $5,693 $4,470 $4,124 $4,111 $5,071
Long-term Liabilities $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
Total Liabilities $20,850 $50,666 $30,738 $31,406 $32,926 $29,989 $27,708 $26,280 $25,693 $24,470 $24,124 $24,111 $25,071
Paid-in Capital $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000
Retained Earnings ($29,267) ($29,267) ($29,267) ($29,267) ($29,267) ($29,267) ($29,267) ($29,267) ($29,267) ($29,267) ($29,267) ($29,267) ($29,267)
Earnings $0 ($3,958) $13,039 $32,823 $55,339 $74,500 $89,779 $103,012 $113,892 $125,554 $137,778 $151,371 $166,347
Total Capital $35,733 $31,775 $48,772 $68,556 $91,072 $110,233 $125,512 $138,745 $149,625 $161,287 $173,511 $187,104 $202,080
Total Liabilities and Capital $56,583 $82,441 $79,511 $99,962 $123,998 $140,222 $153,221 $165,025 $175,319 $185,757 $197,635 $211,215 $227,151
Net Worth $35,733 $31,775 $48,772 $68,556 $91,072 $110,233 $125,512 $138,745 $149,625 $161,287 $173,511 $187,104 $202,080

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