Youth Sports Nonprofit Business Plan

YouthSports

Executive Summary

Twenty-five percent of Richmond Metro youth participated in organized sports last year, compared with 85 to 90 percent in the suburbs, according to a recent State University report entitled Richmond's Youth Sport Need Assessment. Currently, there are 40,000 children in the Richmond Metro area between the ages of 6 to 14. In contrast to the metro area, the suburbs have a full array of youth sports with strong financial support. This late start for urban children, especially urban girls, in organized sports robs them of the opportunity for physical activity, coaching, being part of a team, learning skills, and substantial time away from "negative recreation" (drugs, violence or sexual activities).

Clinical studies also show that sports and recreation programs can help youth establish lifelong, healthy, physical activity patterns. Regular physical activity can ward off life-threatening diseases; reduce feelings of depression and anxiety; help control weight and obesity; and build and maintain healthy bones, muscles, and joints, according to the President's Council on Physical Fitness.

The children in the city's core must have the opportunity for a successful start in education and sport regardless of age, race, gender, family composition, income or community. In response to this significant disparity, YouthSports will be created to provide the sports program necessary for Richmond children to have equal opportunity for organized sports.

Thanks to a three-year matching grant from The John Ford Stevenson Foundation (JFSF), YouthSports and several corporate partners plan to utilize organized sports and physical activity programs to promote healthy development in youth.

The JFSF, based in San Francisco, CA, is the nation's largest philanthropy devoted exclusively to health and health care. It concentrates its grantmaking in three goal areas: to assure that all Americans have access to basic health care at reasonable cost; to improve care and support for people with chronic health conditions; and to reduce the personal, social and economic harm caused by substance abuse; tobacco, alcohol, and illicit drugs.

Schools and health care centers will host sport registration. The JFSF renewable matching grant is based on the concept that local funding sources have the clearest understanding of their communities' needs. With matching contributions from local partners, the project will receive substantial funding.

Collaborating partners include:

With this base of support, YouthSports will raise additional money from program sponsors and fundraising campaigns.

 

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1.1 Objectives

1.2 Mission

The mission of YouthSports is to create a youth sport program in the Richmond Metro area increasing both sport participation rates and healthy development of the area's youth.

1.3 Keys to Success

Organization Summary

YouthSports will be a private, non-profit, youth sports program serving children, ages 6-14, in the Richmond Metro area. The focus of the program is to promote youth sport participation, promote healthy development in youth, and increase youth access to health care.

YouthSports has rented office space near the city cent park system. Outdoor sports will be played on public school and park property. Indoor sports will be played in public school gyms.

2.1 Start-up Summary

Start-up costs and initial financing are shown on the following tables and chart.

 

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Start-up Funding

Start-up Expenses to Fund

$342,000

Start-up Assets to Fund

$518,000

Total Funding Required

$860,000

Assets

Non-cash Assets from Start-up

$250,000

Cash Requirements from Start-up

$268,000

Additional Cash Raised

$0

Cash Balance on Starting Date

$268,000

Total Assets

$518,000

Liabilities and Capital

Liabilities

Current Borrowing

$0

Long-term Liabilities

$0

Accounts Payable (Outstanding Bills)

$0

Other Current Liabilities (interest-free)

$0

Total Liabilities

$0

Capital

Planned Investment

JFSF

$430,000

Blue Shield/Blue Cross

$100,000

Templex Corporation

$25,000

A.I. Kaufman and Sons

$25,000

PriceRight Supermarkets

$80,000

Avion Computers

$50,000

The Richmond Mail

$50,000

Richmond Bank

$50,000

Rider Corporation

$50,000

Other

$0

Additional Investment Requirement

$0

Total Planned Investment

$860,000

Loss at Start-up (Start-up Expenses)

($342,000)

Total Capital

$518,000

Total Capital and Liabilities

$518,000

Total Funding

$860,000

 

Start-up

Requirements

Start-up Expenses

Legal

$5,000

Stationery etc.

$5,000

Brochures

$20,000

Promotion

$100,000

Insurance

$10,000

Rent

$2,000

Research and Development

$0

Sport Equipment

$100,000

Office Equipment/Software

$100,000

Other

$0

Total Start-up Expenses

$342,000

Start-up Assets

Cash Required

$268,000

Other Current Assets

$50,000

Long-term Assets

$200,000

Total Assets

$518,000

Total Requirements

$860,000

Services

YouthSports will offer the following sports during the year:

Market Analysis Summary

There are 40,000 children in the Richmond Metro area between six to 14 years of age. The age group percentages break down as follows:

Currently, only 10% of 6 -11 year olds in the Richmond Metro area participate in organized sports. More importantly, only 5% of girls in that age group are involved in sports. The current age break down provides YouthSports with an excellent opportunity to impact half of our target group at the youngest ages. This will have a tremendous impact on the success of the program over the next five years. 

It is also important to note that there are over 25,000 children in the Richmond Metro area between the ages of two to five. These children will be entering the YouthSports program within the next three years.

4.1 Market Segmentation

The 2-5 and 6-8 age groups represent over 70% of the children that YouthSports will serve over the next three years. It is critical that the program is prepared to manage the influx of these young children.

 

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Market Analysis

Year 1

Year 2

Year 3

Year 4

Year 5

Potential Customers

Growth

CAGR

Children 2-5 years old

8%

25,000

27,000

29,160

31,493

34,012

8.00%

Children 6-8 years old

10%

20,000

22,000

24,200

26,620

29,282

10.00%

Children 9-11 years old

10%

6,000

6,600

7,260

7,986

8,785

10.00%

Children 12-14 years old

8%

14,000

15,120

16,330

17,636

19,047

8.00%

Total

8.81%

65,000

70,720

76,950

83,735

91,126

8.81%

Strategy and Implementation Summary

It is critical that YouthSports takes a proactive strategy in promoting its program in the community as well as creating a strong fund-raising program. To accomplish these goals, YouthSports will have two groups overseeing the program's growth and development. The first will be a 12-member Program Services Group comprising of community members. This group will provide oversight of the program's service delivery to the community and will also be responsible for building community support for YouthSports. The second group will be a 10-member Finance Group that will have Richmond business representation. The Finance Group will have oversight over the program's fiscal operation and fund-raising activities.

The next step will be to recruit the volunteer coaches and facility supervisors for each season and use this group to promote the program at local schools. Coaches and facility supervisors will be recruited by using the community churches and civic organizations. In addition, the Richmond Police Department is initiating a new program to recruit volunteer youth coaches from their own ranks. YouthSports is also working with the Community Service Program of State University to recruit college students as coaches. They will receive three university credits hours for their participation with YouthSports.

Mobilizing a coaching/supervision base will provide YouthSports the people power necessary to get its message to the entire community.

Sign-up for the program will be simplified by providing participation forms at each school and at the larger community markets. At each location, there will be a collection kiosk where the forms can be dropped off.

5.1 Competitive Edge

YouthSports' competitive edge is twofold. One is the support of the community's public resources to build a successful sports program that will have a positive impact on the attitude and health of the area's children.

The school district has committed to strongly pushing the sports program. Each of the area's elementary and middle schools will choose a school team name. The name will then be used by the school teams. Sport participation will be promoted in the classroom and volunteer coaches will be allowed to visit classrooms and speak to the children.

The city park system has been pivotal in obtaining sports equipment for the program at a discounted rate, saving the program a large expense.

The program's second advantage is the support of businesses to have a real impact on the metro youth. The revitalization of the Richmond's urban center can only be built upon the improved quality of life of metro residents. The current demographics, with the majority of metro children under the age of six, provides a unique opportunity to have a dynamic impact on the area's youth. Richmond businesses are lining up to become sport sponsors and school team sponsors.

5.2 Fundraising Strategy

YouthSports will be directing its fund-raising program at two groups. One will be the metro area parents, the other will be Richmond's businesses. Being successful with both groups is key to the program's future.

 

5.2.1 Funding Forecast

The following is the funding forecast for three years.

 

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Funding Forecast

Year 1

Year 2

Year 3

Funding

Sign-Up Fees

$960,000

$1,100,000

$1,220,000

Business Sponsorships

$560,000

$660,000

$760,000

Fundraising

$120,000

$120,000

$120,000

Other

$0

$0

$0

Total Funding

$1,640,000

$1,880,000

$2,100,000

Direct Cost of Funding

Year 1

Year 2

Year 3

Sign-Up Fees

$0

$0

$0

Business Sponsorships

$12,000

$15,000

$18,000

Fundraising

$12,000

$12,000

$12,000

Other

$0

$0

$0

Subtotal Cost of Funding

$24,000

$27,000

$30,000

Management Summary

YouthSports will establish a team to manage the day to day operation of the program.

6.1 Personnel Plan

The program team will have the following positions:

 

Personnel Plan

Year 1

Year 2

Year 3

Director

$36,000

$39,000

$42,000

Assistant Director

$31,200

$34,000

$37,000

Volunteer Coordinator

$30,000

$33,000

$36,000

Sponsorship/Fundraising Developer

$33,600

$37,000

$40,000

Facility Coordinator

$30,000

$33,000

$36,000

Coordinator of Game Officials

$28,800

$31,000

$34,000

Area Supervisors (3)

$72,000

$80,000

$90,000

Office Manager

$30,000

$33,000

$36,000

Clerical Staff (2)

$38,400

$41,000

$44,000

Total People

12

12

12

Total Payroll

$330,000

$361,000

$395,000

Financial Plan

The following is the Financial Plan for YouthSports for three years.

7.1 Break-even Analysis

The following table and chart show the Break-even Analysis for YouthSports.

 

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Break-even Analysis

Monthly Revenue Break-even

$140,548

Assumptions:

Average Percent Variable Cost

1%

Estimated Monthly Fixed Cost

$138,492

7.2 Projected Surplus or Deficit

The following is the Surplus or Deficit of the program's operation for three years.

 

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Surplus and Deficit

Year 1

Year 2

Year 3

Funding

$1,640,000

$1,880,000

$2,100,000

Direct Cost

$24,000

$27,000

$30,000

Other Production Expenses

$0

$0

$0

Total Direct Cost

$24,000

$27,000

$30,000

Gross Surplus

$1,616,000

$1,853,000

$2,070,000

Gross Surplus %

98.54%

98.56%

98.57%

Expenses

Payroll

$330,000

$361,000

$395,000

Sales and Marketing and Other Expenses

$1,196,000

$1,290,000

$1,445,000

Depreciation

$0

$0

$0

Leased Equipment

$0

$0

$0

Utilities

$2,400

$2,400

$2,400

Insurance

$60,000

$60,000

$60,000

Rent

$24,000

$24,000

$24,000

Payroll Taxes

$49,500

$54,150

$59,250

Other

$0

$0

$0

Total Operating Expenses

$1,661,900

$1,791,550

$1,985,650

Surplus Before Interest and Taxes

($45,900)

$61,450

$84,350

EBITDA

($45,900)

$61,450

$84,350

Interest Expense

$0

$0

$0

Taxes Incurred

$0

$0

$0

Net Surplus

($45,900)

$61,450

$84,350

Net Surplus/Funding

-2.80%

3.27%

4.02%

7.3 Projected Cash Flow

The following is the Projected Cash Flow of the program's operation for three years.

 

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Pro Forma Cash Flow

Year 1

Year 2

Year 3

Cash Received

Cash from Operations

Cash Funding

$1,640,000

$1,880,000

$2,100,000

Subtotal Cash from Operations

$1,640,000

$1,880,000

$2,100,000

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

$1,640,000

$1,880,000

$2,100,000

Expenditures

Year 1

Year 2

Year 3

Expenditures from Operations

Cash Spending

$330,000

$361,000

$395,000

Bill Payments

$1,243,453

$1,450,199

$1,607,245

Subtotal Spent on Operations

$1,573,453

$1,811,199

$2,002,245

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

$1,573,453

$1,811,199

$2,002,245

Net Cash Flow

$66,548

$68,801

$97,755

Cash Balance

$334,547

$403,349

$501,104

7.4 Projected Balance Sheet

The following is the Projected Balance Sheet of the program's operation for three years.

 

Pro Forma Balance Sheet

Year 1

Year 2

Year 3

Assets

Current Assets

Cash

$334,547

$403,349

$501,104

Other Current Assets

$50,000

$50,000

$50,000

Total Current Assets

$384,547

$453,349

$551,104

Long-term Assets

Long-term Assets

$200,000

$200,000

$200,000

Accumulated Depreciation

$0

$0

$0

Total Long-term Assets

$200,000

$200,000

$200,000

Total Assets

$584,547

$653,349

$751,104

Liabilities and Capital

Year 1

Year 2

Year 3

Current Liabilities

Accounts Payable

$112,448

$119,799

$133,204

Current Borrowing

$0

$0

$0

Other Current Liabilities

$0

$0

$0

Subtotal Current Liabilities

$112,448

$119,799

$133,204

Long-term Liabilities

$0

$0

$0

Total Liabilities

$112,448

$119,799

$133,204

Paid-in Capital

$860,000

$860,000

$860,000

Accumulated Surplus/Deficit

($342,000)

($387,900)

($326,450)

Surplus/Deficit

($45,900)

$61,450

$84,350

Total Capital

$472,100

$533,550

$617,900

Total Liabilities and Capital

$584,548

$653,349

$751,104

Net Worth

$472,100

$533,550

$617,900

7.5 Standard Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7999, Amusement and Recreation, are shown for comparison.

 

Ratio Analysis

Year 1

Year 2

Year 3

Industry Profile

Funding Growth

0.00%

14.63%

11.70%

4.07%

Percent of Total Assets

Other Current Assets

8.55%

7.65%

6.66%

33.94%

Total Current Assets

65.79%

69.39%

73.37%

42.54%

Long-term Assets

34.21%

30.61%

26.63%

57.46%

Total Assets

100.00%

100.00%

100.00%

100.00%

Current Liabilities

19.24%

18.34%

17.73%

24.50%

Long-term Liabilities

0.00%

0.00%

0.00%

23.36%

Total Liabilities

19.24%

18.34%

17.73%

47.86%

Net Worth

80.76%

81.66%

82.27%

52.14%

Percent of Funding

Funding

100.00%

100.00%

100.00%

100.00%

Gross Surplus

98.54%

98.56%

98.57%

100.00%

Selling, General & Administrative Expenses

101.34%

95.30%

94.55%

68.43%

Advertising Expenses

2.20%

2.13%

2.14%

3.66%

Surplus Before Interest and Taxes

-2.80%

3.27%

4.02%

2.96%

Main Ratios

Current

3.42

3.78

4.14

1.13

Quick

3.42

3.78

4.14

0.70

Total Debt to Total Assets

19.24%

18.34%

17.73%

56.09%

Pre-tax Return on Net Worth

-9.72%

11.52%

13.65%

4.33%

Pre-tax Return on Assets

-7.85%

9.41%

11.23%

9.87%

Additional Ratios

Year 1

Year 2

Year 3

Net Surplus Margin

-2.80%

3.27%

4.02%

n.a

Return on Equity

-9.72%

11.52%

13.65%

n.a

Activity Ratios

Accounts Payable Turnover

12.06

12.17

12.17

n.a

Payment Days

27

29

28

n.a

Total Asset Turnover

2.81

2.88

2.80

n.a

Debt Ratios

Debt to Net Worth

0.24

0.22

0.22

n.a

Current Liab. to Liab.

1.00

1.00

1.00

n.a

Liquidity Ratios

Net Working Capital

$272,100

$333,550

$417,900

n.a

Interest Coverage

0.00

0.00

0.00

n.a

Additional Ratios

Assets to Funding

0.36

0.35

0.36

n.a

Current Debt/Total Assets

19%

18%

18%

n.a

Acid Test

3.42

3.78

4.14

n.a

Funding/Net Worth

3.47

3.52

3.40

n.a

Dividend Payout

0.00

0.00

0.00

n.a

Appendix

 

Funding 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

Funding

Sign-Up Fees

0%

$50,000

$50,000

$120,000

$120,000

$120,000

$120,000

$60,000

$70,000

$70,000

$60,000

$60,000

$60,000

Business Sponsorships

0%

$50,000

$50,000

$50,000

$50,000

$50,000

$50,000

$50,000

$50,000

$50,000

$50,000

$30,000

$30,000

Fundraising

0%

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

Other

0%

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Funding

$110,000

$110,000

$180,000

$180,000

$180,000

$180,000

$120,000

$130,000

$130,000

$120,000

$100,000

$100,000

Direct Cost of Funding

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Sign-Up Fees

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Business Sponsorships

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

Fundraising

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

Other

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Subtotal Cost of Funding

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

 

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

Director

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

Assistant Director

0%

$2,600

$2,600

$2,600

$2,600

$2,600

$2,600

$2,600

$2,600

$2,600

$2,600

$2,600

$2,600

Volunteer Coordinator

0%

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

Sponsorship/Fundraising Developer

0%

$2,800

$2,800

$2,800

$2,800

$2,800

$2,800

$2,800

$2,800

$2,800

$2,800

$2,800

$2,800

Facility Coordinator

0%

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

Coordinator of Game Officials

0%

$2,400

$2,400

$2,400

$2,400

$2,400

$2,400

$2,400

$2,400

$2,400

$2,400

$2,400

$2,400

Area Supervisors (3)

0%

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

Office Manager

0%

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

Clerical Staff (2)

0%

$3,200

$3,200

$3,200

$3,200

$3,200

$3,200

$3,200

$3,200

$3,200

$3,200

$3,200

$3,200

Total People

12

12

12

12

12

12

12

12

12

12

12

12

Total Payroll

$27,500

$27,500

$27,500

$27,500

$27,500

$27,500

$27,500

$27,500

$27,500

$27,500

$27,500

$27,500

 

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

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

Other

0

0

0

0

0

0

0

0

0

0

0

0

 

Surplus and Deficit

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Funding

$110,000

$110,000

$180,000

$180,000

$180,000

$180,000

$120,000

$130,000

$130,000

$120,000

$100,000

$100,000

Direct Cost

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

Other Production Expenses

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Direct Cost

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

Gross Surplus

$108,000

$108,000

$178,000

$178,000

$178,000

$178,000

$118,000

$128,000

$128,000

$118,000

$98,000

$98,000

Gross Surplus %

98.18%

98.18%

98.89%

98.89%

98.89%

98.89%

98.33%

98.46%

98.46%

98.33%

98.00%

98.00%

Expenses

Payroll

$27,500

$27,500

$27,500

$27,500

$27,500

$27,500

$27,500

$27,500

$27,500

$27,500

$27,500

$27,500

Sales and Marketing and Other Expenses

$3,000

$73,000

$103,000

$103,000

$123,000

$123,000

$133,000

$133,000

$123,000

$73,000

$103,000

$103,000

Depreciation

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Leased Equipment

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Utilities

$200

$200

$200

$200

$200

$200

$200

$200

$200

$200

$200

$200

Insurance

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

Rent

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

Payroll Taxes

15%

$4,125

$4,125

$4,125

$4,125

$4,125

$4,125

$4,125

$4,125

$4,125

$4,125

$4,125

$4,125

Other

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Operating Expenses

$41,825

$111,825

$141,825

$141,825

$161,825

$161,825

$171,825

$171,825

$161,825

$111,825

$141,825

$141,825

Surplus Before Interest and Taxes

$66,175

($3,825)

$36,175

$36,175

$16,175

$16,175

($53,825)

($43,825)

($33,825)

$6,175

($43,825)

($43,825)

EBITDA

$66,175

($3,825)

$36,175

$36,175

$16,175

$16,175

($53,825)

($43,825)

($33,825)

$6,175

($43,825)

($43,825)

Interest Expense

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Taxes Incurred

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Net Surplus

$66,175

($3,825)

$36,175

$36,175

$16,175

$16,175

($53,825)

($43,825)

($33,825)

$6,175

($43,825)

($43,825)

Net Surplus/Funding

60.16%

-3.48%

20.10%

20.10%

8.99%

8.99%

-44.85%

-33.71%

-26.02%

5.15%

-43.83%

-43.83%

 

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 Funding

$110,000

$110,000

$180,000

$180,000

$180,000

$180,000

$120,000

$130,000

$130,000

$120,000

$100,000

$100,000

Subtotal Cash from Operations

$110,000

$110,000

$180,000

$180,000

$180,000

$180,000

$120,000

$130,000

$130,000

$120,000

$100,000

$100,000

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

$110,000

$110,000

$180,000

$180,000

$180,000

$180,000

$120,000

$130,000

$130,000

$120,000

$100,000

$100,000

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

$27,500

$27,500

$27,500

$27,500

$27,500

$27,500

$27,500

$27,500

$27,500

$27,500

$27,500

$27,500

Bill Payments

$544

$18,658

$87,325

$116,325

$116,992

$136,325

$136,658

$146,325

$145,992

$134,658

$87,325

$116,325

Subtotal Spent on Operations

$28,044

$46,158

$114,825

$143,825

$144,492

$163,825

$164,158

$173,825

$173,492

$162,158

$114,825

$143,825

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

$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

$28,044

$46,158

$114,825

$143,825

$144,492

$163,825

$164,158

$173,825

$173,492

$162,158

$114,825

$143,825

Net Cash Flow

$81,956

$63,842

$65,175

$36,175

$35,508

$16,175

($44,158)

($43,825)

($43,492)

($42,158)

($14,825)

($43,825)

Cash Balance

$349,956

$413,798

$478,973

$515,148

$550,656

$566,831

$522,672

$478,847

$435,356

$393,197

$378,372

$334,547

 

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

$268,000

$349,956

$413,798

$478,973

$515,148

$550,656

$566,831

$522,672

$478,847

$435,356

$393,197

$378,372

$334,547

Other Current Assets

$50,000

$50,000

$50,000

$50,000

$50,000

$50,000

$50,000

$50,000

$50,000

$50,000

$50,000

$50,000

$50,000

Total Current Assets

$318,000

$399,956

$463,798

$528,973

$565,148

$600,656

$616,831

$572,672

$528,847

$485,356

$443,197

$428,372

$384,547

Long-term Assets

Long-term Assets

$200,000

$200,000

$200,000

$200,000

$200,000

$200,000

$200,000

$200,000

$200,000

$200,000

$200,000

$200,000

$200,000

Accumulated Depreciation

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Long-term Assets

$200,000

$200,000

$200,000

$200,000

$200,000

$200,000

$200,000

$200,000

$200,000

$200,000

$200,000

$200,000

$200,000

Total Assets

$518,000

$599,956

$663,798

$728,973

$765,148

$800,656

$816,831

$772,672

$728,847

$685,356

$643,197

$628,372

$584,547

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

$15,781

$83,448

$112,448

$112,448

$131,781

$131,781

$141,447

$141,448

$131,781

$83,448

$112,448

$112,448

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

$15,781

$83,448

$112,448

$112,448

$131,781

$131,781

$141,447

$141,448

$131,781

$83,448

$112,448

$112,448

Long-term Liabilities

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Liabilities

$0

$15,781

$83,448

$112,448

$112,448

$131,781

$131,781

$141,447

$141,448

$131,781

$83,448

$112,448

$112,448

Paid-in Capital

$860,000

$860,000

$860,000

$860,000

$860,000

$860,000

$860,000

$860,000

$860,000

$860,000

$860,000

$860,000

$860,000

Accumulated Surplus/Deficit

($342,000)

($342,000)

($342,000)

($342,000)

($342,000)

($342,000)

($342,000)

($342,000)

($342,000)

($342,000)

($342,000)

($342,000)

($342,000)

Surplus/Deficit

$0

$66,175

$62,350

$98,525

$134,700

$150,875

$167,050

$113,225

$69,400

$35,575

$41,750

($2,075)

($45,900)

Total Capital

$518,000

$584,175

$580,350

$616,525

$652,700

$668,875

$685,050

$631,225

$587,400

$553,575

$559,750

$515,925

$472,100

Total Liabilities and Capital

$518,000

$599,956

$663,798

$728,973

$765,148

$800,656

$816,831

$772,673

$728,848

$685,356

$643,198

$628,373

$584,548

Net Worth

$518,000

$584,175

$580,350

$616,525

$652,700

$668,875

$685,050

$631,225

$587,400

$553,575

$559,750

$515,925

$472,100