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Legal Page
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Table of Contents

1.0 Executive Summary.....................................................................................................................1

1.1 Mission...........................................................................................................................................1
1.2 Objectives....................................................................................................................................1
Chart: Highlights...........................................................................................................................2
2.0 Company Summary......................................................................................................................2
2.1 Company Ownership................................................................................................................2
2.2 Start-up Summary....................................................................................................................3
Table: Start-up Funding..............................................................................................................3
Chart: Start-up..............................................................................................................................4
Table: Start-up...............................................................................................................................4
2.3 Company Locations and Facilities.......................................................................................5
3.0 Services.............................................................................................................................................5
4.0 Market Analysis Summary.........................................................................................................6
4.1 Market Segmentation..............................................................................................................6
Table: Market Analysis................................................................................................................6
Chart: Market Analysis (Pie).....................................................................................................7
5.0 Strategy and Implementation Summary.............................................................................7
5.1 Competitive Edge......................................................................................................................7
5.2 Sales Forecast............................................................................................................................8
Chart: Sales by Year....................................................................................................................8
Table: Sales Forecast...................................................................................................................8
Chart: Sales Monthly...................................................................................................................9
6.0 Management Summary...............................................................................................................9
6.1 Personnel Plan..........................................................................................................................10
Table: Personnel..........................................................................................................................10
7.0 Financial Plan................................................................................................................................11
7.0 Financial Plan................................................................................................................................11
7.1 Break-even Analysis...............................................................................................................11
Table: Break-even Analysis.....................................................................................................11
Chart: Break-even Analysis.....................................................................................................11
7.2 Projected Profit and Loss.....................................................................................................12
Chart: Profit Monthly.................................................................................................................12
Chart: Profit Yearly.....................................................................................................................12
Table: Profit and Loss................................................................................................................13
7.3 Projected Cash Flow...............................................................................................................14
7.3 Projected Cash Flow...............................................................................................................14
Table: Cash Flow.........................................................................................................................14
Chart: Cash...................................................................................................................................15
7.4 Projected Balance Sheet......................................................................................................16
Table: Balance Sheet.................................................................................................................16
7.5 Business Ratios........................................................................................................................17
7.5 Business Ratios........................................................................................................................17
Table: Ratios.................................................................................................................................17
Table: Sales Forecast...........................................................................................................................1
Page 1

Table of Contents

Table:
Table:
Table:
Table:
Table:
Table:
Table:
Table:
Table:
Table:

Personnel....................................................................................................................................2
Personnel....................................................................................................................................2
General Assumptions.............................................................................................................3
General Assumptions.............................................................................................................3
Profit and Loss..........................................................................................................................4
Profit and Loss..........................................................................................................................4
Cash Flow...................................................................................................................................5
Cash Flow...................................................................................................................................5
Balance Sheet...........................................................................................................................6
Balance Sheet...........................................................................................................................6

Page 2

Ladies Only Fitness

1.0 Executive Summary

Ladies Only Fitness is a women-only health club that creates a personalized environment for
women to pursue their fitness goals. We have the best equipment and the best training
program in this arena. We prepare our clients for success! We have the best weightmanagement program. Positive Lifestyle Systems is a truly responsible, effective, weightmanagement program. We offer this program with confidence. It is unbeatable.
Ladies Only Fitness' focus is the urban professional woman who has a very active life and very
little time to spend on fitness. We also focus on young mothers who are looking for a fitness
environment that is focused on their unique needs.
Ladies Only Fitness is located in the Southtowne Center in southwest Mapleton. The area is
upscale and affluent and has a number of health clubs, but none that serve women only.
Currently, there are 80,000 residents living in southwest Mapleton. The Southtowne Center is
the central shopping facility in the area and is conveniently located, with plenty of parking.
Joan Sullivan, co-owner of Ladies Only Fitness, has worked in the area's clubs for the past
fifteen years. She has created Ladies Only Fitness in order to fill a need she has seen in fitness
services provided to women over the years.
From the selection of workout machines to the organization of the child care center, Ladies Only
Fitness will create a supportive experience that will bring in new members by word of mouth.
1.1 Mission
The mission of Ladies Only Fitness is the following:

Create a woman-focused workout environment that promotes confidence in our clients.

Promote the success of our clients in meeting their fitness goals.
Celebrate their successes and help them set new fitness goals.

1.2 Objectives
The objectives of Ladies Only Fitness are the following:

Exceed 60% class capacity by the end of the first year of operation.
Acquire 200+ memberships by the end of the first year of operation.
Increase membership by 20% by the end of the second year of operation.

Page 1

Ladies Only Fitness

Chart: Highlights

2.0 Company Summary

Ladies Only Fitness is a women only fitness club that offers fitness classes, exercise
equipment, a weight reduction program, and a childcare center. The program will operate as a
general partnership. Joan Sullivan will manage the daily operation of Ladies Only Fitness.
Marge Williamson will have accounting oversight responsibilities.
2.1 Company Ownership
Ladies Only Fitness is co-owned by Joan Sullivan and Marge Williamson.

Page 2

Ladies Only Fitness

2.2 Start-up Summary

The start-up expenses for the Ladies Only Fitness is focused primarily on equipment and
exercise surfaces for the classes. Joan Sullivan will invest $30,000. Marge Williamson will
invest $70,000. In addition, club will secure a $60,000 long-term loan.
Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required

$94,200
$65,800
$160,000

Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

$0
$65,800
$0
$65,800
$65,800

Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities

$0
$60,000
$0
$0
$60,000

Capital
Planned Investment
Joan Sullivan
Marge Williamson
Additional Investment Requirement
Total Planned Investment

$30,000
$70,000
$0
$100,000

Loss at Start-up (Start-up Expenses)

Total Capital

($94,200)
$5,800

Total Capital and Liabilities

Total Funding

$65,800
$160,000

Page 3

Ladies Only Fitness

Chart: Start-up

Table: Start-up

Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Brochures
Insurance
Rent
Child Care Setup
Leased Equipment
Total Start-up Expenses

$500
$200
$1,000
$500
$2,000
$10,000
$80,000
$94,200

Start-up Assets
Cash Required
Other Current Assets
Long-term Assets
Total Assets

$65,800
$0
$0
$65,800

Total Requirements

$160,000

Page 4

Ladies Only Fitness

2.3 Company Locations and Facilities

Ladies Only Fitness is located in the Southtowne Center in southwest Mapleton. The club
occupies a 5,500 square foot storefront. The facility has one primary equipment room adjacent
to the child care center. The club also has three exercise rooms. The facility can
accommodate 110 people.
3.0 Services
Ladies Only Fitness' membership services are the following:
Ladies Only Fitness has a professional personal training staff. Our personal trainers provide the
knowledge and expertise in designing and implementing a fitness program. Each trainer is
AFLCA certified and has standard first aid and CPR.
Beyond that each trainer has specific qualifications and training that enables them to provide
each client with an individually designed program.
Ladies Only Fitness offers a large selection of sophisticated equipment bio-mechanically
designed for a woman's body.

Treadmills (10);
Stepmills;
Steppers;
Upright and recumbent bikes;
Elliptical trainers;
Stairmaster;
Rower;
Bodytrek;
Gravitron;
Cross aerobic trainers.

Ladies Only Fitness provides a floating foam floor for a variety of aerobic, step, muscle
conditioning and yoga classes.
The club also has a child care center to serve clients that would otherwise be unable to workout
if they cannot find a babysitter, or be able to workout without the stress of watching over
children.
The membership fee is $150 a month and the personal trainer fee is $25/hr.

Page 5

Ladies Only Fitness

4.0 Market Analysis Summary

Mapleton is a city on the move. The population has grown by 10% each year for the past three
years. The current population of Mapleton is 600,000.
Most importantly, the growth has been fueled by the increased employment in the city's hightech companies. This has attracted a type of professional that is the target customer for the
Ladies Only Fitness. The women we are targeting are looking for a different type of fitness club
experience. At Ladies Only Fitness, they will be the total focus of our staff.
Another target group is young mothers who are looking for a club that will fit their needs and
keep their children close. Ladies Only Fitness has designed the facility so that the child care
center can be seen by anyone working in the main exercise room. We believe that changes like
that will be seen as welcome extras that will bring new members.
4.1 Market Segmentation
Ladies Only Fitness will focus on two customer groups:

Young urban professional women;

Young mothers with children (ages new born to three years of age).

Table: Market Analysis

Market Analysis
Potential Customers
Young Urban Professional
Women
Young Mothers
Total

Year 1

Year 2

Year 3

Year 4

Year 5

10%

12,000

13,200

14,520

15,972

17,569

10.00%

10%
10.00%

5,000
17,000

5,500
18,700

6,050
20,570

6,655
22,627

7,321
24,890

10.00%
10.00%

Growth

CAGR

Page 6

Ladies Only Fitness

Chart: Market Analysis (Pie)

5.0 Strategy and Implementation Summary

Ladies Only Fitness will market through the numerous beauty salons, tanning salons and
women's boutiques located in southwest Mapleton. The club will market to young mothers
through clothing shops catering to young children. Ladies Only Fitness will offer the first
membership month free.
5.1 Competitive Edge
The competitive advantage of Ladies Only Fitness is the environment that is created in the
facility. Women feel more relaxed and comfortable in a program that is focused solely on
them. In addition, we have designed the childcare center to be visible from the main workout
floor. A young mother can watch her child play in the center while working out.

Page 7

Ladies Only Fitness

5.2 Sales Forecast

Ladies Only Fitness anticipates that sales will be slow for the first and second month of
operation, due to our "first month free" promotion. After that point, sales will increase as new
members pay for their membership fees.
The following is the sales forecast for three years.

Chart: Sales by Year

Table: Sales Forecast

Sales Forecast
Year 1

Year 2

Year 3

$124,000
$120,000
$244,000

$150,000
$150,000
$300,000

$190,000
$190,000
$380,000

Year 1
$0
$0
$0

Year 2
$0
$0
$0

Year 3
$0
$0
$0

Sales
Memberships
Personal Trainers
Total Sales
Direct Cost of Sales
Memberships
Personal Trainers
Subtotal Direct Cost of Sales

Page 8

Ladies Only Fitness

Chart: Sales Monthly

6.0 Management Summary

Joan Sullivan will be the operations manager and lead trainer for Ladies Only Fitness. Joan has
been a fixture in the Mapleton fitness community for the past fifteen years. She has been the
manager of both the Mapleton Athletic Club (three years) and the Maximum Fitness Club (four
years).
Her reputation as an effective staff supervisor is excellent. At both the Athletic Club and
Maximum, membership increased by 15% each year under Joan's supervision.
Marge Williamson is a CPA with the firm of Smith, Jones, and Lawrence. Her primary
responsibility will be to oversee accounts receivable and operational costs.

Page 9

Ladies Only Fitness

6.1 Personnel Plan

The following is the personnel plan for Ladies Only Fitness:

Operations manager/lead trainer;

Personal trainers (2);
Childcare staff (2);
Receptionist/clerk (1);

During the sixth month of operations, one additional personnel trainer will be hired.
Table: Personnel

Personnel Plan
Operations Manager/Lead Trainer
Personal Trainers
Childcare Staff
Receptionist/Clerk
Total People
Total Payroll

Year 1

Year 2

Year 3

$36,000
$90,000
$36,000
$19,200
9

$36,000
$108,000
$36,000
$19,200
9

$38,000
$116,000
$39,000
$21,000
9

$181,200

$199,200

$214,000

Page 10

Ladies Only Fitness

7.0 Financial Plan

The following is the financial plan for Ladies Only Fitness.
7.1 Break-even Analysis
The monthly break-even point is shown below.
Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even

$20,465

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

0%
$20,465

Chart: Break-even Analysis

Page 11

Ladies Only Fitness

7.2 Projected Profit and Loss

The following table and charts highlight the projected profit and loss for three years.

Chart: Profit Monthly

Page 12

Ladies Only Fitness

Chart: Profit Yearly

Table: Profit and Loss

Pro Forma Profit and Loss

Year 1

Year 2

Year 3

Sales
Direct Cost of Sales
Other Production Expenses
Total Cost of Sales

$244,000
$0
$0
$0

$300,000
$0
$0
$0

$380,000
$0
$0
$0

Gross Margin
Gross Margin %

$244,000
100.00%

$300,000
100.00%

$380,000
100.00%

Payroll
Sales and Marketing and Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other

$181,200
$6,000
$0
$0
$4,800
$2,400
$24,000
$27,180
$0

$199,200
$8,000
$0
$0
$4,800
$2,400
$24,000
$29,880
$0

$214,000
$10,000
$0
$0
$4,800
$2,400
$24,000
$32,100
$0

Total Operating Expenses

$245,580

$268,280

$287,300

Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred

($1,580)
($1,580)
$5,578
$0

$31,720
$31,720
$4,830
$8,067

$92,700
$92,700
$4,050
$26,595

Net Profit
Net Profit/Sales

($7,158)
-2.93%

$18,823
6.27%

$62,055
16.33%

Expenses

Page 13

Ladies Only Fitness

Page 14

Ladies Only Fitness

7.3 Projected Cash Flow

The following table and chart highlights the projected cash flow for three years.
Table: Cash Flow

Pro Forma Cash Flow

Year 1

Year 2

Year 3

$244,000
$244,000

$300,000
$300,000

$380,000
$380,000

$0
$0
$0
$0
$0
$0
$0
$244,000

$0
$0
$0
$0
$0
$0
$0
$300,000

$0
$0
$0
$0
$0
$0
$0
$380,000

Year 1

Year 2

Year 3

$181,200
$64,133
$245,333

$199,200
$81,063
$280,263

$214,000
$102,139
$316,139

$0
$0
$0
$7,800
$0
$0
$0
$253,133

$0
$0
$0
$7,800
$0
$0
$0
$288,063

$0
$0
$0
$7,800
$0
$0
$0
$323,939

($9,133)
$56,667

$11,937
$68,603

$56,061
$124,664

Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance

Page 15

Ladies Only Fitness

Chart: Cash

Page 16

Ladies Only Fitness

7.4 Projected Balance Sheet

The following table highlights the projected balance sheet for three years.
Table: Balance Sheet

Pro Forma Balance Sheet

Year 1

Year 2

Year 3

$56,667
$0
$56,667

$68,603
$0
$68,603

$124,664
$0
$124,664

$0
$0
$0
$56,667

$0
$0
$0
$68,603

$0
$0
$0
$124,664

Year 1

Year 2

Year 3

$5,824
$0
$0
$5,824

$6,738
$0
$0
$6,738

$8,543
$0
$0
$8,543

$52,200
$58,024

$44,400
$51,138

$36,600
$45,143

$100,000
($94,200)
($7,158)
($1,358)
$56,667

$100,000
($101,358)
$18,823
$17,466
$68,603

$100,000
($82,535)
$62,055
$79,521
$124,664

($1,357)

$17,466

$79,521

Assets
Current Assets
Cash
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Long-term Liabilities
Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

Page 17

Ladies Only Fitness

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 7991, Physical Fitness Facilities, are shown for
comparison.
Table: Ratios

Ratio Analysis
Year 1

Year 2

Year 3

Industry Profile

n.a.

22.95%

26.67%

15.90%

Other Current Assets

Total Current Assets
Long-term Assets
Total Assets

0.00%
100.00%
0.00%
100.00%

0.00%
100.00%
0.00%
100.00%

0.00%
100.00%
0.00%
100.00%

31.10%
39.00%
61.00%
100.00%

Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth

10.28%
92.12%
102.40%
-2.40%

9.82%
64.72%
74.54%
25.46%

6.85%
29.36%
36.21%
63.79%

34.80%
27.60%
62.40%
37.60%

100.00%
100.00%
102.93%
2.46%
-0.65%

100.00%
100.00%
93.73%
2.67%
10.57%

100.00%
100.00%
83.67%
2.63%
24.39%

100.00%
0.00%
73.20%
2.40%
2.70%

9.73
9.73
102.40%
527.26%
-12.63%

10.18
10.18
74.54%
153.96%
39.20%

14.59
14.59
36.21%
111.48%
71.11%

1.10
0.73
62.40%
3.00%
7.90%

Sales Growth
Percent of Total Assets

Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Additional Ratios

Year 1

Year 2

Year 3

Net Profit Margin

Return on Equity

-2.93%
0.00%

6.27%
107.77%

16.33%
78.04%

n.a
n.a

12.01
27
4.31

12.17
28
4.37

12.17
27
3.05

n.a
n.a
n.a

0.00
0.10

2.93
0.13

0.57
0.19

n.a
n.a

$50,843
-0.28

$61,866
6.57

$116,121
22.89

n.a
n.a

0.23
10%
9.73
0.00
0.00

0.23
10%
10.18
17.18
0.00

0.33
7%
14.59
4.78
0.00

n.a
n.a
n.a
n.a
n.a

Activity Ratios
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout

Page 18

Ladies Only Fitness

Page 19

Appendix
Table: Sales Forecast

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

$0
$0
$0

$5,000
$4,000
$9,000

$6,000
$7,000
$13,000

$10,000
$10,000
$20,000

$11,000
$10,000
$21,000

$12,000
$12,000
$24,000

$12,000
$12,000
$24,000

$13,000
$12,000
$25,000

$14,000
$12,000
$26,000

$14,000
$13,000
$27,000

$14,000
$14,000
$28,000

$13,000
$14,000
$27,000

Sales
Memberships
Personal Trainers
Total Sales
Direct Cost of Sales

0%
0%

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Memberships

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Personal Trainers

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Subtotal Direct Cost of Sales

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Page 1

Appendix
Table: Personnel

Personnel Plan
Operations Manager/Lead Trainer
Personal Trainers
Childcare Staff
Receptionist/Clerk
Total People
Total Payroll

0%
0%
0%
0%

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$3,000
$6,000
$3,000
$1,600
6

$3,000
$6,000
$3,000
$1,600
6

$3,000
$6,000
$3,000
$1,600
6

$3,000
$6,000
$3,000
$1,600
6

$3,000
$6,000
$3,000
$1,600
6

$3,000
$6,000
$3,000
$1,600
6

$3,000
$9,000
$3,000
$1,600
9

$3,000
$9,000
$3,000
$1,600
9

$3,000
$9,000
$3,000
$1,600
9

$3,000
$9,000
$3,000
$1,600
9

$3,000
$9,000
$3,000
$1,600
9

$3,000
$9,000
$3,000
$1,600
9

$13,600

$13,600

$13,600

$13,600

$13,600

$13,600

$16,600

$16,600

$16,600

$16,600

$16,600

$16,600

Page 2

Appendix
Table: General Assumptions

General Assumptions
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

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%

Plan Month

Other

Month 12

Page 3

Appendix
Table: Profit and Loss

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

$0

$9,000

$13,000

$20,000

$21,000

$24,000

$24,000

$25,000

$26,000

$27,000

$28,000

$27,000

Direct Cost of Sales

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Other Production Expenses

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Cost of Sales

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Gross Margin
Gross Margin %

$0

$9,000

$13,000

$20,000

$21,000

$24,000

$24,000

$25,000

$26,000

$27,000

$28,000

$27,000

0.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

$13,600

$13,600

$13,600

$13,600

$13,600

$13,600

$16,600

$16,600

$16,600

$16,600

$16,600

$16,600

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$400

$400

$400

$400

$400

$400

$400

$400

$400

$400

$400

$400

Expenses
Payroll
Sales and Marketing and Other
Expenses
Depreciation
Leased Equipment
Utilities
Insurance

$200

$200

$200

$200

$200

$200

$200

$200

$200

$200

$200

$200

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,040
$0

$2,040
$0

$2,040
$0

$2,040
$0

$2,040
$0

$2,040
$0

$2,490
$0

$2,490
$0

$2,490
$0

$2,490
$0

$2,490
$0

$2,490
$0

$18,740

$18,740

$18,740

$18,740

$18,740

$18,740

$22,190

$22,190

$22,190

$22,190

$22,190

$22,190

Profit Before Interest and Taxes

($18,740)

($9,740)

($5,740)

$1,260

$2,260

$5,260

$1,810

$2,810

$3,810

$4,810

$5,810

$4,810

EBITDA

($18,740)

($9,740)

($5,740)

$1,260

$2,260

$5,260

$1,810

$2,810

$3,810

$4,810

$5,810

$4,810

$495

$489

$484

$478

$473

$468

$462

$457

$451

$446

$440

$435

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Rent
Payroll Taxes
Other
Total Operating Expenses

Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales

15%

($19,235)

($10,229)

($6,224)

$782

$1,787

$4,793

$1,348

$2,353

$3,359

$4,364

$5,370

$4,375

0.00%

-113.66%

-47.88%

3.91%

8.51%

19.97%

5.62%

9.41%

12.92%

16.16%

19.18%

16.20%

Page 4

Appendix
Table: Cash Flow

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 Sales

$0

$9,000

$13,000

$20,000

$21,000

$24,000

$24,000

$25,000

$26,000

$27,000

$28,000

$27,000

Subtotal Cash from Operations

$0

$9,000

$13,000

$20,000

$21,000

$24,000

$24,000

$25,000

$26,000

$27,000

$28,000

$27,000

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$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

$0

$9,000

$13,000

$20,000

$21,000

$24,000

$24,000

$25,000

$26,000

$27,000

$28,000

$27,000

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$13,600

$13,600

$13,600

$13,600

$13,600

$13,600

$16,600

$16,600

$16,600

$16,600

$16,600

$16,600

$188

$5,634

$5,629

$5,624

$5,618

$5,613

$5,622

$6,052

$6,046

$6,041

$6,036

$6,030

$13,788

$19,234

$19,229

$19,224

$19,218

$19,213

$22,222

$22,652

$22,646

$22,641

$22,636

$22,630

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

$650

$650

$650

$650

$650

$650

$650

$650

$650

$650

$650

$650

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

$14,438

$19,884

$19,879

$19,874

$19,868

$19,863

$22,872

$23,302

$23,296

$23,291

$23,286

$23,280

Net Cash Flow

($14,438)

($10,884)

($6,879)

$126

$1,132

$4,137

$1,128

$1,698

$2,704

$3,709

$4,714

$3,720

Cash Balance

$51,362

$40,478

$33,599

$33,725

$34,857

$38,994

$40,122

$41,820

$44,524

$48,233

$52,947

$56,667

Cash Received
Cash from Operations

Additional Cash Received

Sales Tax, VAT, HST/GST Received
New Current Borrowing

Expenditures

0.00%

Expenditures from Operations

Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent

Long-term Liabilities Principal Repayment

Subtotal Cash Spent

Page 5

Appendix
Table: Balance Sheet

Pro Forma Balance Sheet

Assets

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$65,800
$0
$65,800

$51,362
$0
$51,362

$40,478
$0
$40,478

$33,599
$0
$33,599

$33,725
$0
$33,725

$34,857
$0
$34,857

$38,994
$0
$38,994

$40,122
$0
$40,122

$41,820
$0
$41,820

$44,524
$0
$44,524

$48,233
$0
$48,233

$52,947
$0
$52,947

$56,667
$0
$56,667

$0
$0
$0
$65,800

$0
$0
$0
$51,362

$0
$0
$0
$40,478

$0
$0
$0
$33,599

$0
$0
$0
$33,725

$0
$0
$0
$34,857

$0
$0
$0
$38,994

$0
$0
$0
$40,122

$0
$0
$0
$41,820

$0
$0
$0
$44,524

$0
$0
$0
$48,233

$0
$0
$0
$52,947

$0
$0
$0
$56,667

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$0
$0
$0
$0

$5,447
$0
$0
$5,447

$5,442
$0
$0
$5,442

$5,436
$0
$0
$5,436

$5,431
$0
$0
$5,431

$5,426
$0
$0
$5,426

$5,421
$0
$0
$5,421

$5,850
$0
$0
$5,850

$5,845
$0
$0
$5,845

$5,840
$0
$0
$5,840

$5,835
$0
$0
$5,835

$5,829
$0
$0
$5,829

$5,824
$0
$0
$5,824

$60,000
$60,000

$59,350
$64,797

$58,700
$64,142

$58,050
$63,486

$57,400
$62,831

$56,750
$62,176

$56,100
$61,521

$55,450
$61,300

$54,800
$60,645

$54,150
$59,990

$53,500
$59,335

$52,850
$58,679

$52,200
$58,024

$100,000
($94,200)
$0
$5,800
$65,800

$100,000
($94,200)
($19,235)
($13,435)
$51,362

$100,000
($94,200)
($29,464)
($23,664)
$40,478

$100,000
($94,200)
($35,688)
($29,888)
$33,599

$100,000
($94,200)
($34,906)
($29,106)
$33,725

$100,000
($94,200)
($33,119)
($27,319)
$34,857

$100,000
($94,200)
($28,326)
($22,526)
$38,994

$100,000
($94,200)
($26,978)
($21,178)
$40,122

$100,000
($94,200)
($24,625)
($18,825)
$41,820

$100,000
($94,200)
($21,266)
($15,466)
$44,524

$100,000
($94,200)
($16,902)
($11,102)
$48,233

$100,000
($94,200)
($11,533)
($5,733)
$52,947

$100,000
($94,200)
($7,158)
($1,358)
$56,667

$5,800

($13,435)

($23,664)

($29,887)

($29,106)

($27,319)

($22,526)

($21,178)

($18,825)

($15,466)

($11,102)

($5,732)

($1,357)

Starting Balances

Current Assets
Cash
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Long-term Liabilities
Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

Page 6