Cleaning Products Business Plan

manostaxx3

http://www.manostaxx.com

Executive Summary

The marketplace for janitorial products and services is changing, both in nature and scope. The consumer is becoming more conscious of the environmental impact of cleaners as the market expands.

ChemSafe offers a innovative line of biodegradable, environmentally safe, citrus cleaners to janitorial services, retail outlets and consumers.

The product line includes:

  • Automotive cleaners;
  • Industrial cleaners;
  • Degreasers;
  • Hand cleaners;
  • Odor control;
  • Tar remover;
  • Concrete cleaners;
  • Vehicle wash and wax products.

ChemSafe products will be used by car washes, churches, food service outlets, hospitals, manufacturing companies, and schools. A number of ChemSafe products will be available from retail outlets and any product can be purchased from the company’s secure website.

The safety of cleaning products are of more concern today than ever before. Consumers want to know if the product they are using damages the environment. ChemSafe is committed to providing safe products that protect the environment.

1.1 Objectives

  • Establish ChemSafe products as the regional leader in selling biodegradable, environmentally safe, cleaners.
  • Increase the number of retail outlets carrying ChemSafe products by 20% over the next two years.
  • Build a solid working relationship with all the region’s janitorial companies.

1.2 Mission

ChemSafe’s mission is to introduce innovative cleanser products to its target customer base.  Charles Marshall, owner of ChemSafe, will utilize his janitorial background, his experience in the cleanser products industry, and his contacts with the region’s wholesale distributors and janitorial companies to create products that target consumers want.

1.3 Keys to Success

The keys to success in ChemSafe’s business are:

  1. Offering innovative janitorial products. This is essential for maintaining the niche market sectors mentioned in the mission statement.
  2. Reliable and timely deliveries. ChemSafe must make good on its delivery promises.
  3. A reliable administration that is ready to serve customers, prepare accurate billing, follow-up on orders and other documentation, and maintain a close watch on expenses and collection of accounts receivable.

Company Summary

ChemSafe makes an innovative line of biodegradable, environmentally safe, citrus cleaners.

2.1 Company Ownership

ChemSafe is owned by Charles Marshall.  Charles has ten years of janitorial experience and seven years of experience in manufacturing cleaners.

2.2 Start-up Summary

The start-up cost of ChemSafe will consist primarily of equipment and inventory. Charles Marshall will invest $81,500. A silent partner will also invest $81,500. Charles will also secure a $100,000 loan.

START-UP REQUIREMENTS
Start-up Expenses
Legal $1,000
Stationery etc. $800
Brochures $2,000
Insurance $1,000
Rent $3,000
Expensed Equipment $140,000
Truck $20,000
TOTAL START-UP EXPENSES $167,800
Start-up Assets
Cash Required $40,200
Start-up Inventory $5,000
Other Current Assets $0
Long-term Assets $50,000
TOTAL ASSETS $95,200
Total Requirements $263,000
START-UP FUNDING
Start-up Expenses to Fund $167,800
Start-up Assets to Fund $95,200
TOTAL FUNDING REQUIRED $263,000
Assets
Non-cash Assets from Start-up $55,000
Cash Requirements from Start-up $40,200
Additional Cash Raised $0
Cash Balance on Starting Date $40,200
TOTAL ASSETS $95,200
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
Charles Marshall $81,500
Silent Partner $81,500
Additional Investment Requirement $0
TOTAL PLANNED INVESTMENT $163,000
Loss at Start-up (Start-up Expenses) ($167,800)
TOTAL CAPITAL ($4,800)
TOTAL CAPITAL AND LIABILITIES $95,200
Total Funding $263,000

Products

The ChemSafe product line includes:

  • Automotive cleaners;
  • Industrial cleaners;
  • Degreasers;
  • Hand cleaners;
  • Odor control;
  • Tar remover;
  • Concrete cleaners;
  • Vehicle wash and wax products.

ChemSafe products will be used by car washes, churches, food service outlets, hospitals, manufacturing companies, and schools.  A number of ChemSafe products will be available from retail outlets and any product can be purchased from the company’s secure website.

Market Analysis Summary

Consumers are demanding environmental safe cleaners in public spaces. Additionally, janitorial firms are finding that biodegradable, environmentally safe are cleaners are a strong selling point when competing for contracts.

Last year, 1.5 billion dollars was spent on commercial cleaners. Of those sales, biodegradable, environmentally safe cleaners represented 15% of total sales. This is a 20% increase over sales the previous year.

4.1 Market Segmentation

ChemSafe will focus on three customer groups:

  • Wholesale Distributors: This group is the critical supplier to retail outlets and pivotal to the success of ChemSafe cleanser products.
  • Janitorial Professionals: An important key to the janitorial market is the ability to add value to cleaners through innovative products or techniques.  We believe that ChemSafe products are an invaluable tool to janitorial professionals.
  • Consumers: Concern for the environment has created a group of consumers who will only use biodegradable, environmentally safe cleaners in their homes.

MARKET ANALYSIS
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Potential Customers Growth CAGR
Wholesale Distributors 4% 20,000 20,800 21,632 22,497 23,397 4.00%
Janitorial Companies 6% 35,000 37,100 39,326 41,686 44,187 6.00%
Consumers 10% 100,000 110,000 121,000 133,100 146,410 10.00%
Total 8.40% 155,000 167,900 181,958 197,283 213,994 8.40%

Strategy and Implementation Summary

ChemSafe products will focus on becoming the leading provider of biodegradable, environmentally safe, citrus cleaners.

5.1 Competitive Edge

Charles Marshall is the competitive edge of ChemSafe. Charles has worked for both Acme Janitorial Products and Wilson Cleaning Services over the past fourteen years.  In his last position with Acme Janitorial Products, Charles sold cleaning products to numerous markets on the West Coast. He generated sales in excess of $4 million annually. His strength is his customer relation skills and he has been successful in expanding the range of products purchased by wholesale distributors in his sales region.

Before joining Acme Janitorial Products, Charles was a supervisor for Wilson Cleaning Services for six years.  Wilson Cleaning Services is the largest janitorial firm in the greater Lane County area with sales in excess of $4 million dollars annually.

During his years with both Acme Janitorial Products and Wilson Cleaning Services, Charles has made invaluable contacts with wholesale distributors, janitorial professionals, and commercial retail outlets. This gives ChemSafe products the competitive edge in introducing its new products to its target customers.

5.2 Sales Strategy

ChemSafe products are safe but strong cleaning products. Our target customers know that consumers want to use products that do not damage the environment. More importantly, there are no health risk in using ChemSafe products.

ChemSafe products will have three distinct sales approaches:

  • For Wholesale Distributors: We will offer the distributors a 20% discount on wholesale purchases for the first three months of operation. Charles Marshall  will market ChemSafe products to the distributors. Charles believes that distributors will see the advantage of ChemSafe products for institutions like schools and hospitals.
  • For Janitorial Professionals: We will offer janitorial professionals the wholesale price for ChemSafe products for the first six months of operation. Charles Marshall will market ChemSafe products to the janitorial firms. Charles believes that these firms will see the advantage of ChemSafe products as a cheaper and safer alternative to their current cleaning materials.
  • For Consumers: We will offer the consumers prices that are only 5% over wholesale for ChemSafe products.   ChemSafe will be marketed to consumers through ads in natural living magazines, like Natural Life magazine and Conscious Living magazine.

5.2.1 Sales Forecast

For the first month there will be no sales, as the company will be establishing its operations.  We anticipate that sales will grow quickly during the second and third month of operation.

The following is the sales forecast for three years.

SALES FORECAST
YEAR 1 YEAR 2 YEAR 3
Sales
Wholesale Distributors $188,500 $210,000 $234,000
Consumers $25,000 $32,000 $40,000
Janitorial Professionals $149,000 $180,000 $230,000
TOTAL SALES $362,500 $422,000 $504,000
Direct Cost of Sales Year 1 Year 2 Year 3
Wholesale Distributors $46,800 $55,000 $60,000
Consumers $5,000 $6,000 $7,000
Janitorial Professionals $32,800 $43,000 $52,000
Subtotal Direct Cost of Sales $84,600 $104,000 $119,000

Management Summary

Charles Marshall will be responsible for sales and marketing. ChemSafe will have a Production Manager who will be responsible for the daily manufacturing operation.

6.1 Personnel Plan

The personnel of ChemSafe are as follows:

  • Owner/sales and marketing manager;
  • Production manager;
  • Production staff (4);
  • Office manager/Web administrator;
PERSONNEL PLAN
YEAR 1 YEAR 2 YEAR 3
Charles Marshall $33,600 $36,000 $39,000
Production Manager $30,000 $33,000 $35,000
Production Staff (3) $60,000 $65,000 $70,000
Office Manager/Web Administrator $24,000 $28,000 $30,000
TOTAL PEOPLE 6 6 6
Total Payroll $147,600 $162,000 $174,000

Financial Plan

The following is the financial plan for ChemSafe.

7.1 Break-even Analysis

The monthly break-even point is approximately $26,200.

BREAK-EVEN ANALYSIS
Monthly Revenue Break-even $26,291
Assumptions:
Average Percent Variable Cost 23%
Estimated Monthly Fixed Cost $20,155

7.2 Projected Profit and Loss

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

PRO FORMA PROFIT AND LOSS
YEAR 1 YEAR 2 YEAR 3
Sales $362,500 $422,000 $504,000
Direct Cost of Sales $84,600 $104,000 $119,000
Other Production Expenses $0 $0 $0
TOTAL COST OF SALES $84,600 $104,000 $119,000
Gross Margin $277,900 $318,000 $385,000
Gross Margin % 76.66% 75.36% 76.39%
Expenses
Payroll $147,600 $162,000 $174,000
Sales and Marketing and Other Expenses $18,000 $36,000 $46,000
Depreciation $2,880 $2,880 $2,880
Leased Equipment $0 $0 $0
Utilities $6,000 $6,000 $6,000
Insurance $6,000 $6,000 $6,000
Rent $36,000 $36,000 $36,000
Payroll Taxes $25,380 $27,000 $28,800
Other $0 $0 $0
Total Operating Expenses $241,860 $275,880 $299,680
Profit Before Interest and Taxes $36,040 $42,120 $85,320
EBITDA $38,920 $45,000 $88,200
Interest Expense $9,589 $8,176 $6,535
Taxes Incurred $7,935 $10,183 $23,636
Net Profit $18,516 $23,761 $55,150
Net Profit/Sales 5.11% 5.63% 10.94%

7.3 Projected Cash Flow

The following table and chart highlight the projected cash flow for three years.

PRO FORMA CASH FLOW
YEAR 1 YEAR 2 YEAR 3
Cash Received
Cash from Operations
Cash Sales $181,250 $211,000 $252,000
Cash from Receivables $140,433 $204,300 $242,767
SUBTOTAL CASH FROM OPERATIONS $321,683 $415,300 $494,767
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $6,000 $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 $327,683 $415,300 $494,767
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $147,600 $162,000 $174,000
Bill Payments $178,786 $238,011 $270,914
SUBTOTAL SPENT ON OPERATIONS $326,386 $400,011 $444,914
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $1,500 $3,000 $1,500
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $14,160 $14,160 $14,160
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
SUBTOTAL CASH SPENT $342,046 $417,171 $460,574
Net Cash Flow ($14,363) ($1,871) $34,193
Cash Balance $25,837 $23,966 $58,159

7.4 Projected Balance Sheet

The following table highlights the projected balance sheet for three years.

PRO FORMA BALANCE SHEET
YEAR 1 YEAR 2 YEAR 3
Assets
Current Assets
Cash $25,837 $23,966 $58,159
Accounts Receivable $40,817 $47,516 $56,749
Inventory $11,660 $14,334 $16,401
Other Current Assets $0 $0 $0
TOTAL CURRENT ASSETS $78,314 $85,816 $131,309
Long-term Assets
Long-term Assets $50,000 $50,000 $50,000
Accumulated Depreciation $2,880 $5,760 $8,640
TOTAL LONG-TERM ASSETS $47,120 $44,240 $41,360
TOTAL ASSETS $125,434 $130,056 $172,669
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $21,378 $19,400 $22,524
Current Borrowing $4,500 $1,500 $0
Other Current Liabilities $0 $0 $0
SUBTOTAL CURRENT LIABILITIES $25,878 $20,900 $22,524
Long-term Liabilities $85,840 $71,680 $57,520
TOTAL LIABILITIES $111,718 $92,580 $80,044
Paid-in Capital $163,000 $163,000 $163,000
Retained Earnings ($167,800) ($149,284) ($125,524)
Earnings $18,516 $23,761 $55,150
TOTAL CAPITAL $13,716 $37,476 $92,626
TOTAL LIABILITIES AND CAPITAL $125,434 $130,056 $172,669
Net Worth $13,716 $37,476 $92,626

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 2842, Polishes and Sanitation Goods, are shown for comparison.

RATIO ANALYSIS
YEAR 1 YEAR 2 YEAR 3 INDUSTRY PROFILE
Sales Growth 0.00% 16.41% 19.43% 1.10%
Percent of Total Assets
Accounts Receivable 32.54% 36.54% 32.87% 25.90%
Inventory 9.30% 11.02% 9.50% 17.80%
Other Current Assets 0.00% 0.00% 0.00% 39.70%
Total Current Assets 62.43% 65.98% 76.05% 83.40%
Long-term Assets 37.57% 34.02% 23.95% 16.60%
TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
Current Liabilities 20.63% 16.07% 13.04% 29.10%
Long-term Liabilities 68.43% 55.11% 33.31% 23.60%
Total Liabilities 89.07% 71.18% 46.36% 52.70%
NET WORTH 10.93% 28.82% 53.64% 47.30%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 76.66% 75.36% 76.39% 41.60%
Selling, General & Administrative Expenses 75.66% 72.66% 67.94% 23.00%
Advertising Expenses 3.31% 7.11% 7.94% 2.80%
Profit Before Interest and Taxes 9.94% 9.98% 16.93% 5.00%
Main Ratios
Current 3.03 4.11 5.83 2.51
Quick 2.58 3.42 5.10 1.51
Total Debt to Total Assets 89.07% 71.18% 46.36% 52.70%
Pre-tax Return on Net Worth 192.85% 90.57% 85.06% 7.20%
Pre-tax Return on Assets 21.09% 26.10% 45.63% 15.30%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 5.11% 5.63% 10.94% n.a
Return on Equity 135.00% 63.40% 59.54% n.a
Activity Ratios
Accounts Receivable Turnover 4.44 4.44 4.44 n.a
Collection Days 56 76 76 n.a
Inventory Turnover 10.35 8.00 7.74 n.a
Accounts Payable Turnover 9.36 12.17 12.17 n.a
Payment Days 27 32 28 n.a
Total Asset Turnover 2.89 3.24 2.92 n.a
Debt Ratios
Debt to Net Worth 8.15 2.47 0.86 n.a
Current Liab. to Liab. 0.23 0.23 0.28 n.a
Liquidity Ratios
Net Working Capital $52,436 $64,916 $108,786 n.a
Interest Coverage 3.76 5.15 13.06 n.a
Additional Ratios
Assets to Sales 0.35 0.31 0.34 n.a
Current Debt/Total Assets 21% 16% 13% n.a
Acid Test 1.00 1.15 2.58 n.a
Sales/Net Worth 26.43 11.26 5.44 n.a
Dividend Payout 0.00 0.00 0.00 n.a

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
Wholesale Distributors 0% $0 $10,000 $14,000 $13,000 $16,000 $17,500 $18,000 $18,000 $20,000 $20,000 $20,000 $22,000
Consumers 0% $0 $1,000 $1,000 $2,000 $2,000 $2,000 $2,000 $3,000 $3,000 $3,000 $3,000 $3,000
Janitorial Professionals 0% $0 $10,000 $6,000 $11,000 $13,000 $13,000 $15,000 $15,000 $15,000 $16,000 $18,000 $17,000
TOTAL SALES $0 $21,000 $21,000 $26,000 $31,000 $32,500 $35,000 $36,000 $38,000 $39,000 $41,000 $42,000
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
Wholesale Distributors $0 $2,000 $3,000 $2,800 $3,500 $4,000 $4,500 $4,500 $5,500 $5,500 $5,500 $6,000
Consumers $0 $200 $200 $400 $400 $400 $400 $600 $600 $600 $600 $600
Janitorial Professionals $0 $2,000 $1,000 $1,800 $2,000 $3,000 $3,500 $3,500 $3,500 $4,000 $4,500 $4,000
Subtotal Direct Cost of Sales $0 $4,200 $4,200 $5,000 $5,900 $7,400 $8,400 $8,600 $9,600 $10,100 $10,600 $10,600
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
Charles Marshall 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
Production 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
Production Staff (3) 0% $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Office Manager/Web Administrator 0% $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
TOTAL PEOPLE 6 6 6 6 6 6 6 6 6 6 6 6
Total Payroll $12,300 $12,300 $12,300 $12,300 $12,300 $12,300 $12,300 $12,300 $12,300 $12,300 $12,300 $12,300
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 $0 $21,000 $21,000 $26,000 $31,000 $32,500 $35,000 $36,000 $38,000 $39,000 $41,000 $42,000
Direct Cost of Sales $0 $4,200 $4,200 $5,000 $5,900 $7,400 $8,400 $8,600 $9,600 $10,100 $10,600 $10,600
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
TOTAL COST OF SALES $0 $4,200 $4,200 $5,000 $5,900 $7,400 $8,400 $8,600 $9,600 $10,100 $10,600 $10,600
Gross Margin $0 $16,800 $16,800 $21,000 $25,100 $25,100 $26,600 $27,400 $28,400 $28,900 $30,400 $31,400
Gross Margin % 0.00% 80.00% 80.00% 80.77% 80.97% 77.23% 76.00% 76.11% 74.74% 74.10% 74.15% 74.76%
Expenses
Payroll $12,300 $12,300 $12,300 $12,300 $12,300 $12,300 $12,300 $12,300 $12,300 $12,300 $12,300 $12,300
Sales and Marketing and Other Expenses $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Depreciation $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Insurance $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Rent $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Payroll Taxes 15% $2,115 $2,115 $2,115 $2,115 $2,115 $2,115 $2,115 $2,115 $2,115 $2,115 $2,115 $2,115
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $20,155 $20,155 $20,155 $20,155 $20,155 $20,155 $20,155 $20,155 $20,155 $20,155 $20,155 $20,155
Profit Before Interest and Taxes ($20,155) ($3,355) ($3,355) $845 $4,945 $4,945 $6,445 $7,245 $8,245 $8,745 $10,245 $11,245
EBITDA ($19,915) ($3,115) ($3,115) $1,085 $5,185 $5,185 $6,685 $7,485 $8,485 $8,985 $10,485 $11,485
Interest Expense $824 $814 $804 $794 $834 $824 $812 $801 $789 $777 $765 $753
Taxes Incurred ($6,294) ($1,251) ($1,248) $15 $1,233 $1,236 $1,690 $1,933 $2,237 $2,391 $2,844 $3,148
Net Profit ($14,685) ($2,918) ($2,911) $36 $2,878 $2,884 $3,943 $4,511 $5,219 $5,578 $6,636 $7,345
Net Profit/Sales 0.00% -13.90% -13.86% 0.14% 9.28% 8.88% 11.27% 12.53% 13.74% 14.30% 16.19% 17.49%
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 $0 $10,500 $10,500 $13,000 $15,500 $16,250 $17,500 $18,000 $19,000 $19,500 $20,500 $21,000
Cash from Receivables $0 $0 $350 $10,500 $10,583 $13,083 $15,525 $16,292 $17,517 $18,033 $19,017 $19,533
SUBTOTAL CASH FROM OPERATIONS $0 $10,500 $10,850 $23,500 $26,083 $29,333 $33,025 $34,292 $36,517 $37,533 $39,517 $40,533
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 $6,000 $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 $10,500 $10,850 $23,500 $32,083 $29,333 $33,025 $34,292 $36,517 $37,533 $39,517 $40,533
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 $12,300 $12,300 $12,300 $12,300 $12,300 $12,300 $12,300 $12,300 $12,300 $12,300 $12,300 $12,300
Bill Payments $71 $2,440 $11,011 $11,469 $14,380 $16,644 $18,755 $19,602 $19,241 $21,344 $21,464 $22,365
SUBTOTAL SPENT ON OPERATIONS $12,371 $14,740 $23,311 $23,769 $26,680 $28,944 $31,055 $31,902 $31,541 $33,644 $33,764 $34,665
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 $250 $250 $250 $250 $250 $250
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $1,180 $1,180 $1,180 $1,180 $1,180 $1,180 $1,180 $1,180 $1,180 $1,180 $1,180 $1,180
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 $13,551 $15,920 $24,491 $24,949 $27,860 $30,124 $32,485 $33,332 $32,971 $35,074 $35,194 $36,095
Net Cash Flow ($13,551) ($5,420) ($13,641) ($1,449) $4,223 ($791) $540 $959 $3,545 $2,460 $4,323 $4,438
Cash Balance $26,649 $21,228 $7,588 $6,139 $10,362 $9,572 $10,111 $11,071 $14,616 $17,076 $21,399 $25,837
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 $40,200 $26,649 $21,228 $7,588 $6,139 $10,362 $9,572 $10,111 $11,071 $14,616 $17,076 $21,399 $25,837
Accounts Receivable $0 $0 $10,500 $20,650 $23,150 $28,067 $31,233 $33,208 $34,917 $36,400 $37,867 $39,350 $40,817
Inventory $5,000 $5,000 $4,620 $4,620 $5,500 $6,490 $8,140 $9,240 $9,460 $10,560 $11,110 $11,660 $11,660
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
TOTAL CURRENT ASSETS $45,200 $31,649 $36,348 $32,858 $34,789 $44,919 $48,945 $52,560 $55,447 $61,576 $66,053 $72,409 $78,314
Long-term Assets
Long-term 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
Accumulated Depreciation $0 $240 $480 $720 $960 $1,200 $1,440 $1,680 $1,920 $2,160 $2,400 $2,640 $2,880
TOTAL LONG-TERM ASSETS $50,000 $49,760 $49,520 $49,280 $49,040 $48,800 $48,560 $48,320 $48,080 $47,840 $47,600 $47,360 $47,120
TOTAL ASSETS $95,200 $81,409 $85,868 $82,138 $83,829 $93,719 $97,505 $100,880 $103,527 $109,416 $113,653 $119,769 $125,434
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 $2,073 $10,631 $10,992 $13,827 $16,020 $18,101 $18,963 $18,530 $20,629 $20,718 $21,628 $21,378
Current Borrowing $0 $0 $0 $0 $0 $6,000 $6,000 $5,750 $5,500 $5,250 $5,000 $4,750 $4,500
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
SUBTOTAL CURRENT LIABILITIES $0 $2,073 $10,631 $10,992 $13,827 $22,020 $24,101 $24,713 $24,030 $25,879 $25,718 $26,378 $25,878
Long-term Liabilities $100,000 $98,820 $97,640 $96,460 $95,280 $94,100 $92,920 $91,740 $90,560 $89,380 $88,200 $87,020 $85,840
TOTAL LIABILITIES $100,000 $100,893 $108,271 $107,452 $109,107 $116,120 $117,021 $116,453 $114,590 $115,259 $113,918 $113,398 $111,718
Paid-in Capital $163,000 $163,000 $163,000 $163,000 $163,000 $163,000 $163,000 $163,000 $163,000 $163,000 $163,000 $163,000 $163,000
Retained Earnings ($167,800) ($167,800) ($167,800) ($167,800) ($167,800) ($167,800) ($167,800) ($167,800) ($167,800) ($167,800) ($167,800) ($167,800) ($167,800)
Earnings $0 ($14,685) ($17,603) ($20,514) ($20,479) ($17,601) ($14,716) ($10,774) ($6,262) ($1,043) $4,535 $11,171 $18,516
TOTAL CAPITAL ($4,800) ($19,485) ($22,403) ($25,314) ($25,279) ($22,401) ($19,516) ($15,574) ($11,062) ($5,843) ($265) $6,371 $13,716
TOTAL LIABILITIES AND CAPITAL $95,200 $81,409 $85,868 $82,138 $83,829 $93,719 $97,505 $100,880 $103,527 $109,416 $113,653 $119,769 $125,434
Net Worth ($4,800) ($19,485) ($22,403) ($25,314) ($25,279) ($22,401) ($19,516) ($15,574) ($11,062) ($5,843) ($265) $6,371 $13,716

 

 

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