Victorian Renovations (VR) is a start-up formed to meet the growing need for unique vintage homes in downtown Portland, Oregon. The company is focused on purchasing and renovating a building on Fifth and Pearl. The owners, Doug Machen and Sarah Renner, both experienced in house renovation, will complete most of the work, with the help of external contractors for larger jobs.
After completion, the house will be rented out to pay the mortgage and finance the purchase of another property in downtown Portland. Due to the rising demand for unique homes in the area, it is believed that the property at Fifth and Pearl will produce substantial cash flow for future projects.
The mission of VR is to develop rundown houses in the Portland area to improve the look and financial viability of downtown Portland. The company will rent these properties out to provide a stream of income for future investments. VR aims to be a highly visible company in the property development market.
The main objectives for VR are as follows:
– Obtain investor funding to purchase and renovate a four bedroom residence on Pearl and Fifth in the Hawthorne District of Portland, Oregon.
– Complete renovations on the residence to convert it into two 2-bedroom units by October 2001.
– Rent out the residence to provide enough income to pay the mortgage and fund future projects.
– Purchase another residence for renovation immediately thereafter.
The keys to success for this project are:
– Completing the renovation work within the scheduled time and budget.
– Finding rental occupants for the building before or soon after completion of renovations.
– Maintaining an average 80% occupancy rate each year.
Victorian Renovations is a vintage house renovator based in Portland, OR. We purchase dilapidated buildings at low cost and renovate them in vintage Victorian style, then rent them to young families and couples. We are a privately-owned Oregon corporation. We are small but have a good understanding of the market, experience in this industry, and a great passion for our work.
The company was started when these two business colleagues realized the number of old dilapidated homes in Portland in need of repair and the growing popularity of restored older homes.
They have recently located the house on Pearl and Fifth and are in the process of obtaining a loan. Each partner will contribute investment used to cover the down payment of 20%, mortgage payments for the first six months during renovation, and materials and labor. Doug and Sarah, both owners of older homes, will handle much of the renovation and repair work themselves.
Other start-up costs include legal expenses for incorporating the business and building insurance.
Start-up Expenses:
– Legal: $500
– Insurance: $250
– Total: $750
Start-up Assets:
– Cash Required: $74,500
– Other Current Assets: $750
– Long-term Assets: $144,000
– Total Assets: $219,250
Total Funding Required: $220,000
Assets:
– Non-cash Assets from Start-up: $144,750
– Cash Requirements from Start-up: $74,500
– Additional Cash Raised: $0
– Cash Balance on Starting Date: $74,500
– Total Assets: $219,250
Liabilities and Capital:
– Liabilities:
– Current Borrowing: $0
– Long-term Liabilities: $160,000
– Accounts Payable (Outstanding Bills): $0
– Other Current Liabilities (interest-free): $0
– Total Liabilities: $160,000
Capital:
– Planned Investment:
– Sarah Renner: $30,000
– Doug Machen: $30,000
– Other: $0
– Additional Investment Requirement: $0
– Total Planned Investment: $60,000
– Loss at Start-up (Start-up Expenses): ($750)
– Total Capital: $59,250
Total Capital and Liabilities: $219,250
Total Funding: $220,000
Company Ownership:
Victorian Renovations is a privately-held Oregon corporation. It is jointly owned by Sarah Renner and Doug Machen.
Services:
Currently, the company has just one product, the house on Pearl and Fifth.
Market Analysis Summary:
Housing exploded into the 21st century, breaking records for home sales, ownership rates, and residential construction. Portland’s housing prices leaped 44% over the past decade, rivaling Seattle and San Francisco. The median sales prices for homes in metro Portland rose above $170,000 and Lake Oswego/West Linn market soared above $290,000.
Portland recently ranked as the 25th least affordable of 192 major U.S. cities.
Market Segmentation:
Victorian Renovations targets upper-income couples to rent its properties. Many people moving into the area are unsure if they will stay long-term, and many newcomers prefer to rent a home rather than commit to a purchase. The company specifically targets 25 to 30-year-olds within the largest population group in Portland, which is 20-44 year olds. This group makes up 5% of the 20-44 year old age group in Portland.
Portland Community Age Groups:
– 1970: Under 5 years – 29,779; 5-19 years – 94,079; 20-44 years – 114,472; 45-64 years – 90,607; 65+ years – 56,682; Median Age – 32
– 1980: Under 5 years – 23,883; 5-19 years – 68,259; 20-44 years – 150,431; 45-64 years – 67,881; 65+ years – 55,929; Median Age – 31
– 1990: Under 5 years – 30,314; 5-19 years – 76,792; 20-44 years – 193,287; 45-64 years – 73,269; 65+ years – 63,657; Median Age – 34
(Source: US Census. Median value is the middle value, not an average.)
Market Analysis
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
| Growth | |||||||
| 20 – 44 year olds | 14% | 11,050 | 12,597 | 14,361 | 16,372 | 18,664 | 14.00% |
| Other | 0% | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Total | 14.00% | 11,050 | 12,597 | 14,361 | 16,372 | 18,664 | 14.00% |
4.2 Service Business Analysis
Below are the most recent figures for the Portland housing market. If trends in the housing market have remained similar, the vacancy rate of 5.59% looks very promising for VR, since the target is 80% occupancy.
City of Portland 1990 Housing Breakout:
| Vacancy Rate: | 5.59% |
| Owner Occupied: | 99,244 |
| Renter Occupied: | 87,980 |
(Source: US Census.)
4.2.1 Competition and Buying Patterns
Competition in the Portland housing market is diverse, but there are few houses renovated in a unique Victorian style available for rent. This allows VR to charge a premium price of $900 per unit, compared to the average price of $850 for a 2-bedroom apartment in downtown Portland. There is demand in the market for this vintage and quality of building in the rental market.
Strategy and Implementation Summary
Our strategy is to target people in the Portland area who value comfortable, vintage living with modern conveniences. The homes we develop will appeal to people looking for rental properties and are willing to spend more to have authentic, classic surroundings. These individuals are willing to pay extra for this unique property.
5.1 Competitive Edge
Our competitive edge comes from the expertise of the owners in renovating and restoring older homes. Both owners have experience in renovating their own vintage homes and have strong business backgrounds in marketing and finance and accounting.
The marketing for VR will be limited, as the company only needs to rent out two apartments on one-year leases. A full-color leaflet will be developed and posted near the property once the restoration process is nearing completion. Additionally, newspaper advertisements will be placed in local newspapers and on rental websites.
5.3 Sales Strategy
Due to the high quality of the apartments, VR will be selective in choosing tenants. References and proof of employment or ability to pay rent will be required. A one-month rent deposit will also be requested upon signing the lease.
5.3.1 Sales Forecast
The following is the sales forecast for VR’s first apartment building on Fifth and Pearl.
Sales Forecast:
| Sales Forecast | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | |||
| Rental Revenue | $21,600 | $23,760 | $26,136 |
| Other | $0 | $0 | $0 |
| Total Sales | $21,600 | $23,760 | $26,136 |
| Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
| Rental Costs | $2,160 | $2,376 | $2,614 |
| Other | $0 | $0 | $0 |
| Subtotal Direct Cost of Sales | $2,160 | $2,376 | $2,614 |
5.4 Milestones
The following table illustrates the key steps that Victorian Renovations must achieve to ensure venture success.
Milestones:
| Milestones | |||||
| Milestone | Start Date | End Date | Budget | Manager | Department |
| Complete Sale on House | 6/1/2001 | 6/15/2001 | $2,000 | Doug Machen | Owner |
| Wall repairs | 6/15/2001 | 6/30/2001 | $3,000 | Contractor | Admin |
| Plumbing Repairs | 6/15/2001 | 6/30/2001 | $2,000 | Doug Machen | Owner |
| Floor Refinishing | 6/30/2001 | 7/10/2001 | $3,000 | Renner/Machen | Owners |
| Decorating | 7/12/2001 | 8/30/2001 | $5,000 | Renner/Machen | Owners |
| Advertise the House for Rent | 8/25/2001 | 9/15/2001 | $200 | Sarah Renner | Owner |
| Totals | $15,200 | ||||
Management Summary:
Victorian Renovations will be owned and managed by Doug Machen and Sarah Renner. Both have MBA degrees from the University of Portland and are experienced home owners and renovators. Victorian Renovations will be a side business for them, as they currently work full time. They will be renovating the building on Fifth and Pearl at night and on weekends.
Doug works for an accounting firm and deals with real estate transactions for his clients. This experience makes him perfect to negotiate the sales price and mortgage on the house.
Sarah works as a marketing specialist for an interior design firm that focuses on high-end reproductions of antique household items, such as victorian style sinks, taps, wallpaper, tiles, and furniture. Most of the products are sourced from overseas, so the company works on big margins. As a result, employees can get good discounts on products from the company. Sarah will be purchasing most products for the house renovation directly from her work.
6.1 Personnel Plan:
The owners will be working on this project alone, though they will be bringing in contractors for some of the heavier renovation work. For the first couple of years, neither will be taking a salary. Instead, they will be reinvesting profits back into the business with the aim of buying other properties.
The following financial information shows the assumptions and outcomes of the purchase, renovation, and rental of the first property on Fifth and Pearl. No attempt has been made to discuss the implications of purchasing other buildings, as these will happen on a more ad hoc basis.
7.1 Important Assumptions:
The following are conservative assumptions that will influence our financial projections.
General Assumptions:
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 9.00% | 9.00% | 9.00% |
| Long-term Interest Rate | 6.75% | 6.75% | 6.75% |
| Tax Rate | 30.00% | 30.00% | 30.00% |
| Other | 0 | 0 | 0 |
7.2 Break-even Analysis:
The regular Break-even Analysis is not appropriate for this project, but the following explanation of the Break-even chart.
Investors will receive 66% of the rental income from the property. It is estimated that this property will produce $2400 per month of rent. At maximum occupancy, the payout to investors will be a fixed monthly cost of $1,600. The remaining $800 per month will be kept in a savings account to pay for general upkeep of the building and any unexpected repairs. Routine bills and maintenance are estimated to be no more than $400 per month.
Break-even Analysis:
Monthly Revenue Break-even: $1,417
Assumptions:
– Average Percent Variable Cost: 10%
– Estimated Monthly Fixed Cost: $1,275
7.3 Projected Profit and Loss:
The Profit and Loss table shows that VR will lose money in the first year. However, in the second year, the company will achieve a healthy return of 10% in 2002 and 15% in 2003.
Pro Forma Profit and Loss
| Pro Forma Profit and Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $21,600 | $23,760 | $26,136 |
| Direct Cost of Sales | $2,160 | $2,376 | $2,614 |
| Other Production Expenses | $18,000 | $0 | $0 |
| Total Cost of Sales | $20,160 | $2,376 | $2,614 |
| Gross Margin | $1,440 | $21,384 | $23,522 |
| Gross Margin % | 6.67% | 90.00% | 90.00% |
| Expenses | |||
| Payroll | $0 | $0 | $0 |
| Sales and Marketing and Other Expenses | $9,500 | $1,300 | $1,400 |
| Depreciation | $3,200 | $4,800 | $4,800 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $2,300 | $1,200 | $1,300 |
| Insurance | $300 | $300 | $350 |
| Rent | $0 | $0 | $0 |
| Payroll Taxes | $0 | $0 | $0 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $15,300 | $7,600 | $7,850 |
| Profit Before Interest and Taxes | ($13,860) | $13,784 | $15,672 |
| EBITDA | ($10,660) | $18,584 | $20,472 |
| Interest Expense | $10,668 | $10,380 | $10,061 |
| Taxes Incurred | $0 | $1,021 | $1,684 |
| Net Profit | ($24,528) | $2,383 | $3,928 |
| Net Profit/Sales | -113.56% | 10.03% | 15.03% |
7.4 Projected Cash Flow
The following Balance Sheet shows healthy cash flow enabling VR to maintain the existing location at Fifth and Pearl and allowing Doug and Sarah to purchase a second property in Portland in year two of the operation.
Pro Forma Cash Flow
| Pro Forma Cash Flow | |||
| Year 1 | Year 2 | Year 3 | |
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $21,600 | $23,760 | $26,136 |
| Subtotal Cash from Operations | $21,600 | $23,760 | $26,136 |
| 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 | $21,600 | $23,760 | $26,136 |
| Expenditures | |||
| Expenditures from Operations | |||
| Cash Spending | $0 | $0 | $0 |
| Bill Payments | $41,654 | $16,489 | $17,339 |
| Subtotal Spent on Operations | $41,654 | $16,489 | $17,339 |
| 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 | $3,938 | $4,572 | $4,891 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| Subtotal Cash Spent | $45,592 | $21,061 | $22,231 |
| Net Cash Flow | ($23,992) | $2,699 | $3,905 |
| Cash Balance | $50,508 | $53,207 | $57,112 |
7.5 Projected Balance Sheet
The Balance Sheet shows a healthy company with a positive net worth that will ensure future financial stability and the ability to grow through investment in other properties in the future.
| Pro Forma Balance Sheet | |||
| Year 1 | Year 2 | Year 3 | |
| Assets | |||
| Current Assets | |||
| Cash | $50,508 | $53,207 | $57,112 |
| Other Current Assets | $750 | $750 | $750 |
| Total Current Assets | $51,258 | $53,957 | $57,862 |
| Long-term Assets | |||
| Long-term Assets | $144,000 | $144,000 | $144,000 |
| Accumulated Depreciation | $3,200 | $8,000 | $12,800 |
| Total Long-term Assets | $140,800 | $136,000 | $131,200 |
| Total Assets | $192,058 | $189,957 | $189,062 |
| Liabilities and Capital | |||
| Current Liabilities | |||
| Accounts Payable | $1,274 | $1,363 | $1,431 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| Subtotal Current Liabilities | $1,274 | $1,363 | $1,431 |
| Long-term Liabilities | $156,062 | $151,490 | $146,599 |
| Total Liabilities | $157,336 | $152,853 | $148,030 |
| Paid-in Capital | $60,000 | $60,000 | $60,000 |
| Retained Earnings | ($750) | ($25,278) | ($22,895) |
| Earnings | ($24,528) | $2,383 | $3,928 |
| Total Capital | $34,722 | $37,105 | $41,033 |
| Total Liabilities and Capital | $192,058 | $189,957 | $189,062 |
| Net Worth | $34,722 | $37,105 | $41,033 |
7.6 Business Ratios
The following table contains important ratios for the Single-family housing construction industry, as determined by the Standard Industry Classification (SIC) Index Number 1521.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | Industry Profile | |
| Sales Growth | 0.00% | 10.00% | 10.00% | 7.20% |
| Percent of Total Assets | ||||
| Other Current Assets | 0.39% | 0.39% | 0.40% | 30.60% |
| Total Current Assets | 26.69% | 28.40% | 30.60% | 80.40% |
| Long-term Assets | 73.31% | 71.60% | 69.40% | 19.60% |
| Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | ||||
| Accounts Payable | 0.66% | 0.72% | 0.76% | 44.20% |
| Long-term Liabilities | 81.26% | 79.75% | 77.54% | 11.50% |
| Total Liabilities | 81.92% | 80.47% | 78.30% | 55.70% |
| Net Worth | 18.08% | 19.53% | 21.70% | 44.30% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 6.67% | 90.00% | 90.00% | 18.10% |
| Selling, General & Administrative Expenses | 120.22% | 79.97% | 74.97% | 7.00% |
| Advertising Expenses | 1.39% | 0.00% | 0.00% | 0.20% |
| Profit Before Interest and Taxes | -64.17% | 58.01% | 59.96% | 3.50% |
| Main Ratios | ||||
| Current | 40.24 | 39.60 | 40.44 | 1.83 |
| Quick | 40.24 | 39.60 | 40.44 | 0.86 |
| Total Debt to Total Assets | 81.92% | 80.47% | 78.30% | 55.70% |
| Pre-tax Return on Net Worth | -70.64% | 9.17% | 13.68% | 5.40% |
| Pre-tax Return on Assets | -12.77% | 1.79% | 2.97% | 12.20% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | -113.56% | 10.03% | 15.03% | n.a |
| Return on Equity | -70.64% | 6.42% | 9.57% | n.a |
| Activity Ratios | ||||
| Accounts Payable Turnover | 33.70 | 12.17 | 12.17 | n.a |
| Payment Days | 27 | 29 | 29 | n.a |
| Total Asset Turnover | 0.11 | 0.13 | 0.14 | n.a |
| Debt Ratios | ||||
| Debt to Net Worth | 4.53 | 4.12 | 3.61 | n.a |
| Current Liab. to Liab. | 0.01 | 0.01 | 0.01 | n.a |
| Liquidity Ratios | ||||
| Net Working Capital | $49,984 | $52,595 | $56,432 | n.a |
| Interest Coverage | -1.30 | 1.33 | 1.56 | n.a |
| Additional Ratios | ||||
| Assets to Sales | 8.89 | 7.99 | 7.23 | n.a |
| Current Debt/Total Assets | 1% | 1% | 1% | n.a |
| Acid Test | 40.24 | 39.60 | 40.44 | n.a |
| Sales/Net Worth | 0.62 | 0.64 | 0.64
Pro Forma Profit and Loss Sales: Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $4,800 Month 6: $2,400 Month 7: $2,400 Month 8: $2,400 Month 9: $2,400 Month 10: $2,400 Month 11: $2,400 Month 12: $2,400 Direct Cost of Sales: Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $480 Month 6: $240 Month 7: $240 Month 8: $240 Month 9: $240 Month 10: $240 Month 11: $240 Month 12: $240 Other Production Expenses: Month 1: $3,000 Month 2: $5,000 Month 3: $5,000 Month 4: $5,000 Month 5: $0 Month 6: $0 Month 7: $0 Month 8: $0 Month 9: $0 Month 10: $0 Month 11: $0 Month 12: $0 Total Cost of Sales: Month 1: $3,000 Month 2: $5,000 Month 3: $5,000 Month 4: $5,000 Month 5: $480 Month 6: $240 Month 7: $240 Month 8: $240 Month 9: $240 Month 10: $240 Month 11: $240 Month 12: $240 Gross Margin: Month 1: ($3,000) Month 2: ($5,000) Month 3: ($5,000) Month 4: ($5,000) Month 5: $4,320 Month 6: $2,160 Month 7: $2,160 Month 8: $2,160 Month 9: $2,160 Month 10: $2,160 Month 11: $2,160 Month 12: $2,160 Gross Margin %: Month 1: 0.00% Month 2: 0.00% Month 3: 0.00% Month 4: 0.00% Month 5: 90.00% Month 6: 90.00% Month 7: 90.00% Month 8: 90.00% Month 9: 90.00% Month 10: 90.00% Month 11: 90.00% Month 12: 90.00% Expenses: Payroll: Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $0 Month 6: $0 Month 7: $0 Month 8: $0 Month 9: $0 Month 10: $0 Month 11: $0 Month 12: $0 Sales and Marketing and Other Expenses: Month 1: $2,100 Month 2: $2,100 Month 3: $2,100 Month 4: $2,300 Month 5: $200 Month 6: $100 Month 7: $100 Month 8: $100 Month 9: $100 Month 10: $100 Month 11: $100 Month 12: $100 Depreciation: Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $400 Month 6: $400 Month 7: $400 Month 8: $400 Month 9: $400 Month 10: $400 Month 11: $400 Month 12: $400 Leased Equipment: Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $0 Month 6: $0 Month 7: $0 Month 8: $0 Month 9: $0 Month 10: $0 Month 11: $0 Month 12: $0 Utilities: Month 1: $400 Month 2: $400 Month 3: $400 Month 4: $300 Month 5: $100 Month 6: $100 Month 7: $100 Month 8: $100 Month 9: $100 Month 10: $100 Month 11: $100 Month 12: $100 Insurance: Month 1: $300 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $0 Month 6: $0 Month 7: $0 Month 8: $0 Month 9: $0 Month 10: $0 Month 11: $0 Month 12: $0 Rent: Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $0 Month 6: $0 Month 7: $0 Month 8: $0 Month 9: $0 Month 10: $0 Month 11: $0 Month 12: $0 Payroll Taxes: 15% Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $0 Month 6: $0 Month 7: $0 Month 8: $0 Month 9: $0 Month 10: $0 Month 11: $0 Month 12: $0 Other: Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $0 Month 6: $0 Month 7: $0 Month 8: $0 Month 9: $0 Month 10: $0 Month 11: $0 Month 12: $0 Total Operating Expenses: Month 1: $2,800 Month 2: $2,500 Month 3: $2,500 Month 4: $2,600 Month 5: $700 Month 6: $600 Month 7: $600 Month 8: $600 Month 9: $600 Month 10: $600 Month 11: $600 Month 12: $600 Profit Before Interest and Taxes: Month 1: ($5,800) Month 2: ($7,500) Month 3: ($7,500) Month 4: ($7,600) Month 5: $3,620 Month 6: $1,560 Month 7: $1,560 Month 8: $1,560 Month 9: $1,560 Month 10: $1,560 Month 11: $1,560 Month 12: $1,560 EBITDA: Month 1: ($5,800) Month 2: ($7,500) Month 3: ($7,500) Month 4: ($7,600) Month 5: $4,020 Month 6: $1,960 Month 7: $1,960 Month 8: $1,960 Month 9: $1,960 Month 10: $1,960 Month 11: $1,960 Month 12: $1,960 Interest Expense: Month 1: $900 Month 2: $898 Month 3: $896 Month 4: $894 Month 5: $892 Month 6: $890 Month 7: $888 Month 8: $886 Month 9: $884 Month 10: $882 Month 11: $880 Month 12: $878 Taxes Incurred: Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $0 Month 6: $0 Month 7: $0 Month 8: $0 Month 9: $0 Month 10: $0 Month 11: $0 Month 12: $0 Net Profit: Month 1: ($6,700) Month 2: ($8,398) Month 3: ($8,396) Month 4: ($8,494) Month 5: $2,728 Month 6: $670 Month 7: $672 Month 8: $674 Month 9: $676 Month 10: $678 Month 11: $680 Month 12: $682 Net Profit/Sales: Month 1: 0.00% Month 2: 0.00% Month 3: 0.00% Month 4: 0.00% Month 5: 56.83% Month 6: 27.91% Month 7: 28.00% Month 8: 28.08% Month 9: 28.17% Month 10: 28.25% Month 11: 28.34% Month 12: 28.42% Pro Forma Cash Flow Cash Received: Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $4,800 Month 6: $2,400 Month 7: $2,400 Month 8: $2,400 Month 9: $2,400 Month 10: $2,400 Month 11: $2,400 Month 12: $2,400 Cash from Operations: Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $4,800 Month 6: $2,400 Month 7: $2,400 Month 8: $2,400 Month 9: $2,400 Month 10: $2,400 Month 11: $2,400 Month 12: $2,400 Cash Sales: Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $4,800 Month 6: $2,400 Month 7: $2,400 Month 8: $2,400 Month 9: $2,400 Month 10: $2,400 Month 11: $2,400 Month 12: $2,400 Subtotal Cash from Operations: Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $4,800 Month 6: $2,400 Month 7: $2,400 Month 8: $2,400 Month 9: $2,400 Month 10: $2,400 Month 11: $2,400 Month 12: $2,400 Additional Cash Received: Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $0 Month 6: $0 Month 7: $0 Month 8: $0 Month 9: $0 Month 10: $0 Month 11: $0 Month 12: $0 Sales Tax, VAT, HST/GST Received: 0.00% Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $0 Month 6: $0 Month 7: $0 Month 8: $0 Month 9: $0 Month 10: $0 Month 11: $0 Month 12: $0 New Current Borrowing: Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $0 Month 6: $0 Month 7: $0 Month 8: $0 Month 9: $0 Month 10: $0 Month 11: $0 Month 12: $0 New Other Liabilities (interest-free): Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $0 Month 6: $0 Month 7: $0 Month 8: $0 Month 9: $0 Month 10: $0 Month 11: $0 Month 12: $0 New Long-term Liabilities: Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $0 Month 6: $0 Month 7: $0 Month 8: $0 Month 9: $0 Month 10: $0 Month 11: $0 Month 12: $0 Sales of Other Current Assets: Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $0 Month 6: $0 Month 7: $0 Month 8: $0 Month 9: $0 Month 10: $0 Month 11: $0 Month 12: $0 Sales of Long-term Assets: Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $0 Month 6: $0 Month 7: $0 Month 8: $0 Month 9: $0 Month 10: $0 Month 11: $0 Month 12: $0 New Investment Received: Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $0 Month 6: $0 Month 7: $0 Month 8: $0 Month 9: $0 Month 10: $0 Month 11: $0 Month 12: $0 Subtotal Cash Received: Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $4,800 Month 6: $2,400 Month 7: $2,400 Month 8: $2,400 Month 9: $2,400 Month 10: $2,400 Month 11: $2,400 Month 12: $2,400 Expenditures: Expenditures from Operations: Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 Month 5: $0 Month 6: $0 Month 7: $0 Month 8: $0 Month 9: $0 Month 10: $0 Month 11: $0 Month 12: $0 Cash Spending: Month 1: $0 Month 2: $0 Month 3: $0 Month 4: $0 |
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Hello!
I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
My career is built on a foundation of helping individuals and businesses thrive financially in an ever-changing economic landscape. At phonenumber247.com, my aim is to demystify the complex world of finance, providing clear, actionable advice that can help you navigate your financial journey with confidence. Whether it’s personal finance management, investment strategies, or understanding the nuances of market dynamics, I’m here to share insights and tools that can propel you towards your financial goals.
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