Breeding stock imported from Europe typically averages $10,000 U.S. per dog after import expenses and other costs.
These assumptions based on the experience and past knowledge of the staff as well as industry averages. It is felt that they represent realistic estimates. It is difficult to predict certain aspects of the financial data, such as the number of small dogs that will need grooming vs. some of the large dogs that will come in. Conservative estimates give room for error. This was the method chosen for the estimation of proforma statements.
Initial capital will come from $50,000 total form the partners. A small business loan of $495,000.00 will be used to finance the remainder of capital start up costs, plus one year's operating expenses. The term of the loan will be 10 years at an annual rate of 4.5%.
Pro-Forma Balance Sheet
ASSETS
Current Assets
Cash
Net accounts receivable
Inventory
Temporary investment
Prepaid expenses
Total Current Assets $316,691 $402,262 $424,276
Fixed Assets
Long-term investments
Land
Buildings (net of depreciation)
Plant & equipment (net)
Furniture & fixtures (net)
Total Net Fixed Assets $2,270 $2,323 $2,420
TOTAL ASSETS
LIABILITIES
Current Liabilities
Accounts payable
Short-term notes
Current portion of long-term notes
Accruals & other payables
Total Current Liabilities $298 $305 $312
Long-term Liabilities
Mortgage
Other long-term liabilities
Total Long-term Liabilities $1,340 $1,416 $1,505
SHAREHOLDERS' EQUITY
Capital stock
Retained earnings
Total Shareholders' Equity $317,323 $402,864 $424,879
TOTAL LIABILITIES & EQUITY
Proforma Income Statement
REVENUE
Gross sales
Less sales returns and allowances
Net Sales
COST OF SALES
Beginning inventory
Plus goods purchased / manufactured
Total Goods Available
Less ending inventory
y
Total Cost of Goods Sold
Gross Profit (Loss)
OPERATING EXPENSES
Selling
Salaries and wages
Commissions
Advertising
Depreciation
Total Selling Expenses
General/Administrative
Salaries and wages
Employee benefits
Payroll taxes
Insurance
Mortgage
Utilities
Depreciation & amortization
Office supplies
Travel & entertainment
Postage
Equipment maintenance & rental
Interest
Furniture & equipment
Total General/Administrative Expenses
Total Operating Expenses
Net Income Before Taxes
Taxes on income
Net Income After Taxes
Extraordinary gain or loss
Income tax on extraordinary gain
NET INCOME (LOSS)
36-Month Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals Product Name Boarding Units 375-375 375-375 375-375 375-375 375-375 375-375 4,500 Selling Price $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 112500 Product Name Breeding Units 0-0 0-0 0-0 0-8 8-0 0-0-16 Selling Price $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $4,000.00 $4,000.00 0 $0.00 $0.00 64000 Product Name Grooming Units 300-300 300-300 300-300 300-300 300-300 300-300 3,600 Selling Price $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 90000 $266,500
2009 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals Product Name Boarding Units 750-750 750-750 750-750 750-750 750-750 750-750 9,000 Selling Price $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 225000 Product Name Breeding Units 0-0 0-0 0-0 0-8 8-0 0-0-16 Selling Price $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $4,000.00 $4,000.00 $0.00 $0.00 $0.00 64000 Product Name Grooming Units 375-375 375-375 375-375 375-375 375-375 375-375 4,500 Selling Price $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 112500 $402,000 2010 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals Product Name Boarding Units 750-750 750-750 750-750…
