Threats:
Unforeseen downturns in local economy due to plant closures or other major layoffs.
Relative low barriers to entry for competitors.
Financial Statements.
A proforma financial statement for Rock Hill's first five years is provided in Table 2 and graphically illustrated in Figures 2 and 3 below.
Table 2.
Financial Proformas for Rock Hill Investment (best case scenario).
Cash Flow
Year 1
Year 2
Year 3
Year 4
Year 5
Opening cash balance
Cash inflows
Capital funds
Total cash inflows
Cash outflows
Purchase of mobile home units*
Maintenance
Research and development
Training
Marketing budget
State income tax
License fees
Total cash outflows
Net cash flow
Closing cash balance
Timely opportunities for purchase decisions concerning new vs. used mobile homes will affect these figures and the return on such investments.
Figure 2. Total cash inflows: Years 1 through 5 for Rock Hill Investments.
Figure 3. Total cash outflow and net cash flow: Years 1 through 5 for Rock Hill Investments.
References
Black's law dictionary. (1990). St. Paul, MN: West Publishing Co.
Blais, P. (2002, December). On the road again. Planning, 68(12), 4.
Hurley, a. (2001). Diners, bowling alleys, and trailer parks: Chasing the American dream in the postwar consumer culture. New York: Basic Books.
Jasper County. (2007). ePodunk Inc. [Online]. Available: http://www.epodunk.com/cgi-bin/genInfo.php?locIndex=22696.
Dennick, R., & Exley, K. (2004). Small group teaching. New York: RoutledgeFalmer.
Stromberg, M. (2005, February). Here to stay: Mobile home parks hold their own. Planning, 71(2), 10.
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