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Rock Hill Investments Inc.": Trailer Term Paper

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.

The relatively low unemployment rate and high average wage rates for this county also suggest that occupancy rates for Rock Hill will quickly approach 100% and will remain that way assuming appropriate investments and upgrades in the community continue to be made. While there were a number of unknowns involved in the foregoing analysis, the research indicated that a $100,000 investment today will reap major dividends in the years to come, and Rock Hill Investments appears to be an idea whose time has come.
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.

Sources used in this document:
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.
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