Early Children's Play

Program
Business plan

Bld. Stefan cel Mare 022(+373)67728213 curmeiolga999@gmail.com

Chisinau
@@ ZIP 560
Table of Contents
Executive Summary ....................................................................................................... 2
Highlights
Objectives
Mission Statement
Description of Business ................................................................................................. 4
Company Ownership/Legal Entity
Location
Products and Services
Service
Management
Financial Management
Start-Up/Acquisition Summary
Marketing ...................................................................................................................... 14
Market Analysis
Market Segmentation
Competition
Pricing
Appendix ....................................................................................................................... 18
Start-Up Expenses
Determining Start-Up Capital
Cash Flow
Income Projection Statement
Profit and Loss Statement
Balance Sheet
Sales Forecast
Break-Even Analysis
Executive Summary
Kids’Island is a children's play and music program that offers a series of parent/child programs devoted
to the physical, emotional, social and artistical development of children. We offer nine different weekly
classes for children newborn through five years. The activities are designed to improve balance,
coordination and other sensory stimuli while reinforcing good social skills in a group play environment.

Kids’Island also offers music and drawing classes. Children 16 months through four years, will enjoy
singing, dancing and painting while getting their first taste of different musical beats and rhythms and to
learn to express themselves through painting. Each week, new musical styles will be introduced, such as
jazz, contemporary, and classical tunes. Activities such as instrument exploration, songs and movement
to music are designed to provide a positive musical experience for both parents and young children.

Kids’Island offers a unique service in that there is no other program like it in Chisinau . Though the city
does run some classes for children through their parks and recreation department, they are not part of a
comprehensive growth program for pre-schoolers.

Highlights

Curmei Olga, co-owner of Kids Island , has experience with children being an international volunteer

for 2 years and also gained experience in producing music and arts due to an Erasmus project where

she had the opportunity to work in a music and arts development organization in United Kingdom . She is

starting Kids Island to offer parents and children a nurturing environment in which to spend time together

and play, she believes that art and music can be empowering tools and forms of expression for people in

all stages of life

Financial Overview
Sales

Net
Profit

EARLY CHILDREN'S PLAY PROGRAM - [SELECT DATE] 2

Objectives

The objectives of Kids’Land are as follows:

 Fill classes to 70% capacity by end of first year of operation.

 Retain at least 50% of children moving from one class level to the next.

 Increase the number of families participating in classes by 15% during the second year of operation.

Mission Statement

The mission of Kids’Island is to promote the physical, emotional , social , artistical development of

children. Parents are also a central part of Kids’Island activities. When parents enter their child's world of

play and imagination, the child blossoms with more confidence to explore and learn. Time spent playing

with mom or dad contributes to healthy emotional development and will also build trust between parent

and child.

Kids’Island is a children's play and music program that offers a series of parent/child programs devoted to

the physical, emotional, social and artistical development of children. The program will operate as a

limited partnership. Curmei Olga will manage the daily operation of Kids Island. A silent partner will have

accounting oversight responsibilities.

EARLY CHILDREN'S PLAY PROGRAM - [SELECT DATE] 3

Description of Business
Kids Island is a children's play and music program that offers a series of parent/child programs devoted to
the physical, emotional and social development of children. The program will operate as a limited
partnership. Barbara Miller will manage the daily operation of Bees' Circus. A silent partner will have
accounting oversight responsibilities.

Company Ownership/Legal Entity

Bees' Circus is owned by Barbara Miller and a silent partner.

Location

Kids’Island is located in the center of Chisinau. The program space is 7,000 square feet and includes a

music room and a party room. Up to 40 children can play and work in the space at the same time.

Products and Services

Kids Island offers six different weekly classes for children newborn through four years. Activities are
designed to help children develop balance, coordination, focus and other sensory stimuli while having fun

in a group play environment.

Kids Island also offers three music classes. Children 16 months through four years get to sing and move

while getting their first taste of different musical beats and rhythms. Teachers introduce children to new

musical styles each week, such as jazz, contemporary, and classical tunes. Activities such as instrument

exploration, songs and movement to music are designed to provide a positive musical experience for

parents and young children.

EARLY CHILDREN'S PLAY PROGRAM - [SELECT DATE] 4

All play and music classes last 45 minutes and are taught to child-parent pairs in small groups. The fee is

50$ per class. The parents can pick which two weekday day sessions they want to attend with their

children. Each class is a month long.

New Bees (newborn) classes addresses the special needs of newborns and their parents. Activities are

designed to gently stimulate the baby's learning skills with special toys, singing and gentle play.

Baby Butterflies (6 - 14 months) will indulge your child's natural curiosity and offer creative ways to

practice emerging skills through fun-filled exploration of tunnels, slides, climbers, songs, movement

activities, parachute play and more.

Toddler chameleons (14 - 24 months) will use equipment and activities to learn cause and effect,

coordination, balance and motor skill development. Playful movement activities and equipment

exploration build pre- and early walking skills, while songs enrich emerging language.

Running Bunnies (24 -30 months) challenges a child's growing body with slides, climbers, balls and

tunnels. Activities also focus on language skills and social interaction.

Hasty Foxes (30- 36 months) will focus on themes like "Dinosaur Day," "Under the Sea," and "Forest

Fun" with movement stories, puppetry and songs. Physical activity will be combined with imaginative play

where children will construct stories. Listening skills and body awareness grow as your child explores our

playscapes, creates roles and predicts outcomes. Playfully structured movement through music provide

experiences in group interaction and social development.

Jumping Kangaroos (37- 46 months) will explore pre-sports and pre-gymnastic skills including kicking,

throwing and catching. Each exciting class builds listening skills and coordination while emphasizing

cooperative play and encouraging new friendships.

The music program has three levels.

Humming Kittens (16- 24 months) will build a repertoire of songs to sing together that supports your

child's awareness of melody, pitch and rhythm. Children learn musical phrasing, rhythm and simple

EARLY CHILDREN'S PLAY PROGRAM - [SELECT DATE] 5

musical rules through playful scarf activities, baby dances and ball games. Explore safe and age

appropriate instruments, enjoy soothing lullabies from around the world and immerse your baby in

activities that build a solid musical foundation to grow on.

Drumming Pandas (25- 36 months) will use activities such as lap rides, dancing and instrument

exploration to help children develop a sense of steady beat and create an atmosphere of fun. Pitch and

tone are explored through songs and listening activities. Every three weeks, a new musical style is

introduced, exposing your child to a variety of musical genres such as latin, rock 'n' roll, and classical for a

musical learning adventure.

Singing birds (37 - 48 months) is designed to support and challenge emerging skills, together you'll

share a world of music. Children are encouraged to discover their singing voice and make music of their

own as they explore different instruments. Self esteem and social skills get a real boost as your child

engages in group songs, chants and finger plays and imagination and listening skills build as children

express themselves to music.

Birthday parties at Kids Island. In addition to the extensive program of classes, Kids Island can host a
child's birthday party providing great activities for kids and an easy experience for parents. An
enthusiastic Kids Island staff member leads the activities as the birthday child and his or her friends and
parents play, laugh, and sing together, creating a memorable celebratio

Management

Curmei Olga will be the Director of the program. She has been an international volonteer for over 2

years and has been instrumental in the development of music and arts development organization in

United Kingdom . Most recently, Olga is the youth activity planner and coordinator for the NGO

“ La Via “. She manages a team of ten and also organizes and schedules all youth activity classes

offered by the city.

EARLY CHILDREN'S PLAY PROGRAM - [SELECT DATE] 6

Financial Management

BREAK-EVEN ANALYSIS

Monthly Revenue Break-even $10,459

Assumptions:

Average Percent Variable Cost 5%

Estimated Monthly Fixed Cost $9,9665

Projected Profit and Loss

The following table and chart highlight the projected profit and loss for three years

PRO FORMA PROFIT AND LOSS

YEAR 1 YEAR 2 YEAR 3

Sales $122,100 $136,000 $157,500

Direct Cost of Sales $5,500 $4,400 $5,300

Other Production Expenses $0 $0 $0

TOTAL COST OF SALES $5,500 $4,800 $5,300

Gross Margin $116,400 $132,200 $140,700

Gross Margin % 46.29% 45.40% 45.41%

Expenses

Payroll $90,000 $94,000 $100,000

EARLY CHILDREN'S PLAY PROGRAM - [SELECT DATE] 7

Sales and Marketing and Other Expenses $1,200 $1.400 $1,400

Depreciation $0 $0 $0

Leased Equipment $0 $0 $0

Utilities $1,500 $1.500 $1.500

Insurance $2.400 $2.400 $2.400

Rent $11,000 $11,000 $11,000

Payroll Taxes $14,000 $14,650 $15,300

Other $0 $0 $0

Total Operating Expenses $117,200 $126,450 $134,100

Profit Before Interest and Taxes ($3.250) $4.350 $17,600

EBITDA ($3.250) $4.450 $16,600

Interest Expense $3,549 $3,351 $2,918

Taxes Incurred $0 $400 $4,805

Net Profit ($12,049) $1,099 $11,477

Net Profit/Sales -5.75% 0.77% 7.26%

EARLY CHILDREN'S PLAY PROGRAM - [SELECT DATE] 8

 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 $122,100 $132,000 $150,000

SUBTOTAL CASH FROM OPERATIONS $122,100 $132,000 $140,000

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 $122,100 $134,000 $153,000

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

EARLY CHILDREN'S PLAY PROGRAM - [SELECT DATE] 9

Cash Spending $90,000 $93,000 $101,000

Bill Payments $35,225 $34,440 $44,200

SUBTOTAL SPENT ON OPERATIONS $125,225 $130,440 $150,200

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 $4.128 $4,128 $4,128

Purchase Other Current Assets $0 $0 $0

Purchase Long-term Assets $0 $0 $0

Dividends $0 $0 $0

SUBTOTAL CASH SPENT $131,553 $134,768 $140,528

Net Cash Flow ($8,353) ($2,768) $7,472

Cash Balance $17,447 $15,680 $14151

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

EARLY CHILDREN'S PLAY PROGRAM - [SELECT DATE] 10

Current Assets

Cash $19,447 $16,680 $23,151

Other Current Assets $0 $0 $0

TOTAL CURRENT ASSETS $18,447 $18,680 $23,151

Long-term Assets

Long-term Assets $15,000 $15,000 $15,000

Accumulated Depreciation $0 $0 $0

TOTAL LONG-TERM ASSETS $15,000 $15,000 $15,000

TOTAL ASSETS $32,447 $27,680 36,151

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable $2,024 $2,385 $3,407

Current Borrowing $15,000 $15,000 $15,000

Other Current Liabilities $0 $0 $0

SUBTOTAL CURRENT LIABILITIES $17,024 $17,485 $19,407

Long-term Liabilities $20,672 $17,344 $12,016

TOTAL LIABILITIES $35,696 $36,829 $35,423

Paid-in Capital $34,000 $34,000 $34,000

Retained Earnings ($34,200) ($41,249) ($40,149)

Earnings ($7,049) $1,099 $10,877

TOTAL CAPITAL ($6,249) ($5,149) $6,728

EARLY CHILDREN'S PLAY PROGRAM - [SELECT DATE] 11

TOTAL LIABILITIES AND CAPITAL $31,447 $29,680 $37,151

Net Worth ($6,249) ($5,149) $6,728

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 8351, Child Day Care Services, are shown for comparison.

RATIO ANALYSIS

YEAR 1 YEAR 2 YEAR 3 INDUSTRY

PROFILE

Sales Growth 0.00% 5.38% 7.81% 4.50%

Percent of Total Assets

Other Current Assets 0.00% 0.00% 0.00% 12.80%

Total Current Assets 26.45% 23.73% 30.08% 21.70%

Long-term Assets 22.55% 24.27% 16.92% 26.30%

TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%

Current Liabilities 26.35% 30.13% 23.78% 15.80%

Long-term Liabilities 30.66% 23.87% 16.29% 15.00%

Total Liabilities 54.01% 55.01% 41.06% 31.80%

NET WORTH -9.01% -8.01% 8.94% 17.20%

Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00%

EARLY CHILDREN'S PLAY PROGRAM - [SELECT DATE] 12

Gross Margin 43.29% 43.40% 45.41% 0.00%

Selling, General & Administrative Expenses 55.04% 45.63% 43.15% 32.60%

Advertising Expenses 0.43% 0.50% 0.45% 0.33%

Profit Before Interest and Taxes -1.33% 1.58% 6.25% 1.30%

Main Ratios

Current 0.44 0.40 0.70 0.50

Quick 0.46 0.40 0.50 0.60

Total Debt to Total Assets 65.01% 55.01% 41.06% 40.80%

Pre-tax Return on Net Worth 56.70% -14.55% 123.77% 2.40%

Pre-tax Return on Assets -10.80% 3.03% 21.49% 7.60%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin -2.75% 0.33% 3.26% n.a

Return on Equity 0.00% 0.00% 80.74% n.a

Activity Ratios

Accounts Payable Turnover 7.57 5.17 16.17 n.a

Payment Days 13 13 14 n.a

Total Asset Turnover 1.79 2.56 2.19 n.a

Debt Ratios

Debt to Net Worth 0.00 0.00 1.90 n.a

Current Liab. to Liab. 0.23 0.26 0.30 n.a

Liquidity Ratios

EARLY CHILDREN'S PLAY PROGRAM - [SELECT DATE] 13

Net Working Capital ($230) ($3,405) $3,744 n.a

Interest Coverage -0.43 0.67 3.23 n.a

Additional Ratios

Assets to Sales 0.13 0.11 0.12 n.a

Current Debt/Total Assets 26% 30% 25% n.a

Acid Test 0.43 0.40 0.70 n.a

Sales/Net Worth 0.00 0.00 12.33 n.a

Dividend Payout 0.00 0.00 0.00 n.a

Marketing

Market Analysis

Over the past five years, there has been tremendous housing growth in the affluent northwest
area of the city but also in Chisinau , given the fact that the migration from rural areas to urban
area influenced in a certain level this growth . To date approximative 1000 new housing units
have been built in the area to accommodate the growth of the city's population. Most these units
are being bought or rented by young families with young children or students coming from rural
areas.

Currently, there is no park program servicing the area. It is anticipated that a new park will be
created for the area in the next three years to serve the estimated 10,000 families in the area.

EARLY CHILDREN'S PLAY PROGRAM - [SELECT DATE] 14

The area also has 20 private child care centers that serve over 1,600 children, ages one to
four. It is estimated that there are 5,000 children in Cisinau under the age of four.

Currently, there are no other activity or music programs in the area that serves the pre-
schoolers.

Kids Island will purse both the children at home and children at the private child care centers

Market Segmentation

Bees' Circus will focus on the two target groups:

 At home pre-schoolers

 Childcare pre-schoolers

Local Market Growth

40%
% growth over prior period

35%
30%
25%
20%
15%
10%
5%
0%
2008 2012 2016

MARKET ANALYSIS

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

EARLY CHILDREN'S PLAY PROGRAM - [SELECT DATE] 15

Potential Customers Growth CAGR

At Home Pre-schoolers 10% 1,400 1,740 2,114 2,325 2,478 10.00%

Childcare Pre-shoolers 20% 800 920 1.104 1,365 1,318 20.00%

Total 6.49% 2,500 2,260 3,218 3,090 2,196 13.49%

Market Segments

Competition
In recent years, however, the number of early children development centers has increased
considerably due to the fact that number of families with children also grew and there was a strongly
demand for these centers . At present, we have 28 early child development centers in the Chisinau
("INDIGO" "Elite Academy", "Mary Poppins", "FasTracKids" etc.) These are either public
organizations or state childcare centers or financially supported centers of various foundations. Main
activities include dance, music, theater, information technology, plastic arts, personal development
studio, emotional development studio, creative thinking through drawing and modeling, origami,
quilling, telegraphy, speech development music, table tennis, chess, tourism. , there are also free
baby centers but these are especially for children from 4 years of age so they do not present a
competition for Kids Island. Therefore, a center that focuses on newborn babies up to 4 years
where children have the opportunity to learn music at a more advanced level, instrumental music
different genres of music and everything the center s offers does not exist in RM.

Pricing
NEEEED HELP

EARLY CHILDREN'S PLAY PROGRAM - [SELECT DATE] 16

Advertising and Promotion
Kids Island will start by sending direct mailings to parents of young children in Chisinau. The mailer will

announce an open house invitation to visit the facility. In addition, Kids Island will offer a 20% discount on

its activity and music classes.

Kids Island will also offer a discounted group rate (20%) to the area's announce centers.

Strategy and Implementation

The sales strategy of Kids Island will be to build from a base of satisfied customers. The program will

offer a 20% discount on class fees for each successful referral to Kids Island. We will also offer one

session free visits for any parent and child interested in exploring our program.

EARLY CHILDREN'S PLAY PROGRAM - [SELECT DATE] 17

Appendix
Start-Up Expenses
Business Licenses

Incorporation Expenses

Deposits

Bank Account

Rent

Interior Modifications

Equipment/Machinery Required:

Item 1

Item 2

Item 3

Total Equipment/Machinery

Insurance

Stationery/Business Cards

Brochures

Pre-Opening Advertising

Opening Inventory

Other (list):

Item 1

Item 2

TOTAL STARTUP EXPENSES

EARLY CHILDREN'S PLAY PROGRAM - [SELECT DATE] 18

SALES FORECAST

MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH
1 2 3 4 5 6 7 8 9 10 11 12

Sales

Classes 0% $2,000 $4,000 $6,000 $7,000 $8,000 $10,000 $11,000 $11,000 $12,000 $13,000 $15,000 $15,000

Parties 0% $200 $400 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

TOTAL $2.200 $4.400 $7,000 $8,000 $9,000 $9,000 $12,000 $12,000 $13,000 $13,000 $15,000 $15,000
SALES

Direct Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
Cost of 10 11 12
Sales

Classes $100 $200 $300 $600 $900 $500 $650 $650 $650 $750 $800 $700

Parties $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal $100 $200 $300 $300 $400 $500 $700 $700 $650 $750 $700 $700
Direct
Cost of
Sales

SALES FORECAST

MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH
1 2 3 4 5 6 7 8 9 10 11 12

Sales

Classes 0% $2,000 $4,000 $6,000 $7,000 $8,000 $10,000 $11,000 $11,000 $12,000 $12,000 $15,000 $15,000

Parties 0% $200 $400 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

TOTAL $2.200 $4,400 $12,000 $14,000 $14,000 $10,500 $12,000 $12,000 $13,000 $13,000 $15,000 $15,000
SALES

Direct Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
Cost of 10 11 12
Sales

Classes $100 $200 $300 $340 $400 $500 $650 $650 $750 $750 $750 $750

Parties $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal $100 $200 $300 $340 $400 $500 $650 $50 $750 $750 $750 $750
Direct
Cost of
Sales

MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH
1 2 3 4 5 6 7 8 9 10 11 12

Plan 1 2 3 4 5 6 7 8 9 10 11 12
Month

Current 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Interest

EARLY CHILDREN'S PLAY PROGRAM - [SELECT DATE] 19

Rate

Long- 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
term
Interest
Rate

Tax 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Rate

Other 0 0 0 0 0 0 0 0 0 0 0 0

RO FORMA PROFIT AND LOSS

MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH
1 2 3 4 5 6 7 8 9 10 11 12

Sales $2.200 $4.400 $12,000 $14,000 $14,000 $10,500 12,000 $12,000 $13,000 $13,000 $15,000 $15,000

Direct Cost $100 $200 $300 $400 $400 $500 $650 $650 $750 $750 $700 $700
of Sales

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Production
Expenses

TOTAL $100 $200 $300 $400 $400 $500 $550 &550 $750 $750 $700 $700
COST OF
SALES

Gross $2,100 $4,200 $6,200 $7,150 $7,100 $10,000 $11,350 $11,350 $12,350 $12,350 $14,500 $14,500
Margin

Gross 95.45% 95.45% 95.71% 95.63% 95.56% 95.24% 95.21% 95.21% 95.19% 95.19% 95.16% 95.16%
Margin %

Expenses

Payroll $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500

Sales and $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Marketing
and Other
Expenses

Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Leased $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Equipment

Utilities $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125

Insurance $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200

Rent $1,000 $1.000 $1.000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $0

Payroll 15% $1,125 $1.125 $1.125 $1.125 $1.125 $1.125 $1.125 $1.125 $1.125 $1.125 $1.125 $1.125
Taxes

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total $10,050 $10,050 $10,050 $10,050 $10,050 $10,050 $10,050 $10,050 $10,050 $10,050 $10,050 6,050
Operating
Expenses

Profit Before ($6,900) ($5,700) ($3,700) ($2,400) ($1,400) ($50) $1,350 $1,350 $2,250 $2,250 $4,400 $5,400

EARLY CHILDREN'S PLAY PROGRAM - [SELECT DATE] 20

Interest and
Taxes

EBITDA ($7,900) ($5,700) ($2,700) ($2,400) ($1,400) ($50) $1.450 $1,350 $2,350 $2,350 $4,400 $5,400

Interest $331 $315 $229 $244 $238 $232 $226 $220 $215 $209 $203 $297
Expense

Taxes $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Incurred

Net Profit ($8,561) ($6,355) ($3,349) ($2,444) ($1,538) ($332) $1,124 $1,130 $1,035 $2,041 $4,397 $5,403

Net - -70.40% -25.50% -16.02% -9.65% -1.49% 4.45% 4.47% 7.52% 7.54% 14.38% 16.85%
Profit/Sales 156.38%

PRO FORMA CASH FLOW

MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH
1 2 3 4 5 6 7 8 9 10 11 12

Cash Received

Cash from
Operations

Cash Sales $2.200 $4.400 $12,000 $14,000 $14,000 $10,000 $12,000 $12,000 $13,000 $13,000 $15,000 $15,000

SUBTOTAL $2.200 $4.400 $7,000 $8,000 $9000 $10,000 $12,000 $12,000 $13,000 $13,000 $15,000 $15,000
CASH FROM
OPERATIONS

Additional
Cash Received

Sales Tax, 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

VAT, HST/GST
Received

New Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing

New Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
(interest-free)

New Long- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
term Liabilities

Sales of Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Assets

Sales of Long- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
term Assets

New $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Investment
Received

SUBTOTAL $4,400 $4,400 $7,000 $6,000 $9,000 $10,000 $12,000 $12,000 $13,000 $13,000 $15,000 $15,000
CASH
RECEIVED

Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month 11 Month
10 12

Expenditures
from
Operations

Cash $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000

EARLY CHILDREN'S PLAY PROGRAM - [SELECT DATE] 21

Spending

Bill Payments $99 $2,967 $3,162 $3,352 $3,447 $3,544 $2,737 $2,876 $2,874 $2,964 $2,967 $3,136

SUBTOTAL $7,199 $10,967 $10,162 $10,352 $10,447 $1O,544 $10,737 $10,876 $10,874 $10,964 $1O,967 $10,136
SPENT ON
OPERATIONS

Additional
Cash Spent

Sales Tax, $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
VAT, HST/GST
Paid Out

Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment of
Current
Borrowing

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Principal
Repayment

Long-term $294 $294 $294 $294 $294 $294 $294 $294 $294 $294 $294 $294
Liabilities
Principal
Repayment

Purchase $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current
Assets

Purchase $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term
Assets

Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

SUBTOTAL $7,893 $10,661 $10,856 $11,046 $11,141 $11,238 $11,431 $11,570 $11,568 $11,658 $11,661 $11,830
CASH SPENT

Net Cash Flow ($5,493) ($6,861) ($3,856) ($3,046) ($2,141) ($738) $669 $730 $1,432 $1,342 $4,339 $4,170

Cash Balance $20,307 $13,446 $9,590 $6,544 4,403 $3,165 $3,734 $5,164 $7,597 $8,938 $13,277 $17,447

PRO FORMA BALANCE SHEET

MONTH MONTH 2 MONTH 3 MONTH 4 MONTH 5 MONTH 6 MONTH 7 MONTH 8 MONTH 9 MONTH MO
1 10

Assets Starting
Balances

Current
Assets

Cash $26,800 $20,307 $16,446 $9,590 $6,544 $4,403 $4,165 $4,734 $5,164 $7,597 $8,938 $13

Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets

TOTAL $25,800 $20,307 $14,446 $9,590 $6,544 $3,403 $4,165 $4,734 $5,164 $7,597 $6,938 $13,
CURRENT
ASSETS

Long-term
Assets

EARLY CHILDREN'S PLAY PROGRAM - [SELECT DATE] 22

Long-term $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15
Assets

Accumulated $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation

TOTAL $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,
LONG-TERM
ASSETS

TOTAL $40,800 $34,307 $28,446 $24,590 $21,544 $19,403 $18,165 $18,734 $20,164 $21,597 $25,938 $28,
ASSETS

Liabilities and Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Mont
Capital

Current
Liabilities

Accounts $0 $2,762 $2,950 $3,138 $3,229 $3,320 $3,508 $3,647 $3,641 $3,732 $3,727 $3
Payable

Current $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15
Borrowing

Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities

SUBTOTAL $15,000 $18,762 $18,950 $18,138 $18,229 $18,320 $18,508 $18,647 $18,641 $18,732 $18,727 $18,
CURRENT
LIABILITIES

Long-term $25,000 $24,306 $23,612 $24,918 $23,224 $23,530 $23,836 $23,142 $22,448 $21,754 $21,060 $21
Liabilities

TOTAL $40,000 $43,068 $42,562 $42,056 $41,453 $41,850 $41,344 $40,789 $40,089 $40,486 $39,787 $39,
LIABILITIES

Paid-in $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35
Capital

Retained ($34,200) ($34,200) ($34,200) ($34,200) ($33,200) ($44,200) ($34,200) ($34,200) ($44,200) ($34,200) ($34,200) ($34,
Earnings

Earnings $0 ($8,561) ($14,916) ($18,265) ($20,709) ($24,247) ($21,979) ($21,855) ($21,725) ($17,690) ($16,649) ($12,

TOTAL $900 ($7,761) ($13,116) ($17,465) ($19,909) ($21,447) ($22,179) ($21,055) ($19,925) ($16,890) ($15,849) ($16,0
CAPITAL

TOTAL $40,800 $35,307 $25,446 $20,590 $23,544 $19,403 $18,165 $19,734 $20,164 $22,597 $23,938 $26,
LIABILITIES
AND
CAPITAL

Net Worth $1900 ($7,761) ($13,116) ($15,465) ($19,909) ($20,447) ($22,179) ($21,055) ($10,925) ($16,890) ($15,849) ($12,

EARLY CHILDREN'S PLAY PROGRAM - [SELECT DATE] 23