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Table of Contents

1.0 Executive Summary.....................................................................................................................1

Chart: Highlights...........................................................................................................................1
1.1 Objectives....................................................................................................................................1
1.2 Mission...........................................................................................................................................2
2.0 Company Summary......................................................................................................................2
2.1 Company Ownership................................................................................................................2
2.2 Start-up Summary....................................................................................................................2
Chart: Start-up..............................................................................................................................2
Table: Start-up Funding..............................................................................................................3
Table: Start-up...............................................................................................................................3
2.3 Company Locations and Facilities.......................................................................................4
3.0 Products............................................................................................................................................4
4.0 Market Analysis Summary.........................................................................................................4
4.1 Market Segmentation..............................................................................................................4
Table: Market Analysis................................................................................................................4
Chart: Market Analysis (Pie).....................................................................................................5
5.0 Strategy and Implementation Summary.............................................................................5
5.1 Competitive Edge......................................................................................................................5
5.2 Sales Strategy............................................................................................................................6
5.2.1 Sales Forecast....................................................................................................................6
Table: Sales Forecast...............................................................................................................6
Chart: Sales Monthly...............................................................................................................7
5.3 Marketing Strategy...................................................................................................................7
6.0 Management Summary...............................................................................................................7
6.1 Personnel Plan............................................................................................................................7
Table: Personnel............................................................................................................................8
7.0 Financial Plan..................................................................................................................................8
7.0 Financial Plan..................................................................................................................................8
7.1 Break-even Analysis.................................................................................................................8
Table: Break-even Analysis.......................................................................................................8
Chart: Break-even Analysis......................................................................................................8
7.2 Projected Profit and Loss.......................................................................................................9
Chart: Profit Monthly...................................................................................................................9
Table: Profit and Loss..................................................................................................................9
7.3 Projected Balance Sheet......................................................................................................10
7.3 Projected Balance Sheet......................................................................................................10
Table: Balance Sheet.................................................................................................................10
7.4 Projected Cash Flow...............................................................................................................11
Chart: Cash...................................................................................................................................12
Table: Cash Flow..........................................................................................................................11
7.5 Business Ratios........................................................................................................................13
Table: Ratios.................................................................................................................................13
Table: Sales Forecast...........................................................................................................................1
Table: Personnel....................................................................................................................................2
Page 1

Table of Contents

Table:
Table:
Table:
Table:
Table:
Table:
Table:
Table:
Table:

Personnel....................................................................................................................................2
General Assumptions.............................................................................................................3
General Assumptions.............................................................................................................3
Profit and Loss..........................................................................................................................4
Profit and Loss..........................................................................................................................4
Cash Flow...................................................................................................................................5
Cash Flow...................................................................................................................................5
Balance Sheet...........................................................................................................................6
Balance Sheet...........................................................................................................................6

Page 2

Silver Bear Lodge

1.0 Executive Summary

The Silver Bear Lodge is located three blocks from Crest Lake Village, mid-mountain at Bear
Valley Resort and on the free shuttle system. Located in the recently expanded Crest Canyon
area, Silver Bear Lodge will offer customers 12 two-bedroom units with underground parking,
fully-equipped kitchens, laundry facilities and stone fireplaces. Silver Bear Lodge also will offer a
common-area outdoor hot tub as well as an on-site store and on-site front desk service.
Each year, over 150,000 skiers and nature lovers visit the Bear Valley Resort area. On average,
visitors spend over Rs.250 million, annually, for lodging, food, and recreational activities at Bear
Valley Resort.
Marty Snyderman and Luke Roth, co-owners of the Silver Bear Lodge, will operate the lodge as
a ski resort during the months of November to April. During the Spring and Summer months
(May to August), the Silver Bear Lodge will operate as a summer resort. The lodge will be
closed during the months of September and October.

Chart: Highlights

1.1 Objectives
The objectives of the Silver Bear Lodge for the first three years of operation include:

Exceeding customer's expectations for luxury apres ski accommodations.

Maintaining an 90% occupancy rate during the peak periods.
Assembling an experienced and effective staff.

Page 1

Silver Bear Lodge

1.2 Mission
The mission of Silver Bear Lodge is to become the number one lodge of choice with visitors to
Bear Valley Resort.
2.0 Company Summary
The Silver Bear Lodge, located in the recently opened Crest Canyon area, has 12 two-bedroom
units with underground parking, fully-equipped kitchens, laundry facilities and stone fireplaces.
Silver Bear Lodge also has a common-area outdoor hot tub as well as an on-site store and onsite front desk service.
2.1 Company Ownership
Marty Snyderman and Luke Roth are co-owners of the Silver Bear Lodge.
2.2 Start-up Summary
Marty Snyderman and Luke Roth will each invest Rs. 100,000. They will also secure a
mortgage to purchase the property for Rs. 250,000 and an SBA loan for Rs. 100,000.
Chart: Start-up

Page 2

Silver Bear Lodge

Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required

Rs. 185,400
Rs. 364,600
Rs. 550,000

Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

Rs. 350,000
Rs. 14,600
Rs.0
Rs. 14,600
Rs. 364,600

Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities

Rs.0
Rs. 350,000
Rs.0
Rs.0
Rs. 350,000

Capital
Planned Investment
Marty Snyderman
Luke Roth
Additional Investment Requirement
Total Planned Investment
Loss at Start-up (Start-up Expenses)
Total Capital

Rs. 100,000
Rs. 100,000
Rs.0
Rs. 200,000
(Rs. 185,400)
Rs. 14,600

Total Capital and Liabilities

Rs. 364,600

Total Funding

Rs. 550,000

Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Brochures
Rental Shop Setup
Property Down payment
Lodge Setup
Store Setup
Insurance
Total Start-up Expenses

Rs. 5,000
Rs.400
Rs. 6,000
Rs. 50,000
Rs. 50,000
Rs. 20,000
Rs. 50,000
Rs. 4,000
Rs. 185,400

Start-up Assets
Cash Required
Other Current Assets
Long-term Assets
Total Assets

Rs. 14,600
Rs.0
Rs. 350,000
Rs. 364,600

Page 3

Silver Bear Lodge

Total Requirements

Rs. 550,000

2.3 Company Locations and Facilities

The charm and solitude of Bear Valley's secluded mountain setting is found just 36 miles from
the Richmond International Airport.
3.0 Products
Silver Bear Lodge will offer customers 12 two-bedroom units, fully-equipped kitchens, laundry
facilities and stone fireplaces. Silver Bear Lodge will offer a common-area outdoor hot tub as
well as the following services on-site:

Food store
Ski rental/clothing shop
Front desk service

4.0 Market Analysis Summary

Resort hotel development and operation in the Bear Valley Resort area has been very profitable
and successful due to the economic upturn experienced in the early and mid-90's. Time-share /
resort hotel development and investments into ski resorts nationwide are currently going
strong. In the past two years, sales of time-shares in the Bear Valley Resort area have
increased by over 35 percent. There are forty condominiums, lodges, inns and hotels within two
miles of the resort. Each year, room occupancy is close to 100% during the peak skiing season.
New construction is planned in the spring for two condo complexes and a hotel.
4.1 Market Segmentation
Our customers can be broadly divided into two groups:

Skiers. The Bear Valley Resort area is quickly becoming one of the best ski resorts in the
U.S. The resort is located 36 miles from Richmond International Airport and is easily
accessible.

Summer Visitors. During the summer months, the Bear Valley Resort area is a beautiful
wilderness retreat with over 50 hiking trails and other outdoor recreational activities.

Table: Market Analysis

Market Analysis
Potential Customers
Skiers
Summer Visitors
Total

Year 1

Year 2

Year 3

Year 4

Year 5

90,000
60,000
150,000

103,500
69,000
172,500

119,025
79,350
198,375

136,879
91,253
228,132

157,411
104,941
262,352

Growth
15%
15%
15.00%

CAGR
15.00%
15.00%
15.00%

Page 4

Silver Bear Lodge

Chart: Market Analysis (Pie)

5.0 Strategy and Implementation Summary

Silver Bear Lodge will aggressively market to both winter and summer visitors of the Bear
Valley Resort area. The Bear Valley Resort has activities occurring year round. During the
winter there is skiing but in the summer months, the resort has hot-air balloon trips, white
water adventures, day hikes into Bear Valley, and other recreational activities that take
advantage of valley's spectacular beauty.
There are only thirteen lodges and inns in the Bear Valley Resort. These facilities represent
only 580 room units of the total of 4,000 room units in the resort area. The majority of room
units in the area are condos.
Our customers are looking for a different lodging experience that cannot be found in any of the
area's condo complexes or hotels. We will offer our customers a comfortable, congenial
environment that will assure return visits to the Silver Bear Lodge.
The lodge will cost a little more but we will offer our customers all the services they need to
make their stay memorable. We will offer a food shop that will be able to take special orders
daily. There will be a ski rental shop where customers can outfit themselves and purchase ski
passes. Each evening, guests can gather in the lodge's main room where there is a large
fireplace, drinks and light music.
5.1 Competitive Edge
The competitive edge of Silver Bear Lodge is the service, first and foremost. Marty Snyderman
and Luke Roth, co-owners of the Silver Bear Lodge, have over twenty years experience in
managing ski lodging facilities.
Marty is the manager-owner of the Crest Lake Inn. He has owned the inn for ten years.

Page 5

Silver Bear Lodge

Luke recently was the manager of the Village Resort Hotel. He held that position for the last five
years. Before this position, Luke was the manager of The Ridge, a 60-unit condo complex in
Silver Lake Village.
Another significant advantage for the Silver Bear Lodge is its location. Being located in the
recently opened Crest Canyon area, Silver Bear Lodge is uniquely positioned to be centrally
located to both Crest Lake Village (.5 miles) and the Bear Valley Resort ski area (.5 miles).
5.2 Sales Strategy
The Silver Bear Lodge's sales strategy is to harness the existing Bear Valley Resort booking
system that has been critical to the success of all of the area's lodges and inns. Room rates for
the lodge will range from Rs.150 - Rs.250 per night in peak season. In the off season prices
will range from Rs.100 to Rs.175 per night.
5.2.1 Sales Forecast
The following is the sales forecast for three years.
Table: Sales Forecast
Sales Forecast
Year 1

Year 2

Year 3

Rs. 430,000
Rs. 121,000
Rs. 132,000
Rs. 58,000
Rs. 741,000

Rs. 560,000
Rs. 140,000
Rs. 145,000
Rs. 70,000
Rs. 915,000

Rs. 600,000
Rs. 180,000
Rs. 160,000
Rs. 82,000
Rs. 1,022,000

Year 1
Rs.0
Rs. 59,500
Rs.0
Rs. 23,700
Rs. 83,200

Year 2
Rs.0
Rs. 71,000
Rs.0
Rs. 30,000
Rs. 101,000

Year 3
Rs.0
Rs. 90,000
Rs.0
Rs. 38,000
Rs. 128,000

Sales
Rooms
Food
Ski Rentals
Clothing
Total Sales
Direct Cost of Sales
Rooms
Food
Ski Rentals
Clothing
Subtotal Direct Cost of Sales

Page 6

Silver Bear Lodge

Chart: Sales Monthly

5.3 Marketing Strategy

The Bear Valley Resort area has its own website and advertising/promotion program
that promotes the area's lodging. Currently, 70% of the area's visitors use the website to
identify lodging and service options.
The Silver Bear Lodge is positioned as a new upscale facility that is focused on the high-income
visitors to Bear Valley Resort. The area's lodges and inns receive approximately 80% of their
guests from the Bear Valley Resort booking system. Since the total number of room units are
few with the area's lodges and inns, these lodging units fill up quickly.
In addition, the Silver Bear Lodge will be highlighted in a promotional piece for Bear Valley
Resort in the December issue of Ski Magazine.
6.0 Management Summary
Luke Roth will be the manager of the daily operations of the Silver Bear Lodge.
6.1 Personnel Plan
The personnel needed for the Silver Bear Lodge are the following:

Manager.
Assistant manager.
Lodge staff (7).
Food store staff (3).
Ski rental/clothing store (3).
Maintenance staff (3).
Cleaning staff (4).

Page 7

Silver Bear Lodge

Table: Personnel
Personnel Plan
Year 1

Year 2

Year 3

Manager
Assistant Manager
Lodge Staff
Food Store Staff
Ski Rental/Clothing Store Staff
Maintenance Staff
Cleaning Staff
Total People

Rs. 36,000
Rs. 42,000
Rs. 110,000
Rs. 39,000
Rs. 35,000
Rs. 48,000
Rs. 72,000
9

Rs. 39,000
Rs. 45,000
Rs. 120,000
Rs. 43,000
Rs. 39,000
Rs. 52,000
Rs. 76,000
22

Rs. 42,000
Rs. 48,000
Rs. 126,000
Rs. 46,000
Rs. 42,000
Rs. 55,000
Rs. 79,000
22

Total Payroll

Rs. 382,000

Rs. 414,000

Rs. 438,000

7.0 Financial Plan

7.1 Break-even Analysis
The monthly break-even point is approximately Rs. 52,900.
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even

Rs. 52,905

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

11%
Rs. 46,965

Chart: Break-even Analysis

Page 8

Silver Bear Lodge

7.2 Projected Profit and Loss

Chart: Profit Monthly

Table: Profit and Loss

Pro Forma Profit and Loss
Year 1

Year 2

Year 3

Sales
Direct Cost of Sales
Other Production Expenses
Total Cost of Sales

Rs. 741,000
Rs. 83,200
Rs.0
Rs. 83,200

Rs. 915,000
Rs. 101,000
Rs.0
Rs. 101,000

Rs. 1,022,000
Rs. 128,000
Rs.0
Rs. 128,000

Gross Margin
Gross Margin %

Rs. 657,800
88.77%

Rs. 814,000
88.96%

Rs. 894,000
87.48%

Payroll
Sales and Marketing and Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Lease
Payroll Taxes
Other

Rs. 382,000
Rs. 60,000
Rs. 14,280
Rs.0
Rs. 26,000
Rs. 24,000
Rs.0
Rs. 57,300
Rs.0

Rs. 414,000
Rs. 80,000
Rs. 14,280
Rs.0
Rs. 26,000
Rs. 24,000
Rs.0
Rs. 62,100
Rs.0

Rs. 438,000
Rs. 100,000
Rs. 14,280
Rs.0
Rs. 26,000
Rs. 24,000
Rs.0
Rs. 65,700
Rs.0

Total Operating Expenses

Rs. 563,580

Rs. 620,380

Rs. 667,980

Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred

Rs. 94,220
Rs. 108,500
Rs. 33,375
Rs. 18,254

Rs. 193,620
Rs. 207,900
Rs. 30,500
Rs. 48,936

Rs. 226,020
Rs. 240,300
Rs. 27,500
Rs. 59,556

Rs. 42,592
5.75%

Rs. 114,184
12.48%

Rs. 138,964
13.60%

Expenses

Net Profit
Net Profit/Sales

Page 9

Silver Bear Lodge

7.3 Projected Balance Sheet

The following is the projected balance sheet for three years.
Table: Balance Sheet

Pro Forma Balance Sheet

Year 1

Year 2

Year 3

Rs. 31,437
Rs. 14,000
Rs. 45,437

Rs. 118,555
Rs. 32,000
Rs. 150,555

Rs. 165,584
Rs. 53,000
Rs. 218,584

Rs. 350,000
Rs. 14,280
Rs. 335,720
Rs. 381,157

Rs. 370,000
Rs. 28,560
Rs. 341,440
Rs. 491,995

Rs. 430,000
Rs. 42,840
Rs. 387,160
Rs. 605,744

Year 1

Year 2

Year 3

Rs. 3,965
Rs.0
Rs.0
Rs. 3,965

Rs. 30,619
Rs.0
Rs.0
Rs. 30,619

Rs. 35,405
Rs.0
Rs.0
Rs. 35,405

Rs. 320,000
Rs. 323,965

Rs. 290,000
Rs. 320,619

Rs. 260,000
Rs. 295,405

Rs. 200,000
(Rs. 185,400)
Rs. 42,592
Rs. 57,192
Rs. 381,157

Rs. 200,000
(Rs. 142,809)
Rs. 114,184
Rs. 171,376
Rs. 491,995

Rs. 200,000
(Rs. 28,625)
Rs. 138,964
Rs. 310,340
Rs. 605,744

Rs. 57,192

Rs. 171,376

Rs. 310,340

Assets
Current Assets
Cash
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Long-term Liabilities
Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

Page 10

Silver Bear Lodge

7.4 Projected Cash Flow

Table: Cash Flow
Pro Forma Cash Flow
Year 1

Year 2

Year 3

Rs. 741,000
Rs. 741,000

Rs. 915,000
Rs. 915,000

Rs. 1,022,000
Rs. 1,022,000

Rs.0
Rs.0
Rs.0
Rs.0
Rs.0
Rs.0
Rs.0
Rs. 741,000

Rs.0
Rs.0
Rs.0
Rs.0
Rs.0
Rs.0
Rs.0
Rs. 915,000

Rs.0
Rs.0
Rs.0
Rs.0
Rs.0
Rs.0
Rs.0
Rs. 1,022,000

Year 1

Year 2

Year 3

Rs. 382,000
Rs. 298,163
Rs. 680,163

Rs. 414,000
Rs. 345,882
Rs. 759,882

Rs. 438,000
Rs. 425,971
Rs. 863,971

Rs.0
Rs.0
Rs.0
Rs. 30,000
Rs. 14,000
Rs.0
Rs.0
Rs. 724,163

Rs.0
Rs.0
Rs.0
Rs. 30,000
Rs. 18,000
Rs. 20,000
Rs.0
Rs. 827,882

Rs.0
Rs.0
Rs.0
Rs. 30,000
Rs. 21,000
Rs. 60,000
Rs.0
Rs. 974,971

Rs. 16,837
Rs. 31,437

Rs. 87,118
Rs. 118,555

Rs. 47,029
Rs. 165,584

Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance

Page 11

Silver Bear Lodge

Chart: Cash

Page 12

Silver Bear Lodge

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 7011, Hotels and Motels, are shown for
comparison.
Table: Ratios
Ratio Analysis
Year 1

Year 2

Year 3

Industry Profile

n.a.

23.48%

11.69%

5.90%

Other Current Assets

Total Current Assets
Long-term Assets
Total Assets

3.67%
11.92%
88.08%
100.00%

6.50%
30.60%
69.40%
100.00%

8.75%
36.09%
63.91%
100.00%

26.00%
32.00%
68.00%
100.00%

Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth

1.04%
83.95%
85.00%
15.00%

6.22%
58.94%
65.17%
34.83%

5.84%
42.92%
48.77%
51.23%

19.40%
34.60%
54.00%
46.00%

100.00%
88.77%
83.02%
8.10%
12.72%

100.00%
88.96%
76.48%
8.74%
21.16%

100.00%
87.48%
73.88%
9.78%
22.12%

100.00%
0.00%
75.10%
1.90%
2.50%

11.46
11.46
85.00%
106.39%
15.96%

4.92
4.92
65.17%
95.18%
33.15%

6.17
6.17
48.77%
63.97%
32.77%

1.45
1.05
54.00%
1.70%
3.70%

Sales Growth
Percent of Total Assets

Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Additional Ratios

Year 1

Year 2

Year 3

Net Profit Margin

Return on Equity

5.75%
74.47%

12.48%
66.63%

13.60%
44.78%

n.a
n.a

76.19
27
1.94

12.17
17
1.86

12.17
28
1.69

n.a
n.a
n.a

5.66
0.01

1.87
0.10

0.95
0.12

n.a
n.a

Rs.41,472
2.82

Rs.119,936
6.35

Rs.183,180
8.22

n.a
n.a

0.51
1%
11.46
12.96
0.00

0.54
6%
4.92
5.34
0.00

0.59
6%
6.17
3.29
0.00

n.a
n.a
n.a
n.a
n.a

Activity Ratios
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout

Page 13

Silver Bear Lodge

Page 14

Appendix
Table: Sales Forecast

Sales Forecast
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Rs. 40,000
Rs. 8,000
Rs. 16,000
Rs. 4,000
Rs. 68,000

Rs. 60,000
Rs. 16,000
Rs. 24,000
Rs. 10,000
Rs. 110,000

Rs. 60,000
Rs. 20,000
Rs. 24,000
Rs. 8,000
Rs. 112,000

Rs. 50,000
Rs. 18,000
Rs. 24,000
Rs. 7,000
Rs. 99,000

Rs. 50,000
Rs. 18,000
Rs. 24,000
Rs. 7,000
Rs. 99,000

Rs. 50,000
Rs. 12,000
Rs. 20,000
Rs. 6,000
Rs. 88,000

Rs. 30,000
Rs. 8,000
Rs.0
Rs. 4,000
Rs. 42,000

Rs. 30,000
Rs. 7,000
Rs.0
Rs. 4,000
Rs. 41,000

Rs. 30,000
Rs. 7,000
Rs.0
Rs. 4,000
Rs. 41,000

Rs. 30,000
Rs. 7,000
Rs.0
Rs. 4,000
Rs. 41,000

Rs.0
Rs.0
Rs.0
Rs.0
Rs.0

Rs.0
Rs.0
Rs.0
Rs.0
Rs.0

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs. 4,000

Rs. 8,000

Rs. 10,000

Rs. 9,000

Rs. 9,000

Rs. 6,000

Rs. 3,000

Rs. 3,500

Rs. 3,500

Rs. 3,500

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Clothing

Rs. 1,400

Rs. 4,000

Rs. 3,600

Rs. 3,000

Rs. 3,000

Rs. 2,700

Rs. 1,500

Rs. 1,500

Rs. 1,500

Rs. 1,500

Rs.0

Rs.0

Subtotal Direct Cost of Sales

Rs. 5,400

Rs. 12,000

Rs. 13,600

Rs. 12,000

Rs. 12,000

8,700

Rs. 4,500

Rs. 5,000

Rs. 5,000

Rs. 5,000

Rs.0

Rs.0

Sales
Rooms
Food
Ski Rentals
Clothing
Total Sales
Direct Cost of Sales
Rooms
Food
Ski Rentals

0%
0%
0%
0%

Page 1

Appendix
Table: Personnel

Personnel Plan
Manager
Assistant Manager
Lodge Staff
Food Store Staff
Ski Rental/Clothing Store Staff
Maintenance Staff
Cleaning Staff
Total People
Total Payroll

0%
0%
0%
0%
0%
0%
0%

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Rs. 3,000
Rs. 3,500
Rs. 13,000
Rs. 4,500
Rs. 4,500
Rs. 4,000
Rs. 6,000
22

Rs. 3,000
Rs. 3,500
Rs. 13,000
Rs. 4,500
Rs. 4,500
Rs. 4,000
Rs. 6,000
22

Rs. 3,000
Rs. 3,500
Rs. 13,000
Rs. 4,500
Rs. 4,500
Rs. 4,000
Rs. 6,000
22

Rs. 3,000
Rs. 3,500
Rs. 13,000
Rs. 4,500
Rs. 4,500
Rs. 4,000
Rs. 6,000
22

Rs. 3,000
Rs. 3,500
Rs. 13,000
Rs. 4,500
Rs. 4,500
Rs. 4,000
Rs. 6,000
22

Rs. 3,000
Rs. 3,500
Rs. 13,000
Rs. 4,500
Rs. 4,500
Rs. 4,000
Rs. 6,000
22

Rs. 3,000
Rs. 3,500
Rs. 8,000
Rs. 3,000
Rs. 2,000
Rs. 4,000
Rs. 6,000
18

Rs. 3,000
Rs. 3,500
Rs. 8,000
Rs. 3,000
Rs. 2,000
Rs. 4,000
Rs. 6,000
18

Rs. 3,000
Rs. 3,500
Rs. 8,000
Rs. 3,000
Rs. 2,000
Rs. 4,000
Rs. 6,000
18

Rs. 3,000
Rs. 3,500
Rs. 8,000
Rs. 3,000
Rs. 2,000
Rs. 4,000
Rs. 6,000
18

Rs. 3,000
Rs. 3,500
Rs.0
Rs.0
Rs.0
Rs. 4,000
Rs. 6,000
9

Rs. 3,000
Rs. 3,500
Rs.0
Rs.0
Rs.0
Rs. 4,000
Rs. 6,000
9

Rs. 38,500

Rs. 38,500

Rs. 38,500

Rs. 38,500

Rs. 38,500

Rs. 38,500

Rs. 29,500

Rs. 29,500

Rs. 29,500

Rs. 29,500

Rs. 16,500

Rs. 16,500

Page 2

Appendix
Table: General Assumptions

General Assumptions
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

10

11

12

Current Interest Rate

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Long-term Interest Rate

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Tax Rate

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

Plan Month

Other

Month 12

Page 3

Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Rs. 68,000

Rs. 110,000

Rs. 112,000

Rs. 99,000

Rs. 99,000

Rs. 88,000

Rs. 42,000

Rs. 41,000

Rs. 41,000

Rs. 41,000

Rs.0

Rs.0

Rs. 5,400

Rs. 12,000

Rs. 13,600

Rs. 12,000

Rs. 12,000

Rs. 8,700

Rs. 4,500

Rs. 5,000

Rs. 5,000

Rs. 5,000

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs. 5,400

Rs. 12,000

Rs. 13,600

Rs. 12,000

Rs. 12,000

Rs. 8,700

Rs. 4,500

Rs. 5,000

Rs. 5,000

Rs. 5,000

Rs.0

Rs.0

Rs. 62,600

Rs. 98,000

Rs. 98,400

Rs. 87,000

Rs. 87,000

Rs. 79,300

Rs. 37,500

Rs. 36,000

Rs. 36,000

Rs. 36,000

Rs.0

Rs.0

92.06%

89.09%

87.86%

87.88%

87.88%

90.11%

89.29%

87.80%

87.80%

87.80%

0.00%

0.00%

Rs. 38,500

Rs. 38,500

Rs. 38,500

Rs. 38,500

Rs. 38,500

Rs. 38,500

Rs. 29,500

Rs. 29,500

Rs. 29,500

Rs. 29,500

Rs. 16,500

Rs. 16,500

Rs. 5,000

Rs. 5,000

Rs. 5,000

Rs. 5,000

Rs. 5,000

Rs. 5,000

Rs. 5,000

Rs. 5,000

Rs. 5,000

Rs. 5,000

Rs. 5,000

Rs. 5,000

Rs. 1,190

Rs. 1,190

Rs. 1,190

Rs. 1,190

Rs. 1,190

Rs. 1,190

Rs. 1,190

Rs. 1,190

Rs. 1,190

Rs. 1,190

Rs. 1,190

Rs. 1,190

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Utilities

Rs. 3,000

Rs. 3,000

Rs. 3,000

Rs. 3,000

Rs. 3,000

Rs. 3,000

Rs. 1,500

Rs. 1,300

Rs. 1,300

Rs. 1,300

Rs. 1,300

Rs. 1,300

Insurance

Rs. 2,000

Rs. 2,000

Rs. 2,000

Rs. 2,000

Rs. 2,000

Rs. 2,000

Rs. 2,000

Rs. 2,000

Rs. 2,000

Rs. 2,000

Rs. 2,000

Rs. 2,000

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs. 5,775
Rs.0

Rs. 5,775
Rs.0

Rs. 5,775
Rs.0

Rs. 5,775
Rs.0

Rs. 5,775
Rs.0

Rs. 5,775
Rs.0

Rs. 4,425
Rs.0

Rs. 4,425
Rs.0

Rs. 4,425
Rs.0

Rs. 4,425
Rs.0

Rs. 2,475
Rs.0

Rs. 2,475
Rs.0

Rs. 55,465

Rs. 55,465

Rs. 55,465

Rs. 55,465

Rs. 55,465

Rs. 55,465

Rs. 43,615

Rs. 43,415

Rs. 43,415

Rs. 43,415

Rs. 28,465

Rs. 28,465

Profit Before Interest and Taxes

Rs. 7,135

Rs. 42,535

Rs. 42,935

Rs. 31,535

Rs. 31,535

Rs. 23,835

(Rs. 6,115)

(Rs. 7,415)

(Rs. 7,415)

(Rs. 7,415)

(Rs. 28,465)

(Rs. 28,465)

EBITDA

Rs. 8,325

Rs. 43,725

Rs. 44,125

Rs. 32,725

Rs. 32,725

Rs. 25,025

(Rs. 4,925)

(Rs. 6,225)

(Rs. 6,225)

(Rs. 6,225)

(Rs. 27,275)

(Rs. 27,275)

Interest Expense

Rs. 2,896

Rs. 2,875

Rs. 2,854

Rs. 2,833

Rs. 2,813

Rs. 2,792

Rs. 2,771

Rs. 2,750

Rs. 2,729

Rs. 2,708

Rs. 2,688

Rs. 2,667

Taxes Incurred

Rs. 1,272

Rs. 11,898

Rs. 12,024

Rs. 8,611

Rs. 8,617

Rs. 6,313

(Rs. 2,666)

(Rs. 3,050)

(Rs. 3,043)

(Rs. 3,037)

(Rs. 9,346)

(Rs. 9,340)

Rs. 2,967

Rs. 27,762

Rs. 28,057

Rs. 20,091

Rs. 20,106

Rs. 14,730

(Rs. 6,220)

(Rs. 7,116)

(Rs. 7,101)

(Rs. 7,086)

(Rs. 21,807)

(Rs. 21,792)

4.36%

25.24%

25.05%

20.29%

20.31%

16.74%

-14.81%

-17.35%

-17.32%

-17.28%

0.00%

0.00%

Sales
Direct Cost of Sales
Other Production Expenses
Total Cost of Sales
Gross Margin
Gross Margin %

Expenses
Payroll
Sales and Marketing and Other
Expenses
Depreciation
Leased Equipment

Lease
Payroll Taxes
Other
Total Operating Expenses

Net Profit
Net Profit/Sales

15%

Page 4

Appendix
Table: Cash Flow
Pro Forma Cash Flow
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Cash Sales

Rs. 68,000

Rs. 110,000

Rs. 112,000

Rs. 99,000

Rs. 99,000

Rs. 88,000

Rs. 42,000

Rs. 41,000

Rs. 41,000

Rs. 41,000

Rs.0

Rs.0

Subtotal Cash from Operations

Rs. 68,000

Rs. 110,000

Rs. 112,000

Rs. 99,000

Rs. 99,000

Rs. 88,000

Rs. 42,000

Rs. 41,000

Rs. 41,000

Rs. 41,000

Rs.0

Rs.0

Rs.0
Rs.0

Rs.0
Rs.0

Rs.0
Rs.0

Rs.0
Rs.0

Rs.0
Rs.0

Rs.0
Rs.0

Rs.0
Rs.0

Rs.0
Rs.0

Rs.0
Rs.0

Rs.0
Rs.0

Rs.0
Rs.0

Rs.0
Rs.0

New Other Liabilities (interest-free)

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

New Long-term Liabilities

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Sales of Other Current Assets

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Sales of Long-term Assets

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

New Investment Received

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs. 68,000

Rs. 110,000

Rs. 112,000

Rs. 99,000

Rs. 99,000

Rs. 88,000

Rs. 42,000

Rs. 41,000

Rs. 41,000

Rs. 41,000

Rs.0

Rs.0

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Rs. 38,500

Rs. 38,500

Rs. 38,500

Rs. 38,500

Rs. 38,500

Rs. 38,500

Rs. 29,500

Rs. 29,500

Rs. 29,500

Rs. 29,500

Rs. 16,500

Rs. 16,500

Rs.845

Rs. 25,916

Rs. 42,605

Rs. 44,086

Rs. 39,218

Rs. 39,017

Rs. 33,045

Rs. 17,527

Rs. 17,425

Rs. 17,410

Rs. 16,954

Rs. 4,116

Rs. 39,345

Rs. 64,416

Rs. 81,105

Rs. 82,586

Rs. 77,718

Rs. 77,517

Rs. 62,545

Rs. 47,027

Rs. 46,925

Rs. 46,910

Rs. 33,454

Rs. 20,616

Sales Tax, VAT, HST/GST Paid Out

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Principal Repayment of Current Borrowing

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Other Liabilities Principal Repayment

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs. 2,500

Rs. 2,500

Rs. 2,500

Rs. 2,500

Rs. 2,500

Rs. 2,500

Rs. 2,500

Rs. 2,500

Rs. 2,500

Rs. 2,500

Rs. 2,500

Rs. 2,500

Purchase Other Current Assets

Rs.0

Rs. 3,000

Rs. 1,000

Rs.0

Rs. 3,000

Rs.0

Rs. 2,000

Rs.0

Rs. 2,000

Rs.0

Rs.0

Rs. 3,000

Purchase Long-term Assets

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Dividends

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Rs.0

Subtotal Cash Spent

Rs. 41,845

Rs. 69,916

Rs. 84,605

Rs. 85,086

Rs. 83,218

Rs. 80,017

Rs. 67,045

Rs. 49,527

Rs. 51,425

Rs. 49,410

Rs. 35,954

Rs. 26,116

Net Cash Flow

Rs. 26,155

Rs. 40,084

Rs. 27,395

Rs. 13,914

Rs. 15,782

Rs. 7,983

(Rs. 25,045)

(Rs. 8,527)

(Rs. 10,425)

(Rs. 8,410)

(Rs. 35,954)

(Rs. 26,116)

Cash Balance

Rs. 40,755

Rs. 80,839

Rs. 108,234

Rs. 122,149

Rs. 137,930

Rs. 145,914

Rs. 120,869

Rs. 112,342

Rs. 101,917

Rs. 93,507

Rs. 57,553

Rs. 31,437

Cash Received
Cash from Operations

Additional Cash Received

Sales Tax, VAT, HST/GST Received
New Current Borrowing

Subtotal Cash Received

Expenditures

0.00%

Expenditures from Operations

Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent

Long-term Liabilities Principal Repayment

Page 5

Appendix

Page 6

Appendix
Table: Balance Sheet
Pro Forma Balance Sheet
Assets

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Rs. 14,600
Rs.0
Rs. 14,600

Rs. 40,755
Rs.0
Rs. 40,755

Rs. 80,839
Rs. 3,000
Rs. 83,839

Rs. 108,234
Rs. 4,000
Rs. 112,234

Rs. 122,149
Rs. 4,000
Rs. 126,149

Rs. 137,930
Rs. 7,000
Rs. 144,930

Rs. 145,914
Rs. 7,000
Rs. 152,914

Rs. 120,869
Rs. 9,000
Rs. 129,869

Rs. 112,342
Rs. 9,000
Rs. 121,342

Rs. 101,917
Rs. 11,000
Rs. 112,917

Rs. 93,507
Rs. 11,000
Rs. 104,507

Rs. 57,553
Rs. 11,000
Rs. 68,553

Rs. 31,437
Rs. 14,000
Rs. 45,437

Rs. 350,000
Rs.0
Rs. 350,000
Rs. 364,600

Rs. 350,000
Rs. 1,190
Rs. 348,810
Rs. 389,565

Rs. 350,000
Rs. 2,380
Rs. 347,620
Rs. 431,459

Rs. 350,000
Rs. 3,570
Rs. 346,430
Rs. 458,664

Rs. 350,000
Rs. 4,760
Rs. 345,240
Rs. 471,389

Rs. 350,000
Rs. 5,950
Rs. 344,050
Rs. 488,980

Rs. 350,000
Rs. 7,140
Rs. 342,860
Rs. 495,774

Rs. 350,000
Rs. 8,330
Rs. 341,670
Rs. 471,539

Rs. 350,000
Rs. 9,520
Rs. 340,480
Rs. 461,822

Rs. 350,000
Rs. 10,710
Rs. 339,290
Rs. 452,207

Rs. 350,000
Rs. 11,900
Rs. 338,100
Rs. 442,607

Rs. 350,000
Rs. 13,090
Rs. 336,910
Rs. 405,463

Rs. 350,000
Rs. 14,280
Rs. 335,720
Rs. 381,157

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Rs.0
Rs.0
Rs.0
Rs.0

Rs. 24,498
Rs.0
Rs.0
Rs. 24,498

Rs. 41,130
Rs.0
Rs.0
Rs. 41,130

Rs. 42,778
Rs.0
Rs.0
Rs. 42,778

Rs. 37,912
Rs.0
Rs.0
Rs. 37,912

Rs. 37,897
Rs.0
Rs.0
Rs. 37,897

Rs. 32,460
Rs.0
Rs.0
Rs. 32,460

Rs. 16,946
Rs.0
Rs.0
Rs. 16,946

Rs. 16,845
Rs.0
Rs.0
Rs. 16,845

Rs. 16,831
Rs.0
Rs.0
Rs. 16,831

Rs. 16,816
Rs.0
Rs.0
Rs. 16,816

Rs. 3,980
Rs.0
Rs.0
Rs. 3,980

Rs. 3,965
Rs.0
Rs.0
Rs. 3,965

Rs. 350,000
Rs. 350,000

Rs. 347,500
Rs. 371,998

Rs. 345,000
Rs. 386,130

Rs. 342,500
Rs. 385,278

Rs. 340,000
Rs. 377,912

Rs. 337,500
Rs. 375,397

Rs. 335,000
Rs. 367,460

Rs. 332,500
Rs. 349,446

Rs. 330,000
Rs. 346,845

Rs. 327,500
Rs. 344,331

Rs. 325,000
Rs. 341,816

Rs. 322,500
Rs. 326,480

Rs. 320,000
Rs. 323,965

Rs. 200,000
(Rs. 185,400)
Rs.0
Rs. 14,600
Rs. 364,600

Rs. 200,000
(Rs. 185,400)
Rs. 2,967
Rs. 17,567
Rs. 389,565

Rs. 200,000
(Rs. 185,400)
Rs. 30,729
Rs. 45,329
Rs. 431,459

Rs. 200,000
(Rs. 185,400)
Rs. 58,786
Rs. 73,386
Rs. 458,664

Rs. 200,000
(Rs. 185,400)
Rs. 78,877
Rs. 93,477
Rs. 471,389

Rs. 200,000
(Rs. 185,400)
Rs. 98,983
Rs. 113,583
Rs. 488,980

Rs. 200,000
(Rs. 185,400)
Rs. 113,713
Rs. 128,313
Rs. 495,774

Rs. 200,000
(Rs. 185,400)
Rs. 107,493
Rs. 122,093
Rs. 471,539

Rs. 200,000
(Rs. 185,400)
Rs. 100,378
Rs. 114,978
Rs. 461,822

Rs. 200,000
(Rs. 185,400)
Rs. 93,277
Rs. 107,877
Rs. 452,207

Rs. 200,000
(Rs. 185,400)
Rs. 86,190
Rs. 100,790
Rs. 442,607

Rs. 200,000
(Rs. 185,400)
Rs. 64,384
Rs. 78,984
Rs. 405,463

Rs. 200,000
(Rs. 185,400)
Rs. 42,592
Rs. 57,192
Rs. 381,157

Rs. 14,600

Rs. 17,567

Rs. 45,329

Rs. 73,386

Rs. 93,477

Rs. 113,583

Rs. 128,313

Rs. 122,093

Rs. 114,978

Rs. 107,877

Rs. 100,790

Rs. 78,984

Rs. 57,192

Starting Balances

Current Assets
Cash
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Long-term Liabilities
Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

Page 7