Start up expenses: To start the gym, the initial total investment required is $162,544.55EC. This figure includes all operational costs for the first month, including equipment costs, legal fees for drafting partnership contracts, business registration fees, renovation costs for painting the space and installing fixtures, mirrors, front desk etc. This figure also includes all operational costs for the next six months which is comprised mostly of rent and salaries. Between January and June 2022, the gym is expected to generate a loss since it is a new entity and therefore the partners have found it necessary to have enough capital on to cover the expenses for these months. To attain a loan from the National Bank of Dominica Ltd, at least 10% equity and 20% collateral is required. Therefore, all five partners have come to the agreement to each invest $18,000 EC. Cumulatively, equity in the business would be $90,000. This equity will fully cover the cost of equipment ($58,544.28c) which will then be used to secure an $80,000 loan from the bank. An excess of $7,455.45 would be available if the loan is approved for the full amount. These excess funds will be used to cover unforeseen expenses. Notes: - Gym membership is $270EC a month - Gym operates 5am – 9pm - Monday to Saturday - Bottle of water is $2.68c each - Case of water = $50ec - Employees: Part time o Yoga instructor – teaches 3 classes a week (beginners, intermediate, advance yoga) = Salary per class = Paid $60 per class = $720 a month o Pilates instructor = teaches 2 classes a week @ same rate as yoga instructor = $480 a month o 2 Spin class instructors(morning and evening instructors) = teaches morning= 3 days a week @ above rate = $1440 a month (cumulatively) o Bootcamp instructor = 3 days a week = 720 o 4 front desk operators/ weight room operators/Sauna operators = 2 shifts, 6 days a week – 5am -1pm and 1pm-9pm – Paid $400 a week - Corporate tax rate for Dominica is 25% - Each class will have 15 students - Equipment: o 16 yoga mats o 16 exercise balls o 4 treadmills o 3 elliptical machines o 16 spin bikes o 20 dumbells (per type) o 2 total gyms o 2 stair climbers Prepare a Balance Sheet
Start up expenses:
To start the gym, the initial total investment required is $162,544.55EC. This figure includes all operational costs for the first month, including equipment costs, legal fees for drafting partnership contracts, business registration fees, renovation costs for painting the space and installing fixtures, mirrors, front desk etc. This figure also includes all operational costs for the next six months which is comprised mostly of rent and salaries. Between January and June 2022, the gym is expected to generate a loss since it is a new entity and therefore the partners have found it necessary to have enough capital on to cover the expenses for these months. To attain a loan from the National Bank of Dominica Ltd, at least 10% equity and 20% collateral is required. Therefore, all five partners have come to the agreement to each invest $18,000 EC. Cumulatively, equity in the business would be $90,000. This equity will fully cover the cost of equipment ($58,544.28c) which will then be used to secure an $80,000 loan from the bank. An excess of $7,455.45 would be available if the loan is approved for the full amount. These excess funds will be used to cover unforeseen expenses.
Notes:
- Gym membership is $270EC a month
- Gym operates 5am – 9pm - Monday to Saturday
- Bottle of water is $2.68c each
- Case of water = $50ec
- Employees:
Part time
o Yoga instructor – teaches 3 classes a week (beginners, intermediate, advance yoga) = Salary per class = Paid $60 per class = $720 a month
o Pilates instructor = teaches 2 classes a week @ same rate as yoga instructor = $480 a month
o 2 Spin class instructors(morning and evening instructors) = teaches morning= 3 days a week @ above rate = $1440 a month (cumulatively)
o Bootcamp instructor = 3 days a week = 720
o 4 front desk operators/ weight room operators/Sauna operators = 2 shifts, 6 days a week – 5am -1pm and 1pm-9pm – Paid $400 a week
- Corporate tax rate for Dominica is 25%
- Each class will have 15 students
- Equipment:
o 16 yoga mats
o 16 exercise balls
o 4 treadmills
o 3 elliptical machines
o 16 spin bikes
o 20 dumbells (per type)
o 2 total gyms
o 2 stair climbers
Prepare a
![Revenue
Gym Membership Sales
Sauna Rental
Monthly fitness in nature cla
Bottle water sales
Total Revenue
Cost of Goods Sold
Materials
Gross Profit
Operating Expenses
Wages
Rent
Utilities expense
Registration Expense
Advertising Expense
Equipment Insurance Expens
Liability Insurance
Rennovtion Expense
Software Expense
Depreciation expense
Equipment Expense
Supplies Expense
Interest Expense (4%)
Other operating expenses
Total operating expenses
Earnings before taxes
Income tax (25%)
Net Income
Qegal Expenses
JAN
6750
3:00
450
25.8
7525.8
50
7476.8
9760
5360
1000
2413.61
70
3:00
200
100
6700
67
532.94
58554.28
134
33.22
200
85425.04
-77948.24
0
-77948.24
Feb
7762.5
345
517.5
32.16
8557.15
60
8597.16
9760
2680
1150
0
0
March April
May
June
July
Aug
8926.88
396.75
595.13
38.59
9957.34
10265.91 11805.79 13576.66 15613.16
456.26
524.7
603.41
693.92
684.39
787.05
905.11
1040.88
46.31
55.57
66.69
80.02
11452.87 13173.12 15151.87 17427.98
72
86.4
9885.34 11356.47
103.58
13069.44
124.42
149.3
15027.45 17278.68
9760
9760
9750
2680
2680
2680
1322.5 1520.88 1749.01
0
0
9760
2680
2011.36
0
0
0
0
0
0
300
300
200
200
100
100
0
0
67
532.94
0
0
33.22
200
15622.15
-2552.72
0
-2552.72
300
300
200
200
100
100
0
0
67
532.94
67
532.94
0
0
0
0
33.22
200
15023.15
33.22
200
15195.55
-6425.99 -5310.31
0
0
-6425.99 -5310.31
300
200
100
0
67
532.94
0
0
33.22
200
15394.03
-4027.56
0
-4027.56
Sep
17955.13
798.01
1197.01
96.03
20046.18
179.15
19867.02
9760
9760
2680
2680
2313.06
2660.02
0
0
0
300
300
200
200
100
100
0
67
532.94
0
0
67
67
532.94
532.94
0
0
134
0
33.22
33.22
33.22
200
200
200
15884.51 16320.21 165.33.17
0
-857.06
0
-857.06
958.47
0
958.47
3333.85
0
3333.85
Oct
Nov
Dec
FY 2022 Year (FY 2023 Year (FY 2024 Year
20648.4
917.71
1376.55
115.24
23057.91
23745.66 27307.51 31403.64 195761.25 244701.57 305875.95
1055.35 1213.67 1395.72
8700.5 10875.63 13594.53
1583.04
1820.5
2093.58 13050.75 16313.44
20391.8
138.28
165.94
199.13 1060.76 1325.95 1657.43
26522.35 30507.52 35092.06 218573.25 273216.58 341520.72
214.99
22842.92
257.99
309.59
26264.37 30198.03
371.5
34720.56
1979.03
215594.24
2473.78
270742.8
3092.23
338428.5
117120
32160
45315.11
C
0
3600
300
300
300
3600
300
200
200
200
200
2160
1944
100
100
100
1200
9760
9760
9760
9760
117120
117120
2680
2680
2680
2680
34840
32160
3059.02 3517.88 4045.56 4652.39 29001.67 36252.08
0
0
0
0 2413.61
0
0
0
0
70
0
3600
2400
100
1200
1200
0
6700
0
67
804
804
532.94
6395.23 6395.23
0 58554.28
0
268
268
268
33.22
398.61
398.61
398.61
200
2400
2400
2400
18525.54 266165.4 202757.92 211604.94
0
67
532.94
0
67
532.94
0
0
0
67
532.94
0
804
6395.23
0
0
33.22
200
0
0
33.22
33.22
200
200
17918.71
16932.18 17391.03
5910.74 8873.34
1477.58 2218.33
4433.05
6655
12279.32
3069.83
9209.49
16195.01 -49571.16 67984.87 126823.55
4048.75 10814.5 16996.22 31705.89
12145.26 -60385.76 50988.65 95117.66](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F094daf75-121a-4fd9-bdc1-5512d33f62c1%2Fa7f29351-a87e-4ef7-9439-d311eb076ade%2Fueyoq6j_processed.png&w=3840&q=75)
![Item
Revenue
Cost of Revenue
EXPENSES
Rent
Advertising & Promotion
Depreciation & Amortization
Interest expenses
Maintenance
Office Supplies
Salaries, Benefits & Wages
Taxes
Miscellaneous
Utilities
Software Expense
Assumption
Revenue will grow at a rate of 15% a month for
the first year then increase at a rate of 25% a
year for the next two years.
Increases at the same rate as revenue
The first and last month's rent must be paid
upfront
Advertising cost remains fixed.
Depreciation and amortization of the gym
equipment and the computer/other electronic
devices will be done on a straight-line basis. The
lifespan of the equipment will be estimated at 12
years with no salvage value while the lifespan of
the computers was 10 years with no salvage
value
Interest rate is 4% and the loan period is 5 years
Fixed amount
Office supplies are purchased every 6 months
Wages and salaries are expected to remain
unchanged.
Based on the corporate tax rate in Dominica at
25%
Fixed amount
Utilities are expected to increase in line with
revenue
Software payment is a one-time payment](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F094daf75-121a-4fd9-bdc1-5512d33f62c1%2Fa7f29351-a87e-4ef7-9439-d311eb076ade%2Fr14s6u6_processed.png&w=3840&q=75)
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