Create an adult daycare in Scottsdale, Arizona, business starts on January 1, 2016 with the capacity to care for 100 people. The months of October – April are 15% busier than all other months due to winter travelers needing our services. I need to use the following items to create an income statement, balance sheet, statement of cash flow, and breakeven analysis.
1. The new company will be a c-corporation, with two investors (in return for sale of stock, one investor contributes $1.5 million and the other contributes $2.5 million to the business).
2. A long-term loan in the amount of $2,100,000 at 2.94% 30-yr fixed
3. Sales Revenue for each month:
a. May – September consists of 80 program participants @ $114/day
b. October – April consists of 100 program participants @ $114/day
4. Cost estimate to build a fire resistive (ISO Class 6, IBC Type IA) building:
Buildout, Demo, and Landscape                                                       $3,850,000
Solar Panel Installation                                                                      $20,000
Parking Lot (15 spaces @195 square feet per space = 3510 sq ft) $62,500
Construction of Facility:                                                                      $3,932,500
Purchase of Property                                                                         $990,000
Total Site Cost:                                                                                  $4,922,500

5. New computer equipment = $9,476.74 to be depreciated over the next five years.
6. Computer software = $2, 554.93
7. Utilities =
a. Electric $1,876 per month
b. Water $530 per month
c. Sewer $425 per month
d. Garbage $200 per month
e. Fire protection = $    per month
8. Biomedical Disposal Fee = $246.12 month + $40.42 in shipping/month = $286.54/Month total
9. Costs of Meals = $3.89 per day per program participant
10. Wages & Personnel Benefits:
Wages = $77,496 per month
Payroll Tax = ???
Workers’ Comp = ???
Taxes and Personnel Benefits (as a percent of salaries):
a. Social Security (for employer share) 6.20%
b. Medicare (for employer share) 1.45%
c. Federal Unemployment 0.80%
d. State Unemployment 2.00%
e. Workmen's compensation 0.10%
f. Other taxes (local Scottsdale) 1.65%
g. Health insurance          15.00%
11. Seasonality: All of the following are expected to increase by 15% for the months of October, November, December, January, February, March, and April.
a. Utilities
b. Wages for RNs
c. Wages for Nursing Aides
d. Wages for Therapy Aides
e. Occupancy (# of participants)
f. Number of meals needed
12. The company will sponsor two $1,000 scholarships for local college students.
13. The company will be charged a one-time $995.00 accreditation fee in December of year 1.
14. The company will buy space at a local tradeshow for $450.00
15. Attorney costs for the startup (contracts, articles of incorporation) will be $5,000
16. Vehicle maintenance = $240.00 per month
17. Vehicle repairs in April, August, and December -- $500 each occurrence
18. Medical Expense = $300 per month
19. Equipment Expense = $400 per month
20. Office/Administrative Expense = $225 per month
21. Professional Fees = $400 per month
22. Insurance Expense = $9,075 per month
23. Miscellaneous Expense = $400 peer month
24. Contingency Plan/Savings acct = $400 per month
25. High speed internet, cable TV, and phone = $175 per month
26. POS Machine Expense = $75.00 per month
27. Security Alarm Monitoring Exp = $39.99 per month
28. Permit fees = $85.00 per year
29. Web domain fee = $45.00 per month
30. Document Shredding Service Expense = $28.99 per month
31. Gasoline = $2.86/gallon = $300 per month
32. Advertising/Marketing Expense = $1,300 January of year 1, and $
33. Credit card merchant account is $25/mo (+ 2.2% of sales transactions). It is estimated that 66% of sales will be completed via credit card transactions.
34. Beginning in February of year 1, Accounts Receivables will have a balance of $12,000, with $4,000 paid each month after that. An additional $2,000 Accounts Receivables with be added each month as new customers make purchases on credit. All A/R clients have 60 days to repay.
35. $455,000 in grants received in year 1.
36. $200,000 in grants expected in year 2 and 3, respectively.
37. $10,000 received for startup costs during a fundraiser in December 2015.

Create an adult daycare in Scottsdale, Arizona, business starts on...