Camp Financial Analysis Paper

Working Capital What makes our camp so unique in terms of business is the
Requirements fact that it only operates for ten weeks during the summer, which results in low operating costs and overall expenses. Because it is seasonal service orientated, there is very little capital required to start such a business. Our first summer of operation will be in 2005, however, we will begin advertising during the fall of 2004. This will allow a sufficient amount of time for parents to research our camp and to utilize our early registration discount prices. Open registration will begin in January and will close the first week of May. In order to secure a place in our camp, parents will be required to pay entire summer fees during the initial registration
process. As a result of such a measure, we as a camp will begin to build an early source of income starting in January.

Financing Mix

Financial Analysis

Opening Balance Sheet In the Balance Sheet, there are many different equations and formulas created to provide a starting point from which to measure future changes regarding assets and liabilities.
In the following financial analysis, we will justify our financial decisions. All financial statements are listed as tables or figures after the financial summaries. A complete Business Budget is listed in Appendix E. All financial ratios are listed in Appendix F.

1.) Prepaid Expenses in Current Assets- This includes all items in the Licenses Account ($725.00), the Insurance Account ($3,850.00), the Rent account ($2,250.00), and postage ($148.00).

2.) Cash and Accounts Receivable in Current Assets- the sum for Cash was found by multiplying the total operating revenue ($56,700) by 25%, which equals the $42,525 in cash. This leaves the remaining $14,175 as credit, which belongs in Accounts Receivable.

3.) Inventory in Current Assets- As a result of being in the service industry we did not have any items/goods to sell.

4.) Land in Fixed Assets- We did not purchase land for our business. Instead, we rent out Acker Gymnasium at California State University, Chico for $50 a day for a 45 day period, which equals an account total of $2,250. All account balances can be found in the Business Budget, which is listed in Appendix
E.

5.) Building in Fixed Assets- Again, we did not purchase a building, which leaves us without building costs or building depreciation to report. We are using a room in our home as an office. The business should not reflect building depreciation on our home because it is personal property.

6.) Equipment, Office Supplies/furniture Depreciation- These items are listed as accounts in the Business Budget in Appendix E.
7.) Accounts Payable under Current Liabilities- I will be purchasing my insurance from Francis L. Dean & Associates, Inc. The firm is located in Wheaton, IL, but does most of its business through the Internet. They are the nation's leader in sports insurance and specialize in summer camp insurance.
a. Liability Coverage at $3,500.00 a year. $1 million per occurrence and $2 million aggregate, meaning that will be the most that could ever be paid. This covers injury or death of participants, spectators, and volunteers. Also included is property damage, incidental medical malpractice, camp activities, maintenance of fields, general negligence claims, and cost of investigation and defense claims.
b. Accident Coverage at $350 a year. This covers all participants and staff members on the job and in traveling to and from Policyholder sponsored events/activities. Breakdown of coverage pricing; full principle sum for loss of life ($10,000), full principle sum for double dismemberment ($10,000), 50% of the principle sum for loss of one hand, one foot, or sight of one eye ($5,000), and 25% of the principle sum for loss of index finger and thumb of same hand
($2,500).