2015 2016 Revenues Lessons Lifeguarding Grants Expenses Advertising and promotion Car insurance Business insurance Booking software Gas Phone Supplies and equipment Payments to instructors/guards Website & PayPal fees Net Income 8,300 19,100 800 2,500 5,000 5,000 14,100 26,600 350 500 560 560 1,300 1,300 240 240 500 800 600 600 300 500 0 2,500 300 350 4,150 7,350 9,950 19,250 Note: Fixed website maintenance fees were $300 of the line item for website and PayPal fees. Source: Company documents. 2017 SEASON Armour planned to make a number of changes to operations in 2017, independent of any expansion decision. The prices for lessons would increase to $175 for 5 lessons, $300 for 10 lessons, and $500 for a 20 lessons. In addition, lifeguarding rates would be $45 per hour, with the same 2-hour minimum commitment. She did not plan any changes to instruction or lifeguarding compensation. Armour also wanted to require all clients to pay in advance using PayPal, which charged a service fee of approximately 2.9 per cent. Regardless of any expansion plan, Armour believed that swimming lesson and lifeguarding sales in Burlington for 2017 would increase by half the growth rate between fiscal years (FY) 2015 and 2016, and she was not expecting to apply for any grants in 2017. For projection purposes, she wanted to estimate an average lesson-price increase of 15 per cent. She also planned to cap her instruction hours at 40 hours per week, and she would hire out all lifeguarding bookings.

2017 Financial Statement