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SKI RESORT INVESTMENT DECISION CONSTANTS 2019 2020 2021 2022 2023 2024 2025 TAX RATE NA 0.20 0.20 0.20 0.20 0.20 0.20 CASH NEEDED TO START
| SKI RESORT INVESTMENT DECISION | |||||||
| CONSTANTS | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| TAX RATE | NA | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 |
| CASH NEEDED TO START NEXT YEAR | NA | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 |
| INTEREST RATE ON DEBT | NA | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| DAILY LIFT TICKET PRICE | NA | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 |
| ANNUAL LIFT TICKET PRICE | NA | $ 700 | $ 700 | $ 700 | $ 700 | $ 700 | $ 700 |
| AVERAGE DAILY MONEY SPENT ON FOOD | NA | $ 25 | $ 25 | $ 25 | $ 25 | $ 25 | $ 25 |
| AVERAGE SKI SCHOOL DAILY PRICE | NA | $ 45 | $ 45 | $ 45 | $ 45 | $ 45 | $ 45 |
| AVERAGE DAILY RENTAL PRICE | NA | $ 25 | $ 27 | $ 30 | $ 30 | $ 35 | $ 40 |
| NUMBER OF SKI DAYS PER YEAR | 100 | 100 | 100 | 100 | 100 | 100 | |
| OTHER DAILY REVENUE | NA | $ 15 | $ 15 | $ 15 | $ 15 | $ 15 | $ 15 |
| SUMMER POTENTIAL REVENUE | $ - | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | $ 1,200,000 | $ 1,200,000 | |
| OPERATING COSTS - SNOW MAKING | 2,000,000 | 1,800,000 | 1,800,000 | 1,800,000 | 1,700,000 | 1,600,000 | |
| OPERATING COSTS - SUMMER | $ 350,000 | $ 350,000 | $ 400,000 | $ 400,000 | $ 400,000 | $ 450,000 | |
| DAILY OTHER WINTER OPERATING COSTS | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | |
| FIXED COSTS | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |
| INPUTS | ALL YRS | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| RATE OF CHANGE IN SKIERS | NA | NA | NA | NA | NA | NA | |
| ECONOMIC OUTLOOK (Good, Poor) | NA | NA | NA | NA | NA | NA | |
| CLIMATE CHANGE FACTOR | NA | ||||||
| SUMMER OPERATIONS (Y OR N) | NA | ||||||
| SUMMARY OF KEY RESULTS | |||||||
| NET INCOME AFTER TAXES - 2025 | |||||||
| END-OF-THE-YEAR CASH ON HAND - 2025 | |||||||
| END-OF-THE-YEAR DEBT OWED - 2025 | |||||||
| PROFIT MARGIN - 2025 | |||||||
| CALCULATIONS | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| NUMBER OF DAILY SKIERS | 3000 | ||||||
| NUMBER OF SEASON SKIERS | 500 | ||||||
| YEARLY TOTAL SKIER REVENUE | |||||||
| DAILY SKI SCHOOL ATTENDEES | |||||||
| YEARLY SKI SCHOOL REVENUE | |||||||
| DAILY EQUIPMENT RENTAL USERS | |||||||
| YEARLY RENTAL REVENUE | |||||||
| YEARLY FOOD CONCESSION REVENUE | |||||||
| OTHER YEARLY REVENUE | |||||||
| INCOME STATEMENT AND CASH FLOW STATEMENT | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| BEGINNING-OF-THE-YEAR CASH ON HAND | NA | ||||||
| REVENUE - SKIERS | NA | ||||||
| REVENUE - SKI SCHOOL | NA | ||||||
| REVENUE - EQUIPMENT RENTAL | NA | ||||||
| REVENUE - FOOD CONCESSION | NA | ||||||
| REVENUE - OTHER | NA | ||||||
| REVENUE - POTENTIAL SUMMER | NA | ||||||
| TOTAL REVENUE | NA | ||||||
| OPERATING COSTS - SNOW MAKING | NA | ||||||
| SUMMER OPERATING COSTS | NA | ||||||
| YEARLY WINTER OPERATING COSTS | NA | ||||||
| FIXED COSTS | NA | ||||||
| TOTAL COSTS | NA | ||||||
| INCOME BEFORE INTEREST AND TAXES | NA | ||||||
| INTEREST EXPENSE | NA | ||||||
| INCOME BEFORE TAXES | NA | ||||||
| INCOME TAX EXPENSE | NA | ||||||
| NET INCOME AFTER TAXES | NA | ||||||
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
| NET CASH POSITION (NCP) BEFORE BORROWING AND REPAYMENT OF DEBT (BEG OF YR CASH + NET INCOME) | NA | ||||||
| ADD:BORROWING FROM BANK | NA | ||||||
| LESS: REPAYMENT TO BANK | NA | ||||||
| EQUALS: END-OF-YEAR CASH ON HAND | 4000000 | ||||||
| DEBT OWED | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| BEGINNING-OF-YEAR DEBT OWED | NA | ||||||
| ADD: BORROWING FROM BANK | NA | ||||||
| LESS: REPAYMENT TO BANK | NA | ||||||
| EQUALS: END-OF-THE-YEAR DEBT OWED | 2000000 |
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Principles Of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter
14th Global Edition
1292018208, 978-1292018201
