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Hornyhead Chub Culture Economic Analysis
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Recirculating Aquaculture System (RAS) with Optional Spawning System (Ver. 1.0)
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1. MAIN INPUT FORM (Change values highlighted in yellow to examine impacts on profitability)
5. CASHFLOW ANALYSIS (RAS)
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Year 1Year 2Year 3Year 4Year 5
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MAJOR INPUT VALUESCash from operations
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Building Spawning System (S) or Buying fry (F)S
(Enter F for buying fry and S for building a spawning system)
Net earnings (loss)($130,129)$71,955 $70,719 $57,965 $59,861
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Do you need to buy land or buildings? (Y=Yes, N=No)Y
(Enter Y for yes and N for no)
Add-depreciation and amortization$64,348 $64,348 $64,348 $64,348 $64,348
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Selling Price of Baitfish$10.00 /pound Cash from operations ($65,781)$136,303 $135,067 $122,312 $124,209
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Fry/Fingerlings Mortality Rate25%
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Cost of Fry/1000$10.00 /1000 fryCash provided (used) by
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Construction Cost of RAS System (cost per size in gallons)$7.00 /gallon
(Costs typically range from $3 to $10/gallon)
operating activities
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Amount of Feed Needed per Pound of Fish Yield1.20
feed conversion rate
Decrease (Increase) in Accounts Receivable$0 ($16,438)$0 $0 $0
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Feed Cost per Pound$0.50 /poundDecrease (Increase) in Inventory$0 ($10,000)$0 $0 $0
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Cost of Building Construction per sq ft (only needed if C8 = Y)$10.00 /sq ftDecrease (Increase) in Other Current Assets
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Cost of Land per Acre (only needed if C8 = Y)$1,500 /acreIncrease (Decrease) in Accounts Payable$1,963 $0 $0 $0 $0
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Cost of Capital (loan rate)6%/annum Net cash from operations ($63,818)$109,865 $135,067 $122,312 $124,209
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Farmers Equity Investment (Amount to Invest)$60,000
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 Amount to Borrow $457,788 Investment transactions
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Cash at end of first year$56,666 Increases (decreases)
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5-year Return on Equity Investment (IRR)13%
Projected After Tax Profits
Proceeds (purchase) of Spawning System($8,406)$0 $0 $0 $0
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Year 1Year 2Year 3Year 4 Year 5Proceeds (purchase) of Land ($7,500)$0 $0 $0 $0
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EXPECTED YIELD (lbs of fish/gallon of tank water)0.5lbs./gallon($130,129)$71,955 $70,719 $57,965 $59,861 Proceeds (purchase) of Buildings($66,667)$0 $0 $0 $0
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Proceeds (purchase) of Equipment($280,000)$0 $0 $0 $0
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RAS SYSTEM SETUP
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Enter the number of tanks in each capacity you will be using each year
 Cash proceeds (required) from investment ($362,573)$0 $0 $0 $0
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Years of Business
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12345Pre-Financing Cashflow($426,391)$109,865 $135,067 $122,312 $124,209
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Total Tank Capacity in Gallons 40,000 40,000 40,000 40,000 40,000 Cash Balance (end of year)($426,391)($316,526)($181,460)($59,147)$65,062
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Expected Yield
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 Yield in Pounds 20,000 20,000 20,000 20,000 20,000 Financing Transactions
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 Yield in Gallons 2,500 2,500 2,500 2,500 2,500 Increases (Decreases)
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 Yield in Number of Fish 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Proceeds from (Payments to) Short Term Debt
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Proceeds from (Payments to) Long Term Debt$423,057 ($36,815)($39,024)($41,366)($43,848)
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Proceeds from Capital Stock and Paid in Capital$60,000 $0 $0 $0 $0
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2. INCOME STATEMENT PROJECTIONS Net Cash from Financing $483,057 ($36,815)($39,024)($41,366)($43,848)
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Gross Revenue$0 $200,000 $200,000 $200,000 $200,000 Net Increase (Decrease) in Cash $56,666 $73,049 $96,042 $80,947 $80,361
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Cost of Sales Based on buying fryCumulative Cash Flow$56,666 $129,715 $225,757 $306,704 $387,065
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 Number of Fry Required (including mortality) 1,250,000 1,250,000 1,250,000 1,250,000 1,250,000 Cash at Beginning of Period $56,666 $129,715 $225,757 $306,704
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 Cost of Fry$12,500 $12,500 $12,500 $12,500 $12,500
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Cash at End of Period $56,666 $129,715 $225,757 $306,704 $387,065
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 Total Cost of Sales for Buying Fry$0 $0 $0 $0 $0
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 Cost of Sales Based on Spawning System
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 Cost of Brood Stock$573 $573 $573 $573 $573
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 Spawning System Feed Costs$34 $34 $34 $34 $34
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6. BALANCE SHEET PROJECTIONS
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 Total Cost of Sales for Spawning System$607 $607 $607 $607 $607 Year 1Year 2Year 3Year 4Year 5
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ASSETS
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Other Variable CostsCURRENT ASSETS
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 Cost of Fish Feed$12,000 $12,000 $12,000 $12,000 $12,000 Cash & Cash Equivalents$56,666 $129,715 $225,757 $306,704 $387,065
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 Electricity/Heat$4,280 $4,280 $4,280 $4,280 $4,280 Accounts Receivable$0 $16,438 $16,438 $16,438 $16,438
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 Sewage Treatment$4,000 $4,000 $4,000 $4,000 $4,000 Inventory$0 $10,000 $10,000 $10,000 $10,000
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TOTAL COST OF SALES$20,887 $20,887 $20,887 $20,887 $20,887 Other Current Assets
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GROSS PROFIT($20,887)$179,113 $179,113 $179,113 $179,113 TOTAL CURRENT ASSETS$56,666 $156,153 $252,196 $333,142 $413,504
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Administrative Costs
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 Housing/Structural CostsFIXED ASSETS
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 Labor CostsSpawning System Construction$8,406 $8,406 $8,406 $8,406 $8,406
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 Number of Employees 1 1 1 1 1 Land$7,500 $7,500 $7,500 $7,500 $7,500
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 Salaries$14,400 $14,400 $14,400 $14,400 $14,400 Building$66,667 $66,667 $66,667 $66,667 $66,667
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 Spawning System Maintenance Costs$3,026 $3,026 $3,026 $3,026 $3,026 Equipment$280,000 $280,000 $280,000 $280,000 $280,000
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 Depreciation
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 RAS System Equipment Depreciation$56,000 $56,000 $56,000 $56,000 $56,000 Subtotal$362,573 $362,573 $362,573 $362,573 $362,573
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 Spawning System Depreciation$1,681 $1,681 $1,681 $1,681 $1,681 Less Accumulated Depreciation
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 Land/Building Depreciation$6,667 $6,667 $6,667 $6,667 $6,667 Spawning System Construction$1,681 $3,363 $5,044 $6,725 $8,406
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 Land$0 $0 $0 $0 $0
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Interest Payments6%$27,467 $25,383 $23,174 $20,833 $18,351 Building$6,667 $13,333 $20,000 $26,667 $33,333
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TOTAL FIXED COSTS$109,241 $107,158 $104,949 $102,607 $100,125 Equipment$56,000 $112,000 $168,000 $224,000 $280,000
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 TOTAL FIXED ASSETS$298,225 $233,877 $169,529 $105,181 $40,833
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TOTAL COSTS$130,129 $128,045 $125,836 $123,494 $121,013
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PROFIT BEFORE TAX($130,129)$71,955 $74,164 $76,506 $78,987 TOTAL ASSETS$354,891 $390,030 $421,725 $438,324 $454,337
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TAXATION25%$0 $0 $3,445 $18,541 $19,126
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PROFIT AFTER TAX($130,129)$71,955 $70,719 $57,965 $59,861 LIABILITIES & STOCKHOLDERS EQUITY
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RETAINED EARNINGS($130,129)($58,174)$12,545 $70,510 $130,371 LIABILITIES
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Accounts Payable$1,963 $1,963 $1,963 $1,963 $1,963
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3. SPAWNING SYSTEM CAPITAL EXPENDITUREShort-Term Debt
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Year 1Year 2Year 3Year 4Year 5Long-Term Debt$423,057 $386,241 $347,217 $305,851 $262,004
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Spawning System Requirements
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Total Yield in Number of Fish 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 TOTAL LIABILITIES$425,019 $388,204 $349,180 $307,814 $263,966
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Number of Females Required 2,604 2,604 2,604 2,604 2,604 STOCKHOLDER'S EQUITY
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Number of Male Required 260 260 260 260 260 Capital Stock Issued$60,000 $60,000 $60,000 $60,000 $60,000
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Gallons of Females Required 6.5 6.5 6.5 6.5 6.5 Additional Paid-In Capital
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Gallons of Males Required 0.7 0.7 0.7 0.7 0.7 Retained Earnings($130,129)($58,174)$12,545 $70,510 $130,371
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Minimum Spawning Surface Area (square meters) 260 260 260 260 260 TOTAL STOCKHOLDERS EQUITY($70,129)$1,826 $72,545 $130,510 $190,371
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Minimum Spawning Surface Area (sq ft) 5,604 5,604 5,604 5,604 5,604 TOTAL LIABILITIES & STOCKHOLDERS EQUITY$354,891 $390,030 $421,725 $438,324 $454,337
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Minimum Spawning Area (in acres) 43,560 0.129 0.129 0.129 0.129 0.129
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Maintenance Costs for SpawningCash Balance Positive or (Negative)
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Electricity for Moving Water (2 months)2$224 $224 $224 $224 $224 Amount Sheet is Out-Of-Balance$0 ($0)$0 $0 $0
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Amount Cash Flow is Out-Of-Balance
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Spawning System ConstructionCash Calls
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Increase in Spawning Area 5,604 0 0 0 0
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Spawning System Earth Moving Cost 1.50 $8,406 $0 $0 $0 $0 7. TOTAL CAPITAL EXPENDITURE (RAS)
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Book Value for Spawning System$8,406 $8,406 $8,406 $8,406 $8,406 Year 1Year 2Year 3Year 4Year 5
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Beginning Period Value$8,406 $6,725 $5,044 $3,363 $1,681 Tank & Equipment Requirements$280,000 $280,000 $280,000 $280,000 $280,000
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Period Depreciation20%$1,681 $1,681 $1,681 $1,681 $1,681 Tank & Equipment Purchases$280,000 $0 $0 $0 $0
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Accumulated Depreciation$1,681 $3,363 $5,044 $6,725 $8,406 Book Value for Tanks$280,000 $280,000 $280,000 $280,000 $280,000
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Value at Period End$6,725 $5,044 $3,363 $1,681 $0 Beginning Period Value$280,000 $224,000 $168,000 $112,000 $56,000
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Period Depreciation20%$56,000 $56,000 $56,000 $56,000 $56,000