Going Concern Valuation

GOING CONCERN VALUATION
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Going Concern Valuation
Case Study – Cammeray Golf Club
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Photo Source : Cammeray Golf Club
Case Study – Cammeray Golf Club
Annual Report – 2016
Club Functions
– Trivia
– Twilight Golf
– Melbourne Cup Day Lunch
– Club’s 110th Anniversary
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Case Study – Cammeray Golf Club
Annual Report – 2016
Sell Poker Machines – $95,000
ProShop Changes
Bar GM 61.92%
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Case Study – Cammeray Golf Club
Annual Report – 2017
Sold Poker Machines – $98,455
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Case Study – Cammeray Golf Club
Annual Report – 2018
RMS – Western Harbour Tunnel and the Beaches
Link Tunnel
Ground lease expires 2026
Clubhouse and carpark lease expired June 2018
AusGrid to put new cables in May/June
Bar GM 58% compared with 59% in 2017
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Case Study – Cammeray Golf Club
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2015 2016 2017 2018
Income
Bar and Function Income $379,881 $397,132 $401,220 $393,739
Services $39,115 $40,081 $37,535 $29,715
Green Fees $385,579 $410,920 $424,135 $425,979
Interest $2,195 $1,554 $1,882 $317
Subs and Entrance Fees $286,109 $303,660 $328,357 $277,691
Poker Machine Revenue $16,473 $5,261 $0 $0
Admin and Other Revenue $30,423 $52,741 $38,050 $51,486
Cart Hire $0 $0 $67,234 $52,220
Other Income $0 $0
Total Income $1,139,775 $1,211,349 $1,298,413 $1,231,147

Case Study – Cammeray Golf Club
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Expenses
Bar $140,116 $151,244 $153,106 $156,319
Rent $27,792 $44,294 $29,212 $38,350
Employee $517,991 $532,198 $569,501 $594,805
Untilities $105,720 $106,128 $105,932 $120,065
Depreciation $119,206 $115,527 $105,794 $73,264
Cart Hire $0 $0 $34,430 $31,744
Insurance $36,774 $41,293 $41,600 $42,651
Maintenance $154,115 $144,451 $152,681 $138,902
Pro-Shop $48,369 $48,570 $52,775 $34,272
Accountinmg $7,997 $9,463 $8,719 $8,772
Affiliation $26,125 $25,678 $24,414 $26,868
Printing $6,706 $5,556 $5,537 $4,245
Competition $32,249 $32,348 $22,546 $20,348
Other Expenses $75,308 $83,122 $101,462 $81,595
Finance Costs $3,553 $2,853 $2,608 $2,174
Total Expenses $1,302,021 $1,342,725 $1,410,317 $1,374,374

Case Study – Cammeray Golf Club
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Expenses
Bar $140,116 $151,244 $153,106 $156,319
Rent $27,792 $44,294 $29,212 $38,350
Employee $517,991 $532,198 $569,501 $594,805
Untilities $105,720 $106,128 $105,932 $120,065
Depreciation $119,206 $115,527 $105,794 $73,264
Cart Hire $0 $0 $34,430 $31,744
Insurance $36,774 $41,293 $41,600 $42,651
Maintenance $154,115 $144,451 $152,681 $138,902
Pro-Shop $48,369 $48,570 $52,775 $34,272
Accountinmg $7,997 $9,463 $8,719 $8,772
Affiliation $26,125 $25,678 $24,414 $26,868
Printing $6,706 $5,556 $5,537 $4,245
Competition $32,249 $32,348 $22,546 $20,348
Other Expenses $75,308 $83,122 $101,462 $81,595
Finance Costs $3,553 $2,853 $2,608 $2,174
Total Expenses $1,302,021 $1,342,725 $1,410,317 $1,374,374

Case Study – Cammeray Golf Club
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Profit/Loss -$162,246 -$131,376 -$111,904 -$143,227
-$162,246 -$131,376 -$111,904 -$143,227
Add Back Depreciation $119,206 $115,527 $105,794 $73,264
-$43,040 -$15,849 -$6,110 -$69,963

Assignment Scenario – Cammeray
Golf Club
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2015 2016 2017 2018
Income
Bar and Function Income $1,379,881 $1,397,132 $1,401,220 $1,393,739
Services $39,115 $40,081 $37,535 $29,715
Green Fees $385,579 $410,920 $424,135 $425,979
Interest $2,195 $1,554 $1,882 $317
Subs and Entrance Fees $286,109 $303,660 $328,357 $277,691
Poker Machine Revenue $16,473 $5,261 $0 $0
Admin and Other Revenue $30,423 $52,741 $38,050 $51,486
Cart Hire $0 $0 $67,234 $52,220
Other Income $0 $0
Total Income $2,139,775 $2,211,349 $2,298,413 $2,231,147

Assignment Scenario – Cammeray
Golf Club
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Expenses
Bar $538,154 $544,881 $574,500 $585,370
Rent $27,792 $44,294 $29,212 $38,350
Employee $517,991 $532,198 $569,501 $594,805
Untilities $105,720 $106,128 $105,932 $120,065
Depreciation $119,206 $115,527 $105,794 $73,264
Cart Hire $0 $0 $34,430 $31,744
Insurance $36,774 $41,293 $41,600 $42,651
Maintenance $154,115 $144,451 $152,681 $138,902
Pro-Shop $48,369 $48,570 $52,775 $34,272
Accountinmg $7,997 $9,463 $8,719 $8,772
Affiliation $26,125 $25,678 $24,414 $26,868
Printing $6,706 $5,556 $5,537 $4,245
Competition $32,249 $32,348 $22,546 $20,348
Other Expenses $75,308 $83,122 $101,462 $81,595
Finance Costs $3,553 $2,853 $2,608 $2,174
Total Expenses $1,700,059 $1,736,362 $1,831,711 $1,803,425

Going Concern Valuation
Good Luck!
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