John and Sophia, graduates of Sport and Exercise Sciences at the University of Kent, have taken on the management of a new sports center in Canterbury. Recognizing their limited business expertise, they seek assistance in estimating the business`s profitability, liquidity, and sustainability for the first operational year.

Their business will commence on January 1, 2024, with an initial capital deposit of £10,000 into the company bank account. The sports center, located near the new Canterbury Riverside center, will feature modern amenities including 1 studio, 1 fitness room with machinery, 2 changing rooms, and a coffee corner. John and Sophia have secured a rental agreement for the fully equipped building. Operating hours will be Monday to Friday from 7:00 a.m. to 10:00 p.m. and on Saturdays from 8:00 a.m. to 2:00 p.m., closed on Sundays and public holidays. The studio will host sports classes scheduled weekdays in the evenings, while the fitness room will be accessible during operating hours.

John and Sophia estimate a maximum capacity of 80 entrance tickets available per working day, with each customer using an entrance ticket upon entry. A recent survey of gym customers in Kent indicates that, on average, a customer visits the gym 8 times per month.

The sports center will offer four payment options to customers:

1. An annual contract with a monthly subscription of £30 per month payable by direct debit at the beginning of each month.
2. A six-month contract with a monthly subscription of £35, renewable, and always payable by direct debit at the beginning of each month.
3. A three-month contract with a monthly subscription of £40, renewable, and payable by credit card. These receipts will be collected one month later.
4. A single entrance ticket of £5 paid in cash at the time of entry.