A financial plan
Complex_
CraftGuitars.docxEstablished 2015
Company History:
Craft Guitars (CG) manufacturers musical instruments and was founded in 2015 by Mary Garcia. Ms. Garcia has an extensive background in music, her father and mother are both performers in local bands, and she has been a guitar player since age 4. She graduated from California State University San Bernardino with a BA in marketing in 2004 and was hired by Gibson Brands in Nashville, Tennessee to work in their marketing department. Gibson manufactures guitars and other instruments including the iconic Gibson Les Paul guitar. In 2009 she moved to Guild Guitars (owned by Fender Electric Instrument Manufacturing Company) in Scottsdale Arizona as the VP of marketing and promotions. In 2014 Fender sold Guild Guitars to Cordoba Music Group in Santa Monica, California and Ms. Garcia remained with Cordoba during the transition but left at the end of 2014 and launched CG the following year. In 2019 Ms. Garcia received a Master of Science in Entrepreneurship & Innovation degree from CSUSB.
CG manufacturers guitars including custom orders, acoustic, and electric models. Custom models are designed for and by the customer with prices from $2,500 to $10,000 depending on material, with the average being $5,400. Standard models are priced from $800 to $2,000, with an average of $1,300. The company currently leases a 15,030 square foot production facility in San Bernardino, California and employs 78 workers.
CG was started with an investment of $200,000 from Ms. Garcia and a $300,000 private stock sale to family and senior management. Sales increased rapidly in the first six-years of operations, but growth has begun to trend slower. The company has successfully been able to maintain margins despite the rapid growth. Management meets weekly to discuss production, suppliers, labor issues, and review financial results.
A few weeks ago, the owner of the building CG is leasing offered to sell the property. After negotiating a sale price of $3,450,000 the company began working on a business plan to request a loan of $2,760,000 (80% LTV) from their bank.
Products:
CG began as a custom design shop and has built a reputation for innovative and unique creations. The company’s big break came when noted guitarist and Black Keys front-man Dan Auerbach was photographed with his custom CG guitar for the cover of Guitar World Magazine. In 2018 influential guitarist Nita Strauss ordered a custom acoustic model from CG. Strauss, who had previously never owned an acoustic guitar, has a signature Ibanez electric guitar. The CG brand quickly became a sensation in the music industry after Strauss used the guitar for a video and song on her solo album “Controlled Chaos”.
The custom shop continues to produce creative models using exotic woods and the highest quality workmanship. At least six unique designs are introduced each year and production is strictly limited to no more than 25 guitars per design. These guitars are typically sold out before they are manufactured despite having a significant cost (up to $10,000). The typical buyer is a guitar collector, and CG’s customer base includes people that have purchased multiple limited production models.
Some custom CG models are made-to-order with customers using the company website to design their guitar. The website is highly interactive allowing the user to create whatever instrument they want. It will even allow uploading of pictures or hand drawn images. The customer can choose the wood and other materials and see a rendering of what the finished product will look like. Once a design has been completed the customer can discuss the guitar with an experienced craftsman to complete the order. This is typically the employee that will craft the guitar. These one-of-a-kind guitars are the most expensive with an elevated level of customer service and interaction. Features can include having a name imbedded in the finger board, length and shape of the body, location and number of pick-ups, uniquely designed tuning keys, etc. The customer can even choose to have the entire production process recorded (for an additional fee). The finished guitar is delivered in a custom CG case.
Beginning in 2017 CG began producing a line of standard guitars (both electric and acoustic) to appeal to a broader base. These models still feature excellent workmanship but use less expensive woods and have a more traditional look. The CG standard line is priced lower than the custom models and sold at various retail music stores as well as the company website. CG’s sales growth has been primarily through this line of products which increased from 1,835 units sold in 2018 ($1,835,000) to 2,132 units in 2020 ($2,771,600).
Next 5-years:
The company is focused on continued brand development, improving their website and social media presence. The workforce will see a modest increase over the next 5-years and CG will continue to add efficiency improving equipment to the factory. The company is discussing hiring a full-time sales force (4 people) to make personal calls on smaller music stores to promote their line of standard guitars. The company is also exploring development of a bass guitar model, both electric and acoustic. Other projects may include a branded clothing line (t-shirts and hats), instrument cleaning products, stands, cases, and other accessories.
Exit Strategy:
The company estimates annual sales will reach $25,000,000 in 12-years at which time they will seek a buyer. Senior management is hopeful that CG will be purchased by a larger company that will retain the employees and continue to utilize the production facility. Ms. Garcia and her officers have extensive contacts in the music industry and are confident their company will be an attractive acquisition, allowing them to negotiate an acceptable sale, with a goal of 5 – 7x EBITDA (between $22 to $31 million). Additionally, the company will have the commercial property that will add value and another $3 to $4 million to the sale price.
Marketing:
The company has primarily used traditional print media to advertise the website and products. CG runs a half-page or quarter-page ad in Guitar World Magazine, Premier Guitar, and Acoustic Guitar Magazine a few times a year. The company also has a limited budget for advertisement in on-line publications including Guitar World Magazine, Rolling Stone, and Billboard.
A few amateur guitar players have posted videos using CG models to YouTube, TikTok, Facebook and other platforms. Despite this the company is just beginning to explore expansion into social media. The marketing team is developing a series of instructional videos and a factory tour video showing how a guitar is built.
CG is a member of the National Association of Music Merchants (NAMM) and has attended their trade shows over the years. The company has a custom booth that they use for this and other similar events including concerts, fairs, and conventions.
The company website is a featured sales tool and allows users to design a custom guitar, interact with company craftsman, and follow the production of their guitar. Virtually all custom-made guitar orders start with a website visit. Orders for standard models also use the website.
The marketing budget will be $180,000 in 2021, $225,000 in 2022, and $280,000 in 2023. CG has additional money for IT and maintenance of the website.
Organizational Structure:
CG has the following management organizational structure:
The management committee meets weekly to review plans, sales orders, supplies, production, and marketing.
Board of Directors:
Mary Garcia – Board Chair
Ms. Garcia is the founder of Craft Guitars.
Michael Stull, PhD
Dr. Stull is the Director of the School of Entrepreneurship at CSUSB and the Director of the Inland Empire Center for Entrepreneurship. He has over 30-years of entrepreneurship experience. Dr. Stull received his BA/MBA from CSUSB and an EDM from Case Western.
Connie Liu, CPA
Ms. Liu is a partner with the accounting firm of Anderson, Turk & Smith, LLP in San Bernardino and has over 25-years of public accounting experience. Ms. Lie has a BA from UCR and an MBA in accounting from CSUSB.
Don Edwards, Esq.
Mr. Edwards is a partner with the law firm of Edwards, Charles, Lewis & Tork in Redlands. He has over 30-years of experience in corporate law. He has a BA from UCLA and a JD from Stanford University.
Susan Rodriguez
Ms. Rodriguez is the owner of SSR Manufacturing, Inc. in Fontana, which she founded in 1983. SSR manufacturers wood furniture and had sales over $240 million in 2020. Ms. Rodriguez has an BA from CSUSB and an executive MBA from USC Marshall School of Business.
Sheri Moore
Ms. Moore is the President and CEO of San Bernardino Assist, a nonprofit dedicated to providing services to the homeless. Ms. Moore has a BA from CSUSB.
The board meets monthly to review financial information, approve projections, assist in resource management, provide feedback on products and production.
Need:
CG is seeking a commercial real estate loan of $2,760,000 or 80% of the purchase price ($3,450,000) to buy a 15,030 SF building in San Bernardino, California. The building sits on 0.80 acres and has 2,760 SF of dedicated office space, 4 loading docks, and is zoned industrial. The concrete tilt-up construction was completed in 1988 and the building has a newer (1-year old) roof.
Shareholders are contributing $150,000 (stock purchase) and the remaining $540,000 of the down payment will come from the company, along with the estimated $62,000 in closing costs.
Historic Financial Statements
|
Balance Sheet |
2018 |
|
2019 |
|
2020 |
|
|
Cash |
$ 50,000 |
2.1% |
$ 80,000 |
2.6% |
$ 70,000 |
1.9% |
|
Marketable Securities |
$ 80,000 |
3.3% |
$ 162,000 |
5.2% |
$ 375,000 |
10.1% |
|
Accounts Receivable |
$ 340,000 |
14.1% |
$ 405,000 |
13.1% |
$ 485,000 |
13.1% |
|
Inventory |
$ 415,000 |
17.2% |
$ 488,000 |
15.7% |
$ 590,000 |
15.9% |
|
Other Current Assets |
$ 95,000 |
3.9% |
$ 102,700 |
3.3% |
$ 32,000 |
0.9% |
|
Total Current Assets |
$ 980,000 |
40.6% |
$ 1,237,700 |
39.9% |
$ 1,552,000 |
41.8% |
|
|
|
|
|
|
|
|
|
Machinery |
$ 1,060,000 |
43.9% |
$ 1,310,000 |
42.3% |
$ 1,590,000 |
42.8% |
|
Vehicles |
$ 225,000 |
9.3% |
$ 210,000 |
6.8% |
$ 240,000 |
6.5% |
|
Other Long-Term Assets |
$ 150,000 |
6.2% |
$ 342,100 |
11.0% |
$ 329,150 |
8.9% |
|
Total Long-Term Assets |
$ 1,435,000 |
59.4% |
$ 1,862,100 |
60.1% |
$ 2,159,150 |
58.2% |
|
|
|
|
|
|
|
|
|
Total Assets |
$ 2,415,000 |
100.0% |
$ 3,099,800 |
100.0% |
$ 3,711,150 |
100.0% |
|
|
|
|
|
|
|
|
|
CPLTD |
$ 120,000 |
5.0% |
$ 143,000 |
4.6% |
$ 211,000 |
5.7% |
|
Accounts Payable |
$ 190,000 |
7.9% |
$ 220,000 |
7.1% |
$ 310,000 |
8.4% |
|
Wages Payable |
$ 108,000 |
4.5% |
$ 145,000 |
4.7% |
$ 124,000 |
3.3% |
|
Other Payables |
$ 250,000 |
10.4% |
$ 317,000 |
10.2% |
$ 320,000 |
8.6% |
|
Total Current Liabilities |
$ 668,000 |
27.7% |
$ 825,000 |
26.6% |
$ 965,000 |
26.0% |
|
|
|
|
|
|
|
|
|
Notes Payable |
$ 1,077,000 |
44.6% |
$ 1,125,830 |
36.3% |
$ 1,181,924 |
31.8% |
|
Deferred Income Taxes |
$ 40,000 |
1.7% |
$ 98,900 |
3.2% |
$ 22,000 |
0.6% |
|
Total Long-Term Liabilities |
$ 1,117,000 |
46.3% |
$ 1,224,730 |
39.5% |
$ 1,203,924 |
32.4% |
|
|
|
|
|
|
|
|
|
Total Liabilities |
$ 1,785,000 |
73.9% |
$ 2,049,730 |
66.1% |
$ 2,168,924 |
58.4% |
|
|
|
|
|
|
|
|
|
Common Stock |
$ 500,000 |
20.7% |
$ 500,000 |
16.1% |
$ 500,000 |
13.5% |
|
Retained Earnings |
$ 130,000 |
5.4% |
$ 550,070 |
17.7% |
$ 1,042,226 |
28.1% |
|
Total Equity |
$ 630,000 |
26.1% |
$ 1,050,070 |
33.9% |
$ 1,542,226 |
41.6% |
|
|
|
|
|
|
|
|
|
Total Liabilities and Equity |
$ 2,415,000 |
100.0% |
$ 3,099,800 |
100.0% |
$ 3,711,150 |
100.0% |
Historic Financial Statements
|
Income Statement |
2018 |
|
2019 |
|
2020 |
|
|
Sales |
$ 4,135,000 |
|
$ 4,893,600 |
|
$ 5,678,600 |
|
|
Cost of Goods Sold |
$ 2,514,000 |
60.8% |
$ 2,999,000 |
61.3% |
$ 3,492,000 |
61.5% |
|
Gross Profit |
$ 1,621,000 |
39.2% |
$ 1,894,600 |
38.7% |
$ 2,186,600 |
38.5% |
|
|
|
|
|
|
|
|
|
SGA |
$ 723,720 |
17.5% |
$ 865,000 |
17.7% |
$ 1,080,000 |
19.0% |
|
Rent - Loan Payment |
$ 135,000 |
3.3% |
$ 135,000 |
2.8% |
$ 135,000 |
2.4% |
|
Net Operating Expenses |
$ 858,720 |
20.8% |
$ 1,000,000 |
20.4% |
$ 1,215,000 |
21.4% |
|
Operating Income |
$ 762,280 |
18.4% |
$ 894,600 |
18.3% |
$ 971,600 |
17.1% |
|
Depreciation |
$ 250,000 |
6.0% |
$ 287,000 |
5.9% |
$ 372,420 |
6.6% |
|
Taxes |
$ 92,210 |
2.2% |
$ 115,444 |
2.4% |
$ 113,844 |
2.0% |
|
Net Income |
$ 420,070 |
10.2% |
$ 492,156 |
11.9% |
$ 485,336 |
11.7% |
|
Ratios |
2018 |
2019 |
2020 |
|
Sales Growth |
21.5% |
18.3% |
16.0% |
|
GPM |
39.2% |
38.7% |
38.5% |
|
tax rate |
18% |
19% |
19% |
|
ROI |
17.4% |
15.9% |
13.1% |
|
Net Working Capital |
$ 312,000 |
$ 412,700 |
$ 587,000 |
|
Current Ratio |
1.47 |
1.50 |
1.61 |
|
Quick Ratio |
0.85 |
0.91 |
1.00 |
|
Debt to Worth |
2.8 |
2.0 |
1.4 |
|
Accounts Receivable Turnover |
12.2 |
12.1 |
11.7 |
|
Accounts Receivable Days |
30.0 |
30.2 |
31.2 |
|
Inventory Turnover |
6.1 |
6.1 |
5.9 |
|
Inventory Days |
60.3 |
59.4 |
61.7 |
|
Accounts Payable Turnover |
13.2 |
13.6 |
11.3 |
|
Accounts Payable Days |
27.6 |
26.8 |
32.4 |
Projected Financial Statements
|
Balance Sheet |
2021 |
|
2022 |
|
2023 |
|
|
Cash |
$ 50,000 |
0.7% |
$ 60,000 |
0.8% |
$ 120,000 |
1.5% |
|
Marketable Securities |
$ 90,000 |
1.3% |
$ 120,000 |
1.6% |
$ 200,000 |
2.4% |
|
Accounts Receivable |
$ 580,000 |
8.2% |
$ 643,000 |
8.7% |
$ 740,000 |
9.0% |
|
Inventory |
$ 714,000 |
10.1% |
$ 835,000 |
11.3% |
$ 950,000 |
11.5% |
|
Other Current Assets |
$ 12,537 |
0.2% |
$ 199,911 |
2.7% |
$ 336,386 |
4.1% |
|
Total Current Assets |
$ 1,446,537 |
20.4% |
$ 1,857,911 |
25.2% |
$ 2,346,386 |
28.4% |
|
|
|
|
|
|
|
|
|
Machinery |
$ 1,640,000 |
23.1% |
$ 1,700,000 |
23.0% |
$ 1,951,000 |
23.6% |
|
Vehicles |
$ 300,000 |
4.2% |
$ 300,000 |
4.1% |
$ 390,000 |
4.7% |
|
Land |
$ 900,000 |
12.7% |
$ 900,000 |
12.2% |
$ 900,000 |
10.9% |
|
Building |
$ 2,462,069 |
34.7% |
$ 2,374,138 |
32.1% |
$ 2,286,207 |
27.7% |
|
Other Long-Term Assets |
$ 342,171 |
4.8% |
$ 255,000 |
3.5% |
$ 390,000 |
4.7% |
|
Total Long-Term Assets |
$ 5,644,240 |
79.6% |
$ 5,529,138 |
74.8% |
$ 5,917,207 |
71.6% |
|
|
|
|
|
|
|
|
|
Total Assets |
$ 7,090,777 |
100.0% |
$ 7,387,049 |
100.0% |
$ 8,263,593 |
100.0% |
|
|
|
|
|
|
|
|
|
CPLTD |
$ 283,000 |
4.0% |
$ 320,000 |
4.3% |
$ 350,000 |
4.2% |
|
Accounts Payable |
$ 380,000 |
5.4% |
$ 411,000 |
5.6% |
$ 463,000 |
5.6% |
|
Wages Payable |
$ 90,000 |
1.3% |
$ 148,000 |
2.0% |
$ 201,000 |
2.4% |
|
Other Payables |
$ 280,000 |
3.9% |
$ 478,000 |
6.5% |
$ 622,200 |
7.5% |
|
Total Current Liabilities |
$ 1,033,000 |
14.6% |
$ 1,357,000 |
18.4% |
$ 1,636,200 |
19.8% |
|
|
|
|
|
|
|
|
|
Notes Payable |
$ 1,190,245 |
16.8% |
$ 792,573 |
10.7% |
$ 960,786 |
11.6% |
|
Real Estate Loan |
$ 2,662,971 |
37.6% |
$ 2,562,490 |
34.7% |
$ 2,458,436 |
29.8% |
|
Deferred Income Taxes |
$ 27,000 |
0.4% |
$ 60,000 |
0.8% |
$ 100,000 |
1.2% |
|
Total Long-Term Liabilities |
$ 3,880,216 |
54.7% |
$ 3,415,063 |
46.2% |
$ 3,519,222 |
42.6% |
|
|
|
|
|
|
|
|
|
Total Liabilities |
$ 4,913,216 |
69.3% |
$ 4,772,063 |
64.6% |
$ 5,155,422 |
62.4% |
|
|
|
|
|
|
|
|
|
Common Stock |
$ 650,000 |
9.2% |
$ 650,000 |
8.8% |
$ 650,000 |
7.9% |
|
Retained Earnings |
$ 1,527,561 |
21.5% |
$ 1,964,985 |
26.6% |
$ 2,458,170 |
29.7% |
|
Total Equity |
$ 2,177,561 |
30.7% |
$ 2,614,985 |
35.4% |
$ 3,108,170 |
37.6% |
|
|
|
|
|
|
|
|
|
Total Liabilities and Equity |
$ 7,090,777 |
100.0% |
$ 7,387,049 |
100.0% |
$ 8,263,592 |
100.0% |
Projected Financial Statements
|
Income Statement |
2021 |
|
2022 |
|
2023 |
|
|
Sales |
$ 6,568,800 |
|
$ 7,534,500 |
|
$ 8,562,000 |
|
|
Cost of Goods Sold |
$ 4,040,000 |
61.5% |
$ 4,641,000 |
61.6% |
$ 5,274,000 |
61.6% |
|
Gross Profit |
$ 2,528,800 |
38.5% |
$ 2,893,500 |
38.4% |
$ 3,288,000 |
38.4% |
|
|
|
|
|
|
|
|
|
SGA |
$ 1,250,000 |
19.0% |
$ 1,450,000 |
19.2% |
$ 1,650,000 |
19.3% |
|
Rent - Loan Payment |
$ 193,000 |
2.9% |
$ 193,000 |
2.6% |
$ 193,000 |
2.3% |
|
Net Operating Expenses |
$ 1,443,000 |
22.0% |
$ 1,643,000 |
21.8% |
$ 1,843,000 |
21.5% |
|
Operating Income |
$ 1,085,800 |
16.5% |
$ 1,250,500 |
16.6% |
$ 1,445,000 |
16.9% |
|
Depreciation |
$ 525,000 |
8.0% |
$ 610,000 |
8.1% |
$ 650,000 |
7.6% |
|
Taxes |
$ 123,376 |
1.9% |
$ 147,315 |
2.0% |
$ 182,850 |
2.1% |
|
Net Income |
$ 437,424 |
10.6% |
$ 493,185 |
11.9% |
$ 612,150 |
14.8% |
|
Ratios |
2021 |
2022 |
2023 |
|
Sales Growth |
15.7% |
14.7% |
13.6% |
|
GPM |
38.5% |
38.4% |
38.4% |
|
Net Income Growth |
|
|
|
|
tax rate |
22% |
23% |
23% |
|
ROI |
6.2% |
6.7% |
7.4% |
|
Net Working Capital |
$ 413,537 |
$ 500,911 |
$ 710,186 |
|
Current Ratio |
1.40 |
1.37 |
1.43 |
|
Quick Ratio |
0.71 |
0.75 |
0.85 |
|
Debt to Worth |
2.3 |
1.8 |
1.7 |
|
Accounts Receivable Turnover |
11.3 |
11.7 |
11.6 |
|
Accounts Receivable Days |
32.2 |
31.1 |
31.5 |
|
Inventory Turnover |
5.7 |
5.6 |
5.6 |
|
Inventory Days |
64.5 |
65.7 |
65.7 |
|
Accounts Payable Turnover |
10.6 |
11.3 |
11.4 |
|
Accounts Payable Days |
34.3 |
32.3 |
32.0 |
Other Financial Information:
2020 Cash Flow Statement
|
2020 |
Jan |
Feb |
Mar |
Apr |
|
Beginning Cash Balance |
$ 242,000 |
$ 384,639 |
$ 479,756 |
$ 540,896 |
|
|
|
|
|
|
|
Cash Receipts |
|
|
|
|
|
% of Sales |
8.2% |
8.3% |
7.9% |
7.5% |
|
Sales |
$ 465,645 |
$ 471,324 |
$ 448,609 |
$ 425,895 |
|
Receivables |
$ 530,233 |
$ 486,203 |
$ 461,027 |
$ 437,139 |
|
Interest Income |
0 |
0 |
0 |
0 |
|
Sale of LT Asset |
0 |
0 |
0 |
0 |
|
Total Cash Available |
$ 772,233 |
$ 870,842 |
$ 940,783 |
$ 978,034 |
|
|
|
|
|
|
|
Cash Payments |
|
|
|
|
|
Purchases |
$ 57,269 |
$ 57,967 |
$ 55,174 |
$ 52,380 |
|
Material |
$ 143,172 |
$ 144,918 |
$ 137,934 |
$ 130,950 |
|
Labor |
$ 85,903 |
$ 86,951 |
$ 82,760 |
$ 78,570 |
|
Total Cost of Goods |
$ 286,344 |
$ 289,836 |
$ 275,868 |
$ 261,900 |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
SG&A |
$ 90,000 |
$ 90,000 |
$ 90,000 |
$ 90,000 |
|
Rent |
$ 11,250 |
$ 11,250 |
$ 11,250 |
$ 11,250 |
|
Taxes |
$ - |
$ - |
$ 22,769 |
$ - |
|
Total Expenses |
$ 101,250 |
$ 101,250 |
$ 124,019 |
$ 101,250 |
|
|
|
|
|
|
|
Real Estate Downpayment |
|
|
|
|
|
|
|
|
|
|
|
Cash Paid Out |
$ 387,594 |
$ 391,086 |
$ 399,887 |
$ 363,150 |
|
|
|
|
|
|
|
Ending Cash Balance |
$ 384,639 |
$ 479,756 |
$ 540,896 |
$ 614,884 |
|
2020 |
May |
Jun |
Jul |
Aug |
|
Beginning Cash Balance |
$ 614,884 |
$ 680,779 |
$ 713,371 |
$ 760,470 |
|
|
|
|
|
|
|
Cash Receipts |
|
|
|
|
|
% of Sales |
7.0% |
6.7% |
7.2% |
6.4% |
|
Sales |
$ 397,502 |
$ 380,466 |
$ 408,859 |
$ 363,430 |
|
Receivables |
$ 411,585 |
$ 390,574 |
$ 399,773 |
$ 379,103 |
|
Interest Income |
0 |
0 |
0 |
0 |
|
Sale of LT Asset |
0 |
0 |
0 |
0 |
|
Total Cash Available |
$ 1,026,469 |
$ 1,071,354 |
$ 1,113,144 |
$ 1,139,573 |
|
|
|
|
|
|
|
Cash Payments |
|
|
|
|
|
Purchases |
$ 48,888 |
$ 46,793 |
$ 50,285 |
$ 44,698 |
|
Material |
$ 122,220 |
$ 116,982 |
$ 125,712 |
$ 111,744 |
|
Labor |
$ 73,332 |
$ 70,189 |
$ 75,427 |
$ 67,046 |
|
Total Cost of Goods |
$ 244,440 |
$ 233,964 |
$ 251,424 |
$ 223,488 |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
SG&A |
$ 90,000 |
$ 90,000 |
$ 90,000 |
$ 90,000 |
|
Rent |
$ 11,250 |
$ 11,250 |
$ 11,250 |
$ 11,250 |
|
Taxes |
$ - |
$ 22,769 |
$ - |
$ - |
|
Total Expenses |
$ 101,250 |
$ 124,019 |
$ 101,250 |
$ 101,250 |
|
|
|
|
|
|
|
Real Estate Downpayment |
|
|
|
|
|
|
|
|
|
|
|
Cash Paid Out |
$ 345,690 |
$ 357,983 |
$ 352,674 |
$ 324,738 |
|
|
|
|
|
|
|
Ending Cash Balance |
$ 680,779 |
$ 713,371 |
$ 760,470 |
$ 814,835 |
|
2020 |
Sep |
Oct |
Nov |
Dec |
|
Beginning Cash Balance |
$ 814,835 |
$ 834,395 |
$ 878,265 |
$ 965,894 |
|
|
|
|
|
|
|
Cash Receipts |
|
|
|
|
|
% of Sales |
6.8% |
9.4% |
11.1% |
13.5% |
|
Sales |
$ 386,145 |
$ 533,788 |
$ 630,325 |
$ 766,611 |
|
Receivables |
$ 381,034 |
$ 473,368 |
$ 576,491 |
$ 699,490 |
|
Interest Income |
0 |
0 |
0 |
0 |
|
Sale of LT Asset |
0 |
0 |
0 |
0 |
|
Total Cash Available |
$ 1,195,870 |
$ 1,307,763 |
$ 1,454,756 |
$ 1,665,384 |
|
|
|
|
|
|
|
Cash Payments |
|
|
|
|
|
Purchases |
$ 47,491 |
$ 65,650 |
$ 77,522 |
$ 94,284 |
|
Material |
$ 118,728 |
$ 164,124 |
$ 193,806 |
$ 235,710 |
|
Labor |
$ 71,237 |
$ 98,474 |
$ 116,284 |
$ 141,426 |
|
Total Cost of Goods |
$ 237,456 |
$ 328,248 |
$ 387,612 |
$ 471,420 |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
SG&A |
$ 90,000 |
$ 90,000 |
$ 90,000 |
$ 90,000 |
|
Rent |
$ 11,250 |
$ 11,250 |
$ 11,250 |
$ 11,250 |
|
Taxes |
$ 22,769 |
$ - |
$ - |
$ 45,538 |
|
Total Expenses |
$ 124,019 |
$ 101,250 |
$ 101,250 |
$ 146,788 |
|
|
|
|
|
|
|
Real Estate Downpayment |
|
|
|
$ 602,000 |
|
|
|
|
|
|
|
Cash Paid Out |
$ 361,475 |
$ 429,498 |
$ 488,862 |
$ 1,220,208 |
|
|
|
|
|
|
|
Ending Cash Balance |
$ 834,395 |
$ 878,265 |
$ 965,894 |
$ 445,177 |
Other Financial Information:
2026 Projected Cash Flow Statement
|
2026 |
Jan |
Feb |
Mar |
Apr |
|
Beginning Cash Balance |
$ 445,000 |
$ 666,418 |
$ 810,204 |
$ 898,947 |
|
|
|
|
|
|
|
Cash Receipts |
|
|
|
|
|
% of Sales |
8.2% |
8.3% |
7.9% |
7.5% |
|
Sales |
$ 702,084 |
$ 710,646 |
$ 676,398 |
$ 642,150 |
|
Receivables |
$ 807,469 |
$ 735,112 |
$ 695,542 |
$ 659,103 |
|
Interest Income |
0 |
0 |
0 |
0 |
|
Sale of LT Asset |
0 |
0 |
0 |
0 |
|
Total Cash Available |
$ 1,252,469 |
$ 1,401,530 |
$ 1,505,747 |
$ 1,558,050 |
|
|
|
|
|
|
|
Cash Payments |
|
|
|
|
|
Purchases |
$ 86,494 |
$ 87,548 |
$ 83,329 |
$ 79,110 |
|
Material |
$ 216,234 |
$ 218,871 |
$ 208,323 |
$ 197,775 |
|
Labor |
$ 129,740 |
$ 131,323 |
$ 124,994 |
$ 118,665 |
|
Total Cost of Goods |
$ 432,468 |
$ 437,742 |
$ 416,646 |
$ 395,550 |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
SG&A |
$ 137,500 |
$ 137,500 |
$ 137,500 |
$ 137,500 |
|
Loan Payment |
$ 16,083 |
$ 16,083 |
$ 16,083 |
$ 16,083 |
|
Taxes |
$ - |
$ - |
$ 36,570 |
$ - |
|
Total Expenses |
$ 153,583 |
$ 153,583 |
$ 190,153 |
$ 153,583 |
|
|
|
|
|
|
|
Cash Paid Out |
$ 586,051 |
$ 591,325 |
$ 606,799 |
$ 549,133 |
|
|
|
|
|
|
|
Ending Cash Balance |
$ 666,418 |
$ 810,204 |
$ 898,947 |
$ 1,008,917 |
|
2026 |
May |
Jun |
Jul |
Aug |
|
Beginning Cash Balance |
$ 1,008,917 |
$ 1,106,727 |
$ 1,152,110 |
$ 1,221,564 |
|
|
|
|
|
|
|
Cash Receipts |
|
|
|
|
|
% of Sales |
7.0% |
6.7% |
7.2% |
6.4% |
|
Sales |
$ 599,340 |
$ 573,654 |
$ 616,464 |
$ 547,968 |
|
Receivables |
$ 620,574 |
$ 588,894 |
$ 602,765 |
$ 571,599 |
|
Interest Income |
0 |
0 |
0 |
0 |
|
Sale of LT Asset |
0 |
0 |
0 |
0 |
|
Total Cash Available |
$ 1,629,491 |
$ 1,695,622 |
$ 1,754,875 |
$ 1,793,163 |
|
|
|
|
|
|
|
Cash Payments |
|
|
|
|
|
Purchases |
$ 73,836 |
$ 70,672 |
$ 75,946 |
$ 67,507 |
|
Material |
$ 184,590 |
$ 176,679 |
$ 189,864 |
$ 168,768 |
|
Labor |
$ 110,754 |
$ 106,007 |
$ 113,918 |
$ 101,261 |
|
Total Cost of Goods |
$ 369,180 |
$ 353,358 |
$ 379,728 |
$ 337,536 |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
SG&A |
$ 137,500 |
$ 137,500 |
$ 137,500 |
$ 137,500 |
|
Loan Payment |
$ 16,083 |
$ 16,083 |
$ 16,083 |
$ 16,083 |
|
Taxes |
$ - |
$ 36,570 |
$ - |
$ - |
|
Total Expenses |
$ 153,583 |
$ 190,153 |
$ 153,583 |
$ 153,583 |
|
|
|
|
|
|
|
Cash Paid Out |
$ 522,763 |
$ 543,511 |
$ 533,311 |
$ 491,119 |
|
|
|
|
|
|
|
Ending Cash Balance |
$ 1,106,727 |
$ 1,152,110 |
$ 1,221,564 |
$ 1,302,043 |
|
2026 |
Sep |
Oct |
Nov |
Dec |
|
Beginning Cash Balance |
$ 1,302,043 |
$ 1,327,768 |
$ 1,392,157 |
$ 1,522,374 |
|
|
|
|
|
|
|
Cash Receipts |
|
|
|
|
|
% of Sales |
6.8% |
9.4% |
11.1% |
13.5% |
|
Sales |
$ 582,216 |
$ 804,828 |
$ 950,382 |
$ 1,155,870 |
|
Receivables |
$ 574,510 |
$ 713,728 |
$ 869,214 |
$ 1,054,667 |
|
Interest Income |
0 |
0 |
0 |
0 |
|
Sale of LT Asset |
0 |
0 |
0 |
0 |
|
Total Cash Available |
$ 1,876,554 |
$ 2,041,497 |
$ 2,261,372 |
$ 2,577,041 |
|
|
|
|
|
|
|
Cash Payments |
|
|
|
|
|
Purchases |
$ 71,726 |
$ 99,151 |
$ 117,083 |
$ 142,398 |
|
Material |
$ 179,316 |
$ 247,878 |
$ 292,707 |
$ 355,995 |
|
Labor |
$ 107,590 |
$ 148,727 |
$ 175,624 |
$ 213,597 |
|
Total Cost of Goods |
$ 358,632 |
$ 495,756 |
$ 585,414 |
$ 711,990 |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
SG&A |
$ 137,500 |
$ 137,500 |
$ 137,500 |
$ 137,500 |
|
Loan Payment |
$ 16,083 |
$ 16,083 |
$ 16,083 |
$ 16,083 |
|
Taxes |
$ 36,570 |
$ - |
$ - |
$ 73,140 |
|
Total Expenses |
$ 190,153 |
$ 153,583 |
$ 153,583 |
$ 226,723 |
|
|
|
|
|
|
|
Cash Paid Out |
$ 548,785 |
$ 649,339 |
$ 738,997 |
$ 938,713 |
|
|
|
|
|
|
|
Ending Cash Balance |
$ 1,327,768 |
$ 1,392,157 |
$ 1,522,374 |
$ 1,638,328 |
Other Financial Information:
Breakeven
Mary Garcia
CEO and President
COO
CFO
CMO
Production Manager
Supply Manager
Marketing Manager
Accounts
Manager
IT Manager
2020 Breakeven
$4,418,183
Fixed Costs 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 1701264.2 1701264.2 1701264.2 1701264.2 1701264 .2 1701264.2 1701264.2 1701264.2 Variable Costs 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 0 614940.302187159 1229880.60437432 1844820.90656148 2459761.20874863 3074701.51093579 3689641.81312295 4304582.11531011 Total Costs 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 1701264.2 2316204.50218716 2931144.80437432 3546085.10656148 4161025.40874864 4775965.71093579 5390906.01312295 6005846.31531011 Sales 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000
2023 Breakeven
$6,967,952
Fixed Costs 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000 9000000 2675850 2675850 2675850 2675850 2675850 2675850 2675850 2675850 2675850 2675850 Variable Costs 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000 9000000 0 615977.575332866 1231955.15066573 1847932.7259986 2463910.30133146 3079887.87666433 3695865.4519972 4311843.02733006 4927820.60266293 5543798.1779958 Total Costs 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000 9000000 2675850 3291827.57533287 3907805.15066573 4523782.7259986 5139760.30133146 5755737.87666433 6371715.4519972 6987693.02733006 7603670.60266293 8219648.1779958 Sales 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000 9000000 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000 9000000
