BUS599

SOURCE OF FUNDS

PLAN ASSUMPTIONS

Short Term Interest Rates 6.99%

Long Term Interest Rate 3.25%

Federal Tax Rate 25%

State Tax Rate 10%

Employee Tax 15%

· REAL-JOY employs 11 staff members total

3 Management (including the Owner and CEO)

2 Administrative Support

2 Sales/Marketing/Advertising

2 Operations/Production

2 Drivers

· Products are sold @ $20.00 per case online or $1.89 per unit

· Sales commission rate is 15%

· Commissioned Sales @ 50%

· COGs = 50%

· Product volume increases by 20% monthly

Break-even Estimates

Year 1 (2016-2017)

January

$936,933

February

$936,918

March

$936,903

April

$936,888

May

$936,873

June

$936,858

July

$936,843

August

$936,828

September

$936,813

October

$936,797

November

$936,782

December

$936,766

Monthly Average

$936,850

Income Statements

2016

JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberTOTAL

INCOME

Gross Sales$1,600,000$1,632,000$1,664,640$1,697,933$1,731,891$1,766,529$1,801,860$1,837,897$1,874,655$1,912,148$1,950,391$1,989,399$21,459,344

(Commissions)$120,000$122,400$124,848$127,345$129,892$132,490$135,139$137,842$140,599$143,411$146,279$149,205$1,609,451

(Returns and allowances)$48,000$48,960$49,939$50,938$51,957$52,996$54,056$55,137$56,240$57,364$58,512$59,682$643,780

Net Sales$1,432,000$1,460,640$1,489,853$1,519,650$1,550,043$1,581,044$1,612,665$1,644,918$1,677,816$1,711,373$1,745,600$1,780,512$19,206,112

(Cost of Goods)$800,000$816,000$832,320$848,966$865,946$883,265$900,930$918,949$937,328$956,074$975,196$994,699$10,729,672

GROSS PROFIT$632,000$644,640$657,533$670,683$684,097$697,779$711,735$725,969$740,489$755,299$770,404$785,813$8,476,441

EXPENSES - General and Administrative

Salaries and wages$297,440$297,440$297,440$297,440$297,440$297,440$297,440$297,440$297,440$297,440$297,440$297,440$3,569,280

Employee benefits$2,750$2,750$2,750$2,750$2,750$2,750$2,750$2,750$2,750$2,750$2,750$2,750$33,000

Payroll taxes$44,616$44,616$44,616$44,616$44,616$44,616$44,616$44,616$44,616$44,616$44,616$44,616$535,392

Professional services$1,117$1,117$1,117$1,117$1,117$1,117$1,117$1,117$1,117$1,117$1,117$1,117$13,400

Marketing and advertising$23,150$23,150$23,150$23,150$23,150$23,150$23,150$23,150$23,150$23,150$23,150$23,150$277,800

Rent$0$0$0$0$0$0$0$0$0$0$0$0$0

Equipment rental$0$0$0$0$0$0$0$0$0$0$0$0$0

Maintenance$0$0$0$0$0$0$0$0$0$0$0$0$0

Depreciation$0$0$0$0$0$0$0$0$0$0$0$0$0

Insurance$0$0$0$0$0$0$0$0$0$0$0$0$0

Telephone service$0$0$0$0$0$0$0$0$0$0$0$0$0

Utilities$0$0$0$0$0$0$0$0$0$0$0$0$0

Office supplies$0$0$0$0$0$0$0$0$0$0$0$0$0

Postage and shipping$0$0$0$0$0$0$0$0$0$0$0$0$0

Travel$0$0$0$0$0$0$0$0$0$0$0$0$0

Entertainment$0$0$0$0$0$0$0$0$0$0$0$0$0

Interest on loans$1,016$1,010$1,004$998$992$986$980$974$968$962$956$950$11,799

Other (change title here)$0$0$0$0$0$0$0$0$0$0$0$0$0

Other (change title here)$0$0$0$0$0$0$0$0$0$0$0$0$0

TOTAL EXPENSES$370,089$370,083$370,077$370,071$370,065$370,059$370,053$370,047$370,041$370,035$370,029$370,023$4,440,671

Net income before taxes$261,912$274,557$287,456$300,613$314,032$327,720$341,682$355,922$370,448$385,264$400,376$415,790$4,035,770

Provision for taxes on income$65,478$68,639$71,864$75,153$78,508$81,930$85,420$88,981$92,612$96,316$100,094$103,947$1,008,943

NET PROFIT$196,434$205,918$215,592$225,459$235,524$245,790$256,261$266,942$277,836$288,948$300,282$311,842$3,026,828

Cash Flow

2016

JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberTOTAL

CASH RECEIPTS

Income from Sales

Cash Sales$1,200,000$1,224,000$1,248,480$1,273,450$1,298,919$1,324,897$1,351,395$1,378,423$1,405,991$1,434,111$1,462,793$1,492,049$16,094,508

Collections$0$400,000$408,000$416,160$424,483$432,973$441,632$450,465$459,474$468,664$478,037$487,598$4,867,486

Total Cash from Sales$1,200,000$1,624,000$1,656,480$1,689,610$1,723,402$1,757,870$1,793,027$1,828,888$1,865,466$1,902,775$1,940,830$1,979,647$20,961,994

Income from Financing

Interest Income$1,450$2,390$3,301$4,219$5,558$6,527$7,606$8,629$9,678$10,756$11,862$12,997$84,974

Loan Proceeds$260,000$0$0$0$0$0$0$0$0$0$0$0$260,000

Equity Capital Investments$85,000$22,500$0$475,000$0$100,000$0$0$0$0$0$0$682,500

Total Cash from Financing$346,450$24,890$3,301$479,219$5,558$106,527$7,606$8,629$9,678$10,756$11,862$12,997$1,027,474

Other Cash Receipts$0$0$0$0$0$0$0$0$0$0$0$0$0

TOTAL CASH RECEIPTS$1,546,450$1,648,890$1,659,781$2,168,829$1,728,960$1,864,397$1,800,633$1,837,516$1,875,144$1,913,531$1,952,692$1,992,644$21,989,468

CASH DISBURSEMENTS

Inventory$39,450$40,239$41,044$41,865$42,702$43,556$44,427$45,316$46,222$47,146$48,089$49,051$529,107

Operating Expenses$369,073$369,073$369,073$369,073$369,073$369,073$369,073$369,073$369,073$369,073$369,073$369,073$4,428,872

Commissions/Returns & Allowances$168,000$171,360$174,787$178,283$181,849$185,486$189,195$192,979$196,839$200,776$204,791$208,887$2,253,231

Capital Purchases$141,253$0$0$0$0$0$0$0$0$0$0$0$141,253

Loan Payments$2,270$2,270$2,270$2,270$2,270$2,270$2,270$2,270$2,270$2,270$2,270$2,270$27,245

Income Tax Payments$0$0$0$0$0$0$0$0$0$0$0$0$0

Investor Dividend Payments$0$0$0$0$0$0$0$0$0$0$0$0$0

Owner's Draw$0$0$0$0$0$0$0$0$0$0$0$0$0

TOTAL CASH DISBURSEMENTS$720,046$582,942$587,174$591,491$595,894$600,385$604,965$609,638$614,404$619,265$624,223$629,281$7,379,708

NET CASH FLOW$826,404$1,065,947$1,072,607$1,577,338$1,133,066$1,264,013$1,195,668$1,227,878$1,260,740$1,294,266$1,328,469$1,363,363$14,609,760

Opening Cash Balance$1,000,000$1,826,404$2,892,351$3,964,959$5,542,297$6,675,363$7,939,376$9,135,044########################################

Cash Receipts$1,546,450$1,648,890$1,659,781$2,168,829$1,728,960$1,864,397$1,800,633$1,837,516$1,875,144$1,913,531$1,952,692$1,992,644

Cash Disbursements$720,046$582,942$587,174$591,491$595,894$600,385$604,965$609,638$614,404$619,265$624,223$629,281

ENDING CASH BALANCE$1,826,404$2,892,351$3,964,959$5,542,297$6,675,363$7,939,376$9,135,044##################################################$15,609,760

Inventory

2016

JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberTOTAL

Product Line 1

Cost of Goods Sold

$799,600$815,592$831,904$848,542$865,513$882,823$900,479$918,489$936,859$955,596$974,708$994,202$10,724,307

STEVIA

$8,500$8,670$8,843$9,020$9,201$9,385$9,572$9,764$9,959$10,158$10,361$10,569$114,003

LEMONS/LIMES

$9,850$10,047$10,248$10,453$10,662$10,875$11,093$11,315$11,541$11,772$12,007$12,247$132,109

GREEN TEA

$8,600$8,772$8,947$9,126$9,309$9,495$9,685$9,879$10,076$10,278$10,483$10,693$115,344

RECYLED CARTONS$12,500$12,750$13,005$13,265$13,530$13,801$14,077$14,359$14,646$14,939$15,237$15,542$167,651

Total Inventory Expense$39,450$40,239$41,044$41,865$42,702$43,556$44,427$45,316$46,222$47,146$48,089$49,051$529,107

GRAND TOTAL INVENTORY$39,450$40,239$41,044$41,865$42,702$43,556$44,427$45,316$46,222$47,146$48,089$49,051$529,107

Bank Loan$100,000Jan2016

Equity Line on Primary Residence$160,000Jan2016

Family Investors$300,000Apr2016

Angel Investors$175,000Apr2016

401K Withdrawl$100,000Jun2016

Personal Savings$85,000Jan2016

Sold Goods And Services$12,500Feb2016

Cashed In Bonds$10,000Feb2016