Due Week 7 and worth 80 points---- respond---

Sources of Funding

1. Melinda Cates - 40,000

2. Personal investment - $20,000

3. , Family and Friends - $20,000

4. Private funding 1- $100, 000

5. Private funding 2- $100, 000

The company use of funds will include the following: inventory purchases, capital purchase equipment including manufacturing and delivery equipment and funding of working capital.

1. Inventory Purchases -$167,604

2. Capital Purchases- $91,750

Primary Assumptions

1. Number of Product Lines: 3

2. % of Sales on Credit: 55%

3. Days Credit: 30Annual Benefits Cost (Full-time):$4,5005

4. Annual Benefits Cost (Part-time): 1,2501

5. Annual Benefits Cost Increase: 3%

6. Annual Wage Increase: 3%

7. Payroll Tax %: 12.5%

8. Opening Bank Account Balance: 16,5004

9. Tax rate: 56%Bank Interest Earnings Rate: 1%

The break-even analysis for the first year is 41,476,301

AprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberJanuaryFebruaryMarchTOTAL

energy drink

cost of goods sold

$400$600$900$1,350$2,025$3,038$4,556$10,252$0$0$0$0$23,121

Glass Bottles

$400$600$900$1,350$2,025$3,038$4,556$10,252$0$0$0$0$23,121

Labels

$350$1,875$2,813$4,219$6,328$9,492$14,238$32,036$0$0$0$0$71,351

Metal caps

$1,250$525$788$1,182$1,772$2,658$3,987$8,971$0$0$0$0$21,133

Cardboard Cartons $500$750$1,125$1,688$2,531$3,797$5,695$12,815$0$0$0$0$28,901

Total Inventory Expense$25,000$4,350$5,626$8,439$12,656$18,985$28,477$64,072$0$0$0$0$144,506

GRAND TOTAL INVENTORY$25,000$4,350$5,626$8,439$12,656$18,984$28,477$64,072$0$0$0$0$167,604

Break-even Estimates

Year 1 (2017-2018)

April

$1,406,431

May

$1,405,955

June

$1,408,996

July

$1,473,806

August

$1,501,232

September

$1,474,089

October

$1,449,713

November

$1,456,373

December

$1,457,782

January

$1,453,428

February

$1,621,647

March

$1,606,160

Monthly Average

$1,476,301

AprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberJanuaryFebruaryMarchTOTALAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberJanuaryFebruaryMarchTOTALINCOME

Gross Sales$4,000$4,000$90,000$13,000$22,000$31,000$45,000$57,300$72,500$100,000$33,000$40,000$511,800$796,530$0.00$0$0$0$0$0$0$0$0$0$0$796,530

(Commissions)$0$0$200$600$1,400$1,440$1,370$2,000$2,600$3,300$4,400$5,000$22,310$199,530$0.00$0$0$0$0$0$0$0$0$0$0$199,530

(Returns and allowances)$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0.00$0$0$0$0$0$0$0$0$0$0$0

Net Sales$4,000$4,000$89,800$12,400$20,600$29,560$43,630$55,300$69,900$96,700$28,600$35,000$489,490$597,000$0.00$0$0$0$0$0$0$0$0$0$0$597,000

(Cost of Goods)$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0.00$0$0$0$0$0$0$0$0$0$0$0

GROSS PROFIT$4,000$4,000$89,800$12,400$20,600$29,560$43,630$55,300$69,900$96,700$28,600$35,000$489,490$597,000$0.00$0$0$0$0$0$0$0$0$0$0$597,000

EXPENSES - General and Administrative

Salaries and wages$1,210,044$1,210,044$1,210,044$1,210,044$1,210,044$1,210,044$1,210,044$1,210,044$1,210,044$1,210,044$1,210,044$1,210,044$14,520,528$2,420,088$2,420,088$2,260,857$2,260,857$2,260,857$2,260,857$2,260,857$2,260,857$2,260,857$2,260,857$2,260,857$2,261,057$27,448,948

Employee benefits$1,100$1,100$1,100$1,100$1,100$1,100$1,100$1,100$1,100$1,100$1,100$1,100$13,200$1,155$1,155$1,155$1,155$1,155$1,155$1,155$1,155$1,155$1,155$1,155$2,541$15,246

Payroll taxes$181,507$181,507$181,507$181,507$181,507$181,507$181,507$181,507$181,507$181,507$181,507$181,507$2,178,079$363,013$339,129$339,129$339,129$339,129$339,129$339,129$339,129$339,129$339,129$339,129$339,159$4,093,458

Professional services$558$558$558$558$558$558$558$558$558$558$558$558$6,700$558$558$558$558$558$558$558$558$558$558$558$558$6,700

Marketing and advertising$4,140$4,140$4,140$4,140$4,140$4,140$4,140$4,140$4,140$4,140$4,140$4,140$49,680$4,140$4,140$4,140$4,140$4,140$4,140$4,140$4,140$4,140$4,140$4,140$4,140$49,680

Rent$120$120$120$120$120$120$120$120$120$120$120$120$1,440$120$120$120$120$120$120$120$120$120$120$120$120$1,440

Equipment rental$300$300$300$300$300$300$300$300$300$300$300$300$3,600$300$300$300$300$300$300$300$300$300$300$300$300$3,600

Maintenance$450$450$450$450$450$450$450$450$450$450$450$450$5,400$450$450$450$450$450$450$450$450$450$450$450$450$5,400

Depreciation$400$0$0$0$0$0$0$0$0$0$0$0$400$0$0$0$0$0$0$0$0$0$0$0$0$0

Insurance$5,000$5,000$5,000$5,000$5,000$5,000$5,000$5,000$5,000$5,000$5,000$5,000$60,000$5,000$5,000$5,000$5,000$5,000$5,000$5,000$5,000$5,000$5,000$5,000$5,000$60,000

Telephone service$45$45$45$45$45$45$45$45$45$45$45$45$540$45$45$45$45$45$45$45$45$45$45$45$45$540

Utilities$66$66$66$66$66$66$66$66$66$66$66$66$792$66$66$66$66$66$66$66$66$66$66$66$66$792

Office supplies$77$77$77$77$77$77$77$77$77$77$77$77$924$77$77$77$77$77$77$77$77$77$77$77$77$924

Postage and shipping$24$24$24$24$24$24$24$24$24$24$24$24$288$24$24$24$24$24$24$24$24$24$24$24$24$288

Travel$1,000$1,000$1,000$1,000$1,000$1,000$1,000$1,000$1,000$1,000$1,000$1,000$12,000$1,000$1,000$1,000$1,000$1,000$1,000$1,000$1,000$1,000$1,000$1,000$1,000$12,000

Entertainment$450$450$450$450$450$450$450$450$450$450$450$450$5,400$450$450$450$450$450$450$450$450$450$450$450$450$5,400

Interest on loans$1,150$1,067$984$901$817$733$696$659$621$584$546$508$9,265$470$432$393$355$316$277$238$199$159$120$80$40$3,077

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

TOTAL EXPENSES$1,406,431$1,405,948$1,405,865$1,405,782$1,405,698$1,405,614$1,405,577$1,405,540$1,405,502$1,405,465$1,405,427$1,405,389$16,868,236$2,796,956$2,773,033$2,613,764$2,613,726$2,613,687$2,613,648$2,613,609$2,613,570$2,613,530$2,613,491$2,613,451$2,615,027$31,707,492

Net income before taxes$1,406,431$1,405,948$1,405,865$1,405,782$1,405,698$1,405,614$1,405,577$1,405,540$1,405,502$1,405,465$1,405,427$1,405,389$16,868,236$3,173,825$3,125,979$2,966,671$2,966,594$2,966,517$2,966,439$2,966,361$2,966,282$2,966,203$2,966,124$2,966,045$2,968,997$35,966,037

Provision for taxes on income$0$351,487$351,466$351,445$351,424$351,404$351,394$351,385$351,376$351,366$351,357$351,347$4,217,059$793,456$781,495$741,668$741,649$741,629$741,610$741,590$741,571$741,551$741,531$741,511$0$8,991,509

NET PROFIT$1,406,431$1,054,461$1,054,399$1,054,336$1,054,273$1,054,211$1,054,183$1,054,155$1,054,127$1,054,098$1,054,070$1,054,042$12,651,177$2,380,368$2,344,484$2,225,003$2,224,946$2,224,887$2,224,829$2,224,770$2,224,712$2,224,653$2,224,593$2,224,534$0$26,974,528

Balance SheetBalance SheetBalance SheetBalance SheetBalance Sheet

ASSETSASSETSASSETSASSETSASSETS

Current AssetsCurrent AssetsCurrent AssetsCurrent AssetsCurrent Assets

Cash$194,804Cash$374,413Cash$2,552,838Cash$8,698,370Cash$11,748,816

Accounts Receivable$75,650Accounts Receivable$46,103Accounts Receivable-$168,939Accounts Receivable-$5,525,148Accounts Receivable-$5,565,148

Inventory$34,975Inventory$75,052Inventory$167,599Inventory$167,598Inventory$167,598

Other Current Assets$0Other Current Assets$0Other Current Assets$0Other Current Assets$0Other Current Assets$0

Total Current Assets$305,429Total Current Assets$495,568Total Current Assets$2,551,499Total Current Assets$3,340,820Total Current Assets$6,351,266

Fixed AssetsFixed AssetsFixed AssetsFixed AssetsFixed Assets

Land$500Land$500Land$500Land$500Land$500

Facilities$0Facilities$0Facilities$0Facilities$0Facilities$0

Equipment$110,800Equipment$110,800Equipment$110,800Equipment$110,800Equipment$110,800

Computers & Telecommunications$1,250Computers & Telecommunications$1,250Computers & Telecommunications$1,250Computers & Telecommunications$1,250Computers & Telecommunications$1,250

(Less Accumlated Depreciation)$400(Less Accumlated Depreciation)$400(Less Accumlated Depreciation)$400(Less Accumlated Depreciation)$400(Less Accumlated Depreciation)$400

Total Fixed Assets$112,150Total Fixed Assets$112,150Total Fixed Assets$112,150Total Fixed Assets$112,150Total Fixed Assets$112,150

Other Assets$0Other Assets$0Other Assets$0Other Assets$0Other Assets$0

TOTAL ASSETS$4,112TOTAL ASSETS$607,718TOTAL ASSETS$2,663,649TOTAL ASSETS$3,452,970TOTAL ASSETS$6,463,416

LIABILITIESLIABILITIESLIABILITIESLIABILITIESLIABILITIES

Current LiabilitiesCurrent LiabilitiesCurrent LiabilitiesCurrent LiabilitiesCurrent Liabilities

Short-Term Notes Payable$148,742Short-Term Notes Payable$109,966Short-Term Notes Payable$111,346Short-Term Notes Payable$112,744Short-Term Notes Payable$0

Income Taxes Due$702,953Income Taxes Due$1,757,227Income Taxes Due$2,811,381Income Taxes Due$4,217,059Income Taxes Due$13,208,568

Other Current Liabilities$0Other Current Liabilities$0Other Current Liabilities$0Other Current Liabilities$0Other Current Liabilities$0

Total Current Liabilities$851,696Total Current Liabilities$1,867,192Total Current Liabilities$2,922,727Total Current Liabilities$4,329,803Total Current Liabilities$13,208,568

Long-Term LiabilitiesLong-Term LiabilitiesLong-Term LiabilitiesLong-Term LiabilitiesLong-Term Liabilities

Long-Term Notes Payable$85,083Long-Term Notes Payable$57,075Long-Term Notes Payable$28,715Long-Term Notes Payable$0Long-Term Notes Payable$0

Other Long-Term Liabilities$0Other Long-Term Liabilities$0Other Long-Term Liabilities$0Other Long-Term Liabilities$0Other Long-Term Liabilities$0

Total Long-Term Liabilities$85,083Total Long-Term Liabilities$57,075Total Long-Term Liabilities$28,715Total Long-Term Liabilities$0Total Long-Term Liabilities$0

NET WORTHNET WORTHNET WORTHNET WORTHNET WORTH

Paid-In Capital$60,000Paid-In Capital$60,000Paid-In Capital$160,000Paid-In Capital$260,000Paid-In Capital$260,000

Retained Earnings-$992,667Retained Earnings-$1,376,550Retained Earnings-$447,794Retained Earnings-$1,136,833Retained Earnings-$7,005,153

Total Net Worth-$932,667Total Net Worth-$1,316,550Total Net Worth-$287,794Total Net Worth-$876,833Total Net Worth-$6,745,153

TOTAL LIABILITIES AND NET WORTH$4,112TOTAL LIABILITIES AND NET WORTH$607,718TOTAL LIABILITIES AND NET WORTH$2,663,649TOTAL LIABILITIES AND NET WORTH$3,452,970TOTAL LIABILITIES AND NET WORTH$6,463,416

Revitalizing Beverage company

First Quarter

2017

Revitalizing Beverage company

Fourth Quarter2018

Revitalizing Beverage company

Second Quarter

Revitalizing Beverage company

Third Quarter

201720172017

Revitalizing Beverage company