REVENUE ASSUMPTIONS: MORE COST ASSUMPTIONS: Selling price of silk-screened shirts S 18.00 Cary Sue's compensation: Monthly salary Estimated number of shirts to be sold in the first five quarters: Percentage commission of sales First quarter year 1 9,000 Amount of workday focusing on sales Second quarter year 1 10,000 Amount of workday spent on clerical and administrative duties $ 1,000.00 10% 50% 50% Third quarter year 1 20,000 Fourth quarter year 1 First quarter year 2 Schedule of collections: Cash collected in the quarter of the sale Cash collected in the quarter following the sale COST ASSUMPTIONS: 12,000 Graphic designer costs: 18,000 Monthly cost Per shirt cost $ $ 500.00 0.11 75% Building rental: 25% Monthly rent of building $ 1,200.00 Percent of building used for silk-screening process 75% Percent of building used for sales and adminstrative duties 25% Purchasing assumptions: Other costs: Cost per sweatshirt purchased S 9.00 Cost of ink used in the silk-screen process (per shirt) Desired ending inventory of shirts as a percent of the next quarter's sales 22% Weekly advertising cost Annual property taxes and insurance on machinery Schedule for payment of sweatshirts: To be paid in the quarter of purchase To be paid in the quarter following the purchase Direct labor costs: Hourly wage rate to pay college workers Silk-screening labor hours per shirt Depreciation expense: Selling and administrative equipment quarterly depreciation Production equipment quarterly depreciation HINTS/TIPS: Four quarters in a year. Yearly amount / 4 = quarterly amount. Thirteen weeks in a quarter. Weekly amount * 13 = quarterly amount. $ 0.75 $ 100.00 $ 2,240.00 35% Annual property tax and insurance on display furniture and cash register Utilities cost per shirt $ 380.00 $ 0.05 65% Maintenance cost per shirt $ 0.033 Utilities monthly fixed cost $ 1,000,000 Maintenance monthly fixed cost $ 1,650.000 S 11.00 0.12 Other items: Total equipment cost to be paid in quarter 1 and quarter 2 $ 8,675.00 Desired loan amount $ 20,000.00 S 75.00 Interest rate on loan 9% S 690.00 Income tax rate 17%