The ComfyLinks to an external site. is a product dreamed by the Speciale brothers, Michael and Brian. The Speciale Brothers hit the jackpot on Shark Tank and agreed to sell a $30\%$ stake in their business for $$50,000$ on Dec $31,2020.$ The first year went amazing! The company went from just a few protypes they made to over $$15$ million in sales. The company$$s first year results are given below. Note, like the real world, there is more information than you actually need to do this assignment. You need to figure out what to use.

They have a negotiated contract with a manufacturer in Bangladesh for the following orders:

Production Costs

Monthly Production Bill with under $20,000$ order $$13/$Comfy

Monthly Production Bill with under $20,001-99,999$ order $$12/$Comfy

Monthly Production Bill with $100,000+$ order $$11/$Comfy

Shipping costs are $$4$ per Comfy $($either to the customer directly or to the store$/$QVC$).$

Additionally, the brothers have rolled out an advertising platform and website: thecomfy.comLinks to an external site.. Customer acquisition costs $($the cost of accepting credit cards and advertising on Facebook$)$ are approximately $$6$ per comfy and occur the same month as the sale, regardless of the venue sold.

Creating a Comfy Proforma

Using the percentage of sales approach and the company$$s expectations of sales in the chart below, create a proforma income statement and balance sheet. Determine any additional funding needed in order to sustain the projected growth rate. The Shark wants her $30\%$ of profits in the form of a cash dividend paid out. The Speciale brothers have promised to re$-$invest their money into the business for the first three years.

Product Sale Forecast

Online Home Shopping Network Bed Bath and Beyond

YR $175,000300,000200,000$

YR $2100,000400,000250,000$

YR $3150,000600,000375,000$

Current Assets, Long$-$term assets, and account payable are $25\%,50\%,$ and $20\%$ of sales, respectively. Long$-$term debt and equity are not fixed in relation to sales.