The money needed for the start up costs are coming from our personal funds and the rest of the amount will be from bank loans. We will withdraw $1,000 from each of our personal bank account the rest will have to be taken out in fixed rate loans that will incur interest costs of $6339.56 with at zero down payment. The terms of the financing will be payments of $1083.66 monthly at 1% annual interest rate for a 10-year payback period.

Sales Assumptions for Year 1

Our business will expect to get about 20 subscriptions a month. This is going to result in our revenue for each month. The hours for our operations are 8 hours each training session with all the coffee equipment required to produce the revenue amounts for the forecast and cash will be received in the month of purchase meaning right away.

Sales Assumption for each month from January - April:

20 x 2 = 40 x ($500 + $150) = $26,000

Sales Assumption for each month from May August

10 x 2 = 20 x ($500 + $150) = $13,000

Sales Assumption for each month from September December

20 x 2 = 20 x ($500 - $150) = $26,000

Break Even Analysis

Fixed Costs for one month:

- Staff Wages ($8,333.33)

- Utilities ($375)

- Insurance ($600)

- Coffee Equipment ($15,000)

- Advertising ($900)

- Facility Rent ($1,640)

Sales Price per unit:

- Registration Fee ($500)

Variable Cost per unit:

- Exclusive Coffee Sets ($150)

Break Even = Fixed Costs / Sales Price per unit Variable costs per unit

Break Even = $26,848.33 / $500 - $150

Break Even = 77 baseball players per month

As a result, because it takes 77 subscriptions to sign up a month to break even for profitability. We assume that we can get at least 20 subscriptions per week (10x2=20). Therefore, to calculate for a month it would be 80 subscriptions a month (20x4=80). This is the reason why we assume that we will get at least 20 subscriptions a week for the profitability of our business.

*Question

Write a two-column summary of the proforma Income statement on a worksheet and explain everything

Start-Up Costs: Business Registration $60 Business Domain (2 years) $14.98 Insurance $0 Food Handling License. $99.95 No Lease Terms SO Shopify per month $29 3 Cameras (Canon EOS Rebel T7) each $479.00 cost: Memory Cards (3) each cost: $22.18 3 Tripods each cost: $34.56 Lighting Kit (photography) $349.99 Backdrops (2) each cost: $30.99 Studio So 5 Laptops (MacBook Pro MD101/A $839.95 Marketing ads (Facebook Ads) $0.97 per click Business Plan 4 ols Add-ons Help Last edit was 2 minutes ago t Georgia 8 + BI VA G3 - Shipping Boxes, 11x6x6 inches (25 pack, 4 packs) $33.99 each Shipping poly mailers (100 pack) 14.5x19 $25.10 10X13 (100 pack) $24.99 6x9 (100 pack) $17.57 Shipping postal scales (3) $38.40 each Direct Thermal Label Printer (2) $224.99 each MFLabel Rolls (pack of 6 ) $95.94 Staff Wages (3 shipping and receiving) $15/hr Siaintenance crew (2) I $16.50 Thr Lawyer (1) $3,500 flat fee Human Resources: Recruiter: 523.55 hr Parol: $26.57 Accountants: Bookkeeper: $25 hr Other Accounting work completed by CPA $150 h UU-UNIS Help LOS CUIL Was Seconds ago Georgia 8 + B IUA - DO I E Coffee bags (100 pack) $65 Coffee: Blends : $9.99/1b Decaf, natural and expresso: $10.99/lb Flavoured Amaretto Almond and Butter Pecan: $9.99/1b Organic Expresso FTO: $12.99/1b I $10.99/Ib Single Origin Colombian and Expresso FTO: $11.99 lb Single sere Colombian and House Blend: AutoSave oo O AD Monthly Cash Flows (2020) - D Search File Home Insert Draw Page Layout Formulas Betty Dada 10 Data Review View Help Calibri Share Comme - 12 - A A a-A- 2 Wrap Text Custom Paste BIU - Insert Delete - AY + Merge & Center - $ - % ! Clipboard Conditional Format as Cell Formatting Table Styles Styles d Format Font Sort & Find & Filter Select - Analyze Sensitivity Data Alignment Number Cells D20 Editing X Analysis Sensitivity B C K M M N 01-Jan 01-Feb (38 273.741 E F G H Monthly CashFlow Forecast 2020-2021 Caf X Subscription 01-Apr 01-May 01-Jun 01- 144 529 050 $ 121666721 124 784.381 (27,922 048 01-Mar 41.4014011 01-Aug 131.039.701 1 01-Sep 8.167 3611 01-Ock 01. Nov 01-Dec (11 295 0213114422681175034 4.000.00 3 26.000.00 1 26.000.00 $ 28 000 00 4.000.00! $ 26.000.00 + 1 1 26.000.00 1 + 1 23.000.00 1083 66 : 1083 66 ! 1083.663 1083 68 1083.663 1083.661 108366 1 1083.66 1053 66 1 108366 : 1.063 66 1 1083.66 A 1 2. 3 4 Opening Balance $ 5 5 6 Maneun 7 7 Owner's Capital $ B 8 Bank Loan 9 Sales 10 Other 11 Total Money In 1 1 12 13 Mane Du 14 15 Loan Repayments $ 16 17 Equpiment 78 Coffee Bags $ 19 3 14 13(1001pack $ 20 6 91100 pack) 3 21 Shipping poly mailers (100 pack 14.5x18 1 22 Shipping Postal Scales 13 ! 23 MFL abel Rols Ipack of 61 3 24 Colfee 25 Blends lbs) 3 26 Decal Natural and expresso lbs $ 27 poured Amaretto Amond and buster pecans 28 Organic Expresso FTO lbs 29 lingle Origin Colombian and expresso FTOI ! 30 Single Serve Colombian and House Blend lbs 31 Npping boxes 11.6 inches (25 pack 4 pack 1 3273 Cameras (canon EOSrbe 1479/cametals 33 Memory Card (31 22 18/ard $ 34 3 Tripods (34 56/tripod 3 35 Lighting Photography $ Sheet1 + 65 00 24.99 17.57 25.10 38.40 95.94 9.99 70.99 9.39 12.99 10.99 1199 33.99 1437.00 66.54 23.68 34999 1 14 ENG 0 o 8:32 AM 2020-12-07 H Type here to search E 29 005 29001 2900 5 29 00 375.00 2900 ! 2900 1 375.00 239.00 23.00 375 00 37500 164000 640003 29001 37500 375 000 375 00 375.00 ! 1640001 315 00 1 1640.00 375.00 : 375.00 1640001 1640.000 1640 0 1640 001 164000 1540.000 164000 B 36 Backdrops 121030.99/backdrop 1 61.98 37 Studo 1 38 5 laptops Macbook Prol (833 951 1 4.1975 33 veet Thermal Label Printer 21122493 409 98 40 Colfe Equipment F 15.000.00 21 42 Overhead Expenses 43 Business Registration 1 60 DO 44 Food Handing License 1 99 95 45 No leares 13 46 Shopay per month 1 29.00 : 47 Marketing AddFB dsliper click 1 0.97 49 Us $ 375 00 49 49 Advertising 1 900 00 50 Facity Rent + 1640.00 + 51 Licenese Fees 1 200.00 52 Faces Port Deposit 1 100.00 53 Financing Down Payment 5 50 Contingency Plan $ 3,000.00 55 Liability insurance $ 300 00 56 57 Labour Overhead 58 1 8333 33 53 Mantencance crew 16 50 50 Lawwer flatte + 1 3.500.00 CH 61 Human resources Recruiter 23 55 h 62 Poll 26.57 53 Accountants 64 Bookeeper 256 65 Busness Doman (2 years! 1 14 sa 66 Others ICPAI 150th 67 Overdral interest 68 Total Money out 3 42.273 74 1 89 70 Closna Balance 138.273.7415 Sheet1 + Scallage 3.12766 1 3.27661 3.2766 1 3.127.66 1 32765 3.12766 3.12766 1 3.127.68 (41.401401 149529061121656 721 124 7643311127.912 04 131039 2013 3.127 65 1 9.27561 3.127.661 135 02 | 14 122 121 1 50 4| t 18.157 3615 5,322.00 Start-Up Costs: Business Registration $60 Business Domain (2 years) $14.98 Insurance $0 Food Handling License. $99.95 No Lease Terms SO Shopify per month $29 3 Cameras (Canon EOS Rebel T7) each $479.00 cost: Memory Cards (3) each cost: $22.18 3 Tripods each cost: $34.56 Lighting Kit (photography) $349.99 Backdrops (2) each cost: $30.99 Studio So 5 Laptops (MacBook Pro MD101/A $839.95 Marketing ads (Facebook Ads) $0.97 per click Business Plan 4 ols Add-ons Help Last edit was 2 minutes ago t Georgia 8 + BI VA G3 - Shipping Boxes, 11x6x6 inches (25 pack, 4 packs) $33.99 each Shipping poly mailers (100 pack) 14.5x19 $25.10 10X13 (100 pack) $24.99 6x9 (100 pack) $17.57 Shipping postal scales (3) $38.40 each Direct Thermal Label Printer (2) $224.99 each MFLabel Rolls (pack of 6 ) $95.94 Staff Wages (3 shipping and receiving) $15/hr Siaintenance crew (2) I $16.50 Thr Lawyer (1) $3,500 flat fee Human Resources: Recruiter: 523.55 hr Parol: $26.57 Accountants: Bookkeeper: $25 hr Other Accounting work completed by CPA $150 h UU-UNIS Help LOS CUIL Was Seconds ago Georgia 8 + B IUA - DO I E Coffee bags (100 pack) $65 Coffee: Blends : $9.99/1b Decaf, natural and expresso: $10.99/lb Flavoured Amaretto Almond and Butter Pecan: $9.99/1b Organic Expresso FTO: $12.99/1b I $10.99/Ib Single Origin Colombian and Expresso FTO: $11.99 lb Single sere Colombian and House Blend: AutoSave oo O AD Monthly Cash Flows (2020) - D Search File Home Insert Draw Page Layout Formulas Betty Dada 10 Data Review View Help Calibri Share Comme - 12 - A A a-A- 2 Wrap Text Custom Paste BIU - Insert Delete - AY + Merge & Center - $ - % ! Clipboard Conditional Format as Cell Formatting Table Styles Styles d Format Font Sort & Find & Filter Select - Analyze Sensitivity Data Alignment Number Cells D20 Editing X Analysis Sensitivity B C K M M N 01-Jan 01-Feb (38 273.741 E F G H Monthly CashFlow Forecast 2020-2021 Caf X Subscription 01-Apr 01-May 01-Jun 01- 144 529 050 $ 121666721 124 784.381 (27,922 048 01-Mar 41.4014011 01-Aug 131.039.701 1 01-Sep 8.167 3611 01-Ock 01. Nov 01-Dec (11 295 0213114422681175034 4.000.00 3 26.000.00 1 26.000.00 $ 28 000 00 4.000.00! $ 26.000.00 + 1 1 26.000.00 1 + 1 23.000.00 1083 66 : 1083 66 ! 1083.663 1083 68 1083.663 1083.661 108366 1 1083.66 1053 66 1 108366 : 1.063 66 1 1083.66 A 1 2. 3 4 Opening Balance $ 5 5 6 Maneun 7 7 Owner's Capital $ B 8 Bank Loan 9 Sales 10 Other 11 Total Money In 1 1 12 13 Mane Du 14 15 Loan Repayments $ 16 17 Equpiment 78 Coffee Bags $ 19 3 14 13(1001pack $ 20 6 91100 pack) 3 21 Shipping poly mailers (100 pack 14.5x18 1 22 Shipping Postal Scales 13 ! 23 MFL abel Rols Ipack of 61 3 24 Colfee 25 Blends lbs) 3 26 Decal Natural and expresso lbs $ 27 poured Amaretto Amond and buster pecans 28 Organic Expresso FTO lbs 29 lingle Origin Colombian and expresso FTOI ! 30 Single Serve Colombian and House Blend lbs 31 Npping boxes 11.6 inches (25 pack 4 pack 1 3273 Cameras (canon EOSrbe 1479/cametals 33 Memory Card (31 22 18/ard $ 34 3 Tripods (34 56/tripod 3 35 Lighting Photography $ Sheet1 + 65 00 24.99 17.57 25.10 38.40 95.94 9.99 70.99 9.39 12.99 10.99 1199 33.99 1437.00 66.54 23.68 34999 1 14 ENG 0 o 8:32 AM 2020-12-07 H Type here to search E 29 005 29001 2900 5 29 00 375.00 2900 ! 2900 1 375.00 239.00 23.00 375 00 37500 164000 640003 29001 37500 375 000 375 00 375.00 ! 1640001 315 00 1 1640.00 375.00 : 375.00 1640001 1640.000 1640 0 1640 001 164000 1540.000 164000 B 36 Backdrops 121030.99/backdrop 1 61.98 37 Studo 1 38 5 laptops Macbook Prol (833 951 1 4.1975 33 veet Thermal Label Printer 21122493 409 98 40 Colfe Equipment F 15.000.00 21 42 Overhead Expenses 43 Business Registration 1 60 DO 44 Food Handing License 1 99 95 45 No leares 13 46 Shopay per month 1 29.00 : 47 Marketing AddFB dsliper click 1 0.97 49 Us $ 375 00 49 49 Advertising 1 900 00 50 Facity Rent + 1640.00 + 51 Licenese Fees 1 200.00 52 Faces Port Deposit 1 100.00 53 Financing Down Payment 5 50 Contingency Plan $ 3,000.00 55 Liability insurance $ 300 00 56 57 Labour Overhead 58 1 8333 33 53 Mantencance crew 16 50 50 Lawwer flatte + 1 3.500.00 CH 61 Human resources Recruiter 23 55 h 62 Poll 26.57 53 Accountants 64 Bookeeper 256 65 Busness Doman (2 years! 1 14 sa 66 Others ICPAI 150th 67 Overdral interest 68 Total Money out 3 42.273 74 1 89 70 Closna Balance 138.273.7415 Sheet1 + Scallage 3.12766 1 3.27661 3.2766 1 3.127.66 1 32765 3.12766 3.12766 1 3.127.68 (41.401401 149529061121656 721 124 7643311127.912 04 131039 2013 3.127 65 1 9.27561 3.127.661 135 02 | 14 122 121 1 50 4| t 18.157 3615 5,322.00