Yoga Loves collection experience has shown that 70% of the clients purchasing on credit pay in the month following the purchase and 28% pay for their purchase in the second month following purchase. The remaining 2% of credit sales are estimated to be uncollectible. Yoga Loves inventory assumptions are: 40% of next months sales for yoga mats 20% of next month sales for yoga cloths No beginning inventory is required for yoga classes, or teacher training Yoga Loves inventory supplier requires 50% down (paid in the month of purchase), then 70% of the remaining balance after 30 days and the remainder 60 days after the purchase.

Annie also borrowed $30,000 from Wells Fargo- Amortization table shown below. Loan was initiated on March 1, 2020 and the first payment was made on April 1, 2020.

Yoga Loves markup assumptions are: Yoga Classes 700% Teacher Training 500% Yoga Cloths 80% Yoga Mats 50% Yoga Loves owners contributed $75,000 (Annie $50,000 and Tatum $25,000) of their own savings to finance the business.

Yoga Love also has the following transactions: Sound System (10 year useful life- Paid in the 1st month following acquisition) $2,500 March Computer and Point of Sales System (8 year useful life- Paid in the 2nd month following acquisition) $4,000 March Yoga Equipment (2 year useful life- Paid in the 3rd month following acquisition) $2,000 March Yoga Room Heaters (7 years of useful life- Paid in 2nd month following acquisition) $18,500 March Yoga Love Relaxation Room (6 years of useful life- Paid in the 1st month following acquisition) $20,000 March Food and Beverage License (not transferable-paid in the month incurred) $6,000 March Supplies Expense= 15% of current month sales paid in the month following incurrence Rent (Always paid in advance- two months before use) $2,500 per month Utilities (paid in the second month after their use) $900 March $800 April $700 May $700 June $600 July $500 August $600 September $700 October $800 November $800 December $900 January $950 February Wages (paid in the month of occurrence) $1,200 March $1,300 April $1,400 May $1,500 June $1,600 July $1,600 August $1,400 September $1,200 October $1,200 November $1,100 December $1,000 January $1,200 February

Insurance (pre-paid for 12-months in advance in March) $10,500 March Commissions- 10% of sales (paid quarterly beginning in June) Royalties (pre-paid quarterly beginning in June) $2,000 every 3 months Yoga Love Mexico Retreat Expense (paid in month of occurrence) $5,000 January $5,000 February Yoga Love Teacher Training Expense (paid in 2nd month after use) $600 April $700 May $700 June $800 July $900 August $700 September $700 October $500 November $400 December $400 January $500 February Financial Reasoning Yoga Loves sales predictions are based roughly on the product and service segmentations that are typical in the yoga industry: 51.3% classes, 14% merchandise, and 15% training (Moldvay, 2012). In addition, we used projected sales data based on the performance of similar yoga studios. Yoga classes will be offered five times a day in the first year with an average cost per class of $10. We are starting with a low projection of clients in the first year starting at ten in the first month and slowly building to 20 students by February. Classes will likely be busier in the colder winter months, with the exception of a dip in participation rates during the holidays. Sales projections for merchandise are based on the number of clients in classes that are coming through the studio. We estimate that yoga clothing sales will make up 25% of yoga class sales and mats will make up 15%. Yoga Love Teacher Training is priced at the industry average for similar trainings at $1,000 per person for a weeklong intensive certification. We expect to have bigger classes of trainings during the summer months when clients have more time to pursue their dream to become an instructor. We also plan on utilizing this pool of trained teachers to give them the opportunity to work at the studio. The majority of Yoga Loves clients purchase classes and merchandise by cash or through credit card, leading to a higher amount of cash sales than seen in a typical business. The company does set-up a billing system for long-term yoga memberships (6 or 12 months), yoga retreats, and teacher trainings.

Create an income statement and balance sheet.

the loan payments are listed below

Annie also borrowed $30,000 from Wells Fargo- Amortization table shown below. Loan was initiated on March 1, 2020 and the first payment was made on April 1, 2020. Interest Month March April May June July August September October November December January February Beginning Balance $30,000.00 $29,570.02 $29,137.89 $28,703.60 $28.267.14 $27,687.16 $27,107.18 $26,527.20 S25,947.22 $25,367.24 $24.787.26 $24,207.28 Payment $579.98 $579.98 $579.98 $579.98 $579.98 $579.98 $579.98 $579.98 $579.98 $579.98 $579.98 $579.98 Principal $429.98 $432.13 $434.29 S436.47 S438.64 S441.54 $444.44 $447.34 $450.24 $453.14 $456.04 $458.94 $150.00 $147.85 $145.69 $143.52 $141.34 $138.44 S135.54 $132.64 S129.74 S126.84 $123.94 $121.04 Ending Balance $29,570.02 $29,137.89 $28,703.60 $28.267.14 S27,687.16 $27,107.18 $26,527.20 $25,947.22 S25,367.24 $24.787.26 $24.207.28 $23,627.30