Zipali, Inc Assumptions Cost of Sales as a Percent 65% Total Fixed Costs (per month) 140,000 Sales collected in month of sale 45% Depreciation (per month) - included in fixed cost 80,000 Sales collected in month after sale 55% Variable Cost (% of sales) 4% Sales Commission (% of sales) 9% Balance Sheet, December 31, 2011 Cash 270,000 Account Payable 75,000 A/R 275,000 Accrued Commisions 60,000 Inventory 90,000 Common Stock 350,000 Fixed Assets 350,000 Retained Earnings 500,000 985,000 985,000 January February March April May Sales 370,000 480,000 525,000 580,000 320,000 Monthly Sales for the Period Ended March 31, 2012 January February March Total April May Total Sales in Dollars 370,000 480,000 525,000 1,375,000 580,000 320,000 Inventory Budget for Quarter Ended March 31, 2012 Cost of Monthly Sales 240,500 312,000 341,250 893,750 Add: Desired End Inv. February 480,000 312,000 0.00 0.00 312,000 March 525,000 341,250 341,250 0.00 682,500 April 580,000 - 377,000 377,000 754,000 May 320,000 - - 208,000 208,000 Required Ending Inventroy 653,250 718,250 585,000 585,000 Total Needs 893,750 1,030,250 926,250 1,478,750 Less: Beginning Inventory (90,000) (653,250) (718,250) (90,000) Purchase Requirements 803,750 377,000 208,000 1,388,750 Cash Budget for Quarter Ended March 31, 2012 January February March Total Beginning Balance 270,000 501,700 4,950 270,000 Cash Recepts 441,500 419,500 500,250 1,361,250 Total Cash Available 711,500 921,200 505,200 1,631,250 Cash Expenditures Purchases 75,000 803,750 377,000 1,255,750 Variable Costs 14,000 19,200 21,000 55,000 Sales Commissions 60,000 33,300 43,200 136,500 Fixed Expenses 60,000 60,000 60,000 180,000 Total Cash Expenses 209,800 916,250 501,200 1,627,250 Ending Cash Balance 501,700 4,950 4,000 4,000 *Total Cash Available- Total Cash Expense Cash Receipts for Quarter Ended March 31, 2012 January February March Total Account Receivable 275,000 0.00 0.00 275,000 January Sales 166,500 203,500 0.00 370,000 February Sales - 216,000 264,000 480,000 March Sales - - 236,250 236,250 Total Collections 441,500 419,500 500,250 1,361,250 Pro Forma Income Statement January February March Total Sales 370,000 480,000 525,000 1,375,000 Cost of Goods Sold 240,000 312,000 341,250 893,750 Gross Margin 129,500 168,000 183,750 481,250 Less Expenses Variable Costs 14,800 19,200 21,000 55,000 Sales Commission 33,300 43,200 47,250 123,750 Fixed Expense 140,000 140,000 140,000 420,000 Total Expenses 188,100 202,400 208,250 598,750 Net Income (58,600) (34,400) (24,500) (117,500) *Negative Net Incomes Pro Forma Balance Sheet Cash 4,000 Accounts Payable 208,000 Accounts Receivable 288,750 Commissions Payable 47,250 Inventory 585,000 Common Stock 350,000 Fixed Assets - net of accumulated depreciation 110,000 Retained Earnings 382,500 Total Assets- 987,750 Total Liabilities and Net Worth 987,750
