Craft guitars established 2015 company histo

1. craft Guitars
Established 2015
Company History:
Craft Guitars (CG) manufacturers musical instruments and was
founded in 2015 by Mary Garcia. Ms. Garcia has an extensive
background in music, her father and mother are both performers
in local bands, and she has been a guitar player since age 4.
She graduated from California State University San Bernardino
with a BA in marketing in 2004 and was hired by Gibson Brands
in Nashville, Tennessee to work in their marketing department.
Gibson manufactures guitars and other instruments including
the iconic Gibson Les Paul guitar. In 2009 she moved to Guild
Guitars (owned by Fender Electric Instrument Manufacturing
Company) in Scottsdale Arizona as the VP of marketing and
promotions. In 2014 Fender sold Guild Guitars to Cordoba
Music Group in Santa Monica, California and Ms. Garcia
remained with Cordoba during the transition but left at the end
of 2014 and launched CG the following year. In 2019 Ms.
Garcia received a Master of Science in Entrepreneurship &
Innovation degree from CSUSB.
CG manufacturers guitars including custom orders, acoustic,
and electric models. Custom models are designed for and by the
customer with prices from $2,500 to $10,000 depending on
material, with the average being $5,400. Standard models are

2. priced from $800 to $2,000, with an average of $1,300. The
company currently leases a 15,030 square foot production
facility in San Bernardino, California and employs 78 workers.
CG was started with an investment of $200,000 from Ms. Garcia
and a $300,000 private stock sale to family and senior
management. Sales increased rapidly in the first six-years of
operations, but growth has begun to trend slower. The company
has successfully been able to maintain margins despite the rapid
growth. Management meets weekly to discuss production,
suppliers, labor issues, and review financial results.
A few weeks ago, the owner of the building CG is leasing
offered to sell the property. After negotiating a sale price of
$3,450,000 the company began working on a business plan to
request a loan of $2,760,000 (80% LTV) from their bank.
Products:
CG began as a custom design shop and has built a reputation for
innovative and unique creations. The company’s big break
came when noted guitarist and Black Keys front-man Dan
Auerbach was photographed with his custom CG guitar for the
cover of Guitar World Magazine. In 2018 influential guitarist
Nita Strauss ordered a custom acoustic model from CG.
Strauss, who had previously never owned an acoustic guitar, has
a signature Ibanez electric guitar. The CG brand quickly
became a sensation in the music industry after Strauss used the
guitar for a video and song on her solo album “Controlled
Chaos”.
The custom shop continues to produce creative models using
exotic woods and the highest quality workmanship. At least six
unique designs are introduced each year and production is
strictly limited to no more than 25 guitars per design. These
guitars are typically sold out before they are manufactured

3. despite having a significant cost (up to $10,000). The typical
buyer is a guitar collector, and CG’s customer base includes
people that have purchased multiple limited production models.
Some custom CG models are made-to-order with customers
using the company website to design their guitar. The website
is highly interactive allowing the user to create whatever
instrument they want. It will even allow uploading of pictures
or hand drawn images. The customer can choose the wood and
other materials and see a rendering of what the finished product
will look like. Once a design has been completed the customer
can discuss the guitar with an experienced craftsman to
complete the order. This is typically the employee that will
craft the guitar. These one-of-a-kind guitars are the most
expensive with an elevated level of customer service and
interaction. Features can include having a name imbedded in
the finger board, length and shape of the body, location and
number of pick-ups, uniquely designed tuning keys, etc. The
customer can even choose to have the entire production process
recorded (for an additional fee). The finished guitar is
delivered in a custom CG case.
Beginning in 2017 CG began producing a line of standard
guitars (both electric and acoustic) to appeal to a broader base.
These models still feature excellent workmanship but use less
expensive woods and have a more traditional look. The CG
standard line is priced lower than the custom models and sold at
various retail music stores as well as the company website.
CG’s sales growth has been primarily through this line of
products which increased from 1,835 units sold in 2018

4. ($1,835,000) to 2,132 units in 2020 ($2,771,600).
Next 5-years:
The company is focused on continued brand development,
improving their website and social media presence. The
workforce will see a modest increase over the next 5-years and
CG will continue to add efficiency improving equipment to the
factory. The company is discussing hiring a full-time sales
force (4 people) to make personal calls on smaller music stores
to promote their line of standard guitars. The company is also
exploring development of a bass guitar model, both electric and
acoustic. Other projects may include a branded clothing line (t-
shirts and hats), instrument cleaning products, stands, cases,
and other accessories.
Exit Strategy:
The company estimates annual sales will reach $25,000,000 in
12-years at which time they will seek a buyer. Senior
management is hopeful that CG will be purchased by a larger
company that will retain the employees and continue to utilize
the production facility. Ms. Garcia and her officers have
extensive contacts in the music industry and are confident their
company will be an attractive acquisition, allowing them to
negotiate an acceptable sale, with a goal of 5 – 7x EBITDA
(between $22 to $31 million). Additionally, the company will
have the commercial property that will add value and another $3
to $4 million to the sale price.

5. Marketing:
The company has primarily used traditional print media to
advertise the website and products. CG runs a half-page or
quarter-page ad in Guitar World Magazine, Premier Guitar, and
Acoustic Guitar Magazine a few times a year. The company
also has a limited budget for advertisement in on-line
publications including Guitar World Magazine, Rolling Stone,
and Billboard.
A few amateur guitar players have posted videos using CG
models to YouTube, TikTok, Facebook and other platforms.
Despite this the company is just beginning to explore expansion
into social media. The marketing team is developing a series of
instructional videos and a factory tour video showing how a
guitar is built.
CG is a member of the National Association of Music
Merchants (NAMM) and has attended their trade shows over the
years. The company has a custom booth that they use for this
and other similar events including concerts, fairs, and
conventions.
The company website is a featured sales tool and allows users to
design a custom guitar, interact with company craftsman, and
follow the production of their guitar. Virtually all custom-made
guitar orders start with a website visit. Orders for standard
models also use the website.
The marketing budget will be $180,000 in 2021, $225,000 in
2022, and $280,000 in 2023. CG has additional money for IT
and maintenance of the website.

6. Organizational Structure:
CG has the following management organizational structure:
The management committee meets weekly to review plans, sales
orders, supplies, production, and marketing.
Board of Directors:
Mary Garcia – Board Chair
Ms. Garcia is the founder of Craft Guitars.
Michael Stull, PhD
Dr. Stull is the Director of the School of Entrepreneurship at
CSUSB and the Director of the Inland Empire Center for
Entrepreneurship. He has over 30-years of entrepreneurship
experience. Dr. Stull received his BA/MBA from CSUSB and
an EDM from Case Western.
Connie Liu, CPA
Ms. Liu is a partner with the accounting firm of Anderson, Turk
& Smith, LLP in San Bernardino and has over 25-years of
public accounting experience. Ms. Lie has a BA from UCR and
an MBA in accounting from CSUSB.
Don Edwards, Esq.
Mr. Edwards is a partner with the law firm of Edwards, Charles,
Lewis & Tork in Redlands. He has over 30-years of experience
in corporate law. He has a BA from UCLA and a JD from
Stanford University.

7. Susan Rodriguez
Ms. Rodriguez is the owner of SSR Manufacturing, Inc. in
Fontana, which she founded in 1983. SSR manufacturers wood
furniture and had sales over $240 million in 2020. Ms.
Rodriguez has an BA from CSUSB and an executive MBA from
USC Marshall School of Business.
Sheri Moore
Ms. Moore is the President and CEO of San Bernardino Assist,
a nonprofit dedicated to providing services to the homeless .
Ms. Moore has a BA from CSUSB.
The board meets monthly to review financial information,
approve projections, assist in resource management, provide
feedback on products and production.
Need:
CG is seeking a commercial real estate loan of $2,760,000 or
80% of the purchase price ($3,450,000) to buy a 15,030 SF
building in San Bernardino, California. The building sits on
0.80 acres and has 2,760 SF of dedicated office space, 4 loading
docks, and is zoned industrial. The concrete tilt-up
construction was completed in 1988 and the building has a
newer (1-year old) roof.
Shareholders are contributing $150,000 (stock purchase) and the
remaining $540,000 of the down payment will come from the
company, along with the estimated $62,000 in closing costs.
Historic Financial Statements
Balance Sheet
2018

8. 2019
2020
Cash
$ 50,000
2.1%
$ 80,000
2.6%
$ 70,000
1.9%
Marketable Securities
$ 80,000
3.3%
$ 162,000
5.2%
$ 375,000
10.1%
Accounts Receivable
$ 340,000
14.1%
$ 405,000
13.1%
$ 485,000
13.1%
Inventory
$ 415,000
17.2%
$ 488,000
15.7%
$ 590,000
15.9%
Other Current Assets
$ 95,000
3.9%

9. $ 102,700
3.3%
$ 32,000
0.9%
Total Current Assets
$ 980,000
40.6%
$ 1,237,700
39.9%
$ 1,552,000
41.8%
Machinery
$ 1,060,000
43.9%
$ 1,310,000
42.3%
$ 1,590,000
42.8%
Vehicles
$ 225,000
9.3%
$ 210,000
6.8%
$ 240,000
6.5%
Other Long-Term Assets
$ 150,000
6.2%
$ 342,100

10. 11.0%
$ 329,150
8.9%
Total Long-Term Assets
$ 1,435,000
59.4%
$ 1,862,100
60.1%
$ 2,159,150
58.2%
Total Assets
$ 2,415,000
100.0%
$ 3,099,800
100.0%
$ 3,711,150
100.0%
CPLTD
$ 120,000
5.0%
$ 143,000
4.6%

11. $ 211,000
5.7%
Accounts Payable
$ 190,000
7.9%
$ 220,000
7.1%
$ 310,000
8.4%
Wages Payable
$ 108,000
4.5%
$ 145,000
4.7%
$ 124,000
3.3%
Other Payables
$ 250,000
10.4%
$ 317,000
10.2%
$ 320,000
8.6%
Total Current Liabilities
$ 668,000
27.7%
$ 825,000
26.6%
$ 965,000
26.0%

12. Notes Payable
$ 1,077,000
44.6%
$ 1,125,830
36.3%
$ 1,181,924
31.8%
Deferred Income Taxes
$ 40,000
1.7%
$ 98,900
3.2%
$ 22,000
0.6%
Total Long-Term Liabilities
$ 1,117,000
46.3%
$ 1,224,730
39.5%
$ 1,203,924
32.4%
Total Liabilities
$ 1,785,000
73.9%
$ 2,049,730
66.1%
$ 2,168,924
58.4%

13. Common Stock
$ 500,000
20.7%
$ 500,000
16.1%
$ 500,000
13.5%
Retained Earnings
$ 130,000
5.4%
$ 550,070
17.7%
$ 1,042,226
28.1%
Total Equity
$ 630,000
26.1%
$ 1,050,070
33.9%
$ 1,542,226
41.6%
Total Liabilities and Equity

14. $ 2,415,000
100.0%
$ 3,099,800
100.0%
$ 3,711,150
100.0%
Historic Financial Statements
Income Statement
2018
2019
2020
Sales
$ 4,135,000
$ 4,893,600
$ 5,678,600
Cost of Goods Sold
$ 2,514,000
60.8%
$ 2,999,000
61.3%
$ 3,492,000
61.5%
Gross Profit

15. $ 1,621,000
39.2%
$ 1,894,600
38.7%
$ 2,186,600
38.5%
SGA
$ 723,720
17.5%
$ 865,000
17.7%
$ 1,080,000
19.0%
Rent - Loan Payment
$ 135,000
3.3%
$ 135,000
2.8%
$ 135,000
2.4%
Net Operating Expenses
$ 858,720
20.8%
$ 1,000,000
20.4%
$ 1,215,000
21.4%
Operating Income
$ 762,280

16. 18.4%
$ 894,600
18.3%
$ 971,600
17.1%
Depreciation
$ 250,000
6.0%
$ 287,000
5.9%
$ 372,420
6.6%
Taxes
$ 92,210
2.2%
$ 115,444
2.4%
$ 113,844
2.0%
Net Income
$ 420,070
10.2%
$ 492,156
11.9%
$ 485,336
11.7%
Ratios
2018
2019
2020
Sales Growth
21.5%
18.3%

17. 16.0%
GPM
39.2%
38.7%
38.5%
tax rate
18%
19%
19%
ROI
17.4%
15.9%
13.1%
Net Working Capital
$ 312,000
$ 412,700
$ 587,000
Current Ratio
1.47
1.50
1.61
Quick Ratio
0.85
0.91
1.00
Debt to Worth
2.8
2.0
1.4
Accounts Receivable Turnover
12.2
12.1
11.7
Accounts Receivable Days
30.0
30.2

18. 31.2
Inventory Turnover
6.1
6.1
5.9
Inventory Days
60.3
59.4
61.7
Accounts Payable Turnover
13.2
13.6
11.3
Accounts Payable Days
27.6
26.8
32.4
Projected Financial Statements
Balance Sheet
2021
2022
2023
Cash
$ 50,000
0.7%

19. $ 60,000
0.8%
$ 120,000
1.5%
Marketable Securities
$ 90,000
1.3%
$ 120,000
1.6%
$ 200,000
2.4%
Accounts Receivable
$ 580,000
8.2%
$ 643,000
8.7%
$ 740,000
9.0%
Inventory
$ 714,000
10.1%
$ 835,000
11.3%
$ 950,000
11.5%
Other Current Assets
$ 12,537
0.2%
$ 199,911
2.7%
$ 336,386
4.1%
Total Current Assets
$ 1,446,537
20.4%
$ 1,857,911

20. 25.2%
$ 2,346,386
28.4%
Machinery
$ 1,640,000
23.1%
$ 1,700,000
23.0%
$ 1,951,000
23.6%
Vehicles
$ 300,000
4.2%
$ 300,000
4.1%
$ 390,000
4.7%
Land
$ 900,000
12.7%
$ 900,000
12.2%
$ 900,000
10.9%
Building
$ 2,462,069
34.7%
$ 2,374,138
32.1%

21. $ 2,286,207
27.7%
Other Long-Term Assets
$ 342,171
4.8%
$ 255,000
3.5%
$ 390,000
4.7%
Total Long-Term Assets
$ 5,644,240
79.6%
$ 5,529,138
74.8%
$ 5,917,207
71.6%
Total Assets
$ 7,090,777
100.0%
$ 7,387,049
100.0%
$ 8,263,593
100.0%

22. CPLTD
$ 283,000
4.0%
$ 320,000
4.3%
$ 350,000
4.2%
Accounts Payable
$ 380,000
5.4%
$ 411,000
5.6%
$ 463,000
5.6%
Wages Payable
$ 90,000
1.3%
$ 148,000
2.0%
$ 201,000
2.4%
Other Payables
$ 280,000
3.9%
$ 478,000
6.5%
$ 622,200
7.5%
Total Current Liabilities
$ 1,033,000
14.6%
$ 1,357,000
18.4%
$ 1,636,200
19.8%

23. Notes Payable
$ 1,190,245
16.8%
$ 792,573
10.7%
$ 960,786
11.6%
Real Estate Loan
$ 2,662,971
37.6%
$ 2,562,490
34.7%
$ 2,458,436
29.8%
Deferred Income Taxes
$ 27,000
0.4%
$ 60,000
0.8%
$ 100,000
1.2%
Total Long-Term Liabilities
$ 3,880,216
54.7%
$ 3,415,063
46.2%
$ 3,519,222
42.6%

24. Total Liabilities
$ 4,913,216
69.3%
$ 4,772,063
64.6%
$ 5,155,422
62.4%
Common Stock
$ 650,000
9.2%
$ 650,000
8.8%
$ 650,000
7.9%
Retained Earnings
$ 1,527,561
21.5%
$ 1,964,985
26.6%
$ 2,458,170
29.7%
Total Equity
$ 2,177,561

25. 30.7%
$ 2,614,985
35.4%
$ 3,108,170
37.6%
Total Liabilities and Equity
$ 7,090,777
100.0%
$ 7,387,049
100.0%
$ 8,263,592
100.0%
Projected Financial Statements
Income Statement
2021
2022
2023
Sales
$ 6,568,800

26. $ 7,534,500
$ 8,562,000
Cost of Goods Sold
$ 4,040,000
61.5%
$ 4,641,000
61.6%
$ 5,274,000
61.6%
Gross Profit
$ 2,528,800
38.5%
$ 2,893,500
38.4%
$ 3,288,000
38.4%
SGA
$ 1,250,000
19.0%
$ 1,450,000
19.2%
$ 1,650,000
19.3%
Rent - Loan Payment
$ 193,000
2.9%

27. $ 193,000
2.6%
$ 193,000
2.3%
Net Operating Expenses
$ 1,443,000
22.0%
$ 1,643,000
21.8%
$ 1,843,000
21.5%
Operating Income
$ 1,085,800
16.5%
$ 1,250,500
16.6%
$ 1,445,000
16.9%
Depreciation
$ 525,000
8.0%
$ 610,000
8.1%
$ 650,000
7.6%
Taxes
$ 123,376
1.9%
$ 147,315
2.0%
$ 182,850
2.1%
Net Income
$ 437,424
10.6%
$ 493,185

28. 11.9%
$ 612,150
14.8%
Ratios
2021
2022
2023
Sales Growth
15.7%
14.7%
13.6%
GPM
38.5%
38.4%
38.4%
Net Income Growth
tax rate
22%
23%
23%
ROI
6.2%
6.7%
7.4%
Net Working Capital
$ 413,537
$ 500,911
$ 710,186
Current Ratio
1.40

29. 1.37
1.43
Quick Ratio
0.71
0.75
0.85
Debt to Worth
2.3
1.8
1.7
Accounts Receivable Turnover
11.3
11.7
11.6
Accounts Receivable Days
32.2
31.1
31.5
Inventory Turnover
5.7
5.6
5.6
Inventory Days
64.5
65.7
65.7
Accounts Payable Turnover
10.6
11.3
11.4
Accounts Payable Days
34.3
32.3
32.0

30. Other Financial Information:
2020 Cash Flow Statement
2020
Jan
Feb
Mar
Apr
Beginning Cash Balance
$ 242,000
$ 384,639
$ 479,756
$ 540,896
Cash Receipts
% of Sales
8.2%
8.3%
7.9%
7.5%
Sales
$ 465,645
$ 471,324
$ 448,609
$ 425,895
Receivables
$ 530,233

31. $ 486,203
$ 461,027
$ 437,139
Interest Income
0
0
0
0
Sale of LT Asset
0
0
0
0
Total Cash Available
$ 772,233
$ 870,842
$ 940,783
$ 978,034
Cash Payments
Purchases
$ 57,269
$ 57,967
$ 55,174
$ 52,380
Material
$ 143,172
$ 144,918

32. $ 137,934
$ 130,950
Labor
$ 85,903
$ 86,951
$ 82,760
$ 78,570
Total Cost of Goods
$ 286,344
$ 289,836
$ 275,868
$ 261,900
Expenses
SG&A
$ 90,000
$ 90,000
$ 90,000
$ 90,000
Rent
$ 11,250
$ 11,250
$ 11,250
$ 11,250
Taxes
$ -
$ -
$ 22,769

33. $ -
Total Expenses
$ 101,250
$ 101,250
$ 124,019
$ 101,250
Real Estate Downpayment
Cash Paid Out
$ 387,594
$ 391,086
$ 399,887
$ 363,150
Ending Cash Balance
$ 384,639
$ 479,756
$ 540,896
$ 614,884

34. 2020
May
Jun
Jul
Aug
Beginning Cash Balance
$ 614,884
$ 680,779
$ 713,371
$ 760,470
Cash Receipts
% of Sales
7.0%
6.7%
7.2%
6.4%
Sales
$ 397,502
$ 380,466
$ 408,859
$ 363,430
Receivables
$ 411,585
$ 390,574

35. $ 399,773
$ 379,103
Interest Income
0
0
0
0
Sale of LT Asset
0
0
0
0
Total Cash Available
$ 1,026,469
$ 1,071,354
$ 1,113,144
$ 1,139,573
Cash Payments
Purchases
$ 48,888
$ 46,793
$ 50,285
$ 44,698
Material
$ 122,220
$ 116,982
$ 125,712

36. $ 111,744
Labor
$ 73,332
$ 70,189
$ 75,427
$ 67,046
Total Cost of Goods
$ 244,440
$ 233,964
$ 251,424
$ 223,488
Expenses
SG&A
$ 90,000
$ 90,000
$ 90,000
$ 90,000
Rent
$ 11,250
$ 11,250
$ 11,250
$ 11,250
Taxes
$ -
$ 22,769
$ -
$ -

37. Total Expenses
$ 101,250
$ 124,019
$ 101,250
$ 101,250
Real Estate Downpayment
Cash Paid Out
$ 345,690
$ 357,983
$ 352,674
$ 324,738
Ending Cash Balance
$ 680,779
$ 713,371
$ 760,470
$ 814,835

38. 2020
Sep
Oct
Nov
Dec
Beginning Cash Balance
$ 814,835
$ 834,395
$ 878,265
$ 965,894
Cash Receipts
% of Sales
6.8%
9.4%
11.1%
13.5%
Sales
$ 386,145
$ 533,788
$ 630,325
$ 766,611
Receivables
$ 381,034
$ 473,368
$ 576,491
$ 699,490
Interest Income

39. 0
0
0
0
Sale of LT Asset
0
0
0
0
Total Cash Available
$ 1,195,870
$ 1,307,763
$ 1,454,756
$ 1,665,384
Cash Payments
Purchases
$ 47,491
$ 65,650
$ 77,522
$ 94,284
Material
$ 118,728
$ 164,124
$ 193,806
$ 235,710
Labor
$ 71,237

40. $ 98,474
$ 116,284
$ 141,426
Total Cost of Goods
$ 237,456
$ 328,248
$ 387,612
$ 471,420
Expenses
SG&A
$ 90,000
$ 90,000
$ 90,000
$ 90,000
Rent
$ 11,250
$ 11,250
$ 11,250
$ 11,250
Taxes
$ 22,769
$ -
$ -
$ 45,538
Total Expenses
$ 124,019
$ 101,250

41. $ 101,250
$ 146,788
Real Estate Downpayment
$ 602,000
Cash Paid Out
$ 361,475
$ 429,498
$ 488,862
$ 1,220,208
Ending Cash Balance
$ 834,395
$ 878,265
$ 965,894
$ 445,177
Other Financial Information:
2026 Projected Cash Flow Statement

42. 2026
Jan
Feb
Mar
Apr
Beginning Cash Balance
$ 445,000
$ 666,418
$ 810,204
$ 898,947
Cash Receipts
% of Sales
8.2%
8.3%
7.9%
7.5%
Sales
$ 702,084
$ 710,646
$ 676,398
$ 642,150
Receivables
$ 807,469

43. $ 735,112
$ 695,542
$ 659,103
Interest Income
0
0
0
0
Sale of LT Asset
0
0
0
0
Total Cash Available
$ 1,252,469
$ 1,401,530
$ 1,505,747
$ 1,558,050
Cash Payments
Purchases
$ 86,494
$ 87,548
$ 83,329
$ 79,110
Material
$ 216,234
$ 218,871

44. $ 208,323
$ 197,775
Labor
$ 129,740
$ 131,323
$ 124,994
$ 118,665
Total Cost of Goods
$ 432,468
$ 437,742
$ 416,646
$ 395,550
Expenses
SG&A
$ 137,500
$ 137,500
$ 137,500
$ 137,500
Loan Payment
$ 16,083
$ 16,083
$ 16,083
$ 16,083
Taxes
$ -
$ -
$ 36,570

45. $ -
Total Expenses
$ 153,583
$ 153,583
$ 190,153
$ 153,583
Cash Paid Out
$ 586,051
$ 591,325
$ 606,799
$ 549,133
Ending Cash Balance
$ 666,418
$ 810,204
$ 898,947
$ 1,008,917
2026
May
Jun
Jul
Aug
Beginning Cash Balance

46. $ 1,008,917
$ 1,106,727
$ 1,152,110
$ 1,221,564
Cash Receipts
% of Sales
7.0%
6.7%
7.2%
6.4%
Sales
$ 599,340
$ 573,654
$ 616,464
$ 547,968
Receivables
$ 620,574
$ 588,894
$ 602,765
$ 571,599
Interest Income
0
0
0
0
Sale of LT Asset
0

47. 0
0
0
Total Cash Available
$ 1,629,491
$ 1,695,622
$ 1,754,875
$ 1,793,163
Cash Payments
Purchases
$ 73,836
$ 70,672
$ 75,946
$ 67,507
Material
$ 184,590
$ 176,679
$ 189,864
$ 168,768
Labor
$ 110,754
$ 106,007
$ 113,918
$ 101,261
Total Cost of Goods
$ 369,180
$ 353,358

48. $ 379,728
$ 337,536
Expenses
SG&A
$ 137,500
$ 137,500
$ 137,500
$ 137,500
Loan Payment
$ 16,083
$ 16,083
$ 16,083
$ 16,083
Taxes
$ -
$ 36,570
$ -
$ -
Total Expenses
$ 153,583
$ 190,153
$ 153,583
$ 153,583

49. Cash Paid Out
$ 522,763
$ 543,511
$ 533,311
$ 491,119
Ending Cash Balance
$ 1,106,727
$ 1,152,110
$ 1,221,564
$ 1,302,043
2026
Sep
Oct
Nov
Dec
Beginning Cash Balance
$ 1,302,043
$ 1,327,768
$ 1,392,157
$ 1,522,374
Cash Receipts

50. % of Sales
6.8%
9.4%
11.1%
13.5%
Sales
$ 582,216
$ 804,828
$ 950,382
$ 1,155,870
Receivables
$ 574,510
$ 713,728
$ 869,214
$ 1,054,667
Interest Income
0
0
0
0
Sale of LT Asset
0
0
0
0
Total Cash Available
$ 1,876,554
$ 2,041,497
$ 2,261,372
$ 2,577,041

51. Cash Payments
Purchases
$ 71,726
$ 99,151
$ 117,083
$ 142,398
Material
$ 179,316
$ 247,878
$ 292,707
$ 355,995
Labor
$ 107,590
$ 148,727
$ 175,624
$ 213,597
Total Cost of Goods
$ 358,632
$ 495,756
$ 585,414
$ 711,990
Expenses

52. SG&A
$ 137,500
$ 137,500
$ 137,500
$ 137,500
Loan Payment
$ 16,083
$ 16,083
$ 16,083
$ 16,083
Taxes
$ 36,570
$ -
$ -
$ 73,140
Total Expenses
$ 190,153
$ 153,583
$ 153,583
$ 226,723
Cash Paid Out
$ 548,785
$ 649,339
$ 738,997
$ 938,713
Ending Cash Balance

53. $ 1,327,768
$ 1,392,157
$ 1,522,374
$ 1,638,328
Other Financial Information:
Breakeven
Mary Garcia
CEO and President
COO
CFO
CMO
Production Manager
Supply Manager
Marketing Manager

54. Accounts
Manager
IT Manager
2020 Breakeven
$4,418,183
Fixed Costs 0 1000000 2000000 3000000 4000000
5000000 6000000 7000000 1701264.2 1701264.2
1701264.2 1701264.2 1701264.2 1701264.2
1701264.2 1701264.2 Variable Costs 0
1000000 2000000 3000000 4000000 5000000
6000000 7000000 0 614940.30218715873
1229880.6043743175 1844820.9065614764
2459761.2087486349 3074701.5109357941
3689641.8131229528 4304582.1153101111 Total
Costs 0 1000000 2000000 3000000 4000000
5000000 6000000 7000000 1701264.2
2316204.5021871589 2931144.8043743176
3546085.1065614764 4161025.4087486351
4775965.7109357938 5390906.0131229525
6005846.3153101113 Sales 0 1000000
2000000 3000000 4000000 5000000 6000000
7000000 0 1000000 2000000 3000000 4000000
5000000 6000000 7000000
2023 Breakeven
$6,967,952

55. Fixed Costs 0 1000000 2000000 3000000 4000000
5000000 6000000 7000000 8000000 9000000
2675850 2675850 2675850 2675850 2675850
2675850 2675850 2675850 2675850 2675850
Variable Costs 0 1000000 2000000 3000000 4000000
5000000 6000000 7000000 8000000 9000000 0
615977.57533286617 1231955.1506657323
1847932.7259985984 2463910.3013314647
3079887.8766643307 3695865.4519971968
4311843.0273300633 4927820.6026629293
5543798.1779957954 Total Costs 0 1000000
2000000 3000000 4000000 5000000 6000000
7000000 8000000 9000000 2675850
3291827.5753328661 3907805.1506657321
4523782.7259985982 5139760.3013314642
5755737.8766643312 6371715.4519971963
6987693.0273300633 7603670.6026629293
8219648.1779957954 Sales 0 1000000
2000000 3000000 4000000 5000000 6000000
7000000 8000000 9000000 0 1000000 2000000
3000000 4000000 5000000 6000000 7000000
8000000 9000000