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You need to prepare an organization plan according to the list. Organizational planning includes four parts, SWOT analysis, strategy, strategy relationship and business model. Please read the case carefully and write it according to the situation and data.

craft Guitars
E s t a b l i s h e d 2 0 1 5

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 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
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 ($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.

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. 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.

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.

Competition:
Acoustic and electric guitar manufacturing is a multi-billion-dollar industry, estimates are $8 billion. The
sales had been trending downward but have seen a recent and substantial increase due in part to the
COVID-19 pandemic. People began looking for indoor hobbies and learning to play the guitar has been
one of the more popular pursuits.

The industry is fragmented with several large manufacturers and many smaller, custom, and boutique
manufacturers (known as luthiers). Industry leaders include:

C.F. Martin and Co.
Established in 1883 and headquartered in Nazareth, Pennsylvania. The company is well known for
manufacturing acoustic guitars. Revenue is estimated at $120 million for this privately held company
that employs approximately 600 people.

Fender Musical Instruments Corp.
Founded in 1946 and is headquartered in Scottsdale, Arizona. Fender manufacturers many different
musical instruments and is well known for their electric guitars, especially Stratocaster model. Brands
include Fender, Gretsch, and Squier. The company is private, but sales are estimated at $500 to $700
million annually.

Gibson Brands, Inc.
Headquartered in Nashville, Tennessee and started in 1902. Gibson manufacturers the well-known Les
Paul model. The company is privately held and filed a chapter 11 bankruptcy in 2018. Now owned
primarily by the private equity firm KKR & Co. Gibson appears ready retake a leadership role in the
industry. The company also owns Epiphone guitars.

Hoshino Gakki Co.
Was founded in 1908 and is headquartered in Nagoya, Japan. The company markets their electric and
acoustic guitars under the Ibanez brand name.

Organizational Structure:
CG has the following management organizational structure:

The management committee meets weekly to review plans, sales orders, supplies, production, and
marketing.

Mary Garcia

CEO and President

COO

Production
Manager

Supply Manager

CFO

Accounts

Manager

CMO

Marketing
Manager

IT Manager

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.

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 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% $ 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 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% $ 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%

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%

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 $ 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 $ 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 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% 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 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% $ 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 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% $ 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%

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%

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%

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 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 $ 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% $ 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 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 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

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 $ 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 $ 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 $ –

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

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 $ 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 $ 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 $ – $ –

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

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 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 $ 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 $ 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

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 $ 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 $ 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 $ –

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 $ 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 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 $ 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

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
% 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

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
SG&A $ 137,500 $ 137,500 $ 137,500 $ 137,500

Loan Payment $ 16,083 $ 16,083 $ 16,083 $ 16,083

Taxes $ 36,570 $ – $ – $ …

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