Due Week 7 and worth 80 points---- respond---
Revitalizing Beverage Company will be getting it funding from combination of capital loans and investment. The total capital loan and investment comes to a total of $380,000. The company use of funds will come from the following: Melinda Cates ($40,000), Personal investment ($20,000), Family and Friends ($20,000), Private funding 1 ($100, 000), Private funding 2, and Bank loans from bank of America ($100, 000).
Sources of Funding
Melinda Cates - 40,000
Personal investment - $20,000
, Family and Friends - $20,000
Private funding 1- $100, 000
Private funding 2- $100, 000
| Capital Investments and Loans |
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| Item | Amount | Date | Loan Period | Interest Rate | ||||
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| Equity Capital Investments |
| Month | Year |
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| Melinda Cates | $40,000 | Apr | 2017 | Capital investments are not paid back on a loan schedule. | ||||
| Personal investment | $20,000 | Apr | 2017 | |||||
| Investment Source Name | $0 | Apr | 2017 | |||||
| Investment Source Name | $0 | Apr | 2017 | |||||
| Investment Source Name | $0 | Apr | 2017 | |||||
| Investment Source Name | $0 | Apr | 2017 | |||||
| Investment Source Name | $0 | Apr | 2017 | |||||
| Investment Source Name | $0 | Apr | 2017 | |||||
| Investment Source Name | $0 | Apr | 2017 | |||||
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| Investment Source Name | $0 | Apr | 2017 | ||||
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| Investment Source Name | $0 | Apr | 2017 | ||||
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| Investment Source Name | $0 | Apr | 2017 | ||||
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| Investment Source Name | $0 | Apr | 2017 | ||||
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| Investment Source Name | $0 | Apr | 2017 | ||||
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| Investment Source Name | $0 | Apr | 2017 | ||||
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| Total Capital Investments | $60,000 |
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| Loans |
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| Family and Friends | $20,000 | Apr | 2017 | 24 | 5.00% | |||
| Private funding 1 | $100,000 | Apr | 2017 | 24 | 5.00% | |||
| Private funding 2 | $100,000 | Apr | 2017 | 24 | 5.00% | |||
| Bank of America | $100,000 | Apr | 2017 | 2.80% | ||||
| Loan Source Name | $0 | Apr | 2017 | 24 |
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| Loan Source Name | $0 | Apr | 2017 | 24 |
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| Loan Source Name | $0 | Apr | 2017 | 24 |
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| Loan Source Name | $0 | Apr | 2017 | 24 |
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| Loan Source Name | $0 | Apr | 2017 | 24 |
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| Loan Source Name | $0 | Apr | 2017 | 24 |
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| Loan Source Name | $0 | Apr | 2017 | 24 |
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| Loan Source Name | $0 | Apr | 2017 | 24 |
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| Loan Source Name | $0 | Apr | 2017 | 24 |
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| Loan Source Name | $0 | Apr | 2017 | 24 |
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| Loan Source Name | $0 | Apr | 2017 | 24 |
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| Loan Source Name | $0 | Apr | 2017 | 24 |
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| Loan Source Name | $0 | Apr | 2017 | 24 |
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| Loan Source Name | $0 | Apr | 2017 | 24 |
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| Loan Source Name | $0 | Apr | 2017 | 24 |
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| Loan Source Name | $0 | Apr | 2017 | 24 |
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| Total Loans | $320,000 |
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| TOTAL INVESTMENTS AND LOANS | $380,000 | ||||||
The company use of funds will include the following: inventory purchases, capital purchase equipment including manufacturing and delivery equipment and funding of working capital.
Inventory Purchases -$167,604
Capital Purchases- $91,750
Primary Assumptions
Number of Product Lines: 3
% of Sales on Credit: 55%
Days Credit: 30Annual Benefits Cost (Full-time):$4,5005
Annual Benefits Cost (Part-time): 1,2501
Annual Benefits Cost Increase: 3%
Annual Wage Increase: 3%
Payroll Tax %: 12.5%
Opening Bank Account Balance: 16,5004
Tax rate: 56%Bank Interest Earnings Rate: 1%
The break-even analysis for the first year is 41,476,301
| Variable Costs | Year 1 | Fixed Costs | Year 1 |
| Salaries and wages | $1,210,044 | Professional services | $558 |
| Employee Benefits | $1,100 | Marketing and Advertising | $4,140 |
| Commissions | $181,507 | Rent | $120 |
| Returns and Allowances | $489,490 | Equipment rental | $300 |
| Maintenance | $450 | ||
| Total Variable Costs | $793,141 | Depreciation | $400 |
| Insurance | $5,000 | ||
| Projected units Sold Yr 1 | $145,631 | Telephone service | $45 |
| Variable Cost per Unit | $4.78 | Utilities | $66 |
| Avg unit selling Cost Per unit | $32.41 | Office supplies | $77 |
| Postage and shipping | $24 | ||
| Travel | $1,000 | ||
| Entertainment | $450 | ||
| Breakeven Point | $793,141 | Interest on loans | $1,150 |
| Total Fixed Costs | 12,790 | Total Fixed cost | 14180 |
| Breakeven Units Sold | 805931 | ||
