Darryl Williams(Micro Project)

Darryl Williams(Micro Project) - collect cash on a daily...

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Darryl Williams Sales Forecast Our “best guess” monthly forecast is $100,000 on average. Our “worst case” forecast is $50,000 a month. We expect to make around $100,000 a month, but we will not start reconsidering our marketing and management strategies until our income drops below $50,000 a month for at the most three months. Inventory Our average value of inventory will be $30,000 a month. We expect most, if not all, materials will be used within a month. We will order more materials two weeks in advanced, so we will have complete control on how much is in our inventory. We do not plan to have any seasonal buildups, because we are providing a service that will be utilized year round. We rather have too much, than too little, because most of our ingredients can be frozen and kept over time. Projected Cash Flow We have decided that we will require at least $300,000 of starting capital. We plan to
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Unformatted text preview: collect cash on a daily basis and pay our expenses at the end of each month. All cash in the registers at the end of the day will be collected and deposited in our account the next morning. While at the bank, all checks will be cashed, along with any money charged on credit. Any purchases of materials will be paid for in advance. Employees will receive their salaries at the close of every work week. Break-Even Analysis In order to break-even, our company will have to make a minimum of $50,000 a month. Most of this will go towards purchasing supplies, which will cost around $30,000. The remainder will be used to pay expenses and salaries for the employees. This remainder will more than likely be 40% of sales. This will be divided equally as such; 20% for expenses; 20% for salaries....
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