Cash Flow Assumption for 12 months Cash Flow Statemnet:

Cost of 1,000 eight ounce bottles

$950 for ingredients

$225 for labels

$950 for bottles, caps and shrink bands

Pre Startup Period

$9,600 in equity capital was raised during the pre-startupperiod

All equipment, registration, licenses and permits were obtainedand paid for during the pre-startup period for the amountsspecified in the business plan

Other pre-startup expenditures include design fee ($400),accounting and legal ($500), insurance ($1,122)

1,000 eight ounce bottles produced and ready for sale

First Twelve Months of Operations

200 eight ounce bottles are sold each month at wholesale prices(i.e., assume no retail or 16 ounce bottle sales during the firstyear)

Aggregate monthly salaries of $1,000 for two employees

Monthly employer pay roll taxes = $75 per $1000 of employeesalaries

Kitchen rental of $225 in the first month and $125thereafter

Marketing costs of $200 each month except that marketing costsin May were $450 (to account for the NYC craft fair entry fee)

New batches are made in increments of 1,000 bottles

When producing additional bottles, the cost for ingredientsneeds to be incurred two months before the bottle is ready for sale(to allow the batch to mature) and the cost of the labels andbottles, etc. needs to be incurred in the month before the bottleis ready for sale.

Supplies and telephone are each $100 per month

Travel in May is $100

No loans were obtained