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Flavor Up, LLCBriana Schultz2014Table of Contents TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc378623631 \h 4Company Description PAGEREF _Toc378623632 \h 5Mission Statement PAGEREF _Toc378623633 \h 5Form of Business PAGEREF _Toc378623634 \h 5Description of the Product PAGEREF _Toc378623635 \h 5Patents and Trademarks PAGEREF _Toc378623636 \h 7Location PAGEREF _Toc378623637 \h 7Industry Analysis and Trends PAGEREF _Toc378623638 \h 7Plastic Industry PAGEREF _Toc378623639 \h 7Bottled Water vs. Reusable Water Bottles PAGEREF _Toc378623640 \h 8Powered Drink Mix PAGEREF _Toc378623641 \h 9Seasonal Trends PAGEREF _Toc378623642 \h 10Target Market PAGEREF _Toc378623643 \h 10Demographics PAGEREF _Toc378623644 \h 10Geographics PAGEREF _Toc378623645 \h 12Buying Sensitivity PAGEREF _Toc378623646 \h 12The Competition PAGEREF _Toc378623647 \h 13Reusable Water Bottles PAGEREF _Toc378623648 \h 13Powdered Drink Mix PAGEREF _Toc378623649 \h 13Future Competition PAGEREF _Toc378623650 \h 14Marketing Plan PAGEREF _Toc378623651 \h 14Company's Message PAGEREF _Toc378623652 \h 14Professional Assistance PAGEREF _Toc378623653 \h 15Media/Online Advertising PAGEREF _Toc378623654 \h 16Other Forms of Advertising PAGEREF _Toc378623655 \h 17Strategic Partnerships PAGEREF _Toc378623656 \h 17Operations PAGEREF _Toc378623657 \h 17Manufacturing/Production Plan PAGEREF _Toc378623658 \h 17Management PAGEREF _Toc378623659 \h 19Key Principals PAGEREF _Toc378623660 \h 19Advisory Committee PAGEREF _Toc378623661 \h 19Development, Milestones & Exit Plan PAGEREF _Toc378623662 \h 20Long-Term Goals and Development PAGEREF _Toc378623663 \h 20Exit Plan PAGEREF _Toc378623664 \h 20Appendix PAGEREF _Toc378623665 \h 22Income Statement PAGEREF _Toc378623666 \h 22Cash Flow PAGEREF _Toc378623667 \h 23Balance Sheets PAGEREF _Toc378623668 \h 24Key Ratios PAGEREF _Toc378623669 \h 27Bibliography PAGEREF _Toc378623670 \h 30Executive SummaryFlavor Up, LLC has decided to create a new and improved reusable plastic water bottle called the Shaddy. Flavor Up is a limited liability corporation located in Sioux Falls, South Dakota. The purpose of Flavor Up is to provide a plastic reusable water bottle for one's desired beverage of choice while also providing storage and convenient dispense for any type of power drink mix. Since reusable water bottles are becoming more popular (Schultz, 2014), Flavor Up would like to reach out to those between the ages of 15-30, with a special focus on high school and college athletes. Flavor Up chose to focus on this age range because those in generation X and Y tend to be more active than those in the baby boomers or traditional generation. Flavor Up also chose to focus on high school and college athletes because they tend to take their physical health more seriously than those who do not exercise regularly.Marketing for the Shaddy mainly includes media/online advertising, with the help of marketing professionals for the first four months in 2014. Start-up funds for Flavor Up will come from $5,000 dollars from me, $35,000 dollars cash from my dad and $50,000 dollars from an angel investor for marketing. The Shaddy will be manufactured and produced by Falcon Plastics and then be stored in Flavor Up's warehouse until it is distributed to retail stores around the country. Flavor Up plans to create a contract with Wal-Mart, Target, Scheels, and Dicks Sporting Goods to sell the Shaddy. Flavor Up's long term goals are to make a profit of $100,000 and to sell their company around 10 years after it begins. Company DescriptionMission StatementThe purpose of Flavor Up is to provide a plastic reusable water bottle called the Shaddy for one's desired beverage of choice while also providing storage and convenient dispensing for any type of power drink mix. Form of BusinessFlavor Up is a limited liability corporation because a limited liability corporation will provide its owners with corporation level liability protection while providing the federal income tax benefits of a partnership. This way no members of Flavor Up will be held personally liable for the debts of the business (Ale, 1992). Management can be run by elected members, but those members have no liability beyond the contributions they have agreed upon. Flavor up will become a limited liability corporation by filing articles of organization with the secretary of state of South Dakota or an official of equivalent power (Cohen, 1993).Description of the ProductThe Shaddy is a reusable water bottle created by Falcon Plastics located in Brookings, South Dakota. The total weight of the Shaddy will be 9.0 ounces and is 100% BPA free. This 24-ounce, copolyester water bottle comes with a screw-on removable lid that will be universal for all current and future Flavor Up water bottles. In order to be able to drink from the Shaddy, one would have to lift up the small, plastic cap that is covering the mouth piece (see drawing on page 28 and 29). This small cap can flip back as far as 180 degrees and remains attached to the water bottle by a small, plastic hinge. This leaves the mouth piece open for water to flow out of the water bottle and can snap on and off whenever needed.The Shaddy provides two small compartments on the top of the lid to store drink powder mixes. One compartment is located on the left side of the plastic cap while the other is located on the right side. These compartments are half an inch deep and hold enough powder for a 24 ounce water bottle. Each compartment has a plastic cover that snaps on and is connected by a small plastic hinge so that the cover will not get lost. The purpose of these plastic covers is to keep the drink powder mix inside the compartment when one is on the go. In addition there is a small plastic lever located on the side of the lid. The purpose of the lever is to dispense the drink powder mix into the water bottle when desired. The consumer simply slides the lever, which slides the bottom floor of the compartment, releasing the drink powder mix into the water bottle. The Shaddy is dishwasher safe and comes in a variety of vibrant colors (pink, blue, purple, black, clear, yellow, and red). It will have a transparent, vibrant look so consumers can see what beverage is in their Shaddy. The Shaddy will have the dimensions that will make it eligible to fit in most cup holders. Patents and TrademarksFlavor Up is in the process of applying for a trademark through The United States Patent and Trademark Office. The cost for applying for a trademark electronically is $325 dollars. Flavor Up is also in the process of applying for a patent for the lever on the Shaddy. A basic filling fee electronically costs $280 dollars through The United States Patent and Trademark Office (United States Patent and Trademark Office, 2014).LocationFlavor Up recently leased a warehouse on the southwestern side of Sioux Falls, South Dakota. It was decided that Flavor Up would sign a 12 month lease payments occurring monthly. The warehouse is approximately 10,000 sq. ft and costs approximately $3 dollars per sq. ft. Inside the warehouse there would be a small area for an office space for management and filing to take place. However, the rest of the room in the warehouse would be used to store the Shaddy after it is created by Falcon Plastics. Industry Analysis and TrendsPlastic IndustryThe plastic industry has both increased and decreased between 2004 and 2011. In 2004, the gross output of the plastic industry was approximately 180.9 billion dollars. Gross output continued to increase by 10-15 billion dollars every year until 2008. In 2008, gross output for plastic products declined due to the stock market crash by approximately eight billion dollars. In 2009, gross output decreased by an even larger margin of 36 billion dollars. Once the economy began to rebuild, gross output increased to 184.6 billion dollars in 2010 and to 197.8 billion dollars in 2011. If the economy stays stable, it is projected that the gross output for plastic products will continue to increase by 10-15 billion dollars per year (BEA, 2013). Bottled Water vs. Reusable Water BottlesSince 2000, sales of bottled water have increased by 60%. However, the competition of tap water has been returning since 2008. Tap water costs 1/10,000 the price of bottled water and is much likely to contain impurities than bottled water. Even though this hasn't been able stop the growth of bottled water, the environmental footprint of bottled water and the attractions of tap water have caused the market to reverse (Ritson, 2007). 66% of people use reusable plastic water bottles versus disposable plastic water bottles or any other type of reusable water bottle (Schultz, 2014). So even though the plastic industry is still increasing, people are investing their money into something that will save them money in the long run. 32% of disposable water bottles disclose nothing about the treatment or purity of their water. Reusable plastic water bottle have a less chance of containing harmful substances such as BPA and other chemicals that can leach into your drinks. According to the survey mentioned above, if people were to purchase a new water bottle, 67% of people would purchase a reusable plastic water bottle and only 11% would purchase disposable plastic water bottles. Projected use of reusable water bottles is expected to increase as people become more aware of the environmental factors and cost effectiveness. Powered Drink Mix The powered drink mix industry has increased over the past 7 years due to the convenience and price margin. The powdered drink market had a respectable 7% growth between 2006 and 2007 and continued to increase in 2008. In 2008, the powdered drink mix industry had near $1 billion dollars in yearly sales and has increased since then (Beverage Industry Source, 2008). Since more single-serve options have become available versus the big containers of powdered drink mix, people are becoming more accepting of taking these convenient packets on the go. 64% of people say that they use drink powder mix more often than they did five years ago (Schultz, 2014). More brands are adapting to drink powder mix, such as Crystal Light, Hawaiian Punch, Country Time, G2, Kool-Aid and much more. Seasonal TrendsIt is possible that the Shaddy will not be consistent in sales year round. It is predicted that sales for the Shaddy would increase from May-July due to the summer months and the increase in temperature. People are more likely to drink more cold liquid beverages in the summer months to stay hydrated rather than October-April. It is also predicted that sales will stay higher during the months of August and September because sport seasons are starting for most athletes. Athletes will be looking for a water bottle that fits their needs. However, once it gets later into fall/winter, people will not be as likely to purchase water bottles due to the decrease in temperature and the awareness to keep hydrated. Target Market Part of understanding business success is determining what type of customers are needed to help the business grow. One must know who their customers are, what they want, and what they can afford. In order for the Shaddy to be successful, the target market must be definable, meaningful, sizeable, and reachable. DemographicsOne of the factors determining the target market for the Shaddy is the age range. The target age range for potential consumers of the Shaddy are those between the age of 15 and 30. Flavor Up has chosen to focus on these ages because it is projected that generation X and generation Y are more likely to use reusable water bottles versus older generations who are use to the disposable plastic water bottles. 54.5% of people who use reusable plastic water bottles were between the ages of 15-25 (Schultz, 2014). The target market for income range is a minimum of $10,000 dollars per year. Flavor Up has decided that income isn't a huge factor in determining the target market for the Shaddy. However, a potential consumer must have some source of income in order to be able to spend 5-30 dollars on a reusable plastic water bottle. A potential customer of the Shaddy needs to make enough to where they can make other necessary payments and still feel that they can afford the Shaddy. The Shaddy has the potential to appeal to both males and females. However, it has been determined that females are slightly more likely to purchase the Shaddy in males. 68% of those who own a reusable plastic water bottle were females (Schultz, 2014). This does not mean that the Shaddy will not target men, but men may just be less likely to care about having convenient storage for their drink powder mix than females. The Shaddy would like to have a special focus on athletes in the United States. High school and college athletes between the ages of 15-25 would be good potential consumers of the Shaddy because they are more likely to use drink powders for protein, Gatorade, PowerAde etc. Athletes that aspire to take on the world's most challenging endurance events can use drink powder mix to improve their performance during both training and competition. Demographic factors that play a minimal or no role with the Shaddy's success are areas such as:Marital statusFamily sizeEthnic groupLevel of educationHome ownershipGeographicsGeographically, Flavor Up will focus on selling to potential consumers in the United States. Flavor Up will not plan to sell globally until they have a secure financial status to be able to afford to sell it globally. Potential consumers of the Shaddy can live in either an urban or rural environment. However, it is possible that those living in an urban environment will have more convenient access to retail stores that will be carrying the Shaddy, but those living in rural environments will still have access when they make their trips into town.Buying Sensitivity Consumers that are looking into purchasing a product are highly sensitive to factors such as price, quality, sales/special offers, convenience of use and purchase, location, warranty, and nature of existing customers. Obviously consumers are going to want the best quality product for the lowest price, have it be convenient to them, etc. However, consumers know that they may have to pick and choose what qualities are most important to them. They may be willing to have to pay a little more for better quality or accept that they will get what they pay for. The CompetitionReusable Water BottlesThere are two different areas of competition that Flavor Up will have to face as the Shaddy enters the market. The first area is other competitors of reusable water bottles. Camelbak will be one of Flavor Up's main competitors. The straw/bite combination is a feature that really draws consumers to their product, along with the fact that it is recyclable and is 100% BPA Free. Nalgene provides a couple different styles of water bottles. Nalgene provides a reusable plastic water bottle with either a screw on lid or a lid with a button to easily open/close the hole in which one drinks out of. Nalgene water bottles are 100% BPA free as well. Brita water bottles provide a filtering system within the bottle to reduce chlorine, bad tastes, and odors. Brita water bottles are eco-friendly, recyclable, and 100% BPA free. Sigg water bottles are only available in an aluminum/stainless steel form. It is good to be aware of this competitor, but statistics have shown that people prefer reusable plastic water bottles over stainless steel/aluminum water bottles. Powdered Drink MixDrink powder mixes also serve as a source of competition toward the Shaddy, especially those that are served in the single-serving packets. Crystal Light, Nestea, Hawaiian Punch, Country Time, G2, and Kool-Aid are all slowly becoming available in the single-serving packets as well as the bigger containers. However, the main problem the Shaddy wants to fix is the inconvenience of carrying both a water bottle and a drink powder packet. Flavor Up believes that combining the two so they can be carried in one is the most ideal way to do this. Future Competition Future competition of the Shaddy would be if there was a popular brand that would create a product similar to Flavor Ups. Since these popular brands are already credible and have loyal followers, they would be more apt to buy their product versus a brand they have never tried before. Marketing PlanCompany's Message Consumers are more willing to buy benefits over features. Consumers want to know how their purchase is going to benefit their lives. Therefore, Flavor Ups marketing message must tell customers what they get and what they're going to benefit from it rather than simply what the Shaddy does. 5 things that customers will look for when considering to purchase the Shaddy are: Functions- How does the Shaddy meet their needs? Finances- How will the purchase of the Shaddy affect their overall financial situation? Freedom- How convenient is it to purchase and use the Shaddy? Feelings- How does the Shaddy make the customer feel about themselves?Future- How will the customers deal with the Shaddy and Flavor Up over time? If Flavor Up has the answers to all five of these questions, it will make them appear more credible and make their customers more comfortable with their purchase. It is important to describe the features of the Shaddy, but it is more important to tell how the Shaddy will meet their needs as a person. Potential customers of the Shaddy need to know that if they purchase the Shaddy, it will not have a dramatic effect on their financial situation (Abrams, 2010). Flavor Up does not believe this will be an issue since the Shaddy will be being sold for $15 dollars. Flavor Up might have difficulties answering the question in regards to feelings, but that is more of an intrinsic value rather than something that can be measured. Flavor Up will answer the last question by stressing how they can reuse the Shaddy for numerous years and will not have to purchase a new water bottle anytime soon unless they lose/damage their Shaddy. Professional Assistance Flavor Up has been allocated $50,000 dollars for a marketing budget for the six month of their business. However, Flavor Up does not believe they will put that much toward marketing. Flavor Up plans to hire a marketing/PR consultant from a marketing agency in Sioux Falls for approximately $3,000 dollars a month from January-April 2014. Flavor Up only wants to hire professional assistance for the first four months so they can help get the idea of the Shaddy out into the public. Flavor Up does not plan on having professional marketing assistance in future years unless needed. Media/Online AdvertisingFlavor Up has decided that the Shaddy would be advertised through media channels such as 30 second radio commercials and an online website. $1,000 dollars a month have been allocated toward radio advertisement. A typical radio commercial costs approximately $400 dollars to make. After the commercial is created, the other $600 dollars would be put toward airing the commercial. After seeing the results of radio commercial feedback, it would be reevaluated to see if Flavor Up should increase or decrease this budget for the future.Flavor Up would like to develop their own website and also pay for maintenance and updates. It has been determined that the cost of developing a website will be approximately $400 a month and maintenance will be approximately $200 dollars a month. The Flavor Up website will contain a comment/feedback box so people can express what they like/dislike about the Shaddy. Good comments would make Flavor Up more credible and negative comments would be addressed with care and concern. There would also be a detailed description of how the Shaddy is made, how it will benefit its users, and awesome features the Shaddy has to offer. The website would also provide a step-by-step tutorial video on how to use the Shaddy since there is not a product that has the new lever that the Shaddy has. Social media would be used to express Flavor Up's new product because it is a free resource that can assist with the overall success of the Shaddy. Flavor Up will create both a Facebook page and a Twitter Account. Management and other company members would be asked to invite their Facebook friends to like the page and encourage their followers to follow Flavor Up on Twitter as well. The Flavor Up Facebook page would have up to date pictures and information about the Shaddy. It would give a brief description of the Shaddy, where you can purchase it, and for how much. Flavor Up would do the same with their Twitter account, but Facebook would be likely to be more interactive than Twitter. However, both sources of social media would reach generation X and generation Y, which are more where Flavor Up's target markets lie. Other Forms of Advertising It has been decided that Flavor Up would not focus on brochures, flyers, signs, billboards as forms of advertisement for the Shaddy because we do not feel it is an effective way of having the company's message stick in potential consumer's minds. Strategic PartnershipsFlavor Up would focus on distribution agreements as a source of strategic partnerships. Flavor Up would create an agreement with Wal-Mart, Target, Scheels, and Dicks Sporting Goods. These four retail stores would carry the Shaddy and distribute it to their consumers. This would widen the market for Flavor Up because then the Shaddy can be sold in cities other than Sioux Falls.OperationsManufacturing/Production PlanFlavor Up will be using their outside resources when creating the Shaddy. Since Flavor Up plans on only leasing a warehouse in Sioux Falls, SD, they will create a contract with Falcon Plastics to mold and create the Shaddy. The cost to create one Shaddy will be approximately $3 dollars. Flavor Up would like Falcon Plastics to produce 7,000 units in the first year. The amount of Shaddy's that would be produced in the next year would depend on the profit/losses of the first year of sales. The Shaddy's would then be stored in the warehouse in Sioux Falls before retail stores such as Wal-Mart, Target, Scheels and Dick's Sporting Goods buy them from Flavor Up. The Shaddy would be sold in retail stores for approximately $15 dollars per water bottle. Flavor Up would like to start selling the Shaddy to retail stores in January 2014. Inventory management and organization of the Shaddy would be kept track of by manager Briana Schultz at Flavor Up's warehouse in Sioux Falls. Supply and distribution would mainly be done by retail stores that Flavor Up agrees to sell the Shaddy to. However, Flavor Up would be responsible for making sure that the retail stores have an adequate amount of Shaddy's on hand at all times. Retail stores that Flavor Up agrees with would be responsible for any order fulfillment and customer service issues that consumers may have with the Shaddy, but will report the feedback to Flavor Up. Flavor Up chose to mainly outsource because it worked better for their financial situation. Outsourcing helps Flavor Up by not needing any full time employees and allows the Shaddy to be created at a fast rate. It also makes it easier to keep inventory and know that the Shaddy's are being made properly. ManagementKey PrincipalsSince Flavor Up is relying mainly on outsourcing for manufacturing/distributing the Shaddy, the management aspect of Flavor Up will mainly focus on an advisory committee. The Flavor Up Company was founded by Briana Schultz, a business communications major that will graduate from Augustana College in May 2015. Briana has gained enough skills from her Augustana education that she will be able to handle inventory management, order fulfillment management, and financial control of Flavor Up. Advisory Committee Flavor Up would create an advisory committee to oversee and answer any questions Briana may have. The advisory committee would consist of Paul Lewis, Laura Hybertson, and Val Sutton. Paul Lewis is a lawyer at Bruning and Lewis Law in Flandreau, SD. Paul has been a close family friend if Briana's for many years and is currently her father's lawyer. Paul graduated with his Masters in Business Administration from University of South Dakota and worked closely with now-dean of the Law School, Thomas Geu. Paul joined Ellingson Law Office in 2008, where he actively engaged in civil practice and worked as deputy states attorney (Bruning & Lewis, 2014). Paul has valuable legal experience if Briana were to have any questions. Laura Hybertson is an accounting professor at Augustana College. She received her M.P.A from the University of South Dakota in 2004. Laura has served as a Senior Tax Associate at Henry Scholten and Company and as a Board of Trustees Treasurer at Tuffy's Tots Daycare and Learning Center. Laura is also CPA certified and would qualify as an excellent candidate to serve on the advisory committee. Val Sutton is the office manager at Kuhle-Sutton Agency. Val received her Master's in business management from Dakota State University in 1975. Val has been the manager at Kuhle-Sutton Agency for a majority of her adult life. Val handles any financial issues, inventory management, real estate management, and makes sure that auctions run smoothly. Val has valuable managerial experience that would greatly contribute to Flavor Up's company if needed. Development, Milestones & Exit PlanLong-Term Goals and DevelopmentOne long-term goal of Flavor Up is to make a profit of around $100,000 dollars. It would be ideal if this were to be accomplished within the first seven years. Flavor Up would also like to increase the amount of retail stores that carry the Shaddy if the Shaddy is successful within the first two years. Flavor Up would also like to develop their company by extending their products to other sporting goods/equipment and athletic wear around year five. Exit PlanThe exit plan for Flavor Up would be eventually selling the company. It would be ideal that Flavor Up would be sold to another individual or an existing company around ten years after it starts. The advantage of this would be that I would receive cash and/or stock for my company and that management could have a continuing role. However, I don't think that I would want to continue managing the company once I was in my middle ages and would want to sell the company completely. The disadvantage of this would be I must find a willing buyer/company and I would have to be willing to let Flavor Up be under new management besides myself.FinancialsStart up funds for Flavor Up came from my own cash of $5,000 dollars and my father's cash of $35,000 dollars. This cash will go toward leasing the warehouse space and paying Falcon Plastics for their first year of service. That was enough to get Flavor Up going until they began making a profit, which they did the first year. However, it is possible that Flavor Up would have to take out a small loan in the future to keep the business going. Flavor Up plans to breakeven around five years after starting my business, but economic markets will play a role whether Flavor Up accomplish this goal or not. AppendixIncome Statement Income Statements2014201520162017?TOTALTOTALTOTALTOTAL?????INCOME????Gross Sales$110,283$99,171$96,073$121,844(Commissions)$0$0$0$0(Returns and allowances)$3,308$2,975$2,882$3,655Net Sales$106,975$96,196$93,191$118,188(Cost of Goods)$27,571$24,793$24,018$30,461GROSS PROFIT$79,404$71,403$69,172$87,727?????EXPENSES - General and Administrative????Salaries and wages$0$0$0$0Employee benefits$0$0$0$0Payroll taxes$0$0$0$0Professional services$5,200$200$200$200Marketing and advertising$28,800$16,800$16,800$16,800Rent$30,000$30,000$30,000$30,000Equipment rental$0$0$0$0Maintenance$0$0$0$0Depreciation$0$0$0$0Insurance$1,800$1,800$1,800$1,800Telephone service$0$0$0$0Utilities$1,200$1,200$1,200$1,200Office supplies$650$600$600$600Postage and shipping$1,200$1,200$1,200$1,200Travel$0$0$0$0Entertainment$0$0$0$0Interest on loans$0$0$0$0Other (change title here)$0$0$0$0Other (change title here)$0$0$0$0TOTAL EXPENSES$68,850$51,800$51,800$51,800Net income before taxes$10,554$19,603$17,372$35,927Provision for taxes on income$844$1,568$1,390$2,874NET PROFIT$9,709$18,035$15,983$33,053Cash FlowCash Flow2014201521062017?TOTALTOTALTOTALTOTAL?????CASH RECEIPTS????Income from Sales????Cash Sales$88,226$79,337$76,858$97,475Collections$20,496$19,990$18,873$23,900Total Cash from Sales$108,722$99,327$95,731$121,375Income from Financing????Interest Income$210$321$154$356Loan Proceeds$0$0$0$0Equity Capital Investments$15,000$0$15,000$0Total Cash from Financing$15,210$321$15,154$356Other Cash Receipts$0$0$0$0TOTAL CASH RECEIPTS$123,933$99,648$110,885$121,731?????CASH DISBURSEMENTS????Inventory$39,571$37,386$36,018$42,461Operating Expenses$68,850$51,800$51,800$51,800Commissions/Returns & Allowances$3,308$2,975$2,882$3,655Capital Purchases$0$0$32,480$0Loan Payments$0$0$0$0Income Tax Payments$0$0$0$0Investor Dividend Payments$0$0$0$0Owner's Draw$0$0$0$0TOTAL CASH DISBURSEMENTS$111,729$92,161$123,180$97,916?????NET CASH FLOW$12,203$7,487-$12,296$23,814?????Opening Cash Balance????Cash Receipts????Cash Disbursements????ENDING CASH BALANCE$27,203$34,691$22,395$46,209Balance SheetsBalance Sheet??????Flavor Up2015????ASSETS?Current Assets?Cash$34,691?Accounts Receivable$1,405?Inventory$24,593?Other Current Assets$0?Total Current Assets$60,688???Fixed Assets?Land$0?Facilities$30,000?Equipment$0?Computers & Telecommunications$0?(Less Accumulated Depreciation)$0?Total Fixed Assets$30,000?Other Assets$0?TOTAL ASSETS$90,688???LIABILITIES?Current Liabilities?Short-Term Notes Payable$0?Income Taxes Due$2,413?Other Current Liabilities$0?Total Current Liabilities$2,413???Long-Term Liabilities?Long-Term Notes Payable$0?Other Long-Term Liabilities$0?Total Long-Term Liabilities$0???NET WORTH?Paid-In Capital$30,000?Retained Earnings$58,276?Total Net Worth$88,276?TOTAL LIABILITIES AND NET WORTH$90,688?Balance Sheet??????Flavor Up2016????ASSETS?Current Assets?Cash$22,395?Accounts Receivable$1,747?Inventory$36,593?Other Current Assets$0?Total Current Assets$60,734???Fixed Assets?Land$0?Facilities$30,000?Equipment$0?Computers & Telecommunications$2,480?(Less Accumulated Depreciation)$0?Total Fixed Assets$32,480?Other Assets$0?TOTAL ASSETS$93,214???LIABILITIES?Current Liabilities?Short-Term Notes Payable$0?Income Taxes Due$3,802?Other Current Liabilities$0?Total Current Liabilities$3,802???Long-Term Liabilities?Long-Term Notes Payable$0?Other Long-Term Liabilities$0?Total Long-Term Liabilities$0???NET WORTH?Paid-In Capital$45,000?Retained Earnings$44,412?Total Net Worth$89,412?TOTAL LIABILITIES AND NET WORTH$93,214??????Balance Sheet??????Flavor Up2017????ASSETS?Current Assets?Cash$46,209?Accounts Receivable$2,215?Inventory$48,593?Other Current Assets$0?Total Current Assets$97,017???Fixed Assets?Land$0?Facilities$30,000?Equipment$0?Computers & Telecommunications$2,480?(Less Accumulated Depreciation)$0?Total Fixed Assets$32,480?Other Assets$0?TOTAL ASSETS$129,497???LIABILITIES?Current Liabilities?Short-Term Notes Payable$0?Income Taxes Due$6,677?Other Current Liabilities$0?Total Current Liabilities?$6,677???Long-Term Liabilities?Long-Term Notes Payable$0?Other Long-Term Liabilities$0?Total Long-Term Liabilities$0???NET WORTH?Paid-In Capital$45,000?Retained Earnings$77,821?Total Net Worth$122,821?TOTAL LIABILITIES AND NET WORTH$129,497?Key RatiosKey Ratios?????????????????Year 1 (2012-2013)WorkingCapitalCurrent RatioQuick RatioCashTurnoverDebt toEquityReturn onInvestmentReturn onSalesReturn onAssets1st Quarter$21,995N.A.N.A.0.930.00-27%-39%-27%2nd Quarter$26,86556.8444.371.130.0115%18%15%3rd Quarter$37,01128.2521.620.920.0325%32%24%4th Quarter$39,92048.2834.070.560.025%10%5%?????????Year 2 (2013-2014)$58,27625.1514.961.650.0322%20%22%?????????Year 3 (2014-2015)$56,93215.976.351.640.0419%19%19%?????????Year 4 (2015-2016)$90,34114.537.251.310.0529%30%28%?????????Year 5 (2016-2017)$145,97713.778.471.030.0633%40%31%BibliographyAbrams, R. M. (2010).?Successful business plan: Secrets & strategies: America's best-selling business plan guide!?Palto Alto, CA: Planning Shop.Ale, J. C. (1992). An introduction to limited liability companies.?Practical Lawyer,?38(8), 35. Retrieved from & Lewis Profiles. (n.d.).?Bruning & Lewis Profiles. Retrieved January 20, 2014, from , J. B. (1993). Limited liability companies: A new choice of entity for tax planners.?The Practical Tax Lawyer,?7(2), 39. Retrieved from : Occupational Outlook Handbook : U.S. Bureau of Labor Statistics. (2014, January 8).?U.S. Bureau of Labor Statistics. Retrieved January 20, 2014, from Power. (2008, October 15).?. Retrieved January 15, 2014, from , M. (2007, Oct 24). Bottled water beware: Tap is back.?Marketing,?, 21. Retrieved from, B. L. (2014, January 15). [Reusable Plastic Water Bottle Survey]. Unpublished raw data.U.S. Economic Accounts. (n.d.).?U.S. Bureau of Economic Analysis (BEA). Retrieved January 20, 2014, from United States of America. United States Department of Labor. Bureau of LaborStatistics.?Analyze GDP by Industry. BLS, n.d. Web. 8 Jan. 2014.United States Patent and Trademark Office. (2014, January 13).?United States Patent and Trademark Office. Retrieved January 17, 2014, from ................
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