Business Fancy Feet

This winter you are going to sell homemade socks at your

community Market. These are not just any socks, but real
wool socks that are very durable and ece!tionally warm.
To make a !air o" socks takes one ball o" yarn, which you !urchase
"rom a #cottish distributor "or $%&.'( a ball. To shi! the ball "rom
#cotland it costs you $&.'( !er ball.
)hen you get the yarn, you dye it, which costs $(.** !er !air. +lso,
you stitch your logo shown here , into the socks !rior to
market. This stitching costs %.%' !er !air.
+t this !oint, your socks are ready "or the market-
To rent a booth at the market costs $%' !er day and !rovides you with
%( hours o" selling time ./ +M 01M2. The market o!erates on
#aturdays only.
3ou borrow $&4(( "rom +56+ and $%'(( "rom 7ncle 8avid .9ove
Money2 in 6ct. to get your business started, and you must !ay them
both back by the end o" Feb. .you will make your "irst !ayment to them
in :ov.2 9uckily "or you neither +56+ or 8avid is charging you interest-
Make the "ollowing assum!tions;
3ou sell each !air o" socks "or $&'.((
3ou e!ect to sell %'( !airs o" socks in :ov., &<' in 8ec., &((
in =an, and %<' in Feb.
3ou buy a home loom so you can can weave the socks >uickly
"or $%0((.((.
3ou need to register your business !rior to your "irst month o"
o!erations "or $%&(.
There are eactly "our #aturdays in each month.
3ou will work ? #aturdays yoursel" at the market but you want
one weekend o"" so you will have your cousin @achael work
once .%2 time a month. Aer salary is $%(.(( an hour.
3ou order the su!!lies needed "or each month one month in
advance .you order the su!!lies needed "or 8ec. in :ov., etc.2
3ou budget $&( every month "or knittingBo""ice su!!lies
.needles, stationary, etc.2
3ou will have to !ay back both +56+ and 7ncle 8avid in 0
e>ual !ayments over 0 months "rom :ovember , February.
This is a seasonal business that only sells at the "armerCs
market during the 0 coldest months "rom :ov. , Feb.
What are the Start-Up Costs and Sources of Funding for this venture?
(i.e. how much money do we need and raise in the month of October before
we actually open our booth at the market in November?)
#tart,7! 5osts
5ategory 5ost
9oom %0((.((
@egister Business %&(.((
Dnitting B o""ice su!!lies &(.((
3arn ."or :ovember2 %4<'.((
8ye ."or :ovember2 %04.'(
#titch 9ogo %<&.'(
#hi!!ing 5osts ?<'.((
T6T+9 0%%%.((
#ources o" Funding;
#ource +mount .$2
+56+ Enterest "ree 9oan .govt.2 &4((.((
7ncle 8avid 9ove Money %'((.((
T6T+9 0?((.((
Formulate an Income Statement for Fancy Feet
(Covers total revenues and expenses for the 5 months from Oct !eb)
@evenue
5ategory Totals
#ales o" #ocks &((((.((
+56+ 9oan &4((.((
7ncle 8avid 9ove Money %'((.((
!"!#$ &0?((.((
F!enses
5ategory Totals
9oom %0((.((
@egistration o" Business %&(.((
@e!ayment to +56+ &4((.((
@e!ayment to 7ncle 8avid %'((.((
Balls o" 3arn %((((.((
#hi!!ing 5osts "or 3arn &(((.((
8ye <*&.((
#titching o" 9ogo *&(.((
Dnitting B 6""ice #u!!lies %((.((
Booth @ental &0(.((
@achaelCs #alary 0((.((
!"!#$ &(&<&.((
!otal %evenue & !otal '(penses
) *+,-.. / & ) *.,*0* / 1 2 +,.*3..
Cash Flow Forecast for Fancy Feet 4ame5
"ct 4ov 6ec 7an Fe8 !"!#$
C#S9 %'CI':!S );/
#ock #ales ?<'(.(( /4<'.(( '(((.(( 0?<'.(( &((((.((
+56+ 9oan &4((.(( &4((.((
7ncle 8avid 9ove Money %'((.(( %'((.((
!"!#$ C#S9 I4F$"W );/ 0?((.(( ?<'(.(( /4<'.(( '(((.(( 0?<'.(( &0?((.((
C#S9 6IS<U%S'='4! )-/
9oom %0((.(( %0((.((
@egistration o" Business %&(.(( %&(.((
Balls o" yarn %4<'.(( ?0?<.'( &'((.(( &%4<.'( %((((.((
8ye %04.'( &<&.&' %*4.(( %<?.&' <*&.((
#hi!!ing 5osts ?<'.(( /4<.'( '((.(( 0?<.'( &(((.((
#titching 5osts %<&.' ?%/.&' &?(.(( &(%.&' *&(.((
6""ice B Dnitting #u!!lies &(.(( &(.(( &(.(( &(.(( &(.(( %((.((
Booth @ental /(.(( /(.(( /(.(( /(.(( &0(.((
@achaelCs #alary %((.(( %((.(( %((.(( %((.(( 0((.((
+56+ re!ayments <((.(( <((.(( <((.(( <((.(( &4((.((
7ncle 8avid re!ayments ?<'.(( ?<'.(( ?<'.(( ?<'.(( %'((.((
!"!#$ C#S9 "U!F$"W )-/ 0%%%.(( '*/4.'( 0/4?.(( 0&'0.'( %&''.(( &(&<&.((
SU%:$US );/ %4*.(( &%*&.(( <0'.'( ?%&(.(( 0(&4.((
6'FICI! )-/ &&%4.'(
CU=U$#!I>' ):rofit or $oss/ %4*.(( ,&(&*.'( %/&.'( *(4.(( 0(&4.((