1Explanation of “24 month production and cash flow projections” spreadsheet

Column Definition Formula

Month Month #1 is June or July 2008, depending on timing of None
investment funds distribution.
Production Number of units (cases of 12) to be produced and None
distributed in that month. This is estimated with
consideration to seasonal peaks and valleys in Salsa sales
and plan-o-gram schedules.
Cost Cost of production for the month @ $19 per unit. Production x $19
Value Wholesale value of the month’s production. Production x $23.09
Sold Number of units for which payment has been received Production x 90%
during the month.
Receipts Total cash receipts for the month. Sales x $23.09
Inventory Units added to the cumulative inventory for that month for Sales x 10%
which we have not received payment. In Month 24 the
inventory will be 37,650 units.
Receipts/inventory Wholesale value of units added to the cumulative Inventory x $23.09
inventory.
Receipts/Cost Net Income from sales. Receipts - Cost
Capital Infusion Capital needed for the month to meet production goals. Cost of production - Previous months receipts