Company Overview and Financial Highlights

Well Grounded is a coffee company, packaging our wide range of Fair Trade and Bird

Friendly certified products in a sustainable manner. Currently, we offer our coffee in both whole

beans and ground by the bag, however as our company continues to develop, we seek to add eco-

friendly steeped coffee bags as well as green cups, the sustainable alternative to single use coffee

pods to our product line. Our coffee flavors are named after species of birds which our use of

shade grown cultivation helps save, such as the American Redstart and Chestnut Sided Warbler.

To promote eco-friendly practices in a plethora of the daily activities of our customers, we offer

baskets filled with our coffee products in an array of flavors and sizes, as well as sustainable

products, such as a composting coffee guidebook, and reusable silicone ice molds. Furthermore,

we offer a line of reusable supplemental products to enjoy our coffee with, ranging from metal

straws to reusable canvas shopping bags, continuing our efforts in sustainable integration. The

coffee industry is a large contributor to the current climate crisis, highlighting society's single use

and disposable mentality, through excess plastic packaging and unethical practices of cultivation.

At Well Grounded, our mission titled “Beyond the Cup“is to combat this issue directly, and

concurrently provide as many people as possible with the means for a high quality cup of coffee

every day.

Our current financial situation is not great as our expenses are more than our revenue

from our sales which shows that we are losing money as a business. However we have been

improving and getting close to breaking even. For example November our total sales were

$8,487.91 while our expenses were $50,639.76. This is a Net Income of a loss of 47,012.32.

However in December our sales improved while our expenses decreased. In December our total

sales were $35,285.30, which is a tremendous increase in sales we had in December compared to
the amount of sales we had in November. Our total expenses for December were $33,828.27.

This led to a Net Loss of 9,970.75. This is still not good as we are in the negatives but we are

improving as the days go on. This can also be shown by our ratios. For example the gross profit

ratio indicates the percent gross profit of sales, and a lower percentage most likely indicates a

cost of merchandise sold. It is calculated by taking our Gross Profit and dividing it by our sales.

In November we had a gross profit margin of 0.46, while in December we had a gross profit

margin of 0.94. This shows that we have had a lower cost of merchandise sold in December than

in November. Another ratio that shows this is the net profit margin. This ratio indicates the

percent net profit is of sales. A low percentage most likely indicates high costs. It is calculated

by taking our net profit and dividing it by our sales. Our net profit margin for November was -5.5

while in December it was -0.35. This shows that we were much more efficient in our spending

and we made a lot more sales in December than in November. As a result of this increase in sales

we have been able to pay off all our liabilities. This is a huge relief to Well Grounded because

we do not have to worry about paying back money we owe and can't focus on spending money

on our inventory and other routine expenses.

Graph of Sales
Break- Even - Analysis
Balance Sheet

Income Statement(Actuals)
Income Statement(Projected)
Sales Projections
Cash Budget

Projected Cash Budget(Month Ended April 30, 2021)

Operating Activities

Net Income $59,218.78

Adjustments to reconcile Net Income to Net Cash provided by operations:

Accumulated Depreciation-Computer $353.64

Equipment

Accumulated Depreciation-Furniture $183.24

FWT Payable $2,361.12

Medicare Tax Payable $723.84

SS Tax Payable $3,095.04

SWT Payable $1,266.92

Sales Tax Payable $22,029.40

Total Adjustments to reconcile Net Income to Net Cash provided by operations: $30,013.20

Net Cash Provided by operating activities: $89,231.98

Net Cash increase for period $89,231.98

Cash at end of period $252,758