Finance Competition

Company Overview

Well Grounded is a coffee company and we package 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. Green cups are a sustainable alternative to single use

coffee pods. Our coffee flavors are named after species of birds, 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.

 Financial Highlights
Our current financial situation is not great as our expenses are more than our revenue from our sales which shows a negative net

income. 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 to a total of

$35,285.30, which is a tremendous increase in sales. Our total expenses for December were $45,256.05 and 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. 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. 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
Sales

October: $0 October: $0
November: $8,499.18 November: $8,499.18
December: $16,786.12 December: $16,786.12
January: $230,544.04
February: $253,598.44
March: $278,958.29
April: $306,854.12
Break Even Analysis
Balance Sheet
Income Statement
Projected Income Statement
Cash Budget
Projected Cash Budget