Mugnum Opus Business Plan

8/6/2019 Mugnum Opus Business Plan

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Mugnum Opus Business Plan | 1




Mugnum Opus Business Plan Table of Contents:I. The Business

Executive Summary ……………………………………………………………………………………………pa3Name of BusinessDescription of Products

Legal Form of OwnershipMarketing …………………………………………………………………………………………………………3

Competitive NicheMarket SegmentationMarketing StrategiesPricing Strategies

Human Resources………………………………………………………………………………………………page5Flow Chart of OrganizationPosition ResponsibilitiesSalaries

Operations…………………………………………………………………………………………………………pa6Description of OperationsEquipment NeededDistributors Information

II. FinancialsType of Firm………………………………………………………………………………………………………pa7

Firm Type and JustificationFinancial Reporting

Loan Information……………………………………………………………………………………………….page9Projected Initial Start-Up Costs and Reoccurring CostsJustification for Loan Amount

Amortization TableDepreciation…………………………………………………………………………………………………….page

Depreciation of Fixed AssetsMonthly Costs………………………………………………………………………………………………….page 1

Total Fixed CostsTotal Variable Costs

Breakeven Analysis………………………………………………………………………………………….page 12 Breakeven in UnitsBreakeven in DollarsTarget Profits and Units per Month

Financial Planning ……………………………………………………………………………………..…….page Sales BudgetCash Receipts BudgetFirst Month Journal EntriesFirst Month Ledger Accounts

Financial Statements……………………………………………………………………………………….page 19Income StatementStatement of Retained EarningsBalance Sheet




I. The Business

Name of the Business:

Mugnum Opus is a premium mug and memorabilia making facility specializing in customizedmugs and other memorabilia.

Description of Products:

Mugnum Opus will create mugs specifically for customers giving them the benefit of a one-of-a-kind product. Customers can order a specific type of mug, such as a coffee mug or a tea cup,and personalize it by having it engraved or having a logo/picture printed on it. There will be asmall charge for the printing of both logos and pictures. The other products that will be soldinclude teapots, saucers, sugar dishes, creamer cups, and tea trays. The customers can choosefrom five different colors including the option to tie-dye their product.

Legal Form of Ownership:

While this business forming will be owned by one person, a sole proprietorship will not be thewisest decision simply because of the liability associated with it. For that reason, a limited

liability corporation was chosen for the legal form of ownership. A limited liability corporationwill allow the owner, as well as other possible future investors, can invest their assets in thecompany without being personally liable.

Competitive Niche:

Mugnum Opus has a competitive niche in Bradley County because there aren’t any companiesin the Bradley County area that specifically make mugs and memorabilia. Additionally, thiscompany will excel in its niche because the mugs and memorabilia can be designed anyway thecustomers want it —they don’t have to have a standard looking mug, they can request it haveunique shapes. This company also allows customers to order multiple items together, such as atea set, with all of the items matching.




Market Segmentation:

Since the majority of this business will be run online and locally, the target audience will beseparated into three different groups:

Colleges in Cleveland, Tenn. There are two colleges in Cleveland, Tenn.: Cleveland StateCommunity College and Lee University. Within this category, there are a number of

subcategories. Mugnum Opus will target Greek clubs, faculty, and students who areseeking to get gifts for their families. Business Organizations. Mugnum Opus will target business organizations for two

purposes: to encourage them to buy them as office gifts and to buy them as gifts forclients. They will also have the option to buy these mugs and memorabilia in bulk forconvenience.

Individuals with Older Parents . This target audience is members in the communitylooking to give a meaningful gift to aging parents. With Life Care Centers of America anda number of other elderly care facilities in Cleveland, the location is convenient and theneed is certainly there.

Marketing Strategies:

To reach the target audiences, there will be a number of marketing strategies implemented. In

the college target audience, a large amount of social media advertising such as Facebook andTwitter will reach the students.

The faculty and groups on campuses will receive a different approach. Brochures and/or flierswill be placed in key locations throughout the campus so as to receive the maximum amount of exposure. Additionally, networking will be done with the heads of the clubs and the heads of departments.

40%

40%

20%

Market Analysis

Colleges

Business Organizations

Individuals with Older Parents




The business organizations will be reached in a way similar to the faculty and groups oncampus. Brochures will be handed out to not only provide information, but also to makenetworking connections. Small incentives such as a discount for large orders will be used if necessary.

The general community that Mugnum Opus is trying to reach is individuals middle-aged withaging parents. Advertisements in the local newspapers as well as community informationbooklets will be utilized.

Pricing Strategies:

Since there are more products than just mugs, pricing will be generalized. The prices of each of the products will be $8.00. The option to customize is a part of this price projection.

Flow Chart of Organization:

Position Responsibilities:

The administrative assistant will be the only full-time employee hired and they will beresponsible for running the shop by fulfilling office management responsibilities. These includeanswering the phones, assisting customers with ordering their purchasing, managing thewebsite, entering data into the computer, and helping with any difficulties any of the customersmight have. The administrative assistant will be responsible for receiving payroll given to them

Owner

Potter'sAssistant/Sales

Person

Potter'sAssistant/Sales

Person

AdministrativeAssistant




by the owner. Should the administrative assistant have any issues that they are not able tofulfill or that deal with other employees, they should be immediately reported to the owner.

The two part-time workers will be responsible for producing the mugs and memorabilia andtherefore should be skilled in pottery making and using a kiln. Additionally, they will help anycustomers that come in the store with questions regarding purchases. If there are other basicneeds around the store such as cleaning, these part-time workers will fulfill those duties.Should the part-time workers have any issues that they are not able to fulfill or that deal withother employees, they should be immediately reported to the administrative assistant.

All issues and oversight of the company will be looked after by the owner. If any problemsbeyond the skills of the workers arise, the owner will be responsible for fixing them or havingthem fixed. The owner will be in charge of all financials and payroll as well.

Salaries:

The full-time employee will be paid on a salary based pay, getting $1,800 a month. This totals$21,600 per year.

The part-time workers will be paid $8 an hour plus a 6% commission for every sale they make.They will not work more than 15 hours a week.

For all employees there will be a 15% federal income tax, a Social Security tax of 4.2%, and a1.45% Medicare Tax deduction per month of the gross salaries and wages.

Description of Operations:

Mugnum Opus will open every weekday from 9am-5pm. Customers are welcome to peruse thestore and find ready-to-sell mugs and memorabilia on the shelves in the store. While theadministrative assistant is taking care of the store, the part-time workers will assist with anysales that customers want.

When a customer places an order, the part-time workers will go to the backroom and get the

prescribed amount of clay and work on the potter’s wheel until they have made the desiredamount of items in the desired color and design. Once that has been completed, the itemsmade will go into the kiln until the items have dried. Once they are dried they will be set apartand glazed. When they are ready and if necessary, the workers will use the equipment to applythe logos and/or pictures.




Delivery of the items can go one of two ways: the customers can pick up the items at the storedirectly or they can be shipped directly to the people. There will be a higher processing fee forthe shipping.

Equipment Needed:

To make production possible, there will be four different machines necessary. The logo andpicture machine will place the desired picture or logo on the mug through the use of computerassisted technology. The kiln will hold roughly 12 mugs at a time, therefore speeding up theproduction. The potter’s wheel will make production possible. It can hold up to 100 pounds of clay at a time, making production faster for the workers. Finally, the computer will hold all of the accounts and company information as well as serving as a monitor for the website andfinances.

The vehicle used will be used exclusively for errands or deliveries used on the job. This is for theconvenience of the full-time employee and for the customers.

Distributors Information:

Letters of intent to suppliers will be sent to the companies distributing the powder material forthe clay, the color dye, the glue, and those needed for other indirect materials. With theseletters, agreements for purchase will be made to supply monthly materials in each of theseareas.

II. Financials

Firm Type and Justification:

This is a manufacturing and merchandising firm because pottery is being made in the facilityand it is also being sold through the company.

Financial Reporting:

In order to determine if the company is profitable, four types of reports will be prepared eachyear. The income statement will specifically find the net income, which will determine if thebusiness was profitable. The statement of retained earnings will help determine what theearnings after drawings, which will give a clearer picture of the actual profits of the company.




The statement of cash flows will determine the amount of cash going through the company andshow the exact amount of money on hand. The balance sheet will serve as an extra measure todouble check that the business is balanced.




Projected Initial Start-Up Costs and Reoccurring Costs:

escription of Purchase/Cost: Asset or Expense Unit Price Per Unit Monthly Cost One Time Costs Total Costsquipment:

Logo and Picture Equipment Asset 1 2,700.00 2,700.00 2,7 Kiln Asset 1 - Computer Asset 1 2,000.00 2,000.00 2,0 Potter's Wheel Asset 1 - -

ehicle Asset 1 4,000.00 4,000.00 4,0 elving & Fixtures Asset 1 1,000.00 1,000.00 1,0 ganizational Costs Asset 1 600.00 600.00 e-Paid Rent Asset 1 550.00 550.00 ay Container Asset 1 300.00 300.00

olor Dye Container Asset 5 25.00 125.00 isc. Indirect Material Asset 1 100.00 100.00 ue Container Asset 2 25.00 50.00 lary Expense Expense 1 1,800.00 1,800.00 1,8 ages Expense (P.T. Employees) Expense 2 480.00 960.00 nt Expense Expense 1 550.00 550.00

surance Expense Expense 1 200.00 200.00 ilities Expense Expense 1 50.00 50.00 yroll Tax Expense

Social Security Taxes Expense 4.20% 115.92 Medicare Taxes Expense 1.45% 40.02

OTAL PROJECTED EXPENSES: 4,290.94 10,850.00 15,1 ESS: Owner's Investment 3,000.0

OTAL COSTS NEEDED TO BE FINANCED: 12,1

ROJECTED LOAN NEEDED: 13,0 nterest on Loan per Month $407.37

OTAL PROJECTED EXPENSES + FINANCING: 4,698.31 10,850.00 15,5

Justification for Loan Amount:

The loan amount used is for $13,000.00 because this is how much it will cost to get supplies andexpenses paid for the first month of operation. The graph above gives a more specificbreakdown of each expense, but it is known that at least $4,698 will have to be made everymonth after the first month to keep the company going.




Amortization Table:

A 12B 3C 8D 36E 0.666666667F 13,000G 0

Payment No.

Payment Amount Interest

Principal Adjustment

Carry Value orBalance

0 13,000.00$1 407.372751 86.67 $320.71 $12,679.292 407.372751 84.53 $322.84 $12,356.45

3 407.372751 82.38 $325.00 $12,031.454 407.372751 80.21 $327.16 $11,704.295 407.372751 78.03 $329.34 $11,374.956 407.372751 75.83 $331.54 $11,043.417 407.372751 73.62 $333.75 $10,709.668 407.372751 71.40 $335.98 $10,373.689 407.372751 69.16 $338.21 $10,035.47

10 407.372751 66.90 $340.47 $9,695.0011 407.372751 64.63 $342.74 $9,352.2612 407.372751 62.35 $345.02 $9,007.2313 407.372751 60.05 $347.32 $8,659.9114 407.372751 57.73 $349.64 $8,310.2715 407.372751 55.40 $351.97 $7,958.3016 407.372751 53.06 $354.32 $7,603.98

17 407.372751 50.69 $356.68 $7,247.3018 407.372751 48.32 $359.06 $6,888.2419 407.372751 45.92 $361.45 $6,526.7920 407.372751 43.51 $363.86 $6,162.9321 407.372751 41.09 $366.29 $5,796.6422 407.372751 38.64 $368.73 $5,427.9223 407.372751 36.19 $371.19 $5,056.7324 407.372751 33.71 $373.66 $4,683.0725 407.372751 31.22 $376.15 $4,306.9226 407.372751 28.71 $378.66 $3,928.2627 407.372751 26.19 $381.18 $3,547.0728 407.372751 23.65 $383.73 $3,163.3529 407.372751 21.09 $386.28 $2,777.0630 407.372751 18.51 $388.86 $2,388.2031 407.372751 15.92 $391.45 $1,996.7532 407.372751 13.31 $394.06 $1,602.6933 407.372751 10.68 $396.69 $1,206.0034 407.372751 8.04 $399.33 $806.6735 407.372751 5.38 $401.99 $404.6736 407.372751 2.70 $404.67 ($0.00)

NUMBER OF PAYMENT PERIODSMONTHLY INTEREST RATE

INITIAL AMOUNT BORROWEDFUTURE VALUE (AT END OF 3 YEARS)

NOTE IS PAID IN FULL AS OF PAYMENT NUMBER 36

ANNUAL INTEREST RATE PER YEAR

MUGNUM OPUS, LLCLOAN AMORTIZATION SCHEDULE

PAYMENTS FOR THREE YEARS BEGINNING March 2011

NUMBER OF MONTHS IN A YEARNUMBER OF YEARS TO REPAY




Depreciation of Fixed Assets:

Please note that the salvage value calculated for each of the items was 70%.

m: Cost of Asset: Useful Life: Salvage Value: Depreciation Value per Month:omputer 2,000.00 3.00 200.00 50.00 ln - - -

ogo & Picture Equipment 2,700.00 5.00 200.00 41.67 tter's Wheel - - - elving 1,000.00 7.00 - 11.90

ehicle 4,000.00 4.00 500.00 72.92

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8m:

omputer 2,000.00 1,400.00 800.00 200.00 - - - ln - - - - - - -

ogo & Picture Equipment 2,700.00 2,200.00 1,700.00 1,200.00 700.00 200.00 - tter's Wheel - - - - - - - elving 1,000.00 857.14 714.29 571.43 428.57 285.71 142.86

ehicle 4,000.00 3,125.00 2,250.00 1,375.00 500.00 - -

Mugnum Opus, LLCDepreciation for Fixed Assets

Total Fixed Costs:

Item: Units: Price per Unit: Total Price per Month:Salary Expense 1 1,800.00 1,800.00 Wages Expense 2 480.00 960.00

Rent Expense 1 550.00 550.00 Insurance Expense 1 200.00 200.00 Utilities Expense 1 50.00 50.00 Color Dye Container 5 25.00 125.00 Misc. Indirect Material 1 100.00 100.00 Glue Container 2 25.00 50.00

TOTAL FIXED COSTS: 3,835.00

Mugnum Opus, LLCTotal Monthly Fixed Costs




Total Variable Costs:

Item: Cost per Mug:Clay Container 1.50 Commission per Mug 0.48 Design Cost per Mug 1.10 Wages per Mug (1/4 hour) per Employee 2.00

TOTAL VARIABLE COSTS PER MUG: 5.08

Mugnum Opus, LLCTotal Variable Costs

Breakeven in Units:

To determine the breakeven point in dollars, the fixed price and the contribution margin mustbe known. The contribution margin is equal to selling price minus the variable cost per unit.With that in mind the contribution margin is $2.92 (8-5.08=2.92). The fixed costs are $3,835.Divide the fixed costs by the contribution margin and the breakeven in units is the result. Thus,breakeven in units is roughly 1,314.

Breakeven in Dollars:

The breakeven in dollars can be found by knowing the fixed costs and the contribution marginratio. The contribution margin ratio can be found by dividing the contribution margin by theselling price, so in the case of Mugnum Opus, the contribution margin ratio is 0.365, or 3.65%.Since the fixed costs are $3,835, the breakeven point in dollars would be roughly $10,507. Thiscan be confirmed by multiplying the breakeven point in units by the selling price.

Target Profits and Units per Month:

The target profit that Mugnum Opus would like to achieve each month is $3,000. In order tomake that goal, Mugnum Opus must sell 2,341 units. This is found by adding the fixed costs($3,835) and adding them to the target profit ($3,000) and dividing them by the contributionmargin (2.92). In order to make the target sales per month, they must make at least $18,727.This is found by adding the fixed costs and target profit and dividing them by the contributionmargin ratio.




Sales Budget:

During the first month, sales are expected to be just below average. Because of that, Mugnum

Opus anticipates selling 400 products, all of which are listed at the price of $8. The secondmonth sales are expected to drop due to lack of knowledge of the business. Mugnum Opuspredicts that only 300 products will be sold that month. In the third month sales are expectedto rise due to knowledge of the company growing. 500 products are expected to be sold. Thechart below graphs these predictions.

Month 1 Month 2 Month 3Number of Units 400 300 500Selling Price 8 8 8Total Sales from Units 3200 2400 4000

Mugnum Opus, LLCSales Budget

For the First Quarter

Cash Receipts Budget:

This budget is meant to indicate how much money in cash Mugnum Opus will receive eachmonth. It is estimated that Mugnum Opus will have 40 percent of their customers pay in cash,35 percent with credit cards, and 25 percent will charge purchases to their account. With thecredit sales, there is a 2 percent processing fee removed by the bank. Also, 80 percent of thecharge on account customers will pay within 10 days of the next month with a 2 percentdiscount and the rest will pay by the end of the billing month. The predictions are charted onthe graph below.

Month 1 Month 2 Month 3Credit Sales 1,120.00 840.00 1,400.00 LESS: 2% Processing Fee 22.40 16.80 28.00

Total Credit Sales 1,142.40 856.80 1,428.00 Charge Account Sales 800.00 600.00 1,000.00 Current Month Collections 160.00 120.00 200.00 Following Month Collections (Less 2% discount) - 624.00 468.00 Total Charge Account Sales 160.00 744.00 668.00 Cash Sales 1,280.00 960.00 1,600.00 Total Expected Cash Collections 2,582.40 2,560.80 3,696.00

Mugnum Opus, LLCCash Receipts BudgetFor the First Quarter




FIRST MONTH JOURNAL ENTRIES:

These are the projections for the first month ’s purchases.

Date Accounts Affected Debit Credit1-Feb Cash 13,000.00

Note Payable 13,000.00 To record loan received

1-Feb Note Payable 320.70 Interest Expense 86.67

Cash 407.37 To record loan expense paid for one month

1-Feb Direct Materials Inventory 300.00 Pre-Paid Rent 1,100.00 Equipment 2,700.00 Computer 2,000.00 Furniture and Fixtures 1,000.00 Vehicle 4,000.00 Indirect Materials 325.00

Cash 11,425.00 To record supplies purchased

2-Feb Insurance Expense 200.00 Cash 200.00

To record insurance paid by cash for one month

4-Feb Office Supplies 200.00 Cash 200.00

To record office supplie s purchased with cash

20-Feb Utilities Expense 70.00 Cash 70.00

To record utility bill paid with cash

28-Feb Salary Expense 1,800.00 Wages Expense 960.00 Commission Expense 376.80

Federal Income Taxes Payable 470.52 Social Security Taxes Payable 131.75 Medicare Taxes Payable 45.48 Cash 2,489.05

To record payroll expenses paid wi th cash

28-Feb Payroll Tax Expense 406.22 Social Security Taxes Payable 194.49 Medicare Taxes Payable 45.48 SUTA Tax Payable 125.47 FUTA Tax Payable 40.78

To record payroll taxes

28-Feb Work in Process Inventory 132.00 Indirect Materials Inventory 132.00

To record work in process at month's end

28-Feb Work in Process Inventory 2,077.80 Direct Materials Inventory 652.50 Indirect Materials Inventory 242.55 Accounts Payable 103.95 Commission Expense 208.80 Wages Expense 870.00

To record work in process at month's end

28-Feb Organizational Costs 600.00 Cash 600.00

To record organizational costs purchased

Mugnum Opus, LLCCash Disbursements Journal Entries

For the Month of February, 2011




Date Accounts Affected Debit Credit14-Feb Cash 960.00

Sales 960.00 To record cash received from special order

28-Feb Cash 340.00 Sales Discount 60.00

Accounts Receivable 400.00 To record cash received from memorabilia payment on 25-Feb

Mugnum Opus, LLCCash Receipts Journal Entries


Date Accounts Affected Debit Credit4-Feb Equipment- Kiln 2,345.00

Equipment- Potter's Wheel 900.00 Accounts Payable- Crafts, Inc. 3,245.00

To record purchase of ki ln and potter's whee l on account

8-Feb Direct Materials Inventory 600.00 Accounts Payable- Clay-R-Us 600.00

To record clay purchased on account

9-Feb Indirect Materials Inventory 275.00 Accounts Payable- Small Things Matter Inc. 275.00

To record indirect materials purchased on account

21-Feb Accounts Payable 600.00 Direct Materials Inventory 12.00 Cash 588.00

To record payment of clay container within discount period

Mugnum Opus, LLCPurchases Journal Entries





Date Accounts Affected Debit Credit10-Feb Accounts Receivable- Wee Are Nonprofit 1,050.00

Sales 1,050.00 To record sale of memorabili a on account

21-Feb Sales Return 60.00 Cash 60.00

To record memorabili a returned

21-Feb Cash 70.00 Sales 70.00

To record returned memorabilia that was sold

25-Feb Accounts Recievable- DC Connection 800.00 Sales 800.00

To record memorabili a sold on account

26-Feb Cash 313.60 Credit Card Processing Fee 6.40 Sales 320.00

To record Visa sales

Mugnum Opus, LLCSales Journal Entries


Date Accounts Affected Debit Credit1-Feb Cash 3,000.00

Capital Investment 3,000.00 To record owner's investment

28-Feb Supplies Expense 140.00 Supplies 140.00

To record supplies left on-hand at month's end

28-Feb Depreciation Expense 176.49 Accumulated Depreciation- Computer 50.00 Accumulated Depreciation- KilnAccumulated Depreciation- Logo & Picture Equipment 41.67 Accumulated Depreciation- Potter's WheelAccumulated Depreciation- Shelving 11.90 Accumulated Depreciation- Vehicle 72.92

To record depreciation for fixed assets

28-Feb Memorabilia Inventory 2,209.80 Work in Process Inventory 2,209.80

To record memorabilia made

28-Feb Cost of Goods Sold 2,209.80 Memorabilia Inventory 2,209.80

To record memorabilia sold

28-Feb Rent Expense 550.00 Prepaid Rent 550.00

To record one month's rent expi red

Mugnum Opus, LLCGeneral Journal Entries





First Month Ledger Accounts:

These are estimations for the first month for the ledger accounts.

1-Feb 13,000.00 1-Feb 11,425.00 2-Feb 200.00 1-Feb 3,000.00 2-Feb 200.00 Balance: 200.00

14-Feb 960.00 4-Feb 200.00 21-Feb 70.00 20-Feb 70.00 26-Feb 313.60 21-Feb 588.00 4-Feb 200.00 28-Feb 140.00 28-Feb 340.00 21-Feb 60.00 Balance: 60.00

28-Feb 600.00 28-Feb 407.37 28-Feb 2,489.05 21-Feb 600.00 4-Feb 3,245.00

17,683.60 16,039.42 8-Feb 600.00 Balance: 1,644.18 9-Feb 275.00

28-Feb 103.95 600.00 4,223.95

1-Feb 320.70 1-Feb 13,000.00 Balance: 3,623.95

Balance: 12,679.30

10-Feb 1,050.00 28-Feb 400.00 1-Feb 3,000.00 25-Feb 800.00

Balance: 3,000.00 1,850.00 400.00 Balance: 1,450.00

1-Feb 86.67 Balance: 86.67 10-Feb 1,050.00

14-Feb 960.00 21-Feb 70.00

1-Feb 300.00 21-Feb 12.00 25-Feb 800.00 8-Feb 600.00 28-Feb 652.50 26-Feb 320.00

900.00 664.50 Balance: 3,200.00 Balance: 235.50

1-Feb 325.00 28-Feb 132.00 28-Feb 550.00 1-Feb 1,100.00 9-Feb 275.00 28-Feb 242.55

Balance: 550.00 600.00 374.55

Balance: 225.45 1-Feb 2,700.00

4-Feb 2,345.00 4-Feb 900.00 20-Feb 70.00

5,945.00 Balance: 70.00 Balance: 5,945.00

26-Feb 6.40 1-Feb 2,000.00 Balance: 6.40

Balance: 2,000.00

28-Feb 60.00 1-Feb 1,000.00 Balance: 60.00

Balance: 1,000.00

28-Feb 1,800.00 1-Feb 4,000.00 Balance: 1,800.00

Balance: 4,000.00

PREPAID RENT

CASH INSURANCE EXPENSE

OFFICE SUPPLIES

ACCOUNTS PAYABLE

NOTE PAYABLE

ACCOUNTS RECEIVABLECAPITAL INVESTMENT

INTEREST EXPENSESALES

DIRECT MATERIALS INVENTORY

INDIRECT MATERIALS INVENTORY

SALARY EXPENSEVEHICLE

EQUIPMENT

UTILITIES EXPENSE

CREDIT CARD FEESCOMPUTER

SALES DISCOUNTFURNITURE AND FIXTURES




28-Feb 140.00 28-Feb 406.22 Balance: 140.00 Balance: 406.22

28-Feb 960.00 28-Feb 870.00 28-Feb 2,209.80 28-Feb 2,209.80 Balance: 90.00 2,209.80 2,209.8

Balance: -

28-Feb 376.80 28-Feb 208.80 Balance: 168.00 28-Feb 2,209.80

Balance: 2,209.80

28-Feb 176.49 Balance: 176.49 21-Feb 60.00

Balance: 60.00

28-Feb 50.00 Balance: 50.00 28-Feb 550.00

Balance: 550.00

28-Feb 131.75 28-Feb 194.49 28-Feb 72.9

Balance: 326.24 Balance: 72.92

28-Feb 470.52 28-Feb 11.9 Balance: 470.52 Balance: 11.90

28-Feb 45.48 28-Feb 45.48

Balance: 90.96

28-Feb 125.47 Balance: 125.47

28-Feb 40.78 Balance: 40.78

28-Feb 132.00 28-Feb 2,209.80 28-Feb 2,077.80

2,209.80 2,209.80 Balance: -

28-Feb 41.67 Balance: 41.67

ACCUMULATED DEPRECIATION- Vehicle

SUPPLIES EXPENSE PAYROLL TAX EXPENSE

WAGES EXPENSE MEMORABILIA INVENTORY

COMMISSION EXPENSECOST OF GOODS SOLD

DEPRECIATION EXPENSESALES RETURN

ACCUMULATED DEPRECIATION- ComputerRENT EXPENSE

SOCIAL SECURITY TAX PAYABLE

ACCUMULATED DEPRECIATION- Equipment

FEDERAL INCOME TAX PAYABLE ACCUMULATED DEPRECIATION- Furniture & Fixtures

MEDICARE TAX PAYABLE

SUTA TAX PAYABLE

FUTA TAX PAYABLE

WORK IN PROCESS INVENTORY




All information listed is an estimation of information based on the ledgers and journals.

INCOME STATEMENT:

Revenue:Sales 3,200.00

Less: Sales Discount 60.00 Sales Return 60.00

Net Sales: 3,080.00 Less: Cost of Goods Sold 2,209.80

Net Revenue: 870.20

Expenses:Salary Expense 1,800.00 Rent Expense 550.00 Interest Expense 86.67 Payroll Tax Expense 406.22 Insurance Expense 200.00 Depreciation Expense 176.48 Commission Expense 168.00 Supplies Expense 140.00 Wages Expense 90.00

Utilities Expense 70.00 Credit Card Fees 6.40

Total Expenses: 3,693.77

Net Loss: (2,823.57)

Mugnum Opus, LLC

Income StatementFor the Month of February, 2011

STATEMENT OF RETAINED EARNINGS:

Beginning Retained Earnings: - Add: Net Loss (2,823.57)

Less: Drawings - Ending Retained Earnings: (2,823.57)

Mugnum Opus, LLCStatement of Retained EarningsFor the Month of February, 2011




BALANCE SHEET:

Assets LiabilitiesCash 1,644.18 Note Payable 12,679.30 Accounts Receivable 1,450.00 Accounts Payable 3,623.95 Organizational Costs 600.00 Social Securi ty Tax Payable 326.23 Prepaid Rent 550.00 Federal Income Tax Payable 470.52 Direct Materials Inventory 235.50 Medicare Tax Payable 90.96 Office Supplies 60.00 SUTA Tax Payable 125.47 Indirect Materials Inventory 225.45 FUTA Tax Payable 40.78 Memorabilia Inventory - Total Liabilities: 17,357.21 Work in Process Inventory - Total Assets: 4,765.13 Owner's Equity

Capital Investment 3,000.00 Property Plant Equipment Retained Earnings (2,823.57) Equipment 5,945.00 Total Owner's Equity: 176.43

Less: Accumulated Depreciatio (41.67) 5,903.33

Vehicle 4,000.00 Less: Accumulated Depreciatio (72.92)

3,927.08 Computer 2,000.00

Less: Accumulated Depreciatio (50.00) 1,950.00

Furniture and Fixtures 1,000.00 Less: Accumulated Depreciatio (11.90)

988.10 Total Property Plant Equipment: 12,768.51

Balance: 17,533.64 Balance: 17,533.64

Mugnum Opus, LLCBalance Sheet

As of February, 2011

Mugnum Opus Business Plan

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