1. 4.0 FinancialPlan
4.1 Goals and Objectives
Goal #1: Have a 400% Rate of Return on Investment
 Minimize the cost of goods sold per Thinkit by buying in larger bulks or
finding local sources
 Reduce operating expenses by supplying as many own office supplies
as possible (purchasing only when extremely necessary), and paying the
early-bird JACO fee
Goal #2: Borrow and spend within company resources
 Collect revenue promptly to ensure cash does not run out, and deposit
the cash as soon as possible
 Require approval for expenses and follow-ups to manage cash flow
 Divide purchases of raw materials reasonably over each month
Goal #3: Minimized banking and service fee
 Enforce a minimum threshold for withdrawal (make fewer but larger
withdrawals)
 Avoid using out-of-network ATMs to deposit and withdraw cash
4.2 Initial Capitalization
ImPACKed sold 48 shares, totalling $720 in initial share capital.
For the first two months of December and January, ImPACKed aims to sell
50 and 100 Thinkits, respectively. In order to start the company and meet
this sales goal for the first two months, the company needs $621.90 for
December and $1,043.08 for January. These monthly costs factors in two
things:
1. Initial raw material purchases - packaging, Rubik’s Cubes, metal
puzzles, instruction & puzzle pamphlet, and pencils
2. Operating Expenses
 Internal Company Benefits
o Most Sales Award - $10
o Refreshments - $10
 Rent (for storing raw materials) - $25
 Office Supplies (materials for production, allocated to spend only
when extremely necessary) - $20
 IT cost - $50
 Advertisement/ Promotional Materials
o Poster paper

2. For the operating expenses, salaries and commissions are not included in
the company startup cost as they will be issued in full at the end of the fiscal
year.
The cost for December can be covered by the initial share capital. Although
ImPACKed did not begin sales in December due to the shipping delay of raw
materials, the December sales goal of 50 Thinkits, priced at $15 per unit, will
be pushed and combined with January, and should bring in $750, bringing
the company a profit of $207.08. Adding to this, the January sales goal of
100 Thinkits will bring in $1,500, which will cover any other remaining costs
as well as bring in a profit of $479.15.
Therefore, the initial share capital of $720 raised by selling 48 shares at $15
each is sufficient to cover ImPACKed’s initial startup costs.
5.3 Break-EvenAnalysis
Fixed costs include:
 Salaries - 90% attendance expected, at $0.10 per hour, totalling $129.60.
 JACO Fee - $250 (early payment)
 Internal Company Benefits
o Most Sales Award - One $10 Gift Card per receiver, each month, totalling
$40
o Refreshments - $10 per month, totalling $40
 Rent - for storing equipment, estimated $100
 Bank Charges - estimated $25 a month starting January, totalling $75
 Office Supplies - for Thinkit production sessions, estimated $40
 Advertisement
o December - $125
o January - $100
o February - $100
o March - $50
 IT Cost - for domain name and maintenance, allocated $50
Variable Costs include:
 Commissions - this cost depends on the number of Thinkit sales made
 Raw Material Purchases - this cost depends on the number of raw materials
purchased to produce the Thinkits.
o Boxes - $0.96/ unit
o Rubik’s Cube - $3.00/ unit
o Metal Puzzles - $0.33/ unit
o Instructions and Puzzle Pamphlet - $0.75/ unit
o Pencils - $0.07/ unit

3. Break Even Analysis $15 PER UNIT $15 PER UNIT $15 PER UNIT
For Entire ImPACKed Fiscal Year
Scenario 1 Scenario 2 Scenario 3
Units = 100 Units = 122 Units = 500
$/Unit $/Unit Total Per Unit Total Per Unit Total
1 Sales 15.00$ $1,500 15.00$ $1,830 15.00$ $7,500
Variable Costs
2 Raw Materials 6.23$ 622.65$ 6.23$ 759.63$ 6.23$ 3,113.25$
3 Sales Commission 0.15$ 6.38$ 15.00$ 637.65$ 0.15 6.38$ 18.30$ 777.93$ 0.15 6.38$ 75.00$ 3,188.25$
Unit Contribution 8.62$ 862.35$ 8.62$ 1,052.07$ 8.62$ 4,311.75$
Gross Margin % 57% 57% 57% 57% 57% 57%
Operating Expenses
4 Salaries 129.60$ 129.60$ 129.60$
5 JACO Fees 250.00 250.00 250.00
Awards
6 Most Sales Award 40.00 40.00 40.00
7 Refreshments 40.00 40.00 40.00
8 Rent 50.00 50.00 50.00
9 Bank Charges 75.00 75.00 75.00
10 Office Supplies 40.00 40.00 40.00
11 Advertisement 375.00 375.00 375.00
12 IT cost 50.00 1,049.60$ 1,049.60$ 50.00 1,049.60$ 1,049.60$ 50.00 1,049.60$ 1,049.60$
13 Total Operating Expenses
14 Profit Before Tax (187.25)$ 2.47$ 3,262.15$
15 JACO Profit Tax 10% 0 0 326.215
16 Profit After Tax (187.25)$ 2.47$ 2,935.94$
Breakeven Volume 122.00 122.00 122.00
o Wastage (estimated 5%)
The breakeven point is 126 Thinkits at $15 each, which totals to $1,890.
The break-even spreadsheet and analysis graph can be found in Appendix C.
BREAK-EVEN ANALYSIS

4. Revenue:
Sales 7,500$
Less: Sales Commissions 75
Net Sales 7,425$
Other Revenue (i.e. Donations) 0
Total Revenue 7,425$
Expenses:
Raw Materials 3,036$
Salaries 130
JACO Fees 250
Bonuses & Incentives 80
Rent 50
Bank Charges 75
Office Supplies 40
IT Cost 50
Advertising/ Promotional materials 375
Total Expenses 4,085$
Income / (Loss) Before Taxes 3,340$
Less: 10% J.A. Profit Tax 334
Net Income / (Loss) 3,006$
Net Income / (Loss) Per Share 63$
Number of shares issued 48
ImPACKed
Income Statement (Forecasted)
Year Ended March 16, 2016
5.4 FinancialStatements
Income Statement

5. Cash 4,060$
Total Assets 4,060$
Profit Tax Payable 334$
Total Liabilities 334$
Capital Stock:
Authorized:
48 common shares, $15 par value
Issued:
48 common shares 720$
Retained Earnings / (Deficit) 3,006
Total Shareholder's Equity 3,726$
Total Liabilities and Shareholder's Equity 4,060$
Shareholder's Equity per common share 77.62$
SHAREHOLDER'S EQUITY
ImPACKed
Balance Sheet (Forecasted)
March 16, 2016
ASSETS
LIABILITIES
5.4 FinancialStatements
Balance Sheet

6. 5.5 Risks
Financial Risks
Startup Risks - As a product-based startup company, ImPACKed may face risks in
terms of obtaining enough funding to start the company and purchase raw materials.
ImPACKed has to raise a sufficient starting capital without the aid from sales before the
business can turn a profit. So far, the company has raised enough share capital to cover
the initial startup cost for December, and aims to cover the rest with sales. However,
there is a great risk to this because the number of Thinkit sales that will be made is still
uncertain. There is also the risk of not having enough capital to purchase raw materials
as sales continue to be made. This can be solved by making the salaries and
commissions payable at the end of the fiscal year, and spreading out the
reimbursements payables over the fiscal periods.
Material Cost and Inventory Risks - The cost of the raw materials will also vary
depending on the season, vendor, and shipping fees. This uncertainty in cost may
cause underestimates or overestimates in cost of goods sold and profit amount. There
is also the risk that materials will be damaged or lost. In other words, there is a chance
that profit margins could be less than anticipated, and may not be enough to meet the
break-even point. To lower this risk, ImPACKed has minimized the fixed costs, which
lowered the break-even point. The company will also be designating only one or two
people to safeguard all the materials, so they will not be scattered all over the company.
Payables Risk - In the case that ImPACKed does not sell all the Thinkits produced,
there also exists the risk that the business’s cash flows are not enough to fulfill all
financial responsibilities such as Salaries Payable and Reimbursements Payable. To
avoid this problem, the finance department will ensure that all Budget Forms are
approved and carefully noted before disbursing the cash.
Receivables Risk – Making a profit from selling the Thinkits requires collecting money
from sales. However, there is a possibility that revenue will not be received, especially if
it is a receivable. Although offering payment on credit could incentivize purchases, in
order to reduce the company’s receivables risk, ImPACKed will only be accepting cash
payments.
ROI Risks - Because of the uncertainty in demand and inconsistency in raw material
costs, there is risk that the product-based company could experience a net loss,
resulting in a share value less than the initial $15. In other words, shareholders could
lose money rather than earn a profit. In order to avoid these problems, ImPACKed must
sell the minimum break-even volume of 126 Thinkit units to first cover the basic initial
startup fixed and variable costs. The Thinkits will be sold at about 2.5 times more than
their raw materials cost, which will help quickly bring in and restore capital as sales are
made.