The document is a 10-year cash flow estimate for Levitt Winery showing projected cases produced and sold, revenue, expenses, gross income, net income, capital purchases, depreciation, and cash flow. It projects that the winery will have negative cash flow for the first 5 years as it grows production and sales, before becoming profitable in years 6 through 10 as production increases to over 9,000 cases and total revenue grows to over $1.75 million.

1. 4/15/2015
Levitt Winery
Cash Flow Estimates
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Cases Produced and Sold - 375 625 1,375 2,000 3,000 4,250 5,500 7,125 9,125
Revenue
Retail Sales -$ 60,000$ 120,000$ 265,000$ 325,000$ 450,000$ 600,000$ 750,000$ 1,000,000$ 1,250,000$
Wholesale Sales - - - - 50,000 85,000 150,000 200,000 250,000 300,000
Distributor Sales - - - - - 55,000 80,000 100,000 125,000 200,000
Total Revenue -$ 60,000$ 120,000$ 265,000$ 375,000$ 590,000$ 830,000$ 1,050,000$ 1,375,000$ 1,750,000$
Expenses
Grapes 35,000$ 70,000$ 100,000$ 150,000$ 175,000$ 175,000$ 200,000$ 250,000$ 275,000$ 325,000$
Labor 100,000 120,000 140,000 170,000 240,000 250,000 275,000 275,000 300,000 350,000
Maintenance 20,000 35,000 50,000 50,000 50,000 50,000 60,000 70,000 80,000 90,000
Miscellaneous 50,000 35,000 25,000 25,000 35,000 50,000 50,000 50,000 75,000 75,000
Loan Repayment 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000
Total Expenses 250,000$ 305,000$ 360,000$ 440,000$ 545,000$ 570,000$ 630,000$ 690,000$ 775,000$ 885,000$
Gross Income (250,000)$ (245,000)$ (240,000)$ (175,000)$ (170,000)$ 20,000$ 200,000$ 360,000$ 600,000$ 865,000$
Loss Carry Forward (250,000) (495,000) (735,000) (910,000) (1,080,000) (1,060,000) (860,000) (500,000) - -
Income Tax @35% - - - - - - - - (210,000) (302,750)
Net Income (250,000)$ (245,000)$ (240,000)$ (175,000)$ (170,000)$ 20,000$ 200,000$ 360,000$ 390,000$ 562,250$
Capital Purchases (310,000)$ (50,000)$ (50,000)$ (50,000)$ (50,000)$ (50,000)$ (50,000)$ (70,000)$ (75,000)$ (85,000)$
Depreciation 30,000 75,000 72,000 70,000 65,000 65,000 60,000 50,000 25,000 25,000
Cash Flow (530,000)$ (220,000)$ (218,000)$ (155,000)$ (155,000)$ 35,000$ 210,000$ 340,000$ 340,000$ 502,250$
Levitt Winery Page 1 Projected Cash Flow