Startup Financing and Staffing Chapter 6. Startup Financing and Stafng Welcome to our little business--AppleSeed Enterprises, Inc. Imagine that you are AppleSeed's entrepreneurial CEO. You also double as treasurer and chief nancial ofcer. You have just incorporated (in Delaware) and invested $50,000 of your own money into the company--well, actually it's your Great Aunt Lillian's money. You're going to need much more capital to get into production, but these initial transactions will start up the business. Follow along...we have a lot to do. Transaction 1. Transaction 2. Transaction 3. Transaction 4. Sell 150,000 shares of AppleSeed's common stock ($1 par value) for $10 per share. Pay yourself your first month's salary. Book all payroll-associated fringe bents and taxes. Borrow $1 million to buy a building. Terms of this 10-year mortgage are 10% per annum. Pay $1.5 million for a building to be used for ofce, manufacturing and warehouse space. Set up a depreciation schedule. Hire administrative and sales staff. Pay rst month's salaries and book fringe benets and taxes. Pay employee health, life and disability insurance premiums plus FICA, unemployment and also withholding taxes. Transaction 5. Transaction 6. -- 95 --