"We're up ten percent from this period last year." Kate turned from her desk and looked at Laura. "By my calculations, Margo should be able to pay off all of her debts by the end of the next quarter. When the holiday shopping season hits, we're actually going to be in the black."
Eyes narrowed, Laura came farther into the room. "I thought we were already in the black."
"Not technically." As she spoke, she continued to crunch figures. "We take a minimum percentage in lieu of salary. We have our pool for resupplying. Then there's operating expenses."
She worked one-handed as she reached for her cup of tea—and tried to pretend it was coffee. "Initially the bulk of our stock was Margo's property, and she took the lion's share of those profits in order to square with her creditors. We're gradually moving into new stock, which is acquired by—"
"Kate, just skip all the details. Are we operating at a loss?"
"We have been, but—"
"I've been taking money every month."
"Of course you have. You have to live. We have to live," Kate amended quickly, seeing the guilt cloud Laura's eyes.
Seeing that it would be necessary to explain and reassure, she set the cup down, resisted the keyboard. "This is how it works, Laura. We take what we need—what we're entitled to, and plow the rest back into the business. Each of us has personal expenses in addition to the shop overhead. Once those are seen to, we reinvest the profit. If there is any."
"And if there isn't, we're in the red, and that means—"
"That means reality. There's nothing unusual in operating at a loss in a new business." Kate bit back a sigh and wondered why she hadn't begun the discussion a different way.
"Forget all the ledgers for a minute. What I'm telling you is good news. We're going to end this calendar year not just eking out a minimal living and paying off old debts. We're going to make a profit. A real profit. That's rare in a business that's barely into its second year. By my projections, we'll have a net gain in the mid five figures."
"So we're okay?" Laura said cautiously.
"Yeah, we're okay." Smiling, Kate ran her fingers over the keys of her computer as if they were adored children. "If the charity auction goes as well as last year, we'll be cooking."
"That's what I came in to talk to you about." Laura hesitated, frowned at the figures on the screen. "We're really all right?"
"If you can't trust your accountant, who can you trust?"
"Right." She had to believe it. "Well, then, you won't have any problem cutting a few checks."
"You've come to the right place." Humming, Kate took the invoices from Laura, and then choked. "What the hell are these?"
"Refreshments." Laura offered a bright, hopeful smile. "Entertainment. Oh, and advertising. All auction-related."
"Christ, we're paying this for mind-numbing chamber music from a bunch of nerds? Why can't we just plug in a CD? I told Margo—"
"Kate, it's a matter of image. And this trio isn't a bunch of nerds. They're very talented." She patted Kate's shoulder, well aware why Margo had suggested that she be the one to pass along the bills. "It's union scale, just like the waitpeople."
Grumbling, Kate flipped open the checkbook. "Margo has to do everything in an ornate and showy fashion."
"That's why we love her. Just think how the cash register's going to sing the week after the auction. All those rich, materialistic customers with large disposable incomes."
"You're trying to sweet-talk me."
"Is it working?"
"Say 'large disposable incomes' again."
"Large disposable incomes."
"Okay, I feel better."
"Really? Good." Laura winced, held her breath. "About the fashion show we've set up for December? You agree that's still a good idea?"
"It's a great idea. A well-executed special event will more than pay for itself, and it has the potential of generating new clientele."