maxi's solution group8

names

Group 8

Jai Bakliya20141026Maulik Patel20141032Palak Dhamecha20141042Parth Panchal20141046Pratik Naker20141052

TYD 4Maxi's Grocery MartPro Forma Income StatementPrepared on:1st January, 2007

2006200720082009SalesDeli$240,000.00$206,400.00$181,632.00$172,550.40Dairy$720,000.00$619,200.00$544,896.00$517,651.20Canned Goods$480,000.00$412,800.00$363,264.00$345,100.80Frozen Foods$800,000.00$688,000.00$605,440.00$575,168.00Meats$840,000.00$722,400.00$635,712.00$603,926.40Produce$500,000.00$430,000.00$378,400.00$359,480.00Dry Goods$360,000.00$309,600.00$272,448.00$258,825.60Video Sales$60,000.00$51,600.00$45,408.00$43,137.60Total Sales$4,000,000.00$3,440,000.00$3,027,200.00$2,875,840.00Cost of Goods SoldDeli$120,000.00$103,200.00$90,816.00$86,275.20Dairy$360,000.00$309,600.00$272,448.00$258,825.60Canned Goods$360,000.00$309,600.00$272,448.00$258,825.60Frozen Foods$520,000.00$447,200.00$393,536.00$373,859.20Meats$420,000.00$361,200.00$317,856.00$301,963.20Produce$325,000.00$279,500.00$245,960.00$233,662.00Dry Goods$237,600.00$204,336.00$179,815.68$170,824.90Video Sales$18,000.00$15,480.00$13,622.40$12,941.28Total Cost of Goods Sold$2,360,600.00$2,030,116.00$1,786,502.08$1,697,176.98Gross Profit$1,639,400.00$1,409,884.00$1,240,697.92$1,178,663.02Operating ExpensesSales and Marketing$220,000.00$189,200.00$166,496.00$158,171.20General and Administrative$350,000.00$301,000.00$264,880.00$251,636.00Depreciation$20,000.00$20,000.00$20,000.00$20,000.00Wages$503,000.00$503,000.00$503,000.00$503,000.00Common Costs$245,910.00$211,482.60$186,104.69$176,799.45Total Operating Expenses$1,338,910.00$1,224,682.60$1,140,480.69$1,109,606.65Income Before Taxes$300,490.00$185,201.40$100,217.23$69,056.37Income Taxes$105,171.50$64,820.49$35,076.03$24,169.73Net Income$195,318.50$120,380.91$65,141.20$44,886.64392,315.39

Ans- we dont recommend Mr. Feronti to take the loan from bank as the NPV of the cost that he is going to incure wont be recovered in next 4 years.

Assumptions

Base Period Sales$4,000,000.00

Store Items% of SalesCGS RatesDeli6.00%50.00%2007 Growth-14.00%Dairy18.00%50.00%2008 Growth-12.00%Canned Goods12.00%75.00%2009 Growth-5.00%Frozen Foods20.00%65.00%Tax35.00%Meats21.00%50.00%Produce12.50%65.00%Dry Goods9.00%66.00%Video Sales1.50%30.00%100.00% SalariesOperating ExpensesLeroy15.00%Sales and Marketing5.50%Manager$55,000.00General and Administrative8.75%Asst. Manager$40,000.00Depreciation Expense$20,000.00Wage$12.00No. of Employees17

IS 2Maxi's Grocery MartPro Forma Income StatementPrepared on:1st January, 2007

2006200720082009SalesDeli$240,000.00$249,600.00$262,080.00$276,494.40Dairy$720,000.00$748,800.00$786,240.00$829,483.20Canned Goods$480,000.00$499,200.00$524,160.00$552,988.80Frozen Foods$800,000.00$832,000.00$873,600.00$921,648.00Meats$840,000.00$873,600.00$917,280.00$967,730.40Produce$500,000.00$520,000.00$546,000.00$576,030.00Dry Goods$360,000.00$374,400.00$393,120.00$414,741.60Video Sales$60,000.00$62,400.00$65,520.00$69,123.60Total Sales$4,000,000.00$4,160,000.00$4,368,000.00$4,608,240.00Cost of Goods SoldDeli$120,000.00$124,800.00$131,040.00$138,247.20Dairy$360,000.00$374,400.00$393,120.00$414,741.60Canned Goods$360,000.00$374,400.00$393,120.00$414,741.60Frozen Foods$520,000.00$540,800.00$567,840.00$599,071.20Meats$420,000.00$436,800.00$458,640.00$483,865.20Produce$325,000.00$338,000.00$354,900.00$374,419.50Dry Goods$237,600.00$247,104.00$259,459.20$273,729.46Video Sales$18,000.00$18,720.00$19,656.00$20,737.08Total Cost of Goods Sold$2,360,600.00$2,455,024.00$2,577,775.20$2,719,552.84Gross Profit$1,639,400.00$1,704,976.00$1,790,224.80$1,888,687.16Operating ExpensesSales and Marketing$220,000.00$228,800.00$240,240.00$253,453.20General and Administrative$350,000.00$364,000.00$382,200.00$403,221.00Depreciation$20,000.00$20,000.00$20,000.00$20,000.00Wages$503,000.00$503,000.00$503,000.00$503,000.00Common Costs$245,910.00$255,746.40$268,533.72$283,303.07Total Operating Expenses$1,338,910.00$1,371,546.40$1,413,973.72$1,462,977.27Income Before Taxes$300,490.00$333,429.60$376,251.08$425,709.89Income Taxes$105,171.50$116,700.36$131,687.88$148,998.46Net Income$195,318.50$216,729.24$244,563.20$276,711.43

Assumptions


Store Items% of SalesCGS RatesDeli6.00%50.00%2007 Growth4.00%Dairy18.00%50.00%2008 Growth5.00%Canned Goods12.00%75.00%2009 Growth5.50%Frozen Foods20.00%65.00%Tax35.00%Meats21.00%50.00%Produce12.50%65.00%Dry Goods9.00%66.00%Video Sales1.50%30.00%100.00% SalariesOperating ExpensesLeroy15.00%Sales and Marketing5.50%Manager$55,000.00General and Administrative8.75%Asst. Manager$40,000.00Depreciation Expense$20,000.00Wage$12.00No. of Employees17

IS 1Maxi's Grocery MartPro Forma Income StatementPrepared on:1st January, 2007

2006200720082009SalesDeli$240,000.00$261,600.00$286,452.00$315,097.20Dairy$720,000.00$784,800.00$859,356.00$945,291.60Canned Goods$480,000.00$523,200.00$572,904.00$630,194.40Frozen Foods$800,000.00$872,000.00$954,840.00$1,050,324.00Meats$840,000.00$915,600.00$1,002,582.00$1,102,840.20Produce$500,000.00$545,000.00$596,775.00$656,452.50Dry Goods$360,000.00$392,400.00$429,678.00$472,645.80Video Sales$60,000.00$65,400.00$71,613.00$78,774.30Total Sales$4,000,000.00$4,360,000.00$4,774,200.00$5,251,620.00Cost of Goods SoldDeli$120,000.00$130,800.00$143,226.00$157,548.60Dairy$360,000.00$392,400.00$429,678.00$472,645.80Canned Goods$360,000.00$392,400.00$429,678.00$472,645.80Frozen Foods$520,000.00$566,800.00$620,646.00$682,710.60Meats$420,000.00$457,800.00$501,291.00$551,420.10Produce$325,000.00$354,250.00$387,903.75$426,694.13Dry Goods$237,600.00$258,984.00$283,587.48$311,946.23Video Sales$18,000.00$19,620.00$21,483.90$23,632.29Total Cost of Goods Sold$2,360,600.00$2,573,054.00$2,817,494.13$3,099,243.54Gross Profit$1,639,400.00$1,786,946.00$1,956,705.87$2,152,376.46Operating ExpensesSales and Marketing$220,000.00$239,800.00$262,581.00$288,839.10General and Administrative$350,000.00$381,500.00$417,742.50$459,516.75Depreciation$20,000.00$20,000.00$20,000.00$20,000.00Wages$503,000.00$503,000.00$503,000.00$503,000.00Common Costs$245,910.00$268,041.90$293,505.88$322,856.47Total Operating Expenses$1,338,910.00$1,412,341.90$1,496,829.38$1,594,212.32Income Before Taxes$300,490.00$374,604.10$459,876.49$558,164.14Income Taxes$105,171.50$131,111.44$160,956.77$195,357.45Net Income$195,318.50$243,492.67$298,919.72$362,806.69 936,298.59

Assumptions



Initial PFSMaxi's Grocery MartPro Forma Income StatementPrepared on:1st January, 2007

2006200720082009SalesDeli$240,000.00$257,400.00$277,348.50$300,229.75Dairy$720,000.00$772,200.00$832,045.50$900,689.25Canned Goods$480,000.00$514,800.00$554,697.00$600,459.50Frozen Foods$800,000.00$858,000.00$924,495.00$1,000,765.84Meats$840,000.00$900,900.00$970,719.75$1,050,804.13Produce$500,000.00$536,250.00$577,809.38$625,478.65Dry Goods$360,000.00$386,100.00$416,022.75$450,344.63Video Sales$60,000.00$64,350.00$69,337.13$75,057.44Total Sales$4,000,000.00$4,290,000.00$4,622,475.00$5,003,829.19Cost of Goods SoldDeli$120,000.00$128,700.00$138,674.25$150,114.88Dairy$360,000.00$386,100.00$416,022.75$450,344.63Canned Goods$360,000.00$386,100.00$416,022.75$450,344.63Frozen Foods$520,000.00$557,700.00$600,921.75$650,497.79Meats$420,000.00$450,450.00$485,359.88$525,402.06Produce$325,000.00$348,562.50$375,576.09$406,561.12Dry Goods$237,600.00$254,826.00$274,575.02$297,227.45Video Sales$18,000.00$19,305.00$20,801.14$22,517.23Total Cost of Goods Sold$2,360,600.00$2,531,743.50$2,727,953.62$2,953,009.80Gross Profit$1,639,400.00$1,758,256.50$1,894,521.38$2,050,819.39Operating ExpensesSales and Marketing$220,000.00$235,950.00$254,236.13$275,210.61General and Administrative$350,000.00$375,375.00$404,466.56$437,835.05Depreciation$20,000.00$20,000.00$20,000.00$20,000.00Wages$503,000.00$503,000.00$503,000.00$503,000.00Common Costs$245,910.00$263,738.48$284,178.21$307,622.91Total Operating Expenses$1,338,910.00$1,398,063.48$1,465,880.89$1,543,668.57Income Before Taxes$300,490.00$360,193.03$428,640.48$507,150.82Income Taxes$105,171.50$126,067.56$150,024.17$177,502.79Net Income$195,318.50$234,125.47$278,616.31$329,648.04

Assumptions



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maxi's solution group8

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