Essay About Total Sales And Calculation Of Ratios

Pizza Shop – Sales Forecast & Forecasted Financial Statements
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Part A
Business Plan:
Sales Forecast & Forecasted Financial Statements
Income Statements for the period ending 31 December
Actual
Forecasted
Sales:
Accommodation
125,600
157,500
192,693
31.03%
227,786
199,729
221,647
Functions for locals
10,000
25,000
50,000
187.50%
66,667
83,333
100,000
Total sales
135,600
182,500
242,693
218.53%
294,453
283,063
321,647
Expenses:
Expenses of functions
6,000
15,000
30,000
60.00%
40,000
50,000
60,000
Payroll
24,000
27,000
30,000
10.00%
33,000
36,300
39,930
Advertising and promotion
2,000
2,500
3,000
8,000
13,000
18,000
Depreciation
4,440
4,440
4,440
0.00%
4,440
4,440
4,440
Insurance
10,000
12,000
15,000
10.00%
16,500
18,150
19,965
Telephone
2,000
2,200
2,400
10.00%
2,640
2,904
3,194
Security
10.00%
Duties and subscriptions
10.00%
Cleaning supplies
10.00%
Groceries
10,000
12,000
15,000
10.00%
16,500
18,150
19,965
Payroll taxes
2,200
2,250
2,500
10.00%
2,750
3,025
3,328
Total operating expenses
61,280
78,145
103,335
42.58%
124,925
147,173
170,146
Profit before interest and tax
74,520
104,355
140,458
57.87%
169,528
135,890
151,501
Interest expense
48,000
48,000
48,000
19.78%
58,237
55,984
63,616
Taxes incurred
7,956
16,907
27,737
11.43%
33,653
32,351
36,761
Net profit
18,563
39,448
64,721
26.67%
77,639
47,555
51,125
Calculation Occupancy of 2004
(980*45%*26) +
( 1,225*85%*26) =
38538.5
Actual accommodation revenue =
192,693
Available accommodations
Balance Sheets as at 31 December
Actual
Forecasted
Current Assets
29,888
36,577
46,477
26,389
24,208
31,597
Accounts Receivable
2,600
3,900
6,429
2.65%
7,800
7,498
8,521
Other Current Assets
1,000
0.41%
1,213
1,166
1,325
Total Current Assets
33,288
41,377
53,906
3.06%
35,403
32,873
41,443
Non-current Assets
770,000
770,000
770,000
317.27%
934,220
898,082
1,020,501
Less: Accumulated Depreciation
25,560
30,000
34,440
14.19%
41,785
40,169
45,644
Total Non-current Assets
744,440
740,000
735,560
303.08%
892,434
857,914
974,857
Total Assets
777,728
781,377
789,466
306.14%
927,837
890,786
1,016,300
0.00%
Current Liabilities
0.00%
Accounts Payable
6,516
3,878
4,564
1.88%
5,537
5,323
6,049
Non-current Liabilities
525,000
525,000
525,000
216.32%
606,968
582,329
665,796
Total Liabilities
531,516
528,878
529,564
218.20%
612,505
587,652
671,845
Equity
0.00%
Capital
100,000
100,000
100,000
41.20%
121,327
116,634
132,533
Retained Earnings
127,648
113,051
92,181
37.98%
111,841
107,514
122,170
Current Earnings
18,564
39,448
67,721
27.90%
82,164
78,986
89,752
Total Capital
246,212
252,499
259,902
107.09%
315,332
303,134
344,455
Total Liabilities and Capital
777,728
781,377
789,466
325.29%
927,837
890,786
1,016,300
Assumption:
We have assumed that only Expenses of functions and Cleaning supplies are variable expenses and all other expenses are fixed.
Calculation of Ratios:
Calculation of Ratios
Actual
Forecasted
Current Ratio = current assets / current liabilities
10.67
11.81
Debt ratio = Total liabilities / Total assets
Debt to Equity ratio = Total Liabilities / Total Equity
Accounts Receivable turnover = Sales / Accounts Receivable
52.15
46.79
37.75
37.75
37.75
37.75
Days sales Outstanding ratio = 365 / A/R turnover ratio
Interest coverage ratio = E.B.I.T / Interest
Operating income = Operating income / sales
54.96%
57.18%
57.87%
57.57%
48.01%
47.10%