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    Foley'S End Inc. Projected Statement of Earnings As at September 30 Account Titles Assumptions 2012 2013 Revenues

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    Leah Liu
    Foley's End Inc. projected a net loss of $53,168 in 2012 and $105,041 in 2013 based on assumptions of sales growth and steady operating expenses. Revenues were projected to increase as food sales grew to $145,000 in 2012 and $155,000 in 2013, while beverage sales increased 15% and 25% respectively. Cost of goods sold was projected at 46.59% of sales both years. The company expected to take on more debt through a bank loan to fund expansion, increasing long-term liabilities.

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    Foley'S End Inc. Projected Statement of Earnings As at September 30 Account Titles Assumptions 2012 2013 Revenues

    Uploaded by

    Leah Liu
    68 views4 pages
    Foley's End Inc. projected a net loss of $53,168 in 2012 and $105,041 in 2013 based on assumptions of sales growth and steady operating expenses. Revenues were projected to increase as food sales grew to $145,000 in 2012 and $155,000 in 2013, while beverage sales increased 15% and 25% respectively. Cost of goods sold was projected at 46.59% of sales both years. The company expected to take on more debt through a bank loan to fund expansion, increasing long-term liabilities.

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    Foley's End Inc. projected a net loss of $53,168 in 2012 and $105,041 in 2013 based on assumptions of sales growth and steady operating expenses. Revenues were projected to increase as food sales grew to $145,000 in 2012 and $155,000 in 2013, while beverage sales increased 15% and 25% respectively. Cost of goods sold was projected at 46.59% of sales both years. The company expected to take on more debt through a bank loan to fund expansion, increasing long-term liabilities.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    68 views4 pages

    Foley'S End Inc. Projected Statement of Earnings As at September 30 Account Titles Assumptions 2012 2013 Revenues

    Uploaded by

    Leah Liu
    Foley's End Inc. projected a net loss of $53,168 in 2012 and $105,041 in 2013 based on assumptions of sales growth and steady operating expenses. Revenues were projected to increase as food sales grew to $145,000 in 2012 and $155,000 in 2013, while beverage sales increased 15% and 25% respectively. Cost of goods sold was projected at 46.59% of sales both years. The company expected to take on more debt through a bank loan to fund expansion, increasing long-term liabilities.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    FOLEY’S END INC.

    Projected Statement of
    Earnings
    As at September 30
    Account Titles Assumptions 2012 2013
    Revenues
    Sales Food sales grow to $335,455 $368,528
    $145,000 in 2012 and $155,000
    in 2013; Beverage sales grow by
    15% in 2012 and 25% in 2013.
    COGS
    Beginning Inventory Last Year’s Ending $5,882 $4,282
    Inventory
    Purchases COGS+EI-BI $154,689 $172,119
    Ending Inventroy Return to 10 days $4,282 $4,704
    COGS 46.59% of Sales $156,289 $171,697
    Gross Profits $179,166 $196,831
    Operating
    Expenses
    Expenses
    Advertising Same%(1.64%) $5,502 $6,044
    Amortization Same%(3.58%) $12,009 $13,193
    Bank charges and $1,879 $2,064
    Same%(0.56%)
    interest
    General and Same%(4.14%) + 2% to the $20,597 $22,628
    administrative credit card companies
    Insurance Same%(2.41%) $8,085 $8,882
    Office supplies Same%(0.66%) $2,214 $2,432
    Rent Same%(12.25%) $41,093 $45,145
    Repairs and $6,273 $6,892
    Same%(1.87%)
    maintenance
    Utilities 3% of total gross sales $10,064 $11,056
    Wages and salaries Same%(23.80%) + $87,118 $87,118
    $140/week*52 weeks
    Total Operating $194,834 $205,454
    Expenses
    Operating Income $(15,668) $(8,623)
    Other Expense $600+6% $20,727 $22,712
    Net Income Before $(36,395) $(31,335)
    Taxes
    Taxes Owner’s Estimate (5% on $16,773 $73,706
    the first year and 20% for the
    next year)
    Net Income (Loss) $(53,168) $(105,041)

    FOLEY’S END INC.


    Projected Statement of
    Retained Earnings
    As at September 30
    Assumption 2012 2013
    Beginning Retained $(38,447) $(91,615)
    Previous Year’s SRE
    Earnings
    Add: Net Income PSOE $(53,168) $(105,041)
    Less: Dividends Same $Amounts $0 $0
    Ending Retained $(91,615) $(196,656)
    Earnings

    FOLEY’S END INC.


    Projected Balance Sheet
    As at September 30
    Assets: Assumption 2012 2013
    Current Assets:
    Cash Same$ $605 $605
    Account Receivable Same Days (11.7days) $10,753 $11,813
    Inventory PSOE $4282 $4704
    Total Current Assets $15,640 $17,122
    Fixed Assets:
    Equipment Same$ $39,500 $39,500
    Restaurant fixtures Same$+$3,500 $32,950 $32,950
    Computer Same$ $3,200 $3,200
    New expansion A $6,000 long-term loan $6,000 $6,000
    Subtotal $81,650 $81,650
    Less: Acc.Deprec Prev+Exp $41,169 $54,362
    Net fixed assets $40,481 $27,288

    TOTAL ASSETS $56,121 $44,410


    Liabilities
    Current Liabilities
    Working Capital $35,190 $127,312
    Plug
    Loan
    Accounts Payable 25.3days $10,722 $11,930
    Wages payable Same$ + $140/week*52 $9,956 $9,956
    weeks
    Line of credit $36,618 $36,618
    Same$
    ($40,000 limit)
    Current portion of $6,250 $6,250
    Same$
    bank loan
    Total current $98,736 $192,066
    liabilities
    Long-term
    Liabilities
    Bank Loan Same$ + $6,000 $31,000 $31,000
    Total long-term $31,000 $31,000
    liabilities
    Equity:
    Capital stock Same$ $18,000 $18,000
    Retained earnings PSORE $(91,615) $(196,656)
    Total equity $(73,615) $(178,656)

    Total liabilities and $56,121 $44,410


    equity

    EXHIBIT 2 – PLUG ADJUSTMENTS

    Seasonality (if applies)


    2012 2013
    Plug $35,190 $127,312
    + Seasonal $5,000 $5,000
    adjustment
    New Plug $40,190 $132,312
    Sensitivity Analysis
    Difference New
    New Value
    (absolute value) Plug
    Days Calculation $ Calculation $ Calculation $
    Days*(Purcha $4,238 New Inventory- $6,353 Base Plug $33,8
    Low 10
    ses/365) base case change 37
    $10,591 $0 $40.1
    Base Case
    90
    25

    $16,952 $6,952 $47,1

    High 40 42

    EXHIBIT 3 – RISK ASSESSMENT

    2013 2012 2011 2010 2009


    Calculation Projected Projected Historical Historical Historical
    Current
    CA/CL 0.09:1 0.16:1 0.29:1 0.37:1 0.56:1
    Ratio
    [Cash+ms+
    Acid Test 0.12:1 0.07:1 0.18:1 0.27:1 0.45:1
    AR]/CL
    Interest EBIT/int.ex
    4.25x 5.43x N/A N/A N/A
    Coverage p

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