UNITY

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UNITY COFFEE BAR :

UNITY COFFEE BAR UNITY Coffee bar business plan UNITY Culture coffee bar is determined to become a daily necessity for local coffee addicts, a place to dream of as you try to escape the daily stresses of life and just a comfortable place to meet your friends or to read a book, all in one. With the growing demand for high-quality gourmet coffee and great service, UNITY will capitalize on its proximity to the Hubli IMSR campus to build a core group of repeat customers. UNITY will offer its customers the best prepared coffee in the area that will be complimented with pastries, as well as free books that its patrons can read to enjoy their visit.

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The company will operate a 2400 square foot coffee bar within a walking distance from the Hubli IMSR campus. The owners have secured this location through a three-year lease with an option for extending. The have also provided 140,000 of the required Rs.170,000 start-up funds. The remaining capital will be obtained through state bank of india commercial loans. The company is expected to grow sales revenue from Rs.584,000 in FY2001 to Rs.706,000 in year three. As UNITY will strive to maintain a 65% gross profit margin and reasonable operating expenses, it will see net profits grow from Rs.100,000 to Rs.125,000 during the same period.

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1.1 Objectives UNITY's objectives for the first year of operations are: Become selected as the "Best New Coffee Bar in the area" by the local restaurant guide. Turn in profits from the first month of operations. Maintain a 65% gross margin. 1.2 Keys to Success The keys to success will be: Store design that will be both visually attractive to customers, and designed for fast and efficient operations. Employee training to insure the best coffee preparation techniques. Marketing strategies aimed to build a solid base of loyal customers, as well as maximizing the sales of high margin products, such as Nescafe drinks.

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1.3 Mission UNITY will make its best effort to create a unique place where customers can socialize with each other in a comfortable and relaxing environment while enjoying the best brewed coffee or Nescafe and pastries in town. We will be in the business of helping our customers to relieve their daily stresses by providing piece of mind through great ambience, convenient location, friendly customer service, and products of consistently high quality. UNITY will invest its profits to increase the employee satisfaction while providing stable return to its shareholders. Company Summary UNITY, an empire limited liability company, sells coffee, other beverages and snacks in its 2400 square feet premium coffee bar located near the Hubli IMSR campus.  UNITY's major investors are Shivakumar and Krishna who cumulatively own over 70% of the company. The start-up loss of the company is assumed in the amount of Rs.27,680.

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2.1 Company Ownership UNITY is registered as a Limited Liability Corporation in the state of empire. Shivakumar owns 51% of the company. His cousin, Krishna , as well as Dr.Ranjeet and pradeep hold minority stakes in UNITY, LLC. 2.2 Start-up Summary The start-up expenses include: Legal expenses for obtaining licenses and permits as well as the accounting services totaling Rs.1,300. Marketing promotion expenses for the grand opening of UNITY in the amount of Rs.3,500 and as well as flyer printing (2,000 flyers at Rs.0.04 per copy) for the total amount of Rs.3,580. Consultants fees of Rs.3,000 paid to ABC Nescafe Services <name changed> for the help with setting up the coffee bar. Insurance (general liability, workers' compensation and property casualty) coverage at a total premium of Rs.2,400. Pre-paid rent expenses for one month at Rs.1.76 per square feet in the total amount of Rs.4,400.

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Premises remodeling in the amount of Rs.10,000. Other start-up expenses including stationery (Rs.500) and phone and utility deposits (Rs.2,500). The required start-up assets of Rs.142,320 include: Operating capital in the total amount of Rs.67,123, which includes employees and owner's salaries of Rs.23,900 for the first two months and cash reserves for the first three months of operation (approximately Rs.14,400 per month). Start-up inventory of Rs.16,027, which includes: Coffee beans (12 regular brands and five decaffeinated brands) - Rs.6,000 Coffee filters, baked goods, salads, sandwiches, tea, beverages, etc. - Rs.7,900 Retail supplies (napkins, coffee bags, cleaning, etc.) - Rs.1,840 Office supplies - Rs.287 Equipment for the total amount of Rs.59,170: Nescafe machine - Rs.6,000 Coffee maker - Rs.900 Coffee grinder - Rs.200 Food service equipment (microwave, toasters, dishwasher, refrigerator, blender, etc.) - Rs.18,000

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Storage hardware (bins, utensil rack, shelves, food case) - Rs.3,720 Counter area equipment (counter top, sink, ice machine, etc.) - Rs.9,500 Serving area equipment (plates, glasses, flatware) - Rs.3,000 Store equipment (cash register, security, ventilation, signage) - Rs.13,750 Office equipment (PC, fax/printer, phone, furniture, file cabinets) - Rs.3,600 Other miscellaneous expenses - Rs.500 Funding for the company comes from two major sources--owners' investments and bank loans. Two major owners, Shivakumar and James Polk, have contributed Rs.70,000 and Rs.30,00 respectively. All other investors have contributed Rs.40,000, which brings the total investments to Rs.140,000. The remaining Rs.30,000 needed to cover the start-up expenses and assets came from the two bank loans--a one-year loan in the amount of Rs.10,000 and a long-term (five years) loan of Rs.20,000. Both loans were secured through the state bank of India. Thus, total start-up loss is assumed in the amount of Rs.27,680. The following chart and table summarize the start-up assumptions.

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Start-up Requirements Start-up Expenses Legal Rs.1,300 Stationery etc. Rs.500 Brochures Rs.3,580 Consultants Rs.3,000 Insurance Rs.2,400 Rent Rs.4,400 Remodeling Rs.10,000 Other Rs.2,500 Total Start-up Expenses Rs.27,680 Start-up Assets Cash Required Rs.67,123 Start-up Inventory Rs.16,027 Other Current Assets Rs.0 Long-term Assets Rs.59,170 Total Assets Rs.142,320 Total Requirements Rs.170,000

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Start-up Funding Start-up Expenses to Fund Rs.27,680 Start-up Assets to Fund Rs.142,320 Total Funding Required Rs.170,000 Assets Non-cash Assets from Start-up Rs.75,197 Cash Requirements from Start-up Rs.67,123 Additional Cash Raised Rs.0 Cash Balance on Starting Date Rs.67,123 Total Assets Rs.142,320 Liabilities and Capital Liabilities Current Borrowing Rs.10,000 Long-term Liabilities Rs.20,000 Accounts Payable (Outstanding Bills) Rs.0 Other Current Liabilities (interest-free) Rs.0 Total Liabilities Rs.30,000 Capital Planned Investment Shivakumar Rs.70,000 James Polk Rs.30,000 All other investors Rs.40,000 Additional Investment Requirement Rs.0 Total Planned Investment Rs.140,000 Loss at Start-up (Start-up Expenses) (Rs.27,680) Total Capital Rs.112,320 Total Capital and Liabilities Rs.142,320 Total Funding Rs.170,000

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2.3 Company Locations and Facilities UNITY coffee bar will be located on the ground floor of the commercial building at the corner of West 13th Avenue and Patterson Street in Eugene, OR. The company has secured a one-year lease of the vacant 2,500 square feet premises previously occupied by a hair salon. The lease contract has an option of renewal for three years at a fixed rate that UNITY will execute depending on the financial strength of its business. The floor plan will include a 200 square feet back office and a 2400 square feet coffee bar, which will include a seating area with 15 tables, a kitchen, storage area and two bathrooms. The space in the coffee bar will be approximately distributed the following way--1300 square feet (i.e., 55% of the total) for the seating area, 600 square feet (26%) for the production area, and the remaining 500 square feet (19%) for the customer service area. This property is located in a commercial area within a walking distance from the Hubli IMSR campus on the corner of a major thoroughfare connecting affluent South Eugene neighborhood with the busy downtown commercial area. The commercially zoned premises have the necessary water and electricity hookups and will require only minor remodeling to accommodate the Nescafe bar, kitchen and storage area. The coffee bar's open and clean interior design with modern wooden decor will convey the quality of the served beverages and snacks, and will be in-line with the establishment's positioning as an eclectic place where people can relax and enjoy their cup of coffee. The clear window displays, through which passerby will be able to see customers enjoying their beverages, and outside electric signs will be aimed to grab the attention of the customer traffic.

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Products UNITY will offer its customers the best tasting coffee beverages in the area. This will be achieved by using high-quality ingredients and strictly following preparation guidelines. The store layout, menu listings and marketing activities will be focused on maximizing the sales of higher margin Nescafe drinks. Along with the Nescafe drinks, brewed coffee and teas, as well as some refreshment beverages, will be sold in the coffee bar. UNITY will also offer its clients pastries, small salads and sandwiches. For the gourmet clientele that prefers to prepare its coffee at home, UNITY will also be selling coffee beans. The menu offerings will be supplemented by free books and magazines that customers can read inside the coffee bar.

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3.1 Product Description The menu of the UNITY coffee bar will be built around Nescafe-based coffee drinks such as lattes, mochas, cappuccinos, etc. Each of the Nescafe-based drinks will be offered with whole, skimmed, or soy milk. Each of these coffee beverages is based on a 'shot' of Nescafe , which is prepared in the Nescafe machine by forcing heated water through ground coffee at high pressure. Such Nescafe shots are combined with steamed milk and/or other additives like cocoa, caramel, etc., to prepare the Nescafe-based beverages. Proper preparation techniques are of paramount importance for such drinks. A minor deviation from the amount of coffee in the shot, the size of the coffee particles, the temperature of milk, etc., can negatively affect the quality of the prepared drink. 3.2 Sales Literature Two thousand flyers will be distributed in the adjacent neighborhood, on the University campus, at the malls and in the selected office buildings within two weeks prior to the opening of UNITY. Subsequently, free postcards with UNITY endorsement will be printed to increase the company visibility among the patrons.

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Market Analysis Summary Karnataka coffee consumption has shown steady growth, with gourmet coffee having the strongest growth. Coffee drinkers in the Karnataka Northwest are among the most demanding ones. They favor well-brewed gourmet coffee drinks and demand great service. Eugene, OR, with its liberal and outgoing populace and long rainy winter, has traditionally been a great place for coffee establishments. UNITY will strive to build a loyal customer base by offering a great tasting coffee in a  relaxing environment of its coffee bar located close to the bustling Hubli IMSR campus. 4.1 Market Segmentation UNITY will focus its marketing activities on reaching all students and faculty, people working in offices located close to the coffee bar and on sophisticated teenagers. Our market research shows that these are the customer groups that are most likely to buy gourmet coffee products. Since gourmet coffee consumption is universal across different income categories and mostly depends on the level of higher education, proximity to the Hubli IMSR campus will provide access to the targeted customer audience. The chart and table below outline the total market potential (in number of customers) of gourmet coffee drinkers in Nescafe.

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Market Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Potential Customers Growth CAGR Students and Faculty 2% 18,000 18,360 18,727 19,102 19,484 2.00% Teenagers 1% 3,000 3,030 3,060 3,091 3,122 1.00% Office workers 2% 8,000 8,160 8,323 8,489 8,659 2.00% Other 0% 5,000 5,000 5,000 5,000 5,000 0.00% Total 1.63% 34,000 34,550 35,110 35,682 36,265 1.63%

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4.2 Target Market Segment Strategy UNITY will cater to people who want to get their daily cup of great-tasting coffee in a relaxing atmosphere. Such customers vary in age, although our location close to the University campus means that most of our clientele will be college students and faculty. Our market research shows that these are discerning customers that gravitate towards better tasting coffee. Furthermore, a lot of college students consider coffee bars to be a convenient studying or meeting location, where they can read or meet with peers without the necessity to pay cover charges. For us, this will provide a unique possibility for building a loyal client base. 4.2.1 Market Needs General trend toward quality among Hubli consumers definitely plays an important role in the recent growth in gourmet coffee. Additionally, such factors as desire for small indulgencies, for something more exotic and unique, provide a good selling opportunity for coffee bars.

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4.3 Industry Analysis Coffee consumption has shown a steady 2.5% growth rate in the Karnataka over the last decade. In 1994, total sales of coffee were approximately Rs.7.5 crores with gourmet coffee representing 33% (or Rs.2.5 crores) of that. The retail coffee industry is flourishing in the Karnataka . The local climate, with a long rainy season, is very conducive for the consumption of hot non-alcoholic beverages. At the same time, hot dry summers drive people into cafes to order iced drinks. Further, coffee has really become a part of the lifestyle in the Northwest. Its discerning coffee drinkers are in favor of well-prepared, strong coffee-based beverages, which they can consume in a relaxing environment.

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4.3.1 Competition and Buying Patterns Competition According to the 1997 Nescafe Food service Statistics (NAICS 72), Nescafe had 45 established snack & non-alcoholic beverage bars (NAICS 722213) with total sales of Rs.14.2 million. Among other establishments that offer coffee drinks to their customers are most of Eugene's limited- and full-service restaurants. UNITY's direct competitors will be other coffee bars located near the Hubli IMSR campus. These include Starbucks, Cafe Roma, The UO Bookstore, and other Food service establishments that offer coffee. Starbucks will definitely be one of the major competitors because of its strong financial position and established marketing and operational practices. However, despite of Starbuck's entrenched market position, many customers favor smaller, independent establishments that offer cozy atmosphere and good coffee at affordable prices. Cafe Roma is a good example of such competition. We estimate that Starbucks holds approximately 35% market share in that neighborhood, Cafe Roma appeals to 25% of customers, The UO Bookstore caters to another 10%, with the remaining market share split among other establishments. UNITY will position itself as a unique coffee bar that not only offers the best tasting coffee and pastries but also provides home-like, cozy and comfortable environment, which established corporate establishments lack. We will cater to customers' bodies and minds, which will help us grow our market share in this competitive market.

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Buying Patterns The major reason for the customers to return to a specific coffee bar is a great tasting coffee, quick service and pleasant atmosphere. Although, as stated before, coffee consumption is uniform across different income segments, UNITY will price its product offerings competitively. We strongly believe that selling coffee with a great service in a nice setting will help us build a strong base of loyal clientele.

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Strategy and Implementation Summary UNITY's marketing strategy will be focused at getting new customers, retaining the existing customers, getting customers to spend more and come back more often. Establishing a loyal customer base is of a paramount importance since such customer core will not only generate most of the sales but also will provide favorable referrals. 5.1 Competitive Edge UNITY will position itself as unique coffee bar where its patrons can not only enjoy a cup of perfectly brewed coffee but also spend their time in an ambient environment. Comfortable sofas and chairs, dimmed light and quiet relaxing music will help the customers to relax from the daily stresses and will differentiate UNITY from incumbent competitors.

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5.2 Sales Strategy UNITY baristas will handle the sales transactions. To speed up the customer service, at least two employees will be servicing clients--while one employee will be preparing the customer's order, the other one will be taking care of the sales transaction. All sales data logged on the computerized point-of-sale terminal will be later analyzed for marketing purposes. In order to build up its client base, UNITY will use banners and fliers, utilize customer referrals and cross-promotions with other businesses in the community. At the same time, customer retention programs will be used to make sure the customers are coming back and spending more at the coffee bar. 5.2.1 Sales Forecast Food costs are assumed at 25% for coffee beverages and 50% for retail beans and pastries. Proximity to the University campus will dictate certain sales seasonality with revenues slightly decreasing during the school vacation periods. The chart and table below outline our projected sales forecast for the next three years.

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Sales Forecast Year 1 Year 2 Year 3 Sales Coffee beverages Rs.350,400 Rs.385,440 Rs.423,984 Coffee beans Rs.87,600 Rs.96,360 Rs.105,996 Pastries, etc. Rs.146,000 Rs.160,600 Rs.176,660 Total Sales Rs.584,000 Rs.642,400 Rs.706,640 Direct Cost of Sales Year 1 Year 2 Year 3 Coffee beverages Rs.87,600 Rs.96,360 Rs.105,996 Coffee beans Rs.43,800 Rs.48,180 Rs.52,998 Pastries, etc. Rs.73,000 Rs.80,300 Rs.88,330 Subtotal Direct Cost of Sales Rs.204,400 Rs.224,840 Rs.247,324

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Management Summary A professional manager (Rs.35, 000/month) will be hired who will oversee all the coffee bar operations. Two full-time baristas (Rs.25, 000/month each) will be in charge of coffee preparation. Four more part-time employees will be hired to fulfill the staffing needs. In the second and third year of operation one more part-time employee will be hired to handle the increased sales volume. 6.1 Management Team A full-time manager will be hired to oversee the daily operations at UNITY. The candidate (who's name is withheld due to his current employment commitment) has had three years of managerial experience in the definitely industry in empire. This person's responsibilities will include managing the staff, ordering inventory, dealing with suppliers, developing a marketing strategy and perform other daily managerial duties. We believe that our candidate has the right experience for this role. A profit-sharing arrangement for the manager may be considered based on the first year operational results.

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6.2 Management Team Gaps Despite the owners' and manager's experience in the definitely industry, the company will retain the consulting services Nescafe Services, the consultants who have helped to develop the business idea for UNITY. This company has over twenty years of experience in the retail coffee industry and has successfully opened dozens of coffee bars across the Karnataka Consultants will be primarily used for market research, customer satisfaction surveys and to provide additional input into the evaluation of the new business opportunities. 6.3 Personnel Plan The table below outlines the personnel needs of UNITY coffee bar.

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6.3 Personnel Plan The table below outlines the personnel needs of UNITY coffee bar. Personnel Plan Year 1 Year 2 Year 3 Manager Rs.35,000 Rs.37,800 Rs.40,824 Baristas Rs.50,000 Rs.54,000 Rs.58,320 Employees Rs.39,600 Rs.52,000 Rs.56,000 Total People 7 8 8 Total Payroll Rs.124,600 Rs.143,800 Rs.155,144

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Financial Plan UNITY will capitalize on the strong demand for high-quality gourmet coffee. The owners have provided the company with sufficient start-up capital. With successful management aimed at establishing and growing a loyal customer base, the company will see its net worth doubling in two years. UNITY will maintain a healthy 65% gross margin, which combined with reasonable operating expenses, will provide enough cash to finance further growth.

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7.1 Important Assumptions General Assumptions Year 1 Year 2 Year 3 Plan Month 1 2 3 Current Interest Rate 10.00% 10.00% 10.00% Long-term Interest Rate 10.00% 10.00% 10.00% Tax Rate 25.42% 25.00% 25.42% Other 0 0 0

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7.2 Projected Cash Flow As the chart and table below present, the company will maintain a healthy cash flow position, which will allow for timely debt servicing and funds available for future development

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Pro Forma Cash Flow Year 1 Year 2 Year 3 Cash Received Cash from Operations Cash Sales Rs.584,000 Rs.642,400 Rs.706,640 Subtotal Cash from Operations Rs.584,000 Rs.642,400 Rs.706,640 Additional Cash Received Sales Tax, VAT, HST/GST Received Rs.0 Rs.0 Rs.0 New Current Borrowing Rs.0 Rs.0 Rs.0 New Other Liabilities (interest-free) Rs.0 Rs.0 Rs.0 New Long-term Liabilities Rs.0 Rs.0 Rs.0 Sales of Other Current Assets Rs.0 Rs.0 Rs.0 Sales of Long-term Assets Rs.0 Rs.0 Rs.0 New Investment Received Rs.0 Rs.0 Rs.0 Subtotal Cash Received Rs.584,000 Rs.642,400 Rs.706,640 Expenditures Year 1 Year 2 Year 3 Expenditures from Operations Cash Spending Rs.124,600 Rs.143,800 Rs.155,144 Bill Payments Rs.327,865 Rs.388,715 Rs.420,945 Subtotal Spent on Operations Rs.452,465 Rs.532,515 Rs.576,089 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Rs.0 Rs.0 Rs.0 Principal Repayment of Current Borrowing Rs.3,300 Rs.3,300 Rs.3,300 Other Liabilities Principal Repayment Rs.0 Rs.0 Rs.0 Long-term Liabilities Principal Repayment Rs.0 Rs.3,585 Rs.3,961 Purchase Other Current Assets Rs.0 Rs.0 Rs.0 Purchase Long-term Assets Rs.0 Rs.2,000 Rs.2,000 Dividends Rs.0 Rs.0 Rs.0 Subtotal Cash Spent Rs.455,765 Rs.541,400 Rs.585,350 Net Cash Flow Rs.128,235 Rs.101,000 Rs.121,290 Cash Balance Rs.195,358 Rs.296,358 Rs.417,648

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7.3 Key Financial Indicators

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7.4 Break-even Analysis With average monthly fixed costs of Rs.20,300 in FY2010 and an average margin of 65%, UNITY's break-even sales volume is around Rs.31,300 per month. As shown further, the company is expected to generate such sales volume from the out start.

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Break-even Analysis Monthly Revenue Break-even Rs.31,247 Assumptions: Average Percent Variable Cost 35% Estimated Monthly Fixed Cost Rs.20,311

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7.5 Projected Profit and Loss Annual projected sales of Rs.584,000 in FY2010 translate into Rs.254.00 of sales per square foot, which is in line with the industry averages for this size of coffee bar. Overall, as the company gets established in the local market, its net profitability increases from 17.06% in FY2010 to 17.63% in FY2012. The table below outlines the projected Profit and Loss Statement for FY2010-2012.

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Pro Forma Profit and Loss Year 1 Year 2 Year 3 Sales Rs.584,000 Rs.642,400 Rs.706,640 Direct Cost of Sales Rs.204,400 Rs.224,840 Rs.247,324 Other Rs.0 Rs.0 Rs.0 Total Cost of Sales Rs.204,400 Rs.224,840 Rs.247,324 Gross Margin Rs.379,600 Rs.417,560 Rs.459,316 Gross Margin % 65.00% 65.00% 65.00% Expenses Payroll Rs.124,600 Rs.143,800 Rs.155,144 Sales and Marketing and Other Expenses Rs.25,800 Rs.27,600 Rs.31,000 Depreciation Rs.5,400 Rs.5,500 Rs.5,500 Rent Rs.48,400 Rs.52,800 Rs.52,800 Rent Rs.6,000 Rs.6,000 Rs.6,000 Maintenance Rs.5,840 Rs.6,424 Rs.7,066 Utilities/Phone Rs.9,000 Rs.9,500 Rs.10,000 Payroll Taxes Rs.18,690 Rs.21,570 Rs.23,272 Other Rs.0 Rs.0 Rs.0 Total Operating Expenses Rs.243,730 Rs.273,194 Rs.290,782 Profit Before Interest and Taxes Rs.135,870 Rs.144,366 Rs.168,534 EBITDA Rs.141,270 Rs.149,866 Rs.174,034 Interest Expense Rs.2,821 Rs.2,326 Rs.1,618 Taxes Incurred Rs.33,740 Rs.35,510 Rs.42,424 Net Profit Rs.99,308 Rs.106,530 Rs.124,491 Net Profit/Sales 17.00% 16.58% 17.62%

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7.6 Projected Balance Sheet The company's net worth is expected to increase from approximately Rs.212,000 by the end of FY2010 to approximately Rs.443,000 in FY2012. The table below summarizes the projected balance sheets for this period.

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Pro Forma Balance Sheet Year 1 Year 2 Year 3 Assets Current Assets Cash Rs.195,358 Rs.296,358 Rs.417,648 Inventory Rs.21,175 Rs.23,293 Rs.25,622 Other Current Assets Rs.0 Rs.0 Rs.0 Total Current Assets Rs.216,533 Rs.319,651 Rs.443,270 Long-term Assets Long-term Assets Rs.59,170 Rs.61,170 Rs.63,170 Accumulated Depreciation Rs.5,400 Rs.10,900 Rs.16,400 Total Long-term Assets Rs.53,770 Rs.50,270 Rs.46,770 Total Assets Rs.270,303 Rs.369,921 Rs.490,040 Liabilities and Capital Year 1 Year 2 Year 3 Current Liabilities Accounts Payable Rs.31,974 Rs.31,947 Rs.34,836 Current Borrowing Rs.6,700 Rs.3,400 Rs.100 Other Current Liabilities Rs.0 Rs.0 Rs.0 Subtotal Current Liabilities Rs.38,674 Rs.35,347 Rs.34,936 Long-term Liabilities Rs.20,000 Rs.16,415 Rs.12,454 Total Liabilities Rs.58,674 Rs.51,762 Rs.47,390 Paid-in Capital Rs.140,000 Rs.140,000 Rs.140,000 Retained Earnings (Rs.27,680) Rs.71,628 Rs.178,159 Earnings Rs.99,308 Rs.106,530 Rs.124,491 Total Capital Rs.211,628 Rs.318,159 Rs.442,650 Total Liabilities and Capital Rs.270,303 Rs.369,921 Rs.490,040 Net Worth Rs.211,628 Rs.318,159 Rs.442,650

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Ratio Analysis Year 1 Year 2 Year 3 Industry Profile Sales Growth 0.00% 10.00% 10.00% 7.60% Percent of Total Assets Inventory 7.83% 6.30% 5.23% 3.60% Other Current Assets 0.00% 0.00% 0.00% 35.60% Total Current Assets 80.11% 86.41% 90.46% 43.70% Long-term Assets 19.89% 13.59% 9.54% 56.30% Total Assets 100.00% 100.00% 100.00% 100.00% Current Liabilities 14.31% 9.56% 7.13% 32.70% Long-term Liabilities 7.40% 4.44% 2.54% 28.50% Total Liabilities 21.71% 13.99% 9.67% 61.20% Net Worth 78.29% 86.01% 90.33% 38.80% Percent of Sales Sales 100.00% 100.00% 100.00% 100.00% Gross Margin 65.00% 65.00% 65.00% 60.50% Selling, General & Administrative Expenses 47.94% 48.47% 47.37% 39.80% Advertising Expenses 2.26% 2.18% 2.26% 3.20% Profit Before Interest and Taxes 23.27% 22.47% 23.85% 0.70% Main Ratios Current 5.60 9.04 12.69 0.98 Quick 5.05 8.38 11.95 0.65 Total Debt to Total Assets 21.71% 13.99% 9.67% 61.20% Pre-tax Return on Net Worth 62.87% 44.64% 37.71% 1.70% Pre-tax Return on Assets 49.22% 38.40% 34.06% 4.30% Additional Ratios Year 1 Year 2 Year 3 Net Profit Margin 17.00% 16.58% 17.62% Return on Equity 46.93% 33.48% 28.12%

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Activity Ratios Inventory Turnover 10.91 10.11 10.11 Accounts Payable Turnover 11.25 12.17 12.17 Payment Days 27 30 29 Total Asset Turnover 2.16 1.74 1.44 Debt Ratios Debt to Net Worth 0.28 0.16 0.11 Current Liab. to Liab. 0.66 0.68 0.74 Liquidity Ratios Net Working Capital Rs.177,858 Rs.284,304 Rs.408,334 Interest Coverage 48.16 62.07 104.13 Additional Ratios Assets to Sales 0.46 0.58 0.69 Current Debt/Total Assets 14% 10% 7% Acid Test 5.05 8.38 11.95 Sales/Net Worth 2.76 2.02 1.60 Dividend Payout 0.00 0.00 0.00

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