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    More Vino Projected Earnings

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    TERESA
    The document contains actual 2017 financial data and projected 2018-2019 income statements, balance sheets, and retained earnings for a company. It projects that the company will have a net loss of around $987,000 in 2017, which will increase the retained earnings deficit. The projections assume no change in key metrics like inventory turnover and payable aging. The company is expected to rely on its line of credit to fund operations as cash and working capital levels are projected to remain flat.

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    More Vino Projected Earnings

    Uploaded by

    TERESA
    368 views4 pages
    The document contains actual 2017 financial data and projected 2018-2019 income statements, balance sheets, and retained earnings for a company. It projects that the company will have a net loss of around $987,000 in 2017, which will increase the retained earnings deficit. The projections assume no change in key metrics like inventory turnover and payable aging. The company is expected to rely on its line of credit to fund operations as cash and working capital levels are projected to remain flat.

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    The document contains actual 2017 financial data and projected 2018-2019 income statements, balance sheets, and retained earnings for a company. It projects that the company will have a net loss of around $987,000 in 2017, which will increase the retained earnings deficit. The projections assume no change in key metrics like inventory turnover and payable aging. The company is expected to rely on its line of credit to fund operations as cash and working capital levels are projected to remain flat.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    368 views4 pages

    More Vino Projected Earnings

    Uploaded by

    TERESA
    The document contains actual 2017 financial data and projected 2018-2019 income statements, balance sheets, and retained earnings for a company. It projects that the company will have a net loss of around $987,000 in 2017, which will increase the retained earnings deficit. The projections assume no change in key metrics like inventory turnover and payable aging. The company is expected to rely on its line of credit to fund operations as cash and working capital levels are projected to remain flat.

    Copyright:

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

    Actual Projected Projected

    2017 Assumptions 2018 Assumptions 2019

    Net sales $ 8,662,734

    Cost of goods sold 65.1% 5,639,622

    Gross profit $ 3,023,112 $ - $ -

    Operating expenses
    Administrative expenses 2.8% $ 245,324
    Amortization 2.7% 232,104
    Insurance 0.5% 43,594
    Marketing and advertising 2.9% 250,950
    Miscellaneous 2.2% 188,578
    Rent 6.0% 519,906
    Repairs and maintenance 3.4% 298,442
    Security 1.6% 138,058
    Supplies and expenses 2.0% 176,530
    Telephone 1.6% 142,680
    Travel and entertainment 0.8% 65,894
    Utilities 0.6% 53,010
    Vehicle expenses 0.7% 62,024
    Wages 10.6% 921,768
    Total operating expenses 38.5% $ 3,338,862 $ - $ -

    Operating income -3.6% $ (315,750)

    Other income
    0.4% 31,884
    -3.3% (283,866)
    Interest expense 8.1% 703,256

    Net income (loss) $ (987,122)

    Note* Projected income statements do not include income tax expense due to carryforward of
    losses from 2016 and 2017 to offset income for 2018 and 2019
    Projected Projected
    2018 2019
    Retained earnings, beginning of year $ (3,002,156) $ (3,002,156)

    Add: Net Income

    Less: dividends - -

    Retained earnings, end of year $ (3,002,156) $ (3,002,156)


    Actual Projected Projected
    Balance Sheets 2017 Assumptions 2018 Assumptions 2019

    ASSETS
    Current assets:
    Cash $ 20,706
    Accounts receivable 11,064
    Inventory 708,984
    Total current assets $ 740,754

    Fixed assets
    Automobiles $ 117,126
    Furniture and fixtures 609,928
    Equipment 429,938
    Patio expansion -
    Leasehold improvements 662,388
    Subtotal $ 1,819,380
    Less: accumulated amortization 320,992
    Net fixed assets $ 1,498,388

    TOTAL ASSETS $ 2,239,142

    LIABILITIES
    Current liabilities:
    Accounts payable $ 1,209,066
    Bank line of credit 1,586,528
    Current portion due - bank loan 78,784
    Total current liabilities $ 2,874,378

    Long-term liabilities:
    Bank loan $ 180,920
    Loan payable 800,000
    Loans payable - NEW ROUND -
    Shareholder's loans 666,000
    Total long-term liabilities $ 1,646,920

    Equity
    Common stock $ 720,000
    Retained earnings (deficit) (3,002,156) -
    Total equity $ (2,282,156)

    TOTAL LIABILITIES AND EQUITY $ 2,239,142

    Other assumptions:
    Age of inventory assumed to be the same at .47 days
    Working capital needs increase in response to carrying more inventory
    Assumed company would make bank loan payments comparable to PY
    Age of accounts payable assumed to be the same at 88.4 days
    Assumed cash position to remain constant for projections and plug line of credit for cash needs
    SCF- statement of cash flows
    Assumed no change in aging of payables = (COGS + End. Inv. -Beg. Inv.) * 88.4 divided by 365

    Aging of A/P calculation


    6,670,305 8,004,366
    - -
    (708,984) -
    5,961,321 8,004,366
    88.4 88.4
    526,980,776 707,585,973
    365 365
    1,443,783 1,938,592

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