maxi s grocery mart
TRANSCRIPT
Maxi's Grocery Mart Pro Forma Income Statement
2006 2007 2008 2009
SalesDeli $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 $75,057.44
Total Sales $4,000,000.00 $4,290,000.00 $4,622,475.00 $5,003,829.19
Deli $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 $22,517.23
$2,342,600.00 $2,512,438.50 $2,707,152.48 $2,930,492.56
Gross Profit $1,657,400.00 $1,777,561.50 $1,915,322.52 $2,073,336.62
$220,000.00 $235,950.00 $254,236.13 $275,210.61
$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 $248,610.00 $266,634.23 $287,298.38 $311,000.49
$1,341,610.00 $1,400,959.23 $1,469,001.06 $1,547,046.15
$315,790.00 $376,602.27 $446,321.45 $526,290.47Income Taxes $110,526.50 $131,810.80 $156,212.51 $184,201.66
Net Income $205,263.50 $244,791.48 $290,108.94 $342,088.81
Cost of Goods Sold
Total Cost of Goods Sold
Operating ExpensesSales and Marketing
General and Administrative
Total Operating Expenses
Income Before Taxes
Maxi's Food MartAssumptions and Additional Information
Growth and Taxes Rates Salary
2007 Growth: 7.25%
2008 Growth: 7.75% Manager: $ 55000
2009 Growth: 8.25% Ass. Manager: $ 40000
Tax Rate %: 35 Employee W/h:$ 12
Mr Feronti in %: 15
17
INPUT SECTION
No of employees on wages
Impact on Net Income
Page 3
0.090.095
0.1
Impact on Mr. Feronti's Income
Page 4
0.040.05
0.055
Decreasing Mr. Feronti's salary and increasing Hourly wage
Page 5
14
Decreasing Mr. Feronti's salary and increasing Hourly wage
Page 6
8
Impact of Change in Employees
Page 7
19
Maxi's Grocery Mart Pro Forma Income Statement
2006 2007 2008 2009
SalesDeli $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 $78,774.30
Total Sales $4,000,000.00 $4,360,000.00 $4,774,200.00 $5,251,620.00
Deli $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 $23,632.29
$2,342,600.00 $2,553,434.00 $2,796,010.23 $3,075,611.25
Gross Profit $1,657,400.00 $1,806,566.00 $1,978,189.77 $2,176,008.75
$220,000.00 $239,800.00 $262,581.00 $288,839.10
$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 $248,610.00 $270,984.90 $296,728.47 $326,401.31
$1,341,610.00 $1,415,284.90 $1,500,051.97 $1,597,757.16
$315,790.00 $391,281.10 $478,137.80 $578,251.58Income Taxes $110,526.50 $136,948.39 $167,348.23 $202,388.05
Net Income $205,263.50 $254,332.72 $310,789.57 $375,863.53
Cost of Goods Sold
Total Cost of Goods Sold
Operating ExpensesSales and Marketing
General and Administrative
Total Operating Expenses
Income Before Taxes
Maxi's Food MartAssumptions and Additional Information
Growth and Taxes Rates Salary
2007 Growth: 9.00%
2008 Growth: 9.50% Manager: $ 55000
2009 Growth: 10.00% Ass. Manager: $ 40000
Tax Rate %: 35 Employee W/h:$ 12
Mr Feronti in %: 15
17
INPUT SECTION
No of employees on wages
Maxi's Grocery Mart Pro Forma Income Statement
2006 2007 2008 2009
SalesDeli $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 $69,123.60
Total Sales $4,000,000.00 $4,160,000.00 $4,368,000.00 $4,608,240.00
Deli $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 $20,737.08
$2,342,600.00 $2,436,304.00 $2,558,119.20 $2,698,815.76
Gross Profit $1,657,400.00 $1,723,696.00 $1,809,880.80 $1,909,424.24
$220,000.00 $228,800.00 $240,240.00 $253,453.20
$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 $248,610.00 $258,554.40 $271,482.12 $286,413.64
$1,341,610.00 $1,374,354.40 $1,416,922.12 $1,466,087.84
$315,790.00 $349,341.60 $392,958.68 $443,336.41Income Taxes $110,526.50 $122,269.56 $137,535.54 $155,167.74
Net Income $205,263.50 $227,072.04 $255,423.14 $288,168.66
Cost of Goods Sold
Total Cost of Goods Sold
Operating ExpensesSales and Marketing
General and Administrative
Total Operating Expenses
Income Before Taxes
Maxi's Food MartAssumptions and Additional Information
Growth and Taxes Rates Salary
2007 Growth: 4.00%
2008 Growth: 5.00% Manager: $ 55000
2009 Growth: 5.50% Ass. Manager: $ 40000
Tax Rate %: 35 Employee W/h:$ 12
Mr Feronti in %: 15
17
INPUT SECTION
No of employees on wages
2006Sales
Deli $240,000.00Dairy $720,000.00Canned Goods $480,000.00Frozen Foods $800,000.00Meats $840,000.00Produce $500,000.00Dry Goods $360,000.00Video Sales $60,000.00Total Sales $4,000,000.00
1 2 3 4 5 6 7 8$0.00
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
$800,000.00
$900,000.002006 Sales
1 2 3 4 5 6 7 8$0.00
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
$800,000.00
$900,000.002006 Sales
Maxi's Grocery Mart Pro Forma Income Statement
2006 2007 2008 2009
SalesDeli $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 $75,057.44
Total Sales $4,000,000.00 $4,290,000.00 $4,622,475.00 $5,003,829.19
Deli $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 $22,517.23
$2,342,600.00 $2,512,438.50 $2,707,152.48 $2,930,492.56
Gross Profit $1,657,400.00 $1,777,561.50 $1,915,322.52 $2,073,336.62
$220,000.00 $235,950.00 $254,236.13 $275,210.61
$350,000.00 $375,375.00 $404,466.56 $437,835.05Depreciation $20,000.00 $20,000.00 $20,000.00 $20,000.00Wages $571,000.00 $571,000.00 $571,000.00 $571,000.00Common Costs $132,592.00 $142,204.92 $153,225.80 $165,866.93
$1,293,592.00 $1,344,529.92 $1,402,928.49 $1,469,912.59
$363,808.00 $433,031.58 $512,394.03 $603,424.03Income Taxes $127,332.80 $151,561.05 $179,337.91 $211,198.41
Net Income $236,475.20 $281,470.53 $333,056.12 $392,225.62
Cost of Goods Sold
Total Cost of Goods Sold
Operating ExpensesSales and Marketing
General and Administrative
Total Operating Expenses
Income Before Taxes
Maxi's Food MartAssumptions and Additional Information
Growth and Taxes Rates Salary
2007 Growth: 7.25%
2008 Growth: 7.75% Manager: $ 55000
2009 Growth: 8.25% Ass. Manager: $ 40000
Tax Rate %: 35 Employee W/h:$ 14
Mr Feronti in %: 8
17
INPUT SECTION
No of employees on wages
1 2 3 4$0.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
$300,000.00
$350,000.00
$400,000.00
$450,000.00
New Net IncomeOriginal Net Income
1 2 3 4$0.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
$300,000.00
$350,000.00
$400,000.00
$450,000.00
New Net IncomeOriginal Net Income
Maxi's Grocery Mart Pro Forma Income Statement
2006 2007 2008 2009
SalesDeli $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 $75,057.44
Total Sales $4,000,000.00 $4,290,000.00 $4,622,475.00 $5,003,829.19
Deli $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 $22,517.23
$2,342,600.00 $2,512,438.50 $2,707,152.48 $2,930,492.56
Gross Profit $1,657,400.00 $1,777,561.50 $1,915,322.52 $2,073,336.62
$220,000.00 $235,950.00 $254,236.13 $275,210.61
$350,000.00 $375,375.00 $404,466.56 $437,835.05Depreciation $20,000.00 $20,000.00 $20,000.00 $20,000.00Wages $551,000.00 $551,000.00 $551,000.00 $551,000.00Common Costs $248,610.00 $266,634.23 $287,298.38 $311,000.49
$1,389,610.00 $1,448,959.23 $1,517,001.06 $1,595,046.15
$267,790.00 $328,602.27 $398,321.45 $478,290.47Income Taxes $93,726.50 $115,010.80 $139,412.51 $167,401.66
Net Income $174,063.50 $213,591.48 $258,908.94 $310,888.81
Cost of Goods Sold
Total Cost of Goods Sold
Operating ExpensesSales and Marketing
General and Administrative
Total Operating Expenses
Income Before Taxes
Maxi's Food MartAssumptions and Additional Information
Growth and Taxes Rates Salary
2007 Growth: 7.25%
2008 Growth: 7.75% Manager: $ 55000
2009 Growth: 8.25% Ass. Manager: $ 40000
Tax Rate %: 35 Employee W/h:$ 12
Mr Feronti in %: 15
19
INPUT SECTION
No of employees on wages
1 2 3 4$0.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
$300,000.00
$350,000.00
$400,000.00
New Net IncomeOriginal Net Income
1 2 3 4$0.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
$300,000.00
$350,000.00
$400,000.00
New Net IncomeOriginal Net Income
Maxi's Grocery Mart Pro Forma Income Statement
2006 2007 2008 2009
SalesDeli $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 $75,057.44
Total Sales $4,000,000.00 $4,290,000.00 $4,622,475.00 $5,003,829.19
Deli $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 $22,517.23
$2,342,600.00 $2,512,438.50 $2,707,152.48 $2,930,492.56
Gross Profit $1,657,400.00 $1,777,561.50 $1,915,322.52 $2,073,336.62
$220,000.00 $235,950.00 $254,236.13 $275,210.61
$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 $248,610.00 $266,634.23 $287,298.38 $311,000.49
$1,341,610.00 $1,400,959.23 $1,469,001.06 $1,547,046.15
$315,790.00 $376,602.27 $446,321.45 $526,290.47Income Taxes $110,526.50 $131,810.80 $156,212.51 $184,201.66
Net Income $205,263.50 $244,791.48 $290,108.94 $342,088.81
Cost of Goods Sold
Total Cost of Goods Sold
Operating ExpensesSales and Marketing
General and Administrative
Total Operating Expenses
Income Before Taxes
Maxi's Food MartAssumptions and Additional Information
Growth and Taxes Rates Salary
2007 Growth: 7.25%
2008 Growth: 7.75% Manager: $ 55000
2009 Growth: 8.25% Ass. Manager: $ 40000
Tax Rate %: 35 Employee W/h:$ 12
Mr Feronti in %: 15
17
INPUT SECTION
No of employees on wages
Maxi's Grocery Mart Pro Forma Income Statement
2006 2007 2008 2009
SalesDeli $150,000.00 $160,875.00 $173,342.81 $187,643.59Dairy $450,000.00 $482,625.00 $520,028.44 $562,930.78Canned Goods $300,000.00 $321,750.00 $346,685.63 $375,287.19Frozen Foods $500,000.00 $536,250.00 $577,809.38 $625,478.65Meats $525,000.00 $563,062.50 $606,699.84 $656,752.58Produce $312,500.00 $335,156.25 $361,130.86 $390,924.16Dry Goods $225,000.00 $241,312.50 $260,014.22 $281,465.39Video Sales $37,500.00 $40,218.75 $43,335.70 $46,910.90
Total Sales $2,500,000.00 $2,681,250.00 $2,889,046.88 $3,127,393.24
Deli $75,000.00 $80,437.50 $86,671.41 $93,821.80Dairy $225,000.00 $241,312.50 $260,014.22 $281,465.39Canned Goods $225,000.00 $241,312.50 $260,014.22 $281,465.39Frozen Foods $325,000.00 $348,562.50 $375,576.09 $406,561.12Meats $262,500.00 $281,531.25 $303,349.92 $328,376.29Produce $203,125.00 $217,851.56 $234,735.06 $254,100.70Dry Goods $148,500.00 $159,266.25 $171,609.38 $185,767.16Video Sales $11,250.00 $12,065.63 $13,000.71 $14,073.27
$1,464,125.00 $1,570,274.06 $1,691,970.30 $1,831,557.85
Gross Profit $1,035,875.00 $1,110,975.94 $1,197,076.57 $1,295,835.39
$137,500.00 $147,468.75 $158,897.58 $172,006.63
$218,750.00 $234,609.38 $252,791.60 $273,646.91Depreciation $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 $155,381.25 $166,646.39 $179,561.49 $194,375.31
$1,034,631.25 $1,071,724.52 $1,114,250.67 $1,163,028.85
$1,243.75 $39,251.42 $82,825.91 $132,806.54Income Taxes $435.31 $13,738.00 $28,989.07 $46,482.29
Net Income $808.44 $25,513.42 $53,836.84 $86,324.25
Cost of Goods Sold
Total Cost of Goods Sold
Operating ExpensesSales and Marketing
General and Administrative
Total Operating Expenses
Income Before Taxes
INPUT SECTION
Maxi's Food MartAssumptions and Additional Information
Growth and Taxes Rates Salary
2007 Growth: 7.25%
2008 Growth: 7.75% Manager: $ 55000
2009 Growth: 8.25% Ass. Manager: $ 40000
Tax Rate %: 35 Employee W/h:$ 12
Mr Feronti in %: 15
17No of employees on wages