Group 8

Jai Bakliya
Maulik Patel
Palak Dhamecha
Parth Panchal
Pratik Naker

20141026
20141032
20141042
20141046
20141052

Maxi's Grocery Mart

Pro Forma Income Statement
Prepared on: 1st January, 2007
2006
Sales
Deli
Dairy
Canned Goods
Frozen Foods
Meats
Produce
Dry Goods
Video Sales
Total Sales
Cost of Goods Sold
Deli
Dairy
Canned Goods
Frozen Foods
Meats
Produce
Dry Goods
Video Sales
Total Cost of Goods Sold
Gross Profit
Operating Expenses
Sales and Marketing
General and Administrative
Depreciation
Wages
Common Costs
Total Operating Expenses
Income Before Taxes
Income Taxes
Net Income

2007

2008

$240,000.00
$720,000.00
$480,000.00
$800,000.00
$840,000.00
$500,000.00
$360,000.00
$60,000.00
$4,000,000.00

$206,400.00
$619,200.00
$412,800.00
$688,000.00
$722,400.00
$430,000.00
$309,600.00
$51,600.00
$3,440,000.00

$181,632.00
$544,896.00
$363,264.00
$605,440.00
$635,712.00
$378,400.00
$272,448.00
$45,408.00
$3,027,200.00

$120,000.00
$360,000.00
$360,000.00
$520,000.00
$420,000.00
$325,000.00
$237,600.00
$18,000.00
$2,360,600.00
$1,639,400.00

$103,200.00
$309,600.00
$309,600.00
$447,200.00
$361,200.00
$279,500.00
$204,336.00
$15,480.00
$2,030,116.00
$1,409,884.00

$90,816.00
$272,448.00
$272,448.00
$393,536.00
$317,856.00
$245,960.00
$179,815.68
$13,622.40
$1,786,502.08
$1,240,697.92

$220,000.00
$350,000.00
$20,000.00
$503,000.00
$245,910.00
$1,338,910.00
$300,490.00
$105,171.50
$195,318.50

$189,200.00
$301,000.00
$20,000.00
$503,000.00
$211,482.60
$1,224,682.60
$185,201.40
$64,820.49
$120,380.91

$166,496.00
$264,880.00
$20,000.00
$503,000.00
$186,104.69
$1,140,480.69
$100,217.23
$35,076.03
$65,141.20

Assumptions

Base Period Sales

Store Items
Deli

$4,000,000.00
% of Sales

CGS

Rates

6.00%

50.00%

2007 Growth

Dairy

18.00%

50.00%

2008 Growth

Canned Goods

12.00%

75.00%

2009 Growth

Frozen Foods

20.00%

65.00%

Tax

Meats

21.00%

50.00%

Produce

12.50%

65.00%

Dry Goods

9.00%

66.00%

Video Sales

1.50%

30.00%

100.00%
Operating Expenses

Salaries
Leroy

Sales and Marketing

5.50%

Manager

General and Administrative

8.75%

Asst. Manager

Depreciation Expense
Wage

$20,000.00
$12.00

No. of Employees

2009
$172,550.40
$517,651.20
$345,100.80
$575,168.00
$603,926.40
$359,480.00
$258,825.60
$43,137.60
$2,875,840.00
$86,275.20
$258,825.60
$258,825.60
$373,859.20
$301,963.20
$233,662.00
$170,824.90
$12,941.28
$1,697,176.98
$1,178,663.02
$158,171.20
$251,636.00
$20,000.00
$503,000.00
$176,799.45
$1,109,606.65
$69,056.37
$24,169.73
$44,886.64

392,315.39
Ans- we dont recommend Mr. Feronti to take the loan from
bank as the NPV of the cost that he is going to incure wont
be recovered in next 4 years.

Rates
-14.00%
-12.00%
-5.00%
35.00%

Salaries
15.00%
$55,000.00
$40,000.00
17

Maxi's Grocery Mart

Pro Forma Income Statement
Prepared on: 1st January, 2007
2006
Sales
Deli
Dairy
Canned Goods
Frozen Foods
Meats
Produce
Dry Goods
Video Sales
Total Sales
Cost of Goods Sold
Deli
Dairy
Canned Goods
Frozen Foods
Meats
Produce
Dry Goods
Video Sales
Total Cost of Goods Sold
Gross Profit
Operating Expenses
Sales and Marketing
General and Administrative
Depreciation
Wages
Common Costs
Total Operating Expenses
Income Before Taxes
Income Taxes
Net Income

2007

2008

$240,000.00
$720,000.00
$480,000.00
$800,000.00
$840,000.00
$500,000.00
$360,000.00
$60,000.00
$4,000,000.00

$249,600.00
$748,800.00
$499,200.00
$832,000.00
$873,600.00
$520,000.00
$374,400.00
$62,400.00
$4,160,000.00

$262,080.00
$786,240.00
$524,160.00
$873,600.00
$917,280.00
$546,000.00
$393,120.00
$65,520.00
$4,368,000.00

$120,000.00
$360,000.00
$360,000.00
$520,000.00
$420,000.00
$325,000.00
$237,600.00
$18,000.00
$2,360,600.00
$1,639,400.00

$124,800.00
$374,400.00
$374,400.00
$540,800.00
$436,800.00
$338,000.00
$247,104.00
$18,720.00
$2,455,024.00
$1,704,976.00

$131,040.00
$393,120.00
$393,120.00
$567,840.00
$458,640.00
$354,900.00
$259,459.20
$19,656.00
$2,577,775.20
$1,790,224.80

$220,000.00
$350,000.00
$20,000.00
$503,000.00
$245,910.00
$1,338,910.00
$300,490.00
$105,171.50
$195,318.50

$228,800.00
$364,000.00
$20,000.00
$503,000.00
$255,746.40
$1,371,546.40
$333,429.60
$116,700.36
$216,729.24

$240,240.00
$382,200.00
$20,000.00
$503,000.00
$268,533.72
$1,413,973.72
$376,251.08
$131,687.88
$244,563.20

Assumptions

Base Period Sales

Store Items
Deli

$4,000,000.00
% of Sales

CGS

Rates

6.00%

50.00%

2007 Growth

Dairy

18.00%

50.00%

2008 Growth

Canned Goods

12.00%

75.00%

2009 Growth

Frozen Foods

20.00%

65.00%

Tax

Meats

21.00%

50.00%

Produce

12.50%

65.00%

Dry Goods

9.00%

66.00%

Video Sales

1.50%

30.00%

100.00%
Operating Expenses

Salaries
Leroy

Sales and Marketing

5.50%

Manager

General and Administrative

8.75%

Asst. Manager

Depreciation Expense
Wage

$20,000.00
$12.00

No. of Employees

2009
$276,494.40
$829,483.20
$552,988.80
$921,648.00
$967,730.40
$576,030.00
$414,741.60
$69,123.60
$4,608,240.00
$138,247.20
$414,741.60
$414,741.60
$599,071.20
$483,865.20
$374,419.50
$273,729.46
$20,737.08
$2,719,552.84
$1,888,687.16
$253,453.20
$403,221.00
$20,000.00
$503,000.00
$283,303.07
$1,462,977.27
$425,709.89
$148,998.46
$276,711.43

Rates
4.00%
5.00%
5.50%
35.00%

Salaries
15.00%
$55,000.00
$40,000.00
17

Maxi's Grocery Mart

Pro Forma Income Statement
Prepared on: 1st January, 2007
2006
Sales
Deli
Dairy
Canned Goods
Frozen Foods
Meats
Produce
Dry Goods
Video Sales
Total Sales
Cost of Goods Sold
Deli
Dairy
Canned Goods
Frozen Foods
Meats
Produce
Dry Goods
Video Sales
Total Cost of Goods Sold
Gross Profit
Operating Expenses
Sales and Marketing
General and Administrative
Depreciation
Wages
Common Costs
Total Operating Expenses
Income Before Taxes
Income Taxes
Net Income

2007

2008

$240,000.00
$720,000.00
$480,000.00
$800,000.00
$840,000.00
$500,000.00
$360,000.00
$60,000.00
$4,000,000.00

$261,600.00
$784,800.00
$523,200.00
$872,000.00
$915,600.00
$545,000.00
$392,400.00
$65,400.00
$4,360,000.00

$286,452.00
$859,356.00
$572,904.00
$954,840.00
$1,002,582.00
$596,775.00
$429,678.00
$71,613.00
$4,774,200.00

$120,000.00
$360,000.00
$360,000.00
$520,000.00
$420,000.00
$325,000.00
$237,600.00
$18,000.00
$2,360,600.00
$1,639,400.00

$130,800.00
$392,400.00
$392,400.00
$566,800.00
$457,800.00
$354,250.00
$258,984.00
$19,620.00
$2,573,054.00
$1,786,946.00

$143,226.00
$429,678.00
$429,678.00
$620,646.00
$501,291.00
$387,903.75
$283,587.48
$21,483.90
$2,817,494.13
$1,956,705.87

$220,000.00
$350,000.00
$20,000.00
$503,000.00
$245,910.00
$1,338,910.00
$300,490.00
$105,171.50
$195,318.50

$239,800.00
$381,500.00
$20,000.00
$503,000.00
$268,041.90
$1,412,341.90
$374,604.10
$131,111.44
$243,492.67

$262,581.00
$417,742.50
$20,000.00
$503,000.00
$293,505.88
$1,496,829.38
$459,876.49
$160,956.77
$298,919.72

Assumptions

Base Period Sales

Store Items
Deli

$4,000,000.00
% of Sales

CGS

Rates

6.00%

50.00%

2007 Growth

Dairy

18.00%

50.00%

2008 Growth

Canned Goods

12.00%

75.00%

2009 Growth

Frozen Foods

20.00%

65.00%

Tax

Meats

21.00%

50.00%

Produce

12.50%

65.00%

Dry Goods

9.00%

66.00%

Video Sales

1.50%

30.00%

100.00%
Operating Expenses

Salaries
Leroy

Sales and Marketing

5.50%

Manager

General and Administrative

8.75%

Asst. Manager

Depreciation Expense
Wage

$20,000.00
$12.00

No. of Employees

2009
$315,097.20
$945,291.60
$630,194.40
$1,050,324.00
$1,102,840.20
$656,452.50
$472,645.80
$78,774.30
$5,251,620.00
$157,548.60
$472,645.80
$472,645.80
$682,710.60
$551,420.10
$426,694.13
$311,946.23
$23,632.29
$3,099,243.54
$2,152,376.46
$288,839.10
$459,516.75
$20,000.00
$503,000.00
$322,856.47
$1,594,212.32
$558,164.14
$195,357.45
$362,806.69

936,298.59

Rates
9.00%
9.50%
10.00%
35.00%

Salaries
15.00%
$55,000.00
$40,000.00
17

Maxi's Grocery Mart

Pro Forma Income Statement
Prepared on: 1st January, 2007
2006
Sales
Deli
Dairy
Canned Goods
Frozen Foods
Meats
Produce
Dry Goods
Video Sales
Total Sales
Cost of Goods Sold
Deli
Dairy
Canned Goods
Frozen Foods
Meats
Produce
Dry Goods
Video Sales
Total Cost of Goods Sold
Gross Profit
Operating Expenses
Sales and Marketing
General and Administrative
Depreciation
Wages
Common Costs
Total Operating Expenses
Income Before Taxes
Income Taxes
Net Income

2007

2008

$240,000.00
$720,000.00
$480,000.00
$800,000.00
$840,000.00
$500,000.00
$360,000.00
$60,000.00
$4,000,000.00

$257,400.00
$772,200.00
$514,800.00
$858,000.00
$900,900.00
$536,250.00
$386,100.00
$64,350.00
$4,290,000.00

$277,348.50
$832,045.50
$554,697.00
$924,495.00
$970,719.75
$577,809.38
$416,022.75
$69,337.13
$4,622,475.00

$120,000.00
$360,000.00
$360,000.00
$520,000.00
$420,000.00
$325,000.00
$237,600.00
$18,000.00
$2,360,600.00
$1,639,400.00

$128,700.00
$386,100.00
$386,100.00
$557,700.00
$450,450.00
$348,562.50
$254,826.00
$19,305.00
$2,531,743.50
$1,758,256.50

$138,674.25
$416,022.75
$416,022.75
$600,921.75
$485,359.88
$375,576.09
$274,575.02
$20,801.14
$2,727,953.62
$1,894,521.38

$220,000.00
$350,000.00
$20,000.00
$503,000.00
$245,910.00
$1,338,910.00
$300,490.00
$105,171.50
$195,318.50

$235,950.00
$375,375.00
$20,000.00
$503,000.00
$263,738.48
$1,398,063.48
$360,193.03
$126,067.56
$234,125.47

$254,236.13
$404,466.56
$20,000.00
$503,000.00
$284,178.21
$1,465,880.89
$428,640.48
$150,024.17
$278,616.31

Assumptions

Base Period Sales

Store Items
Deli

$4,000,000.00
% of Sales

CGS

Rates

6.00%

50.00%

2007 Growth

Dairy

18.00%

50.00%

2008 Growth

Canned Goods

12.00%

75.00%

2009 Growth

Frozen Foods

20.00%

65.00%

Tax

Meats

21.00%

50.00%

Produce

12.50%

65.00%

Dry Goods

9.00%

66.00%

Video Sales

1.50%

30.00%

100.00%
Operating Expenses

Salaries
Leroy

Sales and Marketing

5.50%

Manager

General and Administrative

8.75%

Asst. Manager

Depreciation Expense
Wage

$20,000.00
$12.00

No. of Employees

2009
$300,229.75
$900,689.25
$600,459.50
$1,000,765.84
$1,050,804.13
$625,478.65
$450,344.63
$75,057.44
$5,003,829.19
$150,114.88
$450,344.63
$450,344.63
$650,497.79
$525,402.06
$406,561.12
$297,227.45
$22,517.23
$2,953,009.80
$2,050,819.39
$275,210.61
$437,835.05
$20,000.00
$503,000.00
$307,622.91
$1,543,668.57
$507,150.82
$177,502.79
$329,648.04

Rates
7.25%
7.75%
8.25%
35.00%

Salaries
15.00%
$55,000.00
$40,000.00
17

PROBLEM STATEMENT
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