Sample Essay The financial plan for Cold Stone Creamery franchise presents the relevant information which…
Essay: Profit and Loss Forecast for Cold Stone Creamery Franchise
Essay: Profit and Loss Forecast for Cold Stone Creamery Franchise
Sample Essay
The projected income statement of three years for the franchise presents the expected level of revenue in the first three years of business with the corresponding cost of sales and the operating expenses which will be incurred during business in these years.
The sales of the franchise have been implemented as presented in the sales forecast and a growth rate of 6 percent has been applied for the second and third year of business. The income statement does not include any advertising and marketing expenses as the parent company is responsible for the marketing and advertisement of products. The four operating expenses incurred by the company include royalty expense, salaries expense, depreciation expense and general expenses. The general expenses include all miscellaneous expenses related to operating the business such as rent, utilities and maintenance.
| Cold Stone Creamery Franchise | |||
| Forecasted Income Statement | |||
| For the Fiscal Year | |||
| 1 | 2 | 3 | |
| $ | $ | $ | |
| Net Sales | 350,000 | 371,000 | 393,260 |
| Cost of Goods Sold | 87,500 | 92,750 | 98,315 |
| Gross Profit | 262,500 | 278,250 | 294,945 |
| Operating expenses: | |||
| Royalty Expenses | 21,000 | 22,260 | 23,596 |
| Salaries Expense | 49,000 | 51,940 | 55,056 |
| Depreciation Expense | 11,130 | 11,130 | 11,130 |
| General Expenses | 42,000 | 44,520 | 47,191 |
| Total operating expenses | 123,130 | 129,850 | 136,973 |
| Earnings Before Interest and Taxes | 139,370 | 148,400 | 157,972 |
| Income Taxes | 55,748 | 59,360 | 63,189 |
| Net Income | 83,622 | 89,040 | 94,783 |
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