Variance

Week 1
Actual Revenue
Weekly Revenue Growth Rate
Gross Margin
Operating Income/EBIT
Profit Margin%

Projected Actual
Variance $ Variance %
$ 798.11 $ 381.00 -417.11321
-52%
0%
72%
52%
-20%
-28%
$ 190.57 $ 12.76 -177.81321
-93%
16%
-2%
-18%
-113%

Week 2
Actual Revenue
Weekly Revenue Growth Rate
Gross Margin
Operating Income/EBIT
Profit Margin%

Projected Actual
Variance $
$
861.96 $ 1,079.93 217.96773585
8%
183%
175%
72%
70%
-2%
$
286.78 $
584.28 297.50513585
23%
36%
14%

Variance %
25%
2193%
-3%
104%
60%

Week 3 ProjectedActual
Variance Variance %
Actual Rev $ 930.92 $
684.73 -246.1892
-26%
Weekly Rev
8%
-37%
-45%
-557%
Gross Marg
72%
75%
3%
4%
Operating $ 436.68 $
328.90 -107.7852
-25%
Profit Marg
32%
31%
-1%
-2%

Week 4 Projected Actual

Variance Variance %
Actual Rev $ 1,005.39 $ 701.78 -303.6128
-30%
Weekly Rev
8%
2%
-6%
-69%
Gross Marg
72%
69%
-3%
-5%
Operating $
490.58 $ 221.19 -269.3827
-55%
Profit Marg
33%
20%
-14%
-41%

Week 5 Projected
Actual Rev $ 1,085.82
Weekly Rev
8%
Gross Marg
72%
Operating $
548.78
Profit Marg
34%

Actual
Variance Variance %
$ 629.50 -456.3242
-42%
-10%
-18%
-229%
52%
-21%
-28%
$ (85.66) -634.442
-116%
-12%
-47%
-136%

Week 6 Projected Actual

Variance
Actual Rev $ 1,172.69 $ 1,075.65 -97.04014
Weekly Rev
8%
71%
63%
Gross Marg
72%
71%
-2%
Operating $
611.64 $
260.25 -351.3935
Profit Marg
35%
15%
-20%

Variance %
-8%
786%
-2%
-57%
-57%

Week 7 ProjectedActual
Variance Variance %
Actual Rev $ 744.34 $ 547.00 -197.3396
-27%
Weekly Rev
-37%
-49%
-13%
35%
Gross Marg
72%
69%
-3%
-4%
Operating $ 883.64 $ 130.81 -752.8254
-85%
Profit Marg
81%
14%
-67%
-83%

Week 8 Projected Actual

Variance Variance %
Actual Rev $ 1,266.51 $ 1,293.15 26.64464
2%
Weekly Rev
70%
136%
66%
94%
Gross Marg
72%
63%
-9%
-13%
Operating $
739.54 $
561.03 -178.5051
-24%
Profit Marg
40%
29%
-11%
-27%

Variables
Growth Rates:
Ties
Socks
Watches
Gross Margin:
Ties
Socks
Watches
Interest Rate
Income Tax Rate
Sales Tax %

5%
5%
5%

Unit Cost
Sale Price
Net of Sales Tax
Cont. Margin

53.6%
64.7%
18.5%
2%
30%
6.00%

Uni
January
Ties
Socks
Watches
Total Units Sold

February
100
120
40
260

105
126
42
273

Pro. Forma Income Statement

January
Revenues:
Ties
Socks
Watches
Total Revenue
COGS
Ties
Socks
Watches
Total COGS

Gross Profit

Expenses:
Marketing Expense
R&D Expense
Depreciation Expense
Misc. Expense
Operating Profit (EBIT)
Interest Expense
Income Taxes

February

$
754.72 $
$
679.25 $
$ 2,452.83 $
$ 3,886.79 $

792.45
713.21
2,575.47
4,081.13

$
350.00 $
$
240.00 $
$ 2,000.00 $
$ 2,590.00 $

367.50
252.00
2,100.00
2,719.50

$ 1,296.79 $

1,361.63

$
$
$

200 $
150 $
30 $

300
200
30

916.79 $

831.63

$
$

- $
275 $

249

Net Income

641.75

582.14

Pro-Forma Balance Sheet

January
Assets:
Cash
Accounts Receivable
Inventory
PP&E
Less: Accumulated Depreciation.

$
$
$
$

300
$

Total Assets:

Liabilities & Equity

Accounts Payable
Interet Payable
Notes Payable
Total Liabilities

$
$

300 $

DFN

(308.00)
680
###
30

$
$
$
$

642 $

1,224

$
$

641.75 $
641.75 $

1,223.90
1,223.90

0 $

641.75 $

1,223.90

300

$
$
$

270
714
300
60

$
$
$

Retained Earnings
Total Equity
Total Liabilities & Equity

February

I made the assumption that I wo

This helped me look at avoiding
growth rate that is small because
unless there is a decrease in pric

Ties
$
$
$
$

3.50
8.00
7.55
4.05

March

Socks
$
$
$
$

Units Sold
April
110
132
44
287

March

2.00
6.00
5.66
3.66

Watches
$
50.00
$
65.00
$
61.32
$
11.32

May
116
139
46
301

April

June
122
146
49
316

May

July
128
153
51
332

June

August
134
161
54
348

July

141
169
56
366

August

$
832.08 $
873.68 $
917.36 $
963.23 $ 1,011.39 $
$
748.87 $
786.31 $
825.63 $
866.91 $
910.25 $
$ 2,704.25 $ 2,839.46 $ 2,981.43 $ 3,130.50 $ 3,287.03 $
$ 4,285.19 $ 4,499.45 $ 4,724.42 $ 4,960.64 $ 5,208.67 $

1,061.96
955.77
3,451.38
5,469.11

$
385.88 $
405.17 $
425.43 $
446.70 $
469.03 $
$
264.60 $
277.83 $
291.72 $
306.31 $
321.62 $
$ 2,205.00 $ 2,315.25 $ 2,431.01 $ 2,552.56 $ 2,680.19 $
$ 2,855.48 $ 2,998.25 $ 3,148.16 $ 3,305.57 $ 3,470.85 $

492.49
337.70
2,814.20
3,644.39

$ 1,429.71

$ 1,501.20

$ 1,576.26

$ 1,655.07

$ 1,737.83

1,824.72

$
$
$

100
150 $
30 $

### $
100
30 $

100
### $
30 $

### $
100
30 $

100 $
### $
30 $

100
100
30

1,149.71 $

1,271.20 $

1,346.26 $

1,425.07 $

1,507.83 $

1,594.72

$
$

$
345 $

$
381 $

$
404 $

$
428 $

$
452 $

478

804.80

March

889.84

April

$
$
$
$

1069
$
750 $
300
90 $

$
$
$

942.38

May

997.55

June

$ 1,055.48

July

2,029 $

2,918 $

3,861 $

4,859 $

5,914 $

$
$
$

$
$
$
$

$
$
$

1,116.30

August

$
$
$
$

$
$
$

3871
868
###
180

2885
$
826 $
300
150 $

$
$
$

1951
787
###
120

4913
911
300
210

$
$
$
$

$
$
$

6014
957
300
240
7,031

$
$

2,028.70 $
2,028.70 $

2,918.54 $
2,918.54 $

3,860.92 $
3,860.92 $

4,858.47 $
4,858.47 $

5,913.95 $
5,913.95 $

7,030.25
7,030.25

2,028.70 $

2,918.54 $

3,860.92 $

4,858.47 $

5,913.95 $

7,030.25

umption that I would be looking at staying at the consistent spot in the crossroads
look at avoiding adding labor cost and possible expansion. I kept a consistent
at is small because right now I don't know how well the business can continue to run
a decrease in prices.

September

October
148
177
59
384

September

November
155
186
62
403

October

December
163
195
65
424

November

Total
171
205
68
445

December

1592
1910
637
4138

Totals

$
$
$
$

1,115.06 $
1,003.55 $
3,623.95 $
5,742.56 $

1,170.81 $
1,053.73 $
3,805.14 $
6,029.69 $

1,229.35 $
1,106.42 $
3,995.40 $
6,331.18 $

1,290.82 $ 12,012.93
1,161.74 $ 10,811.63
4,195.17 $ 39,042.01
6,647.73 $ 61,866.57

$
$
$
$

517.11 $
354.59 $
2,954.91 $
3,826.61 $

542.96 $
372.32 $
3,102.66 $
4,017.94 $

570.11 $
390.93 $
3,257.79 $
4,218.84 $

598.62 $
5,570.99
410.48 $
3,820.11
3,420.68 $ 31,834.25
4,429.78 $ 41,225.36

1,915.95

2,011.75

2,112.34

2,217.96

$ 20,641.21

$
$
$

100 $
100 $
30 $

200 $
200 $
30 $

250 $
300 $
$

300 $
250 $
-

1,950
1,850

1,685.95 $

1,581.75 $

1,562.34 $

1,667.96 $

16,841.21

$
$

$
506 $

$
475 $

$
469 $

$
500 $

3,519

3%

1,180.17

September

1,107.23

October

1,093.64

November

December

$
$
$
$

7176
$
1,004 $
300
270 $

8263
1,055
###
300

$
$
$
$

9304
$
1,107 $
300
300 $

8,210 $

9,318 $

10,411 $

$
$
$

$
$
$

$
$
$

1,167.57

$
$
$

Total

11322
2,000
###
300
13,322

$
$

8,210.42 $
8,210.42 $

9,317.64 $
9,317.64 $

10,411.28 $
10,411.28 $

13,322.46
13,322.46

8,210.42 $

9,317.64 $

10,411.28 $

13,322.46

he crossroads
consistent
continue to run

$ 13,322.46

5 Day inventory Assumption

3 Decrease last 3 weeks inventory
10 Useful Life in weeks

Assumptions
Interest Rate
Income Tax Rate
Sales Tax %
Day inventory assumption
Useful Life in years
Annual growth rate
WACC

10%
30%
6%
12
5
5%
10%

Year
Total Revenue
Total COGS
Gross Profit

$
67% $
33% $

Expenses:
Marketing Expense
R&D Expense
Depreciation Expense
Misc. Expense
Operating Profit (EBIT)

1
2
61,867 $ 64,960
41,225 $ 43,287
20,641 $ 21,673

3% $
3% $
$

1,950
1,850
-

16,841

$
$

2,048
1,943

$ 17,683

Interest Expense
Income Taxes

$
$

$
3,519 $

Net Income

13,322

$ 12,378

Pro-Forma Balance Sheet

Year
Assets:
Cash
Accounts Receivable
Inventory
PP&E
Less: Accumulated Depreciation

$
$
$
$
$

11,322
2,000
300
300

$ 23,101

Total Assets

13,322

$ 25,201

Liabilities & Equity

Accounts Payable
Interest Payable
Notes Payable
Total Liabilities

$
$
$
$

Retained Earnings
Total Equity

$
$

13,322
13,322

$
$
$

5,305

2,100
500
500

###
###
-

$ 25,701
$ 25,701

Total Liabilities & Equity

13,322

DFN
Year
Operating Income(EBIT)
Plus depreciation
Less change in working capital
Less capital expenditures
Cash flow
Net Present Value

(0) $
(500)
1
2
$ 17,683
$
$
(100)
(300) $
200
(300) $ 17,783
72,863

$
$
$

$ 25,701

$
$
$

3
68,208 $
45,451 $
22,757 $

4
71,618 $
47,724 $
23,895 $

5
75,199 $
50,110 $
25,090 $

$
$

2,150 $
2,040 $

2,257 $
2,142 $

2,370 $
2,249 $

2,489
2,361

18,567 $

19,496 $

20,471 $

21,494

$
$

$
5,570 $

$
5,849 $

$
6,141 $

6,448

12,997 $

13,647 $

14,329 $

15,046

35,993 $

49,530 $

63,743 $

78,668

$
$
$

2,205 $
500 $
500 $

2,315 $
500 $
500 $

2,431 $
500 $
500 $

2,553
500
500

38,198 $

51,845 $

66,174 $

81,221

$
$
$
$

$
$

38,698 $
38,698 $

$
$
$
$

$
$
$
$

52,345 $
52,345 $

$
$
$
$

66,674 $
66,674 $

6
78,959
52,615
26,344

81,720
81,720

38,698 $

52,345 $

66,674 $

81,720

(500)
3
18,567
(105)
18,462

(500)
4
19,496
(110)
19,386

(500)
5
20,471
(116)
20,355

(500)
6
21,494
(122)
21,373

$
$
$
$
$

$
$
$
$
$
$

$
$
$
$
$
$

$
$
$
$
$
$

Look Good Feel Good

Income Statement
Oct 9 - Dec 11
Revenue
Cost of Goods Sold
Gross Profit
Expenses
Depreciation Expense (Booth)
Deprecaition Expense (Signage)
Marketing Expense
R&D Expense
Sales Tax
Supplies
Total Expenses
Operating Income (EBIT)
Interest Expense
Income Tax
Net Income
*Spud Nation Formatted 12/10/15
Look Good Feel Good
Balance Sheet
10/9/15 - 12/11/15
Assets:
Current Assets:
Cash
Inventory:
Ties
Bow ties
Knit Ties
Socks
Scarves
Tie Bars
Watches
Total Inventory:
Total Current Assets
Equipment (Booth)
Depreciation
Equipment & Depreciation
Total Assets
Liabilities & Equity
Liabilities:
Loan Payable
Interest Payable

Week 1
Week 2
Week 3
$
381.00 $ 1,079.93 $
684.73
$
183.00 $
320.80 $
168.86
$
198.00 $
759.13 $
515.87
$
$

47.63
35.48

$
$

47.63
35.48

$
$

47.63
35.48

$
$
$
$
$
$
$
$

8.88
22.86
70.39
185.24
12.76
17.00
3.83
(8.07)

$
$
$
$
$
$
$

64.80
26.94
174.85
584.28
17.00
175.29
392.00

$
$
$
$
$
$
$

41.08
62.78
186.97
328.90
17.00
98.67
213.23

Week 1

Week 2

Week 3

611.94

$ 1,007.90

$ 1,283.53

375.00

141.00

111.00

193.20

$
$

16.00
133.62

$
$

8.00
115.92

33.00

$
568.20 $
290.62
$ 1,180.14 $ 1,589.14
$
428.68 $
428.68
$
(83.11) $
(83.11)
$
511.79 $
511.79
$ 1,691.93 $ 2,100.93

$
267.92
$ 1,819.37
$
428.68
$
(83.11)
$
511.79
$ 2,331.16

$ 1,700.00

$ 1,700.00
$
34.00

$ 1,700.00
$
17.00

Total Liabilities
Equity:
Retained Earnings
Total Equity
Total Liabilities & Equity

$ 1,700.00

$ 1,717.00

$ 1,734.00

$
(8.07) $
383.93
$
(8.07) $
383.93
$ 1,691.93 $ 2,100.93

$
597.16
$
597.16
$ 2,331.16

Week 4
Week 5
Week 6
Week 7
Week 8
Total
$
701.78 $
629.50 $ 1,075.65 $
547.00 $ 1,293.15 $ 6,392.74
$
217.15 $
303.14 $
315.42 $
168.33 $
474.52 $ 2,151.22
$
484.63 $
326.36 $
760.23 $
378.67 $
818.63 $ 4,241.52
$
$
$
$
$
$
$
$
$
$
$

47.63 $
35.48 $
31.17 $
28.56 $
42.11 $
78.49 $
263.44 $
221.19 $
17.00 $
66.36 $
137.84 $

47.63
35.48
183.16
24.18
37.77
83.80
412.02
(85.66)
17.00
(25.70)
(76.96)

$
$
$
$
$
$
$
$
$
$
$

Week 4

Week 5

781.80

$ 1,133.04 $

$
$
$
$
$
$

294.00
24.00
100.00
145.20
22.00
11.00

$
$
$
$
$
$

126.00
33.00
36.00
129.60
55.00
11.00

$
596.20 $
390.60
$ 1,974.20 $ 1,914.24
$
428.68 $
428.68
$
(83.11) $
(83.11)
$
511.79 $
511.79
$ 2,485.99 $ 2,426.03

$ 1,700.00
$
51.00

47.63
35.48
177.67
14.00
64.54
160.66
499.98
260.25
17.00
78.08
165.18

Week 6

$
$
$
$
$
$

$
$

47.63
35.48

$
$
$
$
$
$
$
$

123.04
32.82
8.89
247.86
130.81
17.00
39.24
74.57

$
$
$
$
$
$
$
$
$
$
$

47.63
35.48
54.19
29.18
77.59
13.53
257.60
561.03
17.00
168.31
375.72

Week 7

Week 8

654.42

288.38

195.71

195.00
45.00
60.00
300.00
55.00
66.00

$
$
$
$
$
$

360.00
30.00
36.00
424.80
49.50
49.50

$
$
$
$
$
$

720.00
18.00
28.00
366.00
38.50
22.00

$
721.00 $
949.80
$ 2,096.42 $ 2,187.98
$
428.68 $
428.68
$
(83.11) $
(83.11)
$
511.79 $
511.79
$ 2,608.21 $ 2,699.77

$ 1,700.00 $ 1,700.00
$
68.00 $
85.00

$ 1,700.00
$
102.00

$ 1,192.50
$ 2,580.71
$
428.68
$
(83.11)
$
511.79
$ 3,092.50

$ 1,700.00
$
119.00

$
381.04
$
283.84
$
446.19
$
227.84
$
383.56
$
505.48
$ 2,227.95
$ 2,013.57
$
136.00
$
604.07
$ 1,273.50

$ 1,751.00

$ 1,768.00 $ 1,785.00

$ 1,802.00

$ 1,819.00

$
734.99
$
734.99
$ 2,485.99

$
658.03 $
823.21
$
658.03 $
823.21
$ 2,426.03 $ 2,608.21

$
897.77
$
897.77
$ 2,699.77

$ 1,273.50
$ 1,273.50
$ 3,092.50

Look Good Feel Good

Income Statemen
Week 0
Revenue:
Tie
Knit Tie
Socks
Premium Socks
Total Revenue
COGS
Tie
Knit Tie
Socks
Premium Socks
Total COGS
Gross Profit
Expenses:
Marketing Exp
R&D Exp
Depreciation Exp
Misc Exp
Total Exp
EBIT
Interest Exp
Income Tax
Total Interest &Tax
Net Income

Week 1
$
$
$
$
0 $

Week 2

Week 3

316.98
240.57
70.75
169.81
798.11

$
$
$
$
$

342.34
259.81
76.42
183.40
861.96

$
$
$
$
$

$
78.68
$
69.36
$
27.50
$
45.00
0 $ 220.54
0 $ 577.57

$
$
$
$
$
$

84.97
74.91
29.70
48.60
238.18
623.78

$
91.77
$
80.90
$
32.08
$
52.49
$ 257.24
$ 673.68

$
$
$
$
$
$

99.11
87.37
34.64
56.69
277.82
727.58

0
0
0
0
0
0
0
0
0
0

$
$
$
$
$
$
$
$
$
$

200.00
80.00
17.00
40.00
337.00
286.78
5.74
86.03
91.77
195.01

$ 100.00
###
###
###
$ 237.00
$ 436.68
$
8.73
$ 131.00
$ 139.74
$ 296.94

$
$
$
$
$
$
$
$
$
$

100.00
80.00
17.00
40.00
237.00
490.58
9.81
147.17
156.98
333.59

$
$
$
$
$
$
$
$
$
$

250.00
80.00
17.00
40.00
387.00
190.57
3.81
57.17
60.98
129.59

369.73
280.60
82.53
198.07
930.92

Week 4
$
399.30
$
303.04
$
89.13
$
213.91
$ 1,005.39

1
2
3
4
Revenue $ 798.11 $
861.96 $ 930.92 $ 1,005.39
$ 381.00 $ 1,079.93 $ 684.73 $
701.78
Weekly Rev
8%
8%
8%
8%
183%
-37%
2%
-10%
Gross Marg
72%
72%
72%
72%
52%
70%
75%
69%
Op Profit $ 190.57 $
286.78 $ 436.68 $
490.58

$
Profit Marg

12.76 $
16%
-2%

584.28 $ 328.90 $
23%
32%
36%
31%

221.19
33%
20%

Income Statement
Week 5
Week 6

Week 7-thankWeek 8

$
431.25
$
327.29
$
96.26
$
231.03
$ 1,085.82

$
465.75
$
353.47
$
103.96
$
249.51
$ 1,172.69

$
$
$
$
$

$
$
$
$
$
$

107.04
94.36
37.41
61.22
300.04
785.78

$
$
$
$
$
$

115.61
101.91
40.41
66.12
324.05
848.64

$
$
$
$
$
$
$
$
$
$

100.00
80.00
17.00
40.00
237.00
548.78
10.98
164.63
175.61
373.17

$
$
$
$
$
$
$
$
$
$

100.00
80.00
17.00
40.00
237.00
611.64
12.23
183.49
195.73
415.92

Total

$
503.01
$
381.75
$
112.28
$
269.47
$ 1,266.51

$
543.25
$
412.29
$
121.26
$
291.03
$ 1,367.83

$
$
$
$
$

$
70.25
$
57.12
$
27.50
$
51.00
$
205.87
$ 1,060.64

$
$
$
$
$
$

124.86
110.07
43.64
71.41
349.97
916.54

$
$
$
$
$
$

134.84
118.87
47.13
77.12
377.97
989.86

$
907.14
$
794.88
$
320.01
$
529.65
$ 2,551.67
$ 6,681.90

$
$
$
$
$
$
$
$
$
$

$
$
$
$
$
$
$
$
$
$

100.00
20.00
17.00
40.00
177.00
739.54
14.79
221.86
236.65
502.88

$
$
$
$
$
$
$
$
$
$

100.00
20.00
17.00
40.00
177.00
812.86
16.26
243.86
260.11
552.74

$
$
$
$
$
$
$
$
$
$

5
6
$ 1,085.82 $ 1,172.69 $
$
629.50 $ 1,075.65 $
8%
-37%
71%
-49%
72%
72%
52%
71%
$
548.78 $
611.64 $

283.02
198.11
70.75
192.45
744.34

Week 9

100.00
20.00
17.00
40.00
177.00
883.64
17.67
265.09
282.76
600.87

7
8
744.34 $ 1,266.51
547.00 $ 1,293.15
70%
8%
136%
394%
72%
72%
69%
63%
883.64 $
739.54

3,654.63
2,756.92
823.35
1,998.67
9,233.57

1,150.00
540.00
153.00
360.00
2,203.00
4,478.90
100.02
1,500.32
1,600.34
2,878.56

(85.66) $
34%
-12%

260.25 $
35%
15%

130.81 $
81%
14%

561.03
40%
29%