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TemplateSA-EXH 8-ProForma.xlsx
Sheet1
| EXHIBIT 8 | ||||||||||
| PRO FORMA | COMMON-SIZE INCOME STATEMENT | ON OLALLIEBERRY PIE COMPANY (OPC) | ||||||||
| FUTURE ESTIMATES FOR THE FISCAL YEARS 1998-2002 | ||||||||||
| FOR STRATEGIC ALTERNATIVE #1 – | STABILITY | |||||||||
| CONTINUE DOING THE SAME | ||||||||||
| Key Assumptions: | ||||||||||
| Estimated Net Sales growth per year (%): | 2.4% | average last 5 years | ||||||||
| Estimated Cost of Merchandise Sold ( %): | 71.1% | average last 5 years | ||||||||
| Estimated selling and store operating expenses (%): | 17.3% | average last 5 years | ||||||||
| Estimated total operating expenses (%): | 19.2% | average last 5 years | ||||||||
| Estimated income interest expenses (%): | -0.04% | average last 5 years | ||||||||
| Estimated provision for income tax (%): | 3.0% | average last 5 years | ||||||||
| ($ in millions) | ||||||||||
| Common-Size Percentages | ||||||||||
| Fiscal Years Ended | 1998 | 1999 | 2000 | 2001 | 2002 | 1998 | 1999 | 2000 | 2001 | 2002 |
| Net Sales | $ 24,728 | $ 25,321 | $ 25,929 | $ 26,551 | $ 27,189 | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% |
| Cost of Merchandise Sold | 17,589 | 18,011 | 18,443 | 18,886 | 19,339 | 71.13% | 71.13% | 71.13% | 71.13% | 71.13% |
| Gross Profit | 7,139 | 7,310 | 7,486 | 7,665 | 7,849 | 28.87% | 28.87% | 28.87% | 28.87% | 28.87% |
| Operating Expenses | ||||||||||
| Selling and Store Operating | 4,278 | 4,381 | 4,486 | 4,593 | 4,704 | 17.28% | 17.28% | 17.28% | 17.28% | 17.28% |
| Pre-Opening | na | na | na | na | na | |||||
| General and Administrative | na | na | na | na | na | |||||
| Non-Recurring Charge | na | na | na | na | na | |||||
| Total Operating Expenses | 4,748 | 4,862 | 4,978 | 5,098 | 5,220 | 19.20% | 19.20% | 19.20% | 19.20% | 19.20% |
| Operating Income | 2,391 | 2,449 | 2,507 | 2,568 | 2,629 | 9.67% | 9.67% | 9.67% | 9.67% | 9.67% |
| Interest Income (Expense) | ||||||||||
| Interest and Investment Income | na | na | na | na | na | |||||
| Interest Expense | na | na | na | na | na | |||||
| Interest, Net | na | na | na | na | na | |||||
| Minority Interest | na | na | na | na | na | |||||
| Earnings Before Income Taxes | $ 2,401 | $ 2,459 | $ 2,518 | $ 2,578 | $ 2,640 | 9.71% | 9.71% | 9.71% | 9.71% | 9.71% |
| Income Taxes | $ 741.84 | $ 759.64 | $ 777.88 | $ 796.54 | $ 815.66 | 3.00% | 3.00% | 3.00% | 3.00% | 3.00% |
| Net Earnings | $ 1,659 | $ 1,699 | $ 1,740 | $ 1,782 | $ 1,824 | 6.71% | 6.71% | 6.71% | 6.71% | 6.71% |
| Instructor's Note: numbers are for illustration only. They do not match other exhibits. Your numbers in your exhibit DO NEED to match your case statistics and your analysis. | ||||||||||
