More Vino LTD. was founded in 2005 intending to become the leading local wine distributor by bringing the best of the wine world to enthusiasts throughout the nation. They offer a vast selection of wines which come from eleven different countries including those that are under-represented in the local market. These countries include: Argentina, Australia, Chile, France, Germany, Italy, New Zealand, Portugal, Spain, South Africa and U.S.A. More Vino’s original entry into market was the establishment of a dedicated liquor store to serve both retail and wholesale customers with exclusive brands and the widest variety of wines available in the Republic of Trinidad and Tobago. The location of the company is in Trinidad, the larger and more populous of the country with a population of 1.3 million. In 2006, More Vino Distributors was launched adding a new concept into the local distribution and supply of alcoholic beverages. Its widest range of wines, spirits, beers, cigars are all at competitive pricing and door step delivery. Plus, its unique advanced service and its growing in popularity as an after-work destination for young professionals make its sales growth rapidly by 100.7% from 2006 to 2007. Thus, the company is willing to expand total seating capacity to 250 and to offer wine-tasting events, special promotions and a More Vino wine club to attract and retain a regular clientele in future. Even though the company has net loss through 2006 ($2,015,034) and 2007 ($987,122), but the net loss is reduced largely by the amount $1,027,912 in 2007. Meanwhile, the COGS decreased from 77.2% of sales (2006) to 65.1% of sales (2007). Therefore, it signals that More Vino is starting making a profit and will be successful in a long run.
More Vino’s current assets is decreased 47.5% from 2006 ($1,411,410) to 2007 ($740,754) while NFA is increased 102.8% from 2006 to 2007. This dramatic change is driving by two factors. First,...
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