other financial statement accounts based on their direct relationship with sales. This method of forecasting was used due to the lack of information available (only the last three years of financial statements). As a result‚ every account in the pro forma financial statements are based on one or more key assumptions about their relationship with sales: Sales: It is assumed that sales turnover will continue to grow at a rate of 11% every year. This figure is the historical average of growth (change)
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The Body Shop Canada “You’re not the kind of franchise applicant we usually get‚” said Harry Robertson‚ company lawyer for the Body Shop Canada‚ as he opened his meeting with potential franchisee Richard Paul. “I suppose we’ll find out whether that’s an advantage or disadvantage‚” replied Mr. Paul. Mr. Robertson’s comment had taken Mr. Paul by surprise‚ and though he was pleased with his response‚ the comment had produced a sinking feeling in the pit of his stomach. Richard Paul Mr. Paul
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Executive Summary The Body Shop International PLC has been facing a myriad of issues in the late 1990s. At its creation‚ the body shop has seen tremendous growth and success. The company thrived to bring a new revolutionary business model and was extremely successful. But after those successful years in the early 1990s‚ the competition became fierce as new entrants came and absorbed parts of the market. This led to declining sales and profits for the company as they were not able to differentiate
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related things of pro forma and the projected financial statement. Base on the projected statement‚ any business will be able to determine the future position of accounts receivables‚ inventory‚ accounts payable‚ and the other expense accounts of the business as it will be informed of the profits and borrowing of the business that is required. A brand new company will need to be able to provide a sales projection plan‚ the production plan‚ to be able to put together the pro forma income statement
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statements (2005) and the pro forma statements (2006 projected) for Westmoreland (Exhibit 1). Do complete ration‚ common-size income statement and cash flow statement analyses with these data. The pro forma statements reflect management’s opinion about what will happen in the future. Incorporated into these statements is their business plan. 2. What is Westmoreland’s condition in 2005? 3. What are the key assumptions that are built into Westmoreland’s pro formas? At this point‚ do not focus
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shareholders. The pro forma statements show that Polar Sports will be more profitable. Polar Sports will make $406‚000 more in net income under level production. The difference in net income overall is due to the decrease in COGS of $1‚080‚000 offset by increases in operating expenses‚ interest paid‚ and taxes and a decrease in interest earned. If Mr. Weir determines that Polar Sports can be more profitable‚ then he must consider the risks involved in moving to level production. The pro forma financial statements
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Seminar Topic: Business Finance 1. What is the primary goal of financial management? A. B. C. D. E. Increased earnings Maximizing cash flow Maximizing shareholder wealth Minimizing risk of the firm all of these 2. In the past‚ the study of finance has included A. B. C. D. E. mergers raising capital. bankruptcy. acquisitions. all of these. 3. Professor Merton Miller received the Nobel prize in economics for his work on A. B. C. D. E. dividend policy. investment
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Prison Web Site: http://digitaldaily.allthingsd.com/20080904/sanjay-kumar-goes-to-white-castle-prison/ 4. Wikipedia (Various dates): Sanjay Kumar‚ Web Site: www.wikipedia.org- http://en.wikipedia.org/wiki/Sanjay_Kumar 5. Investopedia :Understanding Pro-Forma Earnings Web Site: http://investopedia.com/articles/01/103101.asp
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All of the input VAT can be reclaimed providing certain (de minimus) conditions are met. D Some of the input VAT can be reclaimed‚ in proportion to the different types of supply. (c) A business raises a pro forma invoice and receives a payment in advance of making a supply. The pro forma invoice was dated 3 March X0. The payment was received on 10 March X0. The goods were supplied on 14 March X0 and the VAT invoice was raised on 17 March X0. What
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VI Elements of a business plan The Executive Summary This is the first element of your plan but is written last. It tells who you are‚ explains your vision and your strategy‚ what you are doing or proposing to do‚ the market‚ the capital you need and what you’ll do with it and your competitive advantage. In short it is the business plan in miniature. B Business description In a business description firstly The name of the venture should be identified and The industry background should be presented
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