EGR120 PS#3 Data.xlsx - Special Highlights Hair Salon Author Date Purpose To develop a projected income statement for Special Highlights Hair Salon

EGR120 PS#3 Data.xlsx - Special Highlights Hair Salon...

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Special Highlights Hair Salon Author Date Purpose To develop a projected income statement for Special Highlights Hair Salon
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Special Highlights Hair Salon Income Statement Income Gross Sales 294000 Cost of Sales 97020 Gross Profit Operating Expenses Salaries and Wages 98280 Taxes and Benefits 7371 Insurance 3840 Utilities/Telephone 10320 Advertising 1800 Supplies/Misc. 4000 Lease 9020 Interest 2707 Depreciation 3570 Sales Tax 14700 Total Operating Expenses Total Operating Profit/Loss Income Taxes Net Profit/Loss Assumptions for the Projected Income Statement Gross Sales Projected 20 people per day at an average expenditure of $42 (source: Nationa Cost of Sales 33% of Gross Sales (source: National Salon News, May 5, 2015) Payroll Taxes and Benefits FICA taxes are assumed to be 7.5% of gross wages Insurance Includes owner's liability ($200) and workman's compensation ($120)
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Unformatted text preview: Utilities/Telephone Gas, electricity, water and trash collection average $720 per month. The phone Advertising Assume $1,000 for the year plus $800 for initial advertising Supplies/Misc. Office supplies, computer equipment and support, cleaning supplies. Lease The first month's rent is included in the deposit, assume 11 months rent @ $82 Interest The $65,000 loan was secured with an annual interest payment of $2,707. Depreciation Salon equipment valued at $35,700 with a 10% straight line depreciation over Sales Tax Assume a 5% sales tax on gross sales. 4 stylist hired @ $13.50 for 35/hrs per week, 52 weeks per year. al Salon News, May 5, 2015) over a 350-day year. e averages $140 per month. 20 per month. 10 years at $3,570 per year....
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