New Store Financial Model

New Store Financial Model - $(105,000 $(6,300 $60,774...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
New Store Financial Analysis Model Model Assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Annual Growth Rate 20% 12% 9% 5% Sales Revenue $800,000 Cost of Merchandise (% of sales) 30% Operating Expenses Labor Cost $200,000 Rent Per Square Foot $28 Other Expenses $325,000 Inflation Rate 2% Store Size (square feet) $5,000 Total Fixed Assets $300,000 Depreciation period (straight line) 5 Discount Rate 10% Tax Rate 34% Model Outputs Year 1 2 3 4 5 Sales Revenue $800,000 $960,000 $1,075,200 $1,171,968 $1,230,566 Cost of Merchandise $240,000 $288,000 $322,560 $351,590 $369,170 Operating Expenses Labor Cost $200,000 $204,000 $208,080 $212,242 $216,486 Rent Per Square Foot $140,000 $142,800 $145,656 $148,569 $151,541 Other Expenses $325,000 $331,500 $338,130 $344,893 $351,790 Net Operating Income
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: $(105,000) $(6,300) $60,774 $114,674 $141,579 Depreciation Expense $60,000 $60,000 $60,000 $60,000 $60,000 Net Income Before Tax $(165,000) $(66,300) $774 $54,674 $81,579 Income Tax $(56,100) $(22,542) $263 $18,589 $27,737 Net After Tax Income $(108,900) $(43,758) $511 $36,085 $53,842 Plus Depreciation Expense $60,000 $60,000 $60,000 $60,000 $60,000 Annual Cash Flow $(48,900) $16,242 $60,511 $96,085 $113,842 Discounted Cash Flow (44,454.55) 13,423.14 45,462.69 65,627.36 70,687.05 Cumulative Discounted Cash Flow (44,454.55) (31,031.40) 14,431.28 80,058.65 150,745.70 A B C D E F G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35...
View Full Document

This note was uploaded on 09/21/2011 for the course BITM 215 taught by Professor Ross during the Spring '08 term at SUNY Albany.

Ask a homework question - tutors are online