additional specics omitted page 4 sample plan amt

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Unformatted text preview: 0% of the total sales by the third year. 2.0 Company Summary AMT is a computer reseller based in the Uptown area. It was founded as a consulting-oriented VAR, became a reseller to fill the market need for personal computers, and is emphasizing service and support to differentiate itself from more price-oriented national chains. 2.1 Company Ownership AMT is a privately-held C corporation owned in majority by its founder and president, Ralph Jones. There are six part owners, including four investors and two past employees. The largest of these (in percent of ownership) are Frank Dudley, our attorney, and Paul Karots, our public relations consultant. Neither owns more than 15%, but both are active participants in management decisions. 2.2 Company History AMT has been caught in the vise grip of margin squeezes that have affected computer resellers worldwide. Although the chart titled Past Performance shows that we have had healthy growth in sales, it also shows declining gross margin and declining profits. The more detailed numbers in the following table include other indicators of some concern: The gross margin % has been declining steadily, as we see in the chart. Inventory turnover is getting steadily worse. All of these concerns are part of the general trend affecting computer resellers. The margin squeeze is happening throughout the computer industry worldwide. Page 2 SAMPLE PLAN: AMT, INC. SP2.5 Past Performance Sales Gross Margin Gross % (calculated) Operating Expenses Collection period (days) Inventory turnover Prior Year $3,773,889 $1,189,495 31.52% $752,083 48 7 Balance Sheet Short-term Assets Cash Accounts receivable Inventory Other Short-term Assets Total Short-term Assets Long-term Assets Capital Assets Accumulated Depreciation Total Long-term Assets Total Assets Previous Year $4,661,902 $1,269,261 27.23% $902,500 52 6 Last Year $5,301,059 $1,127,568 21.27% $1,052,917 65 5 Last Year $55,432 $395,107 $251,012 $25,000 $726,551 $350,000 $50,000 $300,000 $1,026,551 Capital and Liabilit...
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This note was uploaded on 01/26/2014 for the course BUINESS 102 taught by Professor Unknown during the Winter '09 term at University of Phoenix.

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