Maxs Grocery Mart- Projected Income Statement Research Paper

Maxs Grocery Mart- Projected Income Statement - Research Paper Example I have read the CQU policy on plagiarism and understand its implication. I can produce a hard copy of this assignment within 24 hours if requested. Max's Grocery Mart is a family-owned business that has been experiencing a stable growth since its inception. Mr. Leroy Feronti, the owner of the business now wants to expand the business by renovating the grocery mart building with a bank loan. To help the application for bank loan, Mr. Feronti has prepared the pro forma financial statements for three years from 2007 onwards. The data of the accounting period 2006 are taken as the base, upon which the projections for 2007, 2008 and 2009 are based. The bank has demanded to prepare Pro forma Income Statement for three years on the basis of the likely growth and other important parameters of the firm. The statements are prepared projecting the future likely growth of the firm. The growth rates estimated are 7.25, 7.75 and 8.25 annually. The projected in come statement exhibits that at 7.25% growth rate, the firm will be able to achieve $ 477175 net income. Similarly, for the year 2008 and 2009, the projected net income is $479400 and $481624 respectively. Mr. Feronti is also asked to prepare projected income statement to reflect the changes in sales at various rates. The income statement is also prepared to reflect the impact on the net income of the increase in workers hourly rate from $12 to $14 and Mr. Feronti's salary is reduced from 15% to 8% of Gross Profit. The impact of increase in the number of workers from 17 to 19 is also projected through income statement. Table of Contents Introduction 4 Discussion 5 Projected Income Statement for the Year 2007, 2008 and 2009 7 Statement Showing the Impact on Net Profit on account of 9% growth in sales 9 Statement Showing the Impact on Net Profit on account of 9.5% growth in sales 10 Statement Showing the Impact on Net Profit on account of 10% growth in sales 11 Statement Showing the Impact on Net Profit on account of 4% growth in sales 12 Statement Showing the Impact on Net Profit on account of 5% growth in sales 13 Statement Showing the Impact on Net Profit on account of 5.5% growth in sales 14 Pie Chart 16 Statement showing the impact on Net Income of the changes in employee hourly rate and Mr. Feronti's Salary 17 Statement showing the impact on Net Income of the changes in the no. of employees from 17 to 19 18 Recommendations 20 Appendix 21 Introduction Max's Grocery Mart is a family-owned business that has been experiencing a stable growth since its inception. Mr. Leroy Feronti, the owner of the business now wants to expand the business by renovating the grocery mart building with a bank loan. To finance the business expansion, Mr. Feronti has approached a bank. The bank wants Mr. Feronti to prepare Pro forma Income Statement for three years to substantiate the loan allocation as a formality. The pro forma financial statements are usually prepared in line with the likely changes in the financial affairs of a firm. Mr. Feronti prepared the statements taking into account the various changes that are likely to incur in his business. First, Income statement is prepared to reflect the growth at 7.25%, 7.75 %and 8% rates. The projected in come statement exhibits that at 7.25%

Mind Map and a Critical Review Essay Example | Topics and Well Written Essays - 1000 words

Mind Map and a Critical Review - Essay Example They argued that the management of the disease requires a combined effort of several groups of individuals involved in the health sector such as the nurses, dieticians, podiatrist and those dealing with retinal screening services and the patients are also not left behind in the bid to take charge of the disease. Funding towards the control of diabetes in New Zealand is mainly done by an organization known as CarePlus which offers finances to key organizations that are charged with the responsibility of taking care of people who suffer from terminal illnesses as well as chronic conditions (GUTHRIE, D. 2002, 67). The study demonstrated that preliminary consultations with the nurses consisted of physical examination of the patients, proper distribution of health records of to other health professionals, referrals, timely completion of checklists before the patients had opportunity to meet with other healthcare service providers. Thus the nurses played a very vital role in taking care as well as managing the patients owing to the fact that they are the ones who are deeply concerned with the consultation aspect of the patients. The main challenge that faced the nurses is that they felt overburdened by the amount of responsibilities that were geared towards them and too many expectations from the patients as well as other medical practitioners. The authors finally concluded that the role of the nurses reliable but was however misguided by the duration of time that was needed to have them complete all their tasks within the stipulated time. The article confirms the works of previous writers on th e role of nurses in the management of diabetes patients but disagrees on the need to have them do most of the tasks that may seen overwhelming to them (RICE, R. 2006, 09-45). The author aimed at detailing the role of nurses in the management of people who are suffering from type 2 diabetes mellitus. She argued that the nurses are in a better