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Limitation of Balance Sheet in a Business

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					                                       a3c9708d-4120-48ad-afd4-fcd109b285b0.xls




                  Current Balance Sheet

                  ASSETS Sheet 1

A. Current Assets
     1. Cash on Hand and in Bank               276.00
     2. Accounts Receivable (Nett)           79517.00
     3. Merchandise (Nett)                    4878.00
     4. Chemicals (Nett)                         0.00
     5. Motor Vehicles                       23022.00
     6. Total Corrent Assets                              107693.00

B. Fixed Assets
      7. Cameras, Lights etc.                40279.00
      8. Furniture & Fittings (Nett)         16564.00
      9. Prepaid Expenses                        0.00
      10. Land                                   0.00
      11. Buildings (Nett)                       0.00
      12. Total Fixed Asserts                              56843.00
      13. Total Asserts                                   164536.00

                  LIABILITIES & NET WORTH

C. Liabilities (Current)
      14. Trade Accountrs Payable            36967.00
      15. Wedding Deposits                    3500.00
      16. Accrued Taxes                          0.00
      17. Long term Loans Payable            80679.00
      18. Total current liabilities                       121146.00

D. Liabilities (Other)
      19. Mortages                               0.00
      20. Other Liabilities                      0.00
      21. Total other Liabilities                              0.00
      22. Total Libilities                                121146.00

E. Net Worth
     23. Proprietorship (how much do you own)              43390.00
     24. Total Libilities & Net Worth                     164536.00




                                                        Page 1
                                   Current Profit & Loss Sheet and Averages 2

                                       Average Studio                     Your Studio
                                      1          2         3                 4           5          6       7      8
     Sales                                               %
 1 Sales Total                               109000.00 100                453208.00                 100
 2                    Wedding        6758.00            6.20                   0.00                 0.00           Y
 3                      Portrait    66054.00           60.60              453208.00               100.00           Y
 4                  Commercial      30629.00           28.10                   0.00                 0.00           Y
 5                      School          0.00            0.00                   0.00                 0.00           Y
 6                      Copies       3379.00            3.10                   0.00                 0.00           Y
 7                     Framing          0.00            0.00                   0.00                 0.00           Y
 8                        Miss       2180.00            2.00                   0.00                 0.00           Y
 9                       Sales          0.00            0.00                   0.00                 0.00           Y
                                                        100                                       100.00

   Prod Creation Costs
10            Begin Inventory        1090.00             1.00              17051.00
11            Purchases Film         4251.00             3.90                  0.00                 0.00           Y
12              Resale Items         2943.00             2.70              67323.00                14.85           Y
13                    Albums         3270.00             3.00                  0.00                 0.00           Y
14                   Framing         2180.00             2.00                  0.00                 0.00           Y
15              Lab Materials         545.00             0.50                  0.00                 0.00           N
16                      Other        1853.00             1.70                  0.00                 0.00           Y
17              End Inventory        1526.00             1.40              10507.00       6544      1.44           N
18 Cost of Mat used                            14606.00 13.40                          73867.00            16.30

19     Photog & Direct Labour        8284.00               7.60            44917.00                 9.91           N
20          Color Lab Wedding       30084.00              27.60                0.00                 0.00           Y
21           Color Lab Portrait         0.00               0.00           107933.00                23.82           Y
22      Color Lab Commercial            0.00               0.00                0.00                 0.00           Y
23                  Lab Freight         0.00               0.00              545.00                 0.12           Y
24            Sub Contract Exp        872.00               0.80                0.00                 0.00           N
25        Insurance Equipment           0.00               0.00             5658.00                 1.25           N
26    Equipment Rent or Lease         436.00               0.40                0.00                 0.00           N
27                 Equip R & M        109.00               0.10                0.00                 0.00           N

28 Product Creation Cost                       54391.00 49.90                         232920.00            51.39
      (Cost of goods sold)

29            GROSS MARGIN                                        50.10                                    48.61

     Overhead
30                         Rent      5995.00               5.50            44947.00                 9.92           N
31                       Power        763.00               0.70             4351.00                 0.96           N
32                        Water       218.00               0.20                0.00                 0.00           N
33                       R&M          763.00               0.70             6242.00                 1.38           N
34                     Cleaning         0.00               0.00             4353.00                 0.96           N
35           Insurance Premises       763.00               0.70                0.00                 0.00           N
36               Rates Premises       218.00               0.20             2766.00                 0.61           N

37 Total Occupancy                              8720.00            8.00                62659.00            13.83

38         Advert & Promotion        2289.00               2.10            15640.00                 3.45           Y
39     Travel & Entertainment        1090.00               1.00             4487.00                 0.99           N
40           Telephone Rental         654.00               0.60            11928.00                 2.63           N
41            Telephone Calls        1090.00               1.00                0.00                 0.00           N
42          Freight & Postage         763.00               0.70             2864.00                 0.63           N
43                   Seminars           0.00               0.00             2999.00                 0.66           N
44 Market Costs (incl Wages)         1526.00               1.40                0.00                 0.00           N
45 Total Sales + Marketing                      7412.00            6.80                37918.00             8.37

46     Interest & Bank Charges       2071.00               1.90            12417.00                 2.74           N
47                   Accountant      2616.00               2.40             3866.00                 0.85           N
48        Car Expense Repairs         436.00               0.40             5446.00                 1.20           N
49          Car Expense Petrol       1090.00               1.00                0.00                 0.00           N
50    Car Expense Insur & Reg         545.00               0.50                0.00                 0.00           N
51               Office supplies     1199.00               1.10             1599.00                 0.35           N
52           Computor Supplies          0.00               0.00              753.00                 0.17           N
53                Office Wages          0.00               0.00                0.00                 0.00           N
54      General Office Expense       2289.00               2.10             5551.00                 1.22           N
55                         GST          0.00               0.00            18355.00                 4.05           N
56                         ACC       2071.00               1.90             1542.00                 0.34           N
57               Owners Salary      22890.00              21.00            56220.00                12.40           Y

58 Total Manag & Admin                         35207.00           32.30               105749.00            23.33

59           Depreciation Car        1090.00               1.00                0.00                 0.00         N
60     Depreciation Equipment        1744.00               1.60    2.60    20253.00                 4.47    4.47 N

61 Total Overhead Expense                      54173.00           49.70               226579.00            49.99
62 Pre Tax Profit   436.00   0.40   -6291.00   -1.39   -1.39
                                                100
                                             a3c9708d-4120-48ad-afd4-fcd109b285b0.xls


FINANCIAL STRENGTH ANALYSIS
Total current assets divided by total current liabilities
This is the current ratio. Presumably, the larger the ratio the better is
the position of creditors since more liquid assets are available to cover
current debt.                                                                           0.89 to 1
However, too large a ratio may indicate an excess of non working
assets.

The rule of thumb is 2 to 1., but as long as the firm has positive
operating momentum, any positive ratio may be acceptable, particularly
if the bulk of the current assets is cash and liquid securities.

LONG TERM DEBT DIVIDED BY CAPITALIZATION (net
assets)
Many lending aggreements contain covenants regulating maximum debt
exposure in these terms.                                                           65.03%

For most small firms, it is the combined ratio of the firm and owners that
counts. Capitalization is essentially total assets minus current liabilities.
To be safe, the calculation should not exceed 50 percent.

TOTAL DEBT DIVIDED BY NET WORTH (owners
equity)
Essentially, this reflects how much creditor capital has been contributed
relative to equity capital. If the ratio exceeds 100 percent, lenders have
the more exposure than the owners.                                                279.20%
This alone is not a major weakness unless the debt service cost is to
great to be accommodated by the available gross margin.

RATE OF RETURN ON INVESTMENT
This is the most widely employed measure of business performance.
When applied to small, entrepreneurial firms it loses some of its
meaning since the key figure of profit is largely absorbed by owner                          Profit
compensation.                                                                       -1.39% Margin
Even with that limitation it remains a viable indicator of management
effectiveness. R. O. I. is composed of three separate calculations: profit                   Asset
margin, asset turnover and leverage.                                                    2.75 Turnover
                                                                                             Return on
Profit margin multiplied by asset turnover equals return on assets                           Asset
employed, a measure of resource management skill.                                   -3.82% Employed
A target of between 7 and 12 percent is reasonably sound. As more
debt is employed, the leverage factor increases.                                        3.79 Leverage
Leverage multiplied by return on assets employed equals ROI.
Performance of between 16 and 25 percent is good unless there is                             Return on
excessive reliance on leverage.                                                   -14.50% Investment

Value of your Business
The value of a business is normally considered to be a equasion based
on the profit that is left after all wages have been paid including a
manager in the place of the owner.This figure is then multiplied by a
factor of between 1.6 to 3.
Sometimes where it is a small business some people are prepared to
purchase a business based on what total profit is made INCLUDING the
owners wage and sometimes the Wife's wage this total figure then
                                                                                  -$12,582 from this to
becomes the asking price. Great if you can get it
but not a basis I would suggest anyone purchase a business                        -$18,873




                                                                     Page 4
                                                         a3c9708d-4120-48ad-afd4-fcd109b285b0.xls




        Money & Turnover Required 3

                                                                                                        Price
                                  %            $                  You can Increase your Price           Increase
        Present Turnover                    453208.00             New Turnover               115000        25.37
        Fixed Overheads            0.00          0.00             Fixed Overheads               0.00
        Variable Overheads         0.00          0.00             Variable Overheads            0.00
        Salary Owner               0.00          0.00             Salary Owner              85000.00
        Profit Coy                 0.00          0.00             Profit Coy                30000.00
        % Staff Wages =            9.91      44917.00

Hours                        $ required     %of T/O                                      $115,000.00    Turnover Required
                                                                                       Amount of T/O    Per Hr
   16                     Staff  7040.00         1.55                                       8400.18        11.67
    3                     Staff  1080.00         0.24                                       1288.66          9.55
   40                     Staff  3258.87         0.72                                       3888.51          2.16
    0                     Staff     0.00         0.00                                            0.00    #DIV/0!
    0                     Staff     0.00         0.00 Staff $ to go                              0.00    #DIV/0!
             Total Staff Wage 11378.87           2.51 33538.13
   50                     You 85000.00          18.76                                      101422.65     45.08
                         Profit 30000.00         6.62                                      115000.00 T/O
              Wages & Profit 126378.87          27.89                                         Wages     Factor      %
              Present Wages 44917.00            22.32                                       96378.87      1.19      83.81
                 Difference %                    5.57

 109 Hours Worked per week
   45 Studio open in weeks
4905 Hours worked in Studio per year                                                          $23.45 Amount per hour per person



                                  45       Studio open in weeks per year




                                                                           Page 5
                                  a3c9708d-4120-48ad-afd4-fcd109b285b0.xls




                   Turnover Increase Required


                                  Your present turnover is.          453208.00
                                 Your fixed overheads are.                0.00
                             Your variable overheads are.                 0.00
                                     Your current salary is.              0.00
                     The profit your company is making is.                0.00

                     You state that you would like to earn            85000.00
           You would like your company to have a profit of            30000.00

       Your first choice may be to increase your prices by           25.37 %
This would be easy to do, but you would probably face a drop off in custom.

     The better approach would be to do more work for more money.

 To meet the increase in income you require you will need
                    to increase your turnover to a figure of   $115,000.00
                                                                                    Turnover Per Hour
                    On a turnover basis your staff member Staff                        8400.18     11.67
                    On a turnover basis your staff member Staff                        1288.66      9.55
                    On a turnover basis your staff member Staff                        3888.51      2.16
                    On a turnover basis your staff member Staff                            0.00 #DIV/0!
                    On a turnover basis your staff member Staff                            0.00 #DIV/0!
          You on the other hand will be responsible for an turnover of :-           101422.65      45.08
Or alternatively every member of your staff including your self will need to earn per hour        $23.45




                                                     Page 6
                                                      a3c9708d-4120-48ad-afd4-fcd109b285b0.xls




                                                      New Profit & Loss Sheet 4
Old Balance Sheet

Sales                                                 Sales
Sales Total                      453208.00        1 Sales Total                        115000.00                 100
                     Wedding          0.00   Y    2                        Wedding          0.00                 0.00
                      Portrait   453208.00   Y    3                         Portrait   115000.00               100.00
                   Commercial         0.00   Y    4                      Commercial         0.00                 0.00
                      School          0.00   Y    5                         School          0.00                 0.00
                      Copies          0.00   Y    6                         Copies          0.00                 0.00
                     Framing          0.00   Y    7                        Framing          0.00                 0.00
                        Miss          0.00   Y    8                           Miss          0.00                 0.00
                       Sales          0.00   Y    9                          Sales          0.00                 0.00
                                                                                                               100.00

Production Creation Costs                           Production Creation Costs
              Begin Inventory     17051.00   N   10               Begin Inventory       17051.00
              Purchases Film          0.00   Y   11               Purchases Film            0.00                 0.00
                Resale Items      67323.00   Y   12                 Resale Items        17082.98                14.85
                      Albums          0.00   Y   13                       Albums            0.00                 0.00
                     Framing          0.00   Y   14                      Framing            0.00                 0.00
                Lab Materials         0.00   N   15                 Lab Materials           0.00                 0.00
                        Other         0.00   Y   16                         Other           0.00                 0.00
               End Inventory      10507.00   N   17                End Inventory        10507.00       6544      5.69
Cost of Mat used                  14606.00       18 Cost of Mat used                                23626.98             20.55

     Photog & Direct Labour       44917.00   N   19        Photog & Direct Labour       44917.00                39.06
          Color Lab Wedding           0.00   Y   20             Color Lab Wedding           0.00                 0.00
           Color Lab Portrait    107933.00   Y   21              Color Lab Portrait     27387.63                23.82
      Color Lab Commercial            0.00   Y   22         Color Lab Commercial            0.00                 0.00
                  Lab Freight       545.00   Y   23                     Lab Freight       138.29                 0.12
            Sub Contract Exp          0.00   N   24               Sub Contract Exp          0.00                 0.00
        Insurance Equipment        5658.00   N   25           Insurance Equipment        5658.00                 4.92
    Equipment Rent or Lease           0.00   N   26       Equipment Rent or Lease           0.00                 0.00
                 Equip R & M          0.00   N   27                    Equip R & M          0.00                 0.00

Product Creation Cost             54391.00       28 Product Creation Cost                           78100.93             88.46
    (Cost of goods sold)                                (Cost of goods sold)

              GROSS MARGIN           50.10       29                GROSS MARGIN                                          11.54

Overhead                                              Overhead
                         Rent     44947.00   N   30                            Rent     44947.00                39.08
                       Power       4351.00   N   31                          Power       4351.00                 3.78
                        Water         0.00   N   32                           Water         0.00                 0.00
                       R&M         6242.00   N   33                          R&M         6242.00                 5.43
                     Cleaning      4353.00   N   34                        Cleaning      4353.00                 3.79
           Insurance Premises         0.00   N   35              Insurance Premises         0.00                 0.00
               Rates Premises      2766.00   N   36                  Rates Premises      2766.00                 2.41

Total Occupancy                    8720.00       37 Total Occupancy                                 62659.00             54.49

          Advert & Promotion      15640.00   Y   38           Advert & Promotion         3968.60                 3.45
       Travel & Entertainment      4487.00   N   39        Travel & Entertainment        4487.00                 3.90
            Telephone Rental      11928.00   N   40             Telephone Rental        11928.00                10.37
              Telephone Calls         0.00   N   41               Telephone Calls           0.00                 0.00
            Freight & Postage      2864.00   N   42             Freight & Postage        2864.00                 2.49
                     Seminars      2999.00   N   43                      Seminars        2999.00                 2.61
 Marketing Costs (incl Wages)         0.00   N   44 Marketing Costs (incl Wages)            0.00                 0.00
Total Sales + Marketing            7412.00       45 Total Sales + Marketing                         26246.60             22.82

     Interest & Bank Charges      12417.00   N   46        Interest & Bank Charges      12417.00                10.80
                   Accountant      3866.00   N   47                      Accountant      3866.00                 3.36
         Car Expense Repairs       5446.00   N   48            Car Expense Repairs       5446.00                 4.74
          Car Expense Petrol          0.00   N   49             Car Expense Petrol          0.00                 0.00
    Car Expense Insur & Reg           0.00   N   50       Car Expense Insur & Reg           0.00                 0.00
               Office supplies     1599.00   N   51                  Office supplies     1599.00                 1.39
           Computor Supplies        753.00   N   52              Computor Supplies        753.00                 0.65
                Office Wages          0.00   N   53                   Office Wages          0.00                 0.00
      General Office Expense       5551.00   N   54         General Office Expense       5551.00                 4.83
                         GST      18355.00   N   55                            GST      18355.00                15.96
                         ACC       1542.00   N   56                            ACC       1542.00                 1.34
               Owners Salary      56220.00   Y   57                  Owners Salary      85000.00                73.91

Total Manag & Admin               35207.00       58 Total Manag & Admin                            134529.00            116.98

              Depreciation Car        0.00 N     59                 Depreciation Car        0.00                 0.00
        Depreciation Equipment    20253.00 N     60           Depreciation Equipment    20253.00                17.61

Total Overhead Expense            54173.00       61 Total Overhead Expense                         243687.60            211.90

Pre Tax Profit                      436.00       62 Pre Tax Profit                                 -230415.51 #####




                                                                         Page 7
                                                                        45 Weeks Worked
                                                    Time analysis Sheet 5
                                                                                                                                     1    23.445 Per Hour           115000 New T/O

             Interview   Pre Sitting   Sitting To Lab   From Lab   Prep   Delivery   Orders to Lab   Make Ready   Delivery   Total       $ required   $ Charged   No for Year   Turnover    Total Hours   %      Future T/O
Weddings         1.00          0.50     3.00     0.24       0.00 1.00        0.50 3.00 1.00                1.00      0.24 11.48            269.15       1500.00            10 15000.00           114.8 8.57    9857.14
Portraits        1.00          0.24     1.00     0.16       0.00 0.50        2.00 0.00 0.50                1.00      0.24 6.64             155.68        800.00           200 160000.00           1328 91.43 105142.86
Passports                      0.00     0.00                                           0.00                0.00      0.50 0.50              11.72                           0      0.00              0 0.00       0.00
Teams            0.50          0.50     1.00     0.16            0.16        0.24 0.16 0.16                1.50      0.25 4.63             108.55                           0      0.00              0 0.00       0.00
Commercial       0.50          0.24     1.00     0.08       0.00 0.16        0.16 0.00 0.00                0.00      0.20 2.34              54.86                           0      0.00              0 0.00       0.00
Copies           0.24          0.00     0.00     0.08                                  0.00                0.24      0.16 0.72              16.88                           0      0.00              0 0.00       0.00
Framing          0.50          0.00     0.50     0.00       0.00 0.00        0.00 0.00 0.00                0.00      0.25 1.25              29.31                           0      0.00              0 0.00       0.00
                                                                                                                                                                                                       Total 115000.00
                                                                                                                You need to do
                                                                                                         Weddings       36.6                                                    175000.00     1442.80 Hours worked
                                                                                                          Portraits      675                                                                  4905.00 Paid Hours
                                                                                                         Passports         0                                                                    29.41 Productive
                                                                                                          Teams            0
                                                                                                        Commercial         0                                                                  3462.20 Wasted Hours
                                                                                                          Copies           0
                                                                                                          Framing          0                                                    If you do weddings of          40 10766.16
                                                                                                                                                                                            Port's =          670 104233.8
                                                                                                                                                                                                                    115000
                                                                                     You need to charge                  $ 79.7 Per Hour                            115000 Test
                                                                                                                           as you are only                            29.41 % Productive
         54.7 film &transproofs
       58.01 sitt         13922.4
      112.71      240     27050.4   1-20x16 & 2 10x8
                            40000   your wages
                             5000   Power etc
                             1000   Stamp & Stat
                            30000   Salesperson
                         103050.4   Total
              eg        7.4017698   Times
20x16tex       346.5     103050.4
10x8plain      41.45
                                                               Wedding Costing Sheet 5                                45 Weeks Worked


No of Photos              216                                                          No of Photos     216
No of films               6.00     216.00                                              No of films      6.00      216.00
Price per film            9.64      57.84                                              Price per film   9.64       57.84
Processing & Prints      31.00     186.00                                                              31.00
                                                                                       Processing & Prints        186.00
Album                   100.00     100.00                                              Album          100.00      100.00
No Pages                 20.00                                                         No Pages         0.00
Price Per Photo           5.33     213.20                                              Price Per Photo 5.33            0.00
Pages & overlay           7.00     140.00                                              Pages & overlay 7.00            0.00
Proof album              57.00      57.00                                              Proof album     57.00          57.00
Pages                     1.88      41.36                                              Pages            1.88          41.36                           Total
No Pages                 22.00                                                         No Pages        22.00                                           8.98
Total cost                        1011.40       #REF!       For 4x5 Album & 40 U Album Total cost                 658.20        #REF!   For proof Album

                      Interview   Pre         Sitting       To Lab   From Lab    Prep      Delivery   Orders to Lab           Make ReadyDelivery
Weddings                      1         0.5             4       0.24     0.00      1.00           0.5   0.5            0.5          0.5          0.24


Prints                  Qty       Cost          Total         10       16       Films
Film                      1.5       5.15         7.725         $0.52    $0.32 #REF!
Proofs                    1.5      14.55        21.825         $1.46 Markup           6
                                                               1.97 Per Exposure
#REF!

				
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