Ed's Whitegoods: Financial Projections for 2014 and 2015 (Income)

This project presents the income statement projections for Ed's Whitegoods for the years 2014 and 2015, along with a monthly cash position projection for 2015. The 2014 projections include detailed breakdowns of sales, purchases, gross income, and various operating expenses (phone service, electricity, gas, water, insurance, payroll, cleaning, finance costs, advertising, rent, petrol, accountant fees, maintenance, bank fees, office supplies) for each month. The document also provides calculations for sales, purchases, and expenses for October, November, and December 2014. The 2015 projections are derived from the 2014 data, incorporating a 12% decrease in sales due to decreased consumer confidence, a 3% decrease due to increased sale prices, and a 5% increase in purchase costs. The document also details the calculation of monthly payroll costs for 2015, considering a staff layoff. Finally, a monthly cash position projection for 2015 is provided, including opening and closing cash balances, sales receipts, and payments for purchases and expenses.

Ed's Whitegoods
Income Statement
Projections for the year 2014
(Amount in $)
Particulars Jan Feb March April May June July Aug Sept Oct Nov Dec Total
A. Sales 120,00
0
120,00
0
120,00
0
120,00
0
120,00
0
120,00
0
120,00
0
120,00
0
120,00
0
111,83
7 103,763 133,86
0
1,429,46
0
B.
Purchases 53,000 53,000 53,000 53,000 53,000 53,000 53,000 53,000 53,000 40,605 26,910 55,335 599,850
C. Gross
Income (A-
B)
67,000 67,000 67,000 67,000 67,000 67,000 67,000 67,000 67,000 71,232 76,853 78,525 829,610
D. Expenses
Phone
Service 65 65 65 65 65 65 65 65 65 65 65 65 783
Electricity 133 133 133 133 133 133 133 133 133 133 133 133 1,597
Gas 50 50 50 50 50 50 50 50 50 50 50 50 603
Water 46 46 46 46 46 46 46 46 46 46 46 46 552
Insurance 109 109 109 109 109 109 109 109 109 108 108 108 1,306
Payroll 38,980 38,980 38,980 38,980 38,980 38,980 38,980 38,980 38,980 38,750 38,750 38,750 467,071
Cleaning 71 71 71 71 71 71 71 71 71 71 71 71 854
Finance
Costs 138 138 138 138 138 138 138 138 138 138 138 138 1,657
Advertising 47 47 47 47 47 47 47 47 47 47 47 47 563
Rent 2,096 2,096 2,096 2,096 2,096 2,096 2,096 2,096 2,096 2,083 2,083 2,083 25,111
Petrol 47 47 47 47 47 47 47 47 47 47 47 47 563
Accountants
Fees 31 31 31 31 31 31 31 31 31 31 31 31 372
Maintenanc
e 118 118 118 118 118 118 118 118 118 117 117 117 1,411
Bank Fees 18 18 18 18 18 18 18 18 18 18 18 18 211
Office
Supplies 50 50 50 50 50 50 50 50 50 50 50 50 603
Total 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 41,752 41,752 41,752 503,256

Expenses
(D)
Net
Income (C-
D)
25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 29,480 35,101 36,773 326,354
Calculation of Sales, Purchases and Expenses
October
2014
Particulars
No. of
Units
Sold
Sales
price
per unit
Cash
Sales
No. of
Units
purchase
d
Purchase
price
per unit
Total
Purchases Expenses Amount
in $
Fridges 12 1,600.00 19,200.00 10 800.00 8,000.00 Phone Service 65.00
Freezers 15 800.00 12,000.00 15 250.00 3,750.00 Electricity 132.50
Microwaves 13 470.00 6,110.00 10 150.00 1,500.00 Gas 50.00
Range
Hoods 11 190.00 2,090.00 10 80.00 800.00 Water 45.83

Ovens 6 2,100.00 12,600.00 5 900.00 4,500.00 Insurance 108.33
Cook
Tops 16 560.00 8,960.00 15 200.00 3,000.00 Payroll 38,750.0
0
Dishwashers 18 990.00 17,820.00 15 450.00 6,750.00 Cleaning 70.83
Vacuums 22 390.00 8,580.00 20 130.00 2,600.00 Finance Costs 137.50
Coffee
Makers 14 600.00 8,400.00 10 250.00 2,500.00 Advertising 46.67
Toasters 25 99.00 2,475.00 20 35.00 700.00 Rent 2,083.33
Irons 5 156.00 780.00 5 78.00 390.00 Petrol 46.67
Mixers 16 89.00 1,424.00 15 45.00 675.00 Accountants
Fees 30.83
Deep
Fryers 13 99.00 1,287.00 10 45.00 450.00 Maintenance 117.08
Portable
ACs 4 350.00 1,400.00 - 180.00 - Bank Fees 17.50
Hairdryers - 35.00 - - 9.00 - Office
Supplies 50.00
Irons 14 45.00 630.00 10 19.00 190.00 Total
Expenses
41,752.0
7
Scale
Sets 14 24.00 336.00 10 12.00 120.00
Kettles 13 78.00 1,014.00 10 34.00 340.00
Small
Bins 15 40.00 600.00 10 13.00 130.00
Large
Bins 7 60.00 420.00 5 22.00 110.00
Wine
Coolers 9 299.00 2,691.00 15 130.00 1,950.00
Washing
Machines 5 340.00 1,700.00 5 220.00 1,100.00
Dryers 4 330.00 1,320.00 5 210.00 1,050.00
Total Sales
111,837.0
0 40,605.00

November
2014
Particulars
No. of
Units
Sold
Sales
price
per unit
Cash
Sales
No. of
Units
purchase
d
Purchase
price
per unit
Total
Purchases Expenses Amount
in $
Fridges 8 1,600.00 12,800.00 5 800.00 4,000.00 Phone Service 65
.00
Freezers 10 800.00 8,000.00 5 250.00 1,250.00 Electricity 132
.50
Microwaves 6 470.00 2,820.00 5 150.00 750.00 Gas 50
.00
Range
Hoods 15 190.00 2,850.00 10 80.00 800.00 Water 45
.83
Ovens 5 2,100.00 10,500.00 5 900.00 4,500.00 Insurance 108
.33
Cook
Tops 18 560.00 10,080.00 10 200.00 2,000.00 Payroll 38,750.
00
Dishwashers 18 990.00 17,820.00 10 450.00 4,500.00 Cleaning 70
.83
Vacuums 26 390.00 10,140.00 20 130.00 2,600.00 Finance Costs 137
.50
Coffee
Makers 18 600.00 10,800.00 10 250.00 2,500.00 Advertising 46
.67
Toasters 13 99.00 1,287.00 10 35.00 350.00 Rent 2,083.
33
Irons 7 156.00 1,092.00 5 78.00 390.00 Petrol 46
.67
Mixers 11 89.00 979.00 10 45.00 450.00 Accountants
Fees
30
.83
Deep
Fryers 9 99.00 891.00 5 45.00 225.00 Maintenance 117
.08
Portable
ACs 6 350.00 2,100.00 5 180.00 900.00 Bank Fees 17
.50

Hairdryers 2 35.00 70.00 - 9.00 - Office
Supplies
50
.00
Irons 16 45.00 720.00 15 19.00 285.00 Total
Expenses
41,752.
07
Scale
Sets 18 24.00 432.00 15 12.00 180.00
Kettles 14 78.00 1,092.00 10 34.00 340.00
Small
Bins 14 40.00 560.00 10 13.00 130.00
Large
Bins 17 60.00 1,020.00 5 22.00 110.00
Wine
Coolers 10 299.00 2,990.00 5 130.00 650.00
Washing
Machines 10 340.00 3,400.00 - 220.00 -
Dryers 4 330.00 1,320.00 - 210.00 -
Total Sales
103,763.0
0 26,910.00
December 2014
Particulars
No. of
Units
Sold
Sales
price
per unit
Cash
Sales
No. of
Units
purchase
d
Purchase
price
per unit
Total
Purchases Expenses Amount
in $
Fridges 16 1,600.00 25,600.00 10 800.00 8,000.00 Phone Service 65
.00
Freezers 15 800.00 12,000.00 10 250.00 2,500.00 Electricity 132
.50
Microwaves 6 470.00 2,820.00 10 150.00 1,500.00 Gas 50
.00

Range
Hoods 8 190.00 1,520.00 15 80.00 1,200.00 Water 45
.83
Ovens 8 2,100.00 16,800.00 10 900.00 9,000.00 Insurance 108
.33
Cook
Tops 14 560.00 7,840.00 15 200.00 3,000.00 Payroll 38,750.
00
Dishwashers 14 990.00 13,860.00 15 450.00 6,750.00 Cleaning 70
.83
Vacuums 29 390.00 11,310.00 30 130.00 3,900.00 Finance Costs 137
.50
Coffee
Makers 26 600.00 15,600.00 25 250.00 6,250.00 Advertising 46
.67
Toasters 19 99.00 1,881.00 20 35.00 700.00 Rent 2,083.
33
Irons 9 156.00 1,404.00 10 78.00 780.00 Petrol 46
.67
Mixers 16 89.00 1,424.00 18 45.00 810.00 Accountants
Fees
30
.83
Deep
Fryers 13 99.00 1,287.00 15 45.00 675.00 Maintenance 117
.08
Portable
ACs 8 350.00 2,800.00 10 180.00 1,800.00 Bank Fees 17
.50
Hairdryers 1 35.00 35.00 5 9.00 45.00 Office
Supplies
50
.00
Irons 21 45.00 945.00 25 19.00 475.00 Total
Expenses
41,752.
07
Scale
Sets 22 24.00 528.00 25 12.00 300.00
Kettles 19 78.00 1,482.00 20 34.00 680.00
Small
Bins 31 40.00 1,240.00 30 13.00 390.00
Large
Bins 16 60.00 960.00 15 22.00 330.00
Wine
Coolers 16 299.00 4,784.00 15 130.00 1,950.00

Washing
Machines 15 340.00 5,100.00 10 220.00 2,200.00
Dryers 8 330.00 2,640.00 10 210.00 2,100.00
Total Sales
133,860.0
0 55,335.00
Ed's Whitegoods
Income Statement
Projections for the year 2015
(Amount in $)
Particulars Jan Feb March April May June July Aug Sept Oct Nov Dec Total
A. Sales 101,25
3
101,25
3
101,25
3
101,25
3
101,25
3
101,25
3
101,25
3
101,25
3
101,25
3
101,25
3
101,25
3
101,25
3
1,215,04
1
B. Purchases 52,487 52,487 52,487 52,487 52,487 52,487 52,487 52,487 52,487 52,487 52,487 52,487 629,843
C. Gross
Income (A-
B)
48,767 48,767 48,767 48,767 48,767 48,767 48,767 48,767 48,767 48,767 48,767 48,767 585,199
D. Expenses
Phone
Service 65 65 65 65 65 65 65 65 65 65 65 65 780
Electricity 133 133 133 133 133 133 133 133 133 133 133 133 1,590
Gas 50 50 50 50 50 50 50 50 50 50 50 50 600
Water 46 46 46 46 46 46 46 46 46 46 46 46 550
Insurance 108 108 108 108 108 108 108 108 108 108 108 108 1,300
Payroll 34,833 34,833 34,833 34,833 34,833 34,833 34,833 34,833 34,833 34,833 34,833 34,833 418,000
Cleaning 71 71 71 71 71 71 71 71 71 71 71 71 850
Finance
Costs 138 138 138 138 138 138 138 138 138 138 138 138 1,650
Advertising 47 47 47 47 47 47 47 47 47 47 47 47 560
Rent 2,083 2,083 2,083 2,083 2,083 2,083 2,083 2,083 2,083 2,083 2,083 2,083 25,000
Petrol 47 47 47 47 47 47 47 47 47 47 47 47 560

Accountants
Fees 31 31 31 31 31 31 31 31 31 31 31 31 370
Maintenance 117 117 117 117 117 117 117 117 117 117 117 117 1,405
Bank Fees 18 18 18 18 18 18 18 18 18 18 18 18 210
Office
Supplies 50 50 50 50 50 50 50 50 50 50 50 50 600
Total
Expenses
(D)
37,835 37,835 37,835 37,835 37,835 37,835 37,835 37,835 37,835 37,835 37,835 37,835 454,025
Net
Income (C-
D)
10,931 10,931 10,931 10,931 10,931 10,931 10,931 10,931 10,931 10,931 10,931 10,931 131,174
Note 1: Calculation of Sales for the year 2015
Particulars (Amount in $)
Total Sales in the year 2014 1,429,460
Less: 12% decrease in sales due to decrease in consumer confidence 171,535
Less: 3% decrease in sales due to increase in sale price 42,884
Expected sales in the year 2015 1,215,041
Therefore, expected average monthly sales in the year 2015 101,253
Note 2: Calculation of Purchases for the year 2015
Particulars (Amount in $)
Total Purchases in the year 2014 599,850
Add: Increase in purchase cost by 5% 29,993
Expected purchases in the year 2015 629,843
Therefore, expected average monthly purchase in the year 2015 52,487

Note 3: Calculation of Monthly Payroll cost for the year 2015
Particulars (Amount in $)
Monthly Payroll cost in the year 2014 38,750
Less: monthly salary of a staff who is expected to be laid off (47000/12) 3,917
Monthly Payroll cost in the year 2015 34,833
Note 4: Other expenses in 2015 are assumed to be same as in the year 2014.
Ed's Whitegoods
Monthly Cash Position
Projections for the year 2015
Particulars January February March April May June July August September October November December
Opening Cash
&
Bank Balance
343,782 354,713 365,644 376,575 387,506 398,437 409,369 420,300 431,231 442,162 453,093 464,024
Add: Receipts
Sales 101,253 101,253 101,253 101,253 101,253 101,253 101,253 101,253 101,253 101,253 101,253 101,253
Less:
Payments
Purchases 52,487 52,487 52,487 52,487 52,487 52,487 52,487 52,487 52,487 52,487 52,487 52,487
Expenses 37,835 37,835 37,835 37,835 37,835 37,835 37,835 37,835 37,835 37,835 37,835 37,835
Closing Cash
&
Bank
Balance
354,713 365,644 376,575 387,506 398,437 409,369 420,300 431,231 442,162 453,093 464,024 474,955