MUST USE FORMULAS ON EXCEL FOR PROJECT CREDIT!
Profit and Loss Amazing Restoration Company Next meeting will be after thursdays class 2019 Full year2020 YTD (8 months) bryan bryan bryan MikeMikeMikeIshaIshabilalbilaldylandylan Income1st2nd3rd4th5th6th7th8th9th10th 11th 12th Total Year 1% of Total % of Duct Work$ 150,000$ 78,000MonthMonthMonthMonthMonthMonthMonthMonthMonthMonthMonthMonthRevenueYear 2Revenue Mold Work$ 387,000$ 201,240Gross Sales or Receipts$ 51,000$ 51,000$ 51,000 Water Jobs$ 75,000$ 39,000Less: Cost of Goods Sold - Labor Total Income$ 612,000$ 318,240Less: Cost of Goods Sold - Materials Gross Profit Cost of Goods SoldLess Expenses Direct Cost - Labor$ 2,558$ 55,592Accounting & Legal Direct Cost - Subcontractors$ 394,243$ 37,547Advertising Direct Cost - Supplies & Materials$ 29,476$ 19,379Bad Debts Total Cost of Goods Sold$ 426,277$ 112,517Insurance Gross Profit$ 185,723$ 205,723Rent ExpensesRepairs & Maintenance Advertising & Promotional$ 5,889$ 7,199Salaries & Wages (to others) Amortization$ 1,100$ - 0Royalties Auto & truck expenses$ 680$ - 0Supplies Fuel$ 9,078$ 6,018Taxes & Licenses Repair & Maintenance$ 4,155$ 5,119Other Expenses Total Auto & truck expenses$ 13,913$ 11,136Total Expenses Bank Charges$ 241$ 1,145Net Profit Computer Software$ 1,801$ 1,730 Continuing Education$ 581$ 303 Disposal Fees$ 32$ 200 Dues & Subscriptions$ 17$ 262 Insurance$ 6,381$ 4,309 Insurance - Liability$ 2,853$ 3,810 Insurance-Auto & W/C$ 1,628$ 1,628 Interest Expense$ 4,079$ 7,915 Lab Fees$ 4,224$ 3,490 Legal & Professional Fees$ 8,191$ 5,152 Meals$ 298$ 1,128 Merchant Account Fees$ - 0 QuickBooks Payments Fees$ 4,472$ 3,192 Total Merchant Account Fees$ 4,472$ 3,784 Miscellaneous$ 326$ - 0 Office Supplies$ 1,605$ 1,381 Payroll Expenses$ - 0 Office Taxes$ 6,375$ 3,953 Offiice Payroll$ 85,000$ 52,700 Total Payroll Expenses$ 91,375$ 56,653 Payroll Processing Fee$ 522$ 9 Purchases$ 1,204$ - 0 Rent Expense$ 745$ 2,871 Royalty Payment$ 3,094$ 29,278 Small Equipment Purchase$ 974$ - 0 Taxes & Licenses$ 635$ 1,110 Technology Fee$ 609$ 1,638 Telephone$ 1,967$ 2,021 Travel$ 4,829$ - 0 Uncategorized Expense$ - 0$ - 0 Total Expenses$ 163,584$ 147,560 Net Operating Income$ 22,139$ 58,162 Please note, while these numbers and factors are based on an actual business, the data has been changed. The information is to be used for ACC202 exercise purposes only. Important Variables to consider: * 2019 Water jobs included a hurricane flooding * 2020 values include the impact driven by COVID shutdown * Contractually, Royalties should be 10% of Revenues * The franchise recomends that marketing spend be no less than ~3% of sales * Average Sales for a multi-territory franchise are $600k, median sales $550k. -Top territory was $10M+ * A single terriotry is ~50,000 households. * Gross Margins for the industry are 65-70%, technicians perfoming the work are counted in the COGS #.