Sales 1,000,000.

00
(-)
Cost of goods sold 625,000.00

Variable Expenses 135,000.00

(+)
Fixed Expenses 191,000.00

Inventory 420,000.00
(+)
Accounts Recievable 225,000.00
(+)
Other Current Assets 200,000.00
 Strategic Profit Model

Gross Margin 375,000.00

Net Profit 49,000.00
(-) (/)
Net Profit Margin
Sales 1,000,000.00
Total Expenses 326,000.00

(x)

Current Assets 845,000.00 Sales 1,000,000.00

(/) Asset Turnover
(+) Total Assets 1,070,000.00

Fixed Assets 225,000.00

4.9%

Return on Assets 4.6%

0.93
Statement of Cash Flow

Net Earnings $ 49,000

Additions to Cash
Depreciation $ 5,000
Decrease in Accounts Receivable $ 8,000
Increase in Accounts Payable $ 4,000
Increase in Taxes Payable $ 500

Subtractions from Cash

Increase in Inventory -$ 15,000

Net Cash from Operations $ 51,500

Cash Flow from Investing:

Equipment -$ 200,000

Cash Flow from Financing:

Notes Payable $ 300,000

Cash Flow for Time Period $ 151,500

 49,000

5,000
8,000
4,000
500

15,000

51,500

200,000

300,000

151,500
Income Statement 2018

Sales $ 1,000,000
Cost of Goods Sold $ 625,000
Gross Margin $ 375,000

Transportation Costs $ 100,000

Warehouse Costs $ 85,000
Inventory Carrying Costs $ 35,000
Other Operating Costs $ 86,000
Total Operating Costs $ 306,000
Earnings before Interest and taxes $ 69,000
Interest $ 5,000
Taxes $ 15,000

Net Income $ 49,000

0
0
0

0
0
0
0

0
Balance Sheet 2018

Assets
Cash $ 200,000
Accounts Receivable $ 225,000
Inventory $ 420,000
Total Current Assets $ 845,000
Net Fixed Assets $ 225,000
Total Assets $ 1,070,000

Liabilities
Current Liabilities $ 210,000
Long-Term Debt $ 500,000
Total Liabilities $ 710,000

Shareholders Equity $ 360,000

Total Liabilities and Equity $ 1,070,000