EXHIBIT 1

Boston Retail
20X1 Operating Results with Key Assumptions for 20X2

20X1 Actual
Income Statement
(thousands of USD)

Sales $9,200
Costs of goods sold (COGS) $4,780
Gross margin $4,420
Wages and salaries $1,530
Rent and facilities $840
Advertising $585
Administrative expenses $435
Interest $72
Depreciation $57
Training $38
Other $54
Profit before tax $809
Income tax $283
Net profit $526
h Key Assumptions for 20X2
Key Assumptions for 20X2
10% sales growth
same % of sales as 20X1
4% growth
5% growth
same % of sales as 20X1
same % of sales as 20X1
estimated at 65
add depreciation of new assets
2,5% of wages and salaries
4% growth
35% of profit
Assumptions
Key assumptions for 20X2 Profit Plan
20X2
Sales growth, %
COGS, % of sales
Wages and salaries growth
Rent and facilities growth
Advertising, % of sales
Admin, % of sales
Interest
Depreciation of new assets
Training, % of Wages and salaries
Other expenses, growth
Income tax
20X2 Profit Plan
 EXHIBIT 2
Boston Retail
Asset Investment Plan

New assets needed for

20X2 (USD,
thousands)
Working capital
Increase in accoutns receivable $26
Increase in inventory $98
Increase in accounts payable -$21

Long-term (Depreciable) Assets

New computerized management system $60
Store displays $80
Warehouse expansion $120
Total investment in new assets during 20X2 $363

Assume that the long-term assets have an average life of five years, use straight line method
New depreciable assets
Useful life
Annual depreciation
 EXHIBIT 1
Boston Retail
20X1 Operating Results with Key Assumptions for 20X2

20X1 Actual
(thousands of USD)
Income Statement

Sales $9,200
Costs of goods sold (COGS) $4,780
Gross margin $4,420
Wages and salaries $1,530
Rent and facilities $840
Advertising $585
Administrative expenses $435
Interest $72
Depreciation $57
Training $38
Other $54
Profit before tax $809
Income tax $283
Net profit $526
h Key Assumptions for 20X2
Key Assumptions for 20X2
10% sales growth
same % of sales as 20X1
4% growth
5% growth
same % of sales as 20X1
same % of sales as 20X1
estimated at 65
add depreciation of new assets
2,5% of wages and salaries
4% growth
35% of profit
Key assumptions for 20X2
Sales growth
COGS, % of sales
Wages and salaries growth
Rent and facilities growth
Advertising, % of sales
Admin, % of sales
Interest
Depreciation
Training, % of Wages and salaries
Other expenses, growth
Income tax
Assumptions
20X2 Profit Plan 20X2 Profit Plan
Profit Plan 20X2 Profit Plan
(Optimistic) (Pessimistic)
20X2
10% 15% 0%
0% $0
0% $0
0% $0
0% $0
0% $0
0% $0.00
0% $0.00
$0 $0
0€ $0
0% $0
0% $0
0% $0
0% $0
0 $0