Important Assumptions, Kona Gold Coffees
In developing our financial statements, we have used the assumptions shown in
the table below. “Cash sales” is the percentage of sales that we project to have in
cash—our consumer sales through mail order and Internet. “Sales on credit” is
wholesale sales. “Cost of sales accounts payable” shows that we are buying our
inventory on 30 days credit. While our freight runs 5 percent, we have used the
average of 3.75 percent to offset retail consumer sales that will pay freight in
addition to the price of the products.
Five years assumption for financial statement
Market share
Avg.Monthly sales
Cash sales
Sales on credit
Collection days
Cost of sales
Etc……
Year 1
4%
$134,133
24.8%
75.2%
45 days
44.28%
Year 2
Cont’ till year 5
Increase 8% annually every year
145,080
24.8%
75.2%
45 days
44.28%