Executive Summary : Financial Pro Formas, Kona
Gold Coffess
For our first year, sales are projected at $1,612,000 for 50,480 products and cost
of sales are projected at $713,809 with a gross profit margin of 55.7 percent. All
other expenses total $586,167. Sales to break even are $961,512. Our operating
profit is $312,024 and net profit is $199,066 or 12.3%.
For our five years pro formas, we have conservatively estimated 8% increases in
sales (the industry standard is 9%) and 4% increases in operating costs. This
year a net profit for year five $345,426 and a sound working capital of
$1,511,928. The annual return on equity for the fifth year is 22%.