AROMA TEA AND CAFE

Aroma Tea And Cafe



Aroma Tea And Cafe

Income Statement

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Revenues

£

£

£

£

£

£

Sales

 

 

 

 

 

 

Tea (raw)

30,000

32,500

35,000

40,000

45,000

47,000

Coffee (raw)

17,000

18,700

20,400

22,950

23,800

21,000

Tea (served at café)

10,000

11,000

11,500

12,000

12,500

11,500

Coffee (served at café)

12,500

13,750

16,250

17,500

18,750

19,000

Other Revenue (snacks and beverages)

3,000

4,000

4,500

5,000

5,500

4,000

Total Revenues

72,500

79,950

87,650

97,450

105,550

102,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

variable cost

 

 

 

 

 

 

Salaries and benefits

20,000

25,000

26,000

30,000

20,000

25,000

Supplies

15,000

16,000

15,000

15,000

15,000

16,000

 

 

 

 

 

 

 

Fixed cost

 

 

 

 

 

 

Utilities

1,000

1,200

1,300

1,400

1,500

1,300

Depreciation & Amortization

1,500

1,500

1,500

1,500

1,500

1,500

Interest Expense £ 50000 borrowed

5,000

5,000

5,000

5,000

5,000

5,000

Total Expenses

 

 

 

 

 

 

 

42,500

48,700

48,800

52,900

43,000

48,800

 

 

 

 

 

 

 

Net Income

30,000

31,250

38,850

44,550

62,550

53,700

Return on Sales (Profit Margin) Ration

0.413793

0.390869

0.44324

0.457158

0.59261

0.523902

Average Income for the Six Months

43,483

By looking at the profit margin percentages for the last 6 months, it is evident that the profitability of the organization is on the high side. The purpose of using this function on excel is to make calculations quickly and accurately. With the help of this function used in the assignment, we can also calculate further ratios for our company. Moreover, we have also used the average function in our assignment. This function is an effective tool specially when there is large number of data.

With respect to the profitability ratios calculated, the net income has been increasing since the start of the operation. This means that the liquidity position of the company is more than satisfactory. This ratio will not only help the company to make future projections but it's also a good tool for the investor to assess the liquidity and profitability position of the organization.

 

«Contact_FullName»

«Contact_Title»

«Account_Name»

«Contact_MailingAddress»

«Contact_MailingCity», «Contact_MailingState» «Contact_MailingPostalCode»

Dear «Contact_FirstName»,

You are receiving this email because you are a registered and loyal customer of our Aroma Tea and Coffee Café. We are offering you a special discount for a limited time period, in which we are offering you special discounts on our aromatic tea and coffee. There are special discounts on the snacks being sold in our café. To avail this discount offer, note down this discount coupon number XYZ000-123, and show this coupon number next time you visit our café.

Sincerely,

«User_FullName»

«User_Title»

«User_Company»

Direct Line: «User_Phone»

Fax Number: «User_Fax»

Email: «User_Email»

Task 2 (Evaluation):

No one can ignore the fact that when we ...