2) You have an organic farm and decide to sell sandwiches from all organic ingredients. You shopped the competition in the area and decided to charge $4.95 per sandwich Eventually you plan to expand to other menu items if things go well You need to determine how many sandwiches you need to sell to break even and how many you need to sell to make $500 net profit each month List of expenses - Sort them into either the Variable Expenses or Fixed Expenses columns Turkey per sandwich-50.60 Mustard - 50.03 Rent per month - 5600 Bookkeeper per month $50 Swiss cheese per sandwich - $0.60 Lettuce - $0.04 Bread per sandwich - $0.05 Owner's salary per month - $2,000 Telephone per month - S100 Secret sauce $0.15 Labor to prepare sandwich - $0.53 Paper to wrap sandwich - $0.03 Utilities per month - SISO Tomato - $0.06 Insurance per month - $25 Fixed Expenses Variable Expenses Item Item Amount Total VC Cost Per Sandwich Total Fixed Costs What is the selling price of the Turkey Sandwich? What are the variable expenses of each sandwich? What is the gross profit for each sandwich? The Gross Profit represents how much each sandwich contributes" toward fixed expenses and profits. Every time you sell a sandwich, how much is it contributing toward paying your fixed expenses or eventually your income? $ How many Sandwiches do you need to sell every month to pay your monthly expenses? How many additional sandwiches do you need to sell every month to make $500 Net Profit? John Deer: Statement of Cash Flows Breakdown TTM 10/31/2018 10/31/2017 10/31/2016 10/31/2015 Cash flows from operating activ Net Income 3.316.400 2.368.400 1,940,000 Depreciation & amortization 2.004.100 1.927 100 2.159,100 1,715,500 100,100 Deferred income taxes 506.900 Stock based compensation 68.100 83,800 -3.131.400 1.523.900 1.559,800 282.700 70,600 314.100 335200 -106, 100 1.479.900 83.800 4.073.400 -1,531,100 -1.772,300 1,382,400 -18.400 56,100 239.900 811,500 -691,400 Change in working capital -1292.300 838.900 Accounts receivable Inventory -1,401,300 -1.305,300 272.800 36.900 2,896,300 -3.790,400 Accounts Payable Other working capital Other non-cash toms Net cash provided by operatin... Cash flows from investing activi > Cash flows from financing activi. Net change in cash Cash at beginning of period Cash at end of period > Free Cash Flow -1,129,800 -7.100 1.820,300 8,154,400 876,400 914.200 40.200 3.740,300 - 1,058.700 436,400 -392.500 299,400 2.199.000 -1,644,300 4206,500 4,999,100 4335,800 9,334.900 -392.500 309.200 - 161.900 3.764.300 -1,177 200 -2,400,500 173,600 4.162.200 4,335,800 809.200 2,119,100 -5,430.900 9,334,900 525,900 4,029,000 3.571,300 272,800 375,200 3,787,000 4.10.200 914.200 3,904.000 - 1,129,800 John Deer: Income Statement Breakdown TTM 10/31/2017 10/31/2016 10/31/2018 37,021,300 Total Revenue 38,441,300 28,048,800 10,392,500 Cost of Revenue 10/31/2015 28.609,300 20,983,200 7,626, 100 29,115,600 21,001,000 8,114,600 26,985,800 10,035,500 26,363,500 19,174,600 7.188.900 Gross Profit Operating Expenses Research Development 1,764,600 1,657,600 1,367.700 1.389.100 1,425,100 3,680,500 3.630.500 3,056,300 Seling General and Administrative Total Operating Expenses 2.951,700 4.980,800 5,979,100 4,871,400 6,165,100 4.227,400 Operating Income or Loss 4.056.400 2.208,100 2,754,700 Interest Expense 763,700 Total Other Income/Expenses Net 16,000 14.000 4,070,700 3,253,600 5,353,300 2,761,300 899.500 392.000 3,153,800 971,100 2,159,200 2,159,100 2,158,500 Income Before Tax Income Tax Expense 4,241,700 950,900 3,319,600 1,726,900 680.000 26,000 2,780,100 840,100 1,940,900 1.940,000 1,939,200 Income from Continuing Operations 2224,000 700,100 1,521,500 1,523,900 1,523,200 Net Income 2,370,600 2,368,400 2,368,000 3,316,400 Net Income available to common s... 3,316,000 > Reported EPS > Weighted average shares outst. EBITDA 5,983,500 4,476,800 3.767.900 4,137,100