C26 f F UL AWN Nooo) A B C D E 1 Chocolate Express, Inc. 2 Comparison of Key Figures to Prior Month 3 July 31, 200X 4 Michelle Arias % Favorable Favorable 5 JULY JUNE (Unfavorable) (Unfavorable) 6 Sales (708,090) $ (694,210) $ (13,880) 2.0% 7 Cost of Merchandise Sold (541,530) (524,380) 17,150 -3.3% 8 Gross Profit $ (166,560) $ (169,830) $ 3,270 -1.9% 9 Gross Profit Margin % 23.5% 24.5% (0.9) pt. 10 11 Operating Expenses: 12 Selling Expense $ 71,920 $ 70,340 $ (1,580) -2.2% 13 Administrative Expense 36,215 36,005 (210) -0.6% 14 Total Operating Expenses $ 108,135 $ 106,345 $ (1.790) -1.7% 15 16 Operating Income $ (274,695) $ (276,175) $ 1,480 -0.5% 17 Operating Income % 38.896 39.896 (1.0) pt 18 19 Other Income (Expense) 58,425 63,485 (5,060) -8.0% 20 21 Net Income $ (216,270) $ (212,690) $ (3,580) 1.7% 22 Net Income % 30.5% 30.6% (0.1) pt. 23 24 Current Assets $ 206,105 $ 144,900 $ 61,205 25 Current Liabilities $ (192,510) $ (146, 915) $ (45,595) 26 Use the Text 27 Working Capital $ 398,615 $ 291,815 s 106,800 Boxes below, but 28 Current Ratio (1.1) (1.0) (0.1) try not to move 29 them as the 30 printed view is a 31 Comparison of JULY Financial Performance to JUNE little different C26 fo A B D EL F G 31 Comparison of JULY Financial Performance to JUNE 32 JULY Net Sales increased by $ % increase, however Net income declined by 33 $ or _%. The increase in sales was largely due to our expansion in the west. 34 35 The decline in Net Income is largely related to the drop in our Gross Profit Margin and 36 heavy Advertising Cost in the start-up territory 37 38 Our Gross Profit Margin went from 24.5% to %. Our cost per unit has increased under the new 39 contract as our primary vendor has reduced our purchase discount percentage from "2/10 net 30" 40 to 1/10, net 30" The impact of the change was experienced for the first time in July We continue 41 our search for another vendor that can provide us with better costs without sacrificing quality 42 43 Selling Expenses increased by $ % compared to JUNE. Advertising Expense 44 and Sales Salaries were planned to increase in our effort to capture market share in the west. We expect this 45 to normalize by the 4th quarter as sales volumes in the west grow. 46 47 Though our Current Ratio was flat with JUNE at our Working Capital increased 48 Even after purchasing new Office Equipment to support the western expansion, our cash balance grew in 49 the month 50 51
