Christine Wilde is considering opening a frozen yogourt store. One option is to purchase an existing...

Transcribed Image Text:

Christine Wilde is considering opening a frozen yogourt store. One option is to purchase an existing independent store that is available for sale. The seller, Mark Preradovic, has operated the store for three years and has assured Christine that his location, although smaller than the average store, is an above average performer for the industry. Mark has provided the financial data shown below for his store. Mark's Yogourt Plus Store Selected Financial Results Year 1 Year 2 Year 3 Store size: 1,400 square feet (130 square metres) Sales $242,000 $282,000 $339,000 Gross margin 167,000 196,000 242.000 Other expenses 159,000 187,000 200,000 Net income $8,000 $9.000 $42.000 Christine Wilde is considering opening a frozen yogourt store. One option is to purchase an existing independent store that is available for sale. The seller, Mark Preradovic, has operated the store for three years and has assured Christine that his location, although smaller than the average store, is an above average performer for the industry. Mark has provided the financial data shown below for his store. Mark's Yogourt Plus Store Selected Financial Results Year 1 Year 2 Year 3 Store size: 1,400 square feet (130 square metres) Sales $242,000 $282,000 $339,000 Gross margin 167,000 196,000 242.000 Other expenses 159,000 187,000 200,000 Net income $8,000 $9.000 $42.000