How much sales revenue and net income would you expect the company to have in the next fiscal year (i.e., 12 months from July, 20'03 to June, 2004; see Exhibit 5 on pg. 15). Please explain how you arrived at your answer. 31-Dec-02 31-Mar-03 30-Jun-03 Assets Current Assets Cash Accounts Receivable Prepaid Hosting Total Fixed Assets Web Site Less: Accumulated Depreciation Total $ 10,721 $ 19,051 $ 15,256 2,312 1,520 85 10,806 21,364 16,777 16,942 (6,257) 10,685 18,018 (10,620 7,398 18,018 (14,856) 3,162 Total Assets 21,491 28,761 19,938 541 1,026 2,447 Liabilities and Shareholders' Equity Current Accounts Payable Long-term Debt Owners' Equity Invested Capital Retained Earnings Total 16,500 4,450 20,950 16,500 11,235 27,735 16,500 991 17,491 Total Liabilities and Shareholders' Equity $ 21,491 $ 28,761 $ 19,938 Revenue Sales 31-Dec-02 31-Mar-03 30-Jun-03 (6 months) $ 22,086 $ 15,867 $ 17,515 Expenses Credit Card Development* Payment Processing GST Tax** Administrative Refund Expense Hosting 753 2,666 378 1,450 344 589 485 306 1,123 556 632 4,908 333 418 660 267 7,218 510 1,234 4,293 6,101 Operating Profit 15,985 11,574 10,297 Marketing Expense Internet Marketing Banking Fees 13,329 2,977 4,432 797 50 5,279 423 2 425 16,306 EBITDA 10,706 11,149 (6,009) Net Income $ 4,450 $ 6,785 $(10,244) 4,450 11,235 Retained Earnings Beginning Dividends Net Income Retained Earnings Ending $ $ 4,450 $ 6,785 $(10,244) 4,450 $ 11,235 $ 991 How much sales revenue and net income would you expect the company to have in the next fiscal year (i.e., 12 months from July, 20'03 to June, 2004; see Exhibit 5 on pg. 15). Please explain how you arrived at your answer. 31-Dec-02 31-Mar-03 30-Jun-03 Assets Current Assets Cash Accounts Receivable Prepaid Hosting Total Fixed Assets Web Site Less: Accumulated Depreciation Total $ 10,721 $ 19,051 $ 15,256 2,312 1,520 85 10,806 21,364 16,777 16,942 (6,257) 10,685 18,018 (10,620 7,398 18,018 (14,856) 3,162 Total Assets 21,491 28,761 19,938 541 1,026 2,447 Liabilities and Shareholders' Equity Current Accounts Payable Long-term Debt Owners' Equity Invested Capital Retained Earnings Total 16,500 4,450 20,950 16,500 11,235 27,735 16,500 991 17,491 Total Liabilities and Shareholders' Equity $ 21,491 $ 28,761 $ 19,938 Revenue Sales 31-Dec-02 31-Mar-03 30-Jun-03 (6 months) $ 22,086 $ 15,867 $ 17,515 Expenses Credit Card Development* Payment Processing GST Tax** Administrative Refund Expense Hosting 753 2,666 378 1,450 344 589 485 306 1,123 556 632 4,908 333 418 660 267 7,218 510 1,234 4,293 6,101 Operating Profit 15,985 11,574 10,297 Marketing Expense Internet Marketing Banking Fees 13,329 2,977 4,432 797 50 5,279 423 2 425 16,306 EBITDA 10,706 11,149 (6,009) Net Income $ 4,450 $ 6,785 $(10,244) 4,450 11,235 Retained Earnings Beginning Dividends Net Income Retained Earnings Ending $ $ 4,450 $ 6,785 $(10,244) 4,450 $ 11,235 $ 991
