I need help preparing the financial statements for the following case study. I need to have spreadsheets that show budgeted financial statements for 2012 to 2015 (24 calc in all). I have attached the financials for 2010 & 2011. I have also attached a PDF of the website used for the case study with growth assumptions. I have done the ARR, IRR, PP & NPV for the Apple Press.

As you have heard in the media presentation from CFO Mary Scott, Anthony?s Orchard is faced with another type of expansion decision. CEO Bob Frost is eager to expand the product line to include apple juice.

Of course, a decision to expand a product line has very many variables. In this assignment, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice). You also will investigate the value of a number of financial measurements. Ultimately, you will develop a recommendation for the company, and this analysis will help you to support that recommendation.

To prepare for this Individual Assignment:

Review the Anthony?s Orchard case study in the unit resources.

Consider the following:

?The company, according to Anthony?s Orchard Strategic Plan, is hoping to purchase an apple press in order to start a new line of prepared apple products?apple juice.

?The company estimates this new product offering will generate an additional $95,000 net income per year and estimated cash flows of $90,000 per year. The cost of the apple press will be $950,000 and this expenditure, as shown in the budgeted cash flow statement, is expected to take place in the fourth quarter of 2012.

?The apple press is expected to have a seven-year life and no salvage value.

?The company requires a 10% return on investment for new capital investments and the company uses a cost of capital of 8%.

?The company?s revenue goal for 2015 is $25 million.

?Assume a minimum 12% gross margin on revenue.

To complete this Individual Assignment, answer the following:

?Do you think the company?s revenue goal of $25 million by 2015 is realistic?

?Explain how purchase of the apple press might affect the company?s revenue goals. Based on this information, explain whether Anthony?s Orchard should invest in the apple press. Support your response with relevant information provided in the case study, the previous year?s financials for 2010, the current year?s financials for 2011 and the budgeted year?s financials for 2012.

?Draft budgeted financial statements from 2012 to 2015 under both options that provide a realistic assessment of expected revenues and costs, and explain how you have arrived at these budgeted figures.

Notes:

You should fully state and justify any assumptions that you make in relation to the financial data you use. Be sure to include all references as well.

Anthony's Orchard 2011 Budgeted Income Statement Net Revenue Less: Direct labor Direct material Factory overhead Available for sale Less: Ending Inventory Cost of Goods Sold Gross Margin Prepared Apple Pick Your Own Community Products Apples Events $ 8,749,250 $ 3,248,700 $ 2,499,695 60.35% 22.41% 17.24% 913,140 4,522,575 2,264,000 7,699,715 1,107,500 7,692,215 1,057,035 40.86% 2,657,856 1,530,903 2,657,856 725,500 2,682,356 566,344 21.89% 1,530,903 175,000 1,536,073 963,622 37.25% Less: Administrative Cost: Technology Marketing Executive Team Finance Facilities Procurement Interest on Debt Net Income Before Taxes Income Taxes (40%) Net Income Sales in Quarter 75% collected in this quarter 25% collected from last quarter Cash from sales Less: Apples purchased Direct Labor Anthony's Orchard 2011 Budgeted Cash Flows Quarter 1 Quarter 2 Quarter 3 $ 3,624,411 $ 3,624,411 ### 2,718,308 2,718,308 2,718,308 950,000 906,103 906,103 3,668,308 3,624,411 3,624,411 8,617,033 304,380 1 304,380 ### ### Other ingrediants Variable overhead Fixed factory overhead Administrative costs Income taxes Total cash expenses before interest Cash flow from operations Beginning cash balance Less: Minimum cash reserves Cash available for operations New short-term borrowings Repayment of loan and interest Outstanding loan balance Interest at 3.5% per quarter Capital Expenditures Ending cash balance 31,433 513,000 181,250 351,250 86,586 10,084,932 (6,416,624) 31,433 513,000 181,250 351,250 86,586 1,467,899 2,156,512 ### ### ### ### ### 1,467,899 2,156,512 1,750,000 500,000 1,250,000 5,166,624 5,166,624 180,832 500,000 500,000 500,000 2,156,512 3,010,112 105,354 500,000 500,000 500,000 ### ### ### 853,601 29,876 ### ### Anthony's Orchard 2011 Budgeted Balance Sheet Cash Accounts Rreceivables Inventory: Prepared Apple Products Pick Your Own Apples Community Events Total Inventory Fixed Assets Total Assets $ 9/30/2011 1,750,000 950,000 1,100,000 750,000 180,170 2,030,170 2,830,000 7,560,170 Accounts Payables Long-term Debts Total Liabilities 1,475,000 2,150,000 3,625,000 Shareholder Equity 3,935,170 Total Liabilities and Equity 7,560,170 2 Anthony's Orchard 2011 Budgeted Income Statement Vertical Analysis Prepared Apple Pick Your Own Products Apples 100.00% 100.00% Total $ 14,497,645 100.00% 10.44% 51.69% 25.88% 88.00% 12.66% 87.92% 12.08% 11,910,644 2,587,001 100.00% 430,000 300,000 300,000 175,000 125,000 75,000 316,140 865,861 346,344 519,517 Quarter 4 Full Year $ 3,624,411 $ 14,497,644 2,718,308 10,873,233 906,103 3,668,308 3,624,411 14,541,541 - 8,617,033 913,140 3 Community Events 100.00% 81.81% 61.24% 81.81% 22.33% 82.57% 17.43% 61.24% 7.00% 61.45% 38.55% 181,250 351,250 86,586 619,086 3,005,325 94,299 1,539,000 725,000 1,405,000 346,344 13,639,816 901,725 500,000 500,000 1,169,662 950,000 1,385,663 4 d Vertical Analysis Total 100.00% 82.16% 17.84% 0.00% 2.97% 2.07% 2.07% 1.21% 0.86% 0.52% 2.18% 5.97% 2.39% 3.58% 5 6 Anthony's Orchard 2011 Income Statement Net Revenue Less: Direct labor Direct material Factory overhead Available for sale Less: Ending Inventory Cost of goods sold Gross Margin Prepared Apple Pick Your Own Community Products Apples Events $ 6,621,468 $ 2,273,180 $ 2,110,560 60.17% 20.66% 19.18% 908,010 3,920,109 2,189,000 7,017,119 1,107,500 5,909,618 711,850 37.50% 2,635,075 1,462,708 2,635,075 725,500 1,909,575 363,605 19.15% 1,462,708 175,000 1,287,708 822,852 43.35% Less: Administrative Cost: Interest on Debt Net Income Before Taxes Income Taxes (40%) Net Income Sales in Quarter 75% collected in this quarter Anthony's Orchard 2011 Cash Flows Quarter 1 Quarter 2 Quarter 3 $ 2,751,302 ### $ 2,751,302 2,063,477 2,063,477 2,063,477 650,000 687,826 687,826 Cash from sales 2,713,477 2,751,302 2,751,302 Less: Apples purchased 7,934,291 25% collected from last quarter Direct Labor Other ingrediants - - 302,670 ### 302,670 27,867 ### 27,867 7 Variable overhead 513,000 ### 513,000 Fixed factory overhead 162,500 ### 162,500 Administrative costs 261,250 ### 261,250 61,858 ### 61,858 9,263,436 1,329,145 1,329,145 (6,549,960) 1,422,157 1,422,157 3,392,286 500,000 2,892,286 3,657,673 3,657,673 128,018 500,000 500,000 500,000 1,422,157 2,235,516 78,243 ### ### 500,000 500,000 1,422,157 813,358 28,468 500,000 Income taxes Total cash expenses before interest Cash flow from operations Beginning cash balance Less: Minimum cash reserves Cash available for operations New short-term borrowings Repayment of loan and interest Outstanding loan balance Interest at 3.5% per quarter Capital Expenditures Ending cash balance 8 Anthony's Orchard 2011 Income Statement Verticle Analysis $ Prepared Apple Pick Your Own Community Products Apples Events 100.00% 100.00% 100.00% Total 11,005,208 100.00% 13.71% 59.20% 33.06% 105.98% 16.73% 89.25% 10.75% 0.00% 9,106,901 1,898,307 100.00% 115.92% 69.30% 115.92% 31.92% 84.00% 16.00% 69.30% 8.29% 61.01% 38.99% Total 100.00% 82.75% 17.25% 0.00% 9.50% 2.13% 5.62% 2.25% 3.37% 1,045,000 234,728 618,579 247,432 371,147 Anthony's Orchard 2011 Cash Flows Quarter 1 Quarter 2 Quarter 3 $ 873,109 $ 873,109 $ 873,109 31.73% 31.73% 31.73% $ 654,832 $ 654,832 $ 654,832 31.73% 31.73% 31.73% 300,000 218,277 218,277 46.15% 31.73% 31.73% 954,832 873,109 873,109 35.19% 31.73% 31.73% Quarter 4 Full Year $ 2,751,302 $ 11,005,208 2,063,477 8,253,906 687,826 2,713,477 2,751,302 10,967,383 - 7,934,291 - 908,010 - 83,601 682,742 8.60% 1,710 0.56% 3,566 9 1,710 0.56% 3,566 ### 1,710 0.56% 3,566 - 12.80% - 1,539,000 - 162,500 650,000 261,250 1,045,000 61,858 247,432 485,608 12,407,334 2,265,694 (1,439,952) 18,750 11.54% 90,000 34.45% 24,728 39.98% 821,496 8.87% 133,336 -2.04% 500,000 500,000 1,048,087 1,717,607 10 12.80% 18,750 11.54% 90,000 34.45% 24,728 39.98% 138,754 10.44% 734,355 51.64% 12.80% 18,750 11.54% 90,000 34.45% 24,728 39.98% 138,754 10.44% 734,355 51.64% Percentage 60.17% 20.66% 19.18% Variance $ 2,127,782 $ 975,520 $ 32.13% 42.91% 389,135 18.44% Variance in DL, DM & FO 5,130 0.56% 602,466 22,781 68,195 15.37% 0.86% 75,000 3.43% Variance cost of goods sold 1,782,597 772,781 30.16% 40.47% 4.66% 248,365 19.29% y's Orchard ash Flows Quarter 4 Full Year $ 873,109 $ 3,492,436 31.73% 31.73% $ 654,832 $ 2,619,327 31.73% 31.73% 218,277 954,832 31.73% 35.19% 873,109 3,574,159 31.73% 32.59% - 682,742 8.60% 5,130 0.56% 10,698 11 2,803,743 30.79% 18,750 11.54% 90,000 34.45% 24,728 39.98% 133,478 27.49% 739,631 32.64% 12.80% 75,000 11.54% 360,000 34.45% 98,912 39.98% 1,232,482 9.93% 2,341,677 -162.62% Calculation of BEP contribution Margin Contribution % BEP in sales $ 9,466,208 86.02% 755,675.89 Total Production Contribution per unit BEP in units 179537 $ 0.53 3,214,753 12 Anthony's Orchard Ratio Analysis Formula Name of Ratio Profitability Ratios Gross Margin Operating Margin Net Margin Gross Margin/Net Revenue Operating Profit/Net Revenue Net Income/Net Revenue Liquidity Ratios Current Ratio Acid-test Ratio Current Assets/Current Liabilities Quick Assets/Current liabilities Management Effectiveness Total Assets Turnover Net Sales/Average Total Assets Fixed Assets Turnover Days Sales Outstanding Inventory Turnover Cash flow Ratios Operating Cash flow Ratio Assets Efficiency Ratio Current Liability Coverage Ratio Long-Term Debt Coverage Ratio Interest Coverage Ratio Debt Risk Ratio Debt to EquityRatio Financial Leverage Ratio Net Sales/Fixed Assets - Accumulated Depreciation (Accounts Receivables/Net Credit Sales)*365 Cost of Goods Sold/Average Inventory Cash flow from Operations/Sales Cash flow from Operations/Total Assets Cash flow from Operations/Current Liabilities Cash flow from Operations/Long-term Debts Cash flow from Operations+Interest Paid+ Taxes Paid/Interest Paid Total Debt/Total Equity Total Assets/Total Equity *: These ratios cannot be calcutated for year 2011 as the balance sheet is not available. 13 Budgeted 2011 17.84% 8.15% 3.58% 17.25% 7.75% 3.37% 3.21 1.83 * * 1.92 * 5.12 23.92 5.87 * * * 0.06 0.12 0.61 0.42 -0.13 * * * 4.95 -4.08 0.92 1.92 ot available. 14 Anthony's Orchard http://mym.cdn.laureate-media.com/2dett4d/Walden/ACCT/6130/mm/anthony_orchard_website/index.html 2/22/11 2:25 PM Page 1 of 1 Anthony's Orchard 2/22/11 2:26 PM Our Apples Because Anthony's Orchard is a family run orchard, we grow every apple to be delicious and healthy for you and your family just like we would for ours. We choose only the highest-quality trees and carefully select varieties that thrive in Wenatchee Valley. Anthony's Orchard currently features: Braeburn These beautiful red-orange apples burst with flavors that are both sweet and crisp. One bite is all you'll need to discover that Braeburn apples make a perfect snack for you or the kids. A hybrid descended from the Granny Smith variety, they also retain some of that apple's signature tartness and are ideal for cooking in desserts and applesauce. Chomp or cook: perfect for both! Season: October - July Honeycrisp Intense flavors and unique colors combine in this versatile apple. A mix of green and red colors complement the mix of sweet and tart flavors. Although small in size, Honeycrisp lives up to its namesake with a sweet and crunchy experience waiting in every bite. The tart flavors and dense texture also work great in your favorite pies or applesauce. All Anthony's Orchard apple pies feature fresh and delicious Honeycrisp apples right from our orchard. Chomp or cook: perfect for both! Season: October - May http://mym.cdn.laureate-media.com/2dett4d/Walden/ACCT/6130/mm/anthony_orchard_website/our_apples.htm Page 1 of 1 Anthony's Orchard 2/22/11 2:27 PM Prepared Apple Products Just Like Mom's At Anthony's Orchard, we use time-honored family recipes to make all of our apple products. The result? Simply amazing pies and applesauce made with fresh and natural ingredients. The only thing missing is mom's oven. Apple Pie Filling Treat your family to a hot, fresh apple pie without the hassle using our prepared apple pie filling. We start with our freshly picked Honeycrisp apples; wash, core, and dice them; and prepare the filling with our secret family recipe, all in our own kitchen. Available now in our orchard store and at local retailers. Applesauce Hot or cold, applesauce is a year-round treat. Our Braeburn and Honeycrisp apples give just enough sweet and tart flavors for a refreshing applesauce that's perfect for breakfast, lunch, dinner, or dessert. Available now in our orchard store and at local retailers. Where to Find Our Apple Products Anthony's Orchard works with a several national retail outlets. Just look for our logo next time you're in the apple aisle at your local market! http://mym.cdn.laureate-media.com/2dett4d/Walden/ACCT/6130/mm/anthony_orchard_website/apple_products.htm Page 1 of 1 Anthony's Orchard 2/22/11 2:28 PM Pick Your Own Apples Bring the whole family and pick as many apples as you can carry. The orchard is open during apple season 8 a.m. to 6 p.m. daily. We sell all of our apple varieties by the pound. Bring your own bag and we offer a discount. Thanks to all the wonderful folks who continue visiting our Orchard. See you soon! CSA Program, May - August Our Community Supported Agriculture (CSA) program is a win-win for you and for us. You get the best selection of our apples, picked and delivered weekly right to your door. And you help Anthony's Orchard by becoming a loyal patron of our hard work. We'll deliver your CSA every Wednesday through our peak season, May - June for our Honeycrisp apples and July - August for our Braeburn apples. You can participate in our CSA as a full share member (for a family of four) or half share member (for a family of two): Full share: 2 dozen per week, $10 Half share: 1 dozen per week, $5 For more information visit our store or look for a flyer at your local market Fall Harvest Festival, October 1 - 31 Join us for our annual Fall Harvest Festival during the month of October with tricks and treats for the young and the young at heart. Take a spooktacular hayride through the orchard and over to our pumpkin patch, where you can pick out your very own future jack-o-lantern. Just watch out for our very own phantom of the orchard, old Apple Lloyd Webber! Educational Programs Turn our orchard into your classroom with special programs designed to enhance learning and build appreciation for farming and agriculture. Guided tours through the orchard and production facilities offer students an opportunity to learn more about where their food comes from and how it moves from the field to the market. We'll also work with you to tailor the lessons to meet the needs of your class' age group and your curriculum. http://mym.cdn.laureate-media.com/2dett4d/Walden/ACCT/6130/mm/anthony_orchard_website/events_and_programs.htm Page 1 of 1 Anthony's Orchard 2/22/11 2:28 PM Welcome to the Apple Store You'll find plenty of our fresh apples, apple products, and other items like kitchen tools designed to help you turn apples into awesome. Products: Fresh Braeburn and Honeycrisp apples from our orchard (available year-round) Apple pie filling Applesauce Cookbooks Apple presses, peelers, and corers Other apple merchandise Note: exact product selection may vary. Store Hours: 7 days a week, 8 a.m. to 6 p.m. Location: Once you arrive at the orchard, turn left and follow the road to the big red barn. Look for the red door on the right. http://mym.cdn.laureate-media.com/2dett4d/Walden/ACCT/6130/mm/anthony_orchard_website/store.htm Page 1 of 1 Anthony's Orchard 2/22/11 2:29 PM About Anthony's Orchard Anthony's Orchards is a 3rd-generation, family-owned 6,000-acre orchard situated in Wenatchee Valley, the heart of apple producing in Washington State. Surrounded by gently rolling mountains Anthony's Orchard has been growing apples in the valley for over 60 years. Our waterfront orchards line the region's rushing rivers. The nutrient-rich soil and our advanced growing practices provide the right mix for producing some of the world's top-quality apples. Washington State has been known for its apples and produces a wide variety. At Anthony's Orchard, we have focused on two varieties of apples: Braeburn and Honeycrisp. Mission Statement Our mission is to continually enhance consumers' awareness of apples and apple orchards. Vision Statement Our vision is to provide the best apple products and services to our customers and generate returns for our shareholders, while enhancing the well being of our community. Careers at Anthony's Orchard Looking for a fulfilling career in apples? It may not be the Big Apple, but in addition to a great benefits package, Anthony's Orchard offers all the clean air and fresh fruit you could ever want. Investor Information Crunch into the financial information on our Investor Relations page. You'll find the data as crisp and fresh as this morning's harvest. http://mym.cdn.laureate-media.com/2dett4d/Walden/ACCT/6130/mm/anthony_orchard_website/about.htm Page 1 of 1 Anthony's Orchard 2/22/11 2:29 PM Careers at Anthony's Orchard Anthony's Orchard employs about 300 year-round staff plus several hundred more during peak harvest seasons. We are currently seeking candidates for the following positions: Retail Store Sales Manager The Sales Manager is directly responsible for overseeing the supervision and delegation of associates and staff, managing expenses, achieving profitability goals, and overseeing the corporate merchandising, and the overall management of the retail store while overseeing customer satisfaction. For a full job description please contact Tara Olsen in our HR Department Lead Outside Sales Rep The Lead Outside Sales Rep is responsible for leading and overseeing sales operations with our retail partner accounts, managing inventory logistics, and managing staff scheduling, training, and development. For a full job description please contact Tara Olsen in our HR Department Field Trip Leader (Community Outreach Program) Love working with kids? We need a rock star field trip leader to provide excellent customer service to our school group guests and lead on-site learning programs. For a full job description please contact Tara Olsen in our HR Department http://mym.cdn.laureate-media.com/2dett4d/Walden/ACCT/6130/mm/anthony_orchard_website/careers.htm Page 1 of 1 Anthony's Orchard 2/22/11 2:31 PM Information for Investors Organizational Structure Learn more about how Anthony's Orchard is structured, from our executive committee to the front lines in the orchard Webcasts and Presentations Explore these freshly picked earnings calls and financial information for investors Strategic Plan See our plan to cultivate and grow financial success through cultivating and growing apples and apple product lines Financial Information and Charts See our current year budget and costs information http://mym.cdn.laureate-media.com/2dett4d/Walden/ACCT/6130/mm/anthony_orchard_website/investors.htm Page 1 of 1 Anthony's Orchard 2/22/11 2:31 PM Organizational Structure Executive Committee: Bob Frost, CEO Mary Scott, CFO of Finance John Daniels, SVP of Sales Samir Saeed, SVP of Operations Departmental Units: Human Resources Leonard Pulanski, Director of Human Resources Chuck West, Benefits Manager Brenda Norris, Payroll Manager Tara Olsen, Recruiting Manager Heather Mullins, Seasonal Labor Coordinator Sean Manning, Training Manager Marketing Christine Miller, Director of Marketing Darrius Mason, Marketing Manager Kat Williams, Marketing Coordinator Trevor Lewis, Market Research Analyst Evan Beam, Marketing Intern Jim Wiliams, Marketing Intern Jack Walker, Marketing Intern Bill Owens, Director of Communications Sales Director of Sales Lead Outside Sales Rep (open) Neil Faraday, Northeast US Sales Rep Max Curie, Southeast US Sales Rep Marie Planck, Central US Sales Rep Michael Bohr, Western US Sales Rep Operations & Processing Allison Sinclair, Director of Operations http://mym.cdn.laureate-media.com/2dett4d/Walden/ACCT/6130/mm/anthony_orchard_website/organizational_structure.htm Page 1 of 2 Anthony's Orchard 2/22/11 2:31 PM Ben Arshavin, Processing Manager Felicia Jennings, Processing Floor Supervisor Todd Driver, Processing Floor Supervisor Processing staff (seasonal) Retail Store Sales Manager (open) Sun Kim, Retail Sore Supervisor Taressa Johnson, Retail Store Supervisor Retail Staff (seasonal) CSA Supervisor Shaleish Gupta, Educational Programs Manager Field Trip Leader (open) Shamus McFadden, Orchard Manager Leo Richards, Orchard Supervisor Don Smith, Orchard Supervisor Mike Jones, Orchard Supervisor Raphael Zirpolo, Orchard Supervisor Orchard workers (seasonal) AJ Martin, Purchasing Manager Gabriella Nickel, Warehouse Manager Finance & Accounting Jeanine Lister, Director of Finance Pamela Kirk, Accounting Manager Scott MIchaels, Accounts Payable Manager Marsha Birch, Accounts Receivable Manager Information Technology Ted Schaeffer, Director of Information Technology Bob O'Malley, Systems Manager Martin Erlich, Website Manager Note: seasonal staffing levels vary to meet business needs http://mym.cdn.laureate-media.com/2dett4d/Walden/ACCT/6130/mm/anthony_orchard_website/organizational_structure.htm Page 2 of 2 Anthony's Orchard 2/22/11 2:32 PM Webcasts and Presentations Earnings calls are designed to provide disclosure and financial results for a certain reporting period. In addition, earnings calls provide transparency and can help with forecasting and planning. 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9*))*203#%>$"6@%%O$%=*C$%8*%#$8%X%>$"64%*;8%*9%8=04%3$2%C6$44+%"3?%2$%$NC$78%08%8*%0376$"4$%7"C"708>% '@^%80.$4@%%O$%$NC$78%*;6%)"B*6%80.$4%8*%?$76$"4$+%"3?%*;6%."6#034%8*%0376$"4$@%%%03%8=$%9*6.%*9%3$2%=06$4@%%1;6%B0##$6% !"#$%&%^%% !"#$%&"'()*+,"*-$).,$/0%*1"&.#"2%*34#")5"6/*7#"$'$8%*9#66 )*3#%8$6.%D040*3%037);?$4%4$D$6")%"7E;04080*34%9*6%;4@%%O$-6$%=*C03#%8*%$NC"3?%B>%$08=$6%"??03#%"% 3$2%D"60$8>%*9%"CC)$%"3?%B>%"??03#%"%3$2%?04860B;80*3%7="33$)%*D$64$"4@%%O$%6$")0T$%8=$4$%"6$% "##6$440D$%#*")4+%2=07=%04%2=>%2$%C)"3%8*%48"##$6%8=$.%*D$6%8=$%3$N8%4$D$6")%>$"64@%%%%O$%=*C$%>*;-))% 48">%8;3$?%"4%2$%7*3803;$%8*%6$C*68%*;6%$"6303#4%03%8=$%9;8;6$%"3?%7*3803;$%8*%#6*2%-4% 167="6?4@% % A="3F%>*;%9*6%>*;6%80.$%8*?">@%%,9%>*;%="D$%"3>%E;$480*34+%C)$"4$%$."0)%"%7*.C"3>%6$C6$4$38"80D$+% 2=*4$%7*38"78%039*6."80*3%7"3%B$%9*;3?%*3%8=$%2$B408$@% %% % !"#$%&%\\%% Anthony's Orchard 2/22/11 2:32 PM Strategic Plan & Growth Initiatives Please see below for excerpts from our Long Term Vision and strategic planning sessions: In 2012, the Company is hoping to purchase an apple press, which would allow us to start a new line of prepared apple products - apple juice. Our plans include an estimated $95,000 net income per year and an estimated $90,000 of cash inflows per year from the new line of apple juice. We expect a 10% return on this investment. We continue to search for new orchards throughout the country so that we may diversify the types of apples we produce. While we feel that Braeburn and Honeycrisp are among the best, we understand that you the customers might like additional variety. Our 2015 revenue goal is to exceed $25 million dollars, which will involve either acquiring new orchards, or expanding our line of products. http://mym.cdn.laureate-media.com/2dett4d/Walden/ACCT/6130/mm/anthony_orchard_website/strategic_plan.htm Page 1 of 1 Anthony's Orchard 2/22/11 4:40 PM Financial Information and Charts Budget Overview Anthony's Orchard begins budget planning each year in August and finalized by the start of our fiscal year in October. Each departmental director, as defined by the company's organizational structure, provides labor and materials cost forecasts. The Senior VP of Operations compiles these numbers to estimate total costs. The Senior VP of Sales forecasts sales based on fruit yield estimates from the Operations division, and the Senior VP of Finance prepares the final annual budget for approval by the Executive Committee and Board of Directors. Anthony's Orchard uses a FIFO accounting method to minimize crop waste. Factory overhead uses a flexible budget to respond to business demands and scale with crop yield. Variable overhead varies with the number of direct labor hours in operations areas, including processing, retail store, and harvesting. Budget info and financial data Budgets Previous Year Financials Current Year Financials http://mym.cdn.laureate-media.com/2dett4d/Walden/ACCT/6130/mm/anthony_orchard_website/financial_information.htm Page 1 of 1 Anthony's Orchard http://mym.cdn.laureate-media.com/2dett4d/Walden/ACCT/6130/mm/anthony_orchard_website/budgets.htm 2/25/11 10:59 AM Page 1 of 3 Anthony's Orchard http://mym.cdn.laureate-media.com/2dett4d/Walden/ACCT/6130/mm/anthony_orchard_website/budgets.htm 2/25/11 10:59 AM Page 2 of 3 Anthony's Orchard http://mym.cdn.laureate-media.com/2dett4d/Walden/ACCT/6130/mm/anthony_orchard_website/budgets.htm 2/25/11 10:59 AM Page 3 of 3 Anthony's Orchard http://mym.cdn.laureate-media.com/2dett4d/Walden/ACCT/6130/mm/anthony_orchard_website/2010_financials.htm 2/25/11 10:59 AM Page 1 of 1 Anthony's Orchard http://mym.cdn.laureate-media.com/2dett4d/Walden/ACCT/6130/mm/anthony_orchard_website/2011_financials.htm 2/25/11 10:59 AM Page 1 of 3 Anthony's Orchard http://mym.cdn.laureate-media.com/2dett4d/Walden/ACCT/6130/mm/anthony_orchard_website/2011_financials.htm 2/25/11 10:59 AM Page 2 of 3 Anthony's Orchard http://mym.cdn.laureate-media.com/2dett4d/Walden/ACCT/6130/mm/anthony_orchard_website/2011_financials.htm 2/25/11 10:59 AM Page 3 of 3