Question
One year Two years Three years Four years Berry Bang's sold 1750 91000 93730 96542 99438 Revenue $7.00 637,000 656110 675793 696067 Cost of Sales
One year | Two years | Three years | Four years | ||||
Berry Bang's sold | 1750 | 91000 | 93730 | 96542 | 99438 | ||
Revenue | $7.00 | 637,000 | 656110 | 675793 | 696067 | ||
Cost of Sales | $1.87 | 170,170 | 175275 | 180533 | 185949 | ||
Royalty | 8.00% | 50,960 | 52489 | 54063 | 55685 | ||
Marketing | 7.00% | 44,590 | 45928 | 47306 | 48725 | ||
Total Variable Costs | 265,720 | 273,692 | 281902 | 290359 | |||
Contribution | 371,280 | 382,418 | 393891 | 405708 | |||
Full-Time Employee Costs | $42,000 | 84,000 | 84,000 | 84,000 | 84,000 | ||
Casual Employee Costs | $18.93 | 70,874 | 70,874 | 70,874 | 70,874 | ||
On-Costs | 30% | 46,462 | 46,462 | 46,462 | 46,462 | ||
Total Employee Costs | 201,336 | 201,336 | 201,336 | 201,336 | |||
Store Costs (outgoings) | $1,600 | 19,200 | 19,200 | 19,200 | 19,200 | ||
Occupancy Cost (rent) | $3,500 | 42,000 | 42,000 | 42,000 | 42,000 | ||
Total Operating Costs | 262,536 | 262,536 | 262,536 | 262,536 | |||
EBITDA | 17% | 108,744 | 119,882 | 131,355 | 143,172 | ||
Interest | 150,000 | 6.00% | 9,000 | 9,000 | 9,000 | 9,000 | |
Depreciation | 300,000 | 10.00% | 30,000 | 30,000 | 30,000 | 30,000 | |
Total Fixed Costs | 301,536 | 301,536 | 301,536 | 301,536 | |||
Pre-Tax Profit | 69,744 | 80,882 | 92,355 | 104,172 | |||
Tax | 30% | 20,923 | 24265 | 27706 | 31252 | ||
Net Income | 48,821 | 56,618 | 64,648 | 72,920 | |||
1- Repeat these calculations in order to estimate free cash flow for three more years, assuming that the franchise is able to increase the number of Berry Bangs it sells by 3% over the previous year. Is EBITDA equal to 33% of the $300,000 required to set up the store in each year? Note: as a rule of thumb an EBITDA/Store Setup Cost ratio of 33% is desirable.
the above is the question 1 and its answer is in table form and I need you to check the calculations and let me know that all are correct and if any calculation is wrong just let me know
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