This is an excerpt from Maxi's Grocery Mart case study. Reset your sales percentages and salaries back to their original values and then make the following changes. Assume a discount chain is opening a grocery store in a neighboring town. Mr. Feronti thinks this may cause his sales to decrease. He thinks his growth may decrease in 2009 by 12 percent, 2010 by 10 percent and 2011 by 5 percent. Would you still recommend renovating the grocery mart? Why or why not? Below is the table with lower net income due to decreased rate growth:

Below is the original table:

:

A B C D E F Pro Forma Income Statement Prepared on: March 21, 2017 2008 RNS2009 2010 2011 Sales Deli $187, 500.00 165,000.00 148, 500.00 $141,075.00 Dairy $712, 500.00 $627,000.00 $564, 300.00 $536,085.00 canned Goods $375,000.00 s 330,000.00 S297,000.00 S282,150.00 Frozen Foods $825,000.00 S726,000.00 $653,400.00 s620,730.00 Meats $787,500.00 $693,000.00 $623,700.00 $592,515.00 11 Produce $468, 750.00 $412, 500.00 12 S371,250.00 S352,687.50 13 S297,000.00 S267,300.00 S253,935.00 S3750,000.00 IS3,300,000.00 15 Total Sales S2,970,000.00 $2,821,500.00 Cost of Goods Sold 16 Deli S93,750.00 $82.500.00 $74, 250.00 $70,537.50 17 S282, 150.00 S268,042.50 Frozen Foods $536,250.00 $471,900.00 $424,710.00 $403,474.50 20 Meats $393, 750.00 $346, 500.00 21 S311,850.00 S296,257.50 Produce S304,687.50 S268,125.00 S241,312.50 S229,246.88 24 25 Gross Profit S1,544,437.50 $1,359,105.00 S1,223,194.50 $1,162,034.78 operating Expenses 27 sales and Marketing S206, 250.00 $181, 500.00 28 S163,350.00 S155,182.50 General and Administrative S328,125.00 $288,750.00 S259,875.00 S246,881.25 Depreciation s20,000.00 s 20,000.00 s 20,000.00 s20,000.00 30 31 S541,000.00 $541,000.00 S541,000.00 S541,000.00 $163,092.60 S146,783.34 S139,444.17 Total Operating Expenses S1 280,707.50 S1194.342.60 S1 131.008.34 102507.92 33 S263,730.00 S164,762.40 35 S92,305.50 36 Net Income S171 424.50 S107,095.56 S59,921.00 S335g24H