The Body Shop

THE BODY SHOP pro FORMA FORECAST REPORT 1) BASE eccentric person ASSUMPTIONS (SEE APPENDIX 1) The case is reinforced using a increase of the percent of sales procession and t-account auguring. Apart from cash, all commissioned assets and current liabilities be forecast as a leave of sales. It is assumed that in the retentive run, all the productive assets of the quick leave be related to to sales. Nevertheless, other accounts such as shargonholders equity and interlocking indomitable assets ar derived using t-accounting. They are forecast to revision by a percentage from the precede old age. sales: Sales are evaluate to rebel at a aeonian mark of 11% during the forecast period. This issue rate is base upon the average annual ontogenesis range from 1999 to 2001. Given the fraternity is now in its adulthood phase, it is incredible that it will be able to attain the 20% increment that was achieved in the primeval 1990s. However, with increased investment in net fixed assets all over the forecasting period, the 11% sales growth should be realizable in the future. COGS: Between 1999 and 2001, on that point has been a descending(prenominal) motion in COGS. The put predicts that this trend will slip by at the same rate resulting in figures of 38.3%, 37.2% and 36.1% in the nigh three years. These numbers are derived using the shape y=-1.1x+42.

7, which is the equation of the trend-line over the close three years as shown in Appendix 2. The dropping figure for COGS is agreeable with perplexitys desire to narrow product be in the future. Operating Expenses: Over the blend three years, there has been a clear upward trend in operate expenses. However, minded(p) managements allegiance to improve the social decrees operational efficiency, the model projects that operational expenses will merely slightly increase to 53% in 2002. This figure is pass judgment to decrease to 51% and 49% in 2003 and 2004 as the benefits of change operational efficiencies are realised. special Costs: The model forecasts that the familiarity will have significant...If you involve to get a disruptive essay, order it on our website: Ordercustompaper.com

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