Profit and Loss
Amazing Restoration Company
Next meeting will be after thursdays class
2019 Full year 2020 YTD (8 months)
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Income 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th Total Year 1 % of Total % of
Duct Work $ 150,000 $ 78,000 Month Month Month Month Month Month Month Month Month Month Month Month Revenue Year 2 Revenue
Mold Work $ 387,000 $ 201,240 Gross Sales or Receipts $ 51,000 $ 51,000 $ 51,000
Water Jobs $ 75,000 $ 39,000 Less: Cost of Goods Sold - Labo
Total Income $ 612,000 $ 318,240 Less: Cost of Goods Sold - Materials
Gross Profit
Cost of Goods Sold Less Expenses
Direct Cost - Labor $ 2,558 $ 55,592 Accounting & Legal
Direct Cost - Subcontractors $ 394,243 $ 37,547 Advertising
Direct Cost - Supplies & Materials $ 29,476 $ 19,379 Bad Debts
Total Cost of Goods Sold $ 426,277 $ 112,517 Insurance
Gross Profit $ 185,723 $ 205,723 Rent
Expenses Repairs & Maintenance
Advertising & Promotional $ 5,889 $ 7,199 Salaries & Wages (to others)
Amortization $ 1,100 $ - 0 Royalties
Auto & truck expenses $ 680 $ - 0 Supplies
Fuel $ 9,078 $ 6,018 Taxes & Licenses
Repair & Maintenance $ 4,155 $ 5,119 Other Expenses
Total Auto & truck expenses $ 13,913 $ 11,136 Total Expenses
Bank Charges $ 241 $ 1,145 Net Profit
Computer Software $ 1,801 $ 1,730
Continuing Education $ 581 $ 303
Disposal Fees $ 32 $ 200
Dues & Subscriptions $ 17 $ 262
Insurance $ 6,381 $ 4,309
Insurance - Liability $ 2,853 $ 3,810
Insurance-Auto & W/C $ 1,628 $ 1,628
Interest Expense $ 4,079 $ 7,915
Lab Fees $ 4,224 $ 3,490
Legal & Professional Fees $ 8,191 $ 5,152
Meals $ 298 $ 1,128
Merchant Account Fees $ - 0
QuickBooks Payments Fees $ 4,472 $ 3,192
Total Merchant Account Fees $ 4,472 $ 3,784
Miscellaneous $ 326 $ - 0
Office Supplies $ 1,605 $ 1,381
Payroll Expenses $ - 0
Office Taxes $ 6,375 $ 3,953
Offiice Payroll $ 85,000 $ 52,700
Total Payroll Expenses $ 91,375 $ 56,653
Payroll Processing Fee $ 522 $ 9
Purchases $ 1,204 $ - 0
Rent Expense $ 745 $ 2,871
Royalty Payment $ 3,094 $ 29,278
Small Equipment Purchase $ 974 $ - 0
Taxes & Licenses $ 635 $ 1,110
Technology Fee $ 609 $ 1,638
Telephone $ 1,967 $ 2,021
Travel $ 4,829 $ - 0
Uncategorized Expense $ - 0 $ - 0
Total Expenses $ 163,584 $ 147,560
Net Operating Income $ 22,139 $ 58,162
Please note, while these numbers and factors are based on an actual business, the data has been changed.
The information is to be used for ACC202 exercise purposes only.
Important Variables to consider:
* 2019 Water jobs included a hu
icane flooding
* 2020 values include the impact driven by COVID shutdown
* Contractually, Royalties should be 10% of Revenues
* The franchise recomends that marketing spend be no less than ~3% of sales
* Average Sales for a multi-te
itory franchise are $600k, median sales $550k. -Top te
itory was $10M+
* A single te
iotry is ~50,000 households.
* Gross Margins for the industry are 65-70%, technicians perfoming the work are counted in the COGS #.