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  • Shahnawaz Inflaction Rate

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    shahnawazmoti
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    The document outlines a company's planned sales, costs, and profits over a four year horizon. It shows the company's planned and actual sales volumes, prices, revenues, costs, profits, and taxes. It also models different scenarios accounting for inflation, sales volume and price changes, and varying sales volumes to understand their impact on net profits after tax. Graphs and tables are presented to compare the results of the different scenarios.

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    The document outlines a company's planned sales, costs, and profits over a four year horizon. It shows the company's planned and actual sales volumes, prices, revenues, costs, profits, and taxes. It also models different scenarios accounting for inflation, sales volume and price changes, and varying sales volumes to understand their impact on net profits after tax. Graphs and tables are presented to compare the results of the different scenarios.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    28 views4 pages

    Shahnawaz Inflaction Rate

    Uploaded by

    shahnawazmoti
    The document outlines a company's planned sales, costs, and profits over a four year horizon. It shows the company's planned and actual sales volumes, prices, revenues, costs, profits, and taxes. It also models different scenarios accounting for inflation, sales volume and price changes, and varying sales volumes to understand their impact on net profits after tax. Graphs and tables are presented to compare the results of the different scenarios.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 4

    "planing Horizo

    Planing Values Year 1 year 2


    Sales 40,000
    Planned Growth 10%
    > % Change Volume 10%
    Planned Sales Vol 40,000 44,000
    Actual Sales volume 44,000 48,400

    Product Price 8.00


    Price Increases 0.30
    >% Change Price 0%
    Planned Price 8.00 8.30
    Actual Price 8.00 8.30

    Sales Revenue 352,000 401,720

    > Inflation 0% 3%

    Variable Unit Costs


    Raw Material 3.00 3.00 3.09
    Labour Costs 2.00 2.00 2.06
    Packaging 0.90 0.90 0.93
    Distribution 1.00 1.00 1.03
    Total Unit Cost 6.90 7.11

    Direct Costs 303600 343979

    Gross Profit 48,400 57,741

    Fixed Costs 10,000 10,000 10,000

    Net Profit Before Tax 38,400 47,741


    Less: Tax @ 23% 8,832 10,980

    > Net Profit After Tax 29,568 36,761

    Result Table for each scenario showing net profits after tax:

    "Planning Hor
    Year 1 Year 2
    > Base Case------ INFLATION----(3%,5%, 6%) 26,180 32,719
    > Scenario 1 -----HIGH INFLATION ---- 26180 25706

    52576
    > Scenario 2 ----- VOLUME (3%) & Price (10%) Increases 62895

    > Scenario 3 ----- VARYING SALES VOLUME FROM -5% to +10%


    Sales Vol = -5% 24,486 30,698
    Sales Vol =0% 26,180 32,719
    Sales Vol = +5% 27,874 34,740
    Sales Vol = 10% 29,568 36,761

    Graphical Representation
    Senario 3: Comparison of Profits

    150000
    140000
    130000
    120000
    110000 Series4
    100000
    Series3
    90000
    80000
    Series2
    70000 Series1
    60000
    50000
    40000
    30000
    20000
    10000
    0
    1 2 3 4
    "planing Horizon"
    year 3 year 4 Total

    48,400 53,240 185640.00


    53,240 58,564 204204.00

    8.60 8.90 33.80


    8.60 8.90 33.80

    457,864 521,220 1732803.60

    5% 6%

    3.24 3.44
    2.16 2.29
    0.97 1.03
    1.08 1.15
    7.46 7.91

    397296 463247 1508120.88

    60,568 57,973

    10,000 10,000

    50,568 47,973
    11,631 11,034

    38,938 36,939 142205.69

    fits after tax:- Case Study 3.2

    "Planning Horizon"
    Year 3 Year 4 Totals
    34,698 ### 126,478 126,478
    18420 7425 77731

    68982 71678 256131

    32,578 ### ###


    34,698 ### ###
    36,818 ### ###
    38,938 ### ###

    ntation
    fits

    Series4
    Series3
    Series2
    Series1

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