Part B: Practicing the Math 1. Fill in the missing values in Chart 1, Part 1 Income Statement with COGS. 2. Complete Chart 1, Part 2, selected vertical, horizontal and ratio analysis. Then analyze the data to assess company performance. Record your analysis in Chart 2. Is this company performing good or bad? Be prepared to explain your answer. 3. Using Historical performance data, make determine a sales forecast and market strategy changes that would be needed to achieve this sales target. Present this "plan" in a Pro-forma Income Statement using Chart 1, Part 3 Chart 1: Income Statement with COGS 1 Income 2006 2007 2008 2009 2010 3 2011 F Statement Sales 37,000 63,000 71,000 98,000 125,500 1 Opening Inventory 6,000 8,500 2 Purchase 10,000 15,000 43,000 3 Goods Available 17,000 32,000 79,000 Closing Inventory 2,000 6,000 3,500 28,500 COGS 43,000 Gross Profit 55,000 Fixed Costs $40,000 $40,000 $40,000 $40,000 $40,000 Net profit 9 2 Analysis 2006 2007 2008 2009 2010 3 2011 F Gross Margin % 10 Net Margin % 11 Average Inventory 12 Inventory Turnover 13 % Change in Sales 14 % Change in Gross 15 Profit % Change in Net Profit 16 Chart 2: Strengths and Weaknesses Chart 2 Analysis Strengths Weaknesses From Income Statement From Vertical Analysis From Horizontal Analysis From Ratio Analysis Overall Assessment