Case Study - Vintage Restaurant

Using the assumptions given in the case, all elements of income statement and balance sheet can be projected for next three years 2010, 2011 and 2012. Sales cycle of the products of the company is such that sales of a particular product increases initially for few years and then starts to decline as the new technology

The current demand forecasting method is based on qualitative techniques more than quantitative ones. If the forecast is not accurate, the company would carry both inventory and stock out costs. It might lose customers due to shortage of supply or carry additional holding costs due to excess production. If the actual demand doesn’t match the forecast ones, and the forecast was too high, this will result in high inventories, obsolescence, asset disposals, and increased carrying costs. When a forecast is too low, the customer resorts to a competitive product or retailer. A supplier could lose both sales and shelf space at that retail location forever if their predictions continue to be inaccurate. The tolerance level of the average consumer

4. For the most recent year, what is the amount of cost of goods sold in the

The model analyses quarter by quarter. As off now the budget and expected revenue is as follows:

* If we surmise that the company’s specialist’s predictions of 4% on market growth along with renewing current and or adding more customer contracts then the profits should be as follows:

Actual sales = 1686 (in million €) and Break even sales = 1126.61(in million €)

However, if the difference between the total sales and the total cash received (for the period ending December

Greaves provided five years and two months of annual sales data. Using Stat Tools, the following analysis were run: Moving Average, Exponential Smoothing Simple, Exponential Smoothing Holt’s, and Exponential Smoothing Winter’s. Following a comparison on the average on all models, the Exponential Smoothing Winter’s was found to be the most suitable model for the case. A graph

Mr. Fischer made relatively conservative forecasts based on largely reasonable assumptions of seasonality, investment needed for PPE and continuing levels of sales. Based on the data at Mr. Fischer had in June 1995 it is difficult to criticize his projections.

In this specific Case, that has asked the Sale growth for the four-year period, can be calculated ‎as bellow;‎

Hence in the above computation, I had taken an assumption that the data provided on the top line is annual figures.

Compute the amount of gross profit to be recognized from the installment sale in 2006, 2007, 2008, 2009, and 2010 using point of delivery revenue recognition. Ignore interest charges.

3. Refer to the monthly sales forecasts given in the first Table. Assume that these amounts are realized and that the firm’s customers pay exactly as predicted.

$2,000,000 + No. of employees * $500,000 = No. of employees * Volume of sales * Selling Price

Calculations to estimate the following years 5 and 6 are done in the excel tab called ‘Estimation Years 5 and 6’. Taking into account that the predicted remaining