Solution To Case No.

12

SWOT Analysis
Part (A) SWOT Analysis of Current Position STRENGTHS WEEKNESS 10 Year Business Limited range of product 1 Experience line Location on heavily 2 traveled road ina No permanent office boy residential neighborhood Parking conditions are 3 satisfactory 4 No Competitor Sale at High charges ie 205 30% open from 8 am to 8 Daily 6 pm He enentually lower his 7 prices to be more competitive Good repute cum character 8 with NGO Insurance policies for theft, 9 fire and accidents (vechicles) 10 Only 10% sales is on credit Part (B) SWOT Analysis about Prospective Position STRENGTHS WEEKNESS 10 Year Business 1 Experience Location on heavily 2 traveled road ina residential neighborhood Parking conditions are 3 satisfactory 4 No Competitor min 4 years Sale at High charges ie 205 30% open from 8 am to 8 Daily 6 pm He enentually lower his 7 prices to be more competitive Good repute cum character 8 with NGO Insurance policies for theft, 9 fire and accidents (vechicles) 10 Only 10% sales is on credit 11 Wider range of product line 12 Permanent office boy

SWOT Analysis
OPPORTUNITIES THREATS To acquire the neighboring Neighboring store will be store advertised to sale To Offer wider range of goods

OPPORTUNITIES Acquired the neighboring store

THREATS

BASHIR GROCER STORE BALANCE SHEET AS ON 31 DECEMBER 2003 ASSETS RS. LIABILITIES & CAPITAL CURRENT ASSETS: Owner's Equity Cash in register 5000 Bashir's Capital ? Cash at Bank 179530 3590.6 3590 183120 Prepaid Insurance 59560 Current Liabilities: Less expired 29780 29780 Due to NGO - CPLTD Prepaid Licence 15000 Income Tax Payable Store Stock 452580 Accruals FIXED ASSETS: Minivan ### Long Term Liabilities: Coca Cola Cooler 30000 Due to NGO - LTD Freezer Ice Cream type 70000 2 door commercial refrigrator 150000 Mini Generator 10000 2m Double deck produce counter 5000 2 Produce scales 10000 Cash Register 20000 Counter and Stool 30000 Adding Machine 2000 Two 4m grocery gondolas 10000 Two 6m grocery gondolas 30000 Gross Fixed Assets ### Less Accumulated Dep 733500 Net Fixed Assets 733500

RS. 696930

108680 145900 200980

266490

TOTAL ASSETS

###

###

BASHIR GROCER STORE INCOME STATEMENT FOR THE YEAR ENDED 31 DEC 2003 PARTICULARS Revenues: Cash Sales Credit Sales Total Sales Less CGS: Beginning Stock Cash Purchase Credit Purchases Total Purchases Goods available for sale Less Ending Sock C.G.S Gross Profit Less Operating Expenses: Lease deposits Selling, G & A Expenses Insurance expired 8242790 94910

RS.

%age

8337700 144110 5913310 339440 6252750 6396860 452580

100

5944280 71.29 2393420 28.71 300000 1634580 29780 1934580 458840 75030 3590 387400 135590 251810

Total Operating Expenses Operating Profit Less Other Expenses and Add other Incomes Interest Expense Interest Income Profit Before Tax Less tax Payable Net Profit after Tax net profit 3% CGS %age 71% GP %age 29%

4.65 35 3.02

145900

Bashir's Suppertte Cash Budget

Cash Receipts: Cash Sales 90% of credit sales 10% of last Monts credit sales For the Year 2004 December January ebruary F March April May 85419 9491 June

Bashir's cash contribution ### Cash Payments Lease Payments 75000 75000 Lease deposit guarntee 25000 Purchase of existing stock ### Reserve for new stock ### Refrigeration and Freezer and Generator ### New shelving ### Salary of Full time assistant 25000 25000 25000 25000 25000 25000

Purchases are 70% of sales min cash balance 100000

July

August September November October December

75000

75000

25000 25000 25000 25000 25000 25000

BASHIR'S SUPPERETTE FORECASTED BALANCE SHEET AS ON 31 DECEMBER 2004 ASSETS RS. LIABILITIES & CAPITAL

RS.

BASHIR'S SUPPERETTE FORECASTED INCOME STATEMENT FOR THE YEAR ENDED 31 DEC 2004 PARTICULARS RS. Revenues:

Less Expenses:

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