excel homework

salon.xlsx

Documentation

Special Highlights Hair Salon
Author
Date
Purpose	To develop a projected income statement for Special Highlights Hair Salon

Special Highlights Hair Salon
Income Statement
Income
Gross Sales	294000
Cost of Sales	97020
Gross Profit
Operating Expenses
Salaries and Wages	98280
Taxes and Benefits	7371
Insurance	3840
Utilities/Telephone	10320
Advertising	1800
Supplies/Misc.	4000
Lease	9020
Interest	2707
Depreciation	3570
Sales Tax	14700
Total Operating Expenses
Total Operating Profit/Loss
Income Taxes
Net Profit/Loss
Assumptions for the Projected Income Statement
Gross Sales	Projected 20 people per day at an average expenditure of $42 (source: National Salon News, May 5, 2015) over a 350-day year.
Cost of Sales	33% of Gross Sales (source: National Salon News, May 5, 2015)
Payroll	Labor costs are assuming: 4 stylist hired @ $13.50 for 35/hrs per week, 52 weeks per year.
Taxes and Benefits	FICA taxes are assumed to be 7.5% of gross wages
Insurance	Includes owner's liability ($200) and workman's compensation ($120)
Utilities/Telephone	Gas, electricity, water and trash collection average $720 per month. The phone averages $140 per month.
Advertising	Assume $1,000 for the year plus $800 for initial advertising
Supplies/Misc.	Office supplies, computer equipment and support, cleaning supplies.
Lease	The first month's rent is included in the deposit, assume 11 months rent @ $820 per month.
Interest	The $65,000 loan was secured with an annual interest payment of $2,707.
Depreciation	Salon equipment valued at $35,700 with a 10% straight line depreciation over 10 years at $3,570 per year.
Sales Tax	Assume a 5% sales tax on gross sales.

Prepared by Sarah Jones &D

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