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EXHIBIT 8 |
| PRO FORMA |
COMMON-SIZE INCOME STATEMENT |
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ON OLALLIEBERRY PIE COMPANY (OPC) |
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FUTURE ESTIMATES FOR THE FISCAL YEARS 1998-2002 |
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FOR STRATEGIC ALTERNATIVE #1 – |
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STABILITY |
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CONTINUE DOING THE SAME |
| Key Assumptions: |
| Estimated Net Sales growth per year (%): |
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2.4% |
average last 5 years |
| Estimated Cost of Merchandise Sold ( %): |
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71.1% |
average last 5 years |
| Estimated selling and store operating expenses (%): |
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17.3% |
average last 5 years |
| Estimated total operating expenses (%): |
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19.2% |
average last 5 years |
| Estimated income interest expenses (%): |
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-0.04% |
average last 5 years |
| Estimated provision for income tax (%): |
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3.0% |
average last 5 years |
| ($ in millions) |
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Common-Size Percentages |
| Fiscal Years Ended |
1998 |
1999 |
2000 |
2001 |
2002 |
1998 |
1999 |
2000 |
2001 |
2002 |
| Net Sales |
$ 24,728 |
$ 25,321 |
$ 25,929 |
$ 26,551 |
$ 27,189 |
100.00% |
100.00% |
100.00% |
100.00% |
100.00% |
| Cost of Merchandise Sold |
17,589 |
18,011 |
18,443 |
18,886 |
19,339 |
71.13% |
71.13% |
71.13% |
71.13% |
71.13% |
| Gross Profit |
7,139 |
7,310 |
7,486 |
7,665 |
7,849 |
28.87% |
28.87% |
28.87% |
28.87% |
28.87% |
| Operating Expenses |
|
| Selling and Store Operating |
4,278 |
4,381 |
4,486 |
4,593 |
4,704 |
17.28% |
17.28% |
17.28% |
17.28% |
17.28% |
| Pre-Opening |
na |
na |
na |
na |
na |
| General and Administrative |
na |
na |
na |
na |
na |
| Non-Recurring Charge |
na |
na |
na |
na |
na |
| Total Operating Expenses |
4,748 |
4,862 |
4,978 |
5,098 |
5,220 |
19.20% |
19.20% |
19.20% |
19.20% |
19.20% |
| Operating Income |
2,391 |
2,449 |
2,507 |
2,568 |
2,629 |
9.67% |
9.67% |
9.67% |
9.67% |
9.67% |
| |
| Interest Income (Expense) |
| Interest and Investment Income |
na |
na |
na |
na |
na |
| Interest Expense |
na |
na |
na |
na |
na |
| Interest, Net |
na |
na |
na |
na |
na |
| Minority Interest |
na |
na |
na |
na |
na |
| Earnings Before Income Taxes |
$ 2,401 |
$ 2,459 |
$ 2,518 |
$ 2,578 |
$ 2,640 |
9.71% |
9.71% |
9.71% |
9.71% |
9.71% |
| Income Taxes |
$ 741.84 |
$ 759.64 |
$ 777.88 |
$ 796.54 |
$ 815.66 |
3.00% |
3.00% |
3.00% |
3.00% |
3.00% |
| Net Earnings |
$ 1,659 |
$ 1,699 |
$ 1,740 |
$ 1,782 |
$ 1,824 |
6.71% |
6.71% |
6.71% |
6.71% |
6.71% |
| Instructor's Note: numbers are for illustration only. They do not match other exhibits. Your numbers in your exhibit DO NEED to match your case statistics and your analysis. |
