Bobble In Style Presentation Tim Bozman, Pamela Johnson, Monique Sargeant MGMT 640 George Darko April 16, 2017 1 Executive Summary 2 OVERVIEW Financial Statements Financial Ratios Cost Classification Net Present Value Budget Preparation Incremental Analysis Break-Even Analysis Contribution Margin If owners do not understand their financials beyond basic cost a loss may be incurred. Team 4 will assist Mr. and Mrs. Lee with pitching their idea of Bobble In Style (bobble heads) by helping them to understand their business financials. Financial statements (balance sheet, income statement, and a cash flow statement) and financial ratios ( net profit margin, quick ratio, and debt-to-equity ratio) are prepared to show the owners overall expenses, profit or loss, the financial stability of the company, and what the ratios mean. Also cost classification, net present value, and budgets are explained in detail. Finally, an incremental and a break even analysis along with a contribution margin is assessed. Will Mr. and Mrs. Lee understand the financials enough to present to Shark Tank? 3 Balance Sheet Asset Liabilities Owner’s Equity The balance sheet provides all of Bobble In Style asset and liabilities to determine the total owners equity. For year end December 31, 2016 Bobble In Style has been able to retain a equity total of $30,923. Above will show all the total assets, and liabilities which was taken into consideration. All the current assets were total along with all the fixed assets. The current assets represents any value of assets which can be converted into cash at the end of the year. The fix assets contributes items which are not sold at the end of the year. The liabilities are also totaled to determine any gain or loss throughout the year. Liabilities are any debts Bobble In Style have accrued. The total liabilities of $200 have been subtracted from the total assets of $31,123 leaving owners capital of $30,923. 4 Income Statement Gross profit Expenses Taxes Net profit The income statement sometimes refereed to as the profit and loss statement shows profits or losses within a certain time period. Above Bobble in Style gross sales minus coupons and discounts and cost of goods are $22,466. All other expenses taken into consideration are a total of $6,385. The profit before taxes is $16,081, subtract the 26 percent tax still leaves a net profit of 11,899.94 for Bobble In Style to re-invest over the next year. 5 Cash Flow Statement Operating activities Investing activities Financial activates The cash flow statement, another major piece of the total financial statement provides a good analysis of how stable the company is financially. The cash flow statement will help everyone understand how funds are distributed over a period of time. All the cash flows from operating activities are provided along with all calculations to show Bobble In Style is able to provide profits throughout the year and maintain fina ...

1. Bobble In Style Presentation
Tim Bozman, Pamela Johnson, Monique Sargeant
MGMT 640
George Darko
April 16, 2017
1
Executive Summary
2
OVERVIEW
Financial Statements
Financial Ratios
Cost Classification
Net Present Value
Budget Preparation
Incremental Analysis
Break-Even Analysis
Contribution Margin
If owners do not understand their financials beyond basic cost a

2. loss may be incurred. Team 4 will assist Mr. and Mrs. Lee with
pitching their idea of Bobble In Style (bobble heads) by helping
them to understand their business financials. Financial
statements (balance sheet, income statement, and a cash flow
statement) and financial ratios ( net profit margin, quick ratio,
and debt-to-equity ratio) are prepared to show the owners
overall expenses, profit or loss, the financial stability of the
company, and what the ratios mean. Also cost classification, net
present value, and budgets are explained in detail. Finally, an
incremental and a break even analysis along with a contribution
margin is assessed. Will Mr. and Mrs. Lee understand the
financials enough to present to Shark Tank?
3
Balance Sheet
Asset
Liabilities
Owner’s Equity
The balance sheet provides all of Bobble In Style asset and
liabilities to determine the total owners equity. For year end
December 31, 2016 Bobble In Style has been able to retain a
equity total of $30,923. Above will show all the total assets,
and liabilities which was taken into consideration. All the
current assets were total along with all the fixed assets. The
current assets represents any value of assets which can be
converted into cash at the end of the year. The fix assets
contributes items which are not sold at the end of the year. The
liabilities are also totaled to determine any gain or loss
throughout the year. Liabilities are any debts Bobble In Style
have accrued. The total liabilities of $200 have been subtracted
from the total assets of $31,123 leaving owners capital of
$30,923.

3. 4
Income Statement
Gross profit
Expenses
Taxes
Net profit
The income statement sometimes refereed to as the profit and
loss statement shows profits or losses within a certain time
period. Above Bobble in Style gross sales minus coupons and
discounts and cost of goods are $22,466. All other expenses
taken into consideration are a total of $6,385. The profit before
taxes is $16,081, subtract the 26 percent tax still leaves a net
profit of 11,899.94 for Bobble In Style to re-invest over the
next year.
5
Cash Flow Statement
Operating activities
Investing activities
Financial activates
The cash flow statement, another major piece of the total
financial statement provides a good analysis of how stable the
company is financially. The cash flow statement will help
everyone understand how funds are distributed over a period of
time. All the cash flows from operating activities are provided
along with all calculations to show Bobble In Style is able to

4. provide profits throughout the year and maintain financially.
6
Net Profit Margin
Net Income
Gross Sales
Net Profit Margin
Net income of $21,510.86 divided by Gross total sales of
$33,291.00 equals .65 which is 65%.
This percentage indicates that the company is good at
converting revenue into profits available for shareholders.
7
Quick Ratios
Assets
Liabilities
Quick Ratio is 18.01
Total Assets of $32,123.00 minus Inventory of $10,507 equals
$21,616.00
$21,616.00 is then divided by Liabilities of $1,200.00 which

5. equals a quick ratio of 18.01 which means that there are more
quick assets than current liabilities.
8
Debt to Equity Ratio
Assets
Inventory
Liabilities
Debt-to-Equity Ratio is .042
Debt Ratio is .04
Total Debt is $1,284.92
Total Equity is $30,838.10
Total Debt of $1,284.92 divided by Total Equity of $30,838.1
equals .042 which is the Debt-to-Equity Ratio
This ratio indicates that the company has taken on very little
debt and has low risk
9
Cost Classification
Fixed costs
Variable costs
Monthly budget

6. The cost classification shows the fixed and variable cost and
monthly budget allowed for Bobble In Style. As the activity in
the company changes some cost may change and some will
remain as is. As shown above the yearly gross sales are
$33,291. If broken down on a month-to-month basis, Bobble In
Style averages around $2,774.25. After adding up all expenses
totaling $1,885.00 a profit of $889.25 remains.
10
Net Present Value
Investment
Discount Rate
Cash inflow/outflow
Net present value is the discount value of an investment which
will determine cash inflows minus the discounted value of cash
outflows
11
Budget Preparation - Quadrupled Production
Production increase for 280 units
Expenses
12

7. Incremental Analysis
Incremental revenue
Incremental costs
Option 1 will cost $600.00 more than Option 2 which is the
larger space that will accommodate increased production
13
Break-Even Analysis
Contribution Margin
Contribution.
BEP in units = fixed costs / contribution per unit or sales =
expenses
Sales = 840 units per year
Selling price $79.00
Contribution margin/unit calculations
Contribution = selling price – variable costs
We must first calculate the contribution per unit of sale and
then calculate the fixed costs so that we can divide them by
each other to get the breakeven point in output. When
calculating the contribution per unit of sales, it entails
subtracting the variable costs from the unit price per unit.
Variable costs are those costs that can be directly attributed to a
unit of product and will usually increase with increase in
output. We subtract the variable cost of $21.5 from the unit

8. selling price of $79 and we get a contribution margin of $57.50.
14
Contribution Margin
Fixed Cost
Break Even Point
Fixed costs involves all those costs that will recur from period
to period and they remain unchanged over time. For instance,
the conference exhibitor fees seem not to change and will be
paid the same regardless of the company using it or not.
Therefore the above listed costs are not attributed directly to a
unit product and will remain constant regardless of the
production level. The total of the fixed costs brings a $21,115
figure. Therefore, since we have both the fixed costs and the
contribution cost per unit, we can now get the Break Even Point
in units using the formula below.
BEP in units = fixed costs / contribution per unit or sales =
expenses
BEP= $21,115/$57.50
= 367.217
= 368 UNITS
15
RECOMMENDATIONS

9. 16
Conclusion
Owners must understand their financials to determine if a profit
or loss may occur. Team 4 assist Mr. and Mrs. Lee with
pitching their idea of Bobble In Style (bobble heads) by helping
them to understand their business financials. Team 4 prepared
financial statements (balance sheet, income statement, and a
cash flow statement) and financial ratios ( net profit margin,
quick ratio, and debt-to-equity ratio) showing the owners
overall expenses, profit or loss, the financial stability of the
company, and what the ratios meant. Also cost classification,
net present value, and budgets were explained in detail. Finally,
Team 4 assessed an incremental and a break even analysis along
with a contribution margin. Mr. and Mrs. Lee understands the
financials enough to pitch their idea to Shark Tank.
17
BOBBLE IN STYLE
BALANCE SHEET
12/31/2016
ASSETS
CURRENT
CASH21120
ACCOUNTS RECEIVABLES496
TOTAL CURRENT ASSETS21616
FIXED
INVENTORY10507
ACCUMULATED DEPRECIATION-1000
TOTAL FIXED ASSETS9507
TOTAL ASSETS31123
LIABILITIES

10. CURRENT
ACCOUNTS PAYABLE200
TOTAL CURRENT LIABILITES200
SHAREHOLDERS EQUITY
COMMON STOCK0
OWNERS CAPITAL30923
TOTAL OWNER'S EQUITY30923
TOTAL LIABILITIES & SHAREHOLDERS EQUITY31123
BOBBLE IN STYLE
INCOME
STATEMENT
YEAR
ENDING DECEMBER 30, 2016
GROSS SALES33291
COUPONS AND DISCOUNTS-549
COST OF GOODS-10276
GROSS PROFIT22466
LABOR0
ADVERTISING FEES2000
BANK FEES120
PHONE/INTERNET1200
SHIPPING1380
UTILITIES900
OFFICE SUPPLIES785
TOTAL EXPENSES6385
PROFIT BEFORE TAXES16081
INCOME TAX 26%4181.060.26
NET PROFIT11899.94
BOBBLE IN STYLE
CASH FLOW STATEMENT
YEAR ENDED DECEMBER 31, 2016
Cash flows from operating activities
Profit before tax1608116081
Adjustments for
Depreciation800800
21120

11. 21,920.00
Cash generated from operations16881
Income tax paid-4181
Net cash from operating activies ( A )12700
Cash flows fom investing activities
Proceeds from disposal of investment3000
Capital Expenditure-1600
Net cash used in investing activities ( B )1400
Cash flows from financing activities1600
Repayment of bank loan-50001600
Interest expense associated with bank loan-345
Net cash from financing activities ( C )-5345
Net increase in cash & cash equivalents (A+B+C)8755
Cash and cash equivalents at start of the year21120
Cash and cash equivalents at end of the year29875
Net Profit Margin is .65
Net Income$21,510.86
Gross Sales$33,291.00=0.64615
Quick Ratio is 18.01
Total Assets-Inventory
$32,123.00-$10,507.00=$21,616.00
Liabilities$1,200.00=18.013333
18.01
Debt-to-Equity Ratio is .042
Debt Ratio:Liabilities$1,200.00
Assets$32,123.00=0.03735640.04
Total Debt:Total AssetsxDebt Ratio
$32,123.00x0.04=$1,284.92
Total Equity:Total Assets-Total Debt
$32,123.00-$1,284.92=$30,838.08
Total Debt$1,284.92
Total Equity$30,838.10=0.041670.042
COST CLASSIFICATION/BUGET
YearlyMonthlyFixedVariable
Gross Sales33291122774.25
ADVERTISING FEES400012333.334000

12. LABOR4001233.33400
PACKING SUPPLIES300012250.003000
OFFICE SUPPLIES8001266.67800
PHONE/INTERNET SERVICE115129.58115
PRODUCT SUPPLIES900012750.009000
SHIPPING FEES10001283.331000
CONFERENCE EXHIBITOR FEE300012250.003000
TRAVE EXPENSES 120012100.001200
UTILITIES FOR HOME WORKSHOP105128.75105
Total Monthly Expenses1885.00
Monthly Profit889.25
BOBBLE IN STYLE
NPV FROM EQUIPMENT INVESTMENT
EQUIPMENT
Initial investmentDiscount Rate year 1year 2year 3
42,00012%17,00029,00040,000
NPV Total
$22,114.65
Monthly Budget Quadrupled Production
Advertisiing Fees$1,333.32
Labor$133.32
Packing Supplies$1,000.00
Office Supplies$266.68
Phone/Internet Service$9.58
Product Supplies$3,000.00
Shipping Fees$333.32
Conference Exhibitor Fee$250.00
Travel Expenses$100.00
Utilities for Home Workshop$8.75
Total Monthly Expenses$6,434.97
Gross Sales$11,097.00
Monthly Profit$4,662.03
Option 1
Incremental Revenue:$0.00
Incremental Cost:$1,550.00x12months=$18,600.00
Option 2

13. Incremental Revenue:$0.00
Incremental Cost:$1,500.00x12months=$18,000.00
Details amount amount
Selling price
$79.00
Less: variable costs
Labor costs($400/70) 5.71
Shipping fees($1000/70) 14.29
Home workshop
utility($105/70)
1.5 $21.50
Contribution per unit
$57.50
Details amount
Advertisement
fees
4000
Packaging
supplies
3000
Office supplies 800
Phone and
internet
115
Product supplies 9000
Exhibitor fees 3000
Travel costs 12000
Total
$21,115