Goal Kick Sports New Store Financial Model
Parameters
Store Size (square feet)
7,500
Total Fixed Assets
$ 280,000
Straight Line Depreciation period
5
Discount Rate
10%
Tax Rate
33%
Inflation Rate
2%
Cost of Merchandise (% of sales)
28%
First Year Sales Revenue
$ 950,000
Annual Growth Rate of Sales
15%
Operating Expenses
Rent Per Square Foot $
30
Labor Cost $ 150,000
Other Expenses $ 235,000
Model
Year
1
2
3
4
5
Sales Revenue
$950,000 $1,092,500 $1,256,375 $1,444,831 $1,661,556
Cost of Merchandise
$266,000 $305,900 $351,785 $404,553 $465,236
Labor Cost
$150,000 $153,000 $156,060 $159,181 $162,365
Rent
$225,000 $229,500 $234,090 $238,772 $243,547
Other Expenses
$235,000 $239,700 $244,494 $249,384 $254,372
Net Operating Income
$74,000 $164,400 $269,946 $392,942 $536,037
Depreciation Expense
$56,000 $56,000 $56,000 $56,000 $56,000
Net Income Before Tax
$18,000 $108,400 $213,946 $336,942 $480,037
Income Tax
$5,940 $35,772 $70,602 $111,191 $158,412
Net After Tax Income
$12,060 $72,628 $143,344 $225,751 $321,625
Plus Depreciation Expense
$56,000 $56,000 $56,000 $56,000 $56,000
Annual Cash Flow
$68,060 $128,628 $199,344 $281,751 $377,625
Discounted Cash Flow
$61,873 $106,304 $149,770 $192,440 $234,475
Total Discounted Cash Flow
$744,862
