A case study of P'kolino for the Entrepreneurship course in NCTU. Presented in 2016/4/28 by RIO(Group 6)

1. Case
Report
Group 6
Presented by RIO

2. Pro-Forma
Financial Statements
擬制性財務報表

4. About
Their
Pro-Forma Financial
Statements

7. “ Make better products
to improve play at home ”

8. Development Marketing

9. Outsourcing

10. Outsourcing
Lean
Organization

11. About
Their
Pro-Forma Financial
Statements

12. Financial Statements
’s Pro-Forma

13. Product Selling Price
Manufacturi
ng Cost
Contribution
in US$
Contribution
as % of
Price
Table A $650 $260 $390 60%
Table B $1,200 $260 $940 78%
Table C $300 $130 $170 57%
Storage Unit $450 $140 $310 69%
Toy kit $30 $10 $20 67%
Accessories $60 $28 $32 53%
Market Year 1 Year 2 Year 3 Year 4 Year 5
Table A 449 939 1,268 1,712 2,311
Table B 242 506 683 922 1,244
Table C 600 1,000 1,200
Storage Unit 228 477 824 1,168 1,533
Toy kit 1,313 3,851 4,814 7,618 11,027
Accessories 9,925 15,606 21,068 28,442
Revenue
Mix
Year 1 Year 2 Year 3 Year 4 Year 5
Tables 79% 57% 54% 55% 54%
Storage 13% 9% 11% 11% 11%
Toy Kits 8% 9% 6% 7% 8%
Accesories 25% 28% 27% 27%
Revenue Year 1 Year 2 Year 3 Year 4 Year 5
Tables $481,501
$1,008,3
61
$1,589,9
88
$2,274,0
38
$3,134,9
20
Storage $79,871 $167,267 $334,369 $474,521 $656,148
Toy Kits $50,772 $158,621 $189,781 $310,663 $462,848
Accesories $0 $449,603 $807,891
$1,109,2
35
$1,539,2
78
Total $612,145
$1,783,8
51
$2,922,0
20
$4,168,4
57
$5,793,1
91
Growth 191% 64% 43% 39%
77%
74%
83%
86%
90%
23%
26%
17%
14%
10%
Year 1
Year 2
Year 3
Year 4
Year 5
Direct Retail
0
200
400
600
800
05/08 05/12 06/04 06/08 06/12
Manufacturing
Costs
Year 1 Year 2 Year 3 Year 4 Year 5
Table A $116,610 $244,205 $329,677 $445,064 $600,836
Table B $62,790 $131,495 $177,518 $239,650 $323,527
Table C $84,000 $140,000 $168,000
Storage Unit $31,878 $66,759 $115,325 $163,668 $214,652
Kits $25,818 $85,988 $95,251 $157,954 $237,232
Accessories $277,900 $436,968 $589,907 $796,374
Other $29,193 $54,504 $200,357 $219,636 $245,602
Total COGS $266,289 $860,851
$1,439,0
96
$1,955,8
79
$2,586,2
23
Year 1 % Year 2 % Year 3 % Year 4 % Year 5 %
Revenues $612,14
5
10
0
%
$1,783,
851
10
0
%
$2,922,
020
10
0
%
$4,168,
457
10
0
%
$5,793,19
1
10
0
%
Cost of Sales $266,28
9
44
%
$860,85
1
48
%
$1,439,
096
49
%
$1,955,
879
47
%
$2,586,22
3
45
%
Gross Profit $345,85
6
56
%
$923,00
0
52
%
$1,482,
924
51
%
$2,212,
578
53
%
$3,206,96
8
55
%
Sales & Marketing $121,37
9
20
%
$354,76
8
20
%
$559,68
1
19
%
$861,46
7
21
%
$1,180,86
2
20
%
Salaries &
Benefits $40,250 7
% $80,500 5
%
$242,93
2
8
%
$322,50
3
8
% $335,403 6
%
Advertising $15,000 2
% $50,000 3
% $60,000 2
%
$150,00
0
4
% $300,000 5
%
Mail Campaign $20,000 3
%
$150,00
0
8
%
$150,00
0
5
%
$250,00
0
6
% $350,000 6
%
Free Kit $15,008 2
% $31,429 2
% $42,429 1
% $57,279 1
% $77,327 1
%
Web Expenses $25,000 4
% $25,000 1
% $35,000 1
% $40,000 1
% $60,000 1
%
Other $6,121 1
% $17,839 1
% $29,220 1
% $41,685 1
% $57,932 1
%
General &
Administration
$103,33
3
17
%
$201,58
3
11
%
$369,86
7
13
%
$424,27
6
10
% $531,254 9
%
Salaries &
Benefits $90,000 15
%
$178,25
0
10
%
$319,53
4
11
%
$367,27
6
9
% $449,587 8
%
Depreciation $1,333 0
% $3,333 0
% $10,333 0
% $17,000 0
% $21,667 0
%
Rent & Utilities $5,000 1
% $10,000 1
% $20,000 1
% $20,000 0
% $35,000 1
%
Corporate Office $7,000 1
% $10,000 1
% $20,000 1
% $20,000 0
% $25,000 0
%
Product
Development(R&D
)
$61,000 10
%
$227,32
4
13
%
$288,01
7
10
%
$318,93
8
8
% $450,095 8
%
Salaries &
Benefits
$142,32
4
8
%
$148,01
7
5
%
$153,93
8
4
% $160,095 3
%
Testing $1,000 0
% $5,000 0
% $10,000 0
% $15,000 0
% $20,000 0
%
Development $60,000 10
% $80,000 4
%
$130,00
0
4
%
$150,00
0
4
% $270,000 5
%
Other Expenses $91,304 15
%
$112,09
6
6
%
$120,55
1
4
%
$129,21
1
3
% $169,830 3
%
Legal $15,000 2
% $20,000 1
% $25,000 1
% $25,000 1
% $25,000 0
%
Relocation $10,000 1
%
Other $1,000 0
%
Insurance $15,304 3
% $44,596 2
% $73,051 3
%
$104,21
1
2
% $144,830 3
%
Interest $60,000 10
% $37,500 2
% $22,500
Total Expenses $377,01
6
62
%
$895,77
1
50
%
$1,338,
016
46
%
$1,733,
892
42
%
$2,331,84
1 ,%
Profit Before Taxes
(-
$31,160
)
-
5
%
$27,229 2
%
$144,90
8
5
%
$478,68
8
11
% $875,127 15
%
Taxes $5,446 0
% $28,982 1
% $95,737 2
% $175,025 3
%
Net Income
(-
$31,160
-
5 $21,783 1 $115,92 4 $382,94 9 $700,102 12

14. Financial Statements
Cash
Flow
Income
Statement
Balance
Sheet

15. Income Statement
1. Revenues
2. Cost of Sales
3. Expenses

16. Table A
(High)
Table B
(High)
Table C
(Mid)
Toy Kit Accessory Storage Unit

17. Income Statements
Revenues - Prices & Manufacturing Cost
260
260
130
140
390
940
170
310
Table A
Table B
Table C
Storage…
Toy Kit
Accesories
Manufacturing Cost Contribution
Gross margin > 50%

18. Income Statements
Revenues - Market
449 939 1,268 1,712
2,311
1,313
3,851
4,814
7,618
11,027
9,925
15,606
21,068
28,442
Year 1 Year 2 Year 3 Year 4 Year 5
Table A
Table B
Storage Unit
Toy Kit
Accessories
Table C

19. Income Statements
Revenues - Market
449 939 1,268 1,712
2,311
1,313
3,851
4,814
7,618
11,027
9,925
15,606
21,068
28,442
Year 1 Year 2 Year 3 Year 4 Year 5
Table A
Table B
Storage Unit
Toy Kit
Accessories
Table C
30% who buy Tables
also buy Storage Units

20. Income Statements
Revenues - Market
449 939 1,268 1,712
2,311
1,313
3,851
4,814
7,618
11,027
9,925
15,606
21,068
28,442
Year 1 Year 2 Year 3 Year 4 Year 5
Table A
Table B
Storage Unit
Toy Kit
Accessories
Table C
50% who buy Tables
also buy Toy kit per year

21. Income Statements
Revenues - Market
449 939 1,268 1,712
2,311
1,313
3,851
4,814
7,618
11,027
9,925
15,606
21,068
28,442
Year 1 Year 2 Year 3 Year 4 Year 5
Table A
Table B
Storage Unit
Toy Kit
Accessories
Table C
High-Seg Market Growth: 35%
Mid-Seg Market Growth: 45%

22. Income Statements
Revenues - Revenue Mix
79%
57%
54%
55%
54%
13%
9%
11%
11%
11%
8%
9%
6%
7%
8%
25%
28%
27%
27%
Year 1
Year 2
Year 3
Year 4
Year 5
Tables Storage Kits Accesories

23. Income Statements
Revenues - Distribution Channel
77%
74%
83%
86%
90%
23%
26%
17%
14%
10%
Year 1
Year 2
Year 3
Year 4
Year 5
Direct Retail

24. Income Statements
Revenues - Seasonal Sales
0
200
400
600
800
05/08 05/10 05/12 06/02 06/04 06/06 06/08 06/10 06/12 07/02
Winter Vacation

25. Income Statement
1. Revenues
2. Cost of Sales
3. Expenses

26. Income Statements
Cost of Sales
47% of Revenue
$0 $1,500,000 $3,000,000 $4,500,000 $6,000,000 $
Year 1
Year 2
Year 3
Year 4
Year 5
Cost of Sales Gross Profit

27. Income Statement
1. Revenues
2. Cost of Sales
3. Expenses

28. 20%
20%
19%
21%
20%
17%
11%
13%
10%
9%
10%
13%
10%
8%
8%
15%
6%
4%
3%
3%
Year 1
Year 2
Year 3
Year 4
Year 5
Marketing Administration R&D Other
Income Statements
Expenses

29. 5,000 -$3,062,500 $0 $3,062,500 $6,125,000
Year 1
Year 2
Year 3
Year 4
Year 5
Revenues Cost of Sales Expenses Net Income
Income Statements
Net Income = R - C - E
5,000 -$3,062,500 $0 $3,062,500 $6,125,000
Year 1
Year 2
Year 3
Year 4
Year 5

30. Financial Statements
Cash
Flow
Income
Statement
Balance
Sheet

31. Assets = Liability + Equity
Account
Receivable
Inventory
Account
Payable
Capital
Retained
Earning
Cash
Note
Payable
Average 30 days
Average 45
days
Average25
days
Balance Statements

32. Funding
 50.7K Equity
 Friends And Family

33. Financial Statements
Cash
Flow
Income
Statement
Balance
Sheet

34. Cash Flow
Year1 Year2 Year3 Year4 Year5
Operating
Cash Flow
(96,270) 12,259 105,346 411,680 729,092
Cash from
Investing
(64,803) (18,498) 32,456 (29,716) (31,148)
Cash from
Finance
450,700 (150,000) (100,000) (150,000) -
Change in
cash
289,628 156,240 (27,110) 231,963 697,944
Cash Flow $289,628 133,388 106,278 338,241 1,036,185

35. Thank You!