Cafes Monte Bianco Table

Profit Plans

Income States 2000 and 2001 (Private Brand strategy) (Thousands of Italian liras) Private Brand Strategy (2001)

Revenues Premium Private

52,800,000 52,800,000

Cost of goods Sales Variable

Fixed Total Cost of Sales

39,600,000

3,319,500 42,919,500

Gross Margin

9,880,500

R&D expenses

832,032.5

Marketing expenses Selling expenses

0 1,251,148.5

Administrative expenses

2,376,000

Interest expenses

3,825,000

Operating expenses

8,284,181

Profit before Taxes

1,596,319

Taxes (40%)

638,527.6

Net profit

957,791.4

Cash flow 2001 (Private Brand strategy) (Thousands of Italian liras, Indirect Method) Net Profit

957,791.4

Adjust for Depreciation

2,993,700

Decrease in Inventory Increase in Account receivable Net cash Flow

1,148,400 (10,273,133) (5,173,241.6)