38. Retail Sales PL Template Proofread

8/12/2019 38. Retail Sales PL Template Proofread

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PROFIT AND LOSS INSTRUCTIONS

This Profit & Loss Statement (P&L) is for two products manufactured by the same company in a retail salesmodel. The product flows through the supply chain as follows: Manufacturer --> Distributor --> Retailer-->

Customer. Instructions on how to fill out the P&L statement are broken down by the tabs below.

Assumptions

Input data only in cells with blue characters. Fill in the data as accurately as possible, as this information is used

in the Retailers and Summary tabs.

Retailers

1. Input data only in cells with blue characters. All areas in black will calculate automatically. Not all blue cellsrequire inputs. If this is the case, simply enter nothing in the cell (but do not delete the line, as it will affect the

formulas).

a. Input name of retailer #1 where it says "Retailer #1" and repeat for every retailer.

b. Input the number of units sold for Product A and Product B, per retailer.

2. The Retailers tab pushes data to the Summary tab. The spreadsheet has been set up to anticipate 5 retailers.

In order to add more retailers, simply scroll down to the last remaining retailer (#5), copy the box above it and

insert below, i.e., Retailer #5 gets copied and inserted to make Retailer #6. Then link the relevant cells into the

"Group" on the corresponding Summary tab in order to accurately roll up the total.

Summary

No inputs are necessary on this tab, as the data inputted in Assumptions, Retailers, and Line Items tabs are

pushed into this tab.

Line Items

Distributor's Expenses

1. Input data only in cells with blue characters. All areas in black will calculate automatically. This tab pushesdata to the Summary tab under Distributor's Administrative Expenses. Not all blue cells require inputs. If this is

the case, simply enter nothing in the cell (but do not delete the line, as it will affect the formulas). Enter as a

negative number.

a. Distribution Expenses: Input the costs associated with transporting inventory from the manufacturer to the

retailers and any business-related travel for personnel.

b. Personnel Expenses: Input the costs associated with Sales Manager and other personnel (not salespeople)

c. Company Administration: Input the amount spent on rent, supplies, etc.


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Manufacturer's Expenses1. Input data only in cells with blue characters. All areas in black will calculate automatically. This tab pushes

data to the Summary tab under Manufacturer's Marketing and Administrative Expenses. Not all blue cells

require inputs. If this is the case, simply enter nothing in the cell (but do not delete the line, as it will affect the

formulas). Enter as a negative number.

a. Marketing Expenses: Input the above the line and below the line marketing activity names and their

associated costs.

Above-the-line marketing activities are broadcasts to mass audiences such as through TV, radio, and

newspapers and can reach a larger audience quickly. It is harder to tailor the messages or measure the return

on investment (how effective are these activities at reaching your targeted audience?) compared with below-

the-line marketing.

Below-the-line marketing can be tailored to a specific group and includes items such as leaflets, coupons, gifts

with purchase, and point-of-sale displays. It is much easier to measure the return on investment of these

activities. For example, if you offer coupons to customers, it is easy to count how many coupons were

redeemed per store. You can measure the change in sales during the months you offer the coupon compared

with the months that you did not offer that promotion to see if the increase in revenues is worth the cost.

b. Distribution Expenses: Input any costs associated with transporting the inventory and any business-related

travel for personnel.

c. Personnel Expenses: Input the costs associated with Sales Manager and other personnel (not salespeople)

d. Company Administration: Input the amount spent on rent, supplies, etc.

2012


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P&L ASSUMPTIONS

ASSUMPTIONS

Currency KH Riel The currency of the country where you are conducting business.

Exchange Rate 4,200

Product A Retail Price/Unit 120,000 The price that the manufacturer suggests the retailer should charge the customer for Product A.

Product A Distributor Price/Unit 100,000 The price that the distributor charges the retailer for Product A.

Product A Manufacturer Price/Unit 80,000 The price that the manufacturer charges the distributor for Product A.

Product A Manufacturer Cost/Unit 60,000 The cost for the manufacturer to produce Product A.

Product B Retail Price/Unit 150,000 The price that the manufacturer suggests the retailer should charge the customer for Product B.

Product B Distributor Price/Unit 130,000 The price that the distributor charges the retailer for Product B.

Product B Manufacturer Price/Unit 115,000 The price that the manufacturer charges the distributor for Product B.

Product B Manufacturer Cost/Unit 90,000 The cost for the manufacturer to produce Product B.

Value Added Tax (Retailer) 10.0% VAT is the tax on the purchase price for customers. The rate varies from country to country.Value Added Tax (Manufacturer) 10.0% VAT is applied once "value" has been added to the product at the production stage, which is when

all the supplies are assembled to create the final product. The rate varies from country to country.

If you need to report to stakeholders in different countries, reporting amounts in their currency

will help them understand the profitability of your business better. For example, if your business is

based in Cambodia but you are receiving funding from a donor in the United States, you should

report amounts converted from Cambodian Riel to US Dollars.


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RETAILERS P&L

Retailer #1 January February March April May June July August September October November December

PRODUCT A unit sales 120

PRODUCT B unit sales 175

Product A Revenue 14,400,000 0 0 0 0 0 0 0 0 0 0 0 14

Less: Product Cost (12,000,000) 0 0 0 0 0 0 0 0 0 0 0 (12

Gross Profit 2,400,000 0 0 0 0 0 0 0 0 0 0 0 2,

Gross Margin % 17%

Price/Unit 120,000 1

Profit/Unit 20,000

Product B Revenue 26,250,000 0 0 0 0 0 0 0 0 0 0 0 26


Gross Profit 3,500,000 0 0 0 0 0 0 0 0 0 0 0 3,

Gross Margin % 13%


Profit/Unit 20,000

Less: Value Added Tax (4,065,000) 0 0 0 0 0 0 0 0 0 0 0 (4

Total Gross Profit 1,835,000 0 0 0 0 0 0 0 0 0 0 0 1,

Gross Margin % 5%




Product A Revenue 6,000,000 0 0 0 0 0 0 0 0 0 0 0 6,Less: Product Cost (5,000,000) 0 0 0 0 0 0 0 0 0 0 0 (5

Gross Profit 1,000,000 0 0 0 0 0 0 0 0 0 0 0 1,

Gross Margin % 17%


Profit/Unit 20,000

Product B Revenue 12,750,000 0 0 0 0 0 0 0 0 0 0 0 12


Gross Profit 1,700,000 0 0 0 0 0 0 0 0 0 0 0 1,

Gross Margin % 13%


Profit/Unit 20,000

Input the number of units sold of each product for each retailer and the individual margins and profits will be automatically calculated based on the amounts listed in the Assumptions tab. Thesesummarized in the Group at the bottom. Doing this monthly allows you to see the retailers performance over time to better understand their individual sales trends and performance. This tells

and worst performing retailers are and allows you to follow up with them to better understand why and improve performance across all retail outlets.


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Product A Revenue 5,400,000 0 0 0 0 0 0 0 0 0 0 0

Less: Product Cost (4,500,000) 0 0 0 0 0 0 0 0 0 0 0

Gross Profit 900,000 0 0 0 0 0 0 0 0 0 0 0

Gross Margin % 17%

Price/Unit 120,000

Profit/Unit 20,000

Product B Revenue 14,250,000 0 0 0 0 0 0 0 0 0 0 0Less: Product Cost (12,350,000) 0 0 0 0 0 0 0 0 0 0 0

Gross Profit 1,900,000 0 0 0 0 0 0 0 0 0 0 0

Gross Margin % 13%

Price/Unit 150,000

Profit/Unit 20,000

Less: Value Added Tax (1,965,000) 0 0 0 0 0 0 0 0 0 0 0

Total Gross Profit 835,000 0 0 0 0 0 0 0 0 0 0 0

Gross Margin % 4%






Gross Profit 1,560,000 0 0 0 0 0 0 0 0 0 0 0

Gross Margin % 17%

Price/Unit 120,000

Profit/Unit 20,000

Product B Revenue 16,500,000 0 0 0 0 0 0 0 0 0 0 0


Gross Profit 2,200,000 0 0 0 0 0 0 0 0 0 0 0

Gross Margin % 13%

Price/Unit 150,000

Profit/Unit 20,000


Total Gross Profit 1,174,000 0 0 0 0 0 0 0 0 0 0 0

Gross Margin % 5%


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Gross Profit 2,000,000 0 0 0 0 0 0 0 0 0 0 0

Gross Margin % 17%

Price/Unit 120,000

Profit/Unit 20,000

Product B Revenue 30,300,000 0 0 0 0 0 0 0 0 0 0 0Less: Product Cost (26,260,000) 0 0 0 0 0 0 0 0 0 0 0

Gross Profit 4,040,000 0 0 0 0 0 0 0 0 0 0 0

Gross Margin % 13%

Price/Unit 150,000

Profit/Unit 20,000



Gross Margin % 4%

RETAILER GROUP January February March April May June July August September October November December

PRODUCT A unit sales 393 0 0 0 0 0 0 0 0 0 0 0

PRODUCT B unit sales 667 0 0 0 0 0 0 0 0 0 0 0



Gross Profit 7,860,000 0 0 0 0 0 0 0 0 0 0 0

Gross Margin % 17%

Price/Unit 120,000

Profit/Unit 20,000

Product B Revenue 100,050,000 0 0 0 0 0 0 0 0 0 0 0


Gross Profit 13,340,000 0 0 0 0 0 0 0 0 0 0 0

Gross Margin % 13%

Price/Unit 150,000

Profit/Unit 20,000



Gross Margin % 4%


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SUMMARY P&L

RETAILER GROUP January February March April May June July August September October Novem

PRODUCT A

Unit Sales 393 0 0 0 0 0 0 0 0 0 0

Revenues 47,160,000 0 0 0 0 0 0 0 0 0 0

Less: Product Cost (39,300,000) 0 0 0 0 0 0 0 0 0 0

Product A Gross Profit 7,860,000 0 0 0 0 0 0 0 0 0 0

Gross Margin % 17%

PRODUCT B

Unit Sales 667 0 0 0 0 0 0 0 0 0 0

Revenues 100,050,000 0 0 0 0 0 0 0 0 0 0


Product B Gross Profit 13,340,000 0 0 0 0 0 0 0 0 0 0Gross Margin % 13%

Less: Value Added Tax (14,721,000) 0 0 0 0 0 0 0 0 0 0

Total Gross Profit 6,479,000 0 0 0 0 0 0 0 0 0 0

Gross Margin % 4%


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DISTRIBUTOR January February March April May June July August September October Novem

PRODUCT A

Unit Sales 393 0 0 0 0 0 0 0 0 0 0

Revenues 39,300,000 0 0 0 0 0 0 0 0 0 0


Product A Gross Profit 7,860,000 0 0 0 0 0 0 0 0 0 0Gross Margin % 20%

PRODUCT B

Unit sales 667 0 0 0 0 0 0 0 0 0 0

Revenues 86,710,000 0 0 0 0 0 0 0 0 0 0


Product B Gross Profit 10,005,000 0 0 0 0 0 0 0 0 0 0

Gross Margin % 12%

Less: Administrative Expenses (5,000,000) 0 0 0 0 0 0 0 0 0 0

Distributor Net Profit 12,865,000 0 0 0 0 0 0 0 0 0 0

Net Margin % 72%

Price/Unit 118,877

Profit/Unit 12,137


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MANUFACTURER January February March April May June July August September October Novem

PRODUCT A

Unit Sales 393 0 0 0 0 0 0 0 0 0 0

Revenues 31,440,000 0 0 0 0 0 0 0 0 0 0


Product A Gross Profit 7,860,000 0 0 0 0 0 0 0 0 0 0Gross Margin % 25%

PRODUCT B

Unit sales 667 0 0 0 0 0 0 0 0 0 0

Revenues 76,705,000 0 0 0 0 0 0 0 0 0 0


Product B Gross Profit 16,675,000 0 0 0 0 0 0 0 0 0 0

Gross Margin % 22%

Total Gross Profit 24,535,000 0 0 0 0 0 0 0 0 0 0

Gross Margin % 23%

Less: Value Added Tax (2,453,500) 0 0 0 0 0 0 0 0 0 0

Less: Marketing Expenses (2,800,000) 0 0 0 0 0 0 0 0 0 0

Less: Administrative Expenses (3,950,000) 0 0 0 0 0 0 0 0 0 0

(6,750,000) 0 0 0 0 0 0 0 0 0 0

Manufacturer Net Profit 15,331,500 0 0 0 0 0 0 0 0 0 0

Net Margin % 14%Profit/Unit 14,464


10/13

Dollars

$11,229

($9,357)

$1,871

$23,821

($20,645)

$3,176

($3,505)

$1,543


11/13

Dollars

$9,357

($7,486)

$1,871

$20,645

($18,263)

$2,382

($1,190)

$3,063

$28

$3


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Dollars

$7,486

($5,614)

$1,871

$18,263

($14,293)

$3,970

$5,842

($584)

($940)

($1,607)

$3,650

$3


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DISTRIBUTOR'S EXPENSES

ADMINISTRATIVE EXPENSES January February March April May June July August September October November December Year 1 Dollars

Distribution expenses (2,500,000) 0 0 0 0 0 0 0 0 0 0 0 (2,500,000) ($595)

Personnel expenses (1,500,000) 0 0 0 0 0 0 0 0 0 0 0 (1,500,000) ($357)Company administration (1,000,000) 0 0 0 0 0 0 0 0 0 0 0 (1,000,000) ($238)

Total Administrative Expenses (5,000,000) 0 0 0 0 0 0 0 0 0 0 0 (5,000,000) ($1,190)

MANUFACTURER'S EXPENSES

MARKETING EXPENSES January February March April May June July August September October November December Year 1 Dollars

Above-the-Line (ATL)

Radio spot (1,000,000) 0 0 0 0 0 0 0 0 0 0 0 (1,000,000) ($238)

Loudspeaker announcements (450,000) 0 0 0 0 0 0 0 0 0 0 0 (450,000) ($107)

Newspaper advertisement (400,000) 0 0 0 0 0 0 0 0 0 0 0 (400,000) ($95)

Total ATL Expenses (1,850,000) 0 0 0 0 0 0 0 0 0 0 0 (1,850,000) ($440)

Below-the-Line (ATL)

Point-of-sale displays (650,000) 0 0 0 0 0 0 0 0 0 0 0 (650,000) ($155)

Gifts with purchase (300,000) 0 0 0 0 0 0 0 0 0 0 0 (300,000) ($71)

Total BTL Expenses (950,000) 0 0 0 0 0 0 0 0 0 0 0 (950,000) ($226)

Total Marketing Expenses (2,800,000) 0 0 0 0 0 0 0 0 0 0 0 (2,800,000) ($667)

ADMINISTRATIVE EXPENSES January February March April May June July August September October November December Year 1 Dollars

Distribution expenses (450,000) 0 0 0 0 0 0 0 0 0 0 0 (450,000) ($107)

Personnel expenses (2,000,000) 0 0 0 0 0 0 0 0 0 0 0 (2,000,000) ($476)Company administration (1,500,000) 0 0 0 0 0 0 0 0 0 0 0 (1,500,000) ($357)

Total Administrative Expenses (3,950,000) 0 0 0 0 0 0 0 0 0 0 0 (3,950,000) ($940)

Retail Sales Profit and Loss Template

Distribution expenses include the costs associated with transporting the inventory from the manufacturer to the retailers and any business-related travel for personnel.

Personnel expenses include the costs associated with the Sales Manager and other personnel (not salespeople).

Company administration include the costs associated with rent, supplies, etc.

Above-the-line marketing activities are broadcasts to mass audiences such as through TV, radio, and newspapers and can reach a larger audience quickly. It is harder to tailor the messages or

measure the return on investment (how effective these activities are at reaching your targeted audience) compared with below the l ine marketing.

Below-the-line marketing can be tailored to a specific group and includes items such as leaflets, coupons, gifts with purchase, and point-of-sale displays. It is much easier to measure the return on

investment of these activities. For example, if you offer coupons to customers, it is easy to count how many coupons were redeemed per store. You can measure the change in sales during themonths you offer the coupon and compare with the months that you did not offer that promotion to see if the increase in revenues is worth the cost.

Distribution expenses include the costs associated with transporting the inventory and any business-related travel for personnel.

Personnel expenses include the costs associated with the sales manager and other personnel (not salespeople).

Company administration include the costs associated with rent, supplies, etc.

Documents

38. Retail Sales PL Template Proofread