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The Body Shop International An Introduction To

The body shop international: An Introduction to financial modeling

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Title: The body shop international: An Introduction to financial modeling

Essay Details:

Subject: Business

Author: Julio H

Date: December 4, 2013

Level: University

Grade: C

Length: 10 / 2895

Essay text:

As a result, every account in the pro forma financial statements are based on one or more key assumptions about their relationship with sales: Sales: It is assumed that sales turnover will continue to grow at a rate of 11% every year. This figure is the historical average of growth (change) in the last 3 years and reiterates Patrick Gournay’s plans to increase sales. It is unlikely that the firm will be able to achieve 20% growth again as the firm has reached its ‘maturity phase’ in the business cycle (further discussed in 3). COGS: A historical average was taken to get an initial percentage of 40% and then it was assumed that this would decrease at rate to the power of 1...

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