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Our biggest savings of the year
Mad Keen Motors
Company Summary
Mad Keen Motors is a family-owned business located in Backwater Downs, a suburb of London. It has been under the ownership of the Keen family for 35 years and has grown from a single mechanical repair shop to five locations that deal with body and mechanical repairs, vehicle storage and towing, washing and valeting and used car sales.
2.1 Company History
Mad Keen Motors has done very well. Annual net profits have exceeded £30,000 for the last two years. We decreased the marketing budget last year, which led to a small decline in sales. By directing the missing amount (and a bit more) towards the creation of a website, we hope to increase overall sales and net profits. The table shows only last year’s performance.
| Past Performance | |||
| FY 2003 | FY 2004 | FY 2005 | |
| Sales | £0 | £0 | £798,000 |
| Gross Margin | £0 | £0 | £767,853 |
| Gross Margin % | 0.00% | 0.00% | 96.22% |
| Operating Expenses | £0 | £0 | £695,820 |
| Inventory Turnover | 0.00 | 0.00 | 5.01 |
| Balance Sheet | |||
| FY 2003 | FY 2004 | FY 2005 | |
| Current Assets | |||
| Cash | £0 | £0 | £203,488 |
| Inventory | £0 | £0 | £12,040 |
| Other Current Assets | £0 | £0 | £70,000 |
| Total Current Assets | £0 | £0 | £285,528 |
| Long-term Assets | |||
| Long-term Assets | £0 | £0 | £1,250,000 |
| Accumulated Depreciation | £0 | £0 | £15,000 |
| Total Long-term Assets | £0 | £0 | £1,235,000 |
| Total Assets | £0 | £0 | £1,520,528 |
| Current Liabilities | |||
| Accounts Payable | £0 | £0 | £20,000 |
| Current Borrowing | £0 | £0 | £0 |
| Other Current Liabilities (interest free) | £0 | £0 | £0 |
| Total Current Liabilities | £0 | £0 | £20,000 |
| Long-term Liabilities | £0 | £0 | £750,000 |
| Total Liabilities | £0 | £0 | £770,000 |
| Paid-in Capital | £0 | £0 | £400,000 |
| Retained Earnings | £0 | £0 | £314,488 |
| Earnings | £0 | £0 | £36,040 |
| Total Capital | £0 | £0 | £750,528 |
| Total Capital and Liabilities | £0 | £0 | £1,520,528 |
| Other Inputs | |||
| Payment Days | 0 | 0 | 30 |