Jerseys R Us
Company Summary
Jerseys is an existing business that is being purchased by Phil Garment. The business will be a sole proprietorship. The business is being sold because the previous owner is ready to retire. For a lump sum, the lease will be transferred and Phil will receive the current inventory as well as the good will of the business. The name will remain the same and the inventory will also be similar, however, in addition to baseball and football jerseys, Phil will stock cycling jerseys as well.
2.1 Company History
The business began as Jerseys R Us back in 1980 by Chuck Jack. Chuck is ready to retire and was looking to get a bit of cash from his business, recognizing that a large portion of his retirement account will be supplied by his wife’s pension.
| Past Performance | |||
| 2000 | 2001 | 2002 | |
| Sales | $114,000 | $112,000 | $111,000 |
| Gross Margin | $65,000 | $63,000 | $59,000 |
| Gross Margin % | 57.02% | 56.25% | 53.15% |
| Operating Expenses | $0 | $0 | $0 |
| Inventory Turnover | 1.53 | 1.66 | 1.76 |
| Balance Sheet | |||
| 2000 | 2001 | 2002 | |
| Current Assets | |||
| Cash | $12,000 | $10,000 | $8,000 |
| Inventory | $32,000 | $27,000 | $32,000 |
| Other Current Assets | $12,000 | $14,000 | $18,000 |
| Total Current Assets | $56,000 | $51,000 | $58,000 |
| Long-term Assets | |||
| Long-term Assets | $12,000 | $22,000 | $34,000 |
| Accumulated Depreciation | $3,400 | $5,200 | $6,700 |
| Total Long-term Assets | $8,600 | $16,800 | $27,300 |
| Total Assets | $64,600 | $67,800 | $85,300 |
| Current Liabilities | |||
| Accounts Payable | $3,200 | $2,500 | $15,000 |
| Current Borrowing | $1,700 | $1,300 | $2,200 |
| Other Current Liabilities (interest free) | $0 | $0 | $0 |
| Total Current Liabilities | $4,900 | $3,800 | $17,200 |
| Long-term Liabilities | $12,000 | $8,000 | $8,000 |
| Total Liabilities | $16,900 | $11,800 | $25,200 |
| Paid-in Capital | $0 | $0 | $0 |
| Retained Earnings | $47,700 | $56,000 | $60,100 |
| Earnings | $0 | $0 | $0 |
| Total Capital | $47,700 | $56,000 | $60,100 |
| Total Capital and Liabilities | $64,600 | $67,800 | $85,300 |
| Other Inputs | |||
| Payment Days | 0 | 0 | 0 |
2.2 Company Ownership
Phil Garment is the sole proprietor.
By 
