Case Study: Paul Livoria Sandwiches Inc.

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DATE: October 4, 2013 MEMORANDUM TO: Paul Livoria, Livoria Sandwiches Inc. Owner Sam Livoria, Livoria Sandwiches Inc. Owner FROM: Dev Das, CMA SUBJECT: Livoria Sandwiches Inc. Owner Pro Forma Income Statement and Statement of Cash Flows for the years 2013, 2014 and 2015 SUMMARY Livoria Sandwiches Inc. is located in City of Dawkins in two locations. It is Canadian Controlled Private Corporation. It is well known with it is signature deli sandwiches. Its high quality fresh sandwiches are sold to City of Dawkins people on a reasonable price as it is stated at the company vision. The traditional style Italian sandwiches are Livoria’s signature and with the owners heritage to t Due to an incident occurred in January 2012, the customer…show more content…
While calculating the revenue, the sandwiches with the most valuable contribution margins are projected to be produced first. The available staff time is planned to be used in the order from producing the sandwich with the highest contribution margin to the lowest. Another option Livaria considers adding vegetarian options to the menu. Forecast income statement for the option adding vegetarian sandwiches to the menu is also provided in this report. The staff productive time constraint also applied while calculating projected sales revenue for next three years. In this report, the proforma cash flow statement has been provided for the two options that Livaria would consider; keeping the menu as it is or adding vegetarian options to the menu. Because the proforma cash flow is not the in the deficit, and no cash flow issue has been identified for Livaria for the next three years, giving leasing is not considered as alternative. In addition, under both considered alternatives, the company owners’ goal of having $1.1 million in net income will be achieved. The leasing also requires the company mission and vision statement change to…show more content…
| Veal Cutlet | 86,333 | 86,333 | 1,799 | 776,997 | 375,635 | 23,742 | 399,376 | 377,621 | | Chicken Cutlet | 98,962 | 98,962 | 1,979 | 890,658 | 410,791 | 26,126 | 436,917 | 453,741 | | Sirloin Steak | 32,031 | 16,630 | 305 | 149,670 | 75,683 | 4,024 | 79,708 | 69,962 | | Meatball | 28,775 | | - | - | - | - | - | -

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