Project Overview You will complete a Calculations and Report Document for this project. In part one , you will represent problems as mathematical expressions that you will then solve. In part two ,...

19DA09
All-Store Calculations and Report
Note: Complete this worksheet by replacing the bracketed phrases in the response boxes with the relevant information.
Name:
You need to analyze three areas of the All-Store business: declining sales, reducing staffing, and purchasing the building. Before you start, read all of the All-Store company documents in the “Supporting Materials” section. These will have useful information that will help you complete your project.
Note: You can use a calculator to complete the calculations. Make sure to show and check all of your work.
Part 1: Your Calculations
Declining Sales
The general manager wants to know what the impact will be on the business if sales continue to decline at the current rate and no action is taken. This can be broken down into two questions:
· How long will it be before All-Store starts operating at a loss?
· How long will it be before All-Store goes bankrupt?
How Long Before All-Store Starts Operating at a Loss?
When a company makes less money than it spends, this is referred to as operating at a loss. Another way to express this is “the net profit equals zero.”
When will All-Store’s monthly profit equal zero? Although there’s no precise answer to this question, since the future is unpredictable, you can estimate based on some available data. In the following steps, you will estimate the monthly drop in profits. Then, you’ll formulate a projection to determine when All-Store would be operating at a loss.
Monthly Net Profit
List each month’s net profit in the following response box.
    January $135,970.66
February $129,832.81
March $120,896.73
April $108,024.43
May $109,442.14
June $93,514.22
Difference between Monthly Net Profits
Calculate the difference between each month’s net profits. For example, subtract January’s profit from February’s profit. Then subtract February’s profit from March’s profit. Continue this process for each month.
    ($1,29,832.81 - $1,35,970.66) = -$6,137.85
($1,20,896.76 - $1,29,832.81) = -$8,936.08
($1,08,024.43 - $1,20,896.76) = -$12,872.30
($1,09,442.14 - $1,08,024.43) = $1,417.71
($93,514.22 - $1,09,442.14) = -$15,927.92
Profit Drop
Determine how much profits will drop in the following months. You’ll need to estimate based on all of the previous numbers. One way to do this is by choosing a number that represents something close to the middle of the values, or a measure of central tendency. Mean, median, and mode are three different measures of central tendency. Calculate each measure in the following response box.
To calculate the mean (average):
· Add all of the numbers in the series together.
· Divide them by the quantity of numbers added.
· Note: You may need to round up or down to the nearest cent.
To calculate the median (middle):
· List all of the numbers in the series in order (low to high, or high to low).
· Choose the one in the middle of the list.
To calculate the mode (most frequent):
· List all of the numbers in order (from lowest to highest or highest to lowest).
· Choose the number that appears the most often. If no numbers repeat in a series, then there is no mode.
    Mean =[ $6137.85 + $8936.08 + $12872.30 + (-$1417.71) + $15927.92/5] = $42456.44 /5 = $8491.29
-$1417.71; $6137.85; $8936.08; $12872.3; $15927.92
Median = $8936.08
In this case I have arranged the numbers in #2 in ascending order and chosen the middle number which is $8936.08.
Mode: There is no mode in this case
Mode of Central Tendency Used to Predict the Upcoming Months
· Which value(s) will you use to make your projections? Why?
· Is there value in showing more than one projection in your report? Why or why not?
    I choose median since median represents the number which is much closer to the middle of the numbers in the above figures I have available with. Therefore, median is $8936.08.
Projection
Now that you’ve chosen a way (or ways) to estimate, it’s time to project the month. To do this:
· Divide the last number in the series (the net profit from June) by the measures of central tendency you calculated in question 3.
· If there is a decimal in your result, round down to the nearest month.
    $93,514.22/$8491.29 = 11
= 11 is nearest to the month of November
How Long Before All-Store Goes Bankrupt?
Bankruptcy is when a person or company runs out of money and cannot afford to pay the bills. It can also refer to the legal processes involved in dealing with this situation. For All-Store, bankruptcy could include missing payments on anything from rent to payroll. In this section, you will use your estimate for the monthly drop in profits, which you already calculated, to project when this will occur.
All-Store Savings
Find the current amount of funds that All-Store has in savings. Read the company documents in the “Supporting Materials” section to learn this information.
    The current amount of funds that All-store has in savings is $50,546.43
How Long All-Store Can Operate at a Loss
Although the company will be operating at a loss, All-Store has some money in savings that will allow it to pay for expenses for a time. In the response box, determine this time in months. To do this:
· Add the amount in savings to the net profit from June.
· Divide by the number(s) you determined above (mean, median, mode).
· If there is a decimal in your result, round down.
    = $50,546.43 + $93,514.22 = $144060.65
= $144060.65/$8491.29 = 16
= $144060.65/$8936.08 = 16
There was no mode
Summary
Reflect on the meaning of your calculations. Consider the following questions:
· What do you think the results of your calculations will mean for the company?
· What specific actions would you recommend based on all of the available information? For example, what is a specific way for the company to cut costs?
    As per the calculations it can be stated that the company must reduce the expenses in order to avoid the running of the company out of money. The best way to reduce the expenditure is to reduce the number of employees. They can also reduce the...