Page 8 - Sales Proposal - Craft Wicker and Things Limited

FINANCIALS
The following analysis on Craft Wicker and Things was taken from the Financial Statements for the financial years 2017 and 2018. It can be ascertained that within the past two years the company has returned net profit in excess of one million dollars ($1’000’000.00) per annum. Craft Wicker and Things generates revenue primarily from the operation of its manufacturing and merchandising business function realizing sales of Seven Million Jamaican Dollars ( JMD $7,000,000) in 2017 and in excess of Eight Million Jamaican Dollars (JMD $8,000,000) in 2018. The management has been able to monitor and maintain expenses, which has resulted in profitability for the past two years.
The company recorded the following Gross Profitability and Net Profitability summaries:
2017 2018
Gross Profitability 76% 77% Net Profitability 14% 16%
The industry within which Craft Wicker and Things operates- with limited local suppliers and the need to purchase in bulk to enjoy discounts- leads to the need for high inventory levels. The company therefore has in excess of 4 Million (JMD 4’000’000) in inventory. The company however maintains a good cash conversion cycle. Ensuring adequacy of inventory is critical in maintaining a good cash flow position.