tag:blogger.com,1999:blog-19615843.post-1164701806728738632006-11-28T02:15:00.000-06:002007-01-16T00:45:42.706-06:00<a href="http://photos1.blogger.com/x/blogger/402/1945/1600/881071/6.jpg"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" src="http://photos1.blogger.com/x/blogger/402/1945/320/209022/6.jpg" border="0" alt="" /></a><br />November 28, 2006<br />I receive this question from my clients on a regular basis. The survey below compares a sample of my clients in the southern United States using 2006 vs 2005 data.<br /><br />.................................Percent of Sales..Variance from last year<br /><em><strong>Sales</strong></em>................................100.0%..................+<em><strong>10.2%</strong></em><br />Cost of goods sold...............50.5%..................+10.8%<br />................................=============================<br />......Gross Profit....................49.5%..................+09.6%<br />Administrative Expenses<br />...Advertising..........................1.0......................+16.2<br />...<em><strong>Auto Expense</strong></em>..................1.3...................... <em><strong>+37.6</strong></em><br />...Bank Charges......................0.4......................+41.7<br />...Contributions......................0.2.......................-23.6<br />...Dues & Subscriptions.........0.1.......................-30.1<br />...Insurance............................2.0.......................+12.6<br />...Office Supplies.....................1.2......................+01.1<br />...<em><strong>Outside Services</strong></em>............3.1...................... <em><strong>+66.8</strong></em><br />...Professional Fees.................0.6......................+13.7<br />...<em><strong>Rent-Lease Payments</strong></em>..2.6..................... <em><strong>+26.3</strong></em><br />...Repairs & Maintenance.......0.4.....................-05.8<br />...Salaries & Wages.................21.0....................+14.9<br />...Taxes & Licenses..................0.7.....................-13.0<br />...Telephone..............................0.8.....................+17.3<br />...Travel & Entertainment.....0.0......................-54.0<br />...Uniforms................................0.2.....................+05.1<br />...Utilities...................................0.7.....................-04.0<br />...Other - Miscellaneous..........0.2..................+302.6<br />................................=============================<br />.....Total Administrative........36.4%..................+17.7%<br />................................=============================<br /><em><strong>Net Income</strong></em>..........................13.1%................... <em><strong>-07.9%</strong></em><br /><br />The survey does not take into account depreciation and interest expense. Sales are up, but Administrative expenses are way up from last year. <em><strong>Notice a large increase in auto expense and outside services even rent and lease payments, causing actual profits to go down.</strong></em> Photo above taken this past spring, with my wife and I, on our 24 foot Sea Ray Sundeck. Henry (CEO)Professor Taxnoreply@blogger.com