# Charles Chocolate 's Sales Revenue Essay

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Charles Chocolate’s sales revenue decreased -1.176% between the years 2010 and 2011. The equation that as used to get that was Revenue Growth= 100 × (Current Value-Prior Value/Prior Value) 100 × (11,850,480-11,991,558/11,991,558). The change in the sales revenue could have happened for very many reasons. Being a premium chocolate making company, their product may not have been very high in demand. Also forecasting the demand for their product was not a very easy thing to do either. Another issue that Charles Chocolate’s faced their competitors, such as Godiva and Lindt, are more of a well known brand then they are.
Profit: How much did they make? Profit is the net earnings which is found on the income statement. To find the net earnings you calculate using the equation: Net Earnings = (Sales - Cost of Sales) + (Interest Income - Expenses - Income Taxes). The 2010 Net Earnings are \$1,069,326= (\$11,991,558 - \$5,378,187) + (\$1,610 - \$5,094,088– \$451,567).The 2011 Net Earnings are \$891,082= (\$11,850,480 - \$5,385,088 + (\$664 - \$5,312,985 - \$261,989).
Return on sales: For the year 2011, the return on sales was .075. For the year 2010, the return on sales was .0892. That number is calculated by dividing the net earnings by the total sales. 2010 Return on Sales = \$1,069,326 / \$11,991,558 and 2011 Return on Sales = \$891,082 / \$11,850,460.
Current ratio: This number is found by dividing the current assets by the current liabilities that is found on the balance sheet. The current ratio for 2010 was .666. This was calculated by \$1550,631 / \$2,326,966. The current ratio for 2011 was .905. This number was calculated by \$1,543,816 / \$1,705,132.
Debt-to-equity ratio: The debt-to-equity ratio for 2010 is \$3,738,150/ \$4,781,471=.782. For the yea...

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...ot a privately owned small business, the owners do have support from cooperate. Franchising also offers an easy and speedy way of expanding Charles Chocolates that will also increase name and brand recognition. Although a low risk option, it can be a little bit pricy. There are Franchise fees that will have to be paid and noted on the income and balance statement. With the intentions that the franchises prosper and deliver good results, the Stockholders values will definitely increase along with everything that is in the category of cost of sales. Charles Chocolate’s will have to authorize more property and equipment along with increasing the direct labor and materials that are needed to maintain each store. Because francizing is extremely low risk, relatively inexpensive, and has a high turn around rate, franchising is the best growth option for Charles Chocolates.

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