MS Inc. Annual Report 2017

MS,INC. ANNUAL REPORT

MADE BY MIDDLE SCHOOL 2016/2017

Introduction

MS, Inc.

MS, INC. started off as an economics project for the KIS middle schoolers.

During their economics unit, they learnt techniques and strategies on how to run a business. They applied these skills to make a booth during the KIS festival. They first established their goals, conducted market research, planned what they needed to buy, and carried out those plans. Below is an explanation of their income, assets and liabilities, profit margin improvements, and outcome.

MS, INC. goals Making a Profit One of their main goals was to make a profit. MS, INC decided that if a profit was made, it would be put towards reinvesting into the company.

Gaining Experience Another one of their main goals was to gain experience and knowledge to how the KIS festival is run and how they can improve the booth in the future.

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MS, Inc.

Income Statement

On the KIS festival day, MS, Inc. sold goods and made money. Their gross income can be divided into two parts.

Tickets : 326 tickets = ¥32,600

Cash 18%

Cash : ¥7,350 Gross income : ¥39,950

Tickets 82% MS, INC. ended up with a total of ¥44,351 at the end of the day because they didn't use all of the¥31,000 loan for their start-up expenses.

Total cash on hand:¥44,351 Loan repayment + 1% interest: ¥ 31,310

Net income/profit ¥13,041

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Balance Sheet

MS, Inc.

With the loan MS, INC. got from the school they bought supplies.

Unfortunately, they miscalculated the amount of many of the supplies and they ended up with overstock. The following is a list of MS, INC.'s assets.

Assets Popcorn Kernels (15 bags and a half bag of 680g) Curry Powder (65g) Margarine Paper Towels (1/2 packs) plastic gloves ( 80 pairs) Canola Oil (2000g) Onion Soup Mix Chopsticks (pack of 80) Plastic Sporks (16) 45L Rubbish bags (10) Shakers (5) Lock Box MS,INC. Money (13,041 - Popcorn money)

While making their products, they made few mistakes with our machinery. The following items are their liabilities.

Liabilities 2 broken popcorn machines (¥7,000 ~ ¥8,000)

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Profit Margin

MS, INC.

The teachers at KIS took the information MS, INC. got from their market research and made booths. They had 4 booths and the following graphs show the profit margins.

MS, INC. and Teachers Profit Margin

100 75

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Booths

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Conclusion

MS, INC.

Improvements/goals Create different cash/ticket boxes for each product as well as keep donations separate.

In order to establish individual product sales, M.S. Inc. could have created different cash/ticket boxes for each product as well as keeping donations separate. This would help M.S. Inc. evaluate which products created the highest income as well as helping to evaluate M.S. Inc.'s gross income excluding donations.

Do more target research before hand

Before making their products, M.S. Inc. could have conducted more market research to find out what people would want to eat/do in more detail.

Research more about the products being made To prevent purchasing excess supplies, others should have reviewed the calculations more rigorously.

Keep a stable price Throughout the day of the festival, MS, Inc. began to notice that some products were not selling as well as others. MS, Inc. assumed that this was due to the product's cost.

After this realization, MS, Inc. altered its prices in order to appeal to more customers.

This caused the popcorn to become more expensive and the rice crispy treats to become cheaper. As the day progressed, MS, Inc. began to note that some of their students were not sticking to the new price that they had decided on and were selling their products at an inconsistent rate.

Final Conclusion Unfortunately this year's MS, Inc. did not manage to reach their estimated profit due to all of the problems listed above. Despite this fact, MS, Inc. has high hopes regarding next year's MS, Inc. booth and hopes that this report will help future Middle School students to achieve their financial goals.

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