Reid Paralegal Services Company Case Study

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Reid Paralegal Service, Corp. will also use an internet based strategy. This is very imperative as many people pursuing local services, such as paralegals, now apply the Internet to conduct their preliminary quests. Miss. Reid will index Reid Paralegal Service. Corp. with online gateways so that possible clients can easily reach the business. The Company will also advance its own online website showcasing the paralegal operations of the business. Miss. Reid will also contact lawyers/paralegals, and law firms in respects to developing continuing associations for their legal documentation needs. 5.3 Pricing Miss. Reid anticipates charging modest rates within the first year of operations as she is developing her business and name in the legal industry. Miss. Reid will charge $150.00 per …show more content…

7.4 General Assumptions General Assumptions Year 1 2 3 Short Term Interest Rate 9.5% 9.5% 9.5% Long Term Interest Rate 10.0% 10.0% 10.0% Federal Tax Rate 33.0% 33.0% 33.0% Provincial Tax Rate 5.0% 5.0% 5.0% Personnel Taxes 15.0% 15.0% 15.0% 7.5 Profit and Loss Statements Proforma Profit and Loss (Yearly) Year 1 2 3 Sales $407,778 $440,400 $475,632 Cost of Goods Sold $40,778 $44,040 $47,563 Gross Margin 90.00% 90.00% 90.00% Operating Income $367,000 $396,360 $428,069 Expenses Payroll $198,500 $227,115 $257,268 General and Administrative $25,200 $26,208 $27,256 Marketing Expenses $2,039 $2,202 $2,378 Professional Fees and Licensure $5,219 $5,376 $5,537 Insurance Costs $1,987 $2,086 $2,191 Travel and Vehicle Costs $7,596 $8,356 $9,191 Rent and Utilities $20,000 $21,000 $22,050 Miscellaneous Costs $4,893 $5,285 $5,708 Payroll Taxes $29,775 $34,067 $38,590 Total Operating Costs $295,209 $331,695 $370,169 EBITDA $71,791 $64,666 $57,900 Federal Income Tax $23,691 $18,656 $16,642 Provincial Income Tax $3,590 $2,827 $2,522 Interest Expense $8,738 $8,131 $7,468 Depreciation Expenses $4,107 $4,107 $4,107 Net Profit $31,666 $30,944 $27,160 Profit Margin 7.77% 7.03%

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