GILBERT COMPANY

Statement of Financial Position

2018 Year 1
ASSET
CURRENT ASSETS
Cash 150,000.00 143,065.00
Accounts Receivable 220,000.00 155,000.00
Inventories 592,000.00 651,000.00
Other current assets 23,000.00 23,000.00
Total current assets 985,000.00 972,065.00

LONG-TERM ASSETS
Property, plant, and equipment 2,475,000.00 2,495,000.00
Less: Accumulated Depreciation 850,000.00 949,000.00
Net 1,625,000.00 1,546,000.00
TOTAL ASSETS 2,610,000.00 2,518,065.00

EQUITIES
CURRENT LIABILITIES
Accounts Payable 140,000.00 155,000.00
Taxes Payable 156,000.00 32,822.75
Current portion of long-term debt 83,000.00 -
Total current liabilities 379,000.00 187,822.75

LONG-TERM LIABILITIES 576,000.00 576,000.00

TOTAL LIABILITIES 955,000.00 763,822.75

EQUITY
Share Capital 350,000.00 350,000.00
Retained Earnings 1,305,000.00 1,404,242.25
Total 1,655,000.00 1,754,242.25
TOTAL EQUITIES 2,610,000.00 2,518,065.00
Year 2 Year 3 Year 4 Year 5 Year 6

212,650.00 121,089.00 (212,191.00) (706,617.00) (1,442,762.00)

570,000.00 1,305,000.00 2,520,000.00 4,055,000.00 6,070,000.00
651,000.00 651,000.00 651,000.00 651,000.00 651,000.00
23,000.00 23,000.00 23,000.00 23,000.00 23,000.00
1,456,650.00 2,100,089.00 2,981,809.00 4,022,383.00 5,301,238.00

2,515,000.00 2,535,000.00 2,555,000.00 2,575,000.00 2,595,000.00

1,048,000.00 1,147,000.00 1,246,000.00 1,345,000.00 1,444,000.00
1,467,000.00 1,388,000.00 1,309,000.00 1,230,000.00 1,151,000.00
2,923,650.00 3,488,089.00 4,290,809.00 5,252,383.00 6,452,238.00

355,000.00 555,000.00 755,000.00 955,000.00 1,155,000.00

(10,022.50) 2,731.15 98,883.15 250,634.05 485,783.30
- - - - -
344,977.50 557,731.15 853,883.15 1,205,634.05 1,640,783.30

576,000.00 576,000.00 576,000.00 576,000.00 576,000.00

920,977.50 1,133,731.15 1,429,883.15 1,781,634.05 2,216,783.30

350,000.00 350,000.00 350,000.00 350,000.00 350,000.00

1,652,672.50 2,004,357.85 2,510,925.85 3,120,748.95 3,885,454.70
2,002,672.50 2,354,357.85 2,860,925.85 3,470,748.95 4,235,454.70
2,923,650.00 3,488,089.00 4,290,809.00 5,252,383.00 6,452,238.00
 Year 7 Year 8 Year 9 Year 10

(2,340,053.00) (3,479,063.00) (4,779,219.00) (6,321,094.00)

8,405,000.00 11,220,000.00 14,355,000.00 17,970,000.00
651,000.00 651,000.00 651,000.00 651,000.00
23,000.00 23,000.00 23,000.00 23,000.00
6,738,947.00 8,414,937.00 10,249,781.00 12,322,906.00

2,615,000.00 2,635,000.00 2,655,000.00 2,675,000.00

1,543,000.00 1,642,000.00 1,741,000.00 1,840,000.00
1,072,000.00 993,000.00 914,000.00 835,000.00
7,810,947.00 9,407,937.00 11,163,781.00 13,157,906.00

1,355,000.00 1,555,000.00 1,755,000.00 1,955,000.00

776,531.45 1,150,677.95 1,580,423.35 2,093,567.10
- - - -
2,131,531.45 2,705,677.95 3,335,423.35 4,048,567.10

576,000.00 576,000.00 576,000.00 576,000.00

2,707,531.45 3,281,677.95 3,911,423.35 4,624,567.10

350,000.00 350,000.00 350,000.00 350,000.00

4,753,415.55 5,776,259.05 6,902,357.65 8,183,338.90
5,103,415.55 6,126,259.05 7,252,357.65 8,533,338.90
7,810,947.00 9,407,937.00 11,163,781.00 13,157,906.00
PARAMETERS: Year 1 2 3

Estimated Sales
Units 6400 7000 7400
Price per unit 800.00 800.00 800.00

Finished Goods Inventory

Beginning 900 1000 1000
Ending 1000 1000 1000
Unit Cost 500.00 500.00 500.00

Work-in Process Inventory

Beginning 0 0 0
Ending 0 0 0
Unit Cost - - -

Raw Materials

Material- R
Materials required per unit of finished product 3 3 3
Beginning Inventory 2200 1300 1300
Ending Inventory 1300 1300 1300
Unit Cost 10.00 10.00 10.00

Material-S
Materials required per unit of finished product 5 5 5
Beginning Inventory 4000 4600 4600
Ending Inventory 4600 4600 4600
Unit Cost 30.00 30.00 30.00

Direct Labor per unit 146.00 146.00 146.00

Total Raw Materials

Beginning 142,000.00 151,000.00 151,000.00
Ending 151,000.00 151,000.00 151,000.00

Total Work-in Process

Beginning - - -
Ending - - -

Total Finished Goods

Beginning 450,000.00 500,000.00 500,000.00
Ending 500,000.00 500,000.00 500,000.00

Variable Overhead
Indirect materials and supplies 5.85 5.85 5.85
Materials handling 9.07 9.07 9.07
Other Indirect labor 5.07 5.07 5.07

Fixed Overhead
Supervisor labor 175,000.00 175,000.00 175,000.00
Maintaenance & repair 85,000.00 85,000.00 85,000.00
Plant administration 173,000.00 173,000.00 173,000.00
Utilities 87,000.00 87,000.00 87,000.00
Depreciation 280,000.00 280,000.00 280,000.00
Insurance 43,000.00 43,000.00 43,000.00
Property Taxes 117,000.00 117,000.00 117,000.00
Other 41,000.00 41,000.00 41,000.00
Total 1,001,000.00 1,001,000.00 1,001,000.00
 4 5 6 7 8 9 10

8000 8400 9000 9400 10000 10400 11000

800.00 800.00 800.00 800.00 800.00 800.00 800.00

1000 1000 1000 1000 1000 1000 1000

1000 1000 1000 1000 1000 1000 1000
500.00 500.00 500.00 500.00 500.00 500.00 500.00

0 0 0 0 0 0 0
0 0 0 0 0 0 0
- - - - - - -

3 3 3 3 3 3 3
1300 1300 1300 1300 1300 1300 1300
1300 1300 1300 1300 1300 1300 1300
10.00 10.00 10.00 10.00 10.00 10.00 10.00

5 5 5 5 5 5 5
4600 4600 4600 4600 4600 4600 4600
4600 4600 4600 4600 4600 4600 4600
30.00 30.00 30.00 30.00 30.00 30.00 30.00

146.00 146.00 146.00 146.00 146.00 146.00 146.00

151,000.00 151,000.00 151,000.00 151,000.00 151,000.00 151,000.00 151,000.00

151,000.00 151,000.00 151,000.00 151,000.00 151,000.00 151,000.00 151,000.00

- - - - - - -
- - - - - - -
500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00
500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00

5.85 5.85 5.85 5.85 5.85 5.85 5.85

9.07 9.07 9.07 9.07 9.07 9.07 9.07
5.07 5.07 5.07 5.07 5.07 5.07 5.07

175,000.00 175,000.00 175,000.00 175,000.00 175,000.00 175,000.00 175,000.00

85,000.00 85,000.00 85,000.00 85,000.00 85,000.00 85,000.00 85,000.00
173,000.00 173,000.00 173,000.00 173,000.00 173,000.00 173,000.00 173,000.00
87,000.00 87,000.00 87,000.00 87,000.00 87,000.00 87,000.00 87,000.00
280,000.00 280,000.00 280,000.00 280,000.00 280,000.00 280,000.00 280,000.00
43,000.00 43,000.00 43,000.00 43,000.00 43,000.00 43,000.00 43,000.00
117,000.00 117,000.00 117,000.00 117,000.00 117,000.00 117,000.00 117,000.00
41,000.00 41,000.00 41,000.00 41,000.00 41,000.00 41,000.00 41,000.00
### 1,001,000.00 1,001,000.00 1,001,000.00 1,001,000.00 1,001,000.00 1,001,000.00
 Year 1 2 3

Variable Marketing Costs

Sales Commissions 40.63 40.63 40.63
Other Marketing Costs 16.25 16.25 16.25

Fixed Marketing Costs

Sales Salaries 100,000.00 100,000.00 100,000.00
Advertising 193,000.00 193,000.00 193,000.00
Other 78,000.00 78,000.00 78,000.00

Administrative Costs(all fixed)

Administrative Salaries 254,000.00 254,000.00 254,000.00
Data Processing Services 103,000.00 103,000.00 103,000.00
Legal and Other professional fees 180,000.00 180,000.00 180,000.00
Depreciation-Building, Furniture and Eqpt. 94,000.00 94,000.00 94,000.00
Taxes- other than income 107,280.00 107,280.00 107,280.00
Other 26,000.00 26,000.00 26,000.00

Additional Information:

Collections from Customers 5,185,000.00 5,185,000.00 5,185,000.00

Equipment Sold 300,000.00 300,000.00 300,000.00
Accumulated Depreciation of Equipment Sold 275,000.00 275,000.00 275,000.00
Equipment Purchased 320,000.00 320,000.00 320,000.00
Increased in Payable (Materials Purchases) 15,000.00 200,000.00 200,000.00
Income Tax Paid 252,000.00 252,000.00 252,000.00
Dividends Paid 140,000.00 140,000.00 140,000.00
Current portion of long term debt (settled at the
end of yr.) 83,000.00 - -
 4 5 6 7 8 9 10

40.63 40.63 40.63 40.63 40.63 40.63 40.63

16.25 16.25 16.25 16.25 16.25 16.25 16.25

100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00

193,000.00 193,000.00 193,000.00 193,000.00 193,000.00 193,000.00 193,000.00
78,000.00 78,000.00 78,000.00 78,000.00 78,000.00 78,000.00 78,000.00

254,000.00 254,000.00 254,000.00 254,000.00 254,000.00 254,000.00 254,000.00

103,000.00 103,000.00 103,000.00 103,000.00 103,000.00 103,000.00 103,000.00
180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00
94,000.00 94,000.00 94,000.00 94,000.00 94,000.00 94,000.00 94,000.00
107,280.00 107,280.00 107,280.00 107,280.00 107,280.00 107,280.00 107,280.00
26,000.00 26,000.00 26,000.00 26,000.00 26,000.00 26,000.00 26,000.00

5,185,000.00 5,185,000.00 5,185,000.00 5,185,000.00 5,185,000.00 5,185,000.00 5,185,000.00

300,000.00 300,000.00 300,000.00 300,000.00 300,000.00 300,000.00 300,000.00
275,000.00 275,000.00 275,000.00 275,000.00 275,000.00 275,000.00 275,000.00
320,000.00 320,000.00 320,000.00 320,000.00 320,000.00 320,000.00 320,000.00
200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00
252,000.00 252,000.00 252,000.00 252,000.00 252,000.00 252,000.00 252,000.00
140,000.00 140,000.00 140,000.00 140,000.00 140,000.00 140,000.00 140,000.00

- - - - - - -
 Sales Budget

Year 1 2 3 4 5
Estimated Sales
Units 6400 7000 7400 8000 8400
Price per unit 800.00 800.00 800.00 800.00 800.00

Total Sales Revenue 5,120,000.00 5,600,000.00 5,920,000.00 6,400,000.00 6,720,000.00

 6 7 8 9 10

9000 9400 10000 10400 11000

800.00 800.00 800.00 800.00 800.00

7,200,000.00 7,520,000.00 ### 8,320,000.00 8,800,000.00

 Production Budget

Year 1 2 3 4 5 6
Units to be sold 6400 7000 7400 8000 8400 9000
Add: Desired Ending Inventory 1000 1000 1000 1000 1000 1000
Total 7400 8000 8400 9000 9400 10000
Less: Beginning Inventory 900 1000 1000 1000 1000 1000
Units to be produced 6500 7000 7400 8000 8400 9000
7 8 9 10
9400 10000 10400 11000
1000 1000 1000 1000
10400 11000 11400 12000
1000 1000 1000 1000
9400 10000 10400 11000
 Raw Materials Purchases

Year 1 2 3 4 5 6

R R R R R R
Units required for production 19500 21000 22200 24000 25200 27000
Add: Desired ending inventory 1300 1300 1300 1300 1300 1300
Total units recquired 20800 22300 23500 25300 26500 28300
Less: Beginning inventory 2200 1300 1300 1300 1300 1300
Units to be purchased 18600 21000 22200 24000 25200 27000
Unit price 10 10 10 10 10 10
Total Purchases 186000 210000 222000 240000 252000 270000

S S S S S S
Units recquired for production 32500 35000 37000 40000 42000 45000
Add: Desired ending inventory 4600 4600 4600 4600 4600 4600
Total units recquired 37100 39600 41600 44600 46600 49600
Less: Beginning inventory 4000 4600 4600 4600 4600 4600
Units to be purchased 33100 35000 37000 40000 42000 45000
Unit price 30 30 30 30 30 30
Total Purchases 993000 1050000 1110000 1200000 1260000 1350000
 7 8 9 10

R R R R
28200 30000 31200 33000
1300 1300 1300 1300
29500 31300 32500 34300
1300 1300 1300 1300
28200 30000 31200 33000
10 10 10 10
282000 300000 312000 330000

S S S S
47000 50000 52000 55000
4600 4600 4600 4600
51600 54600 56600 59600
4600 4600 4600 4600
47000 50000 52000 55000
30 30 30 30
1410000 1500000 1560000 1650000
 Budgeted Manufacturing Overhead

Year 1 2 3 4

Variable Overhead
Units needed to produce 6500 7000 7400 8000
Indirect materials and supplies 38,025.00 40,950.00 43,290.00 46,800.00
Materials Handling 58,955.00 63,490.00 67,118.00 72,560.00
Other indirect labor 32,955.00 35,490.00 37,518.00 40,560.00
Total 129,935.00 139,930.00 147,926.00 159,920.00

Fixed Manufacturing Overhead

Supervisor labor 175,000.00 175,000.00 175,000.00 175,000.00
Maintenance & repair 85,000.00 85,000.00 85,000.00 85,000.00
Plant administration 173,000.00 173,000.00 173,000.00 173,000.00
Utilities 87,000.00 87,000.00 87,000.00 87,000.00
Depreciation 280,000.00 280,000.00 280,000.00 280,000.00
Insurance 43,000.00 43,000.00 43,000.00 43,000.00
Property taxes 117,000.00 117,000.00 117,000.00 117,000.00
Others 41,000.00 41,000.00 41,000.00 41,000.00
Total 1,001,000.00 ### 1,001,000.00 ###
Total Manufacturing Overhead 1,130,935.00 ### 1,148,926.00 ###
 5 6 7 8 9 10

8400 9000 9400 10000 10400 11000

49,140.00 52,650.00 54,990.00 58,500.00 60,840.00 64,350.00
76,188.00 81,630.00 85,258.00 90,700.00 94,328.00 99,770.00
42,588.00 45,630.00 47,658.00 50,700.00 52,728.00 55,770.00
167,916.00 179,910.00 187,906.00 199,900.00 207,896.00 219,890.00

175,000.00 175,000.00 175,000.00 175,000.00 175,000.00 175,000.00

85,000.00 85,000.00 85,000.00 85,000.00 85,000.00 85,000.00
173,000.00 173,000.00 173,000.00 173,000.00 173,000.00 173,000.00
87,000.00 87,000.00 87,000.00 87,000.00 87,000.00 87,000.00
280,000.00 280,000.00 280,000.00 280,000.00 280,000.00 280,000.00
43,000.00 43,000.00 43,000.00 43,000.00 43,000.00 43,000.00
117,000.00 117,000.00 117,000.00 117,000.00 117,000.00 117,000.00
41,000.00 41,000.00 41,000.00 41,000.00 41,000.00 41,000.00
1,001,000.00 1,001,000.00 ### 1,001,000.00 ### ###
1,168,916.00 1,180,910.00 ### 1,200,900.00 ### ###
 Direct Labor Budget

Year 1 2 3 4
Number of units to be produced 6500 7000 7400 8000
Multiply by: Direct labor cost per unit 146.00 146.00 146.00 146.00
Total Budgeted Direct labor costs 949,000.00 1,022,000.00 1,080,400.00 1,168,000.00
 5 6 7 8 9 10
8400 9000 9400 10000 10400 11000
146.00 146.00 146.00 146.00 146.00 146.00
1,226,400.00 1,314,000.00 1,372,400.00 1,460,000.00 1,518,400.00 1,606,000.00
 Budgeted Statement of Cost of Sales
Year 1 2 3
Beginning WIP Inventory - - -

Manufacturing Costs
Direct Materials
Beginning Inventory 142,000.00 151,000.00 151,000.00
Purchases 1,179,000.00 1,260,000.00 1,332,000.00
Total 1,321,000.00 1,411,000.00 1,483,000.00
Less: Ending Inventory 151,000.00 151,000.00 151,000.00
Total Direct Materials Cost 1,170,000.00 1,260,000.00 1,332,000.00
Direct Labor 949,000.00 1,022,000.00 1,080,400.00
Manufacturing Overhead 1,130,935.00 1,140,930.00 1,148,926.00
Total Manufacturing Costs 3,249,935.00 3,422,930.00 3,561,326.00
Less: Ending WIP Inventory - - -
Cost of Goods Manufactured 3,249,935.00 3,422,930.00 3,561,326.00
Add: Beginning FG Inventory 450,000.00 500,000.00 500,000.00
Total Available for Sale 3,699,935.00 3,922,930.00 4,061,326.00
Less: Ending FG Inventory 500,000.00 500,000.00 500,000.00
Cost of Sales 3,199,935.00 3,422,930.00 3,561,326.00
Cost of Sales
4 5 6 7 8 9
- - - - - -

151,000.00 151,000.00 151,000.00 151,000.00 151,000.00 151,000.00

1,440,000.00 1,512,000.00 1,620,000.00 1,692,000.00 1,800,000.00 1,872,000.00
1,591,000.00 1,663,000.00 1,771,000.00 1,843,000.00 1,951,000.00 2,023,000.00
151,000.00 151,000.00 151,000.00 151,000.00 151,000.00 151,000.00
1,440,000.00 1,512,000.00 1,620,000.00 1,692,000.00 1,800,000.00 1,872,000.00
1,168,000.00 1,226,400.00 1,314,000.00 1,372,400.00 1,460,000.00 1,518,400.00
1,160,920.00 1,168,916.00 1,180,910.00 1,188,906.00 1,200,900.00 1,208,896.00
3,768,920.00 3,907,316.00 4,114,910.00 4,253,306.00 4,460,900.00 4,599,296.00
- - - - - -
3,768,920.00 3,907,316.00 4,114,910.00 4,253,306.00 4,460,900.00 4,599,296.00
500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00
4,268,920.00 4,407,316.00 4,614,910.00 4,753,306.00 4,960,900.00 5,099,296.00
500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00
3,768,920.00 3,907,316.00 4,114,910.00 4,253,306.00 4,460,900.00 4,599,296.00
 10
-

151,000.00
###
###
151,000.00
###
###
###
###
-
###
500,000.00
###
500,000.00
###
 Budgeted Marketing & Administrative Costs

Year 1 Year 2 Year 3

Variable Marketing Costs
Sales Commission 260,000.00 284,375.00 300,625.00
Others 104,000.00 113,750.00 120,250.00
Total 364,000.00 398,125.00 420,875.00

Fixed Marketing Costs

Sales Salaries 100,000.00 100,000.00 100,000.00
Advertising 193,000.00 193,000.00 193,000.00
Others 78,000.00 78,000.00 78,000.00
Total 371,000.00 371,000.00 371,000.00
Total Marketing Costs 735,000.00 769,125.00 791,875.00
Administrative Costs (all fixed)
Administrative Salaries 254,000.00 254,000.00 254,000.00
Data Processing Services 103,000.00 103,000.00 103,000.00
Legal and Other professional fees 180,000.00 180,000.00 180,000.00
Depreciation-Building, Furniture and Eqpt. 94,000.00 94,000.00 94,000.00
Taxes- other than income 107,280.00 107,280.00 107,280.00
Other 26,000.00 26,000.00 26,000.00
Total 764,280.00 764,280.00 764,280.00
Total Marketing and Administrative Costs 1,499,280.00 ### 1,556,155.00
Administrative Costs

Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

325,000.00 341,250.00 365,625.00 381,875.00 406,250.00 422,500.00 446,875.00

130,000.00 136,500.00 146,250.00 152,750.00 162,500.00 169,000.00 178,750.00
455,000.00 477,750.00 511,875.00 534,625.00 568,750.00 591,500.00 625,625.00

100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00

193,000.00 193,000.00 193,000.00 193,000.00 193,000.00 193,000.00 193,000.00
78,000.00 78,000.00 78,000.00 78,000.00 78,000.00 78,000.00 78,000.00
371,000.00 371,000.00 371,000.00 371,000.00 371,000.00 371,000.00 371,000.00
826,000.00 848,750.00 882,875.00 905,625.00 939,750.00 962,500.00 996,625.00

254,000.00 254,000.00 254,000.00 254,000.00 254,000.00 254,000.00 254,000.00

103,000.00 103,000.00 103,000.00 103,000.00 103,000.00 103,000.00 103,000.00
180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00
94,000.00 94,000.00 94,000.00 94,000.00 94,000.00 94,000.00 94,000.00
107,280.00 107,280.00 107,280.00 107,280.00 107,280.00 107,280.00 107,280.00
26,000.00 26,000.00 26,000.00 26,000.00 26,000.00 26,000.00 26,000.00
764,280.00 764,280.00 764,280.00 764,280.00 764,280.00 764,280.00 764,280.00
1,590,280.00 1,613,030.00 ### 1,669,905.00 1,704,030.00 1,726,780.00 1,760,905.00
 Gilbert Manufacturing Company
Cash Budget

Year 1 Year 2 Year 3 Year 4

Cash balance, January 1 2018 150,000.00 143,065.00 212,650.00 121,089.00
Add: Estimated Receipts
Collections from Customers 5,185,000.00 5,185,000.00 5,185,000.00 5,185,000.00
Sale of Assets 25,000.00 25,000.00 25,000.00 25,000.00
Total 5,210,000.00 5,210,000.00 5,210,000.00 5,210,000.00
Total Cash Available 5,360,000.00 5,353,065.00 5,422,650.00 5,331,089.00
Less: Estimated Disbursements
Payments for Material Purchases 1,164,000.00 1,060,000.00 1,132,000.00 1,240,000.00
Direct Labor 949,000.00 1,022,000.00 1,080,400.00 1,168,000.00
Manufacturing Overhead 850,935.00 860,930.00 868,926.00 880,920.00
Marketing & Administrative Expenses 1,405,280.00 1,439,405.00 1,462,155.00 1,496,280.00
Interest Expense 52,720.00 46,080.00 46,080.00 46,080.00
Payment for Income Tax 252,000.00 252,000.00 252,000.00 252,000.00
Dividends Paid 140,000.00 140,000.00 140,000.00 140,000.00
Reduction in Long-Term Debt 83,000.00 - - -
Acquisition of new assets 320,000.00 320,000.00 320,000.00 320,000.00
Total Disbursements 5,216,935.00 5,140,415.00 5,301,561.00 5,543,280.00
Cash balance, December 31 143,065.00 212,650.00 121,089.00 (212,191.00)
 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
(212,191.00) (706,617.00) (1,442,762.00) (2,340,053.00) (3,479,063.00) (4,779,219.00)

### 5,185,000.00 5,185,000.00 5,185,000.00 5,185,000.00 5,185,000.00

25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00
### 5,210,000.00 5,210,000.00 5,210,000.00 5,210,000.00 5,210,000.00
### 4,503,383.00 3,767,238.00 2,869,947.00 1,730,937.00 430,781.00

### 1,420,000.00 1,492,000.00 1,600,000.00 1,672,000.00 1,780,000.00

### 1,314,000.00 1,372,400.00 1,460,000.00 1,518,400.00 1,606,000.00
888,916.00 900,910.00 908,906.00 920,900.00 928,896.00 940,890.00
### 1,553,155.00 1,575,905.00 1,610,030.00 1,632,780.00 1,666,905.00
46,080.00 46,080.00 46,080.00 46,080.00 46,080.00 46,080.00
252,000.00 252,000.00 252,000.00 252,000.00 252,000.00 252,000.00
140,000.00 140,000.00 140,000.00 140,000.00 140,000.00 140,000.00
- - - - - -
320,000.00 320,000.00 320,000.00 320,000.00 320,000.00 320,000.00
### 5,946,145.00 6,107,291.00 6,349,010.00 6,510,156.00 6,751,875.00
(706,617.00) (1,442,762.00) (2,340,053.00) (3,479,063.00) (4,779,219.00) (6,321,094.00)
 Gilbert Manufacturing Company
Budgeted Income Statement

Year 1 2 3 4
Sales 5,120,000.00 5,600,000.00 ### 6,400,000.00
Less: Cost of Sales 3,199,935.00 3,422,930.00 ### 3,768,920.00
Gross Profit 1,920,065.00 2,177,070.00 ### 2,631,080.00
Less: Marketing and Admin. Costs 1,499,280.00 1,533,405.00 ### 1,590,280.00
Net Operating Profit 420,785.00 643,665.00 802,519.00 1,040,800.00
Less: Interest Expense 52,720.00 46,080.00 46,080.00 46,080.00
Net Income before Taxes 368,065.00 597,585.00 756,439.00 994,720.00
Less: Provision for Income Taxes 128,822.75 209,154.75 264,753.65 348,152.00
Net Income (loss) after Taxes 239,242.25 388,430.25 491,685.35 646,568.00
 5 6 7 8 9 10
6,720,000.00 7,200,000.00 7,520,000.00 8,000,000.00 8,320,000.00 8,800,000.00
3,907,316.00 4,114,910.00 4,253,306.00 4,460,900.00 4,599,296.00 4,806,890.00
2,812,684.00 3,085,090.00 3,266,694.00 3,539,100.00 3,720,704.00 3,993,110.00
1,613,030.00 1,647,155.00 1,669,905.00 1,704,030.00 1,726,780.00 1,760,905.00
1,199,654.00 1,437,935.00 1,596,789.00 1,835,070.00 1,993,924.00 2,232,205.00
46,080.00 46,080.00 46,080.00 46,080.00 46,080.00 46,080.00
1,153,574.00 1,391,855.00 1,550,709.00 1,788,990.00 1,947,844.00 2,186,125.00
403,750.90 487,149.25 542,748.15 626,146.50 681,745.40 765,143.75
749,823.10 904,705.75 1,007,960.85 1,162,843.50 1,266,098.60 1,420,981.25