Adaptive Solutions Online

Eight-Year Financial Projection for Product X

1 2 3 4
e ar e ar
ea r
ea r
ea
Y Y Y Y Y
Sales 42,524,207 45,222,900 48,092,858 51,144,951

Cost of Goods 29,809,469 31,701,253 33,713,093 35,852,611

Gross Margin 12,714,738 13,521,647 14,379,765 15,292,340

Expenses
Advertising 3,190,816 3,393,217 3,608,464 3,837,371

Maintenance 500,000 625,000 430,000 525,000

Rent 1,050,000 1,113,000 1,179,780 1,250,567

Salaries 5,953,389 6,331,206 6,733,000 7,160,293

Shipping 1,445,823 1,537,579 1,635,157 1,738,928

Supplies 467,766 497,452 529,021 562,594

Web Services 75,000 80,250 85,868 91,878

Total Expenses 12,682,794 13,577,704 14,201,291 15,166,632

Operating Income 31,944 (56,057) 178,474 125,708

Income Taxes 11,180 0 62,466 43,998

Net Income 20,764 (56,057) 116,008 81,710

Assumptions
Units Sold in Prior Year 242,847
Unit Cost $122.75
Annual Sales Growth 3.50%
Annual Price Increase 2.75%
Margin 29.90%
 4 5 6 7 8
a r a r a r a r a r
e e e e e
Y Y Y Y Y
54,390,737 57,842,510 61,513,340 65,417,130

38,127,907 40,547,599 43,120,851 45,857,408

16,262,830 17,294,910 18,392,489 19,559,722

4,080,805 4,339,688 4,615,000 4,907,785

550,000 450,000 400,000 400,000

1,325,601 1,405,137 1,489,445 1,578,812

7,614,703 8,097,951 8,611,868 9,158,398

1,849,285 1,966,645 2,091,454 2,224,182

598,298 636,268 676,647 719,588

98,310 105,191 112,555 120,434

16,117,002 17,000,881 17,996,968 19,109,199

145,828 294,030 395,520 450,523

51,040 102,910 138,432 157,683

94,788 191,119 257,088 292,840
 Projected Net Income
350,000

300,000
Net Income

250,000

200,000

150,000

100,000

50,000

0
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

(50,000)

(100,000)