Table 4.

4
                          Projected Income Statement (Year 1 to Year 5)
 
 

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Sales 440,400.00 566,925.00 658,418.00 763,307.00 932,080

Cost of goods sold

     Beginning
0 26,000.00 138,000.00 200,500.00 201,200.00
Inventory

     Purchases 260,000.00 356,250.00 447,500.00 520,500.00 703,000.00

            Total
goods  available for 260,000.00 382,250.00 585,500.00 721,000.00 904,200.00
sale

     Ending
26,000.00 138,000.00 200,500.00 201,200.00 202,000.00
Inventory

     Cost of goods

234,000.00 244,250.00 385,000.00 519,800.00 702,200.00
sold

Gross Profit

Selling and Administrative expenses

     Salaries 25,000.00 25,000.00 30,000.00 30,000.00 37,000.00

     Transportation 1,500.00 1,600.00 1,500.00 1,700.00 1,400.00

     Rent 35,000.00 35,000.00 35,000.00 37,000.00 37,000.00

     Utilities 25,500.00 27,000.00 28,900.00 28,000.00 31,000.00

     Total 87,000.00 88,600.00 95,400.00 96,700.00 106,400.00

Net Profit          
* (2 points each for correct answer)