Update Details for this Workbook

Last Update by: Lauren Steveson

Scenarios Updated on: 12/28/2022
Scenarios for fiscal year-end: 12/31/2023
 Loan for Borrowing Cash

Fiscal Year 2023

APR 4.25%
Repayment in Years 5
Amount Borrowed $ 200,000
Closing Date 12/15/2022
First Payment Due 1/31/2023
Monthly Payment $ 3,706

First Month Interest Expense $ 708

Payments for One Year $ 44,471

Estimated Interest Expense
for One Year $ 8,500
 Finance Lease for New Equipment

Fiscal Year 2023

APR 4.10%
Lease Duration in Years 10
Asset Cost $ 333,807
Residual Value $ 40,000
Closing Date 1/27/2023
Annual Payment $38,044
First Payment Due Date 1/31/2024
Depreciation Expense $ 329,807
Estimated Interest Expense $ (291,763)

Present Value of Lease

Payments $ 307,043
 Stella Products Corporation
Pro Forma Income Statement
Estimated for: December 31, 2023

Revenue $ 2,975,000
Cost of Goods Sold $ 1,950,000
Gross Profit $ 1,025,000
Operating Expenses
Depreciation $ 329,807
Salaries $ 530,000
Advertising $ 105,000
Utilities $ 20,000
Other $ 7,000
Total Operating Expenses $ 991,807
Net Operating Income $ 33,193
Interest Expense $ (283,263)
Income Before Income Tax $ 316,456
Income Tax $ 66,456 21% Tax Rate

Net Income $ 250,000

 Net Income Projection

Growth Rate 8.00%

Future Years 5
Pro Forma Net Income $ 250,000

Future Net Income $ 1,466,650