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  • P and L Statement Template

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    plng.pro13
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    This example profit and loss statement shows the projected sales, costs, and profits over three years for a new snack product. In year 1, the product is projected to generate $1.5 million in sales with $450,000 in variable costs and $750,000 in fixed advertising costs, resulting in a net profit before taxes of $300,000. Sales are projected to grow to $1.75 million in year 2 and $2 million in year 3, maintaining costs at 30% of sales for goods and 50% of sales for advertising.

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    This example profit and loss statement shows the projected sales, costs, and profits over three years for a new snack product. In year 1, the product is projected to generate $1.5 million in sales with $450,000 in variable costs and $750,000 in fixed advertising costs, resulting in a net profit before taxes of $300,000. Sales are projected to grow to $1.75 million in year 2 and $2 million in year 3, maintaining costs at 30% of sales for goods and 50% of sales for advertising.

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    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
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    4 views2 pages

    P and L Statement Template

    Uploaded by

    plng.pro13
    This example profit and loss statement shows the projected sales, costs, and profits over three years for a new snack product. In year 1, the product is projected to generate $1.5 million in sales with $450,000 in variable costs and $750,000 in fixed advertising costs, resulting in a net profit before taxes of $300,000. Sales are projected to grow to $1.75 million in year 2 and $2 million in year 3, maintaining costs at 30% of sales for goods and 50% of sales for advertising.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
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    of 2

    NEW SNACK PRODUCT

    PROFIT AND LOSS STATEMENT


    EXAMPLE

    YEAR 1 YEAR 2 YEAR 3

    $ % $ % $

    SALES $1,500,000 100.0% $1,750,000 100.0% $2,000,000

    VARIABLE COSTS:
    COST OF GOODS $450,000 30.0% 30.0%

    GROSS PROFIT $1,050,000 70.0%

    FIXED COSTS:
    ADVERTISING/PROMOTION $750,000 50.0% 50.0%

    NET PROFIT (BEFORE TAXES) $300,000 20.0%

    NOTES:
    1. Assume a cost of goods of 30% of sales (unless you can calculate actual costs less than 30%).
    2. Calculate your fixed costs budget as equal to 50% of your sales and then consider it a fixed cost.
    %

    100.0%

    30.0%

    50.0%

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