MArketing _ Financial Projections
Financial projections are an important aspect in any business. They are used to indicate the expected profits or loss from its operations. They are also important when trying to gain access to finances through loans and other sources of credit. In this case, the five-year financial projection for The Roaring 20 will be done using an income statement.
a. Past Sales Revenues
|
Year |
2018 |
2017 |
2016 |
2015 |
2014 |
|
Net Profit |
59,543 |
55,876 |
50,564 |
46,676 |
44,546 |
|
|
|
|
year 1 |
year 2 |
year 3 |
year 4 |
year 5 |
|
revenue |
|
|
1,234,546 |
1,645,564 |
1,756,654 |
1,789,986 |
1,856,034 |
|
cost of sales |
|
511,090 |
855,799 |
946,746 |
965,311 |
1,023,269 |
|
|
gross profit |
|
723,456 |
789,765 |
809,908 |
824, 675 |
832,765 |
|
|
|
|
|
|
|
|
|
|
|
advertising |
|
2,000 |
3,500 |
3,700 |
4,500 |
5,000 |
|
|
bank charges |
|
41,200 |
41,700 |
43,300 |
44,100 |
45,650 |
|
|
benefits |
|
|
224,000 |
227,000 |
229,000 |
230,000 |
235,000 |
|
insurance |
|
1,000 |
1,050 |
1,090 |
1,200 |
1,240 |
|
|
rent |
|
|
240,000 |
240,000 |
240,000 |
240,000 |
240,000 |
|
licenses |
|
|
300 |
310 |
319 |
320 |
324 |
|
maintenance |
|
410 |
400 |
427 |
434 |
430 |
|
|
miscellaneous |
|
1,800 |
1,820 |
1,853 |
1,860 |
1,900 |
|
|
security |
|
|
609 |
624 |
628 |
640 |
650 |
|
telephone |
|
480 |
488 |
490 |
500 |
520 |
|
|
total operating expenses |
511,799 |
516,892 |
520,807 |
523,554 |
530,714 |
||
|
EBIDTA |
|
|
211,657 |
272,873 |
289,101 |
301,121 |
302,051 |
|
depreciation |
|
2,874 |
2,567 |
2,674 |
2,765 |
2,987 |
|
|
operating profit |
|
208,783 |
270,306 |
286,427 |
298,356 |
299,064 |
|
|
interest expense |
|
87,453 |
98,054 |
99,456 |
102,678 |
104,765 |
|
|
earnings before taxes |
121,330 |
172,252 |
186,971 |
195,678 |
194,299 |
||
|
income taxes |
|
57,765 |
102,765 |
110,876 |
114, 435 |
109,657 |
|
|
net income |
|
63,565 |
69,487 |
76,095 |
81,243 |
84,572 |