MArketing _ Financial Projections

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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

b. Five-Year Projections

			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