Discuss and interpret the financials in relation to the initiative. Make recommendations on potential discretionary financing needs.

XYZ Company, INC. Profit and Loss Statement Year Ended December 31, 20XX % Sales 1,750,450 Returns and allowances 2,752 Net Sales 1,747,698 100.0 Cost of Sales Beginning Inventory 50,000 Purchases 610,162 Production Labor 420,108 Ending Inventory 30,000 Total Cost of Sales 1,050,270 60.1 Gross Profit 697,428 39.9 Selling Expense Wages 75,000 Commissions 25,000 Marketing 25,000 Total Selling Expenses Operating Expense Salaries Payroll taxes Benefits Office Supplies Postage Professional Fees Telephone Utilities Training & Education Miscellaneous Total Operating Expense Operating Profit—EBITDA Other Income (Expense) Interest Depreciation Amortization 125,000 7.2 225,000 29,000 27,000 500 250 2,000 850 950 250 50 285,850 16.4 286,578 16.4 (9,650) (12,000) (2,500) Total Other Income (Expense) (24,150) Total Pre-tax Profit 262,428 15.0 Income Tax Allowance 118,093 Net Profit 144,335 8.3 �