Create contingency plans to address major problems or setbacks as they occur.

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3 YR Pro Forma Income Statement

Pro-Forma Income Statement
Five-Star Cleaning Services
For 2018 through 2020
(all numbers in $000)
REVENUE 2018 2019 2020
Gross Sales $800 $950 $1,200
Less Allowances 1 3 5
Net Sales $799 $947 $1,195
COST OF SALES
Beginning Inventory $350 $370 $400
Plus goods purchased/manufactured 80 110 135
Total Goods Available $430 $480 $535
Less ending inventory 210 235 255
Total Cost of Goods Sold $220 $245 $280
Gross Profit (Loss) $579 $702 $915
OPERATING EXPENSES
Selling
Salaries & Wages $55 $60 $68
Commissions 16 18 22
Advertising 12 14 16
Depreciation 16 17 19
Other 6 7 7
Total Selling Expenses $105 $116 $132
General/Administrative
Salaries & Wages $14 $16 $18
Employee Benefits 5 7 8
Payroll Taxes 3 4 4
Insurance 6 8 8
Rent 9 9 10
Utilities 2 2 2
Depreciation & amortization 4 5 5
Office supplies 1 1 1
Travel & entertainment 2 3 3
Equipment maintenance & rental 0 0 2
Interest 0 1 1
Furniture & equipment 4 5 4
Total General/Administrative Expenses $50 $61 $66
TOTAL OPERATING EXPENSES $155 $177 $198
Net Income Before Taxes $424 $525 $717
Taxes on income 148.40 183.75 250.95
Net Income After Taxes $275.60 $341.25 $466.05
Extraordinary gain or loss 0 0 33
Income tax on extraordinary gain 0 0 7
NET INCOME (LOSS) $275.60 $341.25 $426.05

Break-Even


Owner: Owner: 		Years 2018 2019 2020
Total Operating Expense 22,000 25,000 27,000
Units sold 1,600 1,900 2,400
Cost per unit 234 234 234
Price per unit 500 500 500
Break even point 82.83 94.12 101.65

Five-Star Cleaning Services Break even point for services 2018-2020 All amounts in $000