0 FILE 5. HOME INSERT PAGE LAYOUT FIN1013 In-Class Tuik 3 Projected Statements and Ratio Analysis. (4365 [Protected Vies) - Excel Products FORMULAS DATA REVIEW VIEW PROTECTED VIEW Be careful--files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing D14 X D 2014 B 2,012 2,900,000 -1,870,000 1,030,000 4,000 2,013 3,100,000 -1.880,000 1,220,000 5,000 1 2 Revenue 3 Cost of goods sold 4 Gross profit 5 Other Income 6 Distribution, administration, and other expenses 7 Distribution 8 Administration 9 Research and development 10 Depreciation/amortization Total distribution, administration, and other 11 expenses 12 Finance costs 13 Total (expenses less other Income) 14 Profit before taxes 15 Income tax expense 16 Profit for the year 17 18 19 (325,000 (220,000) (35,000) (95,000 (675,000) (330,000) (210,000) (45.000) (105.000 (690,000) (27,000 (698,000) 332,000 166,000 166,000 (30,000 1715.000 505,000 252 500 252.500 E F G H K M N Use the following assumptions to create a Projected Income Statement for the Year 2014 1. Related to the statement of income: Revenue will increase by 10.0%. . Cost of sales as a percentage of revenue will decline to 51.5%. Distribution costs as a percentage of revenue will improve slightly to 10.5%. General and administrative expenses will drop to 5.7% of revenue. Research and development costs as a percentage of revenue will increase to 2.0%. Depreciation/amortization will be $120,000. Other income will be $6,000. Finance costs will be $35,000. Income tax rate (as a percent of profit before taxes) will be maintained at the 2013 level