3 (3 pts) What is the growth rate of Net Income for each of the forecasted years? (HINT: See Week 2 Lesson, horizontal analysis) 2023 2024 2025 2026 2027

MILESTONE 3 FINANCIAL STATEMENTS
The financial statements below show Actual data (in white) and Forecasted data (highlighted in blue).
Use the data below to complete your Milestone 3 Metrics and answer the Milestone 3 Questions.
		PLEASE NOTE: The figures provided below are NOT the solution to Milestone 2!
DURA-CLEAR WINDOWS, LLC
Proforma Income Statement
				2020	2021	2,022	2,023	2,024	2,025	2,026	2,027
Sales (all on credit)				1,200,000	1,500,000	1,875,000	4,000,000	5,000,000	6,000,000	7,000,000	8,000,000
Cost of Goods Sold				(800,000)	(1,040,000)	(1,105,000)	(1,957,333)	(2,446,667)	(2,936,000)	(3,425,333)	(3,914,667)
Gross Profit				400,000	460,000	770,000	2,042,667	2,553,333	3,064,000	3,574,667	4,085,333
Selling and Administrative Expense				(304,900)	(350,500)	(443,700)	(1,100,120)	(1,271,650)	(1,443,180)	(1,614,710)	(1,786,240)
Operating profit (EBIT)				95,100	109,500	326,300	942,547	1,281,683	1,620,820	1,959,957	2,299,093
Interest expense				(35,000)	(45,000)	(85,000)	(70,000)	(60,000)	(50,000)	(40,000)	(30,000)
Net Income before Taxes				60,100	64,500	241,300	872,547	1,221,683	1,570,820	1,919,957	2,269,093
Taxes (36%)				(36,900)	(49,200)	(55,600)	(314,117)	(439,806)	(565,495)	(691,184)	(816,874)
Net Income				23,200	15,300	185,700	558,430	781,877	1,005,325	1,228,772	1,452,220
Shares				60,000	60,000	78,000	104,000	104,000	104,000	104,000	104,000
Earnings per Share				$0.39	$0.26	$2.38	$5.37	$7.52	$9.67	$11.82	$13.96
DURA-CLEAR WINDOWS, LLC
Proforma Balance Sheet
				2020	2021	2022	2023	2024	2025	2026	2027
ASSETS
Cash				30,000	40,000	30,000	60,000	60,000	60,000	60,000	60,000
Marketable Securities				20,000	25,000	30,000	40,000	40,000	40,000	40,000	40,000
Accounts Receivable				170,000	259,000	360,000	600,000	800,000	1,000,000	1,100,000	1,200,000
Inventory				230,000	261,000	290,000	693,778	867,222	1,040,667	1,214,111	1,387,556
	Total Current Assets:			450,000	585,000	710,000	1,393,778	1,767,222	2,140,667	2,414,111	2,687,556
Plant and equipment				650,000	765,000	1,390,000	2,140,000	2,140,000	2,140,000	2,140,000	2,140,000
Less: accumulated depreciation				(65,000)	(141,500)	(280,500)	(494,500)	(708,500)	(922,500)	(1,136,500)	(1,350,500)
Net Plant and equipment				585,000	623,500	1,109,500	1,645,500	1,431,500	1,217,500	1,003,500	789,500
Total Assets				1,035,000	1,208,500	1,819,500	3,039,278	3,198,722	3,358,167	3,417,611	3,477,056
LIABILITIES & STOCKHOLDER'S EQUITY
Accounts Payable				200,000	310,000	505,000	748,560	949,222	1,149,884	1,296,458	1,443,031
Accrued Expenses				20,400	30,000	35,000	75,000	95,000	115,000	130,000	145,000
	Total Current Liabilities			220,400	340,000	540,000	823,560	1,044,222	1,264,884	1,426,458	1,588,031
Long-term Liabilities				325,000	363,600	703,900	603,900	503,900	403,900	303,900	203,900
	Total Liabilities			545,400	703,600	1,243,900	1,427,460	1,548,122	1,668,784	1,730,358	1,791,931
Common Stock ($1 par)				60,000	60,000	78,000	104,000	104,000	104,000	104,000	104,000
Capital paid in excess of par				190,000	190,000	262,000	1,236,000	1,236,000	1,236,000	1,236,000	1,236,000
Retained Earnings				239,600	254,900	235,600	271,818	310,600	349,383	347,254	345,124
	Total Stockholder's Equity			489,600	504,900	575,600	1,611,818	1,650,600	1,689,383	1,687,254	1,685,124
Total Liabilities & Stockholder's Equity				1,035,000	1,208,500	1,819,500	3,039,278	3,198,722	3,358,167	3,417,611	3,477,056