Question
5.1 Pro Forma Income Statement Describe key figures and assumptions from the income statement, such as important profit or sales figures and their causes. Also,
| 5.1 Pro Forma Income Statement Describe key figures and assumptions from the income statement, such as important profit or sales figures and their causes. Also, provide a screenshot of your pro forma income statement.
5.2 Pro Forma Balance Sheets Provide a screenshot of your balance sheets and describe key figures they contain.
5.3 Pro Forma Cash Budget Provide a screenshot of the cash budget and describe the impact of the budget on cash balances. Data is provided below
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Sources of Cash | |||||
| Total Income from food and vending | 938,944 | 1,561,492 | 1622390 | 1985664 | 1751404 |
| Cost of food | 282,880 | 294,195.20 | 305,963.00 | 318,201.53 | 330,930 |
| Depreciation on Equipment | 3069.2 | 3,069.20 | 3,069.20 | 3,069.20 | 3,069.20 |
| Salaries | 348,636 | 362,581.44 | 377,084.70 | 392,168.08 | 407,854.80 |
| Employee Benefits | 21,887.20 | 22,762.70 | 23,673.20 | 24,620.12 | 25,604.93 |
| Utilities | 24,000 | 24,000 | 24,000 | 24,000 | 24,000 |
| Credit Card Fees | 23,473.60 | 39,037.30 | 40,559.76 | 42,141.59 | 43,785.11 |
| Inventory Holding Costs | 2347.36 | 3,903.73 | 4,055.98 | 4,214.16 | 4,378.51 |
| Advertising and Marketing | 15,000 | 10,000 | 10,000 | 10,000 | 10,000 |
| Rent | 630,000 | 630,000 | 630,000 | 630,000 | 630,000 |
| Insurance | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 |
| Interest | 13,320 | 13,320 | 13,320 | 13,320 | 13,320 |
| Income(for purposes oftax calulation) | -426669 | 157,623 | 189,665 | 222,929 | 257,462 |
| Taxes | 42,558.10 | 51,209.42 | 60,190.80 | 69,514.82 | |
| Add Back Depreciation (non-cash expense) | 3,069.20 | 3,069.20 | 3,069.20 | 3,069.20 | 3,069.20 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Sources of Cash |
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Corporate Accounting Information Systems
Authors: Tony Boczko
1st Edition
0273684876, 978-0273684879
