1. Delta Pharmaceuticals

Scenario: Budgeting and Forecasting

Data: Delta Pharmaceuticals is preparing its budget for the upcoming fiscal year 2024 based on the following projections:

• Expected Sales Revenue: $10,000,000
• Cost of Goods Sold: 60% of Sales Revenue
• Operating Expenses: $2,000,000
• Interest Expense: $100,000
• Income Tax Rate: 25%

Requirements: Prepare Delta Pharmaceuticals' budgeted Income Statement for the fiscal year 2024. Calculate the projected net income and earnings per share (EPS) assuming 1,000,000 shares outstanding. Discuss the importance of budgeting and forecasting in Delta Pharmaceuticals' financial planning process. Evaluate the budgeted financial statements and recommend strategies for Delta Pharmaceuticals to achieve its financial targets.