the annual income statement plan using the information on the attached file.  The first tab is the income statement; the plan column will populate sales and operating expenses from your inputs on the second and third tabs.  You will directly input "other income" and "tax expense" on the fist tab.  The second tab is the sales history to help you develop the sales plan on this tab.  The third tab is the expense detail history to help you develop the expense plan on this tab.  Add comments to the tabs to help support the assumptions you are making.   As you analyze the historical performance, you will note certain aspects of the company strategy regarding each product. Before building your annual plan, you will have to decide what changes, if any, you need to make to the company strategy.  

 

Help fill in the 2024 plan. This is an estimate.

Use the following tabs to develop the plan amounts for each account except
Other Income and Tax Expense.  Make 2 comments below regarding Other
Income and Tax Expense.
		Income Statement for the year ended December 31
(000s)				Actual Results				Plan
		2021		2022		2023		2024
Sales Revenue		$         5,000		$         5,224		$         5,318		$                -	Use the Sales tab to build your Sales Revenue plan amount
Cost of Goods Sold		3,300		3,300		3,390		-	Use the Sales tab to build your Cost of Goods Sold plan amount
	Gross Profit	1,700		1,924		1,928		-
Selling and Administrative		1,250		1,329		1,381		-	Use the Expense tab to build your expense amount
Other Operating Expense		180		176		172		-	Use the Expense tab to build your expense amount
	Operating Income	270		419		375		-
Other Income		20		30		40			Input plan number and note assumption below in comments section
Income Before Taxes		290		449		415		-
Tax Expense		58		90		83			Input plan number and note assumption below in comments section
Net Income		$            232		$            359		$            332		$                -
At least 2 comments to support plan assumptions of Other Income and Tax Expense:

 

Use the information below to make product decisions for 2023 and build the sales plan
Calculate ratios to support the plan revenue and cost of sales amounts
		2021		2022		2023		2024
Product A
Unit Sales		100		104		125				Input
Price Per Unit		$        20.00		$        21.00		$        19.50				Input
Sales Revenue		$         2,000		$         2,184		$         2,438		$                -		Calculated
Cost of Goods Sold		$         1,500		$         1,600		$         1,840				Input
Gross Profit		$            500		$            584		$            598		$                -		Calculated
Product B
Unit Sales		200		190		160				Input
Price Per Unit		$        15.00		$        16.00		$        18.00				Input
Sales Revenue		$         3,000		$         3,040		$         2,880		$                -		Calculated
Cost of Goods Sold		$         1,800		$         1,700		$         1,550				Input
Gross Profit		$         1,200		$         1,340		$         1,330		$                -		Calculated
Total
Sales Revenue		$         5,000		$         5,224		$         5,318		$                -
Cost of Sales		3,300		3,300		3,390		-
Gross Profit		1,700		1,924		1,928		-
At least 4 comments to support plan assumptions:

 

Expense History - use the detail below to help build the expense plan
Calculating expenses as a percent of product revenue will help you make decisions and build the expense plan
		2021		2022		2023		2024
Marketing - Product A		100		109		195			Input these 5 expense lines
Marketing - Product B		210		182		144
Commissions - Product A		140		153		146
Commissions - Product B		300		365		346
Administrative Expense		500		520		550
	Selling and Admin Exp	1,250		1,329		1,381		-	Calculated
Depreciation Expense		100		95		90			Input these 3 expense lines
Rent Expense		50		53		55
Other Operating Exp		30		28		27
	Other Operating Expense	180		176		172		-	Calculated
At least 5 comments to support plan assumptions: