Person X is a director of a Manufacturing warehouse is working as part of a strategic planning group tasked with laying out the future direction of the company Person X has compiled some information about the company from which he would like to come up with future estimates and trends i e develop a Pro Forma Income Statement for years six through 10 Information From the sales department, (Person X) found the following sales and price information The price has steadily decreased by 3 over the last five years 1 2 3 4 5 Unit Sales 310 721 932 1065 1108 Price $1,000 00 $970 00 $940 90 $912 67 $885 29 From accounting and production, Person X received the following cost and expense information He was also informed that the average taxes were 29 1 2 3 4 5 COGS $148,800 00 $393,089 20 $461,168 51 $482,285 98 $475,233 53 G A $55,023 00 $109,456 00 $137,998 00 $138,032 78 $148,023 45 Selling Exp $52,310 86 $78,345 32 $80,004 23 $82,041 56 $78,997 49 Depreciation $24,000 00 $38,000 00 $32,000 00 $26,000 00 $20,000 00 Interest $15,000 00 $14,569 00 $14,034 00 $13,456 00 $12,954 00 Person X received information on depreciation and interest expenses for the ensuing 5 years 6 7 8 9 10 Depreciation $18,000 00 $17,000 00 $16,000 00 $16,000 00 $16,000 00 Interest $12,532 00 $11,980 00 $11,611 00 $11,178 00 $10,792 00 The estimations included in the pro forma statements are critical for the company since many direct investment decisions must be made to meet anticipated sales growth The IS generated will become the backbone of the financing decisions and cash flow planning for management

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Person X is a director of a Manufacturing warehouse is working as part of a strategic planning group tasked with laying out the future direction

Person X is a director of a Manufacturing warehouse is working as part of a strategic planning group tasked with laying out the future direction of the company. ?Person X has compiled some information about the company from which he would like to come up with future estimates and trends... i.e. develop a Pro-Forma Income Statement for years six through 10.? ?

Information

From the sales department, (Person X) found the following sales and price information. ?The price has steadily decreased by 3% over the last five years.?

?	1	2	3	4	5
Unit Sales	310	721	932	1065	1108
Price	$1,000.00	$970.00	$940.90	$912.67	$885.29

From accounting and production, Person X received the following cost and expense information. ?He was also informed that the average taxes were 29%.?

	1	2	3	4	5
COGS	$148,800.00	$393,089.20	$461,168.51	$482,285.98	$475,233.53
G&A	$55,023.00	$109,456.00	$137,998.00	$138,032.78	$148,023.45
Selling Exp.	$52,310.86	$78,345.32	$80,004.23	$82,041.56	$78,997.49
Depreciation	$24,000.00	$38,000.00	$32,000.00	$26,000.00	$20,000.00
Interest	$15,000.00	$14,569.00	$14,034.00	$13,456.00	$12,954.00

Person X received information on depreciation and interest expenses for the ensuing 5 years.?

	6	7	8	9	10
Depreciation	$18,000.00	$17,000.00	$16,000.00	$16,000.00	$16,000.00
Interest	$12,532.00	$11,980.00	$11,611.00	$11,178.00	$10,792.00

The estimations included in the pro-forma statements are critical for the company since many direct investment decisions must be made to meet anticipated sales growth. ?The IS generated will become the backbone of the financing decisions and cash flow planning for management.?