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Exhibit 2: Budgeted Income statement for the next 5 years Terry and Sarah have the following assumption for the projected income Staternent for the next five years for the new HIIT adventure. fitness companies that operate on a membership model, managing memberships, subscriptions, and renewals is essential. This involves tracking member sign-ups, cancellations, and retention rates, as well as implementing effective membership pricing strategies to maximize revenue while maintaining competitiveness in the market. The most favorable membership option for our clients is the monthly subscription. For the HIIT program, clients will pay $300 per month for 3 ses5ion5 per week or 12 sessions per month. will consider a 5% increase every 2 years in the monthly subscription. Total capacity is 5 rounds per day, each lasting 1 hour and 50 minutes with 20 persons per round, operating 6 days a week, and 300 days on a year (Sundays and stat holidays the club will be closed). Drop-in fees per session are $30. the club has empty capacity, 10% of capacity can be completed by drop-in customers. The price will increase by 5% every 2 years. In 2025, the capacity utilization is projected to be 70%, With a subsequent annual increase Of 2% in operating capacity thereafter. Additional sales, including vending and coffee machine sales, will account for 2% of total Operating expenses will include rent, depreciation of equipment (using the straight-line method over 10 years), and depreciation of building improvement (at 5% annually) There will be the addition Of 2 new staff (registered and certified trainers) each earning 75K annually, along with one admin manager earning 60K annually with a 3% annual increase. Sarah pointed out the potential for hiring unlicensed instructors at a lower annual salary and due to their extensive experience, which may go unnoticed by customers. Annual advertisement and marketing will amount to 20K. Utilities, licenses, and other operating and admin expenses will be 5% Of annual sales. A 20% allocated head office overhead, amounting to 4K monthly, with a 3% annual increase. There is a possibility of selling supplements that claim to guarantee rapid weight loss or muscle gain. Terry conducted research on some of these supplements and found that there was not sufficient scientific evidence to support this claim. Calculate income statement for five and show me calculation.)