Pro Forma Income Statement - please complete the template provided for you in the spreadsheet Calendar and Pro Forma.xlsx. I have filled in the information for 2019 documenting your project loss in the current fiscal year of $50,000 (net). When preparing your pro forma income statement, assume variable costs will be the same as last year. Last year, the variable cost to obtain unit one of your product and put it in your warehouse was $0.50. You CANNOT reduce this variable cost in order to increase your profit and this variable cost must remain constant for the next two years, regardless of the sales volume you project. You should also assume that production can increase or decrease (vary) instantly to any level you desire, with no additional fixed costs. Fixed costs for your product are $250,000 annually. This amount covers salaries, benefits, office supplies, warehouse space and other product-related expenses. It does not include any money for promotions such as advertising, PR, or personal selling. Advertising and promotion expenses will be listed separately in the income statement. Your boss has stated that he wants to make a significant net profit on your product in each of the next two years. Whatever funds you spend on advertising, market research, product/packaging redesign, etc. you MUST document how you will recover these expenses (via sales increases) and it is NOT an option to end year 2 with a loss. There are additional lines for your specific expenses (add expense 1, etc.) so add all relevant items into the pro forma to complete the statement.Pro Forma Income Statement - please complete the template provided for you in the spreadsheet Calendar and Pro Forma.xlsx. I have filled in the information for 2019 documenting your project loss in the current fiscal year of $50,000 (net). When preparing your pro forma income statement, assume variable costs will be the same as last year. Last year, the variable cost to obtain unit one of your product and put it in your warehouse was $0.50. You CANNOT reduce this variable cost in order to increase your profit and this variable cost must remain constant for the next two years, regardless of the sales volume you project. You should also assume that production can increase or decrease (vary) instantly to any level you desire, with no additional fixed costs. Fixed costs for your product are $250,000 annually. This amount covers salaries, benefits, office supplies, warehouse space and other product-related expenses. It does not include any money for promotions such as advertising, PR, or personal selling. Advertising and promotion expenses will be listed separately in the income statement. Your boss has stated that he wants to make a significant net profit on your product in each of the next two years. Whatever funds you spend on advertising, market research, product/packaging redesign, etc. you MUST document how you will recover these expenses (via sales increases) and it is NOT an option to end year 2 with a loss. There are additional lines for your specific expenses (add expense 1, etc.) so add all relevant items into the pro forma to complete the statement.

AutoSave OFF OF ABU Calendar and Pro Forma Template 2020 Insert Draw Page Layout Home - Formulas Data Review View Tell me Share Comments Aral 92 ab Wraa Text General Insert 1 X [G 10 ~AA ov 27 0 4 DX Delete Peste BIU - Merge & Center Y S% Sort & Sensitivity Conditional Format Cell Formatting as Table Styles Format Filter Find & Select Analyze Cale Check for Updates Office Update To keep up-to-date with security updates, lixes, and improvements, choose Check for Updates. H15 x fx | AR D H 1 1 M N a P R S Pro-Forma Income Statement 3 2019 (current year 2020 2021 400 000 $1.00 3400,000.00 $0 SO $0.50 3200,000.00 $0 SO - $200,000.00 $0 REVENUE Sales in units sold) Revenue perurit 5 Total Ravenues 10 11 COST OF SALES 12 Cost of goods purchased ! manufactured (per unt! Total Cost a Gooda Sol 14 16 Gross Profit (06) 16 17 OPERATING AND OVERHEAD EXPENSES 18 Acvaring and Promotion 10 add expense 1 20 add expense 2 21 Add expense 3 22 add expense 4 23 add expense 5 24 add expenses 25 Overhead (anlaries and wagas, herefts, office supples etc. 26 Total Operating and Overleed Expenses 27 2e NET INCOME BEFORE TAX LOSS 29 30 21 32 33 34 25 36 97 30 25 40 41 42 43 144 45 46 $0 $0.00 $0.00 $0.00 SO.no $0.00 $ $0.00 So.uC $ $250,000.00 3250,000.00 so SO ($50,000) $0 SO Calendar Pro-Forma Income Statement + Ready ### + 100% AutoSave OFF OF ABU Calendar and Pro Forma Template 2020 Insert Draw Page Layout Home - Formulas Data Review View Tell me Share Comments Aral 92 ab Wraa Text General Insert 1 X [G 10 ~AA ov 27 0 4 DX Delete Peste BIU - Merge & Center Y S% Sort & Sensitivity Conditional Format Cell Formatting as Table Styles Format Filter Find & Select Analyze Cale Check for Updates Office Update To keep up-to-date with security updates, lixes, and improvements, choose Check for Updates. H15 x fx | AR D H 1 1 M N a P R S Pro-Forma Income Statement 3 2019 (current year 2020 2021 400 000 $1.00 3400,000.00 $0 SO $0.50 3200,000.00 $0 SO - $200,000.00 $0 REVENUE Sales in units sold) Revenue perurit 5 Total Ravenues 10 11 COST OF SALES 12 Cost of goods purchased ! manufactured (per unt! Total Cost a Gooda Sol 14 16 Gross Profit (06) 16 17 OPERATING AND OVERHEAD EXPENSES 18 Acvaring and Promotion 10 add expense 1 20 add expense 2 21 Add expense 3 22 add expense 4 23 add expense 5 24 add expenses 25 Overhead (anlaries and wagas, herefts, office supples etc. 26 Total Operating and Overleed Expenses 27 2e NET INCOME BEFORE TAX LOSS 29 30 21 32 33 34 25 36 97 30 25 40 41 42 43 144 45 46 $0 $0.00 $0.00 $0.00 SO.no $0.00 $ $0.00 So.uC $ $250,000.00 3250,000.00 so SO ($50,000) $0 SO Calendar Pro-Forma Income Statement + Ready ### + 100%