ProForma Statement

PetitCo Manufacturing Case

Background

John Small, director of PetitCo Manufacturing, is working as part of a strategic planning group tasked with laying out the future directions of the company. Mr. Small has compiled some information about the company from which he would like to come up with some future estimates and trends.

Information

From the sales department, Mr. Small found the following sales and price information. The price has steadily decreased by 6% over the last five years.

	1	2	3	4	5
Unit Sales	310	721	932	1065	1108
Price	$1,000.00	$940.00	$883.60	$830.58	$780.75

From accounting and production Mr. Small 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

Envoi

Mr. Small 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 proforma statements are critical for the company since the direct investment decisions that must be made to meet the growth in sales. It is also a crucial step in the Financial Management Process. The information generated will become the backbone of the financing decisions and cash flow planning and management.

I need the Develop a Pro forma statement based on the given information and

Compile the Income Statement and OCF

Based on given information extrapolate for upcoming 5 years ?