Question 1

With the following information, create a budgeted (pro forma) income statement by completed the shaded areas below:

2021

Sales (units) 6,000

Selling price per unit $ 8.00

COGS per unit $ 3.00

The costs for salaries is $4,500, rent is $5,900, insurance is $400 and travel $700.

For 2022

• the # units will increase 10%,
• the selling price will stay the same,
• the cost of goods sold per unit will grow by 15%.
• inflation of 2% will affect rent, insurance and travel.
• salaries will increase by 3%.

Complete the shaded portions below:

	2022
Sales (in units)
Unit selling price
Unit COGS
Sales revenue
Cost of goods sold
Gross profit
Overhead:
Salaries
Rent
Insurance
Travel
Total overhead costs
Earnings before interest and taxes